-----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, IvXplHo5uCVNaJGQiYTGAro3jEdV4znNH8i+IHBGEp7SdwsA40MY+/cCF3XykPYq Dzifn+7yUYAO8bUlw+cdrw== 0000950123-99-000269.txt : 19990120 0000950123-99-000269.hdr.sgml : 19990120 ACCESSION NUMBER: 0000950123-99-000269 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990119 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990119 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: 99508292 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) January 19, 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 January 19, 1999, the Registrant released financial information with respect to the year and three month period ending December 31, 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 year and three month period ending December 31, 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: January 19, 1999 4 EXHIBIT INDEX Item No. Description - -------- ----------- 99.1 Copy of Registrant's press release which, among other things, reported results for year and three month period ending December 31, 1998 EX-99.1 2 COPY OF REGISTRANT'S PRESS RELEASE 1 Exhibit 99.1 PaineWebber - ------------------------------------------------------------------------------- N E W S R E L E A S E - ------------------------------------------------------------------------------- PAINE WEBBER GROUP REPORTS RECORD RESULTS FOR 1998 -- 1998 EARNINGS PER SHARE OF $2.72; NET INCOME RISES TO $433.6 MILLION -- -- THIRD CONSECUTIVE YEAR OF RECORD EARNINGS FOR FIRM -- NEW YORK, January 19, 1999 -- Paine Webber Group Inc. announced today record financial results for fiscal 1998. Net income was $433.6 million, or $2.72 per diluted share, for the year ended December 31, 1998, compared with net income of $415.4 million, or $2.56 per diluted share for fiscal 1997. Revenues, including net interest, for 1998 were $4.4 billion, an increase of 7 percent from $4.1 billion the previous year. For the fourth quarter ended December 31, 1998, net income was $100.4 million, or $0.63 per diluted share, compared with $108.7 million, or $0.68 per diluted share, in the corresponding period a year ago. Revenues, including net interest, were $1.10 billion, compared with $1.07 billion in the fourth quarter of 1997. Return on common equity was 16.3 percent for the quarter, compared with 22.3 percent for the year-ago period. "We are pleased to report the third consecutive year of record earnings for PaineWebber," said Donald B. Marron, PaineWebber's chairman and chief executive officer. "Our 1998 revenues, the highest in the firm's 119-year history, reflect strength across all business lines and include record results in commissions, asset management and investment banking. These results were achieved despite a downturn in world markets during the third quarter, and reflect the firm's commitment to a consistent business strategy, domestic focus and conservative risk profile. "As we prepare for the new century, we are confident that our determination to offer the best quality advice to investors, together with our strong brand name, will be increasingly valuable in a crowded marketplace," Mr. Marron said. "At the same time, we will focus on developing businesses with the highest potential for growth to drive continued performance success and strong returns for our shareholders." 2 Paine Webber Group Inc. Page 2 Among the highlights: - - Assets under control, a key measure of the firm's asset gathering strategy, reached $352 billion, a record, and an increase of 18 percent from $297 billion a year ago. Assets under control have grown at an annual compound rate of 20.4 percent for the last five years. - - Assets under management reached $58.5 billion, a record, and an increase of nearly 20 percent from 1997. Sales of mutual funds by Mitchell Hutchins, the firm's asset management subsidiary, reached the highest levels in five years, increasing by 71 percent from 1997. - - Wrap fee assets, a main component of the strategy of developing fee-based assets, were $30.6 billion, a record, and an increase of 43 percent from a year ago. - - Recurring fee income, a reflection of the quality of the firm's revenue stream, reached an all-time high of $921 million, an increase of 32 percent from 1997. - - In December Paine Webber announced a joint venture with the Yasuda Mutual Life Insurance Company to develop, sponsor and manage mutual funds in Japan. - - At year-end, the firm employed 6,951 investment executives, an all-time high, and an increase of 11 percent from a year ago. - - The Municipal Securities Group achieved the No. 1 industry ranking for the fourth quarter in negotiated senior underwritings, and was No. 2 for the full year 1998. - - The firm's overall financial strength improved significantly in 1998 from a year ago, with record levels in the following: book value per common share of $16.76, an increase of 21.4 percent; total capital of $7.28 billion, an increase of 23.2%; and total shareholders' equity of $2.44 billion, an increase of 26.4 percent. Paine Webber Group Inc., together with its subsidiaries, serves the investment and capital needs of a worldwide client base. The firm employs 17,767 people in 303 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 - 3 PAINE WEBBER GROUP INC. QUARTERLY STATISTICAL SUPPLEMENT - OPERATING RESULTS [UNAUDITED]
4Q 98 3Q 98 2Q 98 1Q 98 4Q 97 - ------------------------------------------------------------------------------------------------------------------------ ROE Common 16.3% 14.0% 23.7% 23.5% 22.3% Income Before Taxes & Minority Interest as a Percentage of Net Revenue 15.2% 13.4% 18.2% 17.8% 16.4% - ------------------------------------------------------------------------------------------------------------------------ E.P.S. [Diluted] $0.63 $0.51 $0.82 $0.77 $0.68 Diluted Shares [Millions] 150.9 151.4 151.2 149.5 150.9 Dividends Paid Per Common Share $0.11 $0.11 $0.11 $0.11 $0.11 Book Value Per Common Share $16.76 $15.86 $15.38 $14.46 $13.80 Common Shares Outstanding [Millions] 145.5 142.8 140.6 139.3 139.9 - ------------------------------------------------------------------------------------------------------------------------ Total Capital [$Billions] $7.28 $6.64 $6.56 $6.14 $5.91 Total Shareholders' Equity [$Billions] $2.44 $2.26 $2.16 $2.02 $1.93 - ------------------------------------------------------------------------------------------------------------------------ Assets Under Control [$Billions] $351.7 $313.2 $329.3 $322.6 $297.1 Assets Under Management [$Billions] $58.5 $54.1 $54.7 $54.0 $48.9 Money Market Funds 31.4 29.9 28.6 29.0 25.9 Long Term Mutual Funds 13.8 12.5 13.2 12.4 11.3 Institutional and Other 13.3 11.7 12.9 12.6 11.7 Wrap Fee Assets [$Billions] $30.6 $24.7 $26.5 $24.8 $21.4 - ------------------------------------------------------------------------------------------------------------------------ Recurring Fees (YTD Annualized) $921 $908 $886 $836 $700 [$Millions] Recurring Fees (Incl. Margin Interest) - As a % of Fixed Costs 91% 93% 94% 86% 84% - ------------------------------------------------------------------------------------------------------------------------ Employees 17,767 17,424 17,045 16,828 16,627 Investment Executives 6,951 6,739 6,551 6,401 6,249 Sales Offices 303 299 300 299 299 - ------------------------------------------------------------------------------------------------------------------------
4 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, 1998 1997 1998 1997 ------------ ------------ ------------ ------------ REVENUES Commissions $ 420,233 $ 392,284 $ 1,641,283 $ 1,496,791 Principal Transactions 199,245 254,611 868,807 1,055,648 Asset Management 188,015 154,753 713,570 542,755 Investment Banking 109,687 122,875 530,972 460,001 Interest 780,455 786,469 3,352,708 2,963,124 Other 37,406 34,044 142,242 138,633 ------------ ------------ ------------ ------------ TOTAL REVENUES 1,735,041 1,745,036 7,249,582 6,656,952 Interest Expense 638,548 675,351 2,844,468 2,544,550 ------------ ------------ ------------ ------------ NET REVENUES 1,096,493 1,069,685 4,405,114 4,112,402 ------------ ------------ ------------ ------------ NON-INTEREST EXPENSES Compensation and Benefits 651,774 631,935 2,601,364 2,420,296 Office & Equipment 78,273 69,367 301,845 275,532 Communications 40,585 39,233 154,272 153,285 Business Development 27,350 23,115 103,287 82,099 Brokerage, Clearing & Exchange Fees 25,583 20,678 97,430 86,808 Professional Services 28,702 37,143 123,265 129,066 Other Expenses 78,012 72,910 308,644 292,209 ------------ ------------ ------------ ------------ TOTAL NON-INTEREST EXPENSES 930,279 894,381 3,690,107 3,439,295 ------------ ------------ ------------ ------------ INCOME BEFORE INCOME TAXES & MINORITY INTEREST 166,214 175,304 715,007 673,107 Provision for Income Taxes 57,726 58,535 249,208 228,626 ------------ ------------ ------------ ------------ INCOME BEFORE MINORITY INTEREST 108,488 116,769 465,799 444,481 Minority Interest 8,061 8,061 32,244 29,032 ------------ ------------ ------------ ------------ NET INCOME $ 100,427 $ 108,708 $ 433,555 $ 415,449 ============ ============ ============ ============ NET INCOME APPLICABLE TO COMMON SHARES $ 94,515 $ 101,330 $ 409,908 $ 385,936 EARNINGS PER SHARE BASIC $ 0.66 $ 0.75 $ 2.91 $ 2.84 DILUTED $ 0.63 $ 0.68 $ 2.72 $ 2.56 WEIGHTED AVERAGE COMMON SHARES BASIC 143,074,000 134,559,000 140,864,000 135,943,000 DILUTED 150,920,000 150,925,000 150,611,000 153,348,000
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