Jefferies Announces Third Quarter 2024 Financial Results

NEW YORK--()--Jefferies Financial Group Inc. (NYSE: JEF):

Q3 Financial Highlights

  • Net earnings attributable to common shareholders of $167 million, or $0.75 per diluted common share
  • Pre-tax income from continuing operations of $253 million
  • QTD and YTD annualized adjusted net earnings to shareholders on adjusted tangible shareholders' equity from continuing operations1 of 10.3% and 10.0%, respectively
  • Net revenues of $1.68 billion
    • Investment Banking net revenues of $949 million, including record quarterly advisory revenues of $592 million
    • Capital Markets net revenues of $671 million
    • Asset Management net revenues (before allocated net interest4) of $75 million
  • At August 31, 2024, we had 205.5 million common shares outstanding and 253.8 million shares outstanding on a fully diluted basis2. Our book value per common share was $48.89 and adjusted tangible book value per fully diluted share3 was $31.87

Quarterly Cash Dividend

The Jefferies Board of Directors declared a quarterly cash dividend equal to $0.35 per Jefferies common share, payable on November 27, 2024 to record holders of Jefferies common shares on November 18, 2024

Management Comments

Our third quarter net revenues of $1.68 billion reflect strong performance and continued momentum in Investment Banking, with particularly strong performance in Advisory and demonstrating the successful ongoing execution of our strategy to drive the growth of our business. We are pleased with the strength and direction of our profit margin and return metrics, and are optimistic about the balance of this year and our outlook for 2025.

"Our Investment Banking net revenues of $949 million were up 18.2% from the prior quarter and 47.3% from the same quarter last year, driven by an increase in advisory activity attributable to market share gains reflecting the early benefits of the investments we have made in our platform over the past few years, as well as improving market conditions.

"Capital Markets net revenues of $671 million were down only 3.0% versus an exceptionally strong prior quarter. Capital Markets net revenues were up 28.1% from the same quarter last year, driven by solid overall market conditions and strength across our diversified Equities and Fixed Income businesses. Equities net revenues increased 42.3% from the prior year comparable quarter, with strong performance in our cash and electronic businesses. Fixed Income net revenues increased 13.2% from the prior year comparable quarter, primarily reflecting strength across our credit trading businesses.

"While the market environment for certain of our Asset Management strategies proved challenging in the third quarter, our full year results are encouraging. Furthermore, we are very happy to have closed on the sale of OpNet during the quarter, the last in a series of transactions that monetized a substantial portion of our legacy merchant-banking assets. Achieving that goal further accelerates our efforts to build the very best ‘pure play’ global investment banking and capital markets firm.

"Our Investment Banking pipeline remains strong heading into year-end and momentum across all of our business lines continues. We feel we have the right (and expanded) global team that is positioned exceptionally well to serve our clients, especially in a backdrop of declining interest rates and increasing activity driven by pent up demand for capital markets and advisory deal flow. After our heavy recent investment in human capital during the slowdown, now is the time for us to focus on executing for our clients and enhancing our overall market position around the world."

Richard Handler, CEO, and Brian Friedman, President

Financial Summary

$ in thousands, except per share amounts

Three Months Ended

August 31,

 

Nine Months Ended

August 31,

 

 

 

2024

 

 

2023

 

% Change

 

2024

 

 

2023

 

% Change

Net revenues:

 

 

 

 

 

 

Investment Banking and Capital Markets

$

1,620,091

 

$

1,168,231

 

39

%

$

4,565,826

 

$

3,446,382

 

32

%

Asset Management

 

59,012

 

 

10,143

 

482

%

 

488,919

 

 

47,699

 

925

%

Other

 

4,449

 

 

3,735

 

19

%

 

23,455

 

 

9,130

 

157

%

Net revenues

 

1,683,552

 

 

1,182,109

 

42

%

 

5,078,200

 

 

3,503,211

 

45

%

Net earnings from continuing operations before income taxes

 

252,687

 

 

91,071

 

177

%

 

700,683

 

 

267,008

 

162

%

Income tax expense

 

78,011

 

 

37,124

 

110

%

 

207,077

 

 

75,053

 

176

%

Net earnings from continuing operations

 

174,676

 

 

53,947

 

224

%

 

493,606

 

 

191,955

 

157

%

Net earnings (losses) from discontinued operations (including gain on disposal), net of income taxes

 

6,363

 

 

 

N/M

 

 

(1,488

)

 

 

N/M

 

Net earnings

 

181,039

 

 

53,947

 

236

%

 

492,118

 

 

191,955

 

156

%

Net losses attributable to noncontrolling interests

 

(6,874

)

 

(3,772

)

82

%

 

(19,102

)

 

(13,340

)

43

%

Net losses attributable to redeemable noncontrolling interests

 

 

 

 

N/M

 

 

 

 

(454

)

(100

)%

Preferred stock dividends

 

20,785

 

 

6,300

 

230

%

 

48,501

 

 

8,316

 

483

%

Net earnings attributable to common shareholders

$

167,128

 

$

51,419

 

225

%

$

462,719

 

$

197,433

 

134

%

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

Basic from continuing operations

$

0.75

 

$

0.22

 

241

%

$

2.12

 

$

0.83

 

155

%

Basic from discontinued operations

 

0.03

 

 

 

N/M

 

 

 

 

 

N/M

 

Basic

$

0.78

 

$

0.22

 

254

%

$

2.12

 

$

0.83

 

156

%

Diluted from continuing operations

$

0.72

 

$

0.22

 

227

%

$

2.06

 

$

0.82

 

151

%

Diluted from discontinued operations

 

0.03

 

 

 

N/M

 

 

 

 

 

N/M

 

Diluted

$

0.75

 

$

0.22

 

243

%

$

2.06

 

$

0.82

 

152

%

 

 

 

 

 

 

 

Weighted average common shares

 

214,452

 

 

228,353

 

 

 

218,106

 

 

236,666

 

 

Weighted average diluted common shares

 

221,699

 

 

232,041

 

 

 

224,180

 

 

240,658

 

 

N/M — Not Meaningful

Highlights

Quarterly Results 2024 Versus 2023

 

Year-to-Date Results 2024 Versus 2023

 

 

 

  • Net earnings attributable to common shareholders of $167 million, or $0.75 per diluted common share.
  • Annualized adjusted net earnings to shareholders on adjusted tangible shareholders' equity from continuing operations1 of 10.3%.
  • We had 205.5 million common shares outstanding and 253.8 million common shares outstanding on a fully diluted basis2 at August 31, 2024. Our book value per common share was $48.89 and tangible book value per fully diluted share3 was $31.87.
  • Effective tax rate of 30.9%. The lower tax rate compared to the prior year quarter of 40.8% is primarily due to the higher amount of pre-tax income in the current quarter.

 

  • Net earnings attributable to common shareholders of $463 million, or $2.06 per diluted common share.
  • Annualized adjusted net earnings to shareholders on adjusted tangible shareholders' equity from continuing operations1 of 10.0%.
  • Repurchased 1.1 million shares of common stock for $44 million, at an average price of $40.72 per share in connection with net-share settlements related to our equity compensation plans.
  • Effective tax rate of 29.6%. The higher tax rate compared to the prior year period of 28.1% is primarily due to the smaller impact from share based awards.

Investment Banking and Capital Markets

 

Investment Banking and Capital Markets

  • Investment Banking net revenues of $949 million were 47% higher than the prior year quarter, with particular strength within Advisory.
  • Advisory net revenues of $592 million represents our best quarter on record and was higher than the prior year quarter, due to market share gains and increased global mergers and acquisitions activity.
  • Underwriting net revenues of $333 million increased from the prior year quarter, driven by stronger leveraged finance activity. Equity underwriting net revenues remained flat compared to the prior year quarter.
  • Capital Markets net revenues of $671 million were higher compared to the prior year quarter primarily due to stronger performance in Equities attributable to increased volumes and more favorable trading opportunities, while Fixed Income net revenues increased primarily reflecting stronger results across our credit trading businesses.

 

  • Investment Banking net revenues of $2.49 billion were 46% higher than the prior year, with strength across all lines of business attributable primarily to market share gains in a stronger overall market for our services.
  • Advisory net revenues of $1.21 billion were higher than prior year period, attributable primarily to market share gains.
  • Underwriting net revenues of $1.13 billion increased from the prior year period, due to increased activity from both equity and debt underwriting.
  • Capital Markets net revenues of $2.07 billion were higher compared to the prior year period primarily driven by stronger Equities net revenues attributable to continued market share gains during the period. Fixed Income net revenues remained consistent from the prior year period.

Asset Management

 

Asset Management

  • Asset Management net revenues of $59 million were substantially higher than the prior year quarter, as Other investments13 net revenues were meaningfully higher due to the consolidation of Stratos and Tessellis, which resulted in increased revenues, as well as the absence this year of losses in OpNet incurred in the prior year quarter. Investment return net revenues decreased from the prior year quarter as the market environment for certain of our strategies proved challenging during the current quarter.

 

  • Asset Management net revenues of $489 million were substantially higher than the prior year period, as Investment return net revenues improved due to stronger performance across multiple investment strategies and funds. In addition, Other investments13 net revenues were meaningfully higher than the prior year period largely due to the consolidation of Stratos and Tessellis which resulted in increased revenues.

* * * *

Amounts herein pertaining to August 31, 2024 represent a preliminary estimate as of the date of this earnings release and may be revised upon filing our Quarterly Report on Form 10-Q with the Securities and Exchange Commission (“SEC”). More information on our results of operations for the three and nine months ended August 31, 2024 will be provided upon filing our Quarterly Report on Form 10-Q with the SEC, which we expect to file on or about October 9, 2024.

This press release contains certain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current views and 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,” "would," 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 may 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. We undertake no obligation to update or revise any such forward-looking statement to reflect subsequent circumstances.

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).

Selected Financial Information

$ in thousands (unaudited)

Three Months Ended

Nine Months Ended

 

August 31,
2024

May 31,
2024

August 31,
2023

August 31,
2024

August 31,
2023

Net revenues by source:

 

 

 

 

 

Advisory

$

592,462

 

$

283,898

 

$

335,271

 

$

1,214,927

 

$

886,606

 

Equity underwriting

 

150,096

 

 

249,187

 

 

154,211

 

 

608,586

 

 

428,085

 

Debt underwriting

 

183,078

 

 

205,499

 

 

110,708

 

 

517,771

 

 

280,772

 

Total underwriting

 

333,174

 

 

454,686

 

 

264,919

 

 

1,126,357

 

 

708,857

 

Other investment banking

 

23,846

 

 

64,594

 

 

44,453

 

 

151,048

 

 

115,957

 

Total Investment Banking

 

949,482

 

 

803,178

 

 

644,643

 

 

2,492,332

 

 

1,711,420

 

Equities

 

381,426

 

 

407,092

 

 

268,015

 

 

1,147,656

 

 

852,000

 

Fixed income

 

289,183

 

 

284,177

 

 

255,573

 

 

925,838

 

 

882,962

 

Total Capital Markets

 

670,609

 

 

691,269

 

 

523,588

 

 

2,073,494

 

 

1,734,962

 

Total Investment Banking and Capital Markets Net revenues5

 

1,620,091

 

 

1,494,447

 

 

1,168,231

 

 

4,565,826

 

 

3,446,382

 

Asset management fees and revenues6

 

13,261

 

 

16,818

 

 

16,358

 

 

89,736

 

 

74,983

 

Investment return

 

(40,135

)

 

32,942

 

 

31,658

 

 

110,447

 

 

91,569

 

Other investments, inclusive of net interest13

 

101,902

 

 

122,767

 

 

(25,145

)

 

335,767

 

 

(83,902

)

Allocated net interest4

 

(16,016

)

 

(16,003

)

 

(12,728

)

 

(47,031

)

 

(34,951

)

Total Asset Management Net revenues

 

59,012

 

 

156,524

 

 

10,143

 

 

488,919

 

 

47,699

 

Other

 

4,449

 

 

5,474

 

 

3,735

 

 

23,455

 

 

9,130

 

Total Net revenues by source

$

1,683,552

 

$

1,656,445

 

$

1,182,109

 

$

5,078,200

 

$

3,503,211

 

 

 

 

 

 

 

Non-interest expenses:

 

 

 

 

 

Compensation and benefits

$

889,098

 

$

861,993

 

$

644,059

 

$

2,677,962

 

$

1,922,985

 

Brokerage and clearing fees

 

101,119

 

 

110,536

 

 

91,226

 

 

321,325

 

 

268,292

 

Underwriting costs

 

14,017

 

 

18,552

 

 

14,877

 

 

51,053

 

 

41,253

 

Technology and communications

 

136,953

 

 

135,238

 

 

122,579

 

 

409,703

 

 

354,900

 

Occupancy and equipment rental

 

30,078

 

 

29,327

 

 

27,711

 

 

87,558

 

 

79,421

 

Business development

 

68,152

 

 

68,630

 

 

41,467

 

 

194,433

 

 

121,892

 

Professional services

 

64,630

 

 

75,493

 

 

64,897

 

 

217,967

 

 

195,572

 

Depreciation and amortization

 

45,977

 

 

49,946

 

 

25,288

 

 

139,125

 

 

83,890

 

Cost of sales

 

37,400

 

 

37,462

 

 

1,618

 

 

109,533

 

 

6,148

 

Other

 

43,441

 

 

41,514

 

 

57,316

 

 

168,858

 

 

161,850

 

Total Non-interest expenses

$

1,430,865

 

$

1,428,691

 

$

1,091,038

 

$

4,377,517

 

$

3,236,203

 

 

 

 

 

 

 

Financial Data and Metrics

Unaudited

Three Months Ended

Nine Months Ended

 

August 31,

2024

May 31,

2024

August 31,

2023

August 31,

2024

August 31,

2023

Other Data:

 

 

 

 

 

Number of trading days

 

63

 

64

 

64

 

188

 

188

Number of trading loss days7

 

7

 

1

 

6

 

11

 

19

Average VaR (in millions)8

$

11.35

$

13.36

$

13.87

$

13.26

$

13.98

In millions, except other data (unaudited)

Three Months Ended

 

August 31,

2024

May 31,

2024

August 31,

2023

Financial position:

 

 

 

Total assets

$

63,275

$

63,001

$

56,045

Cash and cash equivalents

 

10,573

 

10,842

 

8,817

Financial instruments owned

 

24,039

 

22,787

 

22,805

Level 3 financial instruments owned9

 

693

 

691

 

918

Goodwill and intangible assets

 

2,073

 

2,057

 

1,872

Total equity

 

10,115

 

9,952

 

9,765

Total shareholders' equity

 

10,046

 

9,875

 

9,699

Tangible shareholders' equity10

 

7,973

 

7,818

 

7,827

Other data and financial ratios:

 

 

 

Leverage ratio11

 

6.3

 

6.3

 

5.7

Tangible gross leverage ratio12

 

7.7

 

7.8

 

6.9

Number of employees at period end

 

7,624

 

7,611

 

5,505

Number of employees excluding OpNet and Stratos at period end

 

5,926

 

5,635

 

5,505

Components of Numerators and Denominators for Earnings Per Common Share

 

Three Months Ended

August 31,

Nine Months Ended

August 31,

In thousands, except per share amounts

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Numerator for earnings per common share from continuing operations:

 

 

 

 

Net earnings from continuing operations

$

174,676

 

$

53,947

 

$

493,606

 

$

191,955

 

Less: Net losses attributable to noncontrolling interests

 

(6,304

)

 

(3,772

)

 

(16,541

)

 

(13,794

)

Mandatorily redeemable convertible preferred share dividends

 

 

 

 

 

 

 

(2,016

)

Allocation of earnings to participating securities

 

(20,785

)

 

(6,369

)

 

(48,501

)

 

(7,344

)

Net earnings from continuing operations attributable to common shareholders for basic earnings per share

$

160,195

 

$

51,350

 

$

461,646

 

$

196,389

 

Net earnings from continuing operations attributable to common shareholders for diluted earnings per share

$

160,195

 

$

51,350

 

$

461,646

 

$

196,389

 

 

 

 

 

 

Numerator for earnings per common share from discontinued operations:

 

 

 

 

Net earnings (losses) from discontinued operations (including gain on disposal), net of taxes

$

6,363

 

$

 

$

(1,488

)

$

 

Less: Net losses attributable to noncontrolling interests

 

(570

)

 

 

 

(2,561

)

 

 

Net earnings (losses) from discontinued operations attributable to common shareholders for basic and diluted earnings per share

$

6,933

 

$

 

$

1,073

 

$

 

Net earnings attributable to common shareholders for basic earnings per share

$

167,128

 

$

51,350

 

$

462,719

 

$

196,389

 

Net earnings attributable to common shareholders for diluted earnings per share

$

167,128

 

$

51,350

 

$

462,719

 

$

196,389

 

 

 

 

 

 

Denominator for earnings per common share:

 

 

 

 

Weighted average common shares outstanding

 

206,418

 

 

218,411

 

 

209,997

 

 

226,265

 

Weighted average shares of restricted stock outstanding with future service required

 

(2,305

)

 

(1,793

)

 

(2,346

)

 

(1,923

)

Weighted average restricted stock units outstanding with no future service required

 

10,339

 

 

11,735

 

 

10,455

 

 

12,324

 

Weighted average basic common shares

 

214,452

 

 

228,353

 

 

218,106

 

 

236,666

 

Stock options and other share-based awards

 

4,189

 

 

2,047

 

 

3,369

 

 

2,064

 

Senior executive compensation plan restricted stock unit awards

 

3,058

 

 

1,641

 

 

2,705

 

 

1,928

 

Weighted average diluted common shares

 

221,699

 

 

232,041

 

 

224,180

 

 

240,658

 

 

 

 

 

 

Earnings (losses) per common share:

 

 

 

 

Basic from continuing operations

$

0.75

 

$

0.22

 

$

2.12

 

$

0.83

 

Basic from discontinued operations

 

0.03

 

 

 

 

 

 

 

Basic

$

0.78

 

$

0.22

 

$

2.12

 

$

0.83

 

Diluted from continuing operations

$

0.72

 

$

0.22

 

$

2.06

 

$

0.82

 

Diluted from discontinued operations

 

0.03

 

 

 

 

 

 

 

Diluted

$

0.75

 

$

0.22

 

$

2.06

 

$

0.82

 

Notes

  1. Annualized adjusted net earnings to shareholders on adjusted tangible shareholders' equity from continuing operations represents a non-GAAP financial measure. Refer to schedule on page 10 for a reconciliation to U.S. GAAP amounts.
  2. Shares outstanding on a fully diluted basis (a non-GAAP financial measure) is defined as common shares outstanding plus preferred shares, restricted stock units, stock options and other shares. Refer to schedule on page 11 for a reconciliation to U.S. GAAP amounts.
  3. Adjusted tangible book value per fully diluted share (a non-GAAP financial measure) is defined as adjusted tangible book value (a non-GAAP financial measure) divided by shares outstanding on a fully diluted basis (a non-GAAP financial measure). Refer to schedule on page 11 for a reconciliation to U.S. GAAP amounts.
  4. Allocated net interest represents an allocation to Asset Management of certain of our long-term debt interest expense, net of interest income on our Cash and cash equivalents and other sources of liquidity. Allocated net interest has been disaggregated to increase transparency and to present direct Asset Management revenues. We believe that aggregating Allocated net interest would obscure the revenue results by including an amount that is unique to our credit spreads, debt maturity profile, capital structure, liquidity risks and allocation methods.
  5. Allocated net interest is not separately disaggregated for Investment Banking and Capital Markets. This presentation is aligned to our Investment Banking and Capital Markets internal performance measurement.
  6. Asset management fees and revenues include management and performance fees from funds and accounts managed by us as well as our share of fees received by affiliated asset management companies with which we have revenue and profit share arrangements, as well as earnings on our ownership interest in affiliated asset managers.
  7. Number of trading loss days is calculated based on trading activities in our Investment Banking and Capital Markets and Asset Management business segments, excluding certain Other investments.
  8. VaR estimates the potential loss in value of 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 7A "Quantitative and Qualitative Disclosures About Market Risk" in our Annual Report on Form 10-K for the year ended November 30, 2023.
  9. 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.
  10. Tangible shareholders' equity (a non-GAAP financial measure) is defined as shareholders' equity less Intangible assets and goodwill. We believe that tangible shareholders' equity is meaningful for valuation purposes, as financial companies are often measured as a multiple of tangible shareholders' equity, making these ratios meaningful for investors.
  11. Leverage ratio equals total assets divided by total equity.
  12. Tangible gross leverage ratio (a non-GAAP financial measure) equals total assets less goodwill and intangible assets divided by tangible shareholders' equity. The tangible gross leverage ratio is used by rating agencies in assessing our leverage ratio.
  13. Beginning in fiscal 2024, we now refer to "Merchant banking" as “Other investments” in our Asset Management reportable segment.

Non-GAAP Reconciliations

The following tables reconcile our non-GAAP financial measures to their respective U.S. GAAP financial measures. Management believes such non-GAAP financial 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.

Annualized Return on Adjusted Tangible Equity Reconciliation

 

Three Months Ended

August 31,

Nine Months Ended

August 31,

$ in thousands

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net earnings attributable to common shareholders (GAAP)

$

167,128

 

$

51,419

 

$

462,719

 

$

197,433

 

Intangible amortization and impairment expense, net of tax

 

5,958

 

 

1,480

 

 

15,900

 

 

4,700

 

Adjusted net earnings to common shareholders (non-GAAP)

 

173,086

 

 

52,899

 

 

478,619

 

 

202,133

 

Preferred stock dividends

 

20,785

 

 

6,300

 

 

48,501

 

 

8,316

 

Adjusted net earnings to total shareholders (non-GAAP)

$

193,871

 

$

59,199

 

$

527,120

 

$

210,449

 

 

 

 

 

 

Annualized adjusted net earnings to total shareholders (non-GAAP)

$

775,484

 

$

236,796

 

$

702,827

 

$

280,599

 

 

 

 

 

 

Net earnings impact for net (earnings) losses from discontinued operations, net of noncontrolling interests

 

(6,933

)

 

 

 

(1,073

)

 

 

Adjusted net earnings to total shareholders from continuing operations (non-GAAP)

 

186,938

 

 

59,199

 

 

526,047

 

 

210,449

 

Annualized adjusted net earnings to total shareholders from continuing operations (non-GAAP)

 

747,752

 

 

236,796

 

 

701,396

 

 

280,599

 

 

 

 

 

 

 

May 31,

November 30,

 

 

2024

 

 

2023

 

 

2023

 

 

2022

 

Shareholders' equity (GAAP)

$

9,875,056

 

$

9,695,655

 

$

9,709,827

 

$

10,232,845

 

Less: Intangible assets, net and goodwill

 

(2,057,302

)

 

(1,873,123

)

 

(2,044,776

)

 

(1,875,576

)

Less: Deferred tax asset, net

 

(512,042

)

 

(502,442

)

 

(458,343

)

 

(387,862

)

Less: Weighted average impact of dividends and share repurchases

 

(57,836

)

 

(49,481

)

 

(157,739

)

 

(147,972

)

Adjusted tangible shareholders' equity (non-GAAP)

$

7,247,876

 

$

7,270,609

 

$

7,048,969

 

$

7,821,435

 

 

 

 

 

 

Annualized return on adjusted tangible shareholders' equity (non-GAAP)

 

10.7

%

 

3.3

%

 

10.0

%

 

3.6

%

Annualized adjusted net earnings to shareholders on adjusted tangible shareholders' equity from continuing operations (non-GAAP)

 

10.3

%

 

3.3

%

 

10.0

%

 

3.6

%

Adjusted Tangible Book Value and Fully Diluted Shares Outstanding GAAP Reconciliation

Reconciliation of book value (shareholders' equity) to adjusted tangible book value and common shares outstanding to fully diluted shares outstanding:

$ in thousands, except per share amounts August 31, 2024
Book value (GAAP)

$

10,045,945

 

Stock options(1)

 

114,939

 

Intangible assets, net and goodwill

 

(2,073,105

)

Adjusted tangible book value (non-GAAP)

$

8,087,779

 

Common shares outstanding (GAAP)

 

205,495

 

Preferred shares 

 

27,563

 

Restricted stock units ("RSUs")

 

14,298

 

Stock options(1)

 

5,065

 

Other

 

1,378

 

Adjusted fully diluted shares outstanding (non-GAAP)(2)

 

253,799

 

Book value per common share outstanding

$

48.89

 

Adjusted tangible book value per fully diluted share outstanding (non-GAAP)

$

31.87

 

 

 

(1)

Stock options added to book value are equal to the total number of stock options outstanding as of August 31, 2024 of 5.1 million multiplied by the weighted average exercise price of $22.69 on August 31, 2024.

(2)

Fully diluted shares outstanding include vested and unvested RSUs as well as the target number of RSUs issuable under the senior executive compensation plans until the performance period is complete. Fully diluted shares outstanding also include all stock options and the impact of convertible preferred shares if-converted to common shares.

 

Contacts

Jonathan Freedman 212.778.8913

Contacts

Jonathan Freedman 212.778.8913