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) October 16, 1996
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)
<PAGE>
Item 5. Other Events.
Filed herewith is a copy of The Bear Stearns Companies Inc. (the "Company")
Press Release, dated October 16, 1996, announcing its earnings for the
three months ended September 27, 1996 which includes the Unaudited
Consolidated Statements of Income for the Company for the three months
ended September 27, 1996, September 29, 1995, and June 30, 1996. 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 October 16, 1996.
<PAGE>
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: October 16, 1996
<PAGE>
THE BEAR STEARNS COMPANIES INC.
FORM 8-K
CURRENT REPORT
Exhibit Index
Exhibit No. Description Page
(99) Press Release, dated October 16, 1996
<PAGE>
FOR IMMEDIATE RELEASE
Contact: Hannah Burns (212) 272-2395
Maura Gaenzle (212) 272-4445
Anne Graber (212) 272-8188
THE BEAR STEARNS COMPANIES INC.
REPORTS FIRST QUARTER RESULTS;
ANNOUNCES ANNUAL MEETING
New York, New York -- October 16, 1996 -- The Bear Stearns Companies Inc.
(NYSE:BSC) today announced earnings for the company's first fiscal quarter ended
September 27, 1996.
Net income for the first quarter of fiscal 1997 was $108.4 million, or 75 cents
per share, versus $93.8 million, or 63 cents per share, for the comparable
quarter last year. Revenues, net of interest expense, for the quarter ended
September 27, 1996 were $688.7 million, versus $617.5 million for the comparable
quarter a year ago.
President and Chief Executive Officer James E. Cayne commented, "The solid
contributions made by our core businesses during the quarter produced very
favorable results. In the ever-competitive securities industry, this is the
fifth consecutive quarter that our return on equity has exceeded 20%. These
results demonstrate the continued strength, stability and balance of our
franchise."
Contributions were made in the following areas:
Investment banking revenues were $108.7 million for the first quarter of
fiscal 1997, a 24.4% increase over the first fiscal quarter a year ago. The
quarter's results reflect increases in equity underwriting and high yield
debt issuance.
Principal transactions revenues increased 9.3% to $294.9 million for the
first quarter versus a year ago, primarily attributable to improved results
in certain of our fixed income activities, particularly in mortgage-backed
securities.
Commission revenues rose 4.1% to $161.6 million for the first quarter
reflecting increases in the firm's institutional equities and securities
clearance revenues.
Net interest profits increased 16.3% to $112.8 million from $97.0 million
reported for the first quarter of fiscal 1996, primarily due to growth in
customer margin debt.
<PAGE>
Annual Meeting
The Bear Stearns Companies Inc. 1996 Annual Meeting of Stockholders will be held
on Monday, October 28, 1996, at 5:00 p.m. in the fifth floor auditorium at the
company's headquarters located at 245 Park Avenue in New York City.
The Bear Stearns Companies Inc. 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 equities and fixed income sales and trading, derivatives, foreign
exchange and futures sales and trading, private client services, asset
management, and custody services. Through Bear, Stearns Securities Corp., it
offers professional and correspondent clearing services, including securities
lending. Headquartered in New York City, the company has over 7,800 employees
located in domestic offices in Atlanta, Boston, Chicago, Dallas, Los Angeles,
and San Francisco; and an international presence in Beijing, Buenos Aires,
Geneva, Hong Kong, London, Lugano, Manila, Paris, Sao Paulo, Shanghai,
Singapore, and Tokyo. As of September 27, 1996, total capital, including
stockholders' equity and long-term borrowings, was $9.4 billion. Book value as
of September 27, 1996 was $17.44 per share, based on 144,324,555 shares
outstanding.
Financial Statements Attached
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<TABLE>
THE BEAR STEARNS COMPANIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<CAPTION>
Three Months Ended
------------------------------------------------
September 27, September 29,
1996 1995
-------------------- --------------------
(In thousands, except per share data)
<S> <C> <C>
Revenues
Commissions $ 161,570 $ 155,190
Principal transactions 294,892 269,915
Investment banking 108,694 87,405
Interest and dividends 660,257 553,921
Other income 10,740 8,003
-------------------- --------------------
Total Revenues 1,236,153 1,074,434
Interest expense 547,469 456,945
-------------------- --------------------
Revenues, net of interest expense 688,684 617,489
-------------------- --------------------
Expenses
Employee compensation and benefits 344,372 306,997
Floor brokerage, exchange
and clearance fees 31,566 29,746
Communications 24,556 22,498
Occupancy 21,346 21,146
Depreciation and amortization 19,968 16,276
Advertising and market development 14,756 12,524
Data processing and equipment 7,555 8,981
Other expenses 46,048 42,911
-------------------- --------------------
Total expenses 510,167 461,079
-------------------- --------------------
Income before provision for
income taxes 178,517 156,410
Provision for income taxes 70,068 62,564
-------------------- --------------------
Net income $ 108,449 $ 93,846
==================== ====================
Net income applicable to common shares $ 102,418 $ 87,636
==================== ====================
Earnings per share (1) $ 0.75 $ 0.63
==================== ====================
Weighted average common and
common equivalent shares
outstanding (1) 143,733,740 143,781,222
==================== ====================
Cash dividends declared
per common share $ 0.15 $ 0.15
==================== ====================
(1) Adjusted for 5% stock dividend declared on April 18, 1996.
</TABLE>
<PAGE>
<TABLE>
THE BEAR STEARNS COMPANIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<CAPTION>
Three Months Ended
-----------------------------------------------
September 27, June 30,
1996 1996
--------------------- ---------------------
(In thousands, except per share data)
<S> <C> <C>
Revenues
Commissions $ 161,570 $ 184,956
Principal transactions 294,892 355,869
Investment banking 108,694 225,179
Interest and dividends 660,257 627,508
Other income 10,740 9,858
--------------------- ---------------------
Total Revenues 1,236,153 1,403,370
Interest expense 547,469 518,069
--------------------- ---------------------
Revenues, net of interest expense 688,684 885,301
--------------------- ---------------------
Expenses
Employee compensation and benefits 344,372 424,582
Floor brokerage, exchange
and clearance fees 31,566 33,515
Communications 24,556 24,773
Occupancy 21,346 21,811
Depreciation and amortization 19,968 18,760
Advertising and market development 14,756 15,965
Data processing and equipment 7,555 8,059
Other expenses 46,048 62,016
--------------------- ---------------------
Total expenses 510,167 609,481
--------------------- ---------------------
Income before provision for
income taxes 178,517 275,820
Provision for income taxes 70,068 113,055
--------------------- ---------------------
Net income $ 108,449 $ 162,765
===================== =====================
Net income applicable to
common shares $ 102,418 $ 156,729
===================== =====================
Earnings per share $ 0.75 $ 1.18
===================== =====================
Weighted average common and
common equivalent shares
outstanding 143,733,740 138,485,068
===================== =====================
Cash dividends declared
per common share $ 0.15 $ 0.15
===================== =====================
</TABLE>
