BOSTON, Nov. 26, 2019 /PRNewswire/ -- Eaton Vance
Corp. (NYSE: EV) today reported earnings per diluted share of
$3.50 for the fiscal year ended
October 31, 2019, an increase of 13
percent from $3.11 of earnings per
diluted share in the fiscal year ended October 31, 2018.
The Company reported adjusted earnings per diluted
share(1) of $3.45 for the fiscal year ended October 31, 2019, an increase of 7 percent from
$3.21 of adjusted earnings per
diluted share in the fiscal year ended October 31, 2018. Earnings under U.S. generally
accepted accounting principles (U.S. GAAP) exceeded adjusted
earnings by $0.05 per diluted share
in the fiscal year ended October 31,
2019, reflecting the reversal of net excess tax benefits
related to stock‐based compensation awards of $5.4 million. Adjusted earnings exceeded earnings
under U.S. GAAP by $0.10 per diluted
share in the fiscal year ended October 31,
2018, reflecting the add back of $24.0 million of charges related to enactment of
the Tax Cuts and Jobs Act (the 2017 Tax Act), a $6.5 million charge recognized upon the
expiration of the Company's option to acquire an additional 26
percent ownership interest in 49 percent-owned Hexavest, Inc.
(Hexavest) and the reversal of net excess tax benefits related to
stock‐based compensation awards of $17.5
million.
The Company reported earnings per diluted share of $0.96 for the fourth quarter of fiscal 2019, an
increase of 10 percent from $0.87 of
earnings per diluted share in the fourth quarter of fiscal 2018 and
an increase of 7 percent from $0.90
of earnings per diluted share in the third quarter of fiscal
2019.
The Company reported adjusted earnings per diluted share of
$0.95 for the fourth quarter of
fiscal 2019, an increase of 12 percent from $0.85 of adjusted earnings per diluted share in
the fourth quarter of fiscal 2018 and an increase of 6 percent from
$0.90 of adjusted earnings per
diluted share in the third quarter of fiscal 2019. Earnings under
U.S. GAAP exceeded adjusted earnings by $0.01 per diluted share in the fourth quarter of
fiscal 2019 and $0.02 per diluted
share in the fourth quarter of fiscal 2018, reflecting the reversal
of net excess tax benefits related to stock‐based compensation
awards of $1.5 million and
$2.4 million, respectively. Earnings
under U.S. GAAP matched adjusted earnings in the third quarter of
fiscal 2019.
Net gains and other investment income related to seed capital
investments contributed $0.13 and
$0.03 to earnings per diluted share
in the fiscal years ended October 31,
2019 and 2018, respectively. Other income and expense
amounts related to consolidated collateralized loan obligation
(CLO) entities contributed $0.07 and
$0.01 to earnings per diluted share
in the fiscal years ended October 31,
2019 and 2018, respectively.
Net gains and other investment income related to seed capital
investments contributed $0.04 to
earnings per diluted share in the fourth quarter of fiscal 2019,
$0.01 in the fourth quarter of fiscal
2018 and $0.06 in the third quarter
of fiscal 2019. Other income and expense amounts related to
consolidated CLO entities contributed $0.04 to earnings per diluted share in the fourth
quarter of fiscal 2019, were negligible in the fourth quarter of
fiscal 2018 and reduced earnings by $0.02 per diluted share in the third quarter of
fiscal 2019.
Consolidated net inflows of $23.9
billion in the fiscal year ended October 31, 2019 represent 5 percent internal
growth in managed assets (consolidated net inflows divided by
beginning of period consolidated assets under management). This
compares to net inflows of $17.3
billion and 4 percent internal growth in managed assets in
the fiscal year ended October 31,
2018. Excluding exposure management mandates, the Company's
internal growth in managed assets was 4 percent and 8 percent in
the fiscal years ended October 31,
2019 and 2018, respectively.
Consolidated net inflows of $9.8
billion in the fourth quarter of fiscal 2019 represent 8
percent annualized internal growth in managed assets. This compares
to net inflows of $2.1 billion and 2
percent annualized internal growth in managed assets in the fourth
quarter of fiscal 2018 and net inflows of $8.0 billion and 7 percent annualized internal
growth in managed assets in the third quarter of fiscal 2019.
Excluding exposure management mandates, the Company's annualized
internal growth in managed assets was 3 percent in the fourth
quarter of fiscal 2019 and 5 percent in both the fourth quarter of
fiscal 2018 and the third quarter of fiscal 2019.
The Company's internal management fee revenue growth (management
fees attributable to consolidated inflows less management fees
attributable to consolidated outflows divided by beginning of
period consolidated management fee revenue) was negligible in the
fiscal year ended October 31, 2019
and 4 percent in the fiscal year ended October 31, 2018. The Company's annualized
internal management fee revenue growth was 2 percent in the fourth
quarter of fiscal 2019, 1 percent in the fourth quarter of fiscal
2018 and 2 percent in the third quarter of fiscal 2019. These
growth rates reflect the Company's retrospective adoption of
Accounting Standard Update (ASU) 2014-09, Revenue from Contracts
with Customers, on November 1,
2018, which provides for management fee revenue to be
recorded net of associated subsidy expenses.
Consolidated assets under management were $497.4 billion on October
31, 2019, up 13 percent from $439.3
billion of consolidated managed assets on October 31, 2018 and up 3 percent from
$482.8 billion of consolidated
managed assets on July 31, 2019. The
year-over-year increase in consolidated assets under management
reflects net inflows of $23.9 billion
and market price appreciation of $34.2
billion in the fiscal year ended October 31, 2019. The sequential quarterly
increase in consolidated assets under management reflects net
inflows of $9.8 billion and market
price appreciation of $4.9 billion in
the fourth quarter of fiscal 2019.
"Eaton Vance closed fiscal 2019 with record annual and quarterly
earnings and new highs in assets under management," said
Thomas E. Faust Jr., Chairman and
Chief Executive Officer. "While not immune from our industry's
continuing challenges, we remain confident of our future growth
prospects."
Average consolidated assets under management were $462.8 billion in the fiscal year ended
October 31, 2019, up 5 percent from
$442.4 billion in the fiscal year
ended October 31, 2018. Average
consolidated assets under management were $488.9 billion in the fourth quarter of fiscal
2019, up 8 percent from $453.3
billion in the fourth quarter of fiscal 2018 and up 4
percent from $471.0 billion in the
third quarter of fiscal 2019.
As shown in Attachment 10, excluding performance-based fees,
annualized management fee rates on consolidated assets under
management averaged 31.6 basis points in the fiscal year ended
October 31, 2019, down 4 percent from
33.0 basis points in the fiscal year ended October 31, 2018. Excluding performance-based
fees, annualized management fee rates on consolidated assets under
management averaged 30.8 basis points in the fourth quarter of
fiscal 2019, down 6 percent from 32.7 basis points in the fourth
quarter of fiscal 2018 and down 3 percent from 31.8 basis points in
the third quarter of fiscal 2019. Changes in average annualized
management fee rates for the compared periods primarily reflect
shifts in the Company's mix of business. Average annualized
management fee rates for prior year periods have been restated to
reflect the retrospective adoption of ASU 2014-09 on November 1, 2018 as described above.
Attachments 5 and 6 summarize the Company's consolidated assets
under management and net flows by investment mandate and investment
vehicle reporting categories. Attachments 7, 8 and 9 summarize the
Company's ending consolidated assets under management by investment
mandate, investment vehicle and investment affiliate. Attachment 10
shows the Company's average annualized management fee rates by
investment mandate.
As shown in Attachments 5 and 6, consolidated sales and other
inflows were $168.9 billion in the
fiscal year ended October 31, 2019,
up 8 percent from $156.5 billion in
the fiscal year ended October 31,
2018. Consolidated sales and other inflows were $46.6 billion in the fourth quarter of fiscal
2019, up 32 percent from $35.2
billion in the fourth quarter of fiscal 2018 and up 14
percent from $40.8 billion in the
third quarter of fiscal 2019.
Consolidated redemptions and other outflows were $144.9 billion in the fiscal year ended
October 31, 2019, up 4 percent from
$139.1 billion in the fiscal year
ended October 31, 2018. Consolidated
redemptions and other outflows were $36.8
billion in the fourth quarter of fiscal 2019, up 12 percent
from $33.0 billion in the fourth
quarter of fiscal 2018 and up 12 percent from $32.8 billion in the third quarter of fiscal
2019.
As of October 31, 2019, the
Company's 49 percent-owned affiliate Hexavest Inc. (Hexavest)
managed $13.4 billion of client
assets, down 3 percent from $13.8
billion of managed assets on October
31, 2018 and substantially unchanged from the $13.4 billion of managed assets on July 31, 2019. Hexavest had net outflows of
$1.6 billion and $2.2 billion in the fiscal years ended
October 31, 2019 and 2018,
respectively. Hexavest had net outflows of $0.4 billion in the fourth quarter of fiscal
2019, net outflows of $0.9 billion in
the fourth quarter of fiscal 2018 and net outflows of $0.6 billion in the third quarter of fiscal 2019.
Attachment 11 summarizes the assets under management and net flows
of Hexavest. Other than Eaton Vance-sponsored funds for which
Hexavest is the adviser or sub-adviser, the managed assets and
flows of Hexavest are not included in Eaton Vance consolidated
totals.
Financial
Highlights(2)
|
(in thousands,
except per share figures)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
October
31,
|
July
31,
|
October
31,
|
|
October
31,
|
October
31,
|
|
2019
|
2019
|
2018
|
|
2019
|
2018
|
Revenue
|
$
|
433,740
|
$
|
431,235
|
$
|
430,795
|
|
$
|
1,683,252
|
$
|
1,692,422
|
Expenses
|
|
298,307
|
|
294,100
|
|
286,343
|
|
|
1,162,381
|
|
1,137,220
|
Operating
income
|
|
135,433
|
|
137,135
|
|
144,452
|
|
|
520,871
|
|
555,202
|
Operating margin
|
|
31.2%
|
|
31.8%
|
|
33.5%
|
|
|
30.9%
|
|
32.8%
|
Non-operating income
(expense)
|
|
15,599
|
|
5,470
|
|
(4,912)
|
|
|
38,167
|
|
(11,967)
|
Income
taxes
|
|
(34,254)
|
|
(36,304)
|
|
(36,823)
|
|
|
(135,252)
|
|
(156,703)
|
Equity in net income
of affiliates, net of tax
|
|
2,172
|
|
2,235
|
|
2,496
|
|
|
9,090
|
|
11,373
|
Net income
|
|
118,950
|
|
108,536
|
|
105,213
|
|
|
432,876
|
|
397,905
|
Net income
attributable to non-controlling
|
|
|
|
|
|
|
|
|
|
|
|
and
other beneficial interests
|
|
(9,744)
|
|
(6,315)
|
|
274
|
|
|
(32,841)
|
|
(15,967)
|
Net income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
Eaton
Vance Corp. shareholders
|
$
|
109,206
|
$
|
102,221
|
$
|
105,487
|
|
$
|
400,035
|
$
|
381,938
|
Adjusted net income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
Eaton
Vance Corp. shareholders
|
$
|
107,665
|
$
|
101,584
|
$
|
102,383
|
|
$
|
394,631
|
$
|
394,138
|
Earnings per diluted
share
|
$
|
0.96
|
$
|
0.90
|
$
|
0.87
|
|
$
|
3.50
|
$
|
3.11
|
Adjusted earnings per
diluted share
|
$
|
0.95
|
$
|
0.90
|
$
|
0.85
|
|
$
|
3.45
|
$
|
3.21
|
Fiscal 2019 vs. Fiscal
2018(2)
In fiscal 2019, revenue decreased 1 percent to $1.68 billion from $1.69
billion in fiscal 2018. Management fees were substantially
unchanged year-over-year, as a 5 percent increase in average
consolidated assets under management was offset by lower
consolidated average management fee rates. Performance fees were
$1.7 million in fiscal 2019 and
$(1.7) million in fiscal 2018. Distribution and service fee
revenues were collectively down 5 percent, reflecting lower managed
assets in fund share classes that are subject to these fees.
Operating expenses increased 2 percent to $1.16 billion in fiscal 2019 from $1.14 billion in fiscal 2018. Increases in
compensation, service fee expense, amortization of deferred sales
commissions, fund-related expenses and other operating expenses
were partially offset by a decrease in distribution expense. The
increase in compensation reflects higher salaries and benefits
associated with increases in headcount, higher stock-based
compensation and increases in severance, partially offset by lower
sales-based incentive compensation and operating income-based bonus
accruals. The increase in service fee expense reflects higher Class
A and private fund service fee payments, partially offset by lower
Class C service fee payments. The increase in amortization of
deferred sales commissions reflects higher private fund commission
amortization. The increase in fund-related expenses reflects higher
sub-advisory fees paid. Other operating expenses increased 5
percent, primarily reflecting increases in information technology
spending, facilities expenses and travel expenses, partially offset
by a decrease in amortization expense related to certain intangible
assets that were fully amortized during the first quarter of fiscal
2019 and lower professional services expenses. The decrease in
distribution expense primarily reflects lower Class C distribution
fee payments, partially offset by higher marketing and promotion
costs and an increase in up-front sales commission expense.
Operating income decreased 6 percent to $520.9 million in fiscal 2019 from $555.2 million in fiscal 2018. Operating margin
decreased to 30.9 percent in fiscal 2019 from 32.8 percent in
fiscal 2018.
Non-operating income totaled $38.2
million in fiscal 2019 versus $12.0
million of non-operating expense in fiscal 2018. The
year-over-year change primarily reflects a $41.0 million increase in net gains and other
investment income from the Company's investments in sponsored
strategies, including consolidated sponsored funds, and a
$9.3 million increase in income
contribution from consolidated CLO entities.
The Company's effective tax rate, calculated as a percentage of
income before income taxes and equity in net income of affiliates,
was 24.2 percent in fiscal 2019 and 28.8 percent in fiscal 2018.
The Company's effective tax rate is discussed in greater detail
under "Taxation" below.
Equity in net income of affiliates was $9.1 million in fiscal 2019 and $11.4 million in fiscal 2018. In fiscal 2019,
substantially all equity in net income of affiliates related to the
Company's investment in Hexavest. Equity in net income of
affiliates in fiscal 2018 included $11.0
million from the Company's Hexavest investment and
$0.4 million from the Company's
investment in a private equity partnership.
As detailed in Attachment 3, net income attributable to
non-controlling and other beneficial interests was $32.8 million in fiscal 2019 and $16.0 million in fiscal 2018. The year-over-year
change reflects an increase in income earned by consolidated
sponsored funds and the Company's accelerated repurchase of certain
profit and capital interests in Parametric Portfolio Associates LLC
(Parametric) entities held by current and former employees, which
settled at the end of the fourth quarter of fiscal 2019.
The Company's weighted average basic shares outstanding were
110.1 million in fiscal 2019 and 114.7 million in fiscal 2018, a
decrease of 4 percent. The year-over-year reduction reflects share
repurchases in excess of new shares issued upon the vesting of
restricted stock awards and the exercise of employee stock options.
On a diluted basis, the Company's weighted average shares
outstanding were 114.4 million in fiscal 2019 and 122.9 million in
fiscal 2018, a decrease of 7 percent. The decline in weighted
average diluted shares outstanding further reflects a decrease in
the dilutive effect of in-the-money options and unvested restricted
stock awards due to lower market prices of the Company's
shares.
Fourth Quarter Fiscal 2019 vs. Fourth Quarter Fiscal
2018(2)
In the fourth quarter of fiscal 2019, revenue increased 1
percent to $433.7 million from
$430.8 million in the fourth quarter
of fiscal 2018. Management fees were up 2 percent, as an 8 percent
increase in average consolidated assets under management more than
offset lower consolidated average management fee rates. Performance
fees were $0.1 million in the
fourth quarter of fiscal 2019 and $(0.3) million in the fourth
quarter of fiscal 2018. Distribution and service fee revenues were
collectively down 3 percent, reflecting lower managed assets in
fund share classes that are subject to these fees.
Operating expenses increased 4 percent to $298.3 million in the fourth quarter of fiscal
2019 from $286.3 million in the
fourth quarter of fiscal 2018. Increases in compensation, service
fee expense, amortization of deferred sales commissions and
fund-related expenses were partially offset by decreases in
distribution expense and other operating expenses. The increase in
compensation reflects higher salaries and benefits associated with
increases in headcount, higher stock-based compensation and
increases in severance, partially offset by decreases in
performance-based and operating income-based bonus accruals and
lower sales-based incentive compensation. The increase in service
fee expense reflects higher Class A and private fund service fee
payments, partially offset by lower Class C service fee payments.
The increase in amortization of deferred sales commissions reflects
higher private fund commission amortization. The increase in
fund-related expenses reflects higher sub-advisory fees paid. The
decrease in distribution expense primarily reflects lower Class C
distribution fee payments, partially offset by an increase in
up-front sales commission expense. Other operating expenses
decreased by 1 percent, primarily reflecting lower professional
services expenses and a decrease in amortization expense related to
certain intangible assets that were fully amortized during the
first quarter of fiscal 2019, partially offset by an increase in
information technology spending and facilities expenses.
Operating income decreased 6 percent to $135.4 million in the fourth quarter of fiscal
2019 from $144.5 million in the
fourth quarter of fiscal 2018. Operating margin decreased to 31.2
percent in the fourth quarter of fiscal 2019 from 33.5 percent in
the fourth quarter of fiscal 2018.
Non-operating income totaled $15.6
million in the fourth quarter of fiscal 2019 versus
$4.9 million of non-operating expense
in the fourth quarter of fiscal 2018. The year-over-year change
reflects a $14.6 million increase in
net gains and other investment income from the Company's
investments in sponsored strategies, including consolidated
sponsored funds, and a $5.9 million
increase in income contribution from consolidated CLO entities.
The Company's effective tax rate, calculated as a percentage of
income before income taxes and equity in net income of affiliates,
was 22.7 percent in the fourth quarter of fiscal 2019 and 26.4
percent in the fourth quarter of fiscal 2018. The Company's
effective tax rate is discussed in greater detail under "Taxation"
below.
Equity in net income of affiliates was $2.2 million and $2.5
million in the fourth quarters of fiscal 2019 and 2018,
respectively, substantially all relating to the Company's
investment in Hexavest.
As detailed in Attachment 3, net income (loss) attributable to
non-controlling and other beneficial interests was $9.7 million in the fourth quarter of fiscal 2019
and $(0.3) million in the fourth
quarter of fiscal 2018. The year-over-year change reflects an
increase in income earned by consolidated sponsored funds and the
Company's accelerated repurchase of certain profit and capital
interests in Parametric entities held by current and former
employees, which settled at the end of the fourth quarter of fiscal
2019.
The Company's weighted average basic shares outstanding were
108.7 million in the fourth quarter of fiscal 2019 and 113.6
million in the fourth quarter of fiscal 2018, a decrease of 4
percent. The year-over-year reduction reflects share repurchases in
excess of new shares issued upon the vesting of restricted stock
awards and the exercise of employee stock options. On a diluted
basis, the Company's weighted average shares outstanding were 113.7
million in the fourth quarter of fiscal 2019 and 121.0 million in
the fourth quarter of fiscal 2018, a decrease of 6 percent. The
decline in weighted average diluted shares outstanding further
reflects a decrease in the dilutive effect of in-the-money options
and unvested restricted stock awards due to lower market prices of
the Company's shares.
Fourth Quarter Fiscal 2019 vs. Third Quarter Fiscal
2019
In the fourth quarter of fiscal 2019, revenue increased 1
percent to $433.7 million from
$431.2 million in the third quarter
of fiscal 2019. Management fees were up 1 percent, as a 4 percent
increase in average consolidated assets under management more than
offset lower consolidated average management fee rates. Performance
fees were $0.1 million in both the
fourth and third quarters of fiscal 2019. Distribution and service
fee revenues were collectively up 1 percent, reflecting higher
managed assets in fund share classes that are subject to these
fees.
Operating expenses increased 1 percent to $298.3 million in the fourth quarter of fiscal
2019 from $294.1 million in the third
quarter of fiscal 2019, reflecting increases in compensation,
distribution expense, service fee expense, amortization of deferred
sales commissions and fund-related expenses. The increase in
compensation reflects higher salaries and benefits associated with
increases in headcount, higher sales-based incentive compensation
and increases in severance, partially offset by decreases in
performance-based and operating income-based bonus accruals, lower
payroll taxes and a decrease in stock-based compensation. The
increase in distribution expense reflects higher marketing and
promotion costs and an increase in up-front sales commission
expense. The increase in service fee expense reflects higher
private fund service fee payments. The increase in amortization of
deferred sales commissions reflects higher private fund commission
amortization. The increase in fund-related expenses primarily
reflects an increase in fund expenses borne by the Company and
higher sub-advisory fees paid. Other operating expenses in the
fourth quarter of fiscal 2019 were substantially unchanged from the
third quarter of fiscal 2019.
Operating income decreased 1 percent to $135.4 million in the fourth quarter of fiscal
2019 from $137.1 million in the third
quarter of fiscal 2019. Operating margin decreased to 31.2 percent
in the fourth quarter of fiscal 2019 from 31.8 percent in the third
quarter of fiscal 2019.
Non-operating income totaled $15.6
million in the fourth quarter of fiscal 2019 and
$5.5 million in the third quarter of
fiscal 2019. The sequential change reflects a $9.8 million increase in income contribution from
consolidated CLO entities and a $0.3
million increase in net gains and other investment income
from the Company's investments in sponsored strategies, including
consolidated sponsored funds.
The Company's effective tax rate, calculated as a percentage of
income before income taxes and equity in net income of affiliates,
was 22.7 percent in the fourth quarter of fiscal 2019 and 25.5
percent in the third quarter of fiscal 2019. The Company's
effective tax rate is discussed in greater detail under "Taxation"
below.
Equity in net income of affiliates was $2.2 million in both the fourth and third
quarters of fiscal 2019, substantially all relating to the
Company's investment in Hexavest.
As detailed in Attachment 3, net income attributable to
non-controlling and other beneficial interests was $9.7 million in the fourth quarter of fiscal 2019
and $6.3 million in the third quarter
of fiscal 2019. The sequential change reflects an increase in
income earned by consolidated sponsored funds and the Company's
accelerated repurchase of certain profit and capital interests in
Parametric entities held by current and former employees, which
settled at the end of the fourth quarter of fiscal 2019.
The Company's weighted average basic shares outstanding
decreased to 108.7 million in the fourth quarter of fiscal 2019
from 109.1 million in the third quarter of fiscal 2019. The
sequential reduction reflects share repurchases in excess of new
shares issued upon the vesting of restricted stock awards and the
exercise of employee stock options. On a diluted basis, the
Company's weighted average shares outstanding increased to 113.7
million in the fourth quarter of fiscal 2019 from 113.5 million in
the third quarter of fiscal 2019. The increase in weighted average
diluted shares outstanding reflects an increase in the dilutive
effect of in-the-money options and unvested restricted stock awards
due to higher market prices of the Company's shares.
Taxation
The following table reconciles the statutory federal income tax
rate to the Company's effective tax rate:
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
October
31,
|
July
31,
|
October
31,
|
|
October
31,
|
October
31,
|
|
2019
|
2019
|
2018
|
|
2019
|
2018
|
Statutory U.S.
federal income tax rate(3)
|
21.0
|
%
|
21.0
|
%
|
23.3
|
%
|
|
21.0
|
%
|
23.3
|
%
|
State income taxes
for current year, net of
federal
income tax benefits
|
4.5
|
|
5.0
|
|
4.4
|
|
|
4.7
|
|
4.4
|
|
Net income
attributable to non-controlling
and
other beneficial interests
|
(1.7)
|
|
(1.3)
|
|
|
|
|
(1.2)
|
|
(0.7)
|
|
Other
items
|
(0.1)
|
|
1.2
|
|
0.9
|
|
|
0.7
|
|
0.6
|
|
Adjusted effective
income tax rate(4)
|
23.7
|
|
25.9
|
|
28.6
|
|
|
25.2
|
|
27.6
|
|
Non-recurring impact
of U.S. tax reform
|
|
|
-
|
-
|
(0.5)
|
|
|
|
|
4.4
|
|
Net excess tax
benefits from stock-based
compensation
plans(5)
|
(1.0)
|
|
(0.4)
|
|
(1.7)
|
|
|
(1.0)
|
|
(3.2)
|
|
Effective income
tax rate
|
22.7
|
%
|
25.5
|
%
|
26.4
|
%
|
|
24.2
|
%
|
28.8
|
%
|
The Company's income tax provision for fiscal 2019 includes
$3.2 million of charges associated
with certain provisions of the 2017 Tax Act taking effect for the
Company in fiscal 2019, relating principally to limitations on the
deductibility of executive compensation. These charges totaled
$0.7 million in the fourth quarter of
fiscal 2019 and $1.1 million in the
third quarter of fiscal 2019.
The Company's income tax provision for fiscal 2019 and 2018 was
reduced by net excess tax benefits related to stock-based
compensation awards of $5.4 million
and $17.5 million, respectively.
These net excess tax benefits totaled $1.5
million in the fourth quarter of fiscal 2019, $2.4 million in the fourth quarter of fiscal 2018
and $0.6 million in the third quarter
of fiscal 2019.
The Company's income tax provision for fiscal 2018 also included
a non-recurring charge of $24.0
million related to the enactment of the 2017 Tax Act. In the
fourth quarter of fiscal 2018, the Company's income tax provision
was reduced by $0.7 million due to
the refinement of prior estimates used to calculate the
non-recurring impact of the 2017 Tax Act.
The Company's calculations of adjusted net income and adjusted
earnings per diluted share remove the tax impact of stock-based
compensation shortfalls or windfalls recognized in connection with
the accounting guidance adopted by the Company in fiscal 2018 and
the non-recurring tax impact of U.S. tax law changes. On this
basis, the Company's adjusted effective tax rate was 25.2 percent
and 27.6 percent for fiscal 2019 and 2018, respectively, and was
23.7 percent in the fourth quarter of fiscal 2019, 28.6 percent in
the fourth quarter of fiscal 2018 and 25.9 percent in the third
quarter of fiscal 2019. On the same adjusted basis, the Company
estimates that its effective tax rate will be approximately 26.5 to
27.0 percent for fiscal 2020. The Company's actual adjusted
effective tax rate for fiscal 2020 may vary from this estimate due
to changes in the Company's tax policy interpretations and
assumptions, additional regulatory guidance that may be issued and
other factors.
Balance Sheet Information
As of October 31, 2019, the
Company held cash and cash equivalents of $557.7 million and its investments included
$297.8 million of short-term debt
securities with maturities between 90 days and one year. There were
no outstanding borrowings under the Company's $300 million credit facility at such date. During
fiscal 2019, the Company used $299.9
million to repurchase and retire approximately 7.4 million
shares of its Non-Voting Common Stock under its repurchase
authorizations. Of the current 8.0 million share repurchase
authorization, approximately 6.3 million shares remain
available.
Conference Call Information
Eaton Vance Corp. will host a conference call and webcast at
11:00 AM eastern time today to
discuss the financial results for the three months and fiscal year
ended October 31, 2019. To participate in the conference call,
please dial 866-521-4909 (domestic) or 647-427-2311 (international)
and refer to "Eaton Vance Corp. Fourth Fiscal Quarter Earnings." A
webcast of the conference call can also be accessed via Eaton
Vance's website, eatonvance.com.
A replay of the call will be available for one week by calling
800-585-8367 (domestic) or 416-621-4642 (international) or by
accessing Eaton Vance's website, eatonvance.com. To listen to the
replay, enter the conference ID number 9993809 when instructed.
About Eaton Vance Corp.
Eaton Vance Corp. (NYSE: EV) provides advanced investment
strategies and wealth management solutions to forward-thinking
investors around the world. Through principal investment affiliates
Eaton Vance Management, Parametric, Atlanta Capital, Calvert and
Hexavest, the Company offers a diversity of investment approaches,
encompassing bottom-up and top-down fundamental active management,
responsible investing, systematic investing and customized
implementation of client-specified portfolio exposures. As of
October 31, 2019, Eaton Vance had
consolidated assets under management of $497.4 billion. Exemplary service, timely
innovation and attractive returns across market cycles have been
hallmarks of Eaton Vance since 1924. For more information, visit
eatonvance.com.
Forward-Looking Statements
This news release may contain statements that are not historical
facts, referred to as "forward-looking statements." The Company's
actual future results may differ significantly from those stated in
any forward-looking statements, depending on factors such as
changes in securities or financial markets or general economic
conditions, client sales and redemption activity, the continuation
of investment advisory, administration, distribution and service
contracts, and other risks discussed in the Company's filings with
the Securities and Exchange Commission.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
1
|
|
Eaton Vance
Corp.
|
|
Summary of Results
of Operations(1)
|
|
(in thousands,
except per share figures)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
|
|
|
|
|
|
|
|
%
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4
2019
|
Q4
2019
|
|
|
|
|
|
|
|
|
|
|
October
31,
|
July
31,
|
October
31,
|
vs.
|
vs.
|
|
October
31,
|
October
31,
|
%
|
|
|
|
2019
|
2019
|
2018
|
Q3
2019
|
Q4
2018
|
|
2019
|
2018
|
Change
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management
fees
|
$
|
378,062
|
$
|
375,747
|
$
|
372,292
|
1
|
%
|
2
|
%
|
|
$
|
1,463,943
|
$
|
1,459,186
|
-
|
%
|
|
Distribution and
underwriter fees
|
|
21,187
|
|
21,281
|
|
23,529
|
-
|
|
(10)
|
|
|
|
85,612
|
|
97,371
|
(12)
|
|
|
Service
fees
|
|
32,272
|
|
31,855
|
|
31,364
|
1
|
|
3
|
|
|
|
123,073
|
|
122,231
|
1
|
|
|
Other
revenue
|
|
2,219
|
|
2,352
|
|
3,610
|
(6)
|
|
(39)
|
|
|
|
10,624
|
|
13,634
|
(22)
|
|
|
|
Total
revenue
|
|
433,740
|
|
431,235
|
|
430,795
|
1
|
|
1
|
|
|
|
1,683,252
|
|
1,692,422
|
(1)
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
related costs
|
|
160,441
|
|
158,642
|
|
148,673
|
1
|
|
8
|
|
|
|
626,513
|
|
604,631
|
4
|
|
|
Distribution
expense
|
|
38,731
|
|
38,070
|
|
41,142
|
2
|
|
(6)
|
|
|
|
150,239
|
|
165,033
|
(9)
|
|
|
Service fee
expense
|
|
28,287
|
|
28,037
|
|
27,237
|
1
|
|
4
|
|
|
|
107,762
|
|
106,831
|
1
|
|
|
Amortization of
deferred sales commissions
|
|
5,831
|
|
5,644
|
|
5,052
|
3
|
|
15
|
|
|
|
22,593
|
|
18,394
|
23
|
|
|
Fund-related
expenses
|
|
11,037
|
|
9,715
|
|
9,829
|
14
|
|
12
|
|
|
|
40,357
|
|
37,602
|
7
|
|
|
Other
expenses
|
|
53,980
|
|
53,992
|
|
54,410
|
-
|
|
(1)
|
|
|
|
214,917
|
|
204,729
|
5
|
|
|
|
Total
expenses
|
|
298,307
|
|
294,100
|
|
286,343
|
1
|
|
4
|
|
|
|
1,162,381
|
|
1,137,220
|
2
|
|
|
Operating
income
|
|
135,433
|
|
137,135
|
|
144,452
|
(1)
|
|
(6)
|
|
|
|
520,871
|
|
555,202
|
(6)
|
|
|
Non-operating
income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains and other
investment income, net
|
|
15,155
|
|
14,846
|
|
598
|
2
|
|
NM
|
|
|
|
51,040
|
|
10,066
|
407
|
|
|
Interest
expense
|
|
(5,888)
|
|
(5,888)
|
|
(5,913)
|
-
|
|
-
|
|
|
|
(23,795)
|
|
(23,629)
|
1
|
|
|
Other income
(expense) of consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
collateralized loan
obligation (CLO) entities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains
and other investment income, net
|
|
24,777
|
|
18,260
|
|
12,059
|
36
|
|
105
|
|
|
|
70,272
|
|
16,882
|
316
|
|
|
|
Interest
and other expense
|
|
(18,445)
|
|
(21,748)
|
|
(11,656)
|
(15)
|
|
58
|
|
|
|
(59,350)
|
|
(15,286)
|
288
|
|
|
|
Total non-operating
income (expense)
|
|
15,599
|
|
5,470
|
|
(4,912)
|
185
|
|
NM
|
|
|
|
38,167
|
|
(11,967)
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes and equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in
net income of affiliates
|
|
151,032
|
|
142,605
|
|
139,540
|
6
|
|
8
|
|
|
|
559,038
|
|
543,235
|
3
|
|
|
Income
taxes
|
|
(34,254)
|
|
(36,304)
|
|
(36,823)
|
(6)
|
|
(7)
|
|
|
|
(135,252)
|
|
(156,703)
|
(14)
|
|
|
Equity in net income
of affiliates, net of tax
|
|
2,172
|
|
2,235
|
|
2,496
|
(3)
|
|
(13)
|
|
|
|
9,090
|
|
11,373
|
(20)
|
|
|
Net
income
|
|
118,950
|
|
108,536
|
|
105,213
|
10
|
|
13
|
|
|
|
432,876
|
|
397,905
|
9
|
|
|
Net (income) loss
attributable to non-controlling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and
other beneficial interests
|
|
(9,744)
|
|
(6,315)
|
|
274
|
54
|
|
NM
|
|
|
|
(32,841)
|
|
(15,967)
|
106
|
|
|
Net income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eaton
Vance Corp. shareholders
|
$
|
109,206
|
$
|
102,221
|
$
|
105,487
|
7
|
|
4
|
|
|
$
|
400,035
|
$
|
381,938
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.00
|
$
|
0.94
|
$
|
0.93
|
6
|
|
8
|
|
|
$
|
3.63
|
$
|
3.33
|
9
|
|
|
Diluted
|
$
|
0.96
|
$
|
0.90
|
$
|
0.87
|
7
|
|
10
|
|
|
$
|
3.50
|
$
|
3.11
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
108,690
|
|
109,111
|
|
113,576
|
-
|
|
(4)
|
|
|
|
110,064
|
|
114,745
|
(4)
|
|
|
Diluted
|
|
113,702
|
|
113,464
|
|
121,021
|
-
|
|
(6)
|
|
|
|
114,388
|
|
122,932
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.375
|
$
|
0.350
|
$
|
0.350
|
7
|
|
7
|
|
|
$
|
1.425
|
$
|
1.280
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Prior year amounts
have been restated to reflect the Company's retrospective adoption
of ASU 2014-09 on November 1, 2018. Fund subsidies previously
included as a component of
|
|
|
fund-related expenses are
now presented as a contra-revenue component of management fees. In
addition, certain front-end load sales commissions that were
previously reported
|
|
|
on a net basis as a
component of distribution expense are now reported on a gross basis
in distribution and underwriter fee revenue and distribution
expense. The adoption of ASU
|
|
|
2014-09 had no impact on
net income or earnings per share.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
2
|
Eaton Vance
Corp.
|
Reconciliation of
net income attributable to Eaton Vance Corp.
|
shareholders to
adjusted net income attributable to Eaton Vance
Corp.
|
shareholders and
earnings per diluted share to adjusted earnings per diluted
share
|
(in thousands,
except per share figures)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
|
|
|
|
|
|
|
|
%
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4
2019
|
Q4
2019
|
|
|
|
|
|
|
|
|
|
October
31,
|
July
31,
|
October
31,
|
|
vs.
|
vs.
|
|
October
31,
|
October
31,
|
|
%
|
|
2019
|
2019
|
2018
|
|
Q3
2019
|
Q4
2018
|
|
2019
|
2018
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Eaton Vance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corp.
shareholders
|
$
|
109,206
|
$
|
102,221
|
$
|
105,487
|
|
7
|
%
|
4
|
%
|
|
$
|
400,035
|
$
|
381,938
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net excess tax
benefit from stock-based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compensation
plans(1)
|
|
(1,541)
|
|
(637)
|
|
(2,416)
|
|
142
|
|
(36)
|
|
|
|
(5,404)
|
|
(17,487)
|
|
(69)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revaluation of
deferred tax amounts(2)
|
|
-
|
|
-
|
|
(433)
|
|
NM
|
|
(100)
|
|
|
|
-
|
|
21,220
|
|
(100)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repatriation of
undistributed earnings of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
foreign
subsidiaries(3)
|
|
-
|
|
-
|
|
(255)
|
|
NM
|
|
(100)
|
|
|
|
-
|
|
2,807
|
|
(100)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on write-off of
Hexavest option, net of tax(4)
|
|
-
|
|
-
|
|
-
|
|
NM
|
|
NM
|
|
|
|
-
|
|
5,660
|
|
(100)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income attributable to Eaton
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vance Corp.
shareholders
|
$
|
107,665
|
$
|
101,584
|
$
|
102,383
|
|
6
|
|
5
|
|
|
$
|
394,631
|
$
|
394,138
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
diluted share
|
$
|
0.96
|
$
|
0.90
|
$
|
0.87
|
|
7
|
|
10
|
|
|
$
|
3.50
|
$
|
3.11
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net excess tax
benefit from stock-based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compensation
plans
|
|
(0.01)
|
|
-
|
|
(0.02)
|
|
NM
|
|
(50)
|
|
|
|
(0.05)
|
|
(0.14)
|
|
(64)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revaluation of
deferred tax amounts
|
|
-
|
|
-
|
|
-
|
|
NM
|
|
NM
|
|
|
|
-
|
|
0.17
|
|
(100)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repatriation of
undistributed earnings of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
foreign
subsidiaries
|
|
-
|
|
-
|
|
-
|
|
NM
|
|
NM
|
|
|
|
-
|
|
0.02
|
|
(100)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on write-off of
Hexavest option, net of tax
|
|
-
|
|
-
|
|
-
|
|
NM
|
|
NM
|
|
|
|
-
|
|
0.05
|
|
(100)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
per diluted share
|
$
|
0.95
|
$
|
0.90
|
$
|
0.85
|
|
6
|
|
12
|
|
|
$
|
3.45
|
$
|
3.21
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reflects the impact of
ASU 2016-09, Improvements to Employee Share-Based Payment
Accounting, which was adopted in the first quarter of fiscal
2018.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Reflects the
revaluation of deferred tax assets and deferred tax liabilities
resulting from the enactment of the 2017 Tax Act on December 22,
2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Reflects the
recognition of incremental tax expense related to the deemed
repatriation of foreign earnings considered to be indefinitely
reinvested abroad and not previously subject to U.S.
|
taxation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Reflects the $6.5
million loss recognized upon expiration of the Company's option to
acquire an additional 26 percent ownership interest in Hexavest,
net of the associated impact to taxes
|
of $0.8 million.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
3
|
Eaton Vance
Corp.
|
Components of net
income (loss) attributable
|
to non-controlling
and other beneficial interests
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
|
|
|
|
|
|
|
|
%
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4
2019
|
Q4
2019
|
|
|
|
|
|
|
|
|
|
October
31,
|
July
31,
|
October
31,
|
|
vs.
|
vs.
|
|
October
31,
|
October
31,
|
%
|
|
2019
|
2019
|
2018
|
|
Q3
2019
|
Q4
2018
|
|
2019
|
2018
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
sponsored funds
|
$
|
6,759
|
$
|
2,760
|
$
|
(4,447)
|
|
145
|
%
|
NM
|
%
|
|
$
|
20,081
|
$
|
(232)
|
NM
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Majority-owned
subsidiaries
|
|
2,985
|
|
3,555
|
|
4,173
|
|
(16)
|
|
(28)
|
|
|
|
12,760
|
|
16,199
|
(21)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to non-controlling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and other
beneficial interests
|
$
|
9,744
|
$
|
6,315
|
$
|
(274)
|
|
54
|
|
NM
|
|
|
$
|
32,841
|
$
|
15,967
|
106
|
|
|
|
|
|
|
|
Attachment
4
|
|
Eaton Vance
Corp.
|
|
Balance
Sheet
|
|
(in thousands,
except per share figures)
|
|
|
|
|
|
October
31,
|
|
|
October
31,(1)
|
|
|
|
2019
|
|
|
2018
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
557,668
|
|
$
|
600,696
|
|
Management fees and
other receivables
|
|
237,864
|
|
|
236,736
|
|
Investments
|
|
1,060,739
|
|
|
1,078,627
|
|
Assets of
consolidated CLO entities:
|
|
|
|
|
|
|
Cash
|
|
48,704
|
|
|
216,598
|
|
Bank
loans and other investments
|
|
1,704,270
|
|
|
874,304
|
|
Other
assets
|
|
28,039
|
|
|
4,464
|
|
Deferred sales
commissions
|
|
55,211
|
|
|
48,629
|
|
Deferred income
taxes
|
|
62,661
|
|
|
45,826
|
|
Equipment and
leasehold improvements, net
|
|
72,798
|
|
|
52,428
|
|
Intangible assets,
net
|
|
75,907
|
|
|
80,885
|
|
Goodwill
|
|
259,681
|
|
|
259,681
|
|
Loan to
affiliate
|
|
5,000
|
|
|
5,000
|
|
Other
assets
|
|
85,087
|
|
|
95,454
|
|
Total
assets
|
$
|
4,253,629
|
|
$
|
3,599,328
|
|
|
|
|
|
|
|
|
Liabilities,
Temporary Equity and Permanent Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued
compensation
|
$
|
240,722
|
|
$
|
233,836
|
|
Accounts payable and
accrued expenses
|
|
89,984
|
|
|
91,410
|
|
Dividend
payable
|
|
55,177
|
|
|
51,731
|
|
Debt
|
|
620,513
|
|
|
619,678
|
|
Liabilities of
consolidated CLO entities:
|
|
|
|
|
|
|
Senior
and subordinated note obligations
|
|
1,617,095
|
|
|
873,008
|
|
Other
liabilities
|
|
51,122
|
|
|
154,185
|
|
Other
liabilities
|
|
108,982
|
|
|
131,952
|
|
Total
liabilities
|
|
2,783,595
|
|
|
2,155,800
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Temporary
Equity:
|
|
|
|
|
|
|
Redeemable
non-controlling interests
|
|
285,915
|
|
|
335,097
|
|
Total
temporary equity
|
|
285,915
|
|
|
335,097
|
|
|
|
|
|
|
|
|
Permanent
Equity:
|
|
|
|
|
|
|
Voting Common Stock,
par value $0.00390625 per share:
|
|
|
|
|
|
|
Authorized, 1,280,000 shares
|
|
|
|
|
|
|
Issued
and outstanding, 422,935 and 422,935 shares,
respectively
|
|
2
|
|
|
2
|
|
Non-Voting Common
Stock, par value $0.00390625 per share:
|
|
|
|
|
|
|
Authorized, 190,720,000 shares
|
|
|
|
|
|
|
Issued
and outstanding, 113,143,567 and 116,527,845 shares,
respectively
|
|
442
|
|
|
455
|
|
Additional paid-in
capital
|
|
-
|
|
|
17,514
|
|
Notes receivable from
stock option exercises
|
|
(8,447)
|
|
|
(8,057)
|
|
Accumulated other
comprehensive loss
|
|
(58,317)
|
|
|
(53,181)
|
|
Retained
earnings
|
|
1,250,439
|
|
|
1,150,698
|
|
Total
Eaton Vance Corp. shareholders' equity
|
|
1,184,119
|
|
|
1,107,431
|
|
Non-redeemable
non-controlling interests
|
|
-
|
|
|
1,000
|
|
Total
permanent equity
|
|
1,184,119
|
|
|
1,108,431
|
|
Total liabilities,
temporary equity and permanent equity
|
$
|
4,253,629
|
|
$
|
3,599,328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
5
|
Eaton Vance
Corp.
|
Consolidated
Assets under Management and Net Flows by Investment
Mandate(1)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
|
October
31,
|
|
July
31,
|
|
October
31,
|
|
October
31,
|
|
October
31,
|
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Equity assets –
beginning of period(2)
|
$
|
128,996
|
|
$
|
125,869
|
|
$
|
122,466
|
|
$
|
115,772
|
|
$
|
113,472
|
|
Sales and other
inflows
|
|
6,833
|
|
|
6,749
|
|
|
4,666
|
|
|
24,852
|
|
|
21,840
|
|
Redemptions/outflows
|
|
(4,861)
|
|
|
(5,130)
|
|
|
(5,328)
|
|
|
(20,022)
|
|
|
(20,813)
|
|
Net
flows
|
|
1,972
|
|
|
1,619
|
|
|
(662)
|
|
|
4,830
|
|
|
1,027
|
|
Exchanges
|
|
(9)
|
|
|
(43)
|
|
|
31
|
|
|
(10)
|
|
|
37
|
|
Market value
change
|
|
936
|
|
|
1,551
|
|
|
(6,063)
|
|
|
11,303
|
|
|
1,236
|
Equity assets
– end of period
|
$
|
131,895
|
|
$
|
128,996
|
|
$
|
115,772
|
|
$
|
131,895
|
|
$
|
115,772
|
Fixed income assets –
beginning of period(3)
|
|
91,399
|
|
|
86,744
|
|
|
76,819
|
|
|
77,844
|
|
|
70,797
|
|
Sales and other
inflows
|
|
7,731
|
|
|
8,005
|
|
|
7,038
|
|
|
33,310
|
|
|
26,259
|
|
Redemptions/outflows
|
|
(5,383)
|
|
|
(4,566)
|
|
|
(4,788)
|
|
|
(21,429)
|
|
|
(16,715)
|
|
Net
flows
|
|
2,348
|
|
|
3,439
|
|
|
2,250
|
|
|
11,881
|
|
|
9,544
|
|
Exchanges
|
|
161
|
|
|
69
|
|
|
5
|
|
|
626
|
|
|
-
|
|
Market value
change
|
|
167
|
|
|
1,147
|
|
|
(1,230)
|
|
|
3,724
|
|
|
(2,497)
|
Fixed income
assets – end of period
|
$
|
94,075
|
|
$
|
91,399
|
|
$
|
77,844
|
|
$
|
94,075
|
|
$
|
77,844
|
Floating-rate income
assets – beginning of period
|
|
38,339
|
|
|
39,750
|
|
|
42,955
|
|
|
44,837
|
|
|
38,819
|
|
Sales and other
inflows
|
|
1,289
|
|
|
1,772
|
|
|
4,079
|
|
|
8,706
|
|
|
14,301
|
|
Redemptions/outflows
|
|
(3,890)
|
|
|
(2,963)
|
|
|
(2,103)
|
|
|
(16,988)
|
|
|
(8,401)
|
|
Net
flows
|
|
(2,601)
|
|
|
(1,191)
|
|
|
1,976
|
|
|
(8,282)
|
|
|
5,900
|
|
Exchanges
|
|
(67)
|
|
|
(38)
|
|
|
46
|
|
|
(428)
|
|
|
86
|
|
Market value
change
|
|
(568)
|
|
|
(182)
|
|
|
(140)
|
|
|
(1,024)
|
|
|
32
|
Floating-rate
income assets – end of period
|
$
|
35,103
|
|
$
|
38,339
|
|
$
|
44,837
|
|
$
|
35,103
|
|
$
|
44,837
|
Alternative assets –
beginning of period
|
|
9,031
|
|
|
9,409
|
|
|
13,465
|
|
|
12,139
|
|
|
12,637
|
|
Sales and other
inflows
|
|
405
|
|
|
466
|
|
|
847
|
|
|
2,717
|
|
|
5,679
|
|
Redemptions/outflows
|
|
(970)
|
|
|
(1,109)
|
|
|
(1,570)
|
|
|
(6,618)
|
|
|
(4,947)
|
|
Net
flows
|
|
(565)
|
|
|
(643)
|
|
|
(723)
|
|
|
(3,901)
|
|
|
732
|
|
Exchanges
|
|
(88)
|
|
|
9
|
|
|
(75)
|
|
|
(255)
|
|
|
(103)
|
|
Market value
change
|
|
(6)
|
|
|
256
|
|
|
(528)
|
|
|
389
|
|
|
(1,127)
|
Alternative assets
– end of period
|
$
|
8,372
|
|
$
|
9,031
|
|
$
|
12,139
|
|
$
|
8,372
|
|
$
|
12,139
|
Portfolio
implementation assets – beginning of period
|
|
128,636
|
|
|
125,391
|
|
|
115,035
|
|
|
110,840
|
|
|
99,615
|
|
Sales and other
inflows
|
|
5,961
|
|
|
6,468
|
|
|
5,578
|
|
|
25,900
|
|
|
22,562
|
|
Redemptions/outflows
|
|
(4,306)
|
|
|
(4,378)
|
|
|
(3,819)
|
|
|
(17,518)
|
|
|
(14,141)
|
|
Net
flows
|
|
1,655
|
|
|
2,090
|
|
|
1,759
|
|
|
8,382
|
|
|
8,421
|
|
Exchanges
|
|
2
|
|
|
3
|
|
|
(6)
|
|
|
59
|
|
|
(22)
|
|
Market value
change
|
|
2,905
|
|
|
1,152
|
|
|
(5,948)
|
|
|
13,917
|
|
|
2,826
|
Portfolio
implementation assets – end of period
|
$
|
133,198
|
|
$
|
128,636
|
|
$
|
110,840
|
|
$
|
133,198
|
|
$
|
110,840
|
Exposure management
assets – beginning of period
|
|
86,379
|
|
|
82,775
|
|
|
82,443
|
|
|
77,871
|
|
|
86,976
|
|
Sales and other
inflows
|
|
24,388
|
|
|
17,307
|
|
|
12,946
|
|
|
73,376
|
|
|
65,812
|
|
Redemptions/outflows
|
|
(17,400)
|
|
|
(14,611)
|
|
|
(15,438)
|
|
|
(62,363)
|
|
|
(74,095)
|
|
Net
flows
|
|
6,988
|
|
|
2,696
|
|
|
(2,492)
|
|
|
11,013
|
|
|
(8,283)
|
|
Market value
change
|
|
1,422
|
|
|
908
|
|
|
(2,080)
|
|
|
5,905
|
|
|
(822)
|
Exposure
management assets – end of period
|
$
|
94,789
|
|
$
|
86,379
|
|
$
|
77,871
|
|
$
|
94,789
|
|
$
|
77,871
|
Total assets under
management – beginning of period
|
|
482,780
|
|
|
469,938
|
|
|
453,183
|
|
|
439,303
|
|
|
422,316
|
|
Sales and other
inflows
|
|
46,607
|
|
|
40,767
|
|
|
35,154
|
|
|
168,861
|
|
|
156,453
|
|
Redemptions/outflows
|
|
(36,810)
|
|
|
(32,757)
|
|
|
(33,046)
|
|
|
(144,938)
|
|
|
(139,112)
|
|
Net
flows
|
|
9,797
|
|
|
8,010
|
|
|
2,108
|
|
|
23,923
|
|
|
17,341
|
|
Exchanges
|
|
(1)
|
|
|
-
|
|
|
1
|
|
|
(8)
|
|
|
(2)
|
|
Market value
change
|
|
4,856
|
|
|
4,832
|
|
|
(15,989)
|
|
|
34,214
|
|
|
(352)
|
Total assets under
management – end of period
|
$
|
497,432
|
|
$
|
482,780
|
|
$
|
439,303
|
|
$
|
497,432
|
|
$
|
439,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Consolidated Eaton
Vance Corp. See Attachment 11 for directly managed assets and flows
of 49 percent-owned Hexavest, which are not included in the table
above.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Whenever presented,
Equity assets include balanced and other multi‐asset
mandates.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Whenever presented,
Fixed Income assets include cash management
mandates.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
6
|
Eaton Vance
Corp.
|
Consolidated
Assets under Management and Net Flows by Investment
Vehicle(1)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
|
October
31,
|
|
July
31,
|
|
October
31,
|
|
October
31,
|
|
October
31,
|
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Funds – beginning of
period(2)
|
$
|
173,433
|
|
$
|
170,962
|
|
$
|
168,778
|
|
$
|
164,968
|
|
$
|
156,853
|
|
Sales and other
inflows
|
|
10,020
|
|
|
10,084
|
|
|
11,303
|
|
|
44,337
|
|
|
44,470
|
|
Redemptions/outflows
|
|
(9,613)
|
|
|
(8,912)
|
|
|
(9,438)
|
|
|
(43,349)
|
|
|
(34,802)
|
|
Net
flows
|
|
407
|
|
|
1,172
|
|
|
1,865
|
|
|
988
|
|
|
9,668
|
|
Exchanges
|
|
(1)
|
|
|
22
|
|
|
-
|
|
|
(84)
|
|
|
305
|
|
Market value
change
|
|
229
|
|
|
1,277
|
|
|
(5,675)
|
|
|
8,196
|
|
|
(1,858)
|
Funds – end
of period
|
$
|
174,068
|
|
$
|
173,433
|
|
$
|
164,968
|
|
$
|
174,068
|
|
$
|
164,968
|
Institutional
separate accounts – beginning of period
|
|
165,311
|
|
|
160,460
|
|
|
162,701
|
|
|
153,996
|
|
|
159,986
|
|
Sales and other
inflows
|
|
27,342
|
|
|
20,903
|
|
|
14,936
|
|
|
85,401
|
|
|
79,502
|
|
Redemptions/outflows
|
|
(21,782)
|
|
|
(17,861)
|
|
|
(18,278)
|
|
|
(78,471)
|
|
|
(85,638)
|
|
Net
flows
|
|
5,560
|
|
|
3,042
|
|
|
(3,342)
|
|
|
6,930
|
|
|
(6,136)
|
|
Exchanges
|
|
4
|
|
|
(16)
|
|
|
-
|
|
|
86
|
|
|
18
|
|
Market value
change
|
|
2,456
|
|
|
1,825
|
|
|
(5,363)
|
|
|
12,319
|
|
|
128
|
Institutional
separate accounts – end of period
|
$
|
173,331
|
|
$
|
165,311
|
|
$
|
153,996
|
|
$
|
173,331
|
|
$
|
153,996
|
Individual separate
accounts – beginning of period(3)
|
|
144,036
|
|
|
138,516
|
|
|
121,704
|
|
|
120,339
|
|
|
105,477
|
|
Sales and other
inflows
|
|
9,245
|
|
|
9,780
|
|
|
8,915
|
|
|
39,123
|
|
|
32,481
|
|
Redemptions/outflows
|
|
(5,415)
|
|
|
(5,984)
|
|
|
(5,330)
|
|
|
(23,118)
|
|
|
(18,672)
|
|
Net
flows
|
|
3,830
|
|
|
3,796
|
|
|
3,585
|
|
|
16,005
|
|
|
13,809
|
|
Exchanges
|
|
(4)
|
|
|
(6)
|
|
|
1
|
|
|
(10)
|
|
|
(325)
|
|
Market value
change
|
|
2,171
|
|
|
1,730
|
|
|
(4,951)
|
|
|
13,699
|
|
|
1,378
|
Individual
separate accounts – end of period
|
$
|
150,033
|
|
$
|
144,036
|
|
$
|
120,339
|
|
$
|
150,033
|
|
$
|
120,339
|
Total assets under
management – beginning of period
|
|
482,780
|
|
|
469,938
|
|
|
453,183
|
|
|
439,303
|
|
|
422,316
|
|
Sales and other
inflows
|
|
46,607
|
|
|
40,767
|
|
|
35,154
|
|
|
168,861
|
|
|
156,453
|
|
Redemptions/outflows
|
|
(36,810)
|
|
|
(32,757)
|
|
|
(33,046)
|
|
|
(144,938)
|
|
|
(139,112)
|
|
Net
flows
|
|
9,797
|
|
|
8,010
|
|
|
2,108
|
|
|
23,923
|
|
|
17,341
|
|
Exchanges
|
|
(1)
|
|
|
-
|
|
|
1
|
|
|
(8)
|
|
|
(2)
|
|
Market value
change
|
|
4,856
|
|
|
4,832
|
|
|
(15,989)
|
|
|
34,214
|
|
|
(352)
|
Total assets under
management – end of period
|
$
|
497,432
|
|
$
|
482,780
|
|
$
|
439,303
|
|
$
|
497,432
|
|
$
|
439,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Consolidated Eaton
Vance Corp. See Attachment 11 for directly managed assets and flows
of 49 percent‐owned Hexavest, which are not included in the table
above.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Whenever presented,
Fund assets include assets of cash management funds.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) In the first quarter
of fiscal 2019, the Company revised its classification of
consolidated assets under management and net flows by investment
vehicle to combine the formerly separate
|
high-net-worth separate
account and retail managed account categories into a single
individual separate account category. The above presentation of
prior year results has been revised
|
for comparability
purposes. The reclassification does not affect total consolidated
assets under management or total consolidated net flows for any
period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
7
|
Eaton Vance
Corp.
|
Consolidated
Assets under Management by Investment
Mandate(1)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October
31,
|
|
|
July
31,
|
|
%
|
|
|
October
31,
|
|
%
|
|
|
|
2019
|
|
|
2019
|
|
Change
|
|
|
2018
|
|
Change
|
Equity(2)
|
$
|
131,895
|
|
$
|
128,996
|
|
2%
|
|
$
|
115,772
|
|
14%
|
Fixed
income(3)
|
|
94,075
|
|
|
91,399
|
|
3%
|
|
|
77,844
|
|
21%
|
Floating-rate
income
|
|
35,103
|
|
|
38,339
|
|
-8%
|
|
|
44,837
|
|
-22%
|
Alternative
|
|
8,372
|
|
|
9,031
|
|
-7%
|
|
|
12,139
|
|
-31%
|
Portfolio
implementation
|
|
133,198
|
|
|
128,636
|
|
4%
|
|
|
110,840
|
|
20%
|
Exposure
management
|
|
94,789
|
|
|
86,379
|
|
10%
|
|
|
77,871
|
|
22%
|
Total
|
$
|
497,432
|
|
$
|
482,780
|
|
3%
|
|
$
|
439,303
|
|
13%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Consolidated Eaton
Vance Corp. See Attachment 11 for directly managed assets and flows
of 49 percent‐owned Hexavest, which are not included in the table
above.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Includes balanced and
other multi‐asset mandates.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Includes cash
management mandates.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
8
|
Eaton Vance
Corp.
|
Consolidated
Assets under Management by Investment
Vehicle(1)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October
31,
|
|
|
July
31,
|
|
%
|
|
|
October
31,
|
|
%
|
|
|
|
2019
|
|
|
2019
|
|
Change
|
|
|
2018
|
|
Change
|
Open-end
funds
|
$
|
105,043
|
|
$
|
105,614
|
|
-1%
|
|
$
|
102,426
|
|
3%
|
Closed-end
funds
|
|
24,284
|
|
|
24,307
|
|
0%
|
|
|
23,998
|
|
1%
|
Private
funds(2)
|
|
44,741
|
|
|
43,512
|
|
3%
|
|
|
38,544
|
|
16%
|
Institutional
separate accounts
|
|
173,331
|
|
|
165,311
|
|
5%
|
|
|
153,996
|
|
13%
|
Individual separate
accounts(3)
|
|
150,033
|
|
|
144,036
|
|
4%
|
|
|
120,339
|
|
25%
|
Total
|
$
|
497,432
|
|
$
|
482,780
|
|
3%
|
|
$
|
439,303
|
|
13%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Consolidated Eaton
Vance Corp. See Attachment 11 for directly managed assets and flows
of 49 percent‐owned Hexavest, which are not included in the table
above.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Includes privately
offered equity, fixed income and floating-rate income funds and CLO
entities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) In the first quarter
of fiscal 2019, the Company revised its classification of
consolidated assets under management by investment vehicle to
combine the formerly separate
|
high-net-worth separate
account and retail managed account categories into a single
individual separate account category. The above presentation of
prior year results has
|
been revised for
comparability purposes. The reclassification does not affect total
consolidated assets under management for any period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
9
|
Eaton Vance
Corp.
|
Consolidated
Assets under Management by Investment
Affiliate(1)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October
31,
|
|
|
July
31,
|
|
%
|
|
|
October
31,
|
|
%
|
|
|
|
2019
|
|
|
2019
|
|
Change
|
|
|
2018
|
|
Change
|
Eaton Vance
Management(2)
|
$
|
187,711
|
|
$
|
188,144
|
|
0%
|
|
$
|
179,321
|
|
5%
|
Parametric
|
|
265,824
|
|
|
252,447
|
|
5%
|
|
|
224,238
|
|
19%
|
Atlanta
Capital(3)
|
|
27,564
|
|
|
27,008
|
|
2%
|
|
|
23,355
|
|
18%
|
Calvert(3)
|
|
16,333
|
|
|
15,181
|
|
8%
|
|
|
12,389
|
|
32%
|
Total
|
$
|
497,432
|
|
$
|
482,780
|
|
3%
|
|
$
|
439,303
|
|
13%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Consolidated Eaton
Vance Corp. See Attachment 11 for directly managed assets and flows
of 49 percent-owned Hexavest, which are not included in the table
above.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Includes managed
assets of Eaton Vance-sponsored funds and separate accounts managed
by Hexavest and unaffiliated third-party advisers under Eaton Vance
supervision.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Consistent with the
Company's policies for reporting the managed assets and flows of
investment portfolios for which multiple Eaton Vance affiliates
have management responsibilities,
|
the managed assets of
Atlanta Capital indicated above include the assets of Calvert
Equity Fund, for which Atlanta Capital serves as sub-adviser. The
total managed assets of Calvert,
|
including assets
sub-advised by other Eaton Vance affiliates, were $19.8 billion as
of October 31, 2019, $18.2 billion as of July 31, 2019 and $14.7
billion as of October 31, 2018.
|
|
|
Attachment
10
|
Eaton Vance
Corp.
|
Average Annualized
Management Fee Rates by Investment
Mandate(1)(2)
|
(in basis points
on average managed assets)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
|
|
|
%
|
%
|
|
|
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
|
|
Q4
2019
|
Q4
2019
|
|
|
|
|
|
October
31,
|
July
31,
|
October
31,
|
vs.
|
vs.
|
|
October
31,
|
October
31,
|
%
|
|
2019
|
2019
|
2018
|
Q3
2019
|
Q4
2018
|
|
2019
|
2018
|
Change
|
Equity
|
56.2
|
57.1
|
58.2
|
-2%
|
-3%
|
|
56.9
|
58.9
|
-3%
|
Fixed
income
|
32.5
|
32.8
|
33.9
|
-1%
|
-4%
|
|
32.9
|
34.9
|
-6%
|
Floating-rate
income
|
49.3
|
49.7
|
50.3
|
-1%
|
-2%
|
|
49.7
|
50.6
|
-2%
|
Alternative
|
62.7
|
66.9
|
60.2
|
-6%
|
4%
|
|
61.4
|
64.8
|
-5%
|
Portfolio
implementation
|
14.9
|
15.1
|
14.7
|
-1%
|
1%
|
|
14.8
|
14.6
|
1%
|
Exposure
management
|
4.9
|
5.2
|
5.4
|
-6%
|
-9%
|
|
5.1
|
5.2
|
-2%
|
Total
|
30.8
|
31.8
|
32.7
|
-3%
|
-6%
|
|
31.6
|
33.0
|
-4%
|
|
|
|
|
|
|
|
|
|
|
(1) Prior year management
fee rates have been restated to reflect the Company's retrospective
adoption of ASU 2014-09 on November 1, 2018. Fund subsidies
previously included as
|
a component of
fund-related expenses are now presented as a contra-revenue
component of management fees. Fluctuations in fund subsidies may
cause average management fee
|
rates to fluctuate from
one period to the next.
|
|
|
|
|
|
|
|
|
|
|
(2) Excludes
performance-based fees, which were $0.1 million in both the three
months ended October 31, 2019 and July 31, 2019, $(0.3) million in
the three months ended
|
October 31, 2018, $1.7
million in the fiscal year ended October 31, 2019 and $(1.7)
million in the fiscal year ended October 31, 2018.
|
|
|
Attachment
11
|
Eaton Vance
Corp.
|
Hexavest Inc.
Assets under Management and Net Flows
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
|
|
October
31,
|
|
July
31,
|
|
October
31,
|
|
October
31,
|
|
October
31,
|
|
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Eaton Vance
distributed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eaton Vance sponsored
funds – beginning of period(1)
|
$
|
170
|
|
$
|
184
|
|
$
|
168
|
|
$
|
159
|
|
$
|
182
|
|
Sales and other
inflows
|
|
1
|
|
|
3
|
|
|
1
|
|
|
48
|
|
|
12
|
|
Redemptions/outflows
|
|
(24)
|
|
|
(17)
|
|
|
(4)
|
|
|
(69)
|
|
|
(35)
|
|
Net
flows
|
|
(23)
|
|
|
(14)
|
|
|
(3)
|
|
|
(21)
|
|
|
(23)
|
|
Market value
change
|
|
5
|
|
|
-
|
|
|
(6)
|
|
|
14
|
|
|
-
|
Eaton Vance
sponsored funds – end of period
|
$
|
152
|
|
$
|
170
|
|
$
|
159
|
|
$
|
152
|
|
$
|
159
|
Eaton Vance
distributed separate accounts –
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
beginning of period(2)
|
$
|
1,745
|
|
$
|
2,076
|
|
$
|
2,522
|
|
$
|
2,169
|
|
$
|
3,092
|
|
Sales and other
inflows
|
|
2
|
|
|
79
|
|
|
58
|
|
|
105
|
|
|
230
|
|
Redemptions/outflows
|
|
(226)
|
|
|
(414)
|
|
|
(327)
|
|
|
(859)
|
|
|
(1,176)
|
|
Net
flows
|
|
(224)
|
|
|
(335)
|
|
|
(269)
|
|
|
(754)
|
|
|
(946)
|
|
Market value
change
|
|
42
|
|
|
4
|
|
|
(84)
|
|
|
148
|
|
|
23
|
Eaton Vance
distributed separate accounts – end of period
|
$
|
1,563
|
|
$
|
1,745
|
|
$
|
2,169
|
|
$
|
1,563
|
|
$
|
2,169
|
Total Eaton Vance
distributed – beginning of period
|
$
|
1,915
|
|
$
|
2,260
|
|
$
|
2,690
|
|
$
|
2,328
|
|
$
|
3,274
|
|
Sales and other
inflows
|
|
3
|
|
|
82
|
|
|
59
|
|
|
153
|
|
|
242
|
|
Redemptions/outflows
|
|
(250)
|
|
|
(431)
|
|
|
(331)
|
|
|
(928)
|
|
|
(1,211)
|
|
Net
flows
|
|
(247)
|
|
|
(349)
|
|
|
(272)
|
|
|
(775)
|
|
|
(969)
|
|
Market value
change
|
|
47
|
|
|
4
|
|
|
(90)
|
|
|
162
|
|
|
23
|
Total Eaton Vance
distributed – end of period
|
$
|
1,715
|
|
$
|
1,915
|
|
$
|
2,328
|
|
$
|
1,715
|
|
$
|
2,328
|
Hexavest directly
distributed – beginning of period(3)
|
$
|
11,474
|
|
$
|
11,634
|
|
$
|
12,553
|
|
$
|
11,467
|
|
$
|
12,748
|
|
Sales and other
inflows
|
|
140
|
|
|
410
|
|
|
233
|
|
|
1,769
|
|
|
1,149
|
|
Redemptions/outflows
|
|
(321)
|
|
|
(646)
|
|
|
(844)
|
|
|
(2,574)
|
|
|
(2,416)
|
|
Net
flows
|
|
(181)
|
|
|
(236)
|
|
|
(611)
|
|
|
(805)
|
|
|
(1,267)
|
|
Market value
change
|
|
347
|
|
|
76
|
|
|
(475)
|
|
|
978
|
|
|
(14)
|
Hexavest directly
distributed – end of period
|
$
|
11,640
|
|
$
|
11,474
|
|
$
|
11,467
|
|
$
|
11,640
|
|
$
|
11,467
|
Total Hexavest
managed assets – beginning of period
|
$
|
13,389
|
|
$
|
13,894
|
|
$
|
15,243
|
|
$
|
13,795
|
|
$
|
16,022
|
|
Sales and other
inflows
|
|
143
|
|
|
492
|
|
|
292
|
|
|
1,922
|
|
|
1,391
|
|
Redemptions/outflows
|
|
(571)
|
|
|
(1,077)
|
|
|
(1,175)
|
|
|
(3,502)
|
|
|
(3,627)
|
|
Net
flows
|
|
(428)
|
|
|
(585)
|
|
|
(883)
|
|
|
(1,580)
|
|
|
(2,236)
|
|
Market value
change
|
|
394
|
|
|
80
|
|
|
(565)
|
|
|
1,140
|
|
|
9
|
Total Hexavest
managed assets – end of period
|
$
|
13,355
|
|
$
|
13,389
|
|
$
|
13,795
|
|
$
|
13,355
|
|
$
|
13,795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Managed assets and
flows of Eaton Vance-sponsored pooled investment vehicles for which
Hexavest is adviser or sub-adviser. Eaton Vance receives management
fees (and in some
|
cases also distribution
fees) on these assets, which are included in Eaton Vance's
consolidated assets under management and flows in Attachments 5
through 9.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Managed assets and
flows of Eaton Vance-distributed separate accounts managed by
Hexavest. Eaton Vance receives distribution fees, but not
management fees, on these assets,
|
which are not included in
Eaton Vance's consolidated assets under management and flows in
Attachments 5 through 9.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Managed assets and
flows of pre-transaction Hexavest clients and post-transaction
Hexavest clients in Canada. Eaton Vance receives no management fees
or distribution
|
fees on these assets,
which are not included in Eaton Vance's consolidated assets under
management and flows in Attachments 5 through 9.
|
____________________________________
(1) Although the Company
reports its financial results in accordance with U.S. GAAP,
management believes that certain non-U.S. GAAP financial measures,
specifically, adjusted net income attributable to Eaton Vance Corp.
shareholders and adjusted earnings per diluted share, while not a
substitute for U.S. GAAP financial measures, may be effective
indicators of the Company's performance over time. Non-U.S. GAAP
financial measures should not be construed to be superior to U.S.
GAAP measures. In calculating these non-U.S. GAAP financial
measures, net income attributable to Eaton Vance Corp. shareholders
and earnings per diluted share are adjusted to exclude items
management deems non-operating or non-recurring in nature, or
otherwise outside the ordinary course of business. These
adjustments may include, when applicable, the add back of
closed-end fund structuring fees, costs associated with special
dividends, debt repayments and tax settlements, the tax impact of
stock-based compensation shortfalls or windfalls, and non-recurring
charges for the effect of tax law changes. Management and our Board
of Directors, as well as certain of our outside investors, consider
these adjusted numbers a measure of the Company's underlying
operating performance. Management believes adjusted net income
attributable to Eaton Vance Corp. shareholders and adjusted
earnings per diluted share are important indicators of our
operations because they exclude items that may not be indicative
of, or are unrelated to, our core operating results, and may
provide a useful baseline for analyzing trends in our underlying
business.
|
|
(2) Prior period revenue
and expenses have been restated to reflect certain classification
adjustments resulting from the Company's retrospective adoption of
ASU 2014-09 on November 1, 2018. The adoption of the new revenue
recognition accounting standard had no impact on operating income
or earnings per share.
|
|
(3) The statutory U.S.
federal income tax rate in effect for the Company's fiscal 2019 was
21 percent, the federal corporate income tax rate pursuant to the
2017 Tax Act. The statutory U.S. federal income tax rate in effect
for the Company's fiscal 2018 was a blend of 35 percent and 21
percent based on the number of days in the Company's fiscal year
before and after the January 1, 2018 effective date of the 2017 Tax
Act.
|
|
(4) Represents the
Company's effective income tax rate, excluding the tax impact of
stock-based compensation shortfalls or windfalls and the
non-recurring tax impact of U.S. tax law changes. Management
believes that the Company's adjusted effective income tax rate is
an important indicator of our operations because it excludes items
that may not be indicative of, or are unrelated to, our core
operating results, and may provide a useful baseline for analyzing
trends in our underlying business.
|
|
(5) Reflects the impact of
ASU 2016-09, Improvements to Employee Share-Based Payment
Accounting, which was adopted by the Company in fiscal 2018. The
Company anticipates that the adoption of this guidance may cause
fluctuations in the Company's effective tax rate, particularly in
the first quarter of each fiscal year, when most of the Company's
annual stock-based awards vest.
|
View original
content:http://www.prnewswire.com/news-releases/eaton-vance-corp-report-for-the-three-months-and-fiscal-year-ended-october-31-2019-300965389.html
SOURCE Eaton Vance Corp.