EXHIBIT 99
CORRECTING and REPLACING Jefferies Announces All-Time Record Quarterly Profit
and Fifth Consecutive Annual Record Results
NEW YORK--(BUSINESS WIRE)--Jan. 19, 2005--In BW5374 issued Jan.
19, 2005: The Forward-Looking Statements have been revised. No
financial information has been amended.
The corrected release reads:
JEFFERIES ANNOUNCES ALL-TIME RECORD QUARTERLY PROFIT AND FIFTH
CONSECUTIVE ANNUAL RECORD RESULTS
-- All-time record quarterly earnings of $35.4 million and $0.55
EPS for fourth quarter
-- Record investment banking revenues of $106 million in fourth
quarter and $353 million for 2004
-- Record $1.2 billion in annual revenues and record $2.06 EPS
for 2004
Jefferies Group, Inc. (NYSE: JEF) today announced record annual
and fourth quarter financial results for the year and quarter ended
December 31, 2004.
Highlights for the fourth quarter ended December 31, 2004:
-- Total revenues were up 12% to a record $325.3 million versus
$289.3 million for the fourth quarter of 2003.
-- Net earnings were up 16% to a record $35.4 million compared to
$30.6 million for the fourth quarter of 2003.
-- Earnings per share (diluted) were up 10% to a record $0.55
compared to $0.50 for the fourth quarter of 2003.
-- Total trading revenues were $139.1 million versus $150.0
million for the fourth quarter of 2003.
-- Investment banking revenues were a record $105.7 million
versus $98.7 million for the fourth quarter of 2003.
-- Asset management related revenues were up 127% to a record
$27.2 million versus $12.0 million for the fourth quarter of
2003.
Highlights for the record year ended December 31, 2004:
-- Total revenues were a record $1.2 billion versus $926.7
million for 2003.
-- Net earnings were up 56% to a record $131.4 million compared
to $84.1 million for 2003.
-- Earnings per share (diluted) were up 45% to a record $2.06
compared to $1.42 for 2003.
-- Total trading revenues were a record $617.1 million versus
$551.5 million for 2003.
-- Investment banking revenues were a record $352.8 million
versus $229.6 million for 2003.
-- Asset management related revenues were up 148% to a record
$81.2 million versus $32.8 million for 2003.
"We are proud that the Jefferies' platform continues to grow and
diversify, as demonstrated by these record results," said Richard B.
Handler, Chairman and Chief Executive Officer of Jefferies. "We remain
focused on providing the best products and services to mid-sized and
growing companies and their investors."
John C. Shaw, Jr., President of Jefferies, added, "We thank all of
our clients, employee partners, and shareholders for their loyal and
ongoing support, which has enabled us to continually invest in our
platform."
Conference Call
A conference call with management discussion of financial results
for the fourth quarter and year ended December 31, 2004 will be held
January 19 at 11:00 AM (Eastern) and can be accessed at 617-801-9714
(code: 28268944). A replay of the call will be available two hours
post-call at 617-801-6888 (code: 89201014). 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
19.
About Jefferies
Jefferies, a global investment bank and institutional securities
firm, has served mid-sized and growing companies and their investors
for over 40 years. Headquartered in New York, with more than 25
offices around the world, Jefferies provides clients with capital
markets and financial advisory services, institutional brokerage,
securities research and asset management. The firm is a leading
provider of trade execution in equity, high yield, convertible and
international securities for institutional investors and high net
worth individuals. Jefferies & Company, Inc. is the principal
operating subsidiary of Jefferies Group, Inc. (NYSE: JEF;
www.jefco.com).
Forward-Looking Statements
This press release contains statements that may constitute
"forward-looking statements" within the meaning of the safe harbor
provisions of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. These forward-looking
statements include statements about our future and may contain
expectations regarding revenues, earnings, operations and other
financial projections, and may include statements of our operating
environment, future performance, positioning, plans and objectives.
These forward-looking statements represent only our belief regarding
future events, many of which, by their nature, are inherently
uncertain and outside of our control. Actual results could differ
materially from those projected in these forward-looking statements.
Please refer to our recent Quarterly Report on Form 10-Q filed with
the Securities and Exchange Commission on November 8, 2004 and other
filings we make with the Securities and Exchange Commission for a
discussion of important factors that could cause actual results to
differ materially from those projected in these forward-looking
statements. We do not assume any obligation to update any
forward-looking statement we make.
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,
2004 2003 2004 2003
--------- --------- ----------- ---------
Revenues:
Commissions $ 58,513 $ 64,385 $ 258,838 $250,191
Principal transactions 80,544 85,663 358,213 301,299
Investment banking 105,738 98,689 352,804 229,608
Asset management fees and
investment income from
managed funds 27,154 11,952 81,184 32,769
Interest 49,318 26,621 134,450 102,403
Other 4,006 1,951 13,150 10,446
--------- --------- ----------- ---------
Total revenues 325,273 289,261 1,198,639 926,716
Interest expense 47,188 23,557 140,394 97,102
--------- --------- ----------- ---------
Revenues, net of interest
expense 278,085 265,704 1,058,245 829,614
--------- --------- ----------- ---------
Non-interest expenses:
Compensation and benefits 159,696 149,201 595,887 474,709
Floor brokerage and
clearing fees 13,172 12,599 52,922 48,217
Technology and
communications 15,923 15,959 64,555 58,581
Occupancy and equipment
rental 10,247 7,885 39,553 32,534
Business development 10,477 8,890 35,006 26,481
Other 12,426 18,336 43,333 44,559
--------- --------- ----------- ---------
Total non-interest
expenses 221,941 212,870 831,256 685,081
--------- --------- ----------- ---------
Earnings before income taxes
and minority interest 56,144 52,834 226,989 144,533
Income taxes 19,975 19,233 83,955 52,851
--------- --------- ----------- ---------
Earnings before minority
interest 36,169 33,601 143,034 91,682
Minority interest in
earnings of consolidated
subsidiaries, net 773 3,005 11,668 7,631
--------- --------- ----------- ---------
Net earnings $ 35,396 $ 30,596 $ 131,366 $ 84,051
========= ========= =========== =========
Earnings per share:
Basic $ 0.61 $ 0.57 $ 2.29 $ 1.58
========= ========= =========== =========
Diluted $ 0.55 $ 0.50 $ 2.06 $ 1.42
========= ========= =========== =========
Weighted average shares:
Basic 58,112 54,113 57,453 53,090
Diluted 64,744 61,039 63,908 59,266
Compensation and benefits /
net revenues 57.4% 56.2% 56.3% 57.2%
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 and effected as a
stock dividend on August 15, 2003.
JEFFERIES GROUP, INC. AND SUBSIDIARIES
SELECTED STATISTICAL INFORMATION
(Dollars in Thousands, Except Per Share Amounts)
(Unaudited)
Quarters ended
--------------------------------------------------------
12/31/2004 9/30/2004 6/25/2004 3/26/2004 12/31/2003
----------- ---------- ---------- ---------- -----------
Statement of
Earnings
- --------------
Revenues, net
of interest
expense $278,085 $253,786 $247,867 $278,507 $265,704
Non-interest
expenses:
Compensation
and benefits 159,696 141,434 135,819 158,938 149,201
Non-personnel
expenses 62,245 57,402 57,372 58,350 63,669
----------- ---------- ---------- ---------- -----------
Earnings
before income
taxes and
minority
interest 56,144 54,950 54,676 61,219 52,834
Income taxes 19,975 21,516 21,207 21,257 19,233
----------- ---------- ---------- ---------- -----------
Earnings
before
minority
interest 36,169 33,434 33,469 39,962 33,601
Minority
interest in
earnings of
consolidated
subsidiaries,
net 773 1,159 1,683 8,053 3,005
----------- ---------- ---------- ---------- -----------
Net earnings $35,396 $32,275 $31,786 $31,909 $30,596
=========== ========== ========== ========== ===========
Diluted
earnings per
share $0.55 $0.51 $0.50 $0.51 $0.50
=========== ========== ========== ========== ===========
Financial
Ratios
- --------------
Pretax
operating
margin 20.2% 21.7% 22.1% 22.0% 19.9%
Compensation
and benefits
/ net revenues 57.4% 55.7% 54.8% 57.1% 56.2%
Effective tax
rate 35.6% 39.2% 38.8% 34.7% 36.4%
JEFFERIES GROUP, INC. AND SUBSIDIARIES
SELECTED STATISTICAL INFORMATION
(Dollars and Shares in Thousands)
(Unaudited)
Quarters ended
----------------------------------------------------
12/31/2004 9/30/2004 6/25/2004 3/26/2004 12/31/2003
---------- --------- --------- --------- ----------
Revenues by Source
- ------------------
Commissions and
principal
transactions:
Equities $89,478 $112,192 $88,605 $92,741 $92,021
International 19,128 19,027 19,901 25,068 21,507
High yield 9,829 10,845 11,830 12,380 13,866
Convertibles 6,474 5,913 5,449 7,578 6,899
Execution 7,350 7,989 8,637 8,570 6,493
Bonds Direct 7,472 11,604 10,795 11,152 8,600
Other
proprietary (674) 3,462 3,002 1,254 662
---------- --------- --------- --------- ----------
Total 139,057 171,032 148,219 158,743 150,048
Investment banking 105,738 72,122 83,572 91,372 98,689
Asset management
fees and
investment income
from managed funds:
Asset
management fees 12,472 7,990 7,641 10,105 6,690
Investment
income from
managed funds 14,682 3,628 10,970 13,696 5,262
---------- --------- --------- --------- ----------
Total 27,154 11,618 18,611 23,801 11,952
Interest 49,318 35,948 24,445 24,739 26,621
Other 4,006 2,382 2,323 4,439 1,951
---------- --------- --------- --------- ----------
Total revenues $325,273 $293,102 $277,170 $303,094 $289,261
========== ========= ========= ========= ==========
Other Data
- ------------------
Number of trading
days 64 67 62 59 66
Average employees 1,750 1,749 1,692 1,612 1,432
Common shares
outstanding 57,289 56,872 57,202 56,808 56,702
Weighted average
shares:
Basic 58,112 57,833 57,559 56,298 54,113
Diluted 64,744 63,867 63,927 63,078 61,039
As of December 31, 2004, stockholders' equity amounted to $1.0
billion, resulting in a book value of $18.14 per share.
CONTACT: Jefferies Group, Inc.
Joseph A. Schenk, 212-284-2338