-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, iOi8IS3DxSEpkmgKd+sAxepbE2yCa8MYo/y1Yd2rf4UmH3B7YvgcRLachgjui9Qf JTCiATR56OuYDwn1vHgQsQ== 0000806085-95-000002.txt : 19950508 0000806085-95-000002.hdr.sgml : 19950508 ACCESSION NUMBER: 0000806085-95-000002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950105 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19950106 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: LEHMAN BROTHERS HOLDINGS INC CENTRAL INDEX KEY: 0000806085 STANDARD INDUSTRIAL CLASSIFICATION: 6211 IRS NUMBER: 133216325 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09466 FILM NUMBER: 95500514 BUSINESS ADDRESS: STREET 1: AMERICAN EXPRESS TWR STREET 2: 3 WORLD FINANCIAL CNTR CITY: NEW YORK STATE: NY ZIP: 10048 BUSINESS PHONE: 2125267000 MAIL ADDRESS: STREET 1: AMERICAN EXPRESS TOWER 15TH FL STREET 2: 2 WORLD TRADE CENTER CITY: NEW YORK STATE: NY ZIP: 10048 FORMER COMPANY: FORMER CONFORMED NAME: SHEARSON LEHMAN HUTTON HOLDINGS INC DATE OF NAME CHANGE: 19901017 8-K 1 8-K JANUARY 1995 - 10 - 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 5, 1995 LEHMAN BROTHERS HOLDINGS INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation) 1-9466 13-3216325 (Commission File Number) (IRS Employer Identification No.) 3 World Financial Center New York, New York 10285 (Address of principal (Zip Code) executive offices) Registrant's telephone number, including area code: (212) 526-7000 ________________________________________ Item 5. Other Events 1994 Fiscal Year End and Fourth Quarter Earnings On January 5, 1995, Lehman Brothers Holdings Inc. (the "Registrant") issued a press release with respect to its fourth quarter and year end 1994 earnings (the "Earnings Release"). Copies of the Earnings Release follow. Item 7. Financial Statements and Exhibits (c) Exhibits The following Exhibits are filed as part of this Report. 99.1 Press Release Relating to Fourth Quarter and 1994 Fiscal Year End Earnings 99.2 Selected Statistical Information 99.3 Consolidated Statement of Operations (Three Months Ended November 30, 1994) (Preliminary and Unaudited) 99.4 Consolidated Statement of Operations (Eleven Months Ended November 30, 1994) (Preliminary and Unaudited) The Exhibit Index to this Report is incorporated herein by reference. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized. LEHMAN BROTHERS HOLDINGS INC. By: ________________________ Robert Matza Chief Financial Officer (Principal Financial Officer) Date: January 6, 1995 EXHIBIT INDEX Exhibit No. Exhibit Exhibit 99.1 Press Release Relating to Fourth Quarter 1994 Earnings Exhibit 99.2 Selected Statistical Information Exhibit 99.3 Consolidated Statement of Operations (Three Months Ended November 30, 1994) (Preliminary and Unaudited) Exhibit 99.4 Consolidated Statement of Operations (Eleven Months Ended November 30, 1994) (Preliminary and Unaudited) Exhibit 99.1 For Immediate Release MEDIA CONTACT: Steven H. Faigen (212) 526-4379 INVESTOR CONTACT: Shaun Butler (212) 526-8381 LEHMAN BROTHERS REPORTS 1994 FISCAL YEAR END AND FOURTH QUARTER EARNINGS NEW YORK, January 5, 1995 _ Lehman Brothers Holdings Inc. (NYSE: LEH) today reported net income of $46 million or $0.32 per share of common stock for the fourth quarter ended November 30, 1994. By comparison, the Firm reported net income of $22 million for the third quarter of 1994 and $114 million for the fourth quarter of 1993. Lehman Brothers also reported net income of $113 million or $0.69 per share of common stock for the 11 months comprising its 1994 fiscal year. Net income attributable to the Lehman Businesses for the 12 months ended December 31, 1993 totaled $355 million. Richard S. Fuld, Jr., Chairman and Chief Executive Officer, said: "Despite a difficult business environment that has prevailed since early 1994, Lehman Brothers maintained its franchise positions in its core origination, trading and advisory businesses. The Firm also made considerable progress in executing its global business strategy." Net revenues for the fourth quarter (total revenues less interest expense) were $708 million versus $719 million in the third quarter of 1994 and $899 million in the fourth quarter of 1993. Principal transactions revenue continued to be adversely affected by market volatility and weaker customer volume in many product lines. Investment banking revenues reflected lower fixed income and equity origination activity offset, in part, by improved results from strategic advisory activities. Mr. Fuld continued: "Our fourth quarter results begin to show the impact of the year-long Firmwide effort to reduce expenses, which have declined from both last year's fourth quarter as well as from all quarters in 1994. Total expenses in the current period, for example, are $43 million lower than in the third quarter. This improvement has been achieved through a combination of headcount reduction, tighter controls on purchased goods and services and a rationalization of the systems and services that support the Firm's businesses. While we have made progress on costs, reducing them further remains a top priority in 1995." Non-interest expenses were $643 million, reflecting a 6% decrease from the third quarter of this year and a 13% decrease from last year's fourth quarter. Compensation and benefits were $356 million, an 8% decrease from the third quarter of 1994 and a 20% decrease from the prior year's fourth quarter. Non-interest expenses, excluding compensation and benefits, decreased 4% from the third quarter of 1994 and 2% versus the fourth quarter of 1993. At the end of the fourth quarter, the Firm's headcount was 8,512 versus a peak of 9,400 employees reached during the first quarter of 1994. For the 11 months ended November 30, 1994, the Firm reported net revenue of $2,738 million. Although the reporting periods are not comparable, net revenue of $3,555 million was attributable to the Lehman Businesses for the 12 months ended December 31, 1993. Non-interest operating expenses for fiscal 1994 were $2,497 million, versus $2,958 million for the Lehman Businesses in 1993. Compensation and benefits expenses were $1,413 million in fiscal 1994 versus $1,825 million for the Lehman Businesses in 1993. As of December 31, 1994, Lehman Brothers was ranked the number three underwriter of debt and equity worldwide and the number two underwriter of debt and equity in the U.S., according to Securities Data Company. Lehman Brothers also ranked third in the number of mergers and acquisitions completed globally in 1994. As of November 30, 1994, Lehman Brothers' stockholders' equity was $3,395 million and total capital (stockholders' equity and long-term debt) was $14,716 million. Lehman Brothers is a global investment bank with leadership positions in corporate and municipal finance and advisory services, and in securities sales, trading and research. Lehman Brothers serves the financial needs of corporate, government and institutional clients, and high-net-worth individuals, through offices in major financial centers worldwide. Exhibit 99.2 LEHMAN BROTHERS HOLDINGS INC. Year End 1994 SELECTED STATISTICAL INFORMATION (Preliminary and Unaudited) (dollars in millions, except per share data) Eleve Twelv n e Quarters Ended Month Month s s 1994 1993 11/30/94 8/31/94 6/30/94 3/31/9 12/31/9 (a) (b) 4 3 (b) Income Statement Net Revenues $2,73 $3,55 $ 708 $ 719 $ 719 $ $ 899 8 5 868 Non-Interest Expenses: Compensation and Benefits 1,413 1,825 356 388 364 450 443 Non-Personnel Expenses 1,084 1,133 287 298 305 297 293 After-Tax Income from Operations (excluding special charges) 156 376 46 22 32 73 114 Special Charges (after-tax): Spin-Off Expenses (12) (12) Severance Charge (18) (18) Accounting Change (13) (13) Non-Core Reserves (21) Net Income 113 355 46 22 20 42 114 Financial Ratios (%) Return on Common Equity (annualized) 4.0 N/A 5.2 1.6 2.8 N/A N/A Pre-Tax Operating Margin (excluding special charges) 8.8 16.8 9.1 4.6 6.8 14.0 18.1 Compensation & Benefits/Net 51.6 51.4 50.3 53.9 50.7 51.8 49.2 Revenues (c) Effective Tax Rate (d) 33.7 37.1 29.2 35.1 34.6 38.0 29.8 Balance Sheet Total Assets $111,000 $121,246 $118,511 $112,2 $100,62 (e) 77 4 Total Assets Excluding Matched Book 73,000 76,677 74,375 71,147 54,428 (f) Common Stockholders' Equity 2,687 2,652 2,602 1,275 1,294 Total Stockholders' Equity 3,395 3,360 3,310 2,033 2,052 Total Capital (long-term debt plus stockholders' equity) 14,716 14,187 13,877 12,608 11,951 Book Value per Common 24.35 23.97 24.65 N/A N/A Share (g) Other Data (#s) Common Stock Outstanding 104,537,690 105,528,91 105,554,7 N/A N/A 4 48 Employees 8,512 8,926 8,948 9,292 9,300 (a) The results for the month of June 1994 are reflected in both the second and third quarters of 1994. Thus the four quarters of 1994 are not additive. (b) The 1993 amounts represent the Lehman Businesses. (c) For the period ended March 31, 1994, compensation expense excludes the pre- tax severance charge of $33 million. (d) For the eleven months 1994 and the period ended June 30, 1994, the actual tax rates were 34.9% and 41.6%, respectively, reflecting the non- deductibility of certain spin-off expenses. (e) Reflects the FIN 39 adjustment to reported assets of $80.5 billion at December 31, 1993. (f) Matched book is defined as securities purchased under agreements to resell. (g) Beginning August 31, 1994 this calculation includes restricted stock units granted to employees under the 1994 Lehman Stock Award Program. At November 30, 1994, this calculation also includes restricted stock units issuable to executive officers under the same plan. Exhibit 99.3 LEHMAN BROTHERS HOLDINGS INC. Year End 1994 CONSOLIDATED STATEMENT OF OPERATIONS (Preliminary and Unaudited) (In millions, except per share data) Three Three Months Ended Months December 31, 1993 (Note 1) Percenta Ended ge of November Dollar 30, Change 1994 Lehman Businesses Inc/(Dec Businesses Sold ) Lehman Total Business es Revenues: Principal transactions $ 291 $ 382 $ 382 (24)% Investment banking 151 246 246 (39) Commissions 112 127 127 (12) Interest and dividends 2,214 1,451 1,451 53 Other 27 20 20 35 Total revenues 2,795 2,226 2,226 26 Interest expense 2,087 1,327 1,327 57 Net revenues 708 899 899 (21) Non-interest expenses: Compensation and benefits 356 443 443 (20) Brokerage, commissions and clearance fees 64 68 68 (6) Communications 48 47 47 2 Professional services 45 45 45 Occupancy and equipment 46 42 42 10 Business development 31 33 33 (6) Depreciation and amortization 30 32 32 (6) Other 23 26 26 (12) Total non-interest expenses 643 736 736 (13) Income before taxes 65 163 163 (60) Provision for income taxes 19 49 49 (61) Net income $46 $114 $114 (60) Net income applicable to $35 $102 $102 (66) common stock Number of shares used in per 110.6 105.7 share computation(Note 2) Earnings per common share $0.32 $0.97 Note 1:Certain prior period amounts have been reclassified to conform to the current year's presentation. Note 2:Pursuant to SEC requirements, the number of common shares used in the 1993 calculation of earnings per share includes shares issued in the spin-off. Exhibit 99.4 LEHMAN BROTHERS HOLDINGS INC. Year End 1994 CONSOLIDATED STATEMENT OF OPERATIONS (Preliminary and Unaudited) (In millions, except per share data) Eleven Twelve Months Ended Months December 31, 1993 (Note 1) Ended November Lehman Businesses 30, Businesse Sold Total 1994 s Revenues: Principal transactions $1,345 $1,732 $ 323 $2,055 Investment banking 572 802 170 972 Commissions 445 488 828 1,316 Interest and dividends 6,761 5,679 161 5,840 Other 67 79 412 491 Total revenues 9,190 8,780 1,894 10,674 Interest expense 6,452 5,225 143 5,368 Net revenues 2,738 3,555 1,751 5,306 Non-interest expenses: Compensation and benefits 1,413 1,825 1,164 2,989 Brokerage, commissions and 243 256 (20) 236 clearance fees Communications 184 188 130 318 Professional services 166 161 42 203 Occupancy and equipment 160 164 93 257 Business development 116 127 34 161 Depreciation and amortization 116 111 46 157 Other 99 126 145 271 Severance charge 33 Spin-off expenses 15 Loss on sale of Shearson 535 535 Reserves for non-core businesses 32 120 152 Total non-interest expenses 2,545 2,990 2,289 5,279 Income (loss) from continuing operations before taxes and cumulative effect of change in 193 565 (538) 27 accounting principle Provision for income taxes 67 210 108 318 Income (loss) from continuing operations before cumulative effect of change in accounting 126 355 (646) (291) principle Income from discontinued operations, net of taxes: Income from operations 24 24 Gain on disposal 165 165 Net income from discontinued 189 189 operations Income (loss) before cumulative effect of change in accounting 126 355 (457) (102) principle Cumulative effect of change in accounting principle (13) Net income (loss) $ 113 $ 355 $ (457) $ (102) Net income (loss) applicable to common stock $ 75 $ 307 $ (457) $ (150) Number of shares used in per share computation (Note 2) 108.0 105.7 Earnings per common share: Income (loss) from continuing operations before cumulative effect of change in accounting $ 0.81 $ (3.20) principle Discontinued operations 1.79 Cumulative effect of change in accounting principle (0.12) Net income (loss) $ 0.69 $ (1.41) Note 1:Certain prior period amounts have been reclassified to conform to the current year's presentation. Note 2:Pursuant to SEC requirements, the number of common shares used in the calculations of earnings per share includes shares issued in the spin- off. -----END PRIVACY-ENHANCED MESSAGE-----