Exhibit No. (99)
The Bear Stearns Companies Inc.
383 Madison Avenue
New York, NY 10179
Tel (212) 272-2000
www.bearstearns.com
Contact: | Elizabeth Ventura | (212) 272-9251 |
| John Quinn | (212) 272-5934 |
BEAR STEARNS REPORTS THIRD QUARTER RESULTS
RECORD EARNINGS PER SHARE OF $2.69
NET INCOME RISES 34% TO $378 MILLION
EQUITY AND EQUITY-RELATED BUSINESSES FUEL STRONG GROWTH
Investment Banking Net Revenues Up 65%
Institutional Equities Net Revenues Rose 43%
Wealth Management Net Revenues Up 21%
Global Clearing Services Net Revenues Increase 15%
NEW YORK, New York – September 15, 2005 – The Bear Stearns Companies Inc. (NYSE:BSC) today reported record earnings per share (diluted) of $2.69 for the third quarter ended August 31, 2005, up 29% from $2.09 per share for the third quarter of 2004. Net income for the third quarter of 2005 was $378.3 million, up 34% from $283.3 million for the third quarter of 2004. Net revenues were $1.81 billion for the third quarter, up 18% from $1.53 billion for the third quarter of 2004. Annualized after-tax return on average common stockholders’ equity for the third quarter 2005 was 16.9%, and for the trailing 12-month period ended August 31, 2005 was 16.8%.
“I am very pleased with the record results for the quarter,” said James E. Cayne, chairman and chief executive officer. “Bear Stearns continues to perform well in every area, our fixed income division is more diversified, our banking effort broader, our client relationships stronger and our talent pool deeper than ever before. The balanced nature of our business mix remains a driver of our excellent results throughout shifting market cycles.”
A brief discussion of the firm’s business segments follows:
CAPITAL MARKETS
Net revenues for the Capital Markets segment were $1.4 billion for the quarter ended
August 31, 2005, up 15% from $1.2 billion for the third quarter of 2004.
• | Institutional Equities net revenues were $333.6 million for the third quarter of 2005, a 43% increase from $233.5 million for the comparable prior-year quarter. Risk arbitrage, equity derivatives and the domestic and international sales and trading areas all contributed significantly to this strong performance. |
• | Fixed Income net revenues were $739.2 million for the third quarter 2005, down 4% from $774.0 million reported for the quarter ended August 31, 2004. The interest rate businesses posted record results with year-over-year gains led by the foreign exchange area. Although down from peak levels, the credit and mortgage-related businesses have remained strong, reflecting market-share gains as well as the results of earlier investments made to broaden the franchise and diversify revenues. |
• | Investment Banking net revenues were $299.9 million for the quarter ended August 31, 2005, up 65% from $181.8 million for the year-ago third quarter. Underwriting, M&A and advisory fees were significantly higher, as market activity increased across a wide range of products including IPO and secondary equity issuance, municipal and high-grade underwriting. Merchant banking revenues increased to $93 million up from $3 million in the prior-year quarter due to principal gains and performance fees. |
GLOBAL CLEARING SERVICES
Net revenues for Global Clearing Services were $258.0 million for the quarter ended
August 31, 2005, up 15% from $225.1 million for the quarter ended August 31, 2004. Higher customer margin debt and customer short balances resulted in increased net interest revenues. Partially offsetting the increase in net interest revenues were lower commission revenues reflecting reduced prime brokerage trading volumes and rates. Average customer margin debt balances were $57.2 billion during the quarter ended August 31, 2005, up 23% from $46.6 billion in the comparable quarter of fiscal 2004. Customer short balances averaged $81.3 billion for the third quarter of 2005, compared with $75.6 billion for the third quarter of 2004.
WEALTH MANAGEMENT
Wealth Management net revenues for the quarter ended August 31, 2005 were $169.6 million, an increase of 21% from $139.8 million for the quarter ended August 31, 2004.
• | Private Client Services net revenues were $113.9 million in the third quarter of 2005, up 10% from $103.5 million in the prior-year quarter. The expansion of the sales force, growth in fee-based assets and increased investor activity contributed to the rise in net revenues. |
• | Asset Management net revenues rose 53% to $55.7 million for the third quarter of 2005 from $36.3 million in the prior-year quarter, reflecting increased management fees and higher performance fees. Total assets under management were $37.1 billion on August 31, 2005, up 32% from $28.1 billion on August 31, 2004. |
EXPENSES |
• | Compensation as a percentage of net revenues was 47.0% for the third quarter of 2005 versus 48.4% in the quarter ended August 31, 2004. Compensation as a percentage of net revenues for the nine months ended August 31, 2005 was 48.5%, and 47.8% for the full year ended November 30, 2004. |
• | Non-compensation expenses were $381.1 million for the quarter ended August 31, 2005, a rise of 10% from $347.8 million for the comparable prior-year period. The increase is primarily related to higher communications and technology costs, occupancy, and professional fees. |
The third quarter 2005 pre-tax profit margin was 32.0% as compared with 28.9% for the third quarter of 2004.
As of August 31, 2005, total capital, including stockholders’ equity and long-term borrowings, was $52.1 billion. The book value of Bear Stearns common stock at August 31, 2005 was $67.18 per share, based on 146.3 million shares outstanding.
Founded in 1923, The Bear Stearns Companies Inc. (NYSE: BSC) is the parent company of Bear, Stearns & Co. Inc., a leading investment banking, securities trading and brokerage firm. With approximately $52.1 billion in total capital, Bear Stearns serves governments, corporations, institutions and individuals worldwide. The company’s business includes corporate finance and mergers and acquisitions, institutional equities and fixed income sales and trading, securities research, private client services, derivatives, foreign exchange and futures sales and trading, asset management and custody services. Through Bear, Stearns Securities Corp., it offers financing, securities lending, clearing and technology solutions to hedge funds, broker-dealers and investment advisors. Headquartered in New York City, the company has approximately 11,500 employees worldwide. For additional information about Bear Stearns, please visit the firm’s web site at http://www.bearstearns.com.
***
Financial Tables Attached
Certain statements contained in this discussion are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those discussed in the forward-looking statements. For a discussion of the risks and uncertainties that may affect the Company’s future results, please see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Management” in the Company’s 2004 Annual Report to Stockholders, and similar sections of the Company's quarterly reports on Form 10-Q, which have been filed with the Securities and Exchange Commission.
A conference call to discuss the Company’s results will be held on Thursday, September 15, 2005 at 10:00 a.m. E.S.T. The call will be open to the public. Those wishing to listen to the conference call should dial 1-800-374-2412 (or 1-706-634-7253 for international callers) at least 10 minutes prior to the commencement of the call to ensure connection. The conference call will also be accessible through the internet at http://www.bearstearns.com.For those unable to listen to the live broadcast of the call, a replay will be available at approximately 1:00 p.m. E.S.T. on Bear Stearns’ web site or by dialing 1-800-642-1687 (or 1-706-645-9291 for international callers). The pass code for the replay is 9174898. The replay will be available until midnight on Friday, September 30,2005. If you have any questions on how to obtain access to the conference call, please contact Joanne Jarema at 1-212-272-4417 or via e-mail at jjarema@bear.com.
THE BEAR STEARNS COMPANIES INC. SEGMENT DATA (UNAUDITED) |
|
| Three Months Ended |
| % Change From |
| Nine Months Ended |
| % Change | ||||||||
|
| August 31, 2005 |
| August 31, 2004 |
| May 31, 2005 |
| August 31, 2004 |
| May 31, 2005 |
| August 31, 2005 |
| August 31, 2004 |
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| (In thousands) |
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| (In thousands) |
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| ||||||
NET REVENUES |
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Capital Markets |
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Institutional Equities |
| $333,620 |
| $233,517 |
| $390,453 |
| 42.9% |
| (14.6%) |
| $1,037,013 |
| $772,480 |
| 34.2% |
Fixed Income |
| 739,242 |
| 773,960 |
| 808,013 |
| (4.5%) |
| (8.5%) |
| 2,412,762 |
| 2,473,702 |
| (2.5%) |
Investment Banking |
| 299,935 |
| 181,818 |
| 231,935 |
| 65.0% |
| 29.3% |
| 749,264 |
| 648,033 |
| 15.6% |
Total Capital Markets |
| 1,372,797 |
| 1,189,295 |
| 1,430,401 |
| 15.4% |
| (4.0%) |
| 4,199,039 |
| 3,894,215 |
| 7.8% |
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Global Clearing Services |
| 258,042 |
| 225,090 |
| 276,160 |
| 14.6% |
| (6.6%) |
| 804,594 |
| 685,619 |
| 17.4% |
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Wealth Management |
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Private Client Services (1) |
| 113,897 |
| 103,498 |
| 105,637 |
| 10.0% |
| 7.8% |
| 333,409 |
| 331,667 |
| 0.5% |
Asset Management |
| 55,686 |
| 36,320 |
| 50,148 |
| 53.3% |
| 11.0% |
| 161,149 |
| 137,454 |
| 17.2% |
Total Wealth Management |
| 169,583 |
| 139,818 |
| 155,785 |
| 21.3% |
| 8.9% |
| 494,558 |
| 469,121 |
| 5.4% |
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Other (2) |
| 11,858 |
| (19,438) |
| 11,206 |
| nm |
| 5.8% |
| 25,301 |
| (64,729) |
| nm |
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Total net revenues |
| $1,812,280 |
| $1,534,765 |
| $1,873,552 |
| 18.1% |
| (3.3%) |
| $5,523,492 |
| $4,984,226 |
| 10.8% |
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PRE-TAX INCOME |
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Capital Markets |
| $492,155 |
| $415,007 |
| $455,776 |
| 18.6% |
| 8.0% |
| $1,429,614 |
| $1,403,139 |
| 1.9% |
Global Clearing Services |
| 127,486 |
| 93,855 |
| 142,989 |
| 35.8% |
| (10.8%) |
| 408,249 |
| 278,301 |
| 46.7% |
Wealth Management |
| 4,894 |
| 7,667 |
| 6,054 |
| (36.2%) |
| (19.2%) |
| 25,927 |
| 54,253 |
| (52.2%) |
Other (2) |
| (44,380) |
| (72,650) |
| (142,380) |
| 38.9% |
| 68.8% |
| (242,868) |
| (249,360) |
| 2.6% |
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Total pre-tax income |
| $580,155 |
| $443,879 |
| $462,439 |
| 30.7% |
| 25.5% |
| $1,620,922 |
| $1,486,333 |
| 9.1% |
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(1) Private Client Services Detail: |
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Gross Revenues, before transfer to Capital Markets Segment |
| $138,987 |
| $121,082 |
| $130,284 |
|
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|
| $402,566 |
| $397,977 |
|
|
Revenue transferred to Capital Markets segment | (25,090) |
| (17,584) |
| (24,647) |
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| (69,157) |
| (66,310) |
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| |
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Private Client Services net revenues |
| $113,897 |
| $103,498 |
| $105,637 |
|
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| $333,409 |
| $331,667 |
|
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(2) | Includes consolidation and elimination entries, unallocated revenues (predominantly interest) and certain corporate administrative functions, including certain legal costs and costs related to the Capital Accumulation Plan for Senior Managing Directors ("CAP Plan").
|
Note: | Certain reclassifications have been made to prior period amounts to conform to the current period's presentation.
|
nm - | not meaningful |
THE BEAR STEARNS COMPANIES INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
|
|
Three Months Ended |
| % Change From | |||||||||
|
| August 31, |
| August 31, |
| May 31, |
| August 31, |
| May 31, | |||
|
| 2005 |
| 2004 |
| 2005 |
| 2004 |
| 2005 | |||
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| (In thousands, except share and per share data) |
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REVENUES |
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Commissions |
| $ | 290,799 |
| $ | 273,722 |
| $ | 313,608 |
| 6.2% |
| (7.3%) |
Principal transactions |
|
| 883,142 |
|
| 867,379 |
|
| 980,179 |
| 1.8% |
| (9.9%) |
Investment banking |
|
| 315,897 |
|
| 157,781 |
|
| 250,426 |
| 100.2% |
| 26.1% |
Interest and dividends |
|
| 1,344,089 |
|
| 528,704 |
|
| 1,191,785 |
| 154.2% |
| 12.8% |
Asset management and other income |
|
| 91,467 |
|
| 66,767 |
|
| 87,582 |
| 37.0% |
| 4.4% |
Total revenues |
|
| 2,925,394 |
|
| 1,894,353 |
|
| 2,823,580 |
| 54.4% |
| 3.6% |
Interest expense |
|
| 1,113,114 |
|
| 359,588 |
|
| 950,028 |
| 209.6% |
| 17.2% |
Revenues, net of interest expense |
|
| 1,812,280 |
|
| 1,534,765 |
|
| 1,873,552 |
| 18.1% |
| (3.3%) |
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NON-INTEREST EXPENSES |
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Employee compensation and benefits |
|
| 850,985 |
|
| 743,038 |
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| 922,908 |
| 14.5% |
| (7.8%) |
Floor brokerage, exchange and clearance fees |
|
| 55,029 |
|
| 56,822 |
|
| 57,262 |
| (3.2%) |
| (3.9%) |
Communications and technology |
|
| 97,668 |
|
| 92,360 |
|
| 100,343 |
| 5.7% |
| (2.7%) |
Occupancy |
|
| 43,354 |
|
| 35,843 |
|
| 40,756 |
| 21.0% |
| 6.4% |
Advertising and market development |
|
| 32,784 |
|
| 30,030 |
|
| 34,577 |
| 9.2% |
| (5.2%) |
Professional fees |
|
| 60,018 |
|
| 47,547 |
|
| 61,278 |
| 26.2% |
| (2.1%) |
Other expenses |
|
| 92,287 |
|
| 85,246 |
|
| 193,989 |
| 8.3% |
| (52.4%) |
Total non-interest expenses |
|
| 1,232,125 |
|
| 1,090,886 |
|
| 1,411,113 |
| 12.9% |
| (12.7%) |
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Income before provision for income taxes |
|
| 580,155 |
|
| 443,879 |
|
| 462,439 |
| 30.7% |
| 25.5% |
Provision for income taxes |
|
| 201,850 |
|
| 160,620 |
|
| 164,329 |
| 25.7% |
| 22.8% |
Net income |
| $ | 378,305 |
| $ | 283,259 |
| $ | 298,110 |
| 33.6% |
| 26.9% |
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Net income applicable to common shares |
| $ | 372,357 |
| $ | 276,416 |
| $ | 291,667 |
| 34.7% |
| 27.7% |
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Adjusted net income used for diluted earnings per share (1) |
| $ | 394,919 |
| $ | 300,984 |
| $ | 309,660 |
| 31.2% |
| 27.5% |
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Basic earnings per share |
| $ | 2.96 |
| $ | 2.31 |
| $ | 2.32 |
| 28.1% |
| 27.6% |
Diluted earnings per share |
| $ | 2.69 |
| $ | 2.09 |
| $ | 2.09 |
| 28.7% |
| 28.7% |
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Weighted average common shares outstanding: |
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Basic |
|
| 130,194,452 |
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| 127,014,483 |
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| 130,663,337 |
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Diluted |
|
| 147,051,538 |
|
| 144,201,755 |
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| 148,037,979 |
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Cash dividends declared per common share |
| $ | 0.25 |
| $ | 0.20 |
| $ | 0.25 |
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(1) | Represents net income reduced for preferred stock dividends and increased for costs related to the CAP Plan and the redemption of preferred stock. For earnings per share, the costs related to the CAP Plan (net of tax) are added back as the shares related to the CAP Plan are included in weighted average common shares outstanding.
|
Note: | Certain reclassifications have been made to prior period amounts to conform to the current period's presentation. |
THE BEAR STEARNS COMPANIES INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
|
Nine Months Ended |
| % Change From | ||||
|
| August 31, |
|
| August 31, |
| August 31, |
|
| 2005 |
|
| 2004 |
| 2004 |
| (In thousands, except share and per share data) |
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REVENUES |
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Commissions | $ | 901,784 |
| $ | 888,975 |
| 1.4% |
Principal transactions |
| 2,841,954 |
|
| 2,747,440 |
| 3.4% |
Investment banking |
| 800,033 |
|
| 634,840 |
| 26.0% |
Interest and dividends |
| 3,557,493 |
|
| 1,547,637 |
| 129.9% |
Asset management and other income |
| 270,079 |
|
| 220,704 |
| 22.4% |
Total revenues |
| 8,371,343 |
|
| 6,039,596 |
| 38.6% |
Interest expense |
| 2,847,851 |
|
| 1,055,370 |
| 169.8% |
Revenues, net of interest expense |
| 5,523,492 |
|
| 4,984,226 |
| 10.8% |
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NON-INTEREST EXPENSES |
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Employee compensation and benefits |
| 2,680,668 |
|
| 2,452,239 |
| 9.3% |
Floor brokerage, exchange and clearance fees |
| 169,609 |
|
| 173,369 |
| (2.2%) |
Communications and technology |
| 296,950 |
|
| 274,509 |
| 8.2% |
Occupancy |
| 123,704 |
|
| 104,226 |
| 18.7% |
Advertising and market development |
| 95,933 |
|
| 85,246 |
| 12.5% |
Professional fees |
| 168,015 |
|
| 131,717 |
| 27.6% |
Other expenses |
| 367,691 |
|
| 276,587 |
| 32.9% |
Total non-interest expenses |
| 3,902,570 |
|
| 3,497,893 |
| 11.6% |
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Income before provision for income taxes |
| 1,620,922 |
|
| 1,486,333 |
| 9.1% |
Provision for income taxes |
| 565,702 |
|
| 494,206 |
| 14.5% |
Net income | $ | 1,055,220 |
| $ | 992,127 |
| 6.4% |
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Net income applicable to common shares | $ | 1,036,351 |
| $ | 970,671 |
| 6.8% |
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Adjusted net income used for diluted earnings per share (1) | $ | 1,098,611 |
| $ | 1,045,789 |
| 5.1% |
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Basic earnings per share | $ | 8.22 |
| $ | 7.97 |
| 3.1% |
Diluted earnings per share | $ | 7.42 |
| $ | 7.16 |
| 3.6% |
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Weighted average common shares outstanding: |
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Basic |
| 130,716,960 |
|
| 128,287,500 |
|
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Diluted |
| 148,041,526 |
|
| 145,992,306 |
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Cash dividends declared per common share | $ | 0.75 |
| $ | 0.60 |
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(1) | Represents net income reduced for preferred stock dividends and increased for costs related to the CAP Plan and the redemption of preferred stock. For earnings per share, the costs related to the CAP Plan (net of tax) are added back as the shares related to the CAP Plan are included in weighted average common shares outstanding.
|
Note: | Certain reclassifications have been made to prior period amounts to conform to the current period's presentation. |
THE BEAR STEARNS COMPANIES INC. SELECTED FINANCIAL INFORMATION (UNAUDITED) |
|
| Three Months Ended | ||||||||||||||
|
| August 31, | May 31, | February 28, |
| November 30, | August 31, | May 31, | February 29, | |||||||
|
| 2005 | 2005 | 2005 |
| 2004 | 2004 | 2004 | 2004 | |||||||
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| (In thousands, except common share data, financial ratios and other data) | ||||||||||||||
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Results |
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Revenues, net of interest expense |
| $ | 1,812,280 | $ | 1,873,552 | $ | 1,837,660 |
| $ | 1,828,657 | $ | 1,534,765 | $ | 1,723,538 | $ | 1,725,923 |
Net income |
| $ | 378,305 | $ | 298,110 | $ | 378,805 |
| $ | 352,606 | $ | 283,259 | $ | 347,803 | $ | 361,065 |
Net income applicable to common shares |
| $ | 372,357 | $ | 291,667 | $ | 372,327 |
| $ | 345,990 | $ | 276,416 | $ | 340,609 | $ | 353,646 |
Adjusted net income used for diluted earnings per share (1) |
| $ | 394,919 | $ | 309,660 | $ | 394,032 |
| $ | 372,632 | $ | 300,984 | $ | 366,027 | $ | 378,778 |
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Financial Position |
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Stockholders' equity, at period end |
| $ | 9,881,046 | $ | 9,641,514 | $ | 9,518,898 |
| $ | 8,990,872 | $ | 8,067,519 | $ | 8,006,834 | $ | 7,817,777 |
Total capital, at period end |
| $ | 52,070,689 | $ | 49,330,143 | $ | 48,491,012 |
| $ | 45,834,149 | $ | 41,567,718 | $ | 39,973,413 | $ | 39,970,906 |
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Common Share Data |
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Basic earnings per share |
| $ | 2.96 | $ | 2.32 | $ | 2.94 |
| $ | 2.91 | $ | 2.31 | $ | 2.77 | $ | 2.88 |
Diluted earnings per share |
| $ | 2.69 | $ | 2.09 | $ | 2.64 |
| $ | 2.61 | $ | 2.09 | $ | 2.49 | $ | 2.57 |
Book value per common share, at period end |
| $ | 67.18 | $ | 64.67 | $ | 62.88 |
| $ | 59.13 | $ | 55.13 | $ | 53.38 | $ | 51.19 |
Weighted average common shares outstanding: |
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Basic |
|
| 130,194,452 |
| 130,663,337 |
| 131,261,212 |
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| 125,346,024 |
| 127,014,483 |
| 129,071,295 |
| 129,118,964 |
Diluted |
|
| 147,051,538 |
| 148,037,979 |
| 149,193,402 |
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| 142,672,823 |
| 144,201,755 |
| 146,921,897 |
| 147,108,483 |
Common shares outstanding, at period end (2) |
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| 146,341,980 |
| 145,928,440 |
| 146,012,775 |
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| 144,484,099 |
| 144,052,137 |
| 144,285,667 |
| 144,320,701 |
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Financial Ratios |
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Return on average common equity (annualized) |
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| 16.9% |
| 13.5% |
| 17.8% |
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| 19.5% |
| 15.9% |
| 19.6% |
| 21.3% |
Adjusted pre-tax profit margin (3) |
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| 34.2% |
| 26.4% |
| 33.5% |
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| 31.8% |
| 31.7% |
| 32.3% |
| 33.3% |
Pre-tax profit margin (4) |
|
| 32.0% |
| 24.7% |
| 31.5% |
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| 29.3% |
| 28.9% |
| 29.7% |
| 30.8% |
After-tax profit margin (5) |
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| 20.9% |
| 15.9% |
| 20.6% |
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| 19.3% |
| 18.5% |
| 20.2% |
| 20.9% |
Compensation & benefits / Revenues, net of interest expense |
|
| 47.0% |
| 49.3% |
| 49.3% |
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| 43.8% |
| 48.4% |
| 49.9% |
| 49.2% |
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Other Data (in billions, except employees) |
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Margin debt balances, at period end |
| $ | 59.6 | $ | 53.9 | $ | 61.3 |
| $ | 57.3 | $ | 49.6 | $ | 44.4 | $ | 47.9 |
Margin debt balances, average for period |
| $ | 57.2 | $ | 58.7 | $ | 58.0 |
| $ | 52.0 | $ | 46.6 | $ | 46.7 | $ | 46.6 |
Customer short balances, at period end |
| $ | 80.6 | $ | 82.5 | $ | 93.9 |
| $ | 85.4 | $ | 73.7 | $ | 74.9 | $ | 77.0 |
Customer short balances, average for period |
| $ | 81.3 | $ | 86.8 | $ | 88.5 |
| $ | 78.2 | $ | 75.6 | $ | 77.2 | $ | 74.3 |
Securities borrowed, at period end |
| $ | 53.4 | $ | 59.7 | $ | 67.8 |
| $ | 65.2 | $ | 58.9 | $ | 59.7 | $ | 62.0 |
Securities borrowed, average for period |
| $ | 59.4 | $ | 65.1 | $ | 69.6 |
| $ | 64.1 | $ | 63.3 | $ | 65.3 | $ | 62.6 |
Free credit balances, at period end |
| $ | 29.6 | $ | 31.6 | $ | 30.2 |
| $ | 30.8 | $ | 29.3 | $ | 28.8 | $ | 26.1 |
Free credit balances, average for period |
| $ | 28.6 | $ | 30.6 | $ | 31.1 |
| $ | 28.8 | $ | 30.8 | $ | 28.1 | $ | 26.5 |
Assets under management, at period end |
| $ | 37.1 | $ | 36.9 | $ | 37.0 |
| $ | 34.9 | $ | 28.1 | $ | 27.3 | $ | 29.1 |
Employees, at period end |
|
| 11,498 |
| 11,141 |
| 11,019 |
|
| 10,961 |
| 10,715 |
| 10,469 |
| 10,431 |
(1) | Represents net income reduced for preferred stock dividends and increased for costs related to the CAP Plan and the redemption of preferred stock. For earnings per share, the costs related to the CAP Plan (net of tax) are added back as the shares related to the CAP Plan are included in weighted average common shares outstanding. |
(2) | Represents shares used to calculate book value per common share. Common shares outstanding include units issued under certain stock compensation plans which will be distributed as shares of common stock. |
(3) | Represents the ratio of income before both CAP Plan costs and provision for income taxes to revenues, net of interest expense. |
(4) | Represents the ratio of income before provision for income taxes to revenues, net of interest expense. |
(5) | Represents the ratio of net income to revenues, net of interest expense. |