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) April 11, 1994
THE BEAR STEARNS COMPANIES INC.
Exact name of registrant as specified in its charter
DELAWARE File No. 1-8989 13-3286161
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation) Number)
245 Park Avenue, New York, New York 10167
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (212) 272-2000
Not Applicable
(former name or former address, if changed since last report
Item 5. Other Events.
Filed herewith is a copy of The Bear Stearns Companies Inc. (the
"Company") Press Release, dated April 11, 1994, announcing its earnings
for the three and nine months ended March 25, 1994 and March 26, 1993, which
includes the Unaudited Consolidated Statements of Income for the Company for the
three and nine months ended March 25, 1994 and March 26, 1993. All normal
recurring 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. The nature of the Company's business is such that the results for
any interim period are not necessarily indicative of the results for a full
year.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(a) Financial Statements of business acquired:
Not applicable.
(b) Pro Forma financial information:
Not applicable.
(c) Exhibit:
(99) Press Release, dated April 11, 1994.
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.
THE BEAR STEARNS COMPANIES INC.
By: /s/ Michael J. Abatemarco
Michael J. Abatemarco
Controller
Dated: April 11, 1994
THE BEAR STEARNS COMPANIES INC.
FORM 8-K
CURRENT REPORT
Exhibit Index
Exhibit No. Description Page
(99) Press Release, dated April 11, 1994
Contracts: Hannah Burns (212)272-2395
Amy Morgan (212)272-4418
For Immediate Release
THE BEAR STEARNS COMPANIES INC.
REPORTS THIRD QUARTER RESULTS;
ANNOUNCES NEW CHIEF ECONOMIST, WAYNE ANGELL
New York, New York - April 11, 1994 - The Bear Stearns Companies
Inc. (NYSE;BSC) today announced earnings for the company's third
fiscal quarter ended March 25, 1994.
Net income for the third quarter of fiscal 1994 was $115.5
million, or 93 cents per share, a 5% increase in net income from
$110.4 million, or 92 cents per share for the comparable quarter
last year. Net income for the first nine months of fiscal 1994 was
$354.6 million, or $2.79 per share, a 49% increase in net income
from $237.7 million, or $1.99 per share for the comparable period
a year ago.
The company's annualized pre-tax return on equity for the
first nine months of fiscal 1994 was 50.3%.
Chief Executive Officer and President, James E. Cayne, stated
"We are gratified by the results for the third quarter. We
continue to believe in the strength and stability of the Bear
Stearns franchise. Recent announcements of senior hirings are a
reflection of that strength.
While the fourth quarter is only two weeks old, both the
equity and fixed income markets have been subject to extreme
volatility. Bear Stearns has been impacted by these conditions
resulting in moderate mark-to-market losses. This is not the first
time we have suffered losses and it will not be the last. We will
continue our efforts to use our capital to sustain the highest
return on equity and the highest profit margin in the industry."
Revenues, net of interest expense, for the quarter ended March
25, 1994 were $653.6 million, a 15% increase from $570.5 million
for the comparable quarter last year. For the nine months ended
March 25, 1994, revenues, net of interest expense, were $2.0
billion, a 36% increase from $1.5 billion a year ago.
Separately, Bear Stearns announced today that Wayne D. Angell
has joined the firm as Chief Economist and Senior Managing
Director. Mr. Angell is one of the country's most respected
economists having just completed an eight-year term as a member of
the Federal Reserve Board. At the Federal Reserve he served as
Chair of the Board's Committee on Federal Reserve Bank Activities
and as Chair of the G-10 Committee on Payment and Settlement
Systems.
Commenting on the new hire, James E. Cayne, said, "We are
thrilled that Wayne has decided to join Bear Stearns as Chief
Economist and Senior Managing Director. His combined experiences
at the Federal Reserve; in politics as a State Legislator; and in
education as Chairman of the Economics Department and Dean of
Ottawa University, have given him the stature that very few others
command."
In 1956 Mr. Angell began an extended career at Ottawa
University as an assistant professor in the Economics Department.
He was promoted to full professor and subsequently named Department
Chairman, Division Chairman and finally Dean of the College. From
1956 to 1985 and while at Ottawa University, he completed two terms
as a director of the Federal Reserve Bank of Kansas City and served
as a bank officer and director of the Peoples' National Bank of
Ottawa, KS, Hume Bank, Council Grove National Bank, First Bank and
the Investment Committee of Franklin Savings Association. In 1960
he was elected to the Kansas State House of Representatives to
which he was reelected twice, in 1962 and 1964. During his term,
he chaired the Water Resources Committee and the Economic
Development Committee.
Mr. Angell received a BA from Ottawa University in 1952 and an
MA in Economics, Phi Beta Kappa, from the University of Kansas in
1953. He holds a PhD in Economics from the University of Kansas.
Mr. Angell is the recipient of numerous honors and awards,
including Who's Who in America, honorary Doctor of Humane Letters
from Ottawa University, Distinguished Kansan of the Year of the
Native Sons and Daughters and Distinguished Service Award from the
Alumni Association of Ottawa University.
The Bear Stearns Companies Inc. is the parent company of Bear,
Stearns & Co. Inc., a leading worldwide investment banking and
securities trading firm, serving governments, corporations,
institutions and individuals worldwide. The company's business
includes corporate finance and mergers and acquisitions,
institutional equities and fixed income sales and trading, private
client services, foreign exchange and futures sales and trading,
asset management and custody services. Through Bear, Stearns
Securities Corp., it offers professional and correspondent
clearing, including securities lending. Headquartered in New York
City, the company has over 7,000 employees located in domestic
offices in Atlanta, Boston, Chicago, Dallas, Los Angeles, San
Francisco and Washington, DC; and an international presence in
Beijing, Frankfurt, Geneva, Hong Kong, Karachi, London, Madrid,
Manila, Paris, Sao Paulo, Shanghai and Tokyo. As of March 25,
1994, total capital, including long-term borrowings, was
approximately $5.4 billion. Book value as of March 25, 1994 was
$14.90 per share, based on 123,342,606 shares outstanding.
<TABLE>
THE BEAR STEARNS COMPANIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<CAPTION>
Three Months Ended Nine Months Ended
March 25, March 26, March 25, March 26,
1994 1993 1994 1993
(In thousands, except share data)
<S> <C> <C> <C> <C>
Revenues
Commissions $ 121,541 $ 112,750 $ 358,657 $ 303,089
Principal transactions 353,999 318,543 1,004,212 796,752
Investment banking 103,571 87,939 399,694 213,496
Interest and dividends 315,269 209,501 888,729 645,708
Other income 4,581 5,162 19,587 10,648
Total revenues 898,961 733,895 2,670,879 1,969,693
Interest expense 245,324 163,428 679,782 506,486
Revenues, net of
interest expense 653,637 570,467 1,991,097 1,463,207
Non-interest expenses
Employee compensation
and benefits 321,042 276,148 989,842 725,211
Floor brokerage, exchange
and clearance fees 22,868 21,702 70,329 60,378
Communications 19,345 14,845 54,317 43,967
Occupancy 19,227 17,994 56,325 52,457
Depreciation and
amortization 12,243 9,815 34,921 30,639
Advertising and market
development 10,997 10,520 34,869 29,888
Data processing and
equipment 7,100 5,963 20,721 20,331
Other expenses 44,317 30,053 123,369 97,512
Total non-interest
expenses 457,139 387,040 1,384,693 1,060,383
Income before provision
for income taxes 196,498 183,427 606,404 402,824
Provision for income taxes 81,048 73,011 251,838 165,158
Net income $ 115,450 $ 110,416 $ 354,566 $ 237,666
Net income applicable to
common shares $ 113,144 $ 109,677 $ 343,366 $ 239,834
Earnings per share $ .93 $ .92 $ 2.79 $ 1.99
Weighted average common
and common equivalent
shares outstanding 121,942,327 119,029,784 123,240,165 120,747,189
Cash dividends declared
per common share $ .15 $ .15 $ .45 $ .45
</TABLE>
