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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K/A
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED NOVEMBER 30, 1995
COMMISSION FILE NUMBER 1-9085
MORGAN STANLEY GROUP INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE
(STATE OR OTHER JURISDICTION OF
INCORPORATION OR ORGANIZATION)
1585 BROADWAY
NEW YORK, N.Y.
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
13-2838811
(I.R.S. EMPLOYER
IDENTIFICATION NO.)
10036
(ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (212) 761-4000
SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:
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<CAPTION>
NAME OF EACH EXCHANGE
TITLE OF EACH CLASS ON WHICH REGISTERED
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<S> <C>
Common Stock, $1 par value New York Stock Exchange
Boston Stock Exchange
Chicago Stock Exchange
Pacific Stock Exchange
9.36% Cumulative Preferred Stock, $25 stated value New York Stock Exchange
Depositary Shares, each representing 1/8 of a share of 8.88% New York Stock Exchange
Cumulative Preferred Stock, $200 stated value
Depositary Shares, each representing 1/8 of a share of 8 3/4% New York Stock Exchange
Cumulative Preferred Stock, $200 stated value
Depositary Shares, each representing 1/8 of a share of 7 3/8% New York Stock Exchange
Cumulative Preferred Stock, $200 stated value
7.82% Capital Units; 7.80% Capital Units; 9.00% Capital Units; New York Stock Exchange
8.40% Capital Units; 8.20% Capital Units*
AMEX Hong Kong 30 IndexSM Call Warrants Expiring November 4, 1996; American Stock Exchange
AMEX Hong Kong 30 IndexSM Call Warrants Expiring October 3, 1997+
Japan IndexSM Call Warrants Expiring May 28, 1996+ American Stock Exchange
Nikkei 225 Index Call Warrants Expiring August 15, 1997 American Stock Exchange
6 1/2% PERQSSM Due July 1, 1997; 6% PERQSSM Due October 1, 1997; American Stock Exchange
7% PERQSSM Due November 15, 1997; 6% PERQSSM Due February 16, 1999++
Exchangeable Notes Due September 30, 2000; Exchangeable New York Stock Exchange
Notes Due December 31, 2001+++
</TABLE>
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* Each Capital Unit consists of (a) a $25 principal amount Subordinated
Debenture (of the same rate) of Morgan Stanley Finance plc guaranteed by the
Registrant and (b) a related purchase contract of the Registrant requiring
the holder to purchase one Depositary Share representing 1/8 of a share of
the Registrant's Cumulative Preferred Stock (of the same rate), $200 stated
value. The Capital Units and the Depositary Shares are registered on the New
York Stock Exchange.
+ The "AMEX Hong Kong 30 Index" and the "Japan Index" are service marks of the
American Stock Exchange.
++ "PERQS" and "Performance Equity-linked Redemption Quarterly-pay Securities"
are service marks of the Registrant. The issue price and amount payable at
maturity with respect to the PERQS are based on the share price of certain
non-affiliated companies.
+++ Notes which are exchangeable on a defined date for equity securities of
certain non-affiliated companies.
SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT: NONE
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 by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. /X/
Aggregate market value of the voting stock held by non-affiliates of the
Registrant at February 7, 1996 was approximately $5,409,071,114. For purposes of
this information, the outstanding shares of common stock owned by certain
Managing Directors and Principals of certain wholly-owned subsidiaries of the
Registrant, and subject to certain restrictions on voting and disposition, were
deemed to be shares of common stock held by affiliates.
Indicate the number of shares outstanding of each of the Registrant's
classes of common stock, as of the latest practicable date:
As of February 7, 1996, there were 154,087,313 shares of Common Stock, $1
par value, outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
(1) Morgan Stanley Group Inc. 1995 Annual Report to
Stockholders -- Incorporated in part in Form 10-K, Parts I, II and IV.
(2) Morgan Stanley Group Inc. Proxy Statement for its 1996 Annual Meeting
of Stockholders -- Incorporated in part in Form 10-K, Parts I and III.
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NOTE:
On February 26, 1996, Morgan Stanley Group Inc. (the "Company") filed
an Annual Report on Form 10-K for the fiscal year ended November 30, 1995 (the
"Form 10-K") electronically pursuant to the Commission's Electronic Data
Gathering, Analysis, and Retrieval System ("EDGAR"). The Form 10-K included as
an exhibit the Selected Financial Data of the Company ("Exhibit 13.2"). Such
Selected Financial Data (other than the information contained in the column
entitled "Fiscal Period Ended November 30, 1995 Annualized (Unaudited)") was
incorporated by reference in the Form 10-K.
This amendment has been filed in accordance with Rule 103 of Regulation
S-T under the Securities Act of 1933 solely to make minor technical revisions to
the electronic version of the Form 10-K filed pursuant to EDGAR. By this
amendment footnote references have been inserted in the first column of Exhibit
13.2 after the following items: "Earnings applicable to common shares"; "Total
capital"; "Long-term borrowings"; and "Average common and equivalent shares".
These footnote references were not included in the electronic version of the
Form 10-K filed with the Commission but were included in the paper copies of the
Company's Annual Report to Stockholders for fiscal 1995 submitted to the
Commission pursuant to Rule 14a-3(c) under the Securities Exchange Act of 1934.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this amendment to be signed
on its behalf by the undersigned, thereunto duly authorized, on March 7, 1996.
MORGAN STANLEY GROUP INC.
By: /s/ Patricia A. Kurtz
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Patricia A. Kurtz
Assistant Secretary
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EXHIBIT INDEX
Exhibit No. Description
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EX-13.2 Selected Financial Data
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Exhibit 13.2
Selected Financial Data
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<CAPTION>
FISCAL
PERIOD ENDED
NOVEMBER 30, FISCAL Fiscal Fiscal Fiscal
1995 PERIOD ENDED Year Ended Year Ended Year Ended Year Ended
ANNUALIZED NOVEMBER 30, January 31, January 31, January 31, December 31,
(Dollars in Millions, (UNAUDITED) 1995 1995 1994 1993 1991
Except Share and Employee Data) -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCOME STATEMENT: (12 MONTHS) (10 MONTHS)
Revenues:
Investment banking $ 1,453 $ 1,211 $ 919 $ 1,238 $ 965 $ 823
Principal transactions:
Trading 1,346 1,122 1,104 1,459 953 1,320
Investments 122 102 139 158 128 19
Commissions 525 437 449 393 312 271
Interest and dividends 7,127 5,939 6,406 5,660 4,814 4,181
Asset management
and administration 372 310 350 258 200 160
Other 4 3 9 10 10 11
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Total revenues 10,949 9,124 9,376 9,176 7,382 6,785
Interest expense 6,601 5,501 5,875 5,020 4,362 3,924
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Net revenues 4,348 3,623 3,501 4,156 3,020 2,861
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Expenses excluding interest
Compensation and benefits 2,154 1,795 1,733 2,049 1,457 1,396
Other 1,134 945 1,115 907 770 693
Relocation charge -- -- 59 -- -- --
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Total expenses excluding
interest 3,288 2,740 2,907 2,956 2,227 2,089
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Income before income taxes 1,060 883 594 1,200 793 772
Provision for income taxes 340 283 199 414 283 297
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Net income $ 720 $ 600 $ 395 $ 786 $ 510 $ 475
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Earnings applicable to
common shares(1) $ 655 $ 546 $ 330 $ 731 $ 461 $ 447
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BALANCE SHEET:
Total assets $143,753 $143,753 $116,694 $ 97,242 $ 80,353 $ 63,709
Total capital(2) $ 14,345 $ 14,345 $ 12,057 $ 9,813 $ 6,570 $ 5,422
Stockholders' equity $ 5,174 $ 5,174 $ 4,555 $ 4,469 $ 3,434 $ 2,994
Long-term borrowings(2) $ 9,171 $ 9,171 $ 7,502 $ 5,344 $ 3,136 $ 2,428
Average common and
equivalent shares(1)(3) 156,912,678 156,912,678 157,793,216 152,416,576 156,247,600 150,794,762
PER COMMON SHARE:(3)
Primary earnings $ 4.18 $ 3.48 $ 2.09 $ 4.80 $ 2.95 $ 2.97
Fully diluted earnings $ 4.00 $ 3.33 $ 2.02 $ 4.58 $ 2.86 $ 2.81
Cash dividends $ 0.64(4) $ 0.48 $ 0.60 $ 0.54 $ 0.478 $ 0.398
Book value $ 28.18 $ 28.18 $ 24.89 $ 23.07 $ 18.36 $ 15.39
OTHER DATA:
Return on average
common equity 16.2% $ 16.2%(5) $ 8.8% 23.7% 17.6% 21.4%
Income tax rate 32.0% 32.0% 33.5% 34.5% 35.7% 38.5%
Pre-tax margin 24.4% 24.4% 17.0% 28.9% 26.3% 27.0%
Number of employees 9,238 9,238 9,685 8,273 7,421 7,053
CHANGE FROM PRIOR YEAR:
Net revenues 24.2% 3.5% (15.8%) 37.6% 5.6% 32.5%
Net income 82.3% 51.9% (49.7%) 54.1% 7.4% 75.7%
Common stockholders'
equity 15.9% 15.9% 2.1% 28.3% 22.3% 25.3%
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(1) Amounts shown are used to calculate primary earnings per share.
(2) Amounts exclude current portion of long-term borrowings.
(3) All share and per share amounts have been retroactively adjusted to
give effect for a two-for-one common stock split, effected in the form
of a 100% stock dividend which became effective on January 26, 1996.
(4) Quarterly dividend annualized.
(5) Return on average common equity for fiscal period ended November 30,
1995 has been annualized.
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FISCAL 1995 WAS A TEN-MONTH PERIOD RESULTING FROM THE CHANGE IN MORGAN
STANLEY'S FISCAL YEAR-END FROM JANUARY 31 TO NOVEMBER 30. THE INFORMATION
PRESENTED FOR "FISCAL PERIOD ENDED NOVEMBER 30, 1995 ANNUALIZED" IS INTENDED TO
FACILITATE MORE MEANINGFUL COMPARISONS WITH THE FULL YEAR OPERATING RESULTS OF
PRIOR YEARS.
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