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, 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 December 31, 1996 (Unaudited) and
June 30, 1996
Statements of Operations (Unaudited) for the three months and six
months ended December 31, 1996 and December 31, 1995
Statements of Cash Flows (Unaudited) for the six month periods ended
December 31, 1996 and December 31, 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
<TABLE>
BEAR STEARNS SECURED INVESTORS INC.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
December 31, 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 $16,559,657 $16,557,387
Other liabilities 164,312 164,330
Total Liabilities 16,723,969 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 164,367 166,619
Total Stockholder's Equity 165,367 167,619
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 Six Months Ended
December 31, December 31, December 31, December 31,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Expenses
Other expenses $ 2,944 $ 543 $ 4,016 $ 915
Total expenses $ 2,944 $ 543 $ 4,016 $ 915
Loss before benefit from income taxes (2,944) (543) (4,016) (915)
Benefit from income taxes (1,280) (261) (1,764) (416)
Net loss (1,664) $(282) $(2,252) $(499)
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
BEAR STEARNS SECURED INVESTORS INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Six Months Ended
December 31, December 31,
1996 1995
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (2,252) $ (499)
Decrease in other liabilities (18)
Cash used in operating activities (2,270) (499)
CASH FLOWS FROM FINANCING ACTIVITIES
Payable to Parent 2,270 499
Cash provided by financing activities 2,270 499
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 six months ended December 31, 1996, 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 second quarter of the fiscal year 1997 was
$1,664, as compared with a net loss of $282 for the second quarter of
fiscal year 1996. During the 1997 and 1996 fiscal quarters the Company
did not issue any CMO's.
The net loss for the six months ended December 31, 1996 was $2,252, as
compared with net loss of $499 during the six months ended December
31, 1995. During the six months ended December 31, 1996 and December
31, 1995, 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: February 6, 1997 By:/s/William J. Montgoris
William J. Montgoris
Secretary, Treasurer and
Chief Financial Officer
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information from the unaudited
Statements of Financial Condition at December 31, 1996 and unaudited Statements
of Operations for the three-months ended December 31, 1996, which are contained
in the body of the accompaning Form 10-Q and is qualified in its entirety
by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-96
<PERIOD-END> DEC-31-96
<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> 165,367
<TOTAL-LIABILITY-AND-EQUITY> 16,889,336
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 2,944
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (2,944)
<INCOME-TAX> (1,280)
<INCOME-CONTINUING> (1,664)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,664)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
