Exhibit 99.1
Jefferies Announces All-Time Record Quarterly
Results; Record $524 million in Quarterly Total Revenues; Record $415
million in Quarterly Net Revenues; Record $58 million in Quarterly Net
Earnings
NEW YORK--(BUSINESS WIRE)--April 18, 2006--
Record $0.82 Quarterly EPS; Asset Management Revenues of $44
million for the quarter; Trading Revenues of
$238 million for the quarter
Jefferies Group, Inc. (NYSE:JEF) today announced record quarterly
financial results for the quarter ended March 31, 2006.
Highlights for the record first quarter ended March 31, 2006:
-- Net revenues were up 45% to a record $415.4 million versus
$286.0 million for the first quarter of 2005.
-- Net earnings were up 59% to a record $58.4 million compared to
$36.7 million for the first quarter of 2005.
-- Earnings per share (diluted) were up 46% to a record $0.82
compared to $0.56 for the first quarter of 2005. This increase
in earnings per share included $0.02 related to the cumulative
effect of a change in accounting principle, net of tax.
-- Asset management related revenues were up 108% to a record
$44.2 million versus $21.3 million for the first quarter of
2005.
-- Total trading revenues were up 64% to a record $238.4 million
versus $141.6 million for the first quarter of 2005.
-- Investment banking revenues were $127.7 million versus $117.4
million for the first quarter of 2005.
"Our 2,030 employee-partners are pleased to deliver these results
for our shareholders, and we would all like to thank our loyal clients
for their continued 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 first quarter ended March 31, 2006 will be held April 18 at
9:00 AM Eastern and can be accessed at 617-801-9714 (code: 65606185).
A replay of the call will be available two hours post-call at
617-801-6888 (code: 29475499). 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
April 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
------------------------
March 31, March 31,
2006 2005
----------- ------------
Revenues:
Commissions $ 69,002 $ 68,908
Principal transactions 156,584 72,698
Investment banking 127,734 117,442
Asset management fees and investment
income from managed funds 44,218 21,284
Interest 113,760 59,851
Other 12,779 3,710
----------- ------------
Total revenues 524,077 343,893
Interest expense 108,663 57,883
----------- ------------
Revenues, net of interest expense 415,414 286,010
----------- ------------
Non-interest expenses:
Compensation and benefits 232,734 161,988
Floor brokerage and clearing fees 13,933 12,195
Technology and communications 19,245 16,004
Occupancy and equipment rental 15,172 10,833
Business development 12,603 8,634
Other 24,320 14,183
----------- ------------
Total non-interest expenses 318,007 223,837
----------- ------------
Earnings before income taxes, minority
interest and cumulative effect of change
in accounting principle 97,407 62,173
Income taxes 38,432 23,445
----------- ------------
Earnings before minority interest and
cumulative effect of change in
accounting principle 58,975 38,728
Minority interest in earnings of
consolidated subsidiaries, net 2,134 2,056
----------- ------------
Earnings before cumulative effect of
change in accounting principle, net 56,841 36,672
Cumulative effect of change in accounting
principle 1,606 --
----------- ------------
Net earnings $ 58,447 $ 36,672
=========== ============
Earnings per share:
Basic-
Earnings before cumulative effect of
change in accounting principle, net $ 0.88 $ 0.61
Cumulative effect of change in accounting
principle 0.02 --
----------- ------------
Net earnings $ 0.90 $ 0.61
=========== ============
Diluted-
Earnings before cumulative effect of
change in accounting principle, net $ 0.80 $ 0.56
Cumulative effect of change in accounting
principle 0.02 --
----------- ------------
Net earnings $ 0.82 $ 0.56
=========== ============
Weighted average shares:
Basic 65,179 60,570
Diluted 71,471 65,997
JEFFERIES GROUP, INC. AND SUBSIDIARIES
SELECTED STATISTICAL INFORMATION
(Dollars in Thousands, Except Per Share Amounts)
(Unaudited)
Quarters ended
----------------------------------
3/31/2006 12/31/2005 9/30/2005
---------- ----------- ----------
Statement of Earnings
- ----------------------
Revenues, net of interest expense $415,414 $342,852 $299,280
Non-interest expenses:
Compensation and benefits 232,734 188,933 167,033
Non-personnel expenses 85,273 75,532 64,710
---------- ----------- ----------
Earnings before income taxes,
minority
interest and cumulative effect of
change in
accounting principle 97,407 78,387 67,537
Income taxes 38,432 30,880 26,143
---------- ----------- ----------
Earnings before minority interest
and
cumulative effect of change in
accounting principle 58,975 47,507 41,394
Minority interest in earnings of
consolidated subsidiaries, net 2,134 768 2,799
---------- ----------- ----------
Earnings before cumulative effect
of
change in accounting principle 56,841 46,739 38,595
Cumulative effect of change in
accounting principle 1,606 -- --
---------- ----------- ----------
Net earnings $58,447 $46,739 $38,595
========== =========== ==========
Diluted earnings per share $0.82 $0.68 $0.57
========== =========== ==========
Financial Ratios
- -----------------
Pretax operating margin 23.4% 22.9% 22.6%
Compensation and benefits / net
revenues 56.0% 55.1% 55.8%
Effective tax rate 39.5% 39.4% 38.7%
Quarters ended
----------------------
6/30/2005 3/31/2005
---------- ----------
Statement of Earnings
- ----------------------
Revenues, net of interest expense $276,558 $286,010
Non-interest expenses:
Compensation and benefits 152,003 161,988
Non-personnel expenses 64,245 61,849
---------- ----------
Earnings before income taxes, minority
interest and cumulative effect of change in
accounting principle 60,310 62,173
Income taxes 23,621 23,445
---------- ----------
Earnings before minority interest and
cumulative effect of change in
accounting principle 36,689 38,728
Minority interest in earnings of
consolidated subsidiaries, net 1,252 2,056
---------- ----------
Earnings before cumulative effect of
change in accounting principle 35,437 36,672
Cumulative effect of change in
accounting principle -- --
---------- ----------
Net earnings $35,437 $36,672
========== ==========
Diluted earnings per share $0.53 $0.56
========== ==========
Financial Ratios
- -----------------
Pretax operating margin 21.8% 21.7%
Compensation and benefits / net revenues 55.0% 56.6%
Effective tax rate 39.2% 37.7%
JEFFERIES GROUP, INC. AND SUBSIDIARIES
SELECTED STATISTICAL INFORMATION
(Dollars and Shares in Thousands)
(Unaudited)
Quarters ended
-------------------------------
3/31/2006 12/31/2005 9/30/2005
-------------------------------
Revenues by Source
- ------------------
Equities $171,707 $111,806 $118,990
Fixed Income & Commodities 66,658 42,448 48,404
-------------------------------
Total 238,365 154,254 167,394
Investment banking 127,734 167,497 107,556
Asset management fees and investment
income from managed funds:
Asset management fees 28,004 8,215 14,239
Investment income from managed funds 16,214 10,452 7,428
-------------------------------
Total 44,218 18,667 21,667
Interest 113,760 91,315 81,467
-------------------------------
Total revenues $524,077 $431,733 $378,084
===============================
Other Data
- ----------
Number of trading days 62 63 64
Average employees 2,030 2,013 2,001
Common shares outstanding 59,251 58,110 58,083
Weighted average shares:
Basic 65,179 62,985 62,224
Diluted 71,471 68,979 68,112
As of March 31, 2006, stockholders' equity amounted to $1.4 billion,
resulting in book value of $23.19 per share.
Quarters ended
--------------------
6/30/2005 3/31/2005
--------------------
Revenues by Source
- ------------------
Equities $104,621 $102,663
Fixed Income & Commodities 45,169 42,653
--------------------
Total 149,790 145,316
Investment banking 102,519 117,442
Asset management fees and investment income
from managed funds:
Asset management fees 13,580 14,909
Investment income from managed funds 6,854 6,375
--------------------
Total 20,434 21,284
Interest 71,420 59,851
--------------------
Total revenues $344,163 $343,893
====================
Other Data
- ----------
Number of trading days 64 61
Average employees 1,916 1,817
Common shares outstanding 57,759 58,090
Weighted average shares:
Basic 61,468 60,570
Diluted 67,422 65,997
As of March 31, 2006, stockholders' equity amounted to $1.4 billion,
resulting in book value of $23.19 per share.
Note: Certain reclassifications have been made to the prior years'
amounts to conform to the current year's presentation.
CONTACT: for Jefferies Group
Joseph A. Schenk, 212-284-2338