Legg Mason Reports Net Income In Q3 - Quick Facts

(RTTNews) - Legg Mason, Inc. (LM) reported third-quarter net income of $51.4 million, or $0.50 per share compared to a net loss of $138.6 million, or $1.31 per share, in the third quarter of prior year. The current quarter's results included non-cash impairment charges totaling $35.0 million, or $0.25 per share as well as contingent consideration credit adjustments of $14.5 million, or $0.10 per share, compared to $26.4 million, or $0.25 per share, in the prior year's quarter. The current quarter also included acquisition and transition-related costs at EnTrustPermal of $3.0 million, or $0.02 per share. The prior year's third quarter included impairment charges of $371.0 million, or $2.79 per share. Third-quarter operating Income, as adjusted, was $140.78 million compared to $108.42 million, prior year.

Third-quarter operating revenues were $715.2 million, up 8% compared to $659.6 million in the third quarter of fiscal 2016. Operating expenses were $604.1 million, down 33% from $900.2 million in the third quarter of fiscal 2016. Operating revenues, as adjusted, increased to $590.03 million from $526.79 million.

Joseph Sullivan, CEO of Legg Mason said, "During the quarter, Legg Mason delivered operating results that were in line with market expectations, after excluding some non-cash charges, while continuing to drive strategic progress despite significant industry headwinds. The company's operating results reflect higher non-pass through performance fees for the quarter and our continued focus on managing costs."