-----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, IhHOe6UWEhBJOUit4EJZRlN5NoLDhS4/6fi1ALCmQw8+Fn3MjD8HCYz5N/vz7ohw xj5kYrhIttfMy+1KzbtHpQ== 0000950148-98-001112.txt : 19980504 0000950148-98-001112.hdr.sgml : 19980504 ACCESSION NUMBER: 0000950148-98-001112 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980501 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980501 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: INVESTMENT TECHNOLOGY GROUP INC CENTRAL INDEX KEY: 0000920424 STANDARD INDUSTRIAL CLASSIFICATION: SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211] IRS NUMBER: 133757717 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-23644 FILM NUMBER: 98608642 BUSINESS ADDRESS: STREET 1: 380 MADISON AVE STREET 2: 2ND FLOOR CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2125884000 MAIL ADDRESS: STREET 1: 11100 SANTA MONICA BLVD STREET 2: 12TH FLOOR CITY: LOS ANGELES STATE: CA ZIP: 90025 8-K 1 FORM 8-K 1 ================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 -------------------- FORM 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: May 1, 1998 Date of Earliest Event Reported: March 17, 1998 INVESTMENT TECHNOLOGY GROUP, INC. Delaware 0-23644 13-3757717 (State of (Commission File (IRS Employer Incorporation) Number) Identification Number)
380 Madison Avenue New York, New York 10017 (Address of principal executive office) (Zip Code) Registrant's telephone number, including area code: (212) 588-4000 ================================================================================ 2 ITEM 5. OTHER EVENTS On March 17, 1998, Jeffries Group, Inc. ("Group") and Investment Technology Group, Inc. ("ITGI") jointly announced plans to separate Group's 100% owned subsidiary, Jeffries & Company, Inc., and Group's 82.3% owned subsidiary, ITGI, through a proposed spin-off and related transactions. Attached and incorporated by reference is information regarding the proposed transactions filed in a Form 8-K on March 17, 1998 updated to include selected financial information for the quarter ended March 27, 1998. This information is available on the website of Group and ITGI (Exhibit 99.1). ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS Exhibit Index. EXHIBIT NO. EXHIBIT DESCRIPTION 99.1 Unaudited financial information concerning Group and ITGI. 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, thereunto duly authorized. Dated: May 1, 1998 JEFFRIES GROUP, INC. By: /s/ JOHN R. MACDONALD ------------------------------------ Senior Vice President and Chief Financial Officer EX-99.1 2 EXHIBIT 99.1 1 JEFFERIES GROUP, INC. UNAUDITED FINANCIAL INFORMATION RELATING TO PLANNED SPIN-OFF [JEFFERIES GROUP, INC. LOGO] 2 ================================================================================ PAGE ---- HIGHLIGHTS PLANNED TRANSACTION............................................... 1-3 SELECTED FINANCIAL INFORMATION.................................... 4-7 APPENDIX JEFFERIES GROUP, INC. CONSOLIDATING FINANCIAL INFORMATION STATEMENTS OF FINANCIAL CONDITION.......................... A STATEMENTS OF EARNINGS FOR FIRST QUARTER 1998 & 1997....... B STATEMENTS OF EARNINGS..................................... C This document contains statements concerning the timing, structure and ramifications of the proposed spin-off and related transactions that are intended to be "forward-looking statements", as that phrase is defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements, which can be identified by the use of terms such as "plan", "anticipate", "will", "would", "expect", "estimate" or variations of such terms, may not occur as presently anticipated in the event necessary approvals are not obtained or are not obtained on acceptable terms or in the event of adverse developments in the market for Jefferies Group or ITGI securities or in securities markets in general. As a result, no forward-looking statement should be regarded as a representation by Jefferies Group, ITGI or any other person that the presently anticipated events will occur as described herein. 3 PLANNED TRANSACTION ================================================================================ On March 17, 1998, Jefferies Group, Inc. and Investment Technology Group, Inc. announced plans to separate Jefferies & Company, Inc. and Investment Technology Group, Inc. through a spin-off. Jefferies Group, Inc. is a holding company for two principal lines of business: a full-service global investment bank serving institutions and small- to medium-sized corporations (referred to in this document as "JEFCO"); and 82.1 percent-owned Investment Technology Group, Inc., the leading provider of technology-based equity trading services and transaction research to institutional investors and brokers. According to the plan, Jefferies Group shareholders will own 100% of JEFCO and approximately 82.1% of ITGI when the transaction closes. The public ITGI shareholders will continue to own approximately 17.9% of ITGI. The spin-off will be accomplished by a tax-free distribution of 100% of the shares of a new holding company, JEFCO, to Jefferies Group shareholders. Jefferies Group's 15 million shares of ITGI would then be its only asset. (As of March 27, 1998, total outstanding shares of ITGI were 18.3 million.) The spin-off would be followed immediately by a tax-free merger of Jefferies Group and ITGI. Jefferies Group will seek a ruling from the IRS regarding the tax-free nature of the distribution of JEFCO and expects to complete the transaction by the end of the year. 1 [JEFFERIES GROUP, INC. LOGO] 4 PLANNED TRANSACTION ================================================================================ Jefferies Group and ITGI expect that both companies will have financial strength and flexibility for future growth. The spin-off plan calls for: - Increasing JEFCO's capital base through a combination of Jefferies Group stock option exercises, termination of Jefferies Group's deferred compensation plan, various tax benefits and a special dividend of approximately $50-75 million from ITGI to all of its stockholders. It is currently anticipated that at the transaction closing date, JEFCO will have a minimum equity capital base of $320 million and ITGI will have a minimum equity capital base of $20 million. - Assumption by JEFCO of Jefferies Group's existing $150 million senior unsecured debt obligation. - Establishing an employee stock ownership plan at JEFCO, which will further align the interests of employees and stockholders at JEFCO by providing equity-based compensation incentives linked directly to JEFCO's operating performance. The spin-off and restructuring transactions are contingent on a number of factors, including receipt of all required Board of Directors and shareholder approvals of Jefferies Group and ITGI, receipt of a favorable tax ruling from the IRS and other required regulatory and contractual approvals. 2 [JEFFERIES GROUP, INC. LOGO] 5 PLANNED TRANSACTION ================================================================================ [GRAPHIC OMITTED] JEF GROUP SHAREHOLDERS 100% OWNERSHIP JEFFERIES GROUP, INC. LOGO ITGI 82% OWNERSHIP MINORITY INTEREST 18% OWNERSHIP - Post Spin-Off UPSTREAM MERGER Minimum Equity: $20 mm - MERGE ITGI INTO JEF GROUP AND EXCHANGE MINORITY INTEREST SHARES IN ITGI FOR JEF GROUP SHARES - CHANGE JEF GROUP NAME TO ITGI "JEFCO" INVESTMENT - - Post Spin-Off Minimum Capital: $470 mm TECHNOLOGY - - Post Spin-Off Minimum Equity: $320 mm GROUP, INC. 3 [JEFFERIES GROUP, INC. LOGO] 6 JEFFERIES GROUP, INC. CONSOLIDATED FINANCIAL INFORMATION ================================================================================ SELECTED CONSOLIDATED FINANCIAL DATA
(IN THOUSANDS EXCEPT PER SHARE AMOUNTS) QUARTER ENDED YEAR ENDED DECEMBER 31, -------------------------- ------------------------------------------------------------------ MARCH 27, MARCH 28, 1998 1997 1997 1996 1995 1994 1993 ---------- ---------- ---------- ---------- ---------- ---------- ---------- INCOME STATEMENT(a) Net Revenues $ 186,435 $ 135,279 $ 703,038 $ 478,774 $ 351,222 $ 262,538 $ 292,789 Operating Income 32,125 21,567 115,950 83,187 53,238 30,779 47,344 Earnings before income taxes, minority interest, and cumulative effect of change in accounting principle 32,125 21,567 115,950 83,187 53,238 39,036 47,344 Income Taxes 13,346 9,005 47,677 35,438 21,911 17,568 19,755 Minority Interest 1,303 1,165 4,706 4,189 2,798 1,244 0 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Net Earnings $ 17,476 $ 11,397 $ 63,567 $ 43,560 $ 28,529 $ 20,224 $ 28,947(b) EARNINGS PER SHARE Diluted Earnings $ 0.75 $ 0.50 $ 2.80 $ 1.84 $ 1.19 $ 0.81 $ 1.22 AS OF AS OF DECEMBER 31, ------------------------- ------------------------------------------------------------------ MARCH 27, MARCH 28, 1998 1997 1997 1996 1995 1994 1993 BALANCE SHEET(a) ---------- ---------- ---------- ---------- ---------- ---------- ---------- Cash, Cash Equivalents, and Short Term Investments $ 315,175 $ 96,768 $ 224,465 $ 180,435 $ 72,821 $ 73,533 $ 28,914 Total Assets 2,837,794 2,217,604 2,099,542 1,568,087 1,536,969 1,557,348 1,388,403 Long-Term Debt 149,314 49,506 149,290 52,987 56,322 59,570 9,968 Stockholders' Equity 270,552 191,940 242,756 195,445 186,261 163,235 144,558 SELECTED RATIOS: Pre-Tax Margin (as a % of Net Revenue) 17% 16% 16% 17% 15% 15% 16% Return on Average Equity 27%(c) 24%(c) 30% 23% 17% 13% 25% Book Value Per Share Outstanding $ 13.02 $ 9.57 $ 11.97 $ 9.43 $ 8.28 $ 7.28 $ 6.35 Shares Outstanding 20,783 20,065 20,286 20,726 22,514 22,420 22,782 Diluted Weighted Average Shares Outstanding 22,864 22,324 22,349 23,410 23,922 24,756 24,664
(a) ITGI is fully consolidated into Jefferies Group, Inc. The minority interest in ITGI is recorded as a liability. This liability representing the minority interest is increased each period by the minority's share of net income from ITGI and such amount is deducted from the determination of net earnings from Jefferies Group, Inc. (b) Includes cumulative adjustment of $1.4 million due to the adoption of accounting standard in 1993. (c) Annualized Return on Average Equity. 4 [JEFFERIES GROUP, INC. LOGO] 7 JEFFERIES GROUP, INC. CONSOLIDATED FINANCIAL INFORMATION ================================================================================ TOTAL REVENUE GROWTH & COMPOSITION [GRAPH] (IN MILLIONS) $800 $765 17% $600 $517 $406 21% ITGI $400 $310 $304 18% JEFCO 83% 16% 18% $200 79% 82% 84% 82% $ 0 1993 1994 1995 1996 1997 5 [JEFFERIES GROUP, INC. LOGO] 8 SEGMENT FINANCIAL INFORMATION - "JEFCO" ================================================================================ SELECTED FINANCIAL DATA The following represents historical financial information of Jefferies Group, Inc.'s core brokerage and banking business - "JEFCO." (DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
QUARTER ENDED YEAR ENDED DECEMBER 31, ------------------------ ---------------------------------------------------------------- March 27, March 28, 1998 1997 1997 1996 1995 1994 1993 ---------- ---------- ---------- ------ ------- -------- ----------- INCOME STATEMENT Net Revenues $ 146,891 $ 105,119 $569,528 $369,183 $ 279,939 $ 206,968 $ 243,470 Operating Income 19,075 10,206 68,690 42,186 28,350 13,007 40,918 Contribution to Consolidated Jefferies Group, Inc. Net Earnings 11,417 6,031 41,356 24,414 16,422 29,330(b) 25,620 EARNINGS PER SHARE Contribution to Consolidated Jefferies Group, Inc. Diluted Earnings(a) $ 0.50 $ 0.27 $ 1.85 $ 1.04 $ 0.69 $ 1.18 $ 1.04 AS OF AS OF DECEMBER 31, ------------------------ --------------------------------------------------------------- March 27, March 28, 1998 1997 1997 1996 1995 1994 1993 ---------- ---------- ---------- ---------- ---------- ---------- ---------- BALANCE SHEET Cash, Cash Equivalents, and Short Term Investments $ 304,022 $ 91,452 $ 173,202 $ 136,480 $ 54,861 $ 52,087 $ 22,904 Total Assets 2,718,456 2,135,451 1,994,684 1,493,117 1,497,351 1,526,869 1,376,293 Long-Term Debt 149,314 49,506 149,290 52,987 56,322 59,570 9,968 Stockholders' Equity 186,649 131,485 165,568 140,314 149,163 137,478 130,714 SELECTED RATIOS: Pre-Tax Margin (as a % of Net Revenue) 13% 10% 12% 11% 10% 25% 17% Return on Average Equity 24%(c) 16%(c) 27% 17% 11% 22% 24%
(a) Contribution is calculated based on consolidated Jefferies Group, Inc. diluted weighted average shares outstanding. (b) Contribution to consolidated Jefferies Group, Inc. net earnings in 1994 includes a one-time, after tax gain of approximately $22 million or $.89 per diluted share related to the IPO of ITGI. (c) Annualized Return on Average Equity. 6 [JEFFERIES GROUP, INC. LOGO] 9 SEGMENT FINANCIAL INFORMATION - "ITGI" ================================================================================ SELECTED FINANCIAL DATA The following represents historical financial information of Jefferies Group, Inc.'s equity ownership of approximately 82% currently of Investment Technology Group, Inc. - "ITGI."
(DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS) QUARTER ENDED YEAR ENDED DECEMBER 31, --------------------- ----------------------------------------------------- MARCH 27, MARCH 28, 1998 1997 1997 1996 1995 1994 1993 --------- --------- -------- -------- -------- -------- -------- INCOME STATEMENT Net Revenues $ 41,374 $ 30,637 $136,896 $111,333 $ 72,328 $ 56,706 $ 49,316 Contribution to Consolidated Jefferies Group, Inc. Net Earnings (Loss)(a) 6,059 5,366 22,211 19,146 12,107 (9,106)(c) 3,327 EARNINGS (LOSS) PER SHARE Contribution to Consolidated Jefferies Group, Inc. Diluted Earnings(b) $ 0.25 $ 0.23 $ 0.95 $ 0.80 $ 0.50 $ (.37)(c) $ 0.18 AS OF AS OF DECEMBER 31, --------------------- ----------------------------------------------------- MARCH 27, MARCH 28, 1998 1997 1997 1996 1995 1994 1993 --------- --------- -------- -------- -------- -------- --------- BALANCE SHEET Cash, Cash Equivalents, and Short Term Investments $ 64,460 $ 46,384 $ 51,263 $ 43,955 $ 17,960 $ 21,446 $ 6,010 Total Assets 126,940 90,125 113,641 82,798 55,318 38,354 23,496 Long-Term Debt 0 0 0 0 0 0 0 SELECTED RATIOS: Pre-Tax Margin (as a % of Net Revenue) 32% 37% 35% 37% 34% -22% 13%
(a) Contribution to consolidated Jefferies Group, Inc. net earnings (loss) represent Jefferies Group, Inc.'s ownership percentage of approximately 82% of ITGI from May 1994 to present. Previous to May 1994, ITGI was a wholly owned subsidiary of Jefferies Group, Inc. (b) Contribution is calculated based on consolidated Jefferies Group, Inc. diluted weighted average shares outstanding including earnings adjustments for stock options of ITGI. (c) Contribution to consolidated Jefferies Group, Inc. net earnings in 1994 includes a non-recurring, after tax charge of approximately $20 million or $.80 per diluted share related to termination of plans expense. 7 [JEFFERIES GROUP, INC. LOGO] 10 APPENDIX A ================================================================================ JEFFERIES GROUP INC. CONSOLIDATING STATEMENTS OF FINANCIAL CONDITION AS OF MARCH 27, 1998 AND DECEMBER 31, 1997 The following table represents the historical assets and liabilities of Jefferies Group, Inc. broken down between its core brokerage and banking business - "JEFCO" - and its approximately 82% ownership interest of ITGI.
(DOLLARS IN THOUSANDS) AS OF MARCH 27, 1998 AS OF DECEMBER 31, 1997 ----------------------------------- ------------------------------------ JEFFERIES JEFFERIES ITGI(a) JEFCO(a) GROUP, INC. ITGI(a) JEFCO(a) GROUP, INC. ------- -------- ----------- ---------- -------- ----------- ASSETS Cash and cash equivalents $ 64,460 $ 57,098 $ 121,558 $ 51,263 $ 58,225 $ 109,488 Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations 0 62,551 62,551 0 30,977 30,977 Receivables from brokers and dealers 3,685 1,995,392 1,995,392 2,931 1,269,664 1,269,664 Receivables from customers, officers and directors 0 122,406 122,406 0 166,284 166,284 Securities owned 0 258,501 258,501 358 245,055 245,413 Investments 11,153 161,931 173,084 10,935 143,649 154,584 Premises and equipment 18,753 22,067 40,820 19,506 23,322 42,828 Other assets 28,889 38,510 63,482 28,648 57,508 80,304 ---------- ---------- ----------- ---------- ---------- ---------- $ 126,940 $2,718,456 $ 2,837,794 $ 113,641 $1,994,684 $2,099,542 ========== ========== =========== ========== ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Payable to brokers and dealers $ 0 $1,751,718 $ 1,751,718 $ 0 $ 981,705 $ 981,705 Payable to customers 0 208,096 208,096 0 202,255 202,255 Securities sold, not yet purchased 0 199,120 199,120 3 188,700 188,703 Accrued expenses and other liabilities 24,736 223,559 240,693 19,875 307,166 318,258 ---------- ---------- ---------- ---------- ---------- ---------- 24,736 2,382,493 2,399,627 19,878 1,679,826 1,690,921 Long-term debt 0 149,314 149,314 0 149,290 149,290 Minority interest 18,301 0 18,301 16,575 0 16,575 ---------- ---------- ---------- ---------- ---------- ---------- 43,037 2,531,807 2,567,242 36,453 1,829,116 1,856,786 Stockholders' equity 83,903 186,649 270,552 77,188 165,568 242,756 ---------- ---------- ----------- ---------- ---------- ---------- $ 126,940 $2,718,456 $2,837,794 $ 113,641 $1,994,684 $2,099,542 ========== ========== =========== ========== ========== ==========
(a) Each company's financial statements, which are shown here on a stand alone basis, include intercompany balances which would eliminate in consolidation. As a result, the sum of the two companies may not total the consolidated Jefferies Group, Inc. balance shown. [JEFFERIES GROUP, INC. LOGO] 11
APPENDIX B ================================================================================================================================= JEFFERIES GROUP, INC. CONSOLIDATING STATEMENTS OF EARNINGS FOR QUARTER ENDED MARCH 27, 1998 AND MARCH 28, 1997 The following table represents the results of operations of Jefferies Group, Inc. broken down between its core brokerage and banking business -- "JEFCO" -- and its approximately 82% ownership interest of ITGI. - --------------------------------------------------------------------------------------------------------------------------------- (DOLLARS IN THOUSANDS EXCEPT PER FOR THE QUARTER ENDED MARCH 27, 1998 FOR THE QUARTER ENDED MARCH 28, 1997 SHARE AMOUNTS) ---------------------------------------- --------------------------------------- JEFFERIES JEFFERIES ITGI(a) JEFCO(a) GROUP, INC. ITGI(a) JEFCO(a) GROUP, INC. ---------------------------------------- --------------------------------------- Total revenues $ 41,387 $163,848 $203,408 $ 30,654 $116,993 $147, 178 Interest expense 13 16,957 16,973 17 11,874 11,899 ---------------------------------------- --------------------------------------- Revenues, net of interest expense 41,374 146,891 186,435 30,637 105,119 135,279 Total non-interest expenses 28,324 127,816 154,310 19,276 94,913 113,712 ---------------------------------------- --------------------------------------- Earnings before income taxes and minority interest 13,050 19,075 32,125 11,361 10,206 21,567 Income taxes 5,688 7,658 13,346 4,830 4,175 9,005 ---------------------------------------- --------------------------------------- Earnings before minority interest 7,362 11,417 18,779 6,531 6,031 12,562 Minority interest 1,303 0 1,303 1,165 0 1,165 ---------------------------------------- --------------------------------------- Net earnings $ 6,059 $ 11,417 $ 17,476 $ 5,366 $ 6,031 $ 11,397 EARNINGS PER SHARE Basic Earnings(b) $ 0.27 $ 0.52 $ 0.79 $ 0.25 $ 0.28 $ 0.53 Diluted Earnings(b) $ 0.25 $ 0.50 $ 0.75 $ 0.23 4 0.27 $ 0.50 (a) Each company's financial statements, which are shown here on a stand alone basis, include intercompany balances which would eliminate in consolidation. As a result, the sum of the two companies may not total the consolidated Jefferies Group, Inc. balance shown. (b) For ITGI and JEFCO, the earnings per share represent the contribution to consolidated Jefferies Group, Inc. earnings per share for basic and diluted. =================================================================================================================================
12 APPENDIX C ================================================================================ JEFFERIES GROUP INC. HISTORICAL CONSOLIDATING STATEMENTS OF EARNINGS The following table represents the results of operations of Jefferies Group, Inc. broken down between its core brokerage and banking business - "JEFCO" - and its approximately 82% ownership interest of ITGI.
(DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS) FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED DECEMBER 31, 1997 DECEMBER 31, 1996 DECEMBER 31, 1995 --------------------------------- --------------------------------- ------------------------------- JEFFERIES JEFFERIES JEFFERIES ITGI(a) JEFCO(a) GROUP, INC. ITGI(a) JEFCO(a) GROUP, INC. ITGI(a) JEFCO(a) GROUP, INC. -------- -------- ----------- -------- -------- ----------- -------- -------- ----------- Total revenues $137,042 $630,842 $ 764,504 $111,556 $407,023 $ 516,626 $ 72,381 $334,282 $ 405,587 Interest expense 146 61,314 61,466 223 37,840 37,852 53 54,343 54,365 -------- -------- ----------- -------- -------- ---------- -------- -------- -------- Revenues, net of interest expense 136,896 569,528 703,038 111,333 369,183 478,774 72,328 279,939 351,222 Total non-interest expenses 89,636 500,838 587,088 70,332 326,997 395,587 47,440 251,589 297,984 -------- -------- ----------- -------- -------- ---------- -------- -------- -------- Earnings before income taxes and minority interest 47,260 68,690 115,950 41,001 42,186 83,187 24,888 28,350 53,238 Income taxes 20,343 27,334 47,677 17,666 17,772 35,438 9,983 11,928 21,911 -------- -------- ----------- -------- -------- ---------- -------- -------- -------- Earnings before minority interest 26,917 41,356 68,273 23,335 24,414 47,749 14,905 16,422 31,327 Minority interest 4,706 -- 4,706 4,189 -- 4,189 2,798 -- 2,798 -------- -------- ----------- -------- -------- ---------- -------- -------- -------- Net earnings $ 22,211 $ 41,356 $ 63,567 $ 19,146 $ 24,414 $ 43,560 $ 12,107 $ 16,422 $ 28,529 Earnings Per Share Basic Earnings(b) $ 1.03 $ 1.92 $ 2.95 $ 0.84 $ 1.06 $ 1.90 $ 0.52 $ 0.71 $ 1.23 Diluted Earnings(b) $ 0.95 $ 1.85 $ 2.80 $ 0.80 $ 1.04 $ 1.84 $ 0.50 $ 0.69 $ 1.19
(a) Each company's financial statements, which are shown here on a stand alone basis, include intercompany balances which would eliminate in consolidation. As a result, the sum of the two companies may not total the consolidated Jefferies Group, Inc. balance shown. (b) For ITGI and JEFCO, the earnings per share represent the contribution to consolidated Jefferies Group, Inc. earnings per share for basic and diluted. [JEFFERIES GROUP, INC. LOGO] -----END PRIVACY-ENHANCED MESSAGE-----