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 18, 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 January 18, 1996, announcing its earnings for
the three months and six months ended December 31, 1995 and 1994, which
includes the Unaudited Consolidated Statements of Income for the Company for
the three months and six months ended December 31, 1995 and 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 January 18, 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: January 18, 1996
THE BEAR STEARNS COMPANIES INC.
FORM 8-K
CURRENT REPORT
Exhibit Index
Exhibit No. Description Page
(99) Press Release, dated January 18, 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 SECOND QUARTER RESULTS
New York, New York -- January 18, 1996 --
The Bear Stearns Companies Inc. (NYSE:BSC) today announced earnings for the
company's second fiscal quarter ended December 31, 1995.
Net income for the second quarter of fiscal 1996 was $105.2 million, or 76
cents per share, a 219% increase in net income from $32.9 million, or 21
cents per share for the comparable quarter last year. Net income for the
first six months of fiscal 1996 was $199.0 million, or $1.42 per share, a 191%
increase in net income from $68.4 million, or 45 cents per share for the
comparable period a year ago.
Revenues, net of interest expense, for the quarter ended December 31, 1995
were $687.7 million, a 61% increase from $426.6 million for the comparable
quarter a year ago. For the six months ended December 31, 1995, revenues,
net of interest expense, were $1.3 billion, a 52% increase from $860.2 million
a year ago.
"We are pleased to report that our second quarter earnings are the best of
the last six quarters, reflecting the positive trends in fixed income and
equity markets and the continuation of robust merger and acquisition
activity," noted President and Chief Executive Officer James E. Cayne.
He added, " Bear Stearns' franchises continue to grow as a result of our ongoing
commitment to all of our businesses. During the quarter, we completed the
formation of two AAA-rated subsidiaries to enhance our global derivatives
capabilities. Correspondent clearing volume was up, as were the number of
correspondent firms, and we also received several high-profile advisory
assignments, including a key role in the strategic combination of Lockheed
Martin and Loral."
The Company stated that the focus and positioning of the firm's businesses,
coupled with better market conditions, resulted in much-improved results for the
second quarter of fiscal 1996 as compared to the same quarter a year ago.
An attractive interest rate environment and increased investor demand
resulted in a 100% increase in investment banking revenues, reflecting
significant merger and acquisition and underwriting activities. Revenues from
principal transactions were up 76% and commissions were up 29% reflecting the
improved conditions.
For the first six months of fiscal 1996, there were increases in all revenue
categories driven by the positive momentum in the securities markets.
Investment banking revenues increased by 78%, trading revenues by 61%, and
commissions by 29% over the same six month period a year ago.
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 23,
1996 to shareholders of record on February 9, 1996. The board also declared
a quarterly cash dividend of 68.75 cents per share on the outstanding shares
of adjustable rate cumulative preferred stock, payable April 15, 1996 to
shareholders of record on March 29, 1996. 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 49.25 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
47.50 cents per related depositary share, both payable April 15, 1996 to
shareholders of record on March 29, 1996.
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 7,500 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, Karachi, London, Madrid, Manila, Paris, Sao Paulo, Shanghai,
Singapore and Tokyo. As of December 31, 1995, total capital, including
stockholders' equity and long-term borrowings, was $7.1 billion. Book value as
of December 31, 1995 was $15.89 per share, based on 137,390,912 shares
outstanding.
Financial Statement Attached
<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,
1995 1994(1) 1995 1994(1)
(In thousands, except share data)
<S> <C> <C> <C> <C>
Revenues
Commissions $ 163,220 $ 126,654 $ 318,410 $ 246,983
Principal transactions 260,840 147,998 530,755 328,937
Investment banking 150,397 75,080 237,802 133,432
Interest and dividends 607,060 469,840 1,160,981 912,137
Other income 8,546 7,161 16,549 13,669
Total revenues 1,190,063 826,733 2,264,497 1,635,158
Interest expense 502,403 400,130 959,348 774,930
Revenues, net of
interest expense 687,660 426,603 1,305,149 860,228
Non-interest expenses
Employee compensation
and benefits 345,427 223,259 652,424 454,288
Floor brokerage, exchange
and clearance fees 30,787 26,072 60,533 51,733
Communications 22,407 21,342 44,905 42,668
Occupancy 21,256 20,103 42,402 40,092
Depreciation and
amortization 17,347 14,419 33,623 28,212
Advertising and market
development 14,382 17,064 26,906 31,488
Data processing and
equipment 8,706 8,496 17,687 16,903
Other expenses 46,467 42,740 89,378 84,541
Total non-interest
expenses 506,779 373,495 967,858 749,925
Income before provision
for income taxes 180,881 53,108 337,291 110,303
Provision for income taxes 75,725 20,181 138,289 41,915
Net income $ 105,156 $ 32,927 $ 199,002 $ 68,388
Net income applicable to
common shares $ 98,956 $ 26,598 $ 186,592 $ 55,827
Earnings per share (2) $ 0.76 $ 0.21 $ 1.42 $ 0.45
Weighted average common
and common equivalent
shares outstanding (2) 136,244,492 134,215,343 136,835,770 134,683,356
Cash dividends declared
per common share $ 0.15 $ 0.15 $ 0.30 $ 0.30
<F1>
(1) Restated to conform prior period amounts to current period's presentation.
<F2>
(2) Adjusted for 5% stock dividend declared on April 19, 1995.
</TABLE>
