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INVESCO LTDSHS Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: May 2, 2012 02:03PM
INVESCO LTDSHS (IVZ) filed Quarterly Report for the period ended 2012-03-31. Invesco Ltd has a market cap of $11.18 billion; its shares were traded at around $24.8 with a P/E ratio of 14.6 and P/S ratio of 2.7. The dividend yield of Invesco Ltd stocks is 2%. Invesco Ltd had an annual average earning growth of 4.7% over the past 10 years.
Highlight of Business Operations:Operating revenues increased by $6.4 million (0.6%) in the three months ended March 31, 2012 to $1,033.7 million (three months ended March 31, 2011: $1,027.3 million). Net revenues increased by $12.0 million (1.7%) in the three months ended March 31, 2012 to $736.3 million (three months ended March 31, 2011: $724.3 million). Net revenues are operating revenues less third-party distribution, service and advisory expenses, plus our proportional share of net revenues from joint venture
In the three months ended March 31, 2012, other revenues increased by $0.3 million (0.9%) to $32.8 million (three months ended March 31, 2011: $32.5 million). Other revenues were driven by an increase in real estate portfolio acquisition and disposition fees of $5.5 million, offset by reductions in mutual funds front end fees of $2.9 million, UIT revenues of $1.1 million and transaction commissions and other revenues of $1.0 million during the period. The increase in other revenues was offset by foreign exchange rate movements of $0.2 million during the three months ended March 31, 2012, compared to the three months ended March 31, 2011.
Our proportional share of revenues, net of third-party distribution expenses decreased by $1.1 million (10.6%) to $9.3 million in the three months ended March 31, 2012 (three months ended March 31, 2011: $10.4 million). Our share of the Invesco Great Wall joint venture s average AUM in the three months ended March 31, 2012 was $3.0 billion (three months ended March 31, 2011: $3.5 billion).
Operating income increased by $4.1 million (1.8%) to $229.8 million in the three months ended March 31, 2012 (three months ended March 31, 2011: $225.7 million). Operating margin (operating income divided by operating revenues), increased from 22.0% in the three months ended March 31, 2011 to 22.2% in the three months ended March 31, 2012. The increase in operating income and margin resulted from a greater relative increase in operating revenues (0.6%) than in operating expenses (0.3%), which were relatively flat compared to three months ended March 31, 2011. Adjusted operating income decreased by $2.9 million (1.1%) to $269.2 million in the three months ended March 31, 2012 from $272.1 million in the three months ended March 31, 2011. Adjusted operating margin decreased to 36.6% in the three months ended March 31, 2012 from 37.6% in the three months ended March 31, 2011. See “Schedule of Non-GAAP Information” for a reconciliation of operating revenues to net revenues, a reconciliation of operating income to adjusted operating income and additional important disclosures regarding net revenues, adjusted operating income and adjusted operating margin.
As of March 31, 2012, we had $558.0 million in investments, of which $337.7 million were current investments and $220.3 million were non-current investments. Included in current investments are $70.3 million of seed money investments in affiliated funds used to seed funds as we launch new products, and $211.5 million of investments related to assets held for deferred compensation plans, which are also held primarily in affiliated funds. Seed investments increased by $6.8 million during the three months to March 31, 2012, due primarily to seed money investment additions and market increases, offset by disposals of seed money investments. Investments held to hedge deferred compensation awards increased by $27.1 million during the three month period, primarily attributable to additional investments in affiliated funds to hedge economically new employee plan awards. Included in non-current investments are $199.5 million in equity method investments in our Chinese joint ventures and in certain of the company s private equity partnerships, real estate partnerships and other investments (December 31, 2011: $193.1 million). The increase of $6.4 million in equity method investments is primarily driven by an increase of $8.2 million in co-investment in the Asian real estate funds with the remaining $1.7 million increase in partnership investments due to various other capital calls and valuation improvements. The partnership increases are also offset by distributions and capital returns during the period. The value of the joint venture investments has increased by $4.0 million during the period as a result of current year earnings.
Stocks Discussed: IVZ,