FOR IMMEDIATE RELEASE                                 October 25, 2018
Contact: Laura Ulbrandt (212) 460-1900



JEFFERIES FINANCIAL GROUP INC.
ANNOUNCES THIRD QUARTER 2018 RESULTS


New York, New York, October 25, 2018--Jefferies Financial Group Inc. (NYSE: JEF) today announced its financial results for the three and nine month periods ended September 30, 2018. Consistent with the estimates in our press release of October 4, 2018, Net income attributable to Jefferies common shareholders was $193 million, or $0.55 per diluted share, for the third quarter, and $1.04 billion, or $2.91 per diluted share, for the nine month period. Pre-tax income, from continuing and discontinued operations, was $273 million for the three month period and $1.4 billion for the nine month period. The results for the third quarter include a pre-tax gain of $222 million recorded as a result of the August closing of the previously reported sale of our interests in Garcadia and its associated real estate, partially offset by a $49 million mark-to-market decrease in the value of our Spectrum Brands investment and a $48 million pre-tax impairment charge related to our investment in Golden Queen, of which $12 million is attributable to the noncontrolling interest.
  
Rich Handler, our CEO, and Brian Friedman, our President, said, "As we discussed during our recent Investor Day, we are pleased and confident in our momentum and future prospects."

Our Board of Directors has declared a quarterly cash dividend equal to $0.125 per Jefferies common share, payable on November 30, 2018 to record holders of Jefferies common shares on November 19, 2018. Our Board also has approved changing our fiscal year-end to November 30. Effective with the fourth quarter of 2018, our reporting will be harmonized with our wholly-owned subsidiary, Jefferies Group LLC.


* * * *

More information on the Company’s results of operations for the three and nine months ended September 30, 2018 will be provided upon filing of the Company’s Form 10-Q with the Securities and Exchange Commission.

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements 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,” 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 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.

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).





SUMMARY FOR JEFFERIES FINANCIAL GROUP AND SUBSIDIARIES
(In thousands, except per share amounts)
(Unaudited)

 
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
 
 
 
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
Net revenues
 
$
1,150,846

 
$
857,223

 
$
2,957,440

 
$
3,020,610

 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before income taxes and income (loss) related to associated companies
 
$
253,825

 
$
(4,509
)
 
$
263,650

 
$
497,212

 
 
 
 
 
 
 
 
 
Income (loss) related to associated companies
 
18,867

 
30,057

 
84,320

 
(84,413
)
 
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes
 
272,692

 
25,548

 
347,970

 
412,799

 
 
 
 
 
 
 
 
 
Income tax provision
 
90,391

 
9,770

 
51,560

 
127,198

 
 
 
 
 
 
 
 
 
Income from continuing operations
 
182,301

 
15,778

 
296,410

 
285,601

 
 
 
 
 
 
 
 
 
Income from discontinued operations, net of income tax provision of $0, $53,490, $47,045 and $90,856
 

 
120,989

 
130,063

 
219,151

 
 
 
 
 
 
 
 
 
Gain on disposal of discontinued operations, net of income tax provision $0, $0, $229,553 and $0
 

 

 
643,921

 

 
 
 
 
 
 
 
 
 
Net income
 
182,301

 
136,767

 
1,070,394

 
504,752

 
 
 
 
 
 
 
 
 
Net (income) loss attributable to the noncontrolling interests
 
12,000

 
(28
)
 
13,208

 
1,941

 
 
 
 
 
 
 
 
 
Net income attributable to the redeemable noncontrolling interests
 
(390
)
 
(36,216
)
 
(37,294
)
 
(64,538
)
 
 
 
 
 
 
 
 
 
Preferred stock dividends
 
(1,276
)
 
(1,172
)
 
(3,619
)
 
(3,203
)
 
 
 
 
 
 
 
 
 
Net income attributable to Jefferies Financial Group Inc. common shareholders
 
$
192,635

 
$
99,351

 
$
1,042,689

 
$
438,952

 
 
 
 
 
 
 
 
 
Basic earnings per common share attributable to Jefferies Financial Group Inc. common shareholders:
 
 
 
 
 
 
 
 
Income from continuing operations
 
$
0.56

 
$
0.04

 
$
0.86

 
$
0.77

Income from discontinued operations
 

 
0.23

 
0.26

 
0.42

Gain on disposal of discontinued operations
 

 

 
1.82

 

Net income
 
$
0.56

 
$
0.27

 
$
2.94

 
$
1.19

 
 
 
 
 
 
 
 
 
Number of shares in calculation
 
341,434

 
367,828

 
353,300

 
368,736

 
 
 
 
 
 
 
 
 
Diluted earnings per common share attributable to Jefferies Financial Group Inc. common shareholders:
 
 
 
 
 
 
 
 
Income from continuing operations
 
$
0.55

 
$
0.04

 
$
0.85

 
$
0.76

Income from discontinued operations
 

 
0.23

 
0.26

 
0.41

Gain on disposal of discontinued operations
 

 

 
1.80

 

Net income
 
$
0.55

 
$
0.27

 
$
2.91

 
$
1.17

 
 
 
 
 
 
 
 
 
Number of shares in calculation
 
350,307

 
370,198

 
357,169

 
375,233






A summary of results for the three months ended September 30, 2018 is as follows (in thousands):
 
Financial Services
 
 
 
 
 
 
 
 
2018
Jefferies Group
 
Other Financial Services
 
Merchant Banking
 
Corporate
 
Parent Company Interest
 
Total
Net revenues
$
774,749

 
$
45,457

 
$
321,948

 
$
8,692

 
$

 
$
1,150,846

 
 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
428,033

 
9,973

 
9,493

 
13,766

 

 
461,265

Cost of sales

 

 
84,876

 

 

 
84,876

Floor brokerage and clearing fees
44,570

 

 

 

 

 
44,570

Interest expense

 
12,723

 
1,359

 

 
14,755

 
28,837

Depreciation and amortization
17,175

 
1,379

 
12,889

 
852

 

 
32,295

Selling, general and other expenses
198,817

 
16,008

 
21,716

 
8,637

 

 
245,178

Total expenses
688,595

 
40,083

 
130,333

 
23,255

 
14,755

 
897,021

Income (loss) from continuing operations before income taxes and income related to associated companies
86,154

 
5,374

 
191,615

 
(14,563
)
 
(14,755
)
 
253,825

Income related to associated companies

 
16,502

 
2,365

 

 

 
18,867

Income (loss) from continuing operations before income taxes
$
86,154

 
$
21,876

 
$
193,980

 
$
(14,563
)
 
$
(14,755
)
 
272,692

Income tax provision from continuing operations
 
 
 
 
 
 
 
 
 
 
90,391

Net income
 
 
 
 
 
 
 
 
 
 
$
182,301








A summary of results for the three months ended September 30, 2017 is as follows (in thousands):
 
Financial Services
 
 
 
 
 
 
 
 
2017
Jefferies Group
 
Other Financial Services
 
Merchant Banking
 
Corporate
 
Parent Company Interest
 
Total
Net revenues
$
802,909

 
$
22,742

 
$
29,657

 
$
1,915

 
$

 
$
857,223

 
 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
462,933

 
9,072

 
10,656

 
10,810

 

 
493,471

Cost of sales

 

 
71,596

 

 

 
71,596

Floor brokerage and clearing fees
42,852

 

 

 

 

 
42,852

Interest expense

 
4,966

 
5,909

 

 
14,737

 
25,612

Depreciation and amortization
15,928

 
2,244

 
9,723

 
865

 

 
28,760

Selling, general and other expenses
153,084

 
15,941

 
23,865

 
6,551

 

 
199,441

Total expenses
674,797

 
32,223

 
121,749

 
18,226

 
14,737

 
861,732

Income (loss) from continuing operations before income taxes and income (loss) related to associated companies
128,112

 
(9,481
)
 
(92,092
)
 
(16,311
)
 
(14,737
)
 
(4,509
)
Income (loss) related to associated companies

 
31,119

 
(1,062
)
 

 

 
30,057

Income (loss) from continuing operations before income taxes
$
128,112

 
$
21,638

 
$
(93,154
)
 
$
(16,311
)
 
$
(14,737
)
 
25,548

Income tax provision from continuing operations
 
 
 
 
 
 
 
 
 
 
9,770

Income from discontinued operations, net of income tax provision
 
 
 
 
 
 
 
 
 
 
120,989

Net income
 
 
 
 
 
 
 
 
 
 
$
136,767







A summary of results for the nine months ended September 30, 2018 is as follows (in thousands):
 
Financial Services
 
 
 
 
 
 
 
 
2018
Jefferies Group
 
Other Financial Services
 
Merchant Banking
 
Corporate
 
Parent Company Interest
 
Total
Net revenues
$
2,419,410

 
$
53,297

 
$
469,980

 
$
14,753

 
$

 
$
2,957,440

 
 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
1,326,887

 
29,935

 
29,577

 
43,040

 

 
1,429,439

Cost of sales

 

 
257,501

 

 

 
257,501

Floor brokerage and clearing fees
131,792

 

 

 

 

 
131,792

Interest expense

 
26,367

 
3,996

 

 
44,251

 
74,614

Depreciation and amortization
50,829

 
4,837

 
34,095

 
2,599

 

 
92,360

Selling, general and other expenses
572,980

 
54,081

 
56,201

 
24,822

 

 
708,084

Total expenses
2,082,488

 
115,220

 
381,370

 
70,461

 
44,251

 
2,693,790

Income (loss) from continuing operations before income taxes and income related to associated companies
336,922

 
(61,923
)
 
88,610

 
(55,708
)
 
(44,251
)
 
263,650

Income related to associated companies

 
58,204

 
26,116

 

 

 
84,320

Income (loss) from continuing operations before income taxes
$
336,922

 
$
(3,719
)
 
$
114,726

 
$
(55,708
)
 
$
(44,251
)
 
347,970

Income tax provision from continuing operations
 
 
 
 
 
 
 
 
 
 
51,560

Income from discontinued operations, net of income tax provision
 
 
 
 
 
 
 
 
 
 
130,063

Gain on disposal of discontinued operations, net of income tax provision
 
 
 
 
 
 
 
 
 
 
643,921

Net income
 
 
 
 
 
 
 
 
 
 
$
1,070,394







A summary of results for the nine months ended September 30, 2017 is as follows (in thousands):
 
Financial Services
 
 
 
 
 
 
 
 
2017
Jefferies Group
 
Other Financial Services
 
Merchant Banking
 
Corporate
 
Parent Company Interest
 
Total
Net revenues
$
2,381,967

 
$
109,284

 
$
525,102

 
$
4,257

 
$

 
$
3,020,610

 
 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 

 
 
 
 
 
 
Compensation and benefits
1,374,127

 
26,248

 
32,981

 
35,017

 

 
1,468,373

Cost of sales

 

 
210,834

 

 

 
210,834

Floor brokerage and clearing fees
133,145

 

 

 

 

 
133,145

Interest expense

 
13,830

 
18,731

 

 
44,201

 
76,762

Depreciation and amortization
46,877

 
7,435

 
25,218

 
2,599

 

 
82,129

Selling, general and other expenses
444,724

 
36,641

 
47,333

 
23,457

 

 
552,155

Total expenses
1,998,873

 
84,154

 
335,097

 
61,073

 
44,201

 
2,523,398

Income (loss) from continuing operations before income taxes and income (loss) related to associated companies
383,094

 
25,130

 
190,005

 
(56,816
)
 
(44,201
)
 
497,212

Income (loss) related to associated companies

 
(87,838
)
 
3,425

 

 

 
(84,413
)
Income (loss) from continuing operations before income taxes
$
383,094

 
$
(62,708
)
 
$
193,430

 
$
(56,816
)
 
$
(44,201
)
 
412,799

Income tax provision from continuing operations
 
 
 
 
 
 
 
 
 
 
127,198

Income from discontinued operations, net of income tax provision
 
 
 
 
 
 
 
 
 
 
219,151

Net income
 
 
 
 
 
 
 
 
 
 
$
504,752








View differences made from one to another to evaluate Jefferies Financial Group Inc.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Jefferies Financial Group Inc..

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account