Leucadia National Corporation (NYSE:LUK) today announced its financial results for the three and nine month periods ended September 30, 2017. Income before income taxes was $200.0 million and net income attributable to Leucadia National Corporation common shareholders was $99.4 million, or $0.27 per diluted share for the three month period. Income before income taxes was $722.8 million and net income attributable to Leucadia National Corporation common shareholders was $439.0 million, or $1.17 per diluted share for the nine month period. During the third quarter, the stock price of HRG Group reversed substantially all of its earlier 2017 gains, resulting in an unrealized pre-tax mark-to-market decrease in value of $97.9 million in the third quarter, which compares to an unrealized pre-tax mark-to-market gain of $91.8 million in the third quarter of 2016.
Rich Handler, CEO of Leucadia, and Brian Friedman, President of Leucadia, said: "We are pleased with Leucadia's third quarter results, reflecting an excellent quarter for both Jefferies and National Beef. A quarterly record $476 million in Investment Banking revenues, combined with solid Equities and Fixed Income results, generated more than $800 million in net revenues at Jefferies. National Beef's third quarter pre-tax income of $174.5 million represents an all-time record quarter, as a balanced supply of cattle and robust end market demand supported strong margins. Momentum continued within our other free-cash generating businesses, including Berkadia, Garcadia and Idaho Timber, while we continued to build value across our remaining businesses."
During the third quarter, Leucadia repurchased a total of 2.5 million common shares at an average price of $24.89 per share. Under the current authorization, including share acquisitions this quarter, we have repurchased a total of 12.5 million shares over the past three years at an average price of $20.98 per share. Leucadia currently has 12.5 million remaining shares authorized for repurchase.
In addition, the Company announced today that its Board of Directors has declared a quarterly cash dividend equal to $0.10 per Leucadia common share payable on December 27, 2017 to record holders of Leucadia common shares on December 13, 2017.
More information on the Company’s results of operations for the three and nine months ended September 30, 2017 will be provided upon filing of the Company’s Form 10-Q with the Securities and Exchange Commission.
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 business 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).
SUMMARY FOR LEUCADIA NATIONAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Net revenues | $ | 2,896,522 | $ | 2,676,375 | $ | 8,496,884 | $ | 7,316,839 | ||||||||
| Income (loss) before income taxes and income (loss) related to associated companies | $ | 169,970 | $ | 213,406 | $ | 807,219 | $ | (21,037 | ) | |||||||
| Income (loss) related to associated companies | 30,057 | 36,503 | (84,413 | ) | 108,445 | |||||||||||
| Income before income taxes | 200,027 | 249,909 | 722,806 | 87,408 | ||||||||||||
| Income tax provision | 63,260 | 73,703 | 218,054 | 59,192 | ||||||||||||
| Net income | 136,767 | 176,206 | 504,752 | 28,216 | ||||||||||||
| Net (income) loss attributable to the noncontrolling interests | (28 | ) | 1,870 | 1,941 | 3,682 | |||||||||||
| Net income attributable to the redeemable noncontrolling interests | (36,216 | ) | (22,702 | ) | (64,538 | ) | (40,084 | ) | ||||||||
| Preferred stock dividends | (1,172 | ) | (1,016 | ) | (3,203 | ) | (3,047 | ) | ||||||||
| Net income (loss) attributable to Leucadia National Corporation common shareholders | $ | 99,351 | $ | 154,358 | $ | 438,952 | $ | (11,233 | ) | |||||||
| Basic earnings (loss) per common share attributable to Leucadia National Corporation common shareholders: | ||||||||||||||||
| Net income (loss) | $ | 0.27 | $ | 0.41 | $ | 1.19 | $ | (0.03 | ) | |||||||
| Number of shares in calculation | 367,828 | 370,404 | 368,736 | 371,814 | ||||||||||||
| Diluted earnings (loss) per common share attributable to Leucadia National Corporation common shareholders: | ||||||||||||||||
| Net income (loss) | $ | 0.27 | $ | 0.41 | $ | 1.17 | $ | (0.03 | ) | |||||||
| Number of shares in calculation | 370,198 | 374,567 | 375,233 | 371,814 | ||||||||||||
A summary of results for the three months ended September 30, 2017 and 2016 is as follows (in thousands):
Other | Other | |||||||||||||||||||||||||||
Financial | Merchant | |||||||||||||||||||||||||||
Services | Banking | |||||||||||||||||||||||||||
Businesses | Businesses | Parent | ||||||||||||||||||||||||||
National | and | and | Corporate | Company | ||||||||||||||||||||||||
| Jefferies | Beef | Investments | Investments | and Other | Interest | Total | ||||||||||||||||||||||
2017 | ||||||||||||||||||||||||||||
| Net revenues | $ | 802,909 | $ | 2,039,299 | $ | 37,707 | $ | (5,115 | ) | $ | 21,722 | $ | — | $ | 2,896,522 | |||||||||||||
| Expenses: | ||||||||||||||||||||||||||||
| Cost of sales | — | 1,816,480 | — | 71,596 | — | — | 1,888,076 | |||||||||||||||||||||
| Compensation and benefits | 462,933 | 10,505 | 15,217 | 4,511 | 11,665 | — | 504,831 | |||||||||||||||||||||
| Floor brokerage and clearing fees | 42,852 | — | — | — | — | — | 42,852 | |||||||||||||||||||||
| Interest | — | 1,713 | 9,936 | 939 | — | 14,737 | 27,325 | |||||||||||||||||||||
| Depreciation and amortization | 15,928 | 26,664 | 2,439 | 9,528 | 865 | — | 55,424 | |||||||||||||||||||||
| Selling, general and other expenses | 153,084 | 9,458 | 20,362 | 19,445 | 5,695 | — | 208,044 | |||||||||||||||||||||
| Total expenses | 674,797 | 1,864,820 | 47,954 | 106,019 | 18,225 | 14,737 | 2,726,552 | |||||||||||||||||||||
| Income (loss) before income taxes and income (loss) related to associated companies | 128,112 | 174,479 | (10,247 | ) | (111,134 | ) | 3,497 | (14,737 | ) | 169,970 | ||||||||||||||||||
| Income (loss) related to associated companies | — | — | 30,902 | 1,057 | (1,902 | ) | — | 30,057 | ||||||||||||||||||||
| Income (loss) before income taxes | $ | 128,112 | $ | 174,479 | $ | 20,655 | $ | (110,077 | ) | $ | 1,595 | $ | (14,737 | ) | $ | 200,027 | ||||||||||||
2016 | ||||||||||||||||||||||||||||
| Net revenues | $ | 656,496 | $ | 1,747,042 | $ | 54,742 | $ | 217,089 | $ | 1,006 | $ | — | $ | 2,676,375 | ||||||||||||||
| Expenses: | ||||||||||||||||||||||||||||
| Cost of sales | — | 1,595,671 | — | 93,422 | — | — | 1,689,093 | |||||||||||||||||||||
| Compensation and benefits | 376,438 | 9,660 | 15,100 | 7,334 | 10,183 | — | 418,715 | |||||||||||||||||||||
| Floor brokerage and clearing fees | 40,189 | — | — | — | — | — | 40,189 | |||||||||||||||||||||
| Interest | — | 2,967 | 4,596 | 836 | — | 14,722 | 23,121 | |||||||||||||||||||||
| Depreciation and amortization | 16,108 | 23,100 | 3,882 | 8,734 | 867 | — | 52,691 | |||||||||||||||||||||
| Selling, general and other expenses | 140,571 | 7,375 | 13,826 | 70,569 | 6,819 | — | 239,160 | |||||||||||||||||||||
| Total expenses | 573,306 | 1,638,773 | 37,404 | 180,895 | 17,869 | 14,722 | 2,462,969 | |||||||||||||||||||||
| Income (loss) before income taxes and income related to associated companies | 83,190 | 108,269 | 17,338 | 36,194 | (16,863 | ) | (14,722 | ) | 213,406 | |||||||||||||||||||
| Income related to associated companies | — | — | 27,806 | 8,453 | 244 | — | 36,503 | |||||||||||||||||||||
| Income (loss) before income taxes | $ | 83,190 | $ | 108,269 | $ | 45,144 | $ | 44,647 | $ | (16,619 | ) | $ | (14,722 | ) | $ | 249,909 | ||||||||||||
A summary of results for the nine months ended September 30, 2017 and 2016 is as follows (in thousands):
Other | Other | |||||||||||||||||||||||||||
Financial | Merchant | |||||||||||||||||||||||||||
Services | Banking | |||||||||||||||||||||||||||
Businesses | Businesses | Parent | ||||||||||||||||||||||||||
National | and | and | Corporate | Company | ||||||||||||||||||||||||
| Jefferies | Beef | Investments | Investments | and Other | Interest | Total | ||||||||||||||||||||||
2017 | ||||||||||||||||||||||||||||
| Net revenues | $ | 2,381,967 | $ | 5,476,274 | $ | 153,270 | $ | 453,625 | $ | 31,748 | $ | — | $ | 8,496,884 | ||||||||||||||
| Expenses: | ||||||||||||||||||||||||||||
| Cost of sales | — | 5,030,887 | — | 210,834 | — | — | 5,241,721 | |||||||||||||||||||||
| Compensation and benefits | 1,374,127 | 29,649 | 45,349 | 13,880 | 37,582 | — | 1,500,587 | |||||||||||||||||||||
| Floor brokerage and clearing fees | 133,145 | — | — | — | — | — | 133,145 | |||||||||||||||||||||
| Interest | — | 5,781 | 29,797 | 2,764 | — | 44,201 | 82,543 | |||||||||||||||||||||
| Depreciation and amortization | 46,877 | 73,522 | 8,003 | 24,650 | 2,599 | — | 155,651 | |||||||||||||||||||||
| Selling, general and other expenses | 444,724 | 26,428 | 47,463 | 36,511 | 20,892 | — | 576,018 | |||||||||||||||||||||
| Total expenses | 1,998,873 | 5,166,267 | 130,612 | 288,639 | 61,073 | 44,201 | 7,689,665 | |||||||||||||||||||||
| Income (loss) before income taxes and income (loss) related to associated companies | 383,094 | 310,007 | 22,658 | 164,986 | (29,325 | ) | (44,201 | ) | 807,219 | |||||||||||||||||||
| Income (loss) related to associated companies | — | — | (91,866 | ) | 8,295 | (842 | ) | — | (84,413 | ) | ||||||||||||||||||
| Income (loss) before income taxes | $ | 383,094 | $ | 310,007 | $ | (69,208 | ) | $ | 173,281 | $ | (30,167 | ) | $ | (44,201 | ) | $ | 722,806 | |||||||||||
2016 | ||||||||||||||||||||||||||||
| Net revenues | $ | 1,678,212 | $ | 5,180,127 | $ | (71,338 | ) | $ | 451,484 | $ | 78,354 | $ | — | $ | 7,316,839 | |||||||||||||
| Expenses: | ||||||||||||||||||||||||||||
| Cost of sales | — | 4,856,045 | — | 257,470 | — | — | 5,113,515 | |||||||||||||||||||||
| Compensation and benefits | 1,141,873 | 28,628 | 44,292 | 22,083 | 29,337 | — | 1,266,213 | |||||||||||||||||||||
| Floor brokerage and clearing fees | 124,259 | — | — | — | — | — | 124,259 | |||||||||||||||||||||
| Interest | — | 10,730 | 10,988 | 2,272 | — | 44,155 | 68,145 | |||||||||||||||||||||
| Depreciation and amortization | 45,331 | 68,511 | 9,973 | 26,501 | 2,754 | — | 153,070 | |||||||||||||||||||||
| Selling, general and other expenses | 421,876 | 23,680 | 31,806 | 111,898 | 23,414 | — | 612,674 | |||||||||||||||||||||
| Total expenses | 1,733,339 | 4,987,594 | 97,059 | 420,224 | 55,505 | 44,155 | 7,337,876 | |||||||||||||||||||||
| Income (loss) before income taxes and income related to associated companies | (55,127 | ) | 192,533 | (168,397 | ) | 31,260 | 22,849 | (44,155 | ) | (21,037 | ) | |||||||||||||||||
| Income related to associated companies | — | — | 86,121 | 21,247 | 1,077 | — | 108,445 | |||||||||||||||||||||
| Income (loss) before income taxes | $ | (55,127 | ) | $ | 192,533 | $ | (82,276 | ) | $ | 52,507 | $ | 23,926 | $ | (44,155 | ) | $ | 87,408 | |||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20171026006572/en/
Contacts:
Laura Ulbrandt, 212-460-1900
