-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Q+Bg+dml4FXakol8dqVvczVbWCZI8+0gRer8wm0jbX96+PMr3bOjYHIAiwI1HVYU ecL+GZ+aKvHolwNUygikpA== 0001021408-01-000498.txt : 20010131 0001021408-01-000498.hdr.sgml : 20010131 ACCESSION NUMBER: 0001021408-01-000498 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20010130 ITEM INFORMATION: FILED AS OF DATE: 20010130 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FRIEDMAN BILLINGS RAMSEY GROUP INC CENTRAL INDEX KEY: 0001048750 STANDARD INDUSTRIAL CLASSIFICATION: SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211] IRS NUMBER: 541837743 STATE OF INCORPORATION: VA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-13731 FILM NUMBER: 1518668 BUSINESS ADDRESS: STREET 1: 1001 19TH STREET N CITY: ARLINGTON STATE: VA ZIP: 22209 BUSINESS PHONE: 7033129500 MAIL ADDRESS: STREET 1: 1001 NINETEENTH ST N CITY: ARLINGTON STATE: VA ZIP: 22209 8-K 1 0001.txt FORM 8-K FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (date of earliest event reported): January 30, 2001 Friedman, Billings, Ramsey Group, Inc. (Exact name of Registrant as specified in its charter) Virginia 54-1837743 001-13731 (State or other (I.R.S. Employer incorporation or (Commission File Number) jurisdiction of organization) Identification No.) 1001 Nineteenth Street North Arlington, VA 22209 (Address of principal executive offices) (Zip code) (703) 312-9500 (Registrant's telephone number including area code) Item 5. Other Events 1. On January 30, 2001, Friedman, Billings, Ramsey Group, Inc. issued a press release announcing its earnings for the full year 2000 and for the 4th quarter. The entire text of that press release is being filed herewith and attached as exhibit 99.1. 2. Friedman, Billings, Ramsey Group, Inc., attaches herewith, as exhibit 99.2, Financial & Statistical Supplement - Operating Results, the financial schedule of its operating results for the 4th quarter 2000 and year-to-date 2000. 99.1 Press Release dated January 30, 2001. 99.2 Financial & Statistical Supplement - Operating Results. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized. FRIEDMAN, BILLINGS, RAMSEY GROUP, INC. By: /s/ Emanuel J. Friedman Chairman and Co-Chief Executive Officer EX-99.1 PRESS RELEASE EXHIBIT 99.1 For Immediate Release - --------------------- Media Contact: Michael W. Robinson (703)-312-1830 or mrobinson@fbr.com ----------------- Investor Contact: Kurt Harrington (703)-312-9647 or kharrington@fbr.com ------------------- Note to Editors: ? pages of financial information follow this page. - more -
FRIEDMAN, BILLINGS, RAMSEY GROUP, INC. Financial & Statistical Supplement - Operating Results (unaudited) (Dollars in thousands, except per share data)
EX-99.2 Financial & Statistical Supplement - Operating Results (unaudited) EXHIBIT 99.2 # # # EX-99.1 2 0002.txt PRESS RELEASE [Logo of FBR] Exhibit 99.1 Confidential Draft 10 - Monday, January 29 - 10:30 p.m. For Immediate Release - --------------------- Media Contact: Michael W. Robinson (703)-312-1830 or mrobinson@fbr.com ----------------- Investor Contact: Kurt Harrington (703)-312-9647 or kharrington@fbr.com ------------------- Friedman, Billings, Ramsey Group Reports Annual Earnings; Business Diversification in Focused Sectors Drives $180.9 Million in Revenue, $18.1 Million in Net Income, or $0.37 Per Share (basic), for 2000 Net Income of $0.03 Per Share in Fourth Quarter ARLINGTON, Va., January 30, 2001 - Friedman, Billings, Ramsey Group, Inc. (NYSE: FBR) today reported that its broad mix of asset management and capital markets businesses - focused on four key industry sectors - resulted in 2000 net income of $18.1 million, or $0.36 (diluted) per share and $0.37 (basic) per share, versus a net loss of $7 million, or $0.14 (diluted) per share in 1999. Revenue in 2000 was $180.9 million, compared with $139 million in 1999, an increase of 30 percent. "Again this year, our diversified asset management, investment banking, and institutional brokerage platform produced an even mix of revenue, with about a third coming from each group," Chairman and Co-Chief Executive Officer Emanuel J. Friedman said. "Our focus in financial institutions, real estate, technology, and energy, drove our earnings in the company's asset management and capital markets businesses," Friedman said. Asset Management - 2000 Asset management revenue for the year was $63.8 million, more than 51 percent ahead of last year's $42.1 million. "The diversity of our asset management vehicles continued to be an especially good revenue driver for FBR in 2000," Friedman said. "In addition to realizing significant returns on our own invested capital, our sector-specific strategy enabled us to generate steady base fee income throughout the year," he said. Currently, FBR has 11 proprietary venture capital, private equity, hedge fund, and other alternative asset management vehicles with investments in the financial institutions, real estate, technology, energy, and related sectors. In the financial sector, one of these proprietary vehicles, FBR Ashton, which has focused on publicly-traded U.S. financial equities since 1992, generated a gross return of 45 percent in 2000. Similarly, FBR's mutual funds - the FBR Financial Services Fund and the FBR Small Cap. Financial Fund, launched in 1996 - - were two of the best performing financial sector mutual funds in 2000. Additionally, FBR's three private equity funds focused on the financial sector - FBR Private Equity Fund, FBR Financial Services Partners (FBR Financial Fund II), and FBR Future Financial Fund - contributed significantly to the asset management group's revenue in 2000. In the real estate sector, FBR Asset Investment Corporation (Amex: FB) - a publicly-traded Real Estate Investment Trust (REIT) managed by FBR - declared dividends of $2.95 per share in 2000, representing a return of 21 percent for the year. FBR Asset's book value also increased 24 percent, or $4.36 per share in 2000. FBR itself has a 35 percent equity ownership interest in FBR Asset. In the technology sector, FBR Technology Venture Partners I (FBR TVP I) generated a gross return of more than 9 times the original investment from inception through the end of 2000, of which more than 6.5 times was distributed to FBR TVP I's partners during the year. By the end of 2000, FBR TVP I had distributed $267 million to its partners - with another $43 million distributed in January 2001. Also in 2000, FBR launched three new technology venture capital funds, with almost $100 million targeted for investments in technology companies in the U.K. and Europe, the Pacific Northwest, and the genomics and biotechnology sector. Capital Markets - 2000 Capital markets revenue for the year was $107.3 million, more than 24 percent ahead of last year's $86.1 million. Investment banking revenue was $53.9 million, 10 percent over 1999 levels of $49 million; and institutional brokerage revenue for the year was $53.4 million, more than 44 percent above the previous year's $37 million. In investment banking, FBR participated in more than $4 billion in underwritings and advised on more than $1 billion in mergers and acquisitions. Eric F. Billings, Vice Chairman and Co-Chief Executive Officer, said that FBR's investment banking activity during the year demonstrated the company's diversity with a broad mix of public underwritings, private placements, and merger and acquisition assignments across the financial institutions, real estate, technology, and energy sectors. "Even in the most turbulent markets, FBR has a demonstrated ability to identify, communicate, and execute transactions across our four focused sectors," Billings said. Among the transactions Billings pointed to as examples of the company's diversity were: . Financial Institutions - Advised Prism Financial on its acquisition ---------------------- by the Royal Bank of Canada; advised City Holding Company on the sale of the servicing rights for approximately $1.1 billion of mortgages to Ocwen Financial Corporation; and co-managed a $67.5 million secondary offering for American Capital Strategies, Ltd. 2 . Technology - Advised Aether Systems, Inc. on its acquisition of ---------- Cerulean Technology, Inc.; underwrote the $165 million initial public offering of webMethods, Inc.; and handled a $52.7 million private placement for Strategy.com, and a $191 million private placement for Headstrong. . Energy - Lead managed the $19.5 million initial public offering of ------ Atlas Pipeline Partners, L.P. (with total returns of 75 percent for the year, making it the #1 best performing oil and gas industry IPO of the year according to CommScann Equidesk); lead managed the $80.5 million initial public offering/re-capitalization of DevX Energy, Inc.; and finished the year as the #8 energy equity underwriter in the country (source: Bloomberg). "In addition to maintaining our traditional strength in public underwriting in 2000, we also fulfilled our promise of increasing our merger and acquisition and other advisory revenues," Billings said. Merger and acquisition and other advisory revenue was $22.5 million for the year, a 54 percent increase over 1999's $14.6 million. "And already in 2001 we've seen renewed activity, for the first time in several years, in another key area of strength for FBR, mortgage REITs," Billings added. Just last week, FBR lead managed a $85 million secondary offering for Annaly Mortgage Management, Inc., the first mortgage REIT to successfully access the public capital markets in almost three years. FBR was ranked the #1 REIT IPO lead manager in 1998 (according to CommScann EquiDesk Data and Bloomberg). In institutional brokerage, FBR's deep research base enabled the company to generate significant business - and revenue. FBR has 371 companies under coverage, having added 65 in 2000, with an increased emphasis on providing coverage of larger companies in order to facilitate greater penetration of larger institutional accounts. Billings also noted that the newest division of FBR's brokerage business, the FBR Private Client Group, continued to capture significant assets. "In 2000, the Private Client Group continued to build a solid foundation of assets that, over time, have the potential of driving significant revenues for us, as well as attractive returns for our PCG clients," Billings said. In 2000, the technology sector was the largest contributor to the company's investment banking revenue. "There is no question that 2000 was an extraordinary 12 months for the technology sector," President and Co-Chief Executive Officer W. Russell Ramsey said. "Having worked with a wide cross section of global technology leaders in 2000, our team, led by Phil Facchina, showed tremendous skill and versatility throughout the year, first through a wave of public underwritings, and later through major private placements and mergers and acquisitions assignments," he said. "With our unique footprint in one of the nation's fastest growing technology communities and our experienced capital markets and asset management teams in place, FBR continues to provide a high level of corporate finance and investment banking expertise to issuers, insights to institutional investors, and opportunities for our fund investors," Ramsey said. 3 Fourth Quarter For the quarter ended December 31, 2000, FBR reported net income of $1.4 million, or $0.03 (diluted) per share and $0.03 (basic) per share, versus net income of $10.2 million, or $0.21 (diluted) per share $0.21 (basic) per share, for the same quarter a year ago. Revenue for the fourth quarter was $26.4 million, compared with $67.6 million for the fourth quarter of 1999. In asset management, FBR reported ($1.9) million in revenue during the quarter, versus $16 million in the previous quarter and $35.8 million in the fourth quarter of 1999. Asset management revenues, which include investment gains and losses, were adversely affected in the fourth quarter by the downturn in the technology sector which was partially offset by $9.2 million of revenue from the company's non-technology asset management vehicles. In the fourth quarter, FBR's $26 million in capital markets revenue (which includes investment banking and institutional brokerage) was consistent with the third quarter's $25.6 million. FBR's $13.6 million in investment banking revenue for the quarter came from public underwritings, private placements, and merger and acquisition and other advisory assignments in the financial institutions, technology, and energy sectors. With 11 deals in all investment banking revenue matched that of the third quarter. The quarter also saw continued strength in FBR's institutional brokerage business, with revenue of $12.3 million, versus $12 million in the previous quarter, and up 29 percent over fourth quarter 1999 revenue of $9.5 million. FBR had 49.4 million common shares outstanding, shareholders' equity of $214.6 million, and basic book value per share of $4.34 as of December 31, 2000. Total assets as of December 31, 2000 were $250 million, including cash and liquid assets of $75 million. A live webcast of FBR's conference call will be available at 9 a.m. (Eastern Time) via: http://www.vcall.com/NASApp/VCall/EventPage?ID=64046. Replays of the ---------------------------------------------------- webcast will be available afterward. Friedman, Billings, Ramsey Group, Inc. (NYSE: FBR) is a holding company for investment banking, institutional brokerage, venture capital, and other specialized asset management products and services. FBR provides capital and financial expertise throughout a company's lifecycle and affords investors access to a full range of financial products and services. Headquartered in Northern Virginia, home to an array of leading global companies, FBR has offices in Arlington and Reston, Va., Irvine, Ca., Boston, Charlotte, Chicago, Portland, Seattle, London, and Vienna. For more information, see www.fbr.com. ----------- # # # 4 Statements concerning future performance, developments, negotiations or events, expectations or plans and objectives for future operations or for growth and market forecasts, and any other guidance on present and 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 competition among venture capital firms and the high degree of risk associated with venture capital investments, the effect of demand for public offerings, activity in the secondary securities markets, available technologies, competition for business and personnel, and general economic, political and market conditions. Note to Editors: 2 pages of financial information follow this page. - more - 5 [LOGO OF FBR] FRIEDMAN, BILLINGS, RAMSEY GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share amounts) (Unaudited)
Year ended December 31, 2000 % 1999 % -------- ------- --------- -------- REVENUES: Investment banking $ 53,943 29.8% $ 49,036 35.3% Institutional brokerage 53,403 29.5% 37,046 26.7% Asset management 63,849 35.3% 42,116 30.3% Interest, dividends and other 9,695 5.4% 10,768 7.7% -------- ------ --------- -------- Total revenues 180,890 100.0% 138,966 100.0% -------- ------ --------- ------- EXPENSES: Compensation and benefits 109,768 60.7% 98,424 70.8% Business development and professional services 19,229 10.6% 23,582 17.0% Interest 1,665 0.9% 1,323 1.0% Other 27,983 15.5% 22,608 16.3% -------- ------ --------- ------- Total expenses 158,645 87.7% 145,937 105.0% -------- ------ --------- ------- Net income (loss) before income taxes 22,245 12.3% (6,971) -5.0% Provision for income taxes 2.3% 0.0% 4,163 - -------- ------ --------- ------- Net income (loss) $ 18,082 10.0% $ (6,971) -5.0% ======== ====== ========= ======= Basic earnings (loss) per share $ 0.37 $ (0.14) ======== ========= Diluted earnings (loss) per share $ 0.36 $ (0.14) ======== ========= Weighted average shares - basic 49,162 48,872 ======== ========= Weighted average shares - diluted 50,683 48,872 ======== =========
6 [LOGO OF FBR] FRIEDMAN, BILLINGS, RAMSEY GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share amounts) (Unaudited)
Three months ended December 31, 2000 % 1999 % -------- ------- -------- ------- REVENUES: Investment banking $ 13,656 51.7% $ 19,710 29.2% Institutional brokerage 12,303 46.6% 9,520 14.1% Asset management (1,886) -7.1% 35,807 53.0% Interest, dividends and other 2,336 8.8% 2,559 3.7% --------- ------ -------- ------ Total revenues 26,409 100.0% 67,596 100.0% --------- ------ -------- ------ EXPENSES: Compensation and benefits 13,527 51.2% 45,759 67.7% Business development and professional services 4,247 16.1% 5,418 8.0% Interest 700 2.7% 163 0.2% Other 6,504 24.6% 6,060 9.0% --------- ------ -------- ------ Total expenses 24,978 94.6% 57,400 84.9% --------- ------ -------- ------ Net income before income taxes 1,431 5.4% 10,196 15.1% Provision for income taxes 0.0% 0.0% - - --------- ------ ------- ------ Net income $ 1,431 5.4% $ 10,196 15.1% ========= ====== ======== ====== Basic earnings per share $ 0.03 $ 0.21 ========= ======== Diluted earnings per share $ 0.03 $ 0.21 ========= ======== Weighted average shares - basic 49,289 48,883 ========= ======== Weighted average shares - diluted 50,082 48,988 ========= ========
7 EX-99.2 3 0003.txt FINANCIAL & STATISTICAL SUPPLEMENT
FRIEDMAN, BILLINGS, RAMSEY GROUP, INC. Financial & Statistical Supplement - Operating Results (unaudited) (Dollars in thousands, except per share data) Q-4 00 Q-3 00 Q-2 00 Q-1 00 Q-4 99 Q-3 99 Q-2 99 ------ ------ ------ ------ ------ ------ ------ Revenues Investment Banking: Underwriting $ 4,447 $ 4,928 $ 1,205 $ 10,506 $ 6,200 $ 4,026 $ 9,245 Corporate finance 9,209 7,264 8,741 6,190 11,820 2,024 5,820 Investment gains - 1,453 - - 1,690 15 2,148 Institutional Brokerage: Listed and agency 6,511 4,989 4,627 5,676 5,048 3,372 3,749 Principal (OTC) 5,792 7,019 12,788 6,001 4,472 4,721 6,804 Asset management: Base management fees 2,835 2,504 2,206 2,174 2,379 2,714 2,052 Incentive allocations (7,747) 7,751 7,849 36,603 35,298 62 470 Net investment income 3,026 5,780 3,768 (2,900) (1,870) (10,572) 6,985 Interest, dividends and other 2,336 3,014 2,352 1,993 2,559 2,560 3,106 -------- -------- -------- -------- -------- -------- -------- Total revenues 26,409 44,702 43,536 66,243 67,596 8,922 40,379 -------- -------- -------- -------- -------- -------- -------- Expenses Compensation and benefits 13,527 24,809 25,209 46,223 45,759 16,318 22,109 Business development 3,515 4,755 3,261 3,057 3,780 8,002 4,590 Professional services 732 1,219 1,130 1,560 1,638 1,660 1,318 Interest 700 424 319 222 163 159 494 Brokerage and clearing 1,618 1,483 1,539 1,567 1,386 1,098 1,195 Communications 1,337 1,300 1,267 1,181 1,240 1,246 913 Occupancy & equipment 2,191 2,657 2,373 2,323 1,952 1,738 1,422 Other 1,358 1,862 2,373 1,554 1,482 1,762 2,489 -------- -------- -------- -------- -------- -------- -------- Total expenses 24,978 38,509 37,471 57,687 57,400 31,983 34,530 -------- -------- -------- -------- -------- -------- -------- Net income before taxes 1,431 6,193 6,065 8,556 10,196 (23,061) 5,849 -------- -------- -------- -------- -------- -------- -------- Provision for income taxes (1,239) (785) (2,139) Net income after taxes $ 1,431 $ 4,954 $ 5,280 $ 6,417 $ 10,196 $(23,061) $ 5,849 ======== ======== ======== ======== ======== ======== ======== Statistical Data: - ----------------- Basic & diluted EPS (actual) $ 0.03 $ 0.10 $ 0.11 $ 0.13 $ 0.21 $ (0.47) $ 0.12 EPS (pro-forma) (1) $ - $ - $ - $ - $ - $ - $ - Book value per share $ 4.34 $ 4.30 $ 4.14 $ 4.03 $ 3.86 $ 3.50 $ 3.84 Shares outstanding (in thousands) 49,380 49,282 49,204 49,096 48,961 48,882 48,882 Compensation and benefits as a % revenue 51.2% 55.5% 57.9% 69.8% 67.7% 182.9% 54.8% Net income before taxes as a % revenue 5.4% 13.9% 13.9% 12.9% 15.1% -258.5% 14.5% ROE (annualized) 2.7% 9.5% 10.5% 13.3% 22.7% -51.4% 12.8% Total shareholders' equity $214,556 $211,794 $203,637 $198,063 $188,969 $170,922 $187,852 Assets Under Management ("AUM") (amounts in millions) Managed accounts $ 133.6 $ 136.9 $ 131.9 $ 114.6 $ 180.2 $ 200.5 $ 212.5 Hedge & offshore funds 149.7 135.1 114.3 98.8 151.6 177.1 212.4 Mutual Funds 119.0 93.1 56.4 54.7 66.1 78.1 91.6 Private equity & venture capital 457.2 757.5 697.4 661.7 480.9 329.6 295.7 -------- -------- -------- -------- -------- -------- -------- Total AUM $ 859.5 $1,122.6 $1,000.0 $ 929.8 $ 878.8 $ 785.3 $ 812.2 ======== ======== ======== ======== ======== ======== ======== Employees 386 367 392 390 390 390 350 ======== ======== ======== ======== ======== ======== ======== Q-1 99 Q-4 98 Q-3 98 Q-2 98 Q-1 98 ------ ------ ------ ------ ------ Revenues Investment Banking: Underwriting $ 3,171 $ 2,728 $ 4,040 $ 16,313 $ 47,710 Corporate finance 2,877 3,663 4,417 29,615 3,661 Investment gains - - - - - Institutional Brokerage: Listed and agency 2,819 3,402 3,862 4,336 3,708 Principal (OTC) 6,061 1,295 (31,923) (677) 3,113 Asset management: Base management fees 2,264 2,110 2,105 1,810 1,531 Incentive allocations 73 1,693 14 496 1,638 Net investment income 2,261 775 (7,480) (242) 3,004 Interest, dividends and other 2,543 3,393 3,456 5,683 3,619 -------- -------- -------- -------- -------- Total revenues 22,069 19,059 (21,509) 57,334 67,984 -------- -------- -------- -------- -------- Expenses Compensation and benefits 14,238 14,487 10,870 28,899 28,343 Business development 2,253 2,183 6,212 5,276 4,274 Professional services 341 1,827 4,026 2,983 2,532 Interest 507 247 1,553 1,468 1,659 Brokerage and clearing 1,014 482 1,603 1,649 1,343 Communications 924 1,055 834 877 826 Occupancy & equipment 1,562 1,279 1,284 900 764 Other 1,185 1,308 2,838 2,689 2,507 -------- -------- -------- -------- -------- Total expenses 22,024 22,868 29,220 44,741 42,248 -------- -------- -------- -------- -------- Net income before taxes 45 (3,809) (50,729) 12,593 25,736 -------- -------- -------- -------- -------- Provision for income taxes 15,317 (5,160) (10,157) Net income after taxes $ 45 $ (3,809) $(35,412) $ 7,433 $ 15,579 ======== ======== ======== ======== ======== Statistical Data: - ----------------- Basic & diluted EPS (actual) $ - $ (0.08) $ (0.71) $ 0.15 $ 0.31 EPS (pro-forma) (1) $ - $ - $ - $ - $ - Book value per share $ 3.63 $ 3.81 $ 3.91 $ 4.99 $ 4.84 Shares outstanding (in thousands) 48,733 49,119 49,496 50,029 50,029 Compensation and benefits as a % revenue 64.5% 76.0% -50.5% 50.4% 41.7% Net income before taxes as a % revenue 0.2% -20.0% -235.9% 22.0% 37.9% ROE (annualized) 0.1% -8.0% -63.9% 12.1% 26.6% Total shareholders' equity $176,876 $186,902 $193,433 $249,659 $242,225 Assets Under Management ("AUM") (amounts in millions) Managed accounts $ 229.4 $ 224.4 $ 226.7 $ 258.1 $ 277.2 Hedge & offshore funds 194.7 189.6 213.2 282.4 257.7 Mutual Funds 95.9 118.6 125.0 177.4 179.6 Private equity & venture capital 152.9 156.2 158.6 147.1 139.7 -------- -------- -------- -------- -------- Total AUM $ 672.9 $ 688.8 $ 723.5 $ 865.0 $ 854.2 ======== ======== ======== ======== ======== Employees 349 358 390 350 301 ======== ======== ======== ======== ======== Q-4 97 Q-3 97 Q-2 97 Q-1 97 ------ ------ ------ ------ Revenues Investment Banking: Underwriting $ 75,414 $24,489 $29,424 $13,179 Corporate finance 22,032 29,065 769 8,783 Investment gains - - - - Institutional Brokerage: Listed and agency 4,497 3,355 1,740 2,803 Principal (OTC) 4,652 6,520 2,914 2,560 Asset management: Base management fees 1,266 758 610 522 Incentive allocations 11,318 539 462 291 Net investment income 154 2,139 805 130 Interest, dividends and other 1,884 1,368 917 776 -------- ------- ------- ------- Total revenues 121,217 68,233 37,641 29,044 -------- ------- ------- ------- Expenses Compensation and benefits 71,819 40,595 24,848 19,695 Business development 5,321 3,095 2,823 2,100 Professional services 3,690 2,546 1,546 1,285 Interest 1,469 571 1,006 724 Brokerage and clearing 1,823 1,224 897 1,017 Communications 790 540 559 436 Occupancy & equipment 704 747 679 508 Other 2,294 1,367 1,263 1,017 -------- ------- ------- ------- Total expenses 87,910 50,685 33,621 26,782 -------- ------- ------- ------- Net income before taxes 33,307 17,548 4,020 2,262 -------- ------- ------- ------- Provision for income taxes (13,323) (7,019) (1,608) (905) Net income after taxes $ 19,984 $10,529 $ 2,412 $ 1,357 ======== ======= ======= ======= Statistical Data: - ----------------- Basic & diluted EPS (actual) $ 0.87 $ 0.44 $ 0.10 $ 0.06 EPS (pro-forma) (1) $ 0.49 $ 0.26 $ 0.06 $ 0.03 Book value per share $ 4.53 $ 1.45 $ 1.14 $ 1.21 Shares outstanding (in thousands) 50,029 40,029 40,029 40,029 Compensation and benefits as a % revenue 59.2% 59.5% 66.0% 67.8% Net income before taxes as a % revenue 27.5% 25.7% 10.7% 7.8% ROE (annualized) 56.1% 81.3% 20.6% 11.1% Total shareholders' equity $226,646 $58,118 $45,467 $48,364 Assets Under Management ("AUM") (amounts in millions) Managed accounts $ 245.6 $ 56.5 $ 51.0 $ 50.0 Hedge & offshore funds 221.1 250.0 194.0 160.8 Mutual Funds 115.3 55.1 30.1 10.4 Private equity & venture capital 59.6 52.5 10.6 6.7 -------- ------- ------- ------- Total AUM $ 641.6 $ 414.1 $ 285.7 $ 227.9 ======== ======= ======= ======= Employees 265 230 213 213 ======== ======= ======= =======
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