Piper Jaffray Companies (NYSE: PJC) today announced its financial
results for the quarter and year ended December 31, 2014.
Financial Highlights
-
Adjusted net income from continuing operations(1) was $14.7
million, or $0.90 per diluted common share(1), in the
fourth quarter of 2014, compared to $30.5 million, or $1.91 per
diluted common share, in the fourth quarter of 2013, and $16.9
million, or $1.03 per diluted common share, in the third quarter of
2014.
-
Adjusted net revenues from continuing operations(1) were
$148.4 million in the fourth quarter of 2014, compared to $182.6
million and $155.9 million in the fourth quarter of 2013 and the third
quarter of 2014, respectively.
-
Adjusted pre-tax operating margin(1) was 15.9% in the
fourth quarter of 2014, compared to 23.1% and 17.3% in the fourth
quarter of 2013 and the third quarter of 2014, respectively.
-
Record advisory services revenues of $186.2 million for the year ended
December 31, 2014.
-
Assets under management were $11.5 billion at December 31, 2014,
compared to $11.2 billion in the year-ago period and $12.2 billion at
the end of the third quarter of 2014.
-
Rolling 12 month return on average common shareholders' equity
increased to 8.1% at December 31, 2014, compared to 6.2% at
December 31, 2013. Our rolling 12 month return on average tangible
common shareholders' equity(2) increased to 11.8% at
December 31, 2014, compared to 9.3% at December 31, 2013.
-
Book value per share increased 5% from December 31, 2013 to $53.71 a
share at December 31, 2014.
|
(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.
|
|
|
|
|
|
(2)
|
|
A non-GAAP measure. See the "Additional Shareholder
Information" section for a detailed explanation of the adjustment
made to the corresponding U.S. GAAP measure. We believe that the
rolling 12 month return on average tangible common shareholders'
equity is a meaningful measure of our return on tangible assets
deployed in the business.
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Percent Inc/(Dec)
|
|
Twelve Months Ended
|
|
|
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Dec. 31,
|
|
4Q '14
|
|
4Q '14
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Percent
|
|
(Amounts in thousands, except per share data)
|
|
2014
|
|
2014
|
|
2013
|
|
vs. 3Q '14
|
|
vs. 4Q '13
|
|
2014
|
|
2013
|
|
Inc/(Dec)
|
|
As Adjusted(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
148,394
|
|
|
$
|
155,850
|
|
|
$
|
182,643
|
|
|
(4.8
|
)%
|
|
(18.8
|
)%
|
|
$
|
632,439
|
|
|
$
|
516,401
|
|
|
22.5
|
%
|
|
Net income from continuing operations
|
|
$
|
14,700
|
|
|
$
|
16,885
|
|
|
$
|
30,453
|
|
|
(12.9
|
)%
|
|
(51.7
|
)%
|
|
$
|
72,114
|
|
|
$
|
59,547
|
|
|
21.1
|
%
|
|
Earnings per diluted common share from continuing operations
|
|
$
|
0.90
|
|
|
$
|
1.03
|
|
|
$
|
1.91
|
|
|
(12.6
|
)%
|
|
(52.9
|
)%
|
|
$
|
4.42
|
|
|
$
|
3.56
|
|
|
24.2
|
%
|
|
Pre-tax operating margin from continuing operations
|
|
15.9
|
%
|
|
17.3
|
%
|
|
23.1
|
%
|
|
|
|
|
|
|
|
18.0
|
%
|
|
16.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
150,548
|
|
|
$
|
159,426
|
|
|
$
|
187,576
|
|
|
(5.6
|
)%
|
|
(19.7
|
)%
|
|
$
|
648,138
|
|
|
$
|
525,195
|
|
|
23.4
|
%
|
|
Net income from continuing operations
|
|
$
|
12,543
|
|
|
$
|
14,668
|
|
|
$
|
27,952
|
|
|
(14.5
|
)%
|
|
(55.1
|
)%
|
|
$
|
63,172
|
|
|
$
|
49,829
|
|
|
26.8
|
%
|
|
Earnings per diluted common share from continuing operations
|
|
$
|
0.77
|
|
|
$
|
0.90
|
|
|
$
|
1.75
|
|
|
(14.4
|
)%
|
|
(56.0
|
)%
|
|
$
|
3.87
|
|
|
$
|
2.98
|
|
|
29.9
|
%
|
|
Earnings per diluted common share
|
|
$
|
0.77
|
|
|
$
|
0.90
|
|
|
$
|
1.70
|
|
|
(14.4
|
)%
|
|
(54.7
|
)%
|
|
$
|
3.87
|
|
|
$
|
2.70
|
|
|
43.3
|
%
|
|
Pre-tax operating margin from continuing operations
|
|
14.3
|
%
|
|
16.1
|
%
|
|
22.4
|
%
|
|
|
|
|
|
|
|
17.0
|
%
|
|
14.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
|
|
|
(2)
|
|
A non-GAAP measure. See the "Additional Shareholder
Information" section for a detailed explanation of the adjustment
made to the corresponding U.S. GAAP measure. We believe that the
rolling 12 month return on average tangible common shareholders'
equity is a meaningful measure of our return on tangible assets
deployed in the business.
|
|
|
|
|
For the fourth quarter of 2014, on a U.S. GAAP basis, net revenues from
continuing operations were $150.5 million, and net income from
continuing operations was $12.5 million, or $0.77 per diluted common
share.
For the twelve months ended December 31, 2014, net revenues from
continuing operations on a U.S. GAAP basis were $648.1 million. Net
income from continuing operations on a U.S. GAAP basis was $63.2
million, or $3.87 per diluted common share, in 2014.
"With our strong finish to the year, we produced the best results for
our shareholders since we reemerged as a public company a decade ago,”
said Andrew S. Duff, Chairman and Chief Executive Officer. “Our prudent
management coupled with targeted investments in our businesses generated
an ROE of 8.1% for the year, an improvement of nearly 600 basis points
over the past three years.”
Fourth Quarter Results from Continuing Operations – 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 an adjusted basis in
conjunction with 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
2014, adjusted net revenues were $148.4 million, down 19% compared to
$182.6 million in the fourth quarter of 2013 due primarily to lower
equity financing revenues, lower asset management performance fees, and
lower investment gains from our merchant banking and firm investments.
Adjusted net revenues decreased 5% compared to the third quarter of 2014
due to lower advisory services revenues, partially offset by higher
equity and debt financing revenues and higher equity institutional
brokerage revenues.
For the fourth quarter of 2014, adjusted compensation and benefits
expenses were $92.6 million, down 16% compared to the fourth quarter of
2013 due to lower revenues and operating income. Adjusted compensation
and benefits expenses decreased 4% compared to the third quarter of 2014.
For the fourth quarter of 2014, adjusted compensation and benefits
expenses were 62.4% of adjusted net revenues, compared to 60.6% and
61.5% for the fourth quarter of 2013 and the third quarter of 2014,
respectively. The adjusted compensation ratio increased compared to both
periods due to a lower revenue base. Our compensation ratio was also
higher in the fourth quarter of 2014 as we made adjustments to reflect
our business activity for the full year.
Adjusted non-compensation expenses were $32.3 million for the fourth
quarter of 2014, up 8% compared to the year-ago period and down slightly
compared to the third quarter of 2014. Adjusted non-compensation
expenses were higher compared to the fourth quarter of 2013 due
primarily to higher third party marketing fees associated with our asset
management business.
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. The
operating results of our Hong Kong capital markets business, which we
shut down in 2012, and FAMCO, an asset management subsidiary sold in
2013, are presented as discontinued operations for all periods presented.
Capital Markets
For the quarter, Capital Markets
generated adjusted pre-tax operating income of $18.0 million, compared
to $31.1 million and $19.8 million in the fourth quarter of 2013 and the
third quarter of 2014, respectively.
Adjusted net revenues were $129.7 million, down 16% and 5% compared to
the year-ago period and the third quarter of 2014, respectively.
-
Equity financing revenues of $23.1 million decreased 33% compared to
the fourth quarter of 2013 due to fewer completed transactions.
Revenues increased 62% compared to the sequential quarter due to more
completed transactions and higher revenue per transaction.
-
Debt financing revenues were $19.6 million, down 12% compared to the
year-ago period due to fewer completed transactions, and up 36%
compared to the third quarter of 2014 due to more completed
transactions.
-
Advisory services revenues were $40.4 million, up 15% compared to the
fourth quarter of 2013 and down 39% compared to the third quarter of
2014. Revenues were favorable compared to the year-ago period due to
more completed transactions. Revenues decreased compared to the third
quarter of 2014 due to lower revenue per transaction.
-
Equity institutional brokerage revenues of $22.9 million decreased 12%
compared to the fourth quarter of 2013 due to lower gains from our
equity strategic trading activities. Revenues increased 37% compared
to the third quarter of 2014 due to higher client trading volumes and
gains from our equity strategic trading activities.
-
Fixed income institutional brokerage revenues were $23.1 million, down
13% compared to the fourth quarter of 2013 and up 2% compared to the
third quarter of 2014. Revenues decreased compared to the year-ago
period due to less attractive trading conditions.
-
Management and performance fees earned from managing our alternative
asset management funds were $0.9 million, compared to $1.2 million and
$1.4 million in the year-ago period and the sequential quarter,
respectively.
-
Adjusted investment income, which includes gains and losses on our
investments in the merchant banking fund and the municipal bond fund
that we manage for third-party investors, and other firm investments,
was $1.3 million, compared to $11.3 million in the year-ago period and
$1.6 million in the third quarter of 2014. In the fourth quarter of
2013, we recorded higher gains on our merchant banking investments.
-
Long-term financing expenses, which primarily represents interest paid
on the firm's variable rate senior notes, were $1.6 million, down
slightly compared to $1.8 million in the fourth quarter of 2013 and
essentially flat compared to the third quarter of 2014.
-
Adjusted operating expenses for the fourth quarter of 2014 were $111.7
million, down 10% compared to the fourth quarter of 2013. The decrease
resulted from lower compensation expenses due to decreased operating
results. Compared to the third quarter of 2014, adjusted operating
expenses decreased 4%.
-
Adjusted segment pre-tax operating margin was 13.9% compared to 20.1%
in the year-ago period and 14.6% in the third quarter of 2014.
Adjusted pre-tax operating margin declined compared to both periods
due to lower net revenues.
Asset Management
For the quarter ended December 31,
2014, Asset Management generated adjusted pre-tax operating income of
$5.6 million, compared to $11.0 million and $7.1 million in the fourth
quarter of 2013 and the third quarter of 2014, respectively.
Net revenues were $18.7 million, down 32% and 6% compared to the fourth
quarter of 2013 and the third quarter of 2014, respectively. The decline
compared to the year-ago period was due to lower performance fees, the
majority of which are recorded in the fourth quarter if earned. Also,
investment income/(loss) was a loss of $0.6 million for the current
quarter, compared with income of $1.4 million in the fourth quarter of
2013.
-
Adjusted operating expenses for the current quarter were $13.1
million, down 21% compared to the year-ago period and essentially flat
compared to the third quarter of 2014. Adjusted operating expenses
decreased compared to the fourth quarter of 2013 due to lower
compensation expenses, partially offset by higher third party
marketing fees.
-
Adjusted segment pre-tax operating margin was 29.9%, compared to 39.8%
in the fourth quarter of 2013 and 35.7% in the third quarter of 2014.
Adjusted segment pre-tax operating margin declined relative to the
fourth quarter of 2013 due to lower net revenues and higher
non-compensation expenses, and declined from the sequential quarter
due to higher non-compensation expenses.
-
Assets under management (AUM) were $11.5 billion at the end of the
fourth quarter of 2014, compared to $11.2 billion in the year-ago
period and $12.2 billion at the end of the third quarter of 2014. The
decrease in AUM compared to the sequential quarter was due to market
depreciation, especially in our MLP and energy strategies, and net
client outflows in our value equity strategies.
Other Matters
In the fourth quarter of 2013, we reversed the
full amount of our U.K. subsidiary's deferred tax asset valuation
allowance resulting in a $4.0 million, or $0.25 per diluted common
share, tax benefit to our results of operations for the quarter.
Full-Year 2014 Results from Continuing Operations – Non-GAAP Basis
Adjusted Consolidated Results
For 2014, adjusted net
revenues were $632.4 million, up 23% compared to $516.4 million in 2013
due primarily to higher advisory services revenues.
For 2014, adjusted compensation and benefits expenses were $389.3
million, up 22% compared to 2013, due to improved financial performance.
Adjusted compensation and benefits expenses were 61.6% of adjusted net
revenues in 2014, down from 61.9% in 2013.
Adjusted non-compensation expenses were $129.5 million in 2014, up 17%
compared to 2013. The increase was due to higher expenses from increased
business activity, and incremental costs associated with the
acquisitions of Seattle-Northwest and Edgeview. Additionally,
non-compensation expenses from continuing operations were reduced in
2013 due to the receipt of insurance proceeds for the reimbursement of
prior legal settlements.
Business Segment Results
Capital Markets
For 2014, Capital Markets generated
adjusted pre-tax operating income of $84.9 million, up 62% from $52.3
million in 2013. Adjusted net revenues were $552.1 million in 2014, up
27% compared to $434.5 million in the prior year, driven by higher
advisory services revenues.
Adjusted operating expenses were $467.2 million in 2014, up 22% compared
to 2013, due primarily to higher compensation expenses from increased
operating results. Adjusted segment pre-tax operating margin increased
from 12.0% in 2013 to 15.4% in 2014 due to operating leverage gained
from increased revenues.
Asset Management
For 2014, Asset Management generated
adjusted pre-tax operating income of $28.8 million, down 14% compared to
$33.5 million in 2013. Net revenues were $80.3 million in 2014, down 2%
compared to 2013.
Adjusted operating expenses were $51.6 million in 2014, up 7% compared
to 2013, due to higher non-compensation expenses. Adjusted segment
pre-tax operating margin declined from 40.9% in 2013 to 35.8% in 2014
due to higher non-compensation expenses. Non-compensation expenses were
higher due to an increase in third party marketing fees.
|
Additional Shareholder Information*
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended
|
|
|
|
Dec. 31, 2014
|
|
Sept. 30, 2014
|
|
Dec. 31, 2013
|
|
Full time employees
|
|
1,026
|
|
1,029
|
|
1,026
|
|
Equity financings
|
|
|
|
|
|
|
|
# of transactions
|
|
18
|
|
15
|
|
26
|
|
Capital raised
|
|
$2.7 billion
|
|
$3.5 billion
|
|
$3.8 billion
|
|
Negotiated tax-exempt issuances
|
|
|
|
|
|
|
|
# of transactions
|
|
92
|
|
85
|
|
97
|
|
Par value
|
|
$1.9 billion
|
|
$1.8 billion
|
|
$1.8 billion
|
|
Mergers & acquisitions
|
|
|
|
|
|
|
|
# of transactions
|
|
22
|
|
22
|
|
15
|
|
Aggregate deal value
|
|
$2.5 billion
|
|
$4.7 billion
|
|
$3.0 billion
|
|
Asset Management
|
|
|
|
|
|
|
|
AUM
|
|
$11.5 billion
|
|
$12.2 billion
|
|
$11.2 billion
|
|
Common shareholders’ equity
|
|
$819.9 million
|
|
$804.6 million
|
|
$734.7 million
|
|
Number of common shares outstanding (in thousands)
|
|
15,265
|
|
15,109
|
|
14,383
|
|
Rolling 12 month return on average common shareholders’ equity **
|
|
8.1%
|
|
10.2%
|
|
6.2%
|
|
Rolling 12 month return on average tangible common shareholders’
equity †
|
|
11.8%
|
|
15.2%
|
|
9.3%
|
|
Book value per share
|
|
$53.71
|
|
$53.26
|
|
$51.08
|
|
Tangible book value per share ‡
|
|
$37.82
|
|
$37.05
|
|
$33.66
|
|
|
|
|
|
|
|
|
|
*
|
|
Number of employees, transaction data, and AUM reflect continuing
operations; other numbers reflect continuing and discontinued
results.
|
|
|
|
|
|
**
|
|
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.
|
|
|
|
|
|
†
|
|
Rolling 12 month return on average tangible 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 less average goodwill and identifiable
intangible assets. Management believes that the rolling 12 month
return on average tangible common shareholders' equity is a
meaningful measure of our return on tangible assets deployed in the
business. Average common shareholders’ equity is the most directly
comparable GAAP financial measure to average tangible shareholders’
equity. The following is a reconciliation of average common
shareholders’ equity to average tangible common shareholders’ equity:
|
|
|
|
|
|
|
|
As of
|
|
As of
|
|
As of
|
|
(Amounts in thousands)
|
|
Dec. 31, 2014
|
|
Sept. 30, 2014
|
|
Dec. 31, 2013
|
|
Average common shareholders’ equity
|
|
$
|
783,425
|
|
$
|
759,971
|
|
$
|
728,187
|
|
Deduct: average goodwill and identifiable intangible assets
|
|
246,598
|
|
248,568
|
|
244,770
|
|
|
|
|
|
|
|
|
|
Average tangible common shareholders’ equity
|
|
$
|
536,827
|
|
$
|
511,403
|
|
$
|
483,417
|
|
|
|
|
|
|
|
|
|
|
|
|
‡
|
|
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, 2014
|
|
Sept. 30, 2014
|
|
Dec. 31, 2013
|
|
Common shareholders’ equity
|
|
$
|
819,912
|
|
$
|
804,633
|
|
$
|
734,676
|
|
Deduct: goodwill and identifiable intangible assets
|
|
242,536
|
|
244,854
|
|
250,564
|
|
|
|
|
|
|
|
|
|
Tangible common shareholders’ equity
|
|
$
|
577,376
|
|
$
|
559,779
|
|
$
|
484,112
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Shareholder Information* – Continued
|
|
|
|
|
|
|
|
|
|
For the Year Ended
|
|
|
|
Dec. 31, 2014
|
|
Dec. 31, 2013
|
|
Equity financings
|
|
|
|
|
|
# of transactions
|
|
97
|
|
92
|
|
Capital raised
|
|
$20.8 billion
|
|
$19.9 billion
|
|
Negotiated tax-exempt issuances
|
|
|
|
|
|
# of transactions
|
|
351
|
|
413
|
|
Par value
|
|
$7.7 billion
|
|
$7.9 billion
|
|
Mergers & acquisitions
|
|
|
|
|
|
# of transactions
|
|
77
|
|
36
|
|
Aggregate deal value
|
|
$13.7 billion
|
|
$4.8 billion
|
|
|
|
|
|
|
* Number of employees, transaction data, and AUM reflect continuing
operations; other numbers reflect continuing and discontinued results.
Conference Call
Andrew S. Duff, chairman and chief executive officer, and Debbra L.
Schoneman, chief financial officer, will hold a conference call to
review the financial results on Thur., Feb. 5 at 9 a.m. ET (8 a.m. CT).
The earnings release will be available on or after Feb. 5 at the firm's
Web site at www.piperjaffray.com.
The call can be accessed via webcast or by dialing (888)810-0209 or
(706)902-1361 (international) and referencing reservation #69387923.
Callers should dial in at least 15 minutes prior to the call time. A
replay of the conference call will be available beginning at
approximately 12 p.m. ET Feb. 5 at the same Web address or by calling
(855)859-2056 and referencing reservation #69387923.
About Piper Jaffray
Piper Jaffray is an investment bank and asset management firm serving
clients in the U.S. and internationally. Proven advisory teams combine
deep industry, product and sector expertise with ready access to
capital. Founded in 1895, the firm is headquartered in Minneapolis and
has offices across the United States and in London, Hong Kong and
Zurich. www.piperjaffray.com
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), anticipated financial
results generally (including expectations regarding our non-compensation
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), our strategic
priorities (including growth in public finance, asset management, and
corporate advisory), potential acquisitions or strategic hires, or other
similar matters.
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 capital markets 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;
-
interest rate volatility, especially if the changes are rapid or
severe, could negatively impact our fixed income institutional
business;
-
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
-
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, 2013 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,
2013, and updated in our subsequent reports filed with the SEC
(available at our Web site at www.piperjaffray.com
and at the SEC Web site at www.sec.gov).
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.
© 2015 Piper Jaffray Companies, 800 Nicollet Mall, Suite 1000,
Minneapolis, Minnesota 55402-7020
|
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 '14
|
|
4Q '14
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Percent
|
|
(Amounts in thousands, except per share data)
|
|
2014
|
|
2014
|
|
2013
|
|
vs. 3Q '14
|
|
vs. 4Q '13
|
|
2014
|
|
2013
|
|
Inc/(Dec)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment banking
|
|
$
|
82,613
|
|
|
$
|
94,911
|
|
|
$
|
91,639
|
|
|
(13.0
|
)%
|
|
(9.8
|
)%
|
|
$
|
369,811
|
|
|
$
|
248,563
|
|
|
48.8
|
%
|
|
Institutional brokerage
|
|
42,324
|
|
|
35,923
|
|
|
46,572
|
|
|
17.8
|
|
|
(9.1
|
)
|
|
156,809
|
|
|
146,648
|
|
|
6.9
|
|
|
Asset management
|
|
20,242
|
|
|
21,595
|
|
|
27,461
|
|
|
(6.3
|
)
|
|
(26.3
|
)
|
|
85,062
|
|
|
83,045
|
|
|
2.4
|
|
|
Interest
|
|
11,781
|
|
|
10,828
|
|
|
14,940
|
|
|
8.8
|
|
|
(21.1
|
)
|
|
48,716
|
|
|
50,409
|
|
|
(3.4
|
)
|
|
Investment income
|
|
434
|
|
|
2,690
|
|
|
13,281
|
|
|
(83.9
|
)
|
|
(96.7
|
)
|
|
12,813
|
|
|
21,566
|
|
|
(40.6
|
)
|
|
Total revenues
|
|
157,394
|
|
|
165,947
|
|
|
193,893
|
|
|
(5.2
|
)
|
|
(18.8
|
)
|
|
673,211
|
|
|
550,231
|
|
|
22.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
6,846
|
|
|
6,521
|
|
|
6,317
|
|
|
5.0
|
|
|
8.4
|
|
|
25,073
|
|
|
25,036
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
150,548
|
|
|
159,426
|
|
|
187,576
|
|
|
(5.6
|
)
|
|
(19.7
|
)
|
|
648,138
|
|
|
525,195
|
|
|
23.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
93,765
|
|
|
97,180
|
|
|
111,933
|
|
|
(3.5
|
)
|
|
(16.2
|
)
|
|
394,510
|
|
|
322,464
|
|
|
22.3
|
|
|
Occupancy and equipment
|
|
6,080
|
|
|
8,312
|
|
|
6,624
|
|
|
(26.9
|
)
|
|
(8.2
|
)
|
|
28,231
|
|
|
25,493
|
|
|
10.7
|
|
|
Communications
|
|
5,684
|
|
|
5,661
|
|
|
5,391
|
|
|
0.4
|
|
|
5.4
|
|
|
22,732
|
|
|
21,431
|
|
|
6.1
|
|
|
Floor brokerage and clearance
|
|
2,094
|
|
|
1,905
|
|
|
1,764
|
|
|
9.9
|
|
|
18.7
|
|
|
7,621
|
|
|
8,270
|
|
|
(7.8
|
)
|
|
Marketing and business development
|
|
7,473
|
|
|
6,827
|
|
|
5,219
|
|
|
9.5
|
|
|
43.2
|
|
|
27,260
|
|
|
21,603
|
|
|
26.2
|
|
|
Outside services
|
|
9,218
|
|
|
9,155
|
|
|
9,237
|
|
|
0.7
|
|
|
(0.2
|
)
|
|
37,055
|
|
|
32,982
|
|
|
12.3
|
|
|
Restructuring and integration costs
|
|
—
|
|
|
—
|
|
|
866
|
|
|
N/M
|
|
N/M
|
|
—
|
|
|
4,689
|
|
|
N/M
|
|
Intangible asset amortization expense
|
|
2,318
|
|
|
2,318
|
|
|
1,772
|
|
|
—
|
|
|
30.8
|
|
|
9,272
|
|
|
7,993
|
|
|
16.0
|
|
|
Other operating expenses
|
|
2,427
|
|
|
2,376
|
|
|
2,718
|
|
|
2.1
|
|
|
(10.7
|
)
|
|
11,146
|
|
|
4,657
|
|
|
139.3
|
|
|
Total non-interest expenses
|
|
129,059
|
|
|
133,734
|
|
|
145,524
|
|
|
(3.5
|
)
|
|
(11.3
|
)
|
|
537,827
|
|
|
449,582
|
|
|
19.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income tax expense
|
|
21,489
|
|
|
25,692
|
|
|
42,052
|
|
|
(16.4
|
)
|
|
(48.9
|
)
|
|
110,311
|
|
|
75,613
|
|
|
45.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
7,514
|
|
|
8,596
|
|
|
10,260
|
|
|
(12.6
|
)
|
|
(26.8
|
)
|
|
35,986
|
|
|
20,390
|
|
|
76.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
13,975
|
|
|
17,096
|
|
|
31,792
|
|
|
(18.3
|
)
|
|
(56.0
|
)
|
|
74,325
|
|
|
55,223
|
|
|
34.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
(818
|
)
|
|
N/M
|
|
N/M
|
|
—
|
|
|
(4,739
|
)
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
13,975
|
|
|
17,096
|
|
|
30,974
|
|
|
(18.3
|
)
|
|
(54.9
|
)
|
|
74,325
|
|
|
50,484
|
|
|
47.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to noncontrolling interests
|
|
1,432
|
|
|
2,428
|
|
|
3,840
|
|
|
(41.0
|
)
|
|
(62.7
|
)
|
|
11,153
|
|
|
5,394
|
|
|
106.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to Piper Jaffray Companies (a)
|
|
$
|
12,543
|
|
|
$
|
14,668
|
|
|
$
|
27,134
|
|
|
(14.5
|
)%
|
|
(53.8
|
)%
|
|
$
|
63,172
|
|
|
$
|
45,090
|
|
|
40.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to Piper Jaffray Companies’ common
shareholders (a)
|
|
$
|
11,700
|
|
|
$
|
13,552
|
|
|
$
|
24,445
|
|
|
(13.7
|
)%
|
|
(52.1
|
)%
|
|
$
|
58,141
|
|
|
$
|
40,596
|
|
|
43.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts applicable to Piper Jaffray Companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations
|
|
$
|
12,543
|
|
|
$
|
14,668
|
|
|
$
|
27,952
|
|
|
(14.5
|
)%
|
|
(55.1
|
)%
|
|
$
|
63,172
|
|
|
$
|
49,829
|
|
|
26.8
|
%
|
|
Net loss from discontinued operations
|
|
—
|
|
|
—
|
|
|
(818
|
)
|
|
N/M
|
|
N/M
|
|
—
|
|
|
(4,739
|
)
|
|
N/M
|
|
Net income applicable to Piper Jaffray Companies
|
|
$
|
12,543
|
|
|
$
|
14,668
|
|
|
$
|
27,134
|
|
|
(14.5
|
)%
|
|
(53.8
|
)%
|
|
$
|
63,172
|
|
|
$
|
45,090
|
|
|
40.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per basic common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.77
|
|
|
$
|
0.90
|
|
|
$
|
1.75
|
|
|
(14.4
|
)%
|
|
(56.0
|
)%
|
|
$
|
3.88
|
|
|
$
|
2.98
|
|
|
30.2
|
%
|
|
Loss from discontinued operations
|
|
—
|
|
|
—
|
|
|
(0.05
|
)
|
|
N/M
|
|
N/M
|
|
—
|
|
|
(0.28
|
)
|
|
N/M
|
|
Earnings per basic common share
|
|
$
|
0.77
|
|
|
$
|
0.90
|
|
|
$
|
1.70
|
|
|
(14.4
|
)%
|
|
(54.7
|
)%
|
|
$
|
3.88
|
|
|
$
|
2.70
|
|
|
43.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per diluted common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.77
|
|
|
$
|
0.90
|
|
|
$
|
1.75
|
|
|
(14.4
|
)%
|
|
(56.0
|
)%
|
|
$
|
3.87
|
|
|
$
|
2.98
|
|
|
29.9
|
%
|
|
Loss from discontinued operations
|
|
—
|
|
|
—
|
|
|
(0.05
|
)
|
|
N/M
|
|
N/M
|
|
—
|
|
|
(0.28
|
)
|
|
N/M
|
|
Earnings per diluted common share
|
|
$
|
0.77
|
|
|
$
|
0.90
|
|
|
$
|
1.70
|
|
|
(14.4
|
)%
|
|
(54.7
|
)%
|
|
$
|
3.87
|
|
|
$
|
2.70
|
|
|
43.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
15,241
|
|
|
15,066
|
|
|
14,378
|
|
|
1.2
|
%
|
|
6.0
|
%
|
|
14,971
|
|
|
15,046
|
|
|
(0.5
|
)%
|
|
Diluted
|
|
15,293
|
|
|
15,129
|
|
|
14,397
|
|
|
1.1
|
%
|
|
6.2
|
%
|
|
15,025
|
|
|
15,061
|
|
|
(0.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
Piper Jaffray Companies
|
|
|
|
|
|
|
|
|
|
|
|
|
Preliminary Segment Data from Continuing Operations (U.S. GAAP
– Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Percent Inc/(Dec)
|
|
Twelve Months Ended
|
|
|
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Dec. 31,
|
|
4Q '14
|
|
4Q '14
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Percent
|
|
(Dollars in thousands)
|
|
2014
|
|
2014
|
|
2013
|
|
vs. 3Q '14
|
|
vs. 4Q '13
|
|
2014
|
|
2013
|
|
Inc/(Dec)
|
|
Capital Markets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment banking
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equities
|
|
$
|
23,056
|
|
|
$
|
14,269
|
|
|
$
|
34,139
|
|
|
61.6
|
%
|
|
(32.5
|
)%
|
|
$
|
116,684
|
|
|
$
|
100,224
|
|
|
16.4
|
%
|
|
Debt
|
|
19,583
|
|
|
14,435
|
|
|
22,313
|
|
|
35.7
|
|
|
(12.2
|
)
|
|
67,731
|
|
|
74,284
|
|
|
(8.8
|
)
|
|
Advisory services
|
|
40,433
|
|
|
66,320
|
|
|
35,255
|
|
|
(39.0
|
)
|
|
14.7
|
|
|
186,176
|
|
|
74,420
|
|
|
150.2
|
|
|
Total investment banking
|
|
83,072
|
|
|
95,024
|
|
|
91,707
|
|
|
(12.6
|
)
|
|
(9.4
|
)
|
|
370,591
|
|
|
248,928
|
|
|
48.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Institutional sales and trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equities
|
|
22,874
|
|
|
16,711
|
|
|
26,092
|
|
|
36.9
|
|
|
(12.3
|
)
|
|
82,211
|
|
|
91,169
|
|
|
(9.8
|
)
|
|
Fixed income
|
|
23,140
|
|
|
22,737
|
|
|
26,543
|
|
|
1.8
|
|
|
(12.8
|
)
|
|
92,200
|
|
|
76,275
|
|
|
20.9
|
|
|
Total institutional sales and trading
|
|
46,014
|
|
|
39,448
|
|
|
52,635
|
|
|
16.6
|
|
|
(12.6
|
)
|
|
174,411
|
|
|
167,444
|
|
|
4.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management and performance fees
|
|
886
|
|
|
1,387
|
|
|
1,214
|
|
|
(36.1
|
)
|
|
(27.0
|
)
|
|
5,398
|
|
|
3,891
|
|
|
38.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income
|
|
3,446
|
|
|
5,224
|
|
|
16,191
|
|
|
(34.0
|
)
|
|
(78.7
|
)
|
|
24,046
|
|
|
30,404
|
|
|
(20.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term financing expenses
|
|
(1,597
|
)
|
|
(1,613
|
)
|
|
(1,802
|
)
|
|
(1.0
|
)
|
|
(11.4
|
)
|
|
(6,655
|
)
|
|
(7,420
|
)
|
|
(10.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
131,821
|
|
|
139,470
|
|
|
159,945
|
|
|
(5.5
|
)
|
|
(17.6
|
)
|
|
567,791
|
|
|
443,247
|
|
|
28.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
114,039
|
|
|
119,001
|
|
|
126,930
|
|
|
(4.2
|
)
|
|
(10.2
|
)
|
|
478,661
|
|
|
393,231
|
|
|
21.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment pre-tax operating income
|
|
$
|
17,782
|
|
|
$
|
20,469
|
|
|
$
|
33,015
|
|
|
(13.1
|
)%
|
|
(46.1
|
)
|
|
$
|
89,130
|
|
|
$
|
50,016
|
|
|
78.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment pre-tax operating margin
|
|
13.5
|
%
|
|
14.7
|
%
|
|
20.6
|
%
|
|
|
|
|
|
|
|
15.7
|
%
|
|
11.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management and performance fees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees
|
|
$
|
19,298
|
|
|
$
|
19,738
|
|
|
$
|
19,123
|
|
|
(2.2
|
)%
|
|
0.9
|
%
|
|
$
|
78,772
|
|
|
$
|
71,314
|
|
|
10.5
|
%
|
|
Performance fees
|
|
58
|
|
|
470
|
|
|
7,124
|
|
|
(87.7
|
)
|
|
(99.2
|
)
|
|
892
|
|
|
7,840
|
|
|
(88.6
|
)
|
|
Total management and performance fees
|
|
19,356
|
|
|
20,208
|
|
|
26,247
|
|
|
(4.2
|
)
|
|
(26.3
|
)
|
|
79,664
|
|
|
79,154
|
|
|
0.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income/(loss)
|
|
(629
|
)
|
|
(252
|
)
|
|
1,384
|
|
|
149.6
|
|
|
N/M
|
|
683
|
|
|
2,794
|
|
|
(75.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
18,727
|
|
|
19,956
|
|
|
27,631
|
|
|
(6.2
|
)
|
|
(32.2
|
)
|
|
80,347
|
|
|
81,948
|
|
|
(2.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
15,020
|
|
|
14,733
|
|
|
18,594
|
|
|
1.9
|
|
|
(19.2
|
)
|
|
59,166
|
|
|
56,351
|
|
|
5.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment pre-tax operating income
|
|
$
|
3,707
|
|
|
$
|
5,223
|
|
|
$
|
9,037
|
|
|
(29.0
|
)%
|
|
(59.0
|
)%
|
|
$
|
21,181
|
|
|
$
|
25,597
|
|
|
(17.3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment pre-tax operating margin
|
|
19.8
|
%
|
|
26.2
|
%
|
|
32.7
|
%
|
|
|
|
|
|
|
|
26.4
|
%
|
|
31.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
150,548
|
|
|
$
|
159,426
|
|
|
$
|
187,576
|
|
|
(5.6
|
)%
|
|
(19.7
|
)%
|
|
$
|
648,138
|
|
|
$
|
525,195
|
|
|
23.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
129,059
|
|
|
133,734
|
|
|
145,524
|
|
|
(3.5
|
)
|
|
(11.3
|
)
|
|
537,827
|
|
|
449,582
|
|
|
19.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax operating income
|
|
$
|
21,489
|
|
|
$
|
25,692
|
|
|
$
|
42,052
|
|
|
(16.4
|
)%
|
|
(48.9
|
)%
|
|
$
|
110,311
|
|
|
$
|
75,613
|
|
|
45.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax operating margin
|
|
14.3
|
%
|
|
16.1
|
%
|
|
22.4
|
%
|
|
|
|
|
|
|
|
17.0
|
%
|
|
14.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment pre-tax operating income and segment pre-tax operation margin
exclude the results of discontinued operations.
N/M — Not meaningful
|
Piper Jaffray Companies
|
|
|
|
|
|
|
|
|
|
|
|
|
Preliminary Selected Summary Financial Information from
Continuing Operations (Non-GAAP – Unaudited) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Percent Inc/(Dec)
|
|
Twelve Months Ended
|
|
|
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Dec. 31,
|
|
4Q '14
|
|
4Q '14
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Percent
|
|
(Amounts in thousands, except per share data)
|
|
2014
|
|
2014
|
|
2013
|
|
vs. 3Q '14
|
|
vs. 4Q '13
|
|
2014
|
|
2013
|
|
Inc/(Dec)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment banking
|
|
$
|
82,613
|
|
|
$
|
94,911
|
|
|
$
|
91,639
|
|
|
(13.0
|
)%
|
|
(9.8
|
)%
|
|
$
|
369,811
|
|
|
$
|
248,563
|
|
|
48.8
|
%
|
|
Institutional brokerage
|
|
42,324
|
|
|
35,923
|
|
|
46,572
|
|
|
17.8
|
|
|
(9.1
|
)
|
|
156,809
|
|
|
146,648
|
|
|
6.9
|
|
|
Asset management
|
|
20,242
|
|
|
21,595
|
|
|
27,461
|
|
|
(6.3
|
)
|
|
(26.3
|
)
|
|
85,062
|
|
|
83,045
|
|
|
2.4
|
|
|
Interest
|
|
8,853
|
|
|
8,028
|
|
|
11,400
|
|
|
10.3
|
|
|
(22.3
|
)
|
|
36,688
|
|
|
40,292
|
|
|
(8.9
|
)
|
|
Investment income
|
|
125
|
|
|
859
|
|
|
10,956
|
|
|
(85.4
|
)
|
|
(98.9
|
)
|
|
5,231
|
|
|
19,540
|
|
|
(73.2
|
)
|
|
Total revenues
|
|
154,157
|
|
|
161,316
|
|
|
188,028
|
|
|
(4.4
|
)
|
|
(18.0
|
)
|
|
653,601
|
|
|
538,088
|
|
|
21.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
5,763
|
|
|
5,466
|
|
|
5,385
|
|
|
5.4
|
|
|
7.0
|
|
|
21,162
|
|
|
21,687
|
|
|
(2.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net revenues (2)
|
|
$
|
148,394
|
|
|
$
|
155,850
|
|
|
$
|
182,643
|
|
|
(4.8
|
)%
|
|
(18.8
|
)%
|
|
$
|
632,439
|
|
|
$
|
516,401
|
|
|
22.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted compensation and benefits (3)
|
|
$
|
92,552
|
|
|
$
|
95,869
|
|
|
$
|
110,652
|
|
|
(3.5
|
)%
|
|
(16.4
|
)%
|
|
$
|
389,281
|
|
|
$
|
319,560
|
|
|
21.8
|
%
|
|
Ratio of adjusted compensation and benefits to adjusted net
revenues
|
|
62.4
|
%
|
|
61.5
|
%
|
|
60.6
|
%
|
|
|
|
|
|
|
|
61.6
|
%
|
|
61.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted non-compensation expenses (4)
|
|
$
|
32,254
|
|
|
$
|
33,088
|
|
|
$
|
29,860
|
|
|
(2.5
|
)%
|
|
8.0
|
%
|
|
$
|
129,499
|
|
|
$
|
111,036
|
|
|
16.6
|
%
|
|
Ratio of adjusted non-compensation expenses to adjusted net
revenues
|
|
21.7
|
%
|
|
21.2
|
%
|
|
16.3
|
%
|
|
|
|
|
|
|
|
20.5
|
%
|
|
21.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income from continuing operations before adjusted income
tax expense (5)
|
|
$
|
23,588
|
|
|
$
|
26,893
|
|
|
$
|
42,131
|
|
|
(12.3
|
)%
|
|
(44.0
|
)%
|
|
$
|
113,659
|
|
|
$
|
85,805
|
|
|
32.5
|
%
|
|
Adjusted operating margin (6)
|
|
15.9
|
%
|
|
17.3
|
%
|
|
23.1
|
%
|
|
|
|
|
|
|
|
18.0
|
%
|
|
16.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax expense (7)
|
|
8,888
|
|
|
10,008
|
|
|
11,678
|
|
|
(11.2
|
)
|
|
(23.9
|
)
|
|
41,545
|
|
|
26,258
|
|
|
58.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income from continuing operations (8)
|
|
$
|
14,700
|
|
|
$
|
16,885
|
|
|
$
|
30,453
|
|
|
(12.9
|
)%
|
|
(51.7
|
)%
|
|
$
|
72,114
|
|
|
$
|
59,547
|
|
|
21.1
|
%
|
|
Effective tax rate (9)
|
|
37.7
|
%
|
|
37.2
|
%
|
|
27.7
|
%
|
|
|
|
|
|
|
|
36.6
|
%
|
|
30.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income from continuing operations applicable to
Piper Jaffray Companies’ common shareholders (10)
|
|
$
|
13,712
|
|
|
$
|
15,600
|
|
|
$
|
27,435
|
|
|
(12.1
|
)%
|
|
(50.0
|
)%
|
|
$
|
66,371
|
|
|
$
|
53,612
|
|
|
23.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per diluted common share from continuing
operations
|
|
$
|
0.90
|
|
|
$
|
1.03
|
|
|
$
|
1.91
|
|
|
(12.6
|
)%
|
|
(52.9
|
)%
|
|
$
|
4.42
|
|
|
$
|
3.56
|
|
|
24.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
15,293
|
|
|
15,129
|
|
|
14,397
|
|
|
1.1
|
%
|
|
6.2
|
%
|
|
15,025
|
|
|
15,061
|
|
|
(0.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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."
|
Piper Jaffray Companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preliminary Adjusted Segment Data from Continuing Operations
(Non-GAAP – Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Percent Inc/(Dec)
|
|
Twelve Months Ended
|
|
|
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Dec. 31,
|
|
4Q '14
|
|
4Q '14
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Percent
|
|
(Dollars in thousands)
|
|
2014
|
|
2014
|
|
2013
|
|
vs. 3Q '14
|
|
vs. 4Q '13
|
|
2014
|
|
2013
|
|
Inc/(Dec)
|
|
Capital Markets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment banking
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equities
|
|
$
|
23,056
|
|
|
$
|
14,269
|
|
|
$
|
34,139
|
|
|
61.6
|
%
|
|
(32.5
|
)%
|
|
$
|
116,684
|
|
|
$
|
100,224
|
|
|
16.4
|
%
|
|
Debt
|
|
19,583
|
|
|
14,435
|
|
|
22,313
|
|
|
35.7
|
|
|
(12.2
|
)
|
|
67,731
|
|
|
74,284
|
|
|
(8.8
|
)
|
|
Advisory services
|
|
40,433
|
|
|
66,320
|
|
|
35,255
|
|
|
(39.0
|
)
|
|
14.7
|
|
|
186,176
|
|
|
74,420
|
|
|
150.2
|
|
|
Total investment banking
|
|
83,072
|
|
|
95,024
|
|
|
91,707
|
|
|
(12.6
|
)
|
|
(9.4
|
)
|
|
370,591
|
|
|
248,928
|
|
|
48.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Institutional sales and trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equities
|
|
22,874
|
|
|
16,711
|
|
|
26,092
|
|
|
36.9
|
|
|
(12.3
|
)
|
|
82,211
|
|
|
91,169
|
|
|
(9.8
|
)
|
|
Fixed income
|
|
23,140
|
|
|
22,737
|
|
|
26,543
|
|
|
1.8
|
|
|
(12.8
|
)
|
|
92,200
|
|
|
76,275
|
|
|
20.9
|
|
|
Total institutional sales and trading
|
|
46,014
|
|
|
39,448
|
|
|
52,635
|
|
|
16.6
|
|
|
(12.6
|
)
|
|
174,411
|
|
|
167,444
|
|
|
4.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management and performance fees
|
|
886
|
|
|
1,387
|
|
|
1,214
|
|
|
(36.1
|
)
|
|
(27.0
|
)
|
|
5,398
|
|
|
3,891
|
|
|
38.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income
|
|
1,292
|
|
|
1,648
|
|
|
11,258
|
|
|
(21.6
|
)
|
|
(88.5
|
)
|
|
8,347
|
|
|
21,610
|
|
|
(61.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term financing expenses
|
|
(1,597
|
)
|
|
(1,613
|
)
|
|
(1,802
|
)
|
|
(1.0
|
)
|
|
(11.4
|
)
|
|
(6,655
|
)
|
|
(7,420
|
)
|
|
(10.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net revenues (2)
|
|
129,667
|
|
|
135,894
|
|
|
155,012
|
|
|
(4.6
|
)
|
|
(16.4
|
)
|
|
552,092
|
|
|
434,453
|
|
|
27.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating expenses (12)
|
|
111,682
|
|
|
116,120
|
|
|
123,884
|
|
|
(3.8
|
)
|
|
(9.8
|
)
|
|
467,198
|
|
|
382,157
|
|
|
22.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment pre-tax operating income (5)
|
|
$
|
17,985
|
|
|
$
|
19,774
|
|
|
$
|
31,128
|
|
|
(9.0
|
)%
|
|
(42.2
|
)
|
|
$
|
84,894
|
|
|
$
|
52,296
|
|
|
62.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment pre-tax operating margin (6)
|
|
13.9
|
%
|
|
14.6
|
%
|
|
20.1
|
%
|
|
|
|
|
|
|
|
15.4
|
%
|
|
12.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management and performance fees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees
|
|
$
|
19,298
|
|
|
$
|
19,738
|
|
|
$
|
19,123
|
|
|
(2.2
|
)%
|
|
0.9
|
%
|
|
$
|
78,772
|
|
|
$
|
71,314
|
|
|
10.5
|
%
|
|
Performance fees
|
|
58
|
|
|
470
|
|
|
7,124
|
|
|
(87.7
|
)
|
|
(99.2
|
)
|
|
892
|
|
|
7,840
|
|
|
(88.6
|
)
|
|
Total management and performance fees
|
|
19,356
|
|
|
20,208
|
|
|
26,247
|
|
|
(4.2
|
)
|
|
(26.3
|
)
|
|
79,664
|
|
|
79,154
|
|
|
0.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income/(loss)
|
|
(629
|
)
|
|
(252
|
)
|
|
1,384
|
|
|
149.6
|
|
|
N/M
|
|
683
|
|
|
2,794
|
|
|
(75.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
18,727
|
|
|
19,956
|
|
|
27,631
|
|
|
(6.2
|
)
|
|
(32.2
|
)
|
|
80,347
|
|
|
81,948
|
|
|
(2.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating expenses (13)
|
|
13,124
|
|
|
12,837
|
|
|
16,628
|
|
|
2.2
|
|
|
(21.1
|
)
|
|
51,582
|
|
|
48,439
|
|
|
6.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment pre-tax operating income (13)
|
|
$
|
5,603
|
|
|
$
|
7,119
|
|
|
$
|
11,003
|
|
|
(21.3
|
)%
|
|
(49.1
|
)%
|
|
$
|
28,765
|
|
|
$
|
33,509
|
|
|
(14.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment pre-tax operating margin (6)
|
|
29.9
|
%
|
|
35.7
|
%
|
|
39.8
|
%
|
|
|
|
|
|
|
|
35.8
|
%
|
|
40.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net revenues (2)
|
|
$
|
148,394
|
|
|
$
|
155,850
|
|
|
$
|
182,643
|
|
|
(4.8
|
)%
|
|
(18.8
|
)%
|
|
$
|
632,439
|
|
|
$
|
516,401
|
|
|
22.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating expenses (12)
|
|
124,806
|
|
|
128,957
|
|
|
140,512
|
|
|
(3.2
|
)
|
|
(11.2
|
)
|
|
518,780
|
|
|
430,596
|
|
|
20.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax operating income (5)
|
|
$
|
23,588
|
|
|
$
|
26,893
|
|
|
$
|
42,131
|
|
|
(12.3
|
)%
|
|
(44.0
|
)%
|
|
$
|
113,659
|
|
|
$
|
85,805
|
|
|
32.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax operating margin (6)
|
|
15.9
|
%
|
|
17.3
|
%
|
|
23.1
|
%
|
|
|
|
|
|
|
|
18.0
|
%
|
|
16.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
2014
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues – U.S. GAAP basis
|
|
$
|
150,548
|
|
|
$
|
159,426
|
|
|
$
|
187,576
|
|
|
$
|
648,138
|
|
|
$
|
525,195
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue related to noncontrolling interests (11)
|
|
(2,154
|
)
|
|
(3,576
|
)
|
|
(4,933
|
)
|
|
(15,699
|
)
|
|
(8,794
|
)
|
|
Adjusted net revenues
|
|
$
|
148,394
|
|
|
$
|
155,850
|
|
|
$
|
182,643
|
|
|
$
|
632,439
|
|
|
$
|
516,401
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits – U.S. GAAP basis
|
|
$
|
93,765
|
|
|
$
|
97,180
|
|
|
$
|
111,933
|
|
|
$
|
394,510
|
|
|
$
|
322,464
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation from acquisition-related agreements
|
|
(1,213
|
)
|
|
(1,311
|
)
|
|
(1,281
|
)
|
|
(5,229
|
)
|
|
(2,904
|
)
|
|
Adjusted compensation and benefits
|
|
$
|
92,552
|
|
|
$
|
95,869
|
|
|
$
|
110,652
|
|
|
$
|
389,281
|
|
|
$
|
319,560
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-compensation expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-compensation expenses – U.S. GAAP basis
|
|
$
|
35,294
|
|
|
$
|
36,554
|
|
|
$
|
33,591
|
|
|
$
|
143,317
|
|
|
$
|
127,118
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-compensation expenses related to noncontrolling interests (11)
|
|
(722
|
)
|
|
(1,148
|
)
|
|
(1,093
|
)
|
|
(4,546
|
)
|
|
(3,400
|
)
|
|
Restructuring and integration costs
|
|
—
|
|
|
—
|
|
|
(866
|
)
|
|
—
|
|
|
(4,689
|
)
|
|
Amortization of intangible assets related to acquisitions
|
|
(2,318
|
)
|
|
(2,318
|
)
|
|
(1,772
|
)
|
|
(9,272
|
)
|
|
(7,993
|
)
|
|
Adjusted non-compensation expenses
|
|
$
|
32,254
|
|
|
$
|
33,088
|
|
|
$
|
29,860
|
|
|
$
|
129,499
|
|
|
$
|
111,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income tax expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income tax expense – U.S.
GAAP basis
|
|
$
|
21,489
|
|
|
$
|
25,692
|
|
|
$
|
42,052
|
|
|
$
|
110,311
|
|
|
$
|
75,613
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue related to noncontrolling interests (11)
|
|
(2,154
|
)
|
|
(3,576
|
)
|
|
(4,933
|
)
|
|
(15,699
|
)
|
|
(8,794
|
)
|
|
Expenses related to noncontrolling interests (11)
|
|
722
|
|
|
1,148
|
|
|
1,093
|
|
|
4,546
|
|
|
3,400
|
|
|
Compensation from acquisition-related agreements
|
|
1,213
|
|
|
1,311
|
|
|
1,281
|
|
|
5,229
|
|
|
2,904
|
|
|
Restructuring and integration costs
|
|
—
|
|
|
—
|
|
|
866
|
|
|
—
|
|
|
4,689
|
|
|
Amortization of intangible assets related to acquisitions
|
|
2,318
|
|
|
2,318
|
|
|
1,772
|
|
|
9,272
|
|
|
7,993
|
|
|
Adjusted income from continuing operations before adjusted income
tax expense
|
|
$
|
23,588
|
|
|
$
|
26,893
|
|
|
$
|
42,131
|
|
|
$
|
113,659
|
|
|
$
|
85,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense – U.S. GAAP basis
|
|
$
|
7,514
|
|
|
$
|
8,596
|
|
|
$
|
10,260
|
|
|
$
|
35,986
|
|
|
$
|
20,390
|
|
|
Tax effect of adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation from acquisition-related agreements
|
|
472
|
|
|
510
|
|
|
498
|
|
|
2,034
|
|
|
1,130
|
|
|
Restructuring and integration costs
|
|
—
|
|
|
—
|
|
|
337
|
|
|
—
|
|
|
1,824
|
|
|
Amortization of intangible assets related to acquisitions
|
|
902
|
|
|
902
|
|
|
583
|
|
|
3,525
|
|
|
2,914
|
|
|
Adjusted income tax expense
|
|
$
|
8,888
|
|
|
$
|
10,008
|
|
|
$
|
11,678
|
|
|
$
|
41,545
|
|
|
$
|
26,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations applicable to Piper Jaffray
Companies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations applicable to Piper Jaffray
Companies – U.S. GAAP basis
|
|
$
|
12,543
|
|
|
$
|
14,668
|
|
|
$
|
27,952
|
|
|
$
|
63,172
|
|
|
$
|
49,829
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation from acquisition-related agreements
|
|
741
|
|
|
801
|
|
|
783
|
|
|
3,195
|
|
|
1,774
|
|
|
Restructuring and integration costs
|
|
—
|
|
|
—
|
|
|
529
|
|
|
—
|
|
|
2,865
|
|
|
Amortization of intangible assets related to acquisitions
|
|
1,416
|
|
|
1,416
|
|
|
1,189
|
|
|
5,747
|
|
|
5,079
|
|
|
Adjusted net income from continuing operations
|
|
$
|
14,700
|
|
|
$
|
16,885
|
|
|
$
|
30,453
|
|
|
$
|
72,114
|
|
|
$
|
59,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations applicable to Piper Jaffray
Companies' common shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations applicable to Piper Jaffray
Companies' common stockholders – U.S. GAAP basis
|
|
$
|
11,700
|
|
|
$
|
13,552
|
|
|
$
|
25,182
|
|
|
$
|
58,141
|
|
|
$
|
44,863
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation from acquisition-related agreements
|
|
691
|
|
|
740
|
|
|
705
|
|
|
2,941
|
|
|
1,597
|
|
|
Restructuring and integration costs
|
|
—
|
|
|
—
|
|
|
477
|
|
|
—
|
|
|
2,579
|
|
|
Amortization of intangible assets related to acquisitions
|
|
1,321
|
|
|
1,308
|
|
|
1,071
|
|
|
5,289
|
|
|
4,573
|
|
|
Adjusted net income from continuing operations applicable to Piper
Jaffray Companies' common stockholders
|
|
$
|
13,712
|
|
|
$
|
15,600
|
|
|
$
|
27,435
|
|
|
$
|
66,371
|
|
|
$
|
53,612
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted common share from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted common share – U.S. GAAP basis
|
|
$
|
0.77
|
|
|
$
|
0.90
|
|
|
$
|
1.75
|
|
|
$
|
3.87
|
|
|
$
|
2.98
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation from acquisition-related agreements
|
|
0.05
|
|
|
0.05
|
|
|
0.05
|
|
|
0.20
|
|
|
0.11
|
|
|
Restructuring and integration costs
|
|
—
|
|
|
—
|
|
|
0.03
|
|
|
—
|
|
|
0.17
|
|
|
Amortization of intangible assets related to acquisitions
|
|
0.09
|
|
|
0.09
|
|
|
0.07
|
|
|
0.35
|
|
|
0.30
|
|
|
Adjusted earnings per diluted common share from continuing operations
|
|
$
|
0.90
|
|
|
$
|
1.03
|
|
|
$
|
1.91
|
|
|
$
|
4.42
|
|
|
$
|
3.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
Piper Jaffray Companies
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 from continuing
operations 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 from continuing
operations 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 from continuing
operations before adjusted income tax expense.
|
|
|
|
|
|
(10)
|
|
Piper Jaffray Companies calculates earnings per common share using
the two-class method, which requires the allocation of consolidated
adjusted net income between common shareholders and participating
security holders, which in the case of Piper Jaffray Companies,
represents unvested stock with dividend rights.
|
|
|
|
|
|
(11)
|
|
Noncontrolling interests include revenue and expenses from
consolidated alternative asset management entities that are not
attributable, either directly or indirectly, to Piper Jaffray
Companies.
|
|
|
|
|
|
(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, (b) restructuring and integration
costs and (c) amortization of intangible assets and related to
acquisitions.
|
Copyright Business Wire 2015