THE BEAR STEARNS COMPANIES INC.
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SEGMENT DATA
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(UNAUDITED)
-----------
Three Months Ended % Change From
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February 29, February 28, November 30, February 28, November 30,
2004 2003 2003 2003 2003
----------- ----------- ----------- ----------- -----------
(In thousands)
NET REVENUES
Capital Markets
Institutional Equities $ 297,400 $ 276,461 $ 266,254 7.6% 11.7%
Fixed Income 822,268 791,217 648,948 3.9% 26.7%
Investment Banking 253,179 187,764 250,322 34.8% 1.1%
----------- ----------- -----------
Total Capital Markets 1,372,847 1,255,442 1,165,524 9.4% 17.8%
Global Clearing Services 217,614 175,778 219,960 23.8% (1.1)%
Wealth Management
Private Client Services (1) 110,897 84,153 105,082 31.8% 5.5%
Asset Management 41,890 31,432 39,884 33.3% 5.0%
----------- ----------- -----------
Total Wealth Management 152,787 115,585 144,966 32.2% 5.4%
Other (2) (17,325) (31,371) 827 44.8% nm
----------- ----------- -----------
Total net revenues $ 1,725,923 $ 1,515,434 $ 1,531,277 13.9% 12.7%
=========== =========== ===========
PRE-TAX INCOME
Capital Markets $ 516,369 $ 465,919 $ 433,239 10.8% 19.2%
Global Clearing Services 78,502 52,150 87,127 50.5% (9.9)%
Wealth Management 20,867 5,719 (1,301) 264.9% nm
Other (2) (84,760) (98,589) (82,302) 14.0% (3.0)%
----------- ----------- -----------
Total pre-tax income $ 530,978 $ 425,199 $ 436,763 24.9% 21.6%
=========== =========== ===========
(1) Private Client Services Detail:
Gross Revenues, before transfer to
Capital Markets Segment $ 137,629 $ 103,469 $ 128,979
Revenue transferred to Capital
Markets Segment (26,732) (19,316) (23,897)
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$ 110,897 $ 84,153 $ 105,082
========== ============ ==========
(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 within
the Wealth Management segment to conform to the current period's presentation.
nm - not meaningful
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THE BEAR STEARNS COMPANIES INC.
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CONSOLIDATED STATEMENTS OF INCOME
---------------------------------
(UNAUDITED)
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Three Months Ended % Change From
------------------------------------------ ---------------------------
February 29, February 28, November 30, February 28, November 30,
2004 2003 2003 2003 2003
------------ ------------ ------------ ------------ ------------
(In thousands, except share and per share data)
REVENUES
Commissions $ 308,103 $ 241,915 $ 288,441 27.4% 6.8%
Principal transactions 946,862 968,464 790,486 (2.2)% 19.8%
Investment banking 260,410 167,583 225,763 55.4% 15.3%
Interest and dividends 520,464 434,159 495,514 19.9% 5.0%
Other income 45,606 25,794 64,842 76.8% (29.7)%
----------- ------------ ------------
Total revenues 2,081,445 1,837,915 1,865,046 13.3% 11.6%
Interest expense 355,522 322,481 333,769 10.2% 6.5%
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Revenues, net of interest expense 1,725,923 1,515,434 1,531,277 13.9% 12.7%
------------ ------------ ------------
NON-INTEREST EXPENSES
Employee compensation and benefits 849,148 757,889 748,880 12.0% 13.4%
Floor brokerage, exchange and clearance fees 56,900 44,680 43,498 27.4% 30.8%
Communications and technology 93,828 92,740 88,786 1.2% 5.7%
Occupancy 33,615 34,943 34,959 (3.8)% (3.8)%
Advertising and market development 25,901 25,210 29,239 2.7% (11.4)%
Professional fees 41,800 28,453 39,248 46.9% 6.5%
Other expenses 93,753 106,320 109,904 (11.8)% (14.7)%
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Total non-interest expenses 1,194,945 1,090,235 1,094,514 9.6% 9.2%
------------ ------------ ------------
Income before provision for income taxes 530,978 425,199 436,763 24.9% 21.6%
Provision for income taxes 169,913 150,946 148,436 12.6% 14.5%
------------ ------------ ------------
Net income $ 361,065 $ 274,253 $ 288,327 31.7% 25.2%
============ ============ ============
Net income applicable to common shares $ 353,646 $ 266,261 $ 280,533 32.8% 26.1%
============ ============ ============
Adjusted net income used for diluted earnings
per share (1) $ 378,778 $ 293,756 $ 308,521 28.9% 22.8%
============ ============ ============
Basic earnings per share $ 2.88 $ 2.21 $ 2.43 30.3% 18.5%
============ ============ ============
Diluted earnings per share $ 2.57 $ 2.00 $ 2.19 28.5% 17.4%
============ ============ ============
Weighted average common shares outstanding:
Basic 129,118,964 129,773,603 124,090,961
============ ============ ============
Diluted 147,108,483 147,029,224 140,876,365
============ ============ ============
Cash dividends declared per common share $ 0.20 $ 0.17 $ 0.20
============ ============ ============
(1) Represents net income reduced for preferred stock dividends and increased
for costs related to the CAP Plan. 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.
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THE BEAR STEARNS COMPANIES INC.
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SELECTED FINANCIAL INFORMATION
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(UNAUDITED)
-----------
Three Months Ended
--------------------------------------------
February 29, November 30, August 31,
2004 2003 2003
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(In thousands, except common share data and other data)
Results
Revenues, net of interest expense $ 1,725,923 $ 1,531,277 $ 1,485,060
Net income $ 361,065 $ 288,327 $ 313,415
Net income applicable to common shares $ 353,646 $ 280,533 $ 305,621
Adjusted net income used for diluted earnings per share (1) $ 378,778 $ 308,521 $ 334,180
Financial Position
Stockholders' equity, at period end $ 7,817,777 $ 7,470,088 $ 6,875,668
Total stockholders' equity and trust issued preferred securities, at period end $ 8,080,277 $ 8,032,588 $ 7,438,168
Total capital, at period end $ 40,014,851 $ 37,463,053 $ 34,438,022
Common Share Data
Basic earnings per share $ 2.88 $ 2.43 $ 2.54
Diluted earnings per share $ 2.57 $ 2.19 $ 2.30
Book value per common share, at period end $ 51.19 $ 48.69 $ 45.46
Weighted average common shares outstanding:
Basic 129,118,964 124,090,961 128,681,694
Diluted 147,108,483 140,876,365 145,599,540
Common shares outstanding, at period end (2) 144,320,701 142,369,836 146,662,752
Financial Ratios
Return on average common equity (annualized) 21.3% 19.6% 21.3%
Adjusted pre-tax profit margin (3) 33.3% 31.7% 35.8%
Pre-tax profit margin (4) 30.8% 28.5% 32.5%
After-tax profit margin (5) 20.9% 18.8% 21.1%
Compensation & benefits / Revenues, net of interest expense 49.2% 48.9% 45.9%
Other Data (in billions, except employees)
Margin debt balances, at period end $ 47.9 $ 45.7 $ 41.6
Margin debt balances, average for period $ 46.6 $ 42.2 $ 43.3
Customer short balances, at period end $ 77.0 $ 72.6 $ 66.3
Customer short balances, average for period $ 74.3 $ 70.1 $ 68.0
Stock borrowed, at period end $ 57.0 $ 54.3 $ 52.1
Stock borrowed, average for period $ 58.5 $ 57.4 $ 54.2
Free credit balances, at period end $ 26.1 $ 24.9 $ 22.0
Free credit balances, average for period $ 26.5 $ 22.9 $ 21.2
Assets under management, at period end $ 29.1 $ 27.1 $ 25.7
Employees, at period end 10,431 10,532 10,515
----------------------------
May 31, February 28,
2003 2003
----------------------------
Income Statement
- ----------------
Results
Revenues, net of interest expense $ 1,462,720 $ 1,515,434
Net income $ 280,411 $ 274,253
Net income applicable to common shares $ 272,616 $ 266,261
Adjusted net income used for diluted earnings per share (1) $ 299,533 $ 293,756
Financial Position
Stockholders' equity, at period end $ 6,714,397 $ 6,529,628
Total stockholders' equity and trust issued preferred securities, at period end $ 7,276,897 $ 7,092,128
Total capital, at period end $ 33,520,967 $ 31,987,917
Common Share Data
Basic earnings per share $ 2.27 $ 2.21
Diluted earnings per share $ 2.05 $ 2.00
Book value per common share, at period end $ 43.52 $ 41.64
Weighted average common shares outstanding:
Basic 128,711,363 129,773,603
Diluted 146,062,838 147,029,224
Common shares outstanding, at period end (2) 146,915,258 146,659,224
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Financial Ratios
Return on average common equity (annualized) 19.7% 19.9%
Adjusted pre-tax profit margin (3) 32.4% 31.2%
Pre-tax profit margin (4) 29.3% 28.1%
After-tax profit margin (5) 19.2% 18.1%
Compensation & benefits / Revenues, net of interest expense 47.3% 50.0%
Other Data (in billions, except employees)
Margin debt balances, at period end $ 44.1 $ 38.1
Margin debt balances, average for period $ 39.5 $ 36.3
Customer short balances, at period end $ 66.2 $ 56.5
Customer short balances, average for period $ 62.0 $ 57.0
Stock borrowed, at period end $ 48.6 $ 41.7
Stock borrowed, average for period $ 47.9 $ 45.1
Free credit balances, at period end $ 20.4 $ 18.7
Free credit balances, average for period $ 19.3 $ 18.9
Assets under management, at period end $ 24.4 $ 23.3
Employees, at period end 10,472 10,506
(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.
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