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 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 April 19, 1995, announcing its earnings for
the three and nine months ended March 31, 1995 and March 25, 1994, which
includes the Unaudited Consolidated Statements of Income for the Company for the
three and nine months ended March 31, 1995 and March 25, 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. 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 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: April 19, 1995
THE BEAR STEARNS COMPANIES INC.
FORM 8-K
CURRENT REPORT
Exhibit Index
Exhibit No. Description Page
(99) Press Release, dated April 19, 1995
For Immediate Release
Contact: Hannah Burns (212)272-2395
Heather McDonnell (212)272-4356
THE BEAR STEARNS COMPANIES INC.
REPORTS THIRD QUARTER RESULTS;
DECLARES CASH DIVIDENDS;
DECLARES 5% STOCK DIVIDEND
New York, New York -- April 19, 1995 -- The Bear
Stearns Companies Inc. (NYSE:BSC) today announced
earnings for the company's third fiscal quarter ended
March 31, 1995.
Net income for the third quarter of fiscal 1995
was $82.7 million, or 63 cents per share, a 28.3%
decrease in net income from $115.5 million, or 88
cents per share for the comparable quarter last year.
Net income for the first nine months of fiscal 1995
was $151.1 million, or $1.10 per share, a 57.4%
decrease in net income from $354.6 million or $2.65
per share for the comparable period a year ago.
Revenues, net of interest expense, for the
quarter ended March 31, 1995 were $588.3 million, a
9.8% decrease from 652.2% million for the comparable
quarter a year ago. For the nine months ended March
31, 1995, revenues, net of interest expense, were
$1.4 billion, a 27.1% decrease from $2.0 billion a
year ago.
As compared to the previous quarter ended
December 31, 1994, net income increased 151.3% from
$32.9 million, or 22 cents per share. Revenues, net
of interest expense, increased 37.9% from $426.6
million for the previous quarter ended December 31,
1994.
President and Chief Executive Officer James E.
Cayne stated, "We are very pleased with the results
for the third quarter which mark a substantial
improvement over each of the first two quarters of the
fiscal year. We are particularly gratified by the
record performance in M & A activity. Several
advisory assignments completed in connection with
some of the most visible transactions during the
quarter continue to fuel the growing strength of our
investment banking franchise."
"In our ongoing efforts to expand our businesses,
31 of Wall Street's most successful investment
professionals have recently joined the Private Client
Services Division which serves high-net-worth
individuals. Their decisions to join Bear Stearns
endorse the advantages of our client-driven culture.
We are also selectively hiring in other areas
throughout the firm as we continue our efforts to
strengthen and expand our existing businesses. At
the same time we are maintaining our consistent
discipline of controlling costs and monitoring risk."
The company said that revenues from principal
transactions decreased 28% from the same period a
year ago. Investment banking revenues were virtually
flat, reflecting increased levels of advisory and M
& A fees, offset by continued low levels of
underwriting volume. The correspondent clearing
business contributed to a 22.5% rise in commission
revenues largely attributable to increased volume and
the addition of several large clearing accounts
during the quarter. Revenues in all of these areas
were up sharply from the previous quarter.
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 May 26,
1995 to shareholders of record on May 12, 1995. The
board also declared a quarterly cash dividend of 75
5/8 cents per share on the outstanding shares of
adjustable rate cumulative preferred stock, payable
July 15, 1995 to shareholders of record on June 30,
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 July 15,
1995 to shareholders of record on June 30, 1995.
5% STOCK DIVIDEND DECLARED
The Board of Directors declared a 5% stock
dividend on the outstanding shares of common stock to
be distributed May 26, 1995 to shareholders of record
on May 12, 1995. The quarterly cash dividend
declared today will be paid in respect of shares of
common stock outstanding on May 12, 1995 and
consequently will not be paid on the newly issued
shares. Giving effect to the 5% stock dividend,
earnings per share for the third quarter were 60
cents, as compared to 84 cents for the same quarter
last year. Earnings per share for the first nine
months of fiscal 1995 were $1.05, as compared to
$2.53 for the comparable period a year ago.
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 7,400
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 March 31, 1995, total
capital, including stockholders' equity and long-term
borrowings, was $5.9 billion. Giving effect to the 5%
stock dividend, book value as of March 31, 1995 was
$14.20 per share, based on 137,036,447 shares
outstanding.
<TABLE>
THE BEAR STEARNS COMPANIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<CAPTION>
Three Months Ended Nine Months Ended
March 31, March 25, March 31, March 25,
1995 1994(1) 1995 1994(1)
(In thousands, except per share data)
<S> <C> <C> <C> <C>
Revenues
Commissions $ 148,925 $ 121,541 $ 395,908 $ 358,657
Principal transactions 253,463 353,704 576,501 1,004,062
Investment banking 99,811 103,571 233,243 399,694
Interest and dividends 519,075 315,231 1,437,111 888,674
Other income 6,148 4,581 19,817 19,587
Total revenues 1,027,422 898,628 2,662,580 2,670,674
Interest expense 439,091 246,381 1,214,021 682,428
Revenues, net of
interest expense 588,331 652,247 1,448,559 1,988,246
Non-interest expenses
Employee compensation
and benefits 300,243 321,042 754,531 989,842
Floor brokerage, exchange
and clearance fees 27,002 22,868 78,735 70,329
Communications 21,642 19,345 64,310 54,317
Occupancy 21,879 19,227 61,971 56,325
Depreciation and
amortization 15,180 12,243 43,392 34,921
Advertising and market
development 11,577 10,997 43,065 34,869
Data processing and
equipment 8,482 7,100 25,385 20,721
Other expenses 48,874 42,927 133,415 120,518
Total non-interest
expenses 454,879 455,749 1,204,804 1,381,842
Income before provision
for income taxes 133,452 196,498 243,755 606,404
Provision for income taxes 50,712 81,048 92,627 251,838
Net income $ 82,740 $ 115,450 $ 151,128 $ 354,566
Net income applicable to
common shares $ 76,432 $ 109,450 $ 132,259 $ 336,409
Earnings per share (2) $ 0.60 $ 0.84 $ 1.05 $ 2.53
Weighted average common
and common equivalent
shares outstanding (2) 133,631,997 134,441,415 134,293,463 135,872,282
Cash dividends declared
per common share $ 0.15 $ 0.15 $ 0.45 $ 0.45
<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>
