Bear Stearns Reports 2004 Second Quarter Results; Earnings up 24.0% to $347.8 Million or $2.49 Per Share.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- The Bear Stearns The Bear Stearns Companies, Inc. (NYSE: BSC) is the parent company of Bear, Stearns & Co. Inc., one of the largest global investment banks and securities trading and brokerage firms in the world. Companies Inc. (NYSE NYSE See: New York Stock Exchange :BSC (Binary Synchronous Communications) See bisync. ) --Net revenues up 17.8% to $1.7 billion from $1.5 billion in 2nd quarter 2003 --Global Clearing Services revenue up 19.4% to $223.7 million from $187.4 million --Record Fixed Income net revenues up 10.4% to reach new high of $844.4 million The Bear Stearns Companies Inc. (NYSE:BSC) today reported earnings per share (diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ) of $2.49 for the second quarter ended May 31, 2004, up 21.5% from $2.05 per share for the second quarter of 2003. Net income for the second quarter of 2004 was $347.8 million, up 24.0% from $280.4 million for the second quarter of 2003. Net revenues for the 2004 second quarter were $1.7 billion, up 17.8% from $1.5 billion for the 2003 second quarter. The annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on common 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. for the second quarter of 2004 was 19.6% and 20.4% for the trailing 12-month period ended May 31, 2004. "I am extremely pleased to report that Bear Stearns posted excellent results for the second quarter and record results the first half of 2004," said James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. E. Cayne, chairman and chief executive officer. "This success highlights the diversity of our business mix and the sustainability of the underlying earnings power of this franchise. We saw robust activity across the fixed income businesses and steady improvement in clearing, wealth management and many of the equity areas. Our dedication to comprehensively serving our clients' needs enables us to drive shareholder value and to continue to produce industry-leading returns." A brief discussion of the firm's business segments follows: CAPITAL MARKETS Capital Markets net revenues for the second quarter of 2004 were $1.35 billion, up 14.7% from $1.18 billion for the quarter ended May 31, 2003. --Institutional Equities net revenues were $252.0 million, up 33.1% from $189.3 million for the second quarter of 2003. Revenues increased in the domestic and international equity sales and trading areas reflecting higher market volumes and increased market share. A decline in customer activity levels and reduced market volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the had a negative effect on equity derivative In finance, an equity derivative is a class of financial instruments whose value is at least partly derived from one or more underlying equity securities. Market participants trade equity derivatives in order to transfer or transform certain risks associated with the , risk arbitrage The purchase of stock in a corporation that appears to be the target of an imminent takeover in the hope of making large profits if the takeover occurs. Risk arbitrage is practiced by investors called risk arbitrageurs. and convertible arbitrage Convertible Arbitrage An investing strategy that involves the long position on a convertible security and a short position in its converting common stock. Notes: revenues. The results of Bear Wagner Specialists, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control were reported on a consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: basis for the first time in the first quarter of 2004. This change in reporting increased the 2004 second quarter net revenues by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $50 million compared to the prior year quarter. --Fixed Income net revenues were a record $844.4 million, up 10.4% from $765.2 million in the comparable prior year quarter. Fixed Income reported its best ever quarterly results with the mortgage area operating at record levels and the interest rate product areas continuing to provide strong results. Mortgage related revenues were driven by active customer flow in the ARMs, non-agency and commercial mortgage markets. In the credit businesses, the high yield and corporate bond trading areas experienced lower levels of activity from prior year record levels as credit spreads widened during the quarter. --Investment Banking net revenues were $254.9 million in the second quarter of 2004, up 14.1% from the $223.4 million in the comparable prior year period. Equity 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. continued to show improvement, while merger and acquisition advisory fees were on par with the prior year quarter. GLOBAL CLEARING SERVICES Second quarter 2004 Global Clearing Services net revenues were $223.7 million, up 19.4% from $187.4 million in the second quarter of 2003. Average customer margin debt balances for the quarter ended May 31, 2004 were $46.7 billion, up 18.2% from $39.5 billion in the prior year quarter. Increased customer activity, particularly in the prime brokerage Prime Brokerage A special group of services that many brokerages give to special clients. The services provided under prime brokering are securities lending, leveraged trade executions, and cash management, among other things. area, was evident as higher margin debt, customer short, and stock borrow Borrow To obtain or receive money on loan with the promise or understanding that it will be repaid. balances drove revenue growth. WEALTH MANAGEMENT Wealth Management net revenues for the quarter ended May 31, 2004 were $176.5 million, up 41.9% from $124.4 million in the second quarter of 2003. --Private Client Services net revenues were $117.3 million, an increase of 28.7% from $91.1 million in the 2003 second quarter. This revenue growth was fueled by the rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective in the equity markets, increased customer trading volume Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. and the hiring of high producing brokers. --Asset Management net revenues grew 78.1% to $59.2 million for the second quarter of 2004 from $33.3 million in the prior year's quarter. Excluding revenues of $21.5 million from the sale of certain mutual funds assets to The Dreyfus Corporation Dreyfus Corporation is a leading mutual fund financial firm founded in 1951. It is an industry leader having been the first to advertise to consumers, and create a high yield fund. Though it has its main office in New York City, it is a subsidiary of Pittsburgh based Mellon Financial. , Asset Management revenues increased 13.5% to $37.7 million. 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. increased to $27.3 billion on May 31, 2004 from $24.4 billion on May 31, 2003. Excluding assets transferred to Dreyfus, assets under management increased 29.5% from the second quarter of 2003. EXPENSES --Compensation as a percentage of net revenues was 49.9% in the second quarter of 2004 as compared with 47.3% for the second quarter of 2003. Year to date compensation to net revenues was 49.5% for 2004 versus 48.7% for 2003. --Non-compensation expenses were $352.0 million for the quarter ended May 31, 2004, an increase of 2.8% from $342.4 million in the 2003 quarter. The ratio of non-compensation expenses to net revenues was 20.4% in the second quarter 2004 versus 23.4% in the prior year quarter. The increase in non-compensation expenses is primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the consolidation of the results of Bear Wagner Specialists, LLC in the May 2004 income statement. The pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta profit margin increased to 29.7% in the quarter ended May 31, 2004 from 29.3% in the 2003 second quarter. As of May 31, 2004, total capital, including stockholders' equity and 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. borrowings, was approximately $40.0 billion. Book value as of May 31, 2004 was $53.38 per share, based on 144.3 million shares outstanding. Update on Mutual Fund Investigation In relation to an ongoing investigation by the Securities and Exchange Commission (SEC) into mutual fund trading practices, Bear, Stearns & Co. Inc. and Bear, Stearns Securities Corp. have received a notice that the staff of the SEC is considering recommending that the commission bring a civil injunctive
conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. issue an administrative cease and desist order An order issued by an Administrative Agency or a court proscribing a person or a business entity from continuing a particular course of conduct. The force and effect of a cease and desist order are similar to those of an Injunction issued by a court. against them. Such action could result in, among other things, disgorgement Disgorgement A repayment of ill-gotten gains that is imposed on wrongdoers by the courts. Funds that were received through illegal or unethical business transactions are disgorged, or paid back, with interest to those affected by the action. , civil monetary penalties, and/or other remedial REMEDIAL. That which affords a remedy; as, a remedial statute, or one which is made to supply some defects or abridge some superfluities of the common law. 1 131. Com. 86. The term remedial statute is also applied to those acts which give a new remedy. Esp. Pen. Act. 1. sanctions Sanctions is the plural of sanction. Depending on context, a sanction can be either a punishment or a permission. The word is a contronym. Sanctions involving countries: Quarterly Common Stock Cash Dividend Declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. The Board of Directors of The Bear Stearns Companies Inc. declared a regular, 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. on the outstanding shares of common stock, payable July July: see month. 30, 2004, to stockholders of record on July 16, 2004. Quarterly Preferred Cash Dividends Declared The Board of Directors of The Bear Stearns Companies Inc. declared the following regular quarterly dividends: (i) a cash dividend of $3.075 per share on the outstanding shares of 6.15% Cumulative Preferred Stock Cumulative preferred stock Preferred stock whose dividends accrue, should the issuer not make timely dividend payments. Related: Non-cumulative preferred stock. , Series E (which is equivalent to 76.875 cents per related depositary DEPOSITARY, contracts. He with whom a deposit is confided or made. 2. It is, the essence of the contract of deposits that it should be gratuitous on the part 'of the depositary. 9 M. R. 470. share); (ii) a cash dividend of $2.86 per share on the outstanding shares of 5.72% Cumulative Preferred Stock, Series F (which is equivalent to 71.50 cents per related depositary share); and (iii) a cash dividend of $2.745 per share on the outstanding shares of 5.49% Cumulative Preferred Stock, Series G (which is equivalent to 68.625 cents per related depositary share) all payable July 15, 2004 to stockholders of record on June June: see month. 30, 2004. Founded in 1923, The Bear Stearns Companies Inc. (NYSE: BSC) is the parent company of Bear, Stearns & Co. Inc., a leading investment banking and securities trading securities trading, financial activity involving transactions of property such as stocks, bonds, commodities, and currency (see securities). Although the trading of stocks and bonds dates back several centuries in many Western nations, the development of the and brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. firm. With approximately $40.0 billion in total capital, Bear Stearns serves governments, corporations, institutions and individuals worldwide. The company's business includes corporate finance and mergers and acquisitions, institutional equities and fixed income sales and trading, securities research, private client services, derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. , foreign exchange and futures sales and trading, asset management and custody The care, possession, and control of a thing or person. The retention, inspection, guarding, maintenance, or security of a thing within the immediate care and control of the person to whom it is committed. The detention of a person by lawful authority or process. services. Through Bear, Stearns Securities Corp., it offers financing, securities lending Securities Lending When a brokerage lends securities owned by its clients to short sellers. Notes: This allows brokers to create additional revenue (commissions) on the short sale transaction. , clearing and technology solutions to hedge funds hedge fund, in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" , broker-dealers and investment advisors Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and . Headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , the company has approximately 10,500 employees worldwide. For additional information about Bear Stearns, please visit the firm's website at http://www.bearstearns.com. Financial Tables Attached Certain statements contained in this discussion are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those discussed in the forward-looking statements. For a discussion of the risks and uncertainties that may affect the company's future results, please see "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations" and "Risk Management" in the company's 2003 Annual Report to Stockholders and similar sections of the company's quarterly reports on Form 10-Q Form 10-Q See 10-Q. which have been filed with the Securities and Exchange Commission. A conference call to discuss the company's results will be held on Wednesday Wednesday: see week. , June 16, 2004, at 10 a.m., EST EST electroshock therapy. EST abbr. electroshock therapy . The call will be open to the public. Those wishing to listen to the conference call should dial 1-888-243-0813 (or 1-703-925-2400 for international callers) at least 15 minutes prior to the commencement of the call to ensure connection. The conference call will also be accessible through our website at http://www.bearstearns.com. For those unable to listen to the live broadcast of the call, a replay will be available on our website or by dialing 1-888-266-2081 (or 1-703-925-2533 for international callers) at approximately 1 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. . The pass code for the replay is 489322. The replay will be available until midnight on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , July 2, 2004. If you have any questions on how to obtain access to the conference call, please contact Joanne Joanne is a common given name for females, being a variant of Joanna, the feminine form of John and is derived from the Latin name Johanna and has a hebrew meaning of "God is Gracious" People with the given name Joanne:
THE BEAR STEARNS COMPANIES INC.
SEGMENT DATA
(UNAUDITED)
Three Months Ended % Change From
----------------------------------- ----------------
May 31, May 31, Feb. 29, May 31, Feb. 29,
2004 2003 2004 2003 2004
----------- ----------- ----------- ------- --------
(In thousands)
NET REVENUES
Capital Markets
Institutional
Equities $ 252,004 $ 189,346 $ 297,400 33.1% (15.3%)
Fixed Income 844,436 765,190 822,268 10.4% 2.7%
Investment
Banking 254,872 223,439 253,179 14.1% 0.7%
---------- ---------- ----------
Total Capital
Markets 1,351,312 1,177,975 1,372,847 14.7% (1.6%)
Global Clearing
Services 223,676 187,405 217,614 19.4% 2.8%
Wealth Management
Private Client
Services (1) 117,272 91,142 110,897 28.7% 5.7%
Asset
Management 59,244 33,263 41,890 78.1% 41.4%
---------- ---------- ----------
Total Wealth
Management 176,516 124,405 152,787 41.9% 15.5%
Other (2) (27,966) (27,065) (17,325) (3.3%) (61.4%)
---------- ---------- ----------
Total net
revenues $1,723,538 $1,462,720 $1,725,923 17.8% (0.1%)
========== ========== ==========
PRE-TAX INCOME
Capital Markets $ 491,002 $ 483,971 $ 516,369 1.5% (4.9%)
Global Clearing
Services 86,705 37,798 78,502 129.4% 10.4%
Wealth Management 25,719 4,948 20,867 419.8% 23.3%
Other (2) (91,950) (98,587) (84,760) 6.7% (8.5%)
---------- ---------- ----------
Total
pre-tax
income $ 511,476 $ 428,130 $ 530,978 19.5% (3.7%)
========== ========== ==========
(1) Private Client Services Detail:
Gross Revenues, before
transfer to
Capital Markets
Segment $ 139,266 $ 115,033 $ 137,629
Revenue
transferred to
Capital
Markets
segment (21,994) (23,891) (26,732)
---------- ---------- ----------
Private Client
Services net
revenues $ 117,272 $ 91,142 $ 110,897
========== ========== ==========
(2) Includes consolidation and elimination entries, unallocated
revenues (predominantly interest) and certain corporate
administrative functions, including certain legal costs and costs
related to the Capital Accumulation Plan for Senior Managing
Directors ("CAP Plan").
Note: Certain reclassifications have been made to prior period amounts
within the Wealth Management segment to conform to the current
period's presentation.
Six Months Ended % Change
----------------------- ---------
May 31, May 31,
2004 2003
----------- ----------- ---------
(In thousands)
NET REVENUES
Capital Markets
Institutional Equities $ 549,404 $ 465,807 17.9%
Fixed Income 1,666,704 1,556,407 7.1%
Investment Banking 508,051 411,203 23.6%
---------- ----------
Total Capital Markets 2,724,159 2,433,417 11.9%
Global Clearing Services 441,290 363,183 21.5%
Wealth Management
Private Client Services (1) 228,169 175,295 30.2%
Asset Management 101,134 64,695 56.3%
---------- ----------
Total Wealth Management 329,303 239,990 37.2%
Other (2) (45,291) (58,436) 22.5%
---------- ----------
Total net revenues $3,449,461 $2,978,154 15.8%
========== ==========
PRE-TAX INCOME
Capital Markets $1,007,371 $ 949,890 6.1%
Global Clearing Services 165,207 89,948 83.7%
Wealth Management 46,586 10,667 336.7%
Other (2) (176,710) (197,176) 10.4%
---------- ----------
Total pre-tax income $1,042,454 $ 853,329 22.2%
========== ==========
(1) Private Client Services Detail:
Gross Revenues, before transfer to
Capital Markets Segment $ 276,895 $ 218,502
Revenue transferred to Capital
Markets segment (48,726) (43,207)
-------- ----------
Private Client Services net
revenues $228,169 $ 175,295
======== ==========
(2) Includes consolidation and elimination entries, unallocated
revenues (predominantly interest) and certain corporate
administrative functions, including certain legal costs and costs
related to the Capital Accumulation Plan for Senior Managing
Directors ("CAP Plan").
Note: Certain reclassifications have been made to prior period amounts
within the Wealth Management segment to conform to the current
period's presentation.
THE BEAR STEARNS COMPANIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended % Change From
-------------------------------------- --------------
May May Feb. May Feb.
31, 31, 29, 31, 29,
2004 2003 2004 2003 2004
------------ ------------ ------------ ------- ------
(In thousands, except share and per
share data)
REVENUES
Commissions $ 307,150 $ 267,682 $ 308,103 14.7% (0.3%)
Principal
transactions 915,469 809,915 946,862 13.0% (3.3%)
Investment
banking 261,564 212,550 260,410 23.1% 0.4%
Interest and
dividends 498,469 522,565 520,464 (4.6%) (4.2%)
Other income 81,146 37,500 45,606 116.4% 77.9%
------------ ------------ ------------
Total
revenues 2,063,798 1,850,212 2,081,445 11.5% (0.8%)
Interest
expense 340,260 387,492 355,522 (12.2%) (4.3%)
------------ ------------ ------------
Revenues,
net of
interest
expense 1,723,538 1,462,720 1,725,923 17.8% (0.1%)
------------ ------------ ------------
NON-INTEREST
EXPENSES
Employee
compensation
and benefits 860,053 692,181 849,148 24.3% 1.3%
Floor
brokerage,
exchange and
clearance
fees 59,647 47,540 56,900 25.5% 4.8%
Communications
and
technology 88,321 90,744 93,828 (2.7%) (5.9%)
Occupancy 34,768 33,088 33,615 5.1% 3.4%
Advertising
and market
development 29,315 27,507 25,901 6.6% 13.2%
Professional
fees 42,370 28,995 41,800 46.1% 1.4%
Other expenses 97,588 114,535 93,753 (14.8%) 4.1%
------------ ------------ ------------
Total non-
interest
expenses 1,212,062 1,034,590 1,194,945 17.2% 1.4%
------------ ------------ ------------
Income before
provision for
income taxes 511,476 428,130 530,978 19.5% (3.7%)
Provision for
income taxes 163,673 147,719 169,913 10.8% (3.7%)
------------ ------------ ------------
Net income $ 347,803 $ 280,411 $ 361,065 24.0% (3.7%)
------------ ------------ ------------
Net income
applicable to
common shares $ 340,609 $ 272,616 $ 353,646 24.9% (3.7%)
============ ============ ============
Adjusted net
income used
for diluted
earnings per
share (1) $ 366,027 $ 299,533 $ 378,778 22.2% (3.4%)
============ ============ ============
Basic earnings
per share $ 2.77 $ 2.27 $ 2.88 22.0% (3.8%)
============ ============ ============
Diluted
earnings per
share $ 2.49 $ 2.05 $ 2.57 21.5% (3.1%)
============ ============ ============
Weighted
average
common shares
outstanding:
Basic 129,071,295 128,711,363 129,118,964
============ ============ ============
Diluted 146,921,897 146,062,838 147,108,483
============ ============ ============
Cash dividends
declared per
common share $ 0.20 $ 0.17 $ 0.20
============ ============ ============
(1) Represents net income reduced for preferred stock dividends and
increased for costs related to the CAP Plan and the redemption of
preferred stock. For earnings per share, the costs related to the
CAP Plan (net of tax) are added back as the shares related to the
CAP Plan are included in weighted average common shares
outstanding.
THE BEAR STEARNS COMPANIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
% Change
Six Months Ended From
-------------------------- ------------
May 31, May 31, May 31,
2004 2003 2003
------------ ------------ ------------
(In thousands, except share
and per share data)
REVENUES
Commissions $ 615,253 $ 509,597 20.7%
Principal transactions 1,862,331 1,778,379 4.7%
Investment banking 521,974 380,133 37.3%
Interest and dividends 1,018,933 956,724 6.5%
Other income 126,752 63,294 100.3%
------------ ------------
Total revenues 4,145,243 3,688,127 12.4%
Interest expense 695,782 709,973 (2.0%)
------------ ------------
Revenues, net of interest
expense 3,449,461 2,978,154 15.8%
------------ ------------
NON-INTEREST EXPENSES
Employee compensation and
benefits 1,709,201 1,450,070 17.9%
Floor brokerage, exchange
and clearance fees 116,547 92,220 26.4%
Communications and
technology 182,149 183,484 (0.7%)
Occupancy 68,383 68,031 0.5%
Advertising and market
development 55,216 52,717 4.7%
Professional fees 84,170 57,448 46.5%
Other expenses 191,341 220,855 (13.4%)
------------ ------------
Total non-interest expenses 2,407,007 2,124,825 13.3%
------------ ------------
Income before provision for
income taxes 1,042,454 853,329 22.2%
Provision for income taxes 333,586 298,665 11.7%
------------ ------------
Net income $ 708,868 $ 554,664 27.8%
------------ ------------
Net income applicable to
common shares $ 694,255 $ 538,878 28.8%
============ ============
Adjusted net income used for
diluted earnings per share
(1) $ 744,805 $ 593,290 25.5%
============ ============
Basic earnings per share $ 5.65 $ 4.48 26.1%
============ ============
Diluted earnings per share $ 5.07 $ 4.05 25.2%
============ ============
Weighted average common
shares outstanding:
Basic 129,029,761 129,240,413
============ ============
Diluted 146,945,015 146,608,993
============ ============
Cash dividends declared per
common share $ 0.40 $ 0.34
============ ============
(1) Represents net income reduced for preferred stock dividends and
increased for costs related to the CAP Plan and the redemption of
preferred stock. For earnings per share, the costs related to the
CAP Plan (net of tax) are added back as the shares related to the
CAP Plan are included in weighted average common shares
outstanding.
THE BEAR STEARNS COMPANIES INC.
SELECTED FINANCIAL INFORMATION
(UNAUDITED)
Three Months Ended
----------------------------------------
May 31, February 29, November 30,
2004 2004 2003
------------ ------------ ------------
(In thousands, except common share
data and other data)
Results
---------------------------
Revenues, net of interest
expense $ 1,723,538 $ 1,725,923 $ 1,531,277
Net income $ 347,803 $ 361,065 $ 288,327
Net income applicable to
common shares $ 340,609 $ 353,646 $ 280,533
Adjusted net income used
for diluted earnings
per share (1) $ 366,027 $ 378,778 $ 308,521
Financial Position
---------------------------
Stockholders' equity, at
period end $ 8,006,834 $ 7,817,777 $ 7,470,088
Total stockholders' equity
and trust issued preferred
securities, at period
end (2) $ 8,006,834 $ 7,817,777 $ 8,032,588
Total capital, at period
end $ 39,973,413 $ 39,970,906 $ 37,463,053
Common Share Data
---------------------------
Basic earnings per share $ 2.77 $ 2.88 $ 2.43
Diluted earnings per share $ 2.49 $ 2.57 $ 2.19
Book value per common
share, at period end $ 53.38 $ 51.19 $ 48.69
Weighted average common
shares outstanding:
Basic 129,071,295 129,118,964 124,090,961
Diluted 146,921,897 147,108,483 140,876,365
Common shares outstanding,
at period end (3) 144,285,667 144,320,701 142,369,836
Financial Ratios
---------------------------
Return on average common
equity (annualized) 19.6% 21.3% 19.6%
Adjusted pre-tax profit
margin (4) 32.3% 33.3% 31.7%
Pre-tax profit margin (5) 29.7% 30.8% 28.5%
After-tax profit margin (6) 20.2% 20.9% 18.8%
Compensation & benefits /
Revenues, net of interest
expense 49.9% 49.2% 48.9%
Other Data (in billions,
except employees)
---------------------------
Margin debt balances, at
period end $ 44.4 $ 47.9 $ 45.7
Margin debt balances,
average for period $ 46.7 $ 46.6 $ 42.2
Customer short balances,
at period end $ 74.9 $ 77.0 $ 72.6
Customer short balances,
average for period $ 77.2 $ 74.3 $ 70.1
Stock borrowed, at period
end $ 53.6 $ 57.0 $ 54.3
Stock borrowed, average for
period $ 58.7 $ 58.5 $ 57.4
Free credit balances, at
period end $ 28.8 $ 26.1 $ 24.9
Free credit balances,
average for period $ 28.1 $ 26.5 $ 22.9
Assets under management, at
period end $ 27.3 $ 29.1 $ 27.1
Employees, at period end 10,469 10,431 10,532
Three Months Ended
----------------------------------------
August 31, May 31, February 28,
2003 2003 2003
------------ ------------ ------------
(In thousands, except common share
data and other data)
Results
---------------------------
Revenues, net of interest
expense $ 1,485,060 $ 1,462,720 $ 1,515,434
Net income $ 313,415 $ 280,411 $ 274,253
Net income applicable to
common shares $ 305,621 $ 272,616 $ 266,261
Adjusted net income used
for diluted earnings
per share (1) $ 334,180 $ 299,533 $ 293,756
Financial Position
---------------------------
Stockholders' equity, at
period end $ 6,875,668 $ 6,714,397 $ 6,529,628
Total stockholders' equity
and trust issued preferred
securities, at period
end (2) $ 7,438,168 $ 7,276,897 $ 7,092,128
Total capital, at period
end $ 34,438,022 $ 33,520,967 $ 31,987,917
Common Share Data
---------------------------
Basic earnings per share $ 2.54 $ 2.27 $ 2.21
Diluted earnings per share $ 2.30 $ 2.05 $ 2.00
Book value per common
share, at period end $ 45.46 $ 43.52 $ 41.64
Weighted average common
shares outstanding:
Basic 128,681,694 128,711,363 129,773,603
Diluted 145,599,540 146,062,838 147,029,224
Common shares outstanding,
at period end (3) 146,662,752 146,915,258 146,659,224
Financial Ratios
---------------------------
Return on average common
equity (annualized) 21.3% 19.7% 19.9%
Adjusted pre-tax profit
margin (4) 35.8% 32.4% 31.2%
Pre-tax profit margin (5) 32.5% 29.3% 28.1%
After-tax profit margin (6) 21.1% 19.2% 18.1%
Compensation & benefits /
Revenues, net of interest
expense 45.9% 47.3% 50.0%
Other Data (in billions,
except employees)
---------------------------
Margin debt balances, at
period end $ 41.6 $ 44.1 $ 38.1
Margin debt balances,
average for period $ 43.3 $ 39.5 $ 36.3
Customer short balances, at
period end $ 66.3 $ 66.2 $ 56.5
Customer short balances,
average for period $ 68.0 $ 62.0 $ 57.0
Stock borrowed, at period
end $ 52.1 $ 48.6 $ 41.7
Stock borrowed, average for
period $ 54.2 $ 47.9 $ 45.1
Free credit balances, at
period end $ 22.0 $ 20.4 $ 18.7
Free credit balances,
average for period $ 21.2 $ 19.3 $ 18.9
Assets under management, at
period end $ 25.7 $ 24.4 $ 23.3
Employees, at period end 10,515 10,472 10,506
(1) Represents net income reduced for preferred stock dividends and
increased for costs related to the CAP Plan and the redemption of
preferred stock. For earnings per share, the costs related to the
CAP Plan (net of tax) are added back as the shares related to the
CAP Plan are included in weighted average common shares
outstanding.
(2) In accordance with FASB Interpretation ("FIN") No. 46 (R), a
revision of FIN No. 46, "Consolidation of Variable Interest
Entities - an Interpretation of ARB No. 51," the company has
deconsolidated Bear Stearns Capital Trust III, which had issued
$262.5 million of Preferred Securities as of May 31, 2004 and
February 29, 2004. As a result, $262.5 million in junior
subordinated deferrable interest debentures issued by the company
to Bear Stearns Capital Trust III is included in long-term
borrowings in the consolidated statement of financial condition as
of May 31, 2004 and February 29, 2004.
(3) Represents shares used to calculate book value per common share.
Common shares outstanding include units issued under certain stock
compensation plans which will be distributed as shares of common
stock.
(4) Represents the ratio of income before both CAP Plan costs and
provision for income taxes to revenues, net of interest expense.
(5) Represents the ratio of income before provision for income taxes
to revenues, net of interest expense.
(6) Represents the ratio of net income to revenues, net of interest
expense.
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion