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 17, 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)
Item 5. Other Events.
Filed herewith is a copy of The Bear Stearns Companies Inc. (the
"Company") Press Release, dated April 17, 1996, announcing its earnings for
the three and nine months ended March 29, 1996 and March 31, 1995, which
includes the Unaudited Consolidated Statements of Income for the Company for the
three and nine months ended March 29, 1996 and March 31, 1995. 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 17, 1996.
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 17, 1996
THE BEAR STEARNS COMPANIES INC.
FORM 8-K
CURRENT REPORT
Exhibit Index
Exhibit No. Description Page
(99) Press Release, dated April 17, 1996
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 THIRD QUARTER RESULTS
New York, New York -- April 17, 1996 --
The Bear Stearns Companies Inc. (NYSE:BSC) today announced earnings for the
company's third fiscal quarter ended March 29, 1996.
Net income for the third quarter of fiscal 1996 was $128.9 million, or 95
cents per share, a 55.8% increase in net income from $82.7 million, or 60
cents per share for the comparable quarter last year. Net income for the
first nine months of fiscal 1996 was $327.9 million, or $2.37 per share, a
117.0% increase in net income from $151.1 million, or $1.05 per share for the
comparable period a year ago. The third quarter of fiscal 1996 after-tax return
on common equity was 29.0% versus 19.3% for the same quarter a year ago. For
the nine month period ended March 29, 1996, the after-tax return on common
equity was 25.9% versus 11.2% for the same period a year ago.
Revenues, net of interest expense, for the quarter ended March 29, 1996
were $792.2 million, a 34.7% increase from $588.3 million for the comparable
quarter a year ago. For the nine months ended March 29, 1996, revenues,
net of interest expense, were $2,097 million, a 44.8% increase from $1,449
million a year ago.
In comparison to the second fiscal quarter ended December 31, 1995, net income
increased 22.6% from $105.2 million, or 76 cents per share, and revenues, net of
interest expense, increased 15.2% from $687.7 million.
President and Chief Executive Officer James E. Cayne noted that "Bear Stearns
was well-positioned in the quarter to benefit from the favorable operating
environment, achieving increases in all revenue categories from a year ago. We
are extremely proud of our third quarter results, as this was the best quarter
for commission revenues in the firm's history. We have focused on providing
quality products and services for our customers while continuing to vigorously
manage risks and costs firmwide."
The company said that despite the rise in interest rates in early March, all
sales and trading areas performed extremely well. Revenues from prinicipal
transactions increased 42.0% from the same period a year ago. Investment
banking revenues increased 44.6% from a year ago, with underwritings leading the
gains. In conjunction with the efforts of the firm's research and capital
markets groups, Bear Stearns participated in a number of notable equity and debt
financings. Correspondent clearing made a substantial contribution to the
firm's results, given the surge in customer activity and the overall increase
in the number of clearing firms actively trading and investing. The
correspondent clearing business contributed to the 23.0% rise in total
commission revenues from the comparable period a year ago.
Compensation as a percentage of revenues, net of interest expense, for the third
quarter of fiscal 1996 was 49.5% and for the nine months ended March 29, 1996
was 49.8%. For the comparable periods last year, the percentages were 51.0% and
52.1%, respectively.
The Bear Stearns Companies Inc. is the parent company of Bear, Stearns & Co.
Inc., a leading 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., professional and
correspondent clearing services are provided 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, San Francisco
and Washington, D.C.; and an international presence in Beijing, Buenos Aires,
Geneva, Hong Kong, London, Madrid, Manila, Paris, Sao Paulo, Shanghai,
Singapore and Tokyo. As of March 29, 1996 total capital, including
stockholders' equity and long-term borrowings, was $7.8 billion and book
value was $16.67 per share, based on 137,442,126 shares outstanding.
<PAGE>
<TABLE>
THE BEAR STEARNS COMPANIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<CAPTION>
Three Months Ended Nine Months Ended
March 29, March 31, March 29, March 31,
1996 1995(1) 1996 1995(1)
(In thousands, except per share data)
<S> <C> <C> <C> <C>
Revenues
Commissions $ 183,182 $ 148,925 $ 501,592 $ 395,908
Principal transactions 353,073 248,648 883,828 577,585
Investment banking 144,357 99,811 382,159 233,243
Interest and dividends 604,777 523,890 1,765,758 1,436,027
Other income 10,607 6,148 27,156 19,817
Total revenues 1,295,996 1,027,422 3,560,493 2,662,580
Interest expense 503,754 439,091 1,463,102 1,214,021
Revenues, net of
interest expense 792,242 588,331 2,097,391 1,448,559
Non-interest expenses
Employee compensation
and benefits 392,442 300,243 1,044,866 754,531
Floor brokerage, exchange
and clearance fees 35,461 27,002 95,994 78,735
Communications 23,149 21,642 68,054 64,310
Occupancy 21,686 21,879 64,088 61,971
Depreciation and
amortization 17,495 15,180 51,118 43,392
Advertising and market
development 13,926 11,577 40,832 43,065
Data processing and
equipment 8,559 8,482 26,246 25,385
Other expenses 57,709 48,874 147,087 133,415
Total non-interest
expenses 570,427 454,879 1,538,285 1,204,804
Income before provision
for income taxes 221,815 133,452 559,106 243,755
Provision for income taxes 92,944 50,712 231,233 92,627
Net income $ 128,871 $ 82,740 $ 327,873 $ 151,128
Net income applicable to
common shares $ 122,824 $ 76,432 $ 309,417 $ 132,259
Earnings per share $ 0.95 $ 0.60 $ 2.37 $ 1.05
Weighted average common
and common equivalent
shares outstanding 134,514,697 133,631,997 136,082,025 134,293,463
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.
</TABLE>
<TABLE>
THE BEAR STEARNS COMPANIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<CAPTION>
Three Months Ended
March 29, December 31,
1996 1995
(In thousands, except per share data)
<S> <C> <C>
Revenues
Commissions $ 183,182 $ 163,220
Principal transactions 353,073 260,840
Investment banking 144,357 150,397
Interest and dividends 604,777 607,060
Other income 10,607 8,546
Total revenues 1,295,996 1,190,063
Interest expense 503,754 502,403
Revenues, net of
interest expense 792,242 687,660
Non-interest expenses
Employee compensation
and benefits 392,442 345,427
Floor brokerage, exchange
and clearance fees 35,461 30,787
Communications 23,149 22,407
Occupancy 21,686 21,256
Depreciation and
amortization 17,495 17,347
Advertising and market
development 13,926 14,382
Data processing and
equipment 8,559 8,706
Other expenses 57,709 46,467
Total non-interest
expenses 570,427 506,779
Income before provision
for income taxes 221,815 180,881
Provision for income taxes 92,944 75,725
Net income $ 128,871 $ 105,156
Net income applicable to
common shares $ 122,824 $ 98,956
Earnings per share $ 0.95 $ 0.76
Weighted average common
and common equivalent
shares outstanding 134,514,697 136,244,493
Cash dividends declared
per common share $ 0.15 $ 0.15
</TABLE>
