<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------
FORM 10-Q
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
-------- --------
Commission file number 0-11669
JEFFERIES GROUP, INC.
--------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 95-2848406
- - ------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
11100 Santa Monica Boulevard, Los Angeles, California 90025
- - ------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (310) 445-1199
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]
As of March 31, 1995, the Registrant had 5,482,954 common shares, $.01 par
value, outstanding.
Page 1 of 16 Pages
<PAGE> 2
JEFFERIES GROUP, INC. AND SUBSIDIARIES
INDEX TO QUARTERLY REPORT ON FORM 10-Q
MARCH 31, 1995
<TABLE>
<CAPTION>
Page
----
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Statements of Financial Condition -
March 31, 1995 (unaudited) and December 31, 1994 3
Consolidated Statements of Earnings - Three Months
Ended March 31, 1995 (unaudited) and March 25, 1994
(unaudited) 4
Consolidated Statements of Changes in Stockholders'
Equity - Three Months Ended March 31, 1995 (unaudited) 5
Consolidated Statements of Cash Flows - Three Months
Ended March 31, 1995 (unaudited) and March 25, 1994
(unaudited) 6
Notes to Consolidated Financial Statements (unaudited) 8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 12
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 14
</TABLE>
Page 2 of 16 Pages
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JEFFERIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
March 31, December 31,
1995 1994
------------ ------------
ASSETS (unaudited)
<S> <C> <C>
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . $ 76,791 $ 71,381
Receivable from brokers and dealers . . . . . . . . . . . . . . . . . 1,385,032 1,149,670
Receivable from customers, officers and directors . . . . . . . . . . 123,495 105,880
Securities owned . . . . . . . . . . . . . . . . . . . . . . . . . . 133,093 144,940
Premises and equipment . . . . . . . . . . . . . . . . . . . . . . . 22,655 21,071
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,257 64,406
----------- -----------
$ 1,794,323 $ 1,557,348
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Bank loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,800 $ 866
Payable to brokers and dealers . . . . . . . . . . . . . . . . . . . 1,074,463 840,833
Repurchase agreements . . . . . . . . . . . . . . . . . . . . . . . . -- 18,696
Payable to customers . . . . . . . . . . . . . . . . . . . . . . . . 296,828 325,396
Securities sold, not yet purchased . . . . . . . . . . . . . . . . . 92,913 60,587
Accrued expenses and other liabilities . . . . . . . . . . . . . . . 86,704 82,029
----------- -----------
1,562,708 1,328,407
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,651 59,570
Minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . 6,631 6,136
----------- -----------
1,628,990 1,394,113
----------- -----------
Stockholders' equity:
Preferred stock, $.01 par value.
Authorized 1,000,000 shares; none issued . . . . . . . . . . . -- --
Common stock $.01 par value.
Authorized 25,000,000 shares; issued
9,068,360 shares in 1995 and 9,017,710
shares in 1994 . . . . . . . . . . . . . . . . . . . . . . . . 91 90
Additional paid-in capital . . . . . . . . . . . . . . . . . . . 52,160 51,120
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . 171,734 165,597
Less treasury stock, at cost; 3,585,406 shares
in 1995; and 3,412,672 shares in 1994 . . . . . . . . . . . . . (58,196) (52,958)
Less currency translation adjustments . . . . . . . . . . . . . . (307) (465)
Less additional minimum pension liability . . . . . . . . . . . . (149) (149)
----------- -----------
Total stockholders' equity . . . . . . . . . . . . . . . . . 165,333 163,235
----------- -----------
$ 1,794,323 $ 1,557,348
=========== ===========
</TABLE>
See accompanying notes to consolidated financial statements.
Page 3 of 16 Pages
<PAGE> 4
JEFFERIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Three Months Ended
---------------------
March 31, March 25,
1995 1994
--------- ---------
<S> <C> <C>
Revenues:
Commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40,348 $ 39,654
Principal transactions . . . . . . . . . . . . . . . . . . . . . . . 20,981 17,654
Corporate finance . . . . . . . . . . . . . . . . . . . . . . . . . 14,544 8,875
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,030 8,338
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,110 1,169
--------- ---------
Total revenues . . . . . . . . . . . . . . . . . . . . . . . . . 95,013 75,690
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . 15,347 6,488
--------- ---------
Revenues, net of interest expense . . . . . . . . . . . . . . . . . 79,666 69,202
--------- ---------
Non-interest expenses:
Compensation and benefits . . . . . . . . . . . . . . . . . . . . . 41,452 36,617
Floor brokerage and clearing fees . . . . . . . . . . . . . . . . . 4,502 4,399
Telecommunications and data processing services . . . . . . . . . . 5,458 4,504
Occupancy and equipment rental . . . . . . . . . . . . . . . . . . . 3,501 3,356
Travel and promotional . . . . . . . . . . . . . . . . . . . . . . . 1,996 2,026
Software royalties . . . . . . . . . . . . . . . . . . . . . . . . . 1,381 1,263
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,366 6,791
--------- ---------
Total non-interest expenses . . . . . . . . . . . . . . . . . . 66,656 58,956
--------- ---------
Earnings before income taxes and
minority interest . . . . . . . . . . . . . . . . . . . . . . 13,010 10,246
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,809 4,407
--------- ---------
Earnings before minority interest . . . . . . . . . . . . . . . 7,201 5,839
Minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . . 606 --
--------- ---------
Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,595 $ 5,839
========= =========
Earnings per share of common stock:
Primary . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.10 $ .95
========= =========
Fully diluted . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.10 $ .95
========= =========
Weighted average shares of common stock:
Primary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,001,000 6,051,000
Fully diluted . . . . . . . . . . . . . . . . . . . . . . . . . . 6,005,000 6,075,000
</TABLE>
See accompanying notes to consolidated financial statements.
Page 4 of 16 Pages
<PAGE> 5
JEFFERIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1995
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Currency Add'l Total
Additional Trans- Minimum Stock-
Common Paid-in Retained Treasury lation Pension holders'
Stock Capital Earnings Stock Adjustment Liability Equity
------ ---------- ---------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance,
December 31, 1994. $ 90 $ 51,120 $165,597 $(52,958) $(465) $(149) $163,235
Exercise of stock
options
(50,650 shares)... 1 1,030 1,031
Purchase of 172,734
shares of treasury
stock............. (5,238) (5,238)
Increase in
proportionate
share of
subsidiary's
equity related to
subsidiary's
purchase of
treasury stock.... (168) (168)
Other.............. 10 10
Cash dividends,
$.05 per share.... (290) (290)
Translation adjust-
ment.............. 158 158
Net earnings....... 6,595 6,595
----- --------- --------- --------- ----- ----- --------
Balance,
March 31, 1995.... $ 91 $ 52,160 $171,734 $(58,196) $(307) $(149) $165,333
===== ========= ========= ========= ===== ===== ========
</TABLE>
See accompanying notes to consolidated financial statements.
Page 5 of 16 Pages
<PAGE> 6
JEFFERIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Three Months Ended
-------------------------
March 31, March 25,
1995 1994
--------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,595 $ 5,839
--------- --------
Adjustments to reconcile net earnings to net
cash provided (used) by operations:
Depreciation and amortization . . . . . . . . . . . . . . . . . . 1,907 1,686
(Increase) decrease in receivables:
Brokers and dealers . . . . . . . . . . . . . . . . . . . . . . (235,362) (31,755)
Customers, officers and directors . . . . . . . . . . . . . . . (17,615) (5,968)
(Increase) decrease in securities owned . . . . . . . . . . . . . 11,847 (19,015)
(Increase) decrease in other assets . . . . . . . . . . . . . . . 10,810 2,559
Increase (decrease) in operating payables:
Brokers and dealers . . . . . . . . . . . . . . . . . . . . . . 233,630 81,166
Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . (28,568) 24,066
Increase (decrease) in securities sold, not
yet purchased . . . . . . . . . . . . . . . . . . . . . . . . . 32,326 (4,064)
Increase (decrease) in accrued expenses and
other liabilities . . . . . . . . . . . . . . . . . . . . . . . 4,675 (9,814)
Increase (decrease) in minority interest . . . . . . . . . . . . 495 --
-------- --------
Total adjustments . . . . . . . . . . . . . . . . . . . 14,145 38,861
-------- --------
Net cash provided (used) by
operating activities . . . . . . . . . . . . . . . . 20,740 44,700
-------- --------
</TABLE>
Continued on next page.
See accompanying notes to consolidated financial statements.
Page 6 of 16 Pages
<PAGE> 7
JEFFERIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED (UNAUDITED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Three Months Ended
-----------------------
March 31, March 25,
1995 1994
--------- ---------
<S> <C> <C>
Cash flows from financing activities:
Net proceeds (payments) from bank loans . . . . . . . . . . . . . 10,934 (45,928)
Payments on repurchase agreements . . . . . . . . . . . . . . . . (18,696) --
Net payments for:
Repurchase of treasury stock . . . . . . . . . . . . . . . . . (5,238) (1,201)
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . (290) (291)
Distribution of CAP plan shares . . . . . . . . . . . . . . . . . -- 103
Proceeds from exercise of stock options . . . . . . . . . . . . . 1,031 2,199
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (158) --
-------- --------
Net cash provided (used) by
financing activities . . . . . . . . . . . . . . . . (12,417) (45,118)
-------- --------
Cash flows from investing activities -
purchase of premises and equipment . . . . . . . . . . . . . . . (3,071) (2,849)
-------- --------
Effect of foreign currency translation on cash . . . . . . . . . . . . 158 35
-------- --------
Net increase (decrease) in cash
and cash equivalents . . . . . . . . . . . . . . . . 5,410 (3,232)
Cash and cash equivalents - beginning of period . . . . . . . . . . . . 71,381 26,910
-------- --------
Cash and cash equivalents - end of period . . . . . . . . . . . . . . . $ 76,791 $ 23,678
======== ========
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,386 $ 6,495
======== ========
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 217 $ 7,531
======== ========
</TABLE>
See accompanying notes to consolidated financial statements.
Page 7 of 16 Pages
<PAGE> 8
JEFFERIES GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements include the
accounts of Jefferies Group, Inc. and all subsidiaries, including Jefferies &
Company, Inc. (Jefferies) and Investment Technology Group, Inc. (ITGI) and
ITGI's wholly-owned subsidiary, ITG Inc. (ITG). The accounts of W & D
Securities, Inc. (W & D) are also consolidated because of the nature and extent
of the Company's ownership interest in W & D. Jefferies Group, Inc. and its
subsidiaries are primarily engaged in securities brokerage and trading,
corporate finance and other financial services. The term "Company" refers,
unless the context requires otherwise, to Jefferies Group, Inc., its
subsidiaries, predecessor entities, and W & D.
All significant intercompany accounts and transactions are eliminated
in consolidation. The consolidated financial statements reflect all
adjustments which are, in the opinion of management, necessary for the fair
statement of the results for the interim period and should be read in
conjunction with the Company's annual report for the year ended December 31,
1994.
SECURITIES TRANSACTIONS
The Company records its commission and principal transaction revenues
and related expenses on a trade date basis.
RECEIVABLE FROM, AND PAYABLE TO, BROKERS AND DEALERS
The components, at March 31, 1995, of receivable from and payable to
brokers and dealers are as follows:
<TABLE>
<CAPTION>
(Dollars in
Thousands)
-----------
<S> <C>
Receivable from brokers and dealers:
Securities borrowed . . . . . . $1,363,989
Other . . . . . . . . . . . . . 21,043
----------
$1,385,032
==========
Payable to brokers and dealers:
Securities loaned . . . . . . . $1,064,916
Other . . . . . . . . . . . . . 9,547
----------
$1,074,463
==========
</TABLE>
Page 8 of 16 Pages
<PAGE> 9
SECURITIES OWNED AND SECURITIES SOLD, NOT YET PURCHASED
The following is a summary of the market value of major categories of
securities owned and securities sold, not yet purchased, as of March 31, 1995:
<TABLE>
<CAPTION>
(Dollars in Thousands)
----------------------
Securities
Sold,
Securities Not Yet
Owned Purchased
---------- ---------
<S> <C> <C>
Corporate equity securities . . . . . . . . . $ 82,589 $70,741
High-yield securities . . . . . . . . . . . . 27,342 20,842
Corporate debt securities . . . . . . . . . . 10,345 1,289
U.S. Government and Agency obligations . . . 12,674 --
Options . . . . . . . . . . . . . . . . . . . 143 41
-------- -------
$133,093 $92,913
======== =======
</TABLE>
In the regular course of its business, Jefferies takes securities
positions as a market-maker to facilitate customer transactions and for
investment purposes. In making markets and when trading for its own account,
Jefferies exposes its own capital to the risk of fluctuations in market value.
Trading profits (or losses) depend primarily upon the skills of the employees
engaged in market-making and position taking, the amount of capital allocated
to positions in securities and the general trend of prices in the securities
markets.
Jefferies monitors its risk by maintaining its securities positions at
or below certain pre-established levels. These levels reduce certain
opportunities to realize profits in the event that the value of such securities
increases. However, they also reduce the risk of loss in the event of a
decrease in such value and result in controlled interest costs incurred on
funds provided to maintain such positions.
The Taxable Fixed Income Department trades high grade and
non-investment grade public and private debt securities. The Department
specializes in trading and making markets in over 300 unrated or less than
investment grade corporate debt securities and accounts for these positions at
market value. Risk of loss upon default by the borrower is significantly
greater with respect to unrated or less than investment grade corporate debt
securities than with other corporate debt securities. These securities are
generally unsecured and are often subordinated to other creditors of the
issuer. These issuers usually have high levels of indebtedness and are more
sensitive to adverse economic conditions, such as recession or increasing
interest rates, than are investment grade issuers. There is a limited market
for some of these securities and market quotes are generally available from a
small number of dealers.
INCOME TAXES
Deferred tax liabilities and assets are determined based on the
difference between the financial statement and tax bases of assets and
liabilities using enacted tax rates in effect for the year in which the
differences are expected to reverse.
Page 9 of 16 Pages
<PAGE> 10
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash in banks and short term
investments. Cash equivalents are part of the cash management activities of
the Company and generally mature within 90 days. The following is a summary of
cash and cash equivalents as of March 31, 1995:
<TABLE>
<CAPTION>
(Dollars in
Thousands)
-----------
<S> <C>
Cash in banks . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,432
Short term investments . . . . . . . . . . . . . . . . . . . . 65,359
-----------
$ 76,791
===========
</TABLE>
MINORITY INTEREST
Minority interest represents the minority stockholders' proportionate share
of the equity of ITGI. At March 31, 1995, Jefferies Group, Inc. owned 80.9% of
ITGI's common stock.
NET CAPITAL REQUIREMENTS
As registered broker-dealers, Jefferies, W & D and ITG are subject to the
Securities and Exchange Commission's Uniform Net Capital Rule (Rule 15c3-1),
which requires the maintenance of minimum net capital. Jefferies, ITG and W &
D have elected to use the alternative method permitted by the Rule, which
requires that they each maintain minimum net capital, as defined, equal to the
greater of $250,000 or 2% of the aggregate debit balances arising from customer
transactions, as defined.
Net capital changes from day to day, but as of March 31, 1995, Jefferies'
net capital of $95.6 million exceeded its minimum net capital requirements by
$88.7 million. ITG's net capital of $22.7 million exceeded its minimum net
capital requirements by $22.4 million. W & D's net capital of $846,000
exceeded its minimum net capital requirements by $596,000.
QUARTERLY DIVIDENDS
In 1988, the Company instituted a policy of paying regular quarterly
dividends. There are no restrictions on the Company's present ability to pay
dividends on common stock, other than the governing provisions of the Delaware
General Corporation Law.
Dividends per Common Share (declared and paid):
<TABLE>
<CAPTION>
1st Qtr.
<S> <C>
1995.................. $.05
1994.................. $.05
</TABLE>
OFF-BALANCE SHEET RISK
The Company has contractual commitments arising in the ordinary course of
business for bank loans, securities loaned or purchased under agreements to
sell, securities sold but not yet purchased, future purchases and sales of
foreign currencies, securities transactions on a when-issued basis, options
contracts and underwriting. Each of these financial instruments and activities
contains varying degrees of off-balance sheet risk whereby the market values of
the securities underlying the financial instruments may be in excess of, or
less than, the contract amount. The settlement of these transactions is not
expected to have a material effect upon the Company's consolidated financial
statements.
In the normal course of business, the Company had letters of credit
Page 10 of 16 Pages
<PAGE> 11
outstanding aggregating $13.9 million at March 31, 1995, to satisfy various
collateral requirements in lieu of depositing cash or securities.
CREDIT RISK
In the normal course of business, the Company is involved in the execution,
settlement and financing of various customer and principal securities
transactions. Customer activities are transacted on a cash, margin or
delivery-versus-payment basis. Securities transactions are subject to the risk
of counterparty or customer nonperformance. However, transactions are
collateralized by the underlying security, thereby reducing the associated risk
to changes in the market value of the security through settlement date or to
the extent of margin balances.
Page 11 of 16 Pages
<PAGE> 12
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
ANALYSIS OF FINANCIAL CONDITION
Total assets increased $237.0 million from $1,557.3 million at December 31,
1994 to $1,794.3 million at March 31, 1995. The increase is mostly due to an
increase in receivable from brokers and dealers related to securities borrowed.
The increase in securities borrowed is a result of an increase in payable to
brokers and dealers (related to securities loaned).
FIRST QUARTER 1995 VERSUS FIRST QUARTER 1994
Revenues, net of interest expense, increased $10.5 million, or 15%, in the
first quarter of 1995 compared to the same prior year period. The increase was
due primarily to a $5.7 million, or 64%, increase in corporate finance, a $3.3
million, or 19%, increase in principal transactions, an $833,000, or 45%,
increase in net interest income (interest revenues less interest expense), and
a $694,000, or 2%, increase in commissions. Other revenues remained relatively
unchanged from last year. Commission revenues increased, led by the Investment
Technology Group, but partially offset by the Taxable Fixed Income Department
and the Equities Division which recorded declines. Revenues from principal
transactions increased primarily due to increased trading gains in the Equities
Division, International Division and other proprietary trading. Corporate
finance revenue included $12.9 million from one debt underwriting. Net
interest income increased as the $9.7 million increase in interest revenues
exceeded the $8.9 million increase in interest expense. Interest revenues
increased due primarily to higher interest rates on larger stock borrow
balances. The related increases in interest on stock loan and customer short
balances only partially offset the growth in interest revenues.
Total non-interest expenses increased $7.7 million, or 13%, in the first
quarter of 1995 compared to the same prior year period. Compensation and
benefits increased $4.8 million, or 13%, largely due to higher incentive based
compensation accruals. Other expense increased $1.6 million, or 23%, mostly
due to higher soft dollar and technology development expenses.
Telecommunications and data processing services increased $954,000, or 21%,
primarily due to increased personnel and trade volumes. Floor brokerage and
clearing fees, occupancy and equipment rental, travel and promotional, and
software royalties remained relatively unchanged from last year.
Earnings before income taxes and minority interest were up 27% to $13.0
million, as compared to $10.2 million in the 1994 period. The effective tax
rate was approximately 44.7% in the first quarter of 1995 compared to
approximately 43.0% in the 1994 period.
Minority interest (approximately 19% of the earnings of ITGI) was $606,000
in the first quarter of 1995. There was no minority interest recorded in the
comparable 1994 period, because no minority interest existed until ITGI went
public in May, 1994.
Primary earnings per share were $1.10 in the first quarter of 1995 on
6,001,000 shares compared to $.95 in the 1994 period on 6,051,000 shares.
Fully diluted earnings per share were $1.10 in the first quarter of 1995 on
6,005,000 shares compared to $.95 in the 1994 period on 6,075,000 shares.
During the first quarter of 1995, the Company repurchased 172,734 shares of
its common stock versus repurchases of 35,925 shares for the comparable 1994
period.
Page 12 of 16 Pages
<PAGE> 13
The Company's principal activities, securities brokerage and the trading of
and market-making in securities, are highly competitive and extremely volatile.
The earnings of the Company are subject to wide fluctuations since many factors
over which the Company has little or no control, particularly the overall
volume of trading and the volatility and general level of market prices, may
significantly affect its operations. The following provides a breakdown of
total revenues by source for the three months ended March 31, 1995 and March
25, 1994.
<TABLE>
<CAPTION>
For the Three Months Ended
-----------------------------------------
March 31, 1995 March 25, 1994
-------------- --------------
% of % of
Total Total
Amount Revenues Amount Revenues
------ -------- ------ --------
(Dollars in Thousands)
<S> <C> <C> <C> <C>
Equities Division . . . . . . . . . . . . . . $ 32,498 34% $ 31,369 41%
Investment Technology Group . . . . . . . . . 15,320 16 13,434 18
International Division . . . . . . . . . . . . 8,491 9 7,511 10
Taxable Fixed Income Department . . . . . . . 1,452 2 3,563 5
Convertible Division . . . . . . . . . . . . . 1,723 2 1,050 1
Other Proprietary Trading . . . . . . . . . . 1,845 2 381 0
Corporate Finance . . . . . . . . . . . . . . 14,544 15 8,875 12
Interest . . . . . . . . . . . . . . . . . . . 18,030 19 8,338 11
Other . . . . . . . . . . . . . . . . . . . . 1,110 1 1,169 2
--------- ---- ----- ----
Total revenues . . . . . . . . . . . . . . $ 95,013 100% $ 75,690 100%
========= ==== ======== ====
</TABLE>
Page 13 of 16 Pages
<PAGE> 14
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
11. Computation of Earnings Per Share
(Page 15 attached)
(b) Reports on Form 8-K.
There were no reports filed on Form 8-K during the quarter ended
March 31, 1995.
Page 14 of 16 Pages
<PAGE> 15
EXHIBIT 11
JEFFERIES GROUP, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(AMOUNTS IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
For The
Three Months Ended
---------------------
March 31, March 25,
1995 1994
--------- ---------
<S> <C> <C>
Common stock and common stock
equivalents:
Average common stock outstanding . . . . . . . . . . . . . . . 5,535 5,721
Common stock equivalent shares
related to employee stock
options and restricted stock . . . . . . . . . . . . . . . . 466 330
------ ------
Total average common stock and
common stock equivalents
used for primary computation . . . . . . . . . . . . . . . 6,001 6,051
Adjustment of average common
stock equivalents to period-end
market price, if higher than
average price . . . . . . . . . . . . . . . . . . . . . . . . . 4 24
------ ------
Total average common stock,
common stock equivalents
and other dilutive securities . . . . . . . . . . . . . . . 6,005 6,075
====== ======
Earnings:
Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . $6,595 $5,839
Adjustment to subsidiary earnings - common stock
equivalents on subsidiary . . . . . . . . . . . . . . . . . -- 90
------ ------
Total earnings for primary
and fully diluted computation . . . . . . . . . . . . . . . $6,595 $5,749
====== ======
Earnings per share:
Primary . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.10 $ .95
====== ======
Fully diluted . . . . . . . . . . . . . . . . . . . . . . . . $ 1.10 $ .95
====== ======
</TABLE>
Page 15 of 16 Pages
<PAGE> 16
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
JEFFERIES GROUP, INC.
--------------------------
(Registrant)
Date: May 12, 1995 By: /s/ Clarence T. Schmitz
----------------------- --------------------------
Clarence T. Schmitz
Executive Vice President,
Chief Financial Officer
Page 16 of 16 Pages
<PAGE> 1
EXHIBIT 11
JEFFERIES GROUP, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(AMOUNTS IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
For The
Three Months Ended
---------------------
March 31, March 25,
1995 1994
--------- ---------
<S> <C> <C>
Common stock and common stock
equivalents:
Average common stock outstanding . . . . . . . . . . . . . . . 5,535 5,721
Common stock equivalent shares
related to employee stock
options and restricted stock . . . . . . . . . . . . . . . . 466 330
------ ------
Total average common stock and
common stock equivalents
used for primary computation . . . . . . . . . . . . . . . 6,001 6,051
Adjustment of average common
stock equivalents to period-end
market price, if higher than
average price . . . . . . . . . . . . . . . . . . . . . . . . . 4 24
------ ------
Total average common stock,
common stock equivalents
and other dilutive securities . . . . . . . . . . . . . . . 6,005 6,075
====== ======
Earnings:
Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . $6,595 $5,839
Adjustment to subsidiary earnings - common stock
equivalents on subsidiary . . . . . . . . . . . . . . . . . -- 90
------ ------
Total earnings for primary
and fully diluted computation . . . . . . . . . . . . . . . $6,595 $5,749
====== ======
Earnings per share:
Primary . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.10 $ .95
====== ======
Fully diluted . . . . . . . . . . . . . . . . . . . . . . . . $ 1.10 $ .95
====== ======
</TABLE>
Page 15 of 16 Pages
<TABLE> <S> <C>
<ARTICLE> BD
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM (A) THE
COPNSOLIDATED STATEMENTS OF FINANCIAL CONDITION AND STATEMENTS OF EARNINGS AS OF
MARCH 31, 1995 AND FOR THE QUARTER THEN ENDED AND THE NOTES THERETO AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH (B) FINANCIAL STATEMENTS FILED IN
THE 1ST QUARTER 1995 JEFFERIES GROUP, INC. 10-Q FILING.
</LEGEND>
<MULTIPLIER> 1,000
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<EXCHANGE-RATE> 1
<CASH> 76,791
<RECEIVABLES> 144,538
<SECURITIES-RESALE> 0
<SECURITIES-BORROWED> 1,363,989
<INSTRUMENTS-OWNED> 133,093
<PP&E> 22,655
<TOTAL-ASSETS> 1,794,323
<SHORT-TERM> 11,800
<PAYABLES> 306,375
<REPOS-SOLD> 0
<SECURITIES-LOANED> 1,064,916
<INSTRUMENTS-SOLD> 92,913
<LONG-TERM> 59,651
<COMMON> 91
0
0
<OTHER-SE> 165,242
<TOTAL-LIABILITY-AND-EQUITY> 1,794,323
<TRADING-REVENUE> 20,981
<INTEREST-DIVIDENDS> 18,030
<COMMISSIONS> 40,348
<INVESTMENT-BANKING-REVENUES> 14,544
<FEE-REVENUE> 0
<INTEREST-EXPENSE> 15,347
<COMPENSATION> 41,452
<INCOME-PRETAX> 13,010
<INCOME-PRE-EXTRAORDINARY> 13,010
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,595
<EPS-PRIMARY> 1.10
<EPS-DILUTED> 1.10
</TABLE>
