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) July 26, 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 July 26, 1994, announcing its earnings for
the quarter and fiscal year ended June 30, 1994, which includes the Unaudited
Consolidated Statements of Income for the Company for the three months and
fiscal year ended June 30, 1994, the three months ended June 30, 1993 and the
Consolidated Statement of Income for the Company for the fiscal year ended June
30, 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.
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 July 26, 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: July 26, 1994
THE BEAR STEARNS COMPANIES INC.
FORM 8-K
CURRENT REPORT
Exhibit Index
Exhibit No. Description Page
(99) Press Release, dated July 26, 1994
For Immediate Release
Contact: Hannah Burns (212)272-2395
Amy Morgan (212)272-4418
THE BEAR STEARNS COMPANIES INC. ANNOUNCES
RECORD YEAR;
REPORTS RESULTS FOR FOURTH QUARTER
New York, New York -- July 26, 1994 -- The Bear Stearns Companies Inc.
(NYSE:BSC) announced today earnings for the company's fiscal year and for
its fourth quarter ended June 30, 1994. The company reported record
earnings for fiscal 1994 despite difficult conditions impacting the fourth
quarter results.
Net income for the fiscal year ended June 30, 1994 was $387.0
million, an increase of 7% from the $362.4 million earned during the
twelve months ended June 30, 1993. Earnings per share for fiscal 1994
were $2.89, versus $2.86 last year. Revenues, net of interest expense,
for the fiscal year ended June 30, 1994 were $2.4 billion, versus $2.1
billion last year.
Net income for the fourth quarter of fiscal 1994 fell 74% to $32.4
million, or 21 cents per share, versus $124.8 million, or 97 cents per
share for the comparable quarter last year. Revenues, net of interest
expense, for the fourth quarter ended June 30, 1994 were $429.9 million,
versus $679.9 million for the fourth quarter a year ago.
The company said that lower results for the fourth quarter
reflected the difficult operating environment and uncertain interest rate
levels. Both principal transactions and investment banking revenues were
down from the fourth quarter of fiscal 1993. Commission revenues
increased slightly from the fourth quarter of fiscal 1993, attributable
to increased clearance, futures and institutional activity.
Commenting on the results for the fiscal year and fourth quarter,
President and Chief Executive Officer James E. Cayne said "We are very
proud of the high level of performance of all our associates during the
difficult operating environment late in the year. Despite the challenges
of unsettled equity and fixed income markets, we achieved our second
consecutive record year with a pre-tax return on equity of 38.7%."
"Our correspondent clearing business remains robust and was a
significant contributor to the record results for the year. In contrast
to the volatile conditions that confronted other segments of our business
during the fourth quarter, this area provided tremendous stability."
"We continue to invest in Bear Stearns' future. Domestic and
international expansion remains a priority with the goal of further
enhancing the firm's powerful franchise. The synergy and growth of the
company has led to a third consecutive record year in investment banking
where revenues increased 41% from fiscal 1993. Commission revenues were
also at a record high, up 15% from fiscal 1993, primarily due to increased
activity."
The Bear Stearns Companies Inc. (NYSE;BSC) 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 7,300 employees located in domestic offices in
Atlanta, Boston, Chicago, Dallas, Los Angeles, San Francisco and
Washington, DC; and an international presence in Beijung, Bueneos Aires,
Franfurt, Geneva, Hong Kong, Karachi, London, Madrid, Manila, Paris, Sao
Paulo, Shanghai, and Tokyo. As of June 30, 1994, total capital, including
stockholders' equity and long-term borrowings, was $5.7 billion. Book
value as of June 30, 1994 was $14.25 per share, based on 128,891,843
shares outstanding.
<TABLE>
THE BEAR STEARNS COMPANIES INC.
CONSOLIDATED STATEMENTS OF INCOME
<CAPTION>
Three Months Ended Fiscal Year Ended
(Unaudited) (Unaudited)
June 30, June 30, June 30, June 30,
1994 1993(1) 1994 1993(1)
(In thousands, except per share data)
<S> <C> <C> <C> <C>
Revenues
Commissions $ 124,331 $ 118,001 $ 482,988 $ 421,090
Principal transactions 127,702 360,064 1,131,914 1,156,816
Investment banking 94,045 136,240 493,739 349,736
Interest and dividends 415,663 264,101 1,304,392 909,809
Other income 8,452 5,086 28,039 15,734
Total revenues 770,193 883,492 3,441,072 2,853,185
Interest expense 340,273 203,600 1,020,055 710,086
Revenues, net of
interest expense 429,920 679,892 2,421,017 2,143,099
Non-interest expenses
Employee compensation
and benefits 237,219 311,888 1,227,061 1,037,099
Floor brokerage, exchange
and clearance fees 28,263 25,315 98,592 85,693
Communications 21,089 15,738 75,406 59,705
Occupancy 19,992 17,361 76,317 69,818
Depreciation and
amortization 13,063 10,595 47,984 41,234
Advertising and market
development 17,824 13,830 52,693 43,718
Data processing and
equipment 6,683 6,720 27,404 27,051
Other expenses 49,392 66,871 172,761 164,383
Total non-interest
expenses 393,525 468,318 1,778,218 1,528,701
Income before provision
for income taxes 36,395 211,574 642,799 614,398
Provision for income taxes 3,996 86,793 255,834 251,951
Net income $ 32,399 $ 124,781 $ 386,965 $ 362,447
Net income applicable to
common shares $ 26,183 $ 120,274 $ 362,592 $ 355,696
Earnings per share $ 0.21 $ .97 $ 2.89 $ 2.86
Weighted average common
and common equivalent
shares outstanding 124,585,745 122,993,386 128,051,286 125,797,870
Cash dividends declared
per common share $ 0.15 $ 0.15 $ 0.15 $ 0.15
<F1>
(1) Restated to conform prior period amounts to current period's presentation.
</TABLE>
