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Jefferies Group LLC, a wholly-owned subsidiary of
Leucadia National Corporation ( LUK - Snapshot Report) reported its financial result for fiscal second quarter of 2013 (ended May 31) on Jun 18, 2013.
Jefferies net income in the quarter came in at $42.0 million as against $63.5 million in the year-ago quarter.
Net revenue in the quarter was $643.1 million, down from $706.6 million generated in the year-ago quarter. Revenues from Equities increased 21.7% year over year, while that from Fixed-Income sources were down 27.1%. Investment banking revenues were down 6.7% due to lower revenues from Capital markets and Advisory fees. Asset management fees were strong year over year.
Talking of the expenses, total non-operational expenses surged 13.4% year over year while total non-interest expenses were down 4.3% in the quarter. Tax rate in the quarter came in at 38.3%.
Exiting the quarter, Jefferies had $37 billion of total assets excluding goodwill and intangibles while its total equity was $5.2 billion. Cash and cash equivalents were roughly $3.4 billion. Leverage ratio was at 7.5, down from 9.8 in the year-ago quarter.
Jefferies Group LLC is a limited liability company formed as a result of the merger of Jefferies Group, Inc. with Leucadia in Mar 2013. Shares of Jefferies Group Inc. were then converted into 0.81 shares of Leucadia, resulting in roughly 35.2% of the latter’s shares in the hands of Jefferies’ shareholders.
Leucadia is a diversified holding company engaged in beef processing, manufacturing, gaming entertainment, real estate activities, medical product development operations and various other investment-related activities in the United States.
Other major players in the industry are ITT Corporation ( ITT - Analyst Report) , Hutchison Whampoa Ltd. and Compass Diversified Holdings ( CODI - Snapshot Report) , each with a Zacks Rank #1 (Strong Buy).