Exhibit 99
Jefferies Announces First Quarter Earnings;
Strong Investment Banking Offsets Industrywide Softness in Institutional Trading
NEW YORK--(BUSINESS WIRE)--April 15, 2003--Jefferies Group, Inc.
(NYSE: JEF) today announced financial results for the first quarter
ended March 28, 2003.
Highlights for the first quarter ended March 28, 2003:
-- Net earnings were $14.2 million, versus $17.7 million for the
first quarter of 2002.
-- Earnings per share (diluted) were $0.50 compared to $0.65 in
the first quarter of 2002.
-- Total revenues were $185.3 million, versus $195.3 million for
the first quarter of 2002.
-- Investment banking revenues increased 17% to $44.2 million
compared to $37.7 million in the first quarter of 2002.
"We are pleased with our diversification strategy as strong
investment banking revenues in the first quarter offset softness in
our institutional trading business," said Richard B. Handler, Chairman
and Chief Executive Officer of Jefferies. "A 42% increase since the
fourth quarter, and 17% year-over-year, reflect our efforts to build
Jefferies' investment banking business."
"Jefferies' institutional equity trading platform performed well
relative to other Wall Street firms whose comparable businesses were
down significantly. The weakness was due to lower institutional
trading volumes, lack of volatility, and war and business related
uncertainty," added John C. Shaw, Jr., President of Jefferies.
Conference Call
A conference call with management discussion of financial results
for the first quarter ended March 28, 2003 will be held April 15 at
10:30 AM Eastern and can be accessed at (617) 801-9714. A live audio
Webcast and delayed replay will also be available under "Investor
Relations/Financials" at www.jefco.com. Questions for consideration by
management can be submitted in advance through the "Contact Us"
function at www.jefco.com or by calling 203-708-5975 by 9 AM Eastern
on April 15.
About Jefferies
Jefferies Group, Inc. (NYSE: JEF) is a holding company whose
affiliated companies, including its principal operating subsidiary,
Jefferies & Company, Inc., offer a variety of services for
institutional investors and growth companies. Subsidiaries of
Jefferies Group, Inc., together, comprise a full-service investment
bank and institutional securities firm focused on the middle market.
Jefferies offers financial advisory, capital raising, mergers and
acquisitions, and restructuring services to small and mid-cap
companies. The firm provides outstanding trade execution in equity,
high yield, convertible and international securities, as well as
fundamental research and asset management capabilities, to
institutional investors. Additional services include correspondent
clearing, prime brokerage, private client services and securities
lending. The firm's leadership in equity trading is recognized by
numerous consulting and survey organizations, and Jefferies'
subsidiary, Helfant Group, Inc., executes approximately twelve percent
of the daily reported volume on the NYSE.
Through its subsidiaries, Jefferies Group, Inc. employs more than
1,350 people in 21 offices worldwide, including Atlanta, Boston,
Chicago, Dallas, Hong Kong, London, Los Angeles, New York, Paris, San
Francisco, Tokyo, Washington and Zurich. Further information about
Jefferies, including a description of investment banking, trading,
research and asset management services, can be found at www.jefco.com.
JEFFERIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Ended
-------------------
Mar. 28, Mar. 29,
2003 2002
--------- ---------
Revenues:
Commissions $ 56,657 $ 64,573
Principal transactions 58,689 66,667
Investment banking 44,203 37,668
Interest 21,499 21,629
Asset management 2,677 3,487
Other 1,574 1,318
--------- ---------
Total revenues 185,299 195,342
Interest expense 21,050 17,598
--------- ---------
Revenues, net of interest expense 164,249 177,744
--------- ---------
Non-interest expenses:
Compensation and benefits 95,397 104,567
Floor brokerage and clearing fees 10,812 14,148
Technology and communications 14,471 11,395
Occupancy and equipment rental 7,326 6,158
Business development 6,050 6,304
Other 6,936 5,208
--------- ---------
Total non-interest expenses 140,992 147,780
--------- ---------
Earnings before income taxes 23,257 29,964
Income taxes 9,072 12,292
--------- ---------
Net earnings $ 14,185 $ 17,672
========= =========
Earnings per share:
Basic $ 0.57 $ 0.71
========= =========
Diluted $ 0.50 $ 0.65
========= =========
Weighted average shares:
Basic 24,905 24,766
Diluted 28,562 27,380
JEFFERIES GROUP, INC. AND SUBSIDIARIES
SELECTED STATISTICAL INFORMATION
(Dollars in Thousands, Except Per Share Amounts)
(Unaudited)
Quarters ended
--------------------------------------------------------
3/28/2003 12/31/2002 9/27/2002 6/28/2002 3/29/2002
---------- ----------- ---------- ---------- ----------
Statement of
Earnings
- --------------
Revenues, net
of interest
expense $164,249 $159,907 $158,909 $178,129 $177,744
Non-interest
expenses:
Compen-
sation and
benefits 95,397 87,425 91,878 101,715 104,567
Non-
personnel
expenses 45,595 47,965 47,717 46,517 43,213
---------- ----------- ---------- ---------- ----------
Earnings
before
income taxes 23,257 24,517 19,314 29,897 29,964
Income taxes 9,072 9,015 7,532 12,282 12,292
---------- ----------- ---------- ---------- ----------
Net
earnings $14,185 $15,502 $11,782 $17,615 $17,672
========== =========== ========== ========== ==========
Diluted
earnings per
share $0.50 $0.56 $0.43 $0.64 $0.65
========== =========== ========== ========== ==========
Financial
Ratios
- --------------
Pretax
operating
margin 14.2% 15.3% 12.2% 17.2% 16.9%
Compensation
and
benefits/net
revenues 58.1% 54.7% 57.8% 57.1% 58.8%
Effective tax
rate 39.0% 36.8% 39.0% 41.0% 41.0%
JEFFERIES GROUP, INC. AND SUBSIDIARIES
SELECTED STATISTICAL INFORMATION
(Dollars and Shares in Thousands)
(Unaudited)
Quarters ended
--------------------------------------------------------
3/28/2003 12/31/2002 9/27/2002 6/28/2002 3/29/2002
---------- ----------- ---------- ---------- ----------
Revenues by
Source
- --------------
Commissions
and principal
transactions:
Equities $69,993 $86,802 $81,613 $76,257 $83,163
Inter-
national 16,231 16,703 21,602 19,563 16,985
High yield 10,835 7,479 6,502 9,826 10,263
Conver-
tibles 8,184 7,825 6,823 7,573 7,463
Execution 5,089 5,842 6,380 8,262 8,826
Other pro-
prietary
trading 5,014 (2,420) (2,477) 8,870 4,540
---------- ----------- ---------- ---------- ----------
Total 115,346 122,231 120,443 130,351 131,240
Investment
banking 44,203 31,059 29,451 41,650 37,668
Interest 21,499 20,860 25,091 24,447 21,629
Asset
management 2,677 3,425 2,390 2,724 3,487
Other 1,574 1,831 1,776 1,705 1,318
---------- ----------- ---------- ---------- ----------
Total
revenues $185,299 $179,406 $179,151 $200,877 $195,342
========== =========== ========== ========== ==========
Other Data
- --------------
Number of
trading days 60 65 63 64 60
Average
employees 1,359 1,323 1,292 1,229 1,203
Common shares
outstanding 27,568 26,952 26,895 26,930 26,774
Weighted
average
shares:
Basic 24,905 24,439 24,645 24,626 24,766
Diluted 28,562 27,618 27,618 27,436 27,380
As of March 28, 2003, stockholders' equity amounted to $660
million, resulting in a book value of $23.95 per share.
CONTACT: Jefferies Group, Inc.
Joseph A. Schenk, 212/284-2338