BlackRock, Inc. Reports Record Earnings of $25.5 million For the First Quarter of 2001

Diluted Earnings Per Share Rise 30% to $0.39 Versus $0.30

For the First Quarter of 2000



Apr 12, 2001, 01:00 ET from BlackRock, Inc.

    NEW YORK, April 12 /PRNewswire/ -- BlackRock, Inc. (NYSE:   BLK) today
 reported record net income of $25.5 million for the first quarter ended
 March 31, 2001, a 33% increase compared with $19.2 million earned in the first
 quarter of 2000 and a 4% increase compared with $24.5 million earned in the
 fourth quarter of 2000.  Diluted earnings per share for the first quarter were
 $0.39 compared with $0.30 and $0.38 for the first and fourth quarters of 2000,
 respectively.  Operating income of $41.9 million increased 31% and 6% compared
 with $32.1 million and $39.7 million earned in the first and fourth quarters
 of 2000, respectively  (See Table 1).
     Assets under management at March 31, 2001 were $201.6 billion, a
 17% increase compared to $172.6 billion at March 31, 2000 and a 1% decline
 from the $203.8 billion reported at year-end 2000.  New business and strong
 fixed income performance largely offset the adverse effect of the equity
 markets, which caused a $3.5 billion decline in equity asset values and a
 $4 billion decline in security lending assets, which are a low fee (2.5 basis
 point) product.  Quarter-end assets under management were also affected by the
 timing of new business fundings, as nine new institutional separate accounts
 totaling $5.3 billion funded on the first business day of the second quarter.
     "Despite treacherous financial markets, BlackRock generated earnings
 growth for the first quarter that we expect will compare favorably with our
 industry," commented Laurence D. Fink, Chairman and CEO.  "More importantly,
 the ongoing strength of our fixed income investment performance should enable
 us to continue to increase market share over the remainder of the year.  As a
 result, I currently remain comfortable with 2001 consensus estimates for
 BlackRock's earnings for the second quarter and full year."
 
     First Quarter Highlights
 
     * Total revenue rose to $133.7 million, an increase of 24% from the
       $108.1 million reported for the first quarter 2000 and an increase of 4%
       compared with the fourth quarter 2000 total of $128.5 million.
 
     * Our pipeline of potential new business remained strong, with 178 fixed
       income searches totaling $25 billion and 110 equity searches totaling
       $8 billion.
 
     * Diluted cash earnings per share for the first quarter of 2001 were
       $0.43, a 26% increase versus $0.34 for the comparable period in 2000.
 
     BlackRock's operating margin for the first quarter 2001 was 35.8% compared
 with 35.9% for the fourth quarter of 2000.
     Earnings before interest, taxes, depreciation and amortization (EBITDA)
 for the first quarter of 2001 was $49.5 million, a 31% increase versus
 $37.8 million for the comparable period in 2000.
     Total investment advisory and administration fees for the quarter ended
 March 31, 2001 increased $23.4 million or 23% to $125.3 million compared with
 the first quarter of 2000 primarily due to a 65% increase in separate account
 revenue.  The increase in separate account revenue was driven by an increase
 in separate account assets of $27.4 billion or 26% and continued strong
 investment performance for alternative products which generated $16.5 million
 in performance fees for the first quarter.  The increases in separate account
 fees were partially offset by a decline in mutual fund revenue of $4.2 million
 or 7.1% due to market depreciation in equity mutual fund assets.  Other income
 increased $2.2 million or 36% largely due to increased sales of BlackRock
 Solutions' products.  Operating expenses for the first quarter 2001 rose
 $15.8 million or 21% to $91.8 million.  The increase was primarily
 attributable to a $14.8 million rise in compensation and benefits over half of
 which represented direct incentives on alternative product performance fees.
     Compared with the fourth quarter of 2000, revenue increased $5.2 million
 or 4% in the first quarter of 2001.  Separate account fees increased
 $4.4 million or 7% as a result of higher fixed income assets under management
 and included $2.0 million of performance fees on European equity institutional
 accounts.  Other income increased $2.1 million, or 33%, as a result of a
 discretionary performance fee associated with, and increased sales of,
 BlackRock Solutions' products.  Mutual fund fees decreased $1.3 million or
 2% due to market depreciation in equity mutual fund assets.
 
     About BlackRock.  BlackRock is one of the largest publicly traded
 investment management firms in the United States with $201.6 billion of assets
 under management as of March 31, 2001.  BlackRock manages assets on behalf of
 more than 3,300 institutions and 200,000 individuals worldwide through a
 variety of equity, fixed income, liquidity and alternative investment separate
 accounts and mutual funds, including BlackRock's flagship fund families,
 BlackRock Funds and BlackRock Provident Institutional Funds.  In addition,
 BlackRock provides risk management and investment system services to a growing
 number of institutional investors under the BlackRock Solutions name.  Clients
 are served from the Company's headquarters in New York City, as well as
 offices in Philadelphia, PA, Wilmington, DE, Edinburgh, Scotland and Tokyo,
 Japan.  BlackRock is a member of The PNC Financial Services Group, Inc.
 (NYSE:   PNC), one of the largest diversified financial services organizations
 in the United States, and is majority-owned by PNC and by BlackRock employees.
 
     Forward Looking Statements.  The third paragraph of this press release is
 a forward-looking statement within the meaning of the Private Securities
 Litigation Reform Act.  Forward-looking statements with respect to the
 Company's future financial or business performance, conditions, strategies,
 expectations and goals may also be included in other portions of this press
 release and in other statements the Company makes. Forward-looking statements
 are typically identified by words or phrases such as "remain," "currently,"
 "believe," "expect" "anticipate," "intend," "assume," "target," "estimate,"
 "continue," "position," "prospects," "strategy," "outlook," "trend," and
 variations of such words and similar expressions, or future or conditional
 verbs such as "will," "would," "should," "could," "may" or similar
 expressions.  BlackRock cautions that these forward-looking statements are
 subject to numerous assumptions, risks and uncertainties, which change over
 time.  Forward-looking statements speak only as of the date they are made, and
 BlackRock assumes no duty to update forward-looking statements.  Actual
 results could differ materially from those anticipated in these
 forward-looking statements and future results could differ materially from
 historical performance.
     The following factors, among others, could cause actual results to differ
 materially from forward-looking statements or historical performance: the
 introduction, withdrawal, success and timing of business initiatives and
 strategies; economic conditions; changes in interest rates and financial and
 capital markets; the investment performance of BlackRock's advised or
 sponsored investment products and separately managed accounts; competitive
 conditions; capital improvement projects; future acquisitions; and the impact,
 extent and timing of technological changes and legislative and regulatory
 actions and reforms.
     Please refer to BlackRock's Annual Report on Form 10-K for the year ended
 December 31, 2000 and subsequent reports filed with the Securities and
 Exchange Commission for a more detailed discussion of these and other factors.
 
 
                                BlackRock, Inc.
                              Financial Highlights
                      ($ in thousands, except share data)
                                  (unaudited)
 
                                                      Three months ended
                                                   March 31,       December 31,
                                               2001        2000         2000
 
     Total revenue                           $133,709    $108,060     $128,540
     Total expense                            $91,789     $75,942      $88,868
     Operating income                         $41,920     $32,118      $39,672
     Net income                               $25,496     $19,197      $24,546
     Diluted earnings per share                 $0.39       $0.30        $0.38
     Diluted cash earnings per share (a)        $0.43       $0.34        $0.42
     Average diluted shares outstanding    64,897,486  64,342,592   64,727,763
     EBITDA (b)                               $49,531     $37,801      $47,745
     Operating margin (c)                        35.8%       36.4%        35.9%
 
     Assets under management
      ($ in millions)                        $201,636    $172,573     $203,769
 
     (a) Net income plus amortization expense for the period divided by average
         diluted shares outstanding.
     (b) Earnings before interest, taxes, depreciation and amortization.
     (c) Operating income divided by total revenue less fund administration and
         servicing costs - affiliates.
 
                                  BlackRock, Inc.
                               Financial Highlights
                        ($ in thousands, except share data)
                                    (unaudited)
 
                                                     Variance vs.
                                           March 31, 2000   December 31, 2000
                                            Amount     %      Amount     %
 
     Total revenue                          $25,649    24%    $5,169     4%
     Total expense                          $15,847    21%    $2,921     3%
     Operating income                        $9,802    31%    $2,248     6%
     Net income                              $6,299    33%      $950     4%
     Diluted earnings per share               $0.09    30%     $0.01     3%
     Diluted cash earnings per share (a)      $0.09    26%     $0.01     2%
     Average diluted shares outstanding     554,894     1%   169,723     0%
     EBITDA (b)                             $11,730    31%    $1,786     4%
     Operating margin (c)
 
     Assets under management
      ($ in millions)                       $29,063    17%   ($2,133)   -1%
 
     (a) Net income plus amortization expense for the period divided by average
         diluted shares outstanding.
     (b) Earnings before interest, taxes, depreciation and amortization.
     (c) Operating income divided by total revenue less fund administration and
         servicing costs - affiliates.
 
 
                                BlackRock, Inc.
                  Condensed Consolidated Statements of Income
                (Dollar amounts in thousands, except share data)
                                  (unaudited)
 
                                                   Three months ended
                                            March 31,   March 31,  December 31,
                                               2001        2000        2000
 
     Revenue
     Investment advisory and administration fees:
       Mutual funds                            $54,916     $59,100     $56,186
       Separate accounts                        70,385      42,770      66,008
     Total investment advisory
      and administration fees                  125,301     101,870     122,194
     Other income                                8,408       6,190       6,346
     Total revenue                             133,709     108,060     128,540
 
     Expense
     Employee compensation and benefits         55,430      40,670      53,062
     Fund administration
      and servicing costs - affiliates          16,690      19,759      18,164
     General and administration                 17,055      13,100      15,029
     Amortization of intangible assets           2,614       2,413       2,613
     Total expense                              91,789      75,942      88,868
 
     Operating income                           41,920      32,118      39,672
 
     Non-operating income (expense)
     Investment income                           1,862       1,050       3,070
     Interest expense                             (201)       (353)       (201)
                                                 1,661         697       2,869
 
     Income before income taxes                 43,581      32,815      42,541
     Income taxes                               18,085      13,618      17,995
     Net income                                $25,496     $19,197     $24,546
 
     Weighted-average shares outstanding
        Basic                               64,159,248  63,864,382  63,930,387
        Diluted                             64,897,486  64,342,592  64,727,763
     Earnings per share
        Basic                                    $0.40       $0.30       $0.38
        Diluted                                  $0.39       $0.30       $0.38
 
     NM - Not meaningful
 
                                BlackRock, Inc.
                  Condensed Consolidated Statements of Income
                (Dollar amounts in thousands, except share data)
                                  (unaudited)
 
                                                       Variance vs.
                                                March 31,        December 31,
                                                  2000               2000
                                             Amount     Percent  Amount Percent
 
     Revenue
     Investment advisory and administration fees:
        Mutual funds                        ($4,184)     (7.1%) ($1,270) (2.3%)
        Separate accounts                    27,615       64.6    4,377    6.6
     Total investment advisory
      and administration fees                23,431       23.0    3,107    2.5
     Other income                             2,218       35.8    2,062   32.5
     Total revenue                           25,649       23.7    5,169    4.0
 
     Expense
     Employee compensation and benefits      14,760       36.3    2,368    4.5
     Fund administration
      and servicing costs - affiliates       (3,069)     (15.5)  (1,474)  (8.1)
     General and administration               3,955       30.2    2,026   13.5
     Amortization of intangible assets          201        8.3        1    0.0
     Total expense                           15,847       20.9    2,921    3.3
 
     Operating income                         9,802       30.5    2,248    5.7
 
     Non-operating income (expense)
     Investment income                          812       77.3   (1,208) (39.3)
     Interest expense                          (152)     (43.1)       --    NM
                                                964         NM   (1,208) (42.1)
 
     Income before income taxes              10,766       32.8    1,040    2.4
     Income taxes                             4,467       32.8       90    0.5
     Net income                              $6,299       32.8     $950    3.9
 
     Weighted-average shares outstanding
        Basic                               294,866       0.5%  228,861   0.4%
        Diluted                             554,894       0.9%  169,723   0.3%
     Earnings per share
        Basic                                 $0.10      33.3%    $0.02   5.3%
        Diluted                               $0.09      30.0%    $0.01   2.6%
 
     NM - Not meaningful
 
                                BlackRock, Inc.
           Condensed Consolidated Statements of  Financial Condition
                         (Dollar amounts in thousands)
                                  (unaudited)
 
                                                     March 31,    December 31,
                                                        2001          2000
     Assets
     Cash and cash equivalents                       $145,377       $192,590
     Accounts receivable                               86,430         83,284
     Investments                                       20,703         13,316
     Property and equipment, net                       50,658         45,598
     Intangible assets, net                           189,528        192,142
     Other assets                                       7,747         10,073
     Total assets                                    $500,443       $537,003
 
     Liabilities and stockholders' equity
     Accrued compensation                             $52,556       $130,101
     Accounts payable and accrued liabilities          36,544         27,014
     Acquired management contract obligation            8,040          8,040
     Other liabilities                                  1,489          3,607
     Total liabilities                                 98,629        168,762
 
     Stockholders' equity                             401,814        368,241
     Total liabilities and stockholders' equity      $500,443       $537,003
 
 
                                BlackRock, Inc.
                Condensed Consolidated Statements of Cash Flows
                         (Dollar amounts in thousands)
                                  (unaudited)
 
                                                       Period ended March 31,
                                                        2001           2000
     Cash flows from operating activities
     Net income                                       $25,496        $19,197
 
     Adjustments to reconcile net
      income to net cash used in operating activities:
     Depreciation and amortization                      5,749          4,633
     Stock-based compensation                           2,098            149
     Tax benefit from stock-based compensation          5,127             --
 
     Changes in operating assets and liabilities:
     Increase in accounts receivable                  (3,599)        (7,796)
     Decrease in receivable from affiliate                453          1,165
     Decrease (increase) in other assets                2,326        (1,738)
     Decrease in accrued compensation                (71,521)       (51,550)
     Increase in accounts
      payable and accrued liabilities                   9,530          4,138
     Decrease in accrued interest payable to affiliates    --          (705)
     Decrease in other liabilities                    (2,118)        (2,315)
     Cash used in operating activities               (26,459)       (34,822)
 
     Cash flows from investing activities
     Purchase of property and equipment               (8,195)        (5,630)
     (Purchase)/sale of investments                   (5,961)             41
     Cash used in investing activities               (14,156)        (5,589)
 
     Cash flows from financing activities
     Repayment of note and loan payable to affiliates      --       (28,200)
     Issuance of class A common stock                     203            162
 
     Purchase of treasury stock                       (6,472)             --
     Reissuance of treasury stock                         194             --
     Cash used in financing activities                (6,075)       (28,038)
 
     Effect of exchange rate changes
      on cash and cash equivalents                      (523)           (10)
 
     Net decrease in cash and cash equivalents       (47,213)       (68,459)
     Cash and cash equivalents, beginning of period   192,590        157,129
     Cash and cash equivalents, end of period        $145,377        $88,670
 
 
                                BlackRock, Inc.
                            Assets Under Management
                          (Dollar amounts in millions)
                                  (unaudited)
 
                                                   March 31,       December 31,
                                                2001       2000        2000
        Separate Accounts
          Fixed income                       $107,371     $77,595    $103,561
          Liquidity                             5,713       7,811       6,495
          Liquidity-Securities lending          7,514      11,299      11,501
          Equity                                7,796       6,414       8,716
          Alternative investment products       4,317       2,230       3,470
          Subtotal                            132,711     105,349     133,743
 
        Mutual Funds
          Fixed income                         13,600      13,923      13,317
          Liquidity                            44,252      36,862      43,190
          Equity                               11,073      16,439      13,519
          Subtotal                             68,925      67,224      70,026
        Total                                $201,636    $172,573    $203,769
 
 
                  Component Changes in Assets Under Management
 
                                                          Period ended
                                                            March 31,
                                                     2001             2000
     Separate Accounts
      Beginning assets under management            $133,743           $99,220
      Net subscriptions (redemptions)                (2,974)            3,807
      Market appreciation                             1,942             2,322
      Ending assets under management                132,711           105,349
     Mutual Funds
      Beginning assets under management              70,026            65,297
      Net subscriptions                                 876               760
      Market appreciation (depreciation)             (1,977)            1,167
      Ending assets under management                 68,925            67,224
 
     Total                                         $201,636          $172,573
 
     Net subscriptions (redemptions)                ($2,098)           $4,567
     % of Change in AUM from
      net subscriptions (redemptions)                  98.4%             56.7%
 
 
                                BlackRock, Inc.
                            Assets Under Management
                                Quarterly Trend
                          (Dollar amounts in millions)
                                  (unaudited)
 
                                              Quarter Ended
 
                                               2000                     2001
                              March 31  June 30   Sept. 30   Dec. 31   March 31
     Separate Accounts
 
     Fixed Income
     Beginning assets
      under management         $73,120   $77,595   $83,950   $96,791  $103,561
     Net subscriptions           2,430     5,756    10,606     2,776       699
     Market appreciation         2,045       599     2,235     3,994     3,111
     Ending assets
      under management          77,595    83,950    96,791   103,561   107,371
 
     Liquidity
     Beginning assets
      under management           7,902     7,811     7,052     5,147     6,495
     Net subscriptions
      (redemptions)               (114)     (779)   (1,925)    1,321      (813)
     Market appreciation            23        20        20        27        31
     Ending assets
      under management           7,811     7,052     5,147     6,495     5,713
 
     Liquidity-Securities lending
     Beginning assets
      under management          13,032    11,299    10,655    10,843    11,501
     Net subscriptions
      (redemptions)             (1,733)     (644)      188       658    (3,987)
     Market appreciation            --        --        --        --        --
     Ending assets
      under management          11,299    10,655    10,843    11,501     7,514
 
     Equity
     Beginning assets
      under management           3,080     6,414     7,621     7,500     8,716
     Net subscriptions           3,113     1,387       442     1,282       445
     Market appreciation
      (depreciation)               221      (180)     (563)      (66)   (1,365)
     Ending assets
      under management           6,414     7,621     7,500     8,716     7,796
 
     Alternative investment products
     Beginning assets
      under management           2,086     2,230     2,394     2,818     3,470
     Net subscriptions             111        95       336       584       682
     Market appreciation            33        69        88        68       165
     Ending assets
      under management           2,230     2,394     2,818     3,470     4,317
 
     Total Separate Accounts
     Beginning assets
      under management          99,220   105,349   111,672   123,099   133,743
     Net subscriptions
      (redemptions)              3,807     5,815     9,647     6,621    (2,974)
     Market appreciation         2,322       508     1,780     4,023     1,942
     Ending assets
      under management        $105,349  $111,672  $123,099  $133,743  $132,711
 
     Mutual Funds
 
     BlackRock Funds
     Beginning assets
      under management         $27,339   $29,280   $28,262   $27,819   $26,359
     Net subscriptions
      (redemptions)                994      (168)     (455)    1,463        65
     Market appreciation
      (depreciation)               947      (850)       12    (2,923)   (2,041)
     Ending assets
      under management          29,280    28,262    27,819    26,359    24,383
 
     BlackRock Global Series
     Beginning assets
      under management              --        --        --        54        75
     Net subscriptions              --        --        54        18        43
     Market appreciation
      (depreciation)                --        --        --         3       (13)
     Ending assets
      under management              --        --        54        75       105
 
     BPIF*
     Beginning assets
      under management          25,554    25,755    25,615    27,580    36,338
     Net subscriptions
      (redemptions)                201      (140)    1,965     4,662       709
     Exchanges                      --        --        --     4,096        --
     Ending assets
      under management          25,755    25,615    27,580    36,338    37,047
 
     Closed End
     Beginning assets
      under management           7,340     7,560     7,583     7,634     6,764
     Net redemptions                --       (30)       --      (954)       --
     Market appreciation           220        53        51        84        77
     Ending assets
      under management           7,560     7,583     7,634     6,764     6,841
 
     Short Term Investment Funds (STIF)*
     Beginning assets
      under management           5,064     4,629     4,205     4,622       490
     Net subscriptions
      (redemptions)               (435)     (424)      417       (36)       59
     Exchanges                      --        --        --    (4,096)       --
     Ending assets
      under management           4,629     4,205     4,622       490       549
 
     Total Mutual Funds
     Beginning assets
      under management          65,297    67,224    65,665    67,709    70,026
     Net subscriptions
      (redemptions)                760      (762)    1,981     5,153       876
     Market appreciation
      (depreciation)             1,167      (797)       63    (2,836)   (1,977)
     Ending assets
      under management         $67,224   $65,665   $67,709   $70,026   $68,925
 
     * During the fourth quarter of 2000, $4.1 billion of STIF assets under
       management were exchanged into the BPIF product.
 
 
 

SOURCE BlackRock, Inc.
    NEW YORK, April 12 /PRNewswire/ -- BlackRock, Inc. (NYSE:   BLK) today
 reported record net income of $25.5 million for the first quarter ended
 March 31, 2001, a 33% increase compared with $19.2 million earned in the first
 quarter of 2000 and a 4% increase compared with $24.5 million earned in the
 fourth quarter of 2000.  Diluted earnings per share for the first quarter were
 $0.39 compared with $0.30 and $0.38 for the first and fourth quarters of 2000,
 respectively.  Operating income of $41.9 million increased 31% and 6% compared
 with $32.1 million and $39.7 million earned in the first and fourth quarters
 of 2000, respectively  (See Table 1).
     Assets under management at March 31, 2001 were $201.6 billion, a
 17% increase compared to $172.6 billion at March 31, 2000 and a 1% decline
 from the $203.8 billion reported at year-end 2000.  New business and strong
 fixed income performance largely offset the adverse effect of the equity
 markets, which caused a $3.5 billion decline in equity asset values and a
 $4 billion decline in security lending assets, which are a low fee (2.5 basis
 point) product.  Quarter-end assets under management were also affected by the
 timing of new business fundings, as nine new institutional separate accounts
 totaling $5.3 billion funded on the first business day of the second quarter.
     "Despite treacherous financial markets, BlackRock generated earnings
 growth for the first quarter that we expect will compare favorably with our
 industry," commented Laurence D. Fink, Chairman and CEO.  "More importantly,
 the ongoing strength of our fixed income investment performance should enable
 us to continue to increase market share over the remainder of the year.  As a
 result, I currently remain comfortable with 2001 consensus estimates for
 BlackRock's earnings for the second quarter and full year."
 
     First Quarter Highlights
 
     * Total revenue rose to $133.7 million, an increase of 24% from the
       $108.1 million reported for the first quarter 2000 and an increase of 4%
       compared with the fourth quarter 2000 total of $128.5 million.
 
     * Our pipeline of potential new business remained strong, with 178 fixed
       income searches totaling $25 billion and 110 equity searches totaling
       $8 billion.
 
     * Diluted cash earnings per share for the first quarter of 2001 were
       $0.43, a 26% increase versus $0.34 for the comparable period in 2000.
 
     BlackRock's operating margin for the first quarter 2001 was 35.8% compared
 with 35.9% for the fourth quarter of 2000.
     Earnings before interest, taxes, depreciation and amortization (EBITDA)
 for the first quarter of 2001 was $49.5 million, a 31% increase versus
 $37.8 million for the comparable period in 2000.
     Total investment advisory and administration fees for the quarter ended
 March 31, 2001 increased $23.4 million or 23% to $125.3 million compared with
 the first quarter of 2000 primarily due to a 65% increase in separate account
 revenue.  The increase in separate account revenue was driven by an increase
 in separate account assets of $27.4 billion or 26% and continued strong
 investment performance for alternative products which generated $16.5 million
 in performance fees for the first quarter.  The increases in separate account
 fees were partially offset by a decline in mutual fund revenue of $4.2 million
 or 7.1% due to market depreciation in equity mutual fund assets.  Other income
 increased $2.2 million or 36% largely due to increased sales of BlackRock
 Solutions' products.  Operating expenses for the first quarter 2001 rose
 $15.8 million or 21% to $91.8 million.  The increase was primarily
 attributable to a $14.8 million rise in compensation and benefits over half of
 which represented direct incentives on alternative product performance fees.
     Compared with the fourth quarter of 2000, revenue increased $5.2 million
 or 4% in the first quarter of 2001.  Separate account fees increased
 $4.4 million or 7% as a result of higher fixed income assets under management
 and included $2.0 million of performance fees on European equity institutional
 accounts.  Other income increased $2.1 million, or 33%, as a result of a
 discretionary performance fee associated with, and increased sales of,
 BlackRock Solutions' products.  Mutual fund fees decreased $1.3 million or
 2% due to market depreciation in equity mutual fund assets.
 
     About BlackRock.  BlackRock is one of the largest publicly traded
 investment management firms in the United States with $201.6 billion of assets
 under management as of March 31, 2001.  BlackRock manages assets on behalf of
 more than 3,300 institutions and 200,000 individuals worldwide through a
 variety of equity, fixed income, liquidity and alternative investment separate
 accounts and mutual funds, including BlackRock's flagship fund families,
 BlackRock Funds and BlackRock Provident Institutional Funds.  In addition,
 BlackRock provides risk management and investment system services to a growing
 number of institutional investors under the BlackRock Solutions name.  Clients
 are served from the Company's headquarters in New York City, as well as
 offices in Philadelphia, PA, Wilmington, DE, Edinburgh, Scotland and Tokyo,
 Japan.  BlackRock is a member of The PNC Financial Services Group, Inc.
 (NYSE:   PNC), one of the largest diversified financial services organizations
 in the United States, and is majority-owned by PNC and by BlackRock employees.
 
     Forward Looking Statements.  The third paragraph of this press release is
 a forward-looking statement within the meaning of the Private Securities
 Litigation Reform Act.  Forward-looking statements with respect to the
 Company's future financial or business performance, conditions, strategies,
 expectations and goals may also be included in other portions of this press
 release and in other statements the Company makes. Forward-looking statements
 are typically identified by words or phrases such as "remain," "currently,"
 "believe," "expect" "anticipate," "intend," "assume," "target," "estimate,"
 "continue," "position," "prospects," "strategy," "outlook," "trend," and
 variations of such words and similar expressions, or future or conditional
 verbs such as "will," "would," "should," "could," "may" or similar
 expressions.  BlackRock cautions that these forward-looking statements are
 subject to numerous assumptions, risks and uncertainties, which change over
 time.  Forward-looking statements speak only as of the date they are made, and
 BlackRock assumes no duty to update forward-looking statements.  Actual
 results could differ materially from those anticipated in these
 forward-looking statements and future results could differ materially from
 historical performance.
     The following factors, among others, could cause actual results to differ
 materially from forward-looking statements or historical performance: the
 introduction, withdrawal, success and timing of business initiatives and
 strategies; economic conditions; changes in interest rates and financial and
 capital markets; the investment performance of BlackRock's advised or
 sponsored investment products and separately managed accounts; competitive
 conditions; capital improvement projects; future acquisitions; and the impact,
 extent and timing of technological changes and legislative and regulatory
 actions and reforms.
     Please refer to BlackRock's Annual Report on Form 10-K for the year ended
 December 31, 2000 and subsequent reports filed with the Securities and
 Exchange Commission for a more detailed discussion of these and other factors.
 
 
                                BlackRock, Inc.
                              Financial Highlights
                      ($ in thousands, except share data)
                                  (unaudited)
 
                                                      Three months ended
                                                   March 31,       December 31,
                                               2001        2000         2000
 
     Total revenue                           $133,709    $108,060     $128,540
     Total expense                            $91,789     $75,942      $88,868
     Operating income                         $41,920     $32,118      $39,672
     Net income                               $25,496     $19,197      $24,546
     Diluted earnings per share                 $0.39       $0.30        $0.38
     Diluted cash earnings per share (a)        $0.43       $0.34        $0.42
     Average diluted shares outstanding    64,897,486  64,342,592   64,727,763
     EBITDA (b)                               $49,531     $37,801      $47,745
     Operating margin (c)                        35.8%       36.4%        35.9%
 
     Assets under management
      ($ in millions)                        $201,636    $172,573     $203,769
 
     (a) Net income plus amortization expense for the period divided by average
         diluted shares outstanding.
     (b) Earnings before interest, taxes, depreciation and amortization.
     (c) Operating income divided by total revenue less fund administration and
         servicing costs - affiliates.
 
                                  BlackRock, Inc.
                               Financial Highlights
                        ($ in thousands, except share data)
                                    (unaudited)
 
                                                     Variance vs.
                                           March 31, 2000   December 31, 2000
                                            Amount     %      Amount     %
 
     Total revenue                          $25,649    24%    $5,169     4%
     Total expense                          $15,847    21%    $2,921     3%
     Operating income                        $9,802    31%    $2,248     6%
     Net income                              $6,299    33%      $950     4%
     Diluted earnings per share               $0.09    30%     $0.01     3%
     Diluted cash earnings per share (a)      $0.09    26%     $0.01     2%
     Average diluted shares outstanding     554,894     1%   169,723     0%
     EBITDA (b)                             $11,730    31%    $1,786     4%
     Operating margin (c)
 
     Assets under management
      ($ in millions)                       $29,063    17%   ($2,133)   -1%
 
     (a) Net income plus amortization expense for the period divided by average
         diluted shares outstanding.
     (b) Earnings before interest, taxes, depreciation and amortization.
     (c) Operating income divided by total revenue less fund administration and
         servicing costs - affiliates.
 
 
                                BlackRock, Inc.
                  Condensed Consolidated Statements of Income
                (Dollar amounts in thousands, except share data)
                                  (unaudited)
 
                                                   Three months ended
                                            March 31,   March 31,  December 31,
                                               2001        2000        2000
 
     Revenue
     Investment advisory and administration fees:
       Mutual funds                            $54,916     $59,100     $56,186
       Separate accounts                        70,385      42,770      66,008
     Total investment advisory
      and administration fees                  125,301     101,870     122,194
     Other income                                8,408       6,190       6,346
     Total revenue                             133,709     108,060     128,540
 
     Expense
     Employee compensation and benefits         55,430      40,670      53,062
     Fund administration
      and servicing costs - affiliates          16,690      19,759      18,164
     General and administration                 17,055      13,100      15,029
     Amortization of intangible assets           2,614       2,413       2,613
     Total expense                              91,789      75,942      88,868
 
     Operating income                           41,920      32,118      39,672
 
     Non-operating income (expense)
     Investment income                           1,862       1,050       3,070
     Interest expense                             (201)       (353)       (201)
                                                 1,661         697       2,869
 
     Income before income taxes                 43,581      32,815      42,541
     Income taxes                               18,085      13,618      17,995
     Net income                                $25,496     $19,197     $24,546
 
     Weighted-average shares outstanding
        Basic                               64,159,248  63,864,382  63,930,387
        Diluted                             64,897,486  64,342,592  64,727,763
     Earnings per share
        Basic                                    $0.40       $0.30       $0.38
        Diluted                                  $0.39       $0.30       $0.38
 
     NM - Not meaningful
 
                                BlackRock, Inc.
                  Condensed Consolidated Statements of Income
                (Dollar amounts in thousands, except share data)
                                  (unaudited)
 
                                                       Variance vs.
                                                March 31,        December 31,
                                                  2000               2000
                                             Amount     Percent  Amount Percent
 
     Revenue
     Investment advisory and administration fees:
        Mutual funds                        ($4,184)     (7.1%) ($1,270) (2.3%)
        Separate accounts                    27,615       64.6    4,377    6.6
     Total investment advisory
      and administration fees                23,431       23.0    3,107    2.5
     Other income                             2,218       35.8    2,062   32.5
     Total revenue                           25,649       23.7    5,169    4.0
 
     Expense
     Employee compensation and benefits      14,760       36.3    2,368    4.5
     Fund administration
      and servicing costs - affiliates       (3,069)     (15.5)  (1,474)  (8.1)
     General and administration               3,955       30.2    2,026   13.5
     Amortization of intangible assets          201        8.3        1    0.0
     Total expense                           15,847       20.9    2,921    3.3
 
     Operating income                         9,802       30.5    2,248    5.7
 
     Non-operating income (expense)
     Investment income                          812       77.3   (1,208) (39.3)
     Interest expense                          (152)     (43.1)       --    NM
                                                964         NM   (1,208) (42.1)
 
     Income before income taxes              10,766       32.8    1,040    2.4
     Income taxes                             4,467       32.8       90    0.5
     Net income                              $6,299       32.8     $950    3.9
 
     Weighted-average shares outstanding
        Basic                               294,866       0.5%  228,861   0.4%
        Diluted                             554,894       0.9%  169,723   0.3%
     Earnings per share
        Basic                                 $0.10      33.3%    $0.02   5.3%
        Diluted                               $0.09      30.0%    $0.01   2.6%
 
     NM - Not meaningful
 
                                BlackRock, Inc.
           Condensed Consolidated Statements of  Financial Condition
                         (Dollar amounts in thousands)
                                  (unaudited)
 
                                                     March 31,    December 31,
                                                        2001          2000
     Assets
     Cash and cash equivalents                       $145,377       $192,590
     Accounts receivable                               86,430         83,284
     Investments                                       20,703         13,316
     Property and equipment, net                       50,658         45,598
     Intangible assets, net                           189,528        192,142
     Other assets                                       7,747         10,073
     Total assets                                    $500,443       $537,003
 
     Liabilities and stockholders' equity
     Accrued compensation                             $52,556       $130,101
     Accounts payable and accrued liabilities          36,544         27,014
     Acquired management contract obligation            8,040          8,040
     Other liabilities                                  1,489          3,607
     Total liabilities                                 98,629        168,762
 
     Stockholders' equity                             401,814        368,241
     Total liabilities and stockholders' equity      $500,443       $537,003
 
 
                                BlackRock, Inc.
                Condensed Consolidated Statements of Cash Flows
                         (Dollar amounts in thousands)
                                  (unaudited)
 
                                                       Period ended March 31,
                                                        2001           2000
     Cash flows from operating activities
     Net income                                       $25,496        $19,197
 
     Adjustments to reconcile net
      income to net cash used in operating activities:
     Depreciation and amortization                      5,749          4,633
     Stock-based compensation                           2,098            149
     Tax benefit from stock-based compensation          5,127             --
 
     Changes in operating assets and liabilities:
     Increase in accounts receivable                  (3,599)        (7,796)
     Decrease in receivable from affiliate                453          1,165
     Decrease (increase) in other assets                2,326        (1,738)
     Decrease in accrued compensation                (71,521)       (51,550)
     Increase in accounts
      payable and accrued liabilities                   9,530          4,138
     Decrease in accrued interest payable to affiliates    --          (705)
     Decrease in other liabilities                    (2,118)        (2,315)
     Cash used in operating activities               (26,459)       (34,822)
 
     Cash flows from investing activities
     Purchase of property and equipment               (8,195)        (5,630)
     (Purchase)/sale of investments                   (5,961)             41
     Cash used in investing activities               (14,156)        (5,589)
 
     Cash flows from financing activities
     Repayment of note and loan payable to affiliates      --       (28,200)
     Issuance of class A common stock                     203            162
 
     Purchase of treasury stock                       (6,472)             --
     Reissuance of treasury stock                         194             --
     Cash used in financing activities                (6,075)       (28,038)
 
     Effect of exchange rate changes
      on cash and cash equivalents                      (523)           (10)
 
     Net decrease in cash and cash equivalents       (47,213)       (68,459)
     Cash and cash equivalents, beginning of period   192,590        157,129
     Cash and cash equivalents, end of period        $145,377        $88,670
 
 
                                BlackRock, Inc.
                            Assets Under Management
                          (Dollar amounts in millions)
                                  (unaudited)
 
                                                   March 31,       December 31,
                                                2001       2000        2000
        Separate Accounts
          Fixed income                       $107,371     $77,595    $103,561
          Liquidity                             5,713       7,811       6,495
          Liquidity-Securities lending          7,514      11,299      11,501
          Equity                                7,796       6,414       8,716
          Alternative investment products       4,317       2,230       3,470
          Subtotal                            132,711     105,349     133,743
 
        Mutual Funds
          Fixed income                         13,600      13,923      13,317
          Liquidity                            44,252      36,862      43,190
          Equity                               11,073      16,439      13,519
          Subtotal                             68,925      67,224      70,026
        Total                                $201,636    $172,573    $203,769
 
 
                  Component Changes in Assets Under Management
 
                                                          Period ended
                                                            March 31,
                                                     2001             2000
     Separate Accounts
      Beginning assets under management            $133,743           $99,220
      Net subscriptions (redemptions)                (2,974)            3,807
      Market appreciation                             1,942             2,322
      Ending assets under management                132,711           105,349
     Mutual Funds
      Beginning assets under management              70,026            65,297
      Net subscriptions                                 876               760
      Market appreciation (depreciation)             (1,977)            1,167
      Ending assets under management                 68,925            67,224
 
     Total                                         $201,636          $172,573
 
     Net subscriptions (redemptions)                ($2,098)           $4,567
     % of Change in AUM from
      net subscriptions (redemptions)                  98.4%             56.7%
 
 
                                BlackRock, Inc.
                            Assets Under Management
                                Quarterly Trend
                          (Dollar amounts in millions)
                                  (unaudited)
 
                                              Quarter Ended
 
                                               2000                     2001
                              March 31  June 30   Sept. 30   Dec. 31   March 31
     Separate Accounts
 
     Fixed Income
     Beginning assets
      under management         $73,120   $77,595   $83,950   $96,791  $103,561
     Net subscriptions           2,430     5,756    10,606     2,776       699
     Market appreciation         2,045       599     2,235     3,994     3,111
     Ending assets
      under management          77,595    83,950    96,791   103,561   107,371
 
     Liquidity
     Beginning assets
      under management           7,902     7,811     7,052     5,147     6,495
     Net subscriptions
      (redemptions)               (114)     (779)   (1,925)    1,321      (813)
     Market appreciation            23        20        20        27        31
     Ending assets
      under management           7,811     7,052     5,147     6,495     5,713
 
     Liquidity-Securities lending
     Beginning assets
      under management          13,032    11,299    10,655    10,843    11,501
     Net subscriptions
      (redemptions)             (1,733)     (644)      188       658    (3,987)
     Market appreciation            --        --        --        --        --
     Ending assets
      under management          11,299    10,655    10,843    11,501     7,514
 
     Equity
     Beginning assets
      under management           3,080     6,414     7,621     7,500     8,716
     Net subscriptions           3,113     1,387       442     1,282       445
     Market appreciation
      (depreciation)               221      (180)     (563)      (66)   (1,365)
     Ending assets
      under management           6,414     7,621     7,500     8,716     7,796
 
     Alternative investment products
     Beginning assets
      under management           2,086     2,230     2,394     2,818     3,470
     Net subscriptions             111        95       336       584       682
     Market appreciation            33        69        88        68       165
     Ending assets
      under management           2,230     2,394     2,818     3,470     4,317
 
     Total Separate Accounts
     Beginning assets
      under management          99,220   105,349   111,672   123,099   133,743
     Net subscriptions
      (redemptions)              3,807     5,815     9,647     6,621    (2,974)
     Market appreciation         2,322       508     1,780     4,023     1,942
     Ending assets
      under management        $105,349  $111,672  $123,099  $133,743  $132,711
 
     Mutual Funds
 
     BlackRock Funds
     Beginning assets
      under management         $27,339   $29,280   $28,262   $27,819   $26,359
     Net subscriptions
      (redemptions)                994      (168)     (455)    1,463        65
     Market appreciation
      (depreciation)               947      (850)       12    (2,923)   (2,041)
     Ending assets
      under management          29,280    28,262    27,819    26,359    24,383
 
     BlackRock Global Series
     Beginning assets
      under management              --        --        --        54        75
     Net subscriptions              --        --        54        18        43
     Market appreciation
      (depreciation)                --        --        --         3       (13)
     Ending assets
      under management              --        --        54        75       105
 
     BPIF*
     Beginning assets
      under management          25,554    25,755    25,615    27,580    36,338
     Net subscriptions
      (redemptions)                201      (140)    1,965     4,662       709
     Exchanges                      --        --        --     4,096        --
     Ending assets
      under management          25,755    25,615    27,580    36,338    37,047
 
     Closed End
     Beginning assets
      under management           7,340     7,560     7,583     7,634     6,764
     Net redemptions                --       (30)       --      (954)       --
     Market appreciation           220        53        51        84        77
     Ending assets
      under management           7,560     7,583     7,634     6,764     6,841
 
     Short Term Investment Funds (STIF)*
     Beginning assets
      under management           5,064     4,629     4,205     4,622       490
     Net subscriptions
      (redemptions)               (435)     (424)      417       (36)       59
     Exchanges                      --        --        --    (4,096)       --
     Ending assets
      under management           4,629     4,205     4,622       490       549
 
     Total Mutual Funds
     Beginning assets
      under management          65,297    67,224    65,665    67,709    70,026
     Net subscriptions
      (redemptions)                760      (762)    1,981     5,153       876
     Market appreciation
      (depreciation)             1,167      (797)       63    (2,836)   (1,977)
     Ending assets
      under management         $67,224   $65,665   $67,709   $70,026   $68,925
 
     * During the fourth quarter of 2000, $4.1 billion of STIF assets under
       management were exchanged into the BPIF product.
 
 
 SOURCE  BlackRock, Inc.

RELATED LINKS

http://www.pncbank.com