SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(mark one)
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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 JUNE 30, 2003 |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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 3100 |
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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 $0.01 per share, outstanding as of August 1, 2003, was 17,159,767.
SANDERS MORRIS HARRIS GROUP INC. AND SUBSIDIARIES
1
SANDERS MORRIS HARRIS GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands, except share and per share amounts)
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June 30, |
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December 31, |
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(unaudited) |
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ASSETS |
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Cash and cash equivalents |
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$ |
34,431 |
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$ |
34,890 |
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Receivables, net of allowance of $400 and $295, respectively |
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Broker-dealers |
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700 |
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641 |
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Customers |
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2,972 |
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2,026 |
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Related parties |
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5,843 |
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4,489 |
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Other |
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406 |
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719 |
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Deposits with clearing brokers |
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1,003 |
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1,000 |
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Securities owned |
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20,474 |
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16,995 |
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Securities available for sale |
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2,692 |
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3,064 |
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Furniture and equipment, net |
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3,944 |
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4,021 |
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Deferred income taxes |
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76 |
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638 |
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Other assets |
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2,086 |
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1,167 |
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Goodwill, net of accumulated amortization of $4,268 |
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49,399 |
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47,673 |
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Total assets |
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$ |
124,026 |
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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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$ |
14,683 |
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$ |
15,308 |
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Securities sold, not yet purchased |
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276 |
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93 |
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Other liabilities |
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215 |
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190 |
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Total liabilities |
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15,174 |
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15,591 |
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Commitments and contingencies |
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Minority interests |
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204 |
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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, $0.01 par value; 100,000,000 shares authorized; 17,882,270 and 17,439,743 shares issued, respectively |
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179 |
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174 |
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Additional paid-in capital |
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112,711 |
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109,959 |
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Receivables for shares issued |
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(1,050 |
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(705 |
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Retained earnings (accumulated deficit) |
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1,217 |
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(3,367 |
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Accumulated other comprehensive loss |
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(158 |
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(243 |
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Unearned compensation |
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(968 |
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(1,392 |
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Treasury stock at cost, 722,503 and 702,849 shares, respectively |
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(3,283 |
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(3,115 |
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Total shareholders’ equity |
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108,648 |
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101,311 |
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Total liabilities and shareholders’ equity |
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$ |
124,026 |
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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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Six Months
Ended |
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2003 |
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2002 |
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2003 |
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2002 |
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Revenues: |
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Commissions |
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$ |
13,321 |
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$ |
11,372 |
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$ |
25,633 |
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$ |
21,032 |
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Principal transactions |
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3,939 |
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612 |
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5,949 |
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5,395 |
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Investment banking |
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6,797 |
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4,087 |
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10,201 |
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7,763 |
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Fiduciary, custodial and advisory fees |
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2,527 |
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1,927 |
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4,281 |
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3,640 |
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Interest and dividends |
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684 |
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461 |
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1,209 |
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887 |
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Other income |
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351 |
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750 |
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1,277 |
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1,315 |
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Total revenues |
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27,619 |
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19,209 |
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48,550 |
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40,032 |
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Expenses: |
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Employee compensation and benefits |
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16,714 |
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12,463 |
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30,429 |
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25,885 |
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Floor brokerage, exchange and clearance fees |
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1,470< | |||||||||||