|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previous: MARSH & MCLENNAN COMPANIES INC, SC 13G, 1994-01-27 |
Next: MERRILL LYNCH & CO INC, 8-K, 1994-01-27 |
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 24, 1994
-------------------------
Merrill Lynch & Co., Inc.
-----------------------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
<TABLE>
<CAPTION>
<S> <C> <C>
Delaware 1-7182 13-2740599
- ------------------------------------------------------------------------------
(State or Other (Commission (I.R.S. Employer
Jurisdiction of File Number) Identification No.)
Incorporation)
</TABLE>
World Financial Center, North Tower, New York, New York 10281-1332
- ------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (212) 449-1000
--------------------------
- ------------------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report.)
<PAGE>
Item 5. Other Events
- ---------------------
Filed herewith are the Preliminary Unaudited Earnings Summaries, as
contained in a press release dated January 24, 1994, for Merrill Lynch & Co.,
Inc. ("ML & Co.") for the three months and year ended December 31, 1993, which
will be superseded by ML & Co.'s Annual Report on Form 10-K for the year ended
December 31, 1993. The results of operations set forth therein for the three
months and year ended December 31, 1993 are unaudited. All adjustments that
are, in the opinion of management, necessary for a fair presentation of the
results of operations for the periods presented have been included. These
adjustments consist of normal recurring accruals and, as previously reported, a
non-recurring pre-tax lease charge in the quarter ended March 26, 1993 of $103.0
million ($59.7 million after income taxes). The nature of ML & Co.'s business
is such that the results for any interim period are not necessarily indicative
of the results for a full year. ML & Co. has adopted, effective as of the first
quarter of 1993, Statement of Financial Accounting Standards ("SFAS") No. 112
(Employers' Accounting for Postemployment Benefits); first quarter 1993
financial statements will be restated to reflect the $35.4 million cumulative
effect adjustment, which is net of applicable income taxes. Effective as of
December 31, 1993, ML & Co. has also adopted SFAS No. 115 (Accounting for
Certain Investments in Debt and Equity Securities). As also previously
reported, 1992 financial statements have been restated to reflect the adoption
in 1992 of SFAS Nos. 106 (Employers' Accounting for Postretirement Benefits
Other than Pensions) and 109 (Accounting for Income Taxes).
On January 24, 1994, subsequent to its preliminary unaudited full-year
earnings announcement, ML & Co. became aware of a recent interpretation by the
accounting staff of the Securities and Exchange Commission ("SEC") which adds
certain requirements for SEC registrants adopting SFAS No. 115. This
interpretation will adjust certain asset and liability accounts. A corresponding
adjustment to stockholders' equity is required to reflect the impact of treating
certain unrealized holding gains and losses of available-for-sale securities as
if they had actually been realized. Prior to learning of the SEC accounting
staff's interpretation, ML & Co. announced in its full-year earnings release
that stockholders' equity increased $164 million, net of income taxes, as of
December 31, 1993, as a result of its adoption of SFAS No. 115. ML & Co.
anticipates that this interpretation will have the effect of reducing the $164
million increase in stockholders' equity that the company announced would result
from the adoption of SFAS No. 115. This interpretation has no effect on ML &
Co.'s reported earnings, and will have an insignificant effect on stockholders'
equity, which exceeded $5.5 billion at year end 1993.
During the three months and for the year ended December 31, 1993, ML & Co.
repurchased in the open market 9.1 million and 16.3 million shares,
respectively; these amounts reflect the two-for-one common stock split, effected
in the form of a 100% stock dividend, paid on November 24, 1993.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
- ---------------------------------------------------------------------------
(c) Exhibits.
--------
(99) Additional Exhibits
(i) Preliminary Unaudited Earnings Summaries
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
MERRILL LYNCH & CO., INC.
---------------------------
(Registrant)
By: /s/ Joseph T. Willett
-----------------------
Joseph T. Willett
Senior Vice President,
Chief Financial Officer
Date: January 26, 1994
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
MERRILL LYNCH & CO., INC.
EXHIBITS TO CURRENT REPORT ON
FORM 8-K DATED JANUARY 24, 1994
Commission File Number 1-7182
<PAGE>
EXHIBIT INDEX
-------------
<TABLE>
<CAPTION>
<C> <S> <C>
Exhibit No. Description Page
- ----------- ----------- ----
(99) Additional Exhibits
(i) Preliminary Unaudited Earnings Summaries 6
</TABLE>
<PAGE>
EXHIBIT 99
<TABLE>
<CAPTION>
MERRILL LYNCH & CO., INC.
--------------------------------
PRELIMINARY UNAUDITED EARNINGS SUMMARY
--------------------------------------
FOR THE THREE MONTHS ENDED
------------------------------------------------------------- PERCENT OF
DOLLAR
(IN THOUSANDS, PERCENT PERCENT CHANGE
EXCEPT PER SHARE AMOUNTS) DEC. 31, OF DEC. 25, OF INCREASE
1993 REVENUES(A) 1992 REVENUES(A) (DECREASE)
---------- ----------- ---------- ------------ ----------
(14 WEEKS) (13 WEEKS)
<S> <C> <C> <C> <C> <C>
REVENUES:
COMMISSIONS $ 805,675 18% $ 587,977 18% 37%
INTEREST AND DIVIDENDS 2,042,969 45 1,473,573 45 39
PRINCIPAL TRANSACTIONS 675,047 15 418,307 13 61
INVESTMENT BANKING 519,886 12 358,976 11 45
ASSET MANAGEMENT AND PORTFOLIO
SERVICE FEES 418,771 9 322,615 10 30
OTHER 63,788 1 102,270 3 (38)
--------- ---------- --------- ------------ ----------
TOTAL REVENUES 4,526,136 100 3,263,718 100 39
INTEREST EXPENSE 1,768,139 39 1,186,796 36 49
--------- ---------- ---------- ------------ ----------
NET REVENUES 2,757,997 61 2,076,922 64 33
--------- ---------- ---------- ------------ ----------
NON-INTEREST EXPENSES:
COMPENSATION AND BENEFITS 1,414,835 51 1,067,587 51 33
OCCUPANCY 116,302 4 118,375 6 (2)
COMMUNICATIONS AND EQUIPMENT RENTAL 99,757 4 97,231 5 3
DEPRECIATION AND AMORTIZATION 91,680 3 73,252 4 25
BROKERAGE, CLEARING AND EXCHANGE FEES 71,044 3 75,378 4 (6)
ADVERTISING AND MARKET DEVELOPMENT 105,678 4 70,703 3 49
PROFESSIONAL FEES 92,493 3 65,521 3 41
OTHER 168,928 6 147,770 7 14
--------- ---------- ---------- ----------- ----------
TOTAL NON-INTEREST EXPENSES 2,160,717 78 1,715,817 83 26
--------- ---------- ---------- ----------- ----------
EARNINGS BEFORE INCOME TAXES 597,280 22 361,105 17 65
INCOME TAX EXPENSE 250,041 9 139,664 6 79
--------- ---------- ---------- ----------- ----------
NET EARNINGS $ 347,239 13% $ 221,441 11% 57%
--------- ---------- ---------- ----------- ----------
PREFERRED STOCK DIVIDENDS $ 1,436 $ 1,365
--------- ---------
NET EARNINGS APPLICABLE TO COMMON
STOCKHOLDERS $ 345,803 $ 220,076
--------- ---------
EARNINGS PER COMMON SHARE(B):
PRIMARY $ 1.53 $ 0.99
--------- ----------
FULLY DILUTED $ 1.53 $ 0.98
--------- ----------
AVERAGE SHARES(B):
PRIMARY 225,567 223,384
--------- ----------
FULLY DILUTED 225,567 225,058
--------- ----------
</TABLE>
(A) - REVENUES AND INTEREST EXPENSE ARE PRESENTED AS A PERCENTAGE OF TOTAL
REVENUES. NON-INTEREST EXPENSES AND EARNINGS ARE PRESENTED AS A
PERCENTAGE OF NET REVENUES.
(B) - ALL SHARE AND PER SHARE AMOUNTS HAVE BEEN RESTATED FOR THE TWO-FOR-ONE
COMMON STOCK SPLIT, EFFECTED IN THE FORM OF A 100% STOCK DIVIDEND, PAID
ON NOVEMBER 24, 1993.
-6-
<PAGE>
EXHIBIT 99
<TABLE>
<CAPTION>
MERRILL LYNCH & CO., INC.
--------------------------
PRELIMINARY UNAUDITED EARNINGS SUMMARY
--------------------------------------
FOR THE YEAR ENDED
------------------------------------------------------ PERCENT OF
DOLLAR
(IN THOUSANDS, PERCENT PERCENT CHANGE
EXCEPT PER SHARE AMOUNTS) DEC. 31, OF DEC. 25, OF INCREASE
1993 REVENUES(A) 1992 REVENUES(A) (DECREASE)
----------- --------- --------- --------- ----------
(53 WEEKS) (52 WEEKS)
<S> <C> <C> <C> <C> <C>
REVENUES:
COMMISSIONS $ 2,894,228 17% $ 2,422,084 18% 19%
INTEREST AND DIVIDENDS 7,099,155 43 5,806,710 43 22
PRINCIPAL TRANSACTIONS 2,920,439 18 2,165,725 16 35
INVESTMENT BANKING 1,831,253 11 1,484,067 11 23
ASSET MANAGEMENT AND PORTFOLIO
SERVICE FEES 1,557,778 9 1,252,829 10 24
OTHER 285,324 2 281,253 2 1
----------- --------- ---------- --------- ----------
TOTAL REVENUES 16,588,177 100 13,412,668 100 24
INTEREST EXPENSE 6,029,947 36 4,835,267 36 25
----------- --------- ---------- --------- ----------
NET REVENUES 10,558,230 64 8,577,401 64 23
----------- --------- ---------- --------- ----------
NON-INTEREST EXPENSES:
COMPENSATION AND BENEFITS 5,255,258 50 4,364,454 51 20
OCCUPANCY 572,936 5 477,754 6 20
COMMUNICATIONS AND EQUIPMENT RENTAL 385,809 4 366,161 4 5
DEPRECIATION AND AMORTIZATION 308,499 3 281,228 3 10
BROKERAGE, CLEARING AND EXCHANGE FEES 280,712 2 277,166 3 1
ADVERTISING AND MARKET DEVELOPMENT 376,881 4 301,146 4 25
PROFESSIONAL FEES 290,324 3 256,887 3 13
OTHER 663,003 6 631,216 7 5
----------- --------- ---------- --------- ----------
TOTAL NON-INTEREST EXPENSES 8,133,422 77 6,956,012 81 17
----------- --------- --------- --------- ----------
EARNINGS BEFORE INCOME TAXES AND
CUMULATIVE EFFECT OF CHANGES IN
ACCOUNTING PRINCIPLES 2,424,808 23 1,621,389 19 50
INCOME TAX EXPENSE 1,030,449 10 668,984 8 54
---------- --------- --------- --------- ----------
EARNINGS BEFORE CUMULATIVE EFFECT
OF CHANGES IN ACCOUNTING PRINCIPLES 1,394,359 13 952,405 11 46
CUMULATIVE EFFECT OF CHANGES IN
ACCOUNTING PRINCIPLES, (NET OF
APPLICABLE INCOME TAXES) (B) (35,420) -- (58,580) (1) N/M
---------- --------- --------- --------- ----------
NET EARNINGS $1,358,939 13% $ 893,825 10% 52%
---------- --------- --------- --------- ----------
PREFERRED STOCK DIVIDENDS $ 5,381 $ 6,339
---------- ---------
NET EARNINGS APPLICABLE TO COMMON
STOCKHOLDERS $1,353,558 $ 887,486
---------- ---------
EARNINGS PER COMMON SHARE(C):
PRIMARY:
EARNINGS BEFORE CUMULATIVE EFFECT
OF CHANGES IN ACCOUNTING PRINCIPLES $ 6.14 $ 4.18
CUMULATIVE EFFECT OF CHANGES IN
ACCOUNTING PRINCIPLES (B) (0.16) (0.26)
----------- -----------
NET EARNINGS $ 5.98 $ 3.92
----------- -----------
FULLY DILUTED:
EARNINGS BEFORE CUMULATIVE EFFECT
OF CHANGES IN ACCOUNTING PRINCIPLES $ 6.11 $ 4.17
CUMULATIVE EFFECT OF CHANGES IN
ACCOUNTING PRINCIPLES(B) (0.16) (0.26)
----------- -----------
NET EARNINGS $ 5.95 $ 3.91
----------- -----------
AVERAGE SHARES(C):
PRIMARY 226,331 226,402
----------- -----------
FULLY DILUTED 227,480 226,854
----------- -----------
</TABLE>
(A) - REVENUES AND INTEREST EXPENSE ARE PRESENTED AS A PERCENTAGE OF TOTAL
REVENUES. NON-INTEREST EXPENSES, CUMULATIVE EFFECT OF CHANGES IN
ACCOUNTING PRINCIPLES AND EARNINGS ARE PRESENTED AS A PERCENTAGE OF
NET REVENUES.
(B) - 1993 RESULTS REFLECT THE ADOPTION OF STATEMENT OF FINANCIAL
ACCOUNTING STANDARDS NO. 112. 1992 RESULTS REFLECT THE ADOPTION OF
STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NOS. 106 AND 109.
(C) - ALL SHARE AND PER SHARE AMOUNTS HAVE BEEN RESTATED FOR THE
TWO-FOR-ONE COMMON STOCK SPLIT, EFFECTED IN THE FORM OF A 100% STOCK
DIVIDEND, PAID ON NOVEMBER 24, 1993.
-7-
|
|