Jefferies Reports Fourth Quarter And 2012 Fiscal Year Financial Results

A conference call with management discussion of these financial results will be held today, Tuesday, December 18, 2012, at 9:00 AM Eastern (date and time subject to change). 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 855-859-2056 or 404-537-3406 (conference ID # 73941351). A live audio webcast and delayed replay can also be accessed at www.jefferies.com.

Jefferies Group, Inc. (NYSE: JEF), the global investment banking firm focused on serving clients for over 50 years, is a leader in providing insight, expertise and execution to investors, companies and governments. Jefferies provides a full range of investment banking, sales, trading, research and strategy across the spectrum of equities, fixed income, foreign exchange, futures and commodities, and also select asset and wealth management strategies, in the Americas, Europe and Asia.

			1.		Adjustments to net earnings to common shareholders and net earnings per common share on a non-GAAP basis include donations to Hurricane Sandy relief and transaction costs associated with the announced merger with Leucadia, amortization of intangibles and compensation awards related to our Bache and Hoare Govett acquisitions and interest expense incurred as a result of debt extinguishment accounting, from prior quarters, all on an after-tax basis.
			2.		Adjustments to net earnings to common shareholders and net earnings per common share on a non-GAAP basis include gain on debt extinguishment related to trading activities in our own debt, and amortization of intangible assets and compensation awards and other severance and bonus costs related to our Bache acquisition, all on an after-tax basis.
			3.		Adjustments to net earnings to common shareholders and net earnings per common share on a non-GAAP basis include a bargain purchase gain and compensation awards on our Hoare Govett acquisition, a gain on debt extinguishment relating to trading activities in our own debt and impairment charges on intangibles related to our Bache acquisition, all on an after-tax basis.
			4.		Adjustments to net earnings to common shareholders and net earnings per common share on a non-GAAP basis include a bargain purchase gain on our Bache acquisition, which is not a taxable item and transaction and integration expenses related to the Bache acquisition on an after-tax basis.

-- see financial tables in attached --

JEFFERIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in Thousands, Except Per Share Amounts)
(Unaudited)
				Three Months Ended												Year Ended
				November 30,						November 30,						November 30,						November 30,
				2012						2011						2012						2011
Revenues:
Commissions				$	127,074					$	130,619					$	485,569					$	534,726
Principal transactions					242,140						36,571						1,035,974						428,035
Investment banking					282,962						261,298						1,125,883						1,122,528
Asset management fees and investment income from managed funds					16,318						6,623						26,966						44,125
Interest income					242,904						317,485						1,031,839						1,248,132
Other revenues					61,872						46,144						164,974						152,092
Total revenues					973,270						798,740						3,871,205						3,529,638
Interest expense					204,421						244,757						872,421						980,825
Net revenues					768,849						553,983						2,998,784						2,548,813
Interest on mandatorily redeemable preferred interests of consolidated subsidiaries					8,279						(2,561	)					42,883						3,622
Net revenues, less mandatorily redeemable preferred interests					760,570						556,544						2,955,901						2,545,191
Non-interest expenses:
Compensation and benefits					460,404						308,137						1,770,798						1,482,604
Non-compensation expenses:
Floor brokerage and clearing fees					29,106						33,837						120,145						126,313
Technology and communications					64,051						62,377						244,511						215,940
Occupancy and equipment rental					25,815						23,954						97,397						84,951
Business development					22,968						29,397						95,330						93,645
Professional services					27,771						17,868						73,427						66,305
Other					16,480						10,294						62,498						56,099
Total non-compensation expenses					186,191						177,727						693,308						643,253
Total non-interest expenses					646,595						485,864						2,464,106						2,125,857
Earnings before income taxes					113,975						70,680						491,795						419,334
Income tax expense					34,243						25,066						168,646						132,966
Net earnings					79,732						45,614						323,149						286,368
Net earnings (loss) to noncontrolling interests					8,128						(2,772	)					40,740						1,750
Net earnings to common shareholders				$	71,604					$	48,386					$	282,409					$	284,618
Earnings per common share:
Basic				$	0.31					$	0.21					$	1.23					$	1.28
Diluted				$	0.31					$	0.21					$	1.22					$	1.28
Weighted average common shares:
Basic					214,415						215,628						215,989						211,056
Diluted					218,527						215,629						220,101						215,171
Compensation and benefits / Net revenues					59.9	%					55.6	%					59.1	%					58.2	%
Effective tax rate					30.0	%					35.5	%					34.3	%					31.7	%

JEFFERIES GROUP, INC. AND SUBSIDIARIES
SELECTED STATISTICAL INFORMATION
(Amounts in Thousands, Except Other Data)
(Unaudited)
					Quarter Ended
					November 30,					August 31,						November 30,
					2012					2012						2011
Revenues by Source
Equities					$	176,595				$	209,980					$	124,305
Fixed Income						292,974					265,679						140,651
Other						-					-						21,106
Total						469,569					475,659						286,062
Equity						52,919					39,068						26,936
Debt						145,772					87,894						62,090
Capital markets						198,691					126,962						89,026
Advisory						84,271					133,201						172,272
Investment banking						282,962					260,163						261,298
Asset management fees and investment income / (loss) from managed funds:
Asset management fees						9,680					8,583						9,162
Investment income / (loss) from managed funds						6,638					(5,467	)					(2,539	)
Total						16,318					3,116						6,623
Net revenues						768,849					738,938						553,983
Interest on mandatorily redeemable preferred interests of consolidated subsidiaries						8,279					8,304						(2,561	)
Net revenues, less mandatorily redeemable preferred interests					$	760,570				$	730,634					$	556,544
Other Data
Number of trading days						63					65						63
Average firmwide VaR (in millions) (1)					$	13.38				$	10.53					$	9.43
Average firmwide VaR excluding Knight Capital (in millions) (1)					$	7.95				$	8.35					N/a

(1) 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 "Value at Risk" in Part II, Item 7 "Management's Discussion and Analysis" in our Annual Report on Form 10-K for the year ended November 30, 2011.

« First ‹ Previous 1 2 3 4 Next › Last »