Press Release

EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

Contacts:

Media:

Bill Dixon at 703-469-1092 or bdixon@fbr.com

Lauren Burk at 703-469-1004 or lburk@fbr.com

Investors:

Kurt Harrington at 703-312-9647 or kharrington@fbr.com

FBR Announces Financial Results

for the Second Quarter of 2005

After-Tax Net Earnings of $53.2 Million, Diluted Earnings per Share of $0.31

ARLINGTON, Va., July 27, 2005 – Friedman, Billings, Ramsey Group, Inc. (NYSE: FBR) today announced net income after tax for the quarter ended June 30, 2005 of $53.2 million, or $0.31 per share (diluted), compared to $81.2 million, or $0.48 per share (diluted), for the second quarter of 2004. Net revenue for the quarter was $207.2 million, up 16% from net revenue of $178.4 million in the second quarter of 2004.

On June 9, 2005, FBR declared a quarterly regular dividend of $0.34 per share for the second quarter of 2005, which will be paid on July 29, 2005 to shareholders of record on June 30, 2005.

The company’s net after-tax earnings for the first six months of 2005 were $77.7 million, or $0.46 per share (diluted), compared to $170.8 million, or $1.01 per share (diluted), for the first half of 2004. Net revenue for the first two quarters of 2005 was $370.2 million, compared to $399.2 million for the first six months of 2004. Book value per share as of June 30, 2005 was $8.96, and book value per share net of Accumulated Other Comprehensive Income (AOCI) was $9.62.¹

“These second quarter results demonstrate the benefits of the diversified and complementary business model created by our merger, which married the growth engine of our capital markets franchise to the strength and resiliency of our balance sheet business,” said Eric F. Billings, Chairman and Chief Executive Officer of FBR. “Our ability to generate returns on equity for shareholders of 14%, despite the headwinds of a rising rate environment and an industry-wide slowdown in brokerage and banking activity, is the reason we are excited about our business. Our confidence in our model is solidly rooted in the growing equity capital markets share we are achieving, the increasing market recognition of the unique capabilities of this franchise, and the success of the execution of our mortgage strategy and merchant investing.”

Equity Capital Markets

•

Investment banking revenue for the quarter was $101.2 million, an increase of 63% over the second quarter of last year. Revenue for the first six months of 2005 was $189.2 million, an increase of more than 24% over the first half of 2004.

•

Revenue from institutional brokerage during the quarter declined 12% on a year-to-year basis, from $26.5 million in the second quarter of 2004 to $23.4 million in the second quarter of 2005, continuing to reflect reduced volumes across the industry.

•

For the first half of 2005, brokerage revenue totaled $51.1 million, a decrease of 17% from the $61.6 million generated in the first six months of 2004.

•

For the second quarter and first half of the year, FBR was ranked as the number one (#1) book-running manager of common equity capital raises for U.S. companies with a market capitalization of $2 billion or less.²

•

In the second quarter, FBR completed 39 transactions with an aggregate value of $10.9 billion, including:

•

Five initial public offerings with a combined value of $2.8 billion

•

Six asset-backed securities (ABS) transactions with a total value of $4.1 billion

•

Four private equity placements with a value of $1.1 billion.

•

In the first half of this year, FBR’s ABS banking group completed eleven transactions and produced revenue that more than doubled from the first to the second quarters.

•

For the first six months of 2005, the real estate banking group maintained its leadership position in its sector, ranking as the number one (#1) book-running manager for U.S. real estate equity capital raises.³

•

In the first half of this year, FBR’s energy banking team ranked as the number two (#2) book-running manager for domestic oil and gas equity capital raises.³

“This growth in our business and the headway we have made in diversifying the franchise have coincided with significant reductions in equity capital markets volumes across our industry, leading to appreciable gains in market share for FBR,” said J. Rock Tonkel, President and Head of Investment Banking. “As more and more businesses requiring capital and advice become aware of our accomplishments and expertise, we have every expectation that successes like the breakout performance of our energy business in the second quarter will continue across all of our industry groups.”

Principal Investment and Mortgage Banking

FBR’s principal investing and mortgage banking revenue, net of total interest expense and the provision for loan losses, was $70.6 million during the second quarter of 2005, compared to $83.4 million during the second quarter of 2004 and $36.6 million for the first quarter of 2005.

As of June 30, 2005, FBR’s mortgage portfolio totaled $13.7 billion.

“The second quarter included the eighth and ninth increases in the Federal Funds rate since June of 2004. Over that time, short-term interest rates have increased from 1% to 3.25%, resulting in an increasingly flat yield curve. This has led to spread compression for virtually all portfolio lenders. Despite this adverse environment, our mortgage portfolio achieved an annualized return on equity of 12% for the quarter, compared to 14% in the first quarter and 19% in the second quarter of 2004,” said Richard J. Hendrix, President and Chief Operating Officer. “The strategic decision to grow and diversify our mortgage business that we made in 2004 is proceeding as planned, and should continue to benefit shareholders. We expect returns from our mortgage portfolio to trend higher over the course of the next several quarters.”

•

During the second quarter of 2005, FBR’s mortgage portfolio had a weighted average annual yield of 3.98%, and the weighted average financing rate was 3.07% (including the benefit of hedging), resulting in a net interest spread of 0.91% for the quarter. This compares to a net interest spread of 1.02% for the portfolio in the first quarter.

•

Quarter-end leverage (debt-to-equity) in the mortgage portfolio was 12.9, compared to 12.3 on March 31, 2005.

•

Amortization of mortgage premiums during the second quarter of 2005 was $18.5 million, compared to $14.6 million for the first quarter of 2005. One month constant prepayment rates (CPRs) in the mortgage portfolio moved higher in the second quarter, averaging 25.15, compared to 21.8 in the first quarter.

•

On June 30, 2005, the mortgage portfolio continued to maintain a low effective duration (a measure of interest rate sensitivity) of 1.12, compared to 1.27 as of March 31, 2005.

The total value of FBR’s merchant banking portfolio and other long-term investments was $433.2 million as of June 30, 2005. Of this total, $351.4 million was held in the merchant banking equity portfolio, $59.4 million was held in alternative asset funds, and $22.4 million was held in other long-term investments.

•

During the second quarter of 2005, FBR recorded $8.4 million of dividend income.

•

FBR realized $14.8 million in merchant banking gains during the quarter, primarily due to the sale of the companies in its portfolio.

•

The merchant banking equities portfolio had net unrealized gains of $11.1 million as of June 30, 2005 that are included in accumulated other comprehensive income, compared to a net unrealized loss of $5.4 million as of March 31, 2005.

Having completed the acquisition of mortgage originator First NLC in February of this year, this quarter marks the first time FNLC’s financial results have been fully consolidated into FBR’s operational performance. The second quarter was a record period for FNLC, with the company originating mortgages with an aggregate value of $1.5 billion, an increase of 79% over its second quarter last year. During this quarter, FNLC’s contribution to revenue, including gain-on-sale of mortgage loans and net interest income on loans held for sale, was $21.7 million.

Asset Management

•

Base and incentive fees were $8.5 million for the quarter and $16.6 million for the first six months of 2005, increases of 72.9% and 17.7%, respectively, over the comparable periods of 2004.

•

Total funds under management were $3.2 billion as of June 30, 2005, compared to $3.1 billion on March 31, 2005.

•

Mutual fund assets totaled $2.2 billion at the end of the second quarter, substantively unchanged from the first quarter of 2005 and an increase of 38% over the $1.6 billion held at the close of the second quarter of 2004.

“Overall, the firm’s results demonstrate an ongoing track record of growth in our capital markets business and we continue to generate exceptional returns on equity in this part of our business,” Mr. Billings said. “As we look forward, we remain committed to achieving outstanding investment returns for our clients and our shareholders and are excited about the opportunities we see in each of our portfolio businesses.”

The firm will host an earnings conference call tomorrow morning, Thursday, July 28, 2005, at 9:00 a.m. U.S. EDT. Investors wishing to listen to the conference call may do so via the web at: http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=FBR.

Replays of the webcast will be available after the call.

Friedman, Billings, Ramsey Group, Inc. provides investment banking⁴, institutional brokerage⁴, asset management, and private client services through its operating subsidiaries and invests in mortgage-related assets and merchant banking opportunities. FBR focuses capital and financial expertise on eight industry sectors: consumer, diversified industrials, energy and natural resources, financial institutions, 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 Boston, Cleveland, Dallas, Denver, Houston, Irvine, London, New York, Phoenix, San Francisco, Seattle, and Vienna. For more information, visit http://www.fbr.com.

Accumulated Other Comprehensive Income (AOCI) includes changes in value of available-for-sale securities and cash flow hedges. We believe that such changes represent temporary market fluctuations, are not reflective of our market strategy, and therefore, exclusion of AOCI provides a reasonable basis for calculating returns.

Source: Dealogic. Relates to total dollar amount, with over-allotment, of all U.S. IPOs, secondary offerings and private placements for issuers valued at $2 billion or less; priced between 4/1/05 and 6/30/05 and 1/1/05 and 6/30/05, respectively, with apportioned credit to all book-runners. Excludes closed-end funds.

Source: Dealogic. Relates to total dollar amount, with over-allotment, of all U.S. IPOs, secondary offerings and private placements for issuers in the real estate and oil and gas general industry groups, respectively; priced between 1/1/05 and 6/30/05, with apportioned credit to all book-runners. Excludes closed-end funds.

⁴	Friedman, Billings, Ramsey & Co., Inc.

Financial data follows.

FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share amounts)

(Unaudited)


	Three months ended June 30,
	2005		%		2004			%
REVENUES:
Investment banking:
Capital raising	$	95,039	45.9	%	$	52,883		29.6	%
Advisory		6,180	3.0	%		9,107		5.1	%
Institutional brokerage:
Principal transactions		4,680	2.3	%		5,426		3.0	%
Agency commissions		18,677	9.0	%		21,060		11.8	%
Asset management:
Base management fees		7,813	3.8	%		6,384		3.6	%
Incentive allocations and fees		730	0.4	%		(1,444	)	-0.8	%
Principal investment:
Interest		116,724	56.3	%		87,111		48.8	%
Net investment income		17,738	8.6	%		28,832		16.2	%
Dividends		8,371	4.0	%		1,683		0.9	%
Mortgage banking:
Interest		18,118	8.7	%		—		0.0	%
Gain on sale of loans, net		14,559	7.0	%		—		0.0	%
Other		3,455	1.6	%		1,683		1.0	%
Total revenues		312,084	150.6	%		212,725		119.2	%
Interest expense		103,725	50.1	%		34,276		19.2	%
Provision for loan losses		1,138	0.5	%		—		0.0	%
Revenues, net of interest expense and provision for loan losses		207,221	100.0	%		178,449		100.0	%

NON-INTEREST EXPENSES:
Compensation and benefits		80,015	38.6	%		57,698		32.3	%
Professional services		20,186	9.7	%		15,050		8.4	%
Business development		11,962	5.8	%		8,885		5.0	%
Clearing and brokerage fees		2,040	1.0	%		2,608		1.5	%
Occupancy and equipment		8,772	4.2	%		3,326		1.9	%
Communications		5,300	2.6	%		3,442		1.9	%
Other operating expenses		12,540	6.1	%		5,351		3.0	%
Total non-interest expenses		140,815	68.0	%		96,360		54.0	%

Net income before taxes		66,406	32.0	%		82,089		46.0	%

Income tax provision		13,163	6.3	%		910		0.5	%

Net Income	$	53,243	25.7	%	$	81,179		45.5	%

Basic earnings per share	$	0.31			$	0.49
Diluted earnings per share	$	0.31			$	0.48

Weighted average shares — basic		169,364				167,277
Weighted average shares — diluted		170,101				168,566

FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share amounts)

(Unaudited)


	Six months ended June 30,
	2005		%		2004		%
REVENUES:
Investment banking:
Capital raising	$	181,852	49.1	%	$	142,676	35.7	%
Advisory		7,318	2.0	%		10,425	2.6	%
Institutional brokerage:
Principal transactions		10,307	2.8	%		11,445	2.9	%
Agency commissions		40,834	11.0	%		50,197	12.6	%
Asset management:
Base management fees		16,281	4.4	%		12,919	3.2	%
Incentive allocations and fees		355	0.1	%		1,221	0.3	%
Principal investment:
Interest		215,620	58.2	%		176,106	44.1	%
Net investment income		13,880	3.7	%		55,441	13.9	%
Dividends		11,811	3.2	%		2,655	0.7	%
Mortgage banking:
Interest		27,610	7.5	%		—	0.0	%
Gain on sale of loans, net		18,040	4.9	%		—	0.0	%
Other		5,951	1.6	%		2,997	0.8	%
Total revenues		549,859	148.5	%		466,082	116.8	%
Interest expense		178,547	48.2	%		66,923	16.8	%
Provision for loan losses		1,138	0.3	%		—	0.0	%
Revenues, net of interest expense and provision for loan losses		370,174	100.0	%		399,159	100.0	%

NON-INTEREST EXPENSES:
Compensation and benefits		155,814	42.1	%		132,587	33.2	%
Professional services		33,836	9.2	%		25,214	6.3	%
Business development		27,400	7.4	%		25,423	6.4	%
Clearing and brokerage fees		4,072	1.1	%		5,381	1.3	%
Occupancy and equipment		14,496	3.9	%		6,230	1.6	%
Communications		9,332	2.5	%		6,384	1.6	%
Other operating expenses		28,834	7.8	%		11,322	2.8	%
Total non-interest expenses		273,784	74.0	%		212,541	53.2	%

Net income before taxes		96,390	26.0	%		186,618	46.8	%

Income tax provision		18,735	5.0	%		15,800	4.0	%

Net income	$	77,655	21.0	%	$	170,818	42.8	%

Basic earnings per share	$	0.46			$	1.02
Diluted earnings per share	$	0.46			$	1.01

Weighted average shares — basic		168,741				166,678
Weighted average shares — diluted		169,670				168,462

FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.

Financial & Statistical Supplement — Operating Results (unaudited)

(Dollars in thousands, except per share data)


	YTD 2005			Q-2 05			Q-1 05			YTD 2004
Revenues
Investment banking:
Capital raising	$	181,852		$	95,039		$	86,813		$	398,183
Advisory		7,318			6,180			1,138			30,115
Institutional brokerage:
Principal transactions		10,307			4,680			5,627			20,444
Agency commissions		40,834			18,677			22,157			89,650
Asset management:
Base management fees		16,281			7,813			8,468			28,307
Incentive income		355			730			(375	)		10,940
Principal investment:
Interest		215,620			116,724			98,896			350,691
Net investment income		13,880			17,738			(3,858	)		101,973
Dividends		11,811			8,371			3,440			14,644
Mortgage banking:
Interest		27,610			18,118			9,492			—
Gain on sale of loans, net		18,040			14,559			3,481			—
Other		5,951			3,455			2,496			7,155
Total revenues		549,859			312,084			237,775			1,052,102
Interest expense		178,547			103,725			74,822			164,156
Provision for loan losses		1,138			1,138			—			—
Revenues, net of interest expense and provision for loan losses		370,174			207,221			162,953			887,946

Non-interest expenses
Compensation and benefits		155,814			80,015			75,799			323,524
Professional services		33,836			20,186			13,650			50,467
Business development		27,400			11,962			15,438			44,955
Clearing and brokerage fees		4,072			2,040			2,032			9,123
Occupancy & equipment		14,496			8,772			5,724			14,458
Communications		9,332			5,300			4,032			13,959
Other operating expenses		28,834			12,540			16,294			22,740
Total non-interest expenses		273,784			140,815			132,969			479,226

Net income before taxes		96,390			66,406			29,984			408,720

Income tax provision		18,735			13,163			5,572			59,161

Net income	$	77,655		$	53,243		$	24,412		$	349,559
Net income before taxes as a percentage of net revenue		26.0	%		32.0	%		18.4	%		46.0	%

ROE (annualized)		10.0	%		14.3	%		6.4	%		22.3	%

Total shareholders’ equity	$	1,519,021		$	1,519,021		$	1,458,861		$	1,578,524

Basic earnings per share	$	0.46		$	0.31		$	0.15		$	2.09
Diluted earnings per share	$	0.46		$	0.31		$	0.14		$	2.07

Ending shares outstanding (in thousands)		169,617			169,617			169,214			166,932

Book value per share	$	8.96		$	8.96		$	8.62		$	9.46
Book value per share, net of AOCI(1)	$	9.62		$	9.62		$	9.63		$	9.68

Gross assets under management (in millions)
Managed accounts	$	510.4		$	510.4		$	242.4		$	196.1
Hedge & offshore funds	$	463.1			463.1			601.1			631.6
Mutual funds	$	2,185.0			2,185.0			2,213.9			2,320.4
Private equity and venture capital funds	$	41.3			41.3			69.5			52.5
Total	$	3,199.8		$	3,199.8		$	3,126.9		$	3,200.6

Net assets under management (in millions)
Managed accounts	$	257.3		$	257.3		$	223.0		$	196.1
Hedge & offshore funds	$	401.1			401.1			490.3			589.6
Mutual funds	$	2,176.6			2,176.6			2,204.2			2,305.5
Private equity and venture capital funds	$	37.8			37.8			66.3			49.7
Total	$	2,872.8		$	2,872.8		$	2,983.8		$	3,140.9

Productive assets under management (in millions)
Managed accounts	$	257.3		$	257.3		$	223.0		$	196.1
Hedge & offshore funds	$	332.8			332.8			425.3			488.7
Mutual funds	$	2,176.6			2,176.6			2,204.2			2,305.5
Private equity and venture capital funds	$	51.2			51.2			79.9			70.9
Total	$	2,817.9		$	2,817.9		$	2,932.4		$	3,061.2

Employee count		2,226			2,226			2,123			698

	Q-4 04			Q-3 04			Q-2 04			Q-1 04
Revenues
Investment banking:
Capital raising	$	125,488		$	130,019		$	52,883		$	89,793
Advisory		8,088			11,602			9,107			1,318
Institutional brokerage:
Principal transactions		4,758			4,241			5,426			6,019
Agency commissions		20,948			18,505			21,060			29,137
Asset management:
Base management fees		8,344			7,044			6,384			6,535
Incentive income		7,982			1,737			(1,444	)		2,665
Principal investment:
Interest		86,550			88,035			87,111			88,995
Net investment income		27,442			19,090			28,832			26,609
Dividends		6,169			5,820			1,683			972
Mortgage banking:
Interest		—			—			—			—
Gain on sale of loans, net		—			—			—			—
Other		2,329			1,827			1,683			1,316
Total revenues		298,098			287,920			212,725			253,359
Interest expense		52,968			44,265			34,276			32,647
Provision for loan losses		—			—			—			—
Revenues, net of interest expense and provision for loan losses		245,130			243,655			178,449			220,712

Non-interest expenses
Compensation and benefits		95,113			95,824			57,698			74,889
Professional services		11,832			13,421			15,050			10,164
Business development		11,248			8,284			8,885			16,538
Clearing and brokerage fees		2,186			1,556			2,608			2,773
Occupancy & equipment		4,330			3,898			3,326			2,904
Communications		4,227			3,348			3,442			2,942
Other operating expenses		6,570			4,846			5,351			5,973
Total non-interest expenses		135,506			131,177			96,360			116,183

Net income before taxes		109,624			112,478			82,089			104,529

Income tax provision		23,032			20,329			910			14,890

Net income	$	86,592		$	92,149		$	81,179		$	89,639

Net income before taxes as a percentage of net revenue		44.7	%		46.2	%		46.0	%		47.4	%

ROE (annualized)		22.2	%		24.8	%		20.8	%		22.1	%

Total shareholders’ equity	$	1,578,524		$	1,543,361		$	1,431,345		$	1,685,673

Basic earnings per share	$	0.52		$	0.55		$	0.49		$	0.54
Diluted earnings per share	$	0.51		$	0.55		$	0.48		$	0.54

Ending shares outstanding (in thousands)		166,932			166,753			166,632			165,623

Book value per share	$	9.46		$	9.26		$	8.59		$	10.18
Book value per share, net of AOCI(1)	$	9.68		$	9.52		$	9.30		$	9.30

Gross assets under management (in millions)
Managed accounts	$	196.1		$	168.7		$	160.3		$	78.8
Hedge & offshore funds		631.6			519.3			430.0			435.4
Mutual funds		2,320.4			1,963.7			1,612.2			1,897.4
Private equity and venture capital funds		52.5			49.7			50.7			76.5
Total	$	3,200.6		$	2,701.4		$	2,253.2		$	2,488.1

Net assets under management (in millions)
Managed accounts	$	196.1		$	168.7		$	160.3		$	78.8
Hedge & offshore funds		589.6			482.8			409.0			350.5
Mutual funds		2,305.5			1,951.7			1,606.9			1,874.0
Private equity and venture capital funds		49.7			46.4			46.5			70.4
Total	$	3,140.9		$	2,649.6		$	2,222.7		$	2,373.7

Productive assets under management (in millions)
Managed accounts	$	196.1		$	168.7		$	160.3		$	78.8
Hedge & offshore funds		488.7			393.8			329.9			263.8
Mutual funds		2,305.5			1,951.7			1,606.9			1,874.0
Private equity and venture capital funds		70.9			70.9			111.6			131.2
Total	$	3,061.2		$	2,585.1		$	2,208.7		$	2,347.8

Employee count		698			665			626			549

FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except per share amounts)

(Unaudited)


	June 30, 2005			December 31, 2004
ASSETS

Cash and cash equivalents	$	311,804		$	231,527
Receivables		169,317			74,880
Investments:
Mortgage-backed securities, at fair value		10,622,271			11,726,689
Long-term investments		433,206			441,499
Loans held for investment, net		2,431,061			—
Loans held for sale, net		644,692			—
Reverse repurchase agreements		243,222			183,375
Trading securities, at fair value		489,293			7,744
Due from clearing broker		45,519			95,247
Goodwill		160,525			108,013
Intangible assets, net		29,026			14,404
Furniture, equipment and leasehold improvements, net		34,203			18,733
Other assets		42,618			26,177
Total assets	$	15,656,757		$	12,928,288

LIABILITIES AND SHAREHOLDERS’ EQUITY

Liabilities:
Trading account securities sold short, at fair value	$	173,523		$	17,176
Commercial paper		7,765,230			7,294,949
Repurchase agreements		4,923,394			3,467,569
Securitization financing on loans held for investment		702,636			—
Securities purchased		35,358			144,430
Dividends payable		58,439			65,870
Interest payable		14,851			5,894
Accrued compensation and benefits		75,450			131,218
Accounts payable, accrued expenses and other liabilities		65,864			94,288
Temporary subordinated loan payable		100,000			—
Long-term debt		222,991			128,370
Total liabilities		14,137,736			11,349,764

Shareholders’ equity:
Common stock, 171,900 and 171,592 shares		1,719			1,689
Additional paid-in capital		1,537,260			1,483,640
Employee stock loan receivable including accrued interest (591 and 711 shares)		(4,176	)		(4,890	)
Deferred compensation		(18,802	)		(16,863	)
Accumulated other comprehensive loss, net		(112,934	)		(38,162	)
Retained earnings		115,954			153,110
Total shareholders’ equity		1,519,021			1,578,524

Total liabilities and shareholders’ equity	$	15,656,757		$	12,928,288
Book value per share	$	8.96		$	9.46

Book value per share, net of AOCI(1)	$	9.62		$	9.68

Shares Outstanding		169,617			166,932

Statements concerning future performance, developments, events, market forecasts, revenue, 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 S.E.C.

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