SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) April 15, 2003
..............
RAYMOND JAMES FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
Florida 1-9109 No. 59-1517485
................................. ............ ....................
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
880 Carillon Parkway, St. Petersburg, Florida 33716
.........................................................
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (727) 567-1000
..............
_____________________________________________________________
(Former name or former address, if changed since last report.
ITEM 7. EXHIBITS
(c) exhibits
99 (04/15/03) Raymond James Financial Inc.'s Press Release dated April 15, 2003.
Item 9. REGULATION FD DISCLOSURE
Pursuant to Item 12, Raymond James Financial, Inc. (the Company) is furnishing under Item 9 of this Current Report on Form 8-K the information included as Exhibit 99 (04/15/03)to this report. Exhibit 99 (04/15/03) is the Company's second quarter 2003 financial press release issued on April 15, 2003. The press release includes instructions as to how and when to access the Company's complementary quarterly conference call that will be available to all interested persons telephonically and by webcast through the Company's website.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
____April 16, 2003____________
(Date)
RAYMOND JAMES FINANCIAL, INC.
BY: /s/Thomas A. James
Thomas A. James
Chairman and Chief
Executive Officer
BY: /s/Jeffrey P. Julien
Jeffrey P. Julien
Senior Vice President - Finance
and Chief Financial Officer
Exhibit 99 (04/15/03)
Release No. 403-02
April 15, 2003 FOR IMMEDIATE RELEASE
RAYMOND JAMES FINANCIAL, INC.
REPORTS SECOND QUARTER RESULTS
Unaudited net income for the first half of fiscal 2003 was reported at $29,622,000, down from 2002's $36,915,000, while revenues for the period decreased to $695,105,000 from $746,383,000 the previous year. Diluted earnings per share were $0.60 versus $0.74 for last year's comparable period.
"While the revenue and net income comparisons to our immediately preceding quarter are up two percent and five percent respectively, the comparisons to last year's March quarter are down eight percent and 19 percent," according to Thomas A. James, chairman and CEO.
"Lower gross interest revenues, which were down 20 percent, no longer account for the entire revenue shortfall as in prior periods," he continued. "The continuation of depressing equity market performance and preoccupation with the war in Iraq have adversely affected retail commissions, which are down eight percent from last year. Nonetheless, as presented in our new,
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Rel. No. 403-02
attached segment report, the retail segment produced an 11 percent increase in pre-tax profits over last year.
"A moribund corporate issuance market depressed investment banking revenues 11 percent as contrasted to last year," James added. "Revenues for the entire capital markets segment, including fixed income, were down four percent, but up nine percent from last quarter.
"While pre-tax income for capital markets was down 52 percent from last year, it increased 41 percent from the preceding quarter. Investment advisory revenues were down nine percent as assets under management decreased from last year's March totals, even though they increased over the last three months. Pre-tax profits for the asset management Segment were 13 percent below last year's March quarter, but 12 percent higher than the December quarter."
James explained that "total expenses declined seven percent, but vigilant control was not enough to offset lower revenues.
"During the quarter, we repurchased 1.44 million shares of our common stock at an average price of $24.87 pursuant to existing authorizations," he added.
"Raymond James continues to add new Financial Advisors, to raise new net assets for our asset managers and to identify new financing opportunities for a better market environment." He concluded, "In short, we are poised to participate in a better market environment. Unfortunately, even though the domestic
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Rel. No. 403-02
economy is growing and the war in Iraq appears to have reached a successful conclusion, the United States economy and equity markets still face a challenging, albeit relatively much better, outlook. Our view is that conditions will improve by the end of calendar 2003."
The company will conduct its quarterly conference call Wednesday at 4:15 p.m. The telephone number is 800-773-5520. The call will also be available on demand on the company's Web site, www.RaymondJames.com, under About Raymond James Financial, Financial Reports.
Raymond James Financial, Inc. (NYSE - RJF) provides financial services to individuals, corporations and municipalities through its three wholly-owned investment firms, Raymond James & Associates, Raymond James Financial Services and Raymond James Ltd., which have over 5,200 Financial Advisors in more than 2,100 locations throughout the United States, Canada and internationally, as well as through its asset management subsidiaries, which currently manage in excess of $16.3 billion.
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Rel. No. 403-02
Raymond James Financial, Inc. | |||||||||||
Unaudited Report | |||||||||||
For the second quarter ended March 28, 2003 | |||||||||||
(all data in thousands, except per share earnings) | |||||||||||
Second Quarter | Six Months | ||||||||||
2003 | 2002 | Percent Change | 2003 | 2002 | Percent Change | ||||||
Revenues | $350,497 | $380,278 | (8%) | $695,105 | $746,383 | (7%) | |||||
Net Income | 15,194 | 18,817 | (19%) | 29,622 | 36,915 | (20%) | |||||
Earnings Per | |||||||||||
Share - Diluted | 0.31 | 0.38 | (18%) | 0.60 | 0.74 | (19%) | |||||
Average Shares | |||||||||||
Outstanding - Diluted | 48,751 | 49,870 | (2%) | 49,011 | 49,652 | (1%) | |||||
Balance Sheet Data | |||||||
March | Dec. | Sept. | March | ||||
2003 | 2002 | 2002 | 2002 | ||||
Total Assets | $6.4 bil. | $6.2 bil. | $6.0 bil. | $6.6 bil. | |||
Shareholders' Equity | $862 mil. | $861 mil. | $840 mil. | $811 mil. | |||
Book Value per share | $17.78 | $17.58 | $17.25 | $16.61 | |||
Management Data | |||||||
March | Dec. | Sept. | March | ||||
2003 | 2002 | 2002 | 2002 | ||||
Retail Financial Advisors: | |||||||
US | 4,823 | 4,769 | 4,759 | 4,618 | |||
Canada | 227 | 235 | 235 | 213 | |||
# Lead Managed/Co-Managed Public Offerings in U.S. | 4 | 9 | 6 | 9 | |||
Financial Assets Under Management | $16.3 bil. | $16.0 bil. | $15.3 bil. | $17.5 bil. | |||
Page 5 RAYMOND JAMES FINANCIAL
Rel. No. 403-02
March | Dec. | Sept. | March | ||||
2003 | 2002 | 2002 | 2002 | ||||
Client Assets | $84.4 bil. | $83.9 bil. | $80.1 bil. | $90.7 bil. | |||
Client Margin Balances | $913 mil. | $958 mil. | 960 mil. | $1,085 mil. | |||
Client Trade Volume | 1,460,000 | 1,510,000 | 1,600,000 | 1,730,000 | |||
# of Client Accounts | 1,270,000 | 1,250,000 | 1,230,000 | 1,200,000 |
Segment Data | ||||||||||||
Second Quarter | Six Months | |||||||||||
2003 | 2002 | Percent Change | 2003 | 2002 | Percent Change | |||||||
Revenues: | ||||||||||||
Retail | $234,523 | $254,074 | (8%) | $464,588 | $494,470 | (6%) | ||||||
Capital Markets | 76,741 | 80,057 | (4%) | 147,096 | 159,698 | (8%) | ||||||
Asset Management | 29,952 | 32,941 | (9%) | 59,133 | 64,026 | (8%) | ||||||
RJ Bank | 7,023 | 7,345 | (4%) | 15,047 | 16,143 | (7%) | ||||||
Other | ||||||||||||
2,258
5,861
(61%)
9,241
12,046
(23%)
Total
$350,497
$380,278
(8%)
$695,105
$746,383
(7%)
Pre-tax Income:
Retail
$14,263
$12,854
11%
$21,410
$27,192
(21%)
Capital Markets
5,667
11,703
(52%)
9,683
18,928
(49%)
Asset Management
4,548
5,203
(13%)
8,599
10,557
(19%)
RJ Bank
1,937
1,763
10%
5,040
3,671
37%
Other
(2,144)
(835)
157%
2,904
(277)
1,148%
Total
$24,271
$30,688
(21%)
$47,636
$60,071
(21%)
For additional information, contact
Lawrence Silver at 727-567-5329.
Please visit the Raymond James Press Center athttp://www.RaymondJames.com/media.htm
| RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES | ||||||||||
CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||
(UNAUDITED) | |||||||||||
Quarter-to-Date | |||||||||||
(in thousands, except per share amounts) | |||||||||||
Three Months Ended | |||||||||||
March 28, | March 28, | % | Dec. 27, | % | |||||||
2003 | 2002 | change | 2002 | change | |||||||
Revenues: | |||||||||||
Securities commissions and fees | $ 247,557 | $ 268,228 | -8% | $ 237,848 | 4% | ||||||
Investment banking | 13,740 | 15,395 | -11% | 11,208 | 23% | ||||||
Investment advisory fees | 27,232 | 29,814 | -9% | 26,283 | 4% | ||||||
Interest | 31,000 | 38,586 | -20% | 34,646 | -11% | ||||||
Correspondent clearing | 756 | 902 | -16% | 989 | -24% | ||||||
Net trading profits | 5,456 | 3,861 | 41% | 3,707 | 47% | ||||||
Financial service fees | 15,583 | 14,055 | 11% | 15,506 | 0% | ||||||
Other | 9,173 | 9,437 | -3% | 14,421 | -36% | ||||||
TOTAL REVENUES | 350,497 | 380,278 | -8% | 344,608 | 2% | ||||||
Expenses | |||||||||||
Compensation, commissions | 248,951 | 256,978 | -3% | 234,866 | 6% | ||||||
Communications and | 19,842 | 21,890 | -9% | 18,966 | 5% | ||||||
Occupancy and equipment | 14,942 | 14,607 | 2% | 15,648 | -5% | ||||||
Clearance and floor | 4,147 | 3,623 | 14% | 3,531 | 17% | ||||||
Interest | 10,678 | 19,241 | -45% | 13,213 | -19% | ||||||
Business development | 11,184 | 12,606 | -11% | 12,277 | -9% | ||||||
Other | 16,482 | 20,645 | -20% | 22,742 | -28% | ||||||
TOTAL EXPENSES | 326,226 | 349,590 | -7% | 321,243 | 2% | ||||||
Income before provision for | 24,271 | 30,688 | -21% | 23,365 | 4% | ||||||
Provision for income taxes | 9,077 | 11,871 | -24% | 8,937 | 2% | ||||||
Net Income | $ 15,194 | $ 18,817 | -19% | $ 14,428 | 5% | ||||||
Net Income per share basic | $ 0.31 | $ 0.39 | -21% | $ 0.30 | 3% | ||||||
Net Income per share diluted | $ 0.31 | $ 0.38 | -18% | $ 0.29 | 7% | ||||||
Weighted average common | 48,468 | 48,759 | 48,762 | ||||||||
Weighted average common and | |||||||||||
outstanding-diluted | 48,751 | 49,870 | 49,566 | ||||||||
RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENT OF OPERATIONS | |||||||
(UNAUDITED) | |||||||
Year-to-Date | |||||||
(in thousands, except per share amounts) | |||||||
Six Months Ended | |||||||
March 28, | March 28, | % | |||||
2003 | 2002 | change | |||||
Revenues: | |||||||
Securities commissions | $ 485,405 | $ 519,888 | -7% | ||||
Investment banking | 24,948 | 26,219 | -5% | ||||
Investment advisory fees | 53,515 | 57,582 | -7% | ||||
Interest | 65,646 | 83,965 | -22% | ||||
Correspondent clearing | 1,745 | 1,740 | 0% | ||||
Principal trading profits | 9,163 | 9,774 | -6% | ||||
Financial Service Fees | 31,089 | 29,536 | 5% | ||||
Other | 23,594 | 17,679 | 33% | ||||
TOTAL REVENUES | 695,105 | 746,383 | -7% | ||||
Expenses | |||||||
Employee compensation | 483,817 | 502,969 | -4% | ||||
Communications and information | 38,808 | 41,102 | -6% | ||||
Occupancy and equipment costs | 30,590 | 29,703 | 3% | ||||
Clearance and floor brokerage | 7,678 | 6,992 | 10% | ||||
Interest | 23,891 | 44,361 | -46% | ||||
Business development | 23,461 | 23,860 | -2% | ||||
Other | 39,224 | 37,325 | 5% | ||||
TOTAL EXPENSES | 647,469 | 686,312 | -6% | ||||
Income before Income taxes | 47,636 | 60,071 | -21% | ||||
Provision for income taxes | 18,014 | 23,156 | -22% | ||||
Net Income | $ 29,622 | $ 36,915 | -20% | ||||
Net Income per share basic | $ 0.61 | $ 0.76 | -20% | ||||
Net Income per share diluted | $ 0.60 | $ 0.74 | -19% | ||||
Weighted average common shares | |||||||
outstanding-basic | 48,615 | 48,568 | |||||
Weighted average common and common | |||||||
equivalent shares outstanding-diluted | 49,011 | 49,652 | |||||
