2020 Q1 Form 10-Q Financial Statement

#000009622320000025 Filed on April 08, 2020

View on sec.gov

Income Statement

Concept 2020 Q1 2019 Q1
Revenue $1.692B $1.195B
YoY Change 41.61% 2.92%
Cost Of Revenue $72.44M $66.92M
YoY Change 8.25% -18.32%
Gross Profit $1.620B $1.128B
YoY Change 43.59% 4.53%
Gross Profit Margin 95.72% 94.4%
Selling, General & Admin $968.0M $630.7M
YoY Change 53.48% -11.91%
% of Gross Profit 59.76% 55.91%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $39.47M $33.93M
YoY Change 16.31% 20.5%
% of Gross Profit 2.44% 3.01%
Operating Expenses $1.007B $664.6M
YoY Change 51.58% -10.68%
Operating Profit $612.4M $463.5M
YoY Change 32.13% 38.32%
Interest Expense $21.55M $23.02M
YoY Change -6.36% 7.07%
% of Operating Profit 3.52% 4.97%
Other Income/Expense, Net
YoY Change
Pretax Income $157.8M $49.32M
YoY Change 219.96% 30.6%
Income Tax $45.80M $2.300M
% Of Pretax Income 29.03% 4.66%
Net Earnings $113.0M $44.81M
YoY Change 152.19% -64.01%
Net Earnings / Revenue 6.68% 3.75%
Basic Earnings Per Share $0.37 $0.14
Diluted Earnings Per Share $0.37 $0.14
COMMON SHARES
Basic Shares Outstanding 302.4M shares 315.2M shares
Diluted Shares Outstanding 308.3M shares 318.8M shares

Balance Sheet

Concept 2020 Q1 2019 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $6.711B $5.517B
YoY Change 21.64% 7.23%
Cash & Equivalents $6.711B $5.517B
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $13.95B $12.75B
YoY Change 9.41% 7.51%
LONG-TERM ASSETS
Property, Plant & Equipment $929.0M
YoY Change
Goodwill $1.739B $1.705B
YoY Change 2.01% -1.09%
Intangibles $178.8M $185.8M
YoY Change -3.8% -74.44%
Long-Term Investments $1.563B $2.381B
YoY Change -34.37% 6.63%
Other Assets $742.0M $1.263B
YoY Change -41.25% -20.06%
Total Long-Term Assets $37.83B $36.21B
YoY Change 4.47% -2.51%
TOTAL ASSETS
Total Short-Term Assets $13.95B $12.75B
Total Long-Term Assets $37.83B $36.21B
Total Assets $51.78B $48.96B
YoY Change 5.76% -0.09%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $9.447B $7.294B
YoY Change 29.52% -0.57%
Accrued Expenses $607.0M
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $623.2M $530.5M
YoY Change 17.47% 13.34%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $20.99B $19.37B
YoY Change 8.39% 5.1%
LONG-TERM LIABILITIES
Long-Term Debt $11.50B $9.338B
YoY Change 23.13% -5.49%
Other Long-Term Liabilities $9.879B $10.28B
YoY Change -3.88% 2.86%
Total Long-Term Liabilities $21.38B $19.62B
YoY Change 8.98% -1.29%
TOTAL LIABILITIES
Total Short-Term Liabilities $20.99B $19.37B
Total Long-Term Liabilities $21.38B $19.62B
Total Liabilities $42.24B $38.86B
YoY Change 8.71% 1.79%
SHAREHOLDERS EQUITY
Retained Earnings $6.001B $5.615B
YoY Change 6.87% 16.17%
Common Stock $3.607B $3.979B
YoY Change -9.36% -21.49%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares 39.35M shares 18.66M shares
Shareholders Equity $9.349B $9.933B
YoY Change
Total Liabilities & Shareholders Equity $51.78B $48.96B
YoY Change 5.76% -0.09%

Cashflow Statement

Concept 2020 Q1 2019 Q1
OPERATING ACTIVITIES
Net Income $113.0M $44.81M
YoY Change 152.19% -64.01%
Depreciation, Depletion And Amortization $39.47M $33.93M
YoY Change 16.31% 20.5%
Cash From Operating Activities -$918.1M -$784.0M
YoY Change 17.11% 93.45%
INVESTING ACTIVITIES
Capital Expenditures -$61.00M -$46.10M
YoY Change 32.32% 8.98%
Acquisitions
YoY Change
Other Investing Activities -$2.560M $0.00
YoY Change -100.0%
Cash From Investing Activities -$49.31M $1.075B
YoY Change -104.59% -518.62%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $310.2M $214.7M
YoY Change 44.5% 7850.41%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$316.2M -$38.34M
YoY Change 724.7% -104.38%
NET CHANGE
Cash From Operating Activities -$918.1M -$784.0M
Cash From Investing Activities -$49.31M $1.075B
Cash From Financing Activities -$316.2M -$38.34M
Net Change In Cash -$1.286B $265.8M
YoY Change -584.09% 23.56%
FREE CASH FLOW
Cash From Operating Activities -$918.1M -$784.0M
Capital Expenditures -$61.00M -$46.10M
Free Cash Flow -$857.1M -$737.9M
YoY Change 16.16% 103.29%

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0 USD
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639000 USD
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355000 USD
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CY2019Q1 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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9947000 USD
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CY2020Q1 us-gaap Nature Of Operations
NatureOfOperations
Nature of Operations<div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;padding-bottom:10px;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">Jefferies Financial Group Inc. ("Jefferies," "we," "our" or the "Company") is a diversified financial services company engaged in investment banking and capital markets, asset management and direct investing. Jefferies Group LLC ("Jefferies Group"), our largest subsidiary, is the largest independent full-service global investment banking firm headquartered in the U.S. </span></div><div style="line-height:120%;padding-bottom:10px;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">Jefferies Group operates in </span><span style="font-family:inherit;font-size:10pt;"><span>two</span></span><span style="font-family:inherit;font-size:10pt;"> business segments: Investment Banking and Capital Markets and Asset Management. Investment Banking and Capital Markets includes investment banking, capital markets and other related services. Investment banking provides underwriting and financial advisory services to clients across most industry sectors in the Americas, Europe and Asia. Capital markets businesses operate across the spectrum of equities, fixed income and foreign exchange products. Related services include, among other things, prime brokerage and equity finance, research and strategy, corporate lending and real estate finance. </span></div><div style="line-height:120%;padding-bottom:10px;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">Our Asset Management segment includes both the operations of Leucadia Asset Management ("LAM") as well as the asset management operations within Jefferies Group. Within Asset Management, we manage, invest in and provide services to a diverse group of alternative asset management platforms across a spectrum of investment strategies and asset classes. Asset Management offers institutional clients an innovative range of investment strategies through its affiliated managers.</span></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">Merchant Banking is where we own a portfolio of businesses and investments, including Linkem (fixed wireless broadband services in Italy); Vitesse Energy, LLC ("Vitesse Energy Finance") and JETX Energy, LLC ("JETX Energy") (oil and gas production and development); real estate, primarily including HomeFed LLC ("HomeFed"); Idaho Timber (manufacturing); FXCM Group, LLC ("FXCM") (provider of online foreign exchange trading services); and The We Company (global network of workspaces). Our Merchant Banking businesses and investments also included National Beef Packing Company, LLC ("National Beef") (beef processing), prior to its sale in November 2019 and Spectrum Brands Holdings, Inc. ("Spectrum Brands") (consumer products), prior to its distribution to shareholders in October 2019. The structure of each of our investments was tailored to the unique opportunity each transaction presented. Our investments may be reflected in our consolidated results as consolidated subsidiaries, equity investments, securities or in other ways, depending on the structure of our specific holdings.</span></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">We own approximately </span><span style="font-family:inherit;font-size:10pt;"><span>42%</span></span><span style="font-family:inherit;font-size:10pt;"> of the common shares of Linkem, as well as convertible preferred shares which, if converted, would increase our ownership to approximately </span><span style="font-family:inherit;font-size:10pt;"><span>54%</span></span><span style="font-family:inherit;font-size:10pt;"> of Linkem's common equity at </span><span style="font-family:inherit;font-size:10pt;">February 29, 2020</span><span style="font-family:inherit;font-size:10pt;">. Linkem provides residential broadband services in Italy using LTE technologies deployed over the 3.5 GHz spectrum band. Linkem is accounted for under the equity method. </span></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">Vitesse Energy Finance is our </span><span style="font-family:inherit;font-size:10pt;"><span>97%</span></span><span style="font-family:inherit;font-size:10pt;"> owned consolidated subsidiary that acquires and invests in non-operated working interests and royalties predominantly in the Bakken Shale oil field in North Dakota. JETX Energy is our </span><span style="font-family:inherit;font-size:10pt;"><span>98%</span></span><span style="font-family:inherit;font-size:10pt;"> owned consolidated subsidiary that currently has non-operated working interests and acreage in east Texas.</span></div><div style="line-height:120%;padding-bottom:16px;padding-top:16px;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">HomeFed is our consolidated subsidiary that owns and develops residential and mixed use real estate properties. Prior to July 1, 2019, we owned approximately </span><span style="font-family:inherit;font-size:10pt;"><span>70%</span></span><span style="font-family:inherit;font-size:10pt;"> of HomeFed and accounted for it under the equity method. On July 1, 2019, we completed a merger with HomeFed by which we acquired the remaining common stock of HomeFed. From July 1, 2019, the results of HomeFed are reflected on a consolidated basis.</span></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">Idaho Timber is our consolidated subsidiary engaged in the manufacture and distribution of various wood products.</span></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">Our investment in FXCM and associated companies consist of a senior secured term loan due February 15, 2021, (</span><span style="font-family:inherit;font-size:10pt;"><span>$71.6 million</span></span><span style="font-family:inherit;font-size:10pt;"> principal outstanding at </span><span style="font-family:inherit;font-size:10pt;">February 29, 2020</span><span style="font-family:inherit;font-size:10pt;">); a </span><span style="font-family:inherit;font-size:10pt;"><span>50%</span></span><span style="font-family:inherit;font-size:10pt;"> voting interest in FXCM and rights to a majority of all distributions in respect of the equity of FXCM.</span></div><div style="line-height:120%;padding-bottom:16px;padding-top:16px;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">We invested </span><span style="font-family:inherit;font-size:10pt;"><span>$9.0 million</span></span><span style="font-family:inherit;font-size:10pt;"> in 2013 in The We Company, which creates collaborative office communities, and have received </span><span style="font-family:inherit;font-size:10pt;"><span>$31.0 million</span></span><span style="font-family:inherit;font-size:10pt;"> in cash to date. We own less than </span><span style="font-family:inherit;font-size:10pt;"><span>1%</span></span><span style="font-family:inherit;font-size:10pt;"> of The We Company. Our interest in The We Company is reflected in Financial instruments owned, at fair value in our financial statements.</span></div>
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DeferredTaxAssetsLiabilitiesNet
462500000 USD
CY2020Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
45800000 USD
CY2020Q1 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.290
CY2019Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
2300000 USD
CY2019Q1 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.047
CY2019Q1 jef Tax Cuts And Jobs Actof2017 Measurement Period Adjustment Income Tax Expense Benefit
TaxCutsAndJobsActof2017MeasurementPeriodAdjustmentIncomeTaxExpenseBenefit
-6700000 USD
CY2020Q1 jef Net Income Loss Available To Common Stockholders
NetIncomeLossAvailableToCommonStockholders
113010000 USD
CY2019Q1 jef Net Income Loss Available To Common Stockholders
NetIncomeLossAvailableToCommonStockholders
44811000 USD
CY2020Q1 us-gaap Participating Securities Distributed And Undistributed Earnings Loss Basic
ParticipatingSecuritiesDistributedAndUndistributedEarningsLossBasic
695000 USD
CY2019Q1 us-gaap Participating Securities Distributed And Undistributed Earnings Loss Basic
ParticipatingSecuritiesDistributedAndUndistributedEarningsLossBasic
255000 USD
CY2020Q1 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
112315000 USD
CY2019Q1 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
44556000 USD
CY2020Q1 us-gaap Undistributed Earnings Diluted
UndistributedEarningsDiluted
-3000 USD
CY2019Q1 us-gaap Undistributed Earnings Diluted
UndistributedEarningsDiluted
-7000 USD
CY2020Q1 us-gaap Convertible Preferred Dividends Net Of Tax
ConvertiblePreferredDividendsNetOfTax
1422000 USD
CY2019Q1 us-gaap Convertible Preferred Dividends Net Of Tax
ConvertiblePreferredDividendsNetOfTax
0 USD
CY2020Q1 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
113734000 USD
CY2019Q1 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
44549000 USD
CY2020Q1 jef Weighted Average Common Shares Outstanding
WeightedAverageCommonSharesOutstanding
286682000 shares
CY2019Q1 jef Weighted Average Common Shares Outstanding
WeightedAverageCommonSharesOutstanding
304533000 shares
CY2020Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
302406000 shares
CY2019Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
315175000 shares
CY2020Q1 jef Incremental Common Shares Attributable To Redeemable Convertible Preferred Shares
IncrementalCommonSharesAttributableToRedeemableConvertiblePreferredShares
4441000 shares
CY2019Q1 jef Incremental Common Shares Attributable To Redeemable Convertible Preferred Shares
IncrementalCommonSharesAttributableToRedeemableConvertiblePreferredShares
0 shares
CY2020Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
308280000 shares
CY2019Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
318752000 shares
CY2020Q1 us-gaap Incremental Common Shares Attributable To Participating Nonvested Shares With Non Forfeitable Dividend Rights
IncrementalCommonSharesAttributableToParticipatingNonvestedSharesWithNonForfeitableDividendRights
1902000 shares
CY2019Q1 us-gaap Incremental Common Shares Attributable To Participating Nonvested Shares With Non Forfeitable Dividend Rights
IncrementalCommonSharesAttributableToParticipatingNonvestedSharesWithNonForfeitableDividendRights
1831000 shares
CY2019Q1 us-gaap Stock Repurchase Program Authorized Amount1
StockRepurchaseProgramAuthorizedAmount1
500000000.0 USD
CY2020Q1 us-gaap Stock Repurchase Program Authorized Amount1
StockRepurchaseProgramAuthorizedAmount1
250000000.0 USD
CY2019Q3 us-gaap Stock Repurchase Program Number Of Shares Authorized To Be Repurchased
StockRepurchaseProgramNumberOfSharesAuthorizedToBeRepurchased
9250000 shares
CY2020Q1 us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
14655217 shares
CY2020Q1 us-gaap Stock Repurchased During Period Value
StockRepurchasedDuringPeriodValue
325500000 USD
CY2020Q1 us-gaap Treasury Stock Acquired Average Cost Per Share
TreasuryStockAcquiredAverageCostPerShare
22.21
CY2020Q1 us-gaap Stock Repurchase Program Remaining Authorized Repurchase Amount1
StockRepurchaseProgramRemainingAuthorizedRepurchaseAmount1
139700000 USD
CY2020Q1 us-gaap Contractual Obligation Future Minimum Payments Due Remainder Of Fiscal Year
ContractualObligationFutureMinimumPaymentsDueRemainderOfFiscalYear
6451600000 USD
CY2020Q1 us-gaap Contractual Obligation Due In Second Year
ContractualObligationDueInSecondYear
577300000 USD
CY2020Q1 jef Contractual Obligation Due In Third And Fourth Years
ContractualObligationDueInThirdAndFourthYears
85000000.0 USD
CY2020Q1 jef Contractual Obligation Due In Fifth And Sixth Years
ContractualObligationDueInFifthAndSixthYears
19900000 USD
CY2020Q1 jef Contractual Obligation Due In Seventh Year And Thereafter
ContractualObligationDueInSeventhYearAndThereafter
13100000 USD
CY2020Q1 us-gaap Contractual Obligation
ContractualObligation
7146900000 USD
CY2020Q1 jef Outstanding Loan Commitmentsto Clients
OutstandingLoanCommitmentstoClients
70000000.0 USD
CY2020Q1 jef Derivative Contracts Meeting Definitionof A Guarantee
DerivativeContractsMeetingDefinitionofAGuarantee
690800000 USD
CY2020Q1 us-gaap Revenues Net Of Interest Expense
RevenuesNetOfInterestExpense
1386328000 USD
CY2019Q1 us-gaap Revenues Net Of Interest Expense
RevenuesNetOfInterestExpense
828443000 USD
CY2020Q1 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
157794000 USD
CY2019Q1 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
49317000 USD
CY2020Q1 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
39470000 USD
CY2019Q1 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
33934000 USD

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