Alex. Brown reports results for third quarter, nine months and announces dividend.Thursday Thursday: see week. reported financial results for the third quarter of 1995. Revenues for the quarter ended Sept. 30, 1995 totalled $210.3 million, an increase of 45% from the prior year, and net earnings were $22.9 million, a 73% increase from the prior year. Primary earnings per share were $1.45, an increase of 67% from 87 cents in the prior year. For the nine months of 1995, revenues totalled $562.7 million, a 25% increase from the prior year and net earnings were $62.3 million, a 23% increase from the prior year. Primary earnings per share for the nine months were $4.06, a 24% increase from the prior year and the highest in the Company's history for the nine month period. Book value per share was $29.55 at quarter-end. Results of Operations A. B. Krongard A.B. "Buzzy" Krongard, full name Alvin Bernard Krongard,[1] is the current Executive Director of the Central Intelligence Agency, appointed by George J. Tenet on March 16, 2001. , chairman and chief executive officer, commented, "Third quarter results reflected a strong performance across our business lines. A good balance among the Firm's businesses enabled us to achieve an 18% pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta margin for the third quarter, up from 15% in the third quarter of the prior year. We are hopeful that the future will permit our continued success and we remain mindful mind·ful adj. Attentive; heedful: always mindful of family responsibilities. See Synonyms at careful. mind of the fragility of market conditions and attendant ATTENDANT. One who owes a duty or service to another, or in some sort depends upon him. Termes de la Ley, h.t. As to attendant terms, see Powell on Morts. Index, tit. Attendant term; Park on Dower, c. 1 7. consequences." Krongard emphasized the following points relative to performance: o Investment banking revenues increased 68% to $76.4 million, as compared to the third quarter of the prior year, primarily due to an increase 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. activities. 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. ranked #2 in the number of initial public offerings managed and #3 in the number of common stock offerings managed during the first nine months of 1995. Alex. Brown & Sons ranked #8 among all advisors of U.S. merger and advisory transactions based on the number of transactions completed during the first nine months of 1995. o Commission revenues increased 34% to $45.1 million during the third quarter, primarily as a result of growth in private client and institutional listed commission business. o Principal transaction revenues increased 16% to $34.7 million during the third quarter, primarily reflecting increases in OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). trading. Partially offsetting this increase were declines in fixed income trading. o Interest and dividend revenues increased by 51% to $28.0 million in the third quarter due to higher interest rates and a substantial increase in margin loans generated by our private client business. Margin loans at the end of the quarter totalled $1.2 billion, a 50% increase over the third quarter of the prior year, while average margin balances increased 38% over the third quarter of the prior year. o Advisory and other revenues totalled $26.0 million in the third quarter, a 46% increase as compared to $17.7 million in the prior year. This increase was primarily attributable to increases in investment and advisory revenues. Investment revenues of $5.5 million consisted of both realized gains Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. and increases in the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of investments. Correspondent services fees increased 36% for the quarter. Assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. totalled approximately $10.8 billion at the end of the third quarter. Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. Program 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 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. approximately 1.4 million additional shares. Quarterly Dividend Alex. Brown's board of directors approved a quarterly cash dividend of 20 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. payable on November November: see month. 9, 1995 to stockholders of record on October October: see month. 30, 1995. Balance Sheet Strength and Growth in Book Value Krongard further noted, "We continue to emphasize balance sheet strength. With total 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. of $458.3 million at September 30, 1995, 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 $29.55 at quarter-end, based on 15.5 million shares outstanding. Book value per share has increased 18% over the third quarter of 1994. During the quarter, Alex. Brown completed its first public senior notes offering, selling $110 million of 7 5/8%notes due 2005. These notes trade 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 05'." Krongard concluded his remarks by saying, "We wish to reiterate re·it·er·ate tr.v. re·it·er·at·ed, re·it·er·at·ing, re·it·er·ates To say or do again or repeatedly. See Synonyms at repeat. re·it our continuing dedication to serving the interests of our fellow stockholders. We remain confident about our future because we believe that we have a viable strategy, employees who are professionally superior and personally dedicated, a strong culture and a shared vision. "Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , the interests of our stockholders and employees are tightly bound by virtue of the significant management and employee ownership positions in our Company. Together we look forward to promoting the 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. growth of our Firm." Alex. Brown is a holding company whose principal subsidiary is Alex. Brown & Sons Incorporated, 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. . The Common Stock of Alex. Brown is traded on the New York Stock Exchange under the symbol "AB." -0-
Summary Financial Information
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
Sept. 30, Sept. 30, Percent
1995 1994 Change
Total revenues $210,278 $145,451 45% Net earnings $ 22,942 $ 13,278 73% Earnings per share: Primary $ 1.45 $ 0.87 67% Fully diluted $ 1.28 $ 0.78 64%
Nine Months Ended
Sept. 30, Sept. 30, Percent
1995 1994 Change
Total revenues $562,729 $451,738 25% Net earnings 62,334 $ 50,788 23% Earnings per share: Primary 4.06 $ 3.27 24% Fully diluted 3.54 $ 2.90 22%
ALEX. BROWN INCORPORATED AND SUBSIDIARIES
Consolidated Statements of Earnings
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
Sept. 30, Sept. 30, Percent
1995 1994 Change
------------- ------------ ------
Revenues:
Commissions $ 45,127 $ 33,737 34%
Investment banking 76,423 45,537 68%
Principal transactions 34,744 29,852 16%
Interest and dividends 28,023 18,597 51%
Advisory and other 25,961 17,728 46%
-------- --------
Total 210,278 145,451 45%
-------- --------
Operating expenses:
Compensation and benefits 117,993 82,451 43%
Communications 8,250 7,128 16%
Occupancy and equipment 9,800 7,805 26%
Interest 9,483 6,114 55%
Floor brokerage, exchange
and clearing fee 4,812 4,125 17%
Other operating expenses 21,703 15,513 40%
-------- --------
Total 172,041 123,136 40%
-------- --------
Earnings before income taxes 38,237 22,315 71%
Income taxes 15,295 9,037 69%
-------- --------
Net earnings $ 22,942 $ 13,278 73%
======== ========
Earnings per share:
Primary $ 1.45 $ 0.87 67%
======== ========
Fully diluted $ 1.28 $ 0.78 64%
======== ========
Weighted average number of shares outstanding:
Primary 15,858 15,340 3%
======== ========
Fully diluted 18,325 17,834 3%
======== ========
Cash dividends declared
per share $ 0.200 $ 0.175 14%
======== ========
-0-
Nine Months Ended
Sept. 30, Sept. 30, Percent
1995 1994 Change
------------- ------------ ------
Revenues:
Commissions $128,862 $105,631 22%
Investment banking 191,195 149,299 28%
Principal transactions 100,250 92,935 8%
Interest and dividends 73,256 49,039 49%
Advisory and other 69,166 54,834 26%
-------- --------
Total 562,729 451,738 25%
-------- --------
Operating expenses:
Compensation and benefits 309,731 253,269 22%
Communications 24,092 20,423 18%
Occupancy and equipment 29,520 21,701 36%
Interest 24,530 16,165 52%
Floor brokerage, exchange
and clearing fee 13,840 11,826 17%
Other operating expenses 57,126 42,997 33%
-------- --------
Total 458,839 366,381 25%
-------- --------
Earnings before income
taxes 103,890 85,357 22%
Income taxes 41,556 34,569 20%
-------- --------
Net earnings $ 62,334 $ 50,788 23%
======== ========
Earnings per share:
Primary $ 4.06 $ 3.27 24%
======== ========
Fully diluted $ 3.54 $ 2.90 22%
======== ========
Weighted average number of
shares outstanding:
Primary 15,364 15,549 -1%
======== ========
Fully diluted 18,077 18,076 -
======== ========
Cash dividends declared
per share $ 0.575 $ 0.500 15%
======== ========
-0-
Certain items in the prior period 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 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@access.digex.net |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion