Toggle SGML Header (+)


Section 1: 8-K (LEUCADIA NATIONAL CORPORATION 1ST QTR. 2018 FORM 8-K)

Document


    
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): April 26, 2018

LEUCADIA NATIONAL CORPORATION
(Exact Name of Registrant as Specified in Its Charter)

NEW YORK
(State or Other Jurisdiction of Incorporation)

1-5721
(Commission File Number)
13-2615557
(I.R.S. Employer Identification No.)
 
 
520 Madison Avenue
New York, New York
(Address of Principal Executive Offices)

10022
(Zip Code)

212-460-1900
(Registrant's Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

|_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company: o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o







Item 2.02. Results of Operations and Financial Condition

The information set forth in the press release issued by Leucadia National Corporation on April 26, 2018, attached hereto as Exhibit 99.1, is incorporated herein by reference.

Item 9.01(d). Exhibits

Exhibit No.    Description

99.1        Press Release issued by Leucadia National Corporation on April 26, 2018










































SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.




Date: April 26, 2018




LEUCADIA NATIONAL CORPORATION
 
 
 
 
By:
/s/ Teresa S. Gendron
Name:
Teresa S. Gendron
Title:
Vice President and Chief Financial Officer





































EXHIBIT INDEX


Exhibit No.        Exhibit

99.1            Press Release dated April 26, 2018





(Back To Top)

Section 2: EX-99.1 (LEUCADIA NATIONAL CORPORATION 1ST QTR. 2018 PRESS RELEASE)

Exhibit


FOR IMMEDIATE RELEASE                                 April 26, 2018
Contact: Laura Ulbrandt (212) 460-1900



LEUCADIA NATIONAL CORPORATION
ANNOUNCES FIRST QUARTER 2018 RESULTS

New York, New York, April 26, 2018--Leucadia National Corporation (NYSE: LUK) today announced its financial results for the three month period ended March 31, 2018. Consistent with the expectation expressed in our press release of April 9, 2018, Income before income taxes was $107 million and net income attributable to Leucadia National Corporation common shareholders was $125 million, or $0.34 per diluted share. 

Rich Handler, CEO of Leucadia, and Brian Friedman, President of Leucadia, said: "We are pleased with another quarter of solid performance across Leucadia. Jefferies' first quarter results reflect continued strong performances in Investment Banking, with net revenues of $434 million, and solid performance in both Equities and Fixed Income, with total revenues of $369 million. Investment Banking results reflect a good new-issue equity and debt environment, and another strong quarter in mergers and acquisitions. Fixed Income revenues were a strong $213 million and relatively consistent across the quarter. Equities revenues were $156 million. Our share of Berkadia’s income was $26 million, buoyed by strong originations during the quarter, and our share of HomeFed’s income was also higher than previous quarters, due to a gain from the sale of one of its assets.

"Our Leucadia Merchant Banking portfolio also continues to deliver strong results, with National Beef generating pre-tax income of $69 million during a typically lighter seasonal quarter for beef processing. The remainder of our merchant banking portfolio produced solid results, through either cash generation or value-building, offset partly by a $21 million mark-to-market reduction in the value of our HRG position.

“We patiently continue to develop our alternative asset management platform. During the first quarter, we recorded losses of $78 million mainly due to two strategies impacted by exceptional volatility during the quarter.

“Our recently announced strategic transactions, including the agreed upon sale of 48% of National Beef, the agreed upon sale of 100% of our equity interest in Garcadia and the acquisition by Vitesse Energy Finance of $190 million of additional Bakken oil and gas assets, will complete an ongoing transformation of Leucadia to a diversified financial services company. We expect these to close in the next four months.”

After the end of the first quarter, through April 26, 2018, Leucadia repurchased a total of 10.3 million common shares at an average price of $24.40 per share. 14.7 million shares remain authorized for repurchase.

* * * *

More information on the Company’s results of operations for the three months ended March 31, 2018 will be provided upon filing of the Company’s Form 10-Q with the Securities and Exchange Commission.

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements about our future and statements that are not historical facts. These forward-looking statements are usually preceded by the words “should,” “expect,” “intend,” “may,” “will,” or similar expressions. Forward-looking statements may contain expectations regarding revenues, earnings, operations, and other results, and may include statements of future performance, plans, and objectives. Forward-looking statements include expectations relating to the National Beef and Garcadia transactions disclosed in this press release. Forward-looking statements also include statements pertaining to our strategies for future development of our businesses and products. Forward-looking statements represent only our belief regarding future events, many of which by their nature are inherently uncertain. It is possible that the actual results may differ, possibly materially, from the anticipated results indicated in these forward-looking statements. Information regarding important factors, including Risk Factors that





could cause actual results to differ, perhaps materially, from those in our forward-looking statements is contained in reports we file with the SEC. You should read and interpret any forward-looking statement together with reports we file with the SEC.

Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy will be profitable or equal the corresponding indicated performance level(s).





SUMMARY FOR LEUCADIA NATIONAL CORPORATION AND SUBSIDIARIES
(In thousands, except per share amounts)
(Unaudited)


 
 
For the Three Months Ended March 31,
 
 
 
 
2018
 
2017
 
 
 
 
 
Net revenues
 
$
2,680,793

 
$
2,867,982

 
 
 
 
 
Income before income taxes and income (loss) related to associated companies
 
74,554

 
526,671

 
 
 
 
 
Income (loss) related to associated companies
 
32,100

 
(128,574
)
 
 
 
 
 
Income before income taxes
 
106,654

 
398,097

 
 
 
 
 
Income tax provision (benefit)
 
(32,495
)
 
104,174

 
 
 
 
 
Net income
 
139,149

 
293,923

 
 
 
 
 
Net loss attributable to the noncontrolling interests
 
1,344

 
523

 
 
 
 
 
Net income attributable to the redeemable noncontrolling interests
 
(14,796
)
 
(12,022
)
 
 
 
 
 
Preferred stock dividends
 
(1,172
)
 
(1,016
)
 
 
 
 
 
Net income attributable to Leucadia National Corporation common shareholders
 
$
124,525

 
$
281,408

 
 
 
 
 
Basic earnings per common share attributable to Leucadia National Corporation common shareholders:
 
 
 
 
Net income
 
$
0.34

 
$
0.76

 
 
 
 
 
Number of shares in calculation
 
366,427

 
369,267

 
 
 
 
 
Diluted earnings per common share attributable to Leucadia National Corporation common shareholders:
 
 
 
 
Net income
 
$
0.34

 
$
0.75

 
 
 
 
 
Number of shares in calculation
 
373,461

 
375,721






A summary of results for the three months ended March 31, 2018 and 2017 is as follows (in thousands):
 
Financial Services
 
Leucadia Merchant Banking Portfolio
 
 
 
 
 
 
 
Jefferies
 
Other Financial Services
 
National Beef
 
Other Merchant Banking
 
Corporate and Other
 
Parent Company Interest
 
Total
2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Net revenues
$
820,919

 
$
(27,930
)
 
$
1,785,358

 
$
94,002

 
$
8,444

 
$

 
$
2,680,793

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 

 
 

 
 
 
 
 
 
Cost of sales

 

 
1,670,776

 
81,935

 

 

 
1,752,711

Compensation and benefits
454,760

 
11,245

 
10,207

 
4,625

 
19,029

 

 
499,866

Floor brokerage and clearing fees
42,176

 

 

 

 

 

 
42,176

Interest expense

 
5,770

 
2,109

 
982

 

 
14,746

 
23,607

Depreciation and amortization
16,366

 
1,834

 
25,519

 
8,662

 
1,298

 

 
53,679

Selling, general and other expenses
181,887

 
22,776

 
7,856

 
7,780

 
13,901

 

 
234,200

Total expenses
695,189

 
41,625

 
1,716,467

 
103,984

 
34,228

 
14,746

 
2,606,239

Income (loss) before income taxes and income (loss) related to associated companies
125,730

 
(69,555
)
 
68,891

 
(9,982
)
 
(25,784
)
 
(14,746
)
 
74,554

Income (loss) related to associated companies

 
30,045

 

 
(41
)
 
2,096

 

 
32,100

Income (loss) before income taxes
$
125,730

 
$
(39,510
)
 
$
68,891

 
$
(10,023
)
 
$
(23,688
)
 
$
(14,746
)
 
$
106,654


2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Net revenues
$
797,386

 
$
56,223

 
$
1,561,456

 
$
445,227

 
$
7,690

 
$

 
$
2,867,982

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of sales

 

 
1,463,838

 
69,256

 

 

 
1,533,094

Compensation and benefits
460,672

 
15,184

 
9,312

 
4,965

 
13,194

 

 
503,327

Floor brokerage and clearing fees
45,858

 

 

 

 

 

 
45,858

Interest expense

 
9,971

 
1,814

 
869

 

 
14,730

 
27,384

Depreciation and amortization
15,601

 
2,905

 
22,399

 
7,738

 
867

 

 
49,510

Selling, general and other expenses
142,985

 
14,196

 
6,990

 
9,254

 
8,713

 

 
182,138

Total expenses
665,116

 
42,256

 
1,504,353

 
92,082

 
22,774

 
14,730

 
2,341,311

Income (loss) before income taxes and income (loss) related to associated companies
132,270

 
13,967

 
57,103

 
353,145

 
(15,084
)
 
(14,730
)
 
526,671

Income (loss) related to associated companies

 
(133,003
)
 

 
3,849

 
580

 

 
(128,574
)
Income (loss) before income taxes
$
132,270

 
$
(119,036
)
 
$
57,103

 
$
356,994

 
$
(14,504
)
 
$
(14,730
)
 
$
398,097






(Back To Top)