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Raymond James Financial Annual Report (Amendment), Year Ended Sep 28, 2001

Filing Date
Filed December 27, 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/A filed December 27, 2001. Cited figures are marked; the original filing is the authoritative source.

Raymond James Financial, Inc. reported revenues of $1,657,844 thousanda ($1.66 billion) for the fiscal year ended September 28, 2001, compared with $1,698,594 thousand in fiscal 2000, and net income of $96,410 thousand, down from $125,195 thousand.

The filing attributes the revenue decline to retail commissions and reduced interest income, and states that poor equity markets led to lower transaction volume. Fee-based revenues, including investment advisory fees, interest and asset-based commission alternatives, are described as approximately 48% of total revenues, up from 36% five years earlier. Diluted earnings per share were $1.98b, versus $2.67 in the prior year.

Management also described operating results, excluding the Corporex legal reserve charge and its partial reversal, as down 36%. The company's balance sheet at September 28, 2001 showed total assets of $6,372,054 thousandc and shareholders' equity of $770,876 thousand, or $15.99 per share. Long-term debt rose to $147,879 thousand from $98,555 thousand.

Key 2001 events included the acquisition of Goepel McDermid Inc., now Raymond James Ltd., on January 1, 2001 for $78 milliond, and the $27.5 million settlement of the Corporex judgment paid in June 2001. Assets under management were $15.87 billion, down 10% from the prior year, and the company had 4,650 retail Financial Advisors at year end. The filing notes that the company's broker-dealer subsidiaries are subject to regular regulatory reviews, and management believes pending litigation will not have a material adverse impact on financial position or results of operations.

Management also flagged rising administrative costs and a 30% increase in business development expense from a television advertising push. Over the year, the company reduced headcount in the last two quarters of fiscal 2001 as market conditions slowed.

02—Key points

Key Highlights

  1. Total revenues were $1,657,844 thousand, down from $1,698,594 thousand in fiscal 2000; the filing states revenues excluding the $65 million from Raymond James Ltd. declined 6%.
  2. Net income was $96,410 thousand, a decrease of 23% from $125,195 thousand; diluted EPS was $1.98 versus $2.67.
  3. Fee-based revenues represented approximately 48% of total revenues, up from 36% five years earlier, per management's discussion.
  4. Total assets grew to $6,372,054 thousand and shareholders' equity rose to $770,876 thousand, or $15.99 per share at year end.
  5. Total financial assets under management fell 10% to $15.87 billion, with Eagle Asset Management down 23% to $4.58 billion.
  6. Net interest income declined 9% to $106,036 thousand as margin balances fell with lower equity values.
  7. The company paid the $27.5 million Corporex judgment in June 2001 and acquired Goepel McDermid Inc. (now Raymond James Ltd.) for $78 million effective January 1, 2001.

03—Questions

Frequently Asked Questions

  1. How did Raymond James perform in fiscal 2001?

    Revenues were $1,657,844 thousand, slightly below fiscal 2000's $1,698,594 thousand, and net income fell to $96,410 thousand from $125,195 thousand. Management attributed the decline to poor equity markets, lower retail commissions and reduced interest income.

  2. What drove the decline in interest revenue?

    Interest revenue fell 3% to $334,387 thousand, as the filing attributes the decrease to significantly lower margin balances after equity values declined and retail customers became more conservative. Interest expense was flat at $228,351 thousand.

  3. What was the effect of the Corporex litigation?

    A judgment of $40.7 million was entered against Raymond James & Associates in 2000, and the company paid Corporex $27.5 million in full settlement in June 2001. Fiscal 2000 included a $20 million reserve charge, and fiscal 2001 included a $16 million partial reversal.

  4. Did the company acquire any businesses in 2001?

    Yes. On January 1, 2001, the company purchased Goepel McDermid Inc., a Canadian broker-dealer that was renamed Raymond James Ltd. The purchase price was $78 million, consisting of $48 million in cash and one million exchangeable shares.

  5. What is the company's exposure to regulatory and legal risks?

    The filing states that the broker-dealer subsidiaries face regular regulatory reviews that can result in sanctions, and that pending lawsuits are being contested. Management believes the ultimate resolution of these matters will not have a material adverse impact on the company's financial position or results of operations.

04—Continue

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