<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
X SECURITIES EXCHANGE ACT OF 1934
For the quarter ended December 31, 1993
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 1-8408
THE ADVEST GROUP, INC.
(Exact name of registrant as specified in its charter)
Delaware 06-0950444
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
One Commercial Plaza - 280 Trumbull Street
Hartford, Connecticut 06103
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (203) 525-1421
NONE
Former name, former address and former fiscal year, if changed since last
report.
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock, $.01 par value 8,766,517 shares
Class Outstanding at January 31, 1994
Total of sequentially numbered pages 16.
Exhibit index sequential page nubmer page 15.
<PAGE>
THE ADVEST GROUP, INC.
INDEX
Page No.
PART I. Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets
December 31, 1993 and September 30, 1993 1
Consolidated Statements of Operations
Three Months Ended December 31, 1993 and 1992 3
Consolidated Statements of Cash Flows
Three Months Ended December 31, 1993 and 1992 4
Consolidated Statement of Changes in Shareholders' Equity
Three Months Ended December 31, 1993 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
PART II. Other Information
Item 1. Legal Proceedings 12
Item 6. Exhibits and Reports on Form 8-K 12
Signatures 14
<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
THE ADVEST GROUP, INC.
CONSOLIDATED BALANCE SHEETS
<CAPTION>
December 31, September 30,
(In thousands, except share and per share amounts) 1993 1993
- --------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C>
Assets
Cash and short-term investments
Cash and cash equivalents $ 29,032 $ 19,232
Cash and securities segregated under
federal and other regulations 119,965 106,173
Interest-earning deposits and
investments 19,000 35,000
---------- ----------
167,997 160,405
---------- ----------
Receivables
Brokerage customers, less reserve for
doubtful accounts of $1,323 and $1,305 290,625 269,639
Loans, less allowance for loan
losses of $5,525 and $5,782 253,263 244,932
Brokers and dealers 39,781 32,261
Interest and dividends 4,806 2,729
Other 11,052 12,292
---------- ----------
599,527 561,853
---------- ----------
Securities
Investment securities (market values
of $68,450 and $48,065) 68,559 48,104
Securities available for sale (market values
of $9,602 and $38,763) 9,591 38,662
Securities inventory, at market value 31,417 25,716
---------- ----------
109,567 112,482
---------- ----------
Other assets
Other real estate owned, net 22,310 22,683
Equipment and leasehold improvements,
less accumulated depreciation and
amortization of $25,997 and $25,724 7,567 6,980
Exchange memberships, at cost (latest
sales prices of $2,786 and $2,827) 998 998
Other 20,547 19,768
---------- ----------
51,422 50,429
---------- ----------
Total Assets $ 928,513 $ 885,169
========== ==========
- 1 -
<PAGE>
THE ADVEST GROUP, INC.
CONSOLIDATED BALANCE SHEETS
<CAPTION>
December 31, September 30,
(In thousands, except share and per share amounts) 1993 1993
- --------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C>
Liabilities & Shareholders' Equity
Liabilities
Deposits $ 345,677 $ 346,712
Brokerage customers 369,700 328,150
Brokers and dealers 42,596 48,597
Compensation and benefits 13,727 16,118
Checks payable 10,056 15,007
Securities sold, not yet purchased, at market value 3,359 2,630
Interest and dividends 2,909 2,022
Short-term borrowings 14,752 1,652
Other 14,222 13,879
---------- ----------
816,998 774,767
Long-term borrowings 14,875 15,038
Subordinated borrowings 21,375 21,375
---------- ----------
853,248 811,180
---------- ----------
Shareholders' Equity
Preferred stock, par value $.01,
authorized 2,000,000 shares, none issued - -
Common stock, par value $.01,
authorized 25,000,000 shares, issued
10,566,422 shares and 10,563,422 shares 106 105
Paid-in capital 67,390 67,378
Retained earnings 15,737 13,552
Less: Treasury stock, at cost,
1,631,705 shares and 1,498,805 shares (7,968) (7,046)
---------- ----------
75,265 73,989
---------- ----------
Total Liabilities and Shareholders' Equity $ 928,513 $ 885,169
========== ==========
<FN>
The accompanying notes are an integral part of these consolidated financial
statements.
</TABLE>
- 2 -
<PAGE>
<TABLE>
THE ADVEST GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Three Months Ended
December 31,
(In thousands, except per share amount) 1993 1992
- -------------------------------------------------------------------------------------
<S> <C> <C>
Revenues
Commissions $ 21,824 $ 17,880
Interest 10,946 11,191
Investment banking 9,357 8,278
Principal transactions 9,082 8,162
Asset management and administration 3,969 3,916
Other 1,170 763
---------- ----------
Total revenues 56,348 50,190
---------- ----------
Expenses
Compensation and benefits 31,304 26,943
Interest 5,392 6,081
Communications 4,148 3,246
Occupancy and equipment 3,979 4,341
Professional 1,511 1,128
Provision for credit losses and asset devaluation 1,308 1,250
Business development 1,231 1,235
Brokerage, clearing and exchange 963 988
Other 2,678 2,883
---------- ----------
Total expenses 52,514 48,095
---------- ----------
Income before taxes and extraordinary credit 3,834 2,095
Provision for income taxes 1,649 518
---------- ----------
Income before extraordinary credit 2,185 1,577
Extraordinary credit - utilization
of operating loss carryforward - 368
---------- ----------
NET INCOME $ 2,185 $ 1,945
========== ==========
Net income per common share:
Primary:
Income before extraordinary credit $ 0.24 $ 0.16
Extraordinary credit - 0.04
---------- ----------
Net income $ 0.24 $ 0.20
========== ==========
Assuming full dilution:
Income before extraordinary credit $ 0.23 $ 0.16
Extraordinary credit - 0.04
---------- ----------
Net income $ 0.23 $ 0.20
========== ==========
<FN>
The accompanying notes are an integral part of these consolidated financial
statements.
</TABLE> - 3 -
<PAGE>
<TABLE>
THE ADVEST GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Three Months Ended
December 31,
--------------------
(In thousands) 1993 1992
- --------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 2,185 $ 1,945
Adjustments to reconcile net income to net cash
provided by operating activites:
Amortization 1,168 857
Depreciation 494 460
Provision for credit losses and asset devaluation 1,308 1,250
Other 880 702
Deferred ESOP contribution - 1,000
(Increase) decrease in operating assets:
Receivables from brokerage customers (21,106) 21,789
Receivables from brokers and dealers (7,520) 515
Securities inventory (5,701) (2,787)
Cash and securities segregated under federal and other regulations (13,792) (44,980)
Other (939) (1,985)
Increase (decrease) in operating liabilities:
Brokerage customers 41,550 41,607
Brokers and dealers (6,001) 512
Checks payable (4,951) (11,364)
Other (1,950) 1,841
--------- ---------
Net cash (used for) provided by operating activities (14,375) 11,362
--------- ---------
FINANCING ACTIVITIES
Net decrease in deposits (1,035) (9,790)
Repayment of short-term borrowings (663) (163)
Short-term brokerage borrowings, net 13,600 (1,500)
Other (909) (388)
--------- ---------
Net cash provided by (used for) financing activities 10,993 (11,841)
--------- ---------
INVESTING ACTIVITIES
Proceeds from sales of investments 10,910 7,161
Proceeds from maturities of investments 64,379 33,294
Purchase of investment securities and short-term investments (50,788) (45,144)
Principal collections on loans 10,938 14,814
Proceeds from other real estate owned, net 903 1,565
Loans originated (19,457) (12,682)
Other (3,703) 159
--------- ---------
Net cash provided by (used for) investing activities 13,182 (833)
--------- ---------
Increase (decrease) in cash and cash equivalents 9,800 (1,312)
Cash and cash equivalents at beginning of period 19,232 31,118
--------- ---------
Cash and cash equivalents at period end $ 29,032 $ 29,806
========= =========
Interest paid $ 5,164 $ 5,769
Income taxes paid $ 308 $ 813
Non-cash transfers:
Loans to OREO $ 737 $ 706
Securities held for sale to Investment securities $ 27,910 $ -
<FN>
The accompanying notes are an integral part of these consolidated financial
statements.
</TABLE>
- 4 -
<PAGE>
<TABLE>
THE ADVEST GROUP, INC.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(Unaudited)
<CAPTION>
$.01 Par Value
(In thousands, Common Stock Treasury Stock Total
except share and ---------------- Paid-In Retained ------------------- Shareholders'
per share amounts) Shares Amount Capital Earnings Shares Amount Equity
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance, as of
September 30, 1993 10,563,422 $105 $67,378 $13,552 (1,498,805) ($7,046) $73,989
Net Income 2,185 2,185
Exercise of Stock
Options 3,000 1 12 13
Purchase of
Treasury Stock (132,900) (922) (922)
-------------------------------------------------------------------------
Balance, as of
December 31, 1993 10,566,422 $106 $67,390 $15,737 (1,631,705) ($7,968) $75,265
=========================================================================
<FN>
The accompanying notes are an integral part of these consolidated financial
statements.
</TABLE>
- 5 -
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Financial Statements:
The consolidated financial statements have been prepared in
accordance with the instructions to Form 10-Q and do not include all of
the information and notes required by generally accepted accounting
principles for complete financial statements. The consolidated
financial statements include the accounts of The Advest Group, Inc. and
all subsidiaries (the "Company"), including Advest, Inc. ("Advest"), a
broker dealer; Advest Bank (the "Bank"), a state-chartered savings bank;
Boston Security Counsellors, an investment management company; and
Billings & Company, Inc., a real estate services company. All
significant intercompany transactions and accounts have been eliminated
in consolidation. All normal recurring adjustments which, in the
opinion of management, are necessary for a fair presentation of the
consolidated financial condition and results of operations for the
interim periods presented have been made. Certain fiscal 1993 amounts
have been reclassified in the accompanying consolidated financial
statements to provide comparability with the current year presentation.
The results of operations for the interim periods are not necessarily
indicative of the results for a full year.
The statements should be read in conjunction with the Notes to the
Consolidated Financial Statements and Management's Discussion and
Analysis of Financial Condition and Results of Operations included in
the Company's Annual Report for the year ended September 30, 1993, as
filed with the Securities and Exchange Commission on Form 10-K.
2. Summary of Significant Accounting Policies:
On October 1, 1993, the Company prospectively adopted Statement of
Financial Accounting Standards No. 109, "Accounting for Income Taxes"
("SFAS 109"). SFAS 109 requires an asset and liability approach for
financial accounting and reporting for income taxes. Deferred tax
assets and liabilities are recognized for the future tax consequences of
events that have been reported in the Company's financial statements or
tax returns, including net operating losses. If it is more likely than
not that some or all of a deferred tax asset will not be realized, a
valuation reserve must be provided. The adoption of SFAS 109 did not
have a material effect on the Company's financial condition or results
of operations.
During the quarter ending December 31, 1993, the Bank transferred
approximately $28.0 million of FNMA and FHLMC adjustable rate mortgage
backed securities from the available for sale portfolio to the held for
investment portfolio. The transfer reflected a reevaluation of
management's intent with respect to these securities, which have
relatively short average lives (4 to 5 years) and will not be needed to
meet liquidity needs. Consistent with Company accounting policies,
investments held to maturity are carried at amortized cost. Investments
available for sale are carried at the lower of aggregate cost or market.
- 6 -
<PAGE>
3. Capital and Regulatory Requirements:
Advest is subject to the net capital rule adopted and administered
by the New York Stock Exchange, Inc. ("NYSE") and the Securities and
Exchange Commission. Advest has elected to compute its net capital
under the alternative method of the rule which requires the maintenance
of minimum net capital equal to 2% of aggregate debit balances arising
from customer transactions, as defined. The NYSE also may require a
member firm to reduce its business if net capital is less than 4% of
aggregate debit balances and may prohibit a member firm from expanding
its business and declaring cash dividends if net capital is less than 5%
of aggregate debit balances.
At December 31, 1993, Advest's regulatory net capital of $31.8
million was 10% of aggregate debit balances and exceeded required net
capital by $25.7 million.
The Federal Deposit Insurance Corporation ("FDIC") requires most
banks to establish and maintain leverage capital of 4% to 5%. Pursuant
to a Memorandum of Understanding (the "MOU") with the Regional Director
of the FDIC and the Banking Commissioner of the State of Connecticut,
the Bank is required to exercise all reasonable good faith efforts to
achieve (generally within unspecified time periods) certain goals,
including among others: to achieve and maintain a leverage capital ratio
of at least 6% and comply with existing risk-based capital requirements,
to ensure that there are adequate loan loss reserves and quarterly
evaluations of such reserves, to reduce the level of overdue and non-
accrual loans to not more than 5% of total loans, to reduce the level of
adversely classified assets to not more than 40% of total capital and
reserves, to develop a written policy addressing concentrations of
credit and to provide periodic progress reports to regulatory agencies.
At December 31, 1993, the Bank's leverage capital ratio was 6.2%
which met the regulatory requirements. In addition, the Bank must
maintain risk-based capital of 8.0%, including at least 4.0% Tier 1
capital. At December 31, 1993, the Bank's total risk-based capital
ratio was 10.7% and the Tier 1 ratio was 9.4%, which exceeded the
regulatory requirements.
4. Income per share calculations:
Primary income per common share is computed by dividing net income,
respectively, by the weighted average number of common stock and common
stock equivalents outstanding during the period. Fully diluted income
per common share assumes conversion of outstanding convertible
debentures as well.
The weighted average number of common stock and common stock
equivalents included in the primary and fully diluted per share
calculations are as follows (in thousands):
For the quarters ended December 31, 1993 1992
Primary 9,286 9,568
====== ======
Assuming full dilution 10,872 9,568
====== ======
- 7 -
<PAGE>
5. Income Taxes:
The implementation of SFAS 109 on October 1, 1993 had no material
effect on the Company's results of operations and financial condition.
At October 1, 1993, deferred tax assets and liabilities were comprised
of (in thousands):
Deferred Tax Assets:
Loss reserves $ 3,623
Employee benefits 3,655
Loss carryforwards and
tax credits 2,035
Other 298
------
9,611
------
Deferred Tax Liabilities:
Partnerships 2,069
Employee benefits 1,733
Loss reserves 620
Depreciation 403
Other 92
------
4,917
------
Net deferred income taxes $ 4,694
======
The above amounts are net of valuation reserves of $1.6 million
primarily related to state net operating loss carryforwards and loan loss
allowances which are not expected to be realized. As of October 1, 1993, the
Company had federal and state net operating losses of $4.1 million and $5.0
million, respectively. The federal carryforwards expire in 2008 and the state
carryforwards expire on various dates through 1998.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Business Environment
The Advest Group, Inc. is a financial services holding company engaged
with its operating subsidiaries (the "Company") in securities brokerage,
trading, investment banking, commercial and consumer lending, asset management
and related financial services. All aspects of the business of the Company are
highly competitive and impacted by a variety of factors outside of its control
including economic conditions, the political climate and investor sentiment.
Consequently, revenues and operating results can vary significantly from one
reporting period to the next. Principal operating subsidiaries are Advest,
Inc., a broker-dealer; Advest Bank (the "Bank"), a state-chartered savings bank
and Boston Security Counsellors ("BSC"), an investment advisor.
- 8 -
<PAGE>
The Company reported its sixth consecutive quarterly profit for the
quarter ending December 31, 1993, posting pre-tax income of $3.8 million, an 83%
increase over the prior year. Net income advanced 12% to $2.2 million ($.24 per
share) compared with $1.9 million ($.20 per share) a year earlier. Results for
the 1992 quarter also included a $.04 per share extraordinary credit from the
utilization of net operating loss carryforwards.
Advest, Inc.
The calendar year ended December 31, 1993 produced record stock and bond
underwritings on Wall Street for the third consecutive year, raising $1.5
trillion in new capital world-wide and surpassing 1992 results by 36%. The Dow
closed at 3754 reflecting 6% and 14% increases for the quarter and year,
respectively. Over-the-counter issues gained 15% on the year (2% on the
quarter) as the NASDAQ Composite closed at 777. Investors continue to turn to
the equity arena for higher yields and cyclical stocks, particularly, in the
fourth quarter, benefitted as the economy showed signs of sustained recovery.
Municipal debt offerings were in demand as investors looked to shelter income
and corporations took advantage of lower rates to replace high cost debt.
Advest posted pre-tax earnings of $5.1 million for the quarter, a 42%
increase from the prior year. Revenues increased across the board including net
interest income. Production per broker increased 8% to $286,000 on an
annualized basis and there were 500 salesmen at December 31, 1993.
Advest Bank
The Bank reported a pre-tax loss of $68,000 for the quarter, a 63%
improvement from the prior year. The improvement is attributable to a $.6
million decrease in loan loss and OREO provisions in the current year which was
partly offset by increases in other operating expenses. At December 31, 1993,
non-performing assets of the Bank were $28.1 million (7.3% of total bank assets)
compared with $27.8 million (7.2% of total bank assets) at September 30, 1993.
Advest Bank continues to concentrate its lending efforts on one to four
family residential mortgages. During the quarter, residential mortgage loans
increased by $11.1 million and commercial loans decreased by $3.1 million. The
Bank's level of delinquent loans decreased slightly from 5.32% at September 30,
1993 to $5.26% at December 31, 1993. The loan loss reserves stood at $5.3
million or 2.1% of total loans and 90.6% of non-performing loans. This compares
with loan loss reserves of $5.4 million or 2.2% of total loans and 105.3% of
non-performing loans at September 30, 1993.
Other
BSC posted record quarterly revenues of $1.1 million in the current
quarter and its pre-tax earnings increased 93% to $.4 million compared with the
prior year. Total assets under management (including the Company's proprietary
Advantage Mutual Funds) increased 47% to $697 million.
As of January 1,1994, Lyons, Zomback & Ostrowski, Inc., the Company's
financial consulting subsidiary, was merged into the corporate finance division
of Advest.
- 9 -
<PAGE>
Results of Operations
Three Months Ended December 31, 1993 Versus
Three Months Ended December 31, 1992
Net revenues, total revenues less interest expense, increased 16% to
$51.0 million and expenses, excluding interest, rose 12% to $47.1 million. The
effective tax rate was 43% in the current quarter compared with 25% in the prior
year. The lower rate in December 1992 resulted from the realization of certain
permanent differences associated with the book and tax basis of assets sold in
the November 1992 sale of Shore & Reich, Ltd., a pension plan administrator.
Commission revenue increased $3.9 million (22%) to $21.8 million, led by
sales and distribution fees related to proprietary and other mutual funds which
increased 33% to $6 million. Sales of insurance products, particularly tax-
sheltered variable annuities, increased $.7 million (82%) and income from over-
the-counter stocks and listed issues rose $.9 million (41%) and $.4 million
(4%), respectively.
Revenue from principal transactions was $9.1 million, a $.9 million
(11%) increase. Commissions on equities increased $.8 million (40%) and were
partially offset by a $.1 million decline in related trading profits. Bond
commissions were up $.1 million (3%) as increases, primarily from sales of high
yield corporate issues, were substantially offset by declines in sales of
collateralized mortgage obligations. Trading profits on municipal and
government obligations increased $.2 million (78%).
Investment banking revenues increased $1.1 million (13%) to $9.4 million
primarily due to a $1.1 million (32%) increase in equity underwriting
commissions. A $1.0 million increase in management fees was negated by a
decline in other fee income related to a substantial fee received in the prior
year's quarter. Advest's corporate finance division continues to focus its
efforts on raising capital for mid-sized companies, primarily in the financial
and healthcare industries. Public finance services healthcare and educational
institutions as well as state and local issuers.
Asset management and administration revenue from continuing operations
increased $.6 million (18%) to $4.0 million. Advest and BSC posted $.3 million
(12%) and $.3 million (35%) increases respectively as a result of increased
assets under management. Overall, asset management fees are substantially
unchanged between periods due to $.6 million in revenue posted by S&R in the
1992 period prior to its sale.
Net interest income increased $.4 million (9%) to $5.6 million.
Advest's net interest was up $.5 million (17%) primarily due to an increase in
average margin debits and related interest spreads and higher yields on short-
term investments. The Bank's net interest declined less than $.1 million (3%),
although net interest income as a percentage of average assets was up slightly
for the current quarter.
Other income increased $.4 million (53%) primarily as a result of
increases in various fees.
- 10 -
<PAGE>
Compensation and benefits expenses increased $4.4 million (16%) in the
1993 quarter primarily due to sales related compensation and incentives at
Advest. Firm-wide, compensation increased due to general payroll increases as
well as enhancements to the Company's retirement program. The sale of S&R
reduced payroll by $.3 million in the current year.
Communications costs increased $.9 million (28%) primarily as a result
of the conversion to ADP which took place in January 1993. Occupancy and
equipment costs decreased $.4 million (8%) primarily due to lower equipment
costs and rent expense associated with the ADP conversion and the sale of S&R,
respectively. Professional fees increased $.4 million (34%) primarily due to
higher legal expenses and contract labor costs at Advest and the Bank.
Liquidity and Capital Resources
Three Months Ended December 31, 1993
There have been no material changes to the Company's liquidity or
capital resources since September 30, 1993.
- 11 -
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
The Company has been named as defendant in various legal actions. These
actions have arisen principally from the securities and investment banking
business. In the opinion of management, based on discussion with counsel, the
outcome of these matters will not result in a material effect on the financial
condition or future operating results of the Company.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 11 -- Computation of Net Income Per Share
Coopers & Lybrand report on limited review performed on
interim financial information contained herein (see page 13)
(b) Reports on Form 8-K
None
- 12 -
<PAGE>
LOGO
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors of
The Advest Group, Inc.:
We have reviewed the accompanying consolidated balance sheet of The Advest
Group, Inc. and subsidiaries as of December 31, 1993, and the related
consolidated statements of operations and cash flows for the three-month periods
ended December 31, 1993 and 1992, and changes in shareholders' equity for the
three-month period ended December 31, 1993. These financial statements are the
responsibility of the Company's management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in
accordance with generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the aforementioned consolidated financial statements for them to be
in conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet as of September 30, 1993, and the
related consolidated statements of operations, changes in shareholders' equity
and cash flows for the year then ended (not presented herein); and in our report
dated October 28, 1993, we expressed an unqualifed opinion on those consolidated
financial statements. In our opinion, the information set forth in the
accompanying consolidated balance sheet as of September 30, 1993, is fairly
stated, in all material respects, in relation to the consolidated balance sheet
from which it has been derived.
COOPERS & LYBRAND
(Coopers & Lybrand)
Hartford, Connecticut
January 20, 1994
- 13 -
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant duly caused this report to be signed on its behalf by the
thereunto duly authorized.
The Advest Group, Inc.
Registrant
Date February 1, 1994 Allen Weintraub
(Allen Weintraub),
President and Chief
Executive Officer
Date February 1, 1994 Martin M. Lilienthal
(Martin M. Lilienthal),
Senior Vice President and
Chief Financial Officer
- 14 -
<PAGE>
EXHIBIT INDEX
Exhibit Description Page
11 Computation of Net Income Per Share 16
- 15 -
<PAGE>
EXHIBIT 11
THE ADVEST GROUP, INC. AND SUBSIDIARIES
Computation of Net Income Per Common Share
(In thousands, except per share amounts)
For the quarters ended December 31,
Assuming
Primary Full Dilution
1993 1992* 1993 1992*
Income before extraordinary credit $2,185 $1,577 $2,185 $1,577
Interest on convertible debentures
outstanding during the period,
net of tax and other related
expenses -- -- 274 --
----- ------ ------ ------
Income before extraordinary
credit 2,185 1,577 2,459 1,577
Extraordinary credit -- 368 -- 368
----- ------ ------ ------
Net income applicable to
common stock and other
dilutive securities $2,185 $ 1,945 $2,459 $ 1,945
===== ====== ====== ======
Average number of common shares
outstanding during the period 9,010 9,352 9,010 9,352
Additional shares assuming:
Exercise of stock options 276 216 286 216
Conversion of debentures -- -- 1,576 --
----- ------ ------ ------
Average number of common and
common equivalent shares used
to calculate net income per
common share 9,286 9,568 10,872 9,568
===== ====== ====== ======
Income per common and common
equivalent share:
Income before extraordinary
credit $ .24 $ .16 $ .23 $ .16
Extraordinary credit -- .04 -- .04
----- ------ ------ ------
Net income $ .24 $ .20 $ .23 $ .20
===== ====== ====== ======
* For the quarter ending December 31, 1992, primary and fully diluted net
income per common share are equal.
- 16 -
