CSFBdirect Reports First Quarter Results.Business Editors JERSEY CITY, N.J.--(BUSINESS WIRE)--May 2, 2001 CSFBdirect (NYSE NYSE See: New York Stock Exchange : DIR), the online brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. service of Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. , reported revenues of $72.1 million for the quarter ended March 31, 2001 and a net loss from operations of $14.1 million, or $0.14 per 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. share, compared to total revenues of $114.7 million and operating net income of $13.6 million or $0.13 per diluted share for the same period in 2000. CSFBdirect's first quarter operating results for 2001 exclude $21.7 million of after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. expenses related to rebranding Rebranding is the process by which a product or service developed with one brand or company or product line affiliation is marketed or distributed with a different identity. its new name and $5.7 million related to one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges associated with the closing of its Parsippany, New Jersey call center. Including these charges, the reported net loss was $41.5 million or $0.40 per diluted share for the quarter. CSFBdirect was reimbursed for expenses incurred related to adoption of its new name with a capital contribution of $29 million in March 2001. The capital contribution increased Credit Suisse First Boston (USA), Inc.'s retained interest Retained interest (also colloquially known as a payout penalty) is future, currently unpaid, interest that some lenders add to the remaining principal of a loan to determine a payout figure in the event that the loan is terminated before the completion of the original term. in CSFBdirect by 1 percent to 83 percent, which, in turn, reduced minority holders' interest from approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 18 percent to 17 percent. First Quarter Results Total revenues reached $72.1 million, 37 percent lower than $114.7 million posted a year ago, as higher fee revenues were offset by lower commission and interest revenues. Commissions decreased by 55 percent to $33.5 million, reflecting a commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. decline in daily 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. , while interest revenues declined 11 percent to $16.4 million attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to lower customer margin balances. Fees of $22.1 million increased 18 percent versus last year, primarily due to iNautix's posting another strong quarter of revenue growth. iNautix iNautix is an affiliate of the The Bank of New York Mellon, a leading financial services provider. We provide software development services for the Company's subsidiaries, including The Bank of New York and Pershing LLC, a leading securities clearing firm. -- CSFBdirect's technology group -- designs, develops and hosts global e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. solutions. Excluding expenses related to rebranding and closing of the Parsippany, New Jersey call center, expenses totaled $91.3 million, 2 percent higher than the first quarter 2000. Including such non-operating expenses, expenses totaled $134.8 million, 51 percent higher than the first quarter of 2000. Employee compensation increased by 36 percent to $36.9, million reflecting higher headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. . Occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy expense increased from $2.4 million in the first quarter of 2000 to $7.7 million attributable to expansion of the company's customer call centers in Sandy Sandy Little Orphan Annie’s dog. [Comics: “Little Orphan Annie” in Horn, 459] See : Dogs Sandy told endless tales as she and Boss traveled. [Am. Lit. City, Utah and iNautix's expansion in New Jersey and India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. . Advertising expenses, excluding rebranding, declined by $6.9 million from the prior period to $11.2 million for the quarter just ended. Equity in net loss of joint ventures increased over the prior period by $2.5 million to $3.7 million for the quarter ending March 31, 2001, largely attributable to start-up Start-up The earliest stage of a new business venture. costs associated with the launch of Hutchison Hutchison may refer to: People with the surname Hutchison:
CSFBdirect expects to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. an approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. $7 million charge in the second quarter of 2001 associated with the sublease sublease n. the lease of all or a portion of premises by a tenant who has leased the premises from the owner. A sublease may be prohibited by the original lease, or require written permission from the owner. of space in Jersey City, New Jersey. Credit Suisse First Boston (USA), Inc. Financial Reporting Credit Suisse First Boston (USA), Inc. expects to post a modest operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the first quarter of 2001. Difficult market and other conditions during the quarter continued to adversely impact most of the company's businesses, particularly mergers and acquisitions and equity capital markets. However, the assignment of the lease for space at 277 Park Avenue 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. following the acquisition of the company by Credit Suisse The Credit Suisse Group (SWX:CSGN, NYSE: CS) is a financial services company, headquartered in Zürich, Switzerland. It is the second-largest Swiss bank, behind UBS AG. Group had a positive impact on the company's results during the period, and certain of the company's fixed income businesses benefited from the lower interest rate environment. Additional information about the financial results of the company for the first quarter will be provided in its Quarterly Report on Form 10-Q Form 10-Q See 10-Q. , to be filed with the Securities and Exchange Commission later this month. The company is only a part of the Credit Suisse First Boston business unit of Credit Suisse Group, and its results do not reflect the overall performance of the entire business unit or Credit Suisse Group. Credit Suisse First Boston (USA), Inc. previously announced that its affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. , Credit Suisse First Boston, Inc., made a proposal to acquire the approximately 18.4 million shares (17 percent interest) of CSFBdirect tracking stock owned by the public for $4 per share. The Special Committee of the Board of Directors of Credit Suisse First Boston (USA), Inc. appointed ap·point tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. Lazard Lazard Ltd. (NYSE: LAZ) is the parent company of Lazard LLC, a New York-based, independent investment bank with approximately 2,200 employees in Europe, North America, Asia and Australia. Freres & Co. LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control as its financial advisor and Fried, Frank, Harris Harris, Scotland: see Lewis and Harris. , Shriver shrive v. shrove or shrived, shriv·en or shrived, shriv·ing, shrives v.tr. 1. To hear the confession of and give absolution to (a penitent). 2. & Jacobson Jacobson is a surname with several variants. Some people with this name include:
About CSFBdirect CSFBdirect is one of the world's premier online brokerage firms offering a diversified diversified (di·verˑ·s range of investment products and services to self-directed self-di·rect·ed adj. Directed or guided by oneself, especially as an independent agent: the self-directed study of a language. self investors. As of March 31, 2001, CSFBdirect had over one million worldwide customer accounts representing over $21 billion in assets. CSFBdirect has received numerous honors over the past year, including a number one "4-Stars" rating in March 2001 by Barron's; "Best of the Web" in March 2001 by Forbes Forbes , B(ertie) C(harles) 1880-1954. American publisher and businessman who founded and edited (1916-1954) Forbes magazine. His son Malcolm Stevenson Forbes .com; "Best Online Brokerage Service" in March 2001 by the Software Information Industry Association (SIIA (Software & Information Industry Association, Washington, DC, www.siia.net) A trade organization devoted to the health and welfare of the software and digital content industry by providing support in government relations, business development, education and intellectual property ); "No.1 Online Brokerage" in March 2001 by the American Association American Association refers to one of the following professional baseball leagues:
See: American Association of Individual Investors ) Customer Survey; number one for "Transaction Performance and Transaction Success Rate" in February February: see month. 2001 by Keynote Systems Keynote Systems, Inc. provides measurement and monitoring, service level and customer experience management services to customers to improve e-business performance by reducing costs, improving customer satisfaction and increasing profitability. , Inc.; "Best for Site Reliability" in August 2000 by TheStreet.com's Online Broker Survey; "Top Online Broker" by the 2000 Readers' Choice Awards, Worth magazine; and "Best Bet, Feature Rich" in May 2000 by PC World magazine. Headquartered in Jersey City, NJ with offices in New York City, Charlotte, NC, Delray Beach Delray Beach, resort city (1990 pop. 47,181), Palm Beach co., SE Fla., on the Atlantic coast; settled 1895, inc. 1911. Mostly residential, Delray Beach is also the trade center for a citrus-fruit and vegetable-growing region. , FL, Sandy City, UT, London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. , Tokyo Tokyo (tō`kēō), city (1990 pop. 8,163,573), capital of Japan and of Tokyo prefecture, E central Honshu, at the head of Tokyo Bay. , Hong Kong, and Dubai Dubai (d  bī`), sheikhdom (1995 pop. 674,101), c.1,500 sq mi (3,890 sq km), part of the federation of seven United Arab Emirates, SE Arabia, on the Persian Gulf. , CSFBdirect employs 1,800 people. CSFBdirect trades 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 ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors "DIR" as a tracking stock of Credit Suisse First Boston (USA), Inc. For more information on CSFBdirect, visit the company's Web site at www.CSFBdirect.com. About Credit Suisse First Boston Credit Suisse First Boston (CSFB CSFB Credit Suisse First Boston CSFB Cyclically Shifted Filter Bank ) is a leading global investment banking firm serving institutional, corporate, government and individual clients. CSFB's businesses include securities 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. , sales and trading, investment banking, private equity, financial advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal , investment research, venture capital, correspondent A bank, Securities firm, or other financial institution that regularly renders services for another in an area or market to which the other party lacks direct access. A bank that functions as an agent for another bank and carries a deposit balance for a bank in another city. brokerage services and retail online brokerage services. It operates in over 76 locations across more than 37 countries and 6 continents, and has some 28,000 staff worldwide. The Firm is a business unit of the Zurich based Credit Suisse Group, a leading global financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company.
CSFBdirect
Combined Summary of Operations (Unaudited) - See note 2
(in thousands, except per share data and financial ratios)
Quarters Ended
March 31, 2001 vs. 2000
2001 2000 $ %
------ ------ ------- ------
Revenues:
Commissions $ 33,450 $ 74,539 $ (41,089) (55.1)%
Underwritings 227 3,088 (2,861) (92.6)%
Fees 22,075 18,707 3,368 18.0 %
Interest 16,387 18,394 (2,007) (10.9)%
------- ------- ------ ------
Total revenues 72,139 114,728 (42,589) (37.1)%
------- ------- ------ ------
Costs and expenses:
Compensation
and benefits 36,936 27,171 9,765 35.9 %
Interest 745 515 230 44.7 %
Brokerage, clearing,
exchange fees,
and other 10,188 18,600 (8,412) (45.2)%
Advertising 11,192 18,070 (6,878) (38.1)%
Occupancy and
related costs 7,726 2,390 5,336 NM
Communications
and technology 11,061 10,101 960 9.5 %
Rebranding costs (1) 34,452 - 34,452 NM
Reorganization
costs (1) 8,987 - 8,987 NM
Other operating
expenses 13,466 12,412 1,054 8.5 %
------- ------- ------ ------
Total costs
and expenses 134,753 89,259 45,494 51.0 %
------- ------- ------ ------
Income (loss) before
income tax provision
(benefit) and equity
in net loss of
joint ventures (62,614) 25,469 (88,083) NM
------- ------- ------ ------
Income tax
provision (benefit) (24,811) 10,650 (35,461) NM
Equity in net loss
of joint ventures (3) (3,719) (1,205) (2,515) NM
------- ------- ------ ------
Net income (loss) $ (41,522) $ 13,614 $ (55,136) NM
========= ========= ========== =======
Earnings (loss)
per share (4):
Basic $ (0.40) $ 0.13 $ (0.53) NM
Diluted $ (0.40) $ 0.13 $ (0.53) NM
========= ========= ========== =======
Weighted average
notional and
outstanding shares:
Basic 102,794 102,650 144 0.1 %
Diluted 102,794 102,732 62 0.1 %
========= ========= ========== =======
Earnings (loss)
attributable to:
CSFB (USA) Retained
Interest $ (34,099) $ 11,177 $ (45,276) NM
CSFBdirect Tracking
Stock (2) (7,423) 2,437 (9,860) NM
========= ========= ========== =======
Tracking Stock
earnings (loss)
per share (4):
Basic $ (0.40) $ 0.13 $ (0.53) NM
Diluted $ (0.40) $ 0.13 $ (0.53) NM
========= ========= ========== =======
Tracking Stock
weighted average
common shares:
Basic 18,400 18,400 0 0.0 %
Diluted 18,400 18,482 (82) (0.4)%
========= ========= ========== =======
CSFBdirect
Combined Summary of Operations (Unaudited) - See note 2
(1) Credit Suisse First Boston (USA), Inc. (formerly Donaldson, Lufkin
& Jenrette, Inc.) and Subsidiaries, ("CSFB (USA), Inc.") became an
indirect wholly owned subsidiary of Credit Suisse Group, a
corporation organized under the laws of Switzerland, as a result
of a merger which was completed on November 3, 2000. The merger
did not have an effect on the outstanding shares of DLJdirect
common stock. Effective January 15, 2001, DLJdirect changed its
name to CSFBdirect. All references to DLJdirect have been changed
to CSFBdirect. Costs incurred as a result of the name change are
included in rebranding costs in the combined summary of
operations. On March 29, 2001, CSFBdirect received a capital
contribution of $29.0 million to partially offset these expenses.
In addition, during the quarter ended March 31, 2001, CSFBdirect
closed its Parsippany, New Jersey office resulting in the
termination of employees, exiting of the lease and write-off
of equipment. Costs incurred as a result of this transaction are
included as reorganization costs in the combined summary of
operations.
(2) CSFBdirect represents a combination of the assets and liabilities
of CSFB (USA), Inc.'s existing online discount brokerage and
related investment services, rather than a separately incorporated
entity. CSFBdirect Common Stock tracks the separate performance of
these businesses for periods subsequent to the date of the
offering ("Tracking Stock"). On May 28, 1999, CSFB (USA), Inc.
issued in an initial public offering, 18.4 million shares of
CSFBdirect Common Stock. The shares of CSFBdirect Common Stock
have no voting rights, except in certain limited circumstances.
Even though CSFB (USA), Inc. has allocated certain assets,
liabilities, revenues, expenses and cash flows to CSFBdirect, that
allocation will not change the legal title to any assets or
responsibility for any liabilities. Holders of Tracking Stock are
common stockholders of CSFB (USA), Inc. and are subject to all the
risks associated with an investment in CSFB (USA), Inc.
Prior to the offering, CSFB (USA), Inc. designated its existing
common stock as CSFB (USA), Common Stock which represents the
performance of CSFB (USA), Inc.'s primary businesses plus a
retained interest in CSFBdirect. All of CSFB (USA), Inc.'s
businesses other than those included in CSFBdirect, plus its
retained interest in CSFBdirect, are referred to as CSFB (USA).
As a result of the offering, CSFB (USA) has a retained interest
of 82.1% in CSFBdirect represented by 84.3 million notional
shares. The 18.4 million shares of CSFBdirect Tracking Stock
reflects the 17.9% owned by the public. Prior to the offering
CSFB (USA) had a 100% interest in the earnings of CSFBdirect.
On March 26, 2001, CSFBdirect announced its intention to acquire,
for $4.00 per share, the 18.4 million shares of CSFBdirect Common
Stock owned by the public.
(3) CSFBdirect has a 50% interest in joint ventures in Japan, Hong
Kong and the Middle East which amounts are included in equity from
net loss of joint ventures in the combined statement of
operations.
(4) Earnings per share amounts have been calculated by dividing net
income by the weighted average notional and outstanding tracking
shares. The notional shares represent CSFB (USA)'s 82.1% retained
interest in CSFBdirect. Prior to the offering, CSFB (USA) had a
100% interest in the earnings of CSFBdirect. As a result of the
$29.0 million capital contribution received on March 29, 2001,
CSFB (USA)'s retained interest increased to 83.1%.
Tracking Stock earnings per common share amounts have been
calculated by dividing earnings applicable to common shares by
the weighted average actual common shares outstanding.
CSFBdirect
Combined Financial Data (Unaudited) - See note 2
(in thousands, except per share data)
1q01 4q00 3q00 2q00 1q00
Revenues:
Commissions $ 33,450 $ 36,197 $ 37,212 $ 45,542 $ 74,539
Underwritings 227 572 1,567 1,594 3,088
Fees 22,075 25,977 21,774 17,711 18,707
Interest 16,387 17,638 18,697 19,142 18,394
------ ------ ------ ------ ------
Total revenues 72,139 80,384 79,250 83,989 114,728
------ ------ ------ ------ ------
Interest expense 745 393 272 375 515
------ ------ ------ ------ ------
Net revenues 71,394 79,991 78,978 83,614 114,213
------ ------ ------ ------ ------
Non-interest expenses:
Compensation
and benefits 36,936 35,795 34,107 27,046 27,171
Brokerage,
clearing, exchange
fees, and other 10,188 10,811 11,063 12,855 18,600
Advertising 11,192 13,066 9,125 19,990 18,070
Occupancy and
related costs 7,726 5,994 4,026 3,144 2,390
Communications
and technology 11,061 10,246 12,383 11,443 10,101
Rebranding
costs (1) 34,452 6,587 - - -
Reorganization
costs (1) 8,987 - - - -
Other operating
expenses 13,466 12,692 11,378 17,053 12,412
------ ------ ------ ------ ------
Total
non-interest
expenses 134,008 95,191 82,082 91,531 88,744
------- ------ ------ ------ ------
Income (loss) before
income tax provision
(benefit) and equity
in net loss of
joint ventures (62,614) (15,200) (3,104) (7,917) 25,469
------ ------ ------ ------ ------
Income tax
provision
(benefit) (24,811) (5,842) (1,272) (3,353) 10,650
Equity in net
loss of joint
ventures (3) (3,719) (1,403) (2,330) (2,057) (1,205)
------ ------ ------ ------ ------
Net income (loss) $(41,522) $(10,761) $(4,162) $(6,621) $13,614
======== ======== ======= ======= =======
Earnings (loss)
per share (4):
Basic $ (0.40) $ (0.10) $ (0.04) $ (0.06) $ 0.13
Diluted $ (0.40) $ (0.10) $ (0.04) $ (0.06) $ 0.13
======== ======== ======= ======= =======
Weighted average
notional and
outstanding shares:
Basic 102,794 102,650 102,650 102,650 102,650
Diluted 102,794 102,650 102,650 102,650 102,732
======== ======== ======= ======= =======
Earnings (loss)
attributable to:
CSFB (USA)
Retained
Interest $(34,099) $(8,835) $(3,417) $(5,436) $11,177
CSFBdirect
Tracking
Stock (2) (7,423) (1,926) (745) (1,185) 2,437
======== ======== ======= ======= =======
Tracking Stock
earnings (loss)
per share (4):
Basic $ (0.40) $ (0.10) $ (0.04) $ (0.06) $ 0.13
Diluted $ (0.40) $ (0.10) $ (0.04) $ (0.06) $ 0.13
======== ======== ======= ======= =======
Tracking Stock
weighted average
common shares:
Basic 18,400 18,400 18,400 18,400 18,400
Diluted 18,400 18,400 18,400 18,400 18,482
======== ======== ======= ======= =======
CSFBdirect
Combined Financial Data (Unaudited) - See note 2
(Dollars in thousands, except per share data and financial ratios)
1q01 4q00 3q00 2q00 1q00
Other financial data:
Net revenues $ 71,394 $ 79,991 $ 78,978 $ 83,614 $ 114,213
---------- --------- --------- --------- ---------
Net interest
revenues $ 15,642 $ 17,245 $ 18,425 $ 18,767 $ 17,879
---------- --------- --------- --------- ---------
Compensation and
benefits as a %
of net revenues 51.7% 44.7% 43.2% 32.3% 23.8%
---------- --------- --------- --------- ---------
Compensation and
benefits as a %
of pre-tax income
(loss) before
compensation &
benefits (143.8)% 173.8% 110.0% 141.4% 51.6%
---------- --------- --------- --------- ---------
Non-compensation
expenses as a %
of net revenues 137.0% 74.3% 60.7% 77.1% 53.9%
---------- --------- --------- --------- ---------
Income (loss) before
provision for income
taxes and equity in
net loss of joint
ventures as a % of
net revenues (87.7)% (19.0)% (3.9)% (9.5)% 22.2%
---------- --------- --------- --------- ---------
Net income (loss)
as a % of
net revenues (58.2)% (13.5)% (5.3)% (7.9)% 11.9%
---------- --------- --------- --------- ---------
Tracking Stock
shares
outstanding
at end of
period 18,400,000 18,400,000 18,400,000 18,400,000 18,400,000
---------- ---------- ---------- ---------- ----------
CSFBdirect
Combined Other Data (Unaudited) - See note 2
1q01 4q00 3q00 2q00 1q00
Total trades
United States 1,260,000 1,391,000 1,445,000 1,798,000 2,781,000
United Kingdom 52,000 48,000 52,000 68,000 96,000
Japan 630,000 511,000 428,000 378,000 290,000
--------- --------- --------- --------- ---------
Total 1,942,000 1,950,000 1,925,000 2,244,000 3,167,000
--------- --------- --------- --------- ---------
Average trades
per day
United States 20,300 22,100 22,900 28,500 44,100
United Kingdom 800 800 800 1,100 1,500
Japan 10,700 8,200 6,800 6,300 4,700
--------- --------- --------- --------- ---------
Total 31,800 31,100 30,500 35,900 50,300
--------- --------- --------- --------- ---------
Total accounts
United States 981,000 952,000 923,000 893,000 853,000
United Kingdom 55,000 48,000 44,000 40,000 32,000
Japan 92,000 84,000 74,000 59,000 45,000
--------- --------- --------- --------- ---------
Total 1,128,000 1,084,000 1,041,000 992,000 930,000
--------- --------- --------- --------- ---------
Total active
accounts (A)
United States 450,000 441,000 426,000 412,000 389,000
United Kingdom 26,000 25,000 22,000 19,000 13,000
Japan 63,000 54,000 46,000 37,000 27,000
--------- --------- --------- --------- ---------
Total 539,000 520,000 494,000 468,000 429,000
--------- --------- --------- --------- ---------
Acquisition cost
per new active
account
United States (B) $ 593 $ 731 $ 383 $ 635 $ 241
United Kingdom 1,537* 446 581 389 266
Japan 43 84 343 317 155
--------- --------- --------- --------- ---------
Average $ 484 $ 508 $ 390 $ 529 $ 231
--------- --------- --------- --------- ---------
Total customer
assets (in millions)
United States $ 17,900 $ 19,800 $ 24,400 $ 24,600 $ 27,000
United Kingdom 300 300 200 200 200
Japan 2,900 2,700 3,000 2,700 2,200
--------- --------- --------- --------- ---------
Total $ 21,100 $ 22,800 $ 27,600 $ 27,500 $ 29,400
--------- --------- --------- --------- ---------
Assets per
active account
United States $ 40,000 $ 45,000 $ 57,000 $ 60,000 $ 69,000
United Kingdom 12,000 12,000 9,000 11,000 15,000
Japan 46,000 50,000 65,000 73,000 81,000
--------- --------- --------- --------- ---------
Average $ 39,000 $ 44,000 $ 56,000 $ 59,000 $ 69,000
--------- --------- --------- --------- ---------
Total employees
United States 1,276** 1,426 1,486 1,350 1,019
United Kingdom 95 82 65 50 21
Japan 108 107 103 86 66
India 204 184 161 53
Hong Kong 104 59 46 10
Other 13 13 8 7
--------- --------- --------- --------- ---------
Total 1,800 1,871 1,869 1,556 1,106
--------- --------- --------- --------- ---------
Technology employees
United States 485 436 443 378 294
United Kingdom 29 16 7 1
Japan 11 13 10 6 5
India 204 184 157 53
Hong Kong 15 7 7 1
Other
--------- --------- --------- --------- ---------
Total 744 656 624 439 299
--------- --------- --------- --------- ---------
Data includes 100% of the activities of DLJdirect SFG Securities
Inc., CSFBdirect-eUnion, and CSFB Hutchison direct Holdings Limited.
(A) Active accounts consist of those accounts at the end of the
related period with at least one trade in the last twelve months
or with a balance at period end.
(B) Based upon gross number of active accounts added during the
period, net of rebranding costs.
* based upon actual (not rounded) numbers.
** includes the effects of the reorganization.
CSFBdirect
Combined Financial Data (Unaudited) - See note 2
(in thousands, except per share data and financial ratios)
1q01 1q01
vs. vs.
1q01 4q00 1q00 4q00 1q00
Revenues:
Commissions $ 33,450 $ 36,197 $ 74,539 (7.6)% (55.1)%
Underwritings 227 572 3,088 (60.3)% (92.6)%
Fees 22,075 25,977 18,707 (15.0)% 18.0 %
Interest 16,387 17,638 18,394 (7.1)% (10.9)%
------ ------ ------ ----- -----
Total revenues 72,139 80,384 114,728 (10.3)% (37.1)%
------ ------ ------ ----- -----
Interest expense 745 393 515 89.6% 44.7 %
------ ------ ------ ----- -----
Net revenues 71,394 79,991 114,213 (10.7)% (37.5)%
------ ------ ------ ----- -----
Non-interest
expenses:
Compensation
and benefits 36,936 35,795 27,171 3.2% 35.9 %
Brokerage,
clearing, exchange
fees, and other 10,188 10,811 18,600 (5.8)% (45.2)%
Advertising 11,192 13,066 18,070 (14.3)% (38.1)%
Occupancy and
related costs 7,726 5,994 2,390 28.9% NM
Communications
and technology 11,061 10,246 10,101 8.0% 9.5 %
Rebranding
costs (1) 34,452 6,587 - NM NM
Reorganization
costs (1) 8,987 - - NM NM
Other operating
expenses 13,466 12,692 12,412 6.1% 8.5 %
------ ------ ------ ----- -----
Total
non-interest
expenses 134,008 95,191 88,744 40.8% 51.0 %
------ ------ ------ ----- -----
Income (loss) before
income tax provision
(benefit) and equity
in net loss of
joint ventures (62,614) (15,200) 25,469 NM NM
------ ------ ------ ----- -----
Income tax
provision
(benefit) (24,811) (5,842) 10,650 NM NM
Equity in net
loss of joint
ventures (3) (3,719) (1,403) (1,205) NM NM
------ ------ ------ ----- -----
Net income (loss) $(41,522) $(10,761) $13,614 NM NM
======== ======== ======= ======= ======
Earnings (loss)
per share (4):
Basic $ (0.40) $ (0.10) $ 0.13 NM NM
Diluted $ (0.40) $ (0.10) $ 0.13 NM NM
======== ======== ======= ======= ======
Weighted average
notional and
outstanding shares:
Basic 102,794 102,650 102,650 0.1% 0.1 %
Diluted 102,794 102,650 102,732 0.1% 0.1 %
======== ======== ======= ======= ======
Earnings (loss)
attributable to:
CSFB (USA)
Retained
Interest $ (34,099) $ (8,835) $ 11,177 NM NM
CSFBdirect
Tracking
Stock (2) (7,423) (1,926) 2,437 NM NM
======== ======== ======= ======= ======
Tracking Stock
earnings (loss)
per share (4):
Basic $ (0.40) $ (0.10) $ 0.13 NM NM
Diluted $ (0.40) $ (0.10) $ 0.13 NM NM
======== ======== ======= ======= ======
Weighted average
common shares -
Tracking Stock:
Basic 18,400 18,400 18,400 0.0% 0.0 %
Diluted 18,400 18,400 18,482 0.0% (0.4)%
======== ======== ======= ======= ======
CSFBdirect
Combined Revenues and Expenses as a Percentage
of Net Revenues (Unaudited) - See note 2
1q01 4q00 3q00 2q00 1q00
Revenues:
Commissions 46.9% 45.3% 47.1% 54.5% 65.3%
Underwritings 0.3% 0.7% 2.0% 1.9% 2.7%
Fees 30.9% 32.5% 27.6% 21.2% 16.4%
Interest 23.0% 22.0% 23.7% 22.9% 16.1%
------ ------ ------ ------ ------
Total revenues 101.0% 100.5% 100.3% 100.4% 100.5%
------ ------ ------ ------ ------
Interest expense 1.0% 0.5% 0.3% 0.4% 0.5%
------ ------ ------ ------ ------
Net revenues 100.0% 100.0% 100.0% 100.0% 100.0%
------ ------ ------ ------ ------
Non-interest expenses:
Compensation
and benefits 51.7% 44.7% 43.2% 32.3% 23.8%
Brokerage,
clearing, exchange
fees, and other 14.3% 13.5% 14.0% 15.4% 16.3%
Advertising 15.7% 16.3% 11.6% 23.9% 15.8%
Occupancy and
related costs 10.8% 7.5% 5.1% 3.8% 2.1%
Communications
and technology 15.5% 12.7% 15.7% 13.7% 8.8%
Rebranding
costs (1) 48.3% 8.3% 0.0% 0.0% 0.0%
Reorganization
costs (1) 12.6% 0.0% 0.0% 0.0% 0.0%
Other operating
expenses 18.9% 15.9% 14.4% 20.4% 10.9%
------ ------ ------ ------ ------
Total
non-interest
expenses 187.7% 119.0% 103.9% 109.5% 77.7%
------ ------ ------ ------ ------
Income (loss) before
income tax provision
(benefit) and equity
in net loss of
joint ventures (87.7)% (19.0)% (3.9)% (9.5)% 22.3%
------ ------ ------ ------ ------
Income tax
provision (benefit) (34.8)% (7.3)% (1.6)% (4.0)% 9.3%
Equity in net
loss of joint
ventures (3) (5.2)% (1.8)% (3.0)% (2.5)% (1.1)%
------ ------ ------ ------ ------
Net income (loss) (58.2)% (13.5)% (5.3)% (7.9)% 11.9%
====== ====== ===== ===== =====
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