Janus Capital's 4Q net income falls nearly 13 pct.

Operating expenses, charges drive nearly 13 percent drop in Janus Capital's 4Q net income

Associated Press

DENVER (AP) -- Janus Capital Group Inc. said Thursday that its net income fell nearly 13 percent in the fourth quarter, as operating expenses increased and the manager of mutual funds booked a one-time charge.

The company's net income fell to $31.2 million, or 17 cents per share, for the three months ended Dec. 31. That compares with net income of $35.7 million, or 19 cents per share, a year earlier.

The latest results included an asset-impairment charge of 2 cents per share related to an account redemption.

Analysts were expecting, on average, adjusted earnings of 14 cents per share, according to FactSet.

Quarterly revenue grew to $216.6 million from $215.6 million a year earlier. Analysts had forecast revenue of $213.9 million.

But operating expenses rose 9 percent to $158.6 million from $145 million, largely the result of increased long-term incentive compensation for employees.

Janus had an average of $155.6 billion in assets under management during the quarter. That's up about 4 percent from $149.2 billion in the same quarter of 2011.

Total assets under management as of Dec. 31 were $156.8 billion, up from $148.2 billion a year earlier. That increase was due to a $20.6 billion of net market appreciation offset by $12 billion of long-term net outflows, the company noted.

For all of 2012, net income fell to $102.3 million, or 55 cents per share, compared with net income of $142.9 million, or 78 cents per share, for 2011.

Full-year revenue declined to $850 million from $981.9 million the year before.

Janus' shares ended regular trading down 18 cents at $9.65. The stock is up 13.3 percent this year.

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