<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 quarterly period ended June 30, 1995
------------------------------------------------
- ---- 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 1-8526
--------------------
McDonald & Company Investments, Inc.
- ------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 34-1391950
- ------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
McDonald Investment Center, 800 Superior Avenue, Cleveland, Ohio 44114-2603
- ------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area
code (216) 443-2300
--------------------------------------------------------------------------
Not Applicable
- ------------------------------------------------------------------------------
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:
9,012,572 shares of Common Stock, par value $1.00 per share, were outstanding
on July 27, 1995.
(1)
<PAGE> 2
McDONALD & COMPANY INVESTMENTS, INC.
INDEX
<TABLE>
<CAPTION>
Page
----
PART I - FINANCIAL INFORMATION
- ------------------------------
<S> <C>
Item 1. Financial Statements -
Consolidated statements of financial condition (unaudited)-
June 30, 1995 and March 31, 1995 ...................... 3
Consolidated statements of income (unaudited)-
Fiscal three months ended June 30, 1995
and June 24, 1994 ..................................... 4
Consolidated statements of cash flows (unaudited)-
Fiscal three months ended June 30, 1995 and
June 24, 1994 ......................................... 5
Notes to condensed consolidated financial statements (unaudited)-
June 30, 1995 ......................................... 6
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations ..................................... 7
PART II - OTHER INFORMATION
- ---------------------------
Item 5. Other Information .................................... 10
Item 6. Exhibits and Reports on Form 8-K ..................... 10
SIGNATURES ............................................................ 11
EXHIBIT INDEX ......................................................... 12
</TABLE>
(2)
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
McDONALD & COMPANY INVESTMENTS, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
<TABLE>
<CAPTION>
June 30, March 31,
1995 1995
-------- ---------
(In thousands)
<S> <C> <C>
ASSETS
Cash and cash equivalents $ 5,329 $ 2,850
Receivable from customers 111,118 136,180
Receivable from brokers and dealers 19,073 18,281
Securities purchased under agreements
to resell 68,177 88,869
Securities owned 101,989 95,184
Other receivables 17,505 16,368
Furniture, equipment and leasehold
improvements, at cost, less accumulated
depreciation and amortization 11,104 11,286
Other assets 32,916 32,314
-------- --------
$367,211 $401,332
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Short-term borrowings $ 70,205 $ 64,924
Payable to customers 33,129 35,380
Payable to brokers and dealers 7,692 20,786
Securities sold under agreements to
repurchase 29,058 52,029
Securities sold but not yet purchased 45,132 47,701
Accrued compensation 14,728 20,282
Accounts payable, accrued expenses
and other liabilities 23,517 20,868
Long-term borrowings 25,000 25,000
-------- --------
$248,461 $286,970
======== ========
Commitments and Contingencies
Stockholders' equity
Preferred Stock, without par value;
200,000 shares authorized;
none issued
Common Stock, par value $1.00 per
share; 15,000,000 shares
authorized; (11,541,133 and 11,434,788
shares issued, respectively) 11,541 11,435
Additional paid-in capital 49,958 48,342
Retained earnings 80,082 77,034
Less treasury stock, at cost
(2,503,761 and 2,481,535 shares, respectively) (22,831) (22,449)
-------- --------
118,750 114,362
-------- --------
$367,211 $401,332
======== ========
</TABLE>
See Notes to consolidated financial statements (unaudited).
(3)
<PAGE> 4
McDONALD & COMPANY INVESTMENTS, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
<CAPTION>
Fiscal Three Months Ended
-------------------------------
June 30, 1995 June 24, 1994
(13 weeks) (13 weeks)
---------- ----------
(In thousands, except for per share amounts)
<S> <C> <C>
Revenues:
Underwriting and investment banking $10,270 $ 9,306
Principal transactions 14,922 10,872
Commissions 14,774 12,508
Investment management fees 4,549 4,000
Interest and dividends 4,035 3,128
Other 1,438 1,001
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$49,988 $40,815
------- -------
Expenses:
Employee compensation and benefits $29,446 $24,552
Interest 1,828 1,515
Communications 3,260 3,062
Occupancy and equipment 3,325 3,046
Promotion and development 1,894 1,672
Floor brokerage and clearance 646 648
Taxes, other than income taxes 1,741 1,623
Other operating expenses 1,884 1,505
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$44,024 $37,623
------- -------
Income before income taxes $ 5,964 $ 3,192
Provision for income taxes 2,200 1,250
------- -------
Net income $ 3,764 $ 1,942
======= =======
Net income per share $ .41 $ .20
======= =======
Dividends per share $ .08 $ .075
======= =======
Average number of shares and share equivalents outstanding 9,114 9,461
======= =======
</TABLE>
See Notes to consolidated financial statements (unaudited).
(4)
<PAGE> 5
McDONALD & COMPANY INVESTMENTS, INC.
------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
-------------------------------------------------
<TABLE>
<CAPTION>
Fiscal Three Months Ended
-------------------------
June 30, 1995 June 24, 1994
------------- -------------
(In thousands)
<S> <C> <C>
OPERATING ACTIVITIES:
- --------------------
Net Income $ 3,764 $ 1,942
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 1,206 1,098
Deferred compensation 122 255
Deferred income taxes 213 (177)
Decrease in receivable from customers 25,062 16,978
(Increase) decrease in receivable from brokers and dealers (792) 3,901
(Increase) decrease in securities owned (6,805) 64,297
(Increase) decrease in other receivables (1,137) 3,306
Decrease in payable to customers (2,251) (9,417)
Decrease in payable to brokers and dealers (13,094) (15,642)
(Decrease) increase in securities sold but not yet
purchased (2,569) 9,853
Decrease in accrued compensation (3,825) (10,946)
Increase in accounts payable, accrued
expenses and other 2,527 2,569
--------- ----------
Net cash provided by operating activities $ 2,421 $ 68,017
========= ==========
INVESTING ACTIVITIES:
- --------------------
Purchase of furniture, equipment and leaseholds $ (875) $ (379)
(Increase) decrease in other assets (964) 522
--------- ----------
Net cash (used for) provided by investing activities $ (1,839) $ 143
========= ==========
FINANCING ACTIVITIES:
- --------------------
Decrease (increase) in securities purchased under
agreement to resell $ 20,692 $ (235,117)
Increase (decrease) in short-term borrowings 5,281 (26,838)
(Decrease) increase in securities sold under
agreements to repurchase (22,971) 202,578
Cash dividends (716) (689)
Purchase of treasury stock (444) (1,418)
Proceeds from issuance of treasury stock 55 285
--------- ----------
Net cash provided by (used for) financing activities $ 1,897 $ (61,199)
--------- ----------
Increase in cash and cash equivalents 2,479 6,961
Cash and cash equivalents at beginning of period 2,850 6,765
--------- ----------
Cash and cash equivalents at end of period $ 5,329 $ 13,726
========= ==========
</TABLE>
See notes to consolidated financial statements (unaudited).
(5)
<PAGE> 6
McDONALD & COMPANY INVESTMENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
June 30, 1995
NOTE A - BASIS OF PRESENTATION
- ------ ---------------------
The consolidated financial statements include the accounts of McDonald &
Company Investments, Inc. and its subsidiaries, collectively referred to as the
"Company". All significant intercompany accounts and transactions are
eliminated in consolidation.
The accompanying unaudited consolidated financial statements do not include all
of the information and notes required by generally accepted accounting
principles for complete financial statements. In the opinion of management,
all adjustments, consisting only of normal and recurring adjustments,
considered necessary for a fair presentation of the financial condition and
results of operations for the periods presented have been included.
NOTE B - LONG-TERM BORROWINGS
- ------ --------------------
McDonald & Company Securities, Inc., ("McDonald Securities") has outstanding
$25,000,000 in aggregate principal amount of 8.24% Subordinated Notes due
January 15, 2002. McDonald Securities is required to prepay principal amounts
of $5,000,000 on January 15 in each year beginning in 1998. The notes are
subordinated in right of payment to all senior indebtedness of McDonald
Securities. The principal amount of the notes has been approved by the New
York Stock Exchange, Inc. for inclusion in the regulatory capital of McDonald
Securities.
NOTE C - NET INCOME PER SHARE
- ------ --------------------
Primary net income per share is based on the average number of share and share
equivalents outstanding during the periods. Share equivalents represent the
effect of shares issuable under the Company's stock option plans.
NOTE D - CONTINGENCIES
- ------ -------------
The Company is a defendant in various lawsuits incidental to its securities
business. In view of the number and diversity of claims against the Company
and the inherent difficulty of predicting the outcome of litigation and other
claims, the Company cannot state with certainty what the eventual outcome of
pending litigation or other claims will be. The Company provides for costs
relating to these matters when a loss is probable and the amount is reasonably
estimable. The effect of the outcome of these matters on the Company's future
results of operations cannot be predicted because any such effect depends on
future results of operations and the amount and timing of the resolution of
such matters. While it is not possible to predict with certainty, management
believes that the ultimate resolution of such matters will not have a material
adverse effect on the consolidated financial position or liquidity of the
Company.
(6)
<PAGE> 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
BUSINESS ENVIRONMENT
- --------------------
McDonald & Company Investments, Inc. (the "Company") operates a full-service
regional investment banking, investment advisory and brokerage business through
its principal subsidiary, McDonald & Company Securities, Inc. ("McDonald
Securities"). The Company is involved in the origination, underwriting,
distribution, trading and brokerage of fixed income and equity securities, and
provides investment advisory services.
The profitability of the Company is sensitive to many factors, including the
level of securities trading volume and the volatility and general level of
market prices. Many of its activities have high operating costs which do not
decrease with reduced levels of activity. Sustained periods of reduced volume,
or loss of clients, could have adverse effects upon profitability.
The Company faces increasing competition from commercial banks and thrift
institutions as these institutions offer certain investment banking and
corporate and individual financial services traditionally provided only by
securities firms. The Company anticipates regulation of the securities
industry to increase and that compliance with regulations may become more
difficult. At present, the Company is unable to predict the extent of changes
that may be enacted, or the effect on the Company's business.
The Company has formulated a comprehensive strategic plan which is periodically
reviewed and revised as business conditions dictate. The plan emphasizes the
Company's historical roots as a regional brokerage and investment banking firm.
The Company has focused on the Ohio, Michigan and Indiana markets by increasing
the number of sales representatives covering individual investors, as well as
increasing investment banking activities in this region. The Company's
institutional equity and fixed income sales departments cover accounts
throughout the United States and internationally.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The majority of the Company's assets are highly liquid and short-term in
nature. Cash and liquid assets, principally receivables from customers,
brokers and dealers, securities purchased under agreements to resell, and
securities owned approximate 88% of the Company's assets at June 30, 1995.
These assets are financed by a number of sources, including the Company's
capital and short-term borrowings.
At June 30, 1995, McDonald Securities had outstanding $25,000,000 in aggregate
principal amount of 8.24% Subordinated Notes due January 15, 2002. McDonald
Securities is required to pay principal amounts of $5,000,000 on January 15 in
each year beginning in 1998. The notes are subordinated in right of payment to
all senior indebtedness and general creditors of McDonald Securities. In
addition to providing long-term financing, the notes have been approved by the
New York Stock Exchange, Inc. for inclusion in McDonald Securities' regulatory
net capital.
Changes in the levels of securities owned and in customer and broker
receivables directly affect the Company's financing arrangements. The Company
has available lines of credit of $290,000,000, of which $224,600,000 was unused
at June 30, 1995. Management believes that funds from operations, available
lines of credit, and long-term borrowings provide sufficient resources to meet
present and anticipated financial needs.
(7)
<PAGE> 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
---------------------------------------------------------------
RESULTS OF OPERATIONS (continued)
---------------------------------
LIQUIDITY AND CAPITAL RESOURCES (cont.)
- ---------------------------------------
Certain minimum amounts of capital must be maintained by the Company's
principal broker/dealer subsidiary, McDonald Securities, to satisfy the
regulatory requirements of the Securities and Exchange Commission and the New
York Stock Exchange. The regulatory requirements represent Uniform Net Capital
Rules designed to measure the general financial integrity and liquidity of
registered broker/dealers and provide minimum acceptable net capital levels to
meet continuing commitments to customers. Net capital, as defined, changes
from day to day. At June 30, 1995, McDonald Securities was in compliance with
the Uniform Net Capital Rules and had net capital of $68,485,000, which was
$66,164,000 in excess of the minimum required.
FISCAL THREE MONTH PERIOD ENDED JUNE 30, 1995 AND JUNE 24, 1994
- ---------------------------------------------------------------
Total revenues for the fiscal quarter ended June 30, 1995 were $49,988,000, an
increase of $9,173,000, or 23%, from revenues of $40,815,000 for the fiscal
quarter ended June 24, 1994.
Net income for the fiscal quarter ended June 30, 1995 was $3,764,000, or $.41
per share, compared with net income of $1,942,000, or $.20 per share, for the
fiscal quarter ended June 24, 1994, which represents an increase in net income
of 94%.
The average number of shares and share equivalents outstanding were 9,114,000
for the fiscal quarter ended June 30, 1995 compared to 9,461,000 for the fiscal
quarter ended June 24, 1994.
Revenues from underwriting and investment banking increased $964,000, or 10%,
for the quarter when compared to the same period in the prior fiscal year.
Revenues from corporate underwriting and investment banking increased
$1,291,000, or 17%, for the first quarter due primarily to increased revenues
from private placements, mergers and other fee income of $2,379,000, or 46%.
These increases were partially offset by decreased revenues from equity and
debt public offering of $899,000, or 28%, and decreased revenues from
participations in equity syndications of $844,000, or 47%, for the first
quarter of fiscal 1996. These declines reflect less favorable market
conditions for public offerings of equity securities. Revenues from
participation in corporate and government underwriting syndications increased
$655,000, or 103% for the quarter ended June 30, 1995. This increase reflects
the improved condition of the taxable debt securities markets. Revenues from
municipal finance decreased $327,000, or 22%, for the quarter ended June 30,
1995 when compared to the first quarter of fiscal 1995 due to a lower level of
public finance offerings.
Revenues from underwriting and investment banking activities are highly
dependent on general market conditions for such business activities. Market
conditions for underwriting and investment banking services can be affected by
economic and legislative events both in the United States and abroad. To the
extent future events are unpredictable, uncertainty will be a factor in the
level of McDonald Securities' business activity. Also, competitive pressure
from other entities providing investment banking services can and will have an
effect on the success of McDonald Securities in obtaining such business and on
the prices which can be charged for investment banking and underwriting
services. The management of McDonald Securities believes it can compete
effectively in this segment of its business activities.
Revenues from principal transactions increased $4,050,000, or 37%, for the
first quarter of fiscal 1996 when compared to the same period in the prior
fiscal year. Revenues from trading taxable fixed-income securities, including
corporate bonds, United States government bonds and mortgage-backed securities,
increased $2,202,000, or 44%, for the first quarter of fiscal 1996. This
increase in revenues from principal transactions in taxable fixed-income
securities reflects the improved condition of the taxable fixed income markets
resulting from a more stable interest rate environment. Revenues from trading
municipal bonds decreased $15,000, or 1%, for the first quarter of fiscal 1996
when compared to the first quarter of fiscal 1995. Revenues from principal
transactions in equity securities increased $1,863,000, or 51%, for the first
quarter primarily due to a strong NASDAQ market and continued expansion of the
Company's sales force.
(8)
<PAGE> 9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
---------------------------------------------------------------
RESULTS OF OPERATIONS (continued)
---------------------------------
FISCAL THREE MONTH PERIOD ENDED JUNE 30, 1995 AND JUNE 24, 1994 (cont.)
- -----------------------------------------------------------------------
Commissions revenues increased $2,266,000, or 18%, in the current quarter
compared to the same period in fiscal 1995. Of this amount, commissions
revenues from agency transactions in listed and over-the-counter stocks
increased $1,903,000 or 24%, due to the continued strong equity markets.
Revenues from investment management fees include advisory fees from the
Company's mutual funds and money market funds and investment management fees
earned related to individually managed accounts. Revenues from investment
management fees increased $549,000, or 14%, for the fiscal quarter when
compared to the comparable fiscal 1995 period. Of this amount, increased
revenues from advisory fees related to individually managed accounts
represented $484,000, or 88%, of the total increase due to an increase in
assets under management.
Interest and dividend income increased $907,000, or 29%, for the fiscal quarter
ended June 30, 1995 when compared to the same period in the prior fiscal year.
This increase was due to a higher return on interest earning assets due to
higher interest rates.
Other income increased $437,000, or 44%, for the current quarter when compared
to the same period in the prior fiscal year. This increase was due primarily
to increased revenues from fees related to the retail business, and an increase
in income from certain venture capital investments.
Operating expenses (total expenses before interest) increased $6,088,000, or
17%, for the first quarter of fiscal 1996, when compared to the same period in
the prior fiscal year.
Employee compensation and benefits increased $4,894,000, or 20%, for the first
quarter. Commission and other sales compensation expense increased $2,310,000,
or 17%, for the quarter, primarily because of increased revenues from
commissions and other sales credits. Other clerical and administrative
expenses increased $504,000, or 6%, for the quarter. The increase in other
clerical and administrative expenses represents compensation and employee
benefit costs related to an increase in the professional and support staff.
The remaining increase in employee compensation and benefits of $2,080,000 for
the first quarter represents increases in incentive compensation accruals which
are directly related to the increase in profitability.
All other operating expenses increased $1,194,000, or 10%, for the current
quarter. The increase in all other operating costs represents communications,
occupancy and equipment, promotional and other costs related to the expansion
of the Company's business.
Interest expense increased $313,000, or 21%, for the fiscal quarter when
compared to the same period in fiscal 1995 due to an increase in the interest
rate on short-term borrowings.
Income before income taxes for the fiscal quarter ended June 30, 1995 was
$5,964,000, resulting in a pre-tax return on revenues of 12%. For the fiscal
quarter ended June 24, 1994, income before income taxes was $3,192,000,
resulting in a pre-tax return on revenues of 8%.
(9)
<PAGE> 10
PART II. OTHER INFORMATION
Item 5. Other Information
-----------------
On February 9, 1995, the Company announced the continuation of
an open market repurchase program originally announced in July, 1987.
The current program allows the Company to purchase up to 1,000,000
shares of its Common Stock at an aggregate price not to exceed
$15,000,000. Treasury shares may be used to satisfy options exercised
under the Company's stock option plans.
During the fiscal quarter ended June 30, 1995, the Company
purchased 29,054 shares of the Company's Common Stock at an average
price of $15.29 per share. During the fiscal quarter ended June 30,
1995 the Company utilized 6,828 shares of the Company's Common Stock
held in treasury to satisfy options exercised under the Company's Stock
Option Plans.
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
<TABLE>
<S> <C>
(a.) The following exhibit is filed as part Sequential
of this report: Page Number
-----------
Exhibit 11 Statement re: Computation of
Per Share Earnings . . . . . . . . 13
* Exhibit 27 Financial Data Schedule BD . . . . 14
<FN>
* Exhibit 27 is Furnished for Securities and Exchange Commission Purposes Only.
</TABLE>
(10)
<PAGE> 11
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.
McDonald & Company Investments, Inc.
---------------------------------------------
(Registrant)
Date: August 1, 1995 By: /s/ William B. Summers, Jr.
------------------------- ---------------------------------------
William B. Summers, Jr.
President and Chief Executive Officer
(Principal Executive Officer)
Date: August 1, 1995 By: /s/ Robert T. Clutterbuck
------------------------- ---------------------------------------
Robert T. Clutterbuck
Treasurer
(Principal Financial and Accounting
Officer)
(11)
<PAGE> 12
McDonald & Company Investments, Inc.
Report on FORM 10-Q for the Fiscal Quarter ended June 30, 1995
EXHIBIT INDEX
-------------
<TABLE>
<CAPTION>
Exhibit No. Description Sequential Page
- ----------- ----------- ---------------
<S> <C> <C>
11 Statement Re: Computation of
Per Share Earnings ........................ 13
27 * Financial Data Schedule BD .................. 14
<FN>
* Exhibit 27 is Furnished for Securities and Exchange Commission Purposes Only.
</TABLE>
(12)
<PAGE> 1
EXHIBIT 11
----------
STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
- -----------------------------------------------
<TABLE>
<CAPTION>
Fiscal Three Months Ended
------------------------------
June 30, 1995 June 24, 1994
------------- -------------
<S> <C> <C>
PRIMARY
- -------
Average shares outstanding 8,979,000 9,281,000
Net effect of dilutive stock
options - based on the treasury
stock method using average
market price 135,000 180,000
---------- ----------
TOTAL 9,114,000 9,461,000
========== ==========
Net income $3,764,000 $1,942,000
========== ==========
Net income per share $ .41 $ .20
========== ==========
FULLY DILUTED
- -------------
Average shares outstanding 8,979,000 9,281,000
Net effect of dilutive stock
options - based on the treasury
stock method using greater of
average or period - end market
price 135,000 180,000
---------- -----------
TOTAL 9,114,000 9,461,000
========== ==========
Net income $3,764,000 $1,942,000
========== ==========
Net income per share $ .41 $ .20
</TABLE> ========== ==========
(13)
<TABLE> <S> <C>
<ARTICLE> BD
<LEGEND>
This schedule contians summary financial information extracted from Consolidated
Statement of Financial Condition--Jun-30-1995 and is qualified in its entirety
by reference to unit Financial Statements.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> JUN-30-1995
<CASH> 5,329
<RECEIVABLES> 130,191
<SECURITIES-RESALE> 68,177
<SECURITIES-BORROWED> 0
<INSTRUMENTS-OWNED> 101,989
<PP&E> 11,104
<TOTAL-ASSETS> 367,211
<SHORT-TERM> 70,205
<PAYABLES> 40,821
<REPOS-SOLD> 29,058
<SECURITIES-LOANED> 0
<INSTRUMENTS-SOLD> 45,132
<LONG-TERM> 25,000
<COMMON> 11,541
0
0
<OTHER-SE> 107,209
<TOTAL-LIABILITY-AND-EQUITY> 367,211
<TRADING-REVENUE> 14,922
<INTEREST-DIVIDENDS> 4,035
<COMMISSIONS> 14,774
<INVESTMENT-BANKING-REVENUES> 10,270
<FEE-REVENUE> 4,549
<INTEREST-EXPENSE> 1,828
<COMPENSATION> 29,446
<INCOME-PRETAX> 5,964
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,764
<EPS-PRIMARY> 0.41
<EPS-DILUTED> 0
</TABLE>
