^L<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 1995
Commission file number 0-14199
ALEX. BROWN INCORPORATED
(Exact name of registrant as specified in its charter)
Maryland 52-1434118
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
135 E. Baltimore St., Baltimore, MD
21202
(Address of principal executive offices)
(Zip code)
410-727-1700
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock, $.10 par value 14,883,521
(Class) (Outstanding at May 1, 1995)
</PAGE>
<PAGE>
ALEX. BROWN INCORPORATED AND SUBSIDIARIES
INDEX
Page
Part I - Financial Information
Consolidated Statements of Earnings (Unaudited)
for the three month periods ended March 31, 1995
and March 25, 1994 1
Consolidated Statements of Financial Condition
as of March 31, 1995 (Unaudited) and December 31, 1994 2-3
Consolidated Statements of Stockholders' Equity
(Unaudited) for the three month periods ended
March 31, 1995 and March 25, 1994 4
Consolidated Statements of Cash Flows (Unaudited)
for the three month periods ended March 31, 1995
and March 25, 1994 5
Notes to Consolidated Financial Statements
(Unaudited) 6-7
Management's Discussion and Analysis of Results of
Operations and Financial Condition 8-10
Part II - Other Information 11
Signatures 12
Exhibit -
(11) Calculation of Earnings Per Share (Unaudited) 13
</PAGE>
<PAGE>
<TABLE>
<CAPTION>
ALEX. BROWN INCORPORATED AND SUBSIDIARIES
Consolidated Statements of Earnings
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 31, March 25,
1995 1994
--------- ---------
Revenues:
<S> <C> <C>
Commissions $ 39,619 $ 38,044
Investment banking 40,267 51,263
Principal transactions 28,504 35,372
Interest and dividends 21,146 15,279
Advisory and other 21,800 22,454
--------- ---------
Total 151,336 162,412
--------- ---------
Operating expenses:
Compensation and benefits 82,245 87,482
Communications 7,251 6,426
Occupancy and equipment 8,573 6,625
Interest 6,779 5,561
Floor brokerage, exchange
and clearing fees 4,197 3,808
Other operating expenses 14,954 13,817
-------- --------
Total 123,999 123,719
-------- --------
Earnings before income taxes 27,337 38,693
Income taxes 10,935 15,671
-------- --------
Net earnings $ 16,402 $ 23,022
======== ========
Earnings per share:
Primary $ 1.10 $ 1.46
======== ========
Fully diluted $ 0.96 $ 1.28
======== ========
Weighted average number of
shares outstanding:
Primary 14,940 15,754
======== ========
Fully diluted 17,583 18,322
======== ========
Cash dividends declared
per share $ 0.175 $ 0.15
======== ========
</TABLE>
See accompanying notes to consolidated financial statements.
(1)
</PAGE>
<PAGE>
<TABLE>
<CAPTION>
ALEX. BROWN INCORPORATED AND SUBSIDIARIES
Consolidated Statements of Financial Condition
(in thousands)
ASSETS
March 31, December 31,
1995 1994
----------- ------------
(Unaudited)
<S> <C> <C> <C> <C>
Cash and cash equivalents $ 33,715 $ 24,024
Receivables:
Customers 844,642 800,017
Brokers, dealers and clearing organizations 187,779 237,479
Current federal and state income taxes 6,042 581
Other 36,081 40,308
Firm trading securities (Note 2) 114,143 93,352
Securities purchased under agreements
to resell 3,032 -
Deferred income taxes 17,671 17,675
Memberships in exchanges, at cost
(market $2,271 and $2,259) 323 323
Office equipment and leasehold improvements,
at cost less accumulated depreciation and
amortization of $39,022 and $37,177 31,799 29,405
Investment securities (Note 5) 39,218 32,835
Loans to employees to purchase convertible
subordinated debentures (Note 4) 36,564 33,412
Other assets 58,570 37,022
---------- ----------
$1,409,579 $1,346,433
========== ==========
</TABLE>
(continued)
(2)
</PAGE>
<PAGE>
<TABLE>
ALEX. BROWN INCORPORATED AND SUBSIDIARIES
Consolidated Statements of Financial Condition (continued)
(in thousands)
LIABILITIES AND STOCKHOLDERS' EQUITY
March 31, December 31,
1995 1994
----------- ------------
(Unaudited)
<S> <C> <C> <C>
Bank loans $ 105,806 $ 72,943
Payables:
Cash management facility 64,771 62,296
Customers, including free credit balances 279,211 307,245
Brokers, dealers and clearing organizations 352,743 279,637
Current federal and state income taxes - 2,145
Other 114,812 163,537
Securities sold, not yet purchased (Note 2) 26,224 25,842
5.75% Convertible subordinated debentures 24,556 24,690
Employee convertible subordinated debentures
(Note 4) 39,935 34,670
Stockholders' equity (Note 4):
Common stock of $.10 par value
Authorized 50,000,000 shares
Issued 14,861,301 shares in 1995
and 14,290,012 shares in 1994 1,486 1,429
Additional paid-in capital 95,104 81,042
Loans to employees to purchase common stock (10,883) (11,011)
Retained earnings 315,814 301,968
----------- -----------
Total stockholders' equity 401,521 373,428
----------- -----------
$1,409,579 $1,346,433
=========== ===========
</TABLE>
See accompanying notes to consolidated financial statements.
(3)
</PAGE>
<PAGE>
<TABLE>
<CAPTION>
ALEX. BROWN INCORPORATED AND SUBSIDIARIES
Consolidated Statements of Stockholders' Equity
(in thousands)
(Unaudited)
Loans to
Employees Total
Additional To Purchase Stock-
Common Paid-in Common Retained holders'
Stock Capital Stock Earnings Equity
------- --------- ---------- -------- ----------
Three months ended March 31, 1995
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1994 $1,429 $ 81,042 $(11,011) $301,968 $373,428
Net earnings - - - 16,402 16,402
Issuance of 447,256 shares of
common stock 45 10,080 (433) - 9,692
Payments on employee loans - - 525 - 525
Repurchase and retirement of
6,025 shares of common stock (1) (180) - - (181)
Compensation payable in
common stock 13 4,162 - - 4,175
Loan forgiveness - - 36 - 36
Dividends paid - - - (2,556) (2,556)
------ -------- --------- -------- ---------
Balance at March 31, 1995 $1,486 $ 95,104 $(10,883) $315,814 $401,521
====== ======== ========= ======== =========
Three months ended March 25, 1994
Balance at December 31, 1993 $1,536 $114,014 $(10,902) $241,017 $345,665
Net earnings - - - 23,022 23,022
Issuance of 248,412 shares of
common stock 25 4,125 - - 4,150
Repurchase and retirement of
380,911 shares of common stock (38) (10,380) - - (10,418)
Compensation payable in
common stock 20 5,136 - - 5,156
Dividends paid - - - (2,342) (2,342)
------ -------- --------- --------- ---------
Balance at March 25, 1994 $1,543 $112,895 $(10,902) $261,697 $365,233
====== ======== ========= ========= =========
</TABLE>
See accompanying notes to consolidated financial statements.
(4)
</PAGE>
<PAGE>
<TABLE>
<CAPTION>
ALEX. BROWN INCORPORATED AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Three Months Ended
March 31, March 25,
1995 1994
--------- ---------
Cash flows from operating activities:
<S> <C> <C> <C>
Net earnings $ 16,402 $ 23,022
Reconciliation of net earnings to net cash
used for operating activities:
Depreciation and amortization 2,642 1,823
Non-cash compensation expense 6,795 5,156
Gain on investment securities (5,271) (6,493)
Other (9) 12
(Increase) decrease in assets:
Receivables 3,841 (434,964)
Firm trading securities (20,791) (5,009)
Securities purchased under agreements to resell (3,032) -
Deferred income taxes 4 (13,819)
Other assets (21,743) (15,833)
Increase (decrease) in liabilities:
Payables (5,798) (29,152)
Securities sold, not yet purchased 382 (8,651)
--------- ---------
Net cash used for operating activities (26,578) (483,908)
--------- ---------
Cash flows from financing activities:
Net proceeds (payments):
Short-term loans 35,246 86,741
Securities sold under repurchase agreements - 392,325
Cash management facility 2,475 (14,778)
Payments on term loans (2,383) (2,644)
Issuance of common stock 9,621 3,904
Repurchase of common stock (181) (10,418)
Dividends paid to stockholders (2,556) (2,342)
-------- ---------
Net cash provided by financing activities 42,222 452,788
-------- ---------
Cash flows from investing activities:
Purchase of office equipment and leasehold
improvements (4,841) (2,612)
Purchase of investment securities (5,401) (11,443)
Sale of investment securities 4,289 10,310
-------- ---------
Net cash used for investing activities (5,953) (3,745)
-------- ---------
Net increase (decrease) in cash and cash equivalents 9,691 (34,865)
Cash and cash equivalents at beginning of period 24,024 57,005
--------- ----------
Cash and cash equivalents at end of period $ 33,715 $ 22,140
======== ==========
</TABLE>
See accompanying notes to consolidated financial statements.
(5)
</PAGE>
<PAGE>
ALEX. BROWN INCORPORATED AND SUBSIDIARIES
Notes to Consolidated Financial Statements
March 31, 1995
(Unaudited)
Notes:
(1) The accompanying financial statements do not include all of the information
and footnote disclosures normally included in financial statements prepared
in accordance with generally accepted accounting principles. In the
opinion of management, all adjustments considered necessary to fairly
reflect the Company's financial position and results of normal recurring
adjustments, have been included. Certain items in 1994 have been
reclassified to conform to the current year presentation.
(2) Firm trading securities and securities sold, not yet purchased consisted of
the following (in thousands):
Long Short
03/31/95 12/31/94 03/31/95 12/31/94
-------- -------- -------- --------
United States government
and agencies $ 7,045 $ 4,946 $ 5,634 $ 4,750
Mortgage-backed 5,515 648 - -
States and municipalities 48,971 39,978 114 329
Corporate debt 28,781 29,972 1,648 3,286
Corporate equity 23,831 17,808 18,828 17,477
-------- ------- ------- -------
$114,143 $93,352 $26,224 $25,842
======== ======= ======= =======
(3) In April 1995, the Company declared a $.175 quarterly cash dividend payable
May 10, 1995 to stockholders of record on May 1, 1995.
(4) During 1995, the Company issued $6,259,000 convertible subordinated
debentures to certain employees pursuant to the 1991 Equity Incentive Plan.
The debentures are convertible into the Company's Common Stock three and
four years after the date issued. The Company made loans to employees to
fund the purchases of the debentures. During the first quarter of 1995,
employees converted $446,000 convertible subordinated debentures, which were
issued January 1991 and January 1992, into 36,209 shares of the Company's
Common Stock.
(5) Investment securities at March 31, 1995 and December 31, 1994 included $17.9
million and $13.6 million, respectively, of merchant banking investments.
(6)
</PAGE>
<PAGE>
ALEX. BROWN INCORPORATED AND SUBSIDIARIES
Notes to Consolidated Financial Statements
March 31, 1995
(Unaudited)
Notes (Continued):
(6) COMMITMENTS AND CONTINGENCIES
Letters of Credit
At March 31, 1995, the Company's principal subsidiary, Alex. Brown & Sons
Incorporated, was contingently liable for up to $48,101,000 under unsecured
letters of credit used to satisfy required margin deposits at four
securities clearing corporations.
Litigation
In the course of its investment banking and securities brokerage business,
Alex. Brown & Sons Incorporated has been named a defendant in a number of
lawsuits and may be required to contribute to final settlements in actions,
in which it has not been named a defendant, arising out of its participation
in the underwritings of certain issues. A substantial settlement or
judgment in any of these cases could have a material adverse effect on
the Company. Although the ultimate outcome of such litigation is not
subject to determination at present, in the opinion of management, after
consultation with counsel, the resolution of these matters will not have
a material adverse effect on the Company's consolidated financial
statements.
(7)
</PAGE>
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
Alex. Brown Incorporated (the "Company") is a holding company whose primary
subsidiary is Alex. Brown & Sons Incorporated ("Alex. Brown"), a major
investment banking and securities brokerage firm. The Company, like other
securities firms, is directly affected by general economic and market
conditions, including fluctuations in volume and price levels of securities,
changes in interest rates and demand for investment banking and securities
brokerage services, all of which have an impact on the Company's revenues as
well as its liquidity. Substantial fluctuations can occur in the Company's
revenues and net earnings due to these and other factors.
In periods of reduced market activity, profitability is likely to be adversely
affected because certain expenses, consisting primarily of salaries and
benefits, communications and occupancy expenses, remain relatively fixed.
Accordingly, net earnings for any period should not be considered representative
of any other period.
RESULTS OF OPERATIONS
First Quarter 1995 Compared to First Quarter 1994
Revenues totalled $151.3 million, a 7% decrease as compared to $162.4 million in
the first quarter of 1994. Commission revenues increased 4% to $39.6 million for
the quarter, primarily as a result of increased institutional listed
commissions. Investment banking revenues decreased 21% to $40.3 million,
primarily reflecting declines in underwriting revenues. Partially offsetting
this decline was a 23% increase in merger and advisory revenues which totalled
$15.4 million. Principal transaction revenues decreased 19% to $28.5
million, primarily reflecting declines in revenues from government, mortgage-
backed and high yield trading. Interest and dividend revenues increased 38%
to $21.1 million from $15.3 million due primarily to higher interest rates
and an increase in margin loan balances. Advisory and other revenues decreased
3% to $21.8 million, primarily due to lower gains on merchant banking
investments which totalled $2.5 million in the first quarter of 1995 as
compared to $4.7 million in the first quarter of 1994. Partially offsetting
this decline was an increase of $0.9 million in gains from other investments
which totalled $2.8 million for the quarter.
Operating expenses totalled $124.0 million, a slight increase from $123.7
million in the first quarter of 1994. Compensation and benefits decreased 6%
from $87.5 million to $82.2 million, primarily as a result of decreased
incentive and commission expense. Communications expense increased 13% to $7.3
million, reflecting increased levels of business activity and increased
technology expenditures. Occupancy and equipment expense increased 29% to
$8.6 million, primarily as a result of expansion in several offices,
increased technology expenditures and an expense provision related to vacating
certain office space prior to expiration of the lease of one of the Company's
offices. Interest expense increased 22% to $6.8 million from $5.6 million,
primarily as a result of the need to finance increased margin loans and
interest rate increases. Floor brokerage, exchange and clearing fees
increased 10% to $4.2 million, reflecting an increased volume of listed
trades. Other operating expenses increased 8% to $15.0 million, primarily
reflecting increases in expenses associated with the level of business activity,
which were partially offset by a decline in affiliate expenses.
The Company's effective tax rate for the quarter was 40.0%, compared to 40.5%
for the first quarter of 1994.
(8)
</PAGE>
<PAGE>
As a result of the above, net earnings decreased by 29% to $16.4 million from
$23.0 million in the first quarter of 1994. Primary and fully diluted
earnings per share were $1.10 and $.96, respectively, as compared to $1.46
and $1.28 for the same period in the prior year.
The weighted average number of shares outstanding for purposes of calculating
earnings per share includes shares related to outstanding dilutive stock
options and is affected by the market price of the Company's Common Stock.
Additionally, the calculation of fully diluted earnings assumes the conversion
into Common Stock of the Company's outstanding convertible subordinated debt,
if dilutive. The combination of these factors can result in lower rates of
increase or higher rates of decrease in earnings per share as compared to
the rates of increase or decrease in net earnings.
LIQUIDITY AND CAPITAL RESOURCES
The Company's consolidated statement of financial condition reflects a liquid
financial position. The majority of the long and short securities positions in
Alex. Brown's trading accounts are readily marketable and actively traded.
Customer receivables include margin balances and amounts due on uncompleted
transactions. Receivables from other brokers and dealers generally represent
either current open transactions, which usually settle within a few days, or
securities borrowed transactions which normally can be closed out within a
few days. Most of the Company's receivables are secured by marketable
securities. The Company also has investments in fixed assets and illiquid
securities but such investments are not a significant portion of the Company's
total assets.
High yield securities, also referred to as "junk" bonds, are debt securities and
non-investment grade debt securities which are rated by Standard & Poor's as
lower than BBB. The market for high yield securities can be extremely volatile
and many high yield securities experienced significant price declines in the
past several years. At March 31, 1995, in its high yield operations, Alex.
Brown had $14.4 million of long inventory as compared to $21.3 million of
long inventory and $1.0 million of short inventory at year-end 1994.
As of March 31, 1995, the carrying value of the Company's merchant banking
investments was $17.9 million, compared to $13.6 million at year-end 1994.
Gains related to merchant banking investments were $2.5 million for the
first quarter of 1995, reflecting increases in the carrying value of two
merchant banking investments. It is anticipated that merchant banking
investments will generally have a holding period of three years or more. It
is also anticipated that these activities will be funded with existing
sources of working capital. The Company has no outstanding bridge loans.
From time to time the Company makes subordinated loans to correspondents as part
of its Correspondent Services business. These loans may be secured or unsecured
and are funded through general working capital sources. At March 31, 1995,
$3.6 million of such loans were outstanding.
The Company finances its business through a number of sources, consisting
primarily of paid-in capital, funds generated from operations, free credit
balances in customers' accounts, deposits received on securities loaned,
repurchase agreements and bank loans.
(9)
</PAGE>
<PAGE>
The Company borrows from banks on a short-term basis under arrangements pursuant
to which the amount of funds available to the Company is based on the value of
the securities owned by the Company and customers' margin securities pledged
as collateral. In addition, the Company borrows on a long-term basis from
banks on both an unsecured basis and with fixed assets pledged as collateral.
The Company has historically been able to obtain necessary bank borrowings
and believes that it will continue to be able to do so in the future.
The Company also has a total of $125 million of unsecured and secured
financing from banks available under committed, revolving lines of credit,
of which $25 million expires in August 1995 and $100 million expires in
August 1996.
During the first three months of 1995, the Company repurchased a total of 6,025
shares of its Common Stock at a cost of $0.2 million. As of May 1995, the
Company had a remaining repurchase authorization of approximately 1.4 million
shares. The Company anticipates that, subject to market conditions, it will
make additional repurchases in the future.
Alex. Brown is required to comply with the net capital rule of the Securities
and Exchange Commission. The rule may limit the Company's ability to withdraw
capital from Alex. Brown. Alex. Brown has consistently exceeded minimum net
capital requirements under the rule. At March 31, 1995, Alex. Brown had
aggregate net capital of $225.8 million, which exceeded its capital
requirement by $208.6 million.
Management of the Company believes that existing capital and credit facilities,
when combined with funds generated from operations, will provide the Company
with sufficient resources to meet its present and reasonably foreseeable cash
and capital needs.
RISK MANAGEMENT
The Company records securities transactions on a settlement date basis,
generally the fifth business day following the transaction. In June 1995,
the securities industry plans to begin to settle most securities transactions
on the third business day following the transaction. The risk of loss on
unsettled transactions is identical to settled transactions which have not
cleared and relates to customers' or brokers' inability or refusal to meet the
terms of their contracts. The Company monitors its exposure to market and
counterparty risk through a variety of financial, position and credit exposure
reporting and control procedures. The Risk Management, Credit and Investment
Committees, each of which meets on a regular basis, comprise members of senior
management. Each trading department is subject to internal position limits
established by the Risk Management Committee which also reviews positions and
results of the trading departments. Alex. Brown's Credit Committee establishes
and reviews appropriate credit limits for customers and brokers seeking
margin, repurchase and reverse repurchase agreement facilities and securities
borrowed and securities loaned arrangements. The Investment Committee
approves investment purchases and sales and reviews holdings.
(10)
</PAGE>
<PAGE>
Part II - Other Information
Item 1 - Legal Proceedings
Alex. Brown is a defendant in a number of lawsuits relating to its
Investment Banking and securities brokerage business. The Company is also a
member of a defendant class of underwriters in a number of lawsuits relating
to its participation in underwritings and, in addition, may be required to
contribute to any adverse final judgments or settlements in actions arising
out of its participation in the underwritings of certain issues in which it
is not a defendant. Approximately 30 underwritten public offerings in which
Alex. Brown has participated are the subject of litigation. The Company
cannot state what the eventual outcome of these pending actions will be.
The following are descriptions of certain legal proceedings involving or
affecting the Company. A substantial settlement or judgment in any of these
cases could have a material adverse effect on the Company. While there can
be no assurances of a favorable determination of these actions, the Company
believes there are meritorious defenses to all of the cases described herein,
and intends to defend each action vigorously.
Industrial Funding Corp. On January 16, 1992, Alex. Brown was named as a
defendant in an action pending before the United States District Court for the
Northern District of California, entitled Wade v. Industrial Funding Corp., et
al., Index No. C-92-0343. The action pertained to the offering of shares of
Industrial Funding Corp. ("IFC"), for which the Company Plaintiffs sued as
representatives of a purported class consisting of all persons who purchased
IFC shares between December 8, 1989 and February 28, 1991. Plaintiffs
alleged violations of the federal securities laws in connection with alleged
untrue statements and omissions of material facts, and punitive damages in
an unspecified amount. On December 19, 1994 the Court approved a settlement
of this litigation. The settlement will not have a material effect on the
Company.
Banca Cremi, S.A. On April 11, 1995, Alex. Brown was named as a defendant
in an action pending in the United States District Court for the District of
Maryland entitled Banca Cremi, S.A., et al. v. Alex. Brown & Sons
Incorporated, et al., Civil Action No. JFM-95-109. The action alleges that
Alex. Brown recommended unsuitable investments to Banca Cremi, a Mexican bank
and thereby violated federal and state laws. The complaint alleges
compensatory damages in excess of $26 million.
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits
(11) Statement re: Calculation of Earnings Per Share
(b) No reports on Form 8-K were filed during the quarter ended
March 31, 1995
(11)
</PAGE>
<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.
ALEX. BROWN INCORPORATED
(Registrant)
Date: May 9, 1995 A. B. KRONGARD
Chairman and Chief Executive Officer
Date: May 9, 1995 BEVERLY L. WRIGHT
Principal Financial Officer
(12)
</PAGE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit 11
ALEX. BROWN INCORPORATED AND SUBSIDIARIES
Calculation of Earnings Per Share
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended Three Months Ended
March 31, 1995 March 25, 1994
-------------------- ------------------
Fully Fully
Primary Diluted Primary Diluted
------- -------- ------- -------
Weighted average shares outstanding:
<S> <C> <C> <C> <C>
Common stock 14,618 14,618 15,466 15,466
Stock options 322 389 288 323
Convertible subordinated
debentures - 2,576 - 2,533
------- ------- ------- -------
14,940 17,583 15,754 18,322
======= ======= ======= =======
Net earnings for calculating
earnings per share:
Net earnings $16,402 $16,402 $23,022 $23,022
Interest expense on
convertible subordinated
debentures, net of tax - 564 - 476
------- ------- ------- -------
$16,402 $16,966 $23,022 $23,498
======= ======= ======= =======
Earnings per share $ 1.10 $ 0.96 $ 1.46 $ 1.28
======= ======= ======= =======
</TABLE>
(13)
</PAGE>
<TABLE> <S> <C>
<ARTICLE> BD
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> $33,715
<RECEIVABLES> $1,074,544
<SECURITIES-RESALE> $3,032
<SECURITIES-BORROWED> $0<F1>
<INSTRUMENTS-OWNED> $153,361
<PP&E> $31,799
<TOTAL-ASSETS> $1,409,579
<SHORT-TERM> $87,762
<PAYABLES> $811,537
<REPOS-SOLD> $0
<SECURITIES-LOANED> $0<F2>
<INSTRUMENTS-SOLD> $26,224
<LONG-TERM> $82,535
<COMMON> $1,486
$0
$0
<OTHER-SE> $400,035
<TOTAL-LIABILITY-AND-EQUITY> $1,409,579
<TRADING-REVENUE> $28,504
<INTEREST-DIVIDENDS> $21,146
<COMMISSIONS> $39,619
<INVESTMENT-BANKING-REVENUES> $40,267
<FEE-REVENUE> $21,800
<INTEREST-EXPENSE> $6,779
<COMPENSATION> $82,245
<INCOME-PRETAX> $27,337
<INCOME-PRE-EXTRAORDINARY> $0
<EXTRAORDINARY> $0
<CHANGES> $0
<NET-INCOME> $16,402
<EPS-PRIMARY> $1.10
<EPS-DILUTED> $0.96
<FN>
<F1>Included as part of receivables.
<F2>Included as part of payables.
</FN>
