EX-99 4 f03-12_178kexh992.txt EXHIBIT 99.2 SELECTED STATISTICAL INFORMATION LEHMAN BROTHERS HOLDINGS INC. EXHIBIT 99.2 SELECTED STATISTICAL INFORMATION (Preliminary and Unaudited) (Dollars in millions, except per share data)
Twelve Months Ended Quarters Ended --------------------- ----------------------------------------------------- 2003 2002 11/30/03 8/31/03 5/31/03 2/28/03 11/30/02 ---------- ---------- ---------- --------- --------- --------- --------- Income Statement Net Revenues $8,647 $6,155 $2,298 $2,347 $2,291 $1,711 $1,539 Non-Interest Expenses: Compensation and Benefits 4,318 3,139 1,103 1,174 1,168 873 785 Nonpersonnel Expenses 1,716 1,517 473 424 418 401 400 September 11, 2001 Related Recoveries, Net - (108) - - - - (108) Other Real Estate Reconfiguration Costs 77 128 - - 77 - 128 Regulatory Settlement - 80 - - - - 80 Net Income (a) 1,699 975 481 480 437 301 187 Net Income Applicable to Common Stock 1,649 906 464 469 426 290 176 Earnings per Common Share (b) Basic $6.71 $3.69 $1.82 $1.92 $1.76 $1.20 $0.72 Diluted $6.35 $3.47 $1.71 $1.81 $1.67 $1.15 $0.69 Financial Ratios (%) Return on Common Stockholders' Equity (annualized) (c) 18.2% 11.2% 18.9% 20.7% 19.6% 13.9% 8.6% Return on Tangible Common Stockholders' Equity (annualized) (d) 19.2% 11.5% 20.6% 21.2% 20.1% 14.3% 8.8% Pretax Margin (e) 29.3% 22.7% 31.4% 31.9% 27.4% 25.6% 16.5% Compensation and Benefits/Net Revenues 49.9% 51.0% 48.0% 50.0% 51.0% 51.0% 51.0% Effective Tax Rate (f) 30.2% 26.3% 30.5% 33.4% 27.5% 28.0% 20.7% Financial Condition Total Assets $314,000 $291,638 $302,410 $268,293 $260,336 Net Assets (g) 168,000 161,458 164,099 149,428 143,291 Long-Term Debt 43,521 41,693 43,530 41,247 38,678 Trust Preferred Securities Subject to Mandatory Redemption 1,310 1,010 1,010 710 710 Common Stockholders' Equity 12,129 9,231 8,935 8,457 8,242 Total Stockholders' Equity 13,174 10,276 9,635 9,157 8,942 Total Stockholders' Equity plus Trust Preferred Securities Subject to Mandatory Redemption (h) 14,484 11,286 10,645 9,867 9,652 Tangible Equity Capital (i) 10,874 11,040 10,410 9,631 9,439 Total Capital (j) 58,005 52,979 54,175 51,114 48,330 Total Leverage (k) 23.8x 28.4x 31.4x 29.3x 29.1x Net Leverage (l) 15.5x 14.6x 15.8x 15.5x 15.2x Book Value per Common Share (m) 44.17 37.95 36.77 35.03 34.15 Other Data (#s) Employees 16,188 14,497 13,247 12,083 12,343 Assets Under Management ($ in billions) $115.8 $42.5 $38.7 $39.6 $8.6 Common Stock Outstanding (in millions) 266.7 239.2 242.4 241.5 231.1 Weighted Average Shares (in millions) Basic 245.7 245.4 254.7 243.8 242.3 241.8 243.9 Diluted 259.9 261.2 271.2 259.5 255.8 253.0 255.1
(a) For the year ended November 30, 2003 and the quarter ended May 31, 2003 net income includes a $77 million pre-tax charge ($45 million after tax) related to certain of the Company's real estate. For the year and quarter ended November 30, 2002 net income includes a $108 million pre-tax gain ($60 million after tax) from September 11th related recoveries, net, a $128 million pre-tax charge ($82 million after tax) related to the reconfiguration of certain of the Company's global real estate and an $80 million pre-tax charge ($56 million after tax) related to the Company's regulatory settlement. (b) For the year ended November 30, 2003 and the quarter ended May 31, 2003 basic EPS was reduced by $0.18 and $0.19, respectively and diluted EPS was reduced by $0.17 for both periods, as a result of the real estate charge. For the year and quarter ended November 30, 2002 basic EPS was reduced by $0.32, and diluted EPS was reduced by $0.30 and $0.31, respectively, as a result of the real estate charge, September 11th related recoveries, net and the regulatory settlement. (c) For the year ended November 30, 2003 and the quarter ended May 31, 2003, the Company's return on common equity was reduced by 0.5% and 2.1%, respectively, as a result of the real estate charge. For the year and quarter ended November 30, 2002, the Company's return on common equity was reduced by 1.0% and 3.7%, respectively, as a result of the real estate charge, September 11th related recoveries, net and the regulatory settlement. (d) Tangible common stockholders' equity equals total common stockholders' equity less goodwill and identifiable intangible assets. (See reconciliation attached). Management believes that tangible common stockholders' equity is a meaningful measure because it reflects the common stockholders' equity deployed in the firm's businesses. Annualized return on average tangible common stockholders' equity is computed by dividing annualized net income applicable to common stock for the period by average tangible common stockholders' equity. For the year ended November 30, 2003 and the quarter ended May 31, 2003, the Company's return on tangible common equity was reduced by 0.5% and 2.2%, respectively, as a result of the real estate charge. For the year and quarter ended November 30, 2002, the Company's return on tangible common stockholders' equity was reduced by 1.0% and 3.9%, respectively, as a result of the real estate charge, September 11th related recoveries, net and the regulatory settlement. (See reconciliation attached). (e) Pretax margin for the year ended November 30, 2003 and the quarter ended May 31, 2003 was reduced by approximately 0.9% and 3.4%, respectively, as a result of the real estate charge. Pretax margin for the year and quarter ended November 30, 2002 was reduced by approximately 1.7% and 6.5%, respectively, as a result of the real estate charge, September 11th related recoveries, net and the regulatory settlement. (f) The effective tax rate for the year ended November 30, 2003 and the quarter ended May 31, 2003 decreased by approximately 0.3% and 1.5%, respectively as a result of the real estate charge. The effective tax rate for the year and quarter ended November 30, 2002 increased/(decreased) by approximately 0.3% and (0.5%), respectively, as a result of the real estate charge, September 11th related recoveries, net and the regulatory settlement. (g) Net assets represent total assets excluding secured financing arrangements, collateral received recognized in inventory pursuant to SFAS 140, goodwill and other identifiable intangibles. (See reconciliation attached). The Company believes net assets to be a useful measure as this measure is utilized by certain rating agencies when evaluating leverage as it excludes certain assets of a low risk nature. (h) The Company believes total stockholders' equity plus trust preferred securities subject to mandatory redemption to be a more meaningful measure of the Company's equity. (i) The Company believes tangible equity capital to be a more meaningful measure of the Company's equity for purposes of calculating net leverage as goodwill and identifiable intangibles are deemed to be entirely funded by equity. Tangible equity capital is defined as total stockholders' equity plus trust preferred securities subject to mandatory redemption (subject to certain limitations) less goodwill and other identifiable intangibles. (See reconciliation attached). (j) Total capital includes long-term debt, total stockholders' equity, and trust preferred securities subject to mandatory redemption. The Company believes total capital is useful to investors as a measure of the Company's financial strength. (k) Total leverage is defined as total assets divided by total stockholders' equity. (l) Net leverage is defined as net assets divided by tangible equity capital (subject to certain limitations - see reconciliation attached). The Company believes net leverage to be useful to investors as a more meaningful measure of leverage in evaluating companies in the securities industry and is used by many of the Company's creditors and a leading rating agency. (m) The book value per common share calculation includes restricted stock units granted under Lehman Stock Award Programs, which have been included in total stockholders' equity.