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) January 19, 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 January 19, 1995, announcing its earnings for
the three months and six months ended December 31, 1994 and 1993, which includes
the Unaudited Consolidated Statements of Income for the Company for the three
months and six months ended December 31, 1994 and 1993. All normal recurring
adjustments that are, in the opinion of management, necessary for a fair pre-
sentation 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 19, 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: January 19, 1995
THE BEAR STEARNS COMPANIES INC.
FORM 8-K
CURRENT REPORT
Exhibit Index
Exhibit No. Description Page
(99) Press Release, dated January 19, 1995
For Immediate Release
Contact: Hannah Burns (212)272-2395
Anne Graber (212)272-8188
THE BEAR STEARNS COMPANIES INC.
REPORTS SECOND QUARTER RESULTS
New York, New York -- January 19, 1995 -- The Bear Stearns Companies Inc.
(NYSE:BSC) today announced earnings for the company's second fiscal
quarter ended December 31, 1994.
Net income for the second quarter of fiscal 1995 was $32.9 million, or 22
cents per share, a 76% decrease in net income from $134.8 million, or
$1.00 per share for the comparable quarter last year. Net income for the
first six months of fiscal 1995 was $68.4 million, or 47 cents per share,
a 71% decrease in net income from $239.1 million, or $1.77 per share for
the comparable period a year ago.
Revenues, net of interest expense, for the quarter ended December 31, 1994
were $426.6 million, a 43% decrease from $749.9 million for the comparable
quarter a year ago. For the six months ended December 31, 1994, revenues,
net of interest expense, were $860.2 million, a 36% decrease from $1.3
billion a year ago.
President and Chief Executive Officer James E. Cayne stated, "During the
quarter our businesses faced numerous obstacles that created a challenging
operating environment. We are proud of all of our associates who helped
to withstand the pressures and maintain our powerful franchise. We are
particularly pleased with the continued significant contributions of our
correspondent clearing business to Bear Stearns' profitability. We are
equally gratified by the firm's increased merger and acquisition activity,
which is reflected by the growth in volume, size and quality of our
transactions."
Bear Stearns was recently ranked fourth among "top acquiror advisors" for
all announced deals involving US targets in 1994, according to Securities
Data Corporation. Bear Stearns' merger and acquisition representations
during the past quarter included advising ITT Corporation on its pending
acquisition of Caesars World, Inc.; advising Sybase Inc. on its
acquisition of Powersoft Corporation; and advising Rhone-Poulenc Rorer
Inc. on the sale of its over-the-counter product line to Ciba-Geigy AG.
The company said that the second quarter was characterized by continued
difficult conditions in both the equity and fixed income markets, which
abated during the month of December. A 58% decline in investment banking
revenues was attributable to decreased underwriting volume but was
partially offset by an increase in merger and acquisition advisory fees.
Revenues from principal transactions decreased 60% due primarily to a
decline in the firm's fixed income activities. A decrease in private
client services commission revenues was partially offset by solid results
in the correspondent clearing area.
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
February 24, 1995 to shareholders of record on February 10, 1995. The
board also declared a quarterly cash dividend of 81 1/4 cents per share
on the outstanding shares of adjustable rate cumulative preferred stock,
payable April 15, 1995 to shareholders of record on March 31, 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 April 15, 1995 to shareholders of
record on March 31, 1995.
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,
mergers and acquisitions, institutional equities and fixed income sales
and trading, private client services, foreign exchange, 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 7,600 employees located in domestic offices in Atlanta, Boston,
Chicago, Dallas, Los Angeles and San Francisco and Washington, DC; and an
international presence in Beijing, Buenos Aires, Frankfurt, Geneva, Hong
Kong, Karachi, London, Madrid, Manila, Paris, Sao Paulo, Shanghai,
Singapore and Tokyo. As of December 31, 1994, total capital, including
stockholders' equity and long-term borrowings, was $5.7 billion. Book
value as of December 31, 1994 was $14.44 per share, based on 130,010,763
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,
1994 1993(1) 1994 1993(1)
(In thousands, except share data)
<S> <C> <C> <C> <C>
Revenues
Commissions $ 126,654 $ 129,518 $ 246,983 $ 237,116
Principal transactions 145,092 363,511 323,038 650,358
Investment banking 75,080 176,953 133,432 296,123
Interest and dividends 472,746 326,441 918,036 573,443
Other income 7,161 4,770 13,669 15,006
Total revenues 826,733 1,001,193 1,635,158 1,772,046
Interest expense 400,130 251,294 774,930 436,047
Revenues, net of
interest expense 426,603 749,899 860,228 1,335,999
Non-interest expenses
Employee compensation
and benefits 223,259 379,427 454,288 668,800
Floor brokerage, exchange
and clearance fees 26,072 24,451 51,733 47,461
Communications 21,342 18,703 42,668 34,972
Occupancy 20,103 18,154 40,092 37,098
Depreciation and
amortization 14,419 11,723 28,212 22,678
Advertising and market
development 17,064 13,616 31,488 23,872
Data processing and
equipment 8,496 7,229 16,903 13,621
Other expenses 42,740 44,682 84,541 77,591
Total non-interest
expenses 373,495 517,985 749,925 926,093
Income before provision
for income taxes 53,108 231,914 110,303 409,906
Provision for income taxes 20,181 97,101 41,915 170,790
Net income $ 32,927 $ 134,813 $ 68,388 $ 239,116
Net income applicable to
common shares $ 26,598 $ 130,314 $ 55,827 $ 230,222
Earnings per share $ 0.22 $ 1.00 $ 0.47 $ 1.77
Weighted average common
and common equivalent
shares outstanding 127,824,137 129,782,442 128,269,863 130,038,122
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>
