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 September 27, 1996
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 33-26824
Bear Stearns Secured Investors Inc.
(Exact name of registrant as specified in its charter)
Delaware 13-3402173
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
1601 Elm Street
Dallas, Texas 75201
(Address of principal executive offices) (Zip Code)
(214) 754-8300
(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 twelve 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
THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1) (a)
AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH THE REDUCED
DISCLOSURE FORMAT CONTEMPLATED THEREBY.
<PAGE>
BEAR STEARNS SECURED INVESTORS INC.
INDEX
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
Statements of Financial Condition at September 27, 1996 (Unaudited)
and June 30, 1996
Statements of Operations (Unaudited) for the three month periods ended
September 27, 1996 and September 29, 1996
Statements of Cash Flows (Unaudited) for the three month periods ended
September 27, 1996 and September 29, 1995
Notes to Financial Statements (Unaudited)
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Part II. OTHER INFORMATION
Item 1. Legal Proceedings
Item 6. Exhibits and Reports on Form 8-K
Signature
<PAGE>
<TABLE>
BEAR STEARNS SECURED INVESTORS INC.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
September 27, June 30,
1996 1996
(Unaudited)
ASSETS
<S> <C> <C>
Assets
Cash and cash equivalents $ 1,000 $ 1,000
Receivable from affiliates 16,176,822 16,176,822
Deferred organization costs 711,514 711,514
Total Assets $16,889,336 $16,889,336
LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities
Payable to Parent $16,557,976 $16,557,387
Other liabilities 164,330 164,330
Total Liabilities 16,722,306 16,721,717
Stockholder's Equity
Common stock, $.01 par value;
1,000 shares authorized:
100 shares outstanding 1 1
Paid-in capital 999 999
Retained earnings 166,030 166,619
Total Stockholder's Equity 167,030 167,619
Total Liabilities and Stockholder's
Equity $16,889,336 $16,889,336
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
BEAR STEARNS SECURED INVESTORS INC.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Three Months Ended
September 27, September 29,
1996 1995
<S> <C> <C>
Expenses
Other expenses $ 1,073 $ 372
Total expenses $ 1,073 $ 372
Loss before benefit from income taxes (1,073) (372)
Benefit from income taxes (484) (155)
Net loss $ (589) $ (217)
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
BEAR STEARNS SECURED INVESTORS INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Three Months Ended
September 27, September 29,
1996 1995
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (589) $ (217)
Cash used in operating activities (589) (217)
CASH FLOWS FROM FINANCING ACTIVITIES
Payable to Parent 589 217
Cash provided by financing activities 589 217
Cash and cash equivalents, beginning of period 1,000 1,000
Cash and cash equivalents, end of period $ 1,000 $ 1,000
See accompanying notes to financial statements.
</TABLE>
<PAGE>
BEAR STEARNS SECURED INVESTORS INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
Note 1. Basis of Presentation
The accompanying unaudited financial statements of Bear Stearns
Secured Investors Inc. (the "Company") have been prepared pursuant to
the Securities and Exchange Commission's rules and regulations.
The financial statements are prepared in conformity with generally
accepted accounting principles which require management to make
estimates and assumptions that affect the amounts in the financial
statements and accompanying notes. Actual results could differ from
those estimates.
Note 2. Collateralized Mortgage Obligations
During the three months ended September 27, 1996 and September 29,
1995, the Company did not issue any collateralized mortgage
obligations ("CMO's").
The Company clears all of its security transactions relating to the
purchase of the underlying collateral and issuance of CMO's through an
affiliate. An affiliate also acts as the principal underwriter for the
Company's CMO issuances.
Note 3. Commitments and Contingencies
In the normal course of business, the Company has been named as a
defendant in several lawsuits which involve claims for substantial
amounts. Although the ultimate outcome of these suits cannot be
ascertained at this time, it is the opinion of management, after
consultation with counsel, that the resolution of such suits will not
have a material adverse effect on the results of operations or the
financial condition of the Company.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
The Company's principal business activity is the issuing of
collateralized mortgage obligations ("CMO's") that are secured by
mortgage-backed certificates, whole residential or commercial mortgage
loans or participations therein, and in connection therewith,
acquiring, owning, holding, and pledging mortgage-backed certificates,
whole residential or commercial mortgage loans. The Company also
derives revenues in its capacity as administrator during the life of
the CMO transactions for which it originated and retained such
obligation.
The Company's net income and revenues reflects the impact of many
factors in the issuance of CMO's, including securities market
conditions, the level of volatility of interest rates, competitive
conditions and the size and timing of transactions. In addition,
results of operations for any particular interim period may not be
indicative of results to be expected for a full year.
The net loss for the first quarter of the fiscal year 1996 was $589,
as compared with a net loss of $217 for the first quarter of fiscal
year 1995. During the 1996 and 1995 fiscal quarters the Company did
not issue any CMO's.
Part II. OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None
(b) Reports on Form 8-K:
No reports on Form 8-K have been filed during the
period covered by this report.
<PAGE>
SIGNATURE
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.
Bear Stearns Secured Investors Inc.
(Registrant)
Date: November 6, 1996 By: /s/William J. Montgoris
William J. Montgoris
Secretary, Treasurer and
Chief Financial Officer
<PAGE>
BEAR STEARNS SECURED INVESTORS INC.
FORM 10-Q
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
(27) FINANCIAL DATA SCHEDULE
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information from the unaudited
Statements of Financial Condition at September 27, 1996 and unaudited Statements
of Operations for the three-months ended September 27, 1996, which are contained
in the body of the accompanying Form 10-Q and ia qualified in its entirety
by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> SEP-27-1996
<CASH> 1000
<SECURITIES> 0
<RECEIVABLES> 16,176,822
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 16,889,336
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 1
<OTHER-SE> 167,029
<TOTAL-LIABILITY-AND-EQUITY> 16,889,336
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,073
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,073)
<INCOME-TAX> (484)
<INCOME-CONTINUING> (589)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (589)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
