Jefferies

Press Release

FOR IMMEDIATE RELEASE
Jefferies Reports Final Fourth Quarter and 11-Month 2010 Fiscal Year Financial Results

NEW YORK, January 28, 2011 -- Jefferies Group, Inc. (NYSE: JEF) announced today final financial results for its fiscal fourth quarter and 11-month fiscal year ended November 30, 2010.

On December 20, 2010, we reported preliminary financial results and noted that, in completing the self-clearing of a portion of our fixed-income business in the fourth quarter of 2010, we identified a $39 million difference between our clearing bank's statement of account and our records. We have concluded that the bank's statement of account is correct. Of that $39 million, $34.5 million impacted our income statements for the periods 2005 through 2010. We do not believe the adjustments to correct these errors are material individually or in the aggregate to our financial condition or our financial results for any reported period. After taking into account taxes and compensation reductions, the aggregate adjustment to net income for those periods was $18 million.

As will be outlined in more detail in our Transition Report on Form 10-K for the 11 months ended November 30, 2010 ("Transition Report"), we have determined that no previously filed quarterly or annual report requires amendment. We will, however, be adjusting relevant numbers in our Transition Report to address the above-mentioned differences.

Final highlights, as adjusted for the three months ended November 30, 2010 versus the adjusted three months ended December 31, 2009 are:
 

  • Net revenues of $680 million, versus $536 million.
  • Net income to Common Shareholders of $63 million, versus $93 million.
  • Net earnings per common share of $0.31, versus $0.46.
  • Investment Banking revenues of $292 million, versus $194 million.

Final highlights as adjusted for the 11-month fiscal year ended November 30, 2010 versus the adjusted twelve months ended December 31, 2009 are:
 

  • Net revenues in the 11-month period of $2,192 million, versus $2,163 million in the prior year 12-month period.
  • Net income to Common Shareholders of $224 million in the 11-month period, versus $275 million in the prior year 12-month period.
  • Net earnings per common share of $1.09 in the 11-month period, versus $1.35 in the prior 12-month period.
  • Investment banking revenues of $890 million in the 11-month period, versus $474 million in the prior 12-month period.

Jefferies Group, Inc. (NYSE: JEF), a global securities and investment banking firm, has served companies and investors for 49 years.

For further information, please contact:

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

Full press release (with all tables) in PDF format