Alex. Brown reports results for 1994.BALTIMORE--(BUSINESS WIRE)--Jan. 25, 1995--Alex. Brown Inc. Wednesday Wednesday: see week. reported financial results for 1994. Revenues for the year ended Dec. 31, 1994 totalled $605.5 million, a decrease of 4% from the prior year, and net earnings of $70.9 million represented a 21% decrease from the prior year. Primary earnings per share were $4.60, a decrease of 18% from $5.61 in 1993. Book value per share was $26.13 at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 1994 and the return on average stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. was 19.7% Results of operations --------------------- A.B. Krongard, chairman and chief executive officer comment, "The securities industry faced significant challenges in 1994 and we were unable to match 1993's record performance. Nevertheless, we are pleased that our long term strategy, which emphasizes balance and focus in our businesses, coupled with careful attention to costs and risk management, was again validated val·i·date tr.v. val·i·dat·ed, val·i·dat·ing, val·i·dates 1. To declare or make legally valid. 2. To mark with an indication of official sanction. 3. . "Consequently, we were able to record the second highest revenues and earnings in our history." Krongard emphasized the following points relative to 1994 performance: o Investment banking revenues decreased 22% to $199.1 million, primarily due to a decline in underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. activity. Partially offsetting this decline was a significant increase in fee revenues from merger and advisory work, which more than doubled as compared to 1993. Alex (language) Alex - 1. A polymorphic language being developed by Stephen Crawley <sxc@itd.dtso.oz.au> of Defence Science & Tech Org, Australia. Alex has abstract data types, type inference and inheritance. 2. merger and advisory transactions based on the number of transactions completed in 1994. o Commission revenues increased to $140.0 million during 1994, up 6% from 1993, primarily as a result of growth in our institutional commission business. o Principal transaction revenues declined 9% to $118.5 million, due to the unsettled market conditions experienced throughout most of the year. We were fortunate not to have suffered any major inventory losses during the 1994. o Advisory and other revenues totalled $79.3 million, a 25% increase over $63.4 million in 1993. The largest contributor to this increase was the gain of $7.8 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the sale of our interests in Alex. Brown Kleinwort Benson Kleinwort Benson was a merchant bank based in London. Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Advisory Holding company. Increases in revenues from the company's asset management operations and gains realized on the value of merchant banking investments also contributed to revenue growth. Assets under management totalled approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $7.7 billion at year-end 1994. o Interest and dividend revenues increased by 39% to $68.6 million in 1994, due to higher interest rates and an increase in margin loans generated by our private client and correspondent businesses. The firm's portfolio of margin loans totalled $809.4 million at the end of 1994 and average margin balances increased 21% over 1993. Stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program continues ---------------------------------- Alex. Brown repurchased more than 1.7 million shares of its common stock in 1994. Since the inception of the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. program in 1989, approximately 5.7 million shares have been repurchased. Under the company's existing stock repurchase program, Alex. Brown has authorization The right or permission to use a system resource; the process of granting access. See access control. to repurchase an additional 1.4 million shares. Quarterly dividend of $.175 per share authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: ------------------------------------------------ Alex. Brown's board of directors approved a cash dividend on Alex. Brown common stock of $.175 per share, payable on Feb. 15, 1995 to stockholders of record on Feb. 6, 1995. Balance sheet strength and growth in book value ----------------------------------------------- Krongard further noted, "We continue to emphasize balance sheet strength. With total stockholders' equity of $373.4 million at Dec. 31, 1994, Alex. Brown is extremely well capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. . Book value per share was $26.13 at year-end, based on 14.3 million shares outstanding, an increase of 16% since year-end 1993." Krongard concluded his remarks by saying, "The market environment during 1994 was not as accommodating as that which we enjoyed during 1993. Regardless of market conditions, however we are committed to efforts which benefit our stockholders. "We continue to manage our business to maximize returns across market cycles, building client service capabilities which enable us to serve the interests of our clients in periods of setback setback In architecture, a steplike recession in the profile of a high-rise building. Usually dictated by building codes to allow sunlight to reach streets and lower floors, the building must take another step back from the street for every specified added height interval. as well as success. The identity of ownership between our employees and our stockholders motivates us to always act in the best long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. interests of the Firm." Alex. Brown is a holding company whose principal subsidiary is Alex. Brown & Sons Inc., the oldest investment banking firm in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Alex. Brown is traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol "AB." -0-
Summary Financial Information
(in thousands, except per share amounts)
12 months ended Three months ended
Dec. 31, Dec. 31, % Dec. 31, Dec. 31, %
1994 1993 change 1994 1993 change
-------- -------- ------ --------- --------- ------
(unaudited)
Total revenues $605,488 $628,203 -4% $153,750 $218,774 -30% Net earnings $ 70,871 $ 89,226 -21% $ 20,083 $ 38,914 -48% Earnings per share: Primary $ 4.60 $ 5.61 -18% $ 1.34 $ 2.42 -45% Fully diluted $ 4.05 $ 5.09 -20% $ 1.17 $ 2.13 -45% -0-
ALEX. BROWN INC. AND SUBSIDIARIES
Consolidated statement of earnings
(in thousands, except per share amounts)
12 months ended Three months ended
Dec. 31, Dec. 31, % Dec. 31, Dec. 31, %
1994 1993 change 1994 1993 change
-------- -------- ------ --------- --------- ------
(unaudited)
Revenues:
Commissions $140,026 $131,696 6% $ 34,395 $ 37,402 -8%
Investment
banking 199,145 254,076 -22% 48,500 104,671 -54%
Principal
transactions 118,468 129,774 -9% 26,879 41,702 -36%
Interest and
dividends 68,597 49,278 39% 19,558 15,497 26%
Advisory and
other 79,252 63,379 25% 24,418 19,502 25%
-------- -------- --- -------- --------
Total 605,488 628,203 -4% 153,750 218,774 -30%
-------- -------- --- -------- --------
Operating expenses:
Compensation
and benefits 329,504 344,344 -4% 76,244 115,060 -34%
Communications 28,161 24,083 17% 7,739 6,798 14%
Occupancy and
equipment 32,160 26,461 22% 10,468 7,386 42%
Interest 21,920 14,924 47% 5,755 4,401 31%
Floor brokerage,
exchange and
clearing fees 16,230 13,804 18% 4,404 3,681 20%
Other operating
expenses 59,232 56,252 5% 16,216 17,655 -8%
-------- -------- --- -------- --------
Total 487,207 479,868 2% 120,826 154,981 -22%
-------- -------- --- -------- --------
Earnings before
income taxes 118,281 148,335 -20% 32,924 63,793 -48%
Income taxes 47,410 59,109 -20% 12,841 24,879 -48%
-------- -------- --- -------- --------
Net earnings $ 70,871 $ 89,226 -21% $ 20,083 $ 38,914 -48%
======== ======== === ======== ========
Earnings per share:
Primary $ 4.60 $ 5.61 -18% $ 1.34 $ 2.42 -45%
======== ======== === ======== ========
Fully diluted $ 4.05 $ 5.09 -20% $ 1.17 2.13 -45%
======== ======== === ======== ========
Weighted average
number of shares
outstanding:
Primary 15,416 15,916 -3% 15,020 16,109 -7%
======== ======== === ======== ========
Fully diluted 17,988 17,809 1% 17,542 18,549 -5%
======== ======== === ======== ========
Cash dividends
declared per
share $ 0.675 $ 0.575 17% $ 0.175 $ 0.15 17%
======== ======== === ======== ========
-0-
Certain expense items in prior periods have been reclassified to
conform to current presentation
CONTACT: Alex. Brown Inc., Baltimore Baltimore, city (1990 pop. 736,014), N central Md., surrounded by but politically independent of Baltimore co., on the Patapsco River estuary, an arm of Chesapeake Bay; inc. 1745. Beverly Beverly, city (1990 pop. 38,195), Essex co., NE Mass., on Massachusetts Bay; inc. as a city 1894. Its chief manufactures are electronic and scientific equipment, consumer goods, and chemicals. L. Wright, 410/727-1700 Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the : abrown at access.digex.net |
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