EXHIBIT 99
Jefferies Announces All-Time Record
Quarterly Net Revenues, Net Earnings and Earnings Per Share
Record net revenues of $419 million
Record net earnings of $62 million
Record earnings per share of $0.42
NEW YORK--(BUSINESS WIRE)--April 17, 2007--Jefferies Group, Inc.
(NYSE: JEF) today announced financial results for the first quarter
ended March 31, 2007.
Highlights for the record first quarter ended March 31, 2007:
-- Net revenues were a record $418.8 million, compared to $415.4
million for the first quarter of 2006.
-- Net earnings were a record $62.3 million, compared to $58.4
million for the first quarter of 2006.
-- Earnings per share (diluted) were a record $0.42, compared to
$0.41 for the first quarter of 2006.
-- Investment banking revenues were a record $170.1 million
compared to $127.7 million for the first quarter of 2006.
"This was the strongest investment banking quarter in Jefferies'
history and our second best overall trading quarter ever. I'd like to
thank all of our clients and employee-partners for their confidence
and dedication," commented Richard B. Handler, Chairman and Chief
Executive Officer of Jefferies.
"We are very pleased to have delivered solid sequential growth
during this past quarter and, more importantly, to have exceeded the
exceptional results of last year's first quarter," added Brian P.
Friedman, Chairman, Executive Committee of Jefferies.
Conference Call
A conference call with management discussion of financial results
for the first quarter ended March 31, 2007 will be held April 17 at
9:00 AM Eastern and can be accessed at (706) 634-9290. A replay of the
call will be available approximately two hours post-call at (402)
977-9140 (reservation number: 21335503). 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 8:30 AM Eastern on
April 17.
About Jefferies
Jefferies, a global investment bank and institutional securities
firm, has served growing and mid-sized companies and their investors
for 45 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,
2007 2006
---------- ----------
Revenues:
Commissions $ 77,032 $ 69,002
Principal transactions 144,449 159,980
Investment banking 170,115 127,734
Asset management fees and investment
income from managed funds 22,485 40,822
Interest 201,162 113,760
Other 8,041 12,779
---------- ----------
Total revenues 623,284 524,077
Interest expense 204,475 108,663
---------- ----------
Revenues, net of interest expense 418,809 415,414
---------- ----------
Non-interest expenses:
Compensation and benefits 227,666 232,734
Floor brokerage and clearing fees 14,582 13,933
Technology and communications 22,157 19,245
Occupancy and equipment rental 18,171 15,172
Business development 13,109 12,603
Other 19,631 24,320
---------- ----------
Total non-interest expenses 315,316 318,007
---------- ----------
Earnings before income taxes, minority
interest and cumulative effect of change
in accounting principle 103,493 97,407
Income taxes 40,658 38,432
---------- ----------
Earnings before minority interest and
cumulative effect of change in
accounting principle 62,835 58,975
Minority interest in earnings of
consolidated subsidiaries, net 576 2,134
---------- ----------
Earnings before cumulative effect of
change in accounting principle, net 62,259 56,841
Cumulative effect of change in accounting
principle -- 1,606
---------- ----------
Net earnings $ 62,259 $ 58,447
========== ==========
Earnings per share:
Basic-
Earnings before cumulative effect of
change in accounting principle, net $ 0.44 $ 0.44
Cumulative effect of change in accounting
principle -- 0.01
---------- ----------
Net earnings $ 0.44 $ 0.45
========== ==========
Diluted-
Earnings before cumulative effect of
change in accounting principle, net $ 0.42 $ 0.40
Cumulative effect of change in accounting
principle -- 0.01
---------- ----------
Net earnings $ 0.42 $ 0.41
========== ==========
Weighted average shares:
Basic 140,897 130,358
Diluted 152,058 142,942
Effective Tax Rate 39.3% 39.5%
* All share and per share information has been restated to
retroactively reflect the effect of the two-for-one stock split
effected as a stock dividend on May 15, 2006.
JEFFERIES GROUP, INC. AND SUBSIDIARIES
SELECTED STATISTICAL INFORMATION
(Dollars in Thousands, Except Per Share Amounts)
(Unaudited)
Quarters ended
------------------------------------
3/31/2007 12/31/2006 9/30/2006
---------- ----------- ----------
Statement of Earnings
- ----------------------------------
Revenues, net of interest expense $418,809 $374,235 $340,610
Non-interest expenses:
Compensation and benefits 227,666 197,425 184,421
Non-personnel expenses 87,650 82,615 79,852
---------- ----------- ----------
Earnings before income taxes,
minority interest and cumulative
effect of change in accounting
principle 103,493 94,195 76,337
Income taxes 40,658 38,018 29,734
---------- ----------- ----------
Earnings before minority interest
and cumulative effect of change
in accounting principle 62,835 56,177 46,603
Minority interest in earnings of
consolidated subsidiaries, net 576 394 663
---------- ----------- ----------
Earnings before cumulative effect
of change in accounting principle 62,259 55,783 45,940
Cumulative effect of change in
accounting principle -- -- --
---------- ----------- ----------
Net earnings $62,259 $55,783 $45,940
========== =========== ==========
Diluted earnings per share $0.42 $0.38 $0.32
========== =========== ==========
Financial Ratios
- ----------------------------------
Pretax operating margin 24.7% 25.2% 22.4%
Compensation and benefits / net
revenues 54.4% 52.8% 54.1%
Effective tax rate 39.3% 40.4% 39.0%
JEFFERIES GROUP, INC. AND SUBSIDIARIES
SELECTED STATISTICAL INFORMATION
(Dollars in Thousands, Except Per Share Amounts)
(Unaudited)
Quarters ended
----------------------------------
6/30/2006 3/31/2006 12/31/2005
----------- ---------- -----------
Statement of Earnings
- ------------------------------------
Revenues, net of interest expense $327,343 $415,414 $342,852
Non-interest expenses:
Compensation and benefits 176,675 232,734 188,933
Non-personnel expenses 69,953 85,273 75,532
----------- ---------- -----------
Earnings before income taxes,
minority interest and cumulative
effect of change in accounting
principle 80,715 97,407 78,387
Income taxes 31,357 38,432 30,880
----------- ---------- -----------
Earnings before minority interest
and cumulative effect of change
in accounting principle 49,358 58,975 47,507
Minority interest in earnings of
consolidated subsidiaries, net 3,778 2,134 768
----------- ---------- -----------
Earnings before cumulative effect
of change in accounting principle 45,580 56,841 46,739
Cumulative effect of change in
accounting principle -- 1,606 --
----------- ---------- -----------
Net earnings $45,580 $58,447 $46,739
=========== ========== ===========
Diluted earnings per share $0.32 $0.41 $0.34
=========== ========== ===========
Financial Ratios
- ------------------------------------
Pretax operating margin 24.7% 23.4% 22.9%
Compensation and benefits / net
revenues 54.0% 56.0% 55.1%
Effective tax rate 38.8% 39.5% 39.4%
JEFFERIES GROUP, INC. AND SUBSIDIARIES
SELECTED STATISTICAL INFORMATION
(Dollars and Shares in Thousands)
(Unaudited)
Quarters ended
--------------------------------
3/31/2007 12/31/2006 9/30/2006
--------------------------------
Revenues by Source
- --------------------------------------
Equities $173,057 $151,974 $112,635
Fixed Income & Commodities 56,465 42,942 62,059
--------------------------------
Total 229,522 194,916 174,694
Investment banking 170,115 145,167 144,763
Asset management fees and investment
income
from managed funds:
Asset management fees 9,451 14,190 6,345
Investment income from managed funds 13,034 15,228 10,438
--------------------------------
Total 22,485 29,418 16,783
Interest 201,162 143,847 132,424
--------------------------------
Total revenues $623,284 $513,348 $468,664
================================
Other Data
- --------------------------------------
Number of trading days 61 63 63
Average employees 2,265 2,239 2,212
Common shares outstanding 124,238 119,547 118,876
Weighted average shares:
Basic 140,897 136,438 135,140
Diluted 152,058 150,599 148,908
As of March 31, 2007, stockholders' equity amounted to $1.7 billion,
resulting in book value of $13.60 per share.
JEFFERIES GROUP, INC. AND SUBSIDIARIES
SELECTED STATISTICAL INFORMATION
(Dollars and Shares in Thousands)
(Unaudited)
Quarters ended
--------------------------------
6/30/2006 3/31/2006 12/31/2005
--------------------------------
Revenues by Source
- --------------------------------------
Equities $101,173 $173,109 $111,806
Fixed Income & Commodities 71,636 68,652 42,448
--------------------------------
Total 172,809 241,761 154,254
Investment banking 122,932 127,734 167,497
Asset management fees and investment
income
from managed funds:
Asset management fees 8,918 26,009 8,215
Investment income from managed funds 13,609 14,813 10,452
--------------------------------
Total 22,527 40,822 18,667
Interest 138,851 113,760 91,315
--------------------------------
Total revenues $457,119 $524,077 $431,733
================================
Other Data
- --------------------------------------
Number of trading days 63 62 63
Average employees 2,078 2,030 2,013
Common shares outstanding 118,540 118,502 116,221
Weighted average shares:
Basic 133,621 130,358 125,971
Diluted 147,605 142,942 137,959
As of March 31, 2007, stockholders' equity amounted to $1.7 billion,
resulting in book value of $13.60 per share.
*******
CONTACT: Jefferies Group, Inc.
Joseph A. Schenk, 212-284-2338