Leucadia National Corporation (NYSE:LUK) today announced its
financial results for the three and nine month periods ended
September 30, 2015. Primarily due to unrealized fair value
markdowns with respect to our investments in FXCM and HRG, adjusted
net income attributable to Leucadia National Corporation common
shareholders, which excludes the operating results of Jefferies'
Bache business, was a loss of $128.9 million, or ($0.35) per
diluted share, for the third quarter. Adjusted net income was a
positive $301.4 million, or $0.79 per diluted share, for the nine
months ended September 30, 2015. Including the results of the Bache
business, net income attributable to Leucadia National Corporation
common shareholders was a net loss of $173.2 million, or ($0.47)
per diluted share, for the third quarter, and positive net income
of $224.0 million, or $0.59 per diluted share, for the nine months
ended September 30, 2015.
Rich Handler, CEO of Leucadia, and Brian Friedman, President of
Leucadia, said: "Leucadia's third quarter 2015 results were
primarily impacted by the fair value adjustment decreases in FXCM
and HRG, the continued effects of cattle-herd rebuilding at
National Beef and the previously reported challenges in Jefferies'
Fixed Income results. The balance of our businesses are either
contributing well to our results or continue to create long-term
value that isn't yet manifesting in a material way in our GAAP
earnings. We are pleased that our more established businesses,
including Berkadia, Garcadia, Conwed and Idaho Timber, continue to
provide strong returns on tangible equity. We are encouraged by the
direction and momentum at HRG and FXCM, and look forward to
meaningful progress in the fourth quarter and 2016. We are
optimistic we will see meaningful improvement at Jefferies and
National Beef in 2016.
"We continue to receive interest and principal payments in
respect of the note component of our investment in FXCM, with the
remaining balance outstanding expected to be repaid by the end of
the first quarter of 2016. Our fair value adjustment this quarter
reduced our cumulative gains from our FXCM investment during the
year to $461 million, a reflection of the decrease in the publicly
traded share price of FXCM impacting the estimated value of the
participation portion of our investment. As of November 4, 2015,
our January net investment of $279.0 million has yielded us so far
cumulative cash of $134.9 million, the remaining outstanding $195.3
million principal loan balance and our rights to participate in
residual cash distributions.
"During the quarter we purchased a total of 4.4 million of our
common shares, 3.5 million of which were purchased during
September, at an average price per share of $20.79. This brings our
total shares purchased under our buyback program to 5 million at an
average price of $20.87."
For more information on the Company’s results of operations for
the three and nine months ended September 30, 2015, please see the
Company’s Form 10-Q, 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 September
30,
For the Nine MonthsEnded September 30,
2015 2014 2015 2014 Net revenues $ 2,366,096
$ 3,003,643 $ 8,390,242 $ 8,798,130
Net realized securities gains $ 236 $ 3,848 $
24,418 $ 20,903
Income (loss) from continuing operations
before income taxes and income related to associated companies
$ (296,428 ) $ 89,242 $ 220,884 $ 308,876 Income related to
associated companies 24,243 28,917 94,501
84,298 Income (loss) from continuing operations
before income taxes (272,185 ) 118,159 315,385 393,174
Income tax provision (benefit) (90,273 ) 59,906 107,834
163,885 Income (loss) from continuing
operations (181,912 ) 58,253 207,551 229,289
Income (loss) from discontinued
operations, including gain on disposal, net of taxes
1,729 2,009 1,729 (10,640 ) Net income
(loss) (180,183 ) 60,262 209,280 218,649
Net (income) loss attributable to the
noncontrolling interests
1,238 1,058 1,828 (567 )
Net (income) loss attributable to the
redeemable noncontrolling interests
6,788 (5,625 ) 15,931 (966 ) Preferred stock dividends
(1,016 ) (1,016 ) (3,047 ) (3,047 )
Net income (loss) attributable to Leucadia
National Corporation common shareholders
$ (173,173 ) $ 54,679 $ 223,992 $ 214,069
Basic earnings (loss) per common share
attributable to Leucadia National Corporation common
shareholders:
Income (loss) from continuing operations $ (0.47 ) $ 0.14 $ 0.59 $
0.59 Gain (loss) from discontinued operations, including gain on
disposal — — — (0.03 ) Net income (loss) $
(0.47 ) $ 0.14 $ 0.59 $ 0.56 Number of
shares in calculation 372,547 373,347 373,181
371,372
Diluted earnings (loss) per common share
attributable to Leucadia National Corporation common
shareholders:
Income (loss) from continuing operations $ (0.47 ) $ 0.14 $ 0.59 $
0.59 Gain (loss) from discontinued operations, including gain on
disposal — — — (0.03 ) Net income (loss) $
(0.47 ) $ 0.14 $ 0.59 $ 0.56 Number of
shares in calculation 372,547 373,375 373,187
373,265
LEUCADIA NATIONAL CORPORATION
CONSOLIDATED
ADJUSTED SELECTED FINANCIAL DATA
(In thousands, except per share
amounts)
(Unaudited)
Three Months Ended September 30, 2015 GAAP
Adjustments Adjusted Net revenues $ 2,366,096
$ 4,289 $ 2,370,385 Income (loss) from
continuing operations before income taxes $ (272,185 ) $ 64,114
$ (208,071 ) Net income (loss) attributable to
Leucadia National Corporation common shareholders $ (173,173 ) $
44,318 $ (128,855 ) Basic earnings (loss) per common
share attributable to Leucadia National Corporation common
shareholders $ (0.47 ) $ (0.35 ) Diluted earnings (loss) per
common share attributable to Leucadia National Corporation common
shareholders $ (0.47 ) $ (0.35 ) Nine Months Ended
September 30, 2015 GAAP Adjustments Adjusted Net revenues $
8,390,242 $ (80,562 ) $ 8,309,680 Income from
continuing operations before income taxes $ 315,385 $
114,849 $ 430,234 Net income attributable to
Leucadia National Corporation common shareholders $ 223,992
$ 77,437 $ 301,429 Basic earnings per common
share attributable to Leucadia National Corporation common
shareholders $ 0.59 $ 0.79 Diluted earnings
per common share attributable to Leucadia National Corporation
common shareholders $ 0.59 $ 0.79
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/20151105005950/en/
Leucadia National CorporationLaura Ulbrandt, 212-460-1900
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