|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previous: PLM EQUIPMENT GROWTH & INCOME FUND VII, PRER14A, 2000-06-22 |
Next: MORGAN STANLEY DEAN WITTER & CO, 8-K, EX-99.1, 2000-06-22 |
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 22, 2000
Morgan Stanley Dean Witter & Co.
--------------------------------------
(Exact name of Registrant as specified
in its charter)
Delaware 1-11758 36-3145972
-------------------------------------------------------------------------
(state or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
1585 Broadway, New York, New York 10036
------------------------------------------------
(Address of principal executive offices)(Zip Code)
Registrant's telephone number, including area code: (212) 761-4000
--------------
-------------------------------------------------------------------------
(Former address, if changed since last report.)
<PAGE>
Item 5. Other Events
---------------------
On June 20, 2000, Morgan Stanley Dean Witter & Co. announced that John W.
Madigan had been elected to its board of directors. The election is effective
July 1, 2000.
Mr. Madigan is chairman, president and chief executive officer of Tribune
Company, a leading media company with television, radio, publishing and
interactive businesses. Mr. Madigan will serve in the class of directors whose
terms expire in 2001. There will be four directors in the class and the size of
Morgan Stanley Dean Witter & Co. Board of Directors will increase to eleven.
On June 22, 2000, Morgan Stanley Dean Witter & Co. (the "Registrant") released
financial information with respect to the quarter ended May 31, 2000. A copy of
the press release containing such financial information is annexed as Exhibit
99.1 to this Report and by this reference incorporated herein and made a part
hereof.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
--------------------------------------------------------------------------
99.1 Press release of the Registrant dated June 22, 2000
containing financial information for the second quarter
ended May 31, 2000.
<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, thereto duly authorized.
MORGAN STANLEY DEAN WITTER & CO.
--------------------------------
(Registrant)
By: /s/ Ronald T. Carman
--------------------------------
Ronald T. Carman
Assistant Secretary
Dated: June 22, 2000
<PAGE>
MORGAN STANLEY DEAN WITTER & CO.
Financial Summary
(unaudited, dollars in millions)
<TABLE>
<CAPTION>
Percentage
Quarter Ended Change From: Six Months Ended
------------------------------------ --------------- ---------------------
May 31, May 31, Feb 29, May 31, Feb 29, May 31, May 31, Percentage
2000 1999 2000 1999 2000 2000 1999 Change
-------- --------- -------- ------ ------- ------- ------- ----------
Net revenues
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Securities $ 5,450 $ 4,260 $ 5,922 28% (8%) $ 11,372 $ 8,338 36%
Asset Management 629 513 600 23% 5% 1,229 1,022 20%
Credit Services 989 872 889 13% 11% 1,878 1,624 16%
------ ------- ------- --------- -------
Consolidated net revenues $ 7,068 $ 5,645 $ 7,411 25% (5%) $ 14,479 $ 10,984 32%
======= ======== ======== =========== =========
Net income
Securities $ 1,090 $ 835 $ 1,244 31% (12%) $ 2,334 $ 1,641 42%
Asset Management 156 105 158 49% (1%) 314 212 48%
Credit Services 212 211 142 -- 49% 354 335 6%
------- --------- --------- ----------- ---------
Consolidated net income $ 1,458 $ 1,151 $ 1,544 27% (6%) $ 3,002 $ 2,188 37%
======= ========= ========= =========== =========
Preferred stock dividend
requirements $ 9 $ 10 $ 9 (10%) -- $ 18 $ 21 (14%)
======= ========= ========= =========== =========
Earnings applicable to
common shares $ 1,449 $ 1,141 $ 1,535 27% (6%) $ 2,984 $ 2,167 38%
======= ========= ========= =========== =========
Earnings per common share
Basic $ 1.32 $ 1.03 $ 1.40 28% (6%) $ 2.72 $ 1.96 39%
Diluted $ 1.26 $ 0.97 $ 1.34 30% (6%) $ 2.60 $ 1.85 41%
Average common shares outstanding
Basic 1,098,245,490 1,108,293,164 1,093,904,751 1,096,007,767 1,107,576,394
Diluted 1,145,401,309 1,173,311,370 1,146,854,036 1,146,322,769 1,171,016,370
Period end common shares
outstanding 1,124,979,347 1,133,573,998 1,134,181,285 1,124,979,347 1,133,573,998
Return on common equity 33.0% 31.4% 36.3% 34.7% 30.5%
</TABLE>
-------------------------------------------------
Note: Certain reclassifications have been made to prior period amounts to
conform to the current presentation.
F - 1
<PAGE>
MORGAN STANLEY DEAN WITTER & CO.
Consolidated Income Statement Information
(unaudited, dollars in millions)
<TABLE>
<CAPTION>
Percentage
Quarter Ended Change From: Six Months Ended
------------------------------ ----------------- -------------------
May 31, May 31, Feb 29, May 31, Feb 29, May 31, May 31, Percentage
2000 1999 2000 1999 2000 2000 1999 Change
--------- --------- -------- -------- ------- ------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment banking $ 1,370 $ 1,021 $ 1,335 34% 3% $ 2,705 $ 1,978 37%
Principal transactions:
Trading 2,501 1,890 2,277 32% 10% 4,778 3,549 35%
Investments (236) 150 431 (257%) (155%) 195 415 (53%)
Commissions 972 733 984 33% (1%) 1,956 1,352 45%
Fees:
Asset management, distribution and
administration 1,075 825 966 30% 11% 2,041 1,593 28%
Merchant and cardmember 447 357 443 25% 1% 890 698 28%
Servicing 349 310 287 13% 22% 636 563 13%
Interest and dividends 5,123 3,426 4,749 50% 8% 9,872 7,171 38%
Other 91 67 94 36% (3%) 185 118 57%
--------- --------- ---------- ---------- ----------
Total revenues 11,692 8,779 11,566 33% 1% 23,258 17,437 33%
Interest expense 4,420 3,015 3,932 47% 12% 8,352 6,157 36%
Provision for consumer loan losses 204 119 223 71% (9%) 427 296 44%
--------- --------- ---------- ---------- ----------
Net revenues 7,068 5,645 7,411 25% (5%) 14,479 10,984 32%
--------- --------- ---------- ---------- ----------
Compensation and benefits 3,097 2,413 3,408 28% (9%) 6,505 4,776 36%
Occupancy and equipment 174 153 175 14% (1%) 349 299 17%
Brokerage, clearing and exchange fees 130 127 121 2% 7% 251 241 4%
Information processing and communications 381 315 346 21% 10% 727 624 17%
Marketing and business development 502 381 471 32% 7% 973 776 25%
Professional services 217 191 183 14% 19% 400 353 13%
Other 272 207 275 31% (1%) 547 385 42%
--------- --------- ---------- ---------- ----------
Total non-interest expenses 4,773 3,787 4,979 26% (4%) 9,752 7,454 31%
--------- --------- ---------- ---------- ----------
Income before income taxes 2,295 1,858 2,432 24% (6%) 4,727 3,530 34%
Income tax expense 837 707 888 18% (6%) 1,725 1,342 29%
--------- --------- ---------- ---------- ----------
Net income $ 1,458 $ 1,151 $ 1,544 27% (6%) $ 3,002 $ 2,188 37%
========= ========= ========== ========== ==========
Preferred stock dividend requirements $ 9 $ 10 $ 9 (10%) -- $ 18 $ 21 (14%)
========= ========= ========== ========== ==========
Earnings applicable to common shares $ 1,449 $ 1,141 $ 1,535 27% (6%) $ 2,984 $ 2,167 38%
========= ========= ========== ========== ==========
Compensation and benefits as a % of net revenues 44% 43% 46% 45% 43%
</TABLE>
-----------------------------------------------------
Note: Certain reclassifications have been made to prior period amounts to
conform to the current presentation.
F - 2
<PAGE>
MORGAN STANLEY DEAN WITTER & CO.
Securities Income Statement Information
(unaudited, dollars in millions)
<TABLE>
<CAPTION>
Percentage
Quarter Ended Change From: Six Months Ended
------------------------------ ----------------- -------------------
May 31, May 31, Feb 29, May 31, Feb 29, May 31, May 31, Percentage
2000 1999 2000 1999 2000 2000 1999 Change
--------- --------- -------- -------- ------- ------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment banking $ 1,337 $ 994 $ 1,291 35% 4% $ 2,628 $ 1,928 36%
Principal transactions:
Trading 2,501 1,890 2,277 32% 10% 4,778 3,549 35%
Investments (242) 145 423 (267%) (157%) 181 406 (55%)
Commissions 968 733 979 32% (1%) 1,947 1,352 44%
Asset management, distribution and
administration fees 505 348 436 45% 16% 941 659 43%
Interest and dividends 4,354 2,897 4,003 50% 9% 8,357 6,059 38%
Other 91 67 94 36% (3%) 185 118 57%
--------- --------- ---------- --------- ---------
Total revenues 9,514 7,074 9,503 34% -- 19,017 14,071 35%
Interest expense 4,064 2,814 3,581 44% 13% 7,645 5,733 33%
--------- --------- ---------- --------- ---------
Net revenues 5,450 4,260 5,922 28% (8%) 11,372 8,338 36%
--------- --------- ---------- --------- ---------
Compensation and benefits 2,764 2,132 3,067 30% (10%) 5,831 4,220 38%
Occupancy and equipment 137 118 140 16% (2%) 277 228 21%
Brokerage, clearing and exchange fees 110 97 102 13% 8% 212 181 17%
Information processing and communications 244 185 214 32% 14% 458 356 29%
Marketing and business development 184 134 157 37% 17% 341 250 36%
Professional services 166 130 136 28% 22% 302 241 25%
Other 158 118 174 34% (9%) 332 223 49%
--------- --------- ---------- --------- ---------
Total non-interest expenses 3,763 2,914 3,990 29% (6%) 7,753 5,699 36%
--------- --------- ---------- --------- ---------
Income before income taxes 1,687 1,346 1,932 25% (13%) 3,619 2,639 37%
Income tax expense 597 511 688 17% (13%) 1,285 998 29%
--------- --------- ---------- --------- ---------
Net income $ 1,090 $ 835 $ 1,244 31% (12%) $ 2,334 $ 1,641 42%
========= ========= ========== ========= =========
Compensation and benefits as a % of net revenues 51% 50% 52% 51% 51%
Non-compensation expenses as a % of net revenues 18% 18% 16% 17% 18%
Profit margin (1) 20% 20% 21% 21% 20%
</TABLE>
-------------------------------------------------
(1) Net income as a % of net revenues.
F - 3
<PAGE>
MORGAN STANLEY DEAN WITTER & CO.
Asset Management Income Statement Information
(unaudited, dollars in millions)
<TABLE>
<CAPTION>
Percentage
Quarter Ended Change From: Six Months Ended
------------------------------ ----------------- -------------------
May 31, May 31, Feb 29, May 31, Feb 29, May 31, May 31, Percentage
2000 1999 2000 1999 2000 2000 1999 Change
--------- --------- -------- -------- ------- ------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment banking $ 33 $ 27 $ 44 22% (25%) $ 77 $ 50 54%
Principal transactions:
Investments 6 5 8 20% (25%) 14 9 56%
Commissions 4 0 5 * (20%) 9 0 *
Asset management, distribution and
administration fees 570 477 530 19% 8% 1,100 934 18%
Interest and dividends 19 7 13 171% 46% 32 34 (6%)
-------- --------- -------- --------- ---------
Total revenues 632 516 600 22% 5% 1,232 1,027 20%
Interest expense 3 3 0 -- * 3 5 (40%)
-------- --------- -------- --------- ---------
Net revenues 629 513 600 23% 5% 1,229 1,022 20%
-------- --------- -------- --------- ---------
Compensation and benefits 198 158 186 25% 6% 384 314 22%
Occupancy and equipment 22 23 21 (4%) 5% 43 47 (9%)
Brokerage, clearing and exchange fees 20 30 19 (33%) 5% 39 60 (35%)
Information processing and communications 19 21 18 (10%) 6% 37 42 (12%)
Marketing and business development 38 33 36 15% 6% 74 66 12%
Professional services 24 30 21 (20%) 14% 45 60 (25%)
Other 45 37 31 22% 45% 76 68 12%
-------- --------- -------- --------- ---------
Total non-interest expenses 366 332 332 10% 10% 698 657 6%
-------- --------- -------- --------- ---------
Income before income taxes 263 181 268 45% (2%) 531 365 45%
Income tax expense 107 76 110 41% (3%) 217 153 42%
-------- --------- -------- --------- ---------
Net income $ 156 $ 105 $ 158 49% (1%) $ 314 $ 212 48%
======== ========= ======== ========= =========
Compensation and benefits as a % of net revenues 31% 31% 31% 31% 31%
Non-compensation expenses as a % of net revenues 27% 34% 24% 26% 34%
Profit margin (1) 25% 20% 26% 26% 21%
</TABLE>
-------------------------------------------------
(1) Net income as a % of net revenues.
F - 4
<PAGE>
<TABLE>
<CAPTION>
MORGAN STANLEY DEAN WITTER & CO.
Credit Services Income Statement Information
(unaudited, dollars in millions)
Percentage
Quarter Ended Change From: Six Months Ended
---------------------------- ------------- ----------------
May 31, May 31, Feb 29, May 31, Feb 29, May 31, May 31, Percentage
2000 1999 2000 1999 2000 2000 1999 Change
------ ------ ------- ------ ------- ------ ------ ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fees:
Merchant and cardmember $ 447 $ 357 $ 443 25% 1% $ 890 $ 698 28%
Servicing 349 310 287 13% 22% 636 563 13%
-------- --------- ------- -------- ------
Total non-interest revenues 796 667 730 19% 9% 1,526 1,261 21%
Interest revenue 750 522 733 44% 2% 1,483 1,078 38%
Interest expense 353 198 351 78% 1% 704 419 68%
-------- --------- ------ -------- ------
Net interest income 397 324 382 23% 4% 779 659 18%
Provision for consumer loan losses 204 119 223 71% (9%) 427 296 44%
-------- --------- ------ -------- ------
Net credit income 193 205 159 (6%) 21% 352 363 (3%)
-------- --------- ------ -------- ------
Net revenues 989 872 889 13% 11% 1,878 1,624 16%
-------- --------- ------ -------- ------
Compensation and benefits 135 123 155 10% (13%) 290 242 20%
Occupancy and equipment 15 12 14 25% 7% 29 24 21%
Information processing and communications 118 109 114 8% 4% 232 226 3%
Marketing and business development 280 214 278 31% 1% 558 460 21%
Professional services 27 31 26 (13%) 4% 53 52 2%
Other 69 52 70 33% (1%) 139 94 48%
-------- --------- ------ -------- ------
Total non-interest expenses 644 541 657 19% (2%) 1,301 1,098 18%
-------- --------- ------ -------- ------
Income before income taxes 345 331 232 4% 49% 577 526 10%
Income tax expense 133 120 90 11% 48% 223 191 17%
--------- --------- ------- -------- ------
Net income $ 212 $ 211 $ 142 -- 49% $ 354 $ 335 6%
========= ========= ======= ======== ======
Compensation and benefits
as a % of net revenues 14% 14% 17% 15% 15%
Non-compensation expenses
as a % of net revenues 51% 48% 56% 54% 53%
Profit margin (1) 21% 24% 16% 19% 21%
</TABLE>
-------------------------------------------------
(1) Net income as a % of net revenues.
F - 5
<PAGE>
<TABLE>
<CAPTION>
MORGAN STANLEY DEAN WITTER & CO.
Credit Services Income Statement Information
(unaudited, dollars in millions)
(Managed loan basis)
Percentage Six Months
Quarter Ended Change From: Ended
----------------------------------- ------------- --------------
May 31, May 31, Feb 29, May 31, Feb 29, May 31, May 31, Percentage
2000 1999 2000 1999 2000 2000 1999 Change
-------- -------- ---------- ----- ----- ------- ------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fees:
Merchant and cardmember $ 591 $ 494 $ 585 20% 1% $ 1,176 $ 967 22%
Servicing 0 0 0 -- -- 0 0 --
-------- -------- -------- ------- ------
Total non-interest revenues 591 494 585 20% 1% 1,176 967 22%
Interest revenue 1,558 1,221 1,440 28% 8% 2,998 2,402 25%
Interest expense 688 449 646 53% 7% 1,334 900 48%
-------- -------- -------- ------- ------
Net interest income 870 772 794 13% 10% 1,664 1,502 11%
Provision for consumer loan losses 472 394 490 20% (4%) 962 845 14%
-------- -------- -------- ------- ------
Net credit income 398 378 304 5% 31% 702 657 7%
-------- -------- -------- ------- ------
Net revenues 989 872 889 13% 11% 1,878 1,624 16%
-------- -------- -------- ------- ------
Compensation and benefits 135 123 155 10% (13%) 290 242 20%
Occupancy and equipment 15 12 14 25% 7% 29 24 21%
Information processing and communications 118 109 114 8% 4% 232 226 3%
Marketing and business development 280 214 278 31% 1% 558 460 21%
Professional services 27 31 26 (13%) 4% 53 52 2%
Other 69 52 70 33% (1%) 139 94 48%
-------- -------- -------- ------- ------
Total non-interest expenses 644 541 657 19% (2%) 1,301 1,098 18%
-------- -------- -------- ------- ------
Income before income taxes 345 331 232 4% 49% 577 526 10%
Income tax expense 133 120 90 11% 48% 223 191 17%
-------- -------- -------- ------- ------
Net income $ 212 $ 211 $ 142 -- 49% $ 354 $ 335 6%
======== ======== ======== ======= ======
Compensation and benefits as a % of net revenues 14% 14% 17% 15% 15%
Non-compensation expenses as a % of net revenues 51% 48% 56% 54% 53%
Profit margin (1) 21% 24% 16% 19% 21%
---------------------------------------------------
(1) Net income as a % of net revenues.
</TABLE>
F - 6
<PAGE>
<TABLE>
<CAPTION>
MORGAN STANLEY DEAN WITTER & CO.
Financial Information and Statistical Data
(unaudited)
Quarter Ended Percentage Change From:
---------------------------------------------- --------------------------
May 31, 2000 May 31, 1999 Feb 29, 2000 May 31, 1999 Feb 29, 2000
--------------- --------------- ------------- ------------ ------------
MSDW
<S> <C> <C> <C> <C> <C>
Total assets (millions) $ 418,000 $ 342,000 $ 408,000 22% 2%
Period end common shares outstanding 1,124,979,347 1,133,573,998 1,134,181,285 (1%) (1%)
Book value per common share $ 15.66 $ 13.00 $ 15.31 20% 2%
Shareholders' equity (millions) (1) $ 18,510 $ 15,749 $ 18,252 18% 1%
Total capital (millions) (2) $ 46,954 $ 40,007 $ 43,540 17% 8%
SECURITIES ($ billions)
Private Client Group
Global financial advisors 13,513 12,038 13,072 12% 3%
Total client assets $ 660 $ 519 $ 682 27% (3%)
Fee-based client account assets (3) $ 128 $ 74 $ 121 73% 6%
Institutional Securities (4)
Mergers and acquisitions
announced transactions (5)
MSDW global market volume $ 671.0 $ 308.3 $ 423.6
Rank 1 3 1
Worldwide equity and related issues (5)
MSDW global market volume $ 26.5 $ 21.9 $ 13.1
Rank 2 1 2
ASSET MANAGEMENT ($ billions)
Assets under management or supervision
Products offered primarily to individuals
Mutual funds
Equity $ 106 $ 84 $ 115 26% (8%)
Fixed income 49 56 51 (13%) (4%)
Money markets 52 42 51 24% 2%
-------------- -------------- --------------
Total mutual funds 207 182 217 14% (5%)
ICS Assets 29 21 27 38% 7%
Other 42 38 48 11% (13%)
-------------- -------------- --------------
Sub-total Individual 278 241 292 15% (5%)
-------------- -------------- --------------
Products offered primarily to institutional clients
Mutual funds 35 29 36 21% (3%)
Separate accounts, pooled vehicle
and other arrangements 132 135 127 (2%) 4%
-------------- -------------- --------------
Sub-total Institutional 167 164 163 2% 2%
-------------- -------------- --------------
Total assets under management or supervision $ 445 $ 405 $ 455 10% (2%)
============== ============== ==============
</TABLE>
-------------------------------------------------
(1) Includes preferred and common equity and preferred securities issued by
subsidiaries.
(2) Includes preferred and common equity, preferred securities issued by
subsidiaries, capital units and non-current portion of long-term debt.
(3) Represents the amount of assets in client accounts where the basis of
payment for services is a fee calculated on those assets.
(4) Source: Thomson Financial Securities Data.
(5) Information is year to date and stated on a calendar year basis.
F - 7
<PAGE>
<TABLE>
<CAPTION>
MORGAN STANLEY DEAN WITTER & CO.
Financial Information and Statistical Data
(unaudited, dollars in millions)
Percentage Six Months
Quarter Ended Change From: Ended
---------------------------------- ------------- ---------------
May 31, May 31, Feb 29, May 31, Feb 29, May 31, May 31, Percentage
2000 1999 2000 1999 2000 2000 1999 Change
------- -------- -------- ----- ------ ------ ------ ---------
CREDIT SERVICES
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Owned consumer loans
Period end $ 22,506 $ 14,588 $ 23,757 54% (5%) $ 22,506 $ 14,588 54%
Average $ 23,459 $ 14,664 $ 23,191 60% 1% $ 23,326 $ 15,533 50%
Managed consumer loans (1)
Period end $ 43,701 $ 32,805 $ 41,988 33% 4% $ 43,701 $ 32,805 33%
Average $ 42,961 $ 32,258 $ 41,023 33% 5% $ 41,997 $ 32,575 29%
Interest yield 13.69% 14.39% 13.35% (0.70 pp) 0.34 pp 13.52% 14.23% (0.71 pp)
Interest spread 7.31% 8.81% 7.03% (1.50 pp) 0.28 pp 7.17% 8.61% (1.44 pp)
Net charge-off rate 4.21% 5.55% 4.66% (1.34 pp) (0.45 pp) 4.43% 5.91% (1.48 pp)
Delinquency rate (over 30 days) 5.11% 5.94% 5.57% (0.83 pp) (0.46 pp) 5.11% 5.94% (0.83 pp)
Credit Card
Transaction volume
(billions) $ 21.9 $ 16.3 $ 23.5 34% (7%) $ 45.4 $ 31.8 43%
Accounts (millions) 40.4 37.5 39.2 8% 3% 40.4 37.5 8%
Active accounts (millions) 23.1 21.2 22.8 9% 2% 23.1 21.2 9%
Average receivables per average
active account (actual $) $ 1,868 $ 1,536 $ 1,816 22% 3% $ 1,842 $ 1,544 19%
Discover Business Services'
increase in merchant locations
(thousands) 174 155 99 12% 76% 273 252 8%
</TABLE>
----------------------------------------------------------------------
(1) Includes owned and securitized consumer loans.
F - 8
|
|