-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, B1ZQ3kS+iQIttSQaBYZPBOc6wu7jYGr6RFowSAr7iCu2uXZqt05DiYliuTdFFdu6 jeGSWXyWrVzMOS/8tGfavw== 0001157523-03-005310.txt : 20031014 0001157523-03-005310.hdr.sgml : 20031013 20031014093236 ACCESSION NUMBER: 0001157523-03-005310 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031014 ITEM INFORMATION: FILED AS OF DATE: 20031014 FILER: COMPANY DATA: COMPANY CONFORMED NAME: JEFFERIES GROUP INC /DE/ CENTRAL INDEX KEY: 0001084580 STANDARD INDUSTRIAL CLASSIFICATION: SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211] IRS NUMBER: 954719745 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14947 FILM NUMBER: 03938050 BUSINESS ADDRESS: STREET 1: 520 MADISON AVENUE STREET 2: 12TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10022 BUSINESS PHONE: 212-284-2550 MAIL ADDRESS: STREET 1: 520 MADISON AVENUE STREET 2: 12TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10022 FORMER COMPANY: FORMER CONFORMED NAME: JEF HOLDING CO INC DATE OF NAME CHANGE: 19990419 8-K 1 a4492207.txt JEFFRIES & CO. 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) October 14, 2003 Jefferies Group, Inc. (Exact name of registrant as specified in its charter) Delaware 1-14947 95-4719745 - ---------------------------- -------------------------- ---------------- (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 520 Madison Avenue, 12th Floor, New York, New York 10022 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 212-284-2550 ---------------------------------------------------------- (Former name or former address, if changed since last report) Item 12. Results of Operations and Financial Condition. On October 14, 2003, Jefferies Group, Inc. issued a press release announcing financial results for the quarter ended September 26, 2003. A copy of the press release is attached hereto as Exhibit 99.1. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Jefferies Group, Inc. Date: October 14, 2003 /s/ Joseph A. Schenk ------------------------------ Joseph A. Schenk Executive Vice President and Chief Financial Officer INDEX TO EXHIBITS Exhibit No. Description - ------------- ---------------- 99.1 October 14, 2003 press release issued by Jefferies Group, Inc. EX-99 3 a4492207ex991.txt EXHIBIT 99.1 - PRESS RELEASE EXHIBIT 99.1 Jefferies Announces Record Quarterly Earnings Per Share up 67% from Prior Year NEW YORK--(BUSINESS WIRE)--Oct. 14, 2003--Jefferies Group, Inc. (NYSE: JEF) today announced financial results for the third quarter and nine months ended September 26, 2003. Highlights for the third quarter ended September 26, 2003: -- Earnings per share (diluted) increased 67% to a record $0.35, exceeding the $0.21 earned in the third quarter of 2002. -- Net earnings were up 74% to a record $20.5 million compared to $11.8 million for the third quarter of 2002. -- Earnings before income taxes and minority interest grew 87% to a record $36.1 million compared to $19.3 million for the third quarter of 2002. -- Total revenues rose 24% to $221.9 million versus $179.2 million in the third quarter of 2002. -- Investment banking revenues climbed 43% to $42.0 million compared to $29.5 million for the third quarter of 2002. Highlights for the first nine months ended September 26, 2003: -- Earnings per share (diluted) increased 7% to a record $0.92, exceeding the $0.86 earned in the first nine months of 2002. -- Net earnings were up 14% to a record $53.5 million compared to $47.1 million for the first nine months of 2002. -- Earnings before income taxes and minority interest grew 16% to a record $91.7 million compared to $79.2 million for the first nine months of 2002. -- Total revenues rose 11% to a record $637.5 million versus $575.4 million for the first nine months of 2002. -- Investment banking revenues climbed 20% to $130.9 million compared to $108.8 million for the first nine months of 2002. "We had solid results with a significant number of our business units showing gains from the previous quarter as the capital markets and economy improved," said Richard B. Handler, Chairman and Chief Executive Officer of Jefferies. "We are particularly pleased with this quarter as it extends Jefferies' strong performance during the past three record years." "Our investment in human capital over the past few years is paying dividends, and we remain focused on the expansion and diversification of the Jefferies platform," added John C. Shaw, Jr., President of Jefferies. "Our ability to attract and retain meaningful producers in each of our businesses continues to be key to our growth." Conference Call A conference call with management discussion of financial results for the third quarter ended September 26, 2003 will be held October 14 at 11:30 AM (Eastern) and can be accessed at 617-801-9714 (code: 22871334). A replay of the call will be available two hours post-call at 617-801-6888 (code: 14373162). A live audio Webcast and delayed replay will also be available under "Investor Relations" at www.jefco.com. Questions for consideration by management may be submitted in advance through the "Contact Us" function at www.jefco.com or by calling 203-708-5975 by 10 AM Eastern on October 14. About Jefferies Jefferies Group, Inc. (NYSE: JEF) is a holding company whose affiliated companies, including its principal operating subsidiary, Jefferies & Company, Inc., offer a variety of services for institutional investors and middle-market companies. Subsidiaries of Jefferies Group, Inc., together, comprise a full-service investment bank and institutional securities firm focused on the middle market. Jefferies offers financial advisory, capital raising, mergers and acquisitions, and restructuring services to small and mid-cap companies. The firm provides outstanding trade execution in equity, high yield, convertible and international securities, as well as fundamental research and asset management capabilities, to institutional investors. Additional services include correspondent clearing, prime brokerage, private client services and securities lending. The firm's leadership in equity trading is recognized by numerous consulting and survey organizations, and Jefferies' subsidiary, Helfant Group, Inc., executes approximately eleven percent of the daily reported volume of the NYSE. Through its subsidiaries, Jefferies Group, Inc. employs more than 1,400 people in offices worldwide, including Atlanta, Boston, Chicago, Dallas, London, Los Angeles, New York, Paris, San Francisco, Tokyo, Washington and Zurich. Further information about Jefferies, including a description of investment banking, trading, research and asset management services, can be found at www.jefco.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. 26, Sept. 27, Sept. 26, Sept. 27, 2003 2002 2003 2002 ---------- ---------- ---------- ---------- Revenues: Commissions $ 59,379 $ 72,183 $ 185,806 $ 199,819 Principal transactions 86,749 48,260 225,875 182,215 Investment banking 42,000 29,451 130,919 108,769 Interest 23,582 25,091 75,782 71,167 Asset management 4,891 2,390 10,578 8,601 Other 5,346 1,776 8,495 4,799 ---------- ---------- ---------- ---------- Total revenues 221,947 179,151 637,455 575,370 Interest expense 21,117 20,242 73,545 60,588 ---------- ---------- ---------- ---------- Revenues, net of interest expense 200,830 158,909 563,910 514,782 ---------- ---------- ---------- ---------- Non-interest expenses: Compensation and benefits 115,996 91,878 325,508 298,160 Floor brokerage and clearing fees 12,323 14,542 35,618 42,132 Technology and communications 13,998 13,446 42,622 38,839 Occupancy and equipment rental 7,824 6,711 24,649 19,017 Business development 6,022 5,445 17,591 17,435 Other 8,527 7,573 26,223 20,024 ---------- ---------- ---------- ---------- Total non-interest expenses 164,690 139,595 472,211 435,607 ---------- ---------- ---------- ---------- Earnings before income taxes and minority interest 36,140 19,314 91,699 79,175 Income taxes 12,906 7,532 33,618 32,106 ---------- ---------- ---------- ---------- Earnings before minority interest 23,234 11,782 58,081 47,069 Minority interest in earnings of consolidated subsidiaries, net 2,702 -- 4,626 -- ---------- ---------- ---------- ---------- Net earnings $ 20,532 $ 11,782 $ 53,455 $ 47,069 ========== ========== ========== ========== Earnings per share: Basic $ 0.41 $ 0.24 $ 1.06 $ 0.95 ========== ========== ========== ========== Diluted $ 0.35 $ 0.21 $ 0.92 $ 0.86 ========== ========== ========== ========== Weighted average shares: Basic 50,642 49,291 50,225 49,356 Diluted 59,502 55,237 58,269 54,957 All share and per share information has been restated to retroactively reflect the effect of the two-for-one stock split declared by the Board of Directors on July 14, 2003 effected as a stock dividend on August 15, 2003. JEFFERIES GROUP, INC. AND SUBSIDIARIES SELECTED STATISTICAL INFORMATION (Dollars in Thousands, Except Per Share Amounts) (Unaudited) Quarters ended ------------------------------------------------- 9/26/ 6/27/ 3/28/ 12/31/ 9/27/ 2003 2003 2003 2002 2002 --------- --------- --------- --------- --------- Statement of Earnings - ----------------------- Revenues, net of interest expense $200,830 $198,831 $164,249 $159,907 $158,909 Non-interest expenses: Compensation and benefits 115,996 114,115 95,397 87,425 91,878 Non-personnel expenses 48,694 52,414 45,595 47,965 47,717 --------- --------- --------- --------- --------- Earnings before income taxes and minority interest 36,140 32,302 23,257 24,517 19,314 Income taxes 12,906 11,640 9,072 9,015 7,532 --------- --------- --------- --------- --------- Earnings before minority interest 23,234 20,662 14,185 15,502 11,782 Minority interest in earnings of consolidated subsidiaries, net 2,702 1,924 -- -- -- --------- --------- --------- --------- --------- Net earnings $20,532 $18,738 $14,185 $15,502 $11,782 ========= ========= ========= ========= ========= Diluted earnings per share $0.35 $0.32 $0.25 $0.28 $0.21 ========= ========= ========= ========= ========= Financial Ratios - ------------------ Pretax operating margin 18.0% 16.2% 14.2% 15.3% 12.2% Compensation and benefits/net revenues 57.8% 57.4% 58.1% 54.7% 57.8% Effective tax rate 35.7% 36.0% 39.0% 36.8% 39.0% All per share information has been restated to retroactively reflect the effect of the two-for-one stock split declared by the Board of Directors on July 14, 2003 effected as a stock dividend on August 15, 2003. JEFFERIES GROUP, INC. AND SUBSIDIARIES SELECTED STATISTICAL INFORMATION (Dollars and Shares in Thousands) (Unaudited) Quarters ended ------------------------------------------------- 9/26/ 6/27/ 3/28/ 12/31/ 9/27/ 2003 2003 2003 2002 2002 --------- --------- --------- --------- --------- Revenues by Source - -------------------- Commissions and principal transactions: Equities $85,142 $85,047 $69,993 $86,802 $81,613 International 21,951 25,618 16,231 16,703 21,602 High yield 10,843 9,434 10,835 7,479 6,502 Convertibles 5,146 8,570 8,184 7,825 6,823 Execution 6,210 5,946 5,089 5,842 6,380 Bonds Direct 8,066 6,038 4,538 3,293 3,723 Other proprietary trading 8,770 9,554 476 (5,713) (6,200) --------- --------- --------- --------- --------- Total 146,128 150,207 115,346 122,231 120,443 Investment banking 42,000 44,716 44,203 31,059 29,451 Interest 23,582 30,701 21,499 20,860 25,091 Asset management 4,891 3,010 2,677 3,425 2,390 Other 5,346 1,575 1,574 1,831 1,776 --------- --------- --------- --------- --------- Total revenues $221,947 $230,209 $185,299 $179,406 $179,151 ========= ========= ========= ========= ========= Other Data - ------------ Number of trading days 63 63 60 65 63 Average employees 1,384 1,364 1,359 1,323 1,292 Common shares outstanding 56,425 55,142 55,136 53,904 53,790 Weighted average shares: Basic 50,642 50,204 49,811 48,878 49,291 Diluted 59,502 58,077 57,124 55,236 55,237 All share and per share information has been restated to retroactively reflect the effect of the two-for-one stock split declared by the Board of Directors on July 14, 2003 effected as a stock dividend on August 15, 2003. As of September 26, 2003, stockholders' equity amounted to $716 million, resulting in a book value of $12.69 per share. CONTACT: Joseph A. Schenk, 212-284-2338 -----END PRIVACY-ENHANCED MESSAGE-----