Tentative Pricing on 3rd Wk of May.(Finacials and major shareholders)
Bruce:
Now this is one stock I don't mind owning for the long or short haul.
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1. each person who is known to the Company to be the beneficial owner of
more than 5% of the Company's Common Stock after the Offerings;
2. each director and Named Executive Officer of the Company; and
3. all directors and executive officers of the Company as a group.
Except as otherwise indicated, the persons or entities listed below have
sole voting and investment power with respect to Common Shares beneficially
owned by them. None of our employees are selling shares in the Offerings.
SHARES BENEFICIALLY SHARES BENEFICIALLY
OWNED PRIOR OWNED AFTER
TO OFFERINGS(5) NUMBER OF OFFERINGS(5)
------------------- SHARES -------------------
NAME NUMBER PERCENT(6) OFFERED NUMBER PERCENT(6)
---- ------ ---------- ---------- ------ ----------
5% Shareholders:
Sumitomo Bank Capital Markets,
Inc.(1)......................... 31,612,076 7.5% 9,000,000 22,612,076 4.9%
Kamehameha Activities
Association(2).................. 30,962,950 7.4 9,000,000 21,962,950 4.8
Directors and Named Executive
Officers:
Henry M. Paulson, Jr.(3)........... * 0 *
Robert J. Hurst(3)................. * 0 *
John A. Thain(3)................... * 0 *
John L. Thornton(3)................ * 0 *
John L. Weinberg(3)................ * 0 *
David A. Viniar(3)................. * 0 *
All directors and executive officers
as a group (11 persons)(4)......... 0
---------------
* Less than 1% of the outstanding shares of Common Stock.
(1) 277 Park Avenue, New York, New York 10172. For purposes of calculating the
number of shares of Common Stock beneficially owned prior to the Offerings,
includes 9,000,000 shares of Common Stock beneficially owned by Sumitomo
Bank Capital Markets, Inc. that will be sold in the Offerings. Excludes
6,238,094 shares of Common Stock that Sumitomo Bank Capital Markets, Inc.
would receive upon the conversion of its 6,238,094 shares of Nonvoting
Common Stock. The shares of Nonvoting Common Stock are not convertible until
the 185th day after completion of the Offerings. See Note (5) and, for a
description of the Nonvoting Common Stock, see "Description of Capital
Stock -- Nonvoting Common Stock".
==================
The summary consolidated financial data should be read in conjunction with
"Management's Discussion and Analysis of Financial Condition and Results of
Operations", "Pro Forma Consolidated Financial Information" and the consolidated
financial statements and the notes thereto.
AS OF OR FOR YEAR ENDED NOVEMBER
-------------------------------------------------------
1994 1995 1996 1997 1998
---- ---- ---- ---- ----
(in millions, except per share amounts)
INCOME STATEMENT DATA:
Net revenues...................... $ 3,537 $ 4,483 $ 6,129 $ 7,447 $ 8,520
Pre-tax earnings(1)............... 508 1,368 2,606 3,014 2,921
BALANCE SHEET DATA:
Total assets(2)................... $95,296 $100,066 $152,046 $178,401 $217,380
Adjusted assets (unaudited)(3).... 75,772 73,552 93,279 119,883 144,906
Long-term borrowings.............. 14,418 13,358 12,376 15,667 19,906
Partners' capital................. 4,771 4,905 5,309 6,107 6,310
PRO FORMA DATA(4):
Pro forma net earnings............ -- -- -- -- $ 1,316
Pro forma diluted
earnings per share(5) .......... -- -- -- -- 3.06
Pro forma diluted earnings
per share as
adjusted for the Offerings(6)... -- -- -- -- 2.79
Pro forma diluted Common
Shares as adjusted
for the Offerings(6)............ -- -- -- -- 472
Pro forma stockholders' equity
as adjusted for
the Offerings................... -- -- -- -- $ 6,291
Pro forma book value per
share as adjusted for
the Offerings(6)................ -- -- -- -- 13.45
SELECTED DATA AND RATIOS (UNAUDITED):
Pre-tax return on average
partners' capital(1)............ 10% 28% 51% 53% 47%
Ratio of compensation
and benefits to net
revenues(1)..................... 51 45 40 42 45
Assets under supervision:
Assets under management......... $43,671 $ 52,358 $ 94,599 $135,929 $194,821
Other client assets............. 49,061 57,716 76,892 102,033 142,018
------- -------- -------- -------- --------
Total assets under supervision.... $92,732 $110,074 $171,491 $237,962 $336,839
======= ======== ======== ======== ========
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(1) Since the Firm has been a partnership, payments to the Firm's profit
participating limited partners have been accounted for as distributions of
partners' capital rather than as compensation expense. As a result, the
Firm's pre-tax earnings and compensation and benefits expense have not
reflected any payments for services rendered by its profit participating
limited partners. Accordingly, pre-tax earnings understate the expected
operating costs to be incurred by the Firm after the Offerings. As a
corporation, the Firm will include payments for services rendered by its
former profit participating limited partners in compensation and benefits
expense. For financial information that reflects pro forma compensation and
benefits expense as if we had been a corporation, see "Pro Forma
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