<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended September 30, 1994
OR
[ ] 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 1-8529
LEGG MASON, INC.
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
MARYLAND 52-1200960
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
111 South Calvert Street - Baltimore, MD 21203-1476
(Address of principal executive offices) (Zip code)
</TABLE>
(410) 539-0000
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Sections 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.
12,184,267 shares of Common Stock as of the close of business on
November 1, 1994.
<PAGE> 2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
<CAPTION>
LEGG MASON, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(in thousands of dollars)
September 30,1994 March 31,1994
(Unaudited)
<S> <C> <C>
ASSETS:
Cash and cash equivalents.............. $ 88,326 $ 40,208
Cash and securities segregated for
regulatory purposes................... 61,886 127,003
Resale agreements...................... 96,875 97,950
Receivable from brokers and dealers.... 886 5,074
Receivable from customers.............. 284,924 250,237
Securities owned, at market value...... 65,724 57,617
Securities borrowed.................... 57,193 96,030
Investment securities.................. 26,353 29,754
Property and equipment................. 22,112 15,679
Intangible assets...................... 23,012 23,727
Other.................................. 74,029 68,209
-------- --------
$801,320 $811,488
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Liabilities:
Payable to brokers and dealers......... $ 10,681 $ 10,629
Payable to customers................... 278,148 298,943
Short-term borrowings.................. 74,561 15,546
Securities loaned...................... 54,423 108,065
Securities sold, but not yet purchased,
at market value....................... 11,083 8,513
Accrued compensation................... 15,893 15,651
Other.................................. 34,055 39,968
-------- --------
478,844 497,315
-------- --------
Subordinated liabilities................ 102,487 102,487
-------- --------
Stockholders' equity:
Common stock........................... 1,217 1,173
Additional paid-in capital............. 78,553 76,249
Retained earnings...................... 139,814 134,264
Net unrealized appreciation on
investment securities................. 405 -
-------- --------
219,989 211,686
-------- --------
$801,320 $811,488
======== ========
</TABLE>
See notes to condensed consolidated financial statements.
<PAGE> 3
<TABLE>
<CAPTION>
LEGG MASON, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands of dollars except per share amounts)
(Unaudited)
Three Months Six Months
Ended September 30, Ended September 30,
1994 1993 1994 1993
<S> <C> <C> <C> <C>
Revenues:
Commissions......................... $29,364 $ 34,674 $ 58,555 $ 68,515
Principal transactions.............. 13,271 14,956 27,030 27,777
Investment advisory and related fees 20,953 15,829 40,454 30,518
Investment banking.................. 8,368 26,759 21,297 44,171
Interest............................ 9,204 7,454 17,225 14,319
Other............................... 7,292 7,095 13,726 12,815
------- -------- -------- --------
88,452 106,767 178,287 198,115
------- -------- -------- --------
Expenses:
Compensation and benefits........... 51,905 59,651 105,077 112,629
Occupancy and equipment rental...... 7,193 6,649 14,336 13,014
Communications...................... 6,167 5,724 12,146 11,192
Floor brokerage and clearing fees... 1,173 1,361 2,447 3,006
Interest............................ 3,940 4,044 7,553 7,272
Other................................ 12,722 10,596 23,037 19,057
------- -------- -------- --------
83,100 88,025 164,596 166,170
------- -------- -------- --------
Earnings Before Income Taxes......... 5,352 18,742 13,691 31,945
Income taxes........................ 2,251 7,382 5,587 12,453
------- -------- -------- --------
Net Earnings......................... $ 3,101 $ 11,360 $ 8,104 $ 19,492
======= ======== ======== ========
Earnings per common share:
Primary............................. $ .25 $ .94 $ .65 $ 1.62
Fully diluted....................... $ .23 $ .74 $ .57 $ 1.28
Average number of common shares
outstanding:
Primary............................. 12,518 12,106 12,451 12,037
Fully diluted....................... 16,739 16,353 16,672 16,307
Dividends declared per common share $ .11 $ .10 $ .21 $ .18
Book value per common share..........$ 18.08 $ 16.85 $ 18.08 $ 16.85
</TABLE>
See notes to condensed consolidated financial statements.
<PAGE> 4
<TABLE>
<CAPTION>
LEGG MASON, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of dollars)
(Unaudited)
Six Months
Ended September 30
1994 1993
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings..................................... $ 8,104 $ 19,492
Noncash items included in earnings:
Depreciation and amortization................. 4,590 4,098
Loss on sale of investment securities.......... 124 -
Tax benefit of pooled entity..................... 147 183
------- --------
12,965 23,773
(Increase) decrease in assets excluding
acquisition:
Cash and securities segregated for regulatory
purposes..................................... 65,117 (11,878)
Receivable from brokers and dealers............ 4,188 (5,611)
Receivable from customers...................... (34,016) (36,113)
Securities owned............................... ( 8,107) 19,007
Securities borrowed............................ 38,837 (87,054)
Other.......................................... (4,622) (15,842)
Increase(decrease) in liabilities excluding
acquisition:
Payable to brokers and dealers................. 52 6,474
Payable to customers........................... (20,795) 8,181
Securities loaned.............................. (53,642) 107,516
Securities sold, but not yet purchased......... 2,570 622
Accrued compensation........................... 242 8,153
Other.......................................... (7,695) 248
------- --------
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES. (4,906) 17,476
------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for:
Property and equipment......................... (8,510) (3,627)
Intangible assets.............................. (221) (931)
Net decrease in resale agreements............... 1,075 (6,335)
Purchases of investment securities.............. (28,863) (39,744)
Proceeds from sales of investment securities.... 31,874 -
------- ---------
CASH (USED FOR) INVESTING ACTIVITIES............. (4,645) (50,637)
------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in short-term borrowings........... 59,015 24,027
Net decrease in repurchase agreements........... - (8,905)
Issuance of subordinated liabilities............ - 68,000
Issuance of common stock........................ 1,182 898
Repurchase of common stock...................... (140) -
Dividends paid.................................. (2,388) (1,827)
------- --------
CASH PROVIDED BY FINANCING ACTIVITIES............ 57,669 82,193
------- --------
NET INCREASE IN CASH AND CASH EQUIVALENTS........ 48,118 49,032
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD. 40,208 24,998
------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD....... $88,326 $ 74,030
======= ========
</TABLE>
See notes to condensed consolidated financial statements.
<PAGE> 5
LEGG MASON, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(in thousands of dollars)
September 30, 1994
(Unaudited)
1. Interim Basis of Reporting:
The accompanying unaudited condensed consolidated financial
statements have been prepared in accordance with the instructions
for Form 10-Q and, therefore, do not include all information and
notes required by generally accepted accounting principles for
complete financial statements. The interim financial statements
have been prepared utilizing the interim basis of reporting and, as
such, reflect all adjustments (consisting only of normal recurring
adjustments) which are, in the opinion of management, necessary for
a fair presentation of the results for the periods presented. The
nature of the Company's business is such that the results of any
interim period are not necessarily indicative of results for a full
year.
2. Net Capital Requirements:
The Company's broker-dealer subsidiaries are subject to the
Securities and Exchange Commission's Uniform Net Capital Rule. The
Rule provides that equity capital may not be withdrawn or cash
dividends paid if resulting net capital would fall below specified
levels. As of September 30, 1994, the broker-dealer subsidiaries
had aggregate net capital, as defined, of $92,048 which exceeded
required net capital by $85,420.
3. Legal Proceedings:
The Company and its subsidiaries have been named as defendants
in various legal actions arising primarily from securities and
investment banking activities, including certain class actions
which primarily allege violations of securities laws and seek
unspecified damages which could be substantial. While the ultimate
resolution of these actions cannot be currently determined, in the
opinion of management, after consultation with legal counsel, the
actions will be resolved with no material adverse effect on the
consolidated financial statements of the Company.
4. Investment Securities:
Effective April 1, 1994, the Company prospectively adopted the
provisions of Statement of Financial Accounting Standards ("SFAS")
No. 115, "Accounting for Certain Investments in Debt and Equity
Securities." Accordingly, investment securities held as available-
for-sale are included in the statement of financial condition at
market value and related unrealized gains, net of tax ($405 at
September 30, 1994) are recorded in stockholders' equity. The
adoption of SFAS No. 115 had no impact on the Company's results of
operations.
<PAGE> 6
5. Litigation Settlement Charge:
Other expense for the quarter and six months ended September
30, 1994, includes a charge of $2,000 ($950 after tax) related to
the proposed settlement of class action litigation arising from
taxable municipal bond offerings underwritten in 1986 by one of the
Company's subsidiaries. See "Part II. Other Information--Item 1.
Legal Proceedings" for further discussion related to this matter.
6. Supplemental Cash Flow Information:
Interest payments were $7,397 in 1994 and $5,649 in 1993.
Income tax payments were $7,001 in 1994 and $14,093 in 1993.
On April 25, 1994, in exchange for common stock, the Company
acquired GSH & Co., Inc.'s net assets of $1,306.
7. Subsequent Event:
On October 12, 1994, the Company entered into an agreement to
acquire the assets of Batterymarch Financial Management
("Batterymarch"), an investment advisory firm that manages equity
portfolios for institutional clients. The acquisition, which is
expected to be completed by December 31, 1994, subject to
satisfaction of various closing conditions, provides for a purchase
price to be paid in two installments, the first of which will be a
cash payment at closing of up to $60 million, and the second of
which will be a contingent performance payment in early 1998 in an
amount up to $120 million less the amount of the first installment.
If the amount of the second installment exceeds $40 million, the
Company will have the right to pay all or any portion of the excess
in the form of shares of the Company's common stock.
<PAGE> 7
Item 2. Management's Discussion and Analysis of
Results of Operations and Financial Condition
RESULTS OF OPERATIONS
During the Company's second quarter and six months ended September
30, 1994, the securities industry was adversely affected by rising
interest rates and uncertain equity markets as compared to the
favorable market conditions experienced during the corresponding
periods of the prior year.
Quarter Ended September 30, 1994 Compared to Quarter Ended
September 30, 1993
In the second fiscal quarter ended September 30, 1994, the
Company's net earnings declined 73% to $3.1 million from the record
$11.4 million achieved in the prior year's quarter. Revenues fell
17% to $88.5 million from $106.8 million. Primary earnings per
share were $.25, down 73% from $.94. Fully diluted earnings per
share declined 69% to $.23 from $.74.
Commission revenues fell 15% to $29.4 million because of reduced
sales of listed securities, non-affiliated mutual funds and over-
the-counter securities.
Revenues from principal transactions fell 11% to $13.3 million,
mainly because of lower sales of U.S. government, agency and
mortgage-backed securities and a decline in trading profits on firm
proprietary positions. These declines were offset in part by
increased sales of over-the-counter and municipal securities.
Investment advisory and related fees increased for the 18th
consecutive quarter and were 32% higher than in the corresponding
quarter of the prior year because of growth in assets under
management in Company-sponsored mutual funds, the Company's fixed-
income investment advisory subsidiary and fee-based brokerage
accounts. Additionally, the current quarter includes fees earned
by Gray, Seifert & Co., Inc., an investment advisory firm acquired
in April 1994. At quarter end, Company subsidiaries served as
investment advisors to individual and institutional accounts and
mutual funds with assets of $17.8 billion, up from $15.4 billion at
September 30, 1993.
Investment banking revenues were $8.4 million, 69% lower than in
the corresponding quarter of the prior year, principally reflecting
a substantial decline in corporate underwritings following sharp
increases in interest rates. Included in the September 1993 record
quarter were significant revenues from sizable co-managed offerings
of real estate investment trust securities.
<PAGE> 8
Other revenues of $7.3 million were substantially unchanged from
$7.1 million in the prior year's quarter.
Compensation and benefits declined 13% to $51.9 million, as lower
commission and profitability-based compensation was partially
offset by personnel additions in new and existing product areas.
Occupancy and equipment rental increased 8% to $7.2 million because
of the addition of four retail brokerage offices and the
acquisition of Gray, Seifert & Co.
Communications expense increased 8% to $6.2 million because of
increased quotation service expense and printing and supplies
costs.
Floor brokerage and clearing fees declined 14% to $1.2 million,
reflecting reduced transaction volume and lower execution charges.
Other expense increased 20% to $12.7 million, principally because
of a charge for the proposed settlement of class action litigation
and increased marketing and promotional expenses.
Interest revenue increased 23% to $9.2 million, reflecting higher
interest rates charged on larger customer margin account balances.
Interest expense fell 3% to $3.9 million because of a decline in
financing costs on reduced holdings of fixed-income securities,
partially offset by higher interest rates paid on customer credit
balances.
Income taxes declined 70% to $2.3 million as a result of a decrease
in pre-tax earnings. The effective tax rate increased to 42.1%
from 39.4% as a result of currently unusable state net operating
losses.
<PAGE> 9
Six Months Ended September 30, 1994 Compared to Six Months Ended
September 30, 1993
The Company's net earnings in the six months ended September 30,
1994 declined 58% to $8.1 million from $19.5 million in the prior
year's corresponding period. Revenues fell 10% to $178.3 million
from $198.1 million. Primary earnings per share were $.65, down
60% from $1.62. Fully diluted earnings per share declined 55% to
$.57 from $1.28.
Commission revenues fell 15% to $58.6 million because of declines
in sales of listed securities, non-affiliated mutual funds and
over-the-counter securities.
Revenues from principal transactions fell 3% to $27.0 million
because of lower sales of U.S. government, agency and mortgage-
backed securities and losses on fixed-income proprietary positions
attributable to rising interest rates. These declines were
substantially offset by increased sales of over-the-counter equity
securities and municipal bonds.
Investment advisory and related fees increased 33% to $40.5
million, reflecting growth in assets under management in Company-
sponsored mutual funds, fee-based brokerage accounts and the
Company's fixed-income investment advisory subsidiary.
Additionally, the current period includes fees earned by Gray,
Seifert & Co., Inc.
Investment banking revenues fell 52% to $21.3 million from record
levels achieved in the corresponding period of the prior year as
both corporate and municipal underwriting declined because of
rising interest rates.
Other revenues rose 7% to $13.7 million, primarily because of
increased mortgage servicing, loan origination and repurchase
agreement placement fees.
Compensation and benefits declined 7% to $105.1 million, as lower
commission and profitability-based compensation was partially
offset by personnel additions in new and existing product areas.
Occupancy and equipment rental increased 10% to $14.3 million
because of higher depreciation expense related to a new securities
quotation system, increased data processing costs and inclusion of
the expenses of Gray, Seifert & Co.
Communications expense increased 9% to $12.1 million because of
increased printing, supplies, telephone and quote services
expenses.
<PAGE> 10
Floor brokerage and clearing fees fell 19% to $2.4 million,
reflecting reduced transaction volume and lower listed securities
execution charges.
Other expense increased 21% to $23.0 million, principally because
of a charge for the proposed settlement of class action litigation
and increased marketing and promotional expenses.
Interest revenue increased 20% to $17.2 million because of higher
interest rates earned on larger customer margin account balances
and higher levels of conduit stock loan activity, offset in part by
lower earnings on proprietary positions in fixed-income securities.
Interest expense increased 4% to $7.6 million because of higher
interest rates paid on customer credit balances, increased levels
of stock loan conduit activity and the issuance of $68.0 million of
convertible subordinated debentures on April 28, 1993. These
increases were substantially offset by lower financing costs on
reduced holdings of proprietary, fixed-income securities.
Income taxes declined 55% to $5.6 million, principally because of
a decrease in pre-tax earnings. The effective tax rate increased
to 40.8% from 40.0% as a result of currently unusable state net
operating losses.
Liquidity and Capital Resources
There has been no material change in the Company's financial
position since March 31, 1994. A substantial portion of the
Company's assets is liquid, consisting mainly of cash and assets
readily convertible into cash. These assets are financed primarily
by free credit balances, equity capital, bank lines of credit,
subordinated borrowings and other payables.
During the six months ended September 30, 1994, cash and cash
equivalents increased $48.1 million. Cash flows from financing
activities generated $57.7 million, attributable to higher short-
term borrowings by the Company's mortgage banking operations. The
Company used an additional $4.9 million of cash in operating
activities, primarily because of increases in net customer
receivable balances and securities loans, substantially offset by
reduced regulatory deposits. Cash flows from investing activities
used $4.6 million, principally related to purchases of property and
equipment.
The Company expects to utilize cash of up to $60.0 million in the
third fiscal quarter of 1995 to finance the first installment in
its acquisition of Batterymarch Financial Management. See Note 7
of Notes to Condensed Consolidated Financial Statements regarding
the anticipated payment.
<PAGE> 11
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Taxable Municipal Bond Litigation.
Reference is made to the discussion under the caption "Taxable
Municipal Bond Litigation" in Item 3 of Registrant's 10-K Report
for the fiscal year ended March 31, 1994. During the quarter ended
September 30, 1994, lead counsel in the class actions reached a
preliminary understanding with respect to the principal terms of a
settlement of the class actions. The understanding, which is
subject to the completion of a definitive settlement agreement and
approval of the agreement by the MDL Court, would require Howard,
Weil, Labouisse, Friedrichs Incorporated, as one of the underwriter
defendants, to contribute approximately $3.6 million toward a total
settlement amount of $25.6 million. The settlement agreement , as
currently proposed, would permit the settling defendants to
terminate the settlement if plaintiffs, having more than a
specified aggregate dollar amount of claims elect to "opt out" of
participation in the settlement. The amount of opt outs that will
allow this termination option to be exercised is to be filed under
seal with the MDL Court.
Item 4. Submission of matters to a Vote of Security Holders.
Registrant's annual meeting of stockholders was held July
28, 1994. In the election of directors, the five director
nominees were elected with the following votes:
<TABLE>
<CAPTION>
Votes
Cast For Withhold
<S> <C> <C> <C>
Charles A. Bacigalupo 10,582,151 10,582,151 216,212
Harry M. Ford, Jr. 10,578,652 10,578,652 219,711
James E. Ukrop 10,582,151 10,582,151 216,212
John E. Koerner, III 10,582,151 10,582,151 216,212
Peter F. O'Malley 10,582,151 10,582,151 216,212
</TABLE>
The stockholders voted in favor of the ratification of the
appointment of Coopers & Lybrand as independent auditors of the
Registrant as follows:
<TABLE>
<CAPTION>
Votes
Cast For Against Abstain
<S> <C> <C> <C> <C>
Ratification of
Appointment of
Auditors 10,780,529 10,775,099 5,430 17,833
</TABLE>
<PAGE> 12
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
(11) Statements re: computation of per share
earnings
(27) Financial Data Schedules
(b) No reports on Form 8-K were filed during the
quarter ended September 30, 1994.
<PAGE> 13
SIGNATURES
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 thereunto duly authorized.
LEGG MASON, INC.
(Registrant)
DATE November 14, 1994 /s/ John F. Curley, Jr.
John F. Curley, Jr.
Vice Chairman of the Board
DATE November 14, 1994 /s/ F. Barry Bilson
F. Barry Bilson
Vice President - Finance
<PAGE> 14
INDEX TO EXHIBITS
PAGE
11. Statement re: computation of per share earnings. 15-16
27. Statement re: Financial Data Schedules. 17
<PAGE> 1
EXHIBIT 11
STATEMENT RE: COMPUTATION OF EARNINGS PER SHARE
(in thousands except per share amounts)
<TABLE>
<CAPTION>
For The Three Months Ended September 30,
1994 1993
Fully Fully
Primary Diluted Primary Diluted
<S> <C> <C> <C> <C>
Weighted average shares
outstanding:
Common stock 12,161 12,161 11,634 11,634
Shares available under
options 357 357 472 498
Issuable upon conversion
of debentures - 4,221 - 4,221
------- ------- ------- -------
12,518 16,739 12,106 16,353
======= ======= ======= =======
Weighted average common
and common equivalent
shares outstanding 12,518 16,739 12,106 16,353
======= ======= ======= =======
Net earnings $ 3,101 $ 3,101 $11,360 $11,360
Interest expense, net,
on debentures - 728 - 736
------- ------- ------- -------
Net earnings applicable
to common stock $ 3,101 $ 3,829 $11,360 $12,096
======= ======= ======= =======
Per share $ .25 $ .23 $ .94 $ .74
======= ======= ======= =======
</TABLE>
<PAGE> 2
EXHIBIT 11
STATEMENT RE: COMPUTATION OF EARNINGS PER SHARE
(in thousands except per share amounts)
<TABLE>
<CAPTION>
For The Six Months Ended September 30,
1994 1993
Fully Fully
Primary Diluted Primary Diluted
<S> <C> <C> <C> <C>
Weighted average shares
outstanding:
Common stock 12,099 12,099 11,580 11,580
Shares available under
options 352 352 457 506
Issuable upon conversion
of debentures - 4,221 - 4,221
------- ------- ------- -------
12,451 16,672 12,037 16,307
======= ======= ======= =======
Weighted average common
and common equivalent
shares outstanding 12,451 16,672 12,037 16,307
======= ======= ======= =======
Net earnings $ 8,104 $ 8,104 $19,492 $19,492
Interest expense, net,
on debentures - 1,455 - 1,340
------- ------- ------- -------
Net earnings applicable
to common stock $ 8,104 $ 9,559 $19,492 $20,832
======= ======= ======= =======
Per share $ .65 $ .57 $ 1.62 $ 1.28
======= ======= ======= =======
</TABLE>
<TABLE> <S> <C>
<ARTICLE> BD
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION FROM CONDENSED
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION AND CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000704051
<NAME> LEGG MASON, INC.
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1995
<PERIOD-START> APR-01-1994
<PERIOD-END> SEP-30-1994
<EXCHANGE-RATE> 1
<CASH> $88,326,000
<RECEIVABLES> $285,810,000
<SECURITIES-RESALE> $96,875,000
<SECURITIES-BORROWED> $57,193,000
<INSTRUMENTS-OWNED> $65,724,000
<PP&E> $22,112,000
<TOTAL-ASSETS> $801,320,000
<SHORT-TERM> $74,561,000
<PAYABLES> $288,829,000
<REPOS-SOLD> $0
<SECURITIES-LOANED> $54,423,000
<INSTRUMENTS-SOLD> $11,083,000
<LONG-TERM> $102,487,000
<COMMON> $1,217,000
$0
$0
<OTHER-SE> $218,772,000
<TOTAL-LIABILITY-AND-EQUITY> $801,320,000
<TRADING-REVENUE> $27,030,000
<INTEREST-DIVIDENDS> $17,225,000
<COMMISSIONS> $58,555,000
<INVESTMENT-BANKING-REVENUES> $21,297,000
<FEE-REVENUE> $40,454,000
<INTEREST-EXPENSE> $7,553,000
<COMPENSATION> $105,077,000
<INCOME-PRETAX> $13,691,000
<INCOME-PRE-EXTRAORDINARY> $13,691,000
<EXTRAORDINARY> $0
<CHANGES> $0
<NET-INCOME> $8,104,000
<EPS-PRIMARY> $.65
<EPS-DILUTED> $.57
</TABLE>
