We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Jefferies Financial Group Inc | NYSE:JEF | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.33 | 0.72% | 46.26 | 46.58 | 46.00 | 46.18 | 811,125 | 00:56:25 |
Jefferies Financial Group Inc. (NYSE: JEF)
Q1 Financial Highlights
“Our Q1 results reflect solid performance across our businesses and our Investment Banking pipeline continues to strengthen, which leads us to believe a more robust market is developing. Our strong results in Capital Markets has continued into the current quarter. We are pleased that, adjusting for the impact of the net loss on Weiss, we generated an annualized return on adjusted tangible equity from continuing operations of 12.0% and net earnings from continuing operations of $0.87 per diluted common share. This bodes well for the balance of 2024, especially as we expect our recent significant hires to increasingly contribute to our results.
“Investment Banking net revenues for the quarter were $740 million, up 28.2% from the prior quarter and 31.4% from the same quarter last year, primarily due to improved mergers and acquisitions and equity underwriting activity reflecting our market share gains against modest improvement in the market. Capital Markets continued its strong performance, with net revenues of $712 million, up 47.9% from the prior quarter and 8.8% versus the same quarter last year. We expect our Investment Banking momentum to continue, and the market share gains we have achieved compared to the prior quarter and prior year quarter across Advisory, Equity underwriting and Leveraged finance to continue, as the investments we have made in our business further mature. Furthermore, we are extremely pleased with our alliance with SMBC, which continues to gain traction and is additive to our business model and prospects. We believe we will further expand our cooperation to additional regions and further areas of mutual opportunity.
“Asset Management also performed well, as we are seeing improved performance from our diversified platform of offerings. We are disappointed in the outcome at Weiss Multi-Strategy, but we are pleased that the shutdown was orderly and investors protected. Our loss is a result of support we provided the platform that was incremental to our separately managed account."
Richard Handler, CEO, and Brian Friedman, President
Quarterly Cash Dividend
The Jefferies Board of Directors declared a quarterly cash dividend equal to $0.30 per Jefferies common share, payable on May 30, 2024 to record holders of Jefferies common shares on May 20, 2024.
Financial Summary
(Dollars in thousands, except per share amounts)
Three Months Ended
February 29, 2024
February 28, 202314
% Change
Net revenues:
Investment Banking and Capital Markets
$
1,451,288
$
1,217,132
19
%
Asset Management
273,383
68,455
299
%
Other
13,532
(2,095
)
N/M
Net revenues
1,738,203
1,283,492
35
%
Net earnings from continuing operations before income taxes
220,242
158,018
39
%
Income tax expense
55,959
28,694
95
%
Net earnings from continuing operations
164,283
129,324
27
%
Net losses from discontinued operations, net of income tax benefit
(7,891
)
—
N/M
Net earnings
156,392
129,324
21
%
Net losses attributable to noncontrolling interests
(7,438
)
(6,055
)
23
%
Net losses attributable to redeemable noncontrolling interests
—
(256
)
(100
) %
Preferred stock dividends
14,189
2,016
604
%
Net earnings attributable to common shareholders
$
149,641
$
133,619
12
%
Earnings (losses) per common share:
Basic from continuing operations
$
0.71
$
0.56
27
%
Basic from discontinued operations
(0.03
)
—
N/M
Basic
$
0.68
$
0.56
22
%
Diluted from continuing operations
$
0.69
$
0.54
28
%
Diluted from discontinued operations
(0.03
)
—
N/M
Diluted
$
0.66
$
0.54
23
%
Weighted average common shares
219,902
239,101
Weighted average diluted common shares
225,168
248,095
N/M — Not Meaningful
Highlights
Three Months Ended February 29, 2024
Investment Banking and Capital Markets
Asset Management
* * * *
Amounts herein pertaining to February 29, 2024 represent a preliminary estimate as of the date of this earnings release and may be revised upon filing our Quarterly Report on Form 10-Q with the Securities and Exchange Commission (“SEC”). More information on our results of operations for the three months ended February 29, 2024 will be provided upon filing our Quarterly Report on Form 10-Q with the SEC, which we expect to file on or about April 5, 2024.
This press release contains certain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current views and include statements about our future and statements that are not historical facts. These forward-looking statements are usually preceded by the words “should,” “expect,” “intend,” “may,” “will,” "would," or similar expressions. Forward-looking statements may contain expectations regarding revenues, earnings, operations, and other results, and may include statements of future performance, plans, and objectives. Forward-looking statements may also include statements pertaining to our strategies for future development of our businesses and products. Forward-looking statements represent only our belief regarding future events, many of which by their nature are inherently uncertain. It is possible that the actual results may differ, possibly materially, from the anticipated results indicated in these forward-looking statements. Information regarding important factors, including Risk Factors that could cause actual results to differ, perhaps materially, from those in our forward-looking statements is contained in reports we file with the SEC. You should read and interpret any forward-looking statement together with reports we file with the SEC. We undertake no obligation to update or revise any such forward-looking statement to reflect subsequent circumstances.
Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy will be profitable or equal the corresponding indicated performance level(s).
Selected Financial Information
(Amounts in Thousands) (Unaudited)
Quarter Ended
February 29, 2024
November 30, 2023
February 28, 202314
Net revenues by source:
Advisory
$
338,567
$
312,310
$
297,178
Equity underwriting
209,303
132,158
125,445
Debt underwriting
129,194
129,436
80,175
Total underwriting
338,497
261,594
205,620
Other investment banking
62,608
2,842
60,046
Total Investment Banking
739,672
576,746
562,844
Equities
359,138
271,477
305,294
Fixed income
352,478
209,774
348,994
Total Capital Markets
711,616
481,251
654,288
Total Investment Banking and Capital Markets Net revenues5
1,451,288
1,057,997
1,217,132
Asset management fees and revenues6
59,657
18,695
42,696
Investment return
117,640
62,892
27,434
Other investments, inclusive of net interest15
111,098
73,627
7,423
Allocated net interest4
(15,012
)
(14,568
)
(9,098
)
Total Asset Management Net revenues
273,383
140,646
68,455
Other
13,532
(1,437
)
(2,095
)
Total Net revenues by source
$
1,738,203
$
1,197,206
$
1,283,492
Non-interest expenses:
Compensation and benefits
$
926,871
$
612,287
$
703,058
Floor brokerage and clearing fees
109,670
98,410
80,474
Underwriting costs
18,484
19,829
13,207
Technology and communications
137,512
122,128
113,385
Occupancy and equipment rental
28,153
26,630
27,315
Business development
57,651
55,649
36,838
Professional services
77,844
70,875
62,161
Depreciation and amortization
43,202
28,311
33,292
Cost of sales
34,671
23,287
2,168
Other
83,903
52,539
53,576
Total Non-interest expenses
$
1,517,961
$
1,109,945
$
1,125,474
Financial Data and Metrics
(Unaudited)
Quarter Ended
February 29,
2024
November 30,
2023
February 28,
2023
Other Data:
Number of trading days
61
63
60
Number of trading loss days7
3
7
3
Average VaR (in millions)8
$
15.13
$
12.36
$
12.85
(Amounts in Millions, Except Other Data) (Unaudited)
Quarter Ended
February 29,
2024
November 30,
2023
February 28,
2023
Financial position:9
Total assets
$
60,933
$
57,905
$
52,033
Cash and cash equivalents
7,616
8,526
7,509
Financial instruments owned
23,212
21,747
21,083
Level 3 financial instruments owned10
589
681
819
Goodwill and intangible assets
2,064
2,045
1,873
Total equity
9,867
9,802
9,811
Total shareholders' equity
9,780
9,710
9,755
Tangible shareholders' equity11
7,716
7,665
7,882
Other data and financial ratios:
Leverage ratio9, 12
6.2
5.9
5.3
Tangible gross leverage ratio9, 13
7.6
7.3
6.4
Number of employees at period end
7,745
7,564
5,401
Number of employees excluding OpNet and Stratos at period end
5,790
5,661
5,401
Components of Numerators and Denominators for Earnings Per Common Share
The numerators and denominators used to calculate basic and diluted earnings per common share are as follows (in thousands, except per share amounts):
Three Months Ended
February 29, 2024
February 28, 2023
Numerator for earnings per common share from continuing operations:
Net earnings from continuing operations
$
164,283
$
129,324
Less: Net losses attributable to noncontrolling interests
(6,452
)
(6,311
)
Mandatorily redeemable convertible preferred share dividends
—
(2,016
)
Allocation of earnings to participating securities
(14,189
)
(528
)
Net earnings from continuing operations attributable to common shareholders for basic earnings per share
$
156,546
$
133,091
Adjustment to allocation of earnings to participating securities related to diluted shares
—
(54
)
Mandatorily redeemable convertible preferred share dividends
—
2,016
Net earnings from continuing operations attributable to common shareholders for diluted earnings per share
$
156,546
$
135,053
Numerator for earnings per common share from discontinued operations:
Net losses from discontinued operations, net of income tax benefit
$
(7,891
)
$
—
Less: Net losses attributable to noncontrolling interests
(986
)
—
Net losses from discontinued operations attributable to common shareholders for basic and diluted earnings per share
$
(6,905
)
$
—
Net earnings attributable to common shareholders for basic earnings per share
$
149,641
$
133,091
Net earnings attributable to common shareholders for diluted earnings per share
$
149,641
$
135,053
Denominator for earnings per common share:
Weighted average common shares outstanding
211,535
227,543
Weighted average shares of restricted stock outstanding with future service required
(2,402
)
(2,128
)
Weighted average restricted stock units outstanding with no future service required
10,769
13,686
Weighted average common shares
219,902
239,101
Stock options and other share-based awards
2,915
2,303
Senior executive compensation plan restricted stock unit awards
2,351
2,917
Mandatorily redeemable convertible preferred shares
—
3,774
Weighted average diluted common shares
225,168
248,095
Earnings (losses) per common share:
Basic from continuing operations
$
0.71
$
0.56
Basic from discontinued operations
(0.03
)
—
Basic
$
0.68
$
0.56
Diluted from continuing operations
$
0.69
$
0.54
Diluted from discontinued operations
(0.03
)
—
Diluted
$
0.66
$
0.54
Notes
Non-GAAP Reconciliations
The following tables reconcile our non-GAAP financial measures to their respective U.S. GAAP financial measures. Management believes such non-GAAP financial measures are useful to investors as they allow them to view our results through the eyes of management, while facilitating a comparison across historical periods. These measures should not be considered a substitute for, or superior to, measures prepared in accordance with U.S. GAAP.
Annualized Return on Adjusted Tangible Equity Reconciliation
Three Months Ended
(in thousands)
February 29, 2024
February 28, 2023
Net earnings attributable to common shareholders (GAAP)
$
149,641
$
133,619
Intangible amortization and impairment expense, net of tax
4,147
2,027
Adjusted net earnings to common shareholders (non-GAAP)
153,788
135,646
Preferred stock dividends
14,189
2,016
Adjusted net earnings to total shareholders (non-GAAP)
$
167,977
$
137,662
Annualized adjusted net earnings to total shareholders (non-GAAP)
$
671,908
$
550,648
Net earnings impact for net losses from discontinued operations, net of noncontrolling interests
6,905
—
Adjusted net earnings to total shareholders from continuing operations (non-GAAP)
174,882
137,662
Annualized adjusted net earnings to total shareholders from continuing operations (non-GAAP)
699,528
550,648
Net earnings impact for Weiss losses
39,393
—
Adjusted net earnings to total shareholders from continuing operations excluding Weiss losses (non-GAAP)
214,275
137,662
Annualized adjusted net earnings to total shareholders from continuing operations excluding Weiss losses (non-GAAP)
857,100
550,648
November 30,
2023
2022
Shareholders' equity (GAAP)
$
9,709,827
$
10,232,846
Less: Intangible assets, net and goodwill
(2,044,776
)
(1,875,576
)
Less: Deferred tax asset, net
(458,343
)
(387,862
)
Less: Weighted average impact of dividends and share repurchases
(67,475
)
(327,445
)
Adjusted tangible shareholders' equity (non-GAAP)
$
7,139,233
$
7,641,963
Annualized return on adjusted tangible total equity (non-GAAP)
9.4
%
7.2
%
Annualized adjusted net earnings to shareholders on adjusted tangible shareholders' equity from continuing operations (non-GAAP)
9.8
%
7.2
%
Annualized adjusted net earnings to shareholders on adjusted tangible shareholders' equity from continuing operations excluding Weiss losses (non-GAAP)
12.0
%
7.2
%
Adjusted Earnings per Diluted Common Share Reconciliation
Three Months Ended
(in thousands, except per share amounts)
February 29, 2024
Net earnings attributable to common shareholders (GAAP)
$
149,641
Net earnings impact for discontinued operations
6,905
Net earnings impact for Weiss losses
39,393
Adjusted net earnings (non-GAAP)
$
195,939
Weighted average diluted common shares
225,168
Earnings per diluted common share (GAAP)
$
0.66
Adjusted earnings per diluted common share from continuing operations excluding Weiss losses (non-GAAP)
$
0.87
Adjusted Tangible Book Value and Fully Diluted Shares Outstanding GAAP Reconciliation
The table below reconciles our book value (shareholders' equity) to adjusted tangible book value and our common shares outstanding to fully diluted shares outstanding (in thousands, except per share amounts):
February 29, 2024
Book value (GAAP)
$
9,780,097
Stock options(1)
114,939
Intangible assets, net and goodwill
(2,063,956
)
Adjusted tangible book value (non-GAAP)
$
7,831,080
Common shares outstanding (GAAP)
212,001
Preferred shares
21,000
Restricted stock units ("RSUs")
14,062
Stock options(1)
5,065
Other
1,386
Fully diluted shares outstanding (non-GAAP)(2)
253,514
Book value per common share outstanding
$
46.13
Tangible book value per fully diluted share outstanding (non-GAAP)
$
30.89
(1)
Stock options added to book value are equal to the total number of stock options outstanding as of February 29, 2024 of 5.1 million multiplied by the weighted average exercise price of $22.69 on February 29, 2024. Stock options added to fully diluted shares are equal to the total stock options outstanding on February 29, 2024.
(2)
Fully diluted shares outstanding include vested and unvested RSUs as well as the target number of RSUs issuable under the senior executive compensation plans until the performance period is complete. Fully diluted shares outstanding also include all stock options and the impact of mandatorily convertible preferred shares if-converted to common shares.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240327604862/en/
Jonathan Freedman 212.778.8913
1 Year Jefferies Financial Chart |
1 Month Jefferies Financial Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions