-----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, KdmnwmC8pop+uSoH6yeVUhoGV+lbCbs9J1TkwvhTwS8UeqLfPsAnA/aGyIjfhau3 HPrL18Jg5YY7utGn5hGcXA== 0000950123-00-003986.txt : 20000426 0000950123-00-003986.hdr.sgml : 20000426 ACCESSION NUMBER: 0000950123-00-003986 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000418 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20000425 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: 608249 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 18, 2000 PAINE WEBBER GROUP INC. (Exact Name of Registrant as specified in its charter) DELAWARE NO. 1-7367 NO. 13-2760086 (State or other (Commission (IRS Employer jurisdiction of File Number) Identification No.) incorporation) 1285 AVENUE OF THE AMERICAS NEW YORK, NEW YORK 10019 (Address of principal (Zip code) executive offices) Registrant's telephone number, including area code: (212) 713-2000 2 Item 5. Other Events. On April 18, 2000, the Registrant released financial information with respect to the three month period ending March 31, 2000. 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, 2000. 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 thereunto duly authorized. PAINE WEBBER GROUP INC. By: /s/ Jerome T. Fadden --------------------------------- Name: Jerome T. Fadden Title: Senior Vice President and Chief Financial Officer Dated: April 25, 2000 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, 2000. EX-99.1 2 PRESS RELEASE 1 Exhibit 99.1 PAINE WEBBER GROUP REPORTS ALL-TIME RECORD QUARTERLY EARNINGS -- EARNINGS PER SHARE AT $1.16, A 15 PERCENT INCREASE FROM Q1 1999-- -- NET INCOME RISES TO $176.3 MILLION -- NEW YORK, April 18, 2000 - Paine Webber Group Inc. reported today the strongest quarterly earnings and revenues in the firm's 120-year history. Net income for the period ended March 31, 2000, was $176.3 million, or $1.16 per diluted share, an increase of 10 percent from $160.6 million, or $1.01 per diluted share, for the first quarter of 1999. Net revenues for the first quarter of 2000 were $1.6 billion, an increase of 21.5 percent from $1.3 billion in the corresponding period a year ago. Return on common equity for the quarter was 23.8 percent. As of March 31, 2000, the firm had total capital of $8.48 billion. "We are pleased to report an all-time record quarter of earnings reflecting the accelerating momentum across the firm's businesses, particularly those focused on the affluent investor," said Donald B. Marron, PaineWebber's chairman and chief executive officer. "Key elements of our retail strategy are to increase distribution and accelerate the gathering of client assets, which has resulted in a 46 percent increase in net new assets flowing into the firm in the first quarter versus one year ago. We expect this trend to continue fueled by the firm's investments in technology to enhance online capabilities and the growth of productive financial advisors." Among the records in the quarter are the following, with percentage increases from the first quarter of 1999 in parentheses: - - Net revenues of $1.6 billion (21.5 percent increase) - - Commission income of $676.2 million (41.2 percent increase) - - Asset management revenues of $278.3 million (35.1 percent increase) - - Client assets of $452.4 billion (23 percent increase) 2 Paine Webber Group Inc. Page 2 - - Assets under management of $73.4 billion (16.5 percent increase) - - Wrap fee assets of $53.9 billion (57 percent increase) - - Recurring fee income, annualized, of $1.372 billion (31 percent increase) - - Ratio of recurring fees and net margin interest to fixed expenses at 109 percent - - Number of financial advisors at 7,608 The following measurements, which are also records, reflect the continued financial strengthening of the firm: - - Shareholders' equity at $3.04 billion - - Book value per common share at $20.95 Among the operational highlights are the following: - - Net new client assets flowing into the firm totaled $13.8 billion or an average of $219.5 million per day, as compared to $9.5 billion or $155.5 million per day in the first quarter of 1999. - - InsightOne, the firm's asset-based fee account product featuring a host of online services, including unlimited online trading, reached $12.6 billion in client assets, an increase of $4.2 billion or 50.2 percent from year-end 1999. - - PaineWebber EDGE, the firm's Internet-based client services portal, continued to attract assets growing by 18 percent in the first quarter. At the end of the first quarter 208,300 client households subscribed to the EDGE, representing more than $165 billion in assets, specifically:
3/31/00 12/31/99 3/31/99 1Q00/1Q99 ------- -------- ------- --------- EDGE Households (000s) 208 176 86 +142% EDGE Client Assets ($b) 165 140 74 +124%
- - The Municipal Securities Group achieved the No. 2 industry ranking in negotiated senior underwritings. 3 Paine Webber Group Inc. Page 3 STRATEGIC INTERNATIONAL AND E-FINANCE INVESTMENTS A key element of the firm's growth strategy is the expansion of client markets and the investment in technology-based companies whose products or services will enhance the business solutions we bring to institutional and individual clients. Among the investments made in the quarter: - - Long Term Credit Bank of Japan - First Japanese bank owned by consortium of foreign institutions provides PaineWebber with access to a large client base of affluent Japanese investors as well as asset securitization opportunities. - - enba plc - First European online banking company offering securities trading, commercial banking and ancillary services, currently operating in UK and Germany. PaineWebber will offer retail investor products to the enba client base. - - MuniGroup.com - Offers PaineWebber clients the ability to trade municipal bonds online and access multiple inventories. - - Charitableway.com - Enables PaineWebber individual and corporate client donors access via the EDGE to a Web-based portal that aggregates charity information and tracks donations. Paine Webber Group Inc., together with its subsidiaries, serves the investment and capital needs of a worldwide client base. The firm employs 20,008 people in 318 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)
For the Quarter Ended March 31, 2000 1999 ------------ ------------ REVENUES Commissions $ 676,172 $ 478,873 Principal Transactions 309,289 314,208 Asset Management 278,288 206,051 Investment Banking 122,180 125,953 Interest 981,547 757,160 Other 37,645 41,065 ------------ ------------ TOTAL REVENUES 2,405,121 1,923,310 Interest Expense 808,016 608,419 ------------ ------------ NET REVENUES 1,597,105 1,314,891 ------------ ------------ NON-INTEREST EXPENSES Compensation and Benefits 949,786 768,714 Office & Equipment 96,592 81,452 Communications 44,123 42,203 Business Development 38,901 23,867 Brokerage, Clearing & Exchange Fees 27,303 24,390 Professional Services 49,426 30,452 Other 100,755 78,794 ------------ ------------ TOTAL NON-INTEREST EXPENSES 1,306,886 1,049,872 ------------ ------------ INCOME BEFORE INCOME TAXES & MINORITY INTEREST 290,219 265,019 Provision for Income Taxes 105,809 96,359 ------------ ------------ INCOME BEFORE MINORITY INTEREST 184,410 168,660 Minority Interest 8,061 8,061 ------------ ------------ NET INCOME $ 176,349 $ 160,599 ============ ============ NET INCOME APPLICABLE TO COMMON SHARES $ 176,349 $ 154,650 EARNINGS PER SHARE BASIC $ 1.22 $ 1.06 DILUTED $ 1.16 $ 1.01 WEIGHTED AVERAGE COMMON SHARES BASIC 145,019,000 145,599,000 DILUTED 152,336,000 153,729,000
5 PAINE WEBBER GROUP INC. QUARTERLY STATISTICAL SUPPLEMENT - OPERATING RESULTS [UNAUDITED]
1Q 00 4Q 99 3Q 99 2Q 99 1Q 99 ROE Common (Annualized) 23.8% 22.9%* 19.2% 23.8% 24.6% Income Before Taxes & Minority Interest as a Percentage of Net Revenues 18.2% 19.7% 18.3% 20.0% 20.2% - --------------------------------------------------------------------------------------------------------------------- E.P.S. [Diluted] $ 1.16 $ 1.07* $ 0.86 $ 1.02 $ 1.01 Diluted Shares [Millions] 152.3 150.7 153.9 155.0 153.7 Dividends Paid Per Common Share $ 0.12 $ 0.11 $ 0.11 $ 0.11 $ 0.11 Book Value Per Common Share $ 20.95 $ 20.04 $ 19.36 $ 18.58 $ 17.77 Common Shares Outstanding [Millions] 145.1 145.6 145.2 145.4 145.8 - --------------------------------------------------------------------------------------------------------------------- Total Capital [$Billions] $ 8.48 $ 8.53 $ 8.36 $ 8.23 $ 7.54 Total Shareholders' Equity [$Billions] $ 3.04 $ 2.92 $ 2.81 $ 2.70 $ 2.59 - --------------------------------------------------------------------------------------------------------------------- Client Assets [$Billions] $ 452.4 $ 423.0 $ 377.2 $ 384.2 $ 367.1 Assets Under Management [$Billions] $ 73.4 $ 68.8 $ 59.5 $ 60.0 $ 63.0 Money Market Funds 39.0 34.5 33.5 33.2 34.7 Long Term Mutual Funds 17.1 17.4 14.2 14.7 14.2 Institutional and Other 17.3 16.9 11.8 12.1 14.1 Wrap Fee Assets [$Billions] $ 53.9 $ 47.0 $ 37.5 $ 37.9 $ 34.4 - --------------------------------------------------------------------------------------------------------------------- Client Assets on "The Edge" [$Billions] ** $ 165.5 $ 140.2 $ 99.4 $ 89.4 $ 73.8 Households on "The Edge" ** 208,300 175,600 124,000 102,500 86,000 RMA Accounts *** 669,500 625,000 591,900 558,800 530,900 - --------------------------------------------------------------------------------------------------------------------- Recurring Fees (YTD Annualized) $ 1,372 $ 1,148 $ 1,124 $ 1,091 $ 1,047 [$Millions] Recurring Fees (Incl. Margin Interest) - As a % of Fixed Costs 109% 102% 100% 98% 95% - --------------------------------------------------------------------------------------------------------------------- Employees 20,008 19,620 18,988 18,452 18,051 Financial Advisors 7,608 7,576 7,249 7,118 7,033 Sales Offices 318 315 309 307 305
* Excludes the effect of the unamortized discount of $59.9 million charged to equity resulting from the redemption of preferred stock ** Paine Webber's client on-line service *** Paine Webber's central asset account -----END PRIVACY-ENHANCED MESSAGE-----