Exhibit 99.1
Contacts:
Investors: Kurt Harrington at 703-312-9647 or kharrington@fbr.com
Media: Bill Dixon at 703-469-1092 or bdixon@fbr.com
FBR Reports Net Income of $81.2 Million
for the Second Quarter of 2004
Diluted Earnings per Share increase 11% to $0.48,
versus $0.43 for the Same Period Last Year
Arlington, Va., August 3, 2004– Friedman, Billings, Ramsey Group, Inc. (NYSE: FBR) today announced net income after tax for the quarter ended June 30, 2004 of $81.2 million, or $0.48 per share (diluted), compared to $58.8 million, or $0.43 per share (diluted), for the second quarter of 2003. Net revenues for the quarter were $178.4 million, up 39% from net revenues of $128.7 million in the second quarter of 2003.
On June 10, 2004, FBR declared a quarterly regular dividend of $0.34 per share and a special dividend of $0.12 per share, paid on July 30, 2004 to shareholders of record as of June 30, 2004. The company earned a total of $170.8 million during the first six months of 2004, or $1.01 per share (diluted), and declared $0.80 per share of total dividends. During the first six months of 2003, the company declared $0.68 per share of total dividends. FBR intends to continue regular quarterly dividends and, to the extent that earnings from the REIT holding company exceed its regular quarterly dividend amount of $0.34 per share, will consider declaring an additional special dividend in December.
“During the first half of 2004 we experienced over 100% revenue growth year-over-year in our taxable subsidiaries. Our overall earnings capability has been enhanced by our growing investor and issuer client bases, as well as the increased recognition of our franchise and brand name.
Our second quarter investment banking revenues of $62 million grew 66% compared to the same period in 2003 and were within our range of expectations for any given quarter. However, these results do demonstrate the quarter to quarter volatility associated with the investment banking business when compared with our first quarter revenues of $91 million.
Importantly, third quarter revenue associated with transactions scheduled to close prior to August 6, 2004 will exceed that of the entire second quarter, and we continue to win new mandates from industry-leading clients and complete transactions from our backlog,” said Eric F. Billings, Co-Chairman and Co-Chief Executive Officer.
Investment Banking
• | FBR’s investment banking operations achieved revenues of $62 million in the second quarter, an increase of 66% over the second quarter of 2003. |
• | In the second quarter of 2004, FBR raised $2.6 billion for issuers, including: |
o | $445 million in six initial public offerings |
o | $1.3 billion in follow-on equity offerings |
o | $382 million in private equity placements |
o | $500 million in corporate debt and non-convertible preferred securities. |
• | During the quarter FBR completed its largest advisory assignment to date, totaling more than $600 million in transaction value. |
• | FBR continues to be ranked number one in terms of the after-market performance of its equity underwritings over the trailing five year period ending June 30, 2004.* |
• | FBR finished the first half of 2004 as the number six book-running manager of U.S. IPOs.** |
• | During the second quarter of 2004 FBR grew its senior investment banking headcount by 14%. |
“Our second quarter results reflect many of the strengths of our business model. More importantly, despite what is perceived as a difficult market for real estate related equities, we have already lead-managed over $550 million of real estate-related offerings during the first part of the third quarter and continue to see strong activity in this sector. Additionally, we believe the contributions we experienced in the second quarter from the diversified industrials and technology, media and telecom sectors will continue into the third quarter,” said Emanuel J. Friedman, Co-Chairman and Co-Chief Executive Officer.
Institutional Brokerage and Research
FBR’s institutional brokerage revenues totaled $26.5 million during the second quarter of 2004, an increase of 35% over the second quarter of 2003. Brokerage revenues for the first half of 2004 were almost double those of the comparable 2003 period.
• | Revenues from agency commissions led the growth, increasing 61% from the second quarter of 2003 to $21.1 million. |
• | Since March 31, 2004, FBR has increased its institutional broker headcount by 7%. |
• | During the second quarter of 2004, the research department of Friedman Billings Ramsey increased its staff of senior analysts by 25%, and now offers independent, value-added equity research on more than 520 companies in eight industry sectors, asset-backed securities (ABS) fixed-income research, as well as Economic and Policy Research, including the work of the Washington Policy Analysis Group. |
Asset Management
• | Base management fees were $6.4 million for this quarter versus $5.4 million, an increase of 19% over the corresponding quarter in 2003. |
• | In the second quarter of 2004, there was a marked increase in net asset inflows into the alternative asset investment vehicles managed by FBR Investment Management. The net inflows of $91 million for this quarter exceeded the inflows for the entire year of 2003. Total assets under management were $2.2 billion as of June 30, 2004. |
2
Principal Investment
FBR’s principal investing activities achieved revenues net of interest expense of $83.2 million during the quarter that ended on June 30, 2004. This $83.2 million is compared to $62.7 million for the second quarter of 2003 and $83.9 million for the first quarter of this year. The fair market value of FBR’s mortgage-backed securities (MBS) portfolio totaled $12.3 billion on June 30, 2004 and the corresponding repurchase agreement and commercial paper liabilities (including those with Georgetown Funding, a commercial paper conduit administered by FBR) were $11.3 billion. Quarter-end leverage (debt to equity) was 10.7 and average leverage in the MBS portfolio for the second quarter of 2004 was 10.1. The company’s overall leverage was 8.3 on June 30, 2004.
The second quarter environment for FBR’s MBS portfolio was characterized by significantly higher prepayments resulting from falling mortgage rates late in the first quarter. These higher prepayments resulted in yields falling during the second quarter due to increased premium amortization. As rates rose through the second quarter prepayment activity slowed, which FBR anticipates will lead to lower constant prepayment rates (CPR’s) and a stabilization of yields in the third quarter.
• | FBR’s MBS portfolio had a weighted average annual yield of 3.17% and a weighted average financing rate of 1.26% (including the cost of hedging), resulting in a net interest spread of 1.91% for the second quarter of 2004, compared to a net interest spread of 2.03% for the preceding quarter. |
• | The second quarter spread was negatively impacted by the average one-month constant prepayment rate (CPR) which was 30.5 for the quarter, up from the 21.6 experienced in the first quarter of 2004. |
• | The weighted average remaining premium of FBR’s MBS portfolio was 1.8% on June 30, 2004. |
• | At the end of the second quarter, FBR’s MBS portfolio continued to maintain a low effective duration (a measure of interest rate sensitivity) of 1.36. |
• | The total value of FBR’s merchant banking portfolio and other long-term investments was $293.2 million as of June 30, 2004. Of this total, $220.8 million was held in the merchant banking portfolio, $59.9 million was held in alternative asset funds, and $12.5 million was held in other long-term investments. |
• | FBR recorded $28.8 million of net gains on principal investments during the quarter. |
Friedman, Billings, Ramsey Group, Inc. provides investment banking***, institutional brokerage***, asset management, and private client services through its operating subsidiaries and invests in mortgage-backed securities and merchant banking opportunities. FBR focuses capital and financial expertise on eight industry sectors: consumer, diversified industrials, energy, financial services, healthcare, insurance, real estate, and technology, media and telecommunications. FBR, headquartered in the Washington, D.C. metropolitan area, with offices in Arlington, Va. and Bethesda, Md., also has offices in Atlanta, Boston, Chicago, Cleveland, Denver, Houston, Irvine, London, New York, Portland, San Francisco, Seattle, and Vienna. For more information, seehttp://www.fbr.com.
***Friedman, Billings, Ramsey & Co., Inc.
3
A live webcast of FBR’s conference call will be available at 9:00 a.m. on Wednesday, August 4, 2004 (Eastern Daylight Time) viahttp://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=FBR. Replays of the webcast will be available afterward.
Financial data follows.
FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
Quarter ended June 30, | |||||||||||||
2004 | % | 2003 | % | ||||||||||
REVENUES: | |||||||||||||
Investment banking: | |||||||||||||
Underwriting | $ | 37,476 | 21.0 | % | $ | 23,975 | 18.5 | % | |||||
Corporate finance | 24,514 | 13.7 | % | 13,383 | 10.4 | % | |||||||
Institutional brokerage: | |||||||||||||
Principal transactions | 5,426 | 3.0 | % | 6,576 | 5.1 | % | |||||||
Agency commissions | 21,060 | 11.8 | % | 13,049 | 10.1 | % | |||||||
Asset management: | |||||||||||||
Base management fees | 6,384 | 3.6 | % | 5,369 | 4.2 | % | |||||||
Incentive allocations and fees | (1,444 | ) | -0.8 | % | 1,471 | 1.1 | % | ||||||
Principal investment: | |||||||||||||
Interest | 86,993 | 48.7 | % | 49,088 | 38.1 | % | |||||||
Net investment income | 28,832 | 16.2 | % | 31,767 | 24.7 | % | |||||||
Dividends | 1,683 | 0.9 | % | 1,542 | 1.2 | % | |||||||
Other | 1,801 | 1.0 | % | 2,219 | 1.7 | % | |||||||
Total revenues | 212,746 | 119.2 | % | 148,439 | 115.3 | % | |||||||
Interest expense | 34,276 | 19.2 | % | 19,721 | 15.3 | % | |||||||
Revenues, net of interest expense | 178,449 | 100.0 | % | 128,718 | 100.0 | % | |||||||
NON-INTEREST EXPENSES: | |||||||||||||
Compensation and benefits | 57,698 | 32.3 | % | 42,841 | 33.3 | % | |||||||
Business development | 8,885 | 5.0 | % | 7,032 | 5.5 | % | |||||||
Professional services | 15,050 | 8.4 | % | 3,646 | 2.8 | % | |||||||
Clearing and brokerage fees | 2,608 | 1.5 | % | 1,748 | 1.4 | % | |||||||
Occupancy and equipment | 3,326 | 1.9 | % | 2,217 | 1.7 | % | |||||||
Communications | 3,442 | 1.9 | % | 2,228 | 1.7 | % | |||||||
Other operating expenses | 5,351 | 3.0 | % | 4,053 | 3.1 | % | |||||||
Total non-interest expenses | 96,360 | 54.0 | % | 63,765 | 49.5 | % | |||||||
Net income before income taxes | 82,089 | 46.0 | % | 64,953 | 50.5 | % | |||||||
Income tax provision | 910 | 0.5 | % | 6,181 | 4.8 | % | |||||||
Net Income | $ | 81,179 | 45.5 | % | $ | 58,772 | 45.7 | % | |||||
Basic earnings per share | $0.49 | $0.43 | |||||||||||
Diluted earnings per share | $0.48 | $0.43 | |||||||||||
Weighted average shares – basic | 167,277 | 135,467 | |||||||||||
Weighted average shares – diluted | 168,566 | 136,190 |
4
FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
Six months ended June 30, | ||||||||||||
2004 | % | 2003 | % | |||||||||
REVENUES: | ||||||||||||
Investment banking: | ||||||||||||
Underwriting | $ | 100,250 | 25.1 | % | $ | 32,763 | 18.6 | % | ||||
Corporate finance | 52,851 | 13.2 | % | 19,102 | 10.8 | % | ||||||
Institutional brokerage: | ||||||||||||
Principal transactions | 11,445 | 2.9 | % | 10,327 | 5.8 | % | ||||||
Agency commissions | 50,197 | 12.6 | % | 20,586 | 11.7 | % | ||||||
Asset management: | ||||||||||||
Base management fees | 12,919 | 3.2 | % | 13,060 | 7.4 | % | ||||||
Incentive allocations and fees | 1,221 | 0.3 | % | 6,986 | 4.0 | % | ||||||
Principal investment: | ||||||||||||
Interest | 175,977 | 44.1 | % | 49,088 | 27.8 | % | ||||||
Net investment income | 55,441 | 13.9 | % | 37,311 | 21.1 | % | ||||||
Dividends | 2,655 | 0.7 | % | 1,542 | 0.9 | % | ||||||
Other | 3,126 | 0.8 | % | 7,213 | 4.1 | % | ||||||
Total revenues | 466,082 | 116.8 | % | 197,978 | 112.1 | % | ||||||
Interest expense | 66,923 | 16.8 | % | 21,367 | 12.1 | % | ||||||
Revenues, net of interest expense | 399,159 | 100.0 | % | 176,611 | 100.0 | % | ||||||
NON-INTEREST EXPENSES: | ||||||||||||
Compensation and benefits | 132,587 | 33.2 | % | 67,645 | 38.3 | % | ||||||
Business development | 25,423 | 6.4 | % | 10,006 | 5.7 | % | ||||||
Professional services | 25,214 | 6.3 | % | 6,551 | 3.7 | % | ||||||
Clearing and brokerage fees | 5,381 | 1.3 | % | 2,980 | 1.7 | % | ||||||
Occupancy and equipment | 6,230 | 1.6 | % | 4,416 | 2.5 | % | ||||||
Communications | 6,384 | 1.6 | % | 4,437 | 2.5 | % | ||||||
Other operating expenses | 11,322 | 2.8 | % | 7,057 | 4.0 | % | ||||||
Total non-interest expenses | 212,541 | 53.2 | % | 103,092 | 58.4 | % | ||||||
Net income before income taxes | 186,618 | 46.8 | % | 73,519 | 41.6 | % | ||||||
Income tax provision | 15,800 | 4.0 | % | 9,024 | 5.1 | % | ||||||
Net income | $ | 170,818 | 42.8 | % | $ | 64,495 | 36.5 | % | ||||
Basic earnings per share | $1.02 | $0.70 | ||||||||||
Diluted earnings per share | $1.01 | $0.69 | ||||||||||
Weighted average shares – basic | 166,678 | 91,502 | ||||||||||
Weighted average shares – diluted | 168,462 | 92,821 |
5
FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
Financial & Statistical Supplement—Operating Results (unaudited)
(Dollars in thousands, except per share data)
YTD 2004 | Q-2 04 | Q-1 04 | YTD 2003 | |||||||||||||
Revenues | ||||||||||||||||
Investment banking: | ||||||||||||||||
Underwriting | $ | 100,250 | $ | 37,476 | $ | 62,774 | $ | 117,296 | ||||||||
Corporate finance | 52,851 | 24,514 | 28,337 | 144,086 | ||||||||||||
Institutional brokerage: | ||||||||||||||||
Principal transactions | 11,445 | 5,426 | 6,019 | 23,965 | ||||||||||||
Agency commissions | 50,197 | 21,060 | 29,137 | 50,178 | ||||||||||||
Asset management: | ||||||||||||||||
Base management fees | 12,919 | 6,384 | 6,535 | 24,782 | ||||||||||||
Incentive income | 1,221 | (1,444 | ) | 2,665 | 13,959 | |||||||||||
Principal investment: | ||||||||||||||||
Interest | 175,977 | 86,993 | 88,984 | 165,898 | ||||||||||||
Net investment income | 55,441 | 28,832 | 26,609 | 70,619 | ||||||||||||
Dividends | 2,655 | 1,683 | 972 | 4,078 | ||||||||||||
Other | 3,126 | 1,801 | 1,325 | 13,664 | ||||||||||||
Total revenues | 466,082 | 212,725 | 253,357 | 628,525 | ||||||||||||
Interest expense | 66,923 | 34,276 | 32,647 | 68,995 | ||||||||||||
Revenues, net of interest expense | 399,159 | 178,449 | 220,710 | 559,530 | ||||||||||||
Non-interest expenses | ||||||||||||||||
Compensation and benefits | 132,587 | 57,698 | 74,889 | 226,389 | ||||||||||||
Business development | 25,423 | 8,885 | 16,538 | 21,416 | ||||||||||||
Professional services | 25,214 | 15,050 | 10,164 | 21,628 | ||||||||||||
Clearing and brokerage fees | 5,381 | 2,608 | 2,773 | 7,014 | ||||||||||||
Occupancy & equipment | 6,230 | 3,326 | 2,904 | 9,585 | ||||||||||||
Communications | 6,384 | 3,442 | 2,942 | 10,574 | ||||||||||||
Other operating expenses | 11,322 | 5,351 | 5,971 | 16,919 | ||||||||||||
Total non-interest expenses | 212,541 | 96,360 | 116,181 | 313,525 | ||||||||||||
Net income before taxes | 186,618 | 82,089 | 104,529 | 246,005 | ||||||||||||
Income tax provision | 15,800 | 910 | 14,890 | 44,591 | ||||||||||||
Net income | $ | 170,818 | $ | 81,179 | $ | 89,639 | $ | 201,414 | ||||||||
Net income before taxes as a percentage of net revenue | 46.8 | % | 46.0 | % | 47.4 | % | 44.0 | % | ||||||||
ROE (annualized) | 22.9 | % | 20.8 | % | 22.1 | % | 22.4 | % | ||||||||
Total shareholders’ equity | $ | 1,431,345 | $ | 1,431,345 | $ | 1,685,673 | $ | 1,554,339 | ||||||||
Basic earnings per share | $1.02 | $0.49 | $0.54 | $1.68 | ||||||||||||
Diluted earnings per share | $1.01 | $0.48 | $0.54 | $1.63 | ||||||||||||
Ending shares outstanding (in thousands) | 166,632 | 166,632 | 165,623 | 165,189 | ||||||||||||
Book value per share | $8.59 | $8.59 | $10.18 | $9.41 | ||||||||||||
Gross assets under management (in millions) | ||||||||||||||||
Managed accounts | $ | 160.3 | $ | 160.3 | $ | 78.8 | $ | 60.6 | ||||||||
Hedge & offshore funds | 370.1 | 370.1 | 435.4 | 344.2 | ||||||||||||
Mutual funds | 1,612.2 | 1,612.2 | 1,897.4 | 1,661.5 | ||||||||||||
Private equity and venture capital funds | 110.6 | 110.6 | 76.5 | 72.2 | ||||||||||||
Total | $ | 2,253.2 | $ | 2,253.2 | $ | 2,488.1 | $ | 2,138.5 | ||||||||
Net assets under management (in millions) | ||||||||||||||||
Managed accounts | $ | 160.3 | $ | 160.3 | $ | 78.8 | $ | 60.6 | ||||||||
Hedge & offshore funds | 366.7 | 366.7 | 350.5 | 286.7 | ||||||||||||
Mutual funds | 1,606.9 | 1,606.9 | 1,874.0 | 1,649.6 | ||||||||||||
Private equity and venture capital funds | 88.8 | 88.8 | 70.4 | 64.3 | ||||||||||||
Total | $ | 2,222.7 | $ | 2,222.7 | $ | 2,373.7 | $ | 2,061.2 | ||||||||
Productive assets under management (in millions) | ||||||||||||||||
Managed accounts | $ | 160.3 | $ | 160.3 | $ | 78.8 | $ | 60.6 | ||||||||
Hedge & offshore funds | 366.7 | 366.7 | 350.5 | 286.7 | ||||||||||||
Mutual funds | 1,606.9 | 1,606.9 | 1,874.0 | 1,649.6 | ||||||||||||
Private equity and venture capital funds | 153.8 | 153.8 | 131.2 | 130.7 | ||||||||||||
Total | $ | 2,287.7 | $ | 2,287.7 | $ | 2,434.5 | $ | 2,127.6 | ||||||||
Employee count | 626 | 626 | 549 | 494 |
6
FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
Financial & Statistical Supplement—Operating Results (unaudited)
(Dollars in thousands, except per share data)
Q-4 03 | Q-3 03 | Q-2 03 | Q-1 03 | |||||||||||||
Revenues | ||||||||||||||||
Investment banking: | ||||||||||||||||
Underwriting | $ | 47,015 | $ | 37,518 | $ | 23,975 | $ | 8,788 | ||||||||
Corporate finance | 73,347 | 51,637 | 13,383 | 5,719 | ||||||||||||
Institutional brokerage: | ||||||||||||||||
Principal transactions | 7,089 | 6,549 | 6,576 | 3,751 | ||||||||||||
Agency commissions | 16,447 | 13,145 | 13,049 | 7,537 | ||||||||||||
Asset management: | ||||||||||||||||
Base management fees | 6,120 | 5,602 | 5,369 | 7,691 | ||||||||||||
Incentive income | 5,424 | 1,549 | 1,471 | 5,515 | ||||||||||||
Principal investment: | ||||||||||||||||
Interest | 69,961 | 46,849 | 49,088 | — | ||||||||||||
Net investment income | 15,130 | 18,178 | 31,767 | 5,544 | ||||||||||||
Dividends | 1,278 | 1,258 | 1,542 | — | ||||||||||||
Other | 3,776 | 2,675 | 2,219 | 4,994 | ||||||||||||
Total revenues | 245,587 | 184,960 | 148,439 | 49,539 | ||||||||||||
Interest expense | 24,656 | 22,972 | 19,721 | 1,646 | ||||||||||||
Revenues, net of interest expense | 220,931 | 161,988 | 128,718 | 47,893 | ||||||||||||
Non-interest expenses | ||||||||||||||||
Compensation and benefits | 91,239 | 67,505 | 42,841 | 24,804 | ||||||||||||
Business development | 6,589 | 4,821 | 7,032 | 2,974 | ||||||||||||
Professional services | 8,570 | 6,507 | 3,646 | 2,905 | ||||||||||||
Clearing and brokerage fees | 1,977 | 2,057 | 1,748 | 1,232 | ||||||||||||
Occupancy & equipment | 2,743 | 2,426 | 2,217 | 2,199 | ||||||||||||
Communications | 3,168 | 2,969 | 2,228 | 2,209 | ||||||||||||
Other operating expenses | 5,603 | 4,259 | 4,053 | 3,004 | ||||||||||||
Total expenses | 119,889 | 90,544 | 63,765 | 39,327 | ||||||||||||
Net income before taxes | 101,042 | 71,444 | 64,953 | 8,566 | ||||||||||||
Income tax provision | 21,084 | 14,483 | 6,181 | 2,843 | ||||||||||||
Net income | $ | 79,958 | $ | 56,961 | $ | 58,772 | $ | 5,723 | ||||||||
Net income before taxes as a percentage of net revenue | 45.7 | % | 44.1 | % | 50.5 | % | 17.9 | % | ||||||||
ROE (annualized) | 24.4 | % | 20.7 | % | 21.9 | % | 3.6 | % | ||||||||
Total shareholders’ equity | $ | 1,554,339 | $ | 1,068,153 | $ | 1,136,093 | $ | 1,011,647 | ||||||||
Basic earnings per share | $0.50 | $0.42 | $0.43 | $0.12 | ||||||||||||
Diluted earnings per share | $0.49 | $0.41 | $0.43 | $0.12 | ||||||||||||
Ending shares outstanding (in thousands) | 165,189 | 136,180 | 136,087 | 131,576 | ||||||||||||
Book value per share | $9.41 | $7.84 | $8.35 | $7.69 | ||||||||||||
Gross assets under management (in millions) | ||||||||||||||||
Managed accounts | $ | 60.6 | $ | 63.8 | $ | 69.6 | $ | 818.8 | ||||||||
Hedge & offshore funds | 344.2 | 253.4 | 237.8 | 239.7 | ||||||||||||
Mutual funds | 1,661.5 | 1,497.7 | 1,424.1 | 1,199.5 | ||||||||||||
Private equity and venture capital funds | 72.2 | 73.6 | 69.8 | 77.5 | ||||||||||||
Total | $ | 2,138.5 | $ | 1,888.5 | $ | 1,801.3 | $ | 2,335.5 | ||||||||
Net assets under management (in millions) | ||||||||||||||||
Managed accounts | $ | 60.6 | $ | 63.8 | $ | 69.6 | $ | 82.7 | ||||||||
Hedge & offshore funds | 286.7 | 226.2 | 199.2 | 160.8 | ||||||||||||
Mutual funds | 1,649.6 | 1,486.1 | 1,414.9 | 1,194.2 | ||||||||||||
Private equity and venture capital funds | 64.3 | 63.4 | 64.5 | 70.0 | ||||||||||||
Total | $ | 2,061.2 | $ | 1,839.5 | $ | 1,748.2 | $ | 1,507.7 | ||||||||
Productive assets under management (in millions) | ||||||||||||||||
Managed accounts | $ | 60.6 | $ | 63.8 | $ | 69.6 | $ | 818.8 | ||||||||
Hedge & offshore funds | 286.7 | 226.2 | 199.2 | 160.8 | ||||||||||||
Mutual funds | 1,649.6 | 1,486.1 | 1,414.9 | 1,194.2 | ||||||||||||
Private equity and venture capital funds | 130.7 | 171.3 | 170.8 | 336.1 | ||||||||||||
Total | $ | 2,127.6 | $ | 1,947.4 | $ | 1,854.5 | $ | 2,509.9 | ||||||||
Employee count | 494 | 479 | 500 | 493 |
7
FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share amounts)
(Unaudited)
ASSETS | 30-Jun-04 | 31-Dec-03 | ||||||
Cash and cash equivalents | $ | 140,941 | $ | 92,688 | ||||
Receivables | 146,491 | 67,295 | ||||||
Investments: | ||||||||
Mortgage-backed securities, at fair value | 12,272,924 | 10,551,570 | ||||||
Long-term investments | 293,158 | 379,002 | ||||||
Reverse repurchase agreements | 225,507 | — | ||||||
Trading securities, at market value | 33,416 | 4,932 | ||||||
Due from clearing broker | 8,985 | 89,940 | ||||||
MMA acquired management contracts | 15,068 | 16,090 | ||||||
Goodwill | 108,013 | 108,013 | ||||||
Building, furniture, equipment and leasehold improvements, net | 9,282 | 6,969 | ||||||
Other assets | 45,097 | 12,086 | ||||||
Total assets | $ | 13,298,882 | $ | 11,328,585 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Trading account securities sold short, at market value | $ | 4,702 | $ | 9,525 | ||||
Repurchase agreements | 6,994,707 | 5,095,676 | ||||||
Commercial paper | 4,575,890 | 4,392,965 | ||||||
Dividends payable | 77,345 | 56,744 | ||||||
Interest payable | 9,203 | 6,188 | ||||||
Accrued compensation and benefits | 86,430 | 100,901 | ||||||
Accounts payable, accrued expenses and other liabilities | 41,972 | 58,058 | ||||||
Long-term debt | 77,288 | 54,189 | ||||||
Total liabilities | 11,867,537 | 9,774,246 | ||||||
Shareholders’ equity: | ||||||||
Common stock, 168,452 and 166,893 shares | 1,685 | 1,669 | ||||||
Additional paid-in capital | 1,474,590 | 1,443,228 | ||||||
Employee stock loan receivable including accrued interest (717 and 1,290 shares) | (4,735 | ) | (8,277 | ) | ||||
Deferred compensation | (17,902 | ) | (2,203 | ) | ||||
Accumulated other comprehensive (loss)/income | (118,573 | ) | 60,505 | |||||
Retained earnings | 96,280 | 59,417 | ||||||
Total shareholders’ equity | 1,431,345 | 1,554,339 | ||||||
Total liabilities and shareholders’ equity | $ | 13,298,882 | $ | 11,328,585 | ||||
Book Value per Share | $8.59 | $9.41 | ||||||
Shares Outstanding | 166,632 | 165,189 |
*Source: Dealogic. Relates to all public U.S. equity transactions [initial public offerings and secondaries/follow-ons, excluding closed-end funds] and all industries. Transactions and performance priced through 6/30/04. Non-weighted average aftermarket performance. Ranked among lead-managing underwriters of more than 50 transactions for the five-year period.
**Source: Dealogic.
8
Statements concerning future performance, developments, events, market forecasts, revenues, expenses, earnings, run rates and any other guidance on present or future periods, constitute forward-looking statements that are subject to a number of factors, risks and uncertainties that might cause actual results to differ materially from stated expectations or current circumstances. These factors include, but are not limited to, the effect of demand for public offerings, activity in the secondary securities markets, interest rates, costs of borrowing, interest spreads, mortgage pre-payment speeds, risks associated with merchant banking investments, the realization of gains and losses on principal investments, available technologies, competition for business and personnel, and general economic, political and market conditions. These and other risks are described in the company’s Annual Report and Form 10-K and quarterly reports on Form 10-Q that are available from the company and from the SEC.
# # #
9