Earnings up 22% for 3rd quarter at Legg Mason Brokerage reports $7 million profit

January 21, 1993|By David Conn | David Conn,Staff Writer

Legg Mason Inc., enjoying higher investment banking fees and a continued flow of money into mutual funds, reported higher revenues and earnings for both its fiscal third quarter and the first nine months of the year.

The company said yesterday that it earned $7 million, or 76 cents a share, in its third fiscal quarter, which ended Dec. 31, a 22 percent increase over earnings of $5.8 million, or 63 cents a share, a year earlier.

For the first nine months of its fiscal year, Legg Mason earned $21.5 million, or $2.33 a share, representing a 48 percent gain from a year ago. It was also more money than the company ever earned in a full year.

Those gains came from revenues of $244 million so far this fiscal year, 15 percent more than a year earlier. While trading commissions accounted for the largest share of Legg Mason's income, investment banking showed the most improvement,rising to 22 percent of revenues in the fiscal 1993 third quarter from 16 percent a year earlier.

"Results in both the quarter and nine months benefited from strong growth in our corporate finance, public finance and investment advisory revenues," Chairman and Chief Executive Officer Raymond A. Mason said in a statement.

Analyst Perrin H. Long, director of equity research at First of Michigan Corp. in Detroit, noted that the Baltimore company had been among the underwriters and sellers of two new mutual funds in the quarter,from the Nuveen and Black Group fund companies.

"They've done a superb job, and the stock is reflecting that," Mr. Long said. Legg Mason's shares closed at $24.50 a share, gaining 25 cents on the New York Stock Exchange.

Mr. Long pointed out that, as a regional firm that does little trading for its own accounts, Legg has been able to avoid the losses some larger firms have suffered from that activity. PaineWebber Inc., for example, announced layoffs and a hiring freeze recently as its fourth-quarter profits fell from 1991, partly because of the results in its accounts.

Legg Mason Inc.. .. .. .. .Ticker.. .. .. .. .. Yesterday's

.. .. .. .. .. .. .. .. ...Symbol.. .. .. .. .. Cls.. .. Chg.

.. ... .. .. .. .. .. .. . LM .. .. .. .. .. ...24 1/2 .. .. ..+ 1/4

Period ended

Dec. 31 .. ... .. .. .. .. 3rd qtr.. .. .. Year ago.. .. Chg.

Revenue .. .. .. .. .. .. $85,143 .... .. .$75,997 .. .. +12.0%

Net Income .. .. .. .. .. $7,045 .. .. .. ..$5,776.. .. .. +22.0%

Primary EPS .. .. .. .. .. $0.76.. .. ... . $0.63.. .. .. +20.6%

... .. .. .. .. .. .. .. .. 9 mos... .. .. ..Year ago.. .. Chg.

Revenue .. .. .. .. .. .. $244,090.. .. ...$212,601.. .. ..+14.8%

Net Income .. .. .. .. .. $21,493 .. .. .. ..$14,498 .. .. ..48.2%

Primary EPS .. .. .. .. .. .$2.33 .. .. .. .. $1.60 .. .... +45.6%

Figures in thousands (except per share data.)

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