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Previous: INTERSYSTEMS INC /DE/, 10QSB, 1998-11-09 |
Next: GABELLI FUNDS INC ET AL, SC 13D/A, 1998-11-09 |
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 25, 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 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 13or 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 25, 1998
(Unaudited) and June 30, 1998
Statements of Operations (Unaudited) for the three months
ended September 25, 1998 and September 26, 1997
Statements of Cash Flows (Unaudited) for the three months ended
September 25, 1998 and September 26, 1997
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>
<CAPTION>
BEAR STEARNS SECURED INVESTORS INC.
STATEMENTS OF FINANCIAL CONDITION
September 25, June 30,
1998 1998
(Unaudited)
ASSETS
<S> <C> <C>
Assets
Cash and cash equivalents $ 1,000 $ 1,000
Receivable from affiliates 16,204,877 16,204,877
Other Assets 686 686
------------- --------------
Total Assets $ 16,206,563 $ 16,206,563
============= ==============
LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities
Payable to Parent $ 16,288,959 $ 16,288,603
Other liabilities 165,000 165,000
------------- --------------
Total Liabilities 16,453,959 16,453,603
------------- --------------
Stockholder Equity
Common stock, $.01 par value;
1,000 shares authorized:
100 shares outstanding 1 1
Paid-in capital 1,000 1,000
(Accumulated deficit)/ (248,397) (248,041)
--------------- ---------------
Total Stockholder's Equity (247,396) (247,040)
---------------- ---------------
Total Liabilities and Stockholder's Equity $ 16,206,563 $ 16,206,563
================ ===============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
BEAR STEARNS SECURED INVESTORS INC.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
September September 25,
25,
1998 1997
<S> <C> <C>
Expenses
Other expenses $ 631 $ 163,423
------------- -------------
Total expenses $ 631 $ 163,423
------------- -------------
Loss before benefit from income taxes (631) (163,423)
Benefit from income taxes (275) (71,123)
-------------- -------------
Net loss $ (356) $ (92,300)
======== ========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BEAR STEARNS SECURED INVESTORS INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
September 25, September 25,
1998 1997
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (356) $ (92,301)
Decrease in deferred organization costs ---- 149,313
Increase (decrease) in other liabilities ---- 688
--------------- -----------
Cash (used in) operating activities (356) 57,700
--------------- ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Payable to Parent 356 (57,700)
--------------- -----------
Cash provided by (used in) financing activities 356 (57,700)
--------------- -----------
Cash and cash equivalents, beginning of period 1,000 1,000
--------------- -----------
Cash and cash equivalents, end of period $ 1,000 $ 1,000
=============== ===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
BEAR STEARNS SECURED INVESTORS INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
Note 1. Organization
Bear Stearns Secured Investors Inc. (the Company)a direct
wholly-owned limited purpose finance subsidiary of The Bear
Stearns Companies Inc. (the Parent) was organized on
November 26, 1986 as a Delaware corporation. The Companys
sole purpose is to issue and sell one or more series of
collateralized mortgage obligations (CMOs) directly or
through one or more trusts established by it. In connection
therewith, the Company provides management and
administrative services after the Issuance of each CMO issued.
The Companys activities are limited to issuing CMOs that
will be collateralized 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 loans or commercial mortgage loans.
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 25, 1998, 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 1999 was $356 as compared
with a net loss of $92,300 for the first quarter of fiscal
year 1998. During the 1999 and 1998 fiscal quarters the
Company did not issue any CMO's.
<PAGE>
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 5, 1998 By: /s/William J. Montgoris
William J. Montgoris
Secretary, Treasurer and
Chief Financial Officer
<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 5, 1998 By:
William J. Montgoris
Secretary, Treasurer and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information from the unaudited
Statements of Financial Condition at September 25, 1998 and unaudited
Statements of Operations for the three-months ended September 25, 1998,
which are contained in the body of the accompanying 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-30-1999
<PERIOD-END> SEP-25-1998
<CASH> 1000
<SECURITIES> 0
<RECEIVABLES> 16,204,877
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 16,206,563
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 1
<OTHER-SE> (247,397)
<TOTAL-LIABILITY-AND-EQUITY> 16,206,563
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 631
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (631)
<INCOME-TAX> (275)
<INCOME-CONTINUING> (356)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (356)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
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