-----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, Rjy1LFhgAm3bVuxjdbcN5cdQtrTadGiGe/ZeajJuQKMT4L7a55+TUboTWAakZNwH 2W4w0+vExSEQERLttKHrNw== 0001021408-01-503915.txt : 20010727 0001021408-01-503915.hdr.sgml : 20010727 ACCESSION NUMBER: 0001021408-01-503915 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20010726 ITEM INFORMATION: FILED AS OF DATE: 20010726 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: 1689372 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 d8k.txt CURRENT REPORT 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): July 26, 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 July 26, 2001, Friedman, Billings, Ramsey Group, Inc. issued a press release announcing its earnings for the 2nd quarter 2001 . 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 2nd quarter 2001. 99.1 Press Release dated July 26, 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 2 dex991.txt PRESS RELEASE Exhibit 99.1 [LOGO] FBR For Immediate Release - --------------------- Media Contact: Michael W. Robinson 703.312.1830 or mrobinson@fbr.com ----------------- Investor Contact: Kurt R. Harrington 703.312.9647 or kharrington@fbr.com ------------------- Friedman, Billings, Ramsey Group Reports Second Quarter 2001 Results Net Income of $5.1 Million or $0.10 Per Share Reported ARLINGTON, Va., July 26, 2001 - Friedman, Billings, Ramsey Group, Inc. (NYSE: FBR) today reported net income of $5.1 million, or $0.10 (diluted) per share, for the quarter ended June 30, 2001, versus net income of $5.3 million, or $0.11 (diluted) per share, for the same quarter last year. Revenues were $55.2 million for the second quarter, compared with $43.5 million for the same quarter a year ago. "FBR's core operating business has continued to strengthen throughout the first half of the year," Vice Chairman and Co-Chief Executive Officer Eric F. Billings said. "The full magnitude of this improvement is obscured by the $44.5 million in incentive allocation revenue (carried interest), primarily from our technology venture capital portfolio, that we recorded during the first six months of last year. Excluding such unusual gains, our results for the quarter just ended and for the first six months of the year were significantly higher than the year-ago periods." For the first six months of the year, FBR reported a loss of $(0.02) (diluted) per share on revenues of $77.6 million, versus earnings of $0.23 (diluted) per share on revenues of $109.8 million for the same period in 2000. In its capital markets business, FBR reported investment banking revenue for the quarter of $32.8 million, up from $9.9 million in the second quarter of 2000. The Company reported quarterly institutional brokerage revenue of $11.3 million, essentially flat versus the second quarter of 2000, net of more than $6.0 million in proprietary trading gains (the Company reported $17.4 million in institutional brokerage revenue in the second quarter of 2000). In its asset management business, the Company reported fee revenue of $5.5 million for the quarter, reflecting the organic growth in several of FBR's existing asset management vehicles, as well as the addition of managed assets from the acquisition of Money Management Associates LP (MMA) and the addition of mutual fund administration fee revenue from the acquisition of Rushmore Bank & Trust. Base fees were $5.2 million in the second quarter of 2001 versus $2.2 million in the second quarter of 2000. "During the second quarter we continued to add recurring revenues in our asset management business," Chairman and Co-Chief Executive Officer Emanuel J. Friedman said. "In the quarter, we finalized our acquisition of MMA/Rushmore, closed on new alternative asset management products, and saw the assets in several existing vehicles increase." Mr. Friedman added that at the end of the quarter, FBR's mutual fund and money market fund assets under management stood at $1.15 billion, which includes $870 million in assets from MMA, as well as a 133 percent increase in the assets of FBR's family of existing mutual funds since the beginning of the year. Following the MMA acquisition, FBR now has three equity mutual funds and six money market, index, and fixed income funds and total assets under management of more than $1.8 billion. In addition to asset management fees, the MMA/Rushmore acquisition also provided FBR with other sources of recurring revenues through Rushmore's banking platform and mutual fund processing services. During the quarter, the total revenue from the acquired businesses (base asset management fees, spread income, and mutual fund processing services) was $2.6 million. During the quarter, the Company also announced it had opened an office in Cleveland staffed by seven investment banking professionals focused on financial institutions and diversified industries in the Midwest, as well as adding institutional brokers and research analysts in London and New York. Mr. Billings added: "We've been able to attract very talented people across our research, sales, and investment banking platforms during the last several months. While we continue to actively recruit institutional and high net worth sales personnel, we are nearing completion of the hiring plan we announced at the beginning of this year." "Indeed, the on-going rotation of capital into the financial institutions and real estate sectors - key areas of expertise for us - combined with a competitive landscape that offers opportunities for a company like ours, helped us execute more than $1 billion in transactions for our investment banking clients through the first six months of the year." FBR had 46.1 million common shares outstanding, shareholders' equity of $200.3 million, and book value per share of $4.35 as of June 30, 2001, including the effect of the employee stock purchase and loan program that was announced on June 27, 2001. Total assets as of June 30, 2001, were $299.3 million. Investors who want to listen to the Company's 9 a.m. (Eastern Time) conference call may do so via the web at: http://dmg.activate.com/dmgi.dll?1548&ikzw. ------------------------------------------ Replays of the webcast will be available afterward. Friedman, Billings, Ramsey Group, Inc. (NYSE: FBR) is a financial holding company for businesses that provide investment banking, institutional brokerage, specialized asset management, and banking products and services. FBR provides capital and financial expertise throughout a company's lifecycle and affords investors access to a range of proprietary financial products and services. Headquartered in the Washington metropolitan area, FBR has offices in Arlington and Reston, Va., Atlanta, Bethesda, Md., Boston, Charlotte, Chicago, Cleveland, Dallas, Irvine, Ca., New York City, Portland, Seattle, London, and Vienna. Bank products and services are offered by FBR National 2 Bank & Trust, member FDIC and an Equal Housing Lender. For more information, see www.fbr.com. # # # Statements concerning future performance, developments, 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 and advisory services, 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. 3 FRIEDMAN, BILLINGS, RAMSEY GROUP, INC. [LOGO] CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FBR (Dollars in thousands, except per share amounts) (Unaudited)
Three months ended June 30, 2001 % 2000 % -------------- ------------- ------------- ------------ REVENUES: Investment banking $ 32,811 59.5% $ 9,946 22.8% Institutional brokerage 11,345 20.6% 17,415 40.0% Asset management 8,990 16.3% 13,823 31.8% Interest, dividends and other 2,006 3.6% 2,352 5.4% -------------- ------------- ------------- ------------ Total revenues 55,152 100.0% 43,536 100.0% -------------- ------------- ------------- ------------ EXPENSES: Compensation and benefits 32,756 59.4% 25,209 57.9% Business development and professional services 8,205 14.9% 4,391 10.1% Interest 334 0.6% 319 0.7% Other 8,747 15.8% 7,552 17.4% -------------- ------------- ------------- ------------ Total expenses 50,042 90.7% 37,471 86.1% -------------- ------------- ------------- ------------ Net income before income taxes 5,110 9.3% 6,065 13.9% Provision for income taxes - 0.0% 785 1.8% -------------- ------------- ------------- ------------ Net income $ 5,110 9.3% $ 5,280 12.1% ============== ============= ============= ============ Basic earnings per share $ 0.10 $ 0.11 ============== ============= Diluted earnings per share $ 0.10 $ 0.11 ============== ============= Weighted average shares - basic 49,209 49,106 ============== ============= Weighted average shares - diluted 49,230 50,065 ============== =============
4 FRIEDMAN, BILLINGS, RAMSEY GROUP, INC. [LOGO] CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FBR (Dollars in thousands, except per share amounts) (Unaudited)
Six months ended June 30, 2001 % 2000 % --------------- --------------- -------------- -------------- REVENUES: Investment banking $ 42,709 55.0% $ 26,642 24.3% Institutional brokerage 23,882 30.8% 29,092 26.5% Asset management 6,768 8.7% 49,700 45.3% Interest, dividends and other 4,246 5.5% 4,345 3.9% --------------- --------------- -------------- -------------- Total revenues 77,605 100.0% 109,779 100.0% --------------- --------------- -------------- -------------- EXPENSES: Compensation and benefits 49,007 63.2% 71,432 65.1% Business development and professional services 13,531 17.4% 9,008 8.2% Interest 415 0.5% 541 0.5% Other 15,681 20.2% 14,177 12.9% --------------- --------------- -------------- -------------- Total expenses 78,634 101.3% 95,158 86.7% --------------- --------------- -------------- -------------- Net (loss) income before income taxes (1,029) -1.3% 14,621 13.3% Provision for income taxes - 0.0% 2,924 2.6% --------------- --------------- -------------- -------------- Net (loss) income $ (1,029) -1.3% $ 11,697 10.7% =============== =============== ============== ============== Basic (loss) earnings per share $ (0.02) $ 0.24 =============== ============== Diluted (loss) earnings per share $ (0.02) $ 0.23 =============== ============== Weighted average shares - basic 49,298 49,064 =============== ============== Weighted average shares - diluted 49,298 50,996 =============== ==============
5 EX-99.2 3 dex992.txt FINANCIAL SUPPLEMENT EXHIBIT 99.2 [LOGO] FRIEDMAN, BILLINGS, RAMSEY GROUP, INC. FBR Financial & Statistical Supplement -Operating Results (unaudited) (Dollars in thousands, except per share data)
YTD 2001 Q-2 01 Q-1 01 YTD 2000 --------- --------- --------- --------- Revenues - -------- Investment banking: Underwriting $ 17,068 $ 9,414 $ 7,654 $ 21,086 Corporate finance 20,301 18,057 2,244 31,404 Investment gains 5,340 5,340 - 1,453 Institutional brokerage: Principal transactions 11,355 5,383 5,972 32,319 Agency commissions 12,527 5,962 6,565 21,084 Asset management: Base management fees 8,098 5,191 2,907 9,719 Incentive income (2,743) 301 (3,044) 44,456 Net investment income (loss) 1,413 3,498 (2,085) 9,674 Interest, dividends and other 4,246 2,006 2,240 9,695 --------- --------- --------- --------- Total revenues 77,605 55,152 22,453 180,890 --------- --------- --------- --------- Expenses - -------- Compensation and benefits 49,007 32,756 16,251 109,768 Business development & professional services 13,531 8,205 5,326 19,229 Clearing and brokerage fees 3,320 1,588 1,732 6,207 Occupancy & equipment 5,383 2,883 2,500 9,544 Communications 2,665 1,498 1,167 5,085 Interest expense 415 334 81 1,665 Other operating expenses 4,313 2,778 1,535 7,147 --------- --------- --------- --------- Total expenses 78,634 50,042 28,592 158,645 --------- --------- --------- --------- Net income (loss) before taxes (1,029) 5,110 (6,139) 22,245 --------- --------- --------- --------- Provision for income taxes - - - 4,163 Net income (loss) $ (1,029) $ 5,110 $ (6,139) $ 18,082 ========= ========= ========= ========= Net income (loss) before taxes as a percentage of revenue -1.3% 9.3% -27.3% 12.3% ROE (annualized) 9.9% 9.9% -11.5% 9.0% Total shareholders' equity $ 200,314 $ 200,314 $ 211,001 $ 214,556 Basic earnings (loss) per share $ (0.02) $ 0.10 $ (0.12) $ 0.37 Diluted earnings (loss) per share $ (0.02) $ 0.10 $ (0.12) $ 0.36 Ending shares outstanding (in thousands) 46,100 46,100 49,391 49,380 Book value per share $ 4.35 $ 4.35 $ 4.27 $ 4.34 Assets under management (in millions) - ------------------------------------- Managed accounts $ 142.4 $ 142.4 $ 126.1 $ 133.6 Hedge & offshore funds 186.6 186.6 164.7 149.7 Mutual funds 1,153.1 1,153.1 148.5 119.0 Private equity & venture capital 341.2 341.2 336.2 457.2 --------- --------- --------- --------- Total $ 1,823.3 $ 1,823.3 $ 775.5 $ 859.5 ========= ========= ========= ========= Employee count 488 488 400 386 ========= ========= ========= ========= Q-4 00 Q-3 00 Q-2 00 Q-1 00 --------- --------- --------- --------- Revenues - -------- Investment banking: Underwriting $ 4,447 $ 4,928 $ 1,205 $ 10,506 Corporate finance 9,209 7,264 8,741 6,190 Investment gains - 1,453 - - Institutional brokerage: Principal transactions 6,511 7,019 12,788 6,001 Agency commissions 5,792 4,989 4,627 5,676 Asset management: Base management fees 2,835 2,504 2,206 2,174 Incentive income (7,747) 7,751 7,849 36,603 Net investment income (loss) 3,026 5,780 3,768 (2,900) Interest, dividends and other 2,336 3,014 2,352 1,993 EXHIBIT 99.2 (Page 2) --------- --------- --------- --------- Total revenues 26,409 44,702 43,536 66,243 --------- --------- --------- ---------
EXHIBIT 99.2 (Page 3) Expenses - -------- Compensation and benefits 13,527 24,809 25,209 46,223 Business development & professional services 4,247 5,974 4,391 4,617 Clearing and brokerage fees 1,618 1,483 1,539 1,567 Occupancy & equipment 2,191 2,657 2,373 2,323 Communications 1,337 1,300 1,267 1,181 Interest expense 700 424 319 222 Other operating expenses 1,358 1,862 2,373 1,554 --------- --------- --------- --------- Total expenses 24,978 38,509 37,471 57,687 --------- --------- --------- --------- Net income (loss) before taxes 1,431 6,193 6,065 8,556 --------- --------- --------- --------- Provision for income taxes - 1,239 785 2,139 Net income (loss) $ 1,431 $ 4,954 $ 5,280 $ 6,417 ========= ========= ========= ========= Net income (loss) before taxes as a percentage of revenue 5.4% 13.9% 13.9% 12.9% ROE (annualized) 2.7% 9.5% 10.5% 13.3% Total shareholders' equity $ 214,556 $ 211,796 $ 203,637 $ 198,063 Basic earnings (loss) per share $ 0.03 $ 0.10 $ 0.11 $ 0.13 Diluted earnings (loss) per share $ 0.03 $ 0.10 $ 0.11 $ 0.12 Ending shares outstanding (in thousands) 49,380 49,282 49,204 49,096 Book value per share $ 4.34 $ 4.30 $ 4.14 $ 4.03 Assets under management (in millions) - ------------------------------------- Managed accounts $ 133.6 $ 136.9 $ 131.9 $ 114.6 Hedge & offshore funds 149.7 135.1 114.3 98.8 Mutual funds 119.0 93.1 56.4 54.7 Private equity & venture capital 457.2 757.5 697.4 661.7 --------- --------- --------- --------- Total $ 859.5 $ 1,122.6 $ 1,000.0 $ 929.8 ========= ========= ========= ========= Employee count 386 367 392 390 ========= ========= ========= =========
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