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 14, 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 October 14, 1997, announcing its earnings for the quarter
ended September 26, 1997 which includes the Unaudited Consolidated Statements of
Income for the Company for the three months ended September 26, 1997 and
September 27, 1996, and the three months ended June 30, 1997. 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 14, 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: October 14, 1997
<PAGE>
THE BEAR STEARNS COMPANIES INC.
FORM 8-K
CURRENT REPORT
Exhibit Index
Exhibit No. Description Page
(99) Press Release, dated October 14, 1997
<PAGE>
For Immediate Release
Contact: Hannah Burns (212) 272-2395
Maura Gaenzle (212) 272-4445
Ellen Glickman (212) 272-8188
THE BEAR STEARNS COMPANIES INC.
REPORTS FIRST QUARTER RESULTS;
ANNOUNCES ANNUAL MEETING
New York, New York -- October 14, 1997 -- The Bear Stearns Companies Inc.
(NYSE:BSC) today announced earnings for the company's first fiscal quarter ended
September 26, 1997.
Net income for the first quarter of fiscal 1998 was $161.6 million, or
$1.11 per share, up 49.0% from $108.5 million, or 72 cents per share, for the
comparable quarter last year. The company's after-tax return on common equity
for the trailing 12-month period ended September 26, 1997 was 25.0%.
Revenues, net of interest expense, for the quarter ended September 26,
1997 were $996.1 million, a 44.6% increase from $688.7 million for the
comparable quarter a year ago.
Commenting on the results, President and Chief Executive Officer James
E. Cayne said, "We saw continued momentum following our record fiscal 1997
results. Strong performances were reported across all business areas with
results significantly better than the prior year quarter. Dynamic markets
contributed to increases in equity underwriting and the trading of equity and
fixed income securities, and a favorable interest rate environment continued to
fuel our mergers and acquisitions activities. While we are pleased with the
magnitude of the results, we are equally pleased with the quality of our
earnings which span all of the firm's core businesses."
"During the quarter we announced plans to develop a new site for our
worldwide headquarters in New York City. We are very excited about the firm's
plans to build a technologically sophisticated, 'smart' office tower that will
accommodate our continued growth and expansion into the 21st century. By
improving efficiency and productivity we will be able to serve our clients more
effectively in the global marketplace."
Highlights of the current period compared to the first quarter of fiscal 1997
include:
Commission revenues rose 32.1% to a record $213.4 million, reflecting
increases in the firm's institutional equities, private client services,
and securities clearance revenues.
Investment banking revenues rose 101.8% to $219.3 million, the upswing
primarily attributable to equity and high yield underwritings and mergers
and acquisitions activities.
Principal transactions revenues increased 32.8% to $391.5 million, with
significant increases in the derivatives and high yield areas.
Net interest profits were the best-ever, increasing 30.9% to $147.7
million, as the firm's customer margin balances continued to reach record
levels.
Compensation as a percentage of net revenues was 50.1% versus 50.0%.
Annual Meeting
The Bear Stearns Companies Inc. 1997 Annual Meeting of Stockholders will be held
on Monday, October 27, 1997, 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, 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 approximately 8,500 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, Paris, Sao Paulo, Shanghai,
Singapore, and Tokyo. As of September 26, 1997 total capital, including
stockholders' equity and long-term borrowings, was $13.3 billion. Book value as
of September 26, 1997 was $20.52 per share, based on 151,563,065 shares
outstanding.
- 30 -
Financial Statements Attached
<PAGE>
<TABLE>
THE BEAR STEARNS COMPANIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<CAPTION>
Three Months Ended
----------------------------------------------
September 26, September 27,
1997 1996
------------------ ----------------
(In thousands, except per share data)
<S> <C> <C>
Revenues
Commissions $ 213,444 $ 161,570
Principal transactions 391,514 294,892
Investment banking 219,328 108,694
Interest and dividends 964,571 660,257
Other income 24,148 10,740
------------------ ----------------
Total Revenues 1,813,005 1,236,153
Interest expense 816,915 547,469
------------------ ----------------
Revenues, net of interest expense 996,090 688,684
------------------ ----------------
Expenses
Employee compensation and benefits 499,197 344,372
Floor brokerage, exchange
and clearance fees 39,585 31,566
CommunicationS 28,133 24,556
Occupancy 23,546 21,346
Depreciation and amortization 26,017 19,968
Advertising and market development 15,954 14,756
Data processing and equipment 12,234 7,555
Other expenses 84,286 46,048
------------------ ----------------
Total expenses 728,952 510,167
------------------ ----------------
Income before provision for
income taxes 267,138 178,517
Provision for income taxes 105,520 70,068
------------------ ----------------
Net income $ 161,618 $ 108,449
================== ================
Net income applicable to
common shares $ 155,693 $ 102,418
================== ================
Earnings per share (1) 1.11 0.72
================== ================
Weighted average common and
common equivalent shares
outstanding (1) 152,011,423 150,920,427
================== ================
Cash dividends declared
per common share $ 0.15 $ 0.15
================== ================
(1) Adjusted for the 5% stock dividend.
</TABLE>
<PAGE>
<TABLE>
THE BEAR STEARNS COMPANIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<CAPTION>
Three Months Ended
----------------------------------------------
September 26, June 30,
1997 1997
------------------ ----------------
(In thousands,except per share data)
<S> <C> <C>
Revenues
Commissions $ 213,444 $ 195,372
Principal transactions 391,514 439,865
Investment banking 219,328 182,711
Interest and dividends 964,571 939,900
Other income 24,148 15,446
------------------ ----------------
Total Revenues 1,813,005 1,773,294
Interest expense 816,915 810,663
------------------ ----------------
Revenues, net of interest expense 996,090 962,631
------------------ ----------------
Expenses
Employee compensation and benefits 499,197 461,138
Floor brokerage, exchange
and clearance fees 39,585 38,611
Communications 28,133 27,507
Occupancy 23,546 22,470
Depreciation and amortization 26,017 25,768
Advertising and market development 15,954 22,436
Data processing and equipment 12,234 10,840
Other expenses 84,286 85,018
------------------ ----------------
Total expenses 728,952 693,788
------------------ ----------------
Income before provision for
income taxes 267,138 268,843
Provision for income taxes 105,520 105,955
------------------ ----------------
Net income $ 161,618 $ 162,888
================== ================
Net income applicable to
common shares $ 155,693 $ 156,954
================== ================
Earnings per share $ 1.11 $ 1.15
================== ================
Weighted average common and
common equivalent shares
outstanding 152,011,423 144,842,307
================== ================
Cash dividends declared
per common share $ 0.15 $ 0.15
================== ================
</TABLE>
