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Empresas y finanzas

Jefferies Reports Fourth Quarter and 2011 Fiscal Year FinancialResults


    Jefferies Group, Inc. (NYSE: JEF) announced today financial results for its fiscal fourth quarter and fiscal year ended November 30, 2011.

    Highlights for the three months ended November 30, 2011 (which include a $12 million after-tax gain relating to debt extinguishment treatment of Jefferies debt positions by our broker-dealer´s market-making desk, and $2 million in certain expenses, after tax, as a result of the Bache acquisition), versus the three months ended November 30, 2010:

    • Net revenues of $554 million ($534 million excluding the above noted accounting items), versus $680 million
    • Net income to Common Shareholders of $48 million ($39 million excluding the above noted accounting items), versus $63 million
    • Net earnings per common share of $0.21 ($0.17 excluding the above noted accounting items), versus $0.31
    • Investment Banking revenues of $261 million, versus $292 million

    Highlights for the fiscal year ended November 30, 2011 (which includes after-tax income of $41 million from the Bache acquisition gain net of certain post-acquisition expenses and the $12 million after-tax gain relating to debt extinguishment treatment of Jefferies´ debt positions by our broker-dealer´s market-making desk), versus the eleven months ended November 30, 2010:

    • Net revenues of $2,549 million ($2,476 million excluding the above noted accounting items), versus $2,192 million
    • Net income to Common Shareholders of $285 million ($232 million excluding the above noted accounting items), versus $224 million
    • Net earnings per common share of $1.28 ($1.04 excluding the above noted accounting items), versus $1.09
    • Investment Banking revenues of $1,123 million, versus $890 million

    "We are proud of our 3,851 employee-partners who successfully navigated an extremely challenging fourth quarter that included continuing global volatility compounded by a November filled with a barrage of misinformation about Jefferies. Our firm responded by reducing our total balance sheet by nearly one quarter, decreasing our leverage to 9.9x from 12.9x, maintaining the already high quality of our inventory, and delivering solid profitability," commented Richard B. Handler, Chairman and Chief Executive Officer of Jefferies.

    "Jefferies is better positioned than ever to serve the needs of our clients across the globe. Competitive and legislative forces continue to evolve in ways that favor our client-focused model. We believe we can continue to add significant value and gain further market share serving our clients´ needs for advice, capital, liquidity and execution in the capital markets and strategic transactions," said Brian P. Friedman, Chairman of the Executive Committee of Jefferies.

    A conference call with management discussion of these financial results will be held today, December 20, 2011, at 9:00 AM Eastern. Investors and securities industry professionals may access the management discussion by calling 877-710-9938 or 702-928-7183. A one-week replay of the call will also be available at 855-859-2056 or 404-537-3406 (conference ID # 29699238). A live audio webcast and delayed replay can also be accessed at Jefferies.com.

    Jefferies Group, Inc. (NYSE: JEF) is the global investment banking firm focused on serving clients for nearly 50 years. The firm is a leader in providing insight, expertise and execution to investors, companies and governments, and provides a full range of investment banking, sales, trading, research and strategy across the spectrum of equities, fixed income and commodities, as well as offers select asset and wealth management strategies, in the U.S., Europe and Asia.

    -- financial tables follow --

     

      JEFFERIES GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Amounts in Thousands, Except Per Share Amounts) (Unaudited)                           Twelve Months   Eleven Months     Three Months Ended (14)   Ended   Ended (14)     Nov 30, 2011   Nov 30, 2010   Nov 30, 2011  

    Nov 30, 2010

    Revenues:                 Commissions   $ 130,619   $ 118,719   $ 534,726   $ 466,246 Principal transactions     36,571     191,385     428,035     509,070 Investment banking     261,298     291,884     1,122,528     890,334

    Asset management fees and investment income from managed funds

     

        6,623     4,981     44,125     16,785 Interest     317,485     226,769     1,248,132     852,494 Other     46,144     18,175     152,092     62,417 Total revenues     798,740     851,913     3,529,638     2,797,346 Interest expense     244,757     172,101     980,825     605,096 Net revenues     553,983     679,812     2,548,813     2,192,250

    Interest on mandatorily redeemable preferred interest of consolidated subsidiaries

     

        (2,561)     14,942     3,622     14,916

    Net revenues, less mandatorily redeemable preferred interest

     

        556,544     664,870     2,545,191     2,177,334                   Non-interest expenses:                 Compensation and benefits     308,137     405,440     1,482,604     1,282,644 Floor brokerage and clearing fees     33,837     26,636     126,313     110,835 Technology and communications     62,377     46,797     215,940     160,987 Occupancy and equipment rental     23,954     18,636     84,951     68,085 Business development     29,397     19,610     93,645     62,015 Professional services     17,868     14,378     66,305     49,080 Other     10,294     9,795     56,099     47,017 Total non-interest expenses     485,864     541,292     2,125,857     1,780,663 Earnings before income taxes     70,680     123,578     419,334     396,671 Income tax expense     25,066     46,126     132,966     156,404 Net earnings     45,614     77,452     286,368     240,267 Net (loss) earnings to noncontrolling interests     (2,772)     14,735     1,750     16,601 Net earnings to common shareholders   $ 48,386   $ 62,717   $ 284,618   $ 223,666 Earnings per common share:                 Basic   $ 0.21   $ 0.31   $ 1.28   $ 1.10 Diluted   $ 0.21   $ 0.31   $ 1.28   $ 1.09                   Weighted average common shares:                 Basic     215,628     194,901     211,056     196,393 Diluted     215,629     199,017     215,171     200,511                   Effective tax rate     35%     37%     32%     39%                          

     

        Jefferies Group, Inc. And Subsidiaries   Selected Statistical Information   (Amounts in Thousands, Except Per Share Amounts)   (Unaudited)                                   Quarters Ended (14)       11/30/2011   8/31/2011   5/31/2011   2/28/2011   11/30/2010   8/31/2010  

    Statement of Earnings

                             

    Net revenues, less mandatorily redeemable preferred interest

      $ 556,544     $ 523,953     $ 722,750     $ 741,944     $ 664,870     $ 519,806                                 Non-interest expenses:                           Compensation and benefits     308,137       299,640       431,936       442,892       405,440       308,797     Non-compensation expenses     177,727       169,075       160,330       136,121       135,852       134,511     Earnings before income taxes     70,680       55,238       130,484       162,931       123,578       76,498     Income tax expense     25,066       1,228       45,784       60,886       46,126       33,873     Net earnings     45,614       54,010       84,700       102,045       77,452       42,625     Net (loss) earnings to noncontrolling interests     (2,772 )     (14,265 )     4,084       14,704       14,735       (2,129 )   Net earnings to common shareholders   $ 48,386     $ 68,275     $ 80,616     $ 87,341     $ 62,717     $ 44,754     Diluted earnings per common share   $ 0.21     $ 0.30     $ 0.36     $ 0.42     $ 0.31     $ 0.22                                

    Financial Ratios

                              Pretax operating margin     13 %     11 %     18 %     22 %     19 %     15 %   Compensation and benefits / Net revenues     56 %     59 %     59 %     58 %     60 %     60 %   Effective tax rate     35 %     2 %     35 %     37 %     37 %     44 %                                                      

     

        Jefferies Group, Inc. And Subsidiaries   Selected Statistical Information   (Amounts in Thousands, Except Per Share Amounts)   (Unaudited)                                   Quarters Ended (14)       11/30/2011   8/31/2011   5/31/2011   2/28/2011   11/30/2010   8/31/2010  

    Revenues by Source

                              Equities   $ 124,305     $ 126,850     $ 165,076   $ 177,358   $ 155,071     $ 109,280     Fixed Income     140,651       33,087       223,121     318,097     227,876       161,010     Other     21,106       52,509       -     -     -       -     Total     286,062       212,446       388,197     495,455     382,947       270,290                                                             Equity     26,936       58,629       52,039     49,684     48,369       19,151     Debt     62,090       128,058       131,806     62,967     86,814       77,564     Capital markets     89,026       186,687       183,845     112,651     135,183       96,715     Advisory     172,272       107,063       144,576     126,408     156,701       149,478     Investment banking     261,298       293,750       328,421     239,059     291,884       246,193                                 Asset management fees and investment (loss)/income

    from managed funds:

                      Asset management fees     9,162       3,127       5,019     16,117     6,083       3,996     Investment (loss) / income from managed funds     (2,539 )     (41 )     5,528     7,751     (1,102 )     (3,210 )   Total     6,623       3,086       10,547     23,868     4,981       786     Net revenues     553,983       509,282       727,165     758,382     679,812       517,269     Interest on mandatorily redeemable preferred interest of consolidated subsidiaries     (2,561 )     (14,671 )     4,415     16,438     14,942       (2,537 )   Net revenues, less mandatorily redeemable preferred interest   $ 556,544     $ 523,953     $ 722,750   $ 741,944   $ 664,870     $ 519,806                                

    Other Data