-----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, BXssk/y61zt+Fvl8BI9e7ij0r7IpyCXwwbe2VLGBFQUXgjqgmo0R7Xdy2TuofoBO c0nHDiA8Zm6Dq4Lccn5TbA== 0001157523-05-008838.txt : 20051018 0001157523-05-008838.hdr.sgml : 20051018 20051018081904 ACCESSION NUMBER: 0001157523-05-008838 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20051018 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20051018 DATE AS OF CHANGE: 20051018 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: 051142019 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 a4997008.txt JEFFERIES GROUP, INC. 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 18, 2005 Jefferies Group, Inc. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 1-14947 95-4719745 - -------------------------------------------------------------------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 520 Madison Ave., 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) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition On October 18, 2005, Jefferies Group, Inc. issued a press release announcing financial results for the quarter ended September 30, 2005. A copy of the press release is attached hereto as Exhibit 99 and is incorporated herein by reference. Item 9.01. Financial Statements and Exhibits The following exhibit is furnished with this report: Number Exhibit ------ ------- 99 October 18, 2005 press release issued by Jefferies Group, Inc. 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 18, 2005 /s/ Roland T. Kelly ----------------------- Roland T. Kelly Assistant Secretary INDEX TO EXHIBITS Exhibit No. Description 99 October 18, 2005 press release issued by Jefferies Group, Inc. EX-99 2 a4997008ex99.txt EXHIBIT 99 Exhibit 99 Jefferies Announces All-Time Records for Third Quarter and Nine-Month Total Revenues, Net Revenues, Net Earnings and EPS NEW YORK--(BUSINESS WIRE)--Oct. 18, 2005--Jefferies Group, Inc. (NYSE: JEF) today announced record quarterly financial results for the quarter ended September 30, 2005. Highlights for the record third quarter ended September 30, 2005: -- Total revenues were up 29% to $378.1 million versus $293.1 million for the third quarter of 2004. -- Net earnings were up 20% to $38.6 million compared to $32.3 million for the third quarter of 2004. -- Earnings per share (diluted) were up 12% to $0.57 compared to $0.51 for the third quarter of 2004. -- Investment banking revenues were up 49% to $107.6 million versus $72.1 million for the third quarter of 2004. Highlights for the record first nine months ended September 30, 2005: -- Total revenues were up 22% to $1.1 billion versus $873.4 million for the first nine months of 2004. -- Net earnings were up 15% to $110.7 million compared to $96.0 million for the first nine months of 2004. -- Earnings per share (diluted) were up 9% to $1.64 compared to $1.51 for the first nine months of 2004. -- Investment banking revenues were up 33% to $327.5 million versus $247.1 million for the first nine months of 2004. "We would like to thank our clients for their confidence, loyalty and belief in Jefferies. Additionally, we truly appreciate the effort, commitment and talent of our 2,001 employee partners who are the ones directly responsible for our success to date," commented Richard B. Handler, Chairman and Chief Executive Officer of Jefferies. Conference Call A conference call with management discussion of financial results for the third quarter ended September 30, 2005 will be held October 18 at 9:00 AM (Eastern) and can be accessed at 617-801-9714 (code: 18188135). A replay of the call will be available two hours post-call at 617-801-6888 (code: 92986930). 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 October 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 Nine Months Ended --------------------- ---------------------- Sept. 30, Sept. 30, Sept. 30, Sept. 30, 2005 2004 2005 2004 ---------- ---------- ----------- ---------- Revenues: Commissions $ 58,157 $ 62,020 $ 185,304 $ 200,325 Principal transactions 104,415 109,012 261,887 277,669 Investment banking 107,556 72,122 327,517 247,066 Asset management fees and Investment income from managed funds 21,667 11,618 63,385 54,030 Interest 81,467 35,948 212,738 85,132 Other 4,822 2,382 15,309 9,144 ---------- ---------- ----------- ---------- Total revenues 378,084 293,102 1,066,140 873,366 Interest expense 78,804 39,316 204,292 93,206 ---------- ---------- ----------- ---------- Revenues, net of interest expense 299,280 253,786 861,848 780,160 ---------- ---------- ----------- ---------- Non-interest expenses: Compensation and benefits 167,033 141,434 481,024 436,191 Floor brokerage and clearing fees 11,059 12,770 35,350 39,750 Technology and communications 16,432 16,029 50,053 48,632 Occupancy and equipment rental 10,936 10,250 32,852 29,306 Business development 9,651 7,189 27,698 24,529 Other 16,632 11,164 44,851 30,907 ---------- ---------- ----------- ---------- Total non-interest expenses 231,743 198,836 671,828 609,315 ---------- ---------- ----------- ---------- Earnings before income taxes and minority interest 67,537 54,950 190,020 170,845 Income taxes 26,143 21,516 73,209 63,980 ---------- ---------- ----------- ---------- Earnings before minority interest 41,394 33,434 116,811 106,865 Minority interest in earnings of consolidated subsidiaries, net 2,799 1,159 6,107 10,895 ---------- ---------- ----------- ---------- Net earnings $ 38,595 $ 32,275 $ 110,704 $ 95,970 ========== ========== =========== ========== Earnings per share: Basic $ 0.62 $ 0.56 $ 1.80 $ 1.68 ========== ========== =========== ========== Diluted $ 0.57 $ 0.51 $ 1.64 $ 1.51 ========== ========== =========== ========== Weighted average shares: Basic 62,224 57,833 61,434 57,233 Diluted 68,112 63,867 67,374 63,616 JEFFERIES GROUP, INC. AND SUBSIDIARIES SELECTED STATISTICAL INFORMATION (Dollars in Thousands, Except Per Share Amounts) (Unaudited) Quarters ended -------------------------------- 9/30/2005 6/30/2005 3/31/2005 ---------- ---------- ---------- Statement of Earnings --------------------- Revenues, net of interest expense $ 299,280 $ 276,558 $ 286,010 Non-interest expenses: Compensation and benefits 167,033 152,003 161,988 Non-personnel expenses 64,710 64,245 61,849 ---------- ---------- ---------- Earnings before income taxes and minority interest 67,537 60,310 62,173 Income taxes 26,143 23,621 23,445 ---------- ---------- ---------- Earnings before minority interest 41,394 36,689 38,728 Minority interest in earnings of consolidated subsidiaries, net 2,799 1,252 2,056 ---------- ---------- ---------- Net earnings $ 38,595 $ 35,437 $ 36,672 ========== ========== ========== Diluted earnings per share $ 0.57 $ 0.53 $ 0.56 ========== ========== ========== Financial Ratios ---------------- Pretax operating margin 22.6% 21.8% 21.7% Compensation and benefits / net revenues 55.8% 55.0% 56.6% Effective tax rate 38.7% 39.2% 37.7% Quarters ended ----------------------- 12/31/2004 9/30/2004 ----------- ---------- Statement of Earnings --------------------- Revenues, net of interest expense $ 278,085 $ 253,786 Non-interest expenses: Compensation and benefits 159,696 141,434 Non-personnel expenses 62,245 57,402 ----------- ---------- Earnings before income taxes and minority interest 56,144 54,950 Income taxes 19,975 21,516 ----------- ---------- Earnings before minority interest 36,169 33,434 Minority interest in earnings of consolidated subsidiaries, net 773 1,159 ----------- ---------- Net earnings $ 35,396 $ 32,275 =========== ========== Diluted earnings per share $ 0.55 $ 0.51 =========== ========== Financial Ratios ---------------- Pretax operating margin 20.2% 21.7% Compensation and benefits / net revenues 57.4% 55.7% Effective tax rate 35.6% 39.2% JEFFERIES GROUP, INC. AND SUBSIDIARIES SELECTED STATISTICAL INFORMATION (Dollars and Shares in Thousands) (Unaudited) Quarters ended ------------------------------ 9/30/2005 6/30/2005 3/31/2005 ---------- --------- --------- Revenues by Source - ------------------ Commissions and principal transactions: Equities $105,360 $91,917 $95,067 High yield 20,985 14,188 16,650 Convertibles 9,514 8,948 8,115 Execution 5,074 5,472 7,060 Bonds Direct 7,612 7,140 7,234 Other proprietary 14,027 15,348 7,480 ---------- --------- --------- Total 162,572 143,013 141,606 Investment banking 107,556 102,519 117,442 Asset management fees and investment income from managed funds: Asset management fees 14,239 13,580 14,909 Investment income from managed funds 7,428 6,854 6,375 ---------- --------- --------- Total 21,667 20,434 21,284 Interest 81,467 71,420 59,851 Other 4,822 6,777 3,710 ---------- --------- --------- Total revenues $378,084 $344,163 $343,893 ========== ========= ========= Other Data - ---------- Number of trading days 64 64 61 Average employees 2,001 1,916 1,817 Common shares outstanding 58,083 57,759 58,090 Weighted average shares: Basic 62,224 61,468 60,570 Diluted 68,112 67,422 65,997 Quarters ended ----------------------- 12/31/2004 9/30/2004 ----------- ---------- Revenues by Source - ------------------ Commissions and principal transactions: Equities $ 104,596 $ 127,764 High yield 9,829 10,845 Convertibles 10,484 9,368 Execution 7,350 7,989 Bonds Direct 7,472 11,604 Other proprietary (674) 3,462 ----------- ---------- Total 139,057 171,032 Investment banking 105,738 72,122 Asset management fees and investment income from managed funds: Asset management fees 12,472 7,990 Investment income from managed funds 14,682 3,628 ----------- ---------- Total 27,154 11,618 Interest 49,318 35,948 Other 4,006 2,382 ----------- ---------- Total revenues $ 325,273 $ 293,102 =========== ========== Other Data - ---------- Number of trading days 64 67 Average employees 1,750 1,749 Common shares outstanding 57,289 56,872 Weighted average shares: Basic 58,112 57,833 Diluted 64,744 63,867 As of September 30, 2005, stockholders' equity amounted to $1.2 billion, resulting in a book value of $20.69 per share. CONTACT: for Jefferies Group, Inc. Joseph A. Schenk, 212-284-2338 -----END PRIVACY-ENHANCED MESSAGE-----