10-QPeriod: Q3 FY2009

Bank of New York Mellon Corp Quarterly Report for Q3 Ended Sep 30, 2009

Filed November 6, 2009For Securities:BKBK-PKBNYBNY-PK

Summary

BNY Mellon's third-quarter 2009 10-Q filing indicates a stable operational outlook, particularly concerning legal proceedings. The company stated that while numerous legal actions and regulatory matters are ongoing, they do not anticipate any material adverse effects on the consolidated financial position or liquidity, although individual periods' net income could be impacted. This suggests a degree of confidence in managing litigation risks. Regarding capital management, the company repurchased a small number of shares (82,000) during the quarter, primarily to cover employee tax obligations related to stock vesting. This represents a minimal capital return to shareholders and is distinct from the broader share repurchase program authorized in 2007, under which a substantial portion of shares remained available for repurchase. Investors should note the company's ongoing commitment to defending legal claims and its conservative approach to share repurchases during this period.

Financial Highlights

39 data points
Beta

Revenue

-$1.51B

Net Income

-$2.46B

163.0% Net Margin

EPS (Diluted)

$-2.05

Total Assets

$212.01B

Cash & Equivalents

$3.36B

Free Cash Flow

$2.12B

Financial Statements
Beta
Revenue-$1.51B
Operating Income-$1.53B
Interest Expense$113.00M
Net Income-$2.46B
EPS (Basic)$-2.05
EPS (Diluted)$-2.05
Shares Outstanding (Basic)1.20B
Shares Outstanding (Diluted)1.20B

Key Highlights

  • 1The company does not believe that pending or potential legal actions or regulatory matters, individually or in aggregate, will materially adversely affect its consolidated financial position or liquidity, after accounting for reserves and insurance.
  • 2While litigation outcomes are difficult to predict, they could materially affect net income in a given period.
  • 3BNY Mellon repurchased 82,000 shares of common stock during the third quarter of 2009 for approximately $2 million, primarily related to employee tax payments upon vesting of restricted stock.
  • 4These repurchases were not part of the publicly announced share repurchase program.
  • 5As of September 30, 2009, 33.8 million shares remained available for repurchase under the December 2007 authorization.
  • 6There is no expiration date on the previously authorized share repurchase program.
  • 7The company is filing an amended and restated By-Laws and forms of indemnification agreements with directors and executive officers as exhibits to this report.

Frequently Asked Questions

BNY Mellon is involved in numerous legal and regulatory matters in the ordinary course of business. However, the company, after consulting with legal counsel, does not believe that the ultimate resolution of these matters, individually or in the aggregate, will materially adversely affect its consolidated financial position or liquidity, though net income for a specific period could be impacted.

No, share repurchases were minimal. The company repurchased 82,000 shares for approximately $2 million, primarily to facilitate employees' tax payments upon vesting of restricted stock. These were not part of the larger, publicly announced share repurchase program.

BNY Mellon has a standing authorization from its Board of Directors to repurchase up to 35 million shares of common stock, initiated in December 2007. As of September 30, 2009, 33.8 million shares were still available under this program, and it has no expiration date. However, no shares were repurchased under this specific program during the third quarter of 2009.

The company has filed an Amended and Restated By-Laws as of August 11, 2009, and forms of Amended and Restated Indemnification Agreements with Directors and Executive Officers as exhibits to this report. These filings update or clarify certain governance-related aspects of the corporation.