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Raymond James Financial Annual Report, Year Ended Sep 24, 1999

Filing Date
Filed December 22, 1999
Period End
September 24, 1999
Security
RJF
In the record · 2016–202610-K1010-Q338-K266

RJF filed 10 annual reports (10-K), 33 quarterly reports (10-Q) and 266 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · May ’17May ’17
  2. Leadership change8-K · Dec ’19Dec ’19
  3. Leadership change8-K · Dec ’21Dec ’21
  4. FY2025 annual report10-K · Nov ’25Nov ’25

01—Abstract

Summary

Summary of the 10-K filed December 22, 1999. Cited figures are marked; the original filing is the authoritative source.

Raymond James Financial, Inc. (RJF) reported its 10-K for the fiscal year ended September 24, 1999.

Total revenues rose to $1,232,206 thousanda ($1.23 billion), up 14% from the prior year, marking the company's fifteenth consecutive year of record revenues. However, net income declined 8% to $85,090 thousand ($85.1 million), or $1.76 per diluted share, versus $92,704 thousand in fiscal 1998. Management attributed the earnings pressure to branding campaign costs, the creation of Raymond James Financial Services, Inc. (RJFS), expanded headquarters, Y2K preparation, and the Roney & Co. acquisition, and noted that investment banking results fell sharply.

Growth came mainly from recurring and fee-based sources. Securities commissions rose to $758.1 millionb, interest revenue reached $229.8 million, and investment advisory fees were $91.9 million. Investment banking revenue fell 32% to $74.7 million as small and mid-cap equity underwriting slowed, with 23 new issues totaling $3.0 billion versus 57 issues for $6.0 billion in 1998.

The company acquired Roney & Co. on May 28, 1999 for $71.3 millionc, adding 320 Financial Advisors and 28 offices. Retail Financial Advisors numbered 3,864 at year-end, and assets under management totaled $13.6 billion. Balance sheet growth was substantial, with total assets of $5.03 billion at September 24, 1999, up from $3.85 billion, and shareholders' equity of $558.5 million.

The company repurchased treasury shares for $31.6 milliond during the year. The filing discloses ongoing SEC, IRS and NASD reviews of investment banking practices related to municipal advance refunding transactions, and management believes these matters will not have a material adverse effect.

02—Key points

Key Highlights

  1. Total revenues of $1,232,206 thousand, up 14%, the fifteenth consecutive year of record revenues.
  2. Net income of $85,090 thousand, down 8%; diluted EPS of $1.76 versus $1.86 in fiscal 1998.
  3. Securities commissions and fees of $758,136 thousand, up 20%, led by listed products, mutual funds and annuities.
  4. Investment banking revenue fell 32% to $74,748 thousand, with 23 managed new issues totaling $3.0 billion versus 57 for $6.0 billion in 1998.
  5. Roney & Co. acquired May 28, 1999 for $71.3 million, adding 320 Financial Advisors and 28 offices.
  6. Total assets of $5,030,715 thousand and shareholders' equity of $558,486 thousand at September 24, 1999.
  7. Financial Advisors at year-end rose to 3,864, up 24%, and total financial assets under management reached $13,597,811 thousand.

03—Questions

Frequently Asked Questions

  1. Why did net income decline even though revenues grew?

    Operating expenses rose 17% to $1,094,687 thousand, outpacing revenue growth. The filing cites a corporate branding campaign, the creation of RJFS, expansion of the corporate headquarters, Y2K preparation, and the Roney acquisition. Investment banking results also fell sharply, which reduced incentive compensation accruals.

  2. What drove the decline in investment banking revenue?

    Several major sectors of emphasis (energy, real estate and health care) were out of favor for most of the year, and the company was behind schedule in building a technology investment banking and research effort. Small and mid-cap stock weakness in the second half of fiscal 1998 also slowed new issue deal flow.

  3. How significant was the Roney & Co. acquisition?

    Raymond James purchased Roney & Co. from Bank One Corporation on May 28, 1999 for $71.3 million plus the assumption of about $10 million in deferred compensation liabilities. Roney contributed $36,177 thousand to revenues and added 320 Financial Advisors and 28 offices, primarily in Indiana, Michigan and Ohio.

  4. What legal and regulatory matters does the filing disclose?

    The SEC opened an investigation into over-the-counter trading practices in 1994 and 1995, and the SEC, IRS and NASD are reviewing investment banking practices in municipal advance refunding transactions. Management believes neither matter will have a material adverse effect on the company's financial position or results of operations.

04—Continue

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