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Franklin Resources

Financials

Price	28.63	EPS	2
Shares	504	P/E	12
MCap	14,438	P/FCF	72
Net Debt	-5,261	EBIT	1,862
TEV	9,177	TEV/EBIT	5
TTM 2019-09-30, in MM, except price, ratios

Filings

10-Q	2020-06-30	Filed 2020-07-28
10-Q	2020-03-31	Filed 2020-04-30
10-Q	2019-12-31	Filed 2020-01-30
10-K	2019-09-30	Filed 2019-11-12
10-Q	2019-06-30	Filed 2019-07-30
10-Q	2019-03-31	Filed 2019-04-26
10-Q	2018-12-31	Filed 2019-01-30
10-K	2018-09-30	Filed 2018-11-09
10-Q	2018-06-30	Filed 2018-07-27
10-Q	2018-03-31	Filed 2018-04-26
10-Q	2017-12-31	Filed 2018-01-30
10-K	2017-09-30	Filed 2017-11-13
10-Q	2017-06-30	Filed 2017-07-28
10-Q	2017-03-31	Filed 2017-04-28
10-Q	2016-12-31	Filed 2017-01-27
10-K	2016-09-30	Filed 2016-11-14
10-Q	2016-06-30	Filed 2016-07-28
10-Q	2016-03-31	Filed 2016-04-27
10-Q	2015-12-31	Filed 2016-02-03
10-K	2015-09-30	Filed 2015-11-12
10-Q	2015-06-30	Filed 2015-07-29
10-Q	2015-03-31	Filed 2015-04-29
10-Q	2014-12-31	Filed 2015-01-30
10-K	2014-09-30	Filed 2014-11-12
10-Q	2014-06-30	Filed 2014-07-30
10-Q	2014-03-31	Filed 2014-04-28
10-Q	2013-12-31	Filed 2014-01-30
10-K	2013-09-30	Filed 2013-11-12
10-Q	2013-06-30	Filed 2013-07-29
10-Q	2013-03-31	Filed 2013-04-30
10-Q	2012-12-31	Filed 2013-02-01
10-K	2012-09-30	Filed 2012-11-15
10-Q	2012-06-30	Filed 2012-07-30
10-Q	2012-03-31	Filed 2012-05-02
10-Q	2011-12-31	Filed 2012-02-01
10-K	2011-09-30	Filed 2011-11-15
10-Q	2011-06-30	Filed 2011-08-02
10-Q	2011-03-31	Filed 2011-05-03
10-Q	2010-12-31	Filed 2011-02-08
10-K	2010-09-30	Filed 2010-11-16
10-Q	2010-06-30	Filed 2010-08-05
10-Q	2010-03-31	Filed 2010-05-06
10-Q	2009-12-31	Filed 2010-02-08

Reports

8-K	2020-07-31	M&A, Other Events, Exhibits
8-K	2020-07-28	Earnings, Regulation FD, Exhibits
8-K	2020-07-17	Other Events, Exhibits
8-K	2020-04-30
8-K	2020-02-18
8-K	2020-02-17
8-K	2020-02-11
8-K	2020-01-30
8-K	2019-12-09
8-K	2019-11-20
8-K	2019-10-25
8-K	2019-07-30
8-K	2019-06-11
8-K	2019-04-26
8-K	2019-04-02
8-K	2019-03-12
8-K	2019-02-12
8-K	2019-01-30
8-K	2018-10-25
8-K	2018-10-24
8-K	2018-07-27
8-K	2018-04-26
8-K	2018-04-11
8-K	2018-02-14
8-K	2018-01-30

Franklin Resources Earnings 2020-06-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

Document

Table of Contents

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(MARK ONE)



☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020



☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-09318

FRANKLIN RESOURCES, INC.

(Exact name of registrant as specified in its charter)



Delaware	13-2670991
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

One Franklin Parkway, San Mateo, CA 94403

(Address of principal executive offices) (Zip code)

(650) 312-2000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:



Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.10 per share	BEN	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



Large Accelerated Filer	☒	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller Reporting Company	☐
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

Number of shares of the registrant’s common stock outstanding at July 21, 2020: 495,356,614.

Table of Contents

INDEX TO FORM 10-Q



			Page
PART I		Financial Information
	Item 1.	Financial Statements (unaudited)
		Consolidated Statements of Income	3
		Consolidated Statements of Comprehensive Income	4
		Consolidated Balance Sheets	5
		Consolidated Statements of Stockholders’ Equity	6
		Consolidated Statements of Cash Flows	8
		Notes to Consolidated Financial Statements	10
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	61
	Item 4.	Controls and Procedures	61

PART II		Other Information
	Item 1.	Legal Proceedings	62
	Item 1A.	Risk Factors	62
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	62
	Item 6.	Exhibits	62

Exhibit Index			63
Signatures			64

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

FRANKLIN RESOURCES, INC. CONSOLIDATED STATEMENTS OF INCOME Unaudited

	Three Months Ended June 30,						Nine Months Ended June 30,
(in millions, except per share data)	2020			2019			2020			2019
Operating Revenues
Investment management fees	$	809.2		$	1,019.4		$	2,697.1		$	2,983.6
Sales and distribution fees	302.1			367.5			995.3			1,080.8
Shareholder servicing fees	44.6			52.7			149.4			164.9
Other	32.2			37.1			97.3			92.7
Total operating revenues	1,188.1			1,476.7			3,939.1			4,322.0
Operating Expenses
Sales, distribution and marketing	368.6			462.4			1,236.4			1,356.3
Compensation and benefits	386.5			437.7			1,141.6			1,202.3
Information systems and technology	62.1			65.7			186.4			188.7
Occupancy	31.5			32.2			100.4			94.8
General, administrative and other	85.7			103.8			271.8			314.0
Total operating expenses	934.4			1,101.8			2,936.6			3,156.1
Operating Income	253.7			374.9			1,002.5			1,165.9
Other Income (Expenses)
Investment and other income (losses), net	22.9			44.2			(166.5		)	103.8
Interest expense	(6.8		)	(5.6		)	(17.7		)	(17.7		)
Other income (expenses), net	16.1			38.6			(184.2		)	86.1
Income before taxes	269.8			413.5			818.3			1,252.0
Taxes on income	16.1			158.9			157.7			355.8
Net income	253.7			254.6			660.6			896.2
Less: net income (loss) attributable to
Redeemable noncontrolling interests	31.3			0.1			11.8			6.2
Nonredeemable noncontrolling interests	(68.0		)	8.6			(71.2		)	0.7
Net Income Attributable to Franklin Resources, Inc.	$	290.4		$	245.9		$	720.0		$	889.3

Earnings per Share
Basic	$	0.58		$	0.48		$	1.44		$	1.74
Diluted	0.58			0.48			1.44			1.74

See Notes to Consolidated Financial Statements.

Table of Contents

FRANKLIN RESOURCES, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Unaudited

(in millions)	Three Months Ended June 30,					Nine Months Ended June 30,
(in millions)	2020			2019		2020			2019
Net Income	$	253.7		$	254.6	$	660.6		$	896.2
Other Comprehensive Income (Loss)
Currency translation adjustments, net of tax	26.1			1.9		(18.4		)	(4.8		)
Net unrealized gains (losses) on defined benefit plans, net of tax	—			0.1		(0.2		)	(1.0		)
Net unrealized gains (losses) on investments, net of tax	(0.1		)	3.6		0.1			3.5
Total other comprehensive income (loss)	26.0			5.6		(18.5		)	(2.3		)
Total comprehensive income	279.7			260.2		642.1			893.9
Less: comprehensive income (loss) attributable to
Redeemable noncontrolling interests	31.3			0.1		11.8			6.2
Nonredeemable noncontrolling interests	(68.0		)	8.6		(71.2		)	0.7
Comprehensive Income Attributable to Franklin Resources, Inc.	$	316.4		$	251.5	$	701.5		$	887.0

See Notes to Consolidated Financial Statements.

Table of Contents

FRANKLIN RESOURCES, INC. CONSOLIDATED BALANCE SHEETS Unaudited

(in millions, except share and per share data)	June 30, 2020		September 30, 2019
Assets
Cash and cash equivalents	$	6,358.7	$	5,803.4
Receivables	810.3		740.0
Investments (including $572.1 and $589.7 at fair value at June 30, 2020 and September 30, 2019)	1,135.0		1,555.8
Assets of consolidated investment products
Cash and cash equivalents	617.2		154.2
Receivables	117.5		99.0
Investments, at fair value	2,274.3		2,303.9
Property and equipment, net	705.2		683.7
Goodwill	2,190.7		2,130.3
Intangible assets, net	904.1		864.2
Operating lease right-of-use assets	258.5		—
Other	245.5		197.7
Total Assets	$	15,617.0	$	14,532.2

Liabilities
Compensation and benefits	$	439.8	$	502.4
Accounts payable and accrued expenses	187.3		222.9
Dividends	142.8		137.4
Commissions	212.0		254.0
Income taxes	747.3		824.7
Debt	697.2		696.9
Liabilities of consolidated investment products
Accounts payable and accrued expenses	154.6		81.5
Debt	685.6

EX-31.1	exhibit311q3fy20.htm
EX-31.2	exhibit312q3fy20.htm
EX-32.1	exhibit321q3fy20.htm
EX-32.2	exhibit322q3fy20.htm

BEN 10Q Quarterly Report

Franklin Resources Earnings 2020-06-30