Leucadia National Corporation (NYSE: LUK) today announced its
financial results for the three and twelve month periods ended
December 31, 2015. Adjusted net income attributable to Leucadia
National Corporation common shareholders, which excludes the
operating results of Jefferies' Bache business, was income of $67.8
million, or $0.18 per diluted share, for the fourth quarter.
Adjusted net income was $369.2 million, or $0.97 per diluted share,
for the year ended December 31, 2015. Including the results of the
Bache business, net income attributable to Leucadia National
Corporation common shareholders was income of $55.6 million, or
$0.15 per diluted share, for the fourth quarter, and $279.6
million, or $0.74 per diluted share, for the year ended December
31, 2015.
Rich Handler, CEO of Leucadia, and Brian Friedman, President of
Leucadia, said: "Leucadia's fourth quarter 2015 results were
impacted by a $40.7 million non-cash pension settlement charge
related to a voluntary lump sum offer to participants of the legacy
WilTel Pension Plan and a $20.0 million impairment charge for the
write down to fair value of an oil field at Juneau Energy. As
previously discussed, both Jefferies and National Beef are working
through challenging conditions for their respective businesses.
Jefferies is continuing to face a turbulent market environment,
with extreme volatility and lower prices in almost every asset
class. Jefferies’ balance sheet, capital allocations and risk
levels remain consistent with the actions we took toward the end of
last year, and Jefferies' fixed income business, while far from
robust, is thus far performing better. New issue capital markets
are barely open and Investment Banking deal flow is sparse, as many
transactions are being delayed due to market conditions. Similar to
most market participants, we are experiencing some meaningful
markdowns in equity positions held in inventory. Despite these
short-term challenges, we believe Jefferies is poised for much
better results when the market conditions eventually stabilize.
Following a difficult fourth quarter for National Beef, we are
starting to see a positive impact from cattle-herd rebuilding. We
anticipate continued volatility in the fair value adjustments for
our investments in KCG (held at Jefferies), FXCM and HRG, which are
all currently down from year-end. Berkadia, Garcadia, Conwed and
Idaho Timber continue to generate solid results and returns on
equity."
In addition, the Company announced today that its Board of
Directors has declared a quarterly cash dividend equal to $.0625
per Leucadia common share payable on March 28, 2016 to record
holders of Leucadia common shares on March 14, 2016.
For more information on the Company’s results of operations for
the three and twelve months ended December 31, 2015, please see the
Company’s Form 10-K, which will be filed with the Securities and
Exchange Commission today.
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.
SUMMARY FOR LEUCADIA
NATIONAL CORPORATION AND SUBSIDIARIES
(In thousands, except per share amounts) (Unaudited)
For the Three MonthsEnded December 31,
For the Twelve Months EndedDecember
31,
2015 2014 2015 2014 Net revenues $ 2,496,216
$ 2,688,355 $ 10,886,458 $ 11,486,485
Net realized securities gains $ 38,539 $ 9,491
$ 62,957 $ 30,394
Income (loss) from continuing operations
before income taxes and income related to associated companies
$ 25,371 $ (66,181 ) $ 246,255 $ 242,695 Income related to
associated companies 15,780 54,229 110,281
138,527 Income (loss) from continuing operations
before income taxes 41,151 (11,952 ) 356,536 381,222 Income
tax provision 2,113 2,086 109,947 165,971
Income (loss) from continuing operations 39,038
(14,038 ) 246,589 215,251
Income (loss) from discontinued
operations, including gain on disposal, net of taxes
3,793 (5,586 ) 5,522 (16,226 ) Net income
(loss) 42,831 (19,624 ) 252,111 199,025 Net loss
attributable to the noncontrolling interests 3,168 1,294 4,996 727
Net loss attributable to the redeemable
noncontrolling interests
10,612 9,582 26,543 8,616 Preferred stock dividends (1,016 )
(1,015 ) (4,063 ) (4,062 )
Net income (loss) attributable to Leucadia
National Corporation common shareholders
$ 55,595 $ (9,763 ) $ 279,587 $ 204,306
Basic earnings (loss) per common share
attributable to Leucadia National Corporation common
shareholders:
Income (loss) from continuing operations $ 0.14 $ (0.01 ) $ 0.73 $
0.58 Income (loss) from discontinued operations, including gain on
disposal 0.01 (0.02 ) 0.01 (0.04 ) Net income (loss)
$ 0.15 $ (0.03 ) $ 0.74 $ 0.54 Number
of shares in calculation 369,840 373,617 372,430
371,889
Diluted earnings (loss) per common share
attributable to Leucadia National Corporation common
shareholders:
Income (loss) from continuing operations $ 0.14 $ (0.01 ) $ 0.73 $
0.58 Income (loss) from discontinued operations, including gain on
disposal 0.01 (0.02 ) 0.01 (0.04 ) Net income (loss)
$ 0.15 $ (0.03 ) $ 0.74 $ 0.54 Number
of shares in calculation 369,840 373,617 372,431
373,333 LEUCADIA NATIONAL CORPORATION
CONSOLIDATED
ADJUSTED SELECTED FINANCIAL DATA
(In thousands, except per share amounts) (Unaudited)
Three Months Ended December 31, 2015 GAAP Adjustments
Adjusted Net revenues $ 2,496,216 $ 363
$ 2,496,579 Income from continuing operations before income
taxes $ 41,151 $ 19,801 $ 60,952 Net income
attributable to Leucadia National Corporation common shareholders $
55,595 $ 12,165 $ 67,760 Basic earnings per
common share attributable to Leucadia National Corporation common
shareholders $ 0.15 $ 0.18 Diluted earnings per
common share attributable to Leucadia National Corporation common
shareholders $ 0.15 $ 0.18 Year Ended December
31, 2015 GAAP Adjustments Adjusted Net
revenues $ 10,886,458 $ (80,199 ) $ 10,806,259 Income
from continuing operations before income taxes $ 356,536 $
134,650 $ 491,186 Net income attributable to Leucadia
National Corporation common shareholders $ 279,587 $ 89,602
$ 369,189 Basic earnings per common share
attributable to Leucadia National Corporation common shareholders $
0.74 $ 0.97 Diluted earnings per common share
attributable to Leucadia National Corporation common shareholders $
0.74 $ 0.97
Adjustments:
Revenues generated by the Bache business, including commissions,
principal transaction revenues and net interest revenue, have been
classified as a reduction of revenue in the calculation above.
Expenses directly related to the operations of the Bache
business have been excluded from Adjusted income from continuing
operations before income taxes. These expenses include floor
brokerage and clearing fees, amortization of capitalized software
used directly by the Bache business in conducting its business
activities, technology and occupancy expenses directly related to
conducting Bache business operations and business development and
professional services expenses incurred by the Bache business as
part of its client sales and trading activities, including
estimates of certain support costs dedicated to the Bache business.
They also include compensation expense and benefits expense for
employees whose sole responsibilities pertain to the activities of
the Bache business, including front office personnel and dedicated
support personnel. Costs related to the exit of the Bache business
have also been excluded.
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version on businesswire.com: http://www.businesswire.com/news/home/20160219005991/en/
Leucadia National CorporationLaura Ulbrandt, 212-460-1900
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