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): June 21, 2011
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 Identification |
520 Madison Ave., 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 June 21, 2011, we issued a press release announcing financial results for the quarter ended May 31, 2011. 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 | June 21, 2011 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: |
June 21, 2011 |
/s/ Roland T. Kelly |
|
Roland T. Kelly |
|||
Assistant Secretary |
INDEX TO EXHIBITS
Exhibit No. |
Description |
99 | June 21, 2011 press release. |
Exhibit 99
Jefferies Reports Quarterly Financial Results
NEW YORK--(BUSINESS WIRE)--June 21, 2011--Jefferies Group, Inc. (NYSE: JEF) today announced financial results for its fiscal second quarter and first half ended May 31, 2011.
Highlights for the three months ended May 31, 2011 (which reflect the firm’s $4.6 million charitable contribution to the relief efforts in Japan, as well as the $4.8 million in out-of-pocket costs incurred through May 31 in connection with the firm’s acquisition of Prudential Bache scheduled to close on July 1), versus the three months ended May 31, 2010:
Highlights for the six months ended May 31, 2011 versus the five months ended May 31, 2010:
"We are very pleased with these solid results, which reflect our continued momentum in investment banking, and the durability of our sales and trading platform, despite the challenging market environment that persisted throughout the quarter,” commented Richard B. Handler, Chairman and Chief Executive Officer of Jefferies. “While we have much more work to do, we are pleased with our team, our strategic position, our diversified business mix, and our integrated approach to delivering one firm for the benefit of every client."
A conference call with management discussion of these financial results will be held today, Tuesday, June 21, 2011, at 9:00 AM Eastern. Investors and securities industry professionals may access the management discussion by calling 877-710-9938 or 702-928-7183. A one-week replay of the call will also be available at 800-642-1687 or 706-645-9291 (conference ID # 72366780). A live audio webcast and delayed replay can also be accessed at Jefferies.com.
Jefferies Group, Inc. (NYSE: JEF), a global securities and investment banking firm, has served companies and investors for nearly 50 years.
JEFFERIES GROUP, INC. AND SUBSIDIARIES | ||||||||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||||||
(Amounts in Thousands, Except Per Share Amounts) | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended (14) |
Six Months
Ended |
Five Months
Ended (14) |
||||||||||||||||
May 31, 2011 | May 31, 2010 | May 31, 2011 | May 31, 2010 | |||||||||||||||
Revenues: | ||||||||||||||||||
Commissions | $ | 129,291 | $ | 146,001 | $ | 249,212 | $ | 228,956 | ||||||||||
Principal transactions | 175,316 | 153,986 | 465,468 | 246,642 | ||||||||||||||
Investment banking | 328,421 | 255,958 | 567,480 | 352,257 | ||||||||||||||
Asset management fees and | ||||||||||||||||||
investment income from managed funds | 10,547 | 13,929 | 34,415 | 11,018 | ||||||||||||||
Interest | 304,425 | 243,183 | 577,641 | 386,168 | ||||||||||||||
Other | 22,117 | 18,983 | 42,578 | 27,363 | ||||||||||||||
Total revenues | 970,117 | 832,040 | 1,936,794 | 1,252,404 | ||||||||||||||
Interest expense | 242,952 | 164,504 | 451,246 | 257,234 | ||||||||||||||
Net revenues | 727,165 | 667,536 | 1,485,548 | 995,170 | ||||||||||||||
Interest on mandatorily redeemable preferred interest of |
||||||||||||||||||
consolidated subsidiaries | 4,415 | 2,018 | 20,854 | 2,513 | ||||||||||||||
Net revenues, less mandatorily redeemable preferred |
||||||||||||||||||
interest | 722,750 | 665,518 | 1,464,694 | 992,657 | ||||||||||||||
Non-interest expenses: | ||||||||||||||||||
Compensation and benefits | 431,936 | 384,311 | 874,828 | 568,407 | ||||||||||||||
Floor brokerage and clearing fees | 31,384 | 35,509 | 59,517 | 54,089 | ||||||||||||||
Technology and communications | 49,850 | 41,932 | 93,525 | 68,054 | ||||||||||||||
Occupancy and equipment rental | 20,437 | 19,056 | 38,416 | 31,016 | ||||||||||||||
Business development | 22,457 | 15,216 | 42,395 | 24,985 | ||||||||||||||
Professional services | 16,099 | 11,284 | 29,375 | 21,694 | ||||||||||||||
Other | 20,103 | 14,530 | 33,223 | 27,818 | ||||||||||||||
Total non-interest expenses | 592,266 | 521,838 | 1,171,279 | 796,063 | ||||||||||||||
Earnings before income taxes | 130,484 | 143,680 | 293,415 | 196,594 | ||||||||||||||
Income tax expense | 45,784 | 56,189 | 106,670 | 76,403 | ||||||||||||||
Net earnings | 84,700 | 87,491 | 186,745 | 120,191 | ||||||||||||||
Net earnings to noncontrolling interests | 4,084 | 3,665 | 18,788 | 3,994 | ||||||||||||||
Net earnings to common shareholders | $ | 80,616 | $ | 83,826 | $ | 167,957 | $ | 116,197 | ||||||||||
Earnings per common share: | ||||||||||||||||||
Basic | $ | 0.36 | $ | 0.41 | $ | 0.78 | $ | 0.57 | ||||||||||
Diluted | $ | 0.36 | $ | 0.41 | $ | 0.78 | $ | 0.57 | ||||||||||
Weighted average common shares: | ||||||||||||||||||
Basic | 210,751 | 196,944 | 205,054 | 197,759 | ||||||||||||||
Diluted | 214,870 | 201,064 | 209,172 | 201,881 | ||||||||||||||
Effective tax rate | 35 | % | 39 | % | 36 | % | 39 | % | ||||||||||
Jefferies Group, Inc. And Subsidiaries | |||||||||||||||||||||||||
Selected Statistical Information | |||||||||||||||||||||||||
(Amounts in Thousands, Except Per Share Amounts) | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Quarters Ended (14) | |||||||||||||||||||||||||
5/31/2011 | 2/28/2011 | 11/30/2010 | 8/31/2010 | 5/31/2010 | 3/31/2010 | ||||||||||||||||||||
Statement of Earnings |
|||||||||||||||||||||||||
Net revenues, less mandatorily redeemable preferred |
|||||||||||||||||||||||||
interest | $ | 722,750 | $ | 741,944 | $ | 664,870 | $ | 519,806 | $ | 665,518 | $ | 578,007 | |||||||||||||
Non-interest expenses: | |||||||||||||||||||||||||
Compensation and benefits | 431,936 | 442,892 | 405,440 | 308,797 | 384,311 | 319,801 | |||||||||||||||||||
Non-compensation expenses | 160,330 | 136,121 | 135,852 | 134,511 | 137,527 | 135,750 | |||||||||||||||||||
Earnings before income taxes | 130,484 | 162,931 | 123,578 | 76,498 | 143,680 | 122,456 | |||||||||||||||||||
Income tax expense | 45,784 | 60,886 | 46,126 | 33,873 | 56,189 | 46,369 | |||||||||||||||||||
Net earnings | 84,700 | 102,045 | 77,452 | 42,625 | 87,491 | 76,087 | |||||||||||||||||||
Net earnings (loss) to noncontrolling interests | 4,084 | 14,704 | 14,735 | (2,129 | ) | 3,665 | 3,943 | ||||||||||||||||||
Net earnings to common shareholders | $ | 80,616 | $ | 87,341 | $ | 62,717 | $ | 44,754 | $ | 83,826 | $ | 72,144 | |||||||||||||
Diluted earnings per common share | $ | 0.36 | $ | 0.42 | $ | 0.31 | $ | 0.22 | $ | 0.41 | $ | 0.35 | |||||||||||||
Financial Ratios |
|||||||||||||||||||||||||
Pretax operating margin | 18 | % | 22 | % | 19 | % | 15 | % | 22 | % | 21 | % | |||||||||||||
Compensation and benefits / net revenues | 59 | % | 58 | % | 60 | % | 60 | % | 58 | % | 55 | % | |||||||||||||
Effective tax rate | 35 | % | 37 | % | 37 | % | 44 | % | 39 | % | 38 | % | |||||||||||||
Jefferies Group, Inc. And Subsidiaries | |||||||||||||||||||||||||
Selected Statistical Information | |||||||||||||||||||||||||
(Amounts in Thousands, Except Per Share Amounts) | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Quarters Ended (14) | |||||||||||||||||||||||||
5/31/2011 | 2/28/2011 | 11/30/2010 | 8/31/2010 | 5/31/2010 | 3/31/2010 | ||||||||||||||||||||
Revenues by Source |
|||||||||||||||||||||||||
Equities | $ |
165,076 |
|
$ |
177,358 |
|
$ | 155,071 | $ | 109,280 | $ |
179,505 |
|
$ |
174,299 |
|
|||||||||
Fixed Income | 223,121 | 318,097 | 227,876 | 161,010 | 218,144 | 200,820 | |||||||||||||||||||
Total | 388,197 | 495,455 | 382,947 | 270,290 | 397,649 | 375,119 | |||||||||||||||||||
Equity | 52,039 | 49,684 | 48,369 | 19,151 | 73,677 | 34,217 | |||||||||||||||||||
Debt | 131,806 | 62,967 | 86,814 | 77,564 | 109,767 | 101,846 | |||||||||||||||||||
Capital markets | 183,845 | 112,651 | 135,183 | 96,715 | 183,444 | 136,063 | |||||||||||||||||||
Advisory | 144,576 | 126,408 | 156,701 | 149,478 | 72,514 | 62,274 | |||||||||||||||||||
Investment banking | 328,421 | 239,059 | 291,884 | 246,193 | 255,958 | 198,337 | |||||||||||||||||||
Asset management fees and investment income / (loss) |
|||||||||||||||||||||||||
from managed funds: | |||||||||||||||||||||||||
Asset management fees | 5,019 | 16,117 | 6,083 | 3,996 | 7,165 | 4,017 | |||||||||||||||||||
Investment (loss) / income from managed funds | 5,528 | 7,751 | (1,102 | ) | (3,210 | ) | 6,764 | 2,582 | |||||||||||||||||
Total | 10,547 | 23,868 | 4,981 | 786 | 13,929 | 6,599 | |||||||||||||||||||
Net revenues | 727,165 | 758,382 | 679,812 | 517,269 | 667,536 | 580,055 | |||||||||||||||||||
Interest on mandatorily redeemable preferred interest |
|||||||||||||||||||||||||
of consolidated subsidiaries |
4,415 | 16,438 | 14,942 | (2,537 | ) | 2,018 | 2,048 | ||||||||||||||||||
Net Revenues, less mandatorily redeemable |
|||||||||||||||||||||||||
preferred interest |
$ | 722,750 | $ | 741,944 | $ | 664,870 | $ | 519,806 | $ | 665,518 | $ | 578,007 | |||||||||||||
Other Data |
|||||||||||||||||||||||||
Number of trading days | 64 | 61 | 63 | 65 | 64 | 61 | |||||||||||||||||||
Full time employees (end of period) | 3,222 | 3,082 | 3,084 | 2,971 | 2,821 | 2,729 | |||||||||||||||||||
Common shares outstanding | 202,154 | 177,068 | 171,694 | 171,241 | 171,591 | 171,845 | |||||||||||||||||||
Weighted average common shares: | |||||||||||||||||||||||||
Basic | 210,751 | 199,141 | 194,901 | 195,601 | 196,944 | 198,507 | |||||||||||||||||||
Diluted | 214,870 | 203,257 | 199,017 | 195,612 | 201,064 | 202,630 | |||||||||||||||||||
JEFFERIES GROUP, INC. AND SUBSIDIARIES | |||||||
COMMON SHARES OUTSTANDING AND COMMON SHARES FOR BASIC AND DILUTED EPS CALCULATIONS | |||||||
(Amounts in Thousands) | |||||||
(Unaudited) | |||||||
May 31, 2011 | |||||||
Common shares outstanding | 202,154 | ||||||
Outstanding restricted stock units | 25,566 | ||||||
Adjusted shares outstanding | 227,720 | ||||||
Note - All share information below for EPS purposes is based upon weighted-average balances for the applicable period. |
|||||||
Three months ended May 31, 2011 |
Six months ended May 31, 2011 |
||||||
Shares outstanding (weighted average) | (1) | 191,015 | 183,619 | ||||
Unearned restricted stock | (2) | (5,922 | ) | (5,793 | ) | ||
Earned restricted stock units | (3) | 22,815 | 23,533 | ||||
Other issuable shares | (4) | 2,843 | 3,695 | ||||
Common Shares for Basic EPS | 210,751 | 205,054 | |||||
Stock options | (5) | 11 | 11 | ||||
Mandatorily redeemable convertible preferred stock | (6) | 4,108 | 4,107 | ||||
Convertible debt | (7) | - | - | ||||
Common Shares for Diluted EPS | 214,870 | 209,172 | |||||
(1) | Shares outstanding represents shares issued less shares repurchased in treasury stock. Shares issued includes public and private offerings, earned and unearned restricted stock, distributions related to restricted stock units, deferred compensation plans, employee stock purchase plan and stock option exercises. Shares issued does not include undistributed earned and unearned restricted stock units. | |
(2) | As certain restricted stock is contingent upon a future service condition, unearned shares are removed from shares outstanding in the calculation of basic EPS as Jefferies' obligation to issue these shares remains contingent. | |
(3) | As earned restricted stock units are no longer contingent upon a future service condition and are issuable upon a certain date in the future, earned restricted stock units are added to shares outstanding in the calculation of basic EPS. | |
(4) | Other shares issuable include shares issuable to settle previously granted restricted stock awards and shares issuable under certain deferred compensation plans. | |
(5) | Calculated under the treasury stock method. The treasury stock method assumes the issuance of only a net incremental number of shares as proceeds from issuance are assumed to be used to repurchase shares at the average stock price for the period. | |
(6) | Calculated under the if-converted method. The if-converted method assumes the conversion of convertible securities at the beginning of the period. | |
(7) | Represents the potential common shares issuable under the conversion spread (the excess conversion value over the accreted debt value) based on the average stock price for the period. | |
Jefferies Group, Inc. And Subsidiaries | ||||||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||||||
(Amounts in Thousands, Except Per Share Amounts) | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Quarters Ended (14) | ||||||||||||||||||||||||
5/31/2011 | 2/28/2011 | 11/30/2010 | 8/31/2010 | 5/31/2010 | 3/31/2010 | |||||||||||||||||||
Net earnings to common shareholders | $ | 80,616 | $ | 87,341 | $ | 62,717 | $ | 44,754 | $ | 83,826 | $ | 72,144 | ||||||||||||
Basic EPS (1) | $ | 0.36 | $ | 0.42 | $ | 0.31 | $ | 0.22 | $ | 0.41 | $ | 0.35 | ||||||||||||
Diluted EPS (1) | $ | 0.36 | $ | 0.42 | $ | 0.31 | $ | 0.22 | $ | 0.41 | $ | 0.35 | ||||||||||||
Effective tax rate | 35 | % | 37 | % | 37 | % | 44 | % | 39 | % | 38 | % | ||||||||||||
Total assets (in millions) (2) | $ | 40,967 | $ | 40,428 | $ | 36,727 | $ | 32,672 | $ | 33,145 | $ | 34,023 | ||||||||||||
Average total assets for quarter (in millions) (2) | $ | 47,207 | $ | 42,598 | $ | 40,184 | $ | 36,475 | $ | 36,329 | $ | 35,976 | ||||||||||||
Cash and cash equivalents (in millions) | $ | 2,499 | $ | 1,164 | $ | 2,189 | $ | 2,090 | $ | 994 | $ | 1,025 | ||||||||||||
Level 3 assets (in millions) (2) (3) | $ | 718 | $ | 612 | $ | 572 | $ | 486 | $ | 503 | $ | 648 | ||||||||||||
Level 3 assets (in millions) with economic exposure (2)(4) | $ | 483 | $ | 402 | $ | 368 | $ | 370 | $ | 360 | $ | 442 | ||||||||||||
Level 3 assets - % total assets (2) | 1.8 | % | 1.5 | % | 1.6 | % | 1.5 | % | 1.5 | % | 1.9 | % | ||||||||||||
Level 3 assets - % total financial instruments owned (2) | 4.0 | % | 3.4 | % | 3.6 | % | 3.4 | % | 3.7 | % | 5.0 | % | ||||||||||||
Level 3 assets with economic exposure - % common |
||||||||||||||||||||||||
stockholders' equity (2) |
15.3 | % | 15.6 | % | 14.9 | % | 15.9 | % | 15.8 | % | 19.2 | % | ||||||||||||
Total common stockholders' equity (in millions) | $ | 3,165 | $ | 2,578 | $ | 2,478 | $ | 2,326 | $ | 2,275 | $ | 2,305 | ||||||||||||
Adjusted common stockholders' equity (in millions) (5) | $ | 3,347 | $ | 2,737 | $ | 2,639 | $ | 2,469 | $ | 2,416 | $ | 2,435 | ||||||||||||
Common book value per share (6) | $ | 15.66 | $ | 14.56 | $ | 14.43 | $ | 13.58 | $ | 13.26 | $ | 13.41 | ||||||||||||
Adjusted book value per share (7) | $ | 14.70 | $ | 13.35 | $ | 13.17 | $ | 12.36 | $ | 12.06 | $ | 12.11 | ||||||||||||
Tangible common book value per share (8) | $ | 13.83 | $ | 12.47 | $ | 12.29 | $ | 11.44 | $ | 11.12 | $ | 11.27 | ||||||||||||
Adjusted tangible book value per share (7) | $ | 13.07 | $ | 11.55 | $ | 11.33 | $ | 10.52 | $ | 10.23 | $ | 10.28 | ||||||||||||
Total capitalization (in millions) (9) | $ | 8,223 | $ | 7,164 | $ | 7,031 | $ | 6,344 | $ | 5,749 | $ | 5,808 | ||||||||||||
Leverage ratio (2) (10) | 11.7 | 13.8 | 13.1 | 12.4 | 12.8 | 12.9 | ||||||||||||||||||
Adjusted leverage ratio (2) (11) | 12.5 | 14.4 | 13.2 | 12.2 | 12.3 | 11.3 | ||||||||||||||||||
Average firmwide VaR (in millions) (12) | $ | 12.68 | $ | 10.51 | 6.45 | 8.64 | 8.25 | 11.21 | ||||||||||||||||
Common shares outstanding | 202,154 | 177,068 | 171,694 | 171,241 | 171,591 | 171,845 | ||||||||||||||||||
Adjusted shares outstanding (13) | 227,720 | 205,046 | 200,429 | 199,867 | 200,286 | 201,101 | ||||||||||||||||||
Share issued during quarter | 25,376 | 7,084 | 1,888 | 372 | 1,659 | 8,682 | ||||||||||||||||||
Shares purchased during the quarter | 158 | 1,482 | 1,082 | 525 | 1,620 | 2,474 | ||||||||||||||||||
Number of employees | 3,222 | 3,082 | 3,084 | 2,971 | 2,821 | 2,729 | ||||||||||||||||||
Footnotes (14) | ||||||||||||||||||||||
(1) | The following details the calculation of basic and diluted earnings per share as included in our quarterly and annual reports. | |||||||||||||||||||||
Quarters Ended | ||||||||||||||||||||||
5/31/2011 | 2/28/2011 | 11/30/2010 | 8/31/2010 | 5/31/2010 | 3/31/2010 | |||||||||||||||||
Earnings for basic earnings per common share: | ||||||||||||||||||||||
Net earnings | $ | 84,700 | $ | 102,045 | $ | 77,452 | $ | 42,625 | $ | 87,491 | $ | 76,087 | ||||||||||
Net earnings (loss) to noncontrolling interests | 4,084 | 14,704 | 14,735 | (2,129 | ) | 3,665 | 3,943 | |||||||||||||||
Net earnings to common shareholders | 80,616 | 87,341 | 62,717 | 44,754 | 83,826 | 72,144 | ||||||||||||||||
Less: Allocation of earnings to participating securities (A) | 3,756 | 3,925 | 2,650 | 1,674 | 2,842 | 2,108 | ||||||||||||||||
Net earnings available to common shareholders | $ | 76,860 | $ | 83,416 | $ | 60,067 | $ | 43,080 | $ | 80,984 | $ | 70,036 | ||||||||||
Earnings for diluted earnings per common share: | ||||||||||||||||||||||
Net earnings | $ | 84,700 | $ | 102,045 | $ | 77,452 | $ | 42,625 | $ | 87,491 | $ | 76,087 | ||||||||||
Net earnings (loss) to noncontrolling interests | 4,084 | 14,704 | 14,735 | (2,129 | ) | 3,665 | 3,943 | |||||||||||||||
Net earnings to common shareholders | 80,616 | 87,341 | 62,717 | 44,754 | 83,826 | 72,144 | ||||||||||||||||
Add: Convertible preferred stock dividends (B) | 1,016 | 1,016 | 1,016 | - | 1,016 | 1,016 | ||||||||||||||||
Less: Allocation of earnings to participating securities (A) | 3,748 | 3,907 | 2,653 | 1,674 | 2,830 | 2,104 | ||||||||||||||||
Net earnings available to common shareholders | $ | 77,884 | $ | 84,450 | $ | 61,080 | $ | 43,080 | $ | 82,012 | $ | 71,056 | ||||||||||
Weighted Average Common Shares: | ||||||||||||||||||||||
Basic | 210,751 | 199,141 | 194,901 | 195,601 | 196,944 | 198,507 | ||||||||||||||||
Diluted | 214,870 | 203,257 | 199,017 | 195,612 | 201,064 | 202,630 | ||||||||||||||||
Earnings per common share: | ||||||||||||||||||||||
Basic | $ | 0.36 | $ | 0.42 | $ | 0.31 | $ | 0.22 | $ | 0.41 | $ | 0.35 | ||||||||||
Diluted | $ | 0.36 | $ | 0.42 | $ | 0.31 | $ | 0.22 | $ | 0.41 | $ | 0.35 |
(A) Represents dividends declared during the period on participating securities plus an allocation of undistributed earnings to participating securities. Losses are not allocated to participating securities. Participating securities represent restricted stock and restricted stock units for which requisite service has not yet been rendered and amounted to weighted average shares of 10,260,000, 9,403,000, 8,599,000, 7,661,000, 6,780,000 and 5,815,000 for the three months ended May 31, 2011, February 28, 2011, November 30, 2010, August 31, 2010, May 31, 2010 and March 31, 2010, respectively. Dividends declared on participating securities during the three months ended May 31, 2011, February 28, 2011, November, 30, 2010, August 31, 2010, May 31, 2010 and March 31, 2010 amounted to approximately $794,000, $686,000, $632,000, $559,000, $568,000 and $494,000, respectively. Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed. | ||
(B) The conversion of our mandatorily redeemable convertible preferred stock was considered anti-dilutive for our three-months ended August 31, 2010. | ||
(2) | This amount represents a preliminary estimate as of the date of this earnings release and may be revised in our Quarterly Report on Form 10-Q for the period ended May 31, 2011. | |
(3) | Level 3 assets represent those financial instruments classified as such under ASC 820, accounted for at fair value and included within Financial instruments owned. Level 3 assets for which we bear no economic exposure were $235.2 million at May 31, 2011, which is reflective of the portion of our Level 3 assets that are financed by nonrecourse secured financing or attributable to third party or employee noncontrolling interests in certain consolidated entities. | |
(4) | Level 3 assets with economic exposure represents Level 3 assets adjusted for Level 3 assets that are either financed by nonrecourse secured financings or attributable to third party or employee noncontrolling interests in certain consolidated subsidiaries. | |
(5) | Adjusted common stockholders’ equity (non-GAAP financial measure) represents total common stockholders’ equity plus the unrecognized compensation cost related to nonvested share based awards, i.e. granted restricted stock and restricted stock units which contain future service requirements. As of May 31, 2011, unrecognized compensation cost related to nonvested share based awards was $181,313. We believe that adjusted common stockholders’ equity is a meaningful measure as it reflects the current capital outstanding to stockholders, including employee common shareholders, that would be required to be paid out in liquidation. | |
(6) | Common book value per share equals total common stockholders' equity divided by common shares outstanding. | |
(7) | Adjusted book value per share (non-GAAP financial measure) equals adjusted common stockholders’ equity divided by adjusted shares outstanding. Adjusted tangible book value per share (non-GAAP financial measure) equals adjusted common stockholders’ equity less goodwill and identifiable intangible assets divided by adjusted common shares outstanding. As of May 31, 2011, goodwill and identifiable intangible assets equals $369,844. Previous quarters have been conformed to reflect this calculation. We believe these are meaningful measures as investors often incorporate the dilutive effects of outstanding capital in their valuations. | |
(8) | Tangible common book value per share (non-GAAP financial measure) equals tangible common stockholders' equity divided by common shares outstanding. As of May 31, 2011, tangible common stockholders' equity equals total common stockholders' equity of $3,165,281 less goodwill and identifiable intangible assets of $369,844. We believe that tangible common book value per share and tangible common stockholders' equity is meaningful as a valuation of financial companies are often measured as a multiple of tangible common stockholders' equity making these ratios meaningful for investors. | |
(9) | Total capitalization includes our long-term debt, mandatorily redeemable convertible preferred stock, mandatorily redeemable preferred interest of consolidated subsidiaries and total stockholders' equity. Long-term debt included in total capitalization at May 31, 2011 is reduced by the amount of debt maturing in less than one year. | |
(10) | Leverage ratio equals total assets divided by total stockholders' equity. | |
(11) | Adjusted leverage ratio (non-GAAP financial measure) equals adjusted assets divided by tangible stockholders' equity. Adjusted assets (non-GAAP financial measure) equals total assets less securities borrowed, securities purchased under agreements to resell, cash and securities segregated, goodwill and indentifiable intangibles plus financial instruments sold, not yet purchased (net of derivative liabilities). As of May 31, 2011, adjusted assets were $39,144.2 million. We believe that adjusted assets is a meaningful measure as it excludes certain assets that are considered of lower risk as they are generally self-financed by customer liabilities through our securities lending activities. | |
(12) | VaR is the potential loss in value of our trading positions due to adverse market movements over a one-day time horizon with a 95% confidence level. For a further discussion of the calculation of VaR, see "Market Risk" in Part II, Item 7A "Quantitative and Qualitative Disclosures About Market Risk" in our Transition Report on Form 10-K for the eleven months ended November 30, 2010. | |
(13) | Adjusted shares outstanding equals common shares outstanding plus outstanding restricted stock units. | |
(14) | As indicated in our Transition Report on Form 10-K for the eleven months ended November 30, 2010, we made correcting adjustments to our historical financial statements for the 2010 quarters. For additional information on these adjustments, see Note 1, Organization and Basis of Presentation, and Note 23, Selected Quarterly Financial Data (Unaudited), of the Consolidated Financial Statements of our Transition Report on Form 10-K for the eleven months ended November 30, 2010. |
CONTACT:
Jefferies Group, Inc.
Peregrine C. Broadbent, 212-284-2338
Chief
Financial Officer