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HELEN HUNTLEYDespite obstacles, the company reports record sales and profits.
Raymond James Financial Inc. set records for sales and profits last fiscal year in spite of a lackluster stock market and problems with one of its more offbeat investments.
The St. Petersburg company said Wednesday net revenues and net income for the fiscal year ended in September were records. Net revenue was $1.8-billion, a 23 percent increase, while net income was $127.6-million, a 48 percent increase. Earnings per share were $1.72.
For the fourth quarter, revenues were $446.7-million, up 11 percent from the same period a year ago, while net income was $30.7-million, down 7 percent. Earnings per share were 41 cents.
Securities commissions and a 49 percent surge in investment banking revenue drove the record-setting performance, chief executive Thomas James said.
However, he said the poor performance of the stock market and uncertainty over interest rates are inhibiting trading. James said investors are likely to regain their confidence "once the uncertainty about the election is resolved and investors realize that the economy is still growing relatively well."
The fourth quarter included an out-of-the-ordinary expense, a $4-million write-off on a 757 that Raymond James owns and leases to financially troubled Delta Airlines. The company said it owns two of the planes, bought in 1993 and 1996 as an investment. The lease with Delta runs until 2015 and the write-down reflects the likelihood that Delta won't meet its obligations under the lease. Raymond James' other plane is leased to Continental Airlines.
In addition, Raymond James said it has increased reserves for some of the legal actions pending against the company.
The Securities and Exchange Commission has filed civil fraud charges against Raymond James for failing to supervise a Rhode Island broker accused of stealing millions of dollars from clients.
Raymond James stock price closed Wednesday at $24.31, down 10 cents in trading on the New York Stock Exchange.
Helen Huntley can be reached at huntley@sptimes.com or 727 893-8230.