First quarter 2014 continued the strong business momentum from 2013, with record quarterly operating earnings, record assets under management and a 90 basis point increase in return on equity since year end 2013. We continue to benefit from the diversification of our business model as well as the successful execution of our investment management strategy.
Our capital deployment strategy continues to be a clear differentiator and a priority. With record operating earnings and strong net income, we remain well positioned to increase shareholder value through a variety of capital deployment options. In the first quarter we paid a $0.28 per share common stock dividend and bought back more than $72 million of shares outstanding. Additionally, we announced a $0.32 per share common stock dividend for second quarter 2014, a 14 percent increase over the first quarter dividend and continue to have an active M&A pipeline. The ability of our fee-based business model to continuously generate deployable capital that we can strategically deploy to create long-term value for shareholders.
— Larry D. Zimpleman, Chairman, President and CEO
Key Takeaways for First Quarter 2014
- Record total company operating earnings of $317 million, a 36 percent increase over first quarter 2013;
- Record total company assets under management (AUM) of $495.5 billion, up 9 percent over the year ago quarter; total company net cash flows for first quarter 2014 were $4.8 billion;
- Total company return on equity (ROE) excluding AOCI was 13.0 percent, a 320 basis point increase over 9.8 percent in first quarter 2013;
- Paid a first quarter common stock dividend of $0.28 per share on March 28, 2014, and announced a second quarter 2014 dividend of $0.32 per share. Repurchased more than $72 million of shares outstanding; and
- Board authorized repurchase of up to $200 million of company’s outstanding common stock.