EX-99 2 sep23048ka.htm A.G. Edwards, Inc. Form 10-Q
FOR IMMEDIATE RELEASE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A.G. Edwards Announces Results
for the Second Quarter and First Half of Fiscal 2005
 
 
 
 
 
 
 
 
 
First-Half Net Earnings Increase 33% Over Year-Ago Period
 
 
 
 
 
 
 
 
 
ST. LOUIS, Sept. 23, 2004 -- A.G. Edwards, Inc. (NYSE: AGE) today announced results for the second quarter and first half of fiscal 2005, which ended August 31, 2004.
 
 
 
 
 
 
 
 
 
Net earnings for the quarter were $41 million, or $0.52 diluted earnings per share, on net revenues of $614 million. For the same quarter last year, net earnings were $37 million, or $0.46 diluted earnings per share, on net revenues of $639 million.
 
 
 
 
 
 
 
 
 
For the first six months of fiscal 2005, net earnings were $87 million, or $1.09 diluted earnings per share, on net revenues of $1.3 billion. For the same period last year, net earnings were $65 million, or $0.81 diluted earnings per share, on net revenues of $1.2 billion.
 
 
 
 
 
 
 
 
 
"We were pleased to see our second-quarter results improve over last year's second quarter. This improvement came despite an environment that was less favorable for the equity markets compared to the year-ago quarter," said Robert L. Bagby, chairman and chief executive officer. "Much of our growth in the second quarter and first half can be credited to our asset-management and service-fee revenues as we continued to strengthen our platform of fee-based products and services.
 
 
 
 
 
 
 
 
 
"Our national advertising will be more visible in the third quarter as part of our branding strategy. Our initial efforts enhanced brand awareness among investors, and I am confident our branding initiative will provide long-term benefits by distinguishing the uniqueness of our personal-relationship model."
 
 
 
 
 
 
 
 
 
RESULTS OF OPERATIONS
 
 
 
 
 
 
 
 
 
Commissions - Commission revenues for the second quarter decreased 12 percent ($31 million) versus last year's second quarter, primarily reflecting decreased investor activity in individual equities. When comparing the first six months of fiscal 2005 versus the same period last year, commission revenues increased 2 percent ($12 million) primarily as a result of greater investor interest in mutual funds and managed futures funds.
 
 
 
 
 
 
 
 
 
Asset management and service fees - Asset-management and service-fee revenues for the second quarter increased 27 percent ($46 million) versus the second quarter last year. For the first six months of fiscal 2005, these revenues increased 33 percent ($106 million) versus last year's first six months. Results in both periods reflect greater client interest in fee-based programs and services as well as increased asset values in mutual funds. Additionally, the second-quarter and six-month results reflect increased revenue from money fund distribution fees after the removal last November of expense caps previously imposed by certain money funds.
 
 
 
 
 
 
 
 
 
Principal transactions - Revenues from principal transactions decreased 14 percent ($11 million) compared to the year-ago quarter. Versus the first six months of last fiscal year, principal-transaction revenues decreased 8 percent ($12 million). The decreases in both periods reflect lower demand for fixed-income products.
 
 
 
 
 
 
 
 
 
Investment banking - Investment-banking revenues for the second quarter decreased 39 percent ($37 million) versus the same three-month period last year. For the first six months of fiscal 2005, investment-banking revenues decreased 28 percent ($46 million) compared to the same period last year. Both periods reflect lower volume in many interest-rate-sensitive sectors.
 
 
 
 
 
 
 
 
 
Net interest revenue - Interest revenue net of interest expense in the second quarter increased 27 percent ($6 million) from the year-ago quarter. For the first six months, net interest revenue increased 24 percent ($11 million) over last year's first six months. Both the second-quarter and six-month results reflect a change by A.G. Edwards in the base rates charged on client-margin balances along with a higher interest-rate environment. The current six-month period additionally reflects slightly higher average balances.
 
 
 
 
 
 
 
 
 
Other revenue - Other revenue increased $2 million in the second quarter and increased $13 million for the first six months of fiscal 2005 versus the like periods last year. Both periods reflect net increases in private-equity valuations. The six-month results additionally reflect a Sept. 11, 2001 business-interruption settlement.
 
 
 
 
 
 
 
 
 
Non-interest expenses - During the second quarter, non-interest expenses decreased 5 percent ($30 million) compared to last year's second quarter. For the first six months of fiscal 2005, non-interest expenses increased 4 percent ($48 million) compared to the same period last fiscal year.
 
 
 
 
 
 
 
 
 
Compensation and benefits in the second quarter decreased 4 percent ($17 million) from the same quarter last year mainly as a result of lower commissionable revenue. Comparing the first six months of fiscal 2005 to the same period last year, compensation and benefits increased 5 percent ($43 million), primarily reflecting increases in commissionable revenue.
 
 
 
 
 
 
 
 
 
Non-compensation-related expenses for the second quarter this year decreased 8 percent ($13 million) from the same quarter last year due largely to a decline in communication and technology expenses. For the current year's first six months, non-compensation-related expenses increased 2 percent ($5 million) versus last year's first six months, reflecting the costs of the firm's branding initiative partially offset by decreases in communication and technology expenses.
 
 
 
 
 
 
 
 
 
ADDITIONAL STOCKHOLDER INFORMATION
 
 
 
 
 
 
 
 
 
Total client assets at the end of the second quarter were $296 billion, a 10 percent increase when compared to the end of the second quarter last year. As of August 31, 2004, stockholders' equity was $1.72 billion, for a book value per share of $22.37. Diluted per share earnings for the second quarter were based on 79.2 million average common and common equivalent shares outstanding compared to 80.5 million in the prior year. Diluted per share earnings for the current six-month period were based on 80.1 million average common and common equivalent shares outstanding compared to 80.6 million in the prior year.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ABOUT A.G. EDWARDS, INC.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A.G. Edwards, Inc. is a financial services holding company whose primary subsidiary is the national investment firm of A.G. Edwards & Sons, Inc. For more than 117 years, individuals and businesses have turned to A.G. Edwards to develop strong personal relationships with financial consultants dedicated to a client-first philosophy of providing financial strategies tailored to their clients' individual needs. A.G. Edwards and its affiliates encompass 6,872 financial consultants in 715 offices nationwide and two European locations in London, England and Geneva, Switzerland. For more information on A.G. Edwards, please visit www.agedwards.com.
 
 
 
 
 
 
 
 
 
# # #
 
 
 
 
 
 
 
 
 
This material may contain forward-looking statements within the meaning of federal securities laws. Actual results are subject to risks and uncertainties, including both those specific to A.G. Edwards and those to the industry, which could cause results to differ materially from those contemplated. The risks and uncertainties include, but are not limited to, general economic conditions, government monetary and fiscal policy, the actions of competitors, changes in and effects of outsourcing agreements and of marketing strategies, regulatory changes and actions, changes in legislation, risk management, legal claims, technology changes, compensation changes, and implementation and effects of expense-reduction strategies. Undue reliance should not be placed on the forward-looking statements, which speak only as of the date of this release. A.G. Edwards does not undertake any obligation to publicly update any forward-looking statements.
 
 
 
 
 
 
 
 
 
# # #
A. G. EDWARDS, INC.
 
 
 
CONSOLIDATED STATEMENTS OF EARNINGS
 
 
 
(In thousands, except per share amounts)
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
 
 
 
 
 
 
 
 
August 31,
 
August 31,
 
Increase/
 
%
 
 
 
 
 
2004
 
2003
 
(Decrease)
 
Chg.
 
 
 
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commissions
 
$
237,119
 
$
268,393
 
$
(31,274)
 
 
(11.7)
 
 
 
Asset management and service fees *
 
 
214,223
 
 
168,096
 
 
46,127
 
 
27.4
 
 
 
Principal transactions
 
 
70,999
 
 
82,178
 
 
(11,179)
 
 
(13.6)
 
 
 
Investment banking
 
 
57,872
 
 
94,557
 
 
(36,685)
 
 
(38.8)
 
 
 
Interest
 
 
29,921
 
 
23,986
 
 
5,935
 
 
24.7
 
 
 
Other
 
 
4,753
 
 
2,515
 
 
2,238
 
 
89.0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL REVENUES
 
 
614,887
 
 
639,725
 
 
(24,838)
 
 
(3.9)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
618
 
 
950
 
 
(332)
 
 
(34.9)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET REVENUES
 
 
614,269
 
 
638,775
 
 
(24,506)
 
 
(3.8)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NON-INTEREST EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
 
401,764
 
 
419,094
 
 
(17,330)
 
 
(4.1)
 
 
 
Communication and technology
 
 
58,914
 
 
68,795
 
 
(9,881)
 
 
(14.4)
 
 
 
Occupancy and equipment
 
 
35,268
 
 
36,269
 
 
(1,001)
 
 
(2.8)
 
 
 
Marketing and business development
 
 
12,676
 
 
11,099
 
 
1,577
 
 
14.2
 
 
 
Floor brokerage and clearance
 
 
5,723
 
 
5,989
 
 
(266)
 
 
(4.4)
 
 
 
Other *
 
 
36,800
 
 
40,134
 
 
(3,334)
 
 
(8.3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL NON-INTEREST EXPENSES
 
 
551,145
 
 
581,380
 
 
(30,235)
 
 
(5.2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EARNINGS BEFORE INCOME TAXES
 
 
63,124
 
 
57,395
 
 
5,729
 
 
10.0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INCOME TAXES
 
 
22,496
 
 
19,907
 
 
2,589
 
 
13.0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET EARNINGS
 
$
40,628
 
$
37,488
 
$
3,140
 
 
8.4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EARNINGS PER SHARE:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted
 
$
0.52
 
$
0.46
 
$
0.06
 
 
13.0
 
 
 
Basic
 
$
0.52
 
$
0.47
 
$
0.05
 
 
10.6
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AVERAGE COMMON AND COMMON
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EQUIVALENT SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted
 
 
79,156
 
 
80,488
 
 
 
 
 
 
 
 
 
Basic
 
 
78,305
 
 
79,394
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STOCKHOLDERS' EQUITY
 
$
1,720,332
 
$
1,666,738
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BOOK VALUE PER SHARE
 
$
22.37
 
$
21.13
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL SHARES OUTSTANDING (end of period)
 
 
76,920
 
 
78,866
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
* Prior years' financial information has been reclassified to conform to current year presentation.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A. G. EDWARDS, INC.
 
 
 
CONSOLIDATED STATEMENTS OF EARNINGS
 
 
 
(In thousands, except per share amounts)
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Six Months Ended
 
 
 
 
 
 
 
 
 
 
August 31,
 
August 31,
 
Increase/
 
%
 
 
 
 
 
2004
 
2003
 
(Decrease)
 
Chg.
 
 
 
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commissions
 
$
521,992
 
$
510,193
 
$
11,799
 
 
2.3
 
 
 
Asset management and service fees *
 
 
428,282
 
 
322,363
 
 
105,919
 
 
32.9
 
 
 
Principal transactions
 
 
140,400
 
 
152,574
 
 
(12,174)
 
 
(8.0)
 
 
 
Investment banking
 
 
118,313
 
 
164,241
 
 
(45,928)
 
 
(28.0)
 
 
 
Interest
 
 
58,694
 
 
48,172
 
 
10,522
 
 
21.8
 
 
 
Other
 
 
13,679
 
 
896
 
 
12,783
 
 
1,426.7
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL REVENUES
 
 
1,281,360
 
 
1,198,439
 
 
82,921
 
 
6.9
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
1,201
 
 
1,734
 
 
(533)
 
 
(30.7)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET REVENUES
 
 
1,280,159
 
 
1,196,705
 
 
83,454
 
 
7.0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NON-INTEREST EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
 
834,955
 
 
791,949
 
 
43,006
 
 
5.4
 
 
 
Communication and technology
 
 
125,045
 
 
133,314
 
 
(8,269)
 
 
(6.2)
 
 
 
Occupancy and equipment
 
 
70,044
 
 
68,511
 
 
1,533
 
 
2.2
 
 
 
Marketing and business development
 
 
33,539
 
 
20,891
 
 
12,648
 
 
60.5
 
 
 
Floor brokerage and clearance
 
 
10,923
 
 
10,649
 
 
274
 
 
2.6
 
 
 
Other *
 
 
69,203
 
 
70,661
 
 
(1,458)
 
 
(2.1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL NON-INTEREST EXPENSES
 
 
1,143,709
 
 
1,095,975
 
 
47,734
 
 
4.4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EARNINGS BEFORE INCOME TAXES
 
 
136,450
 
 
100,730
 
 
35,720
 
 
35.5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INCOME TAXES
 
 
49,558
 
 
35,366
 
 
14,192
 
 
40.1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET EARNINGS
 
$
86,892
 
$
65,364
 
$
21,528
 
 
32.9
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EARNINGS PER SHARE:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted
 
$
1.09
 
$
0.81
 
$
0.28
 
 
34.6
 
 
 
Basic
 
$
1.10
 
$
0.82
 
$
0.28
 
 
34.1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AVERAGE COMMON AND COMMON
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EQUIVALENT SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted
 
 
80,053
 
 
80,615
 
 
 
 
 
 
 
 
 
Basic
 
 
79,188
 
 
79,865
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STOCKHOLDERS' EQUITY
 
$
1,720,332
 
$
1,666,738
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BOOK VALUE PER SHARE
 
$
22.37
 
$
21.13
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL SHARES OUTSTANDING (end of period)
 
 
76,920
 
 
78,866
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
* Prior years' financial information has been reclassified to conform to current year presentation.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A. G. EDWARDS, INC.
QUARTERLY CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share amounts)
(Unaudited)
 
 
 
 
For the Three Months Ended
 
August 31,
 
May 31,
 
February 29,
 
November 30,
 
August 31,
 
 
2004
 
2004
 
2004
 
2003
 
2003
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commissions
 
$
237,119
 
$
284,873
 
$
310,325
 
$
272,704
 
$
268,393
Asset management and service fees *
 
 
214,223
 
 
214,059
 
 
207,419
 
 
181,409
 
 
168,096
Principal transactions
 
 
70,999
 
 
69,401
 
 
71,894
 
 
72,418
 
 
82,178
Investment banking
 
 
57,872
 
 
60,441
 
 
81,243
 
 
76,377
 
 
94,557
Interest
 
 
29,921
 
 
28,773
 
 
25,569
 
 
22,051
 
 
23,986
Other
 
 
4,753
 
 
8,926
 
 
723
 
 
4,765
 
 
2,515
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL REVENUES
 
 
614,887
 
 
666,473
 
 
697,173
 
 
629,724
 
 
639,725
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
618
 
 
583
 
 
382
 
 
403
 
 
950
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET REVENUES
 
 
614,269
 
 
665,890
 
 
696,791
 
 
629,321
 
 
638,775
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NON-INTEREST EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
 
401,764
 
 
433,191
 
 
456,581
 
 
400,878
 
 
419,094
Communication and technology
 
 
58,914
 
 
66,131
 
 
68,841
 
 
69,892
 
 
68,795
Occupancy and equipment
 
 
35,268
 
 
34,776
 
 
31,715
 
 
37,391
 
 
36,269
Marketing and business development
 
 
12,676
 
 
20,863
 
 
12,358
 
 
13,604
 
 
11,099
Floor brokerage and clearance
 
 
5,723
 
 
5,200
 
 
6,126
 
 
5,720
 
 
5,989
Other *
 
 
36,800
 
 
32,403
 
 
37,474
 
 
40,988
 
 
40,134
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL NON-INTEREST EXPENSES
 
 
551,145
 
 
592,564
 
 
613,095
 
 
568,473
 
 
581,380
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EARNINGS BEFORE INCOME TAXES
 
 
63,124
 
 
73,326
 
 
83,696
 
 
60,848
 
 
57,395
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INCOME TAXES
 
 
22,496
 
 
27,062
 
 
29,292
 
 
21,131
 
 
19,907
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET EARNINGS
 
$
40,628
 
$
46,264
 
$
54,404
 
$
39,717
 
$
37,488
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EARNINGS PER SHARE:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted
 
$
0.52
 
$
0.57
 
$
0.67
 
$
0.49
 
$
0.46
Basic
 
$
0.52
 
$
0.58
 
$
0.68
 
$
0.49
 
$
0.47
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AVERAGE COMMON AND COMMON
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EQUIVALENT SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted
 
 
79,156
 
 
80,951
 
 
81,329
 
 
81,401
 
 
80,488
Basic
 
 
78,305
 
 
80,183
 
 
80,385
 
 
80,047
 
 
79,394
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STOCKHOLDERS' EQUITY
 
$
1,720,332
 
$
1,782,281
 
$
1,778,319
 
$
1,734,603
 
$
1,666,738
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BOOK VALUE PER SHARE
 
$
22.37
 
$
22.38
 
$
22.08
 
$
21.58
 
$
21.13
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
* Prior years' financial information has been reclassified to conform to current year presentation.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A.G. EDWARDS, INC.
QUARTERLY STATISTICAL INFORMATION
(Dollars in thousands, except per share amounts)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2Q FY05
 
1Q FY05
 
4Q FY04
 
3Q FY04
 
2Q FY04
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Revenues *
 
$
614,269
 
$
665,890
 
$
696,791
 
$
629,321
 
$
638,775
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings Before Income Taxes
 
$
63,124
 
$
73,326
 
$
83,696
 
$
60,848
 
$
57,395
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Earnings
 
$
40,628
 
$
46,264
 
$
54,404
 
$
39,717
 
$
37,488
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Earnings as a
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percent of Net Revenues
 
 
6.6%
 
 
6.9%
 
 
7.8%
 
 
6.3%
 
 
5.9%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Diluted Shares-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(000's Omitted)
 
 
79,156
 
 
80,951
 
 
81,329
 
 
81,401
 
 
80,488
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings Per Share (Diluted)
 
$
0.52
 
$
0.57
 
$
0.67
 
$
0.49
 
$
0.46
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends Per Share
 
$
0.16
 
$
0.16
 
$
0.16
 
$
0.16
 
$
0.16
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stockholders' Equity
 
$
1,720,332
 
$
1,782,281
 
$
1,778,319
 
$
1,734,603
 
$
1,666,738
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Book Value Per Share
 
$
22.37
 
$
22.38
 
$
22.08
 
$
21.58
 
$
21.13
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return On Average Equity-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Quarter Results Annualized)
 
 
9.3%
 
 
10.4%
 
 
12.4%
 
 
9.3%
 
 
9.0%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
4,001,300
 
$
4,110,942
 
$
4,435,059
 
$
4,180,205
 
$
4,066,745
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Consultants
 
 
6,872
 
 
6,899
 
 
6,980
 
 
6,956
 
 
7,024
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Full-time Employees
 
 
15,413
 
 
15,392
 
 
15,931
 
 
15,887
 
 
15,948
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Locations
 
 
717
 
 
713
 
 
710
 
 
708
 
 
706
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Client Assets *
 
$
296,000,000
 
$
294,000,000
 
$
300,000,000
 
$
283,000,000
 
$
270,000,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets In Fee-based Accounts
 
$
27,420,000
 
$
27,164,000
 
$
27,275,000
 
$
24,732,000
 
$
23,405,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
* Prior years' financial information has been reclassified to conform to current year presentation.