-----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, H5H7Idyh2F+DxxtBmBkMdD/YDLk536iVQXlhekqFA8OzNb9fDFX9SpvTI9pfVhXd LamLl0VkpUspxS/yJXXt4A== 0001157523-07-003649.txt : 20070417 0001157523-07-003649.hdr.sgml : 20070417 20070417093941 ACCESSION NUMBER: 0001157523-07-003649 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070417 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070417 DATE AS OF CHANGE: 20070417 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: 07769654 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 a5378649.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): April 17, 2007 Jefferies Group, Inc. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 1-14947 95-4719745 - -------------------------------------------------------------------------------- (State or other jurisdiction of (Commission File Number) (IRS Employer incorporation) 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 April 17, 2007, Jefferies Group, Inc. issued a press release announcing financial results for the quarter ended March 31, 2007. 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 April 17, 2007 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: April 17, 2007 /s/ Roland T. Kelly ----------------------------- Roland T. Kelly Assistant Secretary INDEX TO EXHIBITS Exhibit No. Description 99 April 17, 2007 press release issued by Jefferies Group, Inc. EX-99 2 a5378649-ex99.txt EXHIBIT 99 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 -----END PRIVACY-ENHANCED MESSAGE-----