Legg's earnings rose sharply in quarter, year

May 06, 1993|By David Conn | David Conn,Staff Writer

Legg Mason Inc., a Baltimore investment company, reported sharply higher earnings yesterday for both its fourth quarter and full fiscal year.

The company, whose fiscal year ended March 31, said it earned a record $8.7 million, or 93 cents a share, in the fourth quarter, representing a 32 percent increase over earnings of $6.6 million, or 72 cents a share, a year earlier.

Revenues in the quarter rose 16 percent, to $92.3 million from $79.8 million.

For the year, profits rose 43 percent to $30.2 million, or $3.26 a share -- also a record -- from $21.1 million, or $2.32 a share, the year before. Revenues of $292 million were 15 percent higher than last year.

Chairman Raymond A. Mason said the strong results came from "substantially higher revenues from investment banking and investment advisory activities as well as increased securities brokerage revenues."

He has been trying for years to reduce the company's dependence on stock trading commissions and shift toward more reliable sources of income. In the latest fiscal year, trading commissions declined to 34.9 percent of Legg Mason's revenues, from 38.5 percent in fiscal 1992.

Investment banking revenues, meanwhile, climbed to 19.8 percent of the total from 14.5 percent a year earlier. Investment advisory fees likewise gained a bit in the most recent period. The company manages more than $13 billion in the assets of private accounts and its 12 mutual funds.

Legg Mason's stock gained 25 cents a share to close at $25.25 yesterday in trading on the New York Stock Exchange.

Legg Mason Inc

.. .. .. Ticker.. .. .. .. .. .. .. Yesterday's .. ..... Symbol.. .. .. .. .. .. .. Cls.. .. .. .. .. .. Chg.

.. .. LM .. .. .. .. .. .. .. .. 25 1/4 .. .. ... .. .. .. + 1/4

Period ended

March 31 .. .. ..4th qtr.. .. .. .. .. .. Year ago .. .. .. .. .. ..Chg.

Revenue .. .. .. $92,257 .. .. .. .. ... $79,755 .. .. .. .. .. ..+15.7%

Net Income .. .. $8,710 .. .. ... .. .. ..$6,619 .. .. .. .. .. .. +31.6%

Primary EPS.. .. $0.93 .. .. .. .. .. .. .$0.72 .. .. .. .. .. .. .+29.2%

.. .. .. .. .. ..Year.. .. .. .. .. Year ago.. ... .. .. .. .. Chg.

Revenue .. .. .. $336,347 .. .. .. $292,356 .. .. .. .. .. .. +15.0%

Net Income.. .. $30,203 .. .. .. ..$21,117 .. .. .. .. .. .. .+43.0%

Primary EPS .. .. ..$3.26.. .. .. . $2.32 .. .. .. .. .. .. .. +40.5%

Figures in thousands (except per share data.)

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