Leucadia National Corporation Announces Fourth Quarter 2016 Results

NEW YORK--()--Leucadia National Corporation (NYSE: LUK) today announced its financial results for the three and twelve month periods ended December 31, 2016. For the three month period, income before income taxes was $229.0 million and net income attributable to common shareholders was $137.2 million (tax rate 27%), or $0.37 per diluted share. For the twelve month period, income before income taxes was $316.4 million and net income attributable to common shareholders was $125.9 million (tax rate 39%), or $0.34 per diluted share.

Rich Handler, CEO of Leucadia, and Brian Friedman, President of Leucadia, said: "Leucadia’s fourth quarter 2016 results reflect a solid finish to the year, including better performance at Jefferies and another quarter of record profits for National Beef. Jefferies showed strong performance in investment banking, solid performance from its core equities business, and continuing significant improvement in fixed income. National Beef benefited from strong demand and more than ample supply of cattle, which together resulted in excellent margins throughout the quarter. Jefferies and National Beef, our two largest businesses, have regained their stride, and the rest of our businesses are in solid shape and well positioned as we enter 2017.

"While we continue to focus on the generation of significant long-term value across our portfolio, we prudently evaluate opportunities to monetize our portfolio companies. During January we closed on our previously announced sale of Conwed Plastics to Schweitzer-Mauduit International, Inc., and recognized a pre-tax gain of $180 million, which will be included in our 2017 results."

Leucadia's Letter to Shareholders and Form 10-K are available now on our website at www.leucadia.com.

During the fourth quarter, Leucadia repurchased an additional 1.1 million common shares at an average price of $19.30 per share. During the full year 2016, Leucadia repurchased a total of 5.4 million common shares at an average price of $17.48 per share. 16.2 million shares remain authorized for repurchase.

In addition, the Company announced today that its Board of Directors has declared a quarterly cash dividend equal to $.0625 per Leucadia common share payable on March 31, 2017 to record holders of Leucadia common shares on March 20, 2017.

For more information on the Company’s results of operations for the three and twelve months ended December 31, 2016, please see the Company’s Form 10-K, which will be filed with the Securities and Exchange Commission today.

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 also include statements pertaining to our strategies for future development of our business 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.

SUMMARY FOR LEUCADIA NATIONAL CORPORATION AND SUBSIDIARIES

(In thousands, except per share amounts)

         

For the Three Months Ended
December 31,

For the Twelve Months
Ended December 31,

2016     2015 2016     2015
 
Net revenues $ 2,745,778   $ 2,496,216   $ 10,062,617   $ 10,886,458  
 
Net realized securities gains $ 21,340   $ 38,539   $ 29,542   $ 62,957  
 

Income from continuing operations before income taxes and
income related to associated companies

$ 182,869 $ 25,371 $ 161,832 $ 246,255
 
Income related to associated companies 46,153   15,780   154,598   110,281  
 
Income from continuing operations before income taxes 229,022 41,151 316,430 356,536
 
Income tax provision 62,917   2,113   122,109   109,947  
 
Income from continuing operations 166,105 39,038 194,321 246,589
 

Income from discontinued operations, including gain on
disposal, net of taxes

  3,793     5,522  
 
Net income 166,105 42,831 194,321 252,111
 
Net (income) loss attributable to the noncontrolling interests (2,256 ) 3,168 1,426 4,996
 
Net (income) loss attributable to the redeemable noncontrolling interests (25,662 ) 10,612 (65,746 ) 26,543
 
Preferred stock dividends (1,016 ) (1,016 ) (4,063 ) (4,063 )
 

Net income attributable to Leucadia National Corporation
common shareholders

$ 137,171   $ 55,595   $ 125,938   $ 279,587  
 

Basic earnings per common share attributable to Leucadia
National Corporation common shareholders:

Income from continuing operations $ 0.37 $ 0.14 $ 0.34 $ 0.73
Income from discontinued operations, including gain on disposal   0.01     0.01  
Net income $ 0.37   $ 0.15   $ 0.34   $ 0.74  
 
Number of shares in calculation 369,299   369,840   371,211   372,430  
 

Diluted earnings per common share attributable to
Leucadia National Corporation common shareholders:

Income from continuing operations $ 0.37 $ 0.14 $ 0.34 $ 0.73

Income from discontinued operations, including gain on
disposal

  0.01     0.01  
Net income $ 0.37   $ 0.15   $ 0.34   $ 0.74  
 
Number of shares in calculation 374,693   369,840   371,518   372,431  

Contacts

For Leucadia National Corporation
Laura Ulbrandt, 212-460-1900

Contacts

For Leucadia National Corporation
Laura Ulbrandt, 212-460-1900