Jefferies

Press Release

FOR IMMEDIATE RELEASE
Jefferies Reports Fiscal Second Quarter 2015 Financial Results

NEW YORK– June 16, 2015 -- Jefferies Group LLC today announced financial results for its fiscal second quarter 2015. 

Highlights for the three months ended May 31, 2015, with adjusted amounts excluding the operating results of our Bache business:

  • Investment banking net revenues of $404 million
  • Total Net revenues of $792 million
  • Total Adjusted Net revenues (excluding Bache net revenues) of $757 million
  • Adjusted Net earnings (excluding Bache net loss) of $86 million
  • Net earnings of $60 million (including Bache exit costs of $20 million on an after-tax basis)

Highlights for the six months ended May 31, 2015, with adjusted amounts excluding the operating results of our Bache business:

  • Investment banking net revenues of $676 million
  • Total Net revenues of $1,383 million
  • Total Adjusted Net revenues (excluding Bache net revenues) of $1,299 million
  • Adjusted Net earnings (excluding Bache net loss) of $106 million
  • Net earnings of $73 million (including Bache exit costs of $20 million on an after-tax basis)

Richard B. Handler, Chairman and Chief Executive Officer, and Brian P. Friedman, Chairman of the Executive Committee, commented: “We are pleased to report quarterly revenues above those of the first quarter and the same period last year.  Investment banking net revenues were in excess of $400 million, an increase of 49% compared to this year’s first quarter and 22% versus the second quarter last year.  Our momentum has continued in investment banking and our current backlog for the third quarter is comparable to the backlog of three months ago.  Our equity net revenues were strong versus the first quarter and the same quarter last year.  Excluding Bache, Fixed income net revenues increased by 56% versus the slow first quarter, but declined by 29% compared to the year ago quarter. Fixed income results improved each month during the quarter.  We continue to unwind the Bache business and to date have transferred about 50% of client accounts to Societe Generale and other brokers.  We expect to have substantially completed the unwind of Bache by the end of the summer.”

The attached financial tables should be read in connection with our Quarterly Report on Form 10-Q for the quarter ended February 28, 2015 and our Annual Report on Form 10-K for the year ended November 30, 2014. Adjusted financial measures referenced above are non-GAAP financial measures, which management believes provide meaningful information to enable investors to evaluate the Company's results in the context of exiting the Bache business. Refer to the Supplemental Schedules on pages 5-7 for a reconciliation of Adjusted measures to the respective direct U.S. GAAP financial measures.

Jefferies, 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. The firm provides a full range of investment banking, sales, trading, research and strategy across the spectrum of equities, fixed income and foreign exchange, as well as wealth management, in the Americas, Europe and Asia. Jefferies Group LLC is a wholly-owned subsidiary of Leucadia National Corporation (NYSE: LUK), a diversified holding company.

(click here for the full report)

For further information, please contact:
 

Peregrine C. Broadbent
Chief Financial Officer
Jefferies Group LLC
(212) 284-2338