Piper Jaffray Companies (NYSE: PJC) today announced its financial
results for the quarter ended June 30, 2015.
In the second quarter, we generated strong performance as our
businesses produced solid results, we made important progress on growth
initiatives and returned a significant amount of capital through share
repurchases.
Financial Highlights
-
Adjusted net income(1) was $18.6 million, or $1.19 per
diluted common share(1), in the second quarter of 2015,
compared to $20.5 million, or $1.25 per diluted common share, in the
second quarter of 2014, and $18.8 million, or $1.14 per diluted common
share, in the first quarter of 2015.
-
Adjusted net revenues(1) were $163.9 million in the second
quarter of 2015, compared to $166.7 million and $155.7 million in the
second quarter of 2014 and the first quarter of 2015, respectively.
-
Adjusted pre-tax operating margin(1) was 17.8% in the
second quarter of 2015, compared to 19.2% and 18.9% in the second
quarter of 2014 and the first quarter of 2015, respectively.
-
Assets under management were $11.4 billion at June 30, 2015, compared
to $12.6 billion in the year-ago period and $11.4 billion at the end
of the first quarter of 2015.
-
In the second quarter of 2015, we repurchased $59.4 million, or
approximately 1,200,000 shares of our common stock, at an average
price of $49.53 per share.
-
Rolling 12 month return on average common shareholders' equity
decreased to 7.5% at June 30, 2015, compared to 9.2% at June 30, 2014.
Our rolling 12 month return on average tangible common shareholders'
equity(2) decreased to 10.8% at June 30, 2015, compared to
13.9% at June 30, 2014.
-
Book value per share increased 8% from June 30, 2014 to $56.79 a share
at June 30, 2015.
|
|
|
Three Months Ended
|
|
Percent Inc/(Dec)
|
|
Six Months Ended
|
|
|
|
(Amounts in thousands,
|
|
June 30,
|
|
Mar. 31,
|
|
June 30,
|
|
2Q '15
|
|
2Q '15
|
|
June 30,
|
|
June 30,
|
|
Percent
|
|
except per share data)
|
|
2015
|
|
2015
|
|
2014
|
|
vs. 1Q '15
|
|
vs. 2Q '14
|
|
2015
|
|
2014
|
|
Inc/(Dec)
|
|
As Adjusted(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
163,879
|
|
|
$
|
155,739
|
|
|
$
|
166,698
|
|
|
5.2
|
%
|
|
(1.7
|
)%
|
|
$
|
319,618
|
|
|
$
|
328,195
|
|
|
(2.6
|
)%
|
|
Net income
|
|
$
|
18,634
|
|
|
$
|
18,819
|
|
|
$
|
20,494
|
|
|
(1.0
|
)%
|
|
(9.1
|
)%
|
|
$
|
37,453
|
|
|
$
|
40,529
|
|
|
(7.6
|
)%
|
|
Earnings per diluted common share
|
|
$
|
1.19
|
|
|
$
|
1.14
|
|
|
$
|
1.25
|
|
|
4.4
|
%
|
|
(4.8
|
)%
|
|
$
|
2.33
|
|
|
$
|
2.49
|
|
|
(6.4
|
)%
|
|
Pre-tax operating margin
|
|
17.8
|
%
|
|
18.9
|
%
|
|
19.2
|
%
|
|
|
|
|
|
18.4
|
%
|
|
19.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
164,066
|
|
|
$
|
161,871
|
|
|
$
|
170,031
|
|
|
1.4
|
%
|
|
(3.5
|
)%
|
|
$
|
325,937
|
|
|
$
|
338,164
|
|
|
(3.6
|
)%
|
|
Net income
|
|
$
|
16,999
|
|
|
$
|
16,972
|
|
|
$
|
18,213
|
|
|
0.2
|
%
|
|
(6.7
|
)%
|
|
$
|
33,971
|
|
|
$
|
35,961
|
|
|
(5.5
|
)%
|
|
Earnings per diluted common share
|
|
$
|
1.08
|
|
|
$
|
1.03
|
|
|
$
|
1.11
|
|
|
4.9
|
%
|
|
(2.7
|
)%
|
|
$
|
2.11
|
|
|
$
|
2.21
|
|
|
(4.5
|
)%
|
|
Pre-tax operating margin
|
|
15.8
|
%
|
|
19.3
|
%
|
|
17.9
|
%
|
|
|
|
|
|
17.5
|
%
|
|
18.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
(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 second quarter of 2015, on a U.S. GAAP basis, net revenues were
$164.1 million, and net income was $17.0 million, or $1.08 per diluted
common share.
“We continue to produce consistently strong results,” said Andrew S.
Duff, Chairman and Chief Executive Officer, "with our public finance and
advisory businesses leading the way this quarter. Our steady performance
over the past few years has positioned us to take advantage of growth
opportunities like the major expansion into FIG and the acquisition of
BMO Capital Markets GKST we announced recently."
Second 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 and (3)
compensation for acquisition-related agreements. 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 second quarter of
2015, adjusted net revenues were $163.9 million, down 2% compared to
$166.7 million in the second quarter of 2014. Adjusted net revenues
increased 5% compared to the first quarter of 2015 due to strong debt
financing and advisory services revenues, partially offset by investment
losses.
For the second quarter of 2015, adjusted compensation and benefits
expenses were $102.7 million, up slightly compared to the second quarter
of 2014. Adjusted compensation and benefits expenses increased 9%
compared to the first quarter of 2015 due primarily to higher revenues.
For the second quarter of 2015, adjusted compensation and benefits
expenses were 62.6% of adjusted net revenues, compared to 61.0% and
60.7% for the second quarter of 2014 and the first quarter of 2015,
respectively. The adjusted compensation ratio increased compared to both
the year-ago period and the sequential quarter due to a change in our
mix of business. The adjusted compensation ratio was also higher
compared to both periods due to compensation expenses associated with
significant hiring in our Capital Markets segment as we build a
financial institutions group.
Adjusted non-compensation expenses were $32.0 million for the second
quarter of 2015, down 3% compared to the year-ago period and up 1%
compared to the first quarter of 2015.
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 $24.3 million, compared
to $23.1 million and $22.4 million in the second quarter of 2014 and the
first quarter of 2015, respectively.
Adjusted net revenues were $146.0 million, up 1% and 7% compared to the
year-ago period and the first quarter of 2015, respectively.
-
Equity financing revenues of $35.8 million decreased 19% and 2%
compared to the second quarter of 2014 and the first quarter of 2015,
respectively. Revenues were unfavorable compared to the year-ago
period due to fewer completed transactions.
-
Debt financing revenues were $30.1 million, up 49% and 39% compared to
the year-ago period and the first quarter of 2015, respectively, due
to more completed transactions.
-
Advisory services revenues were $40.1 million, up 1% and 37% compared
to the second quarter of 2014 and the first quarter of 2015,
respectively. The increase compared to the sequential quarter was due
to higher revenue per transaction.
-
Equity institutional brokerage revenues of $20.4 million increased 11%
and 8% compared to the year-ago period and the first quarter of 2015,
respectively, due to higher client trading volumes.
-
Fixed income institutional brokerage revenues were $20.5 million, down
3% and 4% compared to the second quarter of 2014 and the first quarter
of 2015, respectively.
-
Management and performance fees earned from managing our alternative
asset management funds were $0.6 million, compared to $1.4 million in
both the year-ago period and the sequential quarter, respectively. The
decrease compared to both periods was due to lower performance fees.
-
Adjusted investment income, which includes realized and unrealized
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 not significant in the current quarter,
compared to $1.7 million in the year-ago period and $8.6 million in
the first quarter of 2015. We recorded higher gains on these
investments in both of the prior periods.
-
Long-term financing expenses, which primarily represent interest paid
on the firm's variable rate senior notes, were $1.6 million, down 9%
compared to the second quarter of 2014 and essentially flat with the
first quarter of 2015.
-
Adjusted operating expenses for the second quarter of 2015 were $121.7
million, essentially flat compared to the second quarter of 2014 and
up 7% compared to the first quarter of 2015. The increase compared to
the sequential quarter was due to higher compensation expenses.
-
Adjusted segment pre-tax operating margin was 16.7% compared to 15.9%
in the year-ago period and 16.5% in the first quarter of 2015.
Asset Management
For the quarter ended June 30, 2015,
Asset Management generated adjusted pre-tax operating income of $4.9
million, down 45% and 31% compared to the second quarter of 2014 and the
first quarter of 2015, respectively.
Net revenues were $17.9 million, down 19% and 9% compared to the second
quarter of 2014 and the first quarter of 2015, respectively. The
decrease compared to the year-ago period was due to lower management
fees from our value equity product offerings, partially offset by
increased management fees from our MLP product offerings. Also,
investment loss was $0.7 million for the current quarter, compared with
income of $1.1 million and $0.6 million in the second quarter of 2014
and the first quarter of 2015, respectively.
-
Adjusted operating expenses for the current quarter were $13.0
million, essentially flat compared to the year-ago period and up 3%
compared to the first quarter of 2015.
-
Adjusted segment pre-tax operating margin was 27.3%, compared to 40.7%
in the second quarter of 2014 and 35.8% in the first quarter of 2015.
Adjusted segment pre-tax operating margin declined relative to both
periods due to lower net revenues.
-
Assets under management (AUM) were $11.4 billion at the end of the
second quarter of 2015, compared to $12.6 billion in the year-ago
period and $11.4 billion at the end of the first quarter of 2015.
Other Matters
In the second quarter of 2015, we repurchased
$59.4 million, or approximately 1,200,000 shares of our common stock, at
an average price of $49.53 per share. We have $7.9 million remaining on
our share repurchase authorization, which expires on September 30, 2016.
Additional Shareholder Information
|
|
|
For the Quarter Ended
|
|
|
|
June 30, 2015
|
|
Mar. 31, 2015
|
|
June 30, 2014
|
|
Full time employees
|
|
1,100
|
|
1,030
|
|
999
|
|
Equity financings
|
|
|
|
|
|
|
|
# of transactions
|
|
27
|
|
35
|
|
33
|
|
Capital raised
|
|
$6.1 billion
|
|
$6.5 billion
|
|
$9.2 billion
|
|
Negotiated tax-exempt issuances
|
|
|
|
|
|
|
|
# of transactions
|
|
155
|
|
99
|
|
112
|
|
Par value
|
|
$3.9 billion
|
|
$2.9 billion
|
|
$2.4 billion
|
|
Mergers & acquisitions
|
|
|
|
|
|
|
|
# of transactions
|
|
14
|
|
15
|
|
16
|
|
Aggregate deal value
|
|
$3.5 billion
|
|
$1.6 billion
|
|
$3.7 billion
|
|
Asset Management
|
|
|
|
|
|
|
|
AUM
|
|
$11.4 billion
|
|
$11.4 billion
|
|
$12.6 billion
|
|
Common shareholders’ equity
|
|
$789.6 million
|
|
$831.0 million
|
|
$787.8 million
|
|
Number of common shares outstanding (in thousands)
|
|
13,904
|
|
15,000
|
|
14,995
|
|
Rolling 12 month return on average common shareholders’ equity *
|
|
7.5%
|
|
7.8%
|
|
9.2%
|
|
Rolling 12 month return on average tangible common shareholders’
equity †
|
|
10.8%
|
|
11.2%
|
|
13.9%
|
|
Book value per share
|
|
$56.79
|
|
$55.40
|
|
$52.54
|
|
Tangible book value per share ‡
|
|
$39.60
|
|
$39.35
|
|
$36.06
|
|
|
|
|
|
|
|
|
|
*
|
|
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)
|
|
June 30, 2015
|
|
Mar. 31, 2015
|
|
June 30, 2014
|
|
Average common shareholders’ equity
|
|
$
|
811,208
|
|
|
$
|
803,670
|
|
|
$
|
740,280
|
|
Deduct: average goodwill and identifiable intangible assets
|
|
242,824
|
|
|
244,646
|
|
|
249,096
|
|
|
|
|
|
|
|
|
|
Average tangible common shareholders’ equity
|
|
$
|
568,384
|
|
|
$
|
559,024
|
|
|
$
|
491,184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
‡
|
|
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)
|
|
June 30, 2015
|
|
Mar. 31, 2015
|
|
June 30, 2014
|
|
Common shareholders’ equity
|
|
$
|
789,635
|
|
|
$
|
830,951
|
|
|
$
|
787,848
|
|
Deduct: goodwill and identifiable intangible assets
|
|
238,990
|
|
|
240,763
|
|
|
247,172
|
|
|
|
|
|
|
|
|
|
Tangible common shareholders’ equity
|
|
$
|
550,645
|
|
|
$
|
590,188
|
|
|
$
|
540,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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., July 23 at 9 a.m. ET (8 a.m. CT).
The earnings release will be available on or after July 23 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 #77675515.
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 July 23 at the same Web address or by calling
(855)859-2056 and referencing reservation #77675515.
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), 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 acquisitions of River Branch
Holdings, LLC and BMO Capital Markets GKST, Inc., 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 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 River Branch Holdings, LLC and BMO 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 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)
|
|
Six Months Ended
|
|
|
|
|
|
June 30,
|
|
Mar. 31,
|
|
June 30,
|
|
2Q '15
|
|
2Q '15
|
|
June 30,
|
|
June 30,
|
|
Percent
|
|
(Amounts in thousands, except per share data)
|
|
2015
|
|
2015
|
|
2014
|
|
vs. 1Q '15
|
|
vs. 2Q '14
|
|
2015
|
|
2014
|
|
Inc/(Dec)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment banking
|
|
$
|
106,069
|
|
|
$
|
87,077
|
|
|
$
|
103,813
|
|
|
21.8
|
%
|
|
2.2
|
%
|
|
$
|
193,146
|
|
|
$
|
192,287
|
|
|
0.4
|
%
|
|
Institutional brokerage
|
|
36,661
|
|
|
36,036
|
|
|
34,528
|
|
|
1.7
|
|
|
6.2
|
|
|
72,697
|
|
|
78,562
|
|
|
(7.5
|
)
|
|
Asset management
|
|
19,257
|
|
|
20,522
|
|
|
22,266
|
|
|
(6.2
|
)
|
|
(13.5
|
)
|
|
39,779
|
|
|
43,225
|
|
|
(8.0
|
)
|
|
Interest
|
|
11,422
|
|
|
12,205
|
|
|
12,448
|
|
|
(6.4
|
)
|
|
(8.2
|
)
|
|
23,627
|
|
|
26,107
|
|
|
(9.5
|
)
|
|
Investment income/(loss)
|
|
(3,299
|
)
|
|
12,591
|
|
|
2,921
|
|
|
N/M
|
|
|
N/M
|
|
|
9,292
|
|
|
9,689
|
|
|
(4.1
|
)
|
|
Total revenues
|
|
170,110
|
|
|
168,431
|
|
|
175,976
|
|
|
1.0
|
|
|
(3.3
|
)
|
|
338,541
|
|
|
349,870
|
|
|
(3.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
6,044
|
|
|
6,560
|
|
|
5,945
|
|
|
(7.9
|
)
|
|
1.7
|
|
|
12,604
|
|
|
11,706
|
|
|
7.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
164,066
|
|
|
161,871
|
|
|
170,031
|
|
|
1.4
|
|
|
(3.5
|
)
|
|
325,937
|
|
|
338,164
|
|
|
(3.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
103,554
|
|
|
95,857
|
|
|
103,076
|
|
|
8.0
|
|
|
0.5
|
|
|
199,411
|
|
|
203,565
|
|
|
(2.0
|
)
|
|
Outside services
|
|
8,885
|
|
|
8,184
|
|
|
9,914
|
|
|
8.6
|
|
|
(10.4
|
)
|
|
17,069
|
|
|
18,682
|
|
|
(8.6
|
)
|
|
Occupancy and equipment
|
|
6,983
|
|
|
6,783
|
|
|
7,061
|
|
|
2.9
|
|
|
(1.1
|
)
|
|
13,766
|
|
|
13,839
|
|
|
(0.5
|
)
|
|
Communications
|
|
5,088
|
|
|
6,328
|
|
|
5,432
|
|
|
(19.6
|
)
|
|
(6.3
|
)
|
|
11,416
|
|
|
11,387
|
|
|
0.3
|
|
|
Marketing and business development
|
|
7,239
|
|
|
6,982
|
|
|
6,709
|
|
|
3.7
|
|
|
7.9
|
|
|
14,221
|
|
|
12,960
|
|
|
9.7
|
|
|
Trade execution and clearance
|
|
1,977
|
|
|
1,997
|
|
|
1,788
|
|
|
(1.0
|
)
|
|
10.6
|
|
|
3,974
|
|
|
3,622
|
|
|
9.7
|
|
|
Intangible asset amortization expense
|
|
1,773
|
|
|
1,773
|
|
|
2,318
|
|
|
—
|
|
|
(23.5
|
)
|
|
3,546
|
|
|
4,636
|
|
|
(23.5
|
)
|
|
Other operating expenses
|
|
2,708
|
|
|
2,675
|
|
|
3,316
|
|
|
1.2
|
|
|
(18.3
|
)
|
|
5,383
|
|
|
6,343
|
|
|
(15.1
|
)
|
|
Total non-interest expenses
|
|
138,207
|
|
|
130,579
|
|
|
139,614
|
|
|
5.8
|
|
|
(1.0
|
)
|
|
268,786
|
|
|
275,034
|
|
|
(2.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense
|
|
25,859
|
|
|
31,292
|
|
|
30,417
|
|
|
(17.4
|
)
|
|
(15.0
|
)
|
|
57,151
|
|
|
63,130
|
|
|
(9.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
9,542
|
|
|
9,490
|
|
|
10,049
|
|
|
0.5
|
|
|
(5.0
|
)
|
|
19,032
|
|
|
19,876
|
|
|
(4.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
16,317
|
|
|
21,802
|
|
|
20,368
|
|
|
(25.2
|
)
|
|
(19.9
|
)
|
|
38,119
|
|
|
43,254
|
|
|
(11.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) applicable to noncontrolling interests
|
|
(682
|
)
|
|
4,830
|
|
|
2,155
|
|
|
N/M
|
|
|
N/M
|
|
|
4,148
|
|
|
7,293
|
|
|
(43.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to Piper Jaffray Companies (a)
|
|
$
|
16,999
|
|
|
$
|
16,972
|
|
|
$
|
18,213
|
|
|
0.2
|
%
|
|
(6.7
|
)%
|
|
$
|
33,971
|
|
|
$
|
35,961
|
|
|
(5.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to Piper Jaffray Companies’ common
shareholders (a)
|
|
$
|
15,699
|
|
|
$
|
15,810
|
|
|
$
|
16,717
|
|
|
(0.7
|
)%
|
|
(6.1
|
)%
|
|
$
|
31,513
|
|
|
$
|
32,806
|
|
|
(3.9
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.08
|
|
|
$
|
1.03
|
|
|
$
|
1.12
|
|
|
4.9
|
%
|
|
(3.6
|
)%
|
|
$
|
2.12
|
|
|
$
|
2.22
|
|
|
(4.5
|
)%
|
|
Diluted
|
|
$
|
1.08
|
|
|
$
|
1.03
|
|
|
$
|
1.11
|
|
|
4.9
|
%
|
|
(2.7
|
)%
|
|
$
|
2.11
|
|
|
$
|
2.21
|
|
|
(4.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
14,487
|
|
|
15,294
|
|
|
14,958
|
|
|
(5.3
|
)%
|
|
(3.1
|
)%
|
|
14,888
|
|
|
14,786
|
|
|
0.7
|
%
|
|
Diluted
|
|
14,513
|
|
|
15,332
|
|
|
15,013
|
|
|
(5.3
|
)%
|
|
(3.3
|
)%
|
|
14,920
|
|
|
14,836
|
|
|
0.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 (U.S. GAAP – Unaudited)
|
|
|
Three Months Ended
|
|
Percent Inc/(Dec)
|
|
Six Months Ended
|
|
|
|
|
|
|
June 30,
|
|
Mar. 31,
|
|
June 30,
|
|
2Q '15
|
|
2Q '15
|
|
June 30,
|
|
June 30,
|
|
Percent
|
|
(Dollars in thousands)
|
|
2015
|
|
2015
|
|
2014
|
|
vs. 1Q '15
|
|
vs. 2Q '14
|
|
2015
|
|
2014
|
|
Inc/(Dec)
|
|
Capital Markets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment banking
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equities
|
|
$
|
35,755
|
|
|
$
|
36,489
|
|
|
$
|
44,058
|
|
|
(2.0
|
)%
|
|
(18.8
|
)%
|
|
$
|
72,244
|
|
|
$
|
79,359
|
|
|
(9.0
|
)%
|
|
Debt
|
|
30,098
|
|
|
21,738
|
|
|
20,174
|
|
|
38.5
|
|
|
49.2
|
|
|
51,836
|
|
|
33,713
|
|
|
53.8
|
|
|
Advisory services
|
|
40,139
|
|
|
29,266
|
|
|
39,695
|
|
|
37.2
|
|
|
1.1
|
|
|
69,405
|
|
|
79,423
|
|
|
(12.6
|
)
|
|
Total investment banking
|
|
105,992
|
|
|
87,493
|
|
|
103,927
|
|
|
21.1
|
|
|
2.0
|
|
|
193,485
|
|
|
192,495
|
|
|
0.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Institutional sales and trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equities
|
|
20,407
|
|
|
18,905
|
|
|
18,366
|
|
|
7.9
|
|
|
11.1
|
|
|
39,312
|
|
|
42,626
|
|
|
(7.8
|
)
|
|
Fixed income
|
|
20,482
|
|
|
21,217
|
|
|
21,085
|
|
|
(3.5
|
)
|
|
(2.9
|
)
|
|
41,699
|
|
|
46,323
|
|
|
(10.0
|
)
|
|
Total institutional sales and trading
|
|
40,889
|
|
|
40,122
|
|
|
39,451
|
|
|
1.9
|
|
|
3.6
|
|
|
81,011
|
|
|
88,949
|
|
|
(8.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management and performance fees
|
|
621
|
|
|
1,407
|
|
|
1,388
|
|
|
(55.9
|
)
|
|
(55.3
|
)
|
|
2,028
|
|
|
3,125
|
|
|
(35.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income
|
|
215
|
|
|
14,705
|
|
|
4,998
|
|
|
(98.5
|
)
|
|
(95.7
|
)
|
|
14,920
|
|
|
15,376
|
|
|
(3.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term financing expenses
|
|
(1,553
|
)
|
|
(1,560
|
)
|
|
(1,705
|
)
|
|
(0.4
|
)
|
|
(8.9
|
)
|
|
(3,113
|
)
|
|
(3,445
|
)
|
|
(9.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
146,164
|
|
|
142,167
|
|
|
148,059
|
|
|
2.8
|
|
|
(1.3
|
)
|
|
288,331
|
|
|
296,500
|
|
|
(2.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
123,687
|
|
|
116,203
|
|
|
124,691
|
|
|
6.4
|
|
|
(0.8
|
)
|
|
239,890
|
|
|
245,621
|
|
|
(2.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment pre-tax operating income
|
|
$
|
22,477
|
|
|
$
|
25,964
|
|
|
$
|
23,368
|
|
|
(13.4
|
)%
|
|
(3.8
|
)%
|
|
$
|
48,441
|
|
|
$
|
50,879
|
|
|
(4.8
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment pre-tax operating margin
|
|
15.4
|
%
|
|
18.3
|
%
|
|
15.8
|
%
|
|
|
|
|
|
|
|
16.8
|
%
|
|
17.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management and performance fees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees
|
|
$
|
18,436
|
|
|
$
|
19,107
|
|
|
$
|
20,600
|
|
|
(3.5
|
)%
|
|
(10.5
|
)%
|
|
$
|
37,543
|
|
|
$
|
39,736
|
|
|
(5.5
|
)%
|
|
Performance fees
|
|
200
|
|
|
8
|
|
|
278
|
|
|
N/M
|
|
|
(28.1
|
)
|
|
208
|
|
|
364
|
|
|
(42.9
|
)
|
|
Total management and performance fees
|
|
18,636
|
|
|
19,115
|
|
|
20,878
|
|
|
(2.5
|
)
|
|
(10.7
|
)
|
|
37,751
|
|
|
40,100
|
|
|
(5.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income/(loss)
|
|
(734
|
)
|
|
589
|
|
|
1,094
|
|
|
N/M
|
|
|
N/M
|
|
|
(145
|
)
|
|
1,564
|
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
17,902
|
|
|
19,704
|
|
|
21,972
|
|
|
(9.1
|
)
|
|
(18.5
|
)
|
|
37,606
|
|
|
41,664
|
|
|
(9.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
14,520
|
|
|
14,376
|
|
|
14,923
|
|
|
1.0
|
|
|
(2.7
|
)
|
|
28,896
|
|
|
29,413
|
|
|
(1.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment pre-tax operating income
|
|
$
|
3,382
|
|
|
$
|
5,328
|
|
|
$
|
7,049
|
|
|
(36.5
|
)%
|
|
(52.0
|
)%
|
|
$
|
8,710
|
|
|
$
|
12,251
|
|
|
(28.9
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment pre-tax operating margin
|
|
18.9
|
%
|
|
27.0
|
%
|
|
32.1
|
%
|
|
|
|
|
|
|
|
23.2
|
%
|
|
29.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
164,066
|
|
|
$
|
161,871
|
|
|
$
|
170,031
|
|
|
1.4
|
%
|
|
(3.5
|
)%
|
|
$
|
325,937
|
|
|
$
|
338,164
|
|
|
(3.6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
138,207
|
|
|
130,579
|
|
|
139,614
|
|
|
5.8
|
|
|
(1.0
|
)
|
|
268,786
|
|
|
275,034
|
|
|
(2.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax operating income
|
|
$
|
25,859
|
|
|
$
|
31,292
|
|
|
$
|
30,417
|
|
|
(17.4
|
)%
|
|
(15.0
|
)%
|
|
$
|
57,151
|
|
|
$
|
63,130
|
|
|
(9.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax operating margin
|
|
15.8
|
%
|
|
19.3
|
%
|
|
17.9
|
%
|
|
|
|
|
|
|
|
17.5
|
%
|
|
18.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M — Not meaningful
Piper Jaffray Companies
Preliminary Selected Summary Financial Information (Non-GAAP –
Unaudited) (1)
|
|
|
Three Months Ended
|
|
Percent Inc/(Dec)
|
|
Six Months Ended
|
|
|
|
|
|
June 30,
|
|
Mar. 31,
|
|
June 30,
|
|
2Q '15
|
|
2Q '15
|
|
June 30,
|
|
June 30,
|
|
Percent
|
|
(Amounts in thousands, except per share data)
|
|
2015
|
|
2015
|
|
2014
|
|
vs. 1Q '15
|
|
vs. 2Q '14
|
|
2015
|
|
2014
|
|
Inc/(Dec)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment banking
|
|
$
|
106,069
|
|
|
$
|
87,077
|
|
|
$
|
103,813
|
|
|
21.8
|
%
|
|
2.2
|
%
|
|
$
|
193,146
|
|
|
$
|
192,287
|
|
|
0.4
|
%
|
|
Institutional brokerage
|
|
36,661
|
|
|
36,036
|
|
|
34,528
|
|
|
1.7
|
|
|
6.2
|
|
|
72,697
|
|
|
78,562
|
|
|
(7.5
|
)
|
|
Asset management
|
|
19,257
|
|
|
20,522
|
|
|
22,266
|
|
|
(6.2
|
)
|
|
(13.5
|
)
|
|
39,779
|
|
|
43,225
|
|
|
(8.0
|
)
|
|
Interest
|
|
8,114
|
|
|
9,245
|
|
|
9,451
|
|
|
(12.2
|
)
|
|
(14.1
|
)
|
|
17,359
|
|
|
19,807
|
|
|
(12.4
|
)
|
|
Investment income/(loss)
|
|
(1,151
|
)
|
|
8,452
|
|
|
1,666
|
|
|
N/M
|
|
|
N/M
|
|
|
7,301
|
|
|
4,247
|
|
|
71.9
|
|
|
Total revenues
|
|
168,950
|
|
|
161,332
|
|
|
171,724
|
|
|
4.7
|
|
|
(1.6
|
)
|
|
330,282
|
|
|
338,128
|
|
|
(2.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
5,071
|
|
|
5,593
|
|
|
5,026
|
|
|
(9.3
|
)
|
|
0.9
|
|
|
10,664
|
|
|
9,933
|
|
|
7.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net revenues (2)
|
|
$
|
163,879
|
|
|
$
|
155,739
|
|
|
$
|
166,698
|
|
|
5.2
|
%
|
|
(1.7
|
)%
|
|
$
|
319,618
|
|
|
$
|
328,195
|
|
|
(2.6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted compensation and benefits (3)
|
|
$
|
102,650
|
|
|
$
|
94,606
|
|
|
$
|
101,660
|
|
|
8.5
|
%
|
|
1.0
|
%
|
|
$
|
197,256
|
|
|
$
|
200,860
|
|
|
(1.8
|
)%
|
|
Ratio of adjusted compensation and benefits to adjusted net
revenues
|
|
62.6
|
%
|
|
60.7
|
%
|
|
61.0
|
%
|
|
|
|
|
|
|
|
61.7
|
%
|
|
61.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted non-compensation expenses (4)
|
|
$
|
32,011
|
|
|
$
|
31,647
|
|
|
$
|
33,042
|
|
|
1.2
|
%
|
|
(3.1
|
)%
|
|
$
|
63,658
|
|
|
$
|
64,157
|
|
|
(0.8
|
)%
|
|
Ratio of adjusted non-compensation expenses to adjusted net
revenues
|
|
19.5
|
%
|
|
20.3
|
%
|
|
19.8
|
%
|
|
|
|
|
|
|
|
19.9
|
%
|
|
19.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income before adjusted income tax expense (5)
|
|
$
|
29,218
|
|
|
$
|
29,486
|
|
|
$
|
31,996
|
|
|
(0.9
|
)%
|
|
(8.7
|
)%
|
|
$
|
58,704
|
|
|
$
|
63,178
|
|
|
(7.1
|
)%
|
|
Adjusted operating margin (6)
|
|
17.8
|
%
|
|
18.9
|
%
|
|
19.2
|
%
|
|
|
|
|
|
|
|
18.4
|
%
|
|
19.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax expense (7)
|
|
10,584
|
|
|
10,667
|
|
|
11,502
|
|
|
(0.8
|
)
|
|
(8.0
|
)
|
|
21,251
|
|
|
22,649
|
|
|
(6.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (8)
|
|
$
|
18,634
|
|
|
$
|
18,819
|
|
|
$
|
20,494
|
|
|
(1.0
|
)%
|
|
(9.1
|
)%
|
|
$
|
37,453
|
|
|
$
|
40,529
|
|
|
(7.6
|
)%
|
|
Effective tax rate (9)
|
|
36.2
|
%
|
|
36.2
|
%
|
|
35.9
|
%
|
|
|
|
|
|
|
|
36.2
|
%
|
|
35.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income applicable to Piper Jaffray Companies’ common
shareholders (10)
|
|
$
|
17,209
|
|
|
$
|
17,531
|
|
|
$
|
18,811
|
|
|
(1.8
|
)%
|
|
(8.5
|
)%
|
|
$
|
34,743
|
|
|
$
|
36,973
|
|
|
(6.0
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per diluted common share
|
|
$
|
1.19
|
|
|
$
|
1.14
|
|
|
$
|
1.25
|
|
|
4.4
|
%
|
|
(4.8
|
)%
|
|
$
|
2.33
|
|
|
$
|
2.49
|
|
|
(6.4
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
14,513
|
|
|
15,332
|
|
|
15,013
|
|
|
(5.3
|
)%
|
|
(3.3
|
)%
|
|
14,920
|
|
|
14,836
|
|
|
0.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
Preliminary Adjusted Segment Data (Non-GAAP – Unaudited)
|
|
|
Three Months Ended
|
|
Percent Inc/(Dec)
|
|
Six Months Ended
|
|
|
|
|
|
|
June 30,
|
|
Mar. 31,
|
|
June 30,
|
|
2Q '15
|
|
2Q '15
|
|
June 30,
|
|
June 30,
|
|
Percent
|
|
(Dollars in thousands)
|
|
2015
|
|
2015
|
|
2014
|
|
vs. 1Q '15
|
|
vs. 2Q '14
|
|
2015
|
|
2014
|
|
Inc/(Dec)
|
|
Capital Markets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment banking
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equities
|
|
$
|
35,755
|
|
|
$
|
36,489
|
|
|
$
|
44,058
|
|
|
(2.0
|
)%
|
|
(18.8
|
)%
|
|
$
|
72,244
|
|
|
$
|
79,359
|
|
|
(9.0
|
)%
|
|
Debt
|
|
30,098
|
|
|
21,738
|
|
|
20,174
|
|
|
38.5
|
|
|
49.2
|
|
|
51,836
|
|
|
33,713
|
|
|
53.8
|
|
|
Advisory services
|
|
40,139
|
|
|
29,266
|
|
|
39,695
|
|
|
37.2
|
|
|
1.1
|
|
|
69,405
|
|
|
79,423
|
|
|
(12.6
|
)
|
|
Total investment banking
|
|
105,992
|
|
|
87,493
|
|
|
103,927
|
|
|
21.1
|
|
|
2.0
|
|
|
193,485
|
|
|
192,495
|
|
|
0.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Institutional sales and trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equities
|
|
20,407
|
|
|
18,905
|
|
|
18,366
|
|
|
7.9
|
|
|
11.1
|
|
|
39,312
|
|
|
42,626
|
|
|
(7.8
|
)
|
|
Fixed income
|
|
20,482
|
|
|
21,217
|
|
|
21,085
|
|
|
(3.5
|
)
|
|
(2.9
|
)
|
|
41,699
|
|
|
46,323
|
|
|
(10.0
|
)
|
|
Total institutional sales and trading
|
|
40,889
|
|
|
40,122
|
|
|
39,451
|
|
|
1.9
|
|
|
3.6
|
|
|
81,011
|
|
|
88,949
|
|
|
(8.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management and performance fees
|
|
621
|
|
|
1,407
|
|
|
1,388
|
|
|
(55.9
|
)
|
|
(55.3
|
)
|
|
2,028
|
|
|
3,125
|
|
|
(35.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income
|
|
28
|
|
|
8,573
|
|
|
1,665
|
|
|
(99.7
|
)
|
|
(98.3
|
)
|
|
8,601
|
|
|
5,407
|
|
|
59.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term financing expenses
|
|
(1,553
|
)
|
|
(1,560
|
)
|
|
(1,705
|
)
|
|
(0.4
|
)
|
|
(8.9
|
)
|
|
(3,113
|
)
|
|
(3,445
|
)
|
|
(9.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net revenues (2)
|
|
145,977
|
|
|
136,035
|
|
|
144,726
|
|
|
7.3
|
|
|
0.9
|
|
|
282,012
|
|
|
286,531
|
|
|
(1.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating expenses (12)
|
|
121,651
|
|
|
113,601
|
|
|
121,675
|
|
|
7.1
|
|
|
—
|
|
|
235,252
|
|
|
239,396
|
|
|
(1.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment pre-tax operating income (5)
|
|
$
|
24,326
|
|
|
$
|
22,434
|
|
|
$
|
23,051
|
|
|
8.4
|
%
|
|
5.5
|
%
|
|
$
|
46,760
|
|
|
$
|
47,135
|
|
|
(0.8
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment pre-tax operating margin (6)
|
|
16.7
|
%
|
|
16.5
|
%
|
|
15.9
|
%
|
|
|
|
|
|
|
|
16.6
|
%
|
|
16.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management and performance fees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees
|
|
$
|
18,436
|
|
|
$
|
19,107
|
|
|
$
|
20,600
|
|
|
(3.5
|
)%
|
|
(10.5
|
)%
|
|
$
|
37,543
|
|
|
$
|
39,736
|
|
|
(5.5
|
)%
|
|
Performance fees
|
|
200
|
|
|
8
|
|
|
278
|
|
|
N/M
|
|
|
(28.1
|
)
|
|
208
|
|
|
364
|
|
|
(42.9
|
)
|
|
Total management and performance fees
|
|
18,636
|
|
|
19,115
|
|
|
20,878
|
|
|
(2.5
|
)
|
|
(10.7
|
)
|
|
37,751
|
|
|
40,100
|
|
|
(5.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income/(loss)
|
|
(734
|
)
|
|
589
|
|
|
1,094
|
|
|
N/M
|
|
|
N/M
|
|
|
(145
|
)
|
|
1,564
|
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
17,902
|
|
|
19,704
|
|
|
21,972
|
|
|
(9.1
|
)
|
|
(18.5
|
)
|
|
37,606
|
|
|
41,664
|
|
|
(9.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating expenses (13)
|
|
13,010
|
|
|
12,652
|
|
|
13,027
|
|
|
2.8
|
|
|
(0.1
|
)
|
|
25,662
|
|
|
25,621
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment pre-tax operating income (13)
|
|
$
|
4,892
|
|
|
$
|
7,052
|
|
|
$
|
8,945
|
|
|
(30.6
|
)%
|
|
(45.3
|
)%
|
|
$
|
11,944
|
|
|
$
|
16,043
|
|
|
(25.6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment pre-tax operating margin (6)
|
|
27.3
|
%
|
|
35.8
|
%
|
|
40.7
|
%
|
|
|
|
|
|
|
|
31.8
|
%
|
|
38.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net revenues (2)
|
|
$
|
163,879
|
|
|
$
|
155,739
|
|
|
$
|
166,698
|
|
|
5.2
|
%
|
|
(1.7
|
)%
|
|
$
|
319,618
|
|
|
$
|
328,195
|
|
|
(2.6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating expenses (12)
|
|
134,661
|
|
|
126,253
|
|
|
134,702
|
|
|
6.7
|
|
|
—
|
|
|
260,914
|
|
|
265,017
|
|
|
(1.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax operating income (5)
|
|
$
|
29,218
|
|
|
$
|
29,486
|
|
|
$
|
31,996
|
|
|
(0.9
|
)%
|
|
(8.7
|
)%
|
|
$
|
58,704
|
|
|
$
|
63,178
|
|
|
(7.1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax operating margin (6)
|
|
17.8
|
%
|
|
18.9
|
%
|
|
19.2
|
%
|
|
|
|
|
|
|
|
18.4
|
%
|
|
19.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
Mar. 31,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
(Amounts in thousands, except per share data)
|
|
2015
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues – U.S. GAAP basis
|
|
$
|
164,066
|
|
|
$
|
161,871
|
|
|
$
|
170,031
|
|
|
$
|
325,937
|
|
|
$
|
338,164
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Revenue related to noncontrolling interests (11)
|
|
(187
|
)
|
|
(6,132
|
)
|
|
(3,333
|
)
|
|
(6,319
|
)
|
|
(9,969
|
)
|
|
Adjusted net revenues
|
|
$
|
163,879
|
|
|
$
|
155,739
|
|
|
$
|
166,698
|
|
|
$
|
319,618
|
|
|
$
|
328,195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits:
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits – U.S. GAAP basis
|
|
$
|
103,554
|
|
|
$
|
95,857
|
|
|
$
|
103,076
|
|
|
$
|
199,411
|
|
|
$
|
203,565
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Compensation from acquisition-related agreements
|
|
(904
|
)
|
|
(1,251
|
)
|
|
(1,416
|
)
|
|
(2,155
|
)
|
|
(2,705
|
)
|
|
Adjusted compensation and benefits
|
|
$
|
102,650
|
|
|
$
|
94,606
|
|
|
$
|
101,660
|
|
|
$
|
197,256
|
|
|
$
|
200,860
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-compensation expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Non-compensation expenses – U.S. GAAP basis
|
|
$
|
34,653
|
|
|
$
|
34,722
|
|
|
$
|
36,538
|
|
|
$
|
69,375
|
|
|
$
|
71,469
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Non-compensation expenses related to noncontrolling interests (11)
|
|
(869
|
)
|
|
(1,302
|
)
|
|
(1,178
|
)
|
|
(2,171
|
)
|
|
(2,676
|
)
|
|
Amortization of intangible assets related to acquisitions
|
|
(1,773
|
)
|
|
(1,773
|
)
|
|
(2,318
|
)
|
|
(3,546
|
)
|
|
(4,636
|
)
|
|
Adjusted non-compensation expenses
|
|
$
|
32,011
|
|
|
$
|
31,647
|
|
|
$
|
33,042
|
|
|
$
|
63,658
|
|
|
$
|
64,157
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense:
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense – U.S. GAAP basis
|
|
$
|
25,859
|
|
|
$
|
31,292
|
|
|
$
|
30,417
|
|
|
$
|
57,151
|
|
|
$
|
63,130
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Revenue related to noncontrolling interests (11)
|
|
(187
|
)
|
|
(6,132
|
)
|
|
(3,333
|
)
|
|
(6,319
|
)
|
|
(9,969
|
)
|
|
Expenses related to noncontrolling interests (11)
|
|
869
|
|
|
1,302
|
|
|
1,178
|
|
|
2,171
|
|
|
2,676
|
|
|
Compensation from acquisition-related agreements
|
|
904
|
|
|
1,251
|
|
|
1,416
|
|
|
2,155
|
|
|
2,705
|
|
|
Amortization of intangible assets related to acquisitions
|
|
1,773
|
|
|
1,773
|
|
|
2,318
|
|
|
3,546
|
|
|
4,636
|
|
|
Adjusted income before adjusted income tax expense
|
|
$
|
29,218
|
|
|
$
|
29,486
|
|
|
$
|
31,996
|
|
|
$
|
58,704
|
|
|
$
|
63,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense:
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense – U.S. GAAP basis
|
|
$
|
9,542
|
|
|
$
|
9,490
|
|
|
$
|
10,049
|
|
|
$
|
19,032
|
|
|
$
|
19,876
|
|
|
Tax effect of adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Compensation from acquisition-related agreements
|
|
352
|
|
|
487
|
|
|
551
|
|
|
839
|
|
|
1,052
|
|
|
Amortization of intangible assets related to acquisitions
|
|
690
|
|
|
690
|
|
|
902
|
|
|
1,380
|
|
|
1,721
|
|
|
Adjusted income tax expense
|
|
$
|
10,584
|
|
|
$
|
10,667
|
|
|
$
|
11,502
|
|
|
$
|
21,251
|
|
|
$
|
22,649
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to Piper Jaffray Companies:
|
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to Piper Jaffray Companies – U.S. GAAP basis
|
|
$
|
16,999
|
|
|
$
|
16,972
|
|
|
$
|
18,213
|
|
|
$
|
33,971
|
|
|
$
|
35,961
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Compensation from acquisition-related agreements
|
|
552
|
|
|
764
|
|
|
865
|
|
|
1,316
|
|
|
1,653
|
|
|
Amortization of intangible assets related to acquisitions
|
|
1,083
|
|
|
1,083
|
|
|
1,416
|
|
|
2,166
|
|
|
2,915
|
|
|
Adjusted net income
|
|
$
|
18,634
|
|
|
$
|
18,819
|
|
|
$
|
20,494
|
|
|
$
|
37,453
|
|
|
$
|
40,529
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to Piper Jaffray Companies' common
shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to Piper Jaffray Companies' common
stockholders – U.S. GAAP basis
|
|
$
|
15,699
|
|
|
$
|
15,810
|
|
|
$
|
16,717
|
|
|
$
|
31,513
|
|
|
$
|
32,806
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Compensation from acquisition-related agreements
|
|
510
|
|
|
712
|
|
|
794
|
|
|
1,221
|
|
|
1,508
|
|
|
Amortization of intangible assets related to acquisitions
|
|
1,000
|
|
|
1,009
|
|
|
1,300
|
|
|
2,009
|
|
|
2,659
|
|
|
Adjusted net income applicable to Piper Jaffray Companies' common
stockholders
|
|
$
|
17,209
|
|
|
$
|
17,531
|
|
|
$
|
18,811
|
|
|
$
|
34,743
|
|
|
$
|
36,973
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted common share:
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted common share – U.S. GAAP basis
|
|
$
|
1.08
|
|
|
$
|
1.03
|
|
|
$
|
1.11
|
|
|
$
|
2.11
|
|
|
$
|
2.21
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Compensation from acquisition-related agreements
|
|
0.04
|
|
|
0.05
|
|
|
0.05
|
|
|
0.08
|
|
|
0.10
|
|
|
Amortization of intangible assets related to acquisitions
|
|
0.07
|
|
|
0.07
|
|
|
0.09
|
|
|
0.13
|
|
|
0.18
|
|
|
Adjusted earnings per diluted common share
|
|
$
|
1.19
|
|
|
$
|
1.14
|
|
|
$
|
1.25
|
|
|
$
|
2.33
|
|
|
$
|
2.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) and (b)
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 and (c) 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 and (b)
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) amortization of intangible assets related to
acquisitions and (c) 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)
|
|
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 and (c) 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.
|
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