Piper Jaffray Companies (NYSE:PJC) today announced its financial results
for the quarter ended March 31, 2016.
Financial Highlights
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On February 26, 2016, we completed the acquisition of Simmons &
Company International, which continues to build on our strategy to
grow our advisory business.
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Adjusted net income(1) was $10.6 million, or $0.70 per
diluted common share(1), in the first quarter of 2016,
compared to $18.8 million, or $1.14 per diluted common share, in the
first quarter of 2015, and $21.1 million, or $1.40 per diluted common
share, in the fourth quarter of 2015.
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Adjusted net revenues(1) were $152.2 million in the first
quarter of 2016, compared to $155.7 million and $195.1 million in the
first and fourth quarters of 2015, respectively.
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Adjusted pre-tax operating margin(1) was 10.6% in the first
quarter of 2016, compared to 18.9% and 17.2% in the first and fourth
quarters of 2015, respectively.
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Assets under management were $7.5 billion at March 31, 2016, compared
to $11.4 billion in the year-ago period and $8.9 billion at the end of
the fourth quarter of 2015.
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Adjusted rolling 12 month return on average common shareholders' equity(2)
decreased to 7.2% at March 31, 2016, compared to 8.8% at March 31,
2015. On a GAAP basis our return on average common shareholders'
equity decreased to 4.7% at March 31, 2016, compared to 7.8% at
March 31, 2015.
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Book value per share increased 10% from March 31, 2015 to $60.69 a
share at March 31, 2016.
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Three Months Ended
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Percent Inc/(Dec)
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Mar. 31,
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Dec. 31,
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Mar. 31,
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1Q '16
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1Q '16
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(Amounts in thousands, except per share data)
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2016
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2015
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2015
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vs. 4Q '15
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vs. 1Q '15
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As Adjusted(1)
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Net revenues
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$
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152,207
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$
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195,096
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$
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155,739
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(22.0
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)%
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(2.3
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)%
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Net income
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$
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10,609
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$
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21,147
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$
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18,819
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(49.8
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)%
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(43.6
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)%
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Earnings per diluted common share
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$
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0.70
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$
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1.40
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$
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1.14
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(50.0
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)%
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(38.6
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)%
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Pre-tax operating margin
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10.6
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%
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17.2
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%
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18.9
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%
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U.S. GAAP
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Net revenues
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$
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153,556
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$
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197,364
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$
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161,871
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(22.2
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)%
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(5.1
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)%
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Net income
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$
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2,437
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$
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13,273
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$
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16,972
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(81.6
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)%
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(85.6
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)%
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Earnings per diluted common share
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$
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0.16
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$
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0.88
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$
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1.03
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(81.8
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)%
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(84.5
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)%
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Pre-tax operating margin
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2.2
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%
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11.4
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%
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19.3
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%
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For the first quarter of 2016, on a U.S. GAAP basis, net revenues were
$153.6 million, and net income was $2.4 million, or $0.16 per diluted
common share.
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(1)
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A non-U.S. GAAP ("non-GAAP") measure. For a detailed
explanation of the adjustments made to the corresponding U.S. GAAP
measures, see "Reconciliation of U.S. GAAP to Selected Summary
Financial Information." We believe that presenting our results and
measures on an adjusted basis in conjunction with U.S. GAAP
measures provides the most meaningful basis for comparison of our
operating results across periods.
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(2)
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A non-GAAP measure. See the "Additional Shareholder
Information" section for an explanation of the calculation of this
non-GAAP measure. We believe that the adjusted rolling 12 month
return on average common shareholders' equity provides a
meaningful measure of our return on the core operating results of
the business.
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"Our Advisory business got off to an exceptional start this year" said
Andrew Duff, chairman and CEO of Piper Jaffray. "The strength in
Advisory was in contrast to the challenging markets confronted by the
industry in the first quarter."
First Quarter Results – Non-GAAP Basis
Throughout the
Adjusted Consolidated Results and Business Segment Results sections of
this press release we present financial measures that are not prepared
in accordance with U.S. generally accepted accounting principles ("U.S.
GAAP"). The non-GAAP financial measures include adjustments to exclude
(1) revenues and expenses related to noncontrolling interests, (2)
amortization of intangible assets related to acquisitions, (3)
compensation for acquisition-related agreements and (4) restructuring
and acquisition integration costs. Management believes that presenting
results and measures on this adjusted basis alongside U.S. GAAP measures
provides the most meaningful basis for comparison of its operating
results across periods. For a detailed explanation of the adjustments
made to the corresponding U.S. GAAP measures, see "Reconciliation of
U.S. GAAP to Selected Summary Financial Information."
Adjusted Consolidated Results
For the first quarter of 2016,
adjusted net revenues were $152.2 million, down 2% compared to $155.7
million in the first quarter of 2015, as higher advisory services
revenues were more than offset by declines in equity financing revenues,
asset management revenues and investment gains. Adjusted net revenues
decreased 22% compared to $195.1 million in the fourth quarter of 2015
due primarily to lower investment banking revenues, as well as lower
fixed income institutional brokerage revenues.
For the first quarter of 2016, adjusted compensation and benefits
expenses were $101.1 million, up 7% compared to the first quarter of
2015. The increase was due to incremental compensation expenses
associated with the significant hiring in 2015 to expand our financial
institutions group and our acquisitions of Simmons & Company
International ("Simmons"), BMO Capital Markets GKST Inc. ("BMO GKST"),
and River Branch Holdings LLC ("River Branch"), which closed on
February 26, 2016, October 9, 2015, and September 30, 2015,
respectively. Adjusted compensation and benefits expenses decreased 19%
compared to the fourth quarter of 2015 due to lower revenues.
For the first quarter of 2016, adjusted compensation and benefits
expenses were 66.4% of adjusted net revenues, compared to 60.7% and
64.0% for the first and fourth quarters of 2015, respectively. The
adjusted compensation ratio increased compared to both periods due to a
change in our mix of business. Also, the compensation ratio was higher
compared to the year-ago period due to compensation expenses associated
with the expansion of our financial institutions group.
Adjusted non-compensation expenses were $35.0 million for the first
quarter of 2016, up 11% compared to the year-ago period due to the
incremental costs associated with the acquisitions of Simmons, BMO GKST
and River Branch. Adjusted non-compensation expenses were down 5%
compared to the sequential quarter due primarily to lower travel
expenses resulting from decreased business activity.
On an adjusted basis, our effective tax rate was 34.0% for the first
quarter of 2016, compared to 36.2% and 36.9% for the first and fourth
quarters of 2015, respectively.
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 ended March 31, 2016,
Capital Markets generated adjusted pre-tax operating income of $14.0
million, compared to $22.4 million and $31.0 million in the first and
fourth quarters of 2015, respectively.
Adjusted net revenues were $140.3 million, up 3% compared to the
year-ago period and down 23% from the fourth quarter of 2015.
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Equity financing revenues of $6.6 million decreased 82% and 67%
compared to the year-ago period and the sequential quarter,
respectively. Revenues decreased compared to both periods due to fewer
completed transactions and lower revenue per transaction.
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Debt financing revenues were $16.0 million, down 24% and 28% compared
to the first quarter and fourth quarters of 2015, respectively, due to
fewer completed transactions.
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Advisory services revenues from mergers and acquisitions and private
placement transactions were $81.6 million, up 168% compared to the
first quarter of 2015 due to more completed transactions and higher
revenue per transaction. Revenues decreased 7% compared to the fourth
quarter of 2015 due to lower revenue per transaction.
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Equity institutional brokerage revenues of $19.7 million increased 4%
and 2% compared to the year-ago period and the fourth quarter of 2015,
respectively.
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Adjusted fixed income institutional brokerage revenues were $17.1
million, down 20% and 49% compared to the first and fourth quarters of
2015, respectively, due to lower trading gains.
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Management and performance fees earned from managing our alternative
asset management funds were $1.0 million, compared to $1.4 million and
$0.7 million in the year-ago period and the sequential quarter,
respectively.
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Adjusted investment income, which includes realized and unrealized
gains and losses on investments in our merchant banking fund and firm
investments, was $0.7 million for the quarter, compared to $8.6
million and $0.8 million in the year-ago period and sequential
quarter, respectively. In the first quarter of 2015, we recorded
higher gains on these investments.
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Long-term financing expenses, which primarily represent interest paid
on the firm's senior notes, were $2.3 million, compared to $1.6
million and $2.7 million in the year-ago period and sequential
quarter, respectively. The increase compared to the first quarter of
2015 was due to a higher amount of outstanding principal on the senior
notes.
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Adjusted operating expenses for the first quarter of 2016 were $126.3
million, up 11% compared to the first quarter of 2015 due to higher
compensation and non-compensation expenses as a result of business
expansion. Adjusted operating expenses were down 16% compared to the
fourth quarter of 2015. The decrease primarily resulted from lower
compensation expenses due to a decline in operating results.
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Adjusted segment pre-tax operating margin was 10.0% compared to 16.5%
in the year-ago period and 17.1% in the fourth quarter of 2015.
Adjusted pre-tax operating margin was lower compared to the first
quarter of 2015 due to higher compensation and non-compensation
expenses, and lower compared to the sequential quarter primarily due
to lower net revenues.
Asset Management
For the quarter ended March 31,
2016, Asset Management generated adjusted pre-tax operating income of
$2.0 million, compared to $7.1 million and $2.5 million in the first and
fourth quarters of 2015, respectively.
Net revenues were $11.9 million, down 40% and 15% compared to the first
and fourth quarters of 2015, respectively.
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Management and performance fees of $12.9 million decreased 33% and 17%
compared to the year-ago period and the sequential quarter of 2015,
respectively. Revenues decreased compared to both periods due to lower
management fees from decreased assets under management (AUM) driven by
market depreciation and net client outflows.
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Investment income/(loss) on firm capital invested in our strategies
was a loss of $1.0 million for the current quarter, compared with
income of $0.6 million in the first quarter of 2015 and a loss of $1.5
million in the fourth quarter of 2015.
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Adjusted operating expenses for the current quarter were $9.9 million,
down 22% and 15% compared to the year-ago period and the fourth
quarter of 2015, respectively, due to lower compensation and
non-compensation expenses.
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Adjusted segment pre-tax operating margin was 17.2%, compared to 35.8%
in the first quarter of 2015 and 17.7% in the fourth quarter of 2015.
Excluding investment income/losses on firm capital invested in our
strategies, adjusted segment pre-tax operating margin related to our
core asset management operations was 23.4% in the first quarter of
2016, compared to 33.8% in the year-ago period and 25.8% in the
sequential quarter. Adjusted segment pre-tax operating margin
excluding investment income/losses declined relative to both periods
primarily due to lower management fees.
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AUM was $7.5 billion at the end of the first quarter of 2016, compared
to $11.4 billion in the year-ago period and $8.9 billion at the end of
the fourth quarter of 2015. The decreases in AUM have been driven by
market depreciation, primarily from our MLP product offerings, and net
client outflows in our value equity product offerings.
Other Matters
On February 26, 2016, we completed our
previously announced acquisition of Simmons, a Texas-based
employee-owned investment bank and broker dealer focused on the energy
industry. The acquisition supports our strategy to expand our investment
banking business into the energy sector and grow our advisory business.
In the first quarter of 2016, we incurred $6.8 million of restructuring
and integration charges. These charges principally resulted from
severance benefits, contract termination fees and transaction costs
related to our acquisition of Simmons.
In the first quarter of 2016, we granted $35.1 million, or 844,000
shares, of restricted stock to our employees as part of their 2015
earned compensation at a weighted average grant date fair value of
$41.58 per share.
We issued approximately 1.2 million shares of restricted stock valued at
$49.3 million as equity consideration for Simmons. Nearly all of these
shares cliff vest after three years, and the employees must fulfill
service requirements in exchange for the rights to the shares.
During the first quarter of 2016, we repurchased $19.5 million, or
521,000 shares of our common stock, at an average price of $37.32 per
share.
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Additional Shareholder Information
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For the Quarter Ended
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Mar. 31,
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Dec. 31,
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Mar. 31,
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2016
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2015
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2015
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Full time employees
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1,283
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1,152
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1,030
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Equity financings
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# of transactions
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7
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12
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35
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Capital raised
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$1.2 billion
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$1.9 billion
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$6.5 billion
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Municipal negotiated issuances
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# of transactions
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103
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180
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142
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Par value
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$2.6 billion
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$2.6 billion
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$3.7 billion
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Advisory transactions
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# of transactions
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36
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25
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16
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Aggregate deal value
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$5.9 billion
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$10.0 billion
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$1.8 billion
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Asset Management
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AUM
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$7.5 billion
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$8.9 billion
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$11.4 billion
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Common shareholders’ equity
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$805.2 million
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$783.7 million
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$831.0 million
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Number of common shares outstanding (in thousands)
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13,268
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13,311
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15,000
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Rolling 12 month return on average common shareholders’ equity *
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4.7%
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6.4%
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7.8%
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Adjusted rolling 12 month return on average common shareholders’
equity †
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7.2%
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8.1%
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8.8%
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Book value per share
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$60.69
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$58.87
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$55.40
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Tangible book value per share ‡
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$35.69
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$40.20
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$39.35
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*
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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.
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†
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Adjusted Rolling 12 month return on average common shareholders'
equity is computed by dividing adjusted net income for the last 12
months by average monthly common shareholders' equity. For a
detailed explanation of the components of adjusted net income, see
"Reconciliation of U.S. GAAP to Selected Summary Financial
Information." Management believes that the adjusted rolling 12 month
return on average common shareholders' equity provides a meaningful
measure of our return on the core operating results of the business.
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‡
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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:
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As of
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As of
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As of
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Mar. 31,
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Dec. 31,
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Mar. 31,
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(Amounts in thousands)
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2016
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2015
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2015
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Common shareholders’ equity
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$
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805,180
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$
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783,659
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$
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830,951
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Deduct: goodwill and identifiable intangible assets
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331,707
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248,506
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240,763
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Tangible common shareholders’ equity
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$
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473,473
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$
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535,153
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$
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590,188
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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., Apr. 28 at 9
a.m. ET (8 a.m. CT). The earnings release will be available on or after
Apr. 28 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 #85616338.
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 Apr. 28 at the same Web address or by calling
(855)859-2056 and referencing reservation #85616338.
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, Aberdeen, 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, capital markets and public finance
transactions (including our performance in specific sectors and the
outlook for future quarters), anticipated financial results generally
(including expectations regarding our noncompensation expenses,
compensation and benefits expense, compensation ratio, revenue levels,
operating margins, earnings per share, effective tax rate, and return on
equity), current deal pipelines (or backlogs), financial results for our
asset management segment (including our performance in specific sectors,
e.g. energy-based MLPs), the liquidity of fixed income markets and
impact on our related inventory, our strategic priorities (including
growth in public finance, asset management, and corporate advisory), the
expected benefits of our expansion into the financial institutions and
energy sectors, including the expected benefits of the integration of
Simmons and Company International, 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:
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market and economic conditions or developments may be unfavorable,
including in specific sectors in which we operate, and these
conditions or developments, such as market fluctuations or volatility,
may adversely affect our business, revenue levels and profitability;
-
net revenues from equity and debt financings and corporate advisory
engagements may vary materially depending on the number, size, and
timing of completed transactions, and completed transactions do not
generally provide for subsequent engagements;
-
the volume of anticipated investment banking transactions as reflected
in our deal pipelines (and the net revenues we earn from such
transactions) may differ from expected results if there is a decline
in macroeconomic conditions or the financial markets, or if the terms
of any transactions are modified;
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asset management revenue may vary based on product trends favoring
passive investment products, and investment performance and market
factors, with market factors impacting certain sectors that are more
heavily weighted to our business, e.g. energy-based MLP funds;
-
interest rate volatility, especially if the changes are rapid or
severe, could negatively impact our fixed income institutional
business and the negative impact could be exaggerated by reduced
liquidity in the fixed income markets;
-
strategic trading activities comprise a meaningful portion of our
fixed income institutional brokerage revenue, and results from these
activities may be volatile and vary significantly, including the
possibility of incurring losses, on a quarterly and annual basis;
-
we may not be able to effectively integrate any business or groups of
employees we acquire or hire, and the expected benefits (e.g. cost and
revenue synergies) of any acquisitions or strategic hires, including
that of Simmons and Company International, 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, 2015 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,
2015, 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.
© 2016 Piper Jaffray Companies, 800 Nicollet Mall, Suite 1000,
Minneapolis, Minnesota 55402-7020
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Piper Jaffray Companies
|
|
Preliminary Results of Operations (U.S. GAAP – Unaudited)
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Three Months Ended
|
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|
Percent Inc/(Dec)
|
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|
|
Mar. 31,
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|
|
Dec. 31,
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|
|
Mar. 31,
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|
|
1Q '16
|
|
|
1Q '16
|
|
(Amounts in thousands, except per share data)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
vs. 4Q '15
|
|
|
vs. 1Q '15
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment banking
|
|
|
$
|
103,938
|
|
|
$
|
129,332
|
|
|
$
|
87,077
|
|
|
(19.6
|
)%
|
|
|
19.4
|
%
|
|
Institutional brokerage
|
|
|
|
32,049
|
|
|
|
48,010
|
|
|
|
36,036
|
|
|
(33.2
|
)
|
|
|
(11.1
|
)
|
|
Asset management
|
|
|
|
13,848
|
|
|
|
16,287
|
|
|
|
20,522
|
|
|
(15.0
|
)
|
|
|
(32.5
|
)
|
|
Interest
|
|
|
|
8,829
|
|
|
|
8,802
|
|
|
|
12,205
|
|
|
0.3
|
|
|
|
(27.7
|
)
|
|
Investment income
|
|
|
|
937
|
|
|
|
613
|
|
|
|
12,591
|
|
|
52.9
|
|
|
|
(92.6
|
)
|
|
Total revenues
|
|
|
|
159,601
|
|
|
|
203,044
|
|
|
|
168,431
|
|
|
(21.4
|
)
|
|
|
(5.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
6,045
|
|
|
|
5,680
|
|
|
|
6,560
|
|
|
6.4
|
|
|
|
(7.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
|
|
153,556
|
|
|
|
197,364
|
|
|
|
161,871
|
|
|
(22.2
|
)
|
|
|
(5.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
104,436
|
|
|
|
126,190
|
|
|
|
95,857
|
|
|
(17.2
|
)
|
|
|
8.9
|
|
|
Outside services
|
|
|
|
8,451
|
|
|
|
9,833
|
|
|
|
8,184
|
|
|
(14.1
|
)
|
|
|
3.3
|
|
|
Occupancy and equipment
|
|
|
|
7,718
|
|
|
|
7,510
|
|
|
|
6,783
|
|
|
2.8
|
|
|
|
13.8
|
|
|
Communications
|
|
|
|
7,330
|
|
|
|
6,112
|
|
|
|
6,328
|
|
|
19.9
|
|
|
|
15.8
|
|
|
Marketing and business development
|
|
|
|
7,004
|
|
|
|
8,804
|
|
|
|
6,982
|
|
|
(20.4
|
)
|
|
|
0.3
|
|
|
Trade execution and clearance
|
|
|
|
1,762
|
|
|
|
1,838
|
|
|
|
1,997
|
|
|
(4.1
|
)
|
|
|
(11.8
|
)
|
|
Restructuring and integration costs
|
|
|
|
6,773
|
|
|
|
9,156
|
|
|
|
—
|
|
|
(26.0
|
)
|
|
|
N/M
|
|
|
Intangible asset amortization expense
|
|
|
|
3,296
|
|
|
|
2,343
|
|
|
|
1,773
|
|
|
40.7
|
|
|
|
85.9
|
|
|
Other operating expenses
|
|
|
|
3,344
|
|
|
|
3,094
|
|
|
|
2,675
|
|
|
8.1
|
|
|
|
25.0
|
|
|
Total non-interest expenses
|
|
|
|
150,114
|
|
|
|
174,880
|
|
|
|
130,579
|
|
|
(14.2
|
)
|
|
|
15.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense
|
|
|
|
3,442
|
|
|
|
22,484
|
|
|
|
31,292
|
|
|
(84.7
|
)
|
|
|
(89.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
256
|
|
|
|
7,336
|
|
|
|
9,490
|
|
|
(96.5
|
)
|
|
|
(97.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
3,186
|
|
|
|
15,148
|
|
|
|
21,802
|
|
|
(79.0
|
)
|
|
|
(85.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to noncontrolling interests
|
|
|
|
749
|
|
|
|
1,875
|
|
|
|
4,830
|
|
|
(60.1
|
)
|
|
|
(84.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to Piper Jaffray Companies (a)
|
|
|
$
|
2,437
|
|
|
$
|
13,273
|
|
|
$
|
16,972
|
|
|
(81.6
|
)%
|
|
|
(85.6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to Piper Jaffray Companies’ common
shareholders (a)
|
|
|
$
|
2,124
|
|
|
$
|
12,147
|
|
|
$
|
15,810
|
|
|
(82.5
|
)%
|
|
|
(86.6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.16
|
|
|
$
|
0.88
|
|
|
$
|
1.03
|
|
|
(81.8
|
)%
|
|
|
(84.5
|
)%
|
|
Diluted
|
|
|
$
|
0.16
|
|
|
$
|
0.88
|
|
|
$
|
1.03
|
|
|
(81.8
|
)%
|
|
|
(84.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
13,160
|
|
|
|
13,775
|
|
|
|
15,294
|
|
|
(4.5
|
)%
|
|
|
(14.0
|
)%
|
|
Diluted
|
|
|
|
13,172
|
|
|
|
13,782
|
|
|
|
15,332
|
|
|
(4.4
|
)%
|
|
|
(14.1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
|
Mar. 31,
|
|
|
1Q '16
|
|
|
1Q '16
|
|
(Dollars in thousands)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
vs. 4Q '15
|
|
|
vs. 1Q '15
|
|
Capital Markets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment banking
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equities
|
|
|
$
|
6,566
|
|
|
|
$
|
19,847
|
|
|
|
$
|
36,007
|
|
|
|
(66.9
|
)%
|
|
|
(81.8
|
)%
|
|
Debt
|
|
|
|
15,972
|
|
|
|
|
22,113
|
|
|
|
|
20,988
|
|
|
|
(27.8
|
)
|
|
|
(23.9
|
)
|
|
Advisory services
|
|
|
|
81,629
|
|
|
|
|
87,510
|
|
|
|
|
30,498
|
|
|
|
(6.7
|
)
|
|
|
167.7
|
|
|
Total investment banking
|
|
|
|
104,167
|
|
|
|
|
129,470
|
|
|
|
|
87,493
|
|
|
|
(19.5
|
)
|
|
|
19.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Institutional sales and trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equities
|
|
|
|
19,669
|
|
|
|
|
19,246
|
|
|
|
|
18,905
|
|
|
|
2.2
|
|
|
|
4.0
|
|
|
Fixed income
|
|
|
|
17,054
|
|
|
|
|
34,347
|
|
|
|
|
21,217
|
|
|
|
(50.3
|
)
|
|
|
(19.6
|
)
|
|
Total institutional sales and trading
|
|
|
|
36,723
|
|
|
|
|
53,593
|
|
|
|
|
40,122
|
|
|
|
(31.5
|
)
|
|
|
(8.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management and performance fees
|
|
|
|
965
|
|
|
|
|
716
|
|
|
|
|
1,407
|
|
|
|
34.8
|
|
|
|
(31.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income
|
|
|
|
2,086
|
|
|
|
|
2,274
|
|
|
|
|
14,705
|
|
|
|
(8.3
|
)
|
|
|
(85.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term financing expenses
|
|
|
|
(2,292
|
)
|
|
|
|
(2,713
|
)
|
|
|
|
(1,560
|
)
|
|
|
(15.5
|
)
|
|
|
46.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
|
|
141,649
|
|
|
|
|
183,340
|
|
|
|
|
142,167
|
|
|
|
(22.7
|
)
|
|
|
(0.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
138,855
|
|
|
|
|
161,823
|
|
|
|
|
116,203
|
|
|
|
(14.2
|
)
|
|
|
19.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment pre-tax operating income
|
|
|
$
|
2,794
|
|
|
|
$
|
21,517
|
|
|
|
$
|
25,964
|
|
|
|
(87.0
|
)%
|
|
|
(89.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment pre-tax operating margin
|
|
|
|
2.0
|
%
|
|
|
|
11.7
|
%
|
|
|
|
18.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management and performance fees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees
|
|
|
$
|
12,883
|
|
|
|
$
|
15,571
|
|
|
|
$
|
19,107
|
|
|
|
(17.3
|
)%
|
|
|
(32.6
|
)%
|
|
Performance fees
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
8
|
|
|
|
—
|
|
|
|
(100.0
|
)
|
|
Total management and performance fees
|
|
|
|
12,883
|
|
|
|
|
15,571
|
|
|
|
|
19,115
|
|
|
|
(17.3
|
)
|
|
|
(32.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income/(loss)
|
|
|
|
(976
|
)
|
|
|
|
(1,547
|
)
|
|
|
|
589
|
|
|
|
(36.9
|
)
|
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
|
|
11,907
|
|
|
|
|
14,024
|
|
|
|
|
19,704
|
|
|
|
(15.1
|
)
|
|
|
(39.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
11,259
|
|
|
|
|
13,057
|
|
|
|
|
14,376
|
|
|
|
(13.8
|
)
|
|
|
(21.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment pre-tax operating income
|
|
|
$
|
648
|
|
|
|
$
|
967
|
|
|
|
$
|
5,328
|
|
|
|
(33.0
|
)%
|
|
|
(87.8
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment pre-tax operating margin
|
|
|
|
5.4
|
%
|
|
|
|
6.9
|
%
|
|
|
|
27.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
|
$
|
153,556
|
|
|
|
$
|
197,364
|
|
|
|
$
|
161,871
|
|
|
|
(22.2
|
)%
|
|
|
(5.1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
150,114
|
|
|
|
|
174,880
|
|
|
|
|
130,579
|
|
|
|
(14.2
|
)
|
|
|
15.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax operating income
|
|
|
$
|
3,442
|
|
|
|
$
|
22,484
|
|
|
|
$
|
31,292
|
|
|
|
(84.7
|
)%
|
|
|
(89.0
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax operating margin
|
|
|
|
2.2
|
%
|
|
|
|
11.4
|
%
|
|
|
|
19.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M — Not meaningful
|
|
|
|
|
|
Piper Jaffray Companies
|
|
Preliminary Selected Summary Financial Information (Non-GAAP –
Unaudited) (1)
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Percent Inc/(Dec)
|
|
|
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
|
Mar. 31,
|
|
|
1Q '16
|
|
|
1Q '16
|
|
(Amounts in thousands, except per share data)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
vs. 4Q '15
|
|
|
vs. 1Q '15
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment banking
|
|
|
$
|
103,938
|
|
|
|
$
|
129,332
|
|
|
|
$
|
87,077
|
|
|
|
(19.6
|
)%
|
|
|
19.4
|
%
|
|
Institutional brokerage
|
|
|
|
32,336
|
|
|
|
|
47,350
|
|
|
|
|
36,036
|
|
|
|
(31.7
|
)
|
|
|
(10.3
|
)
|
|
Asset management
|
|
|
|
13,848
|
|
|
|
|
16,287
|
|
|
|
|
20,522
|
|
|
|
(15.0
|
)
|
|
|
(32.5
|
)
|
|
Interest
|
|
|
|
8,362
|
|
|
|
|
8,564
|
|
|
|
|
9,245
|
|
|
|
(2.4
|
)
|
|
|
(9.6
|
)
|
|
Investment income/(loss)
|
|
|
|
(412
|
)
|
|
|
|
(839
|
)
|
|
|
|
8,452
|
|
|
|
(50.9
|
)
|
|
|
N/M
|
|
|
Total revenues
|
|
|
|
158,072
|
|
|
|
|
200,694
|
|
|
|
|
161,332
|
|
|
|
(21.2
|
)
|
|
|
(2.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
5,865
|
|
|
|
|
5,598
|
|
|
|
|
5,593
|
|
|
|
4.8
|
|
|
|
4.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net revenues (2)
|
|
|
$
|
152,207
|
|
|
|
$
|
195,096
|
|
|
|
$
|
155,739
|
|
|
|
(22.0
|
)%
|
|
|
(2.3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted compensation and benefits (3)
|
|
|
$
|
101,130
|
|
|
|
$
|
124,802
|
|
|
|
$
|
94,606
|
|
|
|
(19.0
|
)%
|
|
|
6.9
|
%
|
|
Ratio of adjusted compensation and benefits to adjusted net
revenues
|
|
|
|
66.4
|
%
|
|
|
|
64.0
|
%
|
|
|
|
60.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted non-compensation expenses (4)
|
|
|
$
|
35,009
|
|
|
|
$
|
36,798
|
|
|
|
$
|
31,647
|
|
|
|
(4.9
|
)%
|
|
|
10.6
|
%
|
|
Ratio of adjusted non-compensation expenses to adjusted net
revenues
|
|
|
|
23.0
|
%
|
|
|
|
18.9
|
%
|
|
|
|
20.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income before adjusted income tax expense (5)
|
|
|
$
|
16,068
|
|
|
|
$
|
33,496
|
|
|
|
$
|
29,486
|
|
|
|
(52.0
|
)%
|
|
|
(45.5
|
)%
|
|
Adjusted operating margin (6)
|
|
|
|
10.6
|
%
|
|
|
|
17.2
|
%
|
|
|
|
18.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax expense (7)
|
|
|
|
5,459
|
|
|
|
|
12,349
|
|
|
|
|
10,667
|
|
|
|
(55.8
|
)
|
|
|
(48.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (8)
|
|
|
$
|
10,609
|
|
|
|
$
|
21,147
|
|
|
|
$
|
18,819
|
|
|
|
(49.8
|
)%
|
|
|
(43.6
|
)%
|
|
Effective tax rate (9)
|
|
|
|
34.0
|
%
|
|
|
|
36.9
|
%
|
|
|
|
36.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income applicable to Piper Jaffray Companies’ common
shareholders (10)
|
|
|
$
|
9,247
|
|
|
|
$
|
19,354
|
|
|
|
$
|
17,531
|
|
|
|
(52.2
|
)%
|
|
|
(47.3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per diluted common share
|
|
|
$
|
0.70
|
|
|
|
$
|
1.40
|
|
|
|
$
|
1.14
|
|
|
|
(50.0
|
)%
|
|
|
(38.6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
13,172
|
|
|
|
|
13,782
|
|
|
|
|
15,332
|
|
|
|
(4.4
|
)%
|
|
|
(14.1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
|
Mar. 31,
|
|
|
1Q '16
|
|
|
1Q '16
|
|
(Dollars in thousands)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
vs. 4Q '15
|
|
|
vs. 1Q '15
|
|
Capital Markets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment banking
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equities
|
|
|
$
|
6,566
|
|
|
|
$
|
19,847
|
|
|
|
$
|
36,007
|
|
|
|
(66.9
|
)%
|
|
|
(81.8
|
)%
|
|
Debt
|
|
|
|
15,972
|
|
|
|
|
22,113
|
|
|
|
|
20,988
|
|
|
|
(27.8
|
)
|
|
|
(23.9
|
)
|
|
Advisory services
|
|
|
|
81,629
|
|
|
|
|
87,510
|
|
|
|
|
30,498
|
|
|
|
(6.7
|
)
|
|
|
167.7
|
|
|
Total investment banking
|
|
|
|
104,167
|
|
|
|
|
129,470
|
|
|
|
|
87,493
|
|
|
|
(19.5
|
)
|
|
|
19.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Institutional sales and trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equities
|
|
|
|
19,669
|
|
|
|
|
19,246
|
|
|
|
|
18,905
|
|
|
|
2.2
|
|
|
|
4.0
|
|
|
Fixed income
|
|
|
|
17,054
|
|
|
|
|
33,531
|
|
|
|
|
21,217
|
|
|
|
(49.1
|
)
|
|
|
(19.6
|
)
|
|
Total institutional sales and trading
|
|
|
|
36,723
|
|
|
|
|
52,777
|
|
|
|
|
40,122
|
|
|
|
(30.4
|
)
|
|
|
(8.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management and performance fees
|
|
|
|
965
|
|
|
|
|
716
|
|
|
|
|
1,407
|
|
|
|
34.8
|
|
|
|
(31.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income
|
|
|
|
737
|
|
|
|
|
822
|
|
|
|
|
8,573
|
|
|
|
(10.3
|
)
|
|
|
(91.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term financing expenses
|
|
|
|
(2,292
|
)
|
|
|
|
(2,713
|
)
|
|
|
|
(1,560
|
)
|
|
|
(15.5
|
)
|
|
|
46.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net revenues (2)
|
|
|
|
140,300
|
|
|
|
|
181,072
|
|
|
|
|
136,035
|
|
|
|
(22.5
|
)
|
|
|
3.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating expenses (12)
|
|
|
|
126,276
|
|
|
|
|
150,053
|
|
|
|
|
113,601
|
|
|
|
(15.8
|
)
|
|
|
11.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment pre-tax operating income (5)
|
|
|
$
|
14,024
|
|
|
|
$
|
31,019
|
|
|
|
$
|
22,434
|
|
|
|
(54.8
|
)%
|
|
|
(37.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment pre-tax operating margin (6)
|
|
|
|
10.0
|
%
|
|
|
|
17.1
|
%
|
|
|
|
16.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management and performance fees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees
|
|
|
$
|
12,883
|
|
|
|
$
|
15,571
|
|
|
|
$
|
19,107
|
|
|
|
(17.3
|
)%
|
|
|
(32.6
|
)%
|
|
Performance fees
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
8
|
|
|
|
—
|
|
|
|
(100.0
|
)
|
|
Total management and performance fees
|
|
|
|
12,883
|
|
|
|
|
15,571
|
|
|
|
|
19,115
|
|
|
|
(17.3
|
)
|
|
|
(32.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income/(loss)
|
|
|
|
(976
|
)
|
|
|
|
(1,547
|
)
|
|
|
|
589
|
|
|
|
(36.9
|
)
|
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
|
|
11,907
|
|
|
|
|
14,024
|
|
|
|
|
19,704
|
|
|
|
(15.1
|
)
|
|
|
(39.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating expenses (13)
|
|
|
|
9,863
|
|
|
|
|
11,547
|
|
|
|
|
12,652
|
|
|
|
(14.6
|
)
|
|
|
(22.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment pre-tax operating income (13)
|
|
|
$
|
2,044
|
|
|
|
$
|
2,477
|
|
|
|
$
|
7,052
|
|
|
|
(17.5
|
)%
|
|
|
(71.0
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment pre-tax operating margin (6)
|
|
|
|
17.2
|
%
|
|
|
|
17.7
|
%
|
|
|
|
35.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment pre-tax operating margin excluding investment
income/(loss) *
|
|
|
|
23.4
|
%
|
|
|
|
25.8
|
%
|
|
|
|
33.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net revenues (2)
|
|
|
$
|
152,207
|
|
|
|
$
|
195,096
|
|
|
|
$
|
155,739
|
|
|
|
(22.0
|
)%
|
|
|
(2.3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating expenses (12)
|
|
|
|
136,139
|
|
|
|
|
161,600
|
|
|
|
|
126,253
|
|
|
|
(15.8
|
)
|
|
|
7.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax operating income (5)
|
|
|
$
|
16,068
|
|
|
|
$
|
33,496
|
|
|
|
$
|
29,486
|
|
|
|
(52.0
|
)%
|
|
|
(45.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax operating margin (6)
|
|
|
|
10.6
|
%
|
|
|
|
17.2
|
%
|
|
|
|
18.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This presentation includes non-GAAP measures. The non-GAAP measures
are not meant to be considered in isolation or as a substitute for the
corresponding U.S. GAAP measures, and should be read only in conjunction
with our consolidated financial statements prepared in accordance with
U.S. GAAP. For a detailed explanation of the adjustments made to the
corresponding U.S. GAAP measures, see "Reconciliation of U.S. GAAP to
Selected Summary Financial Information."
* Management believes that presenting adjusted segment pre-tax
operating margin excluding investment income/(loss) provides the most
meaningful basis for comparison of the operating results for the Asset
Management segment across periods.
N/M — Not meaningful
|
|
|
Piper Jaffray Companies
|
|
Reconciliation of U.S. GAAP to Selected Summary Financial
Information (1) (Unaudited)
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
|
Mar. 31,
|
|
(Amounts in thousands, except per share data)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
Net revenues – U.S. GAAP basis
|
|
|
$
|
153,556
|
|
|
|
$
|
197,364
|
|
|
|
$
|
161,871
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Revenue related to noncontrolling interests (11)
|
|
|
|
(1,349
|
)
|
|
|
|
(2,268
|
)
|
|
|
|
(6,132
|
)
|
|
Adjusted net revenues
|
|
|
$
|
152,207
|
|
|
|
$
|
195,096
|
|
|
|
$
|
155,739
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits:
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits – U.S. GAAP basis
|
|
|
$
|
104,436
|
|
|
|
$
|
126,190
|
|
|
|
$
|
95,857
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Compensation from acquisition-related agreements
|
|
|
|
(3,306
|
)
|
|
|
|
(1,388
|
)
|
|
|
|
(1,251
|
)
|
|
Adjusted compensation and benefits
|
|
|
$
|
101,130
|
|
|
|
$
|
124,802
|
|
|
|
$
|
94,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-compensation expenses:
|
|
|
|
|
|
|
|
|
|
|
Non-compensation expenses – U.S. GAAP basis
|
|
|
$
|
45,678
|
|
|
|
$
|
48,690
|
|
|
|
$
|
34,722
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Non-compensation expenses related to noncontrolling interests (11)
|
|
|
|
(600
|
)
|
|
|
|
(393
|
)
|
|
|
|
(1,302
|
)
|
|
Restructuring and integration costs
|
|
|
|
(6,773
|
)
|
|
|
|
(9,156
|
)
|
|
|
|
—
|
|
|
Amortization of intangible assets related to acquisitions
|
|
|
|
(3,296
|
)
|
|
|
|
(2,343
|
)
|
|
|
|
(1,773
|
)
|
|
Adjusted non-compensation expenses
|
|
|
$
|
35,009
|
|
|
|
$
|
36,798
|
|
|
|
$
|
31,647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense:
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense – U.S. GAAP basis
|
|
|
$
|
3,442
|
|
|
|
$
|
22,484
|
|
|
|
$
|
31,292
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Revenue related to noncontrolling interests (11)
|
|
|
|
(1,349
|
)
|
|
|
|
(2,268
|
)
|
|
|
|
(6,132
|
)
|
|
Expenses related to noncontrolling interests (11)
|
|
|
|
600
|
|
|
|
|
393
|
|
|
|
|
1,302
|
|
|
Compensation from acquisition-related agreements
|
|
|
|
3,306
|
|
|
|
|
1,388
|
|
|
|
|
1,251
|
|
|
Restructuring and integration costs
|
|
|
|
6,773
|
|
|
|
|
9,156
|
|
|
|
|
—
|
|
|
Amortization of intangible assets related to acquisitions
|
|
|
|
3,296
|
|
|
|
|
2,343
|
|
|
|
|
1,773
|
|
|
Adjusted income before adjusted income tax expense
|
|
|
$
|
16,068
|
|
|
|
$
|
33,496
|
|
|
|
$
|
29,486
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense:
|
|
|
|
|
|
|
|
|
|
|
Income tax expense – U.S. GAAP basis
|
|
|
$
|
256
|
|
|
|
$
|
7,336
|
|
|
|
$
|
9,490
|
|
|
Tax effect of adjustments:
|
|
|
|
|
|
|
|
|
|
|
Compensation from acquisition-related agreements
|
|
|
|
1,286
|
|
|
|
|
540
|
|
|
|
|
487
|
|
|
Restructuring and integration costs
|
|
|
|
2,635
|
|
|
|
|
3,562
|
|
|
|
|
—
|
|
|
Amortization of intangible assets related to acquisitions
|
|
|
|
1,282
|
|
|
|
|
911
|
|
|
|
|
690
|
|
|
Adjusted income tax expense
|
|
|
$
|
5,459
|
|
|
|
$
|
12,349
|
|
|
|
$
|
10,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to Piper Jaffray Companies:
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to Piper Jaffray Companies – U.S. GAAP basis
|
|
|
$
|
2,437
|
|
|
|
$
|
13,273
|
|
|
|
$
|
16,972
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Compensation from acquisition-related agreements
|
|
|
|
2,020
|
|
|
|
|
848
|
|
|
|
|
764
|
|
|
Restructuring and integration costs
|
|
|
|
4,138
|
|
|
|
|
5,594
|
|
|
|
|
—
|
|
|
Amortization of intangible assets related to acquisitions
|
|
|
|
2,014
|
|
|
|
|
1,432
|
|
|
|
|
1,083
|
|
|
Adjusted net income
|
|
|
$
|
10,609
|
|
|
|
$
|
21,147
|
|
|
|
$
|
18,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to Piper Jaffray Companies' common
shareholders:
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to Piper Jaffray Companies' common
stockholders – U.S. GAAP basis
|
|
|
$
|
2,124
|
|
|
|
$
|
12,147
|
|
|
|
$
|
15,810
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Compensation from acquisition-related agreements
|
|
|
|
1,761
|
|
|
|
|
776
|
|
|
|
|
712
|
|
|
Restructuring and integration costs
|
|
|
|
3,607
|
|
|
|
|
5,120
|
|
|
|
|
—
|
|
|
Amortization of intangible assets related to acquisitions
|
|
|
|
1,755
|
|
|
|
|
1,311
|
|
|
|
|
1,009
|
|
|
Adjusted net income applicable to Piper Jaffray Companies' common
stockholders
|
|
|
$
|
9,247
|
|
|
|
$
|
19,354
|
|
|
|
$
|
17,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted common share:
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted common share – U.S. GAAP basis
|
|
|
$
|
0.16
|
|
|
|
$
|
0.88
|
|
|
|
$
|
1.03
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Compensation from acquisition-related agreements
|
|
|
|
0.13
|
|
|
|
|
0.06
|
|
|
|
|
0.05
|
|
|
Restructuring and integration costs
|
|
|
|
0.27
|
|
|
|
|
0.37
|
|
|
|
|
—
|
|
|
Amortization of intangible assets related to acquisitions
|
|
|
|
0.13
|
|
|
|
|
0.10
|
|
|
|
|
0.07
|
|
|
Adjusted earnings per diluted common share
|
|
|
$
|
0.70
|
|
|
|
$
|
1.40
|
|
|
|
$
|
1.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 before adjusted
income tax expense as a percentage of adjusted net revenues.
(7) A non-GAAP measure which excludes the income tax benefit from (a)
compensation from acquisition-related agreements, (b) restructuring and
integration costs and (c) amortization of intangible assets related to
acquisitions.
(8) A non-GAAP measure which represents net income earned by the Company
excluding (a) compensation expense from acquisition-related agreements,
(b) restructuring and integration costs, (c) amortization of intangible
assets related to acquisitions and (d) the income tax expense/(benefit)
allocated to the adjustments.
(9) Effective tax rate is a non-GAAP measure which is computed based on
a quotient, the numerator of which is adjusted income tax expense and
the denominator of which is adjusted income before adjusted income tax
expense.
(10) 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 and (b) amortization of intangible assets
related to acquisitions.
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