-----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, H0UO6HxMuugI4z4M34dDEcfiunCc24cSpSUNNEuP8u6d/Ds0ZOMFwtsqDlLrtTmd K0Koa1SBAlBzribIemTsTg== 0000950123-99-004590.txt : 19990514 0000950123-99-004590.hdr.sgml : 19990514 ACCESSION NUMBER: 0000950123-99-004590 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990413 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990513 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PAINE WEBBER GROUP INC CENTRAL INDEX KEY: 0000075754 STANDARD INDUSTRIAL CLASSIFICATION: SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211] IRS NUMBER: 132760086 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-07367 FILM NUMBER: 99619999 BUSINESS ADDRESS: STREET 1: 1285 AVE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2127132000 MAIL ADDRESS: STREET 1: 1285 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10019 FORMER COMPANY: FORMER CONFORMED NAME: PAINE WEBBER INC DATE OF NAME CHANGE: 19840523 8-K 1 PAINE WEBBER GROUP, INC. 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ----------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) April 13, 1999 ---------------------- PAINE WEBBER GROUP, INC. - ------------------------------------------------------------------------------ (Exact name of registrant as specified in its charter) Delaware 1-7367 13-2760086 - ------------------------------------------------------------------------------ (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 1285 Avenue of the Americas, New York, New York 10019 - ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (212) 713-2000 ------------------ Not Applicable - ------------------------------------------------------------------------------ (Former name or address, if changed since last report) 2 Item 5. Other Events On April 13, 1999, the Registrant released financial information with respect to the three month period ending March 31, 1999. A copy of the press release containing such financial information is included herein as Exhibit 99.1 to this Report. Item 7. Financial Statements, Pro Forma Financial Information And Exhibits (c) Exhibits 99.1 Copy of Registrant's press release which, among other things, reported results for the three month period ending March 31, 1999. 3 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PAINE WEBBER GROUP INC. (REGISTRANT) By /s/ Regina Dolan -------------------------------- Name: Regina Dolan Title: Senior Vice President and Chief Financial Officer DATE: May 13, 1999 4 EXHIBIT INDEX Item No. Description - -------- ----------- 99.1 Copy of Registrant's press release which, among other things, reported results for the three month period ending March 31, 1999 EX-99.1 2 COPY OF REGISTRANT'S PRESS RELEASE 1 PAINE WEBBER GROUP REPORTS ALL-TIME RECORD QUARTERLY EARNINGS -- NET INCOME RISES TO $160.6 MILLION, A 33 PERCENT INCREASE FROM Q1 1998 -- -- EARNINGS PER SHARE AT $1.01 -- NEW YORK, April 13, 1999 - Paine Webber Group Inc. reported today the strongest quarterly earnings and revenues in the firm's 119-year history. Net income for the period ended March 31, 1999, was $160.6 million, or $1.01 per diluted share, an increase of 33 percent from $120.7 million, or $0.77 per diluted share, for the first quarter of 1998. Net revenues for the first quarter of 1999 were $1.3 billion, an increase of 17.9 percent from $1.11 billion in the corresponding period a year ago. Return on common equity for the quarter was 24.6 percent, compared with 23.5 percent for the year-ago period. As of March 31, 1999, the firm had total capital of $7.54 billion, an all-time high. "We are pleased to report another quarter of record earnings, which reflect the strong momentum built by the firm across all businesses," said Donald B. Marron, PaineWebber's chairman and chief executive officer. "A key element of our strategy is the integration of technology with quality investment advice and services to enhance the gathering of assets of traditional affluent clients and cultivate a new generation of investors. We continue to accelerate the development and implementation of strategic initiatives to aggressively drive the firm's growth in new directions." Among the records in the quarter are the following, with percentage increases from the first quarter of 1998 in parentheses: - Net revenues of $1.3 billion (18 percent increase) - Commission income of $478.9 million (17 percent increase) - Asset management revenues of $206.1 million (30 percent increase) - Principal transaction revenues of $314.2 million (13 percent increase) 2 Paine Webber Group Inc. Page 2 - Assets under control of $367.1 billion (14 percent increase) - Assets under management of $63.0 billion (17 percent increase) - Wrap fee assets of $34.4 billion (39 percent increase) - Recurring fee income, annualized, of $1.05 billion (25 percent increase) - Ratio of recurring fees and net margin interest to fixed expenses at 95 percent - Number of financial advisors at 7,033 The following measurements, which are also records, reflect the continued financial strengthening of the firm: - Shareholders' equity at $2.6 billion - Total capital at $7.54 billion - Book value at $17.77 Among the operational highlights are the following: - Net new client assets flowing into the firm averaged $155 million per day, a 50.4 percent increase from the first quarter of 1998. - The Municipal Securities Group achieved the No. 1 industry ranking in negotiated senior underwritings for the second consecutive quarter. - Strong performance by our institutional businesses, led by a record quarter in Global Fixed Income, contributed significantly to the firm's overall results. 3 Paine Webber Group Inc. Page 3 ONLINE INITIATIVES A key element of the firm's strategy is the integration of online technology with traditional broker services to deliver investment advice to PaineWebber's current clients and attract a new generation of investors. Among the current initiatives: - The firm is accelerating enhancements to its client online service, the PaineWebber EDGE, which is used by 85,685 households, representing almost $74 billion in assets. Since the EDGE was introduced in the first quarter of 1997, EDGE assets have grown at a compounded annual growth rate of 187 percent. Online trading will be available through the EDGE in the third quarter of 1999. These enhancements support Internet execution and account administration, portfolio management and monitoring, asset consolidation, online client/financial advisor interactivity, and client/financial advisor service customization. - PaineWebber will complete the rollout of ConsultWorks, the firm's new financial advisor workstation, in the second quarter. The online capabilities of the ConsultWorks platform allow our financial advisors to deliver customized information and recommendations to clients faster and more efficiently 24 hours a day. - PaineWebber signed an agreement to acquire a 25 percent equity stake in Kingland Companies, a leading developer of Internet-based solutions for the financial services industry. PaineWebber partnered with Kingland to introduce CSC Connection, a browser-based account tool designed to provide correspondent clients with customized market data and other broker applications. Paine Webber Group Inc., together with its subsidiaries, serves the investment and capital needs of a worldwide client base. The firm employs 18,051 people in 305 offices. THIS NEWS RELEASE AND MORE INFORMATION ABOUT PAINE WEBBER GROUP INC. CAN BE FOUND ON OUR CORPORATE SITE ON THE WORLD WIDE WEB, WWW.PAINEWEBBER.COM. -- Two tables to follow - 4 PAINE WEBBER GROUP INC. CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS EXCEPT SHARE AND PER SHARE AMOUNTS) (UNAUDITED)
Quarter Ended March 31, 1999 1998 ------------ ------------ REVENUES Commissions $ 478,873 $ 408,124 Principal Transactions 314,208 276,963 Asset Management 206,051 158,736 Investment Banking 125,953 124,969 Interest 757,160 802,378 Other 41,065 33,940 ------------ ------------ TOTAL REVENUES 1,923,310 1,805,110 Interest Expense 608,419 690,133 ------------ ------------ NET REVENUES 1,314,891 1,114,977 ------------ ------------ NON-INTEREST EXPENSES Compensation and Benefits 768,714 650,575 Office & Equipment 81,452 72,540 Communications 42,203 37,756 Business Development 23,867 22,079 Brokerage, Clearing & Exchange Fees 24,390 25,496 Professional Services 30,452 33,592 Other Expenses 78,794 74,744 ------------ ------------ TOTAL NON-INTEREST EXPENSES 1,049,872 916,782 ------------ ------------ INCOME BEFORE INCOME TAXES & MINORITY INTEREST 265,019 198,195 Provision for Income Taxes 96,359 69,399 ------------ ------------ INCOME BEFORE MINORITY INTEREST 168,660 128,796 Minority Interest 8,061 8,061 ------------ ------------ NET INCOME $ 160,599 $ 120,735 ============ ============ NET INCOME APPLICABLE TO COMMON SHARES $ 154,650 $ 114,823 EARNINGS PER SHARE BASIC $ 1.06 $ 0.82 DILUTED $ 1.01 $ 0.77 WEIGHTED AVERAGE COMMON SHARES BASIC 145,599,000 139,286,000 DILUTED 153,729,000 149,493,000
5 PAINE WEBBER GROUP INC. Quarterly Statistical Supplement - Operating Results [unaudited]
1Q 99 4Q 98 3Q 98 2Q 98 1Q 98 - ------------------------------------------------------------------------------------------------------------------------------ ROE Common 24.6% 16.3% 14.0% 23.7% 23.5% Income Before Taxes & Minority Interest as a Percentage of Net Revenue 20.2% 15.2% 13.4% 18.2% 17.8% - ------------------------------------------------------------------------------------------------------------------------------ E.P.S. [Diluted] $ 1.01 $ 0.63 $ 0.51 $ 0.82 $ 0.77 Diluted Shares [Millions] 153.7 150.9 151.4 151.2 149.5 Dividends Paid Per Common Share $ 0.11 $ 0.11 $ 0.11 $ 0.11 $ 0.11 Book Value Per Common Share $ 17.77 $ 16.76 $ 15.86 $ 15.38 $ 14.46 Common Shares Outstanding [Millions] 145.8 145.5 142.8 140.6 139.3 - ------------------------------------------------------------------------------------------------------------------------------ Total Capital [$Billions] $ 7.54 $ 7.28 $ 6.64 $ 6.56 $ 6.14 Total Shareholders' Equity [$Billions] $ 2.59 $ 2.44 $ 2.26 $ 2.16 $ 2.02 - ------------------------------------------------------------------------------------------------------------------------------ Assets Under Control [$Billions] $ 367.1 $ 351.7 $ 313.2 $ 329.3 $ 322.6 Assets Under Management [$Billions] $ 63.0 $ 58.5 $ 54.1 $ 54.7 $ 54.0 Money Market Funds 34.7 31.4 29.9 28.6 29.0 Long Term Mutual Funds 14.2 13.8 12.5 13.2 12.4 Institutional and Other 14.1 13.3 11.7 12.9 12.6 Wrap Fee Assets [$Billions] $ 34.4 $ 30.6 $ 24.7 $ 26.5 $ 24.8 - ------------------------------------------------------------------------------------------------------------------------------ Client Assets on "The Edge" [$Billions] * $ 73.8 $ 60.1 $ 44.8 $ 36.9 $ 32.3 Households on "The Edge" * 86,000 71,000 59,000 51,000 43,000 RMA Accounts ** 530,900 501,900 475,200 457,300 440,300 - ------------------------------------------------------------------------------------------------------------------------------ Recurring Fees (YTD Annualized) $ 1,047 $ 921 $ 908 $ 886 $ 836 [$Millions] Recurring Fees (Incl. Margin Interest) - As a % of Fixed Costs 95% 91% 93% 94% 86% - ------------------------------------------------------------------------------------------------------------------------------ Employees 18,051 17,767 17,424 17,045 16,828 Financial Advisors 7,033 6,951 6,739 6,551 6,401 Sales Offices 305 303 299 300 299
* Paine Webber's client on-line service ** Paine Webber's central asset account -----END PRIVACY-ENHANCED MESSAGE-----