Release No. 1005-01 FOR IMMEDIATE RELEASE
October 26, 2005
RAYMOND JAMES FINANCIAL, INC.
REPORTS RECORD FOURTH QUARTER RESULTS
ST. PETERSBURG, Fla. - Raymond James Financial, Inc. today reported a 46 percent increase in unaudited net income to a record $44,724,000, or $0.59 per diluted share, for the fourth quarter ended Sept. 30, 2005, on record net revenues of $563,561,000, compared to net income of $30,663,000, or $0.41 per diluted share, for fiscal 2004’s fourth quarter.
Unaudited net income for the 12 months of fiscal 2005 was reported at a record $151,046,000, up from 2004’s $127,575,000, while net revenues increased to a record $2,039,208,000 from $1,781,259,000 the previous year. Diluted earnings per share were $2.00 versus $1.72 for last year.
“Although we achieved record revenues and net income in the fourth quarter and the whole 2005 year, at this moment I’m happier to report that our headquarters has thus far survived a very active hurricane season for the second consecutive year,” stated Chairman and CEO Thomas A. James. “Unfortunately, a number of our offices in south Florida are still without power as a result of Wilma’s fury, just as a number of our offices in Louisiana, Mississippi and Texas suffered through Katrina’s and Rita’s earlier wrath. From a business perspective, hurricanes do impact business in the affected local areas but, more important, our associates have escaped serious damage.”
“Outstanding results in Investment Banking and net interest earnings, complemented by a solid performance by asset management and recent recruiting success in the Private Client Group, powered the results to new records in spite of the $6.5 million pretax charge necessitated by Delta’s bankruptcy filing, which rendered our 757 lease to them valueless.”
Release No. 1005-01 Raymond James Financial, Inc.
Page 2
“Although the market remains volatile as it is buffeted by unfavorable inflationary influences and a probable pattern of future interest rate hikes, activity levels in all areas of our business remain vibrant,” James concluded.
The company will conduct its quarterly conference call October 27 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 approximately 1.4 million accounts in 2,100 locations throughout the United States, Canada and overseas. In addition, total client assets are currently over $150 billion, of which approximately $27.5 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.
-more-
Release No. 1005-01 Raymond James Financial, Inc.
Page 3
| | Raymond James Financial, Inc. |
| | Unaudited Report |
| | For the fourth quarter ended September 30, 2005 |
| | (all data in thousands, except per share earnings) |
| | | | | | | | | | | | |
| | Fourth Quarter | | Fiscal Year |
| | 2005 | | 2004 | | % Change | | 2005 | | 2004 | | % Change |
| | | | | | | | | | | | |
| Gross revenues | $ 593,931 | | $ 462,209 | | 28% | | $2,156,997 | | $1,829,776 | | 18% |
| Net revenues | 563,561 | | 446,713 | | 26% | | 2,039,208 | | 1,781,259 | | 14% |
| Net income | 44,724 | | 30,663 | | 46% | | 151,046 | | 127,575 | | 18% |
| | | | | | | | | | | | |
| Net income per share | | | | | | | | | | | |
| Share - diluted | $ 0.59 | | $ 0.41 | | 44% | | $ 2.00 | | $ 1.72 | | 16% |
| Average shares | | | | | | | | | | | |
| outstanding - diluted | 75,846 | | 74,550 | | | | 75,365 | | 74,402 | | |
| | Balance Sheet Data |
| | September 2005 | | September 2004 |
| | | | |
| Total assets | $ 8.35 bil. | | $ 7.6 bil. |
| Shareholders' equity | $1,242 mil. | | $1,065 mil. |
| Book value per share | $16.43 | | $14.42 |
| | | | |
| | Management Data |
| | Quarter Ended | | | | YTD |
| | September 2005 | | September 2004 | | June 2005 | | September 2005 | | September 2004 |
| | | | | | | | | | |
| Total financial advisors*: | | | | | | | | | |
| United States | 4,591 | | 4,525 | | 4,537 | | 4,591 | | 4,525 |
| Canada | 295 | | 274 | | 282 | | 295 | | 274 |
| | | | | | | | | | |
| # Lead managed/co-managed | | | | | | | | | |
| Corporate Public offerings in U.S. | 32 | | 25 | | 20 | | 98 | | 96 |
| Corporate Public offerings in Canada | 5 | | 3 | | 3 | | 20 | | 24 |
| Financial assets under management | $ 27.5 bil. | | $ 22.3 bil. | | $ 26.2 bil. | | $ 27.5 bil. | | $ 22.3 bil. |
*Prior quarters were restated to reflect a change in the definition of a producing financial advisor.
- more -
Release No. 1005-01 Raymond James Financial, Inc.
Page 4
| | | | | | | | |
| | September | | June | | March | | September |
| | 2005 | | 2005 | | 2005 | | 2004 |
| | | | | | | | |
| Client Assets | $ 151 bil. | | $ 142 bil. | | $ 136 bil. | | $ 124 bil. |
| Client Margin Balances | $1,230 mil. | | $1,214 mil. | | $1,190 mil. | | $1,173 mil. |
| Client Trade Volume | 2,278,000 | | 1,884,000 | | 1,993,000 | | 1,680,000 |
| # of Client Accounts | 1,354,000 | | 1,363,000 | | 1,347,000 | | 1,321,000 |
| | Year Ended |
| | September 30, | September 24, |
| | 2005 | 2004 |
| | (000's) |
| Revenues: | | |
| Private Client Group | $ 1,397,578 | $ 1,202,368 |
| Capital Markets | 448,975 | 400,787 |
| Asset Management | 171,916 | 148,160 |
| RJBank | 45,448 | 28,104 |
| Other | 93,080 | 50,357 |
| Total | $ 2,156,997 | $ 1,829,776 |
| | | |
| Pre-tax Income: | | |
| Private Client Group | $ 102,245 | $ 107,122 |
| Capital Markets | 77,153 | 57,910 |
| Asset Management | 40,841 | 27,875 |
| RJBank | 14,204 | 8,824 |
| Other | 13,528 | 2,390 |
| Total | $ 247,971 | $ 204,121 |
- more -
|
CONSOLIDATED STATEMENT OF OPERATIONS |
(UNAUDITED) |
Quarter-to-Date |
| (in thousands, except per share earnings) |
| | Three Months Ended | | | | | | |
| | September 30, | | September 24, | | % | | June 24 | | % |
| | 2005 | | 2004 | | Change | | 2005 | | Change |
| Revenues: | | | | | | | | | |
| Securities commissions and fees | $373,702 | | $308,314 | | 21% | | $349,364 | | 7% |
| Investment banking | 62,730 | | 37,332 | | 68% | | 30,544 | | 105% |
| Investment advisory fees | 42,196 | | 34,513 | | 22% | | 38,674 | | 9% |
| Interest | 67,400 | | 38,763 | | 74% | | 66,354 | | 2% |
| Net trading profits | 4,693 | | 7,242 | | (35%) | | 2,722 | | 72% |
| Financial service fees | 21,349 | | 19,305 | | 11% | | 20,507 | | 4% |
| Other | 21,861 | | 16,740 | | 31% | | 18,197 | | 20% |
| | | | | | | | | | |
TOTAL REVENUES | 593,931 | | 462,209 | | 28% | | 526,362 | | 13% |
| Interest Expense | 30,370 | | 15,496 | | 96% | | 32,818 | | (7%) |
NET REVENUES | 563,561 | | 446,713 | | 26% | | 493,544 | | 14% |
| | | | | | | | | | |
| Non-Interest Expenses: | | | | | | | | | |
| Compensation, commissions and benefits | 389,342 | | 311,427 | | 25% | | 348,361 | | 12% |
| Communications and information processing | 24,675 | | 21,211 | | 16% | | 23,948 | | 3% |
| Occupancy and equipment costs | 18,378 | | 15,904 | | 16% | | 16,695 | | 10% |
| Clearance and floor brokerage | 6,049 | | 5,308 | | 14% | | 6,769 | | (11%) |
| Business development | 20,500 | | 17,769 | | 15% | | 17,057 | | 20% |
| Other | 35,752 | | 23,667 | | 51% | | 29,750 | | 20% |
| | | | | | | | | | |
TOTAL NON-INTEREST EXPENSES | 494,696 | | 395,286 | | 25% | | 442,580 | | 12% |
| | | | | | | | | | |
| Income before provision for income taxes | 68,865 | | 51,427 | | 34% | | 50,964 | | 35% |
| Provision for income taxes | 28,837 | | 19,881 | | 45% | | 19,094 | | 51% |
| | | | | | | | | | |
| Minority Interest | (4,696) | | 883 | | (632%) | | (512) | | (817%) |
| | | | | | | | | | |
Net Income | $ 44,724 | | $ 30,663 | | 46% | | $ 32,382 | | 38% |
Net Income per share basic | $ 0.60 | | $ 0.42 | | | | $ 0.44 | | |
Net Income per share diluted | $ 0.59 | | $0.41 | | | | $ 0.43 | | |
Weighted average common shares | | | | | | | | | |
outstanding-basic | 73,945 | | 73,756 | | | | 73,663 | | |
Weighted average common and common | | | | | | | | | |
equivalent shares outstanding-diluted | 75,846 | | 74,550 | | | | 75,588 | | |
| | | | | | | | | | |
-more-
RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENT OF OPERATIONS |
(UNAUDITED) |
Year-to-Date |
| (in thousands, except per share earnings) |
| | Twelve Months Ended |
| | September 30, | | September 24, | | % |
| | 2005 | | 2004 | | Change |
| Revenues: | | | | | |
| Securities commissions and fees | $ 1,421,908 | | $ 1,290,344 | | 10% |
| Investment banking | 150,166 | | 106,350 | | 41% |
| Investment advisory fees | 157,428 | | 134,447 | | 17% |
| Interest | 245,562 | | 134,764 | | 82% |
| Net trading profits | 24,612 | | 23,565 | | 4% |
| Financial service fees | 86,014 | | 80,431 | | 7% |
| Other | 71,307 | | 59,875 | | 19% |
| | | | | | |
| TOTAL REVENUES | 2,156,997 | | 1,829,776 | | 18% |
| Interest Expense | 117,789 | | 48,517 | | 143% |
NET REVENUES | 2,039,208 | | 1,781,259 | | 14% |
| | | | | | |
| Non-Interest Expenses: | | | | | |
| Compensation, commissions and benefits | 1,429,104 | | 1,273,420 | | 12% |
| Communications and information processing | 91,881 | | 82,186 | | 12% |
| Occupancy and equipment costs | 66,948 | | 61,339 | | 9% |
| Clearance and floor brokerage | 24,063 | | 20,773 | | 16% |
| Business development | 67,802 | | 59,963 | | 13% |
| Other | 113,957 | | 77,347 | | 47% |
| | | | | | |
TOTAL NON-INTEREST EXPENSES | 1,793,755 | | 1,575,028 | | 14% |
| | | | | | |
| Income before provision for income taxes | 245,453 | | 206,231 | | 19% |
| Provision for income taxes | 96,925 | | 76,546 | | 27% |
| | | | | | |
| Minority Interest | (2,518) | | 2,110 | | (219)% |
Net Income | $ 151,046 | | $ 127,575 | | 18% |
| | | | | | |
Net Income per share basic | $ 2.06 | | $ 1.74 | | |
Net Income per share diluted | $ 2.00 | | $ 1.72 | | |
Weighted average common shares | | | | | |
outstanding-basic | 73,478 | | 73,395 | | |
Weighted average common and common | | | | | |
equivalent shares outstanding-diluted | 75,365 | | 74,402 | | |
| | | | | | |
- 30 -
For additional information, contact Michael White at 727-567-2824.
Please visit the Raymond James Press Center at raymondjames.com/media.htm.
