01—Abstract
Summary
Summary of the 10-K filed December 24, 1997. Cited figures are marked; the original filing is the authoritative source.
Raymond James Financial, Inc. filed this Form 10-K for the fiscal year ended September 26, 1997.
Total revenues were $927.6 milliona, including a $30.6 million gain from the sale of Liberty Investment Management, Inc. Excluding that gain, revenues were $896.96 million, up from $721.75 million in fiscal 1996, and net income was $98.9 million, or $3.06 per share, including the gain. Excluding the gain, net income was $80.1 million. Fiscal 1997 was described as the company's thirteenth consecutive year of record revenues.
Securities commissions rose to $514.96 millionb and investment banking revenue reached a record $109.1 million, with the company citing record equity underwriting activity. Balance sheet growth was substantial. Total assets reached $3.28 billion, up from $2.57 billion, and shareholders' equity rose to $423.3 million from $326.6 million.
Client-related financing drove much of this, with customer payables at $1.49 billionc and stock borrowed at $1.07 billion. Financial advisor count rose to 2,825 from 2,503. Client assets under management were $9.18 billion at year end, with Eagle Asset Management at $3.71 billion and the Heritage family of mutual funds at $3.16 billion.
The filing also notes forward-looking risks tied to securities market volume and volatility, interest rates, and regulation. It flags Year 2000 compliance as a potential adverse factor, though management did not believe the cost of internal system modifications would be material in fiscal 1998. Management stated that pending litigation was not expected to have a material adverse effect on financial position or results.
02—Key points
Key Highlights
- Total revenues of $927.6 million for fiscal 1997, up from $721.8 million in fiscal 1996, including a $30.6 million gain on the sale of Liberty Investment Management, Inc.
- Net income of $98.9 million, or $3.06 per share, versus $66.0 million, or $2.09 per share, in fiscal 1996; excluding the gain, net income was $80.1 million.
- Investment banking revenues rose 50% to a record $109.1 million, with 65 managed or co-managed new issues totaling $7.8 billion.
- Total assets grew to $3.28 billion and shareholders' equity to $423.3 million, from $2.57 billion and $326.6 million a year earlier.
- Financial advisors at year end rose to 2,825 from 2,503, and client financial assets under management reached $9.18 billion.
- Net cash from operating activities was $300.0 million, and the Board declared a 3-for-2 stock split paid April 3, 1997.
- The company reported an effective Year 2000 risk assessment, stating the cost of internal modifications was not expected to be material to fiscal 1998 operations.
03—Questions
Frequently Asked Questions
How did Raymond James perform in fiscal 1997?
Total revenues were $927.6 million, up from $721.8 million, and net income was $98.9 million, or $3.06 per share. Excluding the $30.6 million gain from selling its interest in Liberty Investment Management, revenues were $897.0 million and net income was $80.1 million. The company described fiscal 1997 as its thirteenth consecutive year of record revenues.
What drove the growth in investment banking revenue?
Investment banking revenues increased 50% to a record $109.1 million. The filing attributes this to record equity underwriting activity in both number and average offering size. The company managed or co-managed 65 new issues totaling $7.8 billion in 1997, compared with 38 issues totaling $2.7 billion in 1996.
How large is the company's asset management business?
At September 26, 1997, financial assets under management totaled $9.18 billion. Eagle Asset Management accounted for $3.71 billion and the Heritage family of mutual funds for $3.16 billion. Real estate and equipment assets under management were $2.09 billion.
What risks does the filing identify?
The filing lists forward-looking risk factors including transaction volume and volatility in securities markets, interest rate fluctuations, regulatory changes, competition, and changes in tax laws. It also states that the Year 2000 problem could adversely affect the company depending on whether it and its counterparties address the issue successfully.
Is the company facing material litigation?
The company is a defendant or co-defendant in various lawsuits incidental to its securities business and is contesting the allegations. Management, based on discussions with counsel, believes the outcome will not have a material adverse effect on financial position or results of operations.
04—Continue