-----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, S5P4G67Qms/kuVMSYNPveiY7UnVL0LPoaOUTbg8naBmW91B//HxkjKjC83BdZvx9 dQYsYlE8tvR2QVx9/7V3Og== 0000950123-99-006587.txt : 19990719 0000950123-99-006587.hdr.sgml : 19990719 ACCESSION NUMBER: 0000950123-99-006587 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990713 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990716 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: 99665790 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) July 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 July 13, 1999, the Registrant released financial information with respect to the three and six month periods ending June 30, 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 and six month periods ending June 30, 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: July 16, 1999 4 EXHIBIT INDEX Item No. Description - -------- ----------- 99.1 Copy of Registrant's press release which, among other things, reported results for the three and six month periods ending June 30, 1999 EX-99.1 2 COPY OF REGISTRANT'S PRESS RELEASE 1 Exhibit 99.1 [PAINE WEBBER LOGO] - -------------------------------------------------------------------------------- N E W S R E L E A S E - -------------------------------------------------------------------------------- FOR IMMEDIATE RELEASE --------------------- PAINE WEBBER GROUP REPORTS ALL-TIME RECORD QUARTERLY EARNINGS - --Net income rises to $163.5 million, a 26 percent increase from Q2 1998-- --Earnings per share at $1.02-- NEW YORK, July 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 June 30, 1999, was $163.5 million, or $1.02 per diluted share, an increase of 26 percent from $129.5 million, or $0.82 per diluted share, for the second quarter of 1998. Net revenues for the second quarter of 1999 were $1.35 billion, an increase of 16 percent from $1.16 billion in the corresponding period a year ago. Return on common equity for the quarter was 23.8 percent, compared with 23.7 percent for the year-ago period. As of June 30, 1999, the firm had total capital of $8.23 billion, an all-time high. "We are pleased to report another quarter of record earnings, which reflect continued strong momentum across all individual and institutional businesses," said Donald B. Marron, PaineWebber's chairman and chief executive officer. "Significant progress was also made in the development and implementation of the firm's online strategy. Our goal is to provide affluent clients as well as emerging investors with an increasingly comprehensive menu of services aimed at enhancing their investment experience at PaineWebber." Among the records in the quarter are the following, with percentage increases from the second quarter of 1998 in parentheses: - - Net revenues of $1.35 billion (16 percent increase) - - Commission income of $488.9 million (22 percent increase) - - Asset management revenues of $224.5 million (23 percent increase) 2 Paine Webber Group Inc. Page 2 - - Assets under control of $384.2 billion (17 percent increase) - - Wrap fee assets of $37.9 billion (43 percent increase) - - Recurring fee income, annualized, of $1.09 billion (23 percent increase) - - Ratio of recurring fees and net margin interest to fixed expenses at 98 percent - - Number of financial advisors at 7,118 The following measurements, which are also records, reflect the continued financial strengthening of the firm: - - Shareholders' equity at $2.7 billion - - Total capital at $8.23 billion - - Book value at $18.58 Among the operational highlights are the following: - - The Municipal Securities Group achieved the No. 1 industry ranking in negotiated senior underwritings, the third consecutive quarter of top industry performance. - - Strong performance by the firm's institutional businesses, led by Global Fixed Income, contributed significantly to the overall results. - - The firm's newly formed Japanese joint venture, Yasuda Paine Webber Mutual Fund Company raised $200 million in the start up of the Falcon Fund, the largest new bond fund in the Japanese market thus far in 1999. Online and Technology Initiatives - --------------------------------- The firm continues to enhance the relationships between its financial advisors and its clients, and provide more choices to a new generation of investors, through online technology. Among the current accomplishments and initiatives: 2 3 Paine Webber Group Inc. Page 3 - - The firm has released versions 3.0 of the PaineWebber EDGE, its online client service, adding enhanced download capabilities, new graphs and a bold clear look. Online investing will be available through the EDGE in the third quarter of 1999. - - During the second quarter of 1999, use of PaineWebber EDGE reached 102,000 client households, representing almost $90 billion in assets. EDGE assets have grown at a compounded annual growth rate of 150 percent since the EDGE was introduced in the first quarter of 1997, specifically: 1999 ---- Jan Feb Mar Apr. May Jun. --------------------------------------- EDGE Client Assets ($b) 64.7 68.5 73.8 80.5 84.1 89.4 EDGE Households ($000s) 76 80 86 94 98 102 Assets per EDGE households ($000s) 853 853 861 857 850 872 - - PaineWebber has completed the rollout of ConsultWorks, the firm's new financial advisor workstation. ConsultWorks enables financial advisors to access and navigate a broad range of applications including performance management, client account inquiry, portfolio management, proprietary research, Internet access, e-mail and financial planning tools. The online capabilities of the ConsultWorks platform will allow financial advisors to deliver customized information and recommendations to clients faster and more efficiently 24 hours a day. - - In July of 1999, Painewebber will launch its InfoNet system, a browser based content server for the Private Client Group. InfoNet will provide financial advisors easy access to an electronic catalogue of sales and marketing documents, processing guides, online forms and client prospecting materials all in a presentation format that can be downloaded and customized. - - A new state-of-the-art trading floor for Global Equities was completed in the second quarter and is now in full operation. Paine Webber Group Inc., together with its subsidiaries, serves the investment and capital needs of a worldwide client base. The firm employs 18,452 people in 307 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 4 PAINE WEBBER GROUP INC. CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS EXCEPT SHARE AND PER SHARE AMOUNTS) (UNAUDITED)
Quarter Ended June 30, Six Months Ended June 30, 1999 1998 1999 1998 --------------------------- ------------------------- REVENUES Commissions $488,878 $402,094 $967,751 $810,218 Principal Transactions 279,846 244,146 594,054 521,109 Asset Management 224,487 182,128 430,538 340,864 Investment Banking 160,133 176,687 286,086 301,656 Interest 770,271 860,707 1,527,431 1,663,085 Other 47,363 34,521 88,428 68,461 ------------ ------------ ------------ ------------ TOTAL REVENUES 1,970,978 1,900,283 3,894,288 3,705,393 Interest Expense 623,071 738,115 1,231,490 1,428,248 ------------ ------------ ------------ ------------ NET REVENUES 1,347,907 1,162,168 2,662,798 2,277,145 ------------ ------------ ------------ ------------ NON-INTEREST EXPENSES Compensation and Benefits 780,078 682,088 1,548,792 1,332,663 Office & Equipment 89,330 74,862 170,782 147,402 Communications 42,645 37,140 84,848 74,896 Business Development 28,534 26,290 52,401 48,369 Brokerage, Clearing & Exchange Fees 23,487 22,081 47,877 47,577 Professional Services 32,397 30,390 62,849 63,982 Other Expenses 81,769 77,318 160,563 152,062 ------------ ------------ ------------ ------------ TOTAL NON-INTEREST EXPENSES 1,078,240 950,169 2,128,112 1,866,951 ------------ ------------ ------------ ------------ INCOME BEFORE INCOME TAXES & MINORITY INTEREST 269,667 211,999 534,686 410,194 Provision for Income Taxes 98,102 74,437 194,461 143,836 ------------ ------------ ------------ ------------ INCOME BEFORE MINORITY INTEREST 171,565 137,562 340,225 266,358 Minority Interest 8,061 8,061 16,122 16,122 ------------ ------------ ------------ ------------ NET INCOME $163,504 $129,501 $324,103 $250,236 ============ ============ ============ ============ NET INCOME APPLICABLE TO COMMON SHARES $157,555 $123,589 $312,205 $238,413 EARNINGS PER SHARE BASIC $1.08 $0.88 $2.14 $1.71 DILUTED $1.02 $0.82 $2.02 $1.59 WEIGHTED AVERAGE COMMON SHARES BASIC 145,743,000 140,033,000 145,632,000 139,610,000 DILUTED 154,960,000 151,162,000 154,306,000 150,178,000
4 5
PAINE WEBBER GROUP INC. QUARTERLY STATISTICAL SUPPLEMENT - OPERATING RESULTS [UNAUDITED] 2Q 99 1Q 99 4Q 98 3Q 98 2Q 98 ROE Common (Annualized) 23.8% 24.6% 16.3% 14.0% 23.7% Income Before Taxes & Minority Interest as a Percentage of Net Revenues 20.0% 20.2% 15.2% 13.4% 18.2% - ------------------------------------------------------------------------------------------------------------ E.P.S. [Diluted] $1.02 $1.01 $0.63 $0.51 $0.82 Diluted Shares [Millions] 155.0 153.7 150.9 151.4 151.2 Dividends Paid Per Common Share $0.11 $0.11 $0.11 $0.11 $0.11 Book Value Per Common Share $18.58 $17.77 $16.76 $15.86 $15.38 Common Shares Outstanding [Millions] 145.4 145.8 145.5 142.8 140.6 - ------------------------------------------------------------------------------------------------------------ Total Capital [$Billions] $8.23 $7.54 $7.28 $6.64 $6.56 Total Shareholders' Equity [$Billions] $2.70 $2.59 $2.44 $2.26 $2.16 - ------------------------------------------------------------------------------------------------------------ Assets Under Control [$Billions] $384.2 $367.1 $351.7 $313.2 $329.3 Assets Under Management [$Billions] $60.0 $63.0 $58.5 $54.1 $54.7 Money Market Funds 33.2 34.7 31.4 29.9 28.6 Long Term Mutual Funds 14.7 14.2 13.8 12.5 13.2 Institutional and Other 12.1 14.1 13.3 11.7 12.9 Wrap Fee Assets [$Billions] $37.9 $34.4 $30.6 $24.7 $26.5 - ------------------------------------------------------------------------------------------------------------ Client Assets on "The Edge" [$Billions] $89.4 $73.8 $60.1 $44.8 $36.9 * Households on "The Edge"* 102,500 86,000 71,000 59,000 51,000 RMA Accounts ** 558,800 530,900 501,900 475,200 457,300 - ------------------------------------------------------------------------------------------------------------ Recurring Fees (YTD Annualized) $1,091 $1,047 $921 $908 $886 [$Millions] Recurring Fees (Incl. Margin Interest) - As a % of Fixed Costs 98% 95% 91% 93% 94% - ------------------------------------------------------------------------------------------------------------ Employees 18,452 18,051 17,767 17,424 17,045 Financial Advisors 7,118 7,033 6,951 6,739 6,551 Sales Offices 307 305 303 299 300
* Paine Webber's client on-line service ** Paine Webber's central asset account 5 -----END PRIVACY-ENHANCED MESSAGE-----