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Press Release
Note: This announcement includes revised segment data as released 7/27/07.
Release No. 0707-02
July 24, 2007
Printable version (PDF)
RAYMOND JAMES FINANCIAL, INC.
ANNOUNCES RECORD THIRD QUARTER RESULTS
ST. PETERSBURG, Fla. – Raymond James Financial, Inc. today reported a 20 percent increase over the prior year’s quarterly net income to $68,353,000, or $0.57 per diluted share, for the third quarter ended June 30, 2007. In comparison, the firm earned $56,774,000, or $0.48 per diluted share, for fiscal 2006’s third quarter. Net revenues increased 9 percent to $688,660,000, while gross revenues grew 15 percent to $822,753,000.
Net income for the nine months of fiscal 2007 was reported at $187,463,000, up 15 percent from 2006’s $163,414,000. Net revenues for the period increased 9 percent to $1,918,279,000 from $1,758,569,000 the previous year and gross revenues increased 16 percent to $2,270,653,000. Diluted earnings per share were $1.58, up from $1.41 for last year’s comparable period.
“In the third quarter, Raymond James Financial again achieved new records in revenues and net income. Impressive increases in net interest earnings, fueled by continued rapid growth at Raymond James Bank, and excellent results in the capital markets sector, drove the increment in net income over last year.
“Fortunately, unlike some of the larger firms in the securities industry, Raymond James has virtually no exposure to the sub-prime business,” stated Chairman and CEO Thomas A. James.
The company will conduct its quarterly conference call Wednesday, July 25, at 4:15 p.m. EDT. The telephone number is 877-777-1971. The call will also be available on demand on the company’s Website, raymondjames.com, under “About Our Company,” “Investor Relations,” “Financial Reports,” “Quarterly Analyst Conference Call.” The subjects to be covered may also include forward-looking information. Questions may be posed to management by participants on the call, and in response the company may disclose additional material information.
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 4,640 financial advisors serving approximately 1.6 million accounts in 2,200 locations throughout the United States, Canada and overseas. In addition, total client assets are approximately $207 billion, of which $36.1 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’ 2006 annual report on Form 10-K and quarterly reports for the quarters ended December 31, 2006 and March 31, 2007 on Form 10-Q, which are available on raymondjames.com and sec.gov.
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Raymond James Financial, Inc.
Unaudited Report
For the third quarter ended June 30, 2007
(all data in thousands, except per share earnings) |
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Third Quarter |
Nine Months |
| |
2007 |
2006 |
% Change |
2007 |
2006 |
% Change |
Gross revenues |
$822,753 |
$714,665 |
15% |
$2,270,653 |
$1,953,085 |
16% |
Net revenues |
688,660 |
632,976 |
9% |
1,918,279 |
1,758,569 |
9% |
Net income |
68,353 |
56,774 |
20% |
187,463 |
163,414 |
15% |
Net income per share - diluted |
0.57 |
0.48 |
19% |
1.58 |
1.41 |
12% |
Weighted average common and common
equivalent shares outstanding - diluted |
119,140 |
116,960 |
|
118,425 |
115,556 |
|
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Balance Sheet Data |
| |
June
2007 |
March
2007 |
September
2006 |
June
2006 |
Total assets |
$ 15.8 bil. |
$ 14.2 bil. |
$ 11.5 bil. |
$10.8 bil. |
Shareholders' equity |
$1,680 mil. |
$1,602 mil. |
$1,464 mil. |
$1,444 mil. |
Book value per share |
$14.44 |
$13.79 |
$12.83 |
$12.40 |
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Management Data
Quarter Ended |
| |
June
2007 |
March
2007 |
September
2006 |
June
2006 |
Total financial advisors: |
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|
|
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United States |
4,307 |
4,320 |
4,446 |
4,529 |
Canada |
341 |
338 |
326 |
323 |
# Lead managed/co-managed: |
|
|
|
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Corporate public offerings in U.S. |
22 |
20 |
22 |
27 |
Corporate public offerings in Canada |
14 |
5 |
3 |
7 |
Financial assets under management |
$36.1 bil. |
$33.9 bil. |
$31.8 bil. |
$31.6 bil. |
Client Assets |
$ 207 bil. |
$ 198 bil. |
$ 182 bil. |
$ 169 bil. |
Client Margin Balances |
$1,441 mil. |
$1,408 mil. |
$1,363 mil. |
$1,405 mil. |
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Three Months Ended |
Nine Months Ended |
| |
June 30, 2007 |
June 30, 2006 |
% Change |
June 30, 2007 |
June 30, 2006 |
% Change |
Revenues: |
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Private Client Group |
$499,475 |
$ 458,622 |
9% |
$1,421,824 |
$ 1,251,272 |
14% |
Capital Markets |
146,383 |
133,004 |
10% |
373,508 |
361,796 |
3% |
Asset Management |
59,667 |
54,692 |
9% |
182,497 |
156,022 |
17% |
RJBank |
79,221 |
28,457 |
178% |
186,000 |
68,975 |
170% |
Emerging Markets |
14,676 |
17,511 |
(16%) |
43,126 |
43,360 |
(1%) |
Stock Loan/ Borrow |
19,573 |
16,850 |
16% |
49,284 |
42,605 |
16% |
Other |
3,758 |
5,529 |
(32%) |
14,414 |
29,055 |
(50%) |
Total |
$ 822,753 |
$ 714,665 |
15% |
$2,270,653 |
$ 1,953,085 |
16% |
Pre-tax Income: |
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Private Client Group |
$56,158 |
$54,246 |
4% |
$161,527 |
$129,588 |
25% |
Capital Markets |
25,571 |
20,904 |
22% |
53,022 |
57,564 |
(8%) |
Asset Management |
15,778 |
12,955 |
22% |
47,233 |
35,072 |
35% |
RJBank |
8,729 |
4,632 |
88% |
24,962 |
10,058 |
148% |
Emerging Markets |
(2,931) |
3,830 |
(177%) |
1,674 |
7,393 |
(77%) |
Stock Loan/ Borrow |
1,421 |
2,422 |
(41%) |
2,995 |
6,970 |
(57%) |
Other |
5,172 |
(2,487) |
308% |
5,206 |
16,502 |
(68%) |
Pre-tax Income |
$ 109,898 |
$96,502 |
14% |
$296,619 |
$263,147 |
13% |
RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
Quarter-to-Date
(in thousands, except per share amounts) |
| |
Three Months Ended |
| |
June 30,
2007 |
June 30,
2006 |
%
Change |
March 31,
2007 |
%
Change |
Revenues: |
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|
|
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Securities commissions and fees |
$462,047 |
$424,594 |
9% |
$418,292 |
10% |
Investment banking |
51,818 |
44,075 |
18% |
38,025 |
36% |
Investment advisory fees |
51,754 |
46,371 |
12% |
50,597 |
2% |
Interest |
191,691 |
125,860 |
52% |
164,812 |
16% |
Net trading profits |
7,050 |
5,671 |
24% |
3,091 |
128% |
Financial service fees |
30,285 |
41,596 |
(27%) |
31,432 |
(4%) |
Other |
28,108 |
26,498 |
6% |
32,022 |
(12%) |
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Total Revenues |
822,753 |
714,665 |
15% |
738,271 |
11% |
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Interest Expense |
134,093 |
81,689 |
64% |
112,552 |
19% |
Net Revenues |
688,660 |
632,976 |
9% |
625,719 |
10% |
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Non-Interest Expenses: |
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|
|
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Compensation, commissions and benefits |
462,459 |
429,224 |
8% |
428,894 |
8% |
Communications and information processing |
28,828 |
25,858 |
11% |
28,278 |
2% |
Occupancy and equipment costs |
19,983 |
18,701 |
7% |
19,716 |
1% |
Clearance and floor brokerage |
8,180 |
8,781 |
(7%) |
6,946 |
18% |
Business development |
22,416 |
21,782 |
3% |
22,074 |
2% |
Investment advisory fees |
12,111 |
10,616 |
14% |
11,438 |
6% |
Other |
29,156 |
23,685 |
23% |
13,418 |
117% |
Total Non-Interest Expenses |
583,133 |
538,647 |
8% |
530,764 |
10% |
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|
|
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Income before minority interest and
provision for income taxes |
105,527 |
94,329 |
12% |
94,955 |
11% |
| |
|
|
|
|
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Minority Interest |
(4,371) |
(2,173) |
(101%) |
2,000 |
(319%) |
| |
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|
|
|
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Income before provision for income taxes |
109,898 |
96,502 |
14% |
92,955 |
18% |
| |
|
|
|
|
|
Provision for income taxes |
41,545 |
39,728 |
5% |
33,240 |
25% |
| |
|
|
|
|
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Net Income |
$68,353 |
$56,774 |
20% |
$59,715 |
14% |
Net Income per share-basic |
$0.59 |
$0.50 |
18% |
$0.52 |
13% |
Net Income per share-diluted |
$0.57 |
$0.48 |
19% |
$0.50 |
14% |
Weighted average common shares outstanding-basic |
116,135 |
113,464 |
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115,702 |
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Weighted average common and common equivalent shares outstanding-diluted |
119,140 |
116,960 |
|
118,687 |
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RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
Year-to-Date
(in thousands, except per share amounts) |
| |
Nine Months Ended |
| |
June 30,
2007 |
June 30,
2006 |
%
Change |
Revenues: |
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Securities commissions and fees |
$1,281,204 |
$1,186,079 |
8% |
Investment banking |
131,682 |
112,645 |
17% |
Investment advisory fees |
152,487 |
132,603 |
15% |
Interest |
514,727 |
320,532 |
61% |
Net trading profits |
16,434 |
19,717 |
(17%) |
Financial service fees |
91,683 |
96,004 |
(5%) |
Other |
82,436 |
85,505 |
(4%) |
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Total Revenues |
2,270,653 |
1,953,085 |
16% |
Interest Expense |
352,374 |
194,516 |
81% |
Net Revenues |
1,918,279 |
1,758,569 |
9% |
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Non-Interest Expenses: |
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Compensation, commissions and benefits |
1,299,862 |
1,195,488 |
9% |
Communications and information processing |
83,080 |
77,152 |
8% |
Occupancy and equipment costs |
59,849 |
54,213 |
10% |
Clearance and floor brokerage |
22,662 |
19,607 |
16% |
Business development |
66,252 |
58,608 |
13% |
Investment advisory fees |
34,615 |
30,024 |
15% |
Other |
60,686 |
67,064 |
(10%) |
Total Non-Interest Expenses |
1,627,006 |
1,502,156 |
8% |
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Income before minority interest and
provision for income taxes |
291,273 |
256,413 |
14% |
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Minority Interest |
(5,346) |
(6,734) |
21% |
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Income before provision for income taxes |
296,619 |
263,147 |
13% |
Provision for income taxes |
109,156 |
99,733 |
9% |
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Net Income |
$ 187,463 |
$ 163,414 |
15% |
Net Income per share-basic |
$ 1.63 |
$ 1.45 |
12% |
Net Income per share-diluted |
$ 1.58 |
$ 1.41 |
12% |
Weighted average common shares
outstanding-basic |
115,353 |
112,376 |
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Weighted average common and common
equivalent shares outstanding-diluted |
118,425 |
115,556 |
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For more information, contact Tracey Bustamante at 727-567-2824.
Please visit the Raymond James Press Center at raymondjames.com/media.
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