-----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, UOIqpTlNzSNY5CoeCx3MNV4Wd5gWLhKxuHVehGhHpbj0PoBg3leV4sJ5uPjr3+0Q 6ZqRcKcBHXaQ01qZWveEoA== 0000950123-99-009301.txt : 19991018 0000950123-99-009301.hdr.sgml : 19991018 ACCESSION NUMBER: 0000950123-99-009301 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990713 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19991014 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: 99728107 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 12, 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 October 12, 1999, the Registrant released financial information with respect to the three and nine month periods ending September 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 nine month periods ending September 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: October 13, 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 nine month periods ending September 30, 1999 EX-99.1 2 COPY OF REGISTRANT'S PRESS RELEASE 1 [PAINE WEBBER LETTERHEAD] EXHIBIT 99.1 PAINE WEBBER GROUP REPORTS THIRD QUARTERS EARNINGS RESULTS - NET INCOME RISES TO $138.2 MILLION, A 66.7 PERCENT INCREASE FROM Q3 1998 - - EARNINGS PER SHARE AT $0.86 - NEW YORK, October 12, 1999 - Paine Webber Group Inc. reported today quarterly earnings for the third quarter of 1999. Net income for the period ended September 30, 1999, was $138.2 million, or $0.86 per diluted share, an increase of 66.7 percent from $82.9 million, or $0.51 per diluted share, for the third quarter of 1998. Net revenues for the third quarter of 1999 were $1.237 billion, an increase of 19.9 percent from $1.031 billion in the corresponding period a year ago. Return on common equity for the quarter was 19.2 percent, compared with 14.0 percent for the year-ago period. As of September 30, 1999, the firm had total capital of $8.36 billion, an all-time high. "We are pleased to report another quarter of strong earnings, with results for the first nine months of 1999 exceeding the full twelve months results of the previous record year," said Donald B. Marron, PaineWebber's chairman and chief executive officer. "Particularly encouraging was the progress made in the enhancement of our technology-based services that together with the high-quality advice we offer affluent clients, provide PaineWebber with clear differentiation. This strategy, coupled with the growth of our distribution force, should continue to fuel significant asset growth and increased revenues in the years ahead." Among the highlights in the quarter are the following, with percentage increases from the third quarter of 1998 in parentheses: - - Recurring fee income, annualized, of $1.124 billion, a record (24 percent increase) - - Ratio of recurring fees and net margin interest to fixed expenses at 100 percent, a record - - Asset management revenues of $235.7 million, a record (28 percent increase) - - Number of financial advisors at 7,249 2 Paine Webber Group Inc. Page 2 The following measurements, all of which are records, reflect the continued financial strengthening of the firm: - - Shareholders' equity at $2.81 billion - - Total capital at $8.36 billion - - Book value at $19.36 Among the operating highlights are the following: - - PaineWebber has introduced PaineWebber InsightOne, an asset-based fee account that offers clients a pricing alternative and a conduit to all of the firm's technology and services, including unlimited online trading. This combination of a personal financial advisor with a robust suite of online services is intended to appeal to affluent investors, and is a continuation of the firm's strategy to accelerate asset gathering. InsightOne requires minimum assets of $100,000 at a minimum fee of $1,500 per year. - - Mitchell Hutchins Asset Management, the firm's investment management subsidiary, introduced a new mutual fund, the PaineWebber Strategy Fund, based on the firm's Highlighted Stocks list. - - During the third quarter of 1999, use of PaineWebber EDGE reached 124,000 client households, representing almost $100 billion in assets. EDGE assets have grown at a compounded annual growth rate of 167 percent since the EDGE was introduced in the first quarter of 1997, specifically: 1999 ---- Jun Jul Aug Sept ---------------------------------- EDGE Client Assets ($b) 89.4 93.7 97.9 99.4 EDGE Households (000s) 102 110 114 124 Assets per EDGE Household ($000s) 872 849 856 802 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: 3 Paine Webber Group Inc. Page 3 - - Consistent with the firm's focus on the highest level of service for fee- based accounts, PaineWebber EDGE, the online client service, introduced the Managed Accounts Online Center which provides advanced, online performance reporting for managed account clients. This service, unique among full-service brokers, will allow clients to monitor portfolio performance for multiple managed accounts across monthly, quarterly, six-month and year-to-date time periods, and review asset allocations and profiles and market reports of individual money managers. - - Customization of PaineWebber EDGE information by individual clients is another important feature. Clients can now select from a variety of market data to customize home screens and content, easily accessing their investment portfolios, various market indexes, and personal stock selections, with valuations supplied on a real time basis. Paine Webber Group Inc., together with its subsidiaries, serves the investment and capital needs of a worldwide client base. The firm employs 18,988 people in 309 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. QUARTERLY STATISTICAL SUPPLEMENT - OPERATING RESULTS [UNAUDITED] 3Q 99 2Q 99 1Q 99 4Q 98 3Q 98 ROE Common (Annualized) 19.2% 23.8% 24.6% 16.3% 14.0% Income Before Taxes & Minority Interest as a Percentage of Net Revenues 18.3% 20.0% 20.2% 15.2% 13.4% - ----------------------------------------------------------------------------------------------------------------------------- E.P.S. [Diluted] $0.86 $1.02 $1.01 $0.63 $0.51 Diluted Shares [Millions] 153.9 155.0 153.7 150.9 151.4 Dividends Paid Per Common Share $0.11 $0.11 $0.11 $0.11 $0.11 Book Value Per Common Share $19.36 $18.58 $17.77 $16.76 $15.86 Common Shares Outstanding [Millions] 145.2 145.4 145.8 145.5 142.8 - ----------------------------------------------------------------------------------------------------------------------------- Total Capital [$Billions] $8.36 $8.23 $7.54 $7.28 $6.64 Total Shareholders' Equity [$Billions] $2.81 $2.70 $2.59 $2.44 $2.26 - ----------------------------------------------------------------------------------------------------------------------------- Assets Under Control [$Billions] $377.2 $384.2 $367.1 $351.7 $313.2 Assets Under Management [$Billions] $59.5 $60.0 $63.0 $58.5 $54.1 Money Market Funds 33.5 33.2 34.7 31.4 29.9 Long Term Mutual Funds 14.2 14.7 14.2 13.8 12.5 Institutional and Other 11.8 12.1 14.1 13.3 11.7 Wrap Fee Assets [$Billions] $37.5 $37.9 $34.4 $30.6 $24.7 - ----------------------------------------------------------------------------------------------------------------------------- Client Assets on "The Edge" [$Billions]* $99.4 $89.4 $73.8 $60.1 $44.8 Households on "The Edge"* 124,000 102,500 86,000 71,000 59,000 RMA Accounts** 591,900 558,800 530,900 501,900 475,200 - ----------------------------------------------------------------------------------------------------------------------------- Recurring Fees (YTD Annualized) $1,124 $1,091 $1,047 $921 $908 [$Millions] Recurring Fees (Incl. Margin Interest) - As a % of Fixed Costs 100% 98% 95% 91% 93% - ----------------------------------------------------------------------------------------------------------------------------- Employees 18,988 18,452 18,051 17,767 17,424 Financial Advisors 7,249 7,118 7,033 6,951 6,739 Sales Offices 309 307 305 303 299
* Paine Webber's client on-line service ** Paine Webber's central asset account 5
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, 1999 1998 1999 1998 --------------------------------- ---------------------------------- REVENUES Commissions $ 451,341 $ 410,832 $ 1,419,092 $ 1,221,050 Principal Transactions 235,914 148,453 829,968 669,562 Asset Management 235,712 184,691 666,250 525,555 Investment Banking 134,235 119,629 420,321 421,285 Interest 762,205 909,168 2,289,636 2,572,253 Other 40,785 36,375 129,213 104,836 -------------- ---------------- --------------- --------------- TOTAL REVENUES 1,860,192 1,809,148 5,754,480 5,514,541 Interest Expense 623,025 777,672 1,854,515 2,205,920 -------------- ---------------- --------------- --------------- NET REVENUES 1,237,167 1,031,476 3,899,965 3,308,621 -------------- ---------------- --------------- --------------- NON-INTEREST EXPENSES Compensation and Benefits 711,783 616,927 2,260,575 1,949,590 Office & Equipment 89,159 76,170 259,941 223,572 Communications 42,331 38,791 127,179 113,687 Business Development 30,861 27,568 83,262 75,937 Brokerage, Clearing & Exchange Fees 23,391 24,270 71,268 71,847 Professional Services 33,469 30,581 96,318 94,563 Other Expenses 80,188 78,570 240,751 230,632 -------------- ---------------- --------------- --------------- TOTAL NON-INTEREST EXPENSES 1,011,182 892,877 3,139,294 2,759,828 -------------- ---------------- --------------- --------------- INCOME BEFORE INCOME TAXES & MINORITY INTEREST 225,985 138,599 760,671 548,793 Provision for Income Taxes 79,722 47,646 274,183 191,482 -------------- ---------------- --------------- --------------- INCOME BEFORE MINORITY INTEREST 146,263 90,953 486,488 357,311 Minority Interest 8,061 8,061 24,183 24,183 -------------- ---------------- --------------- --------------- NET INCOME $ 138,202 $ 82,892 $ 462,305 $ 333,128 ============== ================ =============== =============== NET INCOME APPLICABLE TO COMMON SHARES $ 132,253 $ 76,980 $ 444,458 $ 315,393 EARNINGS PER SHARE BASIC $ 0.91 $ 0.54 $ 3.05 $ 2.25 DILUTED $ 0.86 $ 0.51 $ 2.88 $ 2.10 WEIGHTED AVERAGE COMMON SHARES BASIC 145,634,000 141,323,000 145,583,000 140,154,000 DILUTED 153,858,000 151,357,000 154,107,000 150,538,000
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