CSFBdirect Reports Second Quarter Results.Business Editors JERSEY CITY, N.J.--(BUSINESS WIRE)--July 23, 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 $60.2 million for the quarter ended June June: see month. 30, 2001 and a net loss from operations of $12.6 million, or $0.12 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 revenues of $84.0 million and a net loss from operations of $6.6 million, or $0.06 per diluted share, for the same period in 2000. CSFBdirect's second quarter operating results for 2001 exclude $2.8 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. to its new name, $10.1 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc 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 staff reductions and reduced office space in both Jersey City, NJ and Charlotte, NC, and $5.6 million associated with retention compensation allocated by Credit Suisse First Boston, as a result of 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. First Boston's combination with Donaldson People People whose family name is or was Donaldson include:
Second Quarter Results Total revenues were $60.2 million, 28 percent lower than $84.0 million posted a year ago, attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to lower commission and interest revenues. Commissions decreased by 38 percent to $28.0 million, reflecting a 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. . Interest revenues declined 29 percent to $13.6 million, attributable to lower customer margin balances. Fees of $17.9 million remained relatively flat compared to the second quarter of 2000. Excluding expenses relating to rebranding, staff reductions, reduced office space, and retention compensation, expenses totaled $79.4 million, 14 percent lower than the second quarter of 2000. Including such expenses, expenses totaled $108.5 million, 18 percent higher than the second quarter of 2000. Employee compensation, excluding retention awards and compensation associated with staff reductions, increased by 18 percent to $31.8 million, and by 50 percent to $40.6 million including such charges. 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 to $7.9 million from $3.1 million in the second quarter of 2000 due to expansion of a customer call center 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 declined to $6.8 million, or 66 percent, from the second quarter of 2000. Equity in net loss of joint ventures totaled $0.4 million for the quarter ending June 30, 2001, compared to a net loss of $2.1 million for the same period last year, as DLJdirect SFG SFG StanCorp Financial Group SFG San Francisco Giants (baseball team) SFG Special Forces Group SFG Sum Frequency Generation SFG Square Foot Gardening SFG Symmetrical Field Geometry (JBL speaker technology) , our joint venture in Japan, produced positive results offsetting a larger loss sustained by Hutchison Hutchison may refer to: People with the surname Hutchison:
Six Month Results Total revenues were $132.3 million, 33 percent lower than $198.7 million posted a year ago, as higher fee revenue was offset by lower commission and interest revenues. Commissions decreased by 49 percent to $61.5 million, reflecting a decline in daily trading volume, while interest revenues declined 20 percent to $30.0 million due to lower customer margin balances. Fees of $40.0 million increased by 10 percent over last year due to higher revenue generation by 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. Expenses totaled $243.3 million, 34 percent higher than the same period last year. Employee compensation, excluding retention awards and compensation associated with staff reductions, increased by 27 percent to $68.8 million. Occupancy expense increased from $5.5 million in the first half of 2000 to $15.6 million due to expansion of the company's customer call center in Sandy City, Utah and iNautix's expansion in New Jersey and India. Advertising expenses, exclusive of rebranding, declined to $18.0 million, or 53 percent, from the first half of 2000. Equity in net loss of joint ventures totaled $4.1 million for the six months ending June 30, 2001, compared to a net loss of $3.3 million in the first half of 2000. The increase was due to the inclusion of our portion of the net losses of Hutchison CSFBdirect in Hong Kong, which officially launched operations in January January: see month. 2001. Credit Suisse First Boston (USA), Inc. Financial Reporting Credit Suisse First Boston (USA), Inc. currently expects to report an 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 second quarter of 2001 that is anticipated to be significantly lower than the operating profit for the same period a year ago and lower than that of the first quarter (excluding the positive impact of the lease of the former DLJ DLJ Distributor License for Java DLJ Donaldson, Lufkin & Jenrette Inc. DLJ Drive Like Jehu (band) DLJ Defence Laboratory Jodhpur (India) DLJ Dead Letter Journal headquarters). Positive fixed income results have been offset by the difficult operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. which has adversely affected most of the company's other businesses, particularly mergers and acquisitions, equity capital markets, and 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. . Additional information about the financial results of the company for the second 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 in August 2001. 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 Credit Suisse First Boston business unit or Credit Suisse Group. Credit Suisse Group will release its results and the results for the Credit Suisse First Boston business unit on August 29, 2001. On July July: see month. 11, 2001, Credit Suisse First Boston announced the execution of a definitive merger agreement whereby Credit Suisse First Boston, Inc. or CSFBI, the direct parent of Credit Suisse First Boston (USA), Inc., will acquire the 18,400,000 shares of CSFBdirect common stock owned by the public for $6.00 per share in cash, or a total of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $110 million. The transaction, which includes a cash tender offer for all of the CSFBdirect common stock owned by the public, is expected to close in the third quarter of 2001. For more information on the acquisition of CSFBdirect common stock, we refer you to Credit Suisse First Boston (USA), Inc.'s current report on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. dated July 12, 2001. In light of the proposed cash tender offer for the CSFBdirect common stock owned by the public, Karen Karen Any member of a variety of tribal peoples of southern Myanmar (Burma). Constituting the second largest minority in Myanmar, the Karen are not a unitary group in any ethnic sense, as they differ among themselves linguistically, religiously, and economically. Vernamonti has resigned from her position as Chief Financial Officer of CSFBdirect and the function will be filled by the financial control group of Credit Suisse First Boston.
-- Tables Follow --
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 June 30, 2001, CSFBdirect had over one million worldwide customer accounts representing $23 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 ); "#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; and "Top Online Broker" by the 2000 Readers' Choice Awards, Worth magazine. Headquartered in Jersey City, NJ with offices in Charlotte, NC, 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. , and Investment
Centers 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. , Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. , IL, Narberth Narberth may refer to:
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 bank 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 87 locations across more than 39 countries on 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 company. For more information on Credit Suisse First Boston, please visit our website at http://www.csfb.com.
CSFBdirect
Combined Summary of Operations (Unaudited) - See note 2
(in thousands, except per share data and financial ratios)
------------------------- -----------------------------
Quarter Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
------------------------- -----------------------------
Revenues:
Commissions $ 28,048 $ 45,542 $ 61,498 $ 120,081
Underwritings 673 1,594 900 4,682
Fees 17,882 17,711 39,957 36,418
Interest 13,580 19,142 29,967 37,536
------------ ------------ ------------ ------------
Total revenues 60,183 83,989 132,322 198,717
------------ ------------ ------------ ------------
Costs and expenses:
Compensation
and benefits 31,818 27,046 68,754 54,217
Interest 772 375 1,517 890
Brokerage, clearing,
exchange fees,
and other 9,198 12,855 19,386 31,455
Advertising 6,782 19,990 17,974 38,060
Occupancy and
related costs 7,849 3,144 15,575 5,534
Communications
and technology 11,990 11,443 23,051 21,544
Rebranding
costs (1) 4,442 - 38,894 -
Reorganization
costs (1) 15,939 - 24,926 -
Merger-related
retention
compensation (1) 8,767 - 8,767 -
Other operating
expenses 10,947 17,053 24,413 29,465
------------ ------------ ------------ ------------
Total costs
and expenses 108,504 91,906 243,257 181,165
------------ ------------ ------------ ------------
Income (loss)
before income
tax provision
(benefit) and
equity in net
loss of joint
ventures (48,321) (7,917) (110,935) 17,552
------------ ------------ ------------ ------------
Income tax
provision
(benefit) (17,638) (3,353) (42,449) 7,297
Equity in net
loss of joint
ventures (3) (411) (2,057) (4,130) (3,262)
------------ ------------ ------------ ------------
Net income
(loss) $ (31,094) $ (6,621) $ (72,616) $ 6,993
============ ============ ============ ============
Earnings (loss)
per share (4):
Basic $ (0.28) $ (0.06) $ (0.69) $ 0.07
Diluted $ (0.28) $ (0.06) $ (0.69) $ 0.07
============ ============ ============ ============
Weighted average
notional and
outstanding shares:
Basic 109,152 102,650 105,973 102,650
Diluted 109,152 102,650 105,973 102,651
============ ============ ============ ============
Earnings (loss)
attributable to:
CSFB (USA)
Retained
Interest $ (25,852) $ (5,436) $ (59,951) $ 5,741
CSFBdirect
Tracking
Stock (2) (5,242) (1,185) (12,665) 1,252
============ ============ ============ ============
Tracking Stock
earnings (loss)
per share (4):
Basic $ (0.28) $ (0.06) $ (0.69) $ 0.07
Diluted $ (0.28) $ (0.06) $ (0.69) $ 0.07
============ ============ ============ ============
Tracking Stock
weighted average
common shares:
Basic 18,400 18,400 18,400 18,400
Diluted 18,400 18,400 18,400 18,401
============ ============ ============ ============
CSFBdirect
Combined Summary of Operations (Unaudited) - See note 2
(in thousands, except per share data and financial ratios)
-------------------------- ---------------------------
Six Months Ended
June 30, 2001 vs. 2000
2001 2000 $ %
------------ ------------ ------------- ----------
Revenues:
Commissions $ 61,498 $ 120,081 $ (58,583) (48.8)%
Underwritings 900 4,682 (3,782) (80.8)%
Fees 39,957 36,418 3,539 9.7%
Interest 29,967 37,536 (7,569) (20.2)%
------------ ------------ ------------- ----------
Total revenues 132,322 198,717 (66,395) (33.4)%
------------ ------------ ------------- ----------
Costs and expenses:
Compensation
and benefits 68,754 54,217 14,537 26.8%
Interest 1,517 890 627 70.4%
Brokerage,
clearing,
exchange fees,
and other 19,386 31,455 (12,069) (38.4)%
Advertising 17,974 38,060 (20,086) (52.8)%
Occupancy and
related costs 15,575 5,534 10,041 181.4%
Communications
and technology 23,051 21,544 1,507 7.0%
Rebranding
costs (1) 38,894 - 38,894 NM
Reorganization
costs (1) 24,926 - 24,926 NM
Merger-related
retention
compensation (1) 8,767 - 8,767 NM
Other operating
expenses 24,413 29,465 (5,052) (17.1)%
------------ ------------ ------------- ----------
Total costs
and expenses 243,257 181,165 62,092 34.3%
------------ ------------ ------------- ----------
Income (loss)
before income tax
provision (benefit)
and equity in net
loss of joint
ventures (110,935) 17,552 (128,487) NM
------------ ------------ ------------- ----------
Income tax
provision
(benefit) (42,449) 7,297 (49,746) NM
Equity in net loss
of joint
ventures (3) (4,130) (3,262) (868) (26.6)%
------------ ------------ ------------- ----------
Net income
(loss) $ (72,616) $ 6,993 $ (79,609) NM
============ ============ ============ ==========
Earnings (loss)
per share (4):
Basic $ (0.69) $ 0.07 $ (0.76) NM
Diluted $ (0.69) $ 0.07 $ (0.76) NM
============ ============ ============ ==========
Weighted average
notional and
outstanding shares:
Basic 105,973 102,650 3,323 3.2%
Diluted 105,973 102,651 3,322 3.2%
============ ============ ============ ==========
Earnings (loss)
attributable to:
CSFB (USA)
Retained
Interest $ (59,951) $ 5,741 $ (65,692) NM
CSFBdirect
Tracking
Stock (2) (12,665) 1,252 (13,917) NM
============ ============ ============ ==========
Tracking Stock
earnings (loss)
per share (4):
Basic $ (0.69) $ 0.07 $ (0.76) NM
Diluted $ (0.69) $ 0.07 $ (0.76) NM
============ ============ ============ ==========
Tracking Stock
weighted average
common shares:
Basic 18,400 18,400 0 0.0%
Diluted 18,400 18,401 (1) 0.0%
============ ============ ============ ==========
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. On May 31, 2001 CSFBdirect announced the termination of
180 employees and closing of one of the offices in Charlotte, North
Carolina. Costs incurred as a result of this transaction are included
as reorganization costs. Additionally, the operation incurred
merger-related retention award compensation totalling $8.7 million.
(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.
On May 28, 1999, CSFB (USA), Inc. issued in an initial public
offering, 18.4 million shares of CSFBdirect Common Stock ("Tracking
Stock"). The shares of Tracking 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) had 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. As a result of it's $29.0 million capital contribution
on March 29, 2001, CSFB (USA)'s retained interest increased to 83.1%,
represented by 90.8 million notional shares.
On July 11, 2001, Credit Suisse First Boston announced the
execution of a definitive merger agreement whereby Credit Suisse First
Boston, Inc., the direct parent of Credit Suisse First Boston (USA),
Inc., will acquire the 18.4 million shares of CSFBdirect common stock
owned by the public for $6.00 per share in cash, or a total of
approximately $110 million. The transaction, which includes a cash
tender offer for all of the CSFBdirect common stock owned by the
public, is expected to close in the third quarter of 2001.
(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 83.1% retained
interest in CSFBdirect. Prior to the offering, CSFB (USA) had a 100%
interest in the earnings of CSFBdirect.
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)
-----------------------------------------------
2q01 1q01 4q00 3q00 2q00
------------------------------------------------
Revenues:
Commissions $ 28,048 $ 33,450 $ 36,197 $ 37,212 $45,542
Underwritings 673 227 572 1,567 1,594
Fees 17,882 22,075 25,977 21,774 17,711
Interest 13,580 16,387 17,638 18,697 19,142
-------- -------- -------- ------ ------
Total revenues 60,183 72,139 80,384 79,250 83,989
-------- -------- --------- ------ ------
Interest expense 772 745 393 272 375
-------- -------- -------- ------- ------
Net revenues 59,411 71,394 79,991 78,978 83,614
-------- -------- -------- ------- ------
Non-interest
expenses:
Compensation and
benefits 31,818 36,936 35,795 34,107 27,046
Brokerage,
clearing, exchange
fees, and other 9,198 10,188 10,811 11,063 12,855
Advertising 6,782 11,192 13,066 9,125 19,990
Occupancy and
related costs 7,849 7,726 5,994 4,026 3,144
Communications
and technology 11,990 11,061 10,246 12,383 11,443
Rebranding costs (1) 4,442 34,452 6,587 - -
Reorganization
costs (1) 15,939 8,987 - - -
Merger-related
retention
compensation (1) 8,767 - - - -
Other operating
expenses 10,947 13,466 12,692 11,378 17,053
-------- -------- -------- ------ ------
Total non-interest
expenses 107,732 134,008 95,191 82,082 91,531
-------- -------- -------- ------ ------
Income (loss) before
income tax provision
(benefit) and equity
in net loss of joint
ventures (48,321) (62,614) (15,200) (3,104) (7,917)
--------- --------- --------- ------- -------
Income tax
provision (benefit) (17,638) (24,811) (5,842) (1,272) (3,353)
Equity in net loss
of joint ventures (3) (411) (3,719) (1,403) (2,330) (2,057)
--------- --------- ---------- ------- -------
Net income (loss) $(31,094) $(41,522) $(10,761) $ (4,162)$(6,621)
========= ========= ========= ========= =======
Earnings (loss)
per share (4):
Basic $ (0.28) $ (0.40) $ (0.10) $ (0.04) $(0.06)
Diluted $ (0.28) $ (0.40) $ (0.10) $ (0.04) $(0.06)
========= ========== ========= ======== ======
Weighted average
notional and
outstanding shares:
Basic 109,152 102,794 102,650 102,650 102,650
Diluted 109,152 102,794 102,650 102,650 102,650
======== ======== ======== ======= =======
Earnings (loss)
attributable to:
CSFB (USA) Retained
Interest $(25,852) $(34,099) $ (8,835) $ (3,417)$(5,436)
CSFBdirect Tracking
Stock (2) (5,242) (7,423) (1,926) (745) (1,185)
========= ======== ========= ======= =======
Tracking Stock
earnings (loss)
per share (4):
Basic $(0.28) $ (0.40) $ (0.10)$ (0.04)$ (0.06)
Diluted $(0.28) $ (0.40) $ (0.10)$ (0.04)$ (0.06)
========= ========= =========== ======== ======
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 18,400
======== ======== ======== ======= ======
CSFBdirect
Combined Financial Data (Unaudited) - See note 2
(Dollars in thousands, except per share data and financial ratios)
-------------------------------------
Six Months Ended
June 30,
2001 2000
-------------------------------------
Other financial data:
Net revenues $ 130,805 $ 197,827
------------- -------------
Net interest revenues $ 28,450 $ 36,646
------------- -------------
Compensation and benefits
as a % of net revenues 52.6% 27.4%
------------- -------------
Compensation and benefits
as a % of pre-tax income
(loss) before compensation
& benefits (163.0)% 75.5%
------------- -------------
Non-compensation expenses
as a % of net revenues 133.4% 63.7%
------------- -------------
Income (loss) before provision
for income taxes and equity
in net loss of joint ventures
as a % of net revenues (84.8)% 8.9%
------------- -------------
Net income (loss) as a
% of net revenues (55.5)% 3.5%
------------- -------------
Tracking Stock shares
outstanding at end of period 18,400,000 18,400,000
------------- -------------
----------------------------------------
2q01 1q01 4q00
----------------------------------------
Net revenues $ 59,411 $ 71,394 $ 79,991
----------- ------------- ------------
Net interest revenues $ 12,808 $ 15,642 17,245
----------- ------------- ------------
Compensation and benefits
as a % of net revenues 53.6% 51.7% 44.7%
----------- ------------- ------------
Compensation and benefits
as a % of pre-tax income
(loss) before compensation
& benefits (192.8)% (143.8)% 173.8%
----------- ------------- ------------
Non-compensation expenses
as a % of net revenues 129.1% 137.0% 74.3%
----------- ------------- ------------
Income (loss) before provision
for income taxes and equity
in net loss of joint ventures
as a % of net revenues (81.3)% (87.7)% (19.0)%
----------- ------------- ------------
Net income (loss) as a
% of net revenues (52.3)% (58.2)% (13.5)%
----------- ------------- ------------
Tracking Stock shares
outstanding at end of period 18,400,000 18,400,000 18,400,000
----------- ------------- ------------
----------------------------------------
3q00 2q00
----------------------------------------
Net revenues $ 78,978 $ 83,614
------------- -------------
Net interest revenues $ 18,425 $ 18,767
------------- -------------
Compensation and benefits
as a % of net revenues 43.2% 32.3%
------------- -------------
Compensation and benefits
as a % of pre-tax income
(loss) before compensation
& benefits 110.0% 141.4%
------------- -------------
Non-compensation expenses
as a % of net revenues 60.7% 77.1%
------------- -------------
Income (loss) before provision
for income taxes and equity
in net loss of joint ventures
as a % of net revenues (3.9)% (9.5)%
------------- -------------
Net income (loss) as a
% of net revenues (5.3)% (7.9)%
------------- -------------
Tracking Stock shares
outstanding at end of period 18,400,000 18,400,000
------------- -------------
CSFBdirect
Combined Other Data (Unaudited) - See note 2
2q01 1q01 4q00 3q00 2q00
Total trades
United States 1,023,000 1,260,000 1,391,000 1,445,000 1,798,000
United Kingdom 47,000 52,000 48,000 52,000 68,000
Japan 767,000 630,000 511,000 428,000 378,000
--------- --------- --------- --------- ---------
Total 1,837,000 1,942,000 1,950,000 1,925,000 2,244,000
--------- --------- --------- --------- ---------
Average trades
per day
United States 16,200 20,300 22,100 22,900 28,500
United Kingdom 800 800 800 800 1,100
Japan 12,400 10,700 8,200 6,800 6,300
--------- --------- --------- --------- ---------
Total 29,400 31,800 31,100 30,500 35,900
--------- --------- --------- --------- ---------
Total accounts
United States 1,014,000 981,000 952,000 923,000 893,000
United Kingdom 58,000 55,000 48,000 44,000 40,000
Japan 97,000 92,000 84,000 74,000 59,000
--------- --------- --------- --------- ---------
Total 1,169,000 1,128,000 1,084,000 1,041,000 992,000
--------- --------- --------- --------- ---------
Total active
accounts (A)
United States 462,000 450,000 441,000 426,000 412,000
United Kingdom 30,000 26,000 25,000 22,000 19,000
Japan 68,000 63,000 54,000 46,000 37,000
--------- --------- --------- --------- ---------
Total 560,000 539,000 520,000 494,000 468,000
--------- --------- --------- --------- ---------
Acquisition cost
per new active
account
United
States (B) $ 329 $ 462 $ 731 $ 383 $ 635
United Kingdom 341(1) 1,537(1) 446 581 389
Japan 94 43 84 343 317
--------- --------- --------- --------- ----------
Average $ 290 $ 401 $ 508 $ 390 $ 529
--------- --------- --------- --------- ----------
Total customer
assets (in millions)
United States $ 19,500 $ 17,900 $ 19,800 $ 24,400 $ 24,600
United Kingdom 300 300 300 200 200
Japan 3,200 2,900 2,700 3,000 2,700
--------- --------- --------- --------- ----------
Total $ 23,000 $ 21,100 $ 22,800 $ 27,600 $ 27,500
--------- --------- --------- --------- ----------
Assets per
active account
United States $ 42,000 $ 40,000 $ 45,000 $ 57,000 $ 60,000
United Kingdom 10,000 12,000 12,000 9,000 11,000
Japan 47,000 46,000 50,000 65,000 73,000
--------- --------- --------- --------- ----------
Average $ 41,000 $ 39,000 $ 44,000 $ 56,000 $ 59,000
--------- --------- --------- --------- ----------
Total employees
United States 1,060(2) 1,276(2) 1,426 1,486 1,350
United Kingdom 99 95 82 65 50
Japan 103 108 107 103 86
India 276 204 184 161 53
Hong Kong 102 104 59 46 10
Other 10 13 13 8 7
--------- --------- --------- --------- ----------
Total 1,650 1,800 1,871 1,869 1,556
--------- --------- --------- --------- ----------
Technology
employees
United States 389 485 436 443 378
United Kingdom 27 29 16 7 1
Japan 9 11 13 10 6
India 276 204 184 157 53
Hong Kong 10 15 7 7 1
Other
--------- --------- --------- --------- ----------
Total 711 744 656 624 439
--------- --------- --------- --------- ----------
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.
(1) based upon actual (not rounded) numbers.
(2) includes the effects of the reorganization.
CSFBdirect
Combined Financial Data (Unaudited) - See note 2
(in thousands, except per share data and financial ratios)
2q01 2q01
vs. vs.
2q01 1q01 2q00 1q01% 2q00
Revenues:
Commissions $28,048 $33,450 $45,542 (16.1)% (38.4)%
Underwritings 673 227 1,594 196.5% (57.8)%
Fees 17,882 22,075 17,711 (19.0)% 1.0%
Interest 13,580 16,387 19,142 (17.1)% (29.1)%
--------- --------- -------- -------- ---------
Total revenues 60,183 72,139 83,989 (16.6)% (28.3)%
--------- --------- -------- -------- ---------
Interest expense 772 745 375 3.6% 105.9%
--------- --------- -------- -------- ---------
Net revenues 59,411 71,394 83,614 (16.8)% (28.9)%
--------- --------- -------- -------- ---------
Non-interest
expenses:
Compensation and
benefits 31,818 36,936 27,046 (13.9)% 17.6%
Brokerage,
clearing,
exchange
fees, and other 9,198 10,188 12,855 (9.7)% (28.4)%
Advertising 6,782 11,192 19,990 (39.4)% (66.1)%
Occupancy and
related costs 7,849 7,726 3,144 1.6% 149.7%
Communications and
technology 11,990 11,061 11,443 8.4% 4.8%
Rebranding
costs (1) 4,442 34,452 - (87.1)% NM
Reorganization
costs (1) 15,939 8,987 - 77.4% NM
Merger-related
retention
compensation (1) 8,767 - - NM NM
Other operating
expenses 10,947 13,466 17,053 (18.7)% (35.8)%
-------- --------- -------- -------- ---------
Total
non-interest
expenses 107,732 134,008 91,531 (19.6)% 17.7%
-------- -------- -------- --------- ---------
Income (loss)
before income
tax provision
(benefit) and
equity in net
loss of joint
ventures (48,321) (62,614) (7,917) 22.8 % NM
--------- --------- ------- ------- -------
Income tax
provision
(benefit) (17,638) (24,811) (3,353) 28.9 % NM
Equity in net
loss of joint
ventures (3) (411) (3,719) (2,057) 88.9 % 80.0 %
---------- --------- --------- -------- --------
Net income (loss) $(31,094) $(41,522) $(6,621) 25.1 % NM
========= ========= ========= ======== ========
Earnings (loss)
per share (4):
Basic $ (0.28) $ (0.40) $ (0.06) 30.0 % NM
Diluted $ (0.28) $ (0.40) $ (0.06) 30.0 % NM
========= ========= ======== ======= ========
Weighted average
notional and
outstanding shares:
Basic 109,152 102,794 102,650 6.2% 6.3%
Diluted 109,152 102,794 102,650 6.2% 6.3%
========= ========= ======== ======= ========
Earnings (loss)
attributable to:
CSFB (USA)
Retained
Interest $(25,852) $(34,099) $ (5,436) 24.2 % NM
CSFBdirect
Tracking
Stock (2) (5,242) (7,426) (1,185) 29.4 % NM
========= ========= ========= ======== ========
Tracking Stock
earnings (loss)
per share (4):
Basic $ (0.28) $ (0.40) $ (0.06) 27.5 % NM
Diluted $ (0.28) $ (0.40) $ (0.06) 27.5 % NM
========= ========= ========= ======== ========
Weighted average
common shares -
Tracking Stock:
Basic 18,400 18,400 18,400 0.0% 0.0%
Diluted 18,400 18,400 18,400 0.0% 0.0%
========= ========= ========= ======== ========
CSFBdirect
Combined Revenues and Expenses as a Percentage
of Net Revenues (Unaudited) - See note 2
-------------------------------------
2q01 1q01 4q00 3q00 2q00
-------------------------------------
Revenues:
Commissions 47.2% 46.9% 45.3% 47.1% 54.5%
Underwritings 1.1% 0.3% 0.7% 2.0% 1.9%
Fees 30.1% 30.9% 32.5% 27.6% 21.2%
Interest 22.9% 23.0% 22.0% 23.7% 22.9%
------ ------ ------ ------ ------
Total revenues 101.3% 101.0% 100.5% 100.3% 100.4%
------ ------ ------ ------ ------
Interest expense 1.3% 1.0% 0.5% 0.3% 0.4%
------ ------ ------ ------ ------
Net revenues 100.0% 100.0% 100.0% 100.0% 100.0%
------ ------ ------ ------ ------
Non-interest expenses:
Compensation and benefits 53.6% 51.7% 44.7% 43.2% 32.3%
Brokerage, clearing,
exchange fees, and other 15.5% 14.3% 13.5% 14.0% 15.4%
Advertising 11.4% 15.7% 16.3% 11.6% 23.9%
Occupancy and related costs 13.2% 10.8% 7.5% 5.1% 3.8%
Communications and technology 20.2% 15.5% 12.7% 15.7% 13.7%
Rebranding costs (1) 7.5% 48.3% 8.3% 0.0% 0.0%
Reorganization costs (1) 26.8% 12.6% 0.0% 0.0% 0.0%
Merger-related retention
compensation (1) 14.8% 0.0% 0.0% 0.0% 0.0%
Other operating expenses 18.4% 18.9% 15.9% 14.4% 20.4%
------ ------ ------ ------ ------
Total non-interest expenses 181.3% 187.7% 119.0% 103.9% 109.5%
------ ------ ------ ------ ------
Income (loss) before income tax
provision (benefit) and equity
in net loss of joint ventures (81.3)% (87.7)% (19.0)% (3.9)% (9.5)%
------ ------ ------ ------ ------
Income tax provision (benefit) (29.7)% (34.8)% (7.3)% (1.6)% (4.0)%
Equity in net loss of joint
ventures (3) (0.7)% (5.2)% (1.8)% (3.0)% (2.5)%
------ ------ ------ ------ ------
Net income (loss) (52.3)% (58.2)% (13.5)% (5.3)% (7.9)%
====== ====== ====== ====== ======
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