-----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, F6dfo6vqix+SRddV5uzm5DcoYHVh2iE2AD3c6ySz0w9OwOu7zYjv7X6/XuMPsP8j OdnHZrDjGTl1WXwWQM7u/A== 0001157523-06-000355.txt : 20060118 0001157523-06-000355.hdr.sgml : 20060118 20060118082630 ACCESSION NUMBER: 0001157523-06-000355 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060118 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060118 DATE AS OF CHANGE: 20060118 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: 06534385 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 a5058477.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): January 18, 2006 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 January 18, 2006, Jefferies Group, Inc. issued a press release announcing financial results for the quarter and year ended December 31, 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 January 18, 2006 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: January 18, 2006 /s/ Roland T. Kelly --------------------------- Roland T. Kelly Assistant Secretary INDEX TO EXHIBITS Exhibit No. Description 99 January 18, 2006 press release issued by Jefferies Group, Inc. EX-99 2 a5058477ex99.txt EXHIBIT 99 Exhibit 99 Jefferies Announces Sixth Consecutive Record Year with All-Time Records for Quarterly and Annual Results NEW YORK--(BUSINESS WIRE)--Jan. 18, 2006--Jefferies Group, Inc. (NYSE: JEF): -- Record $1.5 Billion in Annual Total Revenues, $157 Million in Annual Net Earnings, and $2.32 in Annual EPS -- Fourth Quarter Record EPS of 68 Cents Per Share -- Investment Banking Revenues of $167 Million for the Quarter and $495 Million for the Year Jefferies Group, Inc. (NYSE: JEF) today announced record quarterly financial results for the quarter ended December 31, 2005. Highlights for the record fourth quarter ended December 31, 2005: -- Total revenues were up 33% to a record $431.7 million versus $325.3 million for the fourth quarter of 2004. -- Net earnings were up 32% to a record $46.7 million compared to $35.4 million for the fourth quarter of 2004. -- Earnings per share (diluted) were up 24% to a record $0.68 compared to $0.55 for the fourth quarter of 2004. -- Investment banking revenues were up 58% to $167.5 million versus $105.7 million for the fourth quarter of 2004. Highlights for the record year ended December 31, 2005: -- Total revenues were up 25% to a record $1.5 billion versus $1.2 billion for 2004. -- Net earnings were up 20% to a record $157.4 million compared to $131.4 million for 2004. -- Earnings per share (diluted) were up 13% to a record $2.32 compared to $2.06 for 2004. -- Investment banking revenues were up 40% to a record $495.0 million versus $352.8 million for 2004. "We are proud of our company and would like to thank each of our employee-partners, clients and investors for their strong support," commented Richard B. Handler, Chairman and Chief Executive Officer of Jefferies. Conference Call A conference call with management discussion of financial results for the fourth quarter and year ended December 31, 2005 will be held January 18 at 9:00 AM (Eastern) and can be accessed at 617-801-9714 (code: 58602490). A replay of the call will be available two hours post-call at 617-801-6888 (code: 68173108). A live audio webcast and delayed replay will also be available under "Investor Relations" at www.jefferies.com. Questions for consideration by management can be submitted in advance through the "Contact Us" function at www.jefferies.com or by calling 203-708-5975 by 8:45 AM Eastern on January 18. About Jefferies Jefferies, a global investment bank and institutional securities firm, has served growing and mid-sized companies and their investors for over 40 years. Headquartered in New York, with more than 25 offices around the world, Jefferies provides clients with capital markets and financial advisory services, institutional brokerage, securities research and asset management. The firm is a leading provider of trade execution in equity, high yield, convertible and international securities for institutional investors and high net worth individuals. Jefferies & Company, Inc. is the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF; www.jefferies.com). -- financial tables follow -- JEFFERIES GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Amounts in Thousands, Except Per Share Amounts) (Unaudited) Three Months Ended Year Ended ------------------ ---------------------- Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2005 2004 2005 2004 -------- -------- --------- ---------- Revenues: Commissions..............$ 61,639 $ 58,513 $ 246,943 $ 258,838 Principal transactions... 87,602 80,544 349,489 358,213 Investment banking....... 167,497 105,738 495,014 352,804 Asset management fees and Investment income from managed funds.......... 18,667 27,154 82,052 81,184 Interest................. 91,315 49,318 304,053 134,450 Other.................... 5,013 4,006 20,322 13,150 -------- -------- --------- ---------- Total revenues......... 431,733 325,273 1,497,873 1,198,639 Interest expense........... 88,881 47,188 293,173 140,394 -------- -------- --------- ---------- Revenues, net of interest expense................... 342,852 278,085 1,204,700 1,058,245 -------- -------- --------- ---------- Non-interest expenses: Compensation and benefits................ 188,933 159,696 669,957 595,887 Floor brokerage and clearing fees........... 11,294 13,172 46,644 52,922 Technology and communications.......... 17,613 15,923 67,666 64,555 Occupancy and equipment rental.................. 14,188 10,247 47,040 39,553 Business development..... 14,814 10,477 42,512 35,006 Other.................... 17,623 12,426 62,474 43,333 -------- -------- --------- ---------- Total non-interest expenses.............. 264,465 221,941 936,293 831,256 -------- -------- --------- ---------- Earnings before income taxes and minority interest......... 78,387 56,144 268,407 226,989 Income taxes............... 30,880 19,975 104,089 83,955 -------- -------- --------- ---------- Earnings before minority interest.................. 47,507 36,169 164,318 143,034 Minority interest in earnings of consolidated subsidiaries, net........ 768 773 6,875 11,668 -------- -------- --------- ---------- Net earnings...........$ 46,739 $ 35,396 $ 157,443 $ 131,366 ======== ======== ========= ========== Earnings per share: Basic....................$ 0.74 $ 0.61 $ 2.55 $ 2.29 ======== ======== ========= ========== Diluted..................$ 0.68 $ 0.55 $ 2.32 $ 2.06 ======== ======== ========= ========== Weighted average shares: Basic.................... 62,985 58,112 61,823 57,453 Diluted.................. 68,979 64,744 67,784 63,908 JEFFERIES GROUP, INC. AND SUBSIDIARIES SELECTED STATISTICAL INFORMATION (Dollars in Thousands, Except Per Share Amounts) (Unaudited) Quarters ended ---------------------------------- 12/31/2005 9/30/2005 6/30/2005 ----------- --------- ---------- Statement of Earnings --------------------- Revenues, net of interest expense.....$342,852 $299,280 $276,558 Non-interest expenses: Compensation and benefits........... 188,933 167,033 152,003 Non-personnel expenses.............. 75,532 64,710 64,245 ------- -------- --------- Earnings before income taxes and minority interest.................... 78,387 67,537 60,310 Income taxes.......................... 30,880 26,143 23,621 ------- -------- --------- Earnings before minority interest..... 47,507 41,394 36,689 Minority interest in earnings of consolidated subsidiaries, net....... 768 2,799 1,252 ------- -------- --------- Net earnings...................... $46,739 $38,595 $35,437 ======= ======== ========= Diluted earnings per share............ $0.68 $0.57 $0.53 ======= ======== ========= Financial Ratios ---------------- Pretax operating margin............... 22.9% 22.6% 21.8% Compensation and benefits / net revenues............................. 55.1% 55.8% 55.0% Effective tax rate.................... 39.4% 38.7% 39.2% Quarters ended --------------------- 3/31/2005 12/31/2004 --------- ---------- Statement of Earnings - ---------------------- Revenues, net of interest expense.....$286,010 $278,085 Non-interest expenses: Compensation and benefits........... 161,988 159,696 Non-personnel expenses.............. 61,849 62,245 ------- --------- Earnings before income taxes and minority interest.................... 62,173 56,144 Income taxes.......................... 23,445 19,975 ------- --------- Earnings before minority interest..... 38,728 36,169 Minority interest in earnings of consolidated subsidiaries, net....... 2,056 773 ------- --------- Net earnings...................... $36,672 $35,396 ======= ========= Diluted earnings per share............ $0.56 $0.55 ======= ========= Financial Ratios - ----------------- Pretax operating margin............... 21.7% 20.2% Compensation and benefits / net revenues............................. 56.6% 57.4% Effective tax rate.................... 37.7% 35.6% JEFFERIES GROUP, INC. AND SUBSIDIARIES SELECTED STATISTICAL INFORMATION (Dollars and Shares in Thousands) (Unaudited) Quarters ended --------------------------------- 12/31/2005 9/30/2005 6/30/2005 ---------- --------- ---------- Revenues by Source - ------------------ Commissions and principal transactions: Equities........................... $100,479 $105,360 $91,917 High yield......................... 10,050 20,985 14,188 Convertibles....................... 10,495 9,514 8,948 Execution.......................... 5,424 5,074 5,472 Bonds Direct....................... 6,747 7,612 7,140 Other proprietary.................. 16,046 14,027 15,348 --------- --------- ---------- Total............................ 149,241 162,572 143,013 Investment banking.................... 167,497 107,556 102,519 Asset management fees and investment income from managed funds: Asset management fees.............. 8,215 14,239 13,580 Investment income from managed funds............................. 10,452 7,428 6,854 --------- --------- ---------- Total............................ 18,667 21,667 20,434 Interest.............................. 91,315 81,467 71,420 Other................................. 5,013 4,822 6,777 --------- --------- ---------- Total revenues..................... $431,733 $378,084 $344,163 ========= ========= ========== Other Data - ---------- Number of trading days................ 63 64 64 Average employees..................... 2,013 2,001 1,916 Common shares outstanding............. 58,110 58,083 57,759 Weighted average shares: Basic.............................. 62,985 62,224 61,468 Diluted............................ 68,979 68,112 67,422 Quarters ended ---------------------- 3/31/2005 12/31/2004 --------- ----------- Revenues by Source - ------------------ Commissions and principal transactions: Equities........................... $95,067 $104,596 High yield......................... 16,650 9,829 Convertibles....................... 8,115 10,484 Execution.......................... 7,060 7,350 Bonds Direct....................... 7,234 7,472 Other proprietary.................. 7,480 (674) --------- ----------- Total............................ 141,606 139,057 Investment banking.................... 117,442 105,738 Asset management fees and investment income from managed funds: Asset management fees.............. 14,909 12,472 Investment income from managed funds............................. 6,375 14,682 --------- ----------- Total............................ 21,284 27,154 Interest.............................. 59,851 49,318 Other................................. 3,710 4,006 --------- ----------- Total revenues..................... $343,893 $325,273 ========= =========== Other Data - ---------- Number of trading days................ 61 64 Average employees..................... 1,817 1,750 Common shares outstanding............. 58,090 57,289 Weighted average shares: Basic.............................. 60,570 58,112 Diluted............................ 65,997 64,744 As of December 31, 2005, stockholders' equity amounted to $1.3 billion, resulting in a book value of $22.14 per share. JEFFERIES GROUP, INC. AND SUBSIDIARIES SELECTED STATISTICAL INFORMATION MODIFIED (Dollars and Shares in Thousands) (Unaudited) Quarters ended ------------------------------- 12/31/2005 9/30/2005 6/30/2005 ------------------------------- Revenues by Source - ------------------ Equities $122,670 $130,211 $113,563 Fixed Income & Commodities 31,584 37,183 36,227 ------------------------------- Total 154,254 167,394 149,790 Investment banking 167,497 107,556 102,519 Asset management fees and investment income from managed funds: Asset management fees 8,215 14,239 13,580 Investment income from managed funds 10,452 7,428 6,854 ------------------------------- Total 18,667 21,667 20,434 Interest 91,315 81,467 71,420 ------------------------------- Total revenues $431,733 $378,084 $344,163 =============================== Other Data - ---------- Number of trading days 63 64 64 Average employees 2,013 2,001 1,916 Common shares outstanding 58,110 58,083 57,759 Weighted average shares: Basic 62,985 62,224 61,468 Diluted 68,979 68,112 67,422 Quarters ended --------------------- 3/31/2005 12/31/2004 --------------------- Revenues by Source - ------------------ Equities $110,292 $133,537 Fixed Income & Commodities 35,024 9,526 --------------------- Total 145,316 143,063 Investment banking 117,442 105,738 Asset management fees and investment income from managed funds: Asset management fees 14,909 12,472 Investment income from managed funds 6,375 14,682 --------------------- Total 21,284 27,154 Interest 59,851 49,318 --------------------- Total revenues $343,893 $325,273 ===================== Other Data - ---------- Number of trading days 61 64 Average employees 1,817 1,750 Common shares outstanding 58,090 57,289 Weighted average shares: Basic 60,570 58,112 Diluted 65,997 64,744 As of December 31, 2005, stockholders' equity amounted to $1.3 billion, resulting in book value of $22.14 per share. CONTACT: Jefferies Group, Inc. Joseph A. Schenk, 212-284-2338 -----END PRIVACY-ENHANCED MESSAGE-----