Exhibit 99
Jefferies Announces All-Time Records for Third Quarter and Nine-Month
Total Revenues, Net Revenues, Net Earnings and EPS
NEW YORK--(BUSINESS WIRE)--Oct. 18, 2005--Jefferies Group, Inc.
(NYSE: JEF) today announced record quarterly financial results for the
quarter ended September 30, 2005.
Highlights for the record third quarter ended September 30, 2005:
-- Total revenues were up 29% to $378.1 million versus $293.1
million for the third quarter of 2004.
-- Net earnings were up 20% to $38.6 million compared to $32.3
million for the third quarter of 2004.
-- Earnings per share (diluted) were up 12% to $0.57 compared to
$0.51 for the third quarter of 2004.
-- Investment banking revenues were up 49% to $107.6 million
versus $72.1 million for the third quarter of 2004.
Highlights for the record first nine months ended September 30,
2005:
-- Total revenues were up 22% to $1.1 billion versus $873.4
million for the first nine months of 2004.
-- Net earnings were up 15% to $110.7 million compared to $96.0
million for the first nine months of 2004.
-- Earnings per share (diluted) were up 9% to $1.64 compared to
$1.51 for the first nine months of 2004.
-- Investment banking revenues were up 33% to $327.5 million
versus $247.1 million for the first nine months of 2004.
"We would like to thank our clients for their confidence, loyalty
and belief in Jefferies. Additionally, we truly appreciate the effort,
commitment and talent of our 2,001 employee partners who are the ones
directly responsible for our success to date," commented Richard B.
Handler, Chairman and Chief Executive Officer of Jefferies.
Conference Call
A conference call with management discussion of financial results
for the third quarter ended September 30, 2005 will be held October 18
at 9:00 AM (Eastern) and can be accessed at 617-801-9714 (code:
18188135). A replay of the call will be available two hours post-call
at 617-801-6888 (code: 92986930). 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
October 18.
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 Nine Months Ended
--------------------- ----------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2005 2004 2005 2004
---------- ---------- ----------- ----------
Revenues:
Commissions $ 58,157 $ 62,020 $ 185,304 $ 200,325
Principal transactions 104,415 109,012 261,887 277,669
Investment banking 107,556 72,122 327,517 247,066
Asset management fees
and Investment income
from managed funds 21,667 11,618 63,385 54,030
Interest 81,467 35,948 212,738 85,132
Other 4,822 2,382 15,309 9,144
---------- ---------- ----------- ----------
Total revenues 378,084 293,102 1,066,140 873,366
Interest expense 78,804 39,316 204,292 93,206
---------- ---------- ----------- ----------
Revenues, net of interest
expense 299,280 253,786 861,848 780,160
---------- ---------- ----------- ----------
Non-interest expenses:
Compensation and
benefits 167,033 141,434 481,024 436,191
Floor brokerage and
clearing fees 11,059 12,770 35,350 39,750
Technology and
communications 16,432 16,029 50,053 48,632
Occupancy and equipment
rental 10,936 10,250 32,852 29,306
Business development 9,651 7,189 27,698 24,529
Other 16,632 11,164 44,851 30,907
---------- ---------- ----------- ----------
Total non-interest
expenses 231,743 198,836 671,828 609,315
---------- ---------- ----------- ----------
Earnings before income
taxes and minority
interest 67,537 54,950 190,020 170,845
Income taxes 26,143 21,516 73,209 63,980
---------- ---------- ----------- ----------
Earnings before minority
interest 41,394 33,434 116,811 106,865
Minority interest in
earnings of consolidated
subsidiaries, net 2,799 1,159 6,107 10,895
---------- ---------- ----------- ----------
Net earnings $ 38,595 $ 32,275 $ 110,704 $ 95,970
========== ========== =========== ==========
Earnings per share:
Basic $ 0.62 $ 0.56 $ 1.80 $ 1.68
========== ========== =========== ==========
Diluted $ 0.57 $ 0.51 $ 1.64 $ 1.51
========== ========== =========== ==========
Weighted average shares:
Basic 62,224 57,833 61,434 57,233
Diluted 68,112 63,867 67,374 63,616
JEFFERIES GROUP, INC. AND SUBSIDIARIES
SELECTED STATISTICAL INFORMATION
(Dollars in Thousands, Except Per Share Amounts)
(Unaudited)
Quarters ended
--------------------------------
9/30/2005 6/30/2005 3/31/2005
---------- ---------- ----------
Statement of Earnings
---------------------
Revenues, net of interest expense $ 299,280 $ 276,558 $ 286,010
Non-interest expenses:
Compensation and benefits 167,033 152,003 161,988
Non-personnel expenses 64,710 64,245 61,849
---------- ---------- ----------
Earnings before income taxes and
minority interest 67,537 60,310 62,173
Income taxes 26,143 23,621 23,445
---------- ---------- ----------
Earnings before minority interest 41,394 36,689 38,728
Minority interest in earnings of
consolidated subsidiaries, net 2,799 1,252 2,056
---------- ---------- ----------
Net earnings $ 38,595 $ 35,437 $ 36,672
========== ========== ==========
Diluted earnings per share $ 0.57 $ 0.53 $ 0.56
========== ========== ==========
Financial Ratios
----------------
Pretax operating margin 22.6% 21.8% 21.7%
Compensation and benefits / net
revenues 55.8% 55.0% 56.6%
Effective tax rate 38.7% 39.2% 37.7%
Quarters ended
-----------------------
12/31/2004 9/30/2004
----------- ----------
Statement of Earnings
---------------------
Revenues, net of interest expense $ 278,085 $ 253,786
Non-interest expenses:
Compensation and benefits 159,696 141,434
Non-personnel expenses 62,245 57,402
----------- ----------
Earnings before income taxes and
minority interest 56,144 54,950
Income taxes 19,975 21,516
----------- ----------
Earnings before minority interest 36,169 33,434
Minority interest in earnings of
consolidated subsidiaries, net 773 1,159
----------- ----------
Net earnings $ 35,396 $ 32,275
=========== ==========
Diluted earnings per share $ 0.55 $ 0.51
=========== ==========
Financial Ratios
----------------
Pretax operating margin 20.2% 21.7%
Compensation and benefits / net revenues 57.4% 55.7%
Effective tax rate 35.6% 39.2%
JEFFERIES GROUP, INC. AND SUBSIDIARIES
SELECTED STATISTICAL INFORMATION
(Dollars and Shares in Thousands)
(Unaudited)
Quarters ended
------------------------------
9/30/2005 6/30/2005 3/31/2005
---------- --------- ---------
Revenues by Source
- ------------------
Commissions and principal transactions:
Equities $105,360 $91,917 $95,067
High yield 20,985 14,188 16,650
Convertibles 9,514 8,948 8,115
Execution 5,074 5,472 7,060
Bonds Direct 7,612 7,140 7,234
Other proprietary 14,027 15,348 7,480
---------- --------- ---------
Total 162,572 143,013 141,606
Investment banking 107,556 102,519 117,442
Asset management fees and investment
income from managed funds:
Asset management fees 14,239 13,580 14,909
Investment income from managed funds 7,428 6,854 6,375
---------- --------- ---------
Total 21,667 20,434 21,284
Interest 81,467 71,420 59,851
Other 4,822 6,777 3,710
---------- --------- ---------
Total revenues $378,084 $344,163 $343,893
========== ========= =========
Other Data
- ----------
Number of trading days 64 64 61
Average employees 2,001 1,916 1,817
Common shares outstanding 58,083 57,759 58,090
Weighted average shares:
Basic 62,224 61,468 60,570
Diluted 68,112 67,422 65,997
Quarters ended
-----------------------
12/31/2004 9/30/2004
----------- ----------
Revenues by Source
- ------------------
Commissions and principal transactions:
Equities $ 104,596 $ 127,764
High yield 9,829 10,845
Convertibles 10,484 9,368
Execution 7,350 7,989
Bonds Direct 7,472 11,604
Other proprietary (674) 3,462
----------- ----------
Total 139,057 171,032
Investment banking 105,738 72,122
Asset management fees and investment income
from managed funds:
Asset management fees 12,472 7,990
Investment income from managed funds 14,682 3,628
----------- ----------
Total 27,154 11,618
Interest 49,318 35,948
Other 4,006 2,382
----------- ----------
Total revenues $ 325,273 $ 293,102
=========== ==========
Other Data
- ----------
Number of trading days 64 67
Average employees 1,750 1,749
Common shares outstanding 57,289 56,872
Weighted average shares:
Basic 58,112 57,833
Diluted 64,744 63,867
As of September 30, 2005, stockholders' equity amounted to $1.2
billion, resulting in a book value of $20.69 per share.
CONTACT: for Jefferies Group, Inc.
Joseph A. Schenk, 212-284-2338