Franklin Resources Inc. Files Q3 2024 10-Q

TL;DR

FRANKLIN RESOURCES (BEN) Q3 10-Q FILED - REVENUE DETAILS OUT

AI Summary

Franklin Resources Inc. reported its Q3 results for the period ending June 30, 2024. The filing details revenue from investment advisory, management, and administrative services, as well as sales and distribution fees, and shareholder services. Specific dollar amounts and comparative periods are provided within the document.

Why It Matters

This filing provides investors with a detailed look at Franklin Resources' financial performance and revenue streams for the third quarter of fiscal year 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Players & Entities

• FRANKLIN RESOURCES INC (company) — Filer of the 10-Q
• 0000038777-24-000115 (filing_id) — Accession Number for the 10-Q filing
• 20240630 (date) — Conformed period of report for the 10-Q
• 20240726 (date) — Filing date of the 10-Q

FAQ

Key Financial Figures

• $0.10 — ich registered Common Stock, par value $0.10 per share BEN New York Stock Exchange

Filing Documents

• ben-20240630.htm (10-Q) — 2242KB
• exhibit311q3fy24.htm (EX-31) — 11KB
• exhibit312q3fy24.htm (EX-31) — 11KB
• exhibit321q3fy24.htm (EX-32) — 6KB
• exhibit322q3fy24.htm (EX-32) — 7KB
• 0000038777-24-000115.txt ( ) — 9935KB
• ben-20240630.xsd (EX-101.SCH) — 51KB
• ben-20240630_cal.xml (EX-101.CAL) — 55KB
• ben-20240630_def.xml (EX-101.DEF) — 345KB
• ben-20240630_lab.xml (EX-101.LAB) — 549KB
• ben-20240630_pre.xml (EX-101.PRE) — 482KB
• ben-20240630_htm.xml (XML) — 1918KB

Financial Statements (unaudited)

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

Notes to Consolidated Financial Statements 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 41

Controls and Procedures

Item 4. Controls and Procedures 42 PART II Other Information

Legal Proceedings

Item 1. Legal Proceedings 43

Risk Factors

Item 1A. Risk Factors 43

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 43

Exhibits

Item 6. Exhibits 43 Exhibit Index 44

Signatures

Signatures 45 2 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

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) 2024 2023 2024 2023 Operating Revenues Investment management fees $ 1,689.9 $ 1,613.4 $ 5,056.0 $ 4,818.5 Sales and distribution fees 358.3 304.0 1,013.0 897.3 Shareholder servicing fees 61.8 38.8 162.3 115.5 Other 12.9 12.8 35.5 32.0 Total operating revenues 2,122.9 1,969.0 6,266.8 5,863.3 Operating Expenses Compensation and benefits 893.8 841.2 2,890.3 2,667.7 Sales, distribution and marketing 481.1 406.8 1,366.2 1,202.0 Information systems and technology 156.6 127.3 442.7 376.7 Occupancy 104.8 56.9 247.7 171.1 Amortization of intangible assets 84.0 85.4 254.4 254.6 General, administrative and other 180.1 136.5 507.2 427.2 Total operating expenses 1,900.4 1,654.1 5,708.5 5,099.3 Operating Income 222.5 314.9 558.3 764.0 Other Income (Expenses) Investment and other income, net 74.5 49.8 300.2 200.3 Interest expense ( 25.7 ) ( 34.9 ) ( 72.2 ) ( 99.3 ) Investment and other income of consolidated investment products, net 37.6 1.7 103.7 75.3 Expenses of consolidated investment products ( 8.8 ) ( 0.8 ) ( 20.6 ) ( 15.7 ) Other income, net 77.6 15.8 311.1 160.6 Income before taxes 300.1 330.7 869.4 924.6 Taxes on income 68.1 84.1 205.8 237.3 Net income 232.0 246.6 663.6 687.3 Less: net income (loss) attributable to Redeemable noncontrolling interests 43.0 26.8 95.3 108.5 Nonredeemable noncontrolling interests 15.0 ( 7.7 ) 18.8 ( 8.5 ) Net Income Attributable to Franklin Resources, Inc. $ 174.0 $ 227.5 $ 549.5 $ 587.3 Earnings per Share Basic $ 0.32 $ 0.44 $ 1.04 $ 1.14 Diluted 0.32 0.44 1.03 1.14 See Notes to Consolidated Financial Statements. 3 Table of Contents FRANKLIN RESOURCES, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Unaudited (in millions) Three Months Ended June 30, Nine Months Ended June 30, 2024 2023 2024 2

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2024 (Unaudited) Note 1 – Basis of Presentation The unaudited interim financial statements of Franklin Resources, Inc. ("Franklin") and its consolidated subsidiaries (collectively, the "Company") included herein have been prepared in accordance with the instructions to Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Under these rules and regulations, some information and footnote disclosures normally included in financial statements prepared under accounting principles generally accepted in the United States of America have been shortened or omitted. Management believes that all adjustments necessary for a fair statement of the financial position and the results of operations for the periods shown have been made. All adjustments are normal and recurring. Management also believes that the accounting estimates are appropriate, and the resulting balances are reasonable; however, due to the inherent uncertainties in making estimates, actual amounts may differ from these estimates. These financial statements should be read together with the Company's audited financial statements included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2023 ("fiscal year 2023"). During the quarter ended March 31, 2024, the Company identified that it did not eliminate the investment income from certain consolidated limited partnerships for the fiscal year ended September 30, 2023, resulting in offsetting adjustments to investment and other income, net and net income attributable to nonredeemable noncontrolling interest. The Company is not entitled to the economic returns associated with the underlying investments held by these limited partnerships. There is no impact on operating income, net income attributable to Franklin Resources, Inc., earnings per share, total assets, total liabilities, retained earnings or total shareholders' equity. There is no impact

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