Price profit increased 35% in 1st quarter

April 29, 1994|By David Conn | David Conn,Sun Staff Writer

T. Rowe Price Associates Inc., nursing only minor injuries from the recent market downturn, yesterday reported another quarter strong revenues and earnings.

The Baltimore mutual fund and investment management company said earnings in the quarter ended March 31 rose to $13.8 million, or 44 cents a share, a 35 percent gain from a year ago.

Revenues, primarily from advisory fees on its $53.5 billion in assets under management, were up 34 percent during the quarter, to $91.9 million.

But despite a $1.7 billion increase in net cash flows into Price's funds during the quarter, assets under management fell almost $1 billion. That was because the amount of the stock market declines offset the newly invested funds. Still, assets were up $9.7 billion compared with a year ago.

"We are pleased with the company's first-quarter performance," President George J. Collins said in a statement. "T. Rowe Price has weathered the recent market downturn well with its diversified product offerings. If the financial markets remain around current levels for the remainder of the year, we anticipate a good 1994."

Expenses during the quarter were up 29 percent, primarily because of a nearly 50 percent increase in advertising spending.

"The real story I think may be this next quarter," said A. Michael Lipper, of Lipper Analytical Services Inc. in New York. "My guess is they're [assets are] going to be significantly lower."

T. Rowe Price's stock gained 25 cents a share yesterday, to close at $29.

T. Rowe Price Associates Inc. .. .. .. .. ..Ticker .. .. .. .. Yesterday's

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

.. .. .. .. .. .. .. .. .. .. .. .. .. .. ..TROW.. .. .. .. .. 29.. .. .+ 1/4

Period ended March 31, 1994.. .. .. 1st qtr. .. .. ....Year ago.. Chg.

Revenue. .. .. .. .. .. .. .. .. .. $91,927. .. .. .. .$68,716.. .+33.8%

Net Income. .. .. .. .. .. .. .. .. $13,753. .. .. .. .$10,221* ..+34.6%

Primary EPS .. .. .. .. .. .. .. .. . $0.44. .. .. ... $0.34* .. .+29.4%

Figures in thousands (except per share data.)

* Includes a charge of $300,000, or 1 cent a share, because of an accounting change.

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