MORGAN STANLEY GROUP REPORTS RESULTS
MORGAN STANLEY GROUP REPORTS RESULTS NEW YORK, May 21 /PRNewswire/ -- Morgan Stanley Group Inc.
(NYSE: MS) today announced net income of $183.7 million for the four months ended April 30, 1992. Net revenues (gross revenues less interest expense) for the period were $1,112.2 million. Earnings per common share were $2.14 on a primary basis, and $2.05 on a fully diluted basis.
On Feb. 28, 1992, Morgan Stanley announced that its board of directors had approved a change in its fiscal year-end to Jan. 31 from Dec. 31, effective for the 1992 first quarter. Accordingly, the firm's first fiscal quarter for 1992 is the three-month period ending April 30, 1992. Net income for the fiscal quarter ending April 30, 1992, was $139.1 million compared with $120.1 million for the quarter ending March 31, 1991. Net revenues for the first quarter of 1992 were $808.4 million compared with $747.8 million for the first quarter of 1991. Primary earnings per common share were $1.62 and $1.54 for the first quarters of 1992 and 1991, respectively. Earnings per common share on a fully diluted basis were $1.55 for the first quarter of 1992 vs. $1.46 for the first quarter of 1991. Results for January 1992 were net revenues of $303.8 million, net income of $44.6 million, and primary and fully diluted earnings per common share of $0.52 and $0.50, respectively. Earnings for January reflect a one-time charge of $9.1 million ($0.12 per primary share and $0.11 per fully diluted share), which is the cumulative effect of the company's decision to adopt Financial Accounting Standards Board Statement No. 106 regarding post-retirement benefits. The company also announced the declaration by its board of directors of a quarterly dividend of 24 cents per common share. The dividend is payable June 24, 1992, to holders of record on June 1, 1992. Richard B. Fisher, chairman, and Robert F. Greenhill, president said in a joint statement: "We are pleased with Morgan Stanley's operating performance in the first quarter and first four months of 1992. The balance and mix of the company's business portfolio were again the key to maintaining earnings momentum. Investment banking revenues were supported during the period by an active equity underwriting calendar and increased financial advisory revenues. Global sales and trading activity remained strong, although somewhat below the record levels achieved in the first quarter of 1991. In merchant banking, the company realized investment revenues during the period principally from the initial public offering of Coltec Industries Inc. Important contributions were also made by Morgan Stanley's asset management and custody and clearing business units." Total capital (stockholders' equity and long-term debt) at April 30, 1992, was $6.13 billion, including $3.18 billion of common and preferred stockholders' equity. Book value per common share was $32.78, based on quarter-end shares and share equivalents of 78,000,855. Morgan Stanley Group Inc. is a global financial services firm with offices in New York, London, Tokyo and other principal financial centers. MORGAN STANLEY GROUP INC. Consolidated Statement of Income (Unaudited) (in thousands, except share data) Periods ended Three months One month 4/30/92 3/31/91 1/31/92 Revenues: Investment banking $270,421 $187,034 $67,475 Principal transactions: Trading 291,880 392,579 175,610 Investments 31,229 5,060 -- Commissions 76,225 74,595 27,525 Interest and dividends 1,222,132 935,322 395,806 Asset management & admin. 47,617 35,678 16,051 Other 2,604 1,575 1,404 Total revenues 1,942,108 1,631,843 683,871 Interest expense 1,133,726 884,000 380,068 Net revenues 808,382 747,843 303,803 Expenses excluding interest: Compensation & benefits 399,041 373,921 153,898 Occupancy and equipment 57,106 52,975 18,888 Brokerage, clearing & exchange fees 38,217 32,606 13,192 Communications 21,942 23,008 7,469 Business development 23,948 23,376 7,792 Professional services 20,859 18,143 7,983 Other 19,392 20,242 6,551 Total expenses excluding interest 580,505 544,271 215,773 Income before income taxes 227,877 203,572 88,030 Provision for income taxes 88,813 83,464 34,349 Net inc. bef. cumulative effect of a change in accounting principle 139,064 120,108 53,681 Cumulative effect of a change in accounting principle for postretirement medical benefits, net of income taxes of $7,716 (A) -- -- (9,057) Net income $ 139,064 $ 120,108 $ 44,624 MORGAN STANLEY GROUP INC. Consolidated Statement of Income (Unaudited) (in thousands, except share data) Periods ended Three months One month 4/30/92 3/31/91 1/31/92 Earnings applicable to common shares (B) $126,699 $114,684 $40,811 Avg. common & common equivalent shares outstanding (B) (C) 78,241,821 74,640,700 77,860,330 Primary earns. per share before cumulative effect of accounting change $1.62 $1.54 $0.64 Cumulative effect of accounting change -- -- (0.12) Primary earnings per share (C) $ 1.62 $ 1.54 $ 0.52 Fully diluted earns. per share bef. cumulative effect of accounting change $ 1.55 $ 1.46 $ 0.61 Cumulative effect of accounting change -- -- (0.11) Fully diluted earns. per share (C) $ 1.55 $ 1.46 $ 0.50 (A) Relates to the Company's decision to adopt Statement of Financial Accounting Standards No. 106, Employers' Accounting for Postretirement Benefits Other Than Pensions, in January 1992. (B) Amounts shown are used to calculate primary earnings per share. (C) Amounts for 1991 have been retroactively adjusted to give effect to a two-for-one common stock split effected in the form of a 100 percent stock dividend, which became effective Aug. 27, 1991. -0- 5/21/92 /CONTACT: Charles B. Hintz (investors), 212-703-7178; Jeanne Donovan Andrews, 212-703-4058, both of Morgan Stanley/ (MS) CO: Morgan Stanley Group Inc. ST: New York IN: FIN SU: ERN
SH -- NY028 -- 2733 05/21/92 10:46 EDT
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|Date:||May 21, 1992|
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