Exhibit 99
Jefferies Announces All-Time Record Quarterly Revenues, Profit and EPS
NEW YORK--(BUSINESS WIRE)--April 19, 2005--Jefferies Group, Inc.
(NYSE: JEF)
-- All-time record quarterly total and net revenues of $343.9
million and $286.0 million, respectively
-- All-time record quarterly net earnings of $36.7 million
-- All-time record quarterly earnings per share of $0.56
-- All-time record quarterly investment banking revenues of $117
million
Jefferies Group, Inc. (NYSE: JEF) today announced record quarterly
financial results for the quarter ended March 31, 2005.
Highlights for the first quarter ended March 31, 2005:
-- Total revenues were up 13% to a record $343.9 million versus
$303.1 million for the first quarter of 2004.
-- Net revenues were up 3% to a record $286.0 million versus
$278.5 million for the first quarter of 2004.
-- Net earnings were up 15% to a record $36.7 million compared to
$31.9 million for the first quarter of 2004.
-- Earnings per share (diluted) were up 10% to a record $0.56
compared to $0.51 for the first quarter of 2004.
-- Investment banking revenues were up 29% to a record $117.4
million versus $91.4 million for the first quarter of 2004.
"We are pleased with our record first quarter results as we
continue to grow and diversify our platform in a challenging
environment," said Richard B. Handler, Chairman and Chief Executive
Officer of Jefferies.
John C. Shaw, Jr., President of Jefferies, added, "We thank our
loyal clients and dedicated employee-partners for their support and
remain focused on providing the best products and services to growing
and mid-sized companies and their investors."
Conference Call
A conference call with management discussion of financial results
for the first quarter ended March 31, 2005 will be held April 19 at
9:00 AM (Eastern) and can be accessed at 617-801-9714 (code:
85714055). A replay of the call will be available two hours post-call
at 617-801-6888 (code: 25578116). A live audio webcast and delayed
replay will also be available under "Investor Relations" at
www.jefferies.com. Questions for consideration by management can be
submitted in advance through the "Contact Us" function at
www.jefferies.com or by calling 203-708-5975 by 8:00 AM Eastern on
April 19.
About Jefferies
Jefferies, a global investment bank and institutional securities
firm, has served growing and mid-sized 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.jefferies.com).
JEFFERIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Ended
-------------------
Mar. 31, Mar. 26,
2005 2004
--------- ---------
Revenues:
Commissions $ 68,908 $ 72,303
Principal transactions 72,698 86,440
Investment banking 117,442 91,372
Asset management fees and
investment income from
managed funds 21,284 23,801
Interest 59,851 24,739
Other 3,710 4,439
--------- ---------
Total revenues 343,893 303,094
Interest expense 57,883 24,587
--------- ---------
Revenues, net of interest expense 286,010 278,507
--------- ---------
Non-interest expenses:
Compensation and benefits 161,988 158,938
Floor brokerage and clearing fees 12,195 13,755
Technology and communications 16,004 16,409
Occupancy and equipment rental 10,833 9,612
Business development 8,634 8,410
Other 14,183 10,164
--------- ---------
Total non-interest expenses 223,837 217,288
--------- ---------
Earnings before income taxes and
minority interest 62,173 61,219
Income taxes 23,445 21,257
--------- ---------
Earnings before minority interest 38,728 39,962
Minority interest in earnings of
consolidated subsidiaries, net 2,056 8,053
--------- ---------
Net earnings $ 36,672 $ 31,909
========= =========
Earnings per share:
Basic $ 0.61 $ 0.57
========= =========
Diluted $ 0.56 $ 0.51
========= =========
Weighted average shares:
Basic 60,570 56,298
Diluted 65,997 63,078
JEFFERIES GROUP, INC. AND SUBSIDIARIES
SELECTED STATISTICAL INFORMATION
(Dollars in Thousands, Except Per Share Amounts)
(Unaudited)
Quarters ended
------------------------------------------------------
3/31/2005 12/31/2004 9/30/2004 6/25/2004 3/26/2004
---------- ----------- ---------- ---------- ---------
Statement of
Earnings
- ---------------
Revenues, net
of interest
expense $286,010 $278,085 $253,786 $247,867 $278,507
Non-interest
expenses:
Compensation
and
benefits 161,988 159,696 141,434 135,819 158,938
Non-
personnel
expenses 61,849 62,245 57,402 57,372 58,350
---------- ----------- ---------- ---------- ---------
Earnings
before income
taxes and
minority
interest 62,173 56,144 54,950 54,676 61,219
Income taxes 23,445 19,975 21,516 21,207 21,257
---------- ----------- ---------- ---------- ---------
Earnings
before
minority
interest 38,728 36,169 33,434 33,469 39,962
Minority
interest in
earnings of
consolidated
subsidiaries,
net 2,056 773 1,159 1,683 8,053
---------- ----------- ---------- ---------- ---------
Net earnings $36,672 $35,396 $32,275 $31,786 $31,909
========== =========== ========== ========== =========
Diluted
earnings per
share $0.56 $0.55 $0.51 $0.50 $0.51
========== =========== ========== ========== =========
Financial Ratios
- -----------------
Pretax
operating
margin 21.7% 20.2% 21.7% 22.1% 22.0%
Compensation
and benefits
/ net revenues 56.6% 57.4% 55.7% 54.8% 57.1%
Effective tax
rate 37.7% 35.6% 39.2% 38.8% 34.7%
JEFFERIES GROUP, INC. AND SUBSIDIARIES
SELECTED STATISTICAL INFORMATION
(Dollars and Shares in Thousands)
(Unaudited)
Quarters ended
------------------------------------------------------
3/31/2005 12/31/2004 9/30/2004 6/25/2004 3/26/2004
---------- ----------- ---------- ---------- ---------
Revenues by
Source
- ---------------
Commissions and
principal
transactions:
Equities $95,067 $104,596 $127,764 $103,658 $110,547
High yield 16,650 9,829 10,845 11,830 12,380
Convertibles 8,115 10,484 9,368 10,297 14,840
Execution 7,060 7,350 7,989 8,637 8,570
Bonds Direct 7,234 7,472 11,604 10,795 11,152
Other
proprietary 7,480 (674) 3,462 3,002 1,254
---------- ----------- ---------- ---------- ---------
Total 141,606 139,057 171,032 148,219 158,743
Investment
banking 117,442 105,738 72,122 83,572 91,372
Asset
management
fees and
investment
income
from managed
funds:
Asset
management
fees 14,909 12,472 7,990 7,641 10,105
Investment
income from
managed
funds 6,375 14,682 3,628 10,970 13,696
---------- ----------- ---------- ---------- ---------
Total 21,284 27,154 11,618 18,611 23,801
Interest 59,851 49,318 35,948 24,445 24,739
Other 3,710 4,006 2,382 2,323 4,439
---------- ----------- ---------- ---------- ---------
Total revenue $343,893 $325,273 $293,102 $277,170 $303,094
========== =========== ========== ========== =========
Other Data
- ---------------
Number of
trading days 61 64 67 62 59
Average
employees 1,817 1,750 1,749 1,692 1,612
Common shares
outstanding 58,090 57,289 56,872 57,202 56,808
Weighted
average
shares:
Basic 60,570 58,112 57,833 57,559 56,298
Diluted 65,997 64,744 63,867 63,927 63,078
As of March 31, 2005, stockholders' equity amounted to $1.1
billion, resulting in a book value of $19.30 per share.
CONTACT: Jefferies Group, Inc.
Joseph A. Schenk, 212-284-2338