Leucadia National Corporation (NYSE:LUK) today announced its
financial results for the three month period ended March 31, 2017.
Income before income taxes was $398 million and net income
attributable to Leucadia National Corporation common shareholders
was $281 million, or $0.75 per diluted share. The effective tax
rate of 26% reflects a $32 million benefit resulting from the
repatriation of Jefferies earnings from certain of its foreign
subsidiaries, along with their associated foreign tax credits.
Rich Handler, CEO of Leucadia, and Brian Friedman, President of
Leucadia, said: "We are pleased with yet another quarter of strong
performance across Leucadia. Jefferies' first quarter represents
the fourth straight quarter of improved results. Jefferies'
recorded net revenues for the twelve months ended February 28, 2017
aggregate to nearly $3 billion and reflect the benchmark level of
our capabilities during a stable environment. First quarter
performance was driven by well-balanced contributions of $408
million from Investment Banking and $380 million from Equities and
Fixed Income, reflecting improved debt capital markets performance,
a solid contribution by equity capital markets, a good quarter for
advisory activities and a sales and trading environment that was
reasonably robust for much of the quarter.
"Subsequent to the end of the first quarter, Virtu Financial
agreed to acquire KCG at a price of $20.00 per share, which would
generate a further $98 million gain for our 24% interest in KCG
held at Jefferies, most of which we expect to record in our second
quarter. The transaction is expected to close during the third
quarter. Cumulative net revenues since 2012 from KCG and Jefferies'
KCG investment would be $419 million, including fees received by
Jefferies for its services.
"National Beef, in what is typically a lighter seasonal quarter
for beef processing, more than doubled its pre-tax income from a
year ago, reflecting solid margin conditions throughout the
quarter. Our other businesses, including Berkadia, Garcadia, Idaho
Timber and Vitesse, performed well during the quarter. Leucadia
Asset Management, while still in its early stages, has weathered
its start-up costs and is now making positive contributions to our
operating results. The value of our HRG position was marked up $175
million this quarter. Our results include the pre-tax gain of $180
million related to the previously announced sale of Conwed
Plastics, offset by a non-cash $130 million markdown to adjust the
value of our FXCM equity investment to fair value (reducing our
cumulative gains to about $300 million). While we are disappointed
to be marking down our equity investment in FXCM, we have nearly
recovered the full amount of cash we invested, and look forward to
continued repayments on a principal balance of $123 million and
owning a remaining equity investment value of $187 million."
More information on the Company’s results of operations for the
three months ended March 31, 2017 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 business
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.
SUMMARY FOR LEUCADIA NATIONAL CORPORATION
AND SUBSIDIARIES
(In thousands, except per share
amounts)
(Unaudited)
For the Three Months EndedMarch 31,
2017 2016 Net revenues $ 2,867,982 $ 2,015,106
Income (loss) before income taxes and income (loss) related
to associated companies $ 526,671 $ (322,015 ) Income (loss)
related to associated companies (128,574 ) 20,052
Income (loss) before income taxes 398,097 (301,963 ) Income
tax provision (benefit) 104,174 (83,361 ) Net income
(loss) 293,923 (218,602 ) Net loss attributable to the
noncontrolling interests 523 1,052 Net income attributable
to the redeemable noncontrolling interests (12,022 ) (4,314 )
Preferred stock dividends (1,016 ) (1,016 ) Net
income (loss) attributable to Leucadia National Corporation common
shareholders $ 281,408 $ (222,880 )
Basic earnings (loss) per common share
attributable to Leucadia NationalCorporation common
shareholders:
Net income (loss) $ 0.76 $ (0.60 ) Number of shares
in calculation 369,267 372,367
Diluted earnings (loss) per common share
attributable to LeucadiaNational Corporation common
shareholders:
Net income (loss) $ 0.75 $ (0.60 ) Number of shares
in calculation 375,721 372,367
A summary of results for the three months ended March 31, 2017
and 2016 is as follows (in thousands):
Jefferies
NationalBeef
OtherFinancialServicesBusinessesandInvestments
OtherMerchantBankingBusinessesandInvestments
Corporateand Other
ParentCompanyInterest
Total
2017
Net revenues $ 797,386 $ 1,561,456 $ 56,223 $
445,227 $ 7,690 $ — $ 2,867,982
Expenses: Cost of sales — 1,463,838 — 69,256 — — 1,533,094
Compensation and benefits 460,672 9,312 15,184 4,965 14,050 —
504,183 Floor brokerage and clearing fees 45,858 — — — — — 45,858
Interest — 1,814 9,971 869 — 14,730 27,384 Depreciation and
amortization 15,601 22,399 2,905 7,738 867 — 49,510 Selling,
general and other expenses 142,985 6,990 14,196
9,254 7,857 — 181,282 Total
expenses 665,116 1,504,353 42,256 92,082
22,774 14,730 2,341,311
Income (loss) before income taxesand
income (loss) related toassociated companies
132,270 57,103 13,967 353,145 (15,084 ) (14,730 ) 526,671 Income
(loss) related to associated companies — — (133,003 )
3,849 580 — (128,574 ) Income (loss) before
income taxes $ 132,270 $ 57,103 $ (119,036 ) $
356,994 $ (14,504 ) $ (14,730 ) $ 398,097
Jefferies
NationalBeef
OtherFinancialServicesBusinessesandInvestments
OtherMerchantBankingBusinessesandInvestments
Corporateand Other
ParentCompanyInterest
Total
2016
Net revenues $ 300,786 $ 1,634,451 $ (111,967 ) $
124,980 $ 66,856 $ — $ 2,015,106
Expenses: Cost of sales — 1,569,466 — 78,586 — — 1,648,052
Compensation and benefits 350,119 9,333 13,263 7,244 9,448 —
389,407 Floor brokerage and clearing fees 40,479 — — — — — 40,479
Interest — 3,967 2,922 715 — 14,714 22,318 Depreciation and
amortization 14,590 22,626 2,722 8,729 943 — 49,610 Selling,
general and other expenses 141,395 7,650 8,420
20,830 8,960 — 187,255 Total expenses
546,583 1,613,042 27,327 116,104 19,351
14,714 2,337,121
Income (loss) before income taxesand
income related to associatedcompanies
(245,797 ) 21,409 (139,294 ) 8,876 47,505 (14,714 ) (322,015 )
Income related to associated companies — — 12,993
6,828 231 — 20,052 Income (loss)
before income taxes $ (245,797 ) $ 21,409 $ (126,301 ) $
15,704 $ 47,736 $ (14,714 ) $ (301,963 )
The following table reconciles financial results reported in
accordance with generally accepted accounting principles ("GAAP")
to non-GAAP financial results. This press release contains non-GAAP
financial information to aid investors in viewing our businesses
and investments through the eyes of management while facilitating a
comparison across historical periods. However, these non-GAAP
financial measures should be viewed in addition to, and not as a
substitute for, reported results prepared in accordance with
GAAP.
Net Revenues (In millions) Leucadia
cumulative net revenues related to KCG through first quarter 2017
(GAAP) $ 126 Estimated net revenues subsequent to first quarter
2017 (1) 98 Jefferies net revenues related to KCG prior to Leucadia
merger (2) 195 Cumulative net revenues through date of sale
(Non-GAAP) (1) $ 419 (1) Assumes acquisition of KCG
by Virtu Financial closes. In April 2017, Virtu Financial agreed to
acquire KCG at a price of $20.00 per share. The transaction is
expected to close during the third quarter. (2) Jefferies became a
wholly-owned subsidiary of Leucadia on March 1, 2013.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170427006864/en/
Leucadia National CorporationLaura Ulbrandt, 212-460-1900
Leucadia (NYSE:LUK)
Historical Stock Chart
From Aug 2024 to Sep 2024
Leucadia (NYSE:LUK)
Historical Stock Chart
From Sep 2023 to Sep 2024