Legg Mason Inc. Sees Revenue Agreement With Permal As Model

Legg Mason Inc. Sees Revenue Agreement With Permal As Model

Legg Mason, Inc. (NYSE:LM), the asset management firm, reported earnings for last quarter today, Legg Mason’s Q3 of FY2013. The quarter incurred a loss of 345 cents GAAP EPS or $454 million, missing the market expectation of 323 cents. The losses were attributable to Legg Mason’s non cash impairment charges due to Permal’s 2005 acquisition which amounted to $734 million. The adjusted EPS was 70 cents or a net income of $92 million, which is more than the $76.8 million revenue reported in the corresponding quarter of last year. Total revenue was $673.9 million, up 7.5% year over year.

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Net new asset growth was down 4.6 percent, which is better than even lower estimates put forward by Wall Street analysts. Legg Mason’s total assets now stand at $648.9 billion. Permal’s assets stand at $16 billion, the FoF also raised $100 million in last quarter, however, the total assets have fallen from what the FoF held in Q2 FY2013. Legg’s International unit experienced net inflows, however, if its US and International operations are put together, the last quarter experienced net outflows.

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