-----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, KNZPsuz3q8OwYBH2xJ/hrkh3zbWUQg9J+K371OYTpjXyJyxqGzhP28eALatHYN4l Y5g0o2bT90q+MRYC4OXRow== 0000950123-98-008951.txt : 19981014 0000950123-98-008951.hdr.sgml : 19981014 ACCESSION NUMBER: 0000950123-98-008951 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981013 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19981013 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: SEC FILE NUMBER: 001-07367 FILM NUMBER: 98724687 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) October 13, 1998 ---------------------- 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 October 13, 1998, the Registrant released financial information with respect to the three month and nine month periods ending September 30, 1998. 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 months and nine months period ended September 30, 1998. 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: October 13, 1998 4 EXHIBIT INDEX Item No. Description - -------- ----------- 99.1 Copy of Registrant's press release which, among other things, reported results for three months and nine months period ending September 30, 1998 EX-99.A 2 PRESS RELEASE 1 Exhibit 99.1 PaineWebber - ------------------------------------------------------------------------------- N E W S R E L E A S E - ------------------------------------------------------------------------------- PAINE WEBBER GROUP REPORTS QUARTERLY EARNINGS NEW YORK, October 13, 1998 -- Paine Webber Group Inc. reported today net income of $82.9 million, or $0.51 per diluted share, for the quarter ended September 30, 1998, compared with $112.8 million, or $0.70 per diluted share, for the third quarter of 1997. Net revenues for the third quarter of 1998 were $1.031 billion, compared with $1.082 billion in the corresponding period a year ago, a decline of 4.7 percent. For the nine months ended September 30, 1998, net income was $333.1 million, a record, compared with $306.7 million in the corresponding period in 1997. Net revenues for the first nine months of 1998 were $3.309 billion, also a record, and an increase of 8.7 percent from the year-ago period. Commissions and asset management revenues for the quarter reached record levels. Commissions totaled $410.8 million, an increase of 6.1 percent from the third quarter of 1997, and asset management revenues were $184.7 million, an increase of 30.3 percent from the corresponding period a year ago. As of September 30, 1998, the firm had total capital of $6.64 billion, up from $5.73 billion a year ago. Recurring fee income, an indicator of the stability and quality of the firm's revenue stream, reached $908 million for the first nine months of 1998, annualized, an increase of 36.5 percent from the corresponding period in 1997. The ratio of recurring fee income, combined with net margin interest, to fixed expenses reached 93 percent, up from 80 percent a year ago. "We are pleased with our results, which reflect the soundness of the firm's domestic focus and asset-gathering strategy during the recent period of volatility in the global financial markets," said Donald B. Marron, PaineWebber's chairman and chief executive officer. "The value of our distribution network and strong client relationships were significant contributing factors to our performance during the quarter and our record nine-month results. We are confident that PaineWebber will continue to benefit from the long-term demographic and economic trends in the United States, providing clients with quality research and tailored advice, while maintaining a conservative risk profile." 2 Paine Webber Group Inc. October 13, 1998 Page 2 Paine Webber Group Inc., together with its subsidiaries, serves the investment and capital needs of a worldwide client base. The firm employs 17,424 people in 299 offices. As of September 30, 1998, the book value per share was $15.86. 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-- 3 PAINE WEBBER GROUP INC. QUARTERLY STATISTICAL SUPPLEMENT - OPERATING RESULTS [UNAUDITED]
3Q 98 2Q 98 1Q 98 4Q 97 3Q 97 - ------------------------------------------------------------------------------------------------------------------------ ROE Common 14.0% 23.7% 23.5% 22.3% 24.3% Income Before Taxes & Minority Interest as a Percentage of Net Revenue 13.4% 18.2% 17.8% 16.4% 16.8% - ------------------------------------------------------------------------------------------------------------------------ E.P.S. [Diluted] $0.51 $0.82 $0.77 $0.68 $0.70 Diluted Shares [Millions] 151.4 151.2 149.5 150.9 152.1 Dividends Paid Per Common Share $0.11 $0.11 $0.11 $0.11 $0.10 Book Value Per Common Share $15.86 $15.38 $14.46 $13.80 $13.28 Common Shares Outstanding [Millions] 142.8 140.6 139.3 139.9 132.3 - ------------------------------------------------------------------------------------------------------------------------ Total Capital [$Billions] $6.64 $6.56 $6.14 $5.91 $5.73 Total Shareholders' Equity [$Billions] $2.26 $2.16 $2.02 $1.93 $1.86 - ------------------------------------------------------------------------------------------------------------------------ Assets Under Control [$Billions] $313.2 $329.3 $322.6 $297.1 $288.6 Assets Under Management [$Billions] $54.1 $54.7 $54.0 $48.9 $48.1 Money Market Funds 29.9 28.6 29.0 25.9 25.6 Long Term Mutual Funds 12.5 13.2 12.4 11.3 11.1 Institutional and Other 11.7 12.9 12.6 11.7 11.4 Wrap Fee Assets [$Billions] $24.7 $26.5 $24.8 $21.4 $20.5 - ------------------------------------------------------------------------------------------------------------------------ Recurring Fees (YTD Annualized) $908 $886 $836 $700 $665 [$Millions] Recurring Fees (Incl. Margin Interest) - As a % of Fixed Costs 93% 94% 86% 84% 80% - ------------------------------------------------------------------------------------------------------------------------ Employees 17,424 17,045 16,828 16,627 16,437 Investment Executives 6,739 6,551 6,401 6,249 6,140 Sales Offices 299 300 299 299 299 - ------------------------------------------------------------------------------------------------------------------------
4 PAINE WEBBER GROUP INC. CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS EXCEPT SHARE AND PER SHARE AMOUNTS) (UNAUDITED)
Quarter Ended September 30, Nine Months Ended September 30, 1998 1997 1998 1997 ------------ ------------ ------------ ------------ REVENUES Commissions $ 410,832 $ 387,210 $ 1,221,050 $ 1,104,507 Principal Transactions 148,453 289,276 669,562 801,037 Asset Management 184,691 141,707 525,555 388,002 Investment Banking 119,629 128,414 421,285 337,126 Interest 909,168 785,564 2,572,253 2,176,655 Other 36,375 32,285 104,836 104,589 ------------ ------------ ------------ ------------ TOTAL REVENUES 1,809,148 1,764,456 5,514,541 4,911,916 Interest Expense 777,672 682,513 2,205,920 1,869,199 ------------ ------------ ------------ ------------ NET REVENUES 1,031,476 1,081,943 3,308,621 3,042,717 ------------ ------------ ------------ ------------ NON-INTEREST EXPENSES Compensation and Benefits 616,927 640,113 1,949,590 1,788,361 Office & Equipment 76,170 69,341 223,572 206,165 Communications 38,791 38,083 113,687 114,052 Business Development 27,568 22,174 75,937 58,984 Brokerage, Clearing & Exchange Fees 24,270 22,068 71,847 66,130 Professional Services 30,581 35,107 94,563 91,923 Other Expenses 78,570 73,485 230,632 219,299 ------------ ------------ ------------ ------------ TOTAL NON-INTEREST EXPENSES 892,877 900,371 2,759,828 2,544,914 ------------ ------------ ------------ ------------ INCOME BEFORE INCOME TAXES & MINORITY INTEREST 138,599 181,572 548,793 497,803 Provision for Income Taxes 47,646 60,729 191,482 170,091 ------------ ------------ ------------ ------------ INCOME BEFORE MINORITY INTEREST 90,953 120,843 357,311 327,712 Minority Interest 8,061 8,061 24,183 20,971 ------------ ------------ ------------ ------------ NET INCOME $ 82,892 $ 112,782 $ 333,128 $ 306,741 ============ ============ ============ ============ NET INCOME APPLICABLE TO COMMON SHARES $ 76,980 $ 105,404 $ 315,393 $ 284,606 EARNINGS PER SHARE BASIC $ 0.54 $ 0.78 $ 2.25 $ 2.09 DILUTED $ 0.51 $ 0.70 $ 2.10 $ 1.88 WEIGHTED AVERAGE COMMON SHARES BASIC 141,323,000 134,302,000 140,154,000 136,423,000 DILUTED 151,357,000 152,098,000 150,538,000 154,183,000
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