-----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, Mq45XR53pq/Vu5C0SQYL9Q5yr5/fWnqm9odwOQGivJcTQEt1wsw4sQUmW9vgJpBB av6GabQKi2KmRkjwsRGewg== 0000950148-98-001850.txt : 19980810 0000950148-98-001850.hdr.sgml : 19980810 ACCESSION NUMBER: 0000950148-98-001850 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980807 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980807 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: 98679686 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: August 7, 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, Jefferies Group, Inc. ("Group") and Investment Technology Group, Inc. ("ITGI") jointly announced plans to separate Group's 100% owned subsidiary, Jefferies & 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 June 26, 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: August 7, 1998 INVESTMENT TECHNOLOGY GROUP, INC. By: /s/ JOHN R. MACDONALD ------------------------------- John R. MacDonald Senior Vice President and Chief Financial Officer EX-99.1 2 EXHIBIT 99.1 1 EXHIBIT 99.1 JEFFERIES GROUP, INC. UNAUDITED FINANCIAL INFORMATION RELATING TO PLANNED SPIN-OFF [LOGO] 2 ================================================================================
PAGE ---- HIGHLIGHTS PLANNED TRANSACTION.................................................... 1-3 SELECTED FINANCIAL INFORMATION......................................... 4-6 APPENDIX JEFFERIES GROUP, INC. CONSOLIDATING FINANCIAL INFORMATION STATEMENTS OF FINANCIAL CONDITION................................... A STATEMENTS OF EARNINGS FOR THREE MONTHS ENDED JUNE 26, 1998 & JUNE 27, 1997.............................. B STATEMENTS OF EARNINGS FOR SIX MONTHS ENDED JUNE 26, 1998 & JUNE 27, 1997.............................. C STATEMENTS OF EARNINGS ............................................. D
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. [LOGO] 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 81.5 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 81.5% of ITGI when the transaction closes. The public ITGI shareholders will continue to own approximately 18.5% 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 June 26, 1998, total outstanding shares of ITGI were 18.4 million.) The spin-off would be followed immediately by a tax-free merger of Jefferies Group and ITGI. Jefferies Group is seeking 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 [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 [LOGO] 5 PLANNED TRANSACTION ================================================================================ JEF GROUP SHAREHOLDERS 100% OWNERSHIP JEFFERIES ITGI --------- MINORITY INTEREST GROUP, INC. 82% OWNERSHIP 18% OWNERSHIP UPSTREAM MERGER --------------- - Post Spin-Off - MERGE ITGI INTO JEF GROUP AND Minimum Equity: $20mm EXCHANGE MINORITY INTEREST SHARES IN ITGI FOR JEF GROUP SHARES - CHANGE JEF GROUP NAME TO ITGI INVESTMENT "JEFCO" TECHNOLOGY GROUP, INC. - - Post Spin-Off Minimum Capital: $470mm - - Post Spin-Off Minimum Equity: $320mm [LOGO] 3 6 JEFFERIES GROUP, INC. CONSOLIDATED FINANCIAL INFORMATION ================================================================================ SELECTED CONSOLIDATED FINANCIAL DATA
(IN THOUSANDS EXCEPT PER SHARE AMOUNTS) THREE MONTHS ENDED SIX MONTHS ENDED YEAR ENDED DECEMBER 31, ---------------------- ---------------------- ----------------------------------- JUNE 26, JUNE 27, JUNE 26, JUNE 27, 1998 1997 1998 1997 1997 1996 1995 ---------------------- ---------------------- ----------------------------------- STATEMENT OF EARNINGS(a) Net Revenues $178,824 $185,940 $365,259 $321,219 $703,038 $478,774 $351,222 Operating Income 35,017 35,327 67,142 56,894 115,950 83,187 53,238 Income Taxes 15,389 14,197 28,735 23,202 47,677 35,438 21,911 Minority Interest 1,802 1,382 3,105 2,547 4,706 4,189 2,798 ---------------------- ---------------------- ----------------------------------- Net Earnings $ 17,826 $ 19,748 $ 35,302 $ 31,145 $ 63,567 $ 43,560 $ 28,529 EARNINGS PER SHARE Diluted Earnings $ 0.76 $ 0.87 $ 1.51 $ 1.37 $ 2.80 $ 1.84 $ 1.19 Diluted Weighted Average Shares Outstanding 22,909 22,290 22,901 22,304 22,349 23,410 23,922
AS OF AS OF DECEMBER 31, ---------------------- ----------------------------------- JUNE 26, JUNE 27, 1998 1997 1997 1996 1995 ---------------------- ----------------------------------- FINANCIAL CONDITION(a) Cash, Cash Equivalents, and Short Term Investments $ 285,089 $ 161,963 $ 224,465 $ 180,435 $ 72,821 Total Assets 2,881,515 2,458,643 2,099,542 1,568,087 1,536,969 Long-Term Debt 149,338 49,523 149,290 52,987 56,322 Stockholders' Equity 285,555 210,372 242,756 195,445 186,261 Shares Outstanding 20,825 20,032 20,286 20,726 22,514 SELECTED RATIOS: Pre-Tax Margin (as a % of Net Revenue) 18% 18% 16% 17% 15% Return on Average Equity 26%(b) 32%(b) 30% 23% 17% Book Value Per Share Outstanding $ 13.71 $ 10.50 $ 11.97 $ 9.43 $ 8.28
(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) Annualized Return on Average Equity. [LOGO] 4 7 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) THREE MONTHS ENDED SIX MONTHS ENDED YEAR ENDED DECEMBER 31, --------------------- ---------------------- ---------------------------------- JUNE 26, JUNE 27, JUNE 26, JUNE 27, 1998 1997 1998 1997 1997 1996 1995 --------------------- ---------------------- ---------------------------------- STATEMENT OF EARNINGS Net Revenues $129,641 $149,986 $276,532 $255,105 $569,528 $369,183 $279,939 Operating Income 16,350 21,402 35,425 31,608 68,690 42,186 28,350 Contribution to Consolidated Jefferies Group, Inc. Net Earnings 9,700 13,122 21,117 19,153 41,356 24,414 16,422 EARNINGS PER SHARE Contribution to Consolidated Jefferies Group, Inc. Diluted Earnings(a) $ 0.42 $ 0.59 $ 0.92 $ 0.86 $ 1.85 $ 1.04 $ 0.69
AS OF AS OF DECEMBER 31, ----------------------- ---------------------------------- JUNE 26, JUNE 27, 1998 1997 1997 1996 1995 ----------------------- ---------------------------------- FINANCIAL CONDITION Cash, Cash Equivalents, and Short Term Investments $ 206,078 $ 112,989 $ 173,202 $ 136,480 $ 54,861 Total Assets 2,743,399 2,368,432 1,994,684 1,493,117 1,497,351 Long-Term Debt 149,338 49,523 149,290 52,987 56,322 Stockholders' Equity 192,035 144,949 165,568 140,314 149,163 SELECTED RATIOS: Pre-Tax Margin (as a % of Net Revenue) 13% 12% 12% 11% 10% Return on Average Equity 22%(b) 25%(b) 27% 17% 11%
(a) Contribution is calculated based on consolidated Jefferies Group, Inc. diluted weighted average shares outstanding. (b) Annualized Return on Average Equity. [LOGO] 5 8 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) THREE MONTHS ENDED SIX MONTHS ENDED YEAR ENDED DECEMBER 31, --------------------- -------------------- ------------------------------- JUNE 26, JUNE 27, JUNE 26, JUNE 27, 1998 1997 1998 1997 1997 1996 1995 --------------------- -------------------- ------------------------------- STATEMENT OF EARNINGS Net Revenues $ 50,904 $ 36,596 $ 92,278 $ 67,233 $136,896 $111,333 $ 72,328 Contribution to Consolidated Jefferies Group, Inc. Net Earnings(a) 8,126 6,626 14,185 11,992 22,211 19,146 12,107 EARNINGS PER SHARE Contribution to Consolidated Jefferies Group, Inc. Diluted Earnings(b) $ 0.34 $ 0.28 $ 0.59 $ 0.51 $ 0.95 $ 0.80 $ 0.50
AS OF AS OF DECEMBER 31, --------------------- ------------------------------- JUNE 26, JUNE 27, 1998 1997 1997 1996 1995 --------------------- ------------------------------- FINANCIAL CONDITION Cash, Cash Equivalents, and Short Term Investments $ 79,011 $ 48,974 $ 51,263 $ 43,955 $ 17,960 Total Assets 149,078 100,149 113,641 82,798 55,318 Long-Term Debt 0 0 0 0 0 SELECTED RATIOS: Pre-Tax Margin (as a % of Net Revenue) 34% 38% 35% 37% 34%
(a) Contribution to consolidated Jefferies Group, Inc. net earnings represent Jefferies Group, Inc.'s ownership percentage of approximately 82% of ITGI. (b) Contribution is calculated based on consolidated Jefferies Group, Inc. diluted weighted average shares outstanding including earnings adjustments for stock options of ITGI. [LOGO] 6 9 APPENDIX A ================================================================================ JEFFERIES GROUP INC. CONSOLIDATING STATEMENTS OF FINANCIAL CONDITION AS OF JUNE 26, 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 JUNE 26, 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 $ 79,011 $ 48,952 $ 127,963 $ 51,263 $ 58,225 $ 109,488 Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations 0 76,158 76,158 0 30,977 30,977 Receivables from brokers and dealers 5,414 1,929,831 1,929,831 2,931 1,269,664 1,269,664 Receivables from customers, officers and directors 0 176,269 176,269 0 166,284 166,284 Securities owned 76 296,562 296,638 358 245,055 245,413 Investments 11,340 138,222 149,562 10,935 143,649 154,584 Premises and equipment 20,054 21,160 41,214 19,506 23,322 42,828 Other assets 33,183 56,245 83,880 28,648 57,508 80,304 -------------------------------------- -------------------------------------- $ 149,078 $2,743,399 $2,881,515 $ 113,641 $1,994,684 $2,099,542 ====================================== ====================================== LIABILITIES AND STOCKHOLDERS' EQUITY Bank loans $ 2,000 $ 0 $ 2,000 $ 0 $ 0 $ 0 Payable to brokers and dealers 0 1,731,711 1,731,711 0 981,705 981,705 Payable to customers 0 198,244 198,244 0 202,255 202,255 Securities sold, not yet purchased 142 213,486 213,628 3 188,700 188,703 Accrued expenses and other liabilities 32,185 258,585 279,808 19,875 307,166 318,258 -------------------------------------- -------------------------------------- 34,327 2,402,026 2,425,391 19,878 1,679,826 1,690,921 Long-term debt 0 149,338 149,338 0 149,290 149,290 Minority interest 21,231 0 21,231 16,575 0 16,575 -------------------------------------- -------------------------------------- 55,558 2,551,364 2,595,960 36,453 1,829,116 1,856,786 Stockholders' equity 93,520 192,035 285,555 77,188 165,568 242,756 -------------------------------------- -------------------------------------- $ 149,078 $2,743,399 $2,881,515 $ 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. [LOGO] 10 APPENDIX B ================================================================================ JEFFERIES GROUP, INC. CONSOLIDATING STATEMENTS OF EARNINGS FOR THREE MONTHS ENDED JUNE 26, 1998 AND JUNE 27, 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 SHARE AMOUNTS) FOR THE THREE MONTHS ENDED JUNE 26, 1998 FOR THE THREE MONTHS ENDED JUNE 27, 1997 ---------------------------------------- ---------------------------------------- JEFFERIES JEFFERIES ITGI(a) JEFCO(a) GROUP, INC. ITGI(a) JEFCO(a) GROUP, INC. ---------------------------------------- ---------------------------------------- Total revenues $ 50,905 $149,699 $198,832 $ 36,679 $165,448 $201,485 Interest expense 1 20,058 20,008 83 15,462 15,545 ---------------------------------------- ---------------------------------------- Revenues, net of interest expense 50,904 129,641 178,824 36,596 149,986 185,940 Total non-interest expenses 32,237 113,291 143,807 22,671 128,584 150,613 ---------------------------------------- ---------------------------------------- Earnings before income taxes and minority interest 18,667 16,350 35,017 13,925 21,402 35,327 Income taxes 8,739 6,650 15,389 5,917 8,280 14,197 ---------------------------------------- ---------------------------------------- Earnings before minority interest 9,928 9,700 19,628 8,008 13,122 21,130 Minority interest 1,802 0 1,802 1,382 0 1,382 ---------------------------------------- ---------------------------------------- Net earnings $ 8,126 $ 9,700 $ 17,826 $ 6,626 $ 13,122 $ 19,748 EARNINGS PER SHARE Basic Earnings(b) $ 0.36 $ 0.44 $ 0.80 $ 0.31 $ 0.61 $ 0.92 Diluted Earnings(b) $ 0.34 $ 0.42 $ 0.76 $ 0.28 $ 0.59 $ 0.87
(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. [LOGO] 11 APPENDIX C ================================================================================ JEFFERIES GROUP, INC. CONSOLIDATING STATEMENTS OF EARNINGS FOR SIX MONTHS ENDED JUNE 26, 1998 AND JUNE 27, 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 SHARE AMOUNTS) FOR THE SIX MONTHS ENDED JUNE 26, 1998 FOR THE SIX MONTHS ENDED JUNE 27, 1997 -------------------------------------- -------------------------------------- JEFFERIES JEFFERIES ITGI(a) JEFCO(a) GROUP, INC. ITGI(a) JEFCO(a) GROUP, INC. -------------------------------------- -------------------------------------- Total revenues $ 92,292 $313,547 $402,240 $ 67,333 $282,441 $348,663 Interest expense 14 37,015 36,981 100 27,336 27,444 -------------------------------------- -------------------------------------- Revenues, net of interest expense 92,278 276,532 365,259 67,233 255,105 321,219 Total non-interest expenses 60,561 241,107 298,117 41,947 223,497 264,325 -------------------------------------- -------------------------------------- Earnings before income taxes and minority interest 31,717 35,425 67,142 25,286 31,608 56,894 Income taxes 14,427 14,308 28,735 10,747 12,455 23,202 -------------------------------------- -------------------------------------- Earnings before minority interest 17,290 21,117 38,407 14,539 19,153 33,692 Minority interest 3,105 0 3,105 2,547 0 2,547 -------------------------------------- -------------------------------------- Net earnings $ 14,185 $ 21,117 $ 35,302 $ 11,992 $ 19,153 $ 31,145 EARNINGS PER SHARE Basic Earnings(b) $ 0.65 $ 0.95 $ 1.60 $ 0.55 $ 0.89 $ 1.44 Diluted Earnings(b) $ 0.59 $ 0.92 $ 1.51 $ 0.51 $ 0.86 $ 1.37
(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 D ================================================================================ 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 DECEMBER 31, 1997 FOR THE YEAR ENDED DECEMBER 31, 1996 ------------------------------------- ------------------------------------ JEFFERIES JEFFERIES 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 Interest expense 146 61,314 61,466 223 37,840 37,852 ------------------------------------- ------------------------------------ Revenues, net of interest expense 136,896 569,528 703,038 111,333 369,183 478,774 Total non-interest expenses 89,636 500,838 587,088 70,332 326,997 395,587 ------------------------------------- ------------------------------------ Earnings before income taxes and minority interest 47,260 68,690 115,950 41,001 42,186 83,187 Income taxes 20,343 27,334 47,677 17,666 17,772 35,438 ------------------------------------- ------------------------------------ Earnings before minority interest 26,917 41,356 68,273 23,335 24,414 47,749 Minority interest 4,706 0 4,706 4,189 0 4,189 ------------------------------------- ------------------------------------ Net earnings $ 22,211 $ 41,356 $ 63,567 $ 19,146 $ 24,414 $ 43,560 EARNINGS PER SHARE Basic Earnings(b) $ 1.03 $ 1.92 $ 2.95 $ 0.84 $ 1.06 $ 1.90 Diluted Earnings(b) $ 0.95 $ 1.85 $ 2.80 $ 0.80 $ 1.04 $ 1.84
(DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS) FOR THE YEAR ENDED DECEMBER 31, 1995 --------------------------------------- JEFFERIES ITGI(a) JEFCO(a) GROUP, INC. --------------------------------------- Total revenues $ 72,381 $334,282 $405,587 Interest expense 53 54,343 54,365 --------------------------------------- Revenues, net of interest expense 72,328 279,939 351,222 Total non-interest expenses 47,440 251,589 297,984 --------------------------------------- Earnings before income taxes and minority interest 24,888 28,350 53,238 Income taxes 9,983 11,928 21,911 --------------------------------------- Earnings before minority interest 14,905 16,422 31,327 Minority interest 2,798 0 2,798 --------------------------------------- Net earnings $ 12,107 $ 16,422 $ 28,529 EARNINGS PER SHARE Basic Earnings(b) $ 0.52 $ 0.71 $ 1.23 Diluted Earnings(b) $ 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. [LOGO] -----END PRIVACY-ENHANCED MESSAGE-----