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Press Release
Release No. 0106-04
January 25, 2006
RAYMOND JAMES FINANCIAL, INC.
REPORTS RECORD RESULTS IN FIRST QUARTER
ST. PETERSBURG, Fla. – Raymond James Financial, Inc. today reported a 15 percent increase in unaudited net income to a record $45,109,000, or $0.60 per diluted share, for the first quarter ended December 31, 2005, on net revenues of $526,536,000. In comparison, the firm reported net income of $39,243,000, or $0.52 per diluted share, for fiscal 2005’s first quarter.
“In spite of the fact that the first fiscal quarter of 2006 was comprised of 13 weeks contrasted to 14 last year, revenues increased by 10 percent,” stated Chairman and CEO Thomas A. James.
“A 62 percent increase in gross interest income accounted for the majority of the increase, supplemented by increases in investment advisory and investment banking fees. Commissions and fees were up 3 percent, even though there were fewer production days.
“Aided by a $10 million increase in net interest, quarterly net income exceeded $45 million, resulting in the second consecutive record quarter,” James continued. “Diluted earnings per share reached $0.60. While corporate earnings growth shows signs of slowing down and oil prices continue at record levels, the economic outlook is still generally positive, suggesting a benign environment for the financial services industry, as it appears that tightening by the Fed is nearing an end.”
The company will conduct its quarterly conference call January 26 at 4:15 p.m. EST. The telephone number is 800-773-5520. The call will also be available on demand on the company’s Website, raymondjames.com, under “About Raymond James Financial,” “Financial Reports.”
Raymond James Financial (NYSE-RJF) is a Florida-based diversified holding company providing financial services to individuals, corporations and municipalities through its subsidiary companies. Its three wholly owned broker/dealers, Raymond James & Associates, Raymond James Financial Services and Raymond James Ltd., have more than 4,800 financial advisors serving approximately 1.2 million accounts in 2,200 locations throughout the United States, Canada and overseas. In addition, total client assets are currently over $156 billion, of which approximately $28 billion are managed by the firm’s asset management subsidiaries.
To the extent that Raymond James makes or publishes forward-looking statements –regarding economic conditions, management expectations, strategic objectives, business prospects, anticipated expense savings, financial results, anticipated results of litigation and regulatory proceedings, and other similar matters – a variety of factors, many of which are beyond Raymond James’ control, could cause actual results and experiences to differ materially from the expectations and objectives expressed in these statements. These factors are described in Raymond James’ 2005 annual report on Form 10-K, which is available on raymondjames.com and sec.gov.
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Financials follow. For additional information, contact Steve Valley at 727-567-2824.
Please visit the Raymond James Press Center at raymondjames.com/media.
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Raymond James Financial, Inc.
Unaudited Report
For the first quarter ended December 31, 2005
(all data in thousands, expect per-share earnings)
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First Quarter
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2006
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2005
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% Change
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Gross revenues
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$ 575,347
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$ 524,377
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10%
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Net revenues
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526,536
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498,985
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6%
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Net income
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45,109
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39,243
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15%
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Net income per share - diluted
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$ 0.60
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$ 0.52
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15%
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Weighted average common and common
equivalent shares outstanding – diluted
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75,757
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75,334
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Balance Sheet Data
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December 2005
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September 2005
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Total assets
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$ 9.1 bil.
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$ 8.3 bil.
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Shareholders' equity
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$1,316 mil.
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$1,242 mil.
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Book value per share
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$17.12
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$16.43
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Management Data
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Quarter Ended
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December 2005
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December 2004
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September 2005
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Total financial advisors:
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United States
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4,544
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4,494
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4,591
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Canada
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311
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277
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295
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# Lead managed/co-managed
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Corporate Public offerings U.S.
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27
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26
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32
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Corporate Public offerings in Canada
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14
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8
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5
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Financial assets under management
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$ 28.1 bil.
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$ 25.1 bil.
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$ 27.5 bil.
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Client Assets
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$ 156 bil.
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$ 151 bil.
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Client Margin Balances
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$1,293 mil.
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$1,230 mil.
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Client Trade Volume
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2,178,000
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2,278,000
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Year Ended
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December 31,
2005
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December 31,
2004
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(000's)
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Revenues:
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Private Client Group
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$ 375,745
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$ 339,948
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Capital Markets
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106,604
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117,019
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Asset Management
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46,950
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39,955
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| RJBank |
17,854 |
8,983 |
| Emerging Markets |
13,809 |
9,210 |
| Stock Loan/Borrow |
11,616 |
6,825 |
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Other
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2,769
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2,437
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Total
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$ 575,347
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$ 524,377
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Income Before Provision for Income
Taxes and Minority Interest:
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Private Client Group
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$ 36,811
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$ 30,783
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Capital Markets
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14,575
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17,309
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Asset Management
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11,014
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8,383
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RJBank
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3,201
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3,252
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| Emerging Markets |
2,210 |
1,046 |
| Stock Loan/Borrow |
2,224 |
1,046 |
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Other
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1,300
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2,986
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Pre-tax Income
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71,335
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64,805
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Minority Interest
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(515)
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1,589
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Total
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$ 70,820
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$ 66,394
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RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Quarter-to-Date
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(in thousands, except per share amounts)
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Three Months Ended
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December 31,
2005
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December 31,
2004
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%
Change
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September 30,
2005
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%
Change
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Revenues:
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Securities commissions and fees
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$366,476
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$357,469
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3%
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$373,702
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(2%)
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Investment banking
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29,714
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28,505
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4%
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62,730
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(53%)
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Investment advisory fees
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42,746
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37,452
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14%
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42,196
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1%
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Interest
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88,050
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54,416
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62%
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67,400
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31%
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Net trading profits
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5,857
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9,752
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(40%)
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4,693
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25%
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Financial service fees
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23,052
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22,410
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3%
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21,349
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8%
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Other
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19,452
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14,373
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35%
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21,861
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(11%)
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TOTAL REVENUES
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575,347
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524,377
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10%
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593,931
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(3%)
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Interest Expense
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48,811
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25,392
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92%
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30,370
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61%
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NET REVENUES
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526,536
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498,985
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6%
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563,561
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(7%)
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Non-Interest Expenses
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Compensation, commissions and benefits
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366,619
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348,909
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5%
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389,342
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(6%)
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Communications and information processing
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24,596
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21,199
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16%
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24,675
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0%
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Occupancy and equipment costs
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17,402
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16,053
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8%
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18,378
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(5%)
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Clearance and floor brokerage
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5,766
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5,466
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5%
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6,049
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(5%)
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Business development
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17,131
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14,744
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16%
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20,500
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(16%)
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Other
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24,202
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26,220
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(8%)
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35,752
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(32%)
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TOTAL NON-INTEREST EXPENSES
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455,716
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432,591
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5%
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494,696
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(8%)
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Income before provision for income taxes
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70,820
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66,394
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7%
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68,865
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3%
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Provision for income taxes
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26,226
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25,562
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3%
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28,837
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(9%)
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Minority Interest
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(515)
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1,589
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(132%)
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(4,696)
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89%
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Net Income
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$ 45,109
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$ 39,243
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15%
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$ 44,724
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1%
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Net Income per share-basic
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$ 0.61
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$ 0.53
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15%
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$ 0.60
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2%
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Net Income per share-diluted
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$ 0.60
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$ 0.52
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15%
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$ 0.59
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2%
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Weighted average common shares
outstanding-basic
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74,334
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74,002
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73,945
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Weighted average common and common
equivalent shares outstanding-diluted
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75,757
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75,334
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75,846
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