Alex. Brown posts strongest results ever Profits climbed 19% in 1st quarter

EARNINGS

April 28, 1993|By David Conn | David Conn,Staff Writer

Alex. Brown Inc., a Baltimore-based investment banking company, capitalized on its clients' stock offerings to turn in its strongest first-quarter performance ever, the company reported yesterday.

The parent of Alex. Brown & Sons Inc. said it earned $20.1 million, or $1.28 a share, in the three months that ended March 31. That was a 19 percent increase over profits of $16.8 million, or $1.05 a share, a year earlier.

Revenues climbed 13 percent, to $139.7 million, compared with $124.2 million last year.

"First-quarter results reflect the highest quarterly revenues in our history," Chief Executive A. B. Krongard said in a statement.

A strong balance among the firm's business enabled us to achieve a 24 percentpre-tax margin for the period.

Revenues were up in all the company's operating areas, except for a slight decline in commissions from securities trading. The biggest increase came in investment banking, which includes fees obtained by underwriting initial public stock offerings. The division contributed $53.5 million, or 38 percent of revenues in the quarter, compared with $45.5 million, or 36.6 percent of revenues a year ago.

Alex. Brown noted that its operations included a $4.1 million net investment gain. That included $3.4 million in a pre-tax increase in the carrying value of two companies, Landstar Systems Inc. and McGaw Inc., which Brown helped bring public during the quarter.

The stock market hasn't been as good to Alex. Brown's stockholders as it has to the company's bottom line, however. Despite the strong earnings, which exceeded most analysts' expectations, the market drove down the company's shares yesterday by 25 cents, to $20.375 a share.

TTC Alex. Brown's stock has fallen almost 13 percent in the past two weeks amid a general sell-off of brokerage stocks and a decline in the broader market.

It also hasn't helped that Alex. Brown insiders have sold more than68,000 shares in the past month alone, most of it apparently the normal selling of shares granted through options.

The company also declared its regular quarterly dividend yesterday of 12.5 cents a share, to be paid May 18 to stockholders of record May 7.

Alex. Brown Inc.

Ticker.. .. .. .. .. .. .. .. Yesterday's Symbol.. ... .. .. ... ... .. Cls... .. .. .. ..Chg.

.. .. .. .. .. .. .. .. .. 20 3/8 .. .. .. .. ... .- 1/4

Period ended

March 31 .. .. .. 1st qtr.. .. .. .. .. .. Year ago .. .. .. .. ...Chg.

Revenue .. .. .. $139,739.. .. .. .. .. .. $124,155 .. .. .. .. ..+12.6%

Net Income .. .. $20,083 .. .. .. .. .. .. $16,821 .. .. .. .. .. +19.4%

Primary EPS .. ..$1.28 .. .. .. .. .. .. .. $1.05 .. .. .. .. .. +21.9%

Figures in thousands (except per share data.)

@Alexander & Alexander

Services Inc.

Ticker .. .. .. .. .. .. .. .. .. .. .. Yesterday's

Symbol .. .. .. .. .. .. ... .. .. .. Cls... .. .. ..Chg.

AAL .. .. .. .. .. .. .. .. .. .. .. .25.. .. .. .. ...+ 3/8

Period ended

March 31 .. .. .. .. 1st qtr.. .. .. .. .. .. .. Year ago... Chg.

Revenue .. .. .. .. ..$322,800 .. .. .. .. .. .. $321,200 ...+0.5%

Net Income .. .. .. ..$14,200 .. .. .. .. .. .. $20,800 .. . -31.7%

Primary EPS.. .. .. .. $0.34.. .. .. .. .. .. .. $0.51.. .. .-33.3%

Figures in thousands (except per share data.)

* Includes $3.3 million from an accounting change for income taxes.

** Includes $26.4 million from the sale of two businesses.

Cryomedical Sciences Inc.

Ticker.. .. .. .. .. .. .. .. .. Yesterday's Symbol .. ... .. .. .. .. .. .. Cls... .. .. .. ..Chg.

CMSI .. .. .. .. .. .. .. .. .. 6 7/8 .. .. .. .. .. .. .-

Period ended

March 31 .. .. .. ..3rd qtr.. .. .. .. .. .. .. Year ago.. Chg.

Revenue .. .. .. .. $1,579 .. .. .. .. .. .. .. $N/A .. .. .--

Net Income .. .. .. $(1,411).. .. .. .. .. .. ..(1,249) .. .--

Primary EPS .. .. ..$(0.06) .. .. .. .. .. .. ..$(0.07) .. .--

.. .. .. .. .. .. .. 9 mos.. .. .. .. ..Year ago.. ... Chg.

Revenue .. .. .. .. $2,746 .. .. .. .. N/A .. .. .. . .. --

Net Income .. .. .. $(4,889).. .. .. ..$(3,159) .. .. .. --

Primary EPS .. .. ..$(0.22) .. .. .. ..$(0.18) .. .. .. .--

Figures in thousands (except per share data.)

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