Exhibit 99
Jefferies Reports Record 2009 Financial Results
NEW YORK--(BUSINESS WIRE)--January 20, 2010--Jefferies Group, Inc. (NYSE: JEF) today announced fourth quarter and year-end financial results for the period ended December 31, 2009.
Highlights for the fourth quarter include:
- Net revenues of $532 million
- Record net income to Common Shareholders of $94 million
- Record net earnings per common share (diluted) of $0.46
Highlights for the record full year include:
- Record net revenues of $2.1 billion
- Record net income to Common Shareholders of $280 million
- Record net earnings per common share (diluted) of $1.38
“We are pleased with the strong contribution our fourth-quarter made to the best annual performance in Jefferies’ 47-year history. We have strong momentum as we begin 2010 and all 2,628 employee-partners at Jefferies are eager to do our absolute best for our clients," commented Richard Handler, Chairman and Chief Executive Officer of Jefferies.
Conference Call
A conference call with management discussion of financial results for the year ended December 31, 2009 will be held today, January 20, 2010, at 9:00 AM Eastern. Securities industry professionals may access the management discussion by calling 877-710-9938 or 702-928-7183. A one-week replay of the call will also be available at 800-642-1687 or 706-645-9291 (conference ID #50145149). A live audio webcast and delayed replay can be accessed at jefferies.com.
About Jefferies
Jefferies, a major global securities and investment banking firm, has served companies and their investors for more than 45 years. Jefferies & Company, Inc. is the principal US operating subsidiary of Jefferies Group, Inc. (NYSE: JEF: www.jefferies.com), and Jefferies International Limited is the principal UK operating subsidiary. Jefferies International Limited, a UK-incorporated company, is authorised and regulated by the UK Financial Services Authority.
CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||||
(Amounts in Thousands, Except Per Share Amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
Dec 31, 2009 | Dec 31, 2008 | Dec 31, 2009 | Dec 31, 2008 | |||||||||||||
Revenues: | ||||||||||||||||
Commissions | 117,209 | 152,910 | 512,293 | 611,823 | ||||||||||||
Principal Transactions | 132,685 | (89,170 | ) | 843,851 | (80,192 | ) | ||||||||||
Investment Banking | 193,869 | 87,183 | 474,315 | 425,887 | ||||||||||||
Asset Management fees and | ||||||||||||||||
investment (loss) from managed funds | 14,402 | (35,181 | ) | 35,887 | (52,929 | ) | ||||||||||
Interest | 153,661 | 124,963 | 567,438 | 749,577 | ||||||||||||
Other | 10,219 | 8,271 | 38,918 | 28,573 | ||||||||||||
Total Revenues | 622,045 | 248,976 | 2,472,702 | 1,682,739 | ||||||||||||
Interest Expense | 83,839 | 95,125 | 301,925 | 660,964 | ||||||||||||
Net Revenues | 538,206 | 153,851 | 2,170,777 | 1,021,775 | ||||||||||||
Interest on Mandatorily Redeemable Preferred Interest of | ||||||||||||||||
Consolidated Subsidiaries | 6,628 | (33,023 | ) | 37,248 | (69,077 | ) | ||||||||||
Net Revenues, less Mandatorily Redeemable Preferred | ||||||||||||||||
Interest | 531,578 | 186,874 | 2,133,529 | 1,090,852 | ||||||||||||
Non-Interest Expenses: | ||||||||||||||||
Compensation and benefits | 239,352 | 738,506 | 1,195,971 | 1,522,157 | ||||||||||||
Floor brokerage and clearing fees | 28,767 | 18,962 | 89,337 | 69,444 | ||||||||||||
Technology and communications | 36,725 | 35,463 | 141,233 | 127,357 | ||||||||||||
Occupancy and equipment rental | 20,656 | 19,357 | 72,824 | 76,255 | ||||||||||||
Business development | 8,341 | 14,270 | 37,614 | 49,376 | ||||||||||||
Other | 28,656 | 60,084 | 80,929 | 126,524 | ||||||||||||
Total non-interest expenses | 362,497 | 886,642 | 1,617,908 | 1,971,113 | ||||||||||||
Earnings / (loss) before income taxes | 169,081 | (699,768 | ) | 515,621 | (880,261 | ) | ||||||||||
Income tax expense / (benefit) | 68,742 | (230,283 | ) | 199,041 | (290,249 | ) | ||||||||||
Net earnings / (loss) | 100,339 | (469,485 | ) | 316,580 | (590,012 | ) | ||||||||||
Net earnings / (loss) to Noncontrolling Interests | 6,819 | (29,583 | ) | 36,537 | (53,884 | ) | ||||||||||
Net earnings / (loss) to Common Shareholders | 93,520 | (439,902 | ) | 280,043 | (536,128 | ) | ||||||||||
Earnings / (loss) per Common Share | ||||||||||||||||
Basic | $ | 0.47 | $ | (2.39 | ) | $ | 1.39 | $ | (3.27 | ) | ||||||
Diluted | $ | 0.46 | $ | (2.39 | ) | $ | 1.38 | $ | (3.27 | ) | ||||||
Weighted Average Common Shares: | ||||||||||||||||
Basic | 196,255 | 183,691 | 200,446 | 166,163 | ||||||||||||
Diluted | 200,383 | 183,691 | 204,572 | 166,163 | ||||||||||||
Effective tax rate | 41 | % | 33 | % | 39 | % | 33 | % |
JEFFERIES GROUP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||
SELECTED STATISTICAL INFORMATION | ||||||||||||||||||||||||
(Amounts in Thousands, Except Per Share Amounts) | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Quarters Ended | ||||||||||||||||||||||||
12/31/2009 | 9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | |||||||||||||||||||
Statement of Earnings | ||||||||||||||||||||||||
Net Revenues, less mandatorily redeemable preferred | ||||||||||||||||||||||||
interest | 531,578 | 676,825 | 577,866 | 347,260 | 186,874 | 298,751 | ||||||||||||||||||
Non-Interest Expenses: | ||||||||||||||||||||||||
Compensation and Benefits | 239,352 | 395,031 | 348,207 | 213,381 | 738,506 | 246,186 | ||||||||||||||||||
Non-Compensation expenses | 123,145 | 106,764 | 107,331 | 84,697 | 148,136 | 106,221 | ||||||||||||||||||
Earnings / (loss) before income taxes | 169,081 | 175,030 | 122,328 | 49,182 | (699,768 | ) | (53,656 | ) | ||||||||||||||||
Income tax expense / (benefit) | 68,742 | 65,210 | 48,333 | 16,756 | (230,283 | ) | (6,090 | ) | ||||||||||||||||
Net earnings / (loss) | 100,339 | 109,820 | 73,995 | 32,426 | (469,485 | ) | (47,566 | ) | ||||||||||||||||
Net earnings / (loss) to Noncontrolling Interests | 6,819 | 23,534 | 12,095 | (5,911 | ) | (29,583 | ) | (16,262 | ) | |||||||||||||||
Net earnings / (loss) to Common Shareholders | 93,520 | 86,286 | 61,900 | 38,337 | (439,902 | ) | (31,304 | ) | ||||||||||||||||
Diluted earnings / (loss) per Common Share | $ | 0.46 | $ | 0.42 | $ | 0.30 | $ | 0.19 | $ | (2.39 | ) | $ | (0.18 | ) | ||||||||||
Financial Ratios | ||||||||||||||||||||||||
Pretax Operating Margin | 32 | % | 26 | % | 21 | % | 14 | % | -374 | % | -18 | % | ||||||||||||
Compensation and Benefits / Net Revenues | 45 | % | 56 | % | 59 | % | 62 | % | 480 | % | 90 | % | ||||||||||||
Effective Tax Rate | 41 | % | 37 | % | 40 | % | 34 | % | 33 | % | 11 | % |
JEFFERIES GROUP, INC. AND SUBSIDIARIES | |||||||||||||||||
SELECTED STATISTICAL INFORMATION | |||||||||||||||||
(Amounts in Thousands, Except Per Share Amounts) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Quarters Ended | |||||||||||||||||
12/31/2009 | 9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | ||||||||||||
Revenues by Source | |||||||||||||||||
Equities | 106,936 | 138,918 | 102,266 | 120,041 | 87,053 | 134,853 | |||||||||||
Fixed Income and Commodities | 185,390 | 312,659 | 276,617 | 203,345 | 103,891 | 72,875 | |||||||||||
High Yield | 37,609 | 105,349 | 88,285 | (24,512 | ) | (89,096 | ) | (59,776 | ) | ||||||||
Other | - | - | 1,638 | 6,034 | - | - | |||||||||||
Total | 329,935 | 556,926 | 468,806 | 304,908 | 101,848 | 147,952 | |||||||||||
Investment banking | 193,869 | 122,529 | 120,831 | 37,086 | 87,184 | 130,125 | |||||||||||
Asset management fees and investment (loss) / income from managed funds: | |||||||||||||||||
Asset management fees | 8,472 | 12,564 | 3,714 | 3,762 | 4,765 | 3,804 | |||||||||||
Investment (loss) / income from managed funds | 5,930 | 8,402 | (3,158 | ) | (3,799 | ) | (39,946 | ) | (7,235 | ) | |||||||
Total | 14,402 | 20,966 | 556 | (37 | ) | (35,181 | ) | (3,431 | ) | ||||||||
Net Revenues | 538,206 | 700,421 | 590,193 | 341,957 | 153,851 | 274,646 | |||||||||||
Interest on Mandatorily Redeemable Preferred | |||||||||||||||||
Interest of Consolidated Subsidiaries | 6,628 | 23,596 | 12,327 | (5,303 | ) | (33,023 | ) | (24,105 | ) | ||||||||
Net Revenues, less Mandatorily Redeemable | |||||||||||||||||
Preferred Interest | 531,578 | 676,825 | 577,866 | 347,260 | 186,874 | 298,751 | |||||||||||
Other Data | |||||||||||||||||
Number of Trading Days | 64 | 64 | 63 | 61 | 64 | 64 | |||||||||||
Full Time Employees | 2,628 | 2,513 | 2,307 | 2,296 | 2,241 | 2,436 | |||||||||||
Common Shares Outstanding | 165,638 | 169,332 | 171,927 | 169,195 | 163,216 | 163,429 | |||||||||||
Weighted Average Common Shares: | |||||||||||||||||
Basic | 196,255 | 200,609 | 201,902 | 203,310 | 183,691 | 173,757 | |||||||||||
Diluted | 200,383 | 204,736 | 206,027 | 203,326 | 183,691 | 173,757 | |||||||||||
As of December 31, 2009, common stockholders' equity amounted to $2.31 billion, resulting in book value of $13.94 per common share |
JEFFERIES GROUP, INC. AND SUBSIDIARIES | |||||
COMMON SHARES OUTSTANDING AND COMMON SHARES FOR BASIC AND DILUTED EPS CALCULATIONS | |||||
(UNAUDITED) | |||||
December 31, 2009 | |||||
Common shares outstanding | 165,637,554 | ||||
Outstanding restricted stock units | 27,404,347 | ||||
Adjusted shares outstanding | 193,041,901 | ||||
Note - All share information below for EPS purposes is based upon weighted-average balances for the applicable period. | |||||
Three months ended | Year ended | ||||
December 31, 2009 | December 31, 2009 | ||||
Shares Outstanding (weighted average) | (1) | 167,530,200 | 168,646,722 | ||
Unearned restricted stock | (2) | (2,745,418) | (1,623,424) | ||
Earned restricted stock units | (3) | 26,563,486 | 27,621,537 | ||
Other issuable shares | (4) | 4,907,144 | 5,800,766 | ||
Common Shares for Basic EPS | 196,255,412 | 200,445,601 | |||
Stock Options | (5) | 22,660 | 21,427 | ||
Mandatorily redeemable convertible preferred stock | (6) | 4,105,138 | 4,105,138 | ||
Common Shares for Diluted EPS | 200,383,210 | 204,572,166 |
(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 certain 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. 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) | Calculated under the if-converted method. The if-converted method assumes the conversion of convertible securities at the beginning of the period. |
CONTACT:
Jefferies Group, Inc.
Peregrine C. Broadbent, 212-284-2338
Chief Financial Officer