Leucadia National: Press Release Issued By Jefferies Financial Group Inc. On January 8, 2020 Exhibit FOR IMMEDIATE RELEASE

The following excerpt is from the company's SEC filing.

                                 January 8, 2020

Jefferies Announces 2019 Financial Results

New York, New York, January 8, 2020--Jefferies Financial Group Inc. (NYSE: JEF) today announced its financial results for the three and twelve month periods ended November 30, 2019.

Highlights for the three months ended November 30, 2019:

Net income attributable to Jefferies Financial Group common shareholders of $196 million, or $0.62 per diluted share, primarily reflecting the previously reported $205 million pre-tax gain from the sale of our remaining 31% interest in National Beef, partially offset by a non-cash fair value reduction of $69 million to our investment in The We Company. Results also reflect strong performance in Equities and Fixed Income sales and trading, solid Investment Banking advisory revenues, continued modest results in Leveraged Finance new issuance and solid results at certain of our merchant banking investments

Jefferies Group (Investment Banking, Capital Markets and Asset Management) pre-tax income of

$24 million

and net earnings of

$23 million

Total Net Revenues of

$748 million

Investment Banking Net Revenues of

$393 million

Total Equities and Fixed Income Net Revenues of

$363 million

Asset Management Revenues (before Allocated net interest

$(4) million

Merchant Banking pre-tax income of $238 million, reflecting strong performance by National Beef prior to the closing of the sale of our interest, the related pre-tax gain of $205 million, and solid results at certain of our merchant banking investments, offset by the $69 million fair value adjustment to reduce the value of our investment in We

Return of excess capital, including special dividend of Spectrum Brands Common Stock, share repurchases and cash dividends, totaling approximately $642 million

Jefferies Financial Group had parent company liquidity of $2.2 billion at November 30, 2019

Highlights for the twelve months ended November 30, 2019:

Net income attributable to Jefferies Financial Group common shareholders of $960 million, or $3.03 per diluted share, including the impact of a nonrecurring tax benefit of $545 million; adjusted net income of $415 million

, or $1.32 per diluted share

$325 million

$244 million

$3,113 million

$1,522 million

, down

from 2018 record of

$1,914 million

$1,455 million

$117 million

Merchant Banking pre-tax income of $267 million, reflecting strong operating performance from National Beef and Vitesse, the $205 million pre-tax gain related to the sale of our remaining 31% interest in National Beef and the $72 million gain related to the HomeFed transaction, offset by fair value adjustments to both our investment in We and some of our mark-to-market investments in public companies

Return of excess capital, including special dividend of Spectrum Brands common stock, share repurchases and cash dividends, totaling approximately $1.1 billion; share repurchases during the twelve months ended November 30, 2019 totaled 25.9 million shares for $506 million, or an average price of $19.52 per share

Please refer to the Jefferies Financial Group Annual Letter from our CEO and President for discussion of results and broader perspective on our strategy and outlook. We expect to file our Form 10-K on or about January 28, 2020.

Amounts herein pertaining to November 30, 2019 represent a preliminary estimate as of the date of this earnings release and may be revised upon filing our Annual Report on Form 10-K with the Securities and Exchange Commission ("SEC"). More information on our results of operations for the three and twelve month periods ended November 30, 2019 will be provided upon filing our Annual Report on Form 10-K with the SEC.

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).

For further information, please contact:

Teresa S. Gendron

Chief Financial Officer

Tel. (212) 460-1932

Peregrine C. Broadbent

Jefferies Group LLC

Tel. (212) 284-2338

Allocated net interest represents the allocation of Jefferies Group LLC's long-term debt interest expense to Jefferies Group LLC's Asset Management reportable segment, net of interest income on Jefferies Group LLC's Cash and cash equivalents and other sources of liquidity, which allocation is consistent with Jefferies Group LLC's policy of allocating such items to its business lines. Refer to Jefferies Group LLC's summary of Net Revenues by Source on pages 8 and 9.

Jefferies Financial Group adjusted net income, a non-GAAP measure, is defined as Jefferies Financial Group's net income less accumulated other comprehensive income nonrecurring tax benefit. Jefferies Financial Group adjusted diluted earnings per share, a non-GAAP measure, is defined as Jefferies Financial Group's diluted earnings per share less accumulated other comprehensive income non-recurring tax benefit. Refer to schedule on page 12 for reconciliation to U.S. GAAP amounts.

Summary for Jefferies Financial Group Inc. and Subsidiaries

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended November 30, 2019

Two Months Ended November 30, 2018

Twelve Months Ended November 30, 2019

Eleven Months Ended November 30, 2018

Net revenues

1,106,098

806,594

3,892,976

3,764,034

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

151,320

(24,573

275,613

239,077

Income (loss) related to associated companies

81,229

(27,297

202,995

57,023

232,549

(51,870

478,608

296,100

Income tax provision (benefit)

38,671

(32,552

(483,955

19,008

193,878

(19,318

962,563

277,092

Income from discontinued operations, net of income tax provision of $0, $0, $0 and $47,045

130,063

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

643,921

Net income (loss)

1,051,076

Net (income) loss attributable to the noncontrolling interests

12,975

Net (income) loss attributable to the redeemable noncontrolling interests

(37,263

Preferred stock dividends

(1,276

(5,103

(4,470

Net income (loss) attributable to Jefferies Financial Group Inc. common shareholders

195,541

(20,371

959,593

1,022,318

Basic earnings (loss) per common share attributable to Jefferies Financial Group Inc. common shareholders:

Number of shares in calculation

310,266

329,101

310,694

347,261

Diluted earnings (loss) per common share attributable to Jefferies Financial Group Inc. common shareholders:

316,566

317,032

351,275

A summary of results for the three months ended November 30, 2019 is as follows (in thousands):

Corporate

Parent Company Interest

Consolidation Adjustments

747,802

347,210

10,699

Expenses:

Compensation and benefits

422,548

19,036

16,273

457,857

Cost of sales

86,532

Floor brokerage and clearing fees

58,773

60,027

Interest expense

17,358

Depreciation and amortization

21,404

19,944

42,271

Selling, general and other expenses

221,206

55,783

14,963

(1,219

290,733

Total expenses

723,931

189,903

32,159

954,778

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

23,871

157,307

(21,460

(8,750

Income related to associated companies

81,161

238,468

Income tax provision from continuing operations

A summary of results for the two months ended November 30, 2018 is as follows (in thousands):

761,958

42,204

(5,093

408,504

17,662

433,343

49,570

53,260

52,418

14,635

17,467

27,957

204,764

41,688

(1,019

253,244

683,995

123,636

15,558

(1,861

831,167

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

77,963

(81,432

(8,033

(9,839

(3,232

Loss related to associated companies

(108,729

Income tax benefit from continuing operations

Net loss

A summary of results for the twelve months ended November 30, 2019 is as follows (in thousands):

3,112,530

746,369

32,833

1,684,054

82,832

58,005

1,824,891

319,641

227,471

(4,331

223,140

34,129

53,048

87,177

79,204

70,192

152,871

797,132

175,650

39,820

(2,959

1,009,643

2,787,861

682,444

101,300

(7,290

3,617,363

324,669

63,925

(68,467

(53,048

202,927

266,852

A summary of results for the eleven months ended November 30, 2018 is as follows (in thousands):

3,183,376

571,831

22,300

(13,473

1,736,264

77,169

50,222

1,862,782

307,071

189,068

(4,858

184,210

35,159

54,090

89,249

68,296

48,852

120,317

780,081

150,115

35,049

(3,917

961,328

2,773,709

618,366

88,440

(9,648

3,524,957

409,667

(46,535

(66,140

(54,090

(3,825

10,488

The following financial tables provide information for the results of Jefferies Group LLC and should be read in conjunction with Jefferies Group LLC's Quarterly Report on Form 10-Q for the quarter ended

August 31, 2019

and Annual Report on Form 10-K for the year ended November 30, 2018. Amounts herein pertaining to

November 30, 2019

represent a preliminary estimate as of the date of this earnings release and may be revised in Jefferies Group LLC's Annual Report on Form 10-K for the year ended

Jefferies Group LLC and Subsidiaries

Consolidated Statements of Earnings

(Amounts in Thousands)

Quarter Ended

November 30, 

August 31, 

Revenues:

Commissions and other fees (1)

182,466

171,003

181,271

Principal transactions (2)

135,981

147,993

25,713

Investment banking

400,513

412,533

504,589

Asset management fees and revenues (2)

333,507

383,596

336,605

Other (1)

17,134

22,286

44,681

Total revenues

1,073,536

1,141,631

1,097,943

325,734

364,472

335,985

777,159

Non-interest expenses:

411,936

Non-compensation expenses:

54,247

Technology and communications

87,931

86,649

83,320

Occupancy and equipment rental

31,885

29,300

25,809

Business development

34,728

36,526

39,523

Professional services

45,296

42,379

38,170

Underwriting costs

14,617

14,647

16,485

28,153

18,400

18,924

Total non-compensation expenses

301,383

282,148

275,491

Total non-interest expenses

694,084

Earnings before income taxes

83,075

Income tax expense

18,250

16,313

Net earnings

23,376

64,825

61,650

Net earnings (loss) attributable to noncontrolling interests

(1,784

Net earnings attributable to Jefferies Group LLC

25,160

64,968

61,393

Pre-tax operating margin

Effective tax rate

In the third quarter of 2019, Jefferies Group LLC reorganized the presentation of certain other fees, primarily related to prime brokerage services offered to clients. Jefferies Group LLC's Consolidated Statement of Earnings reflects the reclassification of revenues of $7.6 million from Other revenues to Commissions and other fees for the three months ended November 30, 2018. There is no impact on Total revenues as a result of this change in presentation.

In the fourth quarter of 2019, Jefferies Group LLC reorganized the presentation of revenues from arrangements which entitle us to certain portions of revenues and/or profits of strategic asset management partners. Such arrangements did not exist prior to the first quarter of 2019 and Jefferies Group LLC's Consolidated Statement of Earnings reflects the reclassification of revenues of $0.9 million from Principal transactions revenues to Asset management fees and revenues for the three months ended August 31, 2019. There is no impact on Total revenues as a result of this change in presentation.

November 30, 2018

676,309

663,465

766,192

524,296

1,528,729

1,910,203

20,285

21,214

1,496,529

1,207,095

96,488

103,359

4,584,532

4,429,632

1,472,002

1,246,256

335,395

305,655

119,472

100,952

138,158

163,756

162,668

139,885

50,662

64,317

69,981

73,812

1,103,807

1,037,445

80,284

250,650

244,385

159,017

(1,644

246,029

158,761

Effective tax rate (2)

In the third quarter of 2019, Jefferies Group LLC reorganized the presentation of certain other fees, primarily related to prime brokerage services offered to clients. Jefferies Group LLC's Consolidated Statement of Earnings reflects the reclassification of revenues of $28.3 million from Other revenues to Commissions and other fees for the twelve months ended November 30, 2018. There is no impact on Total revenues as a result of this change in presentation.

The effective tax rate for the twelve months ended November 30, 2018 includes an estimated provisional tax charge of approximately $165 million as a result of the Tax Cuts and Jobs Act ("Tax Act").

Selected Statistical Information

(Amounts in Thousands, Except Other Data)

Net Revenues by Source:

200,128

193,229

164,086

Fixed income

163,016

148,334

86,826

Total sales and trading

363,144

341,563

250,912

Equity

105,119

97,494

127,942

100,359

101,689

152,335

Capital markets

205,478

199,183

280,277

Advisory

195,035

213,350

224,312

Other investment banking

(7,501

(9,108

17,523

Total investment banking

393,012

403,425

522,112

12,374

22,448

Total Capital Markets (1) (2)

761,104

757,362

795,472

Asset management fees and revenues (3)

Investment return (3) (4) (5)

(7,637

24,866

(23,783

Allocated net interest (4) (6)

(9,600

(9,289

(14,815

Total Asset Management

(13,302

19,797

(33,514

Other Data:

Number of trading days

Number of trading loss days

Average firmwide VaR (in millions) (7)

Includes net interest revenue of $22.6 million, $30.4 million and $19.7 million for the quarters ended November 30, 2019, August 31, 2019, and November 30, 2018, respectively.

Allocated net interest is not separately disaggregated in presenting our Capital Markets reportable segment within Jefferies Group LLC's Net Revenues by Source. This presentation is aligned to our Capital Markets internal performance measurement.

In the fourth quarter of 2019, Jefferies Group LLC reorganized the presentation of revenues from arrangements which entitle us to certain portions of revenues and/or profits of strategic asset management partners. Such arrangements did not exist prior to the first quarter of 2019 and Jefferies Group LLC's Net Revenues by Source reflects the reclassification of revenues of $0.9 million from Investment return revenues to Asset management fees and revenues for the three months ended August 31, 2019. There is no impact on Total Asset Management revenues as a result of this change in presentation.

Beginning with the first quarter of 2019, Net revenues attributed to the Investment return in Jefferies Group LLC's Asset Management reportable segment have been disaggregated to separately present Investment return and Allocated net interest (see footnotes 5 and 6). This disaggregation is intended to increase transparency and to make clearer actual Investment return. We offer third-party investors the opportunity to co-invest in our asset management funds and separately managed accounts alongside Jefferies Group LLC. We believe that aggregating Investment return and Allocated net interest would obscure the Investment return by including an amount that is unique to Jefferies Group LLC's credit spreads, debt maturity profile, capital structure, liquidity risks and allocation methods, none of which are pertinent to the Investment returns generated by the performance of the portfolio.

Includes net interest expense of $5.2 million, $2.0 million and $4.2 million for the quarters ended November 30, 2019, August 31, 2019, and November 30, 2018, respectively.

Allocated net interest represents the allocation of Jefferies Group LLC's long-term debt interest expense to Jefferies Group LLC's Asset Management reportable segment, net of interest income on Jefferies Group LLC's Cash and cash equivalents and other sources of liquidity (refer to page 10).

VaR estimates the potential loss in value of Jefferies Group LLC's trading positions due to adverse market movements over a one-day time horizon with a 95% confidence level. For a further discussion of the calculation of VaR, see "Value-at-Risk" in Part II, Item 7 "Management's Discussion and Analysis" in Jefferies Group LLC's Annual Report on Form 10-K for the year ended November 30, 2019.

773,979

665,557

681,362

559,712

1,455,341

1,225,269

361,972

454,555

407,336

635,606

769,308

1,090,161

767,421

820,042

(14,617

1,522,112

1,913,841

58,535

45,316

3,035,988

3,184,426

96,805

16,971

Allocated net interest (3) (5)

(40,548

(39,235

76,542

(1,050

Average firmwide VaR (in millions) (6)

Includes net interest revenue of $74.0 million and $8.5 million for the twelve months ended November 30, 2019 and 2018, respectively.

Beginning with the first quarter of 2019, Net revenues attributed to the Investment return in Jefferies Group LLC's Asset Management reportable segment have been disaggregated to separately present Investment return and Allocated net interest (see footnotes 4 and 5). This disaggregation is intended to increase transparency and to make clearer actual Investment return. We offer third-party investors the opportunity to co-invest in our asset management funds and separately managed accounts alongside Jefferies Group LLC. We believe that aggregating Investment return and Allocated net interest would obscure the Investment return by including an amount that is unique to Jefferies Group LLC's credit spreads, debt maturity profile, capital structure, liquidity risks and allocation methods, none of which are pertinent to the Investment returns generated by the performance of the portfolio.

Includes net interest expense of $8.9 million and $8.4 million for the twelve months ended November 30, 2019 and 2018, respectively.

Financial Highlights

(Amounts in Millions, Except Where Noted)

Financial position:

Total assets (1)

43,516

43,094

41,169

Average total assets for the period (1)

52,539

53,097

49,427

Average total assets less goodwill and intangible assets for the period (1)

50,727

51,281

47,653

Cash and cash equivalents (1)

Cash and cash equivalents and other sources of liquidity (1) (2)

Cash and cash equivalents and other sources of liquidity - % total assets (1) (2)

Cash and cash equivalents and other sources of liquidity - % total assets less goodwill and intangible assets (1) (2)

Financial instruments owned (1)

16,363

16,371

16,400

Goodwill and intangible assets (1)

Total equity (including noncontrolling interests) (1)

Total Jefferies Group LLC member's equity (1)

Tangible Jefferies Group LLC member's equity (1) (3)

Level 3 financial instruments:

Level 3 financial instruments owned (1) (4)

Level 3 financial instruments owned - % total assets (1) (4)

Level 3 financial instruments owned - % total financial instruments (1) (4)

Level 3 financial instruments owned - % tangible Jefferies Group LLC member's equity (1) (4)

Other data and financial ratios:

Total long-term capital (1) (5)

12,343

12,219

11,840

Leverage ratio (1) (6)

Tangible gross leverage ratio (1) (7)

Number of trading loss days

Average firmwide VaR (8)

Number of employees, at period end

Financial Highlights - Footnotes

Amounts pertaining to November 30, 2019 represent a preliminary estimate as of the date of this earnings release and may be revised in Jefferies Group LLC's Annual Report on Form 10-K for the fiscal year ended November 30, 2019.

At November 30, 2019, other sources of liquidity include high quality sovereign government securities and reverse repurchase agreements collateralized by U.S. government securities and other high quality sovereign government securities of $973 million, in aggregate, and $377 million, being the estimated amount of additional secured financing that could be reasonably expected to be obtained from Jefferies Group LLC's financial instruments that are currently not pledged after considering reasonable financing haircuts. The corresponding amounts included in other sources of liquidity at August 31, 2019 were $1,063 million and $345 million, respectively, and at November 30, 2018, were $959 million and $499 million, respectively.

Tangible Jefferies Group LLC member's equity (a non-GAAP financial measure) represents total Jefferies Group LLC member's equity less goodwill and identifiable intangible assets. We believe that tangible Jefferies Group LLC member's equity is meaningful for valuation purposes, as financial companies are often measured as a multiple of tangible equity, making these ratios meaningful for investors.

Level 3 financial instruments represent those financial instruments classified as such under Accounting Standards Codification 820, accounted for at fair value and included within Financial instruments owned.

At November 30, 2019, August 31, 2019 and November 30, 2018, total long-term capital includes Jefferies Group LLC's long-term debt of $6,214 million, $6,030 million and $5,657 million, respectively, and total equity. Long-term debt included in total long-term capital is reduced by amounts outstanding under the revolving credit facility, amounts from secured term loans and the amount of debt maturing in less than one year, as applicable.

Leverage ratio equals total assets divided by total equity.

Tangible gross leverage ratio (a non-GAAP financial measure) equals total assets less goodwill and identifiable intangible assets divided by tangible Jefferies Group LLC member's equity. The tangible gross leverage ratio is used by rating agencies in assessing Jefferies Group LLC's leverage ratio.

Non-GAAP Reconciliations

The following tables reconcile Jefferies Financial Group non-GAAP measures to their respective U.S. GAAP measures. Management believes such non-GAAP measures are useful to investors as they allow them to view our results through the eyes of management, while facilitating a comparison across historical periods. These measures should not be considered a substitute for, or superior to, measures prepared in accordance with U.S. GAAP.

Jefferies Financial Group Net Income and Earnings Per Share GAAP Reconciliation

Reconciliation of Jefferies Financial Group net income to adjusted net income (a non-GAAP measure) and diluted earnings per share to adjusted diluted earnings per share (a non-GAAP measure) (in thousands, except per share amounts):

Twelve months ended

 November 30, 2019

Jefferies Financial Group net income (GAAP)

Accumulated other comprehensive income tax benefit (1)

(544,583

Jefferies Financial Group adjusted net income (non-GAAP)

415,010

Jefferies Financial Group diluted earnings per share (GAAP)

Jefferies Financial Group adjusted diluted earnings per share (non-GAAP)

(1) During the second quarter of 2019, in connection with the closing of our corporate available for sale portfolio, we realized a non-cash tax benefit of $545 million. This tax benefit was generated primarily through activity during 2008 to 2010 and since then has remained an unrealized balance within equity until the liquidation of the portfolio. This realization did not impact total equity, as the increase in retained earnings was offset by a corresponding decrease in accumulated other comprehensive income.

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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Quarterly report filed by institutional managers, Holdings - Nov. 13, 2020

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