-----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, Qpp2PqnLk3FeDJUXxCIlmIYQm7LqsiCkUSaI5VBV1RGbUOGuz4NHY9S75miTNMSE mCsr/M1+IcqwDwNGugX9ng== 0001157523-07-009849.txt : 20071016 0001157523-07-009849.hdr.sgml : 20071016 20071016095053 ACCESSION NUMBER: 0001157523-07-009849 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20071016 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20071016 DATE AS OF CHANGE: 20071016 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: 071173255 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 a5518756.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 16, 2007 Jefferies Group, Inc. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 1-14947 95-4719745 - -------------------------------------------------------------------------------- (State or other (Commission File Number) (IRS Employer jurisdiction of Identification No.) incorporation) 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 16, 2007, we issued a press release announcing financial results for the quarter ended September 30, 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 October 16, 2007 press release. 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 16, 2007 /s/ Roland T. Kelly ------------------------ Roland T. Kelly Assistant Secretary INDEX TO EXHIBITS Exhibit No. Description 99 October 16, 2007 press release. EX-99.1 2 a5518756ex99-1.txt EXHIBIT 99.1 Exhibit 99.1 Jefferies Announces Third Quarter Results Net revenues of $334 million Net earnings of $39 million Earnings per share of $0.26 Investment banking of $190 million NEW YORK--(BUSINESS WIRE)--Oct. 16, 2007--Jefferies Group, Inc. (NYSE: JEF) today announced financial results for the third quarter ended September 30, 2007. Highlights for the third quarter ended September 30, 2007: -- Net revenues were down 2% to $334.4 million, versus $340.6 million for the third quarter of 2006. -- Net earnings were down 16% to $38.8 million, compared to $45.9 million for the third quarter of 2006. -- Earnings per share (diluted) were down 19% to $0.26, compared to $0.32 for the third quarter of 2006. -- Investment banking revenues were up 31% to $189.8 million, compared to $144.8 million for the third quarter of 2006. "We are pleased that the challenging third quarter is behind us," commented Richard B. Handler, Chairman and Chief Executive Officer of Jefferies. "The fact that our net revenues and net earnings for the quarter were each merely $7 million below last year's comparable period results is a testament to the hard work of our 2,513 employee partners, our diversified business model, our conservative balance sheet and the loyalty of our client base." Brian P. Friedman, Executive Committee Chairman, added, "Our investment banking revenues totaled $190 million, which represents our second best quarterly total ever. We are pleased with these results given the difficult market environment which made the normally slow summer months even more challenging." Conference Call A conference call with management discussion of financial results for the third quarter ended September 30, 2007 will be held October 16th at 9:00 AM (Eastern) and can be accessed at 706-634-9290. A one-week replay of the call will also be available at 402-977-9140 (reservation code: 21352607). A live audio webcast and delayed replay can be accessed at www.jefferies.com. Questions for consideration by management can be submitted by 8:30 AM Eastern on October 16 through the "Contact Us" function at www.jefferies.com or by calling 203-708-5975. 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 International Limited is a UK-incorporated, wholly owned subsidiary of Jefferies Group, Inc. 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, 2007 2006 2007 2006 --------- ---------- ----------- ----------- Revenues: Commissions $ 95,652 $ 67,953 $ 255,778 $ 208,589 Principal transactions 47,325 98,984 320,804 353,088 Investment banking 189,780 144,763 582,988 395,429 Asset management fees and investment income from managed funds (6,283) 16,783 29,586 80,132 Interest 334,056 132,424 845,957 385,035 Other 6,434 7,757 21,480 27,587 --------- --------- ----------- ----------- Total revenues 666,964 468,664 2,056,593 1,449,860 Interest expense 332,540 128,054 837,900 366,493 --------- --------- ----------- ----------- Revenues, net of interest expense 334,424 340,610 1,218,693 1,083,367 --------- --------- ----------- ----------- Non-interest expenses: Compensation and benefits 183,503 184,421 662,771 593,830 Floor brokerage and clearing fees 19,155 15,496 50,264 46,363 Technology and communications 26,120 21,490 71,980 59,863 Occupancy and equipment rental 20,280 15,819 56,315 44,390 Business development 13,791 12,653 38,980 36,057 Other 16,254 14,394 51,178 48,405 --------- --------- ----------- ----------- Total non-interest expenses 279,103 264,273 931,488 828,908 --------- --------- ----------- ----------- Earnings before income taxes, minority interest and cumulative effect of change in accounting principle, net 55,321 76,337 287,205 254,459 Income taxes 21,608 29,734 107,312 99,523 --------- --------- ----------- ----------- Earnings before minority interest and cumulative effect of change in accounting principle, net 33,713 46,603 179,893 154,936 Minority interest in earnings of consolidated subsidiaries, net (5,060) 663 11,026 6,575 --------- --------- ----------- ----------- Earnings before cumulative effect of change in accounting principle, net 38,773 45,940 168,867 148,361 Cumulative effect of change in accounting principle, net - - - 1,606 --------- --------- ----------- ----------- Net earnings $ 38,773 $ 45,940 $ 168,867 $ 149,967 ========= ========= =========== =========== Earnings per share: Basic- Earnings before cumulative effect of change in accounting principle, net $ 0.27 $ 0.34 $ 1.19 $ 1.12 Cumulative effect of change in accounting principle, net - - - 0.01 --------- --------- ----------- ----------- Net Earnings $ 0.27 $ 0.34 $ 1.19 $ 1.13 ========= ========= =========== =========== Diluted- Earnings before cumulative effect of change in accounting principle, net $ 0.26 $ 0.32 $ 1.12 $ 1.03 Cumulative effect of change in accounting principle, net - - - 0.01 --------- --------- ----------- ----------- Net Earnings $ 0.26 $ 0.32 $ 1.12 $ 1.04 ========= ========= =========== =========== Weighted average shares: Basic 142,822 135,140 141,905 133,048 Diluted 155,480 148,908 153,911 146,502 Effective Tax Rate 39.1% 39.0% 37.4% 39.1% JEFFERIES GROUP, INC. AND SUBSIDIARIES SELECTED STATISTICAL INFORMATION (Amounts in Thousands, Except Per Share Amounts) (Unaudited) Quarters ended ------------------------------------ 9/30/2007 6/30/2007 3/31/2007 ------------------------------------ Statement of Earnings - --------------------------------- Revenues, net of interest expense $ 334,424 $ 465,460 $ 418,809 Non-interest expenses: Compensation and benefits 183,503 251,602 227,666 Non-personnel expenses 95,600 85,467 87,650 ------------------------------------ Earnings before income taxes, minority interest and cumulative effect of change in accounting principle, net 55,321 128,391 103,493 Income taxes 21,608 45,046 40,658 ------------------------------------ Earnings before minority interest and cumulative effect of change in accounting principle, net 33,713 83,345 62,835 Minority interest in earnings of consolidated subsidiaries, net (5,060) 15,510 576 ------------------------------------ Net earnings $ 38,773 $ 67,835 $ 62,259 ==================================== Diluted earnings per share $ 0.26 $ 0.45 $ 0.42 ==================================== Financial Ratios - --------------------------------- Pretax operating margin 16.5% 27.6% 24.7% Compensation and benefits / net revenues 54.9% 54.1% 54.4% Effective tax rate 39.1% 35.1% 39.3% 12/31/2006 9/30/2006 6/30/2006 ------------------------------------- Statement of Earnings - --------------------------------- Revenues, net of interest expense $ 374,235 $ 340,610 $ 327,343 Non-interest expenses: Compensation and benefits 197,425 184,421 176,675 Non-personnel expenses 82,615 79,852 69,953 ------------------------- ----------- Earnings before income taxes, minority interest and cumulative effect of change in accounting principle, net 94,195 76,337 80,715 Income taxes 38,018 29,734 31,357 ------------------------- ----------- Earnings before minority interest and cumulative effect of change in accounting principle, net 56,177 46,603 49,358 Minority interest in earnings of consolidated subsidiaries, net 394 663 3,778 ------------------------------------- Net earnings $ 55,783 $ 45,940 $ 45,580 ===================================== Diluted earnings per share $ 0.38 $ 0.32 $ 0.32 ===================================== Financial Ratios - --------------------------------- Pretax operating margin 25.2% 22.4% 24.7% Compensation and benefits / net revenues 52.8% 54.1% 54.0% Effective tax rate 40.4% 39.0% 38.8% JEFFERIES GROUP, INC. AND SUBSIDIARIES SELECTED STATISTICAL INFORMATION (Amounts in Thousands, Except Per Share Amounts) (Unaudited) Quarters ended --------------------------------- 9/30/2007 6/30/2007 3/31/2007 --------------------------------- Revenues by Source - ------------------------------------ Equities $ 140,296 $ 144,563 $ 173,057 Fixed Income & Commodities Fixed Income (excluding high yield) and Commodities 16,502 40,443 46,128 High Yield (7,387) 34,123 10,337 --------------------------------- Fixed Income & Commodities Total 9,115 74,566 56,465 --------------------------------- --------------------------------- Total 149,411 219,129 229,522 Investment banking 189,780 223,093 170,115 Asset management fees and investment income from managed funds: Asset management fees 5,369 7,294 9,451 Investment income from managed funds (11,652) 6,090 13,034 --------------------------------- Total (6,283) 13,384 22,485 Interest 334,056 310,739 201,162 --------------------------------- Total revenues $ 666,964 $ 766,345 $ 623,284 ================================= Other Data - ------------------------------------ Number of trading days 63 63 61 Average employees 2,472 2,319 2,265 Common shares outstanding 125,657 125,740 124,238 Weighted average shares: Basic 142,822 142,092 140,897 Diluted 155,480 154,301 152,058 12/31/2006 9/30/2006 6/30/2006 ---------------------------------- Revenues by Source - ------------------------------------ Equities $ 151,974 $ 112,635 $ 101,173 Fixed Income & Commodities Fixed Income (excluding high yield) and Commodities 32,964 50,871 28,227 High Yield 9,978 11,188 43,409 ---------------------------------- Fixed Income & Commodities Total 42,942 62,059 71,636 ---------------------------------- ---------------------------------- Total 194,916 174,694 172,809 Investment banking 145,167 144,763 122,932 Asset management fees and investment income from managed funds: Asset management fees 14,190 6,345 8,918 Investment income from managed funds 15,228 10,438 13,609 ---------------------------------- Total 29,418 16,783 22,527 Interest 143,847 132,424 138,851 ---------------------------------- Total revenues $ 513,348 $ 468,664 $ 457,119 ================================== Other Data - ------------------------------------ Number of trading days 63 63 63 Average employees 2,239 2,212 2,078 Common shares outstanding 119,547 118,876 118,540 Weighted average shares: Basic 136,438 135,140 133,621 Diluted 150,599 148,908 147,605 As of September 30, 2007, stockholders' equity amounted to $1.8 billion, resulting in book value of $14.58 per share. CONTACT: Jefferies Group, Inc. Joseph A. Schenk, CFO, 212-284-2338 -----END PRIVACY-ENHANCED MESSAGE-----