Piper Jaffray Companies Announces 2015 Fourth Quarter and Year-end Results
We achieved record revenues in 2015 led by the strength of our Investment Banking franchise
Financial Highlights
-
Adjusted net income(1) was
$21.1 million , or$1.40 per diluted common share(1), in the fourth quarter of 2015, compared to$14.7 million , or$0.90 per diluted common share, in the fourth quarter of 2014, and$7.3 million , or$0.48 per diluted common share, in the third quarter of 2015. -
Record adjusted net revenues(1) of
$195.1 million in the fourth quarter of 2015, compared to$148.4 million in both the fourth quarter of 2014 and the third quarter of 2015, respectively. - Adjusted pre-tax operating margin(1) was 17.2% in the fourth quarter of 2015, compared to 15.9% and 7.0% in the fourth quarter of 2014 and the third quarter of 2015, respectively.
-
Our
Capital Markets segment produced a record$414.8 million of investment banking revenues for the year ended December 31, 2015 driven by record advisory services and debt financing revenues. -
Assets under management were
$8.9 billion at December 31, 2015, compared to$11.5 billion in the year-ago period and$9.4 billion at the end of the third quarter of 2015. - Adjusted rolling 12 month return on average common shareholders' equity(2) decreased to 8.1% at December 31, 2015, compared to 9.2% at December 31, 2014. On a GAAP basis our return on average common shareholders' equity decreased to 6.4% at December 31, 2015, compared to 8.1% at December 31, 2014.
-
Book value per share increased 10% from December 31, 2014 to
$58.87 a share at December 31, 2015.
| Three Months Ended | Percent Inc/(Dec) | Twelve Months Ended | |||||||||||||||||||||||||||||||||||
| (Amounts in thousands, | Dec. 31, | Sept. 30, | Dec. 31, | 4Q '15 | 4Q '15 | Dec. 31, | Dec. 31, | Percent | |||||||||||||||||||||||||||||
| except per share data) | 2015 | 2015 | 2014 | vs. 3Q '15 | vs. 4Q '14 | 2015 | 2014 | Inc/(Dec) | |||||||||||||||||||||||||||||
| As Adjusted(1) | |||||||||||||||||||||||||||||||||||||
| Net revenues | $ | 195,096 | $ | 148,394 | $ | 148,394 | 31.5 | % | 31.5 | % | $ | 663,108 | $ | 632,439 | 4.8 | % | |||||||||||||||||||||
| Net income | $ | 21,147 | $ | 7,250 | $ | 14,700 | 191.7 | % | 43.9 | % | $ | 65,850 | $ | 72,114 | (8.7 | )% | |||||||||||||||||||||
| Earnings per diluted common share | $ | 1.40 | $ | 0.48 | $ | 0.90 | 191.7 | % | 55.6 | % | $ | 4.22 | $ | 4.42 | (4.5 | )% | |||||||||||||||||||||
| Pre-tax operating margin | 17.2 | % | 7.0 | % | 15.9 | % | 15.5 | % | 18.0 | % | |||||||||||||||||||||||||||
| U.S. GAAP | |||||||||||||||||||||||||||||||||||||
| Net revenues | $ | 197,364 | $ | 149,617 | $ | 150,548 | 31.9 | % | 31.1 | % | $ | 672,918 | $ | 648,138 | 3.8 | % | |||||||||||||||||||||
| Net income | $ | 13,273 | $ | 4,831 | $ | 12,543 | 174.7 | % | 5.8 | % | $ | 52,075 | $ | 63,172 | (17.6 | )% | |||||||||||||||||||||
| Earnings per diluted common share | $ | 0.88 | $ | 0.32 | $ | 0.77 | 175.0 | % | 14.3 | % | $ | 3.34 | $ | 3.87 | (13.7 | )% | |||||||||||||||||||||
| Pre-tax operating margin | 11.4 | % | 4.5 | % | 14.3 | % | 12.8 | % | 17.0 | % | |||||||||||||||||||||||||||
|
(1) |
A non-U.S. GAAP ("non-GAAP") measure. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see "Reconciliation of U.S. GAAP to Selected Summary Financial Information." We believe that presenting our results and measures on an adjusted basis in conjunction with U.S. GAAP measures provides the most meaningful basis for comparison of our operating results across periods. |
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|
(2) |
A non-GAAP measure. See the "Additional Shareholder Information" section for an explanation of the calculation of this non-GAAP measure. We believe that the adjusted rolling 12 month return on average common shareholders' equity provides a meaningful measure of our return on the core operating results of the business. |
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For the fourth quarter of 2015, on a U.S. GAAP basis, net revenues were
For the twelve months ended December 31, 2015, net revenues on a U.S.
GAAP basis were
"We achieved record revenues and delivered solid results for our
shareholders in 2015, while actively investing in the business to
position us for continued growth and improved shareholder returns," said
Fourth Quarter Results – Non-GAAP Basis
Throughout the
Adjusted Consolidated Results and Business Segment Results sections of
this press release we present financial measures that are not prepared
in accordance with U.S. generally accepted accounting principles ("U.S.
GAAP"). The non-GAAP financial measures include adjustments to exclude
(1) revenues and expenses related to noncontrolling interests, (2)
amortization of intangible assets related to acquisitions, (3)
compensation for acquisition-related agreements and (4) restructuring
and acquisition integration costs. Management believes that presenting
results and measures on this adjusted basis alongside U.S. GAAP measures
provides the most meaningful basis for comparison of its operating
results across periods. For a detailed explanation of the adjustments
made to the corresponding U.S. GAAP measures, see "Reconciliation of
U.S. GAAP to Selected Summary Financial Information."
Adjusted Consolidated Results
For the fourth quarter of
2015, adjusted net revenues were
For the fourth quarter of 2015, adjusted compensation and benefits
expenses were
For the fourth quarter of 2015, adjusted compensation and benefits expenses were 64.0% of adjusted net revenues, compared to 62.4% and 64.3% for the fourth quarter of 2014 and the third quarter of 2015, respectively. The adjusted compensation ratio increased compared to the year-ago period due to compensation expenses associated with the significant hiring in the current year in our Capital Markets segment to expand our financial institutions group.
Adjusted non-compensation expenses were
On an adjusted basis, our effective tax rate was 36.9% for the fourth quarter of 2015, compared to 37.7% and 30.0% for the fourth quarter of 2014 and the third quarter of 2015, respectively. The reduced effective tax rate for the third quarter of 2015 was due to the impact of tax-exempt interest income representing a larger proportion of our pre-tax income.
Business Segment Results
The firm has two reportable
business segments: Capital Markets and Asset Management. Consolidated
net revenues and expenses are fully allocated to these two segments.
Capital Markets
For the quarter, Capital Markets
generated adjusted pre-tax operating income of
Adjusted net revenues were
-
Equity financing revenues of
$19.8 million decreased 8% and 18% compared to the year-ago period and the sequential quarter, respectively. Revenues decreased compared to both periods due to fewer completed transactions, which was partially offset by higher revenue per transaction. -
Debt financing revenues were
$22.1 million , up 13% compared to the fourth quarter of 2014 due to more completed transactions, and up 8% compared to the third quarter of 2015 due to higher revenue per transaction. -
Advisory services revenues from mergers and acquisitions and equity
private placement transactions were
$87.5 million , up 108% and 86% compared to the fourth quarter of 2014 and the sequential quarter, respectively. Revenues increased compared to both periods due to higher revenue per transaction. -
Equity institutional brokerage revenues of
$19.2 million decreased 16% compared to the year-ago period due to lower client trading volumes. Revenues decreased 4% compared to the third quarter of 2015. -
Adjusted fixed income institutional brokerage revenues were
$33.5 million , up 45% and 84% compared to the fourth quarter of 2014 and the third quarter of 2015, respectively, due to higher trading gains and the addition of fixed income sales and trading professionals from the BMO GKST acquisition. -
Management and performance fees earned from managing our alternative
asset management funds were
$0.7 million , compared to$0.9 million and$1.9 million in the year-ago period and the sequential quarter, respectively. The decrease compared to the third quarter of 2015 was due to lower management fees. -
Adjusted investment income, which includes realized and unrealized
gains and losses on investments in our merchant banking fund and firm
investments, was
$0.8 million for the quarter, compared to$1.3 million and$6.1 million in the year-ago period and sequential quarter, respectively. In the third quarter of 2015, we recorded higher gains on our merchant banking firm investments. -
Long-term financing expenses, which primarily represent interest paid
on the firm's senior notes, were
$2.7 million , compared to$1.6 million and$1.7 million in the year-ago period and sequential quarter, respectively. The increase compared to both of the prior periods was due to a higher amount of outstanding principal on the senior notes in the fourth quarter of 2015. -
Adjusted operating expenses for the fourth quarter of 2015 were
$150.1 million , up 34% and 19% compared to the fourth quarter of 2014 and the third quarter of 2015, respectively. The increase compared to both periods primarily resulted from higher compensation expenses due to improved operating results and business expansion. -
Adjusted segment pre-tax operating margin was 17.1% compared to 13.9%
in the year-ago period and 7.7% in the third quarter of 2015. Adjusted
pre-tax operating margin improved compared to both periods due to
higher net revenues. Also, adjusted pre-tax operating margin was lower
in the sequential quarter due to a
$9.8 million legal settlement.
Asset Management
For the quarter ended December 31,
2015, Asset Management generated adjusted pre-tax operating income of
Net revenues were
-
Management and performance fees of
$15.6 million decreased 20% and 9% compared to the fourth quarter of 2014 and the third quarter of 2015, respectively. Revenues decreased compared to both periods due to lower management fees from decreased assets under management (AUM) driven primarily by market depreciation. -
Investment losses on firm capital invested in our strategies was
$1.5 million for the current quarter, compared with a loss of$0.6 million and$5.1 million in the fourth quarter of 2014 and the third quarter of 2015, respectively, driven by unrealized losses in MLP investments. -
Adjusted operating expenses for the current quarter were
$11.5 million , down 12% compared to the year-ago period due to lower compensation and non-compensation expenses. Compared to the third quarter of 2015, adjusted operating expenses decreased 5% due to lower compensation expenses. - Adjusted segment pre-tax operating margin was 17.7%, compared to 29.9% in the fourth quarter of 2014 and a negative 1.2% in the third quarter of 2015. Excluding investment losses on firm capital invested in our strategies, adjusted segment pre-tax operating margin related to our core asset management operations was 25.8% in the fourth quarter of 2015, compared to 32.2% in the year-ago period and 29.1% in the sequential quarter. Adjusted segment pre-tax operating margin excluding investment losses declined relative to both periods primarily due to lower management fees.
-
AUM was
$8.9 billion at the end of the fourth quarter of 2015, compared to$11.5 billion in the year-ago period and$9.4 billion at the end of the third quarter of 2015. The decreases in AUM have been driven by market depreciation, primarily from our MLP product offerings.
Full-Year 2015 Results – Non-GAAP Basis
Adjusted Consolidated Results
In 2015, adjusted EPS was
Adjusted net revenues were
For 2015, adjusted compensation and benefits expenses were
Adjusted non-compensation expenses were
Business Segment Results
Capital Markets
For 2015, Capital Markets generated
adjusted pre-tax operating income of
Adjusted operating expenses were
|
(3) |
Management believes that the presentation of adjusted earnings per share excluding the legal settlement is a better comparison of year-over-year results. |
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Asset Management
For 2015, Asset Management generated
adjusted pre-tax operating income of
Adjusted operating expenses were
Other Matters
During 2015, we returned
In 2015, we incurred
On November 16, 2015, we entered into a definitive agreement to acquire
|
Additional Shareholder Information |
|||||||||
| For the Quarter Ended | |||||||||
| Dec. 31, 2015 | Sept. 30, 2015 | Dec. 31, 2014 | |||||||
| Full time employees | 1,152 | 1,094 | 1,026 | ||||||
| Equity financings | |||||||||
| # of transactions | 12 | 22 | 17 | ||||||
| Capital raised | $1.9 billion | $3.0 billion | $2.7 billion | ||||||
| Municipal negotiated issuances | |||||||||
| # of transactions | 180 | 159 | 128 | ||||||
| Par value | $2.6 billion | $3.3 billion | $2.3 billion | ||||||
| Advisory transactions | |||||||||
| # of transactions | 25 | 23 | 24 | ||||||
| Aggregate deal value | $10.0 billion | $7.0 billion | $2.6 billion | ||||||
| Asset Management | |||||||||
| AUM | $8.9 billion | $9.4 billion | $11.5 billion | ||||||
| Common shareholders’ equity | $783.7 million | $795.4 million | $819.9 million | ||||||
| Number of common shares outstanding (in thousands) | 13,311 | 13,947 | 15,265 | ||||||
| Rolling 12 month return on average common shareholders’ equity * | 6.4% | 6.3% | 8.1% | ||||||
| Adjusted rolling 12 month return on average common shareholders’ equity † | 8.1% | 7.3% | 9.2% | ||||||
| Book value per share | $58.87 | $57.03 | $53.71 | ||||||
| Tangible book value per share ‡ | $40.20 | $39.36 | $37.82 | ||||||
| * | Rolling 12 month return on average common shareholders' equity is computed by dividing net income applicable to Piper Jaffray Companies' for the last 12 months by average monthly common shareholders' equity. | |
| † | Adjusted Rolling 12 month return on average common shareholders' equity is computed by dividing adjusted net income for the last 12 months by average monthly common shareholders' equity. For a detailed explanation of the components of adjusted net income, see "Reconciliation of U.S. GAAP to Selected Summary Financial Information." Management believes that the adjusted rolling 12 month return on average common shareholders' equity provides a meaningful measure of our return on the core operating results of the business. | |
| ‡ | Tangible book value per share is computed by dividing tangible common shareholders’ equity by common shares outstanding. Tangible common shareholders’ equity equals total common shareholders’ equity less goodwill and identifiable intangible assets. Management believes that tangible book value per share is a meaningful measure of the tangible assets deployed in our business. Shareholders’ equity is the most directly comparable GAAP financial measure to tangible shareholders’ equity. The following is a reconciliation of shareholders’ equity to tangible shareholders’ equity: | |
| As of | As of | As of | ||||||||||
| (Amounts in thousands) | Dec. 31, 2015 | Sept. 30, 2015 | Dec. 31, 2014 | |||||||||
| Common shareholders’ equity | $ | 783,659 | $ | 795,385 | $ | 819,912 | ||||||
| Deduct: goodwill and identifiable intangible assets | 248,506 | 246,362 | 242,536 | |||||||||
| Tangible common shareholders’ equity | $ | 535,153 | $ | 549,023 | $ | 577,376 | ||||||
|
Additional Shareholder Information – Continued |
||||||
| For the Year Ended | ||||||
| Dec. 31, 2015 | Dec. 31, 2014 | |||||
| Equity financings | ||||||
| # of transactions | 95 | 90 | ||||
| Capital raised | $17.4 billion | $20.5 billion | ||||
| Municipal negotiated issuances | ||||||
| # of transactions | 707 | 485 | ||||
| Par value | $14.3 billion | $9.5 billion | ||||
| Advisory transactions | ||||||
| # of transactions | 82 | 91 | ||||
| Aggregate deal value | $23.0 billion | $14.7 billion | ||||
Conference Call
About
Cautionary Note Regarding Forward-Looking Statements
This
press release and the conference call to discuss the contents of this
press release contain forward-looking statements. Statements that are
not historical or current facts, including statements about beliefs and
expectations, are forward-looking statements and are subject to
significant risks and uncertainties that are difficult to predict. These
forward-looking statements cover, among other things, statements made
about general economic and market conditions (including the outlook for
equity markets and the interest rate environment), the environment and
prospects for corporate advisory transactions and capital markets
(including our performance in specific sectors and the outlook for
future quarters), anticipated financial results generally (including
expectations regarding our noncompensation expenses, compensation and
benefits expense, compensation ratio, revenue levels, operating margins,
earnings per share, effective tax rate, and return on equity), current
deal pipelines (or backlogs), financial results for our asset management
segment (including our performance in specific sectors, e.g.
energy-based MLPs),the liquidity of fixed income markets and impact on
our related inventory, our strategic priorities (including growth in
public finance, asset management, and corporate advisory), potential
acquisitions or strategic hires, the expected benefits of our expansion
into the financial institutions and energy sectors, including the
expected benefits of the acquisition of
Forward-looking statements involve inherent risks and uncertainties, both known and unknown, and important factors could cause actual results to differ materially from those anticipated or discussed in the forward-looking statements. These risks, uncertainties and important factors include, but are not limited to, the following:
- market and economic conditions or developments may be unfavorable, including in specific sectors in which we operate, and these conditions or developments, such as market fluctuations or volatility, may adversely affect our business, revenue levels and profitability;
- net revenues from equity and debt financings and corporate advisory engagements may vary materially depending on the number, size, and timing of completed transactions, and completed transactions do not generally provide for subsequent engagements;
- the volume of anticipated investment banking transactions as reflected in our deal pipelines (and the net revenues we earn from such transactions) may differ from expected results if there is a decline in macroeconomic conditions or the financial markets, or if the terms of any transactions are modified;
- asset management revenue may vary based on investment performance and market and economic factors, and these factors may impact certain sectors that are more heavily weighted to our business, e.g. energy-based MLP funds;
- interest rate volatility, especially if the changes are rapid or severe, could negatively impact our fixed income institutional business and the negative impact could be exaggerated by reduced liquidity in the fixed income markets;
- strategic trading activities comprise a meaningful portion of our fixed income institutional brokerage revenue, and results from these activities may be volatile and vary significantly, including the possibility of incurring losses, on a quarterly and annual basis;
-
potential acquisitions targets or strategic hires may not be available
on reasonable terms or at all, and we may not be able to effectively
integrate any business or groups of employees we acquire or hire, and
the expected benefits of any acquisitions or strategic hires,
including that of
Simmons and Company International ,River Branch Holdings LLC andBMO Capital Markets GKST Inc. , may take longer than anticipated to achieve and may not be achieved in their entirety or at all; - our stock price may fluctuate as a result of several factors, including but not limited to, changes in our revenues and operating results.
A further listing and description of these and other risks,
uncertainties and important factors can be found in the sections titled
“Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for
the year ended December 31, 2014 and “Management's Discussion and
Analysis of Financial Condition and Results of Operations” in Part II,
Item 7 of our Annual Report on Form 10-K for the year ended December 31,
2014, and updated in our subsequent reports filed with the
Forward-looking statements speak only as of the date they are made, and readers are cautioned not to place undue reliance on them. We undertake no obligation to update them in light of new information or future events.
© 2016
| Piper Jaffray Companies | ||||||||||||||||||||||||||||||||
| Preliminary Results of Operations (U.S. GAAP – Unaudited) | ||||||||||||||||||||||||||||||||
| Three Months Ended | Percent Inc/(Dec) | Twelve Months Ended | ||||||||||||||||||||||||||||||
| Dec. 31, | Sept. 30, | Dec. 31, | 4Q '15 | 4Q '15 | Dec. 31, | Dec. 31, | Percent | |||||||||||||||||||||||||
| (Amounts in thousands, except per share data) | 2015 | 2015 | 2014 | vs. 3Q '15 | vs. 4Q '14 | 2015 | 2014 | Inc/(Dec) | ||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||
| Investment banking | $ | 129,332 | $ | 91,640 | $ | 82,613 | 41.1 | % | 56.6 | % | $ | 414,118 | $ | 369,811 | 12.0 | % | ||||||||||||||||
| Institutional brokerage | 48,010 | 34,182 | 42,324 | 40.5 | 13.4 | 154,889 | 156,809 | (1.2 | ) | |||||||||||||||||||||||
| Asset management | 16,287 | 18,951 | 20,242 | (14.1 | ) | (19.5 | ) | 75,017 | 85,062 | (11.8 | ) | |||||||||||||||||||||
| Interest | 8,802 | 9,128 | 11,781 | (3.6 | ) | (25.3 | ) | 41,557 | 48,716 | (14.7 | ) | |||||||||||||||||||||
| Investment income | 613 | 831 | 434 | (26.2 | ) | 41.2 | 10,736 | 12,813 | (16.2 | ) | ||||||||||||||||||||||
| Total revenues | 203,044 | 154,732 | 157,394 | 31.2 | 29.0 | 696,317 | 673,211 | 3.4 | ||||||||||||||||||||||||
| Interest expense | 5,680 | 5,115 | 6,846 | 11.0 | (17.0 | ) | 23,399 | 25,073 | (6.7 | ) | ||||||||||||||||||||||
| Net revenues | 197,364 | 149,617 | 150,548 | 31.9 | 31.1 | 672,918 | 648,138 | 3.8 | ||||||||||||||||||||||||
| Non-interest expenses: | ||||||||||||||||||||||||||||||||
| Compensation and benefits | 126,190 | 96,132 | 93,765 | 31.3 | 34.6 | 421,733 | 394,510 | 6.9 | ||||||||||||||||||||||||
| Outside services | 9,833 | 9,316 | 9,218 | 5.5 | 6.7 | 36,218 | 37,055 | (2.3 | ) | |||||||||||||||||||||||
| Occupancy and equipment | 7,510 | 7,025 | 6,080 | 6.9 | 23.5 | 28,301 | 28,231 | 0.2 | ||||||||||||||||||||||||
| Communications | 6,112 | 6,234 | 5,684 | (2.0 | ) | 7.5 | 23,762 | 22,732 | 4.5 | |||||||||||||||||||||||
| Marketing and business development | 8,804 | 6,965 | 7,473 | 26.4 | 17.8 | 29,990 | 27,260 | 10.0 | ||||||||||||||||||||||||
| Trade execution and clearance | 1,838 | 1,982 | 2,094 | (7.3 | ) | (12.2 | ) | 7,794 | 7,621 | 2.3 | ||||||||||||||||||||||
| Restructuring and integration costs | 9,156 | 1,496 | — | 512.0 | N/M | 10,652 | — | N/M | ||||||||||||||||||||||||
| Intangible asset amortization expense | 2,343 | 1,773 | 2,318 | 32.1 | 1.1 | 7,662 | 9,272 | (17.4 | ) | |||||||||||||||||||||||
| Other operating expenses | 3,094 | 11,906 | 2,427 | (74.0 | ) | 27.5 | 20,383 | 11,146 | 82.9 | |||||||||||||||||||||||
| Total non-interest expenses | 174,880 | 142,829 | 129,059 | 22.4 | 35.5 | 586,495 | 537,827 | 9.0 | ||||||||||||||||||||||||
| Income before income tax expense | 22,484 | 6,788 | 21,489 | 231.2 | 4.6 | 86,423 | 110,311 | (21.7 | ) | |||||||||||||||||||||||
| Income tax expense | 7,336 | 1,573 | 7,514 | 366.4 | (2.4 | ) | 27,941 | 35,986 | (22.4 | ) | ||||||||||||||||||||||
| Net income | 15,148 | 5,215 | 13,975 | 190.5 | 8.4 | 58,482 | 74,325 | (21.3 | ) | |||||||||||||||||||||||
| Net income applicable to noncontrolling interests | 1,875 | 384 | 1,432 | 388.3 | 30.9 | 6,407 | 11,153 | (42.6 | ) | |||||||||||||||||||||||
| Net income applicable to Piper Jaffray Companies (a) | $ | 13,273 | $ | 4,831 | $ | 12,543 | 174.7 | % | 5.8 | % | $ | 52,075 | $ | 63,172 | (17.6 | )% | ||||||||||||||||
| Net income applicable to Piper Jaffray Companies’ common shareholders (a) | $ | 12,147 | $ | 4,448 | $ | 11,700 | 173.1 | % | 3.8 | % | $ | 48,060 | $ | 58,141 | (17.3 | )% | ||||||||||||||||
| Earnings per common share | ||||||||||||||||||||||||||||||||
| Basic | $ | 0.88 | $ | 0.32 | $ | 0.77 | 175.0 | % | 14.3 | % | $ | 3.34 | $ | 3.88 | (13.9 | )% | ||||||||||||||||
| Diluted | $ | 0.88 | $ | 0.32 | $ | 0.77 | 175.0 | % | 14.3 | % | $ | 3.34 | $ | 3.87 | (13.7 | )% | ||||||||||||||||
| Weighted average number of common shares outstanding | ||||||||||||||||||||||||||||||||
| Basic | 13,775 | 13,938 | 15,241 | (1.2 | )% | (9.6 | )% | 14,368 | 14,971 | (4.0 | )% | |||||||||||||||||||||
| Diluted | 13,782 | 13,952 | 15,293 | (1.2 | )% | (9.9 | )% | 14,389 | 15,025 | (4.2 | )% | |||||||||||||||||||||
|
(a) |
Net income applicable to Piper Jaffray Companies is the total net income earned by the Company. Piper Jaffray Companies calculates earnings per common share using the two-class method, which requires the allocation of consolidated net income between common shareholders and participating security holders, which in the case of Piper Jaffray Companies, represents unvested restricted stock with dividend rights. |
|
|
N/M |
— Not meaningful |
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| Piper Jaffray Companies | |||||||||||||||||||||||||||||||||||||
| Preliminary Segment Data (U.S. GAAP – Unaudited) | |||||||||||||||||||||||||||||||||||||
| Three Months Ended | Percent Inc/(Dec) | Twelve Months Ended | |||||||||||||||||||||||||||||||||||
| Dec. 31, | Sept. 30, | Dec. 31, | 4Q '15 | 4Q '15 | Dec. 31, | Dec. 31, | Percent | ||||||||||||||||||||||||||||||
| (Dollars in thousands) | 2015 | 2015 | 2014 | vs. 3Q '15 | vs. 4Q '14 | 2015 | 2014 | Inc/(Dec) | |||||||||||||||||||||||||||||
| Capital Markets | |||||||||||||||||||||||||||||||||||||
| Investment banking | |||||||||||||||||||||||||||||||||||||
| Financing | |||||||||||||||||||||||||||||||||||||
| Equities | $ | 19,847 | $ | 24,290 | $ | 21,474 | (18.3 | )% | (7.6 | )% | $ | 114,468 | $ | 109,706 | 4.3 | % | |||||||||||||||||||||
| Debt | 22,113 | 20,446 | 19,533 | 8.2 | 13.2 | 91,195 | 63,005 | 44.7 | |||||||||||||||||||||||||||||
| Advisory services | 87,510 | 47,135 | 42,065 | 85.7 | 108.0 | 209,163 | 197,880 | 5.7 | |||||||||||||||||||||||||||||
| Total investment banking | 129,470 | 91,871 | 83,072 | 40.9 | 55.9 | 414,826 | 370,591 | 11.9 | |||||||||||||||||||||||||||||
| Institutional sales and trading | |||||||||||||||||||||||||||||||||||||
| Equities | 19,246 | 20,026 | 22,874 | (3.9 | ) | (15.9 | ) | 78,584 | 82,211 | (4.4 | ) | ||||||||||||||||||||||||||
| Fixed income | 34,347 | 18,259 | 23,140 | 88.1 | 48.4 | 94,305 | 92,200 | 2.3 | |||||||||||||||||||||||||||||
| Total institutional sales and trading | 53,593 | 38,285 | 46,014 | 40.0 | 16.5 | 172,889 | 174,411 | (0.9 | ) | ||||||||||||||||||||||||||||
| Management and performance fees | 716 | 1,898 | 886 | (62.3 | ) | (19.2 | ) | 4,642 | 5,398 | (14.0 | ) | ||||||||||||||||||||||||||
| Investment income | 2,274 | 7,274 | 3,446 | (68.7 | ) | (34.0 | ) | 24,468 | 24,046 | 1.8 | |||||||||||||||||||||||||||
| Long-term financing expenses | (2,713 | ) | (1,668 | ) | (1,597 | ) | 62.6 | 69.9 | (7,494 | ) | (6,655 | ) | 12.6 | ||||||||||||||||||||||||
| Net revenues | 183,340 | 137,660 | 131,821 | 33.2 | 39.1 | 609,331 | 567,791 | 7.3 | |||||||||||||||||||||||||||||
| Operating expenses | 161,823 | 129,224 | 114,039 | 25.2 | 41.9 | 530,937 | 478,661 | 10.9 | |||||||||||||||||||||||||||||
| Segment pre-tax operating income | $ | 21,517 | $ | 8,436 | $ | 17,782 | 155.1 | % | 21.0 | % | $ | 78,394 | $ | 89,130 | (12.0 | )% | |||||||||||||||||||||
| Segment pre-tax operating margin | 11.7 | % | 6.1 | % | 13.5 | % | 12.9 | % | 15.7 | % | |||||||||||||||||||||||||||
| Asset Management | |||||||||||||||||||||||||||||||||||||
| Management and performance fees | |||||||||||||||||||||||||||||||||||||
| Management fees | $ | 15,571 | $ | 17,053 | $ | 19,298 | (8.7 | )% | (19.3 | )% | $ | 70,167 | $ | 78,772 | (10.9 | )% | |||||||||||||||||||||
| Performance fees | — | — | 58 | — | (100.0 | ) | 208 | 892 | (76.7 | ) | |||||||||||||||||||||||||||
| Total management and performance fees | 15,571 | 17,053 | 19,356 | (8.7 | ) | (19.6 | ) | 70,375 | 79,664 | (11.7 | ) | ||||||||||||||||||||||||||
| Investment income/(loss) | (1,547 | ) | (5,096 | ) | (629 | ) | (69.6 | ) | 145.9 | (6,788 | ) | 683 | N/M | ||||||||||||||||||||||||
| Net revenues | 14,024 | 11,957 | 18,727 | 17.3 | (25.1 | ) | 63,587 | 80,347 | (20.9 | ) | |||||||||||||||||||||||||||
| Operating expenses | 13,057 | 13,605 | 15,020 | (4.0 | ) | (13.1 | ) | 55,558 | 59,166 | (6.1 | ) | ||||||||||||||||||||||||||
| Segment pre-tax operating income/(loss) | $ | 967 | $ | (1,648 | ) | $ | 3,707 | N/M | (73.9 | )% | $ | 8,029 | $ | 21,181 | (62.1 | )% | |||||||||||||||||||||
| Segment pre-tax operating margin | 6.9 | % | (13.8 | )% | 19.8 | % | 12.6 | % | 26.4 | % | |||||||||||||||||||||||||||
| Total | |||||||||||||||||||||||||||||||||||||
| Net revenues | $ | 197,364 | $ | 149,617 | $ | 150,548 | 31.9 | % | 31.1 | % | $ | 672,918 | $ | 648,138 | 3.8 | % | |||||||||||||||||||||
| Operating expenses | 174,880 | 142,829 | 129,059 | 22.4 | 35.5 | 586,495 | 537,827 | 9.0 | |||||||||||||||||||||||||||||
| Pre-tax operating income | $ | 22,484 | $ | 6,788 | $ | 21,489 | 231.2 | % | 4.6 | % | $ | 86,423 | $ | 110,311 | (21.7 | )% | |||||||||||||||||||||
| Pre-tax operating margin | 11.4 | % | 4.5 | % | 14.3 | % | 12.8 | % | 17.0 | % | |||||||||||||||||||||||||||
|
N/M — Not meaningful |
|||||||||||||||||||||||||||||||||||||
| Piper Jaffray Companies | |||||||||||||||||||||||||||||||||||||
| Preliminary Selected Summary Financial Information (Non-GAAP – Unaudited) (1) | |||||||||||||||||||||||||||||||||||||
| Three Months Ended | Percent Inc/(Dec) | Twelve Months Ended | |||||||||||||||||||||||||||||||||||
| Dec. 31, | Sept. 30, | Dec. 31, | 4Q '15 | 4Q '15 | Dec. 31, | Dec. 31, | Percent | ||||||||||||||||||||||||||||||
| (Amounts in thousands, except per share data) | 2015 | 2015 | 2014 | vs. 3Q '15 | vs. 4Q '14 | 2015 | 2014 | Inc/(Dec) | |||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||||
| Investment banking | $ | 129,332 | $ | 91,640 | $ | 82,613 | 41.1 | % | 56.6 | % | $ | 414,118 | $ | 369,811 | 12.0 | % | |||||||||||||||||||||
| Institutional brokerage | 47,350 | 34,182 | 42,324 | 38.5 | 11.9 | 154,229 | 156,809 | (1.6 | ) | ||||||||||||||||||||||||||||
| Asset management | 16,287 | 18,951 | 20,242 | (14.1 | ) | (19.5 | ) | 75,017 | 85,062 | (11.8 | ) | ||||||||||||||||||||||||||
| Interest | 8,564 | 7,885 | 8,853 | 8.6 | (3.3 | ) | 33,808 | 36,688 | (7.8 | ) | |||||||||||||||||||||||||||
| Investment income/(loss) | (839 | ) | 631 | 125 | N/M | N/M | 7,093 | 5,231 | 35.6 | ||||||||||||||||||||||||||||
| Total revenues | 200,694 | 153,289 | 154,157 | 30.9 | 30.2 | 684,265 | 653,601 | 4.7 | |||||||||||||||||||||||||||||
| Interest expense | 5,598 | 4,895 | 5,763 | 14.4 | (2.9 | ) | 21,157 | 21,162 | — | ||||||||||||||||||||||||||||
| Adjusted net revenues (2) | $ | 195,096 | $ | 148,394 | $ | 148,394 | 31.5 | % | 31.5 | % | $ | 663,108 | $ | 632,439 | 4.8 | % | |||||||||||||||||||||
| Non-interest expenses: | |||||||||||||||||||||||||||||||||||||
| Adjusted compensation and benefits (3) | $ | 124,802 | $ | 95,442 | $ | 92,552 | 30.8 | % | 34.8 | % | $ | 417,500 | $ | 389,281 | 7.2 | % | |||||||||||||||||||||
| Ratio of adjusted compensation and benefits to adjusted net revenues | 64.0 | % | 64.3 | % | 62.4 | % | 63.0 | % | 61.6 | % | |||||||||||||||||||||||||||
| Adjusted non-compensation expenses (4) | $ | 36,798 | $ | 42,589 | $ | 32,254 | (13.6 | )% | 14.1 | % | $ | 143,045 | $ | 129,499 | 10.5 | % | |||||||||||||||||||||
| Ratio of adjusted non-compensation expenses to adjusted net revenues | 18.9 | % | 28.7 | % | 21.7 | % | 21.6 | % | 20.5 | % | |||||||||||||||||||||||||||
| Adjusted income: | |||||||||||||||||||||||||||||||||||||
| Adjusted income before adjusted income tax expense (5) | $ | 33,496 | $ | 10,363 | $ | 23,588 | 223.2 | % | 42.0 | % | $ | 102,563 | $ | 113,659 | (9.8 | )% | |||||||||||||||||||||
| Adjusted operating margin (6) | 17.2 | % | 7.0 | % | 15.9 | % | 15.5 | % | 18.0 | % | |||||||||||||||||||||||||||
| Adjusted income tax expense (7) | 12,349 | 3,113 | 8,888 | 296.7 | 38.9 | 36,713 | 41,545 | (11.6 | ) | ||||||||||||||||||||||||||||
| Adjusted net income (8) | $ | 21,147 | $ | 7,250 | $ | 14,700 | 191.7 | % | 43.9 | % | $ | 65,850 | $ | 72,114 | (8.7 | )% | |||||||||||||||||||||
| Effective tax rate (9) | 36.9 | % | 30.0 | % | 37.7 | % | 35.8 | % | 36.6 | % | |||||||||||||||||||||||||||
| Adjusted net income applicable to Piper Jaffray Companies’ common shareholders (10) | $ | 19,354 | $ | 6,676 | $ | 13,712 | 189.9 | % | 41.1 | % | $ | 60,773 | $ | 66,371 | (8.4 | )% | |||||||||||||||||||||
| Adjusted earnings per diluted common share | $ | 1.40 | $ | 0.48 | $ | 0.90 | 191.7 | % | 55.6 | % | $ | 4.22 | $ | 4.42 | (4.5 | )% | |||||||||||||||||||||
| Weighted average number of common shares outstanding | |||||||||||||||||||||||||||||||||||||
| Diluted | 13,782 | 13,952 | 15,293 | (1.2 | )% | (9.9 | )% | 14,389 | 15,025 | (4.2 | )% | ||||||||||||||||||||||||||
|
This presentation includes non-GAAP measures. The non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see "Reconciliation of U.S. GAAP to Selected Summary Financial Information." |
|
N/M — Not meaningful |
| Piper Jaffray Companies | |||||||||||||||||||||||||||||||||||||
| Preliminary Adjusted Segment Data (Non-GAAP – Unaudited) | |||||||||||||||||||||||||||||||||||||
| Three Months Ended | Percent Inc/(Dec) | Twelve Months Ended | |||||||||||||||||||||||||||||||||||
| Dec. 31, | Sept. 30, | Dec. 31, | 4Q '15 | 4Q '15 | Dec. 31, | Dec. 31, | Percent | ||||||||||||||||||||||||||||||
| (Dollars in thousands) | 2015 | 2015 | 2014 | vs. 3Q '15 | vs. 4Q '14 | 2015 | 2014 | Inc/(Dec) | |||||||||||||||||||||||||||||
| Capital Markets | |||||||||||||||||||||||||||||||||||||
| Investment banking | |||||||||||||||||||||||||||||||||||||
| Financing | |||||||||||||||||||||||||||||||||||||
| Equities | $ | 19,847 | $ | 24,290 | $ | 21,474 | (18.3 | )% | (7.6 | )% | $ | 114,468 | $ | 109,706 | 4.3 | % | |||||||||||||||||||||
| Debt | 22,113 | 20,446 | 19,533 | 8.2 | 13.2 | 91,195 | 63,005 | 44.7 | |||||||||||||||||||||||||||||
| Advisory services | 87,510 | 47,135 | 42,065 | 85.7 | 108.0 | 209,163 | 197,880 | 5.7 | |||||||||||||||||||||||||||||
| Total investment banking | 129,470 | 91,871 | 83,072 | 40.9 | 55.9 | 414,826 | 370,591 | 11.9 | |||||||||||||||||||||||||||||
| Institutional sales and trading | |||||||||||||||||||||||||||||||||||||
| Equities | 19,246 | 20,026 | 22,874 | (3.9 | ) | (15.9 | ) | 78,584 | 82,211 | (4.4 | ) | ||||||||||||||||||||||||||
| Fixed income | 33,531 | 18,259 | 23,140 | 83.6 | 44.9 | 93,489 | 92,200 | 1.4 | |||||||||||||||||||||||||||||
| Total institutional sales and trading | 52,777 | 38,285 | 46,014 | 37.9 | 14.7 | 172,073 | 174,411 | (1.3 | ) | ||||||||||||||||||||||||||||
| Management and performance fees | 716 | 1,898 | 886 | (62.3 | ) | (19.2 | ) | 4,642 | 5,398 | (14.0 | ) | ||||||||||||||||||||||||||
| Investment income | 822 | 6,051 | 1,292 | (86.4 | ) | (36.4 | ) | 15,474 | 8,347 | 85.4 | |||||||||||||||||||||||||||
| Long-term financing expenses | (2,713 | ) | (1,668 | ) | (1,597 | ) | 62.6 | 69.9 | (7,494 | ) | (6,655 | ) | 12.6 | ||||||||||||||||||||||||
| Adjusted net revenues (2) | 181,072 | 136,437 | 129,667 | 32.7 | 39.6 | 599,521 | 552,092 | 8.6 | |||||||||||||||||||||||||||||
| Adjusted operating expenses (12) | 150,053 | 125,936 | 111,682 | 19.2 | 34.4 | 511,241 | 467,198 | 9.4 | |||||||||||||||||||||||||||||
| Adjusted segment pre-tax operating income (5) | $ | 31,019 | $ | 10,501 | $ | 17,985 | 195.4 | % | 72.5 | % | $ | 88,280 | $ | 84,894 | 4.0 | % | |||||||||||||||||||||
| Adjusted segment pre-tax operating margin (6) | 17.1 | % | 7.7 | % | 13.9 | % | 14.7 | % | 15.4 | % | |||||||||||||||||||||||||||
| Asset Management | |||||||||||||||||||||||||||||||||||||
| Management and performance fees | |||||||||||||||||||||||||||||||||||||
| Management fees | $ | 15,571 | $ | 17,053 | $ | 19,298 | (8.7 | )% | (19.3 | )% | $ | 70,167 | $ | 78,772 | (10.9 | )% | |||||||||||||||||||||
| Performance fees | — | — | 58 | — | (100.0 | ) | 208 | 892 | (76.7 | ) | |||||||||||||||||||||||||||
| Total management and performance fees | 15,571 | 17,053 | 19,356 | (8.7 | ) | (19.6 | ) | 70,375 | 79,664 | (11.7 | ) | ||||||||||||||||||||||||||
| Investment income/(loss) | (1,547 | ) | (5,096 | ) | (629 | ) | (69.6 | ) | 145.9 | (6,788 | ) | 683 | N/M | ||||||||||||||||||||||||
| Net revenues | 14,024 | 11,957 | 18,727 | 17.3 | (25.1 | ) | 63,587 | 80,347 | (20.9 | ) | |||||||||||||||||||||||||||
| Adjusted operating expenses (13) | 11,547 | 12,095 | 13,124 | (4.5 | ) | (12.0 | ) | 49,304 | 51,582 | (4.4 | ) | ||||||||||||||||||||||||||
| Adjusted segment pre-tax operating income/(loss) (13) | $ | 2,477 | $ | (138 | ) | $ | 5,603 | N/M | (55.8 | )% | $ | 14,283 | $ | 28,765 | (50.3 | )% | |||||||||||||||||||||
| Adjusted segment pre-tax operating margin (6) | 17.7 | % | (1.2 | )% | 29.9 | % | 22.5 | % | 35.8 | % | |||||||||||||||||||||||||||
| Adjusted segment pre-tax operating margin excluding investment income/(loss) * | 25.8 | % | 29.1 | % | 32.2 | % | 29.9 | % | 35.3 | % | |||||||||||||||||||||||||||
| Total | |||||||||||||||||||||||||||||||||||||
| Adjusted net revenues (2) | $ | 195,096 | $ | 148,394 | $ | 148,394 | 31.5 | % | 31.5 | % | $ | 663,108 | $ | 632,439 | 4.8 | % | |||||||||||||||||||||
| Adjusted operating expenses (12) | 161,600 | 138,031 | 124,806 | 17.1 | 29.5 | 560,545 | 518,780 | 8.1 | |||||||||||||||||||||||||||||
|
Adjusted pre-tax operating income (5) |
$ | 33,496 | $ | 10,363 | $ | 23,588 | 223.2 | % | 42.0 | % | $ | 102,563 | $ | 113,659 | (9.8 | )% | |||||||||||||||||||||
| Adjusted pre-tax operating margin (6) | 17.2 | % | 7.0 | % | 15.9 | % | 15.5 | % | 18.0 | % | |||||||||||||||||||||||||||
|
This presentation includes non-GAAP measures. The non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see "Reconciliation of U.S. GAAP to Selected Summary Financial Information." |
|
* Management believes that presenting adjusted segment pre-tax operating margin excluding investment income/(loss) provides the most meaningful basis for comparison of the operating results for the Asset Management segment across periods. |
|
N/M — Not meaningful |
| Piper Jaffray Companies | |||||||||||||||||||||||||
| Reconciliation of U.S. GAAP to Selected Summary Financial Information (1) (Unaudited) | |||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||
| Dec. 31, | Sept. 30, | Dec. 31, | Dec. 31, | Dec. 31, | |||||||||||||||||||||
| (Amounts in thousands, except per share data) | 2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
| Net revenues: | |||||||||||||||||||||||||
| Net revenues – U.S. GAAP basis | $ | 197,364 | $ | 149,617 | $ | 150,548 | $ | 672,918 | $ | 648,138 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||||
| Revenue related to noncontrolling interests (11) | (2,268 | ) | (1,223 | ) | (2,154 | ) | (9,810 | ) | (15,699 | ) | |||||||||||||||
| Adjusted net revenues | $ | 195,096 | $ | 148,394 | $ | 148,394 | $ | 663,108 | $ | 632,439 | |||||||||||||||
| Compensation and benefits: | |||||||||||||||||||||||||
| Compensation and benefits – U.S. GAAP basis | $ | 126,190 | $ | 96,132 | $ | 93,765 | $ | 421,733 | $ | 394,510 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||||
| Compensation from acquisition-related agreements | (1,388 | ) | (690 | ) | (1,213 | ) | (4,233 | ) | (5,229 | ) | |||||||||||||||
| Adjusted compensation and benefits | $ | 124,802 | $ | 95,442 | $ | 92,552 | $ | 417,500 | $ | 389,281 | |||||||||||||||
| Non-compensation expenses: | |||||||||||||||||||||||||
| Non-compensation expenses – U.S. GAAP basis | $ | 48,690 | $ | 46,697 | $ | 35,294 | $ | 164,762 | $ | 143,317 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||||
| Non-compensation expenses related to noncontrolling interests (11) | (393 | ) | (839 | ) | (722 | ) | (3,403 | ) | (4,546 | ) | |||||||||||||||
| Restructuring and integration costs | (9,156 | ) | (1,496 | ) | — | (10,652 | ) | — | |||||||||||||||||
| Amortization of intangible assets related to acquisitions | (2,343 | ) | (1,773 | ) | (2,318 | ) | (7,662 | ) | (9,272 | ) | |||||||||||||||
| Adjusted non-compensation expenses | $ | 36,798 | $ | 42,589 | $ | 32,254 | $ | 143,045 | $ | 129,499 | |||||||||||||||
| Income before income tax expense: | |||||||||||||||||||||||||
| Income before income tax expense – U.S. GAAP basis | $ | 22,484 | $ | 6,788 | $ | 21,489 | $ | 86,423 | $ | 110,311 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||||
| Revenue related to noncontrolling interests (11) | (2,268 | ) | (1,223 | ) | (2,154 | ) | (9,810 | ) | (15,699 | ) | |||||||||||||||
| Expenses related to noncontrolling interests (11) | 393 | 839 | 722 | 3,403 | 4,546 | ||||||||||||||||||||
| Compensation from acquisition-related agreements | 1,388 | 690 | 1,213 | 4,233 | 5,229 | ||||||||||||||||||||
| Restructuring and integration costs | 9,156 | 1,496 | — | 10,652 | — | ||||||||||||||||||||
| Amortization of intangible assets related to acquisitions | 2,343 | 1,773 | 2,318 | 7,662 | 9,272 | ||||||||||||||||||||
| Adjusted income before adjusted income tax expense | $ | 33,496 | $ | 10,363 | $ | 23,588 | $ | 102,563 | $ | 113,659 | |||||||||||||||
| Income tax expense: | |||||||||||||||||||||||||
| Income tax expense – U.S. GAAP basis | $ | 7,336 | $ | 1,573 | $ | 7,514 | $ | 27,941 | $ | 35,986 | |||||||||||||||
| Tax effect of adjustments: | |||||||||||||||||||||||||
| Compensation from acquisition-related agreements | 540 | 268 | 472 | 1,647 | 2,034 | ||||||||||||||||||||
| Restructuring and integration costs | 3,562 | 582 | — | 4,144 | — | ||||||||||||||||||||
| Amortization of intangible assets related to acquisitions | 911 | 690 | 902 | 2,981 | 3,525 | ||||||||||||||||||||
| Adjusted income tax expense | $ | 12,349 | $ | 3,113 | $ | 8,888 | $ | 36,713 | $ | 41,545 | |||||||||||||||
| Net income applicable to Piper Jaffray Companies: | |||||||||||||||||||||||||
| Net income applicable to Piper Jaffray Companies – U.S. GAAP basis | $ | 13,273 | $ | 4,831 | $ | 12,543 | $ | 52,075 | $ | 63,172 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||||
| Compensation from acquisition-related agreements | 848 | 422 | 741 | 2,586 | 3,195 | ||||||||||||||||||||
| Restructuring and integration costs | 5,594 | 914 | — | 6,508 | — | ||||||||||||||||||||
| Amortization of intangible assets related to acquisitions | 1,432 | 1,083 | 1,416 | 4,681 | 5,747 | ||||||||||||||||||||
| Adjusted net income | $ | 21,147 | $ | 7,250 | $ | 14,700 | $ | 65,850 | $ | 72,114 | |||||||||||||||
| Net income applicable to Piper Jaffray Companies' common shareholders: | |||||||||||||||||||||||||
| Net income applicable to Piper Jaffray Companies' common stockholders – U.S. GAAP basis | $ | 12,147 | $ | 4,448 | $ | 11,700 | $ | 48,060 | $ | 58,141 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||||
| Compensation from acquisition-related agreements | 776 | 389 | 691 | 2,387 | 2,941 | ||||||||||||||||||||
| Restructuring and integration costs | 5,120 | 842 | — | 6,006 | — | ||||||||||||||||||||
| Amortization of intangible assets related to acquisitions | 1,311 | 997 | 1,321 | 4,320 | 5,289 | ||||||||||||||||||||
| Adjusted net income applicable to Piper Jaffray Companies' common stockholders | $ | 19,354 | $ | 6,676 | $ | 13,712 | $ | 60,773 | $ | 66,371 | |||||||||||||||
| Earnings per diluted common share: | |||||||||||||||||||||||||
| Earnings per diluted common share – U.S. GAAP basis | $ | 0.88 | $ | 0.32 | $ | 0.77 | $ | 3.34 | $ | 3.87 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||||
| Compensation from acquisition-related agreements | 0.06 | 0.03 | 0.05 | 0.17 | 0.20 | ||||||||||||||||||||
| Restructuring and integration costs | 0.37 | 0.06 | — | 0.42 | — | ||||||||||||||||||||
| Amortization of intangible assets related to acquisitions | 0.10 | 0.07 | 0.09 | 0.30 | 0.35 | ||||||||||||||||||||
| Adjusted earnings per diluted common share | $ | 1.40 | $ | 0.48 | $ | 0.90 | $ | 4.22 | $ | 4.42 | |||||||||||||||
|
This presentation includes non-GAAP measures. The non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. |
Notes to Non-GAAP Financial
Schedules
(1) Selected Summary Financial Information are non-GAAP measures. Management believes that presenting results and measures on an adjusted basis in conjunction with U.S. GAAP measures provides the most meaningful basis for comparison of its operating results across periods.
(2) A non-GAAP measure which excludes revenues related to noncontrolling interests (see (11) below).
(3) A non-GAAP measure which excludes compensation expense from acquisition-related agreements.
(4) A non-GAAP measure which excludes (a) non-compensation expenses related to noncontrolling interests (see (11) below), (b) restructuring and integration costs and (c) amortization of intangible assets related to acquisitions.
(5) A non-GAAP measure which excludes (a) revenues and expenses related to noncontrolling interests (see (11) below), (b) compensation from acquisition-related agreements, (c) restructuring and integration costs and (d) amortization of intangible assets related to acquisitions.
(6) A non-GAAP measure which represents adjusted income before adjusted income tax expense as a percentage of adjusted net revenues.
(7) A non-GAAP measure which excludes the income tax benefit from (a) compensation from acquisition-related agreements, (b) restructuring and integration costs and (c) amortization of intangible assets related to acquisitions.
(8) A non-GAAP measure which represents net income earned by the Company excluding (a) compensation expense from acquisition-related agreements, (b) restructuring and integration costs, (c) amortization of intangible assets related to acquisitions and (d) the income tax expense/(benefit) allocated to the adjustments.
(9) Effective tax rate is a non-GAAP measure which is computed based on a quotient, the numerator of which is adjusted income tax expense and the denominator of which is adjusted income before adjusted income tax expense.
(10)
(11) Noncontrolling interests include revenue and expenses from
consolidated alternative asset management entities that are not
attributable, either directly or indirectly, to
(12) A non-GAAP measure which excludes (a) expenses related to noncontrolling interests (see (11) above), (b) compensation from acquisition-related agreements, (c) restructuring and integration costs and (d) amortization of intangible assets related to acquisitions.
(13) A non-GAAP measure which excludes (a) compensation from acquisition-related agreements and (b) amortization of intangible assets related to acquisitions.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160204005342/en/
Source:
Piper Jaffray Companies
Investor Relations:
Tom
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