-----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, H8xqo6w36oPMOtq/RvmtfLtt97wC/OTCvih4QWjLF0xZ6aU46X+ajkP44TulYHp3 Er0fcky8kDaIouw/gyLchQ== /in/edgar/work/20000821/0000782842-00-000017/0000782842-00-000017.txt : 20000922 0000782842-00-000017.hdr.sgml : 20000922 ACCESSION NUMBER: 0000782842-00-000017 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000804 ITEM INFORMATION: FILED AS OF DATE: 20000821 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST ALBANY COMPANIES INC CENTRAL INDEX KEY: 0000782842 STANDARD INDUSTRIAL CLASSIFICATION: [6211 ] IRS NUMBER: 141391446 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-14140 FILM NUMBER: 706944 BUSINESS ADDRESS: STREET 1: 30 S PEARL ST CITY: ALBANY STATE: NY ZIP: 12207 BUSINESS PHONE: 5184478673 MAIL ADDRESS: STREET 1: 30 S. PEARL STREET CITY: ALBANY STATE: NY ZIP: 12207 8-K 1 0001.txt 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) August 4, 2000 -------------------------- First Albany Companies Inc -------------------------------------------------- (Exact name of registrant as specified in charter) New York 014140 22-2655804 - --------------------------- ---------------------- --------------- State or other jurisdiction Commission file number (IRS employer of incorporation) identification No.) 30 S. Pearl Street, Albany, New York 12207 - -------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code (518) 447-8500 Item 2. Acquisition or Disposition of Assets. - ------ ------------------------------------- On May 9, 2000, the Company announced that it has signed an agreement for the sale of the assets of its Private Client Group, its retail brokerage branch network, to First Union Securities, a subsidiary of First Union Corp. The transaction closed on August 4, 2000. The amount received was approximately $87 million (adjusted from previously announced $100 million due to attrition related to financial consultants production) plus certain assets purchased for $11 million less certain liabilities assumed for approximately ($6) million and less the assumption of certain long term deferred compensation plans totaling about ($17) million. In addition, the Company and First Union Securities agreed to enhance the Financial Consultant retention program. The Company's contribution to this plan was approximately ($8) million. Finally, all customer assets and liabilities associated with this business will be transferred to First Union Securities. Also, the Company has agreed to buy back approximately 800,000 First Albany Companies Inc. shares (the "Shares") offered for sale by the financial consultants employed by the Private Client Group, who have accepted employment with First Union Securities for approximately $16 million. Item 7. Financial Statements and Exhibits - ------ --------------------------------- (b) Pro Forma Financial Information (1) Introduction to Pro Forma Financial Information (unaudited) (2) Pro Forma Consolidated Statement of Earnings (unaudited) for the six months ended June 30, 2000. (3) Pro Forma Consolidated Statement of Earnings (unaudited) for the six months ended June 30, 1999. (4) Pro Forma Consolidated Statement of Earnings (unaudited) for the year ended December 31, 1999. (5) Pro Forma Consolidated Statement of Earnings (unaudited) for the year ended December 31, 1998. (6) Pro Forma Consolidated Statement of Earnings (unaudited) for the year ended December 31, 1997. (7) Pro Forma Consolidated Balance Sheet (unaudited) as of June 30, 2000. (8) Notes to Pro Forma Financial Information (unaudited). (c) Agreement to Sell First Albany Corporation's Retail Branch Network and Correspondent Clearing Business dated May 8, 2000 between First Albany Companies Inc., First Albany Corporation and First Union Securities, Inc. (filed as Exhibit 10.26 for form 10Q for quarter ended March 31, 2000) 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. FIRST ALBANY COMPANIES INC. Date: August 21, 2000 by: /s/STEVEN R JENKINS ---------------- -------------------------------- Name: Steven R. Jenkins Title: Chief Financial Officer FIRST ALBANY COMPANIES INC INDEX TO PRO FORMA FINANCIAL INFORMATION UNAUDITED Introduction to Pro Forma Financial Information (unaudited) Pro Forma Consolidated Statement of Earnings (unaudited) for six months ended June 30, 2000. Pro Forma Consolidated Statement of Earnings (unaudited) for six months ended June 30, 1999. Pro Forma Consolidated Statement of Earnings (unaudited) for the year ended December 31, 1999. Pro Forma Consolidated Statement of Earnings (unaudited) for the year ended December 31, 1998. Pro Forma Consolidated Statement of Earnings (unaudited) for the year ended December 31, 1997. Pro Forma Consolidated Balance Sheet (unaudited) as of June 30, 2000. Notes to Pro Forma Financial Information (unaudited). FIRST ALBANY COMPANIES INC INTRODUCTION TO PRO FORMA FINANCIAL INFORMATION FOR SIX MONTHS ENDED JUNE 30, 2000 UNAUDITED The Pro Forma Consolidated Statements of Earnings for the six months ended June 30, 2000 and June 30, 1999 and for the fiscal year ended December 31, 1999, December 31, 1998, and December 31, 1997 present our consolidated results of operations, assuming that the sale of the Private Client Group occurred as of the beginning of the periods presented. The Pro Forma Consolidated Balance Sheet as of June 30, 2000 presents our consolidated financial position assuming that the sale had been completed as of that date. The Pro Forma Financial Information should be read in conjunction with our historical financial statements and related notes included in our 1999 Annual Report on Form 10-K and our Quarterly Report filed on Form 10-Q for the quarter ended June 30, 2000. The Pro Forma Financial Information presented is for informational purposes only and is not intended to be indicative of the results of operations that would have occurred had the sale been consummated as of the beginning of the periods presented, nor is it intended to be indicative of our future results of operations or financial position. FIRST ALBANY COMPANIES INC PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS FOR SIX MONTHS ENDED JUNE 30, 2000 UNAUDITED (In thousands Discontinued Continuing Pro Forma of dollars) Actual Operations(a) Operations Adjustments(b) Pro Forma - -------------------------------------------------------------------------------------- OPERATING REVENUES $109,725 $54,627 $55,098 $ 0 $55,098 INTEREST INCOME 42,690 2,411 40,279 40,279 - -------------------------------------------------------------------------------------- TOTAL REVENUES 152,415 57,038 95,377 0 95,377 - -------------------------------------------------------------------------------------- INTEREST EXPENSE 36,798 232 36,566 (1,316) 35,250 - --------------------------------------------------------------------------------------- NET REVENUES 115,617 56,806 58,811 1,316 60,127 - --------------------------------------------------------------------------------------- EXPENSES (EXCLUDING INTEREST) COMPENSATION AND BENEFITS 81,825 37,863 43,962 43,962 CLEARING, SETTLEMENT & BROKERAGE 2,583 1,051 1,532 1,532 COMMUNICATIONS & DATA PROCESSING 7,575 3,049 4,526 4,526 OCCUPANCY AND DEPRECIATION 6,808 4,086 2,722 2,722 SELLING 5,612 2,789 2,823 2,823 OTHER 5,671 3,720 1,951 1,951 - --------------------------------------------------------------------------------------- TOTAL EXPENSES EXCL INTEREST 110,074 52,558 57,516 0 57,516 - --------------------------------------------------------------------------------------- OPERATING INCOME (LOSS) 5,543 4,248 1,295 1,316 2,611 EQUITY IN LOSSES OF AFFILIATES (1,962) (1,962) (1,962) - --------------------------------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME TAXES 3,581 4,248 (667) 1,316 649 INCOME TAX EXPENSE (RECOVERY) 1,605 1,786 (181) 540 359 - --------------------------------------------------------------------------------------- NET INCOME (LOSS) $ 1,976 $ 2,462 ($ 486) $ 776 $ 290 ======================================================================================= EARNINGS PER SHARE: BASIC EARNINGS PER SHARE $0.25 ($0.06) $0.04 DILUTED EARNINGS PER SHARE $0.21 ($0.05) $0.03 WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING: BASIC................. 8,001,106 8,001,106 8,001,106 DILUTIVE.............. 9,362,933 9,362,933 9,362,933
FIRST ALBANY COMPANIES INC PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS FOR SIX MONTHS ENDED JUNE 30, 1999 UNAUDITED (In thousands Discontinued Continuing Pro Forma of dollars) Actual Operations(a) Operations Adjustments(b) Pro Forma - --------------------------------------------------------------------------------------- OPERATING REVENUES $91,343 $47,360 $43,983 $ 0 $43,983 INTEREST INCOME 26,471 2,138 24,333 24,333 - --------------------------------------------------------------------------------------- TOTAL REVENUES 117,814 49,498 68,316 0 68,316 - --------------------------------------------------------------------------------------- INTEREST EXPENSE 21,674 163 21,511 (1,120) 20,391 - --------------------------------------------------------------------------------------- NET REVENUES 96,140 49,335 46,805 1,120 47,925 - --------------------------------------------------------------------------------------- EXPENSES (EXCLUDING INTEREST) COMPENSATION AND BENEFITS 69,029 31,021 38,008 38,008 CLEARING, SETTLEMENT & BROKERAGE 2,494 1,087 1,407 1,407 COMMUNICATIONS & DATA PROCESSING 7,071 2,908 4,163 4,163 OCCUPANCY AND DEPRECIATION 6,550 3,998 2,552 2,552 SELLING 4,511 1,885 2,626 2,626 OTHER 5,036 2,996 2,040 2,040 - --------------------------------------------------------------------------------------- TOTAL EXPENSES EXCL INTEREST 94,691 43,895 50,796 0 50,796 - --------------------------------------------------------------------------------------- OPERATING INCOME (LOSS) 1,449 5,440 (3,991) 1,120 (2,871) EQUITY IN LOSSES OF AFFILIATES (1,416) (1,416) (1,416) - --------------------------------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME TAXES 33 5,440 (5,407) 1,120 (4,287) INCOME TAX EXPENSE (RECOVERY) 13 2,105 (2,092) 459 (1,633) - --------------------------------------------------------------------------------------- NET INCOME (LOSS) $ 20 $ 3,335 ($ 3,315) $ 661 ($ 2,654) ======================================================================================= EARNINGS PER SHARE: BASIC EARNINGS PER SHARE $0.00 ($0.43) ($0.35) DILUTED EARNINGS PER SHARE $0.00 ($0.39) ($0.31) WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING: BASIC.................. 7,641,684 7,641,684 7,641,684 DILUTIVE............... 8,497,669 8,497,669 8,497,669
FIRST ALBANY COMPANIES INC PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS FOR THE PAST YEAR ENDED DECEMBER 31, 1999 UNAUDITED In thousands Discontinued Continuing Pro Forma of dollara) Actual Operations(a) Operations Adjustments(b) Pro Forma - ---------------------------------------------------------------------------------------- OPERATING REVENUES $190,776 $92,321 $ 98,455 $ 0 $98,455 INTEREST INCOME 61,551 4,463 57,088 57,088 - ---------------------------------------------------------------------------------------- TOTAL REVENUES 252,327 96,784 155,543 0 155,543 - ---------------------------------------------------------------------------------------- INTEREST EXPENSE 51,931 385 51,546 (2,240) 49,306 - ---------------------------------------------------------------------------------------- NET REVENUES 200,396 96,399 103,997 2,240 106,237 - ---------------------------------------------------------------------------------------- EXPENSES (EXCLUDING INTEREST) COMPENSATION AND BENEFITS 143,776 61,451 82,325 82,325 CLEARING, SETTLEMENT & BROKERAGE 4,970 2,075 2,895 2,895 COMMUNICATIONS & DATA PROCESSING 14,151 5,800 8,351 8,351 OCCUPANCY AND DEORECIATION 13,376 8,069 5,307 5,307 SELLING 9,527 4,053 5,474 5,474 OTHER 10,194 5,824 4,370 4,370 - ---------------------------------------------------------------------------------------- TOTAL EXPENSES EXCL INTEREST 195,994 87,272 108,722 0 108,722 - ---------------------------------------------------------------------------------------- OPERATING INCOME (LOSS) 4,402 9,127 (4,725) 2,240 (2,485) EQUITY IN LOSSES OF AFFILIATES (3,629) (3,629) (3,629) - ---------------------------------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME TAXES 773 9,127 (8,354) 2,240 (6,114) INCOME TAX EXPENSE (RECOVERY) 360 3,854 (3,494) 918 (2,576) - ---------------------------------------------------------------------------------------- NET INCOME (LOSS) $ 413 $ 5,273 ($ 4,860) $ 1,322 ($ 3,538) ======================================================================================== EARNINGS PER SHARE: BASIC EARNINGS PER SHARE $0.05 ($0.63) ($0.46) DILUTIVE EARNINGS PER SHARE $0.05 ($0.56) ($0.41) WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING: BASIC.................. 7,664,677 7,664,677 7,664,677 DILUTIVE............... 8,661,382 8,661,382 8,661,382
FIRST ALBANY COMPANIES INC PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS FOR THE PAST YEAR ENDED DECEMBER 31, 1998 UNAUDITED (In thousands Discontinued Continuing Pro Forma of dollars) Actual Operations(a) Operations Adjustments(b) Pro Forma - --------------------------------------------------------------------------------------- OPERATING REVENUES $179,357 $85,227 $94,130 $ 0 $94,130 INTEREST INCOME 48,697 3,848 44,849 44,849 - --------------------------------------------------------------------------------------- TOTAL REVENUES 228,054 89,075 138,979 0 138,979 - --------------------------------------------------------------------------------------- INTEREST EXPENSE 39,946 307 39,639 (2,276) 37,363 - --------------------------------------------------------------------------------------- NET REVENUES 188,108 88,768 99,340 2,276 101,616 - --------------------------------------------------------------------------------------- EXPENSES (EXCLUDING INTEREST) COMPENSATION AND BENEFITS 130,169 58,372 71,797 71,797 CLEARING, SETTLEMENT & BROKERAGE 4,347 2,127 2,220 2,220 COMMUNICATIONS & DATA PROCESSING 13,852 6,017 7,835 7,835 OCCUPANYC AND DEPRECIATION 13,420 7,524 5,896 5,896 SELLING 7,863 3,313 4,550 4,550 OTHER 9,837 6,291 3,546 3,546 - --------------------------------------------------------------------------------------- TOTAL EXPENSES EXCL INTEREST 179,488 83,644 95,844 0 95,844 - --------------------------------------------------------------------------------------- OPERATING INCOME (LOSS) 8,620 5,124 3,496 2,276 5,772 EQUITY IN LOSSES OF AFFILIATES (1,488) (1,488) (1,488) - --------------------------------------------------------------------------------------- INCOME (LOSS)BEFORE INCOME TAXES 7,132 5,124 2,008 2,276 4,284 INCOME TAX EXPENSE (RECOVERY) 2,794 2,608 186 933 1,119 - --------------------------------------------------------------------------------------- NET INCOME (LOSS) $ 4,338 $ 2,516 $ 1,822 $ 1,343 $ 3,165 ======================================================================================= EARNING PER SHARE: BASIC EARNINGS PER SHARE $0.58 $0.24 $0.42 DILUTIVE EARNINGS PER SHARE $0.52 $0.22 $0.38 WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING: BASIC................. 7,536,153 7,536,153 7,536,153 DILUTIVE.............. 8,275,118 8,275,118 8,275,118
FIRST ALBANY COMPANIES INC PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS FOR THE PAST YEAR ENDED DECEMBER 31, 1997 UNAUDITED (In thousands Discontinued Continuing Pro Forma of dollars) Actual Operation(a) Operations Adjustments(b) Pro Forma - --------------------------------------------------------------------------------------- OPERATING REVENUES $146,330 $77,251 $69,079 $ 0 $69,079 INTEREST INCOME 45,474 1,646 43,828 43,828 - --------------------------------------------------------------------------------------- TOTAL REVENUES 191,804 78,897 112,907 0 112,907 - --------------------------------------------------------------------------------------- INTEREST EXPENSE 38,615 248 38,367 (2,380) 35,987 - --------------------------------------------------------------------------------------- NET REVENUES 153,189 78,649 74,540 2,380 76,920 - --------------------------------------------------------------------------------------- EXPENSES (EXCLUDING INTEREST) COMPENSATION AND BEBEFITS 105,080 49,710 55,370 55,370 CLEARING, SETTLEMENT & BROKERGAE 3,358 1,966 1,392 1,392 COMMUNICATIONS & DATA PROCESSING 12,872 5,634 7,238 7,238 OCCUPANCY AND DEPRECIATION 13,203 7,433 5,770 5,770 SELLING 8,027 3,118 4,909 4,909 OTHER 8,915 4,723 4,192 4,192 - --------------------------------------------------------------------------------------- TOTAL EXPENSES EXCL INTEREST 151,455 72,584 78,871 0 78,871 - --------------------------------------------------------------------------------------- OPERATING INCOME (LOSS) 1,734 6,065 (4,331) 2,380 (1,951) EQUITY IN INCOME OF AFFILIATES 1,168 1,168 1,168 - --------------------------------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME TAXES 2,902 6,065 (3,163) 2,380 (783) INCOME TAX EXPENSE (RECOVERY) 1,251 2,611 (1,360) 976 (384) - --------------------------------------------------------------------------------------- INCOME BEFORE EXTRAORDINARY GAIN 1,651 3,454 (1,803) 1,404 (399) EXTRAORDINARY GAIN, NET OF TAXES 305 305 305 - --------------------------------------------------------------------------------------- NET INCOME (LOSS) $ 1,956 $ 3,454 ($ 1,498) $ 1,404 ($ 94) ======================================================================================= BASIC EARNINGS PER SHARE: INCOME BEFORE EXTRAORDINARY ITEMS $0.23 ($0.25) ($0.05) EXTRAORDINARY GAIN 0.04 0.04 0.04 - --------------------------------------------------------------------------------------- NET INCOME (LOSS) $0.27 ($0.21) ($0.01) ======================================================================================= DILUTIVE EARNINGS PER SHARE: INCOME BEFORE EXTRAORDINARY ITEMS $0.21 ($0.22) ($0.05) EXTRAORDINARY GAIN 0.04 0.04 0.04 - --------------------------------------------------------------------------------------- NET INCOME (LOSS) $0.25 ($0.18) ($0.01) =======================================================================================
FIRST ALBANY COMPANIES INC PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS FOR THE PAST YEAR ENDED DECEMBER 31, 1997 UNAUDITED (CONTINUED) WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING: BASIC.................. 7,314,144 7,314,144 7,314,144 DILUTIVE............... 8,026,907 8,026,907 8,026,907
FIRST ALBANY COMPANIES INC PRO FORMA CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2000 UNAUDITED (In thousands Discontinued Pro Forma of dollars) Actual Operations(a) Restated Adjustments(c,d) Pro Forma - ------------------------------------------------------------------------------------ ASSETS - ------ Cash $ 1,661 $ $ 1,661 $ $ 1,661 Securities purchased under agreement to resell 45,679 45,679 45,679 Securities borrowed 880,283 880,283 880,283 Receivables from 0 Brokers, dealers, and clearing agencies 5,005 5,005 5,005 Customers 282,789 254,524 28,265 28,265 Others 28,809 28,809 28,809 Securities owned 193,642 193,642 193,642 Investments 21,981 21,981 21,981 Office equipment and leaseholds, net 10,668 2,266 8,402 8,402 Net assets of discontinued operations 0 (227,483) 227,483 (227,483) 0 Other assets 32,021 12,363 19,658 19,658 - ------------------------------------------------------------------------------------ Total Assets $1,502,538 $ 41,670 $1,460,868 ($227,483) $1,233,385 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY LIABLILTIES - ----------- Short-term bank loans $ 188,559 $ $ 188,559 ($ 92,483) $ 96,076 Securities loaned 1,059,161 1,059,161 (175,000) 884,161 Payables to: Brokers, dealers, and clearing agencies 10,754 10,754 10,754 Customers 38,512 34,661 3,851 3,851 Others 21,698 21,698 21,698 Securities sold but not yet purchased 68,599 68,599 68,599 Accounts payable 3,579 3,579 3,579 Accrued compensation 20,041 3,687 16,354 16,354
FIRST ALBANY COMPANIES INC PRO FORMA CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2000 UNAUDITED (CONTINUED) Accrued expenses 12,016 12,016 12,016 Income taxes payable 1,234 1,234 1,234 Deferred tax liability 120 120 120 Notes Payable 4,415 4,415 4,415 Obligations under capitalized leases 4,714 1,332 3,382 3,382 - ------------------------------------------------------------------------------------ Total liabilities $1,433,402 $ 39,680 $1,393,722 ($267,483) $1,126,239 ==================================================================================== COMMITMENTS AND CONTIGENCIES Subordinated debt 6,000 6,000 6,000 STOCKHOLDERS' EQUITY - -------------------- Common stock 85 85 85 Additional paid in capital 77,123 77,123 77,123 Deferred compensation 1,990 1,990 0 Unamortized value of restricted stock (2,771) (2,771) (2,771) Retained earnings (deficit) (11,058) (11,058) 40,000 28,942 Less treasure stock at cost (2,233) (2,233) (2,233) - ------------------------------------------------------------------------------------ Total Stockholders' Equity 63,136 1,990 61,146 40,000 101,146 - ------------------------------------------------------------------------------------ Total Liabilities and Stockholders' Equity $1,502,538 $ 41,670 $1,460,868 ($227,483) $1,233,385 ====================================================================================
FIRST ALBANY COMPANIES INC NOTES TO PRO FORMA FINANCIAL INFORMATION UNAUDITED (a) The "Discontinued Operations" columns represent the results of operations of the Private Client Group, adjusted to properly present such results as a discontinued operation. Interest expense has not been allocated to discontinued operations. (b) Gives effect to the pro forma reduction of interest expense to reflect the application of the estimated net proceeds from the sale, of approximately $40 million, as a reduction of short-term debt as if the pending sale had been completed as of the beginning of the periods presented. The calculation reflects weighted average interest rates of 6.6% and 5.6% for the six months ended June 30, 2000 and June 30, 1999 respectively, and 5.6%, 5.7% and 5.95% for the fiscal years ended December 31, 1999, December 31, 1998 and December 31, 1997 respectively. The related tax impact of the pro forma interest expense is included within taxes on earnings. (c) Elimination of net assets and related liabilities as if the sale had been completed at the balance sheet date. (d) We estimate that we will receive approximately $40 million in net proceeds from the sale after federal and state taxes and restructuring charges related to the divestiture of the Private Client Group. (e) All earnings per share and shares outstanding have been restated for all dividends declared. -----END PRIVACY-ENHANCED MESSAGE-----