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Raymond James Financial Annual Report, Year Ended Sep 27, 2002

Filing Date
Filed December 23, 2002
Period End
September 27, 2002
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 23, 2002. Cited figures are marked; the original filing is the authoritative source.

Raymond James Financial, Inc. reported fiscal 2002 (year ended September 27, 2002) revenues of $1,515,923,000,a down 9% from the prior year, marking the second consecutive year of decline as poor equity markets continued.

Net income fell to $79,303,000,b down 18% from the prior year, or 10% when the prior year is adjusted to remove the positive $8.7 million impact of the reversal of the excess Corporex litigation reserve. Diluted earnings per share were $1.60 compared with $1.98 in fiscal 2001. Retail revenues declined 10% to $995,053,000, with net interest income falling 21%, while Capital Markets revenues rose 16% to $332,749,000 and pre-tax earnings increased to $42,848,000 from $8,547,000.

Total assets were $6,040,303,000c and shareholders' equity was $839,636,000 at September 27, 2002. Eagle Asset Management reported approximately $5.2 billion under management, and total financial assets under management were $15,293,000,000, down 4%. The filing discloses significant litigation: a Seminole Tribe claim sent to arbitration, a $12.5 million suit against RJFS tied to an SEC investigation, and a series of lawsuits over the "Premiere 72" mortgage program, where total funded amounts may exceed $150 million but the claimants' actual loss is not determinable and the company cannot reasonably estimate its exposure.

The company also noted that the Sarbanes-Oxley Act of 2002 was signed into law July 30, 2002, and management does not expect compliance to have a material impact on results. Starting in fiscal 2003, the company will expense stock options under SFAS 123, which would have reduced fiscal 2002 net income by approximately $4 milliond had it applied.

02—Key points

Key Highlights

  1. Revenues of $1,515,923,000 declined 9% from the prior year, the second consecutive annual decline, as poor equity markets persisted.
  2. Net income of $79,303,000 declined 18%; diluted EPS was $1.60 versus $1.98 in fiscal 2001.
  3. Retail revenues fell to $995,053,000 (down 10%), driven by lower margin interest, which dropped to $91,371,000 from $182,396,000.
  4. Capital Markets revenues rose 16% to $332,749,000, with pre-tax earnings of $42,848,000 versus $8,547,000, led by fixed income and investment banking.
  5. Asset management assets under management totaled $15,293,000,000, down 4%, with Eagle Asset Management at $5.2 billion under management.
  6. Total assets were $6,040,303,000 and shareholders' equity was $839,636,000 at September 27, 2002.
  7. Significant litigation includes the Premiere 72 mortgage program suits, where the company cannot reasonably estimate its exposure, and a Seminole Tribe claim moving to arbitration.

03—Questions

Frequently Asked Questions

  1. Why did Raymond James's earnings decline in fiscal 2002?

    The filing attributes the decline to poor equity markets, eroding investor confidence after September 11, 2001 and corporate scandals, and lower margin interest. Revenues fell 9% and net income fell 18%, though the company cut costs, reducing total expenses 9% to $1,384,407,000.

  2. How did the retail and capital markets segments perform?

    Retail revenues fell 10% to $995,053,000 and retail pre-tax earnings dropped to $59,773,000 from $95,499,000. Capital Markets revenues rose 16% to $332,749,000 and pre-tax earnings rose to $42,848,000, supported by institutional commissions and an increase in public offerings.

  3. What are the major legal risks disclosed?

    The company faces a Seminole Tribe losses claim, now expected in arbitration, and a $12.5 million suit against RJFS in Rhode Island that the SEC is also investigating. A series of Premiere 72 mortgage program lawsuits in Houston may involve over $150 million funded by participants, but the company says it cannot reasonably estimate its exposure.

  4. What was the company's capital and dividend position?

    Shareholders' equity was $839,636,000, or $17.25 per share at year-end. Cash dividends declared were $.36 per share for both fiscal 2002 and 2001. The company repurchased 359,319 shares during 2002 at an average price of $25.46.

04—Continue

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