Exhibit 99
Jefferies Announces Sixth Consecutive
Record Year with All-Time Records for Quarterly and Annual Results
NEW YORK--(BUSINESS WIRE)--Jan. 18, 2006--Jefferies Group, Inc.
(NYSE: JEF):
-- Record $1.5 Billion in Annual Total Revenues, $157 Million in
Annual Net Earnings, and $2.32 in Annual EPS
-- Fourth Quarter Record EPS of 68 Cents Per Share
-- Investment Banking Revenues of $167 Million for the Quarter
and $495 Million for the Year
Jefferies Group, Inc. (NYSE: JEF) today announced record quarterly
financial results for the quarter ended December 31, 2005.
Highlights for the record fourth quarter ended December 31, 2005:
-- Total revenues were up 33% to a record $431.7 million versus
$325.3 million for the fourth quarter of 2004.
-- Net earnings were up 32% to a record $46.7 million compared to
$35.4 million for the fourth quarter of 2004.
-- Earnings per share (diluted) were up 24% to a record $0.68
compared to $0.55 for the fourth quarter of 2004.
-- Investment banking revenues were up 58% to $167.5 million
versus $105.7 million for the fourth quarter of 2004.
Highlights for the record year ended December 31, 2005:
-- Total revenues were up 25% to a record $1.5 billion versus
$1.2 billion for 2004.
-- Net earnings were up 20% to a record $157.4 million compared
to $131.4 million for 2004.
-- Earnings per share (diluted) were up 13% to a record $2.32
compared to $2.06 for 2004.
-- Investment banking revenues were up 40% to a record $495.0
million versus $352.8 million for 2004.
"We are proud of our company and would like to thank each of our
employee-partners, clients and investors for their strong support,"
commented Richard B. Handler, Chairman and Chief Executive Officer of
Jefferies.
Conference Call
A conference call with management discussion of financial results
for the fourth quarter and year ended December 31, 2005 will be held
January 18 at 9:00 AM (Eastern) and can be accessed at 617-801-9714
(code: 58602490). A replay of the call will be available two hours
post-call at 617-801-6888 (code: 68173108). A live audio webcast and
delayed replay will also be available under "Investor Relations" at
www.jefferies.com. Questions for consideration by management can be
submitted in advance through the "Contact Us" function at
www.jefferies.com or by calling 203-708-5975 by 8:45 AM Eastern on
January 18.
About Jefferies
Jefferies, a global investment bank and institutional securities
firm, has served growing and mid-sized companies and their investors
for over 40 years. Headquartered in New York, with more than 25
offices around the world, Jefferies provides clients with capital
markets and financial advisory services, institutional brokerage,
securities research and asset management. The firm is a leading
provider of trade execution in equity, high yield, convertible and
international securities for institutional investors and high net
worth individuals. Jefferies & Company, Inc. is the principal
operating subsidiary of Jefferies Group, Inc. (NYSE: JEF;
www.jefferies.com).
-- financial tables follow --
JEFFERIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Ended Year Ended
------------------ ----------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2005 2004 2005 2004
-------- -------- --------- ----------
Revenues:
Commissions..............$ 61,639 $ 58,513 $ 246,943 $ 258,838
Principal transactions... 87,602 80,544 349,489 358,213
Investment banking....... 167,497 105,738 495,014 352,804
Asset management fees and
Investment income from
managed funds.......... 18,667 27,154 82,052 81,184
Interest................. 91,315 49,318 304,053 134,450
Other.................... 5,013 4,006 20,322 13,150
-------- -------- --------- ----------
Total revenues......... 431,733 325,273 1,497,873 1,198,639
Interest expense........... 88,881 47,188 293,173 140,394
-------- -------- --------- ----------
Revenues, net of interest
expense................... 342,852 278,085 1,204,700 1,058,245
-------- -------- --------- ----------
Non-interest expenses:
Compensation and
benefits................ 188,933 159,696 669,957 595,887
Floor brokerage and
clearing fees........... 11,294 13,172 46,644 52,922
Technology and
communications.......... 17,613 15,923 67,666 64,555
Occupancy and equipment
rental.................. 14,188 10,247 47,040 39,553
Business development..... 14,814 10,477 42,512 35,006
Other.................... 17,623 12,426 62,474 43,333
-------- -------- --------- ----------
Total non-interest
expenses.............. 264,465 221,941 936,293 831,256
-------- -------- --------- ----------
Earnings before income
taxes and
minority interest......... 78,387 56,144 268,407 226,989
Income taxes............... 30,880 19,975 104,089 83,955
-------- -------- --------- ----------
Earnings before minority
interest.................. 47,507 36,169 164,318 143,034
Minority interest in
earnings of
consolidated
subsidiaries, net........ 768 773 6,875 11,668
-------- -------- --------- ----------
Net earnings...........$ 46,739 $ 35,396 $ 157,443 $ 131,366
======== ======== ========= ==========
Earnings per share:
Basic....................$ 0.74 $ 0.61 $ 2.55 $ 2.29
======== ======== ========= ==========
Diluted..................$ 0.68 $ 0.55 $ 2.32 $ 2.06
======== ======== ========= ==========
Weighted average shares:
Basic.................... 62,985 58,112 61,823 57,453
Diluted.................. 68,979 64,744 67,784 63,908
JEFFERIES GROUP, INC. AND SUBSIDIARIES
SELECTED STATISTICAL INFORMATION
(Dollars in Thousands, Except Per Share Amounts)
(Unaudited)
Quarters ended
----------------------------------
12/31/2005 9/30/2005 6/30/2005
----------- --------- ----------
Statement of Earnings
---------------------
Revenues, net of interest expense.....$342,852 $299,280 $276,558
Non-interest expenses:
Compensation and benefits........... 188,933 167,033 152,003
Non-personnel expenses.............. 75,532 64,710 64,245
------- -------- ---------
Earnings before income taxes and
minority interest.................... 78,387 67,537 60,310
Income taxes.......................... 30,880 26,143 23,621
------- -------- ---------
Earnings before minority interest..... 47,507 41,394 36,689
Minority interest in earnings of
consolidated subsidiaries, net....... 768 2,799 1,252
------- -------- ---------
Net earnings...................... $46,739 $38,595 $35,437
======= ======== =========
Diluted earnings per share............ $0.68 $0.57 $0.53
======= ======== =========
Financial Ratios
----------------
Pretax operating margin............... 22.9% 22.6% 21.8%
Compensation and benefits / net
revenues............................. 55.1% 55.8% 55.0%
Effective tax rate.................... 39.4% 38.7% 39.2%
Quarters ended
---------------------
3/31/2005 12/31/2004
--------- ----------
Statement of Earnings
- ----------------------
Revenues, net of interest expense.....$286,010 $278,085
Non-interest expenses:
Compensation and benefits........... 161,988 159,696
Non-personnel expenses.............. 61,849 62,245
------- ---------
Earnings before income taxes and
minority interest.................... 62,173 56,144
Income taxes.......................... 23,445 19,975
------- ---------
Earnings before minority interest..... 38,728 36,169
Minority interest in earnings of
consolidated subsidiaries, net....... 2,056 773
------- ---------
Net earnings...................... $36,672 $35,396
======= =========
Diluted earnings per share............ $0.56 $0.55
======= =========
Financial Ratios
- -----------------
Pretax operating margin............... 21.7% 20.2%
Compensation and benefits / net
revenues............................. 56.6% 57.4%
Effective tax rate.................... 37.7% 35.6%
JEFFERIES GROUP, INC. AND SUBSIDIARIES
SELECTED STATISTICAL INFORMATION
(Dollars and Shares in Thousands)
(Unaudited)
Quarters ended
---------------------------------
12/31/2005 9/30/2005 6/30/2005
---------- --------- ----------
Revenues by Source
- ------------------
Commissions and principal
transactions:
Equities........................... $100,479 $105,360 $91,917
High yield......................... 10,050 20,985 14,188
Convertibles....................... 10,495 9,514 8,948
Execution.......................... 5,424 5,074 5,472
Bonds Direct....................... 6,747 7,612 7,140
Other proprietary.................. 16,046 14,027 15,348
--------- --------- ----------
Total............................ 149,241 162,572 143,013
Investment banking.................... 167,497 107,556 102,519
Asset management fees and
investment income
from managed funds:
Asset management fees.............. 8,215 14,239 13,580
Investment income from managed
funds............................. 10,452 7,428 6,854
--------- --------- ----------
Total............................ 18,667 21,667 20,434
Interest.............................. 91,315 81,467 71,420
Other................................. 5,013 4,822 6,777
--------- --------- ----------
Total revenues..................... $431,733 $378,084 $344,163
========= ========= ==========
Other Data
- ----------
Number of trading days................ 63 64 64
Average employees..................... 2,013 2,001 1,916
Common shares outstanding............. 58,110 58,083 57,759
Weighted average shares:
Basic.............................. 62,985 62,224 61,468
Diluted............................ 68,979 68,112 67,422
Quarters ended
----------------------
3/31/2005 12/31/2004
--------- -----------
Revenues by Source
- ------------------
Commissions and principal
transactions:
Equities........................... $95,067 $104,596
High yield......................... 16,650 9,829
Convertibles....................... 8,115 10,484
Execution.......................... 7,060 7,350
Bonds Direct....................... 7,234 7,472
Other proprietary.................. 7,480 (674)
--------- -----------
Total............................ 141,606 139,057
Investment banking.................... 117,442 105,738
Asset management fees and
investment income
from managed funds:
Asset management fees.............. 14,909 12,472
Investment income from managed
funds............................. 6,375 14,682
--------- -----------
Total............................ 21,284 27,154
Interest.............................. 59,851 49,318
Other................................. 3,710 4,006
--------- -----------
Total revenues..................... $343,893 $325,273
========= ===========
Other Data
- ----------
Number of trading days................ 61 64
Average employees..................... 1,817 1,750
Common shares outstanding............. 58,090 57,289
Weighted average shares:
Basic.............................. 60,570 58,112
Diluted............................ 65,997 64,744
As of December 31, 2005, stockholders' equity amounted to $1.3
billion, resulting in a book value of $22.14 per share.
JEFFERIES GROUP, INC. AND SUBSIDIARIES
SELECTED STATISTICAL INFORMATION
MODIFIED
(Dollars and Shares in Thousands)
(Unaudited)
Quarters ended
-------------------------------
12/31/2005 9/30/2005 6/30/2005
-------------------------------
Revenues by Source
- ------------------
Equities $122,670 $130,211 $113,563
Fixed Income & Commodities 31,584 37,183 36,227
-------------------------------
Total 154,254 167,394 149,790
Investment banking 167,497 107,556 102,519
Asset management fees and investment
income
from managed funds:
Asset management fees 8,215 14,239 13,580
Investment income from managed funds 10,452 7,428 6,854
-------------------------------
Total 18,667 21,667 20,434
Interest 91,315 81,467 71,420
-------------------------------
Total revenues $431,733 $378,084 $344,163
===============================
Other Data
- ----------
Number of trading days 63 64 64
Average employees 2,013 2,001 1,916
Common shares outstanding 58,110 58,083 57,759
Weighted average shares:
Basic 62,985 62,224 61,468
Diluted 68,979 68,112 67,422
Quarters ended
---------------------
3/31/2005 12/31/2004
---------------------
Revenues by Source
- ------------------
Equities $110,292 $133,537
Fixed Income & Commodities 35,024 9,526
---------------------
Total 145,316 143,063
Investment banking 117,442 105,738
Asset management fees and investment
income
from managed funds:
Asset management fees 14,909 12,472
Investment income from managed funds 6,375 14,682
---------------------
Total 21,284 27,154
Interest 59,851 49,318
---------------------
Total revenues $343,893 $325,273
=====================
Other Data
- ----------
Number of trading days 61 64
Average employees 1,817 1,750
Common shares outstanding 58,090 57,289
Weighted average shares:
Basic 60,570 58,112
Diluted 65,997 64,744
As of December 31, 2005, stockholders' equity amounted to $1.3
billion, resulting in book value of $22.14 per share.
CONTACT: Jefferies Group, Inc.
Joseph A. Schenk, 212-284-2338