Exhibit 99.1
Jefferies Announces Fourth Consecutive Record Year; Fourth Quarter Total
Revenues Up 61%, Earnings Per Share Up 79%
NEW YORK--(BUSINESS WIRE)--Jan. 20, 2004--Jefferies Group, Inc.
(NYSE: JEF) today announced record financial results for the fourth
quarter and year ended December 31, 2003.
Highlights for the fourth quarter ended December 31, 2003:
-- Earnings per share (diluted) were up 79% to a record $0.50
compared to $0.28 for the fourth quarter of 2002.
-- Net earnings were up 97% to a record $30.6 million compared to
$15.5 million for the fourth quarter of 2002.
-- Earnings before income taxes and minority interest were up
116% to a record $52.8 million compared to $24.5 million for
the fourth quarter of 2002.
-- Total revenues were up 61% to a record $289 million versus
$179 million for the fourth quarter of 2002.
-- Investment banking revenues climbed 217% to $98.7 million
compared to $31.1 million for the fourth quarter of 2002.
Highlights for the year ended December 31, 2003:
-- Earnings per share (diluted) were up 25% to a record $1.42
compared to $1.14 for 2002.
-- Net earnings were up 34% to a record $84.1 million compared to
$62.6 million for 2002.
-- Earnings before income taxes and minority interest were up 39%
to a record $144.5 million compared to $103.7 million for
2002.
-- Total revenues were up 23% to a record $927 million compared
to $755 million for 2002.
-- Investment banking revenues were up 64% to a record $229.6
million compared to $139.8 million for 2002.
In a joint statement, Richard B. Handler, Chairman and Chief
Executive Officer, and John C. Shaw, Jr., President, commented, "These
results are only possible because of the loyal support of our clients
and the dedication of our 1,600 employee-partners. We thank them all."
Conference Call
A conference call with management discussion of financial results
for the fourth quarter ended December 31, 2003 will be held January 21
at 11:00 AM (Eastern) and can be accessed at 617-801-9714 (code:
22871334). A replay of the call will be available two hours post-call
at 617-801-6888 (code: 14373163). A live audio webcast and delayed
replay will also be available under "Investor Relations" 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 9:30 AM Eastern on January
21.
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 middle-market 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 eleven percent
of the daily reported volume of the NYSE.
Through its subsidiaries, Jefferies Group, Inc. employs more than
1,600 people in offices worldwide, including Atlanta, Boston, Chicago,
Dallas, 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 Year Ended
-------------------- -------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2003 2002 2003 2002
--------- ---------- --------- ---------
Revenues:
Commissions $ 64,385 $ 69,165 $ 250,191 $ 268,984
Principal transactions 90,925 53,066 316,800 235,281
Investment banking 98,689 31,059 229,608 139,828
Interest 26,621 20,860 102,403 92,027
Asset management 6,690 3,425 17,268 12,026
Other 1,951 1,831 10,446 6,630
--------- ---------- ---------- ---------
Total revenues 289,261 179,406 926,716 754,776
Interest expense 23,557 19,499 97,102 80,087
--------- ---------- ---------- ---------
Revenues, net of interest
expense 265,704 159,907 829,614 674,689
--------- ---------- ---------- ---------
Non-interest expenses:
Compensation and benefits 149,201 87,425 474,709 385,585
Floor brokerage and
clearing fees 12,599 12,549 48,217 54,681
Technology and
communications 15,959 13,377 58,581 52,216
Occupancy and equipment
rental 7,885 7,139 32,534 26,156
Business development 8,890 5,538 26,481 22,973
Other 18,336 9,362 44,559 29,386
--------- ---------- ---------- ---------
Total non-interest expenses 212,870 135,390 685,081 570,997
--------- ---------- ---------- ---------
Earnings before income taxes
and minority interest 52,834 24,517 144,533 103,692
Income taxes 19,233 9,015 52,851 41,121
--------- ---------- ---------- ---------
Earnings before minority
interest 33,601 15,502 91,682 62,571
Minority interest in
earnings of consolidated
subsidiaries, net 3,005 -- 7,631 --
--------- ---------- ---------- ---------
Net earnings $ 30,596 $ 15,502 $ 84,051 $ 62,571
========= ========== ========== =========
Earnings per share:
Basic $ 0.57 $ 0.32 $ 1.58 $ 1.27
========= ========== ========== =========
Diluted $ 0.50 $ 0.28 $ 1.42 $ 1.14
========= ========== ========== =========
Weighted average shares:
Basic 54,113 48,878 53,090 49,232
Diluted 61,039 55,236 59,266 55,020
All share and per share information has been restated to retroactively
reflect the effect of the two-for-one stock split declared by the
Board of Directors on July 14, 2003 effected as a stock dividend on
Aug. 15, 2003.
JEFFERIES GROUP, INC. AND SUBSIDIARIES
SELECTED STATISTICAL INFORMATION
(Dollars in Thousands, Except Per Share Amounts)
(Unaudited)
Quarters ended
------------------------------------------------------
12/31/2003 9/26/2003 6/27/2003 3/28/2003 12/31/2002
---------- --------- --------- --------- ----------
Statement of
Earnings
- -------------
Revenues, net
of interest
expense $265,704 $200,830 $198,831 $164,249 $159,907
Non-interest
expenses:
Compensation
and benefits 149,201 115,996 114,115 95,397 87,425
Non-personnel
expenses 63,669 48,694 52,414 45,595 47,965
---------- --------- --------- --------- ---------
Earnings before
income taxes
and minority
interest 52,834 36,140 32,302 23,257 24,517
Income taxes 19,233 12,906 11,640 9,072 9,015
---------- --------- --------- --------- ---------
Earnings before
minority
interest 33,601 23,234 20,662 14,185 15,502
Minority interest
in earnings of
consolidated
subsidiaries,
net 3,005 2,702 1,924 -- --
---------- --------- --------- --------- ---------
Net earnings $30,596 $20,532 $18,738 $14,185 $15,502
========== ========= ========= ========= =========
Diluted earnings
per share $0.50 $0.35 $0.32 $0.25 $0.28
========== ========= ========= ========= =========
Financial Ratios
- ------------------
Pretax operating
margin 19.9% 18.0% 16.2% 14.2% 15.3%
Compensation and
benefits/net
revenues 56.2% 57.8% 57.4% 58.1% 54.7%
Effective tax rate 36.4% 35.7% 36.0% 39.0% 36.8%
All per share information has been restated to retroactively reflect
the effect of the two-for-one stock split declared by the Board of
Directors on July 14, 2003 effected as a stock dividend on Aug. 15,
2003.
JEFFERIES GROUP, INC. AND SUBSIDIARIES
SELECTED STATISTICAL INFORMATION
(Dollars and Shares in Thousands)
(Unaudited)
Quarters ended
-------------------------------------------------------
12/31/2003 9/26/2003 6/27/2003 3/28/2003 12/31/2002
---------- --------- --------- --------- ----------
Revenues by
Source
- ----------------
Commissions and
principal
transactions:
Equities $92,021 $85,142 $85,047 $69,993 $86,802
International 21,507 21,951 25,618 16,231 16,703
High yield 16,228 10,843 9,434 10,835 7,479
Convertibles 6,899 5,146 8,570 8,184 7,825
Execution 6,492 6,210 5,946 5,089 5,842
Bonds Direct 8,600 8,066 6,038 4,538 3,293
Other proprietary
trading 3,563 8,770 9,554 476 (5,713)
---------- --------- --------- --------- ---------
Total 155,310 146,128 150,207 115,346 122,231
Investment
banking 98,689 42,000 44,716 44,203 31,059
Interest 26,621 23,582 30,701 21,499 20,860
Asset management 6,690 4,891 3,010 2,677 3,425
Other 1,951 5,346 1,575 1,574 1,831
---------- --------- --------- --------- ---------
Total
revenues $289,261 $221,947 $230,209 $185,299 $179,406
========== ========= ========= ========= =========
Other Data
- ------------
Number of
trading days 66 63 63 60 65
Average employees 1,432 1,384 1,364 1,359 1,323
Common shares
outstanding 56,702 56,425 55,142 55,136 53,904
Weighted average
shares:
Basic 54,113 53,534 52,608 52,054 48,878
Diluted 61,039 59,502 58,077 57,124 55,236
All share and per share information has been restated to retroactively
reflect the effect of the two-for-one stock split declared by the
Board of Directors on July 14, 2003 effected as a stock dividend on
Aug. 15, 2003.
As of December 31, 2003, stockholders' equity amounted to $838
million, resulting in a book value of $14.79 per share.
CONTACT: Jefferies Group, Inc.
Joseph A. Schenk, 212-284-2338