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 22, 1997
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 January 22, 1997, announcing its earnings for the three and
six months ended December 31, 1996 which includes the Unaudited Consolidated
Statements of Income for the Company for the three and six months ended December
31, 1996 and December 31, 1995, and the three months ended September 27, 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 January 22, 1997.
<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: January 24, 1997
<PAGE>
THE BEAR STEARNS COMPANIES INC.
FORM 8-K
CURRENT REPORT
Exhibit Index
Exhibit No. Description Page
(99) Press Release, dated January 22, 1997
<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 RECORD RESULTS FOR
FISCAL 1997 SECOND QUARTER
New York, New York -- January 22, 1997 -- The Bear Stearns Companies Inc.
(NYSE: BSC) today announced record earnings for the company's second fiscal
quarter ended December 31, 1996.
Net income for the second quarter of fiscal 1997 was $176.5 million,
or $1.27 per share, a 67.9% increase in net income from $105.2 million, or 72
cents per share, for the comparable quarter last year. The annualized return on
common equity for the quarter was 33.1%.
Net income for the first six months of fiscal 1997 was $285.0 million, or
$2.02 per share, a 43.2% increase in net income from $199.0 million, or $1.36
per share, for the comparable period a year ago. The annualized return on
common equity for the six months ended December 31, 1996 was 27.0%.
Revenues, net of interest expense, for the quarter ended December 31, 1996
were $940.1 million, a 36.7% increase from $687.7 million for the comparable
quarter a year ago. For the six months ended December 31, 1996, revenues, net
of interest expense, were $1.6 billion, a 24.8% increase from $1.3 billion a
year ago.
President and Chief Executive Officer James E. Cayne commented, "These are
the best quarterly results Bear Stearns has ever had, representing the sixth
consecutive quarter in which our return on common equity has topped 20%. For
the twelve months ended December 31, 1996, our return on common equity was in
excess of 28%."
"Bear Stearns' record performance reflects the efforts and teamwork of
everyone at the firm. Greater coordination among our associates has enabled us
to achieve these broad-based earnings in a very positive operating environment.
We were particularly gratified to achieve record or near-record levels of
commissions, principal transactions, investment banking and net interest
revenues."
"Despite the competitive hiring environment, we have been able to attract
and retain experienced individuals as we build on our capabilities. In
particular, we have been expanding all research areas of the firm."
Contributions were made in the following areas:
_ Commission revenues rose 12.5% from the second quarter of fiscal 1996, to
$183.6 million for the second quarter of fiscal 1997.
_ Principal transactions revenues set a record at $429.2 million, an increase of
64.6% over the prior year quarter.
_ Investment banking revenues were $183.1 million for the second quarter, a
21.8% increase over the second quarter a year ago.
_ Net interest revenues increased 23.5%, to $129.2 million, from $104.7 million
reported for the second quarter of fiscal 1996.
_ Compensation as a percentage of net revenues for the second quarter of fiscal
1997 was 48.6% versus 50.2% for the second quarter of fiscal 1996. For the six
months ended December 31, 1996, compensation as a percentage of net revenues was
49.2% versus 50.0% for the six month period a year ago.
The Bear Stearns Companies Inc. 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 and mergers and acquisitions, institutional
equities and fixed income sales and trading, private client services,
derivatives, foreign exchange and 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 7,800 employees located in
domestic offices in Atlanta, Boston, Chicago, Dallas, Los Angeles and San
Francisco; and an international presence in Beijing, Buenos Aires, Dublin,
Geneva, Hong Kong, London, Lugano, Manila, Paris, Sao Paulo, Shanghai, Singapore
and Tokyo. As of December 31, 1996, total capital, including stockholders'
equity and long-term borrowings, was $9.5 billion. Book value as of December 31,
1996 was $18.55 per share, based on 144,313,414 shares outstanding.
Financial Statements Attached
<PAGE>
<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,
1996 1995 1996 1995
(In thousands, except per share data)
<S> <C> <C> <C> <C>
Revenues
Commissions $ 183,584 $ 163,220 $ 345,154 $ 318,410
Principal transactions 429,239 260,840 724,131 530,755
Investment banking 183,138 150,397 291,832 237,802
Interest and dividends 745,610 607,060 1,405,867 1,160,981
Other income 14,959 8,546 25,699 16,549
------------ ------------ ------------ ------------
Total Revenues 1,556,530 1,190,063 2,792,683 2,264,497
------------ ------------ ------------ ------------
Interest expense 616,396 502,403 1,163,865 959,348
------------ ------------ ------------ ------------
Revenues, net of interest expense 940,134 687,660 1,628,818 1,305,149
------------ ------------ ------------ ------------
Expenses
Employee compensation and benefits 456,825 345,427 801,197 652,424
Floor brokerage, exchange
and clearance fees 34,447 30,787 66,013 60,533
Communications 24,778 22,407 49,334 44,905
Occupancy 21,945 21,256 43,291 42,402
Depreciation and amortization 21,450 17,347 41,418 33,623
Advertising and market development 16,683 14,382 31,439 26,906
Data processing and equipment 8,206 8,706 15,761 17,687
Other expenses 65,245 46,467 111,293 89,378
------------ ------------ ------------ ------------
Total expenses 649,579 506,779 1,159,746 967,858
------------ ------------ ------------ ------------
Income before provision for
income taxes 290,555 180,881 469,072 337,291
Provision for income taxes 114,043 75,725 184,111 138,289
------------ ------------ ------------ ------------
Net income $ 176,512 $ 105,156 $ 284,961 $ 199,002
============ ============ ============ ============
Net income applicable to
common shares $ 170,573 $ 98,956 $ 272,991 $ 186,592
============ ============ ============ ============
Earnings per share (1) $ 1.27 $ 0.72 $ 2.02 $ 1.36
============ ============ ============ ============
Weighted average common and
common equivalent shares
outstanding (1) 141,696,031 143,056,715 142,692,355 143,677,557
============ ============ ============ ============
Cash dividends declared
per common share $ 0.15 $ 0.15 $ 0.30 $ 0.30
============ ============ ============ ============
(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
December 31, September 27,
1996 1996
(In thousands, except per share data)
<S> <C> <C>
Revenues
Commissions $ 183,584 $ 161,570
Principal transactions 429,239 294,892
Investment banking 183,138 108,694
Interest and dividends 745,610 660,257
Other income 14,959 10,740
------------ -----------
Total Revenues 1,556,530 1,236,153
Interest expense 616,396 547,469
------------ -----------
Revenues, net of interest expense 940,134 688,684
------------ -----------
Expenses
Employee compensation and benefits 456,825 344,372
Floor brokerage, exchange
and clearance fees 34,447 31,566
Communications 24,778 24,556
Occupancy 21,945 21,346
Depreciation and amortization 21,450 19,968
Advertising and market development 16,683 14,756
Data processing and equipment 8,206 7,555
Other expenses 65,245 46,048
------------ -----------
Total expenses 649,579 510,167
------------ -----------
Income before provision for
income taxes 290,555 178,517
Provision for income taxes 114,043 70,068
------------ -----------
Net income $ 176,512 $ 108,449
============ ===========
Net income applicable to
common shares $ 170,573 $ 102,418
============ ===========
Earnings per share $ 1.27 $ 0.75
============ ===========
Weighted average common and
common equivalent shares
outstanding 141,696,031 143,733,740
============ ===========
Cash dividends declared
per common share $ 0.15 $ 0.15
============ ===========
</TABLE>
