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TROW · Price T Rowe Group

26 filings

10-K

TROW 10-K Annual Reports

Price T Rowe Group - 26 annual reports

Filing record · 2016–202610-K1110-Q338-K83

2025
Price T Rowe Group Annual Report, Year Ended Dec 31, 2025
T. Rowe Price Group, Inc. (NASDAQ: TROW) reported that assets under management ended 2025 at $1,775.6 billion, up $169.0 billion from year-end 2024, driven by $216.7 billion of market appreciation, net of distributions not reinvested, partly offset by $56.9 billion of net cash outflows. Net revenues rose 3.1% to $7,314.8 million, while U.S. GAAP operating expenses rose 7.7% to $5,126.0 million, including a $177.3 million restructuring charge tied to role eliminations, technology outsourcing and the planned exit of certain owned buildings. U.S. GAAP net income attributable to T. Rowe Price Group was $2,087.1 million, or $9.24 diluted EPS, versus $9.15 in 2024. Operating margin was 29.9% compared with 32.9% in 2024. On a non-GAAP basis, which excludes the restructuring charge, acquisition-related amortization, deferred compensation market effects and consolidated investment products, diluted EPS was $9.72 versus $9.33 in 2024. The filing estimates 2026 non-GAAP operating expenses excluding accrued carried interest compensation will grow 3% to 6% from $4,608.0 million, and expects a 2026 GAAP effective tax rate of 23.0% to 27.0%. The firm ended 2025 with $3,378.2 million of cash and cash equivalents and stockholders' equity attributable to T. Rowe Price Group of $10.9 billion. It repurchased about 6.2 million shares for $624.6 million and paid $5.08 per share in regular dividends for the year, up from $4.96. Average AUM grew 7.4% to $1,677.3 billion, while the effective fee rate excluding performance-based fees declined to 39.4 basis points from 41.0.
Feb 13, 2026
2024
Price T Rowe Group Annual Report, Year Ended Dec 31, 2024
T. Rowe Price Group, Inc. (NASDAQ: TROW) reported in its 10-K for the year ended December 31, 2024 that assets under management ended the year at $1,606.6 billion, up $162.1 billion from the end of 2023. The increase was driven by market appreciation, net of distributions not reinvested, of $205.3 billion, offset by net cash outflows of $43.2 billion. Net revenues rose to $7,093.6 million from $6,460.5 million, and net income attributable to T. Rowe Price Group was $2,100.1 million, or $9.15 per diluted share, compared with $1,788.7 million, or $7.76 per diluted share, in 2023. On a non-GAAP basis, diluted earnings per share were $9.33 versus $7.59. Investment advisory fees grew to $6,399.7 million, and the operating margin improved to 32.9% from 30.7%. The firm's effective fee rate, excluding performance-based fees, declined to 41.0 basis points from 41.9 basis points, which the filing attributes largely to a mix shift toward lower-fee products and asset classes. Net outflows were concentrated in growth-oriented equity strategies and in financial intermediaries, with outflows in the Americas partly offset by inflows in EMEA and APAC. Target date retirement products reached $475.6 billion in AUM with $16.3 billion of net inflows. Total cash and investments in T. Rowe Price products were $5,480.1 million at year-end, and the company returned $1,469.7 million to stockholders in 2024 through dividends and repurchases. The filing also flags continuing risks, including fee pressure, the shift toward passive products, dependence on third-party intermediaries, and ongoing regulatory change. It notes the Oak Hill Advisors earnout and impairments of intangible assets recognized in 2024 and prior years. Management estimates 2025 non-GAAP operating expenses excluding accrued carried interest compensation will grow 4% to 6%, and expects a 2025 GAAP effective tax rate of 23.0% to 27.0%.
Feb 14, 2025
2023
Price T Rowe Group Annual Report, Year Ended Dec 31, 2023
T. Rowe Price Group, Inc. reported net revenues of $6,460.5 million for 2023, essentially flat versus $6,488.4 million in 2022, as investment advisory fees fell to $5,747.7 million from $5,969.1 million. Average assets under management decreased $36.1 billion, or 2.6%, to $1,362.3 billion, and the annualized effective fee rate declined to 42.2 basis points from 42.7. Operating expenses rose 8.7% to $4,474.3 million on a U.S. GAAP basis, largely due to market movements on the supplemental savings plan liability, so operating margin fell to 30.7% from 36.6%. U.S. GAAP net income attributable to T. Rowe Price Group increased to $1,788.7 million, or $7.76 per diluted share, from $1,557.9 million, or $6.70, driven by non-operating investment income of $504.1 million versus a loss of $425.5 million in 2022. On a non-GAAP basis, diluted earnings per share were $7.59 versus $8.02 a year earlier. Ending AUM rose $169.8 billion to $1,444.5 billion, driven by $251.6 billion of market appreciation, partially offset by $81.8 billion of net cash outflows, concentrated in growth-oriented equity strategies. The firm returned $1,376.2 million to stockholders in 2023 through dividends ($4.88 per share) and $254.3 million of repurchases, and reported cash and cash equivalents of $2,066.6 million at year-end. Management estimates 2024 non-GAAP operating expenses excluding accrued carried interest compensation will grow 3% to 5%, and projects a 2024 GAAP effective tax rate of 23.0% to 27.0%.
Feb 16, 2024
2022
Price T Rowe Group Annual Report, Year Ended Dec 31, 2022
T. Rowe Price Group, Inc. (NASDAQ: TROW) reported a difficult 2022 in its 10-K filed February 15, 2023. Assets under management ended the year at $1,274.7 billion, down $413.1 billion from $1,687.8 billion at the end of 2021, driven by market depreciation and losses of $351.4 billion and net cash outflows of $61.7 billion. Average AUM fell 12.6% to $1,398.4 billion, and investment advisory fees declined 15.9% to $5,969.1 million. Net revenues fell 15.4% to $6,488.4 million, and the annualized effective fee rate eased to 42.7 basis points from 44.4. Net income attributable to T. Rowe Price Group fell 49.5% to $1,557.9 million, and diluted EPS dropped to $6.70 from $13.12. The decline reflected lower revenue, net non-operating investment losses of $425.5 million, and a $175.1 million impairment on acquired investment management contract intangibles, along with $108.5 million of amortization on the Oak Hill Advisors (OHA) intangibles. The OHA acquisition, completed December 29, 2021, added $57 billion of alternative credit capital under management. Operating expenses rose 3.9% to $4,114.7 million, and the company estimated 2023 non-GAAP operating expense growth of 2% to 6%. The balance sheet remained strong, with cash and cash equivalents of $1,755.6 million and stockholders' equity attributable to T. Rowe Price Group of $8,839.5 million at year-end. The company returned $1,964.1 million to stockholders in 2022 through $1,108.8 million of recurring dividends and $855.3 million of repurchases, and it paid $4.80 per share in regular dividends. Investors should weigh the strong capital position against continued net outflows from U.S. mutual funds and the sensitivity of earnings to market levels and fee rates.
Feb 15, 2023
2021
Price T Rowe Group Annual Report, Year Ended Dec 31, 2021
T. Rowe Price Group, Inc. is a financial services holding company providing global investment management services through its subsidiaries. At December 31, 2021, it reported $1,687.8 billion in assets under management, up $217.3 billion from the end of 2020, driven by market appreciation and income of $198.9 billion and $46.9 billion of fee-basis assets acquired with Oak Hill Advisors (OHA), partially offset by net cash outflows of $28.5 billion. Net revenues rose 23.6% to $7,671.9 million and net income attributable to T. Rowe Price Group increased 29.9% to $3,082.9 million, with diluted earnings per share of $13.12 compared with $9.98 in 2020. Operating expenses rose 14.5% to $3,961.9 million, and the operating margin was 48.4% versus 44.2% in 2020. The December 29, 2021 acquisition of OHA, a leading alternative credit manager, was made for upfront consideration of $3.4 billion in cash and common stock, with a further earnout of up to $900.0 million in cash tied to revenue targets from 2025 to 2027. OHA's results were not included in 2021 operating results; the filing states that beginning in 2022 OHA-related advisory fees, performance fees and carried interest will be included, and that acquisition-related amortization, contingent consideration remeasurement and retention compensation will affect operating results. The company expects 2022 non-GAAP operating expenses to grow 12% to 16% including a full year of OHA. Goodwill totaled $2,693.2 million at year-end, of which $2,027.5 million came from OHA. Capital returns remained significant: the company paid $4.32 per share in regular dividends for 2021, a $3.00 special dividend, and repurchased 5.9 million shares for $1,136.0 million. Cash and discretionary investments fell to $2,077.2 million from $4,247.4 million, and the company reports ample liquidity. Stockholders' equity attributable to T. Rowe Price Group rose to $9.0 billion from $7.7 billion. The filing also notes continued industry headwinds, including passive investing taking market share from active strategies and downward fee pressure.
Feb 24, 2022
2020
Price T Rowe Group Annual Report, Year Ended Dec 31, 2020
T. Rowe Price Group, Inc. reported that assets under management ended 2020 at $1,470.5 billion, up $263.7 billion from the end of 2019. The increase was driven by market appreciation and income of $256.9 billion and net cash inflows of $5.6 billion, plus $1.2 billion of stable value assets acquired from PNC Bank. Target date retirement products had net cash outflows of $6.5 billion and represented 22.6% of managed assets at year-end, versus 24.2% at the end of 2019. Financially, net revenues rose 10.5% to $6,206.7 million, net operating income rose 15.0% to $2,745.7 million, and diluted earnings per share were $9.98, up 14.7% from $8.70. Operating expenses rose 7.1% to $3,461.0 million, driven by a $38.6 million increase in supplemental savings plan expense from higher market returns, higher compensation and continued strategic investments. On a non-GAAP basis, diluted earnings per share were $9.58. Management raised its 2021 non-GAAP operating expense growth range to 8%-12%, from 6%-9% previously. The company stated it remains debt-free, held $4,247.4 million in cash and discretionary investments, and returned $2,038.2 million to stockholders in 2020 through dividends and repurchases. The filing also flags structural headwinds: passive investing has taken market share from active strategies, investor flows into lower-fee products have pressured the average fee rate (45.6 basis points in 2020 versus 46.1 in 2019), and the company plans to establish T. Rowe Price Investment Management as a separate SEC-registered adviser, expected to begin operations in the second half of 2022.
Feb 11, 2021
2019
Price T Rowe Group Annual Report, Year Ended Dec 31, 2019
T. Rowe Price Group, Inc. is a financial services holding company providing global investment management services through subsidiaries, primarily T. Rowe Price Associates and T. Rowe Price International Ltd. Its revenues and net income depend largely on the value and composition of its assets under management (AUM). At December 31, 2019, AUM reached $1,206.8 billion, up $244.5 billion from 2018, driven by market appreciation and income of $231.3 billion and net cash inflows of $13.2 billion. Target date retirement products totaled $292.4 billion, or 24.2% of managed assets. Financial results improved in 2019. Net revenues rose to $5,617.9 million from $5,372.6 million, and net income attributable to T. Rowe Price Group was $2,131.3 million, compared with $1,837.5 million in 2018. Diluted earnings per share were $8.70, versus $7.27. Non-GAAP diluted earnings per share were $8.07. Operating margin was 42.5%, down from 44.0% in 2018, which the company attributes mainly to higher supplemental savings plan compensation expense. Non-operating income of $540.3 million, largely from market gains, also boosted earnings. The company reported $5,568.1 million in cash and investments in T. Rowe Price products and stated it remains debt-free. The filing highlights ongoing headwinds, including the shift from active to passive investing, fee pressure, and regulatory change. Management expects 2020 non-GAAP operating expenses to grow 6% to 9%. Two pending ERISA and Section 36(b) lawsuits are in discovery, and the company says it cannot predict their outcome.
Feb 13, 2020
2018
Price T Rowe Group Annual Report, Year Ended Dec 31, 2018
T. Rowe Price Group, Inc. is a financial services holding company providing global investment management services through subsidiaries, principally T. Rowe Price Associates and T. Rowe Price International Ltd. At December 31, 2018, assets under management were $962.3 billion, down $28.8 billion from the end of 2017, as net cash inflows of $13.2 billion were more than offset by $42.0 billion of market depreciation and losses. Target date retirement products drew $12.0 billion of net inflows and totaled $230.4 billion, or 23.9% of managed assets. The filing describes headwinds including passive and alternative investments taking market share from active strategies, and it states that the firm remains debt-free with ample liquidity. Financial results improved despite the market decline. Net revenues rose to $5,372.6 million from $4,854.9 million in 2017, and net operating income rose to $2,361.4 million from $2,108.8 million. Diluted earnings per share were $7.27 versus $5.97 in 2017, and non-GAAP adjusted diluted earnings per share were $7.15 versus $5.43. The company cited the lower U.S. federal corporate tax rate as a benefit, and its effective tax rate fell to 25.8% from 36.9%. The company expects 2019 non-GAAP operating expenses to grow 4% to 7%. Capital return remained significant. Stock repurchases totaled $1,099.6 million in 2018 for 10.8 million shares, and regular dividends were $2.80 per share, up from $2.28. The Board approved an additional 10 million share repurchase authorization on February 12, 2019. Pending litigation includes an ERISA class action over the T. Rowe Price 401(k) Plan and a Section 36(b) excessive-fee complaint over certain funds; management believes both claims are without merit and cannot predict the outcome.
Feb 13, 2019
2017
Price T Rowe Group Annual Report, Year Ended Dec 31, 2017
T. Rowe Price Group, Inc. reported a strong 2017 on a U.S. GAAP basis. Investment advisory fees rose 15.0% to $4,287.7 million, net revenues rose 13.5% to $4,793.0 million, and net income attributable to T. Rowe Price Group increased 23.3% to $1,497.8 million, or $5.97 diluted earnings per share. Ending assets under management grew 22.2% to $991.1 billion, driven by $14.0 billion of net inflows and $166.3 billion of market appreciation and income. The company stated it remained debt-free with $2.7 billion of cash and discretionary investments in T. Rowe Price products. Results were affected by several non-recurring items. A $71.1 million charge reflected the estimated effect of U.S. tax reform, and the 2016 Dell appraisal rights matter contributed a $50.0 million insurance recovery in 2017 after a $66.2 million net charge in 2016. On a non-GAAP basis, adjusted diluted earnings per share were $5.43, up 20.9%, and the operating margin was 44.0% versus 41.0% in 2016. The company expects its 2018 effective tax rate to fall to 24.0% to 27.0%, and expects 2018 non-GAAP operating expense growth to lessen relative to 2017. The filing also highlights ongoing headwinds. The company noted a persistent shift from active to passive investing that has affected new client inflows. Price Funds net cash flows after client transfers were negative $10.8 billion in 2017, while other investment products had positive net flows of $24.8 billion. The company faces two pending lawsuits, an ERISA class action and a Section 36(b) fee complaint, both described as being in early stages, and it has returned $4.3 billion to stockholders over the last three years.
Feb 16, 2018
2016
Price T Rowe Group Annual Report, Year Ended Dec 31, 2016
T. Rowe Price Group, Inc. is a financial services holding company providing global investment management through its subsidiaries. It ended 2016 with $810.8 billion in assets under management, up $47.7 billion from year-end 2015, driven by $50.5 billion of market appreciation and income, partly offset by net cash outflows of $2.8 billion. The company attributed outflows largely to clients reallocating to passive investments and the impact of closed strategies. The company remained debt-free with cash and discretionary sponsored portfolio investment holdings of $1.9 billion at December 31, 2016. Reported 2016 results were mixed. U.S. GAAP net revenues were $4,222.9 million, up 0.5% from $4,200.6 million, while net operating income fell 8.7% to $1,733.4 million, reflected in a $166.2 million payment to clients over the Dell appraisal rights matter, partly offset by a $100 million insurance recovery. Net income attributable to T. Rowe Price Group declined 0.7% to $1,215.0 million, but diluted EPS rose 2.6% to $4.75. On an adjusted, non-GAAP basis, diluted EPS was $4.49, up 2.3%. The company stated that consolidating a larger number of sponsored investment portfolios under new accounting guidance significantly affected the 2016 income statement. Management expects planned operating expenses, excluding the Dell charge, to grow in the high-single-digit range in 2017 as it increases spending on strategic priorities, and it returned $1.2 billion to stockholders in 2016 through dividends and repurchases. The company also disclosed a pending Section 36(b) fee lawsuit (Zoidis v. T. Rowe Price Associates) that it intends to vigorously defend.
Feb 7, 2017
2015
Price T Rowe Group Annual Report, Year Ended Dec 31, 2015
T. Rowe Price Group, Inc. (TROW) reported 2015 results in its Form 10-K filed February 5, 2016. Assets under management ended 2015 at $763.1 billion, up $16.3 billion from year-end 2014, driven by $14.7 billion of market appreciation and income and $1.6 billion of net cash inflows. Net revenues rose 5% to $4,200.6 million and investment advisory fees rose 6% to $3,687.3 million, but operating expenses grew 10% to $2,301.7 million, so net operating income was essentially flat at $1,898.9 million. Net income declined 1% to $1,223.0 million, and diluted earnings per share rose 2% to $4.63, helped by a 5% reduction in shares repurchased. The company stated its operating margin was 45.2% in 2015 versus 47.5% in 2014, and it expects continued downward pressure on that margin in 2016 and beyond. The company remains debt-free and returned $2,046.8 million to stockholders in 2015 through a $2.00 special dividend, regular quarterly dividends totaling $2.08 per share, and $987.8 million of share repurchases. Stockholders' equity fell to $4,762.0 million from $5,395.2 million, reflecting those distributions. Management expects 2016 capital expenditures of up to $180 million and an effective tax rate of about 38.7%, and it highlighted a pending change in accounting (ASU 2015-02) that will consolidate more sponsored funds beginning January 1, 2016. Key risks flagged in the filing include the revenue sensitivity to market levels and asset mix, dependence on Price Funds advisory contracts that can be terminated on 60 days' notice, fee waivers on money market funds, intense competition from passive strategies, regulatory changes (including a fiduciary rule, SIFI designation considerations, and MiFID II), and the possibility of a UK exit from the European Union.
Feb 5, 2016
2014
Price T Rowe Group Annual Report, Year Ended Dec 31, 2014
T. Rowe Price Group, Inc. is a financial services holding company that provides global investment management services through its subsidiaries to individual and institutional investors, primarily in the sponsored T. Rowe Price mutual funds and other investment portfolios. At December 31, 2014, it had $746.8 billion in assets under management, including $477.6 billion in the Price funds and $269.2 billion in other investment portfolios. Assets under management rose $54.4 billion during 2014, driven by $50.7 billion of market appreciation and income and $3.7 billion of net cash inflows. Net revenues were $3,982.1 million, net operating income $1,890.9 million, and net income $1,229.6 million, or diluted earnings per share of $4.55, compared with $3.90 in 2013. The company remained debt-free at year-end 2014, with cash and fund investment holdings of $3.4 billion. It repurchased 5,312,663 shares for $415.5 million during 2014 and paid $1.76 per share in regular dividends. It expects quarterly dividends in 2015 to exceed that $1.76 total, and expects 2015 capital expenditures of up to $175 million. The filing notes that a significant share of revenue depends on Price fund contracts that can be terminated on 60 days' notice, and that money market fee waivers totaled $58.4 million in 2014 and are expected to continue in 2015. Key risks highlighted include market declines, investment performance relative to peers, investor mobility, low interest rates affecting money market funds, regulatory changes (including MiFID II and SEC money market reforms), and reliance on third-party intermediaries, which account for about 45% of assets under management.
Feb 5, 2015
2013
Price T Rowe Group Annual Report, Year Ended Dec 31, 2013
T. Rowe Price Group, Inc. (NASDAQ: TROW) reported record assets under management of $692.4 billion at December 31, 2013, up $115.6 billion from year-end 2012, driven by $127.6 billion in market gains and income, partly offset by net cash outflows of $12.0 billion. Net revenues rose 15.3% to $3,484.2 million, net operating income increased 20.0% to $1,637.4 million, and net income grew 18.6% to $1,047.7 million, with diluted earnings per share of $3.90 versus $3.36 in 2012. Operating margin improved to 47.0% from 45.1%. Within net flows, the Price funds took in $10.2 billion, while other investment portfolios had net outflows of $22.2 billion, concentrated among several large institutional clients outside the U.S. and intermediary clients. Target-date retirement portfolios, with $121.2 billion in assets, contributed $11.5 billion of net cash inflows in 2013. The company remains debt-free, held cash and fund investments of $3.0 billion at year-end, and sold its savings bank subsidiary on December 5, 2013 for $23.6 million in proceeds. Management expects 2014 quarterly dividends to exceed the $1.52 per share regular dividend paid in 2013, though it notes no assurance of continued increases. Capital expenditures for 2014 are expected to be approximately $145 million, and advertising spend is estimated to fall about 5%. The filing's risk factors emphasize that revenues depend on asset values and composition, and that most fund advisory contracts can be terminated on 60 days' notice.
Feb 4, 2014
2012
Price T Rowe Group Annual Report, Year Ended Dec 31, 2012
T. Rowe Price Group, Inc. reported record results for 2012, with assets under management rising $87.3 billion to a record $576.8 billion. The increase came from $70.1 billion of market appreciation and income, net of mutual fund distributions not reinvested, plus net inflows of $17.2 billion, primarily from third-party financial intermediaries. Net revenues grew 10.0% to $3.0 billion, net operating income rose 11.2% to nearly $1.4 billion, and net income increased $110.4 million, or 14.3%, to $883.6 million, with diluted earnings per share of $3.36. The filing states the company remains debt-free, and stockholders' equity rose from $3.4 billion to $3.8 billion. The filing highlights concentration and fee-related risks. Six Price funds accounted for 25% of investment advisory revenues in 2012, and the Price funds' contracts are terminable on 60 days' notice. Money market fee waivers totaled $35.0 million in 2012, and management expects them to continue in 2013. The company also reports a 26% equity stake in UTI Asset Management Company Ltd., carried at $139.8 million. Capital returns were significant. Dividends declared in 2012 totaled $2.36 per share, including a $1.00 special dividend paid on December 28, 2012, and the company repurchased 2.3 million shares for $135.2 million. Management plans quarterly dividends in 2013 that will, taken together, exceed the $1.36 in regular annual dividends declared in 2012.
Feb 5, 2013
2011
Price T Rowe Group Annual Report, Year Ended Dec 31, 2011
T. Rowe Price Group, Inc. (NASDAQ: TROW) reported in its 10-K for 2011 that assets under management rose $7.5 billion during the year to end at $489.5 billion, driven by net inflows of $14.1 billion, mainly sourced from third-party financial intermediaries, partly offset by market depreciation and distributions not reinvested of $6.6 billion. Net revenues increased 16.0% to $2.7 billion, net operating income rose 18.4% to $1.2 billion, and net income increased 15.0% to $773.2 million, with diluted earnings per share of $2.92 versus $2.53 in 2010. The operating margin improved to 44.7% from 43.8%. Revenue is driven primarily by investment advisory fees tied to assets under management. Target-date retirement portfolios contributed $8.0 billion of 2011 net inflows and held $66.9 billion at year-end. The filing notes that the average annualized fee rate declined to 47.3 basis points from 48.0, largely because of $36.4 million in voluntarily waived money market fees. The company expects these waivers to continue in 2012. Risk factors highlighted include the revocable, short-notice nature of Price fund advisory contracts, market-driven asset fluctuations, and the potential impact of the proposed Volcker Rule on the savings bank subsidiary. Balance sheet strength is evident, with cash and cash equivalents of $897.9 million, total stockholders' equity of $3.42 billion, and no external source of liquidity needed. The company repurchased 8,695,229 shares during 2011 and paid dividends of $1.24 per share, up from $1.08 in 2010. Management indicated that 2012 quarterly dividends are expected to exceed the 2011 total.
Feb 3, 2012
2010
Price T Rowe Group Annual Report, Year Ended Dec 31, 2010
T. Rowe Price Group, Inc. (NASDAQ: TROW) reported a strong 2010 in its 10-K filed February 8, 2011. The firm is a financial services holding company whose revenues and net income come primarily from investment advisory services to individual and institutional investors in the T. Rowe Price mutual funds and other investment portfolios. Total assets under management rose $90.7 billion during 2010 to a record $482.0 billion, recovering from $276.3 billion at the end of 2008, on net inflows of $30.3 billion and market appreciation and income of $60.4 billion. Net revenues were $2,367.2 million, net operating income was $1,036.5 million, and net income rose to $672.2 million from $433.6 million in 2009, with diluted earnings per share of $2.53 versus $1.65. The filing highlights strong long-term relative performance, with 86% of the T. Rowe Price funds (across share classes) beating their comparable Lipper averages on a total return basis over three years, 88% over five years, and 84% over ten years. Target-date retirement portfolios grew to $59.4 billion, or 12% of managed assets. Management also disclosed the 2010 purchase of a 26% equity interest in UTI Asset Management Company for $142.4 million, $240.0 million of share repurchases, and a dividend of $1.08 per share, with the company planning to exceed that amount in 2011. Risk factors center on dependence on asset levels and market values, a large share of revenue from the Price funds under terminable contracts, fee waivers on money market funds driven by low rates, and competition.
Feb 8, 2011
2009
Price T Rowe Group Annual Report, Year Ended Dec 31, 2009
T. Rowe Price Group, Inc. reported in its 10-K for fiscal 2009 a sharp rebound in assets under management, which ended the year at $391.3 billion, up from $276.3 billion at the end of 2008 and approaching the historical period-end high of $400.0 billion at December 31, 2007. Net inflows were $22.7 billion for the year, including $14.7 billion in the second half, and market gains and income added $92.3 billion. Despite the asset recovery, results declined as average assets under management of $321.3 billion were $36.9 billion lower than in 2008. Investment advisory revenues fell 12% to more than $1.5 billion, net revenues fell to $1.87 billion, net operating income declined to $702 million, and net income fell to $434 million, with diluted earnings per share of $1.65 versus $1.81 in 2008. The company reported operating expenses $102 million lower than in 2008 following cost reduction efforts, including a 5.5% workforce reduction in April 2009. The filing describes a company that remains debt-free, with stockholders' equity of $2.88 billion at year end and cash and cash equivalents of $743.3 million. Management stated that the firm does not maintain an available external source of liquidity given its financial resources. Dividends declared rose to $1.00 per share for 2009 from $.96 in 2008, and the company repurchased about 2.3 million shares for $67 million during 2009. Subsequent to year end, on January 20, 2010, the company completed the acquisition of a 26% equity interest in UTI Asset Management Company and an affiliate for $142.4 million plus transaction costs of about $3.5 million. Key risks highlighted include dependence on fees from the T. Rowe Price mutual funds, which are generally terminable on 60-day notice; revenue sensitivity to market declines and investor withdrawals; and reliance on third-party financial intermediaries, which the filing says source more than 30% of assets under management. Fee reductions on money market funds, made to keep yields at or above 0%, continued into 2010.
Feb 5, 2010
2008
Price T Rowe Group Annual Report, Year Ended Dec 31, 2008
T. Rowe Price Group, Inc. (NASDAQ: TROW) is a financial services holding company whose revenues and net income derive primarily from investment advisory services to individual and institutional investors in the sponsored T. Rowe Price mutual funds and other investment portfolios. Total assets under management decreased $123.7 billion during 2008 to end the year at $276.3 billion, including $164.4 billion in the T. Rowe Price mutual funds distributed in the United States and $111.9 billion in other investment portfolios. The firm still recorded net inflows of $17.1 billion for 2008, though net inflows were $17.8 billion in the first half and net outflows of $.7 billion in the second half. Financially, net revenues were $2.12 billion in 2008 compared with $2.23 billion in 2007 on a net revenue basis, net operating income fell 14.8% to $848.5 million, and the operating margin declined to 40.1% from 44.7%. Net income fell 27% to $490.8 million, and diluted earnings per share were $1.82, down from $2.40. Non-operating investment losses of $52.3 million included $91.3 million of other-than-temporary impairments on sponsored mutual fund investments. The company stated it remains debt-free, with cash and mutual fund investments exceeding $1.1 billion, and it repurchased 12,948,037 shares during 2008. Management expects 2009 operating expenses to fall below 2007 levels and plans quarterly dividends in 2009 that will exceed the $.96 per share paid in 2008. The filing also highlights concentration and market risks. More than 30% of assets under management come from third-party financial intermediaries, and a significant majority of revenues are based on contracts with the Price funds that can be terminated on 60-day notice. Because advisory fees are tied to asset values, management notes that continued market stress and lower equity valuations would reduce average assets, advisory fees and net income in future periods.
Feb 6, 2009
2007
Price T Rowe Group Annual Report, Year Ended Dec 31, 2007
T. Rowe Price Group, Inc. reported a record year in 2007, with total assets under management ending the year at $400.0 billion, up $65.3 billion or 19.5% during 2007. Net inflows were nearly $34 billion, and market appreciation and income added more than $31 billion. Net revenues rose 23%, or $413.3 million, to $2.2 billion, and net income increased $141.0 million, or almost 27%, to $670.6 million. Diluted earnings per share rose from $1.90 to $2.40, and the operating margin improved to 44.7% from 43.4%. The filing emphasizes that revenues depend on the value and composition of assets under management, so market declines, investor withdrawals, or fee reductions by the Price funds could materially reduce revenues. Investment advisory revenues from the Price funds and other portfolios rose sharply, and more than 30% of assets under management come from third-party financial intermediaries. The company also flagged risks from the subprime-driven market turmoil and the early-2008 market decline. Investors should weigh its strong 2007 performance against the concentration of revenue in fund-based advisory fees and the sensitivity of earnings to market conditions. The company's balance sheet grew to $3.18 billion in total assets, with stockholders' equity of $2.78 billion and cash and investment holdings above $1.6 billion. Management expects to pay quarterly dividends of $.24 per share in 2008 and projects property and equipment spending of nearly $200 million that year. Repurchases totaled $312.1 million in cash flows during 2007, and KPMG issued an unqualified opinion on both the financial statements and internal control over financial reporting.
Feb 7, 2008
2006
Price T Rowe Group Annual Report, Year Ended Dec 31, 2006
T. Rowe Price Group, Inc. reported record results for fiscal 2006. Total assets under management ended the year at a record $334.7 billion, up 24% or $65.2 billion, driven by net inflows of $27.8 billion and market appreciation and income of $37.4 billion. Net revenues rose to $1.815 billion from $1.512 billion, net operating income increased 20% to $787 million, and net income increased 23% to $529.6 million, or $1.90 diluted earnings per share. The filing states the operating margin was 43.4%. Investment advisory revenues were up 22% to $1.5 billion, with the T. Rowe Price mutual funds distributed in the U.S. contributing nearly $1.1 billion. Mutual fund net inflows were $12.9 billion, including $6.6 billion from the target-date Retirement Funds, whose assets reached $17.3 billion at year-end. The filing highlights strong relative investment performance, with 80% of the Price funds across share classes surpassing their Lipper averages on a total return basis over five years, and 78 stock and bond funds rated four or five stars by Morningstar. The 2006 results include a $59.2 million non-cash stock option expense from the adoption of SFAS 123R, which reduced diluted earnings per share by approximately $.14. The company also declared quarterly dividends of $.17 per share in the fourth quarter and expects to maintain that rate for the first three quarters of 2007. Stockholders' equity increased to $2.4 billion, and cash and investment holdings were $1.4 billion at year-end. Risks highlighted in the filing include the dependence of revenue on asset values, which fluctuate with market conditions and investor withdrawals, and the fact that a significant majority of revenues come from Price fund contracts terminable on 60 days' notice. The filing also notes that about 30% of assets under management come from third-party financial intermediaries, and that the company faces intense competition. Management also announced leadership changes: James A.C. Kennedy became Chief Executive Officer and President and Brian C. Rogers became Chairman, both effective in 2007.
Feb 8, 2007
2005
Price T Rowe Group Annual Report, Year Ended Dec 31, 2005
T. Rowe Price Group, Inc. (NASDAQ: TROW) reported record year-end 2005 results in its Form 10-K filed February 16, 2006. Total assets under management rose $34.3 billion during 2005 to a record $269.5 billion, including $208.3 billion of equity securities and $61.2 billion of debt securities. Net cash inflows were $16.1 billion, down from a record $20.7 billion in 2004, and market appreciation and income added $18.2 billion. The company derives its revenue primarily from investment advisory fees earned on the T. Rowe Price mutual funds ($170.2 billion at year-end) and other investment portfolios ($99.3 billion). Financially, net revenues rose to $1.51 billion, net operating income increased to $655 million from $525 million, and net income reached $430.9 million, up from $337.3 million, with diluted earnings per share of $3.15 versus $2.51 in 2004. Operating cash flow was $539 million, and stockholders' equity grew to $2.04 billion. The filing notes that revenues depend heavily on asset values and composition, that a significant majority of revenues come from Price fund contracts terminable on 60 days' notice, and that the company will adopt SFAS 123R on January 1, 2006, with its effective tax rate expected to rise to 37.2% in 2006. The filing highlights strong relative performance, with at least 70% of Price funds beating Lipper peer averages over the one-, three-, five- and 10-year periods, and 59% of rated U.S. mutual funds earning four or five Morningstar stars. Management expects 2006 advertising and promotion spending to be 5% to 10% higher than in 2005.
Feb 16, 2006
2004
Price T Rowe Group Annual Report, Year Ended Dec 31, 2004
T. Rowe Price Group, Inc. reported record results for fiscal 2004. Assets under management ended the year at a record $235.2 billion, up more than $45 billion during the year, driven by $24.5 billion of market appreciation and income and a record $20.7 billion of net investor inflows. Of the inflows, nearly $12.7 billion went into U.S. mutual funds and $8.0 billion into other portfolios. Net operating income rose $160 million to $525 million, and net income increased to $337 million from $227.5 million in 2003, with diluted earnings per share of $2.51 versus $1.77. Net revenues reached $1.277 billion. Investment advisory fees rose 32% to $1.03 billion, and compensation costs increased 20%. The balance sheet strengthened, with stockholders' equity rising to $1.697 billion from $1.329 billion and cash and cash equivalents reaching $499.8 million. The company carries no debt, and goodwill of $666 million is tied to its single investment advisory business. Management stated that the goodwill fair value test in 2004 showed no impairment. The company also raised its quarterly dividend to $.23 per share in December 2004 and expects to maintain that rate for the first three quarters of 2005. Management expects 2005 advertising and promotion spending to be 10% to 15% higher than 2004, and it anticipates that stock option expensing under the revised FASB Statement No. 123 will begin in the third quarter of 2005. Key risks disclosed include the company's dependence on Price fund advisory agreements, which can be terminated by either party after 60 days' notice, and the potential effect of market declines on revenues. The filing also discloses a pending purported class action related to market timing in the T. Rowe Price International Stock Fund, and management considers an adverse outcome unlikely to be material.
Mar 1, 2005
2003
Price T Rowe Group Annual Report, Year Ended Dec 31, 2003
T. Rowe Price Group, Inc. reported a record year in 2003, with total assets under management rising $49.4 billion to an all-time high of $190.0 billion, including $135.5 billion in equity securities and $54.5 billion in debt securities. Improving financial markets added more than $36 billion to assets, and net investor inflows added more than $13 billion, with $7.5 billion going to the T. Rowe Price mutual funds for U.S. investors and $5.8 billion to other investment portfolios. Net income rose to $227.5 million, or $1.77 diluted earnings per share, from $194.3 million, or $1.52, in 2002, and net revenues increased to $996 million from $924 million. Operating results improved as net operating income grew to $365.0 million from $320.5 million, while compensation costs rose to $383 million. The company repaid its remaining $56.7 million of debt during 2003, ended the year with debt of zero, and increased stockholders' equity to $1.33 billion. The quarterly dividend was raised to $.19 per share in December 2003, the eighteenth consecutive annual increase, and management expects to maintain that rate for the first three quarters of 2004. The filing also flags risks. Management expects financial market growth in 2004 to be lower than in 2003, and advisory revenues depend heavily on the Price funds, which can be terminated by their boards on 60 days' notice. Two purported class actions related to alleged market timing in the T. Rowe Price International Stock and New Asia Funds were filed in 2003, and the company says they are without merit. Management also expects advertising spending to rise in 2004 as it pursues new investors.
Mar 1, 2004
2002
Price T Rowe Group Annual Report, Year Ended Dec 31, 2002
T. Rowe Price Group, Inc. (Nasdaq: TROW) is a financial services holding company whose revenues and net income come primarily from investment advisory services to individual and institutional investors in the sponsored T. Rowe Price mutual funds and other investment portfolios. Assets under management fell $15.7 billion during 2002 to end the year at $140.6 billion, the lowest year-end figure of the past five years, as equity markets declined for a third straight year. Net cash inflows to the Price funds totaled $3.1 billion, the most since 1998, but lower market valuations reduced mutual fund assets by $13.8 billion. Financially, net revenues declined 7% to $923.5 million and net income was essentially flat at $194.3 million, with diluted earnings per share unchanged at $1.52. Results were supported by a $81.2 million reduction in operating expenses, including the elimination of $28.9 million of goodwill amortization under the new accounting standard, and the company stated its operating cash flow and financial condition remained strong. Net non-operating results swung to a loss of $10.9 million, driven by investment losses, and stockholders' equity rose to $1.13 billion. The company repaid $49 million of debt and repurchased 2.8 million shares for $96 million during 2002, and it declared a quarterly dividend increase to $.17 per share in December 2002. The filing also flags sensitivity to market conditions and fund flows. Management states that the potential loss on sponsored mutual fund holdings from a hypothetical decline was $16.2 million, and that the company's revenues depend substantially on fees under contracts with the Price funds. Management also notes that under FASB Interpretation No. 46 it may need to consolidate two $300 million high-yield collateralized bond obligations beginning July 1, 2003, with maximum exposure limited to a $10 million carrying amount.
Mar 6, 2003
2001
Price T Rowe Group Annual Report, Year Ended Dec 31, 2001
T. Rowe Price Group, Inc. (Nasdaq: TROW) reported that 2001 was a difficult year for financial markets, the second consecutive year of declines. Total assets under management fell $10.4 billion, or 6%, to $156.3 billion at December 31, 2001, from $166.7 billion a year earlier. Net market declines of $13.8 billion reduced assets, while the company recorded net inflows of $2.9 billion into other investment portfolios and $514 million into mutual funds. Revenues declined 15% to $1.03 billion from $1.21 billion, and net income decreased $73.2 million, or 27%, to $195.9 million. Diluted earnings per share fell from $2.08 to $1.52. Management cut costs in response: headcount was reduced by more than 9% to about 3,650 and operating expenses declined about 8% to $697 million, with advertising and promotion down almost 27%. Stockholders' equity surpassed $1 billion for the first time, reaching $1.08 billion. Operating cash flow was $290 million, and the company repurchased about 1.1 million shares and reduced acquisition debt by $205 million, leaving $90 million outstanding under the credit facility. Looking ahead, the filing notes that goodwill amortization from the 2000 acquisition of the 50% interest in T. Rowe Price International will cease after 2001 under new accounting standards, and management does not expect to recognize an impairment loss on adoption. The company also expanded into Europe through a U.K. subsidiary and introduced Section 529 college savings plans, and it expects first-half 2002 investment income and advertising spending to be lower than in the comparable 2001 period.
Mar 14, 2002
2000
Price T Rowe Group Annual Report, Year Ended Dec 31, 2000
T. Rowe Price Group, Inc. (Nasdaq: TROW) is a financial services holding company formed in 2000 that derives its consolidated revenues and net income primarily from investment advisory services provided to individual and institutional investors in the T. Rowe Price mutual funds and other investment portfolios. The company completed the share exchange with T. Rowe Price Associates on December 28, 2000, and in 2000 it finished the most significant financial transaction in its history by acquiring Robert Fleming Holdings' 50% non-controlling interest in Rowe Price-Fleming International for $783 million, including $704 million of goodwill, financed with $483 million of cash and $300 million of borrowings. Revenues rose to a record $1.21 billion and net income to a record $269.0 million, or $2.08 diluted earnings per share, but total assets under management declined $13.2 billion during 2000 to $166.7 billion, the first annual decline in the company's fifteen years as a public company. The filing shows a mixed year for investors. Market declines and net cash outflows reduced assets under management, with the Equity Income Fund experiencing $3.2 billion of net redemptions, while the Science & Technology Fund drew $2.6 billion of net inflows. Operating expenses rose 21% to $754 million, driven by compensation, technology spending, and goodwill amortization, and management expects lower investment income and performance-related fees in 2001 as market conditions weakened. The company also reported that its quarterly dividend was raised to $.15 in December 2000, the fifteenth consecutive annual increase since its 1986 public offering. The balance sheet changed materially, with goodwill rising to $695.0 million and debt to $312.3 million at year-end 2000, compared with $17.7 million in 1999. Stockholders' equity grew to $991.1 million, and operating cash flow was $322.7 million. Management plans to use available cash to reduce borrowings in 2001 and expects capital expenditures of approximately $57 million that will be funded from operating cash flow.
Mar 26, 2001