SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Pursuant to Section 13 or 15 (d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 15, 1998
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.'s ( the "Company")
Press Release, dated January 15, 1998, announcing its earnings for the three and
six months ended December 31, 1997 which includes the Unaudited Consolidated
Statements of Income for the Company for the three and six months ended December
31, 1997 and December 31, 1996, and the three months ended September 26, 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 January 15, 1998.
<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 21, 1998
<PAGE>
THE BEAR STEARNS COMPANIES INC.
FORM 8-K
CURRENT REPORT
EXHIBIT INDEX
Exhibit No. Description
(99) Press Release, dated January 15, 1998
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 RESULTS FOR
FISCAL 1998 SECOND QUARTER;
FISCAL YEAR-TO-DATE EARNINGS UP 13%
New York, New York -- January 15, 1998 -- The Bear Stearns Companies Inc. (NYSE:
BSC) today announced earnings for the company's second fiscal quarter ended
December 31, 1997.
Net income for the second quarter of fiscal 1998 was $160.2 million or $1.11 per
share, a 9.2% decrease in net income from $176.5 million or $1.21 per share for
the comparable quarter last year. The annualized return on common equity for the
quarter was 21.5%.
Net income for the first six months of fiscal 1998 was $321.8 million or $2.22
per share, a 12.9% increase in net income from $285.0 million or $1.92 per share
for the comparable period a year ago. The annualized return on common equity for
the six months ended December 31, 1997 was 21.9%.
Revenues, net of interest expense, for the quarter ended December 31, 1997 were
$1.1 billion, a 14.2% increase from $940.1 million for the comparable quarter a
year ago. For the six months ended December 31, 1997, revenues, net of interest
expense, were $2.1 billion, a 27.1% increase from $1.6 billion a year ago.
President and Chief Executive Officer James E. Cayne commented, "We just
completed a very challenging quarter and are extremely pleased with the strong
results of our major business segments. Despite an environment characterized by
volatile equity and fixed income markets, largely stemming from the turbulence
in Asia, we were able to sustain our high levels of profitability."
"The results in certain areas, notably investment banking's record revenues,
were particularly impressive, as this franchise continues to grow and gain
market share. We believe that the revenues generated by investment banking this
quarter are a manifestation of our commitment to build this important part of
our business."
Highlights of the quarter's results follow:
Commission revenues for the second quarter of fiscal 1998 rose 25.6% to $230.5
million from $183.6 million a year ago. Principal transactions revenues were
$390.5 million, a 9.0% decrease from the comparable quarter a year ago.
Investment banking revenues increased 52.3% to $278.9 million from $183.1
million for the second quarter of fiscal 1997. Net interest revenues were $162.0
million, a 25.4% increase from $129.2 million a year ago. Compensation as a
percentage of net revenues for the quarter was 49.9%. For the six months ended
December 31, 1997, compensation as a percentage of net revenues was 50.0%.
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 8,700 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 December 31, 1997 total capital, including
stockholders' equity and long-term borrowings, was $14.8 billion. Book value as
of December 31, 1997 was $21.43 per share, based on 151,567,190 shares
outstanding.
Financial Statements Attached
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<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,
1997 1996 1997 1996
---------------- ---------------- ---------------- ----------------
(In thousands, except per share data)
<S>
Revenues <C> <C> <C> <C>
Commissions $ 230,496 $ 183,584 $ 443,940 $ 345,154
Principal transactions 390,512 429,239 782,026 724,131
Investment banking 278,884 183,138 498,212 291,832
Interest and dividends 1,081,298 745,610 2,045,869 1,405,867
Other income 11,877 14,959 36,025 25,699
---------------- ---------------- ---------------- ----------------
Total Revenues 1,993,067 1,556,530 3,806,072 2,792,683
Interest expense 919,304 616,396 1,736,219 1,163,865
---------------- ---------------- ---------------- ----------------
Revenues, net of interest expense 1,073,763 940,134 2,069,853 1,628,818
---------------- ---------------- ---------------- ----------------
Expenses
Employee compensation and benefits 535,793 456,825 1,034,990 801,197
Floor brokerage, exchange
and clearance fees 43,522 34,447 83,107 66,013
Communications 28,824 24,778 56,957 49,334
Depreciation and amortization 27,427 21,450 53,444 41,418
Occupancy 25,387 21,945 48,933 43,291
Advertising and market development 20,057 16,683 36,011 31,439
Data processing and equipment 12,460 8,206 24,694 15,761
Other expenses 120,688 65,245 204,974 111,293
---------------- ---------------- ---------------- ----------------
Total expenses 814,158 649,579 1,543,110 1,159,746
---------------- ---------------- ---------------- ----------------
Income before provision for
income taxes 259,605 290,555 526,743 469,072
Provision for income taxes 99,383 114,043 204,903 184,111
---------------- ---------------- ---------------- ----------------
Net income $ 160,222 $ 176,512 $ 321,840 $ 284,961
================ ================ ================ ================
Net income applicable to
common shares $ 154,299 $ 170,573 $ 309,991 $ 272,991
================ ================ ================ ================
Earnings per share (1) $ 1.11 $ 1.21 $ 2.22 $ 1.92
================ ================ ================ ================
Weighted average common and
common equivalent shares
outstanding (1) 152,312,886 148,780,833 152,757,258 149,826,973
================ ================ ================ ================
Cash dividends declared
per common share
$ 0.15 $ 0.15 $ 0.30 $ 0.30
================ ================ ================ ================
(1) Adjusted for 5% stock dividend declared through January 29, 1997.
</TABLE>
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<TABLE>
THE BEAR STEARNS COMPANIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<CAPTION>
Three Months Ended
----------------------------------------------
December 31, September 26,
1997 1997
-------------------- --------------------
(In thousands, except per share data)
<S> <C> <C>
Revenues
Commissions $ 230,496 $ 213,444
Principal transactions 390,512 391,514
Investment banking 278,884 219,328
Interest and dividends 1,081,298 964,571
Other income 11,877 24,148
-------------------- --------------------
Total Revenues 1,993,067 1,813,005
Interest expense 919,304 816,915
-------------------- --------------------
Revenues, net of interest expense 1,073,763
996,090
-------------------- --------------------
Expenses
Employee compensation and benefits
535,793 499,197
Floor brokerage, exchange
and clearance fees 43,522 39,585
Communications 28,824 28,133
Depreciation and amortization 27,427 26,017
Occupancy 25,387 23,546
Advertising and market development 20,057 15,954
Data processing and equipment 12,460 12,234
Other expenses 120,688 84,286
-------------------- --------------------
Total expenses 814,158 728,952
-------------------- --------------------
Income before provision for
income taxes 259,605 267,138
Provision for income taxes 99,383 105,520
-------------------- --------------------
Net income $ 160,222 $ 161,618
==================== ====================
Net income applicable to
common shares $ 154,299 $ 155,693
==================== ====================
Earnings per share $ 1.11 $ 1.11
==================== ====================
Weighted average common and
common equivalent shares
outstanding 152,312,886 152,011,423
==================== ====================
Cash dividends declared
per common share 0.15 0.15
==================== ====================
</TABLE>
