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) August 1, 1995
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 August 1, 1995, announcing its earnings for
the quarter and fiscal year ended June 30, 1995, which includes the Unaudited
Consolidated Statements of Income for the Company for the three months and
fiscal year ended June 30, 1995 and the three months ended June 30, 1994 and the
Consolidated Statement of Income for the Company for the fiscal year ended June
30, 1994. 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 August 1, 1995.
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: August 1, 1995
THE BEAR STEARNS COMPANIES INC.
FORM 8-K
CURRENT REPORT
Exhibit Index
Exhibit No. Description Page
(99) Press Release, dated August 1, 1995
For Immediate Release
Contact: Hannah Burns (212)272-2395
Maura Gaenzle (212)272-4445
THE BEAR STEARNS COMPANIES INC.
New York, New York -- August 1, 1995 -- The Bear
Stearns Companies Inc. (NYSE:BSC) today announced
earnings for the company's fourth quarter and fiscal
year ended June 30, 1995.
Net income for the fourth quarter of fiscal 1995
rose 176% to $89.5 million, or 65 cents per share,
versus $32.4 million, or 20 cents per share for the
comparable quarter last year. Revenues, net of
interest expense, for the fourth quarter ended June
30, 1995 were $626.5 million, versus $428.5 million
for the fourth quarter a year ago.
Net income for the fiscal year ended June 30,
1995 was $240.6 million, a decrease of 38% from the
$387.0 million earned during the twelve months ended
June 30, 1994. Earnings per share for fiscal 1995
were $1.70, versus $2.75 last year. Revenues, net of
interest expense, for the fiscal year ended June 30,
1995 were $2.1 billion, versus $2.4 billion last
year.
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President and Chief Executive Officer James E.
Cayne noted that, "During the first and second
quarters of fiscal 1995, Bear Stearns managed well in
a difficult operating environment. The firm remained
committed to all of its businesses in a period of
weakness and volatility in the bond and stock
markets. In some cases, we selectively expanded
certain areas of the firm to position ourselves for
future opportunities. These decisions, along with
improved market conditions, enabled Bear Stearns to
show dramatically better results for the third and
fourth quarters."
"The firm's results for fiscal 1995 emphasize the
ability of Bear Stearns' professionals and business
units to quickly respond to changing market
conditions -- harnessing all the firm's resources to
better service our clients. We are proud of the
company's commitment to its businesses and the
individuals within the firm who strive to make Bear
Stearns an integrated, client-focused and service-
oriented company. We also acknowledge the
contributions of several senior professionals who
resigned from the firm during the fiscal year; we
wish them well as they pursue new opportunities."
The company said the results for the fourth
quarter reflect a much improved business environment
marked by rallies in the stock and bond markets
resulting in increased activity in both the debt and
equity areas of the firm. In addition, fee income
from mergers and acquisitions and advisory
assignments and commission revenues from
correspondent clearing and private client services
continued the positive trend from the prior quarter.
During the fiscal year, Bear Stearns benefitted
from its ability to maintain markets and service
customers in the face of extraordinarily volatile
market conditions, including
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the devaluation of the Mexican peso, which negatively
impacted markets around the world. Fixed income
revenue declines, caused in part by the substantial
downsizing of the mortgage-backed market, were
partially offset by increased revenues from corporate
and government bond activities related to the bond
market rally. Although equity underwritings were
down throughout the fiscal year, the firm's fee
income and commissions from correspondent clearing
and private client services continued to be
significant contributors reflecting renewed investor
confidence during the latter half of the year.
Quarterly Cash Dividends Declared
The Board of Directors declared a regular
quarterly cash dividend of 15 cents per share on the
outstanding shares of common stock, payable on August
25, 1995 to shareholders of record on August 11,
1995. The board also declared a quarterly cash
dividend of 68 3/4 cents per share on the outstanding
shares of adjustable rate cumulative preferred stock,
payable October 15, 1995 to shareholders of record on
September 29, 1995. In addition, the board declared
a quarterly cash dividend of $3.94 per share on the
outstanding shares of 7.88% cumulative preferred
stock, which is equivalent to 49 1/4 cents per
related depositary share, and a quarterly cash
dividend of $3.80 per share on the outstanding shares
of 7.60% cumulative preferred stock, which is
equivalent to 47 1/2 cents per related depositary
share, both payable October 15, 1995 to shareholders
of record on September 29, 1995.
The Bear Stearns Companies Inc. (NYSE:BSC) is the
parent company of Bear, Stearns & Co. Inc., a leading
investment banking and securities trading and
brokerage firm, serving governments, corporations,
institutions and individuals worldwide. The
company's business includes corporate finance and
mergers and acquisitions, institutional
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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 7,400 employees located in
domestic offices in Atlanta, Boston, Chicago, Dallas,
Los Angeles, San Francisco and Washington, DC; and an
international presence in Beijing, Buenos Aires,
Geneva, Hong Kong, Karachi, London, Madrid, Manila,
Paris, Sao Paulo, Shanghai, Singapore and Tokyo. As
of June 30, 1995, total capital, including
stockholder's equity and long-term borrowings, was
$6.6 billion. Book value as of June 30, 1995 was
$14.71 per share, based on 137,384,096 shares
outstanding.
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Financial Statement Attached
<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,
1995 1994(1) 1995(1) 1994(1)
(In thousands, except share data)
<S> <C> <C> <C> <C>
Revenues
Commissions $ 151,031 $ 124,331 $ 546,939 $ 482,988
Principal transactions 275,902 129,120 860,366 1,134,008
Investment banking 115,643 94,045 348,886 493,739
Interest and dividends 540,358 414,016 1,969,506 1,301,864
Other income 8,058 8,452 27,875 28,039
Total revenues 1,090,992 769,964 3,753,572 3,440,638
Interest expense 464,494 341,438 1,678,515 1,023,866
Revenues, net of
interest expense 626,498 428,526 2,075,057 2,416,772
Non-interest expenses
Employee compensation
and benefits 325,956 237,219 1,080,487 1,227,061
Floor brokerage, exchange
and clearance fees 30,305 28,263 109,040 98,592
Communications 21,401 21,089 85,711 75,406
Occupancy 21,276 19,992 83,247 76,317
Depreciation and
amortization 15,882 13,063 59,274 47,984
Advertising and market
development 13,971 17,824 57,036 52,693
Data processing and
equipment 8,265 6,683 33,650 27,404
Other expenses 45,115 47,998 178,530 168,516
Total non-interest
expenses 482,171 392,131 1,686,975 1,773,973
Income before provision
for income taxes 144,327 36,395 388,082 642,799
Provision for income taxes 54,844 3,996 147,471 255,834
Net income $ 89,483 $ 32,399 $ 240,611 $ 386,965
Net income applicable to
common shares $ 83,245 $ 26,183 $ 215,474 $ 362,592
Earnings per share (2) $ 0.65 $ 0.20 $ 1.70 $ 2.75
Weighted average common
and common equivalent
shares outstanding (2) 133,147,712 130,815,032 134,019,032 134,453,847
Cash dividends declared
per common share $ 0.15 $ 0.15 $ 0.60 $ 0.60
<F1>
(1) Restated to conform prior period amounts to current period's presentation.
(2) Adjusted for 5% stock dividend declared on April 19, 1995.
</TABLE>
