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Raymond James Financial Annual Report, Year Ended Sep 28, 2001

Filing Date
Filed December 21, 2001
Period End
September 28, 2001
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 21, 2001. Cited figures are marked; the original filing is the authoritative source.

Raymond James Financial, Inc. reported total revenues of $1,657,844 thousanda ($1.66 billion) for the fiscal year ended September 28, 2001, slightly below the prior year's $1,698,594 thousand.

Net income was $96,410 thousandb, or $1.98 per diluted share, compared with $125,195 thousand, or $2.67 per diluted share, in fiscal 2000. The filing attributes the weaker results to poor equity markets that reduced transaction volume, with retail commission revenues falling to $830,841 thousand from $903,448 thousand. Management states that fee-based revenues, including investment advisory fees, interest and asset-based commission alternatives, represented approximately 48% of total revenues, up from 36% five years earlier.

Net income in fiscal 2001 was helped by a $16 millionc reversal of the legal reserve related to the Corporex judgment, which was settled for $27.5 million in June 2001. Excluding this reversal, net income was $87,678 thousand. The company also acquired Goepel McDermid Inc., now Raymond James Ltd., on January 1, 2001, for $78 million, and expanded its Canadian operations as a result.

Total assets were $6,372,054 thousandd and shareholders' equity was $770,876 thousand at year-end, with equity per share of $15.99. Total financial assets under management declined 10% to $15.87 billion, driven mainly by lower equity values at Eagle Asset Management and Investment Advisory Services. Headcount was reduced in the last two quarters of fiscal 2001 after the market slowdown, and the company recorded 4,650 retail Financial Advisors at year-end, including Raymond James Ltd.

02—Key points

Key Highlights

  1. Total revenues were $1,657,844 thousand, down from $1,698,594 thousand in fiscal 2000; excluding $65,463 thousand from Raymond James Ltd., revenues declined 6%.
  2. Net income was $96,410 thousand ($1.98 diluted EPS), versus $125,195 thousand ($2.67 diluted EPS) in fiscal 2000; the filing reports a $16 million legal reserve reversal in 2001 and a $20 million charge in 2000.
  3. Fee-based revenues represented approximately 48% of total revenues, up from 36% five years earlier, reflecting reduced reliance on transaction-driven income.
  4. Net interest income fell 9% to $106,036 thousand as margin balances declined with lower equity values.
  5. Total financial assets under management fell 10% to $15,872,569 thousand, driven by a 23% decline at Eagle Asset Management and a 23% decline in Investment Advisory Services.
  6. Acquired Goepel McDermid Inc. (now Raymond James Ltd.) on January 1, 2001, for $78 million, adding 770 employees and Canadian operations.
  7. Settled the Corporex judgment in June 2001 for $27.5 million; the Company resolved related legal exposure and reduced headcount in the second half of fiscal 2001.

03—Questions

Frequently Asked Questions

  1. Why did Raymond James's net income decline in fiscal 2001?

    The filing attributes the decline to poor equity markets, which reduced transaction volume and retail commission revenues, which fell to $830,841 thousand from $903,448 thousand. Reduced interest income from lower margin balances also contributed. Fiscal 2000 included a $20 million legal reserve charge, and fiscal 2001 included a $16 million reversal, so the comparison is affected by both items.

  2. How much did Raymond James pay to settle the Corporex judgment?

    The company paid Corporex $27.5 million in June 2001 in full settlement of a $40.7 million judgment entered in June 2000 against Raymond James & Associates, Inc. and RJ Mortgage Acceptance Corp. The settlement produced a $16 million reversal of the legal reserve in fiscal 2001.

  3. What acquisitions did Raymond James make during fiscal 2001?

    On January 1, 2001, the company purchased Goepel McDermid Inc., a Canadian broker-dealer, for $78 million, consisting of $48 million in cash and one million exchangeable shares. The firm was renamed Raymond James Ltd. effective January 23, 2001, and contributed $65,463 thousand to fiscal 2001 revenues.

  4. How did client assets under management change?

    Total financial assets under management decreased 10% to $15,872,569 thousand from $17,549,357 thousand. Eagle Asset Management declined 23% to $4,578,909 thousand, while the Heritage family of mutual funds rose 15% to $6,911,660 thousand.

  5. What was the company's financial position at year-end?

    At September 28, 2001, total assets were $6,372,054 thousand, long-term debt was $147,879 thousand and shareholders' equity was $770,876 thousand, or $15.99 per share. The company had 48,434,467 common shares outstanding as of December 14, 2001.

04—Continue

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