-----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, IZcr7I9mflSvn9eiitgJCdGIQn7XeV4J+yTavS5vSk36xVWu+wGXlJxRsZ0+AoFX fOsbx891qagcgTE+VDsANQ== 0000810868-00-000044.txt : 20000510 0000810868-00-000044.hdr.sgml : 20000510 ACCESSION NUMBER: 0000810868-00-000044 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000509 ITEM INFORMATION: FILED AS OF DATE: 20000509 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LEGG MASON INC CENTRAL INDEX KEY: 0000704051 STANDARD INDUSTRIAL CLASSIFICATION: SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211] IRS NUMBER: 521200960 STATE OF INCORPORATION: MD FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-08529 FILM NUMBER: 623466 BUSINESS ADDRESS: STREET 1: 100 LIGHT ST CITY: BALTIMORE STATE: MD ZIP: 21202-1476 BUSINESS PHONE: 4105390000 MAIL ADDRESS: STREET 1: 100 LIGHT ST CITY: BALTIMORE STATE: MD ZIP: 21202-1476 8-K 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): May 8, 2000 ------------------------------ LEGG MASON, INC. - -------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in its Charter) Maryland 1-8529 52-1200960 - -------------------------------- ----------------------- -------------------- (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File No.) Identification No.) 100 Light Street, Baltimore, Maryland 21202 - -------------------------------------------------------------------------------- (Address of Principal Executive Office) (Zip Code) Registrant's Telephone Number, Including Area Code: (410) 539-0000 ---------------- Not Applicable - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) Item 5. Other Events ------------ On May 8, 2000, Legg Mason, Inc. issued a press release regarding its financial results for its fourth quarter and fiscal year ended March 31, 2000. A copy of the press release is attached hereto as Exhibit 99 and is incorporated herein by reference. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits ------------------------------------------------------------------ (a) Financial statements of businesses acquired. Not applicable. (b) Pro forma financial information. Not applicable. (c) Exhibits. 99 Press Release of Legg Mason, Inc. dated May 8, 2000. SIGNATURES 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. LEGG MASON, INC. Date: May 9, 2000 By: /s/ F. Barry Bilson F. Barry Bilson Senior Vice President EXHIBIT INDEX Exhibit 99 Press Release of Legg Mason, Inc. dated May 8, 2000 EXHIBIT 99 For immediate release For information contact: F. Barry Bilson (410) 539-0000 http://www.leggmason.com LEGG MASON'S QUARTER, YEAR EARNINGS UP SHARPLY Quarter EPS Up 81% to $.78; Year EPS Up 50% to $2.33 Pre-Tax Margin and ROE Also Records Baltimore, Maryland -- May 8, 2000 -- Legg Mason, Inc. (NYSE: LM) announced today that its net earnings for its fourth quarter ended March 31, 2000 increased by 94% over the corresponding quarter of 1999, to $48.0 million, driven primarily by a 47% increase in commissions and a 50% increase in principal transactions. These results helped the firm record a 60% increase in net earnings for the year and the highest pre-tax margin and return on equity since it became a public company in August 1983. Overall, record revenues in the firm's asset management area and throughout its securities brokerage business established new corporate records for the year ended March 31, 2000. Total revenues, net revenues, pre-tax income, net earnings and earnings per share all established a new record. Total revenues rose 31% to $1.4 billion, while net revenues grew to $1.2 billion, up 30%. Investment advisory and related fees were up 37%, to $534.9 million, while the combined revenues of our securities brokerage business were up 31%. Net earnings for the year jumped 60%, to $142.5 million, and diluted earnings per share climbed 50% to $2.33. The firm's pre-tax margin and return on equity for the year were also records: pre-tax earnings were 19.3% of net revenues versus 15.6% in fiscal 1999 and return on equity was 21.8% versus 17.0% in fiscal 1999. Total revenues for the quarter were a record $411.9 million, up 42% from a year ago, while net revenues were a record $370.6 million, up 40%. The contribution of the firm's overall securities brokerage business was particularly strong during the quarter, supported by a 47% increase in commission revenues, to $114.6 million, and a 50% increase in both principal transactions and net interest, to $39.6 million and $25.3 million, respectively, all new records. Revenues from investment advisory activities also remained strong, increasing by 34% to a record $149.0 million. Net earnings for the quarter were up 94% from the year ago quarter, to $48.0 million, and diluted earnings per share increased by 81% to $0.78. Pre-tax earnings were 21.8% of net revenues for the quarter, up from a 15.1% pre-tax margin in the corresponding quarter a year ago, and return on equity was 26.7% versus 18.2%. LEGG MASON, INC. News Release - May 8, 2000 Page 2 The firm also announced that its assets under management increased to $112 billion -- the 35th consecutive quarterly increase in such assets -- up 26% from $89 billion a year ago and up 7% from the last quarter. New clients plus net inflows from existing clients accounted for approximately 73% of the increase over the last year, while market appreciation accounted for 17% of the increase. New clients plus net inflows from existing clients also accounted for 73% of the increase in managed assets during the quarter, with the remaining 27% resulting from market appreciation. As of March 31, 2000, stockholders' equity was $752 million, up 36% from a year ago, and book value per share was $12.83, up 27%. Commenting on Legg Mason's operating results, chairman and CEO Raymond A. "Chip" Mason, said: "In both the quarter and fiscal year, our private client business, which includes securities brokerage, principal transactions and net interest profit, had outstanding results and was a significant contributor to our record performance. Revenues from investment advisory activities remained strong as we continue to build our asset management business, primarily through internal growth and also through selected acquisitions. Legg Mason continues to maintain a strong financial condition and I am pleased to report that equity capital surpassed $750 million at March 31, 2000." Legg Mason, Inc., headquartered in Baltimore, is a holding company that provides investment advisory, securities brokerage, investment banking and related financial services through its wholly owned subsidiaries. The Company's common stock is listed on the New York Stock Exchange (symbol: LM). LEGG MASON, INC. News Release - May 8, 2000 Page 3
LEGG MASON, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS For the Quarters Ended March 31, 2000 and 1999 ($ in 000's, except per share amounts) % of net % of net 2000 Revenues 1999 Revenues ------------ -------------- ---------------- -------------- Revenues: Investment advisory and related fees $ 149,006 40.2 $ 111,106 41.9 Commissions 114,637 30.9 78,007 29.4 Principal transactions 39,631 10.7 26,482 10.0 Investment banking 21,578 5.8 18,878 7.1 Interest 66,542 18.0 40,905 15.4 Other 20,464 5.5 13,768 5.2 ------------ -------------- ---------------- --------------- Total revenues 411,858 111.1 289,146 109.0 Interest expense 41,221 11.1 23,981 9.0 ------------ -------------- ---------------- --------------- Net revenues 370,637 100.0 265,165 100.0 Non-interest expenses: Compensation and benefits 210,354 56.8 162,578 61.3 Occupancy and equipment rental 22,187 6.0 16,951 6.4 Communications 14,840 4.0 12,502 4.7 Floor brokerage and clearing fees 2,032 0.5 1,763 0.6 Non-cash deferred compensation - - 3,110 1.2 Other 40,337 10.9 28,302 10.7 ------------ -------------- ---------------- --------------- 289,750 78.2 225,206 84.9 ------------ -------------- ---------------- --------------- Earnings Before Income Taxes 80,887 21.8 39,959 15.1 Income tax provision 32,846 8.8 15,168 5.8 ------------ -------------- ---------------- --------------- Net Earnings $ 48,041 13.0 $ 24,791 9.3 ============ ============== ================ =============== Earnings per common share: Basic $ 0.83 $ 0.45 Diluted $ 0.78 $ 0.43 Weighted average number of common shares outstanding: Basic 57,540 54,797 Diluted 61,274 57,963
LEGG MASON, INC. News Release - May 8, 2000 Page 4
LEGG MASON, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS For the Fiscal Years Ended March 31, 2000 and 1999 ($ in 000's, except per share amounts) % of net % of net 2000 Revenues 1999 Revenues ------------ -------------- ------------- ----------- Revenues: Investment advisory and related fees $ 534,896 43.3 $ 390,216 41.0 Commissions 362,887 29.4 279,136 29.3 Principal transactions 126,267 10.2 94,105 9.9 Investment banking 68,905 5.6 76,118 8.0 Interest 222,901 18.0 160,292 16.9 Other 54,948 4.4 46,139 4.9 ------------ -------------- -------------- ----------- Total revenues 1,370,804 110.9 1,046,006 110.0 Interest expense 134,322 10.9 94,910 10.0 ------------ -------------- -------------- ----------- Net revenues 1,236,482 100.0 951,096 100.0 Non-interest expenses: Compensation and benefits 743,867 60.2 584,830 61.5 Occupancy and equipment rental 80,602 6.5 64,289 6.8 Communications 54,440 4.4 47,963 5.0 Floor brokerage and clearing fees 7,828 0.6 6,677 0.7 Non-cash deferred compensation (1,063) (0.1) 10,352 1.1 Other 111,667 9.1 88,210 9.3 ------------ -------------- -------------- ----------- 997,341 80.7 802,321 84.4 ------------ -------------- -------------- ----------- Earnings Before Income Taxes 239,141 19.3 148,775 15.6 Income tax provision 96,616 7.8 59,441 6.2 ------------ -------------- -------------- ----------- Net Earnings $ 142,525 11.5 $ 89,334 9.4 ============ ============== ============== =========== Earnings per common share: Basic $ 2.51 $ 1.64 Diluted $ 2.33 $ 1.55 Weighted average number of common shares outstanding: Basic 56,688 54,337 Diluted 60,787 57,657 Book value per common share $ 12.83 $ 10.08
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