Exhibit 99
Jefferies Reports First Quarter Earnings Per Common Share of $0.19
NEW YORK--(BUSINESS WIRE)--April 21, 2009--Jefferies Group, Inc. (NYSE: JEF) today announced financial results for the first quarter ended March 31, 2009.
Highlights for the first quarter ended March 31, 2009:
- Net revenues were $347.3 million.
- The net earnings for the first quarter of 2009 were $38.3 million.
- The net earnings per common share (diluted) were $0.19.
- Fixed income and commodities revenues were a record $203 million.
Richard B. Handler, Chairman and CEO of Jefferies, commented:
“Our first quarter results make it clear that we have distinguished ourselves from both the TARP-subsidized institutions, as well as the small and mid-cap brokers and boutiques. The performance of our fixed income businesses highlights the breadth and depth of our full-service, client-focused, independently-funded Wall Street securities firm. We have invested many years, an immense amount of human effort and much expense to build what we believe is a first tier provider of sales, trading, research and investment banking services. Our first quarter results reflect only the beginning of what we expect to realize over time from this investment. The events of the last 21 months, and particularly the incredible change in the competitive landscape over the last 12 months, have only enhanced the long-term opportunity we envision for our firm. We thank everyone at Jefferies for their efforts.”
Conference Call
A conference call with management discussion of financial results for the first quarter ended March 31, 2009 will be held today, April 21, 2009, at 9:00 AM Eastern (date and time subject to change). Securities industry professionals may access the management discussion by calling 877-246-1929 or 706-634-9290. A one-week replay of the call will also be available at 800-633-8284 or 402-977-9140 (reservation code # 21419001). A live audio webcast and delayed replay can be accessed at www.jefferies.com.
About Jefferies
Jefferies, an independent, full-service global securities and investment banking firm, has served companies and their investors for more than 45 years. Headquartered in New York City, with offices in more than 25 cities around the world, Jefferies provides clients with capital markets and financial advisory services, institutional brokerage, securities research and asset management. The firm provides investors with fundamental research and trade execution in equity, equity-linked, and fixed income securities, including corporate bonds, high yield bonds, US government and agency securities, repo finance, mortgage- and asset-backed securities, municipal bonds, whole loans and emerging markets debt, as well as commodities and derivatives. Jefferies offers companies capital markets, merger and acquisition, restructuring and other financial advisory services. Jefferies & Company, Inc. is the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF: www.jefferies.com).
CONSOLIDATED STATEMENTS OF EARNINGS | |||||
(Amounts in Thousands, Except Per Share Amounts) | |||||
(Unaudited) | |||||
Three Months Ended | |||||
Mar 31, 2009 | Mar 31, 2008 | ||||
Revenues: | |||||
Commissions | 101,851 | 113,651 | |||
Principal Transactions | 152,345 | 54 | |||
Investment Banking | 37,086 | 99,207 | |||
Asset Management fees and investment (loss) from managed funds | (37 | ) | (27,796 | ) | |
Interest | 102,087 | 204,891 | |||
Other | 12,572 | 6,480 | |||
Total Revenues | 405,904 | 396,487 | |||
Interest Expense | 63,947 | 195,291 | |||
Net Revenues | 341,957 | 201,196 | |||
Interest on Mandatorily Redeemable Preferred Interest of Consolidated Subsidiaries | (5,303 | ) | (20,951 | ) | |
Net Revenues, less Mandatorily Redeemable Preferred Interest | 347,260 | 222,147 | |||
Non-Interest Expenses: | |||||
Compensation and benefits | 213,381 | 259,951 | |||
Floor brokerage and clearing fees | 14,780 | 12,948 | |||
Technology and communications | 30,785 | 30,916 | |||
Occupancy and equipment rental | 16,296 | 17,257 | |||
Business development | 9,445 | 12,900 | |||
Other | 13,391 | 20,481 | |||
Total non-interest expenses | 298,078 | 354,453 | |||
Earnings / (loss) before income taxes | 49,182 | (132,306 | ) | ||
Income tax expense / (benefit) | 16,756 | (57,892 | ) | ||
Net earnings / (loss) | 32,426 | (74,414 | ) | ||
Net (loss) to Noncontrolling Interests | (5,911 | ) | (13,877 | ) | |
Net earnings / (loss) to Common Shareholders | 38,337 | (60,537 | ) | ||
Earnings / (loss) per Common Share | |||||
Basic | $ 0.19 | $ (0.45 | ) | ||
Diluted | $ 0.19 | $ (0.45 | ) | ||
Weighted Average Common Shares: | |||||
Basic | 203,310 | 141,784 | |||
Diluted | 203,326 | 141,784 | |||
Effective tax rate | 34 | % | 44 | % |
JEFFERIES GROUP, INC. AND SUBSIDIARIES | ||||||||||||||
SELECTED STATISTICAL INFORMATION | ||||||||||||||
(Amounts in Thousands, Except Per Share Amounts) | ||||||||||||||
(Unaudited) | ||||||||||||||
Quarters Ended | ||||||||||||||
3/31/2009 | 12/31/2008 | 9/30/2008 | 6/30/2008 | 3/31/2008 | ||||||||||
Statement of Earnings | ||||||||||||||
Net Revenues, less mandatorily redeemable preferred interest | 347,260 | 186,874 | 298,751 | 383,080 | 222,147 | |||||||||
Non-Interest Expenses: | ||||||||||||||
Compensation and Benefits | 213,381 | 738,506 | 246,186 | 277,514 | 259,951 | |||||||||
Non-personnel expenses | 84,697 | 148,136 | 106,221 | 100,097 | 94,502 | |||||||||
Earnings / (loss) before income taxes | 49,182 | (699,768 | ) | (53,656 | ) | 5,469 | (132,306 | ) | ||||||
Income tax expense / (benefit) | 16,756 | (230,283 | ) | (6,090 | ) | 4,016 | (57,892 | ) | ||||||
Net earnings / (loss) | 32,426 | (469,485 | ) | (47,566 | ) | 1,453 | (74,414 | ) | ||||||
Net (loss) / earnings to Noncontrolling Interests | (5,911 | ) | (29,583 | ) | (16,262 | ) | 5,838 | (13,877 | ) | |||||
Net earnings / (loss) to Common Shareholders | 38,337 | (439,902 | ) | (31,304 | ) | (4,385 | ) | (60,537 | ) | |||||
Diluted earnings / (loss) per Common Share | $ 0.19 | $ (2.39 | ) | $ (0.18 | ) | $ (0.05 | ) | $ (0.45 | ) | |||||
Financial Ratios | ||||||||||||||
Pretax Operating Margin | 14 | % | -374 | % | -18 | % | 1 | % | -60 | % | ||||
Compensation and Benefits / Net Revenues | 62 | % | 480 | % | 90 | % | 71 | % | 129 | % | ||||
Effective Tax Rate | 34 | % | 33 | % | 11 | % | 73 | % | 44 | % |
JEFFERIES GROUP, INC. AND SUBSIDIARIES | ||||||||||||||
SELECTED STATISTICAL INFORMATION | ||||||||||||||
(Amounts in Thousands, Except Per Share Amounts) | ||||||||||||||
(Unaudited) | ||||||||||||||
Quarters Ended | ||||||||||||||
3/31/2009 | 12/31/2008 | 9/30/2008 | 6/30/2008 | 3/31/2008 | ||||||||||
Revenues by Source | ||||||||||||||
Equities | 102,832 | 87,054 | 134,853 | 165,251 | 142,551 | |||||||||
Fixed Income and Commodities | 203,344 | 103,890 | 72,875 | 72,763 | 40,295 | |||||||||
High Yield | (7,302 | ) | (89,096 | ) | (59,776 | ) | 31,218 | (53,061 | ) | |||||
Other | 6,034 | - | - | - | - | |||||||||
Total | 304,908 | 101,848 | 147,952 | 269,232 | 129,785 | |||||||||
Investment banking | 37,086 | 87,184 | 130,125 | 109,371 | 99,207 | |||||||||
Asset management fees and investment (loss) / income from managed funds: | ||||||||||||||
Asset management fees | 3,762 | 4,765 | 3,804 | 4,758 | 6,285 | |||||||||
Investment (loss) / income from managed funds | (3,799 | ) | (39,946 | ) | (7,235 | ) | 8,721 | (34,081 | ) | |||||
Total | (37 | ) | (35,181 | ) | (3,431 | ) | 13,479 | (27,796 | ) | |||||
Net Revenues | 341,957 | 153,851 | 274,646 | 392,082 | 201,196 | |||||||||
Interest on Mandatorily Redeemable Preferred Interest of Consolidated Subsidiaries | (5,303 | ) | (33,023 | ) | (24,105 | ) | 9,002 | (20,951 | ) | |||||
Net Revenues, less Mandatorily Redeemable Preferred Interest | 347,260 | 186,874 | 298,751 | 383,080 | 222,147 | |||||||||
Other Data | ||||||||||||||
Number of Trading Days | 61 | 64 | 64 | 64 | 61 | |||||||||
Average Employees | 2,243 | 2,356 | 2,403 | 2,327 | 2,486 | |||||||||
Common Shares Outstanding | 169,195 | 163,216 | 163,429 | 162,121 | 132,762 | |||||||||
Weighted Average Common Shares: | ||||||||||||||
Basic | 203,310 | 183,691 | 173,757 | 165,694 | 141,784 | |||||||||
Diluted | 203,326 | 183,691 | 173,757 | 165,694 | 141,784 | |||||||||
As of March 31, 2009, common stockholders' equity amounted to $2.1 billion, resulting in book value of $12.23 per common share |
JEFFERIES GROUP, INC. AND SUBSIDIARIES | ||||||
COMMON SHARES OUTSTANDING AND COMMON SHARES FOR BASIC AND DILUTED EPS CALCULATIONS | ||||||
(Unaudited) | ||||||
March 31, 2009 | ||||||
Common shares outstanding | 169,194,901 | |||||
Outstanding restricted stock units | 28,240,861 | |||||
Adjusted shares outstanding | 197,435,762 | |||||
Note - All share information below for EPS purposes is based upon weighted-average balances for the applicable period. | ||||||
Three months ended | ||||||
March 31, 2009 | ||||||
Shares Outstanding (weighted average) | (1) | 165,029,324 | ||||
Unearned restricted stock | (2) | (328,262 | ) | |||
Earned restricted stock units | (3) | 29,863,341 | ||||
Other issuable shares | (4) | 8,745,680 | ||||
Common Shares for Basic EPS | 203,310,082 | |||||
Stock Options | (5) | 16,014 | ||||
Mandatorily redeemable convertible preferred stock | (6) | - | ||||
Unearned restricted stock/ restricted stock units | (7) | - | ||||
Common Shares for Diluted EPS | 203,326,096 | |||||
(1) |
| Shares outstanding represents shares issued less shares repurchased in treasury stock. Shares issued includes public and private offerings, earned and unearned restricted stock, distributions related to restricted stock units, deferred compensation plans, employee stock purchase plan and stock option exercises. Shares issued does not include undistributed earned and unearned restricted stock units. | ||||
(2) |
| As restricted stock is contingent upon a future service condition, unearned shares are removed from shares outstanding in the calculation of basic EPS as Jefferies' obligation to issue these shares remains contingent. | ||||
(3) |
| As earned restricted stock units are no longer contingent upon a future service condition and are issuable upon a certain date in the future, earned restricted stock units are added to shares outstanding in the calculation of basic EPS. | ||||
(4) |
| Other shares issuable not pursuant to any contingency include shares issuable to settle previously granted restricted stock awards, shares issuable under certain deferred compensation plans and shares issuable in connection with earnout agreements. | ||||
(5) |
| Calculated under the treasury stock method in accordance with FASB 128, Earnings per Share. The treasury stock method assumes the issuance of only a net incremental number of shares as proceeds from issuance are assumed to be used to repurchase shares at the average stock price for the period. | ||||
(6) |
| The conversion of our mandatorily redeemable convertible preferred stock is considered anti-dilutive to our first quarter EPS results and not included in Diluted EPS shares. If dilutive, the conversion would be calculated under the if-converted method in accordance with FASB 128, Earnings per Share, and result in 4,105,138 shares. The if-converted method assumes the conversion of convertible securities at the beginning of the period. | ||||
(7) |
| No longer included in the calculation of Diluted EPS. Upon the adoption of FSP EITF 03-6-1 on January 1, 2009, unearned restricted stock and restricted stock units are participating securities and included in EPS calculations under the two-class method. |
CONTACT:
Jefferies Group, Inc.
Peregrine C. Broadbent, 212-284-2338
Chief Financial Officer