Exhibit 99
Jefferies Announces Second Quarter and First Half Results
NEW YORK--(BUSINESS WIRE)--July 19, 2005--Jefferies Group, Inc.
(NYSE:JEF) today announced quarterly financial results for the quarter
ended June 30, 2005.
Highlights for the second quarter ended June 30, 2005:
-- Total revenues were up 24% to $344.2 million versus $277.2
million for the second quarter of 2004.
-- Net earnings were up 11% to $35.4 million compared to $31.8
million for the second quarter of 2004.
-- Earnings per share (diluted) were up 6% to $0.53 compared to
$0.50 for the second quarter of 2004.
-- Investment banking revenues were up 23% to $102.5 million
versus $83.6 million for the second quarter of 2004.
Highlights for the first six months ended June 30, 2005:
-- Total revenues were up 19% to a record $688.1 million versus
$580.3 million for the first half of 2004.
-- Net earnings were up 13% to a record $72.1 million compared to
$63.7 million for the first half of 2004.
-- Earnings per share (diluted) were up 8% to a record $1.08
compared to $1.00 for the first half of 2004.
-- Investment banking revenues were up 26% to a record $220.0
million versus $174.9 million for the first half of 2004.
"We are pleased with our positive results and, despite a
challenging environment, remain committed to expanding our platform as
we continue to diversify all of our businesses," said Richard B.
Handler, Chief Executive Officer of Jefferies. "Our more than 1,900
employee-partners will continue to tenaciously serve our clients and
our shareholders."
Conference Call
A conference call with management discussion of financial results
for the second quarter ended June 30, 2005 will be held July 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: 69565267). 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 8:45 AM Eastern on
July 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 Six Months Ended
------------------- -------------------
June 30, June 25, June 30, June 25,
2005 2004 2005 2004
--------- --------- --------- ---------
Revenues:
Commissions $ 58,239 $ 66,002 $127,147 $138,305
Principal transactions 84,774 82,217 157,472 168,657
Investment banking 102,519 83,572 219,961 174,944
Asset management fees and
investment income from
managed funds 20,434 18,611 41,718 42,412
Interest 71,420 24,445 131,271 49,184
Other 6,777 2,323 10,487 6,762
--------- --------- --------- ---------
Total revenues 344,163 277,170 688,056 580,264
Interest expense 67,605 29,303 125,488 53,890
--------- --------- --------- ---------
Revenues, net of interest
expense 276,558 247,867 562,568 526,374
--------- --------- --------- ---------
Non-interest expenses:
Compensation and benefits 152,003 135,819 313,991 294,757
Floor brokerage and
clearing fees 12,096 13,225 24,291 26,980
Technology and
communications 17,617 16,194 33,621 32,603
Occupancy and equipment
rental 11,083 9,444 21,916 19,056
Business development 9,413 8,930 18,047 17,340
Other 14,036 9,579 28,219 19,743
--------- --------- --------- ---------
Total non-interest expenses 216,248 193,191 440,085 410,479
--------- --------- --------- ---------
Earnings before income taxes
and minority interest 60,310 54,676 122,483 115,895
Income taxes 23,621 21,207 47,066 42,464
--------- --------- --------- ---------
Earnings before minority
interest 36,689 33,469 75,417 73,431
Minority interest in earnings
of consolidated
subsidiaries, net 1,252 1,683 3,308 9,736
--------- --------- --------- ---------
Net earnings $ 35,437 $ 31,786 $ 72,109 $ 63,695
========= ========= ========= =========
Earnings per share:
Basic $ 0.58 $ 0.55 $ 1.18 $ 1.12
========= ========= ========= =========
Diluted $ 0.53 $ 0.50 $ 1.08 $ 1.00
========= ========= ========= =========
Weighted average shares:
Basic 61,468 57,559 61,036 56,939
Diluted 67,422 63,927 66,995 63,508
JEFFERIES GROUP, INC. AND SUBSIDIARIES
SELECTED STATISTICAL INFORMATION
(Dollars in Thousands, Except Per Share Amounts)
(Unaudited)
Quarters ended
-----------------------------------------------------
6/30/2005 3/31/2005 12/31/2004 9/30/2004 6/25/2004
--------- --------- ---------- --------- ---------
Statement of
Earnings
- ----------------
Revenues, net
of interest
expense $276,558 $286,010 $278,085 $253,786 $247,867
Non-interest
expenses:
Compensation
and benefits 152,003 161,988 159,696 141,434 135,819
Non-personnel
expenses 64,245 61,849 62,245 57,402 57,372
--------- --------- ---------- --------- ---------
Earnings before
income taxes
and minority
interest 60,310 62,173 56,144 54,950 54,676
Income taxes 23,621 23,445 19,975 21,516 21,207
--------- --------- ---------- --------- ---------
Earnings before
minority
interest 36,689 38,728 36,169 33,434 33,469
Minority
interest in
earnings of
consolidated
subsidiaries,
net 1,252 2,056 773 1,159 1,683
--------- --------- ---------- --------- ---------
Net earnings $35,437 $36,672 $35,396 $32,275 $31,786
========= ========= ========== ========= =========
Diluted earnings
per share $0.53 $0.56 $0.55 $0.51 $0.50
========= ========= ========== ========= =========
Financial
Ratios
- ----------------
Pretax
operating
margin 21.8% 21.7% 20.2% 21.7% 22.1%
Compensation
and benefits /
net revenues 55.0% 56.6% 57.4% 55.7% 54.8%
Effective tax
rate 39.2% 37.7% 35.6% 39.2% 38.8%
JEFFERIES GROUP, INC. AND SUBSIDIARIES
SELECTED STATISTICAL INFORMATION
(Dollars and Shares in Thousands)
(Unaudited)
Quarters ended
------------------------------------------------------
6/30/2005 3/31/2005 12/31/2004 9/30/2004 6/25/2004
--------- --------- ---------- --------- ---------
Revenues by
Source
- ---------------
Commissions and
principal
transactions:
Equities $91,917 $95,067 $104,596 $127,764 $103,658
High yield 14,188 16,650 9,829 10,845 11,830
Convertibles 8,948 8,115 10,484 9,368 10,297
Execution 5,472 7,060 7,350 7,989 8,637
Bonds Direct 7,140 7,234 7,472 11,604 10,795
Other
proprietary 15,348 7,480 (674) 3,462 3,002
--------- --------- ---------- --------- ---------
Total 143,013 141,606 139,057 171,032 148,219
Investment
banking 102,519 117,442 105,738 72,122 83,572
Asset
management
fees and
investment
income from
managed funds:
Asset
management
fees 13,580 14,909 12,472 7,990 7,641
Investment
income from
managed funds 6,854 6,375 14,682 3,628 10,970
--------- --------- ---------- --------- ---------
Total 20,434 21,284 27,154 11,618 18,611
Interest 71,420 59,851 49,318 35,948 24,445
Other 6,777 3,710 4,006 2,382 2,323
--------- --------- ---------- --------- ---------
Total revenues $344,163 $343,893 $325,273 $293,102 $277,170
========= ========= ========== ========= =========
Other Data
- ---------------
Number of
trading days 64 61 64 67 62
Average
employees 1,916 1,817 1,750 1,749 1,692
Common shares
outstanding 57,759 58,090 57,289 56,872 57,202
Weighted
average shares:
Basic 61,468 60,570 58,112 57,833 57,559
Diluted 67,422 65,997 64,744 63,867 63,927
As of June 30, 2005, stockholders' equity amounted to $1.2
billion, resulting in a book value of $20.27 per share.
CONTACT: Jefferies Group, Inc.
Joseph A. Schenk, 212-284-2338