For Immediate Release
Contact: Hannah Burns (212) 272-2395
Rebecca Haas (212) 272-8188
THE BEAR STEARNS COMPANIES INC.
REPORTS FISCAL YEAR AND FOURTH QUARTER RESULTS;
DECLARES QUARTERLY COMMON STOCK CASH DIVIDENDS;
AUTHORIZES $1.2 BILLION SHARE REPURCHASE PROGRAM
NEW YORK -January 4, 2001 -- The Bear Stearns Companies Inc. (NYSE:BSC) today
reported net earnings per diluted share of $1.36 for the fourth quarter ended
November 30, 2000, up from $1.32 per share for the three-month period ended
November 26, 1999. Net income for the fourth quarter ended November 30, 2000 was
$195.2 million, down 6.0% from $207.5 million for the three-month period ended
November 26, 1999. Net revenues for the fourth quarter were $1.38 billion, up
7.5% from $1.28 billion for the comparable prior year period.
Net income for the fiscal year ended November 30, 2000 was $773.2
million and fully diluted earnings per share were $5.35. Net income and earnings
per share for the fiscal year include an after-tax charge of $96.0 million, or
$0.63 per share related to the Henryk de Kwiatkowski jury verdict. On an
operating basis, excluding the charge, net income was $869.2 million, an
increase of 4.9% from the twelve-month period ended November 26, 1999, and fully
diluted earnings per share were $5.98, up 12.2% from $5.33 in the comparable
prior year period. Net revenues for the fiscal year ended November 30, 2000
increased 7.0% to $5.5 billion from $5.1 billion in the comparable prior year
period.
The annualized after-tax return on common stockholders' equity for the
quarter ended November 30, 2000 was 18.8% compared to 20.2% for the three-month
period ended November 26, 1999. For the fiscal year ended November 30, 2000, the
after-tax return on common stockholders' equity was 21.1% before giving effect
to the litigation charge, versus 21.9% for the twelve-months ended November 26,
1999. The after-tax return on common stockholders' equity was 19.1% after the
charge.
James E. Cayne, president and chief executive officer, said, "We are
very pleased with the results for the quarter and fiscal year ended November 30,
2000, especially in light of the difficult operating environment. The past year
was marked by extraordinary competitive compensation pressures across a number
of our businesses, as well as volatile equity and fixed income markets
worldwide. Despite these conditions, our core businesses performed well and we
were able to achieve revenue and profit growth. We are particularly gratified by
our ability to achieve a solid return on equity considering the operating
environment and the significant investments we made during the fiscal year in
our U.S. and European businesses."
"Our global clearing business continues to grow and provide a solid
base of recurring earnings. Record level of mergers and acquisitions activities
offset the impact of a challenging investment banking environment as we
participated in a number of significant transactions during both the quarter and
year. Our institutional equities and fixed income businesses also performed
well, with our risk management disciplines having served us well in the
turbulent markets."
A brief discussion of the firm's business segments follows:
CAPITAL MARKETS
Full Year
Net revenues in Capital Markets, which includes Institutional Equities, Fixed
Income and Investment Banking, were $3.5 billion for the fiscal year ended
November 30, 2000, relatively flat versus the comparable prior year period.
o Institutional Equities net revenues for the full year rose 35.8% to $1.5
billion from $1.1 billion in the comparable prior year period, driven by
strong performances across the board. Active equity markets characterized
by increased volatility and volume drove revenues in these areas.
o Fixed Income net revenues were $1.1 billion, down 22.0% from $1.4 billion
in the comparable prior year period, due to reduced customer volumes
resulting in lower levels of activity in all areas.
o Investment Banking net revenues for the full year were $965.4 million, down
6.7% from $1.0 billion in the comparable prior year period, due to lower
levels of fixed income underwriting activity, particularly in the high
yield and investment grade debt areas. An increase in mergers and
acquisitions and equity underwriting activity helped offset the decline in
fixed income underwriting.
Fourth Quarter
Capital Markets net revenues for the fourth quarter were $866.8 million, up 5.2%
from $823.7 million for the three-month period ended November 26, 1999.
o Institutional Equities net revenues were up 19.0% in the quarter to $296.9
million, versus $249.5 million in the comparable prior year period,
principally attributable to increases in over-the-counter and specialist
areas. Institutional commission revenues reached a record for the quarter,
benefiting from the increased average trading volumes on both the NYSE and
NASDAQ during the quarter.
o Fixed Income net revenues were $341.0 million, up 27.6% from $267.2 million
in the comparable prior year period, despite a difficult fixed income
trading environment. Increased activity in mortgage- and asset-backed
securities, government bond trading and foreign exchange contributed to the
growth. The significant increase in mortgage-backed securities revenues
during the quarter was primarily due to increased securitization activities
and servicing revenues attributable to the firm's sub-performing and
non-performing mortgage operations.
o Investment Banking net revenues were $229.0 million, down 25.4% from $307.1
million in the comparable prior year period, primarily due to a significant
decline in merchant banking revenues. Underwriting revenues were also down,
noting a difficult fixed income underwriting environment and a
deteriorating equity underwriting market late in the fourth quarter. Record
quarterly revenues in mergers and acquisitions helped offset the decline in
underwriting and merchant banking revenues during the quarter.
GLOBAL CLEARING SERVICES
Full Year
Net revenues in Global Clearing Services were $1.1 billion, up 23.6% from $869.2
million in the comparable prior year period, due to higher transaction volume
and higher levels of customer margin debt and customer short balances. Average
customer margin debt balances for the year were $56.4 billion, up 35.8% versus
the comparable prior year period. The number of clearing clients continues to
grow with total clients reaching approximately 2,900 at the end of our fiscal
year, reflecting the net addition of approximately 100 new accounts over the
prior year levels.
Fourth Quarter
Quarterly net revenues were $277.8 million, an increase of 20.3% from $231.0
million in the comparable prior year period, resulting from higher transaction
volume and customer margin debt balances. Customer margin debt balances averaged
$52.9 billion, up from $44.4 billion in the prior year period.
WEALTH MANAGEMENT
Full Year
Net revenues in Wealth Management, which includes Asset Management and Private
Client Services, were $683.8 million for the year, up 17.4% versus $582.5
million in the comparable prior year period. Active equity markets and strong
customer volumes contributed to the increase in revenues from our private client
services area. The continued growth in assets under management and an increase
in management fees resulted in increased revenues from our asset management
business. As of November 30, 2000 assets under management stood at $19.5
billion, up 49.5% from last year, and assets from alternative investment
products grew 125.0% to $4.5 billion under management, from $2.0 billion last
year. Additionally, mutual funds under management rose 129.1% during the year to
$4.1 billion as of November 30, 2000.
Fourth Quarter
Wealth Management net revenues for the quarter declined 8.9% to $159.1 million
from $174.6 million in the comparable prior year period. Increased revenues from
our private client services business helped offset a decrease in revenues from
our asset management business. The decrease in asset management revenues was
primarily driven by a decline in performance-based fees due to difficult market
conditions, partially offset by an increase in management fees on the firm's
mutual fund and alternative investment fund products.
EXPENSES
Full Year
o For the 12-months ended November 30, 2000 compensation as a percentage of
net revenues was 51.4% versus 49.4% for the comparable period a year ago.
The increase reflects the significant investment that has been made in the
expansion of our U.S. and European investment banking and capital markets
businesses, as well as a more competitive compensation environment.
o Non-compensation expenses for the full year were $1.5 billion, up 18.1%
from $1.3 billion the prior year, attributable in large part to increases
in expenses related to communications and technology, employment agency
fees, professional fees and increased litigation reserves pertaining to the
Henryk de Kwiatkowski legal matter.
Fourth Quarter
o Compensation as a percentage of net revenues was 52.8% versus 48.5% for the
quarter ended November 30, 2000 and the three-months ended November 26,
1999, respectively. The increase reflects the significant investment that
has been made in the expansion of our U.S. and European investment banking
and capital markets businesses, as well as a more competitive compensation
environment.
o Non-compensation expenses were $367.5 million for the quarter, up 11.2%
from the three-month period ended November 26, 1999 due to increases in
advertising and market development costs and employment agency fees in
connection with the European expansion.
As of November 30, 2000 total capital, including stockholders' equity
and long-term borrowings, was $ 26.3 billion. Book value as of November 30, 2000
was $31.51 per share, based on 158,039,960 shares outstanding. Book value
reflects a $0.40 per share tax benefit associated with the November 30, 2000
distribution of 5.8 million shares from the Capital Accumulation Plan. The
Company repurchased approximately 17 million shares of its common stock during
the year.
Quarterly Cash Dividends Declared
The Board of Directors declared a regular quarterly cash dividend of 15
cents per share on the outstanding shares of the company's common stock, payable
January 31, 2001 to stockholders of record on January 17, 2001.
Share Repurchase Program Authorized
Separately, the Board of Directors of the Company approved an amendment
to the Stock Repurchase Program to allow the Company to purchase up to $1.2
billion in aggregate cost of common stock. The share repurchase program will be
utilized primarily to acquire shares of common stock in order to mitigate the
dilutive effect of the company's stock award plan. During fiscal year 2000, the
company acquired approximately $235.3 million under the previous $500 million
repurchase program authorization. The purchases under the new $1.2 billion
repurchase authorization may be made periodically in 2001 or beyond in the open
market or through privately negotiated transactions.
Founded in 1923, The Bear Stearns Companies Inc. is the parent company
of Bear, Stearns & Co. Inc., a leading worldwide investment banking and
securities trading and brokerage firm serving corporations, governments,
institutions and individuals worldwide. With approximately $26.3 billion in
total capital, the company's business includes corporate finance and mergers and
acquisitions, public finance, institutional equities and fixed income sales and
trading, private client services, foreign exchange and futures sales and
trading, equity and fixed income research, derivatives, asset management and
custody services. Through Bear, Stearns Securities Corp., it offers prime broker
and broker dealer services, including securities lending. Headquartered in New
York City, the company has approximately 11,200 employees located in domestic
offices in Atlanta, Boston, Chicago, Dallas, Denver, Los Angeles, San Francisco
and San Juan; and an international presence in Beijing, Buenos Aires, Dublin,
Hong Kong, London, Lugano, Sao Paulo, Seoul, Shanghai, Singapore and Tokyo. For
additional information about Bear Stearns, please visit our Web site at
http://www.bearstearns.com.
***
Financial Tables Attached
Certain statements contained in this discussion are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to risks and uncertainties, which could
cause actual results to differ materially from those discussed in the
forward-looking statements. For a discussion of the risks and uncertainties that
may affect the company's future results, please see "Management's Discussion and
Analysis of Financial Condition and Results of Operations" and "Risk Management"
in the company's Current Report on Form 8-K dated September 28, 2000 and
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" and "Quantitative and Qualitative Disclosures about Market Risk" in
the company's Quarterly Reports on Form 10-Q for fiscal year 2000, which have
been filed with the Securities and Exchange Commission.
A conference call to discuss the firm's results will be held at 9:30 a.m.,
E.S.T. The call will be open to the public. Those wishing to listen to the
conference call should dial 1-800-297-9150 (or 1-703-871-3025 for international
callers) at least 10 minutes prior to the commencement of the call to ensure
connection. The conference call will also be accessible through our Web site at
http://www.bearstearns.com. For those unable to listen to the live broadcast of
the call, a replay will be available on our Web site or by dialing
1-888-266-2081 (or 1-703-925-2533 for international callers) approximately one
hour after the completion of the conference call. The passcode for the replay
numbers is 4862939. If you have any questions regarding obtaining access to the
conference call, please contact Rebecca Haas at 1-212-272-8188 or via email at
[email protected].
<PAGE>
<TABLE>
THE BEAR STEARNS COMPANIES INC
SEGMENT DATA
(UNAUDITED)
<CAPTION>
Percentage
Three-Months Ended Percentage Change From Twelve-Months Ended Change
--------------------------------------- ------------------------ -------------------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
November 30, November 26, August 25, November 26, August 25, November 30, November 26,
2000 1999 2000 1999 2000 2000 1999
--------------------------------------- ------------------------ --------------------------
(In thousands) (In thousands)
NET REVENUES
Capital Markets
Institutional Equities $ 296,859 $ 249,472 $ 358,019 19% (17%) $ 1,452,292 $ 1,069,640 36%
Fixed Income 340,962 267,155 233,309 28% 46% 1,092,568 1,400,608 (22%)
Investment Banking 229,004 307,063 220,414 (25%) 4% 965,379 1,035,180 (7%)
------------ ------------ ---------- ----------- ------------
Total 866,825 823,690 811,742 5% 7% 3,510,239 3,505,428 0%
Global Clearing Services 277,765 230,973 241,691 20% 15% 1,074,498 869,168 24%
Wealth Management 159,061 174,647 160,075 (9%) (1%) 683,791 582,530 17%
Other (a) 73,177 51,772 57,970 41% 26% 207,150 159,205 30%
------------ ------------ ---------- ----------- ------------
Total Net Revenues $ 1,376,828 $ 1,281,082 $1,271,478 7% 8% $ 5,475,678 $ 5,116,331 7%
============ ============ ========== =========== ============
PRE-TAX INCOME
Capital Markets $ 206,395 $ 162,648 $ 150,852 27% 37% $ 899,101 $ 1,048,177 (14%)
Global Clearing Services 109,530 90,887 100,966 21% 8% 466,217 334,796 39%
Wealth Management 20,640 36,481 31,026 (43%) (33%) 127,856 111,884 14%
Other (a) (54,247) 39,880 (13,261) (236%) (309%) (321,651) (166,885) (93%)
------------ ------------ ---------- ----------- ------------
Total Pre-Tax Income $ 282,318 $ 329,896 $ 269,583 (14%) 5% $ 1,171,523 $ 1,327,972 (12%)
============ ============ ========== =========== ============
(a) Other is comprised of consolidation/elimination entries, unallocated
revenues (predominantly interest), corporate administrative functions (including
the accrual related to the Henryk de Kwiatkowski verdict for the twelve-months
ended November 2000), and costs related to the Capital Accumulation Plan for
Senior Managing Directors.
Note: Certain reclassifications have been made to prior period amounts to
conform to the current presentation.
</TABLE>
<PAGE>
<TABLE>
THE BEAR STEARNS COMPANIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<CAPTION>
Three-Months Ended Twelve-Months Ended
-------------------------------- --------------------------------
November 30, November 26, November 30, November 26,
2000 1999 2000 1999
-------------- -------------- -------------- --------------
(In thousands, except share data)
<S> <C> <C> <C> <C>
Revenues
Commissions $ 312,979 $ 264,995 $ 1,207,122 $ 1,022,324
Principal transactions 563,886 499,135 2,253,623 2,277,771
Investment banking 241,024 309,536 1,021,969 1,056,000
Interest and dividends 1,504,096 1,128,519 5,642,361 4,023,365
Other income 46,862 44,441 151,494 118,687
-------------- -------------- -------------- --------------
Total Revenues 2,668,847 2,246,626 10,276,569 8,498,147
Interest expense 1,292,019 965,544 4,800,891 3,381,816
-------------- -------------- -------------- --------------
Revenues, net of interest expense 1,376,828 1,281,082 5,475,678 5,116,331
-------------- -------------- -------------- --------------
Non-interest expenses
Employee compensation and benefits 727,011 620,753 2,814,193 2,526,700
Floor brokerage, exchange and clearance fees 38,650 39,492 150,340 151,362
Communications and technology 124,656 119,640 458,291 420,936
Occupancy 34,759 33,601 134,596 136,973
Advertising and market development 33,374 25,284 125,153 97,432
Other expenses 136,060 112,416 621,582 454,956
-------------- -------------- -------------- --------------
Total non-interest expenses 1,094,510 951,186 4,304,155 3,788,359
-------------- -------------- -------------- --------------
Income before provision for income taxes 282,318 329,896 1,171,523 1,327,972
Provision for income taxes 87,129 122,353 398,340 499,378
-------------- -------------- -------------- --------------
Net income $ 195,189 $ 207,543 $ 773,183 (3) $ 828,594
============== ============== ============== ==============
Net income applicable to common shares $ 185,411 $ 197,765 $ 734,070 $ 789,481
============== ============== ============== ==============
Adjusted net income used for earnings per share(1) $ 201,625 $ 215,979 $ 813,554 $ 879,141
============== ============== ============== ==============
Basic earnings per share $ 1.37 $ 1.32 $ 5.37 $ 5.33
============== ============== ============== ==============
Diluted earnings per share $ 1.36 $ 1.32 $ 5.35 $ 5.33
============== ============== ============== ==============
Weighted average common and common
equivalent shares outstanding:
Basic 147,585,214 164,238,098 151,437,116 164,822,669
============== ============== ============== ==============
Diluted 148,697,431 164,238,098 152,034,249 164,822,669
============== ============== ============== ==============
Cash dividends declared
per common share $ 0.15 $ 0.15 $ 0.55 (4) $ 0.58 (2)
============== ============== ============== ==============
(1) Represents net income reduced for preferred stock dividends and increased
for costs related to the Capital Accumulation Plan (the "Plan"). For earnings
per share, the costs related to the Plan are added back as the shares related to
such Plan are included in weighted average common and common equivalent shares
outstanding.
(2) Reflects all stock dividends declared through October 29, 1999.
(3) These results include an after-tax charge of $96.0 million, or 63 cents per
share, attributable to increased litigation reserves following the jury verdict
in the Henryk de Kwiatkowski case.
(4) This cash dividend relates to the quarter ended December 31, 1999 ($0.15),
the two-month period ended February 25, 2000 ($0.10, declared to coincide with
the Company's new quarterly periods resulting from the Company's change in
fiscal year-end) and the quarters ended May 26, 2000 ($0.15) and August 25, 2000
($0.15).
</TABLE>
<PAGE>
<TABLE>
THE BEAR STEARNS COMPANIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<CAPTION>
Three-Months Ended
----------------------------------
November 30, August 25,
2000 2000
--------------- ---------------
(In thousands, except share data)
<S> <C> <C>
Revenues
Commissions $ 312,979 $ 262,042
Principal transactions 563,886 528,202
Investment banking 241,024 236,897
Interest and dividends 1,504,096 1,353,628
Other income 46,862 35,236
--------------- ---------------
Total Revenues 2,668,847 2,416,005
Interest expense 1,292,019 1,144,527
--------------- ---------------
Revenues, net of interest expense 1,376,828 1,271,478
--------------- ---------------
Non-interest expenses
Employee compensation and benefits 727,011 663,999
Floor brokerage, exchange and clearance fees 38,650 35,820
Communications and technology 124,656 107,432
Occupancy 34,759 33,064
Advertising and market development 33,374 32,531
Other expenses 136,060 129,049
--------------- ---------------
Total non-interest expenses 1,094,510 1,001,895
--------------- ---------------
Income before provision for income taxes 282,318 269,583
Provision for income taxes 87,129 88,147
--------------- ---------------
Net income $ 195,189 $ 181,436
=============== ===============
Net income applicable to common shares $ 185,411 $ 171,658
=============== ===============
Adjusted net income used for earnings per share (1) $ 201,625 $ 197,567
=============== ===============
Basic earnings per share $ 1.37 $ 1.33
=============== ===============
Diluted earnings per share $ 1.36 $ 1.32
=============== ===============
Weighted average common and common
equivalent shares outstanding:
Basic 147,585,214 148,816,237
=============== ===============
Diluted 148,697,431 149,242,192
=============== ===============
Cash dividends declared
per common share $ 0.15 $ 0.15
=============== ===============
(1) Represents net income reduced for preferred stock dividends and increased
for costs related to the Plan. For earnings per share, the costs related to the
Plan are added back as the shares related to such Plan are included in weighted
average common and common equivalent shares outstanding.
</TABLE>
<PAGE>
<TABLE>
THE BEAR STEARNS COMPANIES INC.
SELECTED FINANCIAL INFORMATION
(UNAUDITED)
(In thousands, except share and employee data)
<CAPTION>
Twelve-Months Ended Quarters Ended
-------------------------------- -----------------------------
November 30, November 26, November 30, August 25,
2000 1999 2000 2000
------------------------------ -----------------------------
<S> <C> <C> <C> <C>
Income Statement
Revenues, net of interest expense $ 5,475,678 $ 5,116,331 $ 1,376,828 $ 1,271,478
Net income $ 773,183 $ 828,594 $ 195,189 $ 181,436
Net income applicable to common shares (1) $ 734,070 $ 789,481 $ 185,411 $ 171,658
Adjusted net income used for earnings per share $ 813,554 $ 879,141 $ 201,625 $ 197,567
Earnings per common share (2):
Basic $ 5.37 $ 5.33 $ 1.37 $ 1.33
Diluted $ 5.35 $ 5.33 $ 1.36 $ 1.32
Financial Ratios
Return on average common equity (annualized for quarters ended) 19.1% 21.9% 18.8% 18.8%
Adjusted pre-tax profit margin (3) 24.0% 29.1% 22.6% 24.8%
Pre-tax profit margin (4) 21.4% 26.0% 20.5% 21.2%
After-tax profit margin (5) 14.1% 16.2% 14.2% 14.3%
Compensation & benefits/Revenues, net of interest expense 51.4% 49.4% 52.8% 52.2%
Balance Sheet
Stockholders' equity, at period end $ 5,654,288 $ 4,941,947 $ 5,654,288 $ 4,911,600
Total stockholders' equity and trust issued preferred securities, at
period end $6,154,288 $ 5,441,947 $ 6,154,288 $ 5,411,600
Total capital, at period end $ 26,251,931 $ 21,353,339 $ 26,251,931 $ 24,768,473
Book value per common share, at period end $ 31.51 $ 26.93 $ 31.51 $ 29.58
Other Data
Employees, at period end 11,201 10,081 11,201 10,807
Assets under management, at period end $ 19,500,000 $ 13,000,000 $ 19,500,000 $ 16,600,000
Common shares and common share equivalents outstanding, at period end 158,039,960 165,956,810 158,039,960 159,098,866
Weighted average common and common equivalent shares outstanding:
Basic 151,437,116 164,822,669 147,585,214 148,816,237
Diluted 152,034,249 164,822,669 148,697,431 149,242,192
(1) The sum of the quarters' net income applicable to common shares amounts does
not equal the full fiscal year amount due to rounding.
(2) The sum of the quarters' earnings per common share amounts does not equal
the full fiscal year amount due to the effect of averaging the number of shares
of common stock and common stock equivalents throughout the year.
(3) Represents the ratio of income before both CAP Plan costs and provision for
income taxes to revenues, net of interest expense.
(4) Represents the ratio of income before provision for income taxes to
revenues, net of interest expense.
(5) Represents the ratio of net income to revenues, net of interest expense.
<PAGE>
THE BEAR STEARNS COMPANIES INC.
SELECTED FINANCIAL INFORMATION
(UNAUDITED)
(In thousands, except share and employee data)
<CAPTION>
Quarters Ended
----------------------------
May 26, February 25,
2000 2000
----------------------------
<S> <C> <C>
Income Statement
Revenues, net of interest expense $ 1,321,306 $ 1,506,066
Net income $ 118,377 $ 278,181
Net income applicable to common shares (1) $ 108,599 $ 268,403
Adjusted net income used for earnings per share $ 117,084 $ 297,278
Earnings per common share (2):
Basic $ 0.77 $ 1.89
Diluted $ 0.77 $ 1.89
Financial Ratios
Return on average common equity (annualized for quarters ended) 11.0% 27.9%
Adjusted pre-tax profit margin (3) 13.7% 33.5%
Pre-tax profit margin (4) 12.5% 30.1%
After-tax profit margin (5) 9.0% 18.5%
Compensation & benefits/Revenues, net of interest expense 53.3% 47.7%
Balance Sheet
Stockholders' equity, at period end $ 4,865,282 $ 4,937,291
Total stockholders' equity and trust issued preferred securities,
at period end $ 5,365,282 $ 5,437,291
Total capital, at period end $ 24,614,465 $ 23,185,770
Book value per common share, at period end $ 28.74 $ 28.21
Other Data
Employees, at period end 10,373 10,210
Assets under management, at period end $ 14,600,000 $ 13,700,000
Common shares and common share equivalents outstanding,
at period end 160,568,727 162,607,443
Weighted average common and common equivalent shares outstanding:
Basic 152,446,615 157,641,253
Diluted 152,624,273 157,685,693
(1) The sum of the quarters' net income applicable to common shares amounts does
not equal the full fiscal year amount due to rounding.
(2) The sum of the quarters' earnings per common share amounts does not equal
the full fiscal year amount due to the effect of averaging the number of shares
of common stock and common stock equivalents throughout the year.
(3) Represents the ratio of income before both CAP Plan costs and provision for
income taxes to revenues, net of interest expense.
(4) Represents the ratio of income before provision for income taxes to
revenues, net of interest expense.
(5) Represents the ratio of net income to revenues, net of interest expense.
</TABLE>
