SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2003 |
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or |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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Commission file No. 0-30066 |
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SANDERS MORRIS HARRIS GROUP INC. |
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(Exact name of registrant as specified in its charter) |
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Texas |
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76-0583569 |
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(State or other jurisdiction of |
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(I.R.S. Employer |
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600 Travis, Suite 3000 |
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(Address of principal executive office) |
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(713) 993-4610 |
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(Registrant’s telephone number, including area code) |
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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 ý NO o
Indicate by check mark whether registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). YES ý NO o
The number of shares of the registrant’s Common Stock, par value $0.01 per share, outstanding as of May 1, 2003, was 17,073,844.
SANDERS MORRIS HARRIS GROUP INC. AND SUBSIDIARIES
INDEX
1
PART I. FINANCIAL INFORMATION
Item 1. Financial
Statements
SANDERS
MORRIS HARRIS GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands, except share and per share amounts)
(unaudited)
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March 31, |
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December 31, |
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ASSETS |
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Cash and cash equivalents |
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$ |
30,322 |
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$ |
34,890 |
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Receivables, net of allowance of $295 |
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Broker-dealers |
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1,136 |
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641 |
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Customers |
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2,755 |
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2,026 |
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Related parties |
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4,950 |
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4,489 |
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Other |
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577 |
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719 |
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Deposits with clearing brokers |
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1,502 |
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1,000 |
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Securities owned |
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17,367 |
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16,995 |
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Securities available for sale |
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2,760 |
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3,064 |
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Furniture and equipment, net |
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3,988 |
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4,021 |
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Deferred income taxes, net |
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414 |
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638 |
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Other assets |
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1,302 |
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1,167 |
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Goodwill, net of accumulated amortization of $4,268 |
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47,673 |
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47,673 |
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Total assets |
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$ |
114,746 |
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$ |
117,323 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Liabilities: |
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Accounts payable and accrued liabilities |
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$ |
11,071 |
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$ |
15,308 |
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Securities sold, not yet purchased |
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60 |
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93 |
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Other liabilities |
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180 |
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190 |
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Total liabilities |
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11,311 |
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15,591 |
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Commitments and contingencies |
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Minority interests |
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200 |
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421 |
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Shareholders’ equity: |
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Preferred stock, $0.10 par value; 10,000,000 shares authorized; no shares issued and outstanding |
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— |
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— |
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Common stock, $0.01 par value; 100,000,000 shares authorized; 17,625,880 and 17,439,743 shares issued, respectively |
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176 |
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174 |
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Additional paid-in capital |
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111,000 |
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109,959 |
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Receivables for shares issued |
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(1,011 |
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(705 |
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Accumulated deficit |
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(2,178 |
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(3,367 |
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Accumulated other comprehensive loss |
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(299 |
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(243 |
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Unearned compensation |
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(1,219 |
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(1,392 |
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Treasury stock at cost, 717,503 and 702,849 shares, respectively |
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(3,234 |
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(3,115 |
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Total shareholders’ equity |
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103,235 |
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101,311 |
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Total liabilities and shareholders’ equity |
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$ |
114,746 |
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$ |
117,323 |
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The accompanying notes are an integral part of the condensed consolidated financial statements.
2
SANDERS
MORRIS HARRIS GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT
OF INCOME
(in thousands, except share and per share amounts)
(unaudited)
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Three Months Ended |
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2003 |
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2002 |
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Revenues: |
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Commissions |
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$ |
12,312 |
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$ |
9,660 |
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Principal transactions |
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2,010 |
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4,783 |
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Investment banking |
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3,404 |
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3,675 |
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Fiduciary, custodial and advisory fees |
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1,755 |
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1,713 |
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Interest and dividends |
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525 |
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427 |
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Other income |
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926 |
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565 |
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Total revenues |
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20,932 |
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20,823 |
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Expenses: |
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Employee compensation and benefits |
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13,715 |
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13,423 |
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Floor brokerage, exchange and clearance fees |
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1,430 |
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923 |
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Communications and data processing |
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1,329 |
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1,005 |
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Occupancy |
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1,247 |
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1,045 |
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Other general and administrative |
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2,061 |
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1,903 |
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Total expenses |
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19,782 |
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18,299 |
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Income before equity in income of limited partnerships, income taxes and minority interests |
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1,150 |
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2,524 |
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Equity in income of limited partnerships |
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868 |
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623 |
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2,018 |
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3,147 |
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