UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section l3 and l5(d) of the
Securities
Exchange Act of l934
July
18, 2005
Date
of
report (date of earliest event reported)
Raymond
James Financial, Inc.
(Exact
Name of Registrant as Specified in Its Charter)
Florida
(State
or
Other Jurisdiction of Incorporation)
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1-9109
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59-1517485
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(Commission
File Number)
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(IRS
Employer Identification No.)
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880
Carillon Parkway St. Petersburg, FL 33702
(Address
of Principal Executive Offices) (Zip Code)
(727)
567-1000
(Registrant’s
Telephone Number, Including Area Code)
Not
Applicable
(Former
Name or Former Address, if Changed Since Last Report)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see
General
Instruction A.2. below):
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act
(17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act
(17 CFR 240.13e-4(c))
Item
7.01 Regulation FD Disclosure
The
following information was contained in a press release issued on July 18, 2005.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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RAYMOND
JAMES FINANCIAL, INC.
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Date:
July 18, 2005
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By:
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/s/ Thomas A. James
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Thomas
A. James,
Chairman
and Chief Executive Officer
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By:
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/s/ Jeffrey P. Julien
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Jeffrey
P. Julien
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Senior
Vice President - Finance
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and
Chief Financial Officer
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Release
No. 0705-03 FOR
IMMEDIATE RELEASE
July
18,
2005
RAYMOND
JAMES FINANCIAL, INC.
REPORTS
THIRD QUARTER RESULTS
ST.
PETERSBURG, Fla. - Raymond James Financial, Inc. today reported a 9 percent
increase in unaudited net income to $32,382,000, or $0.43 per diluted share,
for
the third quarter ended June 24, 2005, on slightly higher net revenues of
$493,544,000, compared to net income of $29,614,000, or $0.40 per diluted
share,
for fiscal 2004’s third quarter.
Unaudited
net income for the nine months of fiscal 2005 was reported at $106,322,000,
up
from 2004’s $96,912,000, while net revenues for the period increased to
$1,475,647,000 from $1,334,547,000 the previous year. Diluted earnings per
share
were $1.41 versus $1.30 for last year’s comparable period.
“Reflecting
vibrant business activity across the firm, gross revenues and net revenues
in
our third fiscal quarter increased 17 percent and 12 percent, respectively,
over
last year’s comparable quarter,” stated Chairman and CEO Thomas A.
James.
“Although
the 9 percent increase in net income was respectable, net additions to legal
and
settlement reserves of $8 million, of which $6.5 million related to two series
of claims, obscured the excellent operating results’ impact on net income. One
of those was the “Premier 72” (Lapin) group of claims, of which approximately
two-thirds were settled for $24 million after several years of litigation.
As a
result, Private Client Group profits were down $10 million from last year
and
masked excellent operating results in Capital Markets, Asset Management,
Raymond
James Bank and our venture capital investments.
“While
litigation costs associated with the 2000-2002 market have continued to be
a
drag -more-
Release
No. 0705-03 Raymond
James Financial, Inc.
Page
2
on
earnings, there is an encouraging trend in a reduction in the number of
complaints. An improved investment climate, as well as recruiting success
in our
brokerage subsidiaries, augurs well for the final quarter. We have participated
in the summer rally since mid-June, which has favorably influenced investment
results and activity,” James concluded.
The
company will conduct its quarterly conference call July 19 at 4:15 p.m. EST.
The
telephone number is 800-773-5520. The call will also be available on demand
on
the company’s Web site, raymondjames.com,
under
“About Raymond James Financial,”“Financial Reports.”
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 4,800 financial
advisors serving 1.3 million accounts in 2,100 locations throughout the United
States, Canada and overseas. In addition, total client assets are
currently
over $142 billion, of which more than $26 billion are managed by the firm’s
asset management subsidiaries.
To
the
extent that Raymond James makes or publishes forward-looking statements
regarding 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’ 2004 annual report on Form 10-K, which is available on raymondjames.com
and
sec.gov.
-more-
Release
No. 0705-03 Raymond
James Financial, Inc.
Page
3
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Raymond
James Financial, Inc.
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|||||||||||
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Unaudited
Report
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For
the third quarter ended June 24, 2005
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|||||||||||
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(all
data in thousands, except per share earnings)
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|||||||||||
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Third
Quarter
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Nine
Months
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||||||||||
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2005
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2004
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Percent
Change
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2005
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2004
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Percent
Change
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Revenues
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$526,362
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$451,535
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17%
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$1,563,066
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$1,367,568
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14%
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Net
Revenues
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493,544
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440,111
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12%
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1,475,647
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1,334,547
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11%
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Net
Income
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32,382
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29,613
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9%
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106,322
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96,912
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10%
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|||||
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Earnings
Per Share - Diluted
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0.43
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0.40
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1.41
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1.30
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|||||||
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Average
Shares
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|||||||||||
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Outstanding
- Diluted
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75,588
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74,560
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75,493
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74,353
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Balance
Sheet Data
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June
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March
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September
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June
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2005
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2005
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2004
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2004
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Total
Assets
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$7.8
bil.
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$7.9
bil.
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$
7.6 bil.
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$7.3
bil.
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Shareholders’
Equity
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$1,192
mil.
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$1,160
mil.
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$1,065
mil.
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$1,033
mil.
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Book
Value Per Share
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$15.82
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$15.44
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$14.42
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$14.01
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Management
Data
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|||||||
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June
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March
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September
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June
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2005
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2005
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2004
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2004
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Total
Financial Advisors*
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United
States
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4,537
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4,488
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4,539
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4,633
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Canada
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282
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279
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274
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261
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#
Lead Managed/Co-Managed
Public
Offerings in United States
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20
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20
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25
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22
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Financial
Assets Under Management
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$26.2
bil.
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$25.4
bil.
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$
22.3 bil.
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$22.1
bil.
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*Prior
quarters were restated to reflect a change in the definition of a producing
Financial Advisor.
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Release
No. 0705-03 Raymond
James Financial, Inc.
Page
4
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June
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March
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September
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June
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2005
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2005
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2004
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2004
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Client
Assets
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$
142 bil.
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$
136 bil.
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$
124 bil.
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$109
bil.
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Client
Margin Balances
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$1,214
mil.
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$1,190
mil.
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$1,173
mil.
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$1,129
mil.
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Client
Trade Volume
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1,884,000
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1,993,000
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1,680,000
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1,739,000
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#
of Client Accounts
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1,363,000
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1,347,000
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1,321,000
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1,340,000
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Segment
Data
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|||||||
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Three
Months Ended
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Nine
Months Ended
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||||||
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June
24,
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June
25,
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June
24,
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June
25,
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||||
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2005
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2004
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2005
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2004
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Revenues:
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Private
Client Group
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$
341,559
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$311,509
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$
1,019,478
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$
925,728
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Capital
Markets
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106,134
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89,151
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326,817
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294,004
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Asset
Management
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43,139
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36,956
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125,661
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109,137
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Raymond
James Bank
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12,243
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7,099
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31,046
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20,554
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Other
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23,287
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6,820
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60,064
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18,145
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Total
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$
526,362
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$451,535
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$1,563,066
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$1,367,568
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Pre-tax
Income:
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Private
Client Group
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$
17,879
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$
27,835
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$
81,634
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$
90,122
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Capital
Markets
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15,229
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10,197
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45,482
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37,822
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Asset
Management
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10,292
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7,485
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29,107
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21,385
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Raymond
James Bank
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3,379
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2,775
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9,457
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7,038
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Other
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4,697
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(577)
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8,730
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(2,790)
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Total
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$
51,476
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$
47,715
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$174,410
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$153,577
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-more-
Release
No. 0705-03 Raymond
James Financial, Inc.
Page
5
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CONSOLIDATED
STATEMENT OF OPERATIONS
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(UNAUDITED)
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Quarter-to-Date
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(in
thousands, except per share amounts)
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Three
Months Ended
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June
24
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June
25,
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%
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March
24
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%
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|||||
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2005
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2004
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Change
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2005
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Change
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|||||
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Revenues:
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|||||||||
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Securities
commissions and fees
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$349,364
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$
326,701
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7%
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$341,373
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2%
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Investment
banking
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30,544
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17,226
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77%
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28,387
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8%
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Investment
advisory fees
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38,674
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33,517
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15%
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39,106
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-1%
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||||
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Interest
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66,354
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33,271
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99%
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57,392
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16%
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||||
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Net
trading profits
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2,722
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5,031
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-46%
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7,445
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-63%
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Financial
service fees
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20,507
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20,852
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-2%
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21,748
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-6%
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||||
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Other
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18,197
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14,937
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22%
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16,876
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8%
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||||
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TOTAL
REVENUES
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526,362
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451,535
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17%
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512,327
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3%
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||||
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Interest
Expense
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32,818
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11,424
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187%
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29,209
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12%
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||||
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NET
REVENUES
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493,544
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440,111
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12%
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483,118
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2%
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||||
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Non-Interest
Expenses
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|||||||||
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Compensation,
commissions and benefits
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348,361
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319,962
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9%
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342,492
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2%
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||||
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Communications
and information processing
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23,948
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20,425
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17%
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22,059
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9%
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||||
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Occupancy
and equipment costs
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16,695
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14,913
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12%
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15,822
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6%
|
||||
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Clearance
and floor brokerage
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6,769
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5,094
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33%
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5,779
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17%
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||||
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Business
development
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17,057
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15,398
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11%
|
15,501
|
10%
|
||||
|
Other
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29,750
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16,561
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80%
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22,235
|
34%
|
||||
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TOTAL
NON-INTEREST EXPENSES
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442,580
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392,353
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13%
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423,888
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4%
|
||||
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Income
before provision for income taxes
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50,964
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47,758
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7%
|
59,230
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-14%
|
||||
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Provision
for income taxes
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19,094
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18,101
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5%
|
23,431
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-19%
|
||||
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Minority
Interest
|
-512
|
44
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1,102
|
||||||
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Net
income
|
$
32,382
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29,613
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9%
|
$
34,697
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-7%
|
||||
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Net
income per share basic
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$
0.44
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$
0.40
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$
0.47
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||||||
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Net
income per share diluted
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$
0.43
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$
0.40
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$
0.46
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||||||
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Weighted
average common shares
|
|||||||||
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outstanding-basic
|
73,663
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73,592
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74,874
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||||||
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Weighted
average common and common
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|||||||||
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equivalent
shares outstanding-diluted
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75,588
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74,560
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76,305
|
||||||
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Release
No. 0705-03 Raymond
James Financial, Inc.
Page
6
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RAYMOND
JAMES FINANCIAL, INC. AND SUBSIDIARIES
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|||||||
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CONSOLIDATED
STATEMENT OF OPERATIONS
|
|||||||
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(UNAUDITED)
|
|||||||
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Year-to-Date
|
|||||||
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(in
thousands, except per share amounts)
|
|||||||
|
Nine
Months Ended
|
|||||||
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June
24,
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June
25,
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%
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|||||
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2005
|
2004
|
Change
|
|||||
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Revenues:
|
|||||||
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Securities
commissions and fees
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$1,048,206
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$
982,030
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7%
|
||||
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Investment
banking
|
87,436
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69,017
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27%
|
||||
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Investment
advisory fees
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115,233
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99,934
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15%
|
||||
|
Interest
|
178,161
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96,001
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86%
|
||||
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Net
trading profits
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19,919
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16,323
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22%
|
||||
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Financial
service fees
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64,665
|
61,126
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6%
|
||||
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Other
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49,446
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43,137
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15%
|
||||
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TOTAL
REVENUES
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1,563,066
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1,367,568
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14%
|
||||
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Interest
Expense
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87,419
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33,021
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165%
|
||||
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NET
REVENUES
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1,475,647
|
1,334,547
|
11%
|
||||
|
Non-Interest
Expenses
|
|||||||
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Compensation,
commissions and benefits
|
1,039,762
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961,993
|
8%
|
||||
|
Communications
and information processing
|
67,205
|
60,975
|
10%
|
||||
|
Occupancy
and equipment costs
|
48,570
|
45,435
|
7%
|
||||
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Clearance
and floor brokerage
|
18,014
|
15,466
|
16%
|
||||
|
Business
development
|
47,303
|
42,194
|
12%
|
||||
|
Other
|
78,205
|
53,680
|
46%
|
||||
|
TOTAL
NON-INTEREST EXPENSES
|
1,299,059
|
1,179,743
|
10%
|
||||
|
Income
before provision for income taxes
|
176,588
|
154,804
|
14%
|
||||
|
Provision
for income taxes
|
68,088
|
56,665
|
20%
|
||||
|
Minority
Interest
|
2,178
|
1,227
|
78%
|
||||
|
Net
income
|
$
106,322
|
$
96,912
|
10%
|
||||
|
Net
income per share basic
|
$
1.45
|
$
1.32
|
|||||
|
Net
income per share diluted
|
$
1.41
|
$
1.30
|
|||||
|
Weighted
average common shares
|
|||||||
|
outstanding-basic
|
73,320
|
73,275
|
|||||
|
Weighted
average common and common
|
|||||||
|
equivalent
shares outstanding-diluted
|
75,493
|
74,353
|
|||||
For
additional information, contact Tracey Bustamante at 727-567-2824.
Please
visit the Raymond James Press Center at raymondjames.com/media.htm.