UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section l3 and l5(d) of the
Securities Exchange Act of l934
July 18, 2005
Date of report (date of earliest event reported)
Raymond James Financial, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Florida
(State or Other Jurisdiction of Incorporation)
1-9109 | 59-1517485 | |
| (Commission File Number) | (IRS Employer Identification No.) |
880 Carillon Parkway St. Petersburg, FL 33702
(Address of Principal Executive Offices) (Zip Code)
(727) 567-1000
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 7.01 Regulation FD Disclosure
The following information was contained in a press release issued on July 18, 2005.
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 hereunto duly authorized.
| RAYMOND JAMES FINANCIAL, INC. | ||
| Date: July 18, 2005 | 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 | ||
Release No. 0705-03 FOR IMMEDIATE RELEASE
July 18, 2005
RAYMOND JAMES FINANCIAL, INC.
REPORTS THIRD QUARTER RESULTS
ST. PETERSBURG, Fla. - Raymond James Financial, Inc. today reported a 9 percent increase in unaudited net income to $32,382,000, or $0.43 per diluted share, for the third quarter ended June 24, 2005, on slightly higher net revenues of $493,544,000, compared to net income of $29,614,000, or $0.40 per diluted share, for fiscal 2004’s third quarter.
Unaudited net income for the nine months of fiscal 2005 was reported at $106,322,000, up from 2004’s $96,912,000, while net revenues for the period increased to $1,475,647,000 from $1,334,547,000 the previous year. Diluted earnings per share were $1.41 versus $1.30 for last year’s comparable period.
“Reflecting vibrant business activity across the firm, gross revenues and net revenues in our third fiscal quarter increased 17 percent and 12 percent, respectively, over last year’s comparable quarter,” stated Chairman and CEO Thomas A. James.
“Although the 9 percent increase in net income was respectable, net additions to legal and settlement reserves of $8 million, of which $6.5 million related to two series of claims, obscured the excellent operating results’ impact on net income. One of those was the “Premier 72” (Lapin) group of claims, of which approximately two-thirds were settled for $24 million after several years of litigation. As a result, Private Client Group profits were down $10 million from last year and masked excellent operating results in Capital Markets, Asset Management, Raymond James Bank and our venture capital investments.
“While litigation costs associated with the 2000-2002 market have continued to be a drag -more-
Release No. 0705-03 Raymond James Financial, Inc.
Page 2
on earnings, there is an encouraging trend in a reduction in the number of complaints. An improved investment climate, as well as recruiting success in our brokerage subsidiaries, augurs well for the final quarter. We have participated in the summer rally since mid-June, which has favorably influenced investment results and activity,” James concluded.
The company will conduct its quarterly conference call July 19 at 4:15 p.m. EST. The telephone number is 800-773-5520. The call will also be available on demand on the company’s Web site, raymondjames.com, under “About Raymond James Financial,”“Financial Reports.”
Raymond James Financial (NYSE-RJF) is a Florida-based diversified holding company providing financial services to individuals, corporations and municipalities through its subsidiary companies. Its three wholly owned broker/dealers, Raymond James & Associates, Raymond James Financial Services and Raymond James Ltd. have more than 4,800 financial advisors serving 1.3 million accounts in 2,100 locations throughout the United States, Canada and overseas. In addition, total client assets are currently over $142 billion, of which more than $26 billion are managed by the firm’s asset management subsidiaries.
To the extent that Raymond James makes or publishes forward-looking statements regarding management expectations, strategic objectives, business prospects, anticipated expense savings, financial results, anticipated results of litigation and regulatory proceedings, and other similar matters, a variety of factors - many of which are beyond Raymond James’ control - could cause actual results and experiences to differ materially from the expectations and objectives expressed in these statements. These factors are described in Raymond James’ 2004 annual report on Form 10-K, which is available on raymondjames.com and sec.gov.
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Release No. 0705-03 Raymond James Financial, Inc.
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Raymond James Financial, Inc. | |||||||||||
Unaudited Report | |||||||||||
| For the third quarter ended June 24, 2005 | |||||||||||
| (all data in thousands, except per share earnings) | |||||||||||
| Third Quarter | Nine Months | ||||||||||
| 2005 | 2004 | Percent Change | 2005 | 2004 | Percent Change | ||||||
| Revenues | $526,362 | $451,535 | 17% | $1,563,066 | $1,367,568 | 14% | |||||
| Net Revenues | 493,544 | 440,111 | 12% | 1,475,647 | 1,334,547 | 11% | |||||
| Net Income | 32,382 | 29,613 | 9% | 106,322 | 96,912 | 10% | |||||
| Earnings Per Share - Diluted | 0.43 | 0.40 | 1.41 | 1.30 | |||||||
| Average Shares | |||||||||||
| Outstanding - Diluted | 75,588 | 74,560 | 75,493 | 74,353 | |||||||
Balance Sheet Data | |||||||
| June | March | September | June | ||||
| 2005 | 2005 | 2004 | 2004 | ||||
| Total Assets | $7.8 bil. | $7.9 bil. | $ 7.6 bil. | $7.3 bil. | |||
| Shareholders’ Equity | $1,192 mil. | $1,160 mil. | $1,065 mil. | $1,033 mil. | |||
| Book Value Per Share | $15.82 | $15.44 | $14.42 | $14.01 | |||
Management Data | |||||||
| June | March | September | June | ||||
| 2005 | 2005 | 2004 | 2004 | ||||
| Total Financial Advisors* | |||||||
| United States | 4,537 | 4,488 | 4,539 | 4,633 | |||
| Canada | 282 | 279 | 274 | 261 | |||
# Lead Managed/Co-Managed Public Offerings in United States | 20 | 20 | 25 | 22 | |||
| Financial Assets Under Management | $26.2 bil. | $25.4 bil. | $ 22.3 bil. | $22.1 bil. | |||
*Prior quarters were restated to reflect a change in the definition of a producing Financial Advisor.
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| June | March | September | June | ||||
| 2005 | 2005 | 2004 | 2004 | ||||
| Client Assets | $ 142 bil. | $ 136 bil. | $ 124 bil. | $109 bil. | |||
| Client Margin Balances | $1,214 mil. | $1,190 mil. | $1,173 mil. | $1,129 mil. | |||
| Client Trade Volume | 1,884,000 | 1,993,000 | 1,680,000 | 1,739,000 | |||
| # of Client Accounts | 1,363,000 | 1,347,000 | 1,321,000 | 1,340,000 |
Segment Data | |||||||
| Three Months Ended | Nine Months Ended | ||||||
| June 24, | June 25, | June 24, | June 25, | ||||
| 2005 | 2004 | 2005 | 2004 | ||||
Revenues: | |||||||
| Private Client Group | $ 341,559 | $311,509 | $ 1,019,478 | $ 925,728 | |||
| Capital Markets | 106,134 | 89,151 | 326,817 | 294,004 | |||
| Asset Management | 43,139 | 36,956 | 125,661 | 109,137 | |||
| Raymond James Bank | 12,243 | 7,099 | 31,046 | 20,554 | |||
| Other | 23,287 | 6,820 | 60,064 | 18,145 | |||
| Total | $ 526,362 | $451,535 | $1,563,066 | $1,367,568 | |||
Pre-tax Income: | |||||||
| Private Client Group | $ 17,879 | $ 27,835 | $ 81,634 | $ 90,122 | |||
| Capital Markets | 15,229 | 10,197 | 45,482 | 37,822 | |||
| Asset Management | 10,292 | 7,485 | 29,107 | 21,385 | |||
| Raymond James Bank | 3,379 | 2,775 | 9,457 | 7,038 | |||
| Other | 4,697 | (577) | 8,730 | (2,790) | |||
| Total | $ 51,476 | $ 47,715 | $174,410 | $153,577 |
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Release No. 0705-03 Raymond James Financial, Inc.
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CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||
(UNAUDITED) | |||||||||
Quarter-to-Date | |||||||||
| (in thousands, except per share amounts) | |||||||||
Three Months Ended | |||||||||
June 24 | June 25, | % | March 24 | % | |||||
2005 | 2004 | Change | 2005 | Change | |||||
| Revenues: | |||||||||
| Securities commissions and fees | $349,364 | $ 326,701 | 7% | $341,373 | 2% | ||||
| Investment banking | 30,544 | 17,226 | 77% | 28,387 | 8% | ||||
| Investment advisory fees | 38,674 | 33,517 | 15% | 39,106 | -1% | ||||
| Interest | 66,354 | 33,271 | 99% | 57,392 | 16% | ||||
| Net trading profits | 2,722 | 5,031 | -46% | 7,445 | -63% | ||||
| Financial service fees | 20,507 | 20,852 | -2% | 21,748 | -6% | ||||
| Other | 18,197 | 14,937 | 22% | 16,876 | 8% | ||||
TOTAL REVENUES | 526,362 | 451,535 | 17% | 512,327 | 3% | ||||
| Interest Expense | 32,818 | 11,424 | 187% | 29,209 | 12% | ||||
NET REVENUES | 493,544 | 440,111 | 12% | 483,118 | 2% | ||||
| Non-Interest Expenses | |||||||||
| Compensation, commissions and benefits | 348,361 | 319,962 | 9% | 342,492 | 2% | ||||
| Communications and information processing | 23,948 | 20,425 | 17% | 22,059 | 9% | ||||
| Occupancy and equipment costs | 16,695 | 14,913 | 12% | 15,822 | 6% | ||||
| Clearance and floor brokerage | 6,769 | 5,094 | 33% | 5,779 | 17% | ||||
| Business development | 17,057 | 15,398 | 11% | 15,501 | 10% | ||||
| Other | 29,750 | 16,561 | 80% | 22,235 | 34% | ||||
TOTAL NON-INTEREST EXPENSES | 442,580 | 392,353 | 13% | 423,888 | 4% | ||||
| Income before provision for income taxes | 50,964 | 47,758 | 7% | 59,230 | -14% | ||||
| Provision for income taxes | 19,094 | 18,101 | 5% | 23,431 | -19% | ||||
| Minority Interest | -512 | 44 | 1,102 | ||||||
Net income | $ 32,382 | 29,613 | 9% | $ 34,697 | -7% | ||||
Net income per share basic | $ 0.44 | $ 0.40 | $ 0.47 | ||||||
Net income per share diluted | $ 0.43 | $ 0.40 | $ 0.46 | ||||||
Weighted average common shares | |||||||||
outstanding-basic | 73,663 | 73,592 | 74,874 | ||||||
Weighted average common and common | |||||||||
equivalent shares outstanding-diluted | 75,588 | 74,560 | 76,305 | ||||||
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RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENT OF OPERATIONS | |||||||
(UNAUDITED) | |||||||
Year-to-Date | |||||||
| (in thousands, except per share amounts) | |||||||
Nine Months Ended | |||||||
June 24, | June 25, | % | |||||
2005 | 2004 | Change | |||||
| Revenues: | |||||||
| Securities commissions and fees | $1,048,206 | $ 982,030 | 7% | ||||
| Investment banking | 87,436 | 69,017 | 27% | ||||
| Investment advisory fees | 115,233 | 99,934 | 15% | ||||
| Interest | 178,161 | 96,001 | 86% | ||||
| Net trading profits | 19,919 | 16,323 | 22% | ||||
| Financial service fees | 64,665 | 61,126 | 6% | ||||
| Other | 49,446 | 43,137 | 15% | ||||
TOTAL REVENUES | 1,563,066 | 1,367,568 | 14% | ||||
| Interest Expense | 87,419 | 33,021 | 165% | ||||
NET REVENUES | 1,475,647 | 1,334,547 | 11% | ||||
| Non-Interest Expenses | |||||||
| Compensation, commissions and benefits | 1,039,762 | 961,993 | 8% | ||||
| Communications and information processing | 67,205 | 60,975 | 10% | ||||
| Occupancy and equipment costs | 48,570 | 45,435 | 7% | ||||
| Clearance and floor brokerage | 18,014 | 15,466 | 16% | ||||
| Business development | 47,303 | 42,194 | 12% | ||||
| Other | 78,205 | 53,680 | 46% | ||||
TOTAL NON-INTEREST EXPENSES | 1,299,059 | 1,179,743 | 10% | ||||
| Income before provision for income taxes | 176,588 | 154,804 | 14% | ||||
| Provision for income taxes | 68,088 | 56,665 | 20% | ||||
| Minority Interest | 2,178 | 1,227 | 78% | ||||
Net income | $ 106,322 | $ 96,912 | 10% | ||||
Net income per share basic | $ 1.45 | $ 1.32 | |||||
Net income per share diluted | $ 1.41 | $ 1.30 | |||||
Weighted average common shares | |||||||
outstanding-basic | 73,320 | 73,275 | |||||
Weighted average common and common | |||||||
equivalent shares outstanding-diluted | 75,493 | 74,353 | |||||
For additional information, contact Tracey Bustamante at 727-567-2824.
Please visit the Raymond James Press Center at raymondjames.com/media.htm.