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 August 31, 2004

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 September 30, 2004, there were 76,393,168 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

 

8-13

 

 

 

 

of Financial Condition and Results of

 

 

 

 

 

 

Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Item 3.

Quantitative and Qualitative Disclosures

 

13

 

 

 

 

About Market Risk

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Item 4.

Controls and Procedures

 

13-14

 

 

 

 

 

 

 

 

 

 

 

PART II.

OTHER INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Item 1.

Legal Proceedings

 

 

14

 

 

 

 

 

 

 

 

 

 

 

 

Item 2.

Changes in Securities, Use of Proceeds and Issuer

 

15

 

 

 

 

Purchases of Equity Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Item 6.

Exhibits and Reports on Form 8-K

 

 

15

 

 

 

 

 

 

 

 

 

 

 

 

 

SIGNATURES

 

 

16

PART I - FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share amounts)

(Unaudited)

 

 

 

August 31,

 

February 29,

ASSETS

 

 

 

2004

 

2004

Cash and cash equivalents

 

 

 

$

141,081

 

$

107,565

Cash and government securities, segregated under

 

 

 

 

 

 

federal and other regulations

 

 

 

 

141,560

 

 

373,726

Securities purchased under agreements to resell

 

 

-

 

 

22,355

Securities borrowed

 

 

 

 

77,396

 

 

106,034

Receivables:

 

 

 

 

 

 

 

 

Customers, less allowance for doubtful

 

 

 

 

 

 

 

accounts of $9,598 and $45,593

 

 

 

 

2,279,797

 

 

2,373,007

Brokers, dealers and clearing organizations

 

 

16,998

 

 

14,693

Fees, dividends and interest

 

 

 

 

106,787

 

 

90,053

Securities inventory, at fair value:

 

 

 

 

 

 

 

 

State and municipal

 

 

 

 

212,969

 

 

292,741

Government and agencies

 

 

 

 

26,448

 

 

30,806

Corporate

 

 

 

 

87,418

 

 

83,103

Investments

 

 

 

 

314,658

 

 

298,441

Property and equipment, at cost, net of accumulated

 

 

 

 

 

 

depreciation and amortization of $667,043 and $639,756

 

 

481,561

 

 

498,706

Deferred income taxes

 

 

 

 

78,028

 

 

94,191

Other assets

 

 

 

 

36,599

 

 

49,638

 

 

 

 

$

4,001,300

 

$

4,435,059

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Short-term bank loans

 

 

 

$

173,000

 

$

28,300

Checks payable

 

 

 

 

234,767

 

 

257,566

Securities loaned

 

 

 

 

226,196

 

 

231,438

Payables:

 

 

 

 

 

 

 

 

Customers

 

 

 

 

698,494

 

 

1,125,014

Brokers, dealers and clearing organizations

 

 

 

177,021

 

 

153,451

Securities sold but not yet purchased, at fair value

 

 

48,250

 

 

44,908

Employee compensation and related taxes

 

 

357,661

 

 

440,764

Deferred compensation

 

 

 

 

197,169

 

 

206,734

Income taxes

 

 

 

 

29,009

 

 

13,588

Other liabilities

 

 

 

 

139,401

 

 

154,977

Total Liabilities

 

 

 

 

2,280,968

 

 

2,656,740

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

 

 

 

 

295,958

 

 

292,699

Retained earnings

 

 

 

 

2,091,421

 

 

2,029,562