UNITED STATES

 

 

 

 

 

 

 

 

 

 

SECURITIES AND EXCHANGE COMMISSION

 

 

 

 

 

 

 

 

 

 

 

WASHINGTON, D.C. 20549

 

 

 

 

 

 

 

 

 

 

 

_______________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FORM 10-Q

 

 

 

 

 

 

 

 

 

 

 

QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)

 

 

 

 

 

 

 

 

 

 

 

OF THE SECURITIES EXCHANGE ACT OF 1934

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the quarter ended November 30, 2003

Commission file number 1-8527

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State of Incorporation: DELAWARE

I.R.S. Employer Identification No: 43-1288229

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Registrant's telephone number, including area code: (314) 955-3000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes

X

No

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).

Yes

X

No

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2003 there were 80,098,583 shares of A.G. Edwards, Inc. common stock, par value $1, issued and outstanding.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page

 

PART I.

FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Item 1.

Financial Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidated Statements of Earnings

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes to Condensed Consolidated Financial Statements

 

4-8

 

 

 

 

 

 

 

 

 

 

 

 

Item 2.

Management's Discussion and Analysis

 

9-12

 

 

 

 

of Financial Condition and Results of

 

 

 

 

 

 

Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Item 3.

Quantitative and Qualitative Disclosures

 

12

 

 

 

 

About Market Risk

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Item 4.

Controls and Procedures

 

12-13

 

 

 

 

 

 

 

 

 

 

 

PART II.

OTHER INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Item 1.

Legal Proceedings

 

 

13

 

 

 

 

 

 

 

 

 

 

 

 

Item 6.

Exhibits and Report on Form 8-K

 

 

14

 

 

 

 

 

 

 

 

 

 

 

 

 

SIGNATURES

 

 

15

PART I - FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share amounts)

(Unaudited)

 

 

 

November 30,

 

February 28,

ASSETS

 

 

 

2003

 

2003

Cash and cash equivalents

 

 

 

$

79,793

 

$

97,552

Cash and government securities, segregated under

 

 

 

 

 

 

federal and other regulations

 

 

 

 

148,535

 

 

103,714

Securities purchased under agreements to resell

 

 

257,208

 

 

220,000

Securities borrowed

 

 

 

 

60,021

 

 

77,130

Receivables:

 

 

 

 

 

 

 

 

Customers, less allowance for doubtful

 

 

 

 

 

 

 

accounts of $45,458 and $44,508

 

 

 

 

2,223,733

 

 

2,038,807

Brokers, dealers and clearing organizations

 

 

25,237

 

 

22,469

Fees, dividends and interest

 

 

 

 

68,609

 

 

60,051

Securities inventory, at fair value:

 

 

 

 

 

 

 

 

State and municipal

 

 

 

 

238,699

 

 

316,172

Government and agencies

 

 

 

 

40,389

 

 

50,134

Corporate

 

 

 

 

92,929

 

 

75,599

Investments

 

 

 

 

284,051

 

 

237,183

Property and equipment, at cost, net of accumulated

 

 

 

 

 

 

depreciation and amortization of $655,185 and $579,225

 

 

512,012

 

 

526,387

Deferred income taxes

 

 

 

 

100,238

 

 

93,775

Other assets

 

 

 

 

48,751

 

 

61,121

 

 

 

 

$

4,180,205

 

$

3,980,094

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Short-term bank loans

 

 

 

$

-

 

$

40,000

Checks payable

 

 

 

 

227,016

 

 

236,525

Securities loaned

 

 

 

 

277,502

 

 

227,356

Payables:

 

 

 

 

 

 

 

 

Customers

 

 

 

 

940,549

 

 

960,679

Brokers, dealers and clearing organizations

 

 

 

171,030

 

 

134,911

Securities sold but not yet purchased, at fair value

 

 

65,555

 

 

35,440

Employee compensation and related taxes

 

 

367,168

 

 

346,292

Deferred compensation

 

 

 

 

192,394

 

 

170,690

Income taxes

 

 

 

 

18,744

 

 

15,222

Other liabilities

 

 

 

 

185,644

 

 

124,442

Total Liabilities

 

 

 

 

2,445,602

 

 

2,291,557

Stockholders' Equity:

 

 

 

 

 

 

 

 

Preferred stock, $25 par value:

 

 

 

 

 

 

 

 

Authorized, 4,000,000 shares, none issued

 

 

-

 

 

-

Common stock, $1 par value:

 

 

 

 

 

 

 

 

Authorized, 550,000,000 shares

 

 

 

 

 

 

 

 

Issued, 96,463,114 shares

 

 

 

 

96,463

 

 

96,463

Additional paid-in capital

 

 

 

 

289,422

 

 

289,028

Retained earnings

 

 

 

 

1,994,275

 

 

1,943,325

 

 

 

 

 

2,380,160

 

 

2,328,816

Less - Treasury stock, at cost (16,084,415 and 15,737,245 shares).

 

645,557

 

 

640,279

Total Stockholders' Equity

 

 

 

 

1,734,603