Item 5. Other Events.
Filed herewith is a copy of The Bear Stearns Companies Inc. (the
"Company") Press Release, dated January 13, 1994, announcing its earnings
for the three and six months ended December 31, 1993 and 1992, which includes
the Unaudited Consolidated Statements of Income for the Company for the three
and six months ended December 31, 1993 and 1992. All normal recurring adjust-
ments 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 January 13, 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: January 13, 1994
THE BEAR STEARNS COMPANIES INC.
FORM 8-K
CURRENT REPORT
Exhibit Index
Exhibit No. Description Page
(99) Press Release, dated January 13, 1994
THE BEAR STEARNS COMPANIES INC.
REPORTS RECORD SECOND QUARTER RESULTS;
NET INCOME INCREASES 110%
New York, New York -- January 13, 1994 -- The Bear Stearns Companies Inc.
(NYSE:BSC) today announced record earnings for the company's second fiscal
quarter ended December 31, 1993.
Net income for the second quarter of fiscal 1994 was $134.8 million, or
$1.05 per share, a 110% increase in net income from $64.3 million, or 52 cents
per share for the comparable quarter last year. Net income for the first six
months of fiscal 1994 was $239.1 million, or $1.86 per share, an 88% increase in
net income from $127.3 million, or $1.07 per share for the comparable period a
year ago.
Revenues, net of interest expense, for the quarter ended December 31, 1993
were $752.1 million, a 65% increase from $454.7 million for the comparable
quarter last year. For the six months ended December 31, 1993, revenues, net of
interest expense, were $1.3 billion, a 50% increase from $894.4 million a year
ago.
Chief Executive Officer and President, James E. Cayne, stated "Our pre-tax
return on equity has averaged 50% for the last two calendar years and for the
first six months of fiscal 1994 was 62% on an annualized basis. The record
results reflect the efforts of all of our associates who have worked hard to
achieve this level of performance."
The company said that the results for the current quarter reflect increased
revenues in most of its major business areas. Investment banking revenues rose
180% due to the high level of debt and equity underwriting activity and to
increased merger and acquisition business during the quarter. A 58% rise in
principal transaction revenues was attributable to favorable market conditions
and strong performances in fixed income and equity trading areas. The
Correspondent Clearing, Institutional Sales and Private Client Services
Departments all contributed to a 23% increase in commission revenues.
During the last six months of 1993, the company said it repurchased 1.4
million shares of its common stock in the open market for approximately $30
million in conjunction with the Capital Accumulation Plan and the Performance
Unit Plan, deferred compensation plans for senior managing directors.
Separately, the company announced that it has recently opened a
representative office in Beijing, the company's second office in the People's
Republic of China. Bear Stearns' presence in China is central to the firm's
overall international effort and affirms its long-term commitment to the
Asia/Pacific region.
The Bear Stearns Companies Inc. is the parent company of Bear, Stearns & Co.
Inc., a leading worldwide investment banking and securities trading firm, serv-
ing 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 approximately 6,800 employees located in domestic
offices in Atlanta, Boston, Chicago, Dallas, Los Angeles, San Francisco and
Washington, D.C.; representative offices in Beijing, Geneva, Hong Kong and
Shanghai; international subsidiaries in Frankfurt, Hong Kong, London, Paris, Sao
Paulo and Tokyo; and participates in joint ventures with other firms in Karachi,
Madrid and Paris. As of December 31, 1993, total capital, including long-term
borrowings, was approximately $4.7 billion. Book value as of December 31, 1993
was $14.09 per share, based on 123,433,918 shares outstanding.
<TABLE>
THE BEAR STEARNS COMPANIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<CAPTION>
Three Months Ended Six Months Ended
December 31, December 31, December 31, December 31,
1993 1992 1993 1992
(In thousands, except share data)
<S> <C> <C> <C> <C>
Revenues
Commissions $ 129,518 $ 105,453 $ 237,116 $ 190,339
Principal transactions 363,443 230,475 650,213 478,209
Investment banking 176,953 63,183 296,123 125,557
Interest and dividends 326,461 228,046 573,460 436,207
Other income 6,182 5,412 17,363 7,180
Total revenues 1,002,557 632,569 1,774,275 1,237,492
Interest expense 250,452 177,887 434,458 343,058
Revenues, net of
interest expense 752,105 454,682 1,339,817 894,434
Non-interest expenses
Employee compensation
and benefits 379,427 231,756 668,800 449,063
Floor brokerage, exchange
and clearance fees 24,451 21,381 47,461 38,676
Communications 18,703 14,704 34,972 29,122
Occupancy 18,154 17,364 37,098 34,463
Depreciation and
amortization 11,723 10,354 22,678 20,824
Advertising and market
development 13,616 9,253 23,872 18,038
Data processing and
equipment 7,229 5,994 13,621 14,368
Other expenses 46,888 33,023 81,409 70,483
Total non-interest
expenses 520,191 343,829 929,911 675,037
Income before provision
for income taxes 231,914 110,853 409,906 219,397
Provision for income taxes 97,101 46,559 170,790 92,147
Net income $ 134,813 $ 64,294 $ 239,116 $ 127,250
Net income applicable to
common shares $ 130,314 $ 62,830 $ 230,222 $ 130,156
Earnings per share $ 1.05 $ .52 $ 1.86 $ 1.07
Weighted average common
and common equivalent
shares outstanding 123,602,326 120,687,740 123,845,830 121,496,033
Cash dividends declared
per common share $ 0.15 $ 0.15 $ 0.30 $ 0.30
</TABLE>
