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) | January 14, 2004 | |
RAYMOND JAMES FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
Florida |
| 1-9109 |
| No. 59-1517485 |
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer 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
99.1 Raymond James Financial Inc.'s Press Release dated January 14, 2004
Item 9. REGULATION FD DISCLOSURE
Pursuant to Item 12, Raymond James Financial, Inc. is furnishing under Item 9 of this Current Report on Form 8-K the information included as Exhibit 99.1 to this report, which is hereby incorporated herein by reference. Exhibit 99.1 is Raymond James Financial Inc.'s first quarter 2004 financial press release issued on January 14, 2004.
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.
The press release also includes instructions as to how and when to access a complementary interview with the Company's Chief Executive Officer that will be publicly broadcast on CNBC Morning Call at 10:20 a.m. Eastern time, and Bloomberg at 3:39 p.m. Eastern time, on Wednesday, January 14, 2004.
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.
________January 14, 2004
(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
Jan. 14, 2004 FOR IMMEDIATE RELEASE
Release No. 0104-03
RAYMOND JAMES FINANCIAL, INC.
REPORTS FIRST QUARTER RESULTS
ST. PETERSBURG, Fla. −- Raymond James Financial, Inc. today reported unaudited earnings and revenues for the first quarter ended Dec. 26, 2003.
For the first quarter, net income increased 68% percent to $24,230,000 from $14,428,000, while revenues were $424,660,000, up 23% from first quarter 2003 revenues of $344,608,000. Earnings per diluted share increased 69% to $0.49 from $0.29.
“Although the holiday season in the December quarter traditionally inhibits investor decision-making, as well as corporate and municipal financing activity, business activity continued to improve in all of Raymond James’ major business sectors,” states Thomas A. James, chairman and CEO. “Retail and institutional commission activity extended its robust resurgence in our first fiscal quarter as favorable corporate earnings results and strong domestic GDP growth reinforced investor confidence. Consequently, commissions increased 28% over last year’s comparable period and even surpassed the impressive levels attained in the immediately preceding quarter by 8%.
“Dramatic increases in investment banking revenues and trading profits, which increased 76% and 83% respectively, were generated by continued low interest rates and an active IPO market, in which we managed or co-managed 23 transactions,” he continues. “Positive net sales and improved market values increased assets under management, resulting in a 22% increase in investment advisory fees. Thus, Raymond James’ total net revenues ascended 25% over last year’s first quarter results.
“As expenses only grew 22%,” James adds, “the positive operative leverage produced a 68% increase in net income to $24.2 million or $0.49 per diluted share, in spite of the fact we increased reserves for our estimates of voluntarily reimbursing affected clients for mutual fund breakpoint discounts relating to activity in 1999 and 2000 and accrued for estimated penalties now expected to be imposed by the Securities Exchange Commission. The combined impact of these additional adjustments diminished earnings per share by approximately $0.08 in the quarter.
“Although the stock market’s recovery over the last nine months suggests that the risk of a correction is present and interest rates have probably already established their lows for the cycle, a strong U.S. economy and vibrant prospects for future growth in corporate earnings augur well for our industry and firm in 2004,” he concludes.
Today, James will appear on CNBC’s “Morning Call” at 10:20 a.m. EST, as well as on Bloomberg at 3:39 p.m. EST, to discuss these results.
In addition, the company will conduct its quarterly conference call January 15 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 Our Company, Financial Results and SEC Filings.
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 more than 5,000 financial advisors in 2,100 locations throughout the United States, Canada and internationally, as well as through its asset management subsidiaries, which currently manage $20.1 billion.
Unaudited Report | |||||
For the first quarter ended Dec. 26, 2003 | |||||
(all data in thousands, except per share earnings) | |||||
First quarter | |||||
2004 | 2003 | % | |||
Total revenues | $424,660 | $344,608 | 23% | ||
Net revenues | 413,987 | 331,395 | 25% | ||
Net income | 24,230 | 14,428 | 68% | ||
Earnings per | |||||
Share – diluted | 0.49 | 0.29 | 69% | ||
Average shares | |||||
Outstanding – diluted | 49,407 | 49,566 | |||
Balance Sheet Data | |||||
Dec. 2003 | Sept. 2003 |
| |||
Total assets | $6.9 bil. | $6.9 bil. | |||
Shareholders' equity | $956 mil. | $925 mil. | |||
Book value per share | $19.60 | $19.06 | |||
Management Data | |||||
Dec. 2003 | Dec. 2002 | Sept. 2003 | |||
No. financial advisors: | |||||
United States | 4,785 | 4,947 | 4,770 | ||
Canada | 236 | 249 | 226 | ||
No. managed/co-managed | 23 | 9 | 27 | ||
Assets under management – U.S. | $20.1 bil. | $16.0 bil. | $18.8 bil. | ||
For additional information, contact
Mike White at 727-567-2824.
Please visit the Raymond James Press Center at www.RaymondJames.com/media.htm.
Raymond James Financial, Inc. | |||||||
Consolidated Business Segments | |||||||
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REVENUES | |||||||
Three months ended |
|
|
|
| |||
Dec. 26, | Dec. 27, | $ | % | ||||
2003 | 2002 | change | change | ||||
Private Client Group | $ 286,803 | $ 228,481 | $ 58,322 | 26% | |||
| |||||||
Capital Markets | 91,607 | 69,257 | $ 22,350 | 32% | |||
Asset Management | 33,911 | 29,211 | $ 4,700 | 16% | |||
| |||||||
RJ Bank | 6,558 | 7,994 | $ (1,436) | (18%) | |||
Other | 5,781 | 9,665 | $ (3,884) | (40%) | |||
| |||||||
Total | $ 424,660 | $ 344,608 | $ 80,052 | 23% | |||
PRE-TAX INCOME | |||||||
Three months ended |
|
|
|
| |||
Dec. 26, | Dec. 27, | $ | % | ||||
2003 | 2002 | change | change | ||||
Private Client Group | $27,259 | $ 8,868 | $ 18,391 | 207% | |||
| |||||||
Capital Markets | 6,015 | 3,083 | $ 2,932 | 95% | |||
Asset Management | 4,922 | 5,364 | $ (442) | (8%) | |||
| |||||||
RJ Bank | 1,897 | 3,100 | $ (1,203) | (39)% | |||
Other | (1,138) | 2,950 | $ (4,088) | (139)% | |||
Total operating | $ 38,955 | $ 23,365 | $ 15,590 | 67% | |||
RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES | |||||||||
CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||
(UNAUDITED) | |||||||||
Quarter-to-Date | |||||||||
(in 000s, except per share amounts) | |||||||||
| Three months ended | ||||||||
| Dec. 26, | Dec. 27, | % | Sept. 26, | % | ||||
| 2003 | 2002 | change | 2003 | Change | ||||
Revenues: | |||||||||
Securities commissions and fees | $ 303,291 | $ 237,848 | 28% | $ 279,737 | 8% | ||||
Investment banking | 19,726 | 11,208 | 76% | 34,146 | (42%) | ||||
Investment advisory fees | 31,958 | 26,283 | 22% | 30,782 | 4% | ||||
Interest | 31,156 | 34,646 | (10%) | 29,697 | 5% | ||||
Net trading profits | 6,779 | 3,707 | 83% | 2,960 | 129% | ||||
Financial service fees | 18,702 | 15,506 | 21% | 19,537 | (4%) | ||||
Other | 13,048 | 15,410 | (15%) | 15,840 | (18%) | ||||
| |||||||||
TOTAL REVENUES | 424,660 | 344,608 | 23% | 412,699 | 3% | ||||
Interest expense | 10,673 | 13,213 | (19%) | 9,943 | 7% | ||||
NET REVENUES | 413,987 | 331,395 | 25% | 402,756 | 3% | ||||
| |||||||||
Non-interest expenses | |||||||||
Compensation, commissions and benefits | 300,660 | 234,866 | 28% | 280,551 | 7% | ||||
Communications and information | 19,196 | 18,966 | 1% | 19,012 | 1% | ||||
Occupancy and equipment costs | 15,293 | 15,648 | (2%) | 16,119 | (5%) | ||||
Clearance and floor brokerage | 5,052 | 3,531 | 43% | 4,865 | 4% | ||||
Business development | 12,943 | 12,277 | 5% | 14,446 | (10%) | ||||
Other | 21,888 | 22,742 | (4%) | 15,268 | 43% | ||||
|
| ||||||||
TOTAL NON-INTEREST EXPENSES | 375,032 | 308,030 | 22% | 350,261 | 7% | ||||
| |||||||||
Income before provision for income taxes | 38,955 | 23,365 | 67% | 52,495 | (26%) | ||||
Provision for income taxes | 14,725 | 8,937 | 65% | 19,361 | (24%) | ||||
Net income | $ 24,230 | $ 14,428 | 68% | $ 33,134 | (27%) | ||||
Net income per share basic | $ 0.50 | $ 0.30 | 66% | $ 0.68 | (26%) | ||||
Net income per share diluted | $ 0.49 | $ 0.29 | 69% | $ 0.67 | (27%) | ||||
Weighted average common shares | |||||||||
outstanding – basic | 48,587 | 48,762 | 48,440 | ||||||
Weighted average common and common | |||||||||
equivalent shares outstanding - diluted | 49,407 | 49,566 | 49,133 | ||||||
