Janus Capital Group Inc. reported second-quarter net income Thursday of $130.2 million, or 56 cents per share, a 180% increase from the year earlier, but it also offered a calculation of earnings adjusted to exclude onetime and nonoperational items, that showed a 19.8% profit decline.
The unadjusted results included a pretax gain of $228 million on the sale of Janus' remaining 9% stake in DST Systems Inc. and pretax charges totaling $83.1 million related to Janus' debt restructuring ($55.5 million), the mutual fund trading investigation ($6 million), and severance ($21.6 million).
After the excluded items, the Denver fund company said, second-quarter adjusted net income was $40.5 million, or 17 cents per share, compared with $50.5 million, or 22 cents, the year earlier. The second-quarter 2003 earnings included 5 cents per share of equity earnings from DST.
Janus' investment management business reported second-quarter operating income and margins of $51.8 million and 22%, respectively. Excluding the previously mentioned charges, operating income and margins were $79.4 million and 33.8%, respectively, compared with $76.9 million and 31.3% the year before. The company had assets under management at June 30 of $135 billion.
