Exhibit 99.1
January 23, 2008 FOR IMMEDIATE RELEASE
RAYMOND JAMES FINANCIAL, INC.
ANNOUNCES FIRST QUARTER RESULTS
ST. PETERSBURG, Fla. – Raymond James Financial, Inc. today reported a 5 percent decrease over the prior year’s quarterly net income to $56,242,000 or $0.47 per diluted share, for the first quarter ended December 31, 2007. In comparison, the firm earned $59,395,000, or $0.50 per diluted share, for 2007’s first quarter. Net revenues increased 14 percent to $685,827,000, while gross revenues grew 17 percent to $829,191,000.
“Although we have avoided the losses directly attributed to the subprime financial debacle experienced by many large banks and securities firms, our results have been negatively impacted by the fallout. As a result, our earnings are down 5 percent from last year’s comparable first quarter in spite of a 14 percent increase in net revenues,” stated Chairman and CEO Thomas A. James.
“Good relative results in our Private Client Group, Asset Management Group and Raymond James Bank have been overshadowed by a $10 million reduction in the Capital Markets segment’s profits. Part of that decline relates to the absence of the largest merger fee in our history, which occurred in last year’s first quarter. As a result of the stock market’s volatility and apparently negative direction, underwriting activity has also come to a virtual standstill, which accounts for the rest of the decline. Absent this factor, Raymond James would have achieved earnings generally in line with analysts’ estimates,” James continued.
“The real question is whether the current market decline will worsen as a result of a combination of increasing risk of a recession and higher rates of inflation. Although I do not claim to have a crystal ball, that risk has certainly escalated in recent weeks as employment statistics have weakened. If investor perception worsens and/or actual corporate earnings results manifest that reality,results in the financial services sector will continue to disappoint. We will do our best to navigate these troubled waters. In any case, I remain confident that we will continue to outperform our peers.”
The company will conduct its quarterly conference call Thursday, January 24, at 4:15 p.m. EST. The telephone number is 877-777-1972. The call will also be available on demand on the company’s website, raymondjames.com, under “About Our Company,” “Investor Relations,” “Financial Reports,” “Quarterly Analyst Conference Call.” The subjects to be covered may also include forward-looking information. Questions may be posed to management by participants on the call, and in response the company may disclose additional material information.
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.) and Raymond James Investment Services Limited, a majority-owned independent contractor subsidiary in the United Kingdom, have a total of more than 4,770 financial advisors serving approximately 1.6 million accounts in 2,200 locations throughout the United States, Canada and overseas. In addition, total client assets are approximately $217 billion, of which $37.3 billion are managed by the firm’s asset management subsidiaries.
To the extent that Raymond James makes or publishes forward-looking statements (regarding economic conditions, management expectations, strategic objectives, business prospects, anticipated expense savings, financial results, anticipated results of litigation and regulatoryproceedings, 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’ 2007 annual report on Form 10-K, which is available on raymondjames.com and sec.gov.
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January 23, 2008 Raymond James Financial, Inc.
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| Raymond James Financial, Inc. | |
| Unaudited Report | |
| For the first quarter ended December 31, 2007 | |
| (all data in thousands, except per share earnings) | |
| | | | | | | |
| | First Quarter | |
| | 2008 | | 2007 | | % Change | |
| Gross revenues | $829,191 | | $ 709,629 | | 17% | |
| Net revenues | 685,827 | | 603,900 | | 14% | |
| Net income | 56,242 | | 59,395 | | (5%) | |
| | | | | | | |
| Net income per share - diluted | $ 0.47 | | $ 0.50 | | (6%) | |
| | | | | | | |
| Weighted average common and common | | | | | | |
| equivalent shares outstanding - diluted | 120,241 | | 117,893 | | | |
| | | | | | | |
| | Balance Sheet Data |
| | | | | | | | |
| | December | | December | | September | | June |
| | 2007 | | 2006 | | 2007 | | 2007 |
| Total assets | $ 17.1 bil. | | $ 12.3 bil. | | $ 16.3 bil. | | $15.8 bil. |
| Shareholders' equity | $1,806 mil. | | $1,529 mil. | | $1,758 mil. | | $1,680mil. |
| Book value per share | $15.46 | | $13.28 | | $15.07 | | $14.44 |
| | | | | | | | |
| | Management Data |
| | | | Quarter Ended | | |
| | December | | December | | September | | June |
| | 2007 | | 2006 | | 2007 | | 2007 |
| Total financial advisors: | | | | | | | |
| United States | 4,345 | | 4,356 | | 4,336 | | 4,307 |
| Canada | 348 | | 331 | | 341 | | 341 |
| United Kingdom | 82 | | 67 | | 81 | | 76 |
| | | | | | | | |
| # Lead managed/co-managed: | | | | | | | |
| Corporate public offerings in U.S. | 19 | | 27 | | 9 | | 22 |
| Corporate public offerings in Canada | 8 | | 2 | | 6 | | 14 |
| | | | | | | | |
| Financial assets under management | $37.3 bil. | | $33.9 bil. | | $37.1 bil. | | $ 36.1 bil. |
| | | | | | | | |
| Raymond James Bank Total Assets | $6.8 bil. | | $3.4 bil. | | $6.0 bil. | | $5.4 bil. |
| | | | | | | | |
| | December | | December | | September | | June |
| | 2007 | | 2006 | | 2007 | | 2007 |
| | | | | | | | |
| Client Assets | $ 217 bil. | | $ 193 bil. | | $ 215 bil. | | $ 207 bil. |
| Client Margin Balances | $1,525 mil. | | $1,391 mil. | | $1,526 mil. | | $1,441 mil. |
| | | | | | | | |
| | Three Months Ended |
| | December 31, | December 31, |
| | 2007 | 2006 |
| | (in 000’s) |
| Revenues: | | |
| Private Client Group | $ 516,022 | $ 449,133 |
| Capital Markets | 114,760 | 120,454 |
| Asset Management | 63,181 | 57,646 |
| RJBank | 102,589 | 50,402 |
| Emerging Markets | 12,658 | 11,797 |
| Stock Loan/Borrow | 13,876 | 15,059 |
| Proprietary Capital | 1,129 | (1,618) |
| Other | 4,976 | 6,756 |
| Total | $ 829,191 | $ 709,629 |
| | | |
Income Before Provision for Income Taxes: |
| Private Client Group | $ 55,154 | $ 54,010 |
| Capital Markets | 6,363 | 16,714 |
| Asset Management | 17,515 | 14,948 |
| RJBank | 14,774 | 6,439 |
| Emerging Markets | (1,546) | 936 |
| Stock Loan/Borrow | 1,643 | 196 |
| Proprietary Capital | (639) | (1,395) |
| Other | (2,507) | 1,918 |
| Pre- Tax Income | $ 90,757 | $ 93,766 |
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| RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES |
| CONSOLIDATED STATEMENT OF INCOME |
| (UNAUDITED) |
| Quarter-to-Date |
| (in thousands, except per share amounts) |
| | Three Months Ended |
| | Dec. 31, | | Dec. 31, | | % | | Sept. 30, | | % |
| | 2007 | | 2006 | | Change | | 2007 | | Change |
| Revenues: | | | | | | | | | |
| Securities commissions and fees | $ 472,605 | | $400,865 | | 18% | | $ 459,513 | | 3% |
| Investment banking | 23,855 | | 41,839 | | (43%) | | 60,432 | | (61%) |
| Investment advisory fees | 56,605 | | 50,136 | | 13% | | 53,589 | | 6% |
| Interest | 212,950 | | 158,224 | | 35% | | 212,265 | | 0% |
| Net trading profits | 1,102 | | 6,293 | | (82%) | | 42 | | 2,524% |
| Financial service fees | 32,975 | | 29,966 | | 10% | | 33,531 | | (2%) |
| Other | 29,099 | | 22,306 | | 30% | | 19,554 | | 49% |
| | | | | | | | | | |
| Total Revenues | 829,191 | | 709,629 | | 17% | | 838,926 | | (1%) |
| | | | | | | | | | |
| Interest Expense | 143,364 | | 105,729 | | 36% | | 147,290 | | (3%) |
| Net Revenues | 685,827 | | 603,900 | | 14% | | 691,636 | | (1%) |
| | | | | | | | | | |
| Non-Interest Expenses: | | | | | | | | | |
| Compensation, commissions and benefits | 470,604 | | 408,509 | | 15% | | 466,828 | | 1% |
| Communications and information processing | 31,011 | | 25,974 | | 19% | | 31,081 | | 0% |
| Occupancy and equipment costs | 21,397 | | 20,150 | | 6% | | 20,032 | | 7% |
| Clearance and floor brokerage | 8,586 | | 7,536 | | 14% | | 8,084 | | 6% |
| Business development | 23,859 | | 21,762 | | 10% | | 21,815 | | 9% |
| Investment advisory fees | 12,930 | | 11,066 | | 17% | | 12,837 | | 1% |
| Other | 26,138 | | 18,112 | | 44% | | 39,735 | | (34%) |
| Total Non-Interest Expenses | 594,525 | | 513,109 | | 16% | | 600,412 | | (1%) |
| | | | | | | | | | |
| Income before minority interest and | | | | | | | | | |
| provision for income taxes | 91,302 | | 90,791 | | 1% | | 91,224 | | 0% |
| | | | | | | | | | |
| Minority Interest | 545 | | (2,975) | | 118% | | (4,381) | | 112% |
| | | | | | | | | | |
| Income before provision for income taxes | 90,757 | | $ 93,766 | | (3%) | | 95,605 | | (5%) |
| | | | | | | | | | |
| Provision for income taxes | 34,515 | | 34,371 | | 0% | | 32,638 | | 6% |
| | | | | | | | | | |
| Net Income | $ 56,242 | | $ 59,395 | | (5%) | | $ 62,967 | | (11%) |
| Net Income per share-basic | $ 0.48 | | $ 0.52 | | (8%) | | $ 0.54 | | (11%) |
| Net Income per share-diluted | $ 0.47 | | $ 0.50 | | (6%) | | $ 0.53 | | (11%) |
| Weighted average common shares | | | | | | | | | |
| outstanding-basic | 116,881 | | 114,339 | | | | 116,440 | | |
| Weighted average common and common | | | | | | | | | |
| equivalent shares outstanding-diluted | 120,241 | | 117,893 | | | | 119,743 | | |
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For more information, contact Tracey Bustamante at 727-567-2824.
Please visit the Raymond James Press Center at raymondjames.com/media.
