EX-99 2 lncpresrel.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 August 8, 2005 FOR IMMEDIATE RELEASE Contact: Laura Ulbrandt (212) 460-1900 LEUCADIA NATIONAL CORPORATION ANNOUNCES SIX MONTH 2005 RESULTS Leucadia National Corporation (LUK - NYSE) today announced its operating results for the six month period ended June 30, 2005. In June 2005, the Company recorded an adjustment that reduced the deferred tax asset valuation allowance and credited income tax expense by $1,110,000,000. Although this adjustment significantly increases reported net income for the period and shareholders' equity as of June 30, 2005, it is not a cash gain, and it does not represent any immediate income tax savings. The adjustment results from the Company's conclusion that it is more likely than not that it will have future taxable income sufficient to realize a portion of the net deferred tax asset, and is required to be recorded under generally accepted accounting principles. Net income was $1,273,724,000 (including the $1,110,000,000 adjustment referred to above) or $11.09 per diluted common share for the six month period ended June 30, 2005 compared to net income of $22,023,000 or $.21 per diluted common share for the six month period ended June 30, 2004. Net income per share included income of $.47 for the 2005 period and a loss of $.02 for the 2004 period related to discontinued operations. For more information on the adjustment described above and the Company's results of operations for the first half of 2005, please see the Company's Form 10-Q for the six months ended June 30, 2005, which was filed with the Securities and Exchange Commission today. SUMMARY FOR LEUCADIA NATIONAL CORPORATION AND SUBSIDIARIES (In thousands, except earnings per share amounts) (Unaudited)
For the Three Month For the Six Month Period Ended June 30, Period Ended June 30, --------------------- --------------------- 2005 2004 2005 2004 ---- ---- ---- ---- Revenues and other income $ 700,512 $ 569,547 $ 1,261,297 $ 1,079,277 ============= ========== =========== =========== Net securities gains $ 46,949 $ 52,346 $ 47,004 $ 61,618 ============= ========== =========== =========== Income (loss) from continuing operations before income taxes and equity in income of associated companies $ 41,728 $ 30,956 $ 33,817 $ (4,238) Income taxes (1,107,460) (1,264) (1,106,836) (1,006) ------------- ---------- ----------- ----------- Income (loss) from continuing operations before equity in income of associated companies 1,149,188 32,220 1,140,653 (3,232) Equity in income of associated companies, net of taxes 67,345 4,151 78,493 28,132 ------------- ---------- ----------- ----------- Income from continuing operations 1,216,533 36,371 1,219,146 24,900 Income (loss) from discontinued operations, including gains on disposal, net of taxes 54,578 (2,396) 54,578 (2,877) ------------- ---------- ----------- ----------- Net income $ 1,271,111 $ 33,975 $ 1,273,724 $ 22,023 ============= ========== =========== =========== Basic earnings (loss) per common share: Income from continuing operations $11.30 $ .34 $11.32 $ .23 Income (loss) from discontinued operations, including gain on disposal .51 (.02) .51 (.02) ------- ------- ------ ----- Net income $11.81 $ .32 $11.83 $ .21 ======= ======= ====== ===== Number of shares in calculation 107,652 106,320 107,633 106,295 ======= ======= ======= ======= Diluted earnings (loss) per common share: Income from continuing operations $10.56 $ .34 $10.62 $ .23 Income (loss) from discontinued operations, including gain on disposal .47 (.02) .47 (.02) ------- ----- ------ ----- Net income $11.03 $ .32 $11.09 $ .21 ======= ===== ====== ===== Number of shares in calculation 115,513 112,948 115,509 107,217 ======= ======= ======= =======