-----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, CyGXXsmbXaXYzq1jYDTwgiUOcGSwuKEa8JGQWr61Ruz9VPhbprx/X7eh2wIVeEOM Vd7nccaPpwGJ23iaNSdPMw== 0000950123-97-002092.txt : 19970312 0000950123-97-002092.hdr.sgml : 19970312 ACCESSION NUMBER: 0000950123-97-002092 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970120 ITEM INFORMATION: Other events FILED AS OF DATE: 19970311 SROS: NYSE 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: 1934 Act SEC FILE NUMBER: 001-07367 FILM NUMBER: 97554801 BUSINESS ADDRESS: STREET 1: 1285 AVE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2127132000 FORMER COMPANY: FORMER CONFORMED NAME: PAINE WEBBER INC DATE OF NAME CHANGE: 19840523 8-K 1 FORM 8-K 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) January 20, 1997 ---------------- 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 PAINE WEBBER GROUP INC. Item 5 Other Events (a) Copy of the Registrant's press release which, among other things, reported financial results for 1996 and for the fourth quarter of 1996. 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/ REGINA DOLAN -------------------------- Regina Dolan Vice President and Chief Financial Officer Dated: March 11, 1997 3 EXHIBIT INDEX (a) Copy of the Registrant's press release which, among other things, reported results for 1996 and for the fourth quarter of 1996. EX-99.A 2 PRESS RELEASE 1 PAINEWEBBER Corporate Communications PaineWebber Incorporated 1285 Avenue of the Americas, 14th Floor New York, NY 10019-6028 (212) 713-8391 - -------------------------------------------------------------------------------- NEWS RELEASE - -------------------------------------------------------------------------------- FOR IMMEDIATE RELEASE Contact: Gus Carlson Paine Webber Group Inc. 212-713-8502 PAINE WEBBER GROUP REPORTS RECORD RESULTS FOR 1996 -ANNUAL EARNINGS PER SHARE OF $3.38; NET INCOME INCREASES TO $364 MILLION- -FOURTH QUARTER NET INCOME RISES BY MORE THAN 55 PERCENT; EPS OF $0.86- NEW YORK, January 20, 1997 - Paine Webber Group Inc. reported today record financial results for 1996. Net income was $364.4 million, or $3.38 per fully diluted common share, for the year ended December 31, 1996, compared with net income of $80.8 million, or $0.52 cents per fully diluted common share, for 1995, including a charge related to limited partnership investment issues. Revenues, including net interest, were $3,735 million for 1996, an increase of 11.5 percent from $3,350 million the previous year. For the fourth quarter ended December 31, 1996, net income was $91.5 million, or $0.86 per fully diluted common share, an increase of 55.6 percent from $58.8 million, or $0.50 per fully diluted common share, in the corresponding period a year ago. Revenues, including net interest, were $940.0 million, an increase of almost 6 percent from $887.7 million for the fourth quarter of 1995. Return on common equity was 21.2 percent for the quarter, compared with 19.6 percent for the year-ago period, excluding the special charge. Donald B. Marron, Paine Webber's chairman and chief executive officer, said the record performance for 1996 reflects the impact of strategic initiatives introduced during the last two years that have allowed the firm to reach new operating levels. "We are pleased with the consistency and improvement our 1996 results represent and we believe they reflect a great deal more than the firm's ability to prosper in a vigorous bull market," Mr. Marron said. "Our earnings of $364.4 million for 1996, which far surpassed those of any previous year, and our strong return on common equity of 21.9 percent are the results of our focus on building our franchise, leveraging our strengths and attaining the aggressive operational and performance goals we have identified as keys to our continued growth." -more- 2 Paine Webber Group Inc. Page 2 Mr. Marron said Paine Webber surpassed a number of strategic goals the firm set for 1996 in strengthening its distribution franchise, including the following: - - Assets under control, the key performance measure of the firm's asset-gathering strategy, grew to $245 billion at the end of 1996, an increase of 13 percent from the previous year and better than the goal of $240 million. - - Recurring fee income, a reflection of the improving quality of the firm's revenue stream, reached an all-time high of $571 million, an increase of 15 percent from the previous year and on target with the $570 million goal for the year. - - The number of producers, an important indicator of the firm's distribution capabilities, reached 7,400, exceeding the goal for the year. Producers include retail investment executives and institutional salespeople. Commissions reached an all-time high of nearly $1,381 million in 1996, an increase of 8.5 percent from 1995, the previous record year for commissions, reflecting the firm's success in achieving its strategic goals. Paine Webber also maintained its strong market share in equity trading, mortgage-backed securities and municipal underwriting, and achieved significant revenue gains in investment banking. "Our strategies support the firm's overall mission of building the assets of our clients, employees and shareholders," Mr. Marron said. "We are confident that these strategies will allow us to further leverage our strengths to assure consistent performance in the years ahead." Paine Webber Group Inc., together with its subsidiaries, serves the investment and capital needs of a worldwide client base. The firm employs 15,870 people in 298 offices. As of December 31, 1996, the book value per share was $18.28. -TWO TABLES TO FOLLOW- 3 PAINE WEBBER GROUP INC. CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS EXCEPT SHARE AND PER SHARE AMOUNTS) (UNAUDITED)
Quarter Ended December 31, Year Ended December 31, 1996 1995 1996 1995 -------------------------- -------------------------- REVENUES Commissions $ 344,422 $ 344,994 $ 1,381,475 $ 1,272,766 Principal Transactions 235,130 232,175 1,023,615 914,201 Asset Management 118,606 107,509 453,267 399,540 Investment Banking 113,947 94,397 391,164 326,777 Interest 624,206 563,327 2,309,737 2,256,750 Other 33,217 31,975 146,708 150,056 ------------ ------------ ------------ ------------ TOTAL REVENUES 1,469,528 1,374,377 5,705,966 5,320,090 Interest Expense 529,560 486,705 1,970,754 1,969,811 ------------ ------------ ------------ ------------ NET REVENUES 939,968 887,672 3,735,212 3,350,279 ------------ ------------ ------------ ------------ NON-INTEREST EXPENSES Compensation and Benefits 558,836 528,948 2,219,129 2,004,585 Office & Equipment 66,251 66,575 267,006 266,291 Communications 37,064 37,588 153,301 149,047 Business Development 20,760 22,394 75,981 90,752 Brokerage, Clearing & Exchange Fees 21,965 21,101 87,839 93,657 Professional Services 30,060 29,001 108,123 101,911 Other Expenses 63,256 103,262 263,800 541,359 ------------ ------------ ------------ ------------ TOTAL NON-INTEREST EXPENSES 798,192 808,869 3,175,179 3,247,602 ------------ ------------ ------------ ------------ INCOME BEFORE INCOME TAXES AND MINORITY INTEREST 141,776 78,803 560,033 102,677 Provision for Income Taxes 49,260 20,005 194,649 21,927 ------------ ------------ ------------ ------------ INCOME BEFORE MINORITY INTEREST 92,516 58,798 365,384 80,750 Minority Interest 1,034 -- 1,034 -- ------------ ------------ ------------ ------------ NET INCOME $ 91,482 $ 58,798 $ 364,350 $ 80,750 ============ ============ ============ ============ NET INCOME APPLICABLE TO COMMON SHARES $ 84,765 $ 52,155 $ 339,017 $ 54,781 EARNINGS PER SHARE PRIMARY $ 0.91 $ 0.52 $ 3.59 $ 0.54 FULLY DILUTED $ 0.86 $ 0.50 $ 3.38 $ 0.52 WEIGHTED AVERAGE COMMON SHARES PRIMARY 93,400,000 99,525,000 94,406,000 101,272,000 FULLY DILUTED 100,013,000 106,749,000 102,145,000 101,272,000
4 PAINE WEBBER GROUP INC. QUARTERLY STATISTICAL SUPPLEMENT - OPERATING RESULTS [UNAUDITED]
4Q 96 3Q 96 2Q 96 1Q 96 4Q 95 ----- ----- ----- ----- ----- ROE Common 21.2% 18.8% 22.7% 25.4% 19.6%* Pre-Tax Margin 15.0% 14.0% 14.8% 16.1% 12.3%* - ------------------------------------------------------------------------------------------- E.P.S. [fully diluted] $0.86 $0.75 $0.86 $0.92 $0.69* Fully Diluted Shares [Millions) 100.0 100.1 102.3 104.5 106.7* Dividends Paid Per Common Share $0.12 $0.12 $0.12 $0.12 $0.12 Book Value Per Common Share $18.28 $17.45 $16.89 $16.25 $15.62 Common Shares Outstanding [Millions] 93.0 92.3 93.0 94.0 97.1 - ------------------------------------------------------------------------------------------- Total Capital [$Billions] $4.90 $4.43 $4.36 $4.28 $4.18 Total Shareholders' Equity [$Billions] $1.73 $1.68 $1.62 $1.57 $1.55 - ------------------------------------------------------------------------------------------- Assets Under Control [$Billions] $244.7 $234.1 $228.2 $222.3 $216.3 Assets Under Management [$Billions] $44.8 $43.9 $44.4 $45.9 $43.7 Money Market Funds 22.9 22.2 21.7 22.6 20.6 Long Term Mutual Funds 9.4 9.2 9.0 9.0 8.6 Institutional and Other 12.5 12.5 13.7 14.3 14.5 Wrap Fee Assets [$Billions] $14.7 $13.5 $12.8 $11.9 $10.8 - ------------------------------------------------------------------------------------------- Recurring Fees (YTD Annualized) $571 $560 $553 $546 $498 [$Millions] Recurring Fees (Incl. Margin Interest) - As a % of Fixed Costs 73% 69% 68% 66% 68% - ------------------------------------------------------------------------------------------- Employees 15,870 15,715 15,775 15,800 15,900 Investment Executives 6,095 5,980 6,015 6,005 6,025 Sales Offices 298 299 302 305 310
*REFLECT OPERATING RESULTS EXCLUDING LIMITED PARTNERSHIP INVESTMENT CHARGE. -----END PRIVACY-ENHANCED MESSAGE-----