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
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Leucadia National CorporationLaura Ulbrandt, 212-460-1900
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