UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 27, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from....................to.....................
Commission file number 0-15105
SCOTT & STRINGFELLOW FINANCIAL, INC.
(Exact name of Registrant as specified in its charter)
Virginia 54-1315256
State or other jurisdiction of I.R.S. Employer Identification No.
Incorporation or Organization
909 East Main Street Richmond, Virginia 23219
(Address of principal executive offices) (zip code)
(804) 643-1811
(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 ....
On May 7, 1997, there were 3,149,722 shares of Scott & Stringfellow Financial,
Inc. Common stock, par value $.10, issued and outstanding.
SCOTT & STRINGFELLOW FINANCIAL, INC.
INDEX
Page Number
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Statements of Financial Condition -
March 27, 1997 (unaudited) and June 28, 1996 3
Consolidated Statements of Income (unaudited) -
Three months ended March 27, 1997
and March 29, 1996 4
Consolidated Statements of Income (unaudited) -
Nine months ended March 27, 1997
and March 29, 1996 5
Consolidated Statements of Cash Flows (unaudited) -
Nine months ended March 27, 1997
and March 29, 1996 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 12
Item 2. Changes in Securities 12
Item 3. Defaults upon Senior Securities 12
Item 4. Submission of Matters to a Vote of
Security Holders 12
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 12
SIGNATURES 12
EXHIBITS
PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
SCOTT & STRINGFELLOW FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
March 27, June 28,
1996 1996
ASSETS
Cash and cash equivalents $ 6,659,784 $ 4,604,319
Cash segregated under Federal regulations 1,389,662 627
Receivable from brokers, dealers and
clearing organizations 3,246,106 4,773,883
Receivable from customers 87,570,899 78,691,390
Trading and investment securities,
at market value 11,896,631 12,940,722
Exchange memberships, at adjusted cost 838,100 838,100
Equipment and leasehold improvements,
less depreciation and amortization 4,260,760 2,973,023
Deferred income taxes 812,429 639,429
Other assets 10,553,818 8,787,079
Total Assets $ 127,228,189 $ 114,248,572
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Drafts payable $ 1,673,074 $ 4,068,235
Short term bank loans 7,600,000 3,600,000
Payable to brokers, dealers and clearing
organizations 4,686,684 2,227,376
Payable to customers 73,861,401 60,577,764
Securities sold, but not yet purchased,
at market value 1,432,034 2,372,116
Accounts payable, accrued compensation
and other liabilities 9,903,548 11,912,646
Payable to shareholders for purchase and
retirement of common stock 0 3,800,000
Total Liabilities 99,156,741 88,558,137
Stockholders' Equity
Common stock, $0.10 par value; Authorized
10,000,000 shares; Issued and outstanding
2,097,591 and 2,022,475 shares 209,759 202,247
Additional paid-in capital 12,253,022 10,426,723
Retained earnings 16,704,372 15,537,305
Less: subscriptions receivable -1,095,705 -475,840
Total Stockholders' Equity 28,071,448 25,690,435
Total Liabilities and Stockholders' Equity $ 127,228,189 $ 114,248,572
See notes to consolidated financial statements.
SCOTT & STRINGFELLOW FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the Three Months Ended March 27, 1997 and March 29, 1996
(Unaudited)
March 27, March 29,
1997 1996
REVENUES
Commissions $ 11,318,087 $ 10,511,929
Principal transactions 3,561,570 2,708,949
Investment banking 1,938,026 1,272,376
Interest and dividends 1,901,488 1,651,707
Advisory and administrative service fees 2,063,604 1,257,042
Other 43,644 44,589
Total Revenues 20,826,419 17,446,592
EXPENSES
Employee compensation and benefits 13,578,197 11,412,461
Communications 964,856 793,882
Occupancy and equipment 1,146,835 734,362
Advertising and sales promotion 577,313 472,568
Postage, stationery and supplies 570,305 491,775
Brokerage, clearing and exchange fees 431,193 347,880
Data processing 373,907 308,956
Interest 752,994 567,346
Other operating expenses 1,466,474 1,177,141
Total Expenses 19,862,074 16,306,371
Income before income taxes 964,345 1,140,221
Income taxes 351,000 412,500
NET INCOME $ 613,345 $ 727,721
Earnings per share $0.19 $0.22
Dividends declared per share $0.08 $0.067
Weighted average common shares and
common stock equivalents outstanding 3,198,819 3,279,779
See notes to consolidated financial statements.
SCOTT & STRINGFELLOW FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the Nine Months Ended March 27, 1997 and March 29, 1996
(Unaudited)
March 27, March 29,
1997 1996
REVENUES
Commissions $ 31,036,478 $ 29,202,712
Principal transactions 10,247,331 8,016,978
Investment banking 6,119,019 7,153,242
Interest and dividends 5,682,943 4,901,527
Advisory and administrative service fees 5,423,344 3,238,585
Other 229,354 179,179
Total Revenues 58,738,469 52,692,223
EXPENSES
Employee compensation and benefits 37,265,013 33,893,286
Communications 2,786,776 2,380,394
Occupancy and equipment 3,184,228 2,222,364
Advertising and sales promotion 1,624,659 1,326,578
Postage, stationery and supplies 1,725,502 1,493,353
Brokerage, clearing and exchange fees 1,191,140 960,407
Data processing 1,061,975 849,574
Interest 2,142,481 1,685,657
Other operating expenses 4,000,538 3,116,118
Total Expenses 54,982,312 47,927,731
Income before income taxes 3,756,157 4,764,492
Income taxes 1,370,400 1,737,500
NET INCOME $ 2,385,757 $ 3,026,992
Earnings per share $0.77 $0.94
Dividends declared per share $0.24 $0.20
Weighted average common shares and
common stock equivalents outstanding 3,112,617 3,231,894
See notes to consolidated financial statements.
SCOTT & STRINGFELLOW FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended March 27, 1997 and March 29, 1996
(Unaudited)
1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 2,385,757 $ 3,026,992
Adjustments to reconcile net income to net cash
provided by (used for) operating activities:
Depreciation and amortization 1,235,075 624,421
Deferred income taxes -173,000 -253,000
Net loss on disposition of fixed assets 139,117 0
Changes in assets and liabilities:
Cash segregated under Federal regulations -1,389,035 -861,413
Receivable from brokers, dealers and
clearing organizations 1,527,777 -1,382,558
Receivable from customers -8,879,509 -5,986,899
Trading securities 1,035,039 1,064,616
Other assets 441,429 -2,113,853
Payable to brokers, dealers and
clearing organizations 2,459,308 2,370,167
Payable to customers 13,283,637 10,122,202
Securities sold, but not yet purchased -940,082 437,382
Accounts payable, accrued compensation
and other liabilities -1,992,284 1,426,843
NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES 9,133,229 8,474,900
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in drafts payable -2,395,161 -286,420
Net change in short term bank loans 4,000,000 -6,600,000
Cash dividends paid -753,520 -638,396
Purchase and retirement of common stock -4,295,459 -19,140
Issuance of common stock 1,227,420 671,059
NET CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES -2,216,720 -6,872,897
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of not readily
marketable securities 74,752 260,077
Purchases of not readily marketable securities -65,700 -340,899
Proceeds from disposition of fixed assets 9,326 0
Purchases of fixed assets -2,661,646 -837,038
Repayment of loans receivable 99,722 78,924
Increase in loans receivable -2,317,498 -985,590
NET CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES -4,861,044 -1,824,526
Net increase (decrease) in cash and cash equivalents 2,055,465 -222,523
Cash and cash equivalents at beginning of period 4,604,319 3,761,381
Cash and cash equivalents at end of period $ 6,659,784 $ 3,538,858
Cash paid during the period for interest $ 2,134,561 $ 1,703,042
Cash paid during the period for income taxes 1,441,375 1,523,481
See notes to consolidated financial statements.
SCOTT & STRINGFELLOW FINANCIAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
March 27, 1997
1. BASIS OF PRESENTATION
The accompanying consolidated financial statements include the accounts of
Scott & Stringfellow Financial, Inc. and its subsidiaries (collectively the
"Company"), Scott & Stringfellow, Inc. ("S&S"), Scott & Stringfellow Capital
Management, Inc. ("SSCM"), and Scott & Stringfellow Realty, Inc. S&S, the
Company's principal subsidiary, is a broker-dealer registered under the
Securities Exchange Act of 1934. SSCM is an investment advisor registered
under the Investment Advisors Act of 1940.
These interim consolidated financial statements are unaudited; however, such
information reflects all normal recurring adjustments which, in the opinion
of management, are necessary for a fair presentation of the results for the
period in accordance with generally accepted accounting principles. The
nature of the Company's business is such that the results of any interim
period are not necessarily indicative of the results which might be expected
for the full fiscal year. The notes included herein should be read in
conjunction with the notes to the consolidated financial statements included
in the Company's annual audited report for the fiscal year ended June 28,
1996.
2. NET CAPITAL REQUIREMENTS
As a registered broker-dealer and a member of the New York Stock Exchange
("NYSE"), the Company's wholly-owned subsidiary, S&S, is subject to the
Securities and Exchange Commission's Uniform Net Capital Rule (Rule 15c3-1).
S&S has elected to utilize the alternative method of the Rule, which
prohibits a broker-dealer from engaging in any transactions which would
cause its "net capital" to be less than 2% of its "aggregate debit balances"
arising from customer transactions, as those terms are defined in the Rule.
The NYSE may also impose restrictions on S&S's business if its net capital
falls below 5% of aggregate debit balances. At March 27, 1997, the
Company's net capital of $14,279,856 was 16% of its aggregate debit balances
and was $12,526,143 in excess of its minimum regulatory requirement.
3. COMMON STOCK
During the quarter ended March 27, 1997, the Company issued 4,632 shares of
common stock pursuant to the exercise of employee stock options for net
proceeds of $41,220. The Company also issued 15,180 shares of common stock
to the Employee Stock Purchase Plan for net proceeds of $314,055. In
addition, the Company issued 39,500 shares of common stock, under a private
placement exemption, to 14 management employees, including 9 executive
officers and 2 directors, in exchange for promissory notes bearing market
rates of interest, under the terms of its Management Stock Purchase Loan
Plan which was approved by the Company's shareholders on October 22, 1996.
The Company repurchases its common shares in the open market under a plan
approved by the Board of Directors. The Company did not repurchase any
shares in the open market during the quarter and had remaining authority to
repurchase 288,181 shares at March 27, 1997. The Company repurchased 10,960
shares which were previously issued under the Management Stock Purchase Loan
Plan, at a price approximating fair market value, from a former executive
officer in connection with his severance of employment with the Company.
On February 25, 1997, the Company's board of directors declared a 3 for 2
split of the Company's common stock to be effected in the form of a 50%
stock dividend payable on May 6, 1996 to shareholders of record on April 18,
1997. All per share items have been adjusted to reflect the effect of the
stock split.
4. LEGAL PROCEEDINGS
The Company and its subsidiaries are from time to time named as defendants
in legal actions incidental to its securities brokerage and investment
banking activities. Management believes that all pending claims and
lawsuits of which it has knowledge will be resolved with no material adverse
effect on the overall financial condition of the Company, although the
resolution of such matters might have a material adverse impact on the
operating results for any given quarterly accounting period.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GENERAL
The Company's primary subsidiary, S&S, conducts a full-service, securities
brokerage and investment banking business through 29 branch offices located in
Virginia, North Carolina, South Carolina, and West Virginia. Its primary
business is retail securities brokerage with an emphasis on equity securities
and mutual funds. Other significant activities and services include
institutional securities brokerage, management of and participation in the
underwriting of corporate and municipal securities, investment management
services through SSCM, corporate and municipal financial advisory services,
trading of fixed income and equity securities, primary investment research,
individual retirement account custodial services, and money market cash
management services. As of March 27, 1997, the Company employed 557 people
including 237 employees with full-time investment broker responsibilities.
The Company's profitability, to a large degree, is sensitive to the volume of
trading in securities and the volatility and general level of securities'
market prices. Approximately 77% of the Company's total revenue is generated
by commissions and sales credits, or mark-ups, on securities transactions.
Many of the Company's activities have high operating costs which do not
decrease proportionately with reduced levels of activity and may even increase
during such periods. Moreover, many of these operating costs may increase at
a proportionately greater rate than revenues during periods of increased
activity. While the Company is currently building additional fee-based revenue
in an attempt to improve the stability of revenues and earnings, its
profitability is adversely affected by sustained periods of reduced transaction
volume or loss of brokerage clients. The Company's profitability is also
adversely affected when it is unable to compensate for increases in fixed costs
through the pricing of its services or increased volume. In particular, to
meet competitive industry conditions the Company incurs significant costs
associated with technology, investment broker recruiting, and continual
improvement of the Company's investment research capabilities.
RESULTS OF OPERATIONS
THREE MONTHS ENDED MARCH 27, 1997
For the quarter ended March 27, 1997, net earnings were $613,345, a 16% decline
from $727,721 reported for the same period last year. Earnings per share for
the third quarter declined from $0.22 to $0.19. Weighted average shares and
common stock equivalents of 3,198,819 were 2% lower than during the year-earlier
period. All per share items have been adjusted for the effect of a 3
for 2 stock split, which was effected in the form of a 50% stock dividend
distributed to shareholders on May 6, 1997.
Total revenues for the third quarter of fiscal 1997 were $20,826,419, an
increase of 19% from $17,446,592 reported for the third quarter of fiscal 1996.
Equity market conditions continued to be generally favorable during the period
despite a market correction which began during the month of March. As a result
of these conditions as well as a 10% increase in the number of investment
brokers employed, commissions from agency transactions increased by 8% to
$11,318,087 and revenue from principal transactions increased by 31% from the
year-earlier period to $3,561,570. In particular, agency commissions from
mutual fund sales increased by $563,000, or 29%, and sales credits from
principal transactions on over-the-counter equity securities in which the
Company makes a market increased by $452,000, or 22%, from the third quarter
of fiscal 1996. In addition, revenue from principal transactions increased
because of approximately zero net trading profits in municipal bonds as
compared to $158,000 of trading losses in the year-earlier quarter. Revenues
from advisory and administrative service fees increased by $806,562, or 64%,
due primarily to a $283,000, or 77%, increase in investment advisory fees, a
$201,000, or 103%, increase in managed accounts fees, and a $239,000, or 54%,
increase in fees related to money market products.
Total expenses increased by 22% to $19,862,074 from $16,306,371 in the
year-earlier period. Employee compensation and benefits, the Company's largest
expense item, increased by 19% and accounted for 61% of the overall increase
in expenses. In addition to a 19% increase in investment broker compensation
which was primarily related to the increase in commission and sales credit
revenues, other forms of variable compensation increased by 39%, primarily due
to higher compensation in product support and investment advisory areas. The
ratio of support personnel to investment brokers increased slightly to 1.35
from 1.33 in the year-earlier period. Other categories of operating expenses
which increased significantly from the year-earlier quarter included occupancy
and equipment, which increased by 56% primarily as a result of higher
depreciation expense associated with investment broker workstations and other
computer systems installed as part of the Company's technology plan. Overall,
non-compensation, non-interest expenses increased by 28% from the year-earlier
quarter. The Company's ratio of expenses to total revenues increased to 95%
from 93% in the year-earlier period.
Interest and dividend revenues increased by $249,781 as a result of continued
growth in receivable balances from customer margin accounts. Interest expense
increased by $185,648 as a result of higher average balances in customer
accounts on which the Company pays interest as well as an increased level of
bank borrowings compared to the prior year. Overall, interest and dividend
income, net of interest expense, increased by approximately 3% from the
year-earlier period.
RESULTS OF OPERATIONS
NINE MONTHS ENDED MARCH 27, 1997
The results of operations for the nine month period ended March 27, 1997
continued to be characterized by increasing revenues being more than offset by
higher expenses, resulting in lower levels of profitability. For the nine
month period, net income was $2,385,757 or $0.77 per share as compared to
$3,026,992 or $0.94 per share reported for the same period in fiscal 1996. The
primary reasons for the decline in profitability were a $961,864, or 43%,
increase in occupancy and equipment expense, and a $1,034,223, or 15%, decline
in investment banking revenues, which have a higher degree of profitability
than the Company's other sources of revenue.
Total revenues for the first nine months of fiscal 1997 were $58,738,469, an
increase of $6,046,246, or 11%, from fiscal 1996. In terms of dollar amounts,
the overall increase in revenues derived primarily from a combined increase of
$4,064,119 in agency commissions and revenue from principal transactions. The
growth in volume of customer purchases and sales of equity securities,
including mutual funds, continued under favorable market conditions during the
nine month period. Due primarily to increases in assets under management
within the Company's investment advisory and managed account services, revenue
from advisory and administrative services fees for the comparative nine month
periods increased by $2,184,759, or 68%. The previously mentioned decline in
investment banking revenues was due primarily to reduced management fees and
underwriting profits from managed equity offerings.
Total expenses for the first nine months of fiscal 1997 were $54,982,312, an
increase of 15% from the fiscal 1996. Employee compensation and benefits
expense increased by 10% from the previous period primarily as a result of
higher commissions and other variable compensation associated with the higher
levels of revenue. The previously mentioned increase in occupancy and
equipment expense was a result of higher depreciation on the addition of new
broker workstations and other technology equipment and software as well as
renovations and relocations of office space. The increase in expenses for data
processing and brokerage, clearing, and exchange fees both reflected increased
transaction volumes as well as some fee and rate increases compared to the
prior year. Other operating expense increases included advertising and other
expenses related to marketing and promotion initiatives, employment agency fees
for recruiting efforts, and computer consulting expense and loss on retirement
of fixed assets, both of which related to the technology plan.
Interest income for the nine month period, net of interest expense, increased
by 10% from the year-earlier period due to higher average balances of customer
margin loans, partially offset by higher average balances on interest-bearing
customer credit balances and short term bank loans.
LIQUIDITY AND CAPITAL RESOURCES
As set forth in the Consolidated Statement of Cash Flows contained in this
report, the Company's primary sources of cash flow are the net cash provided
from the earnings of the Company and from increases in the amounts payable to
customers and other short-term indebtedness incurred in the normal course of
the Company's securities brokerage business.
For the nine month period ended March 27, 1997, net cash provided by operations
was $9,133,229. The largest source of cash from operations was an increase of
$13,283,637 in customer credit balances. Although customer credit balances
declined from $79,371,644 at December 31, 1996 to $73,861,401 at March 27,
1997, the long term growth in customer credit balances remains intact, due
primarily to the Company's credit interest program on customer individual
retirement accounts. Net income, adjusted for depreciation and amortization,
provided $3,620,832 of cash. The significant use of cash in operating
activities was an increase in receivable from customers balances of $8,879,509
as a result of continued growth in lending to customers through margin
accounts. Because of the nature of the Company's business, the changes in
operating asset and liability account balances relative to net income for any
particular accounting period can be quite large and somewhat arbitrary. These
changes are often short term in nature and therefore are not very useful
indicators of long-term trends in the Company's liquidity and capital
resources. However, the Company has generally experienced increases in
balances payable to and receivable from customers over recent fiscal periods,
which has the effect of reducing its equity to total assets ratio. For example,
this ratio declined from 27% at March 29, 1996 to 22% at March 27, 1997.
Net cash flow of $2,216,720 was used by financing activities, principally
including the settlement of the Company's $3,800,000 Dutch Auction tender offer
which is included in Purchases and retirement of common stock, partially offset
by common stock issuance of $1,227,420. Bank loans increased by $4,000,000
while drafts payable declined by $2,395,561. Investing activities during the
period used net cash of $4,861,044, which included $2,661,646 in purchases of
equipment and leasehold improvements. In addition, $2,317,498 of loans
receivable were extended, primarily due to investment broker recruiting efforts
during the period. Over the six month period, the Company's overall net cash
position increased by $2,055,465.
At March 27, 1997, approximately 87% of the Company's assets were liquid,
consisting mainly of cash or assets readily convertible into cash. The
Company's largest asset is its receivable from customers, representing
borrowings from the Company by customers to finance the purchase of securities
on margin. Such receivables from customers are substantially financed by
customer credit balances (excess funds kept by customers with the Company),
short-term bank borrowings and equity capital. The Company utilizes short-term
bank borrowings under established lines of credit with several banking
institutions. A total of $52,000,000 in approved lines of credit was available
to the Company at March 27, 1997, with $4,000,000 in loans outstanding. The
Company had no other debt obligations outstanding at that date.
The Company is subject to the net capital requirements of the Securities and
Exchange Commission ("SEC") and the New York Stock Exchange which are designed
to measure the general financial soundness and liquidity of broker-dealers.
The Company has consistently operated in excess of the minimum requirements.
At March 27, 1997, the Company's net capital of $14,279,856 exceeded the
minimum requirement by $12,526,143. Net capital was comprised entirely of
stockholders' equity less certain regulatory adjustments. As a result of
growth in customer receivable balances and the use of capital for fixed assets,
loans associated with recruiting investment brokers, and the Dutch Auction
tender offer, as well as other factors, the Company's ratio of net capital to
aggregate debit items has declined in recent periods. This ratio was 16% at
March 27, 1997, as compared to 24% at March 29, 1996.
Management believes that funds provided by earnings combined with its existing
liquid capital base and its present lines of credit, are fully adequate to meet
the Company's financing needs for the foreseeable future.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings - None Reportable
Item 2. Changes in Securities
On January 3, 1997 the Company issued 39,500 shares of common stock to 14
management employees, including 9 executive officers and 2 directors, in
exchange for promissory notes bearing market rates of interest, under the
terms of its Management Stock Purchase Loan Plan which was approved by the
Company's shareholders on October 22, 1996. In issuing these shares, the
Company is relying on the private offering exemption under section 4(2) of
the Securities Act of 1933. There were no underwriters or placing agents
involved in these transactions.
On February 25, 1997, the Company's board of directors declared a 3 for 2
split of the Company's common stock to be effected in the form of a 50%
stock dividend payable on May 6, 1996 to shareholders of record on April 18,
1997. All per share items have been adjusted to reflect the effect of the
stock split.
Item 3. Defaults upon Senior Securities - None Reportable
Item 4. Submission of Matters to a Vote of Security Holders - None
Reportable
Item 5. Other Information - None Reportable
Item 6: Exhibits and Reports on 8-K
(a) Exhibits
Exhibit 11 - Statement Re: Computation of Per Share Earnings - See
Separate Document
Financial Data Schedule BD - See Separate Document
(b) Reports on Form 8-K
A Report on Form 8-K was filed on March 6, 1997 for the purpose of
announcing the stock split discussed in Item 2 of this report. There were
no financial schedules filed with the Form 8-K.
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.
SCOTT & STRINGFELLOW FINANCIAL, INC. (Registrant)
Signatures Date
/s/ John Sherman, Jr. May 9, 1997
John Sherman, Jr.
President and Chief Executive Officer
(Principal Executive Officer)
/s/ Mike D. Johnston May 9, 1997
Mike D. Johnston
Vice President and Chief Financial Officer
(Principal Financial Officer)<PAGE>
EXHIBIT 11
STATEMENT REGARDING COMPUTATION OF EARNINGS PER SHARE
For the Three Months Ended
March 27, 1997 March 29, 1995
Primary Fully Diluted Primary Fully Diluted
Weighted average shares
outstanding:
Common shares 3,124,962 3,124,962 3,250,632 3,250,632
Dilutive shares
available under
stock options 73,857 81,101 29,147 29,147
Weighted average common
shares and common
stock equivalents
outstanding 3,198,819 3,206,063 3,279,779 3,279,779
Net earnings applicable
to common shares $613,345 $613,345 $727,721 $727,721
Earnings per share $0.19 $0.19 $0.22 $0.22
For the Nine Months Ended
March 27, 1997 March 29, 1996
Primary Fully Diluted Primary Fully Diluted
Weighted average shares
outstanding:
Common shares 3,054,432 3,054,432 3,206,177 3,206,177
Dilutive shares
available under
stock options 58,185 71,445 25,717 28,485
Weighted average common
shares and common
stock equivalents
outstanding 3,112,617 3,125,877 3,231,894 3,234,662
Net earnings applicable
to common shares $2,385,757 $2,385,757 $3,026,992 $3,026,992
Earnings per share $0.77 $0.76 $0.94 $0.94
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