Copyright © 2015 - 2022 Lifecarenews.in
LIFE CARE IS REGISTERED MAGAZINE IN RNI, NO.GUJGUJ/2015/71283
Copyright © 2015 - 2022 Lifecarenews.in
LIFE CARE IS REGISTERED MAGAZINE IN RNI, NO.GUJGUJ/2015/71283
- Advertisement -
Recover your password.
A password will be e-mailed to you.
NEW YORK–(BUSINESS WIRE)–Jefferies Financial Group Inc. (NYSE: JEF):
Q4 Financial Highlights
- Advertisement -
“Jefferies’ 2022 total investment banking revenues, while down 38% from an off-the-charts 2021, represented our second-best year ever and were substantially above 2019 levels. Our advisory net revenues were only 5% below last year’s all-time record result, while our underwriting net revenues were down 59%, due to the IPO and leveraged finance markets being substantially closed for much of the year. Our combined equities and fixed income net revenues were down only 19% versus 2021 and up meaningfully versus 2019.
“Most significantly, for our fiscal 2022, Jefferies was the #6 largest investment banking firm in both global M&A, as well as global equity capital markets (excluding China), up from #12 and #13, respectively, only five years ago. We also moved up one spot from the prior year to #7 globally in combined M&A, ECM and leveraged finance, an improvement from #10 in 2017. It is worth noting that all the competitors ahead of us on these lists are trillion dollar plus global bank holding companies who often lead with their balance sheet, while Jefferies leads with ideas, expertise and human capital.
“Our Equities franchise continued to expand in breadth and capability, while gaining market share across the majority of equity products in 2022. We achieved a U.S. ranking of #6 and a European ranking of #7 for equity research, while we were ranked #3 best overall in Asia for combined equity research and sales. While our Fixed Income business was down for the year, our fourth quarter was up over 71% and we carried that momentum through the first month of fiscal 2023.
“Monetizing our legacy merchant banking portfolio and returning capital to shareholders remains one of our overriding priorities, and we made continued progress in 2022. We expect to take a further important step later this week with our spin-off to shareholders of Vitesse Energy (‘Vitesse’). In 2022, we returned an aggregate of $1.14 billion to shareholders in the form of $280.1 million in dividends and the repurchase of 25.6 million shares for a total of $859.6 million, or $33.58 per share. Over the last five years, we have now returned $5.0 billion in total capital to shareholders, representing two-thirds of total tangible book value3 at January 1, 2018 and including 152.8 million shares repurchased at an average of $23.57 per share. Further, our Vitesse spin-off delivers to our shareholders an additional estimated more than $500 million of our shareholders’ equity. Pro forma for the Vitesse spin-off, we will have returned over $5.5 billion in total capital to shareholders over the last five years, representing over 72% of tangible book value3 at January 1, 2018.
“In sum, we achieved a respectable return on adjusted tangible equity of 10.3%1 in a very difficult environment, enhanced our market position in our core businesses and simplified our corporate structure. As we move forward in 2023, we have never been more optimistic about our human capital, product capabilities, industry expertise and geographic breadth, which we intend to continue to aggressively deliver to our clients going forward. Our goal is to continue to gain market share, further strengthening our ‘never better’ competitive position, and continue our quest to be the best full service global investment banking firm.”
Richard Handler, CEO, and Brian Friedman, President
Please refer to the just-released Jefferies Financial Group Annual Letter from our CEO and President for broader perspective on 2022, as well as our strategy and outlook.
Quarterly Cash Dividend
The Jefferies Board of Directors declared a quarterly cash dividend equal to $0.30 per Jefferies common share, payable on February 24, 2023 to record holders of Jefferies common shares on February 13, 2023.
Financial Summary
(Dollars in thousands, except per share amounts) |
Three Months Ended November 30, |
|
|
|
Twelve Months Ended November 30, |
|
|
|||||||||||||||
|
2022 |
|
202118 |
|
% Change |
|
2022 |
|
202118 |
|
% Change |
|||||||||||
Net revenues: |
|
|
|
|
|
|
|
|
|
|||||||||||||
Investment Banking and Capital Markets |
$ |
1,046,434 |
|
|
$ |
1,615,752 |
|
(35 |
)% |
|
$ |
4,726,150 |
|
|
$ |
6,917,774 |
|
(32 |
)% |
|||
Asset Management |
|
395,228 |
|
|
|
151,177 |
|
161 |
% |
|
|
1,257,693 |
|
|
|
1,092,624 |
|
15 |
% |
|||
Other |
|
(3,580 |
) |
|
|
(8,438 |
) |
58 |
% |
|
|
(5,005 |
) |
|
|
3,428 |
|
N/M |
|
|||
Net revenues |
|
1,438,082 |
|
|
|
1,758,491 |
|
(18 |
)% |
|
|
5,978,838 |
|
|
|
8,013,826 |
|
(25 |
)% |
|||
Net earnings before income taxes |
|
194,840 |
|
|
|
425,565 |
|
(54 |
)% |
|
|
1,055,562 |
|
|
|
2,254,105 |
|
(53 |
)% |
|||
Income tax expense |
|
53,903 |
|
|
|
91,973 |
|
(41 |
)% |
|
|
273,852 |
|
|
|
576,729 |
|
(53 |
)% |
|||
Net earnings |
|
140,937 |
|
|
|
333,592 |
|
(58 |
)% |
|
|
781,710 |
|
|
|
1,677,376 |
|
(53 |
)% |
|||
Net earnings (losses) attributable to noncontrolling interests |
|
(1,280 |
) |
|
|
6,586 |
|
N/M |
|
|
|
(2,397 |
) |
|
|
3,850 |
|
N/M |
|
|||
Net earnings (loss) attributable to redeemable noncontrolling interests |
|
(101 |
) |
|
|
245 |
|
N/M |
|
|
|
(1,342 |
) |
|
|
(826 |
) |
62 |
% |
|||
Preferred stock dividends |
|
2,070 |
|
|
|
1,848 |
|
12 |
% |
|
|
8,281 |
|
|
|
6,949 |
|
19 |
% |
|||
Net earnings attributable to Jefferies Financial Group Inc. |
$ |
140,248 |
|
|
$ |
324,913 |
|
(57 |
)% |
|
$ |
777,168 |
|
|
$ |
1,667,403 |
|
(53 |
)% |
|||
Basic earnings per common share |
$ |
0.58 |
|
|
$ |
1.23 |
|
(53 |
)% |
|
$ |
3.13 |
|
|
$ |
6.29 |
|
(50 |
)% |
|||
Weighted average shares |
|
239,312 |
|
|
|
261,637 |
|
|
|
|
247,378 |
|
|
|
263,595 |
|
|
|||||
Diluted earnings per common share |
$ |
0.57 |
|
|
$ |
1.20 |
|
(53 |
)% |
|
$ |
3.06 |
|
|
$ |
6.13 |
|
(50 |
)% |
|||
Weighted average diluted shares |
|
248,338 |
|
|
|
270,743 |
|
|
|
|
255,571 |
|
|
|
271,501 |
|
|
|||||
Annualized return on adjusted tangible equity1 |
|
7.2 |
% |
|
|
16.5 |
% |
|
|
|
10.3 |
% |
|
|
24.5 |
% |
|
|||||
Adjusted annualized return on adjusted tangible equity4 |
|
7.2 |
% |
|
|
16.5 |
% |
|
|
|
11.3 |
% |
|
|
24.5 |
% |
|
|||||
N/M — Not Meaningful |
Highlights |
||
Three Months Ended November 30, 2022 |
|
Twelve Months Ended November 30, 2022 |
|
|
|
Three Months Ended November 30, 2022 |
|
Twelve Months Ended November 30, 2022 |
Investment Banking and Capital Markets |
|
Investment Banking and Capital Markets |
|
|
|
Three Months Ended November 30, 2022 |
Twelve Months Ended November 30, 2022 | |
Asset Management |
|
Asset Management |
|
|
|
* * * *
Amounts herein pertaining to November 30, 2022 represent a preliminary estimate as of the date of this earnings release and may be revised upon filing our Annual Report on Form 10-K with the Securities and Exchange Commission (“SEC”). More information on our results of operations for the year ended November 30, 2022 will be provided upon filing our Annual Report on Form 10-K with the SEC, which we expect to file on or about January 27, 2023.
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, Except Other Data) (Unaudited) |
Quarter Ended |
|||||||||||
|
November 30, 2022 |
|
August 31, 202218 |
|
November 30, 202118 |
|||||||
Net revenues by source: |
|
|
|
|
|
|||||||
Advisory |
$ |
381,412 |
|
|
$ |
481,419 |
|
|
$ |
587,476 |
|
|
Equity underwriting |
|
109,439 |
|
|
|
150,972 |
|
|
|
370,636 |
|
|
Debt underwriting |
|
61,731 |
|
|
|
76,943 |
|
|
|
222,655 |
|
|
Total underwriting |
|
171,170 |
|
|
|
227,915 |
|
|
|
593,291 |
|
|
Other investment banking |
|
15,892 |
|
|
|
(49,222 |
) |
|
|
11,181 |
|
|
Total Investment Banking |
|
568,474 |
|
|
|
660,112 |
|
|
|
1,191,948 |
|
|
Equities |
|
251,280 |
|
|
|
277,448 |
|
|
|
291,033 |
|
|
Fixed income |
|
226,680 |
|
|
|
174,618 |
|
|
|
132,771 |
|
|
Total Capital Markets |
|
477,960 |
|
|
|
452,066 |
|
|
|
423,804 |
|
|
Total Investment Banking and Capital Markets Net revenues9 |
|
1,046,434 |
|
|
|
1,112,178 |
|
|
|
1,615,752 |
|
|
Asset management fees and revenues10 |
|
13,440 |
|
|
|
17,069 |
|
|
|
13,065 |
|
|
Investment return2 |
|
156,613 |
|
|
|
(35,488 |
) |
|
|
41,554 |
|
|
Merchant banking |
|
231,805 |
|
|
|
430,009 |
|
|
|
108,472 |
|
|
Allocated net interest2 |
|
(6,630 |
) |
|
|
(9,934 |
) |
|
|
(11,914 |
) |
|
Total Asset Management Net revenues |
|
395,228 |
|
|
|
401,656 |
|
|
|
151,177 |
|
|
Other |
|
(3,580 |
) |
|
|
(3,990 |
) |
|
|
(8,438 |
) |
|
Total Net revenues by source |
$ |
1,438,082 |
|
|
$ |
1,509,844 |
|
|
$ |
1,758,491 |
|
|
|
|
|
|
|
|
|||||||
Non-interest expenses: |
|
|
|
|
|
|||||||
Compensation and benefits |
$ |
659,121 |
|
|
$ |
559,593 |
|
|
$ |
746,185 |
|
|
Floor brokerage and clearing fees |
|
85,143 |
|
|
|
84,685 |
|
|
|
79,652 |
|
|
Underwriting costs |
|
9,076 |
|
|
|
11,672 |
|
|
|
26,932 |
|
|
Technology and communications |
|
114,957 |
|
|
|
110,925 |
|
|
|
103,054 |
|
|
Occupancy and equipment rental |
|
28,420 |
|
|
|
26,589 |
|
|
|
26,027 |
|
|
Business development |
|
42,610 |
|
|
|
36,322 |
|
|
|
42,381 |
|
|
Professional services |
|
71,042 |
|
|
|
61,428 |
|
|
|
58,773 |
|
|
Depreciation and amortization |
|
43,471 |
|
|
|
43,187 |
|
|
|
40,536 |
|
|
Cost of sales |
|
91,281 |
|
|
|
123,436 |
|
|
|
79,954 |
|
|
Other |
|
98,121 |
|
|
|
150,157 |
|
|
|
129,432 |
|
|
Total Non-interest expenses |
$ |
1,243,242 |
|
|
$ |
1,207,994 |
|
|
$ |
1,332,926 |
|
(Amounts in Thousands, Except Other Data) (Unaudited) |
|
Twelve Months Ended November 30, |
||||||
|
|
2022 |
|
202118 |
||||
Net revenues by source: |
|
|
|
|
||||
Advisory |
|
$ |
1,778,003 |
|
|
$ |
1,873,204 |
|
Equity underwriting |
|
|
538,946 |
|
|
|
1,557,364 |
|
Debt underwriting |
|
|
490,873 |
|
|
|
935,131 |
|
Total underwriting |
|
|
1,029,819 |
|
|
|
2,492,495 |
|
Other investment banking |
|
|
92,170 |
|
|
|
291,423 |
|
Total Investment Banking |
|
|
2,899,992 |
|
|
|
4,657,122 |
|
Equities |
|
|
1,060,582 |
|
|
|
1,301,530 |
|
Fixed income |
|
|
765,576 |
|
|
|
959,122 |
|
Total Capital Markets |
|
|
1,826,158 |
|
|
|
2,260,652 |
|
Total Investment Banking and Capital Markets Net revenues9 |
|
|
4,726,150 |
|
|
|
6,917,774 |
|
Asset management fees and revenues10 |
|
|
89,127 |
|
|
|
120,733 |
|
Investment return2 |
|
|
156,594 |
|
|
|
260,316 |
|
Merchant banking |
|
|
1,053,031 |
|
|
|
756,482 |
|
Allocated net interest2 |
|
|
(41,059 |
) |
|
|
(44,907 |
) |
Total Asset Management Net revenues |
|
|
1,257,693 |
|
|
|
1,092,624 |
|
Other |
|
|
(5,005 |
) |
|
|
3,428 |
|
Total Net revenues by source |
|
$ |
5,978,838 |
|
|
$ |
8,013,826 |
|
|
|
|
|
|
||||
Non-interest expenses: |
|
|
|
|
||||
Compensation and benefits |
|
$ |
2,589,044 |
|
|
$ |
3,554,760 |
|
Floor brokerage and clearing fees |
|
|
347,805 |
|
|
|
301,860 |
|
Underwriting costs |
|
|
42,067 |
|
|
|
117,572 |
|
Technology and communications |
|
|
444,011 |
|
|
|
388,134 |
|
Occupancy and equipment rental |
|
|
108,001 |
|
|
|
106,254 |
|
Business development |
|
|
150,500 |
|
|
|
109,772 |
|
Professional services |
|
|
240,978 |
|
|
|
215,761 |
|
Depreciation and amortization |
|
|
172,902 |
|
|
|
157,420 |
|
Cost of sales |
|
|
440,837 |
|
|
|
470,870 |
|
Other |
|
|
387,131 |
|
|
|
337,318 |
|
Total Non-interest expenses |
|
$ |
4,923,276 |
|
|
$ |
5,759,721 |
|
Financial Data and Metrics
(Amounts in Thousands, Except Other Data) (Unaudited) |
Quarter Ended |
||||||||
|
November 30, 2022 |
|
August 31, 2022 |
|
November 30, 2021 |
||||
Other Data: |
|
|
|
|
|
||||
Number of trading days |
|
63 |
|
|
64 |
|
|
63 |
|
Number of trading loss days11 |
|
3 |
|
|
9 |
|
|
11 |
|
Average VaR (in millions)12 |
$ |
10.62 |
|
$ |
9.60 |
|
$ |
10.14 |
|
|
|
|
|
|
|
||||
|
|
|
Twelve Months Ended November 30, |
||||||
|
|
|
2022 |
|
2021 |
||||
Other Data: |
|
|
|
|
|
||||
Number of trading days |
|
|
|
252 |
|
|
252 |
||
Number of trading loss days11 |
|
|
|
30 |
|
|
60 |
||
Average VaR (in millions)12 |
|
|
$ |
11.04 |
|
$ |
13.63 |
(Amounts in Millions, Except Other Data) (Unaudited) |
Quarter Ended |
||||||||
|
November 30, 2022 |
|
August 31, 2022 |
|
November 30, 2021 |
||||
Financial position13: |
|
|
|
|
|
||||
Total assets19 |
$ |
51,058 |
|
$ |
51,477 |
|
$ |
56,107 |
|
Total assets less goodwill and intangible assets for the period19 |
|
49,182 |
|
|
49,603 |
|
|
54,209 |
|
Cash and cash equivalents |
|
9,703 |
|
|
9,478 |
|
|
10,755 |
|
Financial instruments owned19 |
|
18,666 |
|
|
18,776 |
|
|
18,025 |
|
Level 3 financial instruments owned14, 19 |
|
791 |
|
|
790 |
|
|
575 |
|
Goodwill and intangible assets |
|
1,876 |
|
|
1,874 |
|
|
1,898 |
|
Total equity |
|
10,295 |
|
|
10,360 |
|
|
10,580 |
|
Total shareholders’ equity |
|
10,233 |
|
|
10,293 |
|
|
10,554 |
|
Tangible shareholders’ equity7 |
|
8,357 |
|
|
8,419 |
|
|
8,656 |
|
Other data and financial ratios: |
|
|
|
|
|
||||
Leverage ratio13, 15, 19 |
|
5.0 |
|
|
5.0 |
|
|
5.3 |
|
Tangible gross leverage ratio13, 16, 19 |
|
5.9 |
|
|
5.9 |
|
|
6.3 |
|
Number of employees, at period end |
|
5,381 |
|
|
5,347 |
|
|
5,556 |
Components of Denominator for Earnings Per Share
The denominators used to calculate basic and diluted earnings per share are as follows (in thousands):
|
|
Three Months Ended November 30, 2022 |
|
Twelve Months Ended November 30, 2022 |
||
Weighted average common shares outstanding |
|
227,395 |
|
|
234,258 |
|
Weighted average shares of restricted stock with future service |
|
(1,789 |
) |
|
(1,330 |
) |
Weighted average restricted stock units outstanding with no future service |
|
13,706 |
|
|
14,450 |
|
Denominator for basic earnings per share |
|
239,312 |
|
|
247,378 |
|
Stock options and other share based awards |
|
1,617 |
|
|
1,518 |
|
Senior executive compensation plan restricted stock unit awards |
|
2,968 |
|
|
2,234 |
|
Mandatorily redeemable convertible preferred shares |
|
4,441 |
|
|
4,441 |
|
Denominator for diluted earnings per share |
|
248,338 |
|
|
255,571 |
|
Notes
Contacts
Jonathan Freedman 212.778.8913
Get real time updates directly on you device, subscribe now.
- Advertisement -