New York
|
001-05721
|
13-2615557
|
|
|
(State or other jurisdiction of incorporation or organization)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
|
|
|
|
|||
520 Madison Avenue
|
New York,
|
New York
|
10022
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock; Par Value $1.00 Per Share
|
JEF
|
New York Stock Exchange
|
JEFFERIES FINANCIAL GROUP INC.
|
|
|
|
|
|
By:
|
/s/ Teresa S. Gendron
|
Name:
|
Teresa S. Gendron
|
Title:
|
Vice President and Chief Financial Officer
|
|
|
|
Pro Forma Adjustments
|
|
|
|
||||||
|
Jefferies Historical
|
|
Sale of 31% Interest in National Beef
|
|
|
Pro Forma
|
||||||
ASSETS
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
6,011,350
|
|
|
$
|
969,850
|
|
|
(a)
|
$
|
6,981,200
|
|
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations
|
658,335
|
|
|
—
|
|
|
|
658,335
|
|
|||
Trading assets, at fair value, including securities pledged of $12,087,982
|
17,195,916
|
|
|
—
|
|
|
|
17,195,916
|
|
|||
Loans to and investments in associated companies
|
2,346,297
|
|
|
(718,771
|
)
|
|
(b)
|
1,627,526
|
|
|||
Securities borrowed
|
7,895,149
|
|
|
—
|
|
|
|
7,895,149
|
|
|||
Securities purchased under agreements to resell
|
4,499,995
|
|
|
—
|
|
|
|
4,499,995
|
|
|||
Receivables
|
5,826,350
|
|
|
—
|
|
|
|
5,826,350
|
|
|||
Intangible assets, net and goodwill
|
1,921,793
|
|
|
—
|
|
|
|
1,921,793
|
|
|||
Deferred tax asset, net
|
509,772
|
|
|
(63,448
|
)
|
|
(c)
|
446,324
|
|
|||
Other assets
|
2,398,251
|
|
|
—
|
|
|
|
2,398,251
|
|
|||
Total assets
|
$
|
49,263,208
|
|
|
$
|
187,631
|
|
|
|
$
|
49,450,839
|
|
|
|
|
|
|
|
|
||||||
LIABILITIES
|
|
|
|
|
|
|
|
|
||||
Short-term borrowings
|
$
|
518,914
|
|
|
$
|
—
|
|
|
|
$
|
518,914
|
|
Trading liabilities, at fair value
|
10,296,315
|
|
|
—
|
|
|
|
10,296,315
|
|
|||
Securities loaned
|
2,182,865
|
|
|
—
|
|
|
|
2,182,865
|
|
|||
Securities sold under agreements to repurchase
|
8,236,981
|
|
|
—
|
|
|
|
8,236,981
|
|
|||
Other secured financings
|
2,508,589
|
|
|
—
|
|
|
|
2,508,589
|
|
|||
Payables, expense accruals and other liabilities
|
7,350,914
|
|
|
—
|
|
|
|
7,350,914
|
|
|||
Long-term debt
|
7,968,785
|
|
|
—
|
|
|
|
7,968,785
|
|
|||
Total liabilities
|
39,063,363
|
|
|
—
|
|
|
|
39,063,363
|
|
|||
|
|
|
|
|
|
|
||||||
Commitments and contingencies
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
MEZZANINE EQUITY
|
|
|
|
|
|
|
|
|
||||
Redeemable noncontrolling interests
|
27,064
|
|
|
—
|
|
|
|
27,064
|
|
|||
Mandatorily redeemable convertible preferred shares
|
125,000
|
|
|
—
|
|
|
|
125,000
|
|
|||
|
|
|
|
|
|
|
||||||
EQUITY
|
|
|
|
|
|
|
|
|
||||
Common shares, par value $1 per share, authorized 600,000,000 shares; 299,867,942 shares issued and outstanding, after deducting 17,178,934 shares held in treasury
|
299,868
|
|
|
—
|
|
|
|
299,868
|
|
|||
Additional paid-in capital
|
3,731,712
|
|
|
—
|
|
|
|
3,731,712
|
|
|||
Accumulated other comprehensive income (loss)
|
(266,452
|
)
|
|
23
|
|
|
(b)
|
(266,429
|
)
|
|||
Retained earnings
|
6,255,314
|
|
|
187,608
|
|
|
(d)
|
6,442,922
|
|
|||
Total Jefferies Financial Group Inc. shareholders’ equity
|
10,020,442
|
|
|
187,631
|
|
|
|
10,208,073
|
|
|||
Noncontrolling interests
|
27,339
|
|
|
—
|
|
|
|
27,339
|
|
|||
Total equity
|
10,047,781
|
|
|
187,631
|
|
|
|
10,235,412
|
|
|||
|
|
|
|
|
|
|
||||||
Total
|
$
|
49,263,208
|
|
|
$
|
187,631
|
|
|
|
$
|
49,450,839
|
|
|
|
|
Pro Forma Adjustments
|
|
|
|
||||||
|
Jefferies Historical
|
|
Sale of 31% Interest in National Beef
|
|
|
Pro Forma
|
||||||
Revenues:
|
|
|
|
|
|
|
||||||
Commissions and other fees
|
$
|
493,560
|
|
|
$
|
—
|
|
|
|
$
|
493,560
|
|
Principal transactions
|
465,451
|
|
|
—
|
|
|
|
465,451
|
|
|||
Investment banking
|
1,126,479
|
|
|
—
|
|
|
|
1,126,479
|
|
|||
Interest income
|
1,243,278
|
|
|
—
|
|
|
|
1,243,278
|
|
|||
Manufacturing revenues
|
248,227
|
|
|
—
|
|
|
|
248,227
|
|
|||
Other
|
351,544
|
|
|
—
|
|
|
|
351,544
|
|
|||
Total revenues
|
3,928,539
|
|
|
—
|
|
|
|
3,928,539
|
|
|||
Interest expense of Jefferies Group
|
1,141,661
|
|
|
—
|
|
|
|
1,141,661
|
|
|||
Net revenues
|
2,786,878
|
|
|
—
|
|
|
|
2,786,878
|
|
|||
|
|
|
|
|
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|||
Compensation and benefits
|
1,367,034
|
|
|
—
|
|
|
|
1,367,034
|
|
|||
Cost of sales
|
233,109
|
|
|
—
|
|
|
|
233,109
|
|
|||
Floor brokerage and clearing fees
|
163,113
|
|
|
—
|
|
|
|
163,113
|
|
|||
Interest expense
|
69,819
|
|
|
—
|
|
|
|
69,819
|
|
|||
Depreciation and amortization
|
110,600
|
|
|
—
|
|
|
|
110,600
|
|
|||
Selling, general and other expenses
|
718,910
|
|
|
—
|
|
|
|
718,910
|
|
|||
Total expenses
|
2,662,585
|
|
|
—
|
|
|
|
2,662,585
|
|
|||
Income before income taxes and income (loss) related to associated companies
|
124,293
|
|
|
—
|
|
|
|
124,293
|
|
|||
Income (loss) related to associated companies
|
121,766
|
|
|
(137,918
|
)
|
|
(b)
|
(16,152
|
)
|
|||
Income before income taxes
|
246,059
|
|
|
(137,918
|
)
|
|
|
108,141
|
|
|||
Income tax provision (benefit)
|
(522,626
|
)
|
|
(34,851
|
)
|
|
(e)
|
(557,477
|
)
|
|||
Net income
|
768,685
|
|
|
(103,067
|
)
|
|
|
665,618
|
|
|||
Net income attributable to the noncontrolling interests
|
(759
|
)
|
|
—
|
|
|
|
(759
|
)
|
|||
Net income attributable to the redeemable noncontrolling interests
|
(47
|
)
|
|
—
|
|
|
|
(47
|
)
|
|||
Preferred stock dividends
|
(3,827
|
)
|
|
—
|
|
|
|
(3,827
|
)
|
|||
Net income attributable to Jefferies Financial Group Inc. common shareholders
|
$
|
764,052
|
|
|
$
|
(103,067
|
)
|
|
|
$
|
660,985
|
|
|
|
|
|
|
|
|
||||||
Basic earnings per common share attributable to Jefferies Financial Group Inc. common shareholders:
|
|
|
|
|
|
|
||||||
Net income
|
$
|
2.44
|
|
|
|
|
|
$
|
2.11
|
|
||
Number of shares used in calculation
|
310,838
|
|
|
|
|
|
310,838
|
|
||||
|
|
|
|
|
|
|
||||||
Diluted earnings per common share attributable to Jefferies Financial Group Inc. common shareholders:
|
|
|
|
|
|
|
||||||
Net income
|
$
|
2.41
|
|
|
|
|
|
$
|
2.08
|
|
||
Number of shares used in calculation
|
317,181
|
|
|
|
|
|
317,181
|
|
|
|
|
Pro Forma Adjustments
|
|
|
|
||||||||||
|
Jefferies Historical
|
|
Elimination of Discontinued Operations
|
|
Sale of 31% Interest in National Beef
|
|
|
Pro Forma
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Commissions and other fees
|
$
|
634,271
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
$
|
634,271
|
|
Principal transactions
|
232,224
|
|
|
—
|
|
|
—
|
|
|
|
232,224
|
|
||||
Investment banking
|
1,904,870
|
|
|
—
|
|
|
—
|
|
|
|
1,904,870
|
|
||||
Interest income
|
1,294,325
|
|
|
—
|
|
|
—
|
|
|
|
1,294,325
|
|
||||
Manufacturing revenues
|
357,427
|
|
|
—
|
|
|
—
|
|
|
|
357,427
|
|
||||
Other
|
586,611
|
|
|
—
|
|
|
—
|
|
|
|
586,611
|
|
||||
Total revenues
|
5,009,728
|
|
|
—
|
|
|
—
|
|
|
|
5,009,728
|
|
||||
Interest expense of Jefferies Group
|
1,245,694
|
|
|
—
|
|
|
—
|
|
|
|
1,245,694
|
|
||||
Net revenues
|
3,764,034
|
|
|
—
|
|
|
—
|
|
|
|
3,764,034
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation and benefits
|
1,862,782
|
|
|
—
|
|
|
—
|
|
|
|
1,862,782
|
|
||||
Cost of sales
|
307,071
|
|
|
—
|
|
|
—
|
|
|
|
307,071
|
|
||||
Floor brokerage and clearing fees
|
184,210
|
|
|
—
|
|
|
—
|
|
|
|
184,210
|
|
||||
Interest expense
|
89,249
|
|
|
—
|
|
|
—
|
|
|
|
89,249
|
|
||||
Depreciation and amortization
|
120,317
|
|
|
—
|
|
|
—
|
|
|
|
120,317
|
|
||||
Selling, general and other expenses
|
961,328
|
|
|
—
|
|
|
—
|
|
|
|
961,328
|
|
||||
Total expenses
|
3,524,957
|
|
|
—
|
|
|
—
|
|
|
|
3,524,957
|
|
||||
Income from continuing operations before income taxes and income (loss) related to associated companies
|
239,077
|
|
|
—
|
|
|
—
|
|
|
|
239,077
|
|
||||
Income (loss) related to associated companies
|
57,023
|
|
|
—
|
|
|
(110,049
|
)
|
|
(b)
|
(53,026
|
)
|
||||
Income from continuing operations before income taxes
|
296,100
|
|
|
—
|
|
|
(110,049
|
)
|
|
|
186,051
|
|
||||
Income tax provision (benefit)
|
19,008
|
|
|
—
|
|
|
(27,787
|
)
|
|
(e)
|
(8,779
|
)
|
||||
Income from continuing operations
|
277,092
|
|
|
—
|
|
|
(82,262
|
)
|
|
|
194,830
|
|
||||
Income from discontinued operations, including gain on disposal, net of taxes
|
773,984
|
|
|
(773,984
|
)
|
|
—
|
|
|
|
—
|
|
||||
Net income
|
1,051,076
|
|
|
(773,984
|
)
|
|
(82,262
|
)
|
|
|
194,830
|
|
||||
Net loss attributable to the noncontrolling interests
|
12,975
|
|
|
—
|
|
|
—
|
|
|
|
12,975
|
|
||||
Net income attributable to the redeemable noncontrolling interests
|
(37,263
|
)
|
|
37,141
|
|
|
—
|
|
|
|
(122
|
)
|
||||
Preferred stock dividends
|
(4,470
|
)
|
|
—
|
|
|
—
|
|
|
|
(4,470
|
)
|
||||
Net income attributable to Jefferies Financial Group Inc. common shareholders
|
$
|
1,022,318
|
|
|
$
|
(736,843
|
)
|
|
$
|
(82,262
|
)
|
|
|
$
|
203,213
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per common share attributable to Jefferies Financial Group Inc. common shareholders:
|
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations
|
$
|
0.82
|
|
|
|
|
|
|
|
$
|
0.58
|
|
||||
Income from discontinued operations, including gain on disposal
|
2.11
|
|
|
|
|
|
|
|
—
|
|
||||||
Net income
|
$
|
2.93
|
|
|
|
|
|
|
|
$
|
0.58
|
|
||||
Number of shares used in calculation
|
347,261
|
|
|
|
|
|
|
|
347,261
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per common share attributable to Jefferies Financial Group Inc. common shareholders:
|
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations
|
$
|
0.81
|
|
|
|
|
|
|
|
$
|
0.58
|
|
||||
Income from discontinued operations, including gain on disposal
|
2.09
|
|
|
|
|
|
|
|
—
|
|
||||||
Net income
|
$
|
2.90
|
|
|
|
|
|
|
|
$
|
0.58
|
|
||||
Number of shares used in calculation
|
351,275
|
|
|
|
|
|
|
|
351,275
|
|
(a)
|
Represents the increase in cash and cash equivalents resulting from the pro forma consideration received ($970.0 million), net of estimated transaction costs ($0.2 million).
|
(b)
|
Represents the elimination of National Beef's historical financial information.
|
(d)
|
To record the pro forma after-tax gain of $187.6 million that would have been recorded if the transaction had occurred on August 31, 2019. As such, this pro forma gain is based on the net book value of National Beef as of August 31, 2019 and does not reflect activity subsequent to that date. The Company estimates that it will recognize a pre-tax gain from the sale of about $210 million ($157 million after-tax) in the fourth quarter of 2019.
|
(e)
|
Adjustment to record the tax effect of the pro forma adjustments at a combined federal and state statutory tax rate of 25.3% for the nine months ended August 31, 2019 and 25.2% for the eleven months ended November 30, 2018.
|