The Quick & Reilly group, Inc. reports record earnings, up 18% for fiscal 1997

Business Wire, March 25, 1997

PALM BEACH, Fla.--(BUSINESS WIRE)--March 25, 1997--The Quick & Reilly Group, Inc. (NYSE: BQR) today reported record net income for the 1997 fiscal year ended February 28, 1997, of $82,019,000, up 18.1 percent from $69,444,000 for the prior fiscal year. Earnings per share rose to $3.26 for fiscal year 1997 compared to $2.78 a year ago. Total revenues for the 1997 fiscal year were a record $507,032,000 compared with $443,865,000 for the prior year.

Net income for the fourth quarter of fiscal 1997 was $23,213,000, or $.92 per share, compared to $25,398,000, or $1.01 per share, for the fourth quarter a year ago. Total revenues for the 1997 fourth quarter were a record $139,648,000 compared to $129,674,000 a year ago.

Last year's fourth quarter earnings per share would have been $.86, rather than $1.01, if not for the realization of tax savings in the final three months of fiscal year 1996, and a freeing of reserves due to actuarial experience with the company's self-insurance programs.

"The Quick & Reilly Group continues to achieve a return on equity and profit margins that are among the best in the brokerage industry," said Leslie C. Quick, Jr., chairman and chief executive officer. "We continue to invest in our brokerage network of more than 110 offices nationwide, while ensuring that we are making strategic investments in the expansion of our business. Earlier this month we completed the acquisition of Nash, Weiss & Co., one of the leading independent NASDAQ market makers, which becomes the fourth major operating subsidiary of the Group.

"We are also investing in Internet securities trading," said Mr. Quick, "both through enhancements to our own branded Internet trading system, QuickWay Net, and by introducing an innovative customization of that system for brokerage and bank correspondents of our subsidiary, U.S. Clearing Corp. During the quarter we also introduced the Quick & Reilly Platinum Visa credit card with MBNA, which is the first card to provide unlimited brokerage commission discounts to clients, or a frequent flyer program, based upon card use.

"The previously announced decision by the Board of Directors to declare a 3 for 2 stock split effective today, to shareholders of record March 4, also reflects Group's strong results, in which we have achieved two consecutive years of record earnings," said Mr. Quick.

Highlights by Subsidiary

"Quick & Reilly, Inc., the Group's national discount brokerage subsidiary, continues to expand its services, attract new customers, and further strengthen our client relationships, which now number more than one million," said Mr. Quick. "We continue to invest in systems and infrastructure to support our brokers and ensure that we maintain our excellent reputation for client service.

"We continue to introduce additional capabilities and refinements to our Internet securities trading system, QuickWay Net, having in the last three months added the capability to trade mutual funds, options, and fixed income securities over the Internet," Mr. Quick noted. "We believe we have the best designed, easiest to use, most comprehensive securities trading system on the Internet, and we will continue to roll out enhancements to maintain this competitive position.

"We also launched the Quick & Reilly Platinum Plus Visa card, the first credit card to offer unlimited brokerage commission savings, with MBNA," said Mr. Quick. "It allows cardholders to earn discounts based on card use, to be applied to commissions on equity trades. We believe the card is an excellent value and links our clients' investing and spending patterns in a mutually advantageous way."

The client base of U.S. Clearing Corp., which provides broker dealers and banks with execution and clearing services, grew to 330 correspondents, up from 320 last quarter. During the quarter, U.S. Clearing Corp. announced the first fully functional, proven Internet securities trading system available to brokerage firms and banks on an "off the shelf" basis. The trading system, which is an adaptation of Quick & Reilly's proven QuickWay Net, can be customized with a proprietary marketing identity for the sponsoring institution and launched at a fraction of the cost and turnaround time required by a broker or bank to develop such a system on its own. "Making an Internet securities trading product available on a turnkey basis is evidence of our commitment to move beyond the traditional role of a clearing firm and align our growth with that of our clients," said Mr. Quick.

JJC Specialist Corp., the second largest firm on the floor of the New York Stock Exchange, was allocated two new company listings, Nationwide Financial Services (NYSE: NFS), and Chemfab Corporation (NYSE: CFA). JJC currently makes a market for 280 New York Stock Exchange issues, representing 231 companies, including 44 S&P 500 corporations.

The acquisition of NASDAQ market maker Nash, Weiss & Co. was completed on March 7 and its results are not included in fiscal 1997 earnings. Nash, Weiss & Co., with $60 million in annual revenues, makes a market in some 2,500 over the counter stocks. "With more than $350 million in capital, we expect to provide the resources that will enable Nash, Weiss to capture a greater share of the NASDAQ market," said Mr. Quick. "As a more strongly capitalized market maker, we expect the firm to be able to increase the number of stocks in which it makes a market and to expand its institutional business. Additionally, we will capitalize upon the relationships that U.S. Clearing has built with institutional investors."