Federated Investors, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013
January 23, 2014 at 04:01 pm EST
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Federated Investors, Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2013. For the quarter, the company reported total revenue of $214,722,000 compared to $244,824,000 a year ago. Operating income was $59,758,000 compared to $83,192,000 a year ago. Income before income taxes was $64,215,000 compared to $80,917,000 a year ago. Net income was $41,071,000 compared to $49,581,000 a year ago. Basic and diluted earnings per share was $0.39 compared to $0.44 a year ago. Revenue decreased by $30.1 million or 12% due primarily to an increase in voluntary fee waivers related to certain money market funds in order for those funds to maintain positive or zero net yields and a decrease in revenue due to lower average money market and fixed-income assets. The decrease was partially offset by an increase in revenue from higher average equity assets.
For the year, the company reported total revenue of $878,365,000 compared to $945,706,000 a year ago. Operating income was $251,743,000 compared to $312,593,000 a year ago. Income before income taxes was $259,015,000 compared to $308,511,000 a year ago. Net income was $162,177,000 compared to $188,088,000 a year ago. Basic and diluted earnings per share was $1.55 compared to $1.79 a year ago. Revenue decreased by $67.3 million or 7% primarily due to an increase in voluntary fee waivers and was partially offset by an increase in revenue due to higher average equity assets.
Federated Hermes, Inc. is an investment management company. The Company operates through a single segment, being the investment management business. It sponsors, markets and provides investment-related services to various investment products, including sponsored investment companies and other funds (Federated Hermes Funds); and Separate Accounts, which include separately managed accounts (SMAs), institutional accounts, sub-advised funds and other managed products in both domestic and international markets. In addition, it markets and provides stewardship and real estate development services to various domestic and international companies. The Company provides investment advisory services to approximately 180 Federated Hermes Funds. It markets these funds to institutional customers and banks, broker/dealers and other financial intermediaries who use them to meet the needs of customers and/or clients, including, among others, retail investors, corporations and retirement plans.