All-Time Document Quarterly and Annual Outcomes at Jefferies Group
Quarterly Money Dividend Improve of 33% to $0.20 per Jefferies Widespread Share
Share Repurchase Authorization Elevated to $250 million
Jefferies Monetary Group Inc. (NYSE: JEF) right this moment introduced its monetary outcomes for the three and twelve month intervals ended November 30, 2020. As well as, the Jefferies Board of Administrators declared a quarterly money dividend equal to $0.20 per Jefferies widespread share payable on February 26, 2021 to file holders of Jefferies widespread shares on February 12, 2021. The Jefferies Board of Administrators additionally elevated the Firm’s inventory buyback authorization by $193 million to a complete of $250 million. We anticipate to file our Type 10-Ok on or about January 28, 2021.
Highlights for the three months ended November 30, 2020:
-
Jefferies Group LLC recorded file quarterly internet revenues of $1,609 million, file pre-tax earnings of $406 million, file internet earnings of $307 million and return on tangible fairness of 26.2%1
-
Document quarterly Funding Banking internet revenues of $916 million, together with file Fairness Underwriting internet revenues of $341 million, file Advisory internet revenues of $357 million, and file Debt Underwriting internet revenues of $209 million
-
Mixed Capital Markets internet revenues of $590 million; file quarterly Equities internet revenues of $327 million and Mounted Revenue internet revenues of $263 million
-
Asset Administration revenues (earlier than allotted internet curiosity2) of $83 million
-
-
Service provider Banking recorded pre-tax earnings of $33 million, reflecting file quarterly outcomes from Idaho Timber and mark-to-market will increase within the worth of a number of of our investments in public firms
-
Web earnings attributable to Jefferies Monetary Group widespread shareholders was $307 million, or $1.11 per diluted share
-
We repurchased 9.5 million shares for $193 million, or a mean worth of $20.34 per share; 249.8 million shares have been excellent and 273.6 million shares have been excellent on a totally diluted foundation3 at November 30, 2020; Jefferies e book worth per share was $37.65 and tangible e book worth per totally diluted share4 was $27.38 on the finish of the fourth quarter
-
Jefferies Monetary Group had guardian firm liquidity of $1.9 billion at November 30, 2020. Jefferies Group had a file liquidity buffer of $8.6 billion of money and unencumbered liquid collateral at November 30, 2020, which represented 18% of its whole stability sheet.
Highlights for the twelve months ended November 30, 2020:
-
Jefferies Group LLC recorded file twelve months internet revenues of $5,197 million, file pre-tax earnings of $1,177 million, file internet earnings of $875 million and return on tangible fairness of 20.4%5
-
Document twelve months Funding Banking internet revenues of $2,398 million, together with file Advisory internet revenues of $1,054 million, file Fairness Underwriting internet revenues of $902 million and Debt Underwriting internet revenues of $546 million
-
Document mixed twelve months Capital Markets internet revenues of $2,470 million, together with file Equities internet revenues of $1,129 million and file Mounted Revenue internet revenues of $1,341 million
-
Document Asset Administration revenues (earlier than allotted internet curiosity2) of $257 million
-
-
Service provider Banking pre-tax lack of $25 million, reflecting file efficiency from Idaho Timber, a constructive contribution from Vitesse, and the beforehand reported acquire of about $60 million from efficient short-term hedges within the first quarter, greater than offset by $145 million in beforehand reported non-cash expenses within the first half of 2020 associated to write-downs of our investments in WeWork, JETX and a number of the actual property property of HomeFed
-
Web earnings attributable to Jefferies Monetary Group widespread shareholders of $770 million, or $2.65 per diluted share
-
Repurchases of 42.1 million shares for $813 million, or a mean worth of $19.29 per share; along with $161 million in dividends, an combination of $974 million was returned to shareholders in 2020; over the previous three fiscal years, Jefferies has returned to shareholders practically $3.4 billion
Wealthy Handler, our CEO, and Brian Friedman, our President, stated:
“The outcomes for our fourth quarter and full yr 2020 are excellent and testomony to the relentless dedication and tireless effort of your complete Jefferies crew. We gained market share and have established Jefferies at one more increased stage of accomplishment and potential. We’re optimistic that our momentum and power can be sustained in 2021.”
Please seek advice from the Jefferies Monetary Group Annual Letter from our CEO and President for broader perspective on 2020, in addition to our technique and outlook.
* * * *
Quantities herein pertaining to November 30, 2020 signify a preliminary estimate as of the date of this earnings launch and could also be revised upon submitting our Annual Report on Type 10-Ok with the Securities and Change Fee (“SEC”). Extra info on our outcomes of operations for the three and twelve month intervals ended November 30, 2020 can be offered upon submitting our Annual Report on Type 10-Ok with the SEC.
This press launch comprises “forward-looking statements” throughout the that means of the secure harbor provisions of Part 27A of the Securities Act of 1933 and Part 21E of the Securities Change Act of 1934. Ahead-looking statements embrace statements about our future and statements that aren’t historic details. These forward-looking statements are normally preceded by the phrases “ought to,” “anticipate,” “intend,” “might,” “will,” or related expressions. Ahead-looking statements might include expectations concerning revenues, earnings, operations, and different outcomes, and should embrace statements of future efficiency, plans, and goals. Ahead-looking statements additionally embrace statements pertaining to our methods for future growth of our companies and merchandise. Ahead-looking statements signify solely our perception concerning future occasions, lots of which by their nature are inherently unsure. It’s attainable that the precise outcomes might differ, presumably materially, from the anticipated outcomes indicated in these forward-looking statements. Data concerning vital elements, together with Threat Elements that would trigger precise outcomes to vary, maybe materially, from these in our forward-looking statements is contained in reviews we file with the SEC. You need to learn and interpret any forward-looking assertion along with reviews we file with the SEC.
Previous efficiency might not be indicative of future outcomes. Various kinds of investments contain various levels of threat. Subsequently, it shouldn’t be assumed that future efficiency of any particular funding or funding technique can be worthwhile or equal the corresponding indicated efficiency stage(s).
|
___________________ |
||||
|
1 |
Return on tangible fairness (a non-GAAP monetary measure) equals our three months ended November 30, 2020 annualized internet earnings attributable to Jefferies Group LLC divided by our tangible Jefferies Group LLC member’s fairness (a non-GAAP monetary measure) of $4,682 million at August 31, 2020. Tangible Jefferies Group LLC member’s fairness at August 31, 2020 equals Jefferies Group LLC member’s fairness of $6,488 million much less goodwill and identifiable intangibles property of $1,806 million. |
|||
|
2 |
Allotted internet curiosity represents the allocation of a ratable portion of Jefferies Group LLC’s long-term debt curiosity expense to Jefferies Group LLC’s Asset Administration reportable section, internet of curiosity earnings on Jefferies Group LLC’s Money and money equivalents and different sources of liquidity, which allocation is in step with Jefferies Group LLC’s coverage of allocating such gadgets to all its enterprise traces. Consult with Jefferies Group LLC’s abstract of Web Revenues by Supply on pages 9 and 10. |
|||
|
3 |
Shares excellent on a totally diluted foundation, a non-GAAP measure, is outlined as Jefferies Monetary Group’s widespread shares excellent plus restricted inventory models and different shares. Consult with schedule on web page 14 for reconciliation to U.S. GAAP quantities. |
|||
|
4 |
Tangible e book worth per totally diluted share, a non-GAAP measure, is outlined as Tangible e book worth divided by shares excellent on a totally diluted foundation. Tangible e book worth, a non-GAAP measure, is outlined as Jefferies Monetary Group shareholders’ fairness (e book worth) much less Intangible property, internet and goodwill. Shares excellent on a totally diluted foundation, a non-GAAP measure, is outlined as Jefferies Monetary Group’s widespread shares excellent plus restricted inventory models and different shares. Consult with schedule on web page 14 for reconciliation to U.S. GAAP quantities. |
|||
|
5 |
Return on tangible fairness (a non-GAAP monetary measure) equals our twelve months ended November 30, 2020 internet earnings attributable to Jefferies Group LLC divided by our tangible Jefferies Group LLC member’s fairness (a non-GAAP monetary measure) of $4,311 million at November 30, 2019. Tangible Jefferies Group LLC member’s fairness at November 30, 2019 equals Jefferies Group LLC member’s fairness of $6,125 million much less goodwill and identifiable intangibles property of $1,814 million. |
|||
|
Abstract for Jefferies Monetary Group Inc. and Subsidiaries (In hundreds, besides per share quantities) (Unaudited) |
|||||||||||||||
|
Three Months Ended |
Three Months Ended |
Twelve Months Ended |
Twelve Months Ended |
||||||||||||
|
Web revenues |
$ |
1,860,787 |
$ |
1,106,098 |
$ |
6,010,874 |
$ |
3,892,976 |
|||||||
|
Revenue earlier than earnings taxes and earnings (loss) associated to related firms |
$ |
427,500 |
$ |
151,320 |
$ |
1,142,566 |
$ |
275,613 |
|||||||
|
Revenue (loss) associated to related firms |
(5,960) |
81,229 |
(75,483) |
202,995 |
|||||||||||
|
Revenue earlier than earnings taxes |
421,540 |
232,549 |
1,067,083 |
478,608 |
|||||||||||
|
Revenue tax provision (profit) |
113,535 |
38,671 |
298,673 |
(483,955) |
|||||||||||
|
Web earnings |
308,005 |
193,878 |
768,410 |
962,563 |
|||||||||||
|
Web loss attributable to the noncontrolling pursuits |
238 |
2,606 |
5,271 |
1,847 |
|||||||||||
|
Web loss attributable to the redeemable noncontrolling pursuits |
428 |
333 |
1,558 |
286 |
|||||||||||
|
Most well-liked inventory dividends |
(1,404) |
(1,276) |
(5,634) |
(5,103) |
|||||||||||
|
Web earnings attributable to Jefferies Monetary Group Inc. widespread shareholders |
$ |
307,267 |
$ |
195,541 |
$ |
769,605 |
$ |
959,593 |
|||||||
|
Fundamental earnings per widespread share attributable to Jefferies Monetary Group Inc. widespread shareholders: |
|||||||||||||||
|
Web earnings |
$ |
1.12 |
$ |
0.63 |
$ |
2.68 |
$ |
3.07 |
|||||||
|
Variety of shares in calculation |
272,901 |
310,266 |
285,693 |
310,694 |
|||||||||||
|
Diluted earnings per widespread share attributable to Jefferies Monetary Group Inc. widespread shareholders: |
|||||||||||||||
|
Web earnings |
$ |
1.11 |
$ |
0.62 |
$ |
2.65 |
$ |
3.03 |
|||||||
|
Variety of shares in calculation |
277,342 |
316,566 |
290,490 |
317,032 |
|||||||||||
A abstract of outcomes for the three months ended November 30, 2020 is as follows (in hundreds):
|
Funding |
Asset |
Service provider |
Company |
Father or mother |
Consolidation |
Complete |
|||||||||||||||||||||
|
Web revenues |
$ |
1,537,362 |
$ |
88,977 |
$ |
231,852 |
$ |
1,350 |
$ |
— |
$ |
1,246 |
$ |
1,860,787 |
|||||||||||||
|
Bills: |
|||||||||||||||||||||||||||
|
Compensation and advantages |
842,513 |
30,152 |
25,336 |
13,365 |
— |
— |
911,366 |
||||||||||||||||||||
|
Value of gross sales (2) |
59,968 |
5,221 |
102,717 |
— |
— |
— |
167,906 |
||||||||||||||||||||
|
Curiosity expense |
— |
— |
6,972 |
— |
13,672 |
— |
20,644 |
||||||||||||||||||||
|
Depreciation and amortization |
21,012 |
471 |
16,735 |
865 |
— |
— |
39,083 |
||||||||||||||||||||
|
Promoting, basic and different bills |
239,795 |
9,328 |
41,138 |
6,513 |
— |
(2,486) |
294,288 |
||||||||||||||||||||
|
Complete bills |
1,163,288 |
45,172 |
192,898 |
20,743 |
13,672 |
(2,486) |
1,433,287 |
||||||||||||||||||||
|
Revenue (loss) earlier than earnings taxes and loss associated to related firms |
374,074 |
43,805 |
38,954 |
(19,393) |
(13,672) |
3,732 |
427,500 |
||||||||||||||||||||
|
Loss associated to related firms |
— |
— |
(5,960) |
— |
— |
— |
(5,960) |
||||||||||||||||||||
|
Revenue (loss) earlier than earnings taxes |
$ |
374,074 |
$ |
43,805 |
$ |
32,994 |
$ |
(19,393) |
$ |
(13,672) |
$ |
3,732 |
421,540 |
||||||||||||||
|
Revenue tax provision |
113,535 |
||||||||||||||||||||||||||
|
Web earnings |
$ |
308,005 |
|||||||||||||||||||||||||
A abstract of outcomes for the three months ended November 30, 2019 is as follows (in hundreds):
|
Funding |
Asset |
Service provider |
Company |
Father or mother |
Consolidation |
Complete |
|||||||||||||||||||||
|
Web revenues |
$ |
761,104 |
$ |
(10,554) |
$ |
343,388 |
$ |
10,699 |
$ |
— |
$ |
1,461 |
$ |
1,106,098 |
|||||||||||||
|
Bills: |
|||||||||||||||||||||||||||
|
Compensation and advantages |
409,899 |
14,556 |
17,129 |
16,273 |
— |
— |
457,857 |
||||||||||||||||||||
|
Value of gross sales (2) |
53,713 |
6,314 |
86,532 |
— |
— |
— |
146,559 |
||||||||||||||||||||
|
Curiosity expense |
— |
— |
8,608 |
— |
8,750 |
— |
17,358 |
||||||||||||||||||||
|
Depreciation and amortization |
20,877 |
570 |
19,901 |
923 |
— |
— |
42,271 |
||||||||||||||||||||
|
Promoting, basic and different bills |
213,457 |
11,010 |
51,557 |
14,963 |
— |
(254) |
290,733 |
||||||||||||||||||||
|
Complete bills |
697,946 |
32,450 |
183,727 |
32,159 |
8,750 |
(254) |
954,778 |
||||||||||||||||||||
|
Revenue (loss) earlier than earnings taxes and earnings (loss) associated to related firms |
63,158 |
(43,004) |
159,661 |
(21,460) |
(8,750) |
1,715 |
151,320 |
||||||||||||||||||||
|
Revenue (loss) associated to related firms |
— |
(133) |
81,294 |
— |
— |
68 |
81,229 |
||||||||||||||||||||
|
Revenue (loss) earlier than earnings taxes |
$ |
63,158 |
$ |
(43,137) |
$ |
240,955 |
$ |
(21,460) |
$ |
(8,750) |
$ |
1,783 |
232,549 |
||||||||||||||
|
Revenue tax provision |
38,671 |
||||||||||||||||||||||||||
|
Web earnings |
$ |
193,878 |
|||||||||||||||||||||||||
|
(1) |
We now current Asset Administration as a separate reporting section. Prior yr quantities have been reclassified to adapt to present section disclosure. |
|
|
(2) |
Consists of Flooring brokerage and clearing charges. |
A abstract of outcomes for the twelve months ended November 30, 2020 is as follows (in hundreds):
|
Funding |
Asset |
Service provider |
Company |
Father or mother |
Consolidation |
Complete |
|||||||||||||||||||||
|
Web revenues |
$ |
4,989,138 |
$ |
235,255 |
$ |
764,460 |
$ |
13,258 |
$ |
— |
$ |
8,763 |
$ |
6,010,874 |
|||||||||||||
|
Bills: |
|||||||||||||||||||||||||||
|
Compensation and advantages |
2,735,080 |
89,527 |
77,072 |
39,184 |
— |
— |
2,940,863 |
||||||||||||||||||||
|
Value of gross sales (2) |
241,083 |
25,509 |
338,588 |
— |
— |
— |
605,180 |
||||||||||||||||||||
|
Curiosity expense |
— |
— |
31,425 |
— |
53,445 |
— |
84,870 |
||||||||||||||||||||
|
Depreciation and amortization |
82,334 |
5,247 |
67,362 |
3,496 |
— |
— |
158,439 |
||||||||||||||||||||
|
Promoting, basic and different bills |
810,753 |
46,045 |
199,128 |
26,197 |
— |
(3,167) |
1,078,956 |
||||||||||||||||||||
|
Complete bills |
3,869,250 |
166,328 |
713,575 |
68,877 |
53,445 |
(3,167) |
4,868,308 |
||||||||||||||||||||
|
Revenue (loss) earlier than earnings taxes and loss associated to related firms |
1,119,888 |
68,927 |
50,885 |
(55,619) |
(53,445) |
11,930 |
1,142,566 |
||||||||||||||||||||
|
Loss associated to related firms |
— |
— |
(75,483) |
— |
— |
— |
(75,483) |
||||||||||||||||||||
|
Revenue (loss) earlier than earnings taxes |
$ |
1,119,888 |
$ |
68,927 |
$ |
(24,598) |
$ |
(55,619) |
$ |
(53,445) |
$ |
11,930 |
1,067,083 |
||||||||||||||
|
Revenue tax provision |
298,673 |
||||||||||||||||||||||||||
|
Web earnings |
$ |
768,410 |
|||||||||||||||||||||||||
A abstract of outcomes for the twelve months ended November 30, 2019 is as follows (in hundreds):
|
Funding |
Asset |
Service provider |
Company |
Father or mother |
Consolidation |
Complete |
|||||||||||||||||||||
|
Web revenues |
$ |
3,035,988 |
$ |
84,894 |
$ |
735,213 |
$ |
32,833 |
$ |
— |
$ |
4,048 |
$ |
3,892,976 |
|||||||||||||
|
Bills: |
|||||||||||||||||||||||||||
|
Compensation and advantages |
1,641,814 |
63,305 |
61,767 |
58,005 |
— |
— |
1,824,891 |
||||||||||||||||||||
|
Value of gross sales (2) |
202,425 |
20,715 |
319,641 |
— |
— |
— |
542,781 |
||||||||||||||||||||
|
Curiosity expense |
— |
— |
34,129 |
— |
53,048 |
— |
87,177 |
||||||||||||||||||||
|
Depreciation and amortization |
77,549 |
2,042 |
69,805 |
3,475 |
— |
— |
152,871 |
||||||||||||||||||||
|
Promoting, basic and different bills |
767,150 |
40,432 |
162,832 |
39,820 |
— |
(591) |
1,009,643 |
||||||||||||||||||||
|
Complete bills |
2,688,938 |
126,494 |
648,174 |
101,300 |
53,048 |
(591) |
3,617,363 |
||||||||||||||||||||
|
Revenue (loss) earlier than earnings taxes and earnings associated to related firms |
347,050 |
(41,600) |
87,039 |
(68,467) |
(53,048) |
4,639 |
275,613 |
||||||||||||||||||||
|
Revenue associated to related firms |
— |
474 |
202,453 |
— |
— |
68 |
202,995 |
||||||||||||||||||||
|
Revenue (loss) earlier than earnings taxes |
$ |
347,050 |
$ |
(41,126) |
$ |
289,492 |
$ |
(68,467) |
$ |
(53,048) |
$ |
4,707 |
478,608 |
||||||||||||||
|
Revenue tax profit |
(483,955) |
||||||||||||||||||||||||||
|
Web earnings |
$ |
962,563 |
|||||||||||||||||||||||||
|
(1) |
We now current Asset Administration as a separate reporting section. Prior yr quantities have been reclassified to adapt to present section disclosure. |
|
|
(2) |
Consists of Flooring brokerage and clearing charges. |
The next monetary tables present info for the outcomes of Jefferies Group LLC and must be learn together with Jefferies Group LLC’s Annual Report on Type 10-Ok for the yr ended November 30, 2019. Quantities herein pertaining to November 30, 2020 signify a preliminary estimate as of the date of this earnings launch and could also be revised in Jefferies Group LLC’s Annual Report on Type 10-Ok for the yr ended November 30, 2020.
|
Jefferies Group LLC and Subsidiaries |
||||||||||||
|
Consolidated Statements of Earnings |
||||||||||||
|
(Quantities in Hundreds) |
||||||||||||
|
(Unaudited) |
||||||||||||
|
Quarter Ended |
||||||||||||
|
November 30, 2020 |
August 31, 2020 |
November 30, 2019 |
||||||||||
|
Revenues: |
||||||||||||
|
Commissions and different charges |
$ |
196,143 |
$ |
204,313 |
$ |
182,466 |
||||||
|
Principal transactions |
467,163 |
560,665 |
137,256 |
|||||||||
|
Funding banking |
906,164 |
615,837 |
400,513 |
|||||||||
|
Asset administration charges and revenues |
5,626 |
6,772 |
3,935 |
|||||||||
|
Curiosity |
… 191,646 |
195,960 |
333,507 |
|||||||||
|
Different |
43,652 |
11,526 |
15,859 |
|||||||||
|
Complete revenues |
1,810,394 |
1,595,073 |
1,073,536 |
|||||||||
|
Curiosity expense |
201,424 |
211,629 |
325,734 |
|||||||||
|
Web revenues |
1,608,970 |
1,383,444 |
747,802 |
|||||||||
|
Non-interest bills: |
||||||||||||
|
Compensation and advantages |
860,243 |
725,555 |
422,548 |
|||||||||
|
Non-compensation bills: |
||||||||||||
|
Flooring brokerage and clearing charges |
65,189 |
66,744 |
58,773 |
|||||||||
|
Expertise and communications |
99,417 |
102,635 |
87,931 |
|||||||||
|
Occupancy and gear rental |
28,229 |
27,053 |
31,885 |
|||||||||
|
Enterprise growth |
21,650 |
7,637 |
34,728 |
|||||||||
|
Skilled providers |
52,056 |
41,173 |
45,296 |
|||||||||
|
Underwriting prices |
36,551 |
29,071 |
14,617 |
|||||||||
|
Different |
39,828 |
20,175 |
28,153 |
|||||||||
|
Complete non-compensation bills |
342,920 |
294,488 |
301,383 |
|||||||||
|
Complete non-interest bills |
1,203,163 |
1,020,043 |
723,931 |
|||||||||
|
Earnings earlier than earnings taxes |
405,807 |
363,401 |
23,871 |
|||||||||
|
Revenue tax expense |
98,893 |
95,870 |
495 |
|||||||||
|
Web earnings |
306,914 |
267,531 |
23,376 |
|||||||||
|
Web loss attributable to noncontrolling pursuits |
(200) |
(531) |
(1,784) |
|||||||||
|
Web earnings attributable to Jefferies Group LLC |
$ |
307,114 |
$ |
268,062 |
$ |
25,160 |
||||||
|
Pre-tax working margin |
25.2 |
% |
26.3 |
% |
3.2 |
% |
||||||
|
Efficient tax fee |
24.4 |
% |
26.4 |
% |
2.1 |
% |
||||||
|
Jefferies Group LLC and Subsidiaries |
||||||||
|
Consolidated Statements of Earnings |
||||||||
|
(Quantities in Hundreds) |
||||||||
|
(Unaudited) |
||||||||
|
Twelve Months Ended |
||||||||
|
November 30, 2020 |
November 30, 2019 |
|||||||
|
Revenues: |
||||||||
|
Commissions and different charges |
$ |
823,258 |
$ |
676,309 |
||||
|
Principal transactions |
1,867,013 |
769,258 |
||||||
|
Funding banking |
2,501,494 |
1,528,729 |
||||||
|
Asset administration charges and revenues |
28,694 |
20,285 |
||||||
|
Curiosity |
894,215 |
1,496,529 |
||||||
|
Different |
37,632 |
93,422 |
||||||
|
Complete revenues |
6,152,306 |
4,584,532 |
||||||
|
Curiosity expense |
954,829 |
1,472,002 |
||||||
|
Web revenues |
5,197,477 |
3,112,530 |
||||||
|
Non-interest bills: |
||||||||
|
Compensation and advantages |
2,792,575 |
1,684,054 |
||||||
|
Non-compensation bills: |
||||||||
|
Flooring brokerage and clearing charges |
270,132 |
227,471 |
||||||
|
Expertise and communications |
386,830 |
335,395 |
||||||
|
Occupancy and gear rental |
107,180 |
119,472 |
||||||
|
Enterprise growth |
67,603 |
138,158 |
||||||
|
Skilled providers |
179,888 |
162,668 |
||||||
|
Underwriting prices |
95,636 |
50,662 |
||||||
|
Different |
120,179 |
69,981 |
||||||
|
Complete non-compensation bills |
1,227,448 |
1,103,807 |
||||||
|
Complete non-interest bills |
4,020,023 |
2,787,861 |
||||||
|
Earnings earlier than earnings taxes |
1,177,454 |
324,669 |
||||||
|
Revenue tax expense |
302,748 |
80,284 |
||||||
|
Web earnings |
874,706 |
244,385 |
||||||
|
Web loss attributable to noncontrolling pursuits |
(4,597) |
(1,644) |
||||||
|
Web earnings attributable to Jefferies Group LLC |
$ |
879,303 |
$ |
246,029 |
||||
|
Pre-tax working margin |
22.7 |
% |
10.4 |
% |
||||
|
Efficient tax fee |
25.7 |
% |
24.7 |
% |
||||
|
Jefferies Group LLC and Subsidiaries |
||||||||||||
|
Chosen Statistical Data |
||||||||||||
|
(Quantities in Hundreds, Besides Different Knowledge) |
||||||||||||
|
(Unaudited) |
||||||||||||
|
Quarter Ended |
||||||||||||
|
November 30, |
August 31, |
November 30, |
||||||||||
|
Web Revenues by Supply: |
||||||||||||
|
Advisory |
$ |
356,823 |
$ |
171,438 |
$ |
195,035 |
||||||
|
Fairness underwriting |
340,561 |
305,380 |
105,119 |
|||||||||
|
Debt underwriting |
208,780 |
139,019 |
100,359 |
|||||||||
|
Complete underwriting |
549,341 |
444,399 |
205,478 |
|||||||||
|
Different funding banking |
9,446 |
(27,013) |
(7,501) |
|||||||||
|
Complete funding banking |
915,610 |
588,824 |
393,012 |
|||||||||
|
Equities |
327,314 |
318,824 |
200,128 |
|||||||||
|
Mounted earnings |
263,119 |
336,347 |
163,016 |
|||||||||
|
Complete capital markets |
590,433 |
655,171 |
363,144 |
|||||||||
|
Different |
31,319 |
30,120 |
4,948 |
|||||||||
|
Complete Funding Banking and Capital Markets (1) (2) |
1,537,362 |
1,274,115 |
761,104 |
|||||||||
|
Asset administration charges and revenues |
5,626 |
6,772 |
3,935 |
|||||||||
|
Funding return (3) (4) |
77,790 |
115,556 |
(7,637) |
|||||||||
|
Allotted internet curiosity (3) (5) |
(11,808) |
(12,999) |
(9,600) |
|||||||||
|
Complete Asset Administration |
71,608 |
109,329 |
(13,302) |
|||||||||
|
Web Revenues |
$ |
1,608,970 |
$ |
1,383,444 |
$ |
747,802 |
||||||
|
Different Knowledge: |
||||||||||||
|
Variety of buying and selling days |
63 |
65 |
63 |
|||||||||
|
Variety of buying and selling loss days |
3 |
8 |
10 |
|||||||||
|
Common firmwide VaR (in hundreds of thousands) (6) |
$ |
14.92 |
$ |
10.46 |
$ |
7.70 |
||||||
|
(1) |
Consists of internet curiosity revenues of $6.9 million, $3.3 million and $22.6 million for the quarters ended November 30, 2020, August 31, 2020 and November 30, 2019, respectively. |
|
|
(2) |
Allotted internet curiosity just isn’t individually disaggregated for Funding Banking and Capital Markets. This presentation is aligned to our Funding Banking and Capital Markets inner efficiency measurement. |
|
|
(3) |
Web revenues attributed to the Funding return in Jefferies Group LLC Asset Administration have been disaggregated to individually current Funding return and Allotted internet curiosity (see footnote 5 beneath). This disaggregation is meant to extend transparency and to make clearer precise Funding return. We consider that aggregating Funding return and Allotted internet curiosity would obscure the Funding return by together with an quantity that’s distinctive to Jefferies Group LLC’s credit score spreads, debt maturity profile, capital construction, liquidity dangers and allocation strategies. |
|
|
(4) |
Consists of internet curiosity expense of $4.9 million, $6.0 million and $5.2 million for the quarters ended November 30, 2020, August 31, 2020 and November 30, 2019, respectively. |
|
|
(5) |
Allotted internet curiosity represents the allocation of Jefferies Group LLC’s long-term debt curiosity expense to Jefferies Group LLC’s Asset Administration, internet of curiosity earnings on Jefferies Group LLC’s Money and money equivalents and different sources of liquidity (seek advice from web page 11). |
|
|
(6) |
VaR estimates the potential loss in worth of Jefferies Group LLC’s buying and selling positions on account of adversarial market actions over a one-day time horizon with a 95% confidence stage. For an extra dialogue of the calculation of VaR, see “Worth-at-Threat” in Half II, Merchandise 7 “Administration’s Dialogue and Evaluation” in Jefferies Group LLC’s Annual Report on Type 10-Ok for the yr ended November 30, 2019. |
|
Jefferies Group LLC and Subsidiaries |
||||||||
|
Chosen Statistical Data |
||||||||
|
(Quantities in Hundreds, Besides Different Knowledge) |
||||||||
|
(Unaudited) |
||||||||
|
Twelve Months Ended |
||||||||
|
November 30, |
November 30, |
|||||||
|
Web Revenues by Supply: |
||||||||
|
Advisory |
$ |
1,053,500 |
$ |
767,421 |
||||
|
Fairness underwriting |
902,016 |
361,972 |
||||||
|
Debt underwriting |
545,978 |
407,336 |
||||||
|
Complete underwriting |
1,447,994 |
769,308 |
||||||
|
Different funding banking |
(103,330) |
(14,617) |
||||||
|
Complete funding banking |
2,398,164 |
1,522,112 |
||||||
|
Equities |
1,128,910 |
773,979 |
||||||
|
Mounted earnings |
1,340,792 |
681,362 |
||||||
|
Complete capital markets |
2,469,702 |
1,455,341 |
||||||
|
Different |
121,272 |
58,535 |
||||||
|
Complete Funding Banking and Capital Markets (1) (2) |
4,989,138 |
3,035,988 |
||||||
|
Asset administration charges and revenues |
28,694 |
20,285 |
||||||
|
Funding return (3) (4) |
228,129 |
96,805 |
||||||
|
Allotted internet curiosity (3) (5) |
(48,484) |
(40,548) |
||||||
|
Complete Asset Administration |
208,339 |
76,542 |
||||||
|
Web Revenues |
$ |
5,197,477 |
$ |
3,112,530 |
||||
|
Different Knowledge: |
||||||||
|
Variety of buying and selling days |
252 |
250 |
||||||
|
Variety of buying and selling loss days |
26 |
33 |
||||||
|
Common firmwide VaR (in hundreds of thousands) (6) |
$ |
10.51 |
$ |
8.79 |
||||
|
(1) |
Consists of internet curiosity revenues of $12.3 million and $74.0 million for the twelve months ended November 30, 2020 and 2019, respectively. |
|
|
(2) |
Allotted internet curiosity just isn’t individually disaggregated for Funding Banking and Capital Markets. This presentation is aligned to our Funding Banking and Capital Markets inner efficiency measurement. |
|
|
(3) |
Web revenues attributed to the Funding return in Jefferies Group LLC Asset Administration have been disaggregated to individually current Funding return and Allotted internet curiosity (see footnote 5 beneath). This disaggregation is meant to extend transparency and to make clearer precise Funding return. We consider that aggregating Funding return and Allotted internet curiosity would obscure the Funding return by together with an quantity that’s distinctive to Jefferies Group LLC’s credit score spreads, debt maturity profile, capital construction, liquidity dangers and allocation strategies. |
|
|
(4) |
Consists of internet curiosity bills of $24.5 million and $8.9 million for the twelve months ended November 30, 2020 and 2019, respectively. |
|
|
(5) |
Allotted internet curiosity represents the allocation of Jefferies Group LLC’s long-term debt curiosity expense to Jefferies Group LLC’s Asset Administration, internet of curiosity earnings on Jefferies Group LLC’s Money and money equivalents and different sources of liquidity (seek advice from web page 11). |
|
|
(6) |
VaR estimates the potential loss in worth of Jefferies Group LLC’s buying and selling positions on account of adversarial market actions over a one-day time horizon with a 95% confidence stage. For an extra dialogue of the calculation of VaR, see “Worth-at-Threat” in Half II, Merchandise 7 “Administration’s Dialogue and Evaluation” in Jefferies Group LLC’s Annual Report on Type 10-Ok for the yr ended November 30, 2019. |
|
Jefferies Group LLC and Subsidiaries |
|||||||||||
|
Monetary Highlights |
|||||||||||
|
(Quantities in Thousands and thousands, Besides The place Famous) |
|||||||||||
|
(Unaudited) |
|||||||||||
|
Quarter Ended |
|||||||||||
|
November 30, |
August 31, |
November 30, |
|||||||||
|
Monetary place: |
|||||||||||
|
Complete property (1) |
$ |
47,752 |
$ |
46,660 |
$ |
43,516 |
|||||
|
Common whole property for the interval (1) |
$ |
56,503 |
$ |
54,654 |
$ |
52,539 |
|||||
|
Common whole property much less goodwill and intangible property for the interval (1) |
$ |
54,807 |
$ |
52,965 |
$ |
50,727 |
|||||
|
Money and money equivalents (1) |
$ |
7,112 |
$ |
6,750 |
$ |
5,568 |
|||||
|
Money and money equivalents and different sources of liquidity (1) (2) |
$ |
8,605 |
$ |
8,089 |
$ |
6,918 |
|||||
|
Money and money equivalents and different sources of liquidity – % whole property (1) (2) |
18.0 |
% |
17.3 |
% |
15.9 |
% |
|||||
|
Money and money equivalents and different sources of liquidity – % whole property much less goodwill and intangible property (1) (2) |
18.7 |
% |
18.0 |
% |
16.6 |
% |
|||||
|
Monetary devices owned (1) |
$ |
17,686 |
$ |
17,556 |
$ |
16,363 |
|||||
|
Goodwill and intangible property (1) |
$ |
1,805 |
$ |
1,806 |
$ |
1,814 |
|||||
|
Proper-of-use property (1) (3) |
$ |
487 |
$ |
500 |
N/A |
||||||
|
Complete fairness (together with noncontrolling pursuits) (1) |
$ |
6,366 |
$ |
6,504 |
$ |
6,130 |
|||||
|
Complete Jefferies Group LLC member’s fairness (1) |
$ |
6,349 |
$ |
6,488 |
$ |
6,125 |
|||||
|
Tangible Jefferies Group LLC member’s fairness (1) (4) |
$ |
4,543 |
$ |
4,682 |
$ |
4,311 |
|||||
|
Degree 3 monetary devices: |
|||||||||||
|
Degree 3 monetary devices owned (1) (5) |
$ |
379 |
$ |
433 |
$ |
307 |
|||||
|
Degree 3 monetary devices owned – % whole property (1) (5) |
0.8 |
% |
0.9 |
% |
0.7 |
% |
|||||
|
Degree 3 monetary devices owned – % whole monetary devices (1) (5) |
2.1 |
% |
2.5 |
% |
1.9 |
% |
|||||
|
Degree 3 monetary devices owned – % tangible Jefferies Group LLC member’s fairness (1) (5) |
8.3 |
% |
9.2 |
% |
7.1 |
% |
|||||
|
Different knowledge and monetary ratios: |
|||||||||||
|
Complete long-term capital (1) (6) |
$ |
13,022 |
$ |
12,492 |
$ |
12,343 |
|||||
|
Leverage ratio (1) (7) |
7.5 |
7.2 |
7.1 |
||||||||
|
Tangible gross leverage ratio (1) (8) |
10.1 |
9.6 |
9.7 |
||||||||
|
Adjusted tangible gross leverage ratio (1) (3) (9) |
11.2 |
10.6 |
N/A |
||||||||
|
Variety of buying and selling days |
63 |
65 |
63 |
||||||||
|
Variety of buying and selling loss days |
3 |
8 |
10 |
||||||||
|
Common firmwide VaR (10) |
$ |
14.92 |
$ |
10.46 |
$ |
7.70 |
|||||
|
Variety of workers, at interval finish |
3,922 |
3,893 |
3,815 |
||||||||
N/A — Not Relevant
|
Jefferies Group LLC and Subsidiaries |
|||||||
|
Monetary Highlights – Footnotes |
|||||||
|
(1) |
Quantities pertaining to November 30, 2020 signify a preliminary estimate as of the date of this earnings launch and could also be revised in Jefferies Group LLC’s Annual Report on Type 10-Ok for the fiscal yr ended November 30, 2020. |
||||||
|
(2) |
At November 30, 2020, different sources of liquidity embrace top quality sovereign authorities securities and reverse repurchase agreements collateralized by U.S. authorities securities and different top quality sovereign authorities securities of $1,180 million, in combination, and $313 million, being the estimated quantity of extra secured financing that could possibly be fairly anticipated to be obtained from Jefferies Group LLC’s monetary devices which can be at present not pledged after contemplating cheap financing haircuts. The corresponding quantities included in different sources of liquidity at August 31, 2020 have been $1,123 million and $216 million, respectively, and at November 30, 2019, have been $973 million and $377 million, respectively. |
||||||
|
(3) |
Jefferies Group LLC adopted the brand new lease normal on December 1, 2019 utilizing a modified retrospective transition method. Accordingly, reported monetary info for historic comparable intervals just isn’t revised and continues to be reported underneath the accounting requirements in impact throughout these historic intervals. We elected to not reassess whether or not current contracts are or include leases, or the lease classification and preliminary direct prices of current leases upon transition. At transition on December 1, 2019, the adoption of this normal resulted within the recognition of right-of-use property of $520 million, mirrored in Premises and gear in Jefferies Group LLC’s Consolidated Assertion of Monetary Situation. |
||||||
|
(4) |
Tangible Jefferies Group LLC member’s fairness (a non-GAAP monetary measure) represents whole Jefferies Group LLC member’s fairness much less goodwill and identifiable intangible property. We consider that tangible Jefferies Group LLC member’s fairness is significant for valuation functions, as monetary firms are sometimes measured as a a number of of tangible fairness, making these ratios significant for buyers. |
||||||
|
(5) |
Degree 3 monetary devices signify these monetary devices categorised as such underneath Accounting Requirements Codification 820, accounted for at honest worth and included inside Monetary devices owned. |
||||||
|
(6) |
At November 30, 2020, August 31, 2020 and November 30, 2019, whole long-term capital consists of Jefferies Group LLC’s long-term debt of $6,656 million, $5,987 million and $6,214 million, respectively, and whole fairness. Lengthy-term debt included in whole long-term capital is diminished by quantities excellent underneath the revolving credit score facility, quantities from secured time period loans and the quantity of debt maturing in lower than one yr, as relevant. |
||||||
|
(7) |
Leverage ratio equals whole property divided by whole fairness. |
||||||
|
(8) |
Tangible gross leverage ratio (a non-GAAP monetary measure) equals whole property much less goodwill and identifiable intangible property divided by tangible Jefferies Group LLC member’s fairness. The tangible gross leverage ratio is utilized by score companies in assessing Jefferies Group LLC’s leverage ratio. |
||||||
|
(9) |
Adjusted tangible gross leverage ratio (a non-GAAP monetary measure) equals whole property much less goodwill and identifiable intangible property and right-of-use property divided by tangible Jefferies Group LLC member’s fairness much less right-of-use property. |
||||||
|
(10) |
VaR estimates the potential loss in worth of Jefferies Group LLC’s buying and selling positions on account of adversarial market actions over a one-day time horizon with a 95% confidence stage. For an extra dialogue of the calculation of VaR, see “Worth-at-Threat” in Half II, Merchandise 7 “Administration’s Dialogue and Evaluation” in Jefferies Group LLC’s Annual Report on Type 10-Ok for the yr ended November 30, 2019. |
||||||
Service provider Banking Web Asset Overview
The desk beneath presents estimated honest values of our largest Service provider Banking investments. We anticipate discontinuing this disclosure going ahead as we consider the wind down of the portfolio diminishes the worth of this info, which requires significant administration time and expenditure to supply. We’ll proceed to debate developments on the portfolio firms as they come up.
|
As of November 30, 2020 ($ Thousands and thousands) |
||||||||||
|
(Unaudited) |
Estimated |
Foundation for Truthful Worth Estimate |
||||||||
|
Linkem |
$ |
199 |
$ |
685 |
Revenue method and market comparable methodology |
|||||
|
Actual property property (1) |
532 |
542 |
Numerous |
|||||||
|
Oil and Gasoline (Vitesse and JETX) |
527 |
529 |
Revenue method, market comparable and market transaction methodology |
|||||||
|
Idaho Timber |
86 |
165 |
Revenue method and market comparable methodology |
|||||||
|
FXCM |
133 |
164 |
Revenue method and market comparable methodology |
|||||||
|
Investments in Public Corporations |
192 |
192 |
Mark-to-market (identical for GAAP e book worth) |
|||||||
|
Different |
271 |
382 |
Numerous |
|||||||
|
Complete Portfolio |
$ |
1,940 |
$ |
2,659 |
||||||
|
(1) |
Primarily HomeFed |
|
|
(2) |
The next desk reconciles monetary outcomes reported in accordance with U.S. GAAP to non-GAAP monetary outcomes. The desk above comprises non-GAAP monetary info to assist buyers in viewing our companies and investments via the eyes of administration whereas facilitating a comparability throughout historic intervals. Nonetheless, these non-GAAP monetary measures must be considered along with, and never as an alternative choice to, reported outcomes ready in accordance with U.S. GAAP. |
|
Reconciliation of Guide Worth of Service provider Banking Investments to Estimated Truthful Worth ($ Thousands and thousands) |
|||||||||||||
|
(Unaudited) |
Truthful Worth |
Estimated |
|||||||||||
|
(GAAP) |
(Non-GAAP) |
||||||||||||
|
Linkem |
$ |
199 |
$ |
486 |
$ |
685 |
|||||||
|
Actual property property |
532 |
10 |
542 |
||||||||||
|
Oil and Gasoline (Vitesse and JETX) |
527 |
2 |
529 |
||||||||||
|
Idaho Timber |
86 |
79 |
165 |
||||||||||
|
FXCM |
133 |
31 |
164 |
||||||||||
|
Investments in Public Corporations |
192 |
— |
192 |
||||||||||
|
Different |
271 |
111 |
382 |
||||||||||
|
Complete Portfolio |
$ |
1,940 |
$ |
719 |
$ |
2,659 |
|||||||
Jefferies Monetary Group Inc.
Non-GAAP Reconciliation
The next desk reconciles Jefferies Monetary Group non-GAAP measures to their respective U.S. GAAP measures. Administration believes such non-GAAP measures are helpful to buyers as they permit them to view our outcomes via the eyes of administration, whereas facilitating a comparability throughout historic intervals. These measures shouldn’t be thought of an alternative choice to, or superior to, measures ready in accordance with U.S. GAAP.
Jefferies Monetary Group Guide Worth and Shares Excellent GAAP Reconciliation
The desk beneath reconciles our e book worth to tangible e book worth and our widespread shares excellent to totally diluted shares excellent (in hundreds, besides per share quantities):
|
As Reported, |
||||
|
Guide worth (GAAP) |
$ |
9,403,893 |
||
|
Much less: Intangibles property, internet and goodwill |
(1,913,467) |
|||
|
Tangible e book worth (non-GAAP) |
$ |
7,490,426 |
||
|
Widespread shares excellent (GAAP) |
249,751 |
|||
|
Restricted inventory models (“RSUs”) |
22,753 |
|||
|
Different |
1,115 |
|||
|
Totally diluted shares excellent (non-GAAP) (1) |
273,619 |
|||
|
Guide worth per share excellent |
$ |
37.65 |
||
|
Tangible e book worth per totally diluted share excellent |
$ |
27.38 |
||
|
(1) Totally diluted shares excellent exclude most popular shares as they’re antidilutive. Totally diluted shares excellent embrace vested RSUs in addition to the goal variety of RSUs issuable underneath the senior govt compensation plans. |
View supply model on businesswire.com: https://www.businesswire.com/news/home/20210104005798/en/
Contacts
Teresa S. Gendron
Chief Monetary Officer
Jefferies Monetary Group Inc.
Tel. (212) 460-1932
Matt Larson
Chief Monetary Officer
Jefferies Group LLC
Tel. (212) 284-2338
