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 December 31, 1998
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 February 11, 1998, there were 3,553,517 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 -
December 31, 1998 (unaudited) and June 26, 1998 3
Consolidated Statements of Income (unaudited) -
Three months ended December 31, 1998
and December 31, 1997 4
Consolidated Statements of Income (unaudited) -
Six months ended December 31, 1998
and December 31, 1997 5
Consolidated Statements of Cash Flows (unaudited) -
Six months ended December 31, 1998
and December 31, 1997 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 4. Submission of Matters to a Vote of
Security Holders 12
Item 6. Exhibits and Reports on Form 8-K 12
SIGNATURES 13
EXHIBITS
PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
SCOTT & STRINGFELLOW FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
December 31, June 26,
1998 1998
ASSETS
Cash and cash equivalents $ 4,464,159 $ 3,218,034
Cash segregated under Federal regulations 2,142 5,397
Receivable from brokers, dealers and
clearing organizations 3,481,551 8,342,188
Receivable from customers 129,921,794 123,667,772
Trading and investment securities,
at market value 17,002,425 12,470,571
Exchange memberships, at adjusted cost 838,100 838,100
Equipment and leasehold improvements,
less depreciation and amortization 5,200,093 4,993,196
Deferred income taxes 2,038,429 1,703,429
Other assets 13,309,549 12,754,076
Total Assets $176,258,242 $167,992,763
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Drafts payable $ 4,119,626$ 0
Short term bank loans 0 18,900,000
Payable to brokers, dealers and clearing
organizations 3,829,533 6,134,290
Payable to customers 109,843,425 89,810,049
Securities sold, but not yet purchased,
at market value 323,978 2,550,751
Accounts payable, accrued compensation
and other liabilities 20,798,204 16,311,773
Total Liabilities 138,914,766 133,706,863
Stockholders' Equity
Common stock, $0.10 par value; Authorized
10,000,000 shares; Issued and outstanding
3,525,786 and 3,277,657 shares 352,579 327,767
Additional paid-in capital 17,711,326 15,430,595
Retained earnings 20,589,328 20,251,287
Less: subscriptions receivable -1,309,757 -1,723,749
Total Stockholders' Equity 37,343,476 34,285,900
Total Liabilities and Stockholders' Equity $176,258,242 $167,992,763
See notes to consolidated financial statements.
SCOTT & STRINGFELLOW FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the Three Months Ended December 31, 1998 and December 31, 1997
(Unaudited)
1998 1997
REVENUES
Commissions $ 14,016,695 $ 13,190,859
Principal transactions 3,550,311 4,022,449
Investment banking 2,767,020 4,247,155
Interest and dividends 2,907,374 2,441,550
Advisory and administrative service fees 2,806,239 3,287,741
Other 743,478 136,593
Total Revenues 26,791,117 27,326,347
EXPENSES
Employee compensation and benefits 16,920,462 17,051,587
Communications 1,153,902 912,516
Occupancy and equipment 1,535,901 1,377,961
Advertising and sales promotion 721,341 771,560
Postage, stationery and supplies 722,267 700,215
Brokerage, clearing and exchange fees 534,265 495,605
Data processing 537,804 497,393
Interest 1,099,801 919,126
Other operating expenses 2,017,126 1,889,775
Total Expenses 25,242,869 24,615,738
Income before income taxes 1,548,248 2,710,609
Income taxes 616,600 995,000
NET INCOME $ 931,648 $ 1,715,609
Earnings per share, basic $0.27 $0.54
Earnings per share, diluted $0.25 $0.50
Dividends declared per share $0.10 $0.09
Weighted average common shares outstanding 3,510,266 3,189,392
Weighted average common shares and
dilutive potential shares outstanding 3,678,688 3,420,412
See notes to consolidated financial statements.
SCOTT & STRINGFELLOW FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the Six Months Ended December 31, 1998 and December 31, 1997
(Unaudited)
1998 1997
REVENUES
Commissions $ 27,380,058 $ 26,283,262
Principal transactions 6,503,122 7,960,144
Investment banking 4,782,233 7,531,512
Interest and dividends 5,789,723 4,708,127
Advisory and administrative service fees 5,478,925 5,980,482
Other 686,601 307,011
Total Revenues 50,620,662 52,770,538
EXPENSES
Employee compensation and benefits 31,485,376 33,383,508
Communications 2,415,055 1,945,743
Occupancy and equipment 2,960,119 2,603,690
Advertising and sales promotion 1,420,492 1,336,568
Postage, stationery and supplies 1,516,319 1,347,133
Brokerage, clearing and exchange fees 1,001,905 950,370
Data processing 1,058,195 953,145
Interest 2,252,912 1,834,448
Other operating expenses 3,525,458 3,130,860
Total Expenses 47,635,831 47,485,465
Income before income taxes 2,984,831 5,285,073
Income taxes 1,246,000 1,944,000
NET INCOME $ 1,738,831 $ 3,341,073
Earnings per share, basic $0.51 $1.05
Earnings per share, diluted $0.48 $0.98
Dividends declared per share $0.40 $0.18
Weighted average common shares outstanding 3,422,580 3,180,053
Weighted average common shares and
dilutive potential shares outstanding 3,619,912 3,399,514
See notes to consolidated financial statements.
SCOTT & STRINGFELLOW FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended December 31, 1998 and December 31, 1997
(Unaudited)
1998 1997
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 1,738,831 $ 3,341,073
Adjustments to reconcile net income to net cash
provided by (used for) operating activities:
Depreciation and amortization 976,525 935,339
Deferred income taxes -335,000 -20,000
Loss on disposition of fixed assets 42,812 22,863
Changes in assets and liabilities:
Cash segregated under Federal regulations 3,255 669,401
Receivable from brokers, dealers and
clearing organizations 4,860,637 -1,652,922
Receivable from customers -6,246,195 -12,045,245
Trading securities -4,263,128 -4,053,915
Other assets 313,699 -783,371
Payable to brokers, dealers and
clearing organizations -2,304,757 -2,077,578
Payable to customers 20,033,376 2,945,914
Securities sold, but not yet purchased -2,226,773 1,637,819
Accounts payable, accrued compensation
and other liabilities 4,461,618 6,209,025
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES 17,054,900 -4,871,597
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in drafts payable 4,119,626 2,871,286
Net change in short term bank loans -18,900,000 4,150,000
Cash dividends paid -1,375,977 -572,186
Purchase and retirement of common stock 0 -651,427
Issuance of common stock 2,719,535 1,179,085
NET CASH PROVIDED BY(USED FOR) FINANCING
ACTIVITIES -13,436,816 6,976,758
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of not readily
marketable securities 84,123 47,477
Purchases of not readily marketable securities -352,849 -2,000
Proceeds from disposition of fixed assets 16,775 1,963
Purchases of fixed assets -1,236,603 -1,705,311
Repayment of loans receivable 38,826 96,567
Increase in loans receivable -922,231 -1,401,413
NET CASH PROVIDED BY (USED FOR) INVESTING
ACTIVITIES -2,371,959 -2,962,717
Net increase (decrease) in cash and cash
equivalents 1,246,125 -857,556
Cash and cash equivalents at beginning of period 3,218,034 6,566,361
Cash and cash equivalents at end of period $ 4,464,159 $ 5,708,805
Cash paid during the period for interest $ 2,012,526 $ 1,838,509
Cash paid during the period for income taxes $ 1,210,733 $ 1,854,925
See notes to consolidated financial statements.
SCOTT & STRINGFELLOW FINANCIAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
December 31, 1998
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 report for the fiscal year ended June 26, 1998.
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 December 31, 1998, the
Company's net capital of $18,370,569 was 13% of its aggregate debit balances
and was $15,579,191 in excess of its minimum regulatory requirement.
3. COMMON STOCK
During the quarter ended December 31, 1998, the Company issued 44,245 shares
of common stock pursuant to the exercise of employee stock options for net
proceeds of $395,275. The Company did not repurchase any shares during the
quarter.
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 32 branch offices located in
Virginia, North Carolina, South Carolina, and West Virginia. As a full service
firm, S&S's securities brokerage activities include retail and institutional
brokerage and the distribution of mutual funds, money market funds, and
insurance products. S&S also offers specialized financial services including
individual retirement account custodial services, portfolio evaluation,
financial planning, and managed account services. S&S also provides loans to
clients which are secured by marketable securities held in margin accounts.
These brokerage activities are supported by an in-house equity research
department and trading desks for over-the-counter equities, municipal bonds,
and taxable fixed income securities. The Company's investment banking
activities include the management of and participation in underwritings of
corporate and municipal securities and financial advisory services to public
and private companies and municipalities. Additionally, SSCM provides
fee-based, investment advisory services to both individual and institutional
clients. As of December 31, 1998, the Company employed approximately 637
people including 255 employees with full-time investment broker
responsibilities.
The Company's profitability, to a large degree, is sensitive to the market
volume of trading in securities and the relative level and volatility of
securities' market prices. Approximately 73% 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 attempts to develop revenue sources
which are less sensitive to financial market conditions, 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 transaction volume. As a full service
firm, the Company's fixed cost structure is significantly higher than many of
its competitors, particularly discount and Internet brokerage firms.
PROPOSED MERGER WITH BB&T CORPORATION
On August 10, 1998, the Company announced that it had entered into an Agreement
and Plan of Reorganization with BB&T Corporation, a North Carolina corporation
("BB&T"). Pursuant to the agreement, the Company will be merged with and into
BB&T, with BB&T as the surviving corporation. Under the agreement, one share
of BB&T common stock will be exchanged for each share of the Company's common
stock. On September 16, 1998, the agreement was amended to provide that the
merger would be accounted for as a purchase. The Company's shareholders
approved the transaction at the Company's annual meeting on January 13,
1999.(See Part II Item 4 - Submission of Matters to a Vote of Security
Holders.) The Company is currently working with BB&T to obtain the required
regulatory approvals and expects the merger to close on or before March 26,
1999.
RESULTS OF OPERATIONS
THREE MONTHS ENDED DECEMBER 31, 1998
For the quarter ended December 31, 1998, net earnings were $932,000, a 46%
decline from $1,716,0000 reported for the second quarter of fiscal 1998.
Pre-tax net income declined by 43%, while the Company's effective income tax
rate increased from 37% to 40% primarily due to $135,000 of non-deductible
merger-related expenses. Diluted earnings per share for the second quarter
declined 50%, from $0.50 to $0.25, as weighted average shares and dilutive
potential shares increased by 8% due to an increase in outstanding shares from
the exercise of stock options, as well as an increase in the Company's stock
price from the year-ago period. Absent non-recurring merger charges, diluted
earnings per share would have been $0.29 for the quarter.
Total revenues for the quarter were $26,791,000, a decline of 2% from
$27,326,200 reported for the same period last year. The most significant
decline in revenue was investment banking, which declined by $1,480,000, or
35%, due to a lack of equity underwriting activity during the months of
November and December. Advisory and administrative fees also declined from the
prior year due to a $1,186,000 decline in advisory fees, which was related to
a decline in assets under management at SSCM, as a result of the transfer of
advisory contracts to Atlantic Capital Management in February 1998. This
decline was partially offset by increases in managed account fees of $325,000
and money market fees of $252,000, as client assets invested in those products
increased. Revenue categories which increased included commissions from agency
transactions, which increased by $826,000, or 6%, due primarily to increased
trading volume on listed stocks and listed options, as well as sales of annuity
products. Revenue from principal transactions declined by 12% due primarily
to a decline in trading volume in over-the-counter stocks in which the Company
makes a market. Finally, the $607,000 increase in other income was the result
of a $467,000 of market index gains on investments funding the Company's
deferred compensation plan, as well the Company's equity in net earnings of
Atlantic Capital Management, which was not a factor last year.
While revenues decline by 2%, total expenses increased by 3% to $25,243,000
from $24,616,000 in the year-earlier period. Employee compensation and
benefits, the Company's largest expense item, declined by 1% due to a decline
in variable compensation corresponding to lower revenues and profitability,
partially offset by increases in professional salaries expense and participant
earnings in the Company's non-qualified deferred compensation plan. Total
employee headcount at December 31, 1998 was 9% higher than at December 31,
1997. Communications expense increased by 27% from last year due to increased
costs for leased telephone lines, telephone service, and quote services.
Occupancy and equipment increased by 12%, primarily as a result of increased
rent expenses for both facilities and equipment. Postage, stationary and
supplies increased by 3% as increases in printed material costs were partially
offset by a decline in monthly processing charges for client account
statements. Advertising and sales promotion declined by 7% due to a reduction
in expenses for client seminars, marketing brochures, and incentive sales
trips. Data processing expense increased by 8% due to an increase in the
number of trade tickets run as compared to last year. Non-recurring merger
expenses of $135,000 accounted for the 7% increase in other operating expenses.
Interest and dividend revenues increased by $466,000, or 19%, as a result of
continued growth in receivable balances from customer margin accounts which
more than offset a decline of approximately 50 basis points in the average
"broker call" interest rate upon which the Company's margin lending rates are
based. Interest expense increased by 20% as a result of interest paid on
higher levels of customer credit balances on IRA accounts, partially offset by
a decline in the short term interest rate paid on these accounts.
RESULTS OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1998
For the six month period ended December 31, 1998, net income was $1,739,000,
or $0.48 per diluted share, as compared to $3,341,000, or $.98 per diluted
share, reported last year.
Total revenues for the six month period were $50,621,000, a decline of 4% from
the first half of fiscal 1998. As with the quarterly comparison, results for
the period reflected a decline in investment banking revenues; the Company
experienced a drought in managed equity offerings from the period August
through November 1998 while the prior year results reflected a relatively
strong period of managed equity offerings. Due primarily to a decline in
assets under management within the Company's investment advisory subsidiary,
revenue from advisory and administrative services fees for the comparative six
month periods declined by 8%. Partially offsetting these declines was a modest
4% increase in commission revenues from agency transactions.
Total expenses for the six month period of $47,636,000 were virtually unchanged
from the prior year. Employee compensation and benefits expense, which
represents 66% of the Company's total expenses, declined by 6% from the
previous period primarily as a result of lower levels of variable compensation
corresponding to the decline in revenues and profitability. Excluding
compensation and interest expense, however, total operating expenses increased
by 13%. Expenses which accounted for this increase included communications
expense as a result of increased cost for telephone and data communications,
occupancy and equipment, which increased by 14% as a result of higher office
space rent associated with additional space leased on downtown Richmond as well
as new and expanded branch offices, and postage, stationary and supplies, which
increased by 13% as a result of office cabling projects and increased costs for
general supplies and printed material, partially offset by a reduction in
monthly client statement processing costs. Other operating expenses, which
increased by 13%, included merger-related expenses of $235,000.
Both interest income and interest expense increased by 23% from the year-earlier
period as growth in customer balances, both margin and cash, offset a
decline in short term interest rates which occurred during the last three
months of calendar 1998.
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 six month period ended December 31, 1998, operating activities provided
net cash of $17,055,000 as customer credit balances, primarily cash balances
in individual retirement accounts, increased by $20,033,000, which more than
offset $6,246,000 of increase in customer receivable balances and $4,263,000
increase in the Company's securities trading inventories. 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 15% to 25% annual growth in customer receivable and payable
balances in recent years.
Net cash flow of $13,437,000 was used by financing activities, which included
cash dividends of $1,376,000, including a special dividend of $0.20 paid to
shareholders in October, and repayment of short term bank loans of $18,900,000.
Daily bank borrowing during the six month period generally declined with the
increase in customer credit balances. Issuances of the Company's common stock
during the period totaled $2,720,000, mainly the result of stock option
exercises, while the Company did not repurchase any shares pending the proposed
merger with BB&T Corporation. Investing activities during the period used net
cash of $2,372,000, which included $1,237,000 in purchases of fixed assets and
$922,000 of new loans, primarily to newly recruited investment brokers and
other employees. Over the six month period, the Company's overall net cash
position increased by $1,246,000.
At December 31, 1998, approximately 88% 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 $55,000,000 in approved lines of credit was available
to the Company at December 31, 1998, with no balances outstanding. In
addition, the Company has sources of credit available on a intra-day basis to
finance the settlement of underwriting obligations. 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 December 31, 1998, the Company's net capital of $18,370,569 exceeded the
minimum requirement by $15,579,191. Net capital was comprised entirely of
stockholders' equity less certain regulatory adjustments. The ratio of net
capital to aggregate debit items was 13% at December 31, 1998, as compared to
15% at December 31, 1997. Although the dollar amount of net capital increased
from the prior year, the decline in the net capital ratio was the result of the
growth in customer margin balances.
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 4. Submission of Matters to a Vote of Security Holders
The Annual Meeting of shareholders of Scott & Stringfellow Financial, Inc.
was held in Richmond, Virginia on January 13, 1999.
The shareholders considered and voted upon a proposal to approve the amended
and restated agreement and plan of reorganization dated as of September 16,
1998, and a related amended and restated plan of merger, pursuant to which
Scott & Stringfellow Financial, Inc. will merge with and into BB&T
Corporation, and each share of common stock of Scott & Stringfellow
outstanding immediately prior thereto will be converted into the right to
receive one share of common stock of BB&T. The shareholders approved this
proposal by a vote of 2,793,226 shares for, 14,577 against, and 745 shares
abstaining.
Four persons were nominated and elected to a three year term of membership
on the Company's board of directors. Robert L. Hintz was elected with
3,172,933 share votes for and 5,876 share votes withheld. Charles E. Mintz
was elected with 3,175,472 share votes for and 3,337 share votes withheld.
David Plageman was elected with 3,164,399 share votes for and 14,410 share
votes withheld. John Sherman, Jr. was elected with 3,175,472 share votes
for and 3,337 share votes withheld.
The shareholders also ratified the appointment of KPMG Peat Marwick, LLP as
independent certified public accountants for the Company for the fiscal year
ending June 25, 1999 by a vote of 3,171,943 votes for, 5,779 against, and
1,087 shares abstaining.
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
There were no reports on Form 8-K filed during the quarter ended December 31,
1998.
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. February 12, 1999
John Sherman, Jr.
President and Chief Executive Officer
(Principal Executive Officer)
/s/Mike D. Johnston February 12, 1999
Mike D. Johnston
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)<PAGE>
EXHIBIT 11
STATEMENT REGARDING COMPUTATION OF EARNINGS PER SHARE
For the Three Months Ended
December 31, 1998 December 31, 1997
Basic Diluted Basic Diluted
Weighted average shares
outstanding:
Common shares 3,510,266 3,510,266 3,189,392 3,189,392
Dilutive potential
common shares under
stock options 0 168,422 0 231,020
Weighted average common
shares and dilutive
potential common shares
outstanding 3,510,266 3,678,688 3,189,392 3,420,412
Net earnings applicable
to common shares $931,648 $931,648 $1,715,609 $1,715,609
Earnings per share $0.27 $0.25 $0.54 $0.50
For the Six Months Ended
December 31, 1998 December 31, 1997
Basic Diluted Basic Diluted
Weighted average shares
outstanding:
Common shares 3,422,580 3,422,580 3,180,053 3,180,053
Dilutive potential
common shares under
stock options 0 197,332 0 219,461
Weighted average common
shares and dilutive
potential common shares
outstanding 3,422,580 3,619,912 3,180,053 3,399,514
Net earnings applicable
to common shares $1,738,831 $1,738,831 $3,341,073 $3,341,073
Earnings per share $0.51 $0.48 $1.05 $0.98
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<ARTICLE> BD
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<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-25-1999
<PERIOD-END> DEC-31-1998
<CASH> 4466301
<RECEIVABLES> 131485327
<SECURITIES-RESALE> 0
<SECURITIES-BORROWED> 1918018
<INSTRUMENTS-OWNED> 17002425
<PP&E> 5200093
<TOTAL-ASSETS> 176258242
<SHORT-TERM> 0
<PAYABLES> 136388762
<REPOS-SOLD> 0
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