Jefferies

Press Release

FOR IMMEDIATE RELEASE
Jefferies Reports Third Quarter 2012 Financial Results

NEW YORK and LONDON, September 20, 2012 – Jefferies Group, Inc. (NYSE: JEF) today announced financial results for its fiscal third quarter ended August 31, 2012. 

Highlights for the three months ended August 31, 2012, versus the three months ended August 31, 2011:

  • Net revenues of $739 million, versus $509 million
  • Net earnings to common shareholders of $70 million, versus $68 million ($73 million on a non-GAAP basis after excluding certain items [1] versus $23 million on a non-GAAP basis after excluding certain items [2])
  • Net earnings per common share of $0.31, versus $0.30 ($0.32 on a non-GAAP basis after excluding certain items [1] and versus $0.10 on a non-GAAP basis after excluding certain items [2])
  • Advisory net revenues of $133 million, up 24%, versus $107 million
  • Fixed Income net revenues increased 8-fold to $266 million, versus $33 million

 Highlights for the nine months ended August 31, 2012, versus the nine months ended August 31, 2011:

  • Net revenues of $2,230 million, up 12%, versus $1,995 million
  • Net earnings to common shareholders of $211 million versus $236 million ($221 million on a non-GAAP basis after excluding certain items [1],[3] versus $194 million on a non-GAAP basis after excluding certain items [2])
  • Net earnings per common share of $0.91 versus $1.07 ($0.96 on a non-GAAP basis after excluding certain items [1][3] versus $0.88 on a non-GAAP basis after excluding certain items [2])
  • Advisory net revenues of $392 million, versus $378 million
  • Fixed Income net revenues of $897 million, versus $574 million

“On October 2, Jefferies will be 50 years old. Despite a turbulent and often treacherous environment, we have just finished the best nine-month period in our firm’s history. Our equity base of $3.7 billion has never been more robust, and our balance sheet and liquidity have never been stronger. The Jefferies brand and our competitive position versus our competitors have also never been better,” commented Richard B. Handler, Chairman and CEO of Jefferies. “We would like to thank our clients, employee-partners, shareholders, and bondholders for putting Jefferies in our strongest position ever and allowing us collectively to continue our mission to build Jefferies for the next 50 years.”

A conference call with management discussion of these financial results will be held today, Thursday, September 20, 2012, at 9:00 AM Eastern (date and time subject to change). Investors and securities industry professionals may access the management discussion by calling 877-710-9938 or 702-928-7183. A one-week replay of the call will also be available at 855-859-2056 or 404-537-3406 (conference ID # 25311406). A live audio webcast and delayed replay can also be accessed at Jefferies.com. 

Jefferies Group, Inc. (NYSE: JEF), the global investment banking firm focused on serving clients for 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, foreign exchange, futures and commodities, and also select asset and wealth management strategies, in the Americas, Europe and Asia. 

  1. Adjustments to net earnings to common shareholders and net earnings per common share on a non-GAAP basis to exclude certain items include amortization of intangibles, and compensation awards related to our Bache and Hoare Govett acquisitions and interest expense incurred as a result of debt extinguishment accounting from prior quarters, all on an after-tax basis.
  2. Adjustments to net earnings to common shareholders and net earnings per common share on a non-GAAP basis to exclude certain items include a bargain purchase gain, acquisition expenses and amortization of compensation awards related to our Bache acquisition, all on an after-tax basis.
  3. Adjustments to net earnings to common shareholders and net earnings per common share on a non-GAAP basis to exclude certain items include a bargain purchase gain on our Hoare Govett acquisition, a gain on debt extinguishment relating to trading activities in our own debt and impairment charges on intangibles related to our Bache acquisition, all on an after-tax basis.

 -- see financial tables in attached --

 (click here to view full report)

For further information, please contact:

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