EX-99 2 jfgpressrelease22821.htm EX-99 Document


FOR IMMEDIATE RELEASEMarch 24, 2021


Jefferies Financial Group Announces First Quarter 2021 Financial Results

All-Time Record Quarterly Results at Jefferies Group

New York, New York — March 24, 2021 — Jefferies Financial Group Inc. (NYSE: JEF) today announced its financial results for the three months ended February 28, 2021. In addition, the Jefferies Board of Directors declared a quarterly cash dividend equal to $0.20 per Jefferies common share payable on May 28, 2021 to record holders of Jefferies common shares on May 17, 2021. We expect to file our Form 10-Q on or about April 8, 2021.

Highlights for the three months ended February 28, 2021:
Jefferies Group LLC
Record quarterly net revenues of $2,129 million, up 82% over the prior year first quarter's then all-time record quarterly net revenues
Record pre-tax income of $671 million, up 185% over the prior year quarter and further demonstrating the operating leverage inherent in our business model
Record net earnings of $494 million, up 188% over the prior year quarter
Annualized return on tangible equity of 43.5%1, compared with 16.1%2 in the prior year quarter
Record quarterly Investment Banking net revenues of $1,033 million, up 79% over the prior year quarter, including record Equity Underwriting net revenues of $495 million, Advisory net revenues of $311 million and Debt Underwriting net revenues of $197 million
Record quarterly combined Capital Markets net revenues of $894 million, up 81% over the prior year quarter; record Equities net revenues of $531 million and Fixed Income net revenues of $363 million
Record quarterly Asset Management revenues (before allocated net interest3) of $180 million, up 454% over the prior year quarter, including $37 million in management and performance fees and similar revenues earned directly or through our strategic affiliates in the current year quarter; performance fees and similar revenues recorded in the first quarter of the current year are attributable to performance realized in respect of the twelve months ended December 31, 2020
Liquidity buffer of $8.1 billion of cash and unencumbered liquid collateral at February 28, 2021, which represented 16% of our total balance sheet
Jefferies Financial Group
Net income attributable to common shareholders was $582 million, or $2.13 per diluted share, and annualized adjusted return on tangible equity was 33.3%4
Merchant Banking pre-tax income of $108 million, reflecting record quarterly results from Idaho Timber and mark-to-market increases in the value of several of our investments in public companies
We repurchased 5.0 million shares for $128 million, or an average price of $25.51 per share during the first quarter; over the last three years, Jefferies has repurchased 123 million shares for $2.6 billion in total, or an average price of $21.04 per share
Our Board of Directors has increased our share buyback authorization by $128 million back to a total of $250 million
At February 28, 2021, we had 247 million shares outstanding and 275 million shares were outstanding on a fully diluted basis5
Jefferies book value per share was $39.50 and tangible book value per fully diluted share6 was $29.20 at the end of the first quarter
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Over the past three years, Jefferies has returned to shareholders $3.5 billion, or 34% of shareholders' equity and 45% of tangible shareholders' equity7 at the beginning of this effort. Our shareholders' equity today is $9.7 billion. Even with our significant return of capital to our shareholders, Jefferies tangible shareholders' equity7 today is $7.8 billion, which is the same level as three years ago

Rich Handler, our CEO, and Brian Friedman, our President, said:

"Jefferies Group's record results for the first quarter of 2021 reflect the continued momentum and market share gains we experienced throughout 2020, where the growth in our primary businesses can now be seen to have exceeded those of the broader industry. The investment and foundation to achieve this success was made over many years and is delivering as we had planned. Jefferies Group's annualized ROTE of 43.5%1 shows the operating leverage inherent within our core business, with a growing revenue base coupled with a prudently managed cost base. Our clients have rewarded us consistently by trusting Jefferies with an ever increasing portion of their business, as we have worked hard to become one of a handful of truly global leaders in Investment Banking and Capital Markets. Our people, culture, independence and integrated full service capabilities make us unique among our primary competitors and have helped drive our market share gains.

"Jefferies Financial Group's first quarter annualized adjusted ROTE of 33.3%4 reflects the strong results at Jefferies Group, but also solid results in our reduced Merchant Banking portfolio. As we said in our 2020 Shareholder Letter, we intend to complete the transformation of Jefferies into a pure financial services firm by smartly managing down our remaining Merchant Banking portfolio and we expect Jefferies Financial Group's consolidated ROTE to converge over time with that of Jefferies Group.

"We continue to focus relentlessly on meeting the needs of our clients across the globe, as well as investing in and growing our underlying core businesses and technologies, and supporting the health, safety and well-being of our nearly 4,000 global colleagues. Our Investment Banking backlog remains robust and diverse as our investment in this core business continues and our reach expands.

"During the quarter, our clients, employees and firm came together to proudly contribute $8.3 million to 129 amazing charities around our planet that promote diversity and inclusion, support COVID-19 relief efforts, help Texas relief and support, protect and sustain our environment and strive to help humanity in other meaningful ways.

"We are also pleased to announce that, for 2020, Jefferies energy consumption and greenhouse gas emissions from our global offices, data centers, aviation and vehicle fleet at Jefferies has achieved net zero carbon emissions. This is outlined in our most recent ESG Report, which is available on our website."

* * * *

Amounts herein pertaining to February 28, 2021 represent a preliminary estimate as of the date of this earnings release and may be revised upon filing our Quarterly Report on Form 10-Q with the Securities and Exchange Commission ("SEC"). More information on our results of operations for the three months ended February 28, 2021 will be provided upon filing our Quarterly Report on Form 10-Q with the SEC.

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 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
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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).

For further information, please contact:

Teresa S. Gendron
Chief Financial Officer
Jefferies Financial Group Inc.
Tel. (212) 460-1932

Matt Larson
Chief Financial Officer
Jefferies Group LLC
Tel. (212) 284-2338

1
Return on tangible equity (a non-GAAP financial measure) equals our three months ended February 28, 2021 annualized net earnings attributable to Jefferies Group LLC divided by our tangible Jefferies Group LLC member's equity (a non-GAAP financial measure) of $4,543 million at November 30, 2020. Tangible Jefferies Group LLC member's equity at November 30, 2020 equals Jefferies Group LLC member's equity of $6,349 million less goodwill and identifiable intangibles assets of $1,805 million.
2
Return on tangible equity (a non-GAAP financial measure) equals our three months ended February 29, 2020 annualized net earnings attributable to Jefferies Group LLC divided by our tangible Jefferies Group LLC member's equity (a non-GAAP financial measure) of $4,311 million at November 30, 2019. Tangible Jefferies Group LLC member's equity at November 30, 2019 equals Jefferies Group LLC member's equity of $6,125 million less goodwill and identifiable intangibles assets of $1,814 million.
3
Allocated net interest represents the allocation of a ratable portion of Jefferies Group LLC's long-term debt interest expense to Jefferies Group LLC's Asset Management reportable segment, net of interest income on Jefferies Group LLC's Cash and cash equivalents and other sources of liquidity, which allocation is consistent with Jefferies Group LLC's policy of allocating such items to all its business lines. Refer to Jefferies Group LLC's summary of Net Revenues by Source on page 7.
4Adjusted return on tangible equity (a non-GAAP financial measure) is defined as Jefferies Financial Group's three months ended February 28, 2021 annualized adjusted net income divided by our adjusted tangible shareholders' equity at November 30, 2020. Refer to schedule on page 10 for reconciliation to U.S. GAAP amounts.
5
Shares outstanding on a fully diluted basis (a non-GAAP financial measure) is defined as Jefferies Financial Group's common shares outstanding plus restricted stock units, stock options, conversion of redeemable convertible preferred shares and other shares. Refer to schedule on page 11 for reconciliation to U.S. GAAP amounts.
6
Tangible book value per fully diluted share (a non-GAAP financial measure) is defined as adjusted tangible book value divided by shares outstanding on a fully diluted basis. Refer to schedule on page 11 for reconciliation to U.S. GAAP amounts.
7Tangible shareholders' equity (a non-GAAP financial measure) is defined as Jefferies Financial Group shareholders' equity less Intangible assets, net and goodwill. Refer to schedule on page 11 for reconciliation to U.S. GAAP amounts.

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Summary for Jefferies Financial Group Inc. and Subsidiaries
(In thousands, except per share amounts)
(Unaudited)

Three Months Ended
February 28, 2021
Three Months Ended
February 29, 2020
Net revenues$2,486,942 $1,386,328 
Income before income taxes and loss related to associated companies$811,353 $225,649 
Loss related to associated companies(10,568)(67,855)
Income before income taxes
800,785 157,794 
Income tax provision 218,236 45,773 
Net income582,549 112,021 
Net loss attributable to the noncontrolling interests743 2,129 
Net loss attributable to the redeemable noncontrolling interests769 282 
Preferred stock dividends(1,626)(1,422)
Net income attributable to Jefferies Financial Group Inc. common shareholders
$582,435 $113,010 
Basic earnings per common share attributable to Jefferies Financial Group Inc. common shareholders:
Net income
$2.17 $0.37 
Number of shares in calculation
266,386 302,406 
Diluted earnings per common share attributable to Jefferies Financial Group Inc. common shareholders:
Net income
$2.13 $0.37 
Number of shares in calculation
272,881 308,280 

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A summary of results for the three months ended February 28, 2021 is as follows (in thousands):
Investment Banking and Capital MarketsAsset Management Merchant BankingCorporate Parent Company InterestConsolidation AdjustmentsTotal
Net revenues
$1,959,509 $226,734 $297,503 $590 $— $2,606 $2,486,942 
Expenses:
Compensation and benefits
1,106,212 22,785 28,012 15,534 — — 1,172,543 
Cost of sales (1)66,574 9,842 95,559 — — — 171,975 
Interest expense— — 6,465 — 13,902 — 20,367 
Depreciation and amortization
20,684 479 16,740 864 — — 38,767 
Selling, general and other expenses
222,756 12,163 32,542 4,669 — (193)271,937 
Total expenses
1,416,226 45,269 179,318 21,067 13,902 (193)1,675,589 
Income (loss) before income taxes and loss related to associated companies543,283 181,465 118,185 (20,477)(13,902)2,799 811,353 
Loss related to associated companies— — (10,568)— — — (10,568)
Income (loss) before income taxes
$543,283 $181,465 $107,617 $(20,477)$(13,902)$2,799 800,785 
Income tax provision
218,236 
Net income
$582,549 

A summary of results for the three months ended February 29, 2020 is as follows (in thousands):
Investment Banking and Capital MarketsAsset Management Merchant BankingCorporate Parent Company InterestConsolidation AdjustmentsTotal
Net revenues
$1,148,829 $20,329 $204,559 $9,792 $— $2,819 $1,386,328 
Expenses:
Compensation and benefits
620,924 22,221 17,190 9,858 — — 670,193 
Cost of sales (1)52,874 6,307 72,443 — — — 131,624 
Interest expense— — 8,773 — 12,781 — 21,554 
Depreciation and amortization
19,116 625 18,841 888 — — 39,470 
Selling, general and
  other expenses
205,958 12,105 73,080 6,800 — (105)297,838 
Total expenses
898,872 41,258 190,327 17,546 12,781 (105)1,160,679 
Income (loss) before income taxes and loss related to associated companies249,957 (20,929)14,232 (7,754)(12,781)2,924 225,649 
Loss related to associated companies— — (67,855)— — — (67,855)
Income (loss) before income taxes
$249,957 $(20,929)$(53,623)$(7,754)$(12,781)$2,924 157,794 
Income tax provision45,773 
Net income
$112,021 

(1)    Includes Floor brokerage and clearing fees.
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The following financial tables provide information for the results of Jefferies Group LLC and should be read in conjunction with Jefferies Group LLC's Annual Report on Form 10-K for the year ended November 30, 2020. Amounts herein pertaining to February 28, 2021 represent a preliminary estimate as of the date of this earnings release and may be revised in Jefferies Group LLC's Quarterly Report on Form 10-Q for the quarter ended February 28, 2021.
Jefferies Group LLC and Subsidiaries
Consolidated Statements of Earnings
(Amounts in Thousands)
(Unaudited)
Quarter Ended
February 28, 2021November 30, 2020February 29, 2020
Revenues:
Commissions and other fees
$236,938 $196,143 $179,535 
Principal transactions 791,219 467,163 371,902 
Investment banking
1,003,662 906,164 592,002 
Asset management fees and revenues 37,383 5,626 11,720 
Interest
219,021 191,646 294,668 
Other 60,588 43,652 29,729 
Total revenues
2,348,811 1,810,394 1,479,556 
Interest expense219,445 201,424 308,860 
Net revenues2,129,366 1,608,970 1,170,696 
Non-interest expenses:
Compensation and benefits
1,119,894 860,243 635,230 
Non-compensation expenses:
Floor brokerage and clearing fees
76,580 65,189 60,580 
Technology and communications
104,341 99,417 89,184 
Occupancy and equipment rental
27,990 28,229 27,503 
Business development
17,981 21,650 29,957 
Professional services
44,288 52,056 44,665 
Underwriting costs
36,136 36,551 17,529 
Other
30,986 39,828 30,670 
Total non-compensation expenses
338,302 342,920 300,088 
Total non-interest expenses1,458,196 1,203,163 935,318 
Earnings before income taxes671,170 405,807 235,378 
Income tax expense177,305 98,893 64,013 
Net earnings493,865 306,914 171,365 
Net loss attributable to noncontrolling interests(203)(200)(2,024)
Net earnings attributable to Jefferies Group LLC$494,068 $307,114 $173,389 
Pre-tax operating margin31.5 %25.2 %20.1 %
Effective tax rate26.4 %24.4 %27.2 %

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Jefferies Group LLC and Subsidiaries
Selected Statistical Information
(Amounts in Thousands, Except Other Data)
(Unaudited)
Quarter Ended
February 28, 2021November 30, 2020February 29, 2020
Net Revenues by Source:
Advisory$311,439 $356,823 $343,158 
Equity underwriting494,806 340,561 131,692 
Debt underwriting197,417 208,780 117,152 
Total underwriting692,223 549,341 248,844 
Other investment banking
29,825 9,446 (14,529)
Total investment banking
1,033,487 915,610 577,473 
Equities531,016 327,314 245,641 
Fixed income363,359 263,119 248,182 
Total capital markets
894,375 590,433 493,823 
Other
31,647 31,319 77,533 
Total Investment Banking and Capital Markets (1) (2)
1,959,509 1,537,362 1,148,829 
Asset management fees and revenues 37,383 5,626 11,720 
Investment return (3) (4) 142,873 77,790 20,839 
Allocated net interest (3) (5)(10,399)(11,808)(10,692)
Total Asset Management
169,857 71,608 21,867 
Net Revenues$2,129,366 $1,608,970 $1,170,696 
Other Data:
Number of trading days60 63 61 
Number of trading loss days
Average firmwide VaR (in millions) (6)$16.02 $14.92 $7.39 
(1)
Includes net interest revenues of $12.2 million, $6.9 million and $2.9 million for the quarters ended February 28, 2021, November 30, 2020 and February 29, 2020, respectively.
(2)Allocated net interest is not separately disaggregated for Investment Banking and Capital Markets. This presentation is aligned to our Investment Banking and Capital Markets internal performance measurement.
(3)Net revenues attributed to the Investment return in Jefferies Group LLC Asset Management have been disaggregated to separately present Investment return and Allocated net interest (see footnote 5 below). This disaggregation is intended to increase transparency and to make clearer actual Investment return. We believe that aggregating Investment return and Allocated net interest would obscure the Investment return by including an amount that is unique to Jefferies Group LLC's credit spreads, debt maturity profile, capital structure, liquidity risks and allocation methods.
(4)
Includes net interest expense of $2.3 million, $4.9 million and $6.4 million for the quarters ended February 28, 2021, November 30, 2020 and February 29, 2020, respectively.
(5)Allocated net interest represents the allocation of Jefferies Group LLC's long-term debt interest expense to Jefferies Group LLC's Asset Management, net of interest income on Jefferies Group LLC's Cash and cash equivalents and other sources of liquidity (refer to page 8).
(6)VaR estimates the potential loss in value of Jefferies Group LLC's trading positions due to adverse market movements over a one-day time horizon with a 95% confidence level. For a further discussion of the calculation of VaR, see "Value-at-Risk" in Part II, Item 7 "Management's Discussion and Analysis" in Jefferies Group LLC's Annual Report on Form 10-K for the year ended November 30, 2020.

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Jefferies Group LLC and Subsidiaries
Financial Highlights
(Amounts in Millions, Except Where Noted)
(Unaudited)
Quarter Ended
February 28,
2021
November 30, 2020February 29,
2020
Financial position:
Total assets (1)$51,386 $47,752 $46,203 
Average total assets for the period (1)$59,774 $56,503 $55,333 
Average total assets less goodwill and intangible assets for the period (1)
$57,967 $54,807 $53,518 
Cash and cash equivalents (1)
$6,707 $7,112 $4,901 
Cash and cash equivalents and other sources of liquidity (1) (2)
$8,114 $8,605 $6,371 
Cash and cash equivalents and other sources of liquidity - % total assets (1) (2)15.8 %18.0 %13.8 %
Cash and cash equivalents and other sources of liquidity - % total assets less goodwill and intangible assets (1) (2)
16.4 %18.7 %14.4 %
Financial instruments owned (1)$18,571 $17,686 $17,897 
Goodwill and intangible assets (1)$1,807 $1,805 $1,810 
Total equity (including noncontrolling interests) (1)$6,556 $6,366 $6,332 
Total Jefferies Group LLC member's equity (1)$6,540 $6,349 $6,313 
Tangible Jefferies Group LLC member's equity (1) (3)$4,733 $4,543 $4,503 
Level 3 financial instruments:
Level 3 financial instruments owned (1) (4)$365 $379 $346 
Level 3 financial instruments owned - % total assets (1) (4)0.7 %0.8 %0.7 %
Level 3 financial instruments owned - % total financial instruments (1) (4)2.0 %2.1 %1.9 %
Level 3 financial instruments owned - % tangible Jefferies Group LLC member's equity (1) (4)7.7 %8.3 %7.7 %
Other data and financial ratios:
Total long-term capital (1) (5)$13,237 $13,022 $12,706 
Leverage ratio (1) (6)7.8 7.5 7.3 
Tangible gross leverage ratio (1) (7)10.5 10.1 9.9 
Number of trading days60 63 61 
Number of trading loss days
Average firmwide VaR (8)$16.02 $14.92 $7.39 
Number of employees, at period end3,984 3,922 3,822 








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Jefferies Group LLC and Subsidiaries
Financial Highlights - Footnotes
(1)
Amounts pertaining to February 28, 2021 represent a preliminary estimate as of the date of this earnings release and may be revised in Jefferies Group LLC's Quarterly Report on Form 10-Q for the quarter ended February 28, 2021.
(2)
At February 28, 2021, other sources of liquidity include high quality sovereign government securities and reverse repurchase agreements collateralized by U.S. government securities and other high quality sovereign government securities of $991 million, in aggregate, and $416 million, being the estimated amount of additional secured financing that could be reasonably expected to be obtained from Jefferies Group LLC's financial instruments that are currently not pledged after considering reasonable financing haircuts. The corresponding amounts included in other sources of liquidity at November 30, 2020 were $1,180 million and $313 million, respectively, and at February 29, 2020, were $638 million and $832 million, respectively.
(3)Tangible Jefferies Group LLC member's equity (a non-GAAP financial measure) represents total Jefferies Group LLC member's equity less goodwill and identifiable intangible assets. We believe that tangible Jefferies Group LLC member's equity is meaningful for valuation purposes, as financial companies are often measured as a multiple of tangible equity, making these ratios meaningful for investors.
(4)Level 3 financial instruments represent those financial instruments classified as such under Accounting Standards Codification 820, accounted for at fair value and included within Financial instruments owned.
(5)
At February 28, 2021, November 30, 2020 and February 29, 2020, total long-term capital includes Jefferies Group LLC's long-term debt of $6,681 million, $6,656 million and $6,374 million, respectively, and total equity. Long-term debt included in total long-term capital is reduced by amounts outstanding under the revolving credit facility, amounts from secured term loans and the amount of debt maturing in less than one year, as applicable.
(6)Leverage ratio equals total assets divided by total equity.
(7)Tangible gross leverage ratio (a non-GAAP financial measure) equals total assets less goodwill and identifiable intangible assets divided by tangible Jefferies Group LLC member's equity. The tangible gross leverage ratio is used by rating agencies in assessing Jefferies Group LLC's leverage ratio.
(8)VaR estimates the potential loss in value of Jefferies Group LLC's trading positions due to adverse market movements over a one-day time horizon with a 95% confidence level. For a further discussion of the calculation of VaR, see "Value-at-Risk" in Part II, Item 7 "Management's Discussion and Analysis" in Jefferies Group LLC's Annual Report on Form 10-K for the year ended November 30, 2020.

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Jefferies Financial Group Inc.
Non-GAAP Reconciliation

The following tables reconcile Jefferies Financial Group non-GAAP measures to their respective U.S. GAAP measures. Management believes such non-GAAP measures are useful to investors as they allow them to view our results through the eyes of management, while facilitating a comparison across historical periods. These measures should not be considered a substitute for, or superior to, measures prepared in accordance with U.S. GAAP.

Jefferies Financial Group Adjusted Return on Tangible Equity Reconciliation

The table below reconciles our Net income attributable to Jefferies Financial Group to adjusted net income and our Shareholders' equity to adjusted tangible shareholders' equity (in thousands):

Three Months
Ended
February 28, 2021
Net income attributable to Jefferies Financial Group common shareholders (GAAP)$582,435 
Intangible amortization expense, net of tax2,604 
Adjusted net income (non-GAAP)$585,039 
Annualized adjusted net income (non-GAAP)$2,340,156 
 November 30, 2020
Shareholders' equity (GAAP)$9,403,893 
Less: Intangible assets, net and goodwill(1,913,467)
Less: Deferred tax asset(393,687)
Less: Weighted average year-to-date impact of 2021 cash dividends and share repurchases(68,714)
Adjusted tangible shareholders' equity (non-GAAP)$7,028,025 
Adjusted return on tangible equity33.3 %


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Jefferies Financial Group Book Value and Shares Outstanding GAAP Reconciliation

The table below reconciles our book value (shareholders' equity) to adjusted tangible book value and our common shares outstanding to fully diluted shares outstanding (in thousands, except per share amounts):
 February 28, 2021
Book value (GAAP)$9,745,862 
Redeemable convertible preferred shares converted to common shares (1)125,000 
Stock options (2)65,462 
Intangible assets, net and goodwill(1,914,322)
Adjusted tangible book value (non-GAAP)$8,022,002 
Common shares outstanding (GAAP)246,703 
Restricted stock units ("RSUs")19,712 
Redeemable convertible preferred shares converted to common shares (1)4,441 
Stock options (2)2,791 
Other1,104 
Fully diluted shares outstanding (non-GAAP) (3)274,751 
Book value per share outstanding$39.50 
Tangible book value per fully diluted share outstanding$29.20 
(1) Redeemable convertible preferred shares added to book value and fully diluted shares assume that the redeemable convertible preferred shares are converted to common shares.
(2) Stock options added to book value are equal to the total number of stock options outstanding as of February 28, 2021 of 2,791,000 multiplied by the weighted average exercise price of $23.45 on February 28, 2021. Stock options added to fully diluted shares are equal to the total stock options outstanding on February 28, 2021.
(3) Fully diluted shares outstanding include vested and unvested RSUs as well as the target number of RSUs issuable under the senior executive compensation plans. Fully diluted shares outstanding also include all stock options and the additional common shares if our redeemable convertible preferred shares were converted to common shares.


Jefferies Financial Group Shareholders' Equity GAAP Reconciliation

The table below reconciles our shareholders' equity to tangible shareholders' equity (in thousands):
February 28,
2021
March 31,
2018
Shareholders' equity (GAAP)$9,745,862 $10,259,080 
Intangible assets, net and goodwill(1,914,322)(2,450,957)
Tangible shareholders' equity (non-GAAP)$7,831,540 $7,808,123 



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