Piper Jaffray Companies Announces 2014 Third Quarter Results
Financial Highlights
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Adjusted net income from continuing operations(1) was
$16.9 million , or$1.03 per diluted common share(1), in the third quarter of 2014, compared to$11.6 million , or$0.72 per diluted common share, in the third quarter of 2013, and$20.5 million , or$1.25 per diluted common share, in the second quarter of 2014. -
Adjusted net revenues from continuing operations(1) were
$155.9 million in the third quarter of 2014, compared to$125.0 million and$166.7 million in the third quarter of 2013 and the second quarter of 2014, respectively. -
Advisory services revenues of
$66.3 million in the third quarter of 2014 and$145.7 million in the first nine months of 2014 were both records. - Adjusted pre-tax operating margin(1) was 17.3% in the third quarter of 2014, compared to 13.9% and 19.2% in the third quarter of 2013 and the second quarter of 2014, respectively.
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Assets under management were
$12.2 billion at September 30, 2014, compared to$10.6 billion in the year-ago period and$12.6 billion at the end of the second quarter of 2014. - Rolling 12 month return on average common shareholders' equity increased to 10.2% at September 30, 2014, compared to 4.1% at September 30, 2013. Our rolling 12 month return on average tangible common shareholders' equity(2) improved to 15.2% at September 30, 2014.
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Book value per share increased 8.5% from September 30, 2013 to
$53.26 a share at September 30, 2014.
| Three Months Ended | Percent Inc/(Dec) | Nine Months Ended | |||||||||||||||||||||||||||
| (Amounts in thousands, except per share data) | Sept. 30, | June 30, | Sept. 30, | 3Q '14 | 3Q '14 | Sept. 30, | Sept. 30, | Percent | |||||||||||||||||||||
| 2014 | 2014 | 2013 | vs. 2Q '14 | vs. 3Q '13 | 2014 | 2013 | Inc/(Dec) | ||||||||||||||||||||||
| As Adjusted(1) | |||||||||||||||||||||||||||||
| Net revenues | $ | 155,850 | $ | 166,698 | $ | 125,023 | (6.5 | )% | 24.7 | % | $ | 484,045 | $ | 333,758 | 45.0 | % | |||||||||||||
| Net income from continuing operations | $ | 16,885 | $ | 20,494 | $ | 11,646 | (17.6 | )% | 45.0 | % | $ | 57,414 | $ | 29,094 | 97.3 | % | |||||||||||||
| Earnings per diluted common share from continuing operations | $ | 1.03 | $ | 1.25 | $ | 0.72 | (17.6 | )% | 43.1 | % | $ | 3.52 | $ | 1.71 | 105.8 | % | |||||||||||||
| U.S. GAAP | |||||||||||||||||||||||||||||
| Net revenues | $ | 159,426 | $ | 170,031 | $ | 128,314 | (6.2 | )% | 24.2 | % | $ | 497,590 | $ | 337,619 | 47.4 | % | |||||||||||||
| Net income from continuing operations | $ | 14,668 | $ | 18,213 | $ | 6,851 | (19.5 | )% | 114.1 | % | $ | 50,629 | $ | 21,877 | 131.4 | % | |||||||||||||
| Earnings per diluted common share from continuing operations | $ | 0.90 | $ | 1.11 | $ | 0.42 | (18.9 | )% | 114.3 | % | $ | 3.11 | $ | 1.29 | 141.1 | % | |||||||||||||
| Earnings per diluted common share | $ | 0.90 | $ | 1.11 | $ | 0.33 | (18.9 | )% | 172.7 | % | $ | 3.11 | $ | 1.06 | 193.4 | % | |||||||||||||
| Pre-tax operating margin from continuing operations | 16.1 | % | 17.9 | % | 9.4 | % | 17.9 | % | 9.9 | % | |||||||||||||||||||
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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. |
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(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. |
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For the third quarter of 2014, on a U.S. GAAP basis, net revenues from
continuing operations were
“Our results for the third quarter continue to build on our strong
performance throughout the year,” said
Third Quarter Results from Continuing Operations – Non-GAAP Basis
Throughout
the Adjusted Consolidated Results and Business Segment Results sections
of this press release we present financial measures that are not
prepared in accordance with U.S. generally accepted accounting
principles ("U.S. GAAP"). The non-GAAP financial measures include
adjustments to exclude (1) revenues and expenses related to
noncontrolling interests, (2) amortization of intangible assets related
to acquisitions, (3) compensation for acquisition-related agreements,
and (4) restructuring and acquisition integration costs. Management
believes that presenting results and measures on an adjusted basis in
conjunction with U.S. GAAP measures provides the most meaningful basis
for comparison of its operating results across periods. For a detailed
explanation of the adjustments made to the corresponding U.S. GAAP
measures, see "Reconciliation of U.S. GAAP to Selected Summary Financial
Information."
Adjusted Consolidated Results
For the third quarter of 2014,
adjusted net revenues were
For the third quarter of 2014, adjusted compensation and benefits
expenses were
For the third quarter of 2014, adjusted compensation and benefits expenses were 61.5% of adjusted net revenues, compared to 62.7% and 61.0% for the third quarter of 2013 and the second quarter of 2014, respectively. The adjusted compensation ratio decreased compared to the year-ago period due to an increased revenue base.
Adjusted non-compensation expenses were
Business Segment Results
The firm has two reportable
business segments: Capital Markets and Asset Management. Consolidated
net revenues and expenses are fully allocated to these two segments. The
operating results of our
Capital Markets
For the quarter, Capital Markets
generated adjusted pre-tax operating income of
Adjusted net revenues were
-
Equity financing revenues of
$14.3 million decreased 53% and 68% compared to the third quarter of 2013 and the second quarter of 2014, respectively. Revenues decreased compared to both periods due to fewer completed transactions and lower revenue per transaction. -
Debt financing revenues were
$14.4 million , up 13% compared to the year-ago period due to more completed transactions, and down 28% compared to the second quarter of 2014 due to fewer completed transactions. -
Advisory services revenues were
$66.3 million , up 228% and 67% compared to the third quarter of 2013 and the second quarter of 2014, respectively. Revenues increased compared to both periods due to more completed transactions and higher revenue per transaction. -
Equity institutional brokerage revenues of
$16.7 million decreased 27% compared to the third quarter of 2013 due to lower client trading volumes, the absence of block trades during the quarter and losses from our equity strategic trading activities. Revenues decreased 9% compared to the second quarter of 2014 due to lower client trading volumes and losses from our equity strategic trading activities. -
Fixed income institutional brokerage revenues were
$22.7 million , up 33% and 8% compared to the third quarter of 2013 and the second quarter of 2014, respectively. Revenues increased compared to the year-ago period due primarily to higher trading gains. -
Management and performance fees earned from managing our alternative
asset management funds were
$1.4 million , compared to$1.1 million in the year-ago period and essentially flat compared to the sequential quarter. -
Adjusted investment income, which includes gains and losses on our
investments in the merchant banking fund and the municipal bond fund
that we manage for third-party investors, and other firm investments,
was
$1.6 million , compared to$4.6 million in the year-ago period and$1.7 million in the second quarter of 2014. The decrease compared to the third quarter of 2013 was due to lower gains on our merchant banking investments. -
Long-term financing expenses, which primarily represents interest paid
on the firm's variable rate senior notes, were
$1.6 million , down slightly compared to$1.8 million and$1.7 million in the third quarter of 2013 and the second quarter of 2014, respectively. -
Adjusted operating expenses for the third quarter of 2014 were
$116.1 million , up 19% compared to the third quarter of 2013. The increase primarily resulted from higher compensation expenses due to improved operating results and business expansion. Compared to the second quarter of 2014, adjusted operating expenses decreased 5% due to lower compensation expenses. - Adjusted segment pre-tax operating margin was 14.6% compared to 9.1% in the year-ago period and 15.9% in the second quarter of 2014. Adjusted pre-tax operating margin improved compared to the third quarter of 2013 due to higher net revenues and decreased compared to the sequential quarter due to lower net revenues.
Asset Management
For the quarter ended September 30,
2014, Asset Management generated adjusted pre-tax operating income of
Net revenues were
-
Adjusted operating expenses for the current quarter were
$12.8 million , up 24% compared to the year-ago period due to higher compensation and non-compensation expenses, and down slightly compared to the second quarter of 2014. - Adjusted segment pre-tax operating margin was 35.7%, compared to 42.6% in the year-ago period and 40.7% in the second quarter of 2014. Adjusted segment pre-tax operating margin declined relative to the third quarter of 2013 due to higher non-compensation expenses, and declined from the sequential quarter due to lower investment income.
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AUM was
$12.2 billion at the end of the third quarter of 2014, compared to$10.6 billion in the year-ago period and$12.6 billion at the end of the second quarter of 2014. The decrease in AUM compared to sequential quarter was driven by net market depreciation.
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Additional Shareholder Information* |
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| For the Quarter Ended | ||||||
| Sept. 30, 2014 | June 30, 2014 | Sept. 30, 2013 | ||||
| Full time employees | 1,029 | 999 | 1,002 | |||
| Equity financings | ||||||
| # of transactions | 15 | 33 | 27 | |||
| Capital raised | $3.5 billion | $9.2 billion | $4.8 billion | |||
| Negotiated tax-exempt issuances | ||||||
| # of transactions | 85 | 112 | 61 | |||
| Par value | $1.8 billion | $2.4 billion | $1.3 billion | |||
| Mergers & acquisitions | ||||||
| # of transactions | 22 | 16 | 11 | |||
| Aggregate deal value | $4.7 billion | $3.7 billion | $1.2 billion | |||
| Asset Management | ||||||
| AUM | $12.2 billion | $12.6 billion | $10.6 billion | |||
| Common shareholders’ equity | $804.6 million | $787.8 million | $707.4 million | |||
| Number of common shares outstanding (in thousands) | 15,109 | 14,995 | 14,404 | |||
| Rolling 12 month return on average common shareholders’ equity ** | 10.2% | 9.2% | 4.1% | |||
| Rolling 12 month return on average tangible common shareholders’ equity † | 15.2% | 13.9% | 6.1% | |||
| Book value per share | $53.26 | $52.54 | $49.11 | |||
| Tangible book value per share ‡ | $37.05 | $36.06 | $31.56 | |||
| * Number of employees, transaction data, and AUM reflect continuing operations; other numbers reflect continuing and discontinued results. | ||||||
| ** Rolling 12 month return on average common shareholders' equity is computed by dividing net income applicable to Piper Jaffray Companies' for the last 12 months by average monthly common shareholders' equity. | ||||||
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† 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: |
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| (Amounts in thousands) | As of | As of | As of | |||||||||
| Sept. 30, 2014 | June 30, 2014 | Sept. 30, 2013 | ||||||||||
| Average common shareholders’ equity | $ | 759,971 | $ | 740,280 | $ | 730,347 | ||||||
| Deduct: average goodwill and identifiable intangible assets | 248,568 | 249,096 | 243,884 | |||||||||
| Average tangible common shareholders’ equity | $ | 511,403 | $ | 491,184 | $ | 486,463 | ||||||
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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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| (Amounts in thousands) | As of | As of | As of | |||||||||
| Sept. 30, 2014 | June 30, 2014 | Sept. 30, 2013 | ||||||||||
| Common shareholders’ equity | $ | 804,633 | $ | 787,848 | $ | 707,365 | ||||||
| Deduct: goodwill and identifiable intangible assets | 244,854 | 247,172 | 252,761 | |||||||||
| Tangible common shareholders’ equity | $ | 559,779 | $ | 540,676 | $ | 454,604 | ||||||
Conference Call
About
Cautionary Note Regarding Forward-Looking Statements
This
press release and the conference call to discuss the contents of this
press release contain forward-looking statements. Statements that are
not historical or current facts, including statements about beliefs and
expectations, are forward-looking statements and are subject to
significant risks and uncertainties that are difficult to predict. These
forward-looking statements cover, among other things, statements made
about general economic and market conditions (including the outlook for
equity markets and the interest rate environment), the environment and
prospects for corporate advisory transactions and capital markets
(including our performance in specific sectors), anticipated financial
results generally (including expectations regarding our non-compensation
expenses, compensation and benefits expense, compensation ratio, revenue
levels, operating margins, earnings per share, effective tax rate, and
return on equity), current deal pipelines (or backlogs), our strategic
priorities (including growth in public finance, asset management, and
corporate advisory), the market positioning of and prospects for our
public finance business, or other similar matters.
Forward-looking statements involve inherent risks and uncertainties, both known and unknown, and important factors could cause actual results to differ materially from those anticipated or discussed in the forward-looking statements. These risks, uncertainties and important factors include, but are not limited to, the following:
- market and economic conditions or developments may be unfavorable, including in specific sectors in which we operate, and these conditions or developments, such as market fluctuations or volatility, may adversely affect our business, revenue levels and profitability;
- net revenues from capital markets and corporate advisory engagements may vary materially depending on the number, size, and timing of completed transactions, and completed transactions do not generally provide for subsequent engagements;
- the volume of anticipated investment banking transactions as reflected in our deal pipelines (and the net revenues we earn from such transactions) may differ from expected results if there is a decline in macroeconomic conditions or the financial markets, or if the terms of any transactions are modified;
- interest rate volatility, especially if the changes are rapid or severe, could negatively impact our fixed income institutional business;
- strategic trading activities comprise a meaningful portion of our fixed income institutional brokerage revenue, and results from these activities may be volatile and vary significantly, including the possibility of incurring losses, on a quarterly and annual basis; and
- our stock price may fluctuate as a result of several factors, including but not limited to, changes in our revenues and operating results.
A further listing and description of these and other risks,
uncertainties and important factors can be found in the sections titled
“Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for
the year ended December 31, 2013 and “Management's Discussion and
Analysis of Financial Condition and Results of Operations” in Part II,
Item 7 of our Annual Report on Form 10-K for the year ended December 31,
2013, and updated in our subsequent reports filed with the
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.
© 2014
| Piper Jaffray Companies | |||||||||||||||||||||||||||||
| Preliminary Results of Operations (U.S. GAAP – Unaudited) | |||||||||||||||||||||||||||||
| Three Months Ended | Percent Inc/(Dec) | Nine Months Ended | |||||||||||||||||||||||||||
| (Amounts in thousands, except per share data) | Sept. 30, | June 30, | Sept. 30, | 3Q '14 | 3Q '14 | Sept. 30, | Sept. 30, | Percent | |||||||||||||||||||||
| 2014 | 2014 | 2013 | vs. 2Q '14 | vs. 3Q '13 | 2014 | 2013 | Inc/(Dec) | ||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||
| Investment banking | $ | 94,911 | $ | 103,813 | $ | 62,848 | (8.6 | )% | 51.0 | % | $ | 287,198 | $ | 156,924 | 83.0 | % | |||||||||||||
| Institutional brokerage | 35,923 | 34,528 | 35,318 | 4.0 | 1.7 | 114,485 | 100,076 | 14.4 | |||||||||||||||||||||
| Asset management | 21,595 | 22,266 | 18,701 | (3.0 | ) | 15.5 | 64,820 | 55,584 | 16.6 | ||||||||||||||||||||
| Interest | 10,828 | 12,448 | 12,360 | (13.0 | ) | (12.4 | ) | 36,935 | 35,469 | 4.1 | |||||||||||||||||||
| Investment income | 2,690 | 2,921 | 5,279 | (7.9 | ) | (49.0 | ) | 12,379 | 8,285 | 49.4 | |||||||||||||||||||
| Total revenues | 165,947 | 175,976 | 134,506 | (5.7 | ) | 23.4 | 515,817 | 356,338 | 44.8 | ||||||||||||||||||||
| Interest expense | 6,521 | 5,945 | 6,192 | 9.7 | 5.3 | 18,227 | 18,719 | (2.6 | ) | ||||||||||||||||||||
| Net revenues | 159,426 | 170,031 | 128,314 | (6.2 | ) | 24.2 | 497,590 | 337,619 | 47.4 | ||||||||||||||||||||
| Non-interest expenses: | |||||||||||||||||||||||||||||
| Compensation and benefits | 97,180 | 103,076 | 79,426 | (5.7 | ) | 22.4 | 300,745 | 210,531 | 42.9 | ||||||||||||||||||||
| Occupancy and equipment | 8,312 | 7,061 | 6,509 | 17.7 | 27.7 | 22,151 | 18,869 | 17.4 | |||||||||||||||||||||
| Communications | 5,661 | 5,432 | 5,778 | 4.2 | (2.0 | ) | 17,048 | 16,040 | 6.3 | ||||||||||||||||||||
| Floor brokerage and clearance | 1,905 | 1,788 | 2,109 | 6.5 | (9.7 | ) | 5,527 | 6,506 | (15.0 | ) | |||||||||||||||||||
| Marketing and business development | 6,827 | 6,709 | 5,447 | 1.8 | 25.3 | 19,787 | 16,384 | 20.8 | |||||||||||||||||||||
| Outside services | 9,155 | 9,914 | 8,082 | (7.7 | ) | 13.3 | 27,837 | 23,745 | 17.2 | ||||||||||||||||||||
| Restructuring and integration costs | — | — | 3,823 | N/M | N/M | — | 3,823 | N/M | |||||||||||||||||||||
| Intangible asset amortization expense | 2,318 | 2,318 | 2,899 | — | (20.0 | ) | 6,954 | 6,221 | 11.8 | ||||||||||||||||||||
| Other operating expenses | 2,376 | 3,316 | 2,181 | (28.3 | ) | 8.9 | 8,719 | 1,939 | 349.7 | ||||||||||||||||||||
| Total non-interest expenses | 133,734 | 139,614 | 116,254 | (4.2 | ) | 15.0 | 408,768 | 304,058 | 34.4 | ||||||||||||||||||||
| Income from continuing operations before income tax expense | 25,692 | 30,417 | 12,060 | (15.5 | ) | 113.0 | 88,822 | 33,561 | 164.7 | ||||||||||||||||||||
| Income tax expense | 8,596 | 10,049 | 2,886 | (14.5 | ) | 197.9 | 28,472 | 10,130 | 181.1 | ||||||||||||||||||||
| Income from continuing operations | 17,096 | 20,368 | 9,174 | (16.1 | ) | 86.4 | 60,350 | 23,431 | 157.6 | ||||||||||||||||||||
| Discontinued operations: | |||||||||||||||||||||||||||||
| Loss from discontinued operations, net of tax | — | — | (1,529 | ) | N/M | N/M | — | (3,921 | ) | N/M | |||||||||||||||||||
| Net income | 17,096 | 20,368 | 7,645 | (16.1 | ) | 123.6 | 60,350 | 19,510 | 209.3 | ||||||||||||||||||||
| Net income applicable to noncontrolling interests | 2,428 | 2,155 | 2,323 | 12.7 | 4.5 | 9,721 | 1,554 | 525.5 | |||||||||||||||||||||
| Net income applicable to Piper Jaffray Companies (a) | $ | 14,668 | $ | 18,213 | $ | 5,322 | (19.5 | )% | 175.6 | % | $ | 50,629 | $ | 17,956 | 182.0 | % | |||||||||||||
| Net income applicable to Piper Jaffray Companies’ common shareholders (a) | $ | 13,552 | $ | 16,717 | $ | 4,826 | (18.9 | )% | 180.8 | % | $ | 46,386 | $ | 16,163 | 187.0 | % | |||||||||||||
| Amounts applicable to Piper Jaffray Companies | |||||||||||||||||||||||||||||
| Net income from continuing operations | $ | 14,668 | $ | 18,213 | $ | 6,851 | (19.5 | )% | 114.1 | % | $ | 50,629 | $ | 21,877 | 131.4 | % | |||||||||||||
| Net loss from discontinued operations | — | — | (1,529 | ) | N/M | N/M | — | (3,921 | ) | N/M | |||||||||||||||||||
| Net income applicable to Piper Jaffray Companies | $ | 14,668 | $ | 18,213 | $ | 5,322 | (19.5 | )% | 175.6 | % | $ | 50,629 | $ | 17,956 | 182.0 | % | |||||||||||||
| Earnings/(loss) per basic common share | |||||||||||||||||||||||||||||
| Income from continuing operations | $ | 0.90 | $ | 1.12 | $ | 0.42 | (19.6 | )% | 114.3 | % | $ | 3.12 | $ | 1.29 | 141.9 | % | |||||||||||||
| Loss from discontinued operations | — | — | (0.09 | ) | N/M | N/M | — | (0.23 | ) | N/M | |||||||||||||||||||
| Earnings per basic common share | $ | 0.90 | $ | 1.12 | $ | 0.33 | (19.6 | )% | 172.7 | % | $ | 3.12 | $ | 1.06 | 194.3 | % | |||||||||||||
| Earnings/(loss) per diluted common share | |||||||||||||||||||||||||||||
| Income from continuing operations | $ | 0.90 | $ | 1.11 | $ | 0.42 | (18.9 | )% | 114.3 | % | $ | 3.11 | $ | 1.29 | 141.1 | % | |||||||||||||
| Loss from discontinued operations | — | — | (0.09 | ) | N/M | N/M | — | (0.23 | ) | N/M | |||||||||||||||||||
| Earnings per diluted common share | $ | 0.90 | $ | 1.11 | $ | 0.33 | (18.9 | )% | 172.7 | % | $ | 3.11 | $ | 1.06 | 193.4 | % | |||||||||||||
| Weighted average number of common shares outstanding | |||||||||||||||||||||||||||||
| Basic | 15,066 | 14,958 | 14,621 | 0.7 | % | 3.0 | % | 14,880 | 15,271 | (2.6 | )% | ||||||||||||||||||
| Diluted | 15,129 | 15,013 | 14,626 | 0.8 | % | 3.4 | % | 14,934 | 15,284 | (2.3 | )% | ||||||||||||||||||
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(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. |
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N/M — Not meaningful |
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| Piper Jaffray Companies | |||||||||||||||||||||||||||||
| Preliminary Segment Data from Continuing Operations (U.S. GAAP – Unaudited) | |||||||||||||||||||||||||||||
| Three Months Ended | Percent Inc/(Dec) | Nine Months Ended | |||||||||||||||||||||||||||
| (Dollars in thousands) | Sept. 30, | June 30, | Sept. 30, | 3Q '14 | 3Q '14 | Sept. 30, | Sept. 30, | Percent | |||||||||||||||||||||
| 2014 | 2014 | 2013 | vs. 2Q '14 | vs. 3Q '13 | 2014 | 2013 | Inc/(Dec) | ||||||||||||||||||||||
| Capital Markets | |||||||||||||||||||||||||||||
| Investment banking | |||||||||||||||||||||||||||||
| Financing | |||||||||||||||||||||||||||||
| Equities | $ | 14,269 | $ | 44,058 | $ | 30,010 | (67.6 | )% | (52.5 | )% | $ | 93,628 | $ | 66,085 | 41.7 | % | |||||||||||||
| Debt | 14,435 | 20,174 | 12,808 | (28.4 | ) | 12.7 | 48,148 | 51,971 | (7.4 | ) | |||||||||||||||||||
| Advisory services | 66,320 | 39,695 | 20,215 | 67.1 | 228.1 | 145,743 | 39,165 | 272.1 | |||||||||||||||||||||
| Total investment banking | 95,024 | 103,927 | 63,033 | (8.6 | ) | 50.8 | 287,519 | 157,221 | 82.9 | ||||||||||||||||||||
| Institutional sales and trading | |||||||||||||||||||||||||||||
| Equities | 16,711 | 18,366 | 22,958 | (9.0 | ) | (27.2 | ) | 59,337 | 65,077 | (8.8 | ) | ||||||||||||||||||
| Fixed income | 22,737 | 21,085 | 17,083 | 7.8 | 33.1 | 69,060 | 49,732 | 38.9 | |||||||||||||||||||||
| Total institutional sales and trading | 39,448 | 39,451 | 40,041 | — | (1.5 | ) | 128,397 | 114,809 | 11.8 | ||||||||||||||||||||
| Management and performance fees | 1,387 | 1,388 | 1,094 | (0.1 | ) | 26.8 | 4,512 | 2,677 | 68.5 | ||||||||||||||||||||
| Investment income | 5,224 | 4,998 | 7,892 | 4.5 | (33.8 | ) | 20,600 | 14,213 | 44.9 | ||||||||||||||||||||
| Long-term financing expenses | (1,613 | ) | (1,705 | ) | (1,797 | ) | (5.4 | ) | (10.2 | ) | (5,058 | ) | (5,618 | ) | (10.0 | ) | |||||||||||||
| Net revenues | 139,470 | 148,059 | 110,263 | (5.8 | ) | 26.5 | 435,970 | 283,302 | 53.9 | ||||||||||||||||||||
| Operating expenses | 119,001 | 124,691 | 103,906 | (4.6 | ) | 14.5 | 364,622 | 266,301 | 36.9 | ||||||||||||||||||||
| Segment pre-tax operating income | $ | 20,469 | $ | 23,368 | $ | 6,357 | (12.4 | )% | 222.0 | $ | 71,348 | $ | 17,001 | 319.7 | % | ||||||||||||||
| Segment pre-tax operating margin | 14.7 | % | 15.8 | % | 5.8 | % | 16.4 | % | 6.0 | % | |||||||||||||||||||
| Asset Management | |||||||||||||||||||||||||||||
| Management and performance fees | |||||||||||||||||||||||||||||
| Management fees | $ | 19,738 | $ | 20,600 | $ | 17,547 | (4.2 | )% | 12.5 | % | $ | 59,474 | $ | 52,191 | 14.0 | % | |||||||||||||
| Performance fees | 470 | 278 | 60 | 69.1 | 683.3 | 834 | 716 | 16.5 | |||||||||||||||||||||
| Total management and performance fees | 20,208 | 20,878 | 17,607 | (3.2 | ) | 14.8 | 60,308 | 52,907 | 14.0 | ||||||||||||||||||||
| Investment income/(loss) | (252 | ) | 1,094 | 444 | N/M | N/M | 1,312 | 1,410 | (7.0 | ) | |||||||||||||||||||
| Net revenues | 19,956 | 21,972 | 18,051 | (9.2 | ) | 10.6 | 61,620 | 54,317 | 13.4 | ||||||||||||||||||||
| Operating expenses | 14,733 | 14,923 | 12,348 | (1.3 | ) | 19.3 | 44,146 | 37,757 | 16.9 | ||||||||||||||||||||
| Segment pre-tax operating income | $ | 5,223 | $ | 7,049 | $ | 5,703 | (25.9 | )% | (8.4 | )% | $ | 17,474 | $ | 16,560 | 5.5 | % | |||||||||||||
| Segment pre-tax operating margin | 26.2 | % | 32.1 | % | 31.6 | % | 28.4 | % | 30.5 | % | |||||||||||||||||||
| Total | |||||||||||||||||||||||||||||
| Net revenues | $ | 159,426 | $ | 170,031 | $ | 128,314 | (6.2 | )% | 24.2 | % | $ | 497,590 | $ | 337,619 | 47.4 | % | |||||||||||||
| Operating expenses | 133,734 | 139,614 | 116,254 | (4.2 | ) | 15.0 | 408,768 | 304,058 | 34.4 | ||||||||||||||||||||
| Pre-tax operating income | $ | 25,692 | $ | 30,417 | $ | 12,060 | (15.5 | )% | 113.0 | % | $ | 88,822 | $ | 33,561 | 164.7 | % | |||||||||||||
| Pre-tax operating margin | 16.1 | % | 17.9 | % | 9.4 | % | 17.9 | % | 9.9 | % | |||||||||||||||||||
|
Segment pre-tax operating income and segment pre-tax operation margin exclude the results of discontinued operations. |
|||||||||||||||||||||||||||||
| Piper Jaffray Companies | |||||||||||||||||||||||||||||
| Preliminary Selected Summary Financial Information from Continuing Operations (Non-GAAP – Unaudited) (1) | |||||||||||||||||||||||||||||
| Three Months Ended | Percent Inc/(Dec) | Nine Months Ended | |||||||||||||||||||||||||||
| (Amounts in thousands, except per share data) | Sept. 30, | June 30, | Sept. 30, | 3Q '14 | 3Q '14 | Sept. 30, | Sept. 30, | Percent | |||||||||||||||||||||
| 2014 | 2014 | 2013 | vs. 2Q '14 | vs. 3Q '13 | 2014 | 2013 | Inc/(Dec) | ||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||
| Investment banking | $ | 94,911 | $ | 103,813 | $ | 62,848 | (8.6 | )% | 51.0 | % | $ | 287,198 | $ | 156,924 | 83.0 | % | |||||||||||||
| Institutional brokerage | 35,923 | 34,528 | 35,318 | 4.0 | 1.7 | 114,485 | 100,076 | 14.4 | |||||||||||||||||||||
| Asset management | 21,595 | 22,266 | 18,701 | (3.0 | ) | 15.5 | 64,820 | 55,584 | 16.6 | ||||||||||||||||||||
| Interest | 8,028 | 9,451 | 9,605 | (15.1 | ) | (16.4 | ) | 27,835 | 28,892 | (3.7 | ) | ||||||||||||||||||
| Investment income | 859 | 1,666 | 3,872 | (48.4 | ) | (77.8 | ) | 5,106 | 8,584 | (40.5 | ) | ||||||||||||||||||
| Total revenues | 161,316 | 171,724 | 130,344 | (6.1 | ) | 23.8 | 499,444 | 350,060 | 42.7 | ||||||||||||||||||||
| Interest expense | 5,466 | 5,026 | 5,321 | 8.8 | 2.7 | 15,399 | 16,302 | (5.5 | ) | ||||||||||||||||||||
| Adjusted net revenues (2) | $ | 155,850 | $ | 166,698 | $ | 125,023 | (6.5 | )% | 24.7 | % | $ | 484,045 | $ | 333,758 | 45.0 | % | |||||||||||||
| Non-interest expenses: | |||||||||||||||||||||||||||||
| Adjusted compensation and benefits (3) | $ | 95,869 | $ | 101,660 | $ | 78,445 | (5.7 | )% | 22.2 | % | $ | 296,729 | $ | 208,908 | 42.0 | % | |||||||||||||
| Ratio of adjusted compensation and benefits to adjusted net revenues | 61.5 | % | 61.0 | % | 62.7 | % | 61.3 | % | 62.6 | % | |||||||||||||||||||
| Adjusted non-compensation expenses (4) | $ | 33,088 | $ | 33,042 | $ | 29,138 | 0.1 | % | 13.6 | % | $ | 97,245 | $ | 81,176 | 19.8 | % | |||||||||||||
| Ratio of adjusted non-compensation expenses to adjusted net revenues | 21.2 | % | 19.8 | % | 23.3 | % | 20.1 | % | 24.3 | % | |||||||||||||||||||
| Adjusted income: | |||||||||||||||||||||||||||||
| Adjusted income from continuing operations before adjusted income tax expense (5) | $ | 26,893 | $ | 31,996 | $ | 17,440 | (15.9 | )% | 54.2 | % | $ | 90,071 | $ | 43,674 | 106.2 | % | |||||||||||||
| Adjusted operating margin (6) | 17.3 | % | 19.2 | % | 13.9 | % | 18.6 | % | 13.1 | % | |||||||||||||||||||
| Adjusted income tax expense (7) | 10,008 | 11,502 | 5,794 | (13.0 | ) | 72.7 | 32,657 | 14,580 | 124.0 | ||||||||||||||||||||
| Adjusted net income from continuing operations (8) | $ | 16,885 | $ | 20,494 | $ | 11,646 | (17.6 | )% | 45.0 | % | $ | 57,414 | $ | 29,094 | 97.3 | % | |||||||||||||
| Effective tax rate (9) | 37.2 | % | 35.9 | % | 33.2 | % | 36.3 | % | 33.4 | % | |||||||||||||||||||
| Adjusted net income from continuing operations applicable to Piper Jaffray Companies’ common shareholders (10) | $ | 15,600 | $ | 18,811 | $ | 10,561 | (17.1 | )% | 47.7 | % | $ | 52,602 | $ | 26,189 | 100.9 | % | |||||||||||||
| Adjusted earnings per diluted common share from continuing operations | $ | 1.03 | $ | 1.25 | $ | 0.72 | (17.6 | )% | 43.1 | % | $ | 3.52 | $ | 1.71 | 105.8 | % | |||||||||||||
| Weighted average number of common shares outstanding | |||||||||||||||||||||||||||||
| Diluted | 15,129 | 15,013 | 14,626 | 0.8 | % | 3.4 | % | 14,934 | 15,284 | (2.3 | )% | ||||||||||||||||||
|
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." |
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| Piper Jaffray Companies | |||||||||||||||||||||||||||||
| Preliminary Adjusted Segment Data from Continuing Operations (Non-GAAP – Unaudited) | |||||||||||||||||||||||||||||
| Three Months Ended | Percent Inc/(Dec) | Nine Months Ended | |||||||||||||||||||||||||||
|
(Dollars in thousands) |
Sept. 30, | June 30, | Sept. 30, | 3Q '14 | 3Q '14 | Sept. 30, | Sept. 30, | Percent | |||||||||||||||||||||
| 2014 | 2014 | 2013 | vs. 2Q '14 | vs. 3Q '13 | 2014 | 2013 | Inc/(Dec) | ||||||||||||||||||||||
| Capital Markets | |||||||||||||||||||||||||||||
| Investment banking | |||||||||||||||||||||||||||||
| Financing | |||||||||||||||||||||||||||||
| Equities | $ | 14,269 | $ | 44,058 | $ | 30,010 | (67.6 | )% | (52.5 | )% | $ | 93,628 | $ | 66,085 | 41.7 | % | |||||||||||||
| Debt | 14,435 | 20,174 | 12,808 | (28.4 | ) | 12.7 | 48,148 | 51,971 | (7.4 | ) | |||||||||||||||||||
| Advisory services | 66,320 | 39,695 | 20,215 | 67.1 | 228.1 | 145,743 | 39,165 | 272.1 | |||||||||||||||||||||
| Total investment banking | 95,024 | 103,927 | 63,033 | (8.6 | ) | 50.8 | 287,519 | 157,221 | 82.9 | ||||||||||||||||||||
| Institutional sales and trading | |||||||||||||||||||||||||||||
| Equities | 16,711 | 18,366 | 22,958 | (9.0 | ) | (27.2 | ) | 59,337 | 65,077 | (8.8 | ) | ||||||||||||||||||
| Fixed income | 22,737 | 21,085 | 17,083 | 7.8 | 33.1 | 69,060 | 49,732 | 38.9 | |||||||||||||||||||||
| Total institutional sales and trading | 39,448 | 39,451 | 40,041 | — | (1.5 | ) | 128,397 | 114,809 | 11.8 | ||||||||||||||||||||
| Management and performance fees | 1,387 | 1,388 | 1,094 | (0.1 | ) | 26.8 | 4,512 | 2,677 | 68.5 | ||||||||||||||||||||
| Investment income | 1,648 | 1,665 | 4,601 | (1.0 | ) | (64.2 | ) | 7,055 | 10,352 | (31.8 | ) | ||||||||||||||||||
| Long-term financing expenses | (1,613 | ) | (1,705 | ) | (1,797 | ) | (5.4 | ) | (10.2 | ) | (5,058 | ) | (5,618 | ) | (10.0 | ) | |||||||||||||
| Adjusted net revenues (2) | 135,894 | 144,726 | 106,972 | (6.1 | ) | 27.0 | 422,425 | 279,441 | 51.2 | ||||||||||||||||||||
| Adjusted operating expenses (12) | 116,120 | 121,675 | 97,217 | (4.6 | ) | 19.4 | 355,516 | 258,273 | 37.7 | ||||||||||||||||||||
| Adjusted segment pre-tax operating income (5) | $ | 19,774 | $ | 23,051 | $ | 9,755 | (14.2 | )% | 102.7 | $ | 66,909 | $ | 21,168 | 216.1 | % | ||||||||||||||
| Adjusted segment pre-tax operating margin (6) | 14.6 | % | 15.9 | % | 9.1 | % | 15.8 | % | 7.6 | % | |||||||||||||||||||
| Asset Management | |||||||||||||||||||||||||||||
| Management and performance fees | |||||||||||||||||||||||||||||
| Management fees | $ | 19,738 | $ | 20,600 | $ | 17,547 | (4.2 | )% | 12.5 | % | $ | 59,474 | $ | 52,191 | 14.0 | % | |||||||||||||
| Performance fees | 470 | 278 | 60 | 69.1 | 683.3 | 834 | 716 | 16.5 | |||||||||||||||||||||
| Total management and performance fees | 20,208 | 20,878 | 17,607 | (3.2 | ) | 14.8 | 60,308 | 52,907 | 14.0 | ||||||||||||||||||||
| Investment income/(loss) | (252 | ) | 1,094 | 444 | N/M | N/M | 1,312 | 1,410 | (7.0 | ) | |||||||||||||||||||
| Net revenues | 19,956 | 21,972 | 18,051 | (9.2 | ) | 10.6 | 61,620 | 54,317 | 13.4 | ||||||||||||||||||||
| Adjusted operating expenses (13) | 12,837 | 13,027 | 10,366 | (1.5 | ) | 23.8 | 38,458 | 31,811 | 20.9 | ||||||||||||||||||||
| Adjusted segment pre-tax operating income (13) | $ | 7,119 | $ | 8,945 | $ | 7,685 | (20.4 | )% | (7.4 | )% | $ | 23,162 | $ | 22,506 | 2.9 | % | |||||||||||||
| Adjusted segment pre-tax operating margin (6) | 35.7 | % | 40.7 | % | 42.6 | % | 37.6 | % | 41.4 | % | |||||||||||||||||||
| Total | |||||||||||||||||||||||||||||
| Adjusted net revenues (2) | $ | 155,850 | $ | 166,698 | $ | 125,023 | (6.5 | )% | 24.7 | % | $ | 484,045 | $ | 333,758 | 45.0 | % | |||||||||||||
| Adjusted operating expenses (12) | 128,957 | 134,702 | 107,583 | (4.3 | ) | 19.9 | 393,974 | 290,084 | 35.8 | ||||||||||||||||||||
| Adjusted pre-tax operating income (5) | $ | 26,893 | $ | 31,996 | $ | 17,440 | (15.9 | )% | 54.2 | % | $ | 90,071 | $ | 43,674 | 106.2 | % | |||||||||||||
| Adjusted pre-tax operating margin (6) | 17.3 | % | 19.2 | % | 13.9 | % | 18.6 | % | 13.1 | % | |||||||||||||||||||
|
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." |
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| Piper Jaffray Companies | ||||||||||||||||||||
| Reconciliation of U.S. GAAP to Selected Summary Financial Information (1) (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| Sept. 30, | June 30, | Sept. 30, | Sept. 30, | Sept. 30, | ||||||||||||||||
| (Amounts in thousands, except per share data) | 2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
| Net revenues: | ||||||||||||||||||||
| Net revenues – U.S. GAAP basis | $ | 159,426 | $ | 170,031 | $ | 128,314 | $ | 497,590 | $ | 337,619 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Revenue related to noncontrolling interests (11) | (3,576 | ) | (3,333 | ) | (3,291 | ) | (13,545 | ) | (3,861 | ) | ||||||||||
| Adjusted net revenues | $ | 155,850 | $ | 166,698 | $ | 125,023 | $ | 484,045 | $ | 333,758 | ||||||||||
| Compensation and benefits: | ||||||||||||||||||||
| Compensation and benefits – U.S. GAAP basis | $ | 97,180 | $ | 103,076 | $ | 79,426 | $ | 300,745 | $ | 210,531 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Compensation from acquisition-related agreements | (1,311 | ) | (1,416 | ) | (981 | ) | (4,016 | ) | (1,623 | ) | ||||||||||
| Adjusted compensation and benefits | $ | 95,869 | $ | 101,660 | $ | 78,445 | $ | 296,729 | $ | 208,908 | ||||||||||
| Non-compensation expenses: | ||||||||||||||||||||
| Non-compensation expenses – U.S. GAAP basis | $ | 36,554 | $ | 36,538 | $ | 36,828 | $ | 108,023 | $ | 93,527 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Non-compensation expenses related to noncontrolling interests (11) | (1,148 | ) | (1,178 | ) | (968 | ) | (3,824 | ) | (2,307 | ) | ||||||||||
| Restructuring and integration costs | — | — | (3,823 | ) | — | (3,823 | ) | |||||||||||||
| Amortization of intangible assets related to acquisitions | (2,318 | ) | (2,318 | ) | (2,899 | ) | (6,954 | ) | (6,221 | ) | ||||||||||
| Adjusted non-compensation expenses | $ | 33,088 | $ | 33,042 | $ | 29,138 | $ | 97,245 | $ | 81,176 | ||||||||||
| Income from continuing operations before income tax expense: | ||||||||||||||||||||
| Income from continuing operations before income tax expense – U.S. GAAP basis | $ | 25,692 | $ | 30,417 | $ | 12,060 | $ | 88,822 | $ | 33,561 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Revenue related to noncontrolling interests (11) | (3,576 | ) | (3,333 | ) | (3,291 | ) | (13,545 | ) | (3,861 | ) | ||||||||||
| Expenses related to noncontrolling interests (11) | 1,148 | 1,178 | 968 | 3,824 | 2,307 | |||||||||||||||
| Compensation from acquisition-related agreements | 1,311 | 1,416 | 981 | 4,016 | 1,623 | |||||||||||||||
| Restructuring and integration costs | — | — | 3,823 | — | 3,823 | |||||||||||||||
| Amortization of intangible assets related to acquisitions | 2,318 | 2,318 | 2,899 | 6,954 | 6,221 | |||||||||||||||
| Adjusted income from continuing operations before adjusted income tax expense | $ | 26,893 | $ | 31,996 | $ | 17,440 | $ | 90,071 | $ | 43,674 | ||||||||||
| Income tax expense: | ||||||||||||||||||||
| Income tax expense – U.S. GAAP basis | $ | 8,596 | $ | 10,049 | $ | 2,886 | $ | 28,472 | $ | 10,130 | ||||||||||
| Tax effect of adjustments: | ||||||||||||||||||||
| Compensation from acquisition-related agreements | 510 | 551 | 382 | 1,562 | 632 | |||||||||||||||
| Restructuring and integration costs | — | — | 1,487 | — | 1,487 | |||||||||||||||
| Amortization of intangible assets related to acquisitions | 902 | 902 | 1,039 | 2,623 | 2,331 | |||||||||||||||
| Adjusted income tax expense | $ | 10,008 | $ | 11,502 | $ | 5,794 | $ | 32,657 | $ | 14,580 | ||||||||||
| Net income from continuing operations applicable to Piper Jaffray Companies: | ||||||||||||||||||||
| Net income from continuing operations applicable to Piper Jaffray Companies – U.S. GAAP basis | $ | 14,668 | $ | 18,213 | $ | 6,851 | $ | 50,629 | $ | 21,877 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Compensation from acquisition-related agreements | 801 | 865 | 599 | 2,454 | 991 | |||||||||||||||
| Restructuring and integration costs | — | — | 2,336 | — | 2,336 | |||||||||||||||
| Amortization of intangible assets related to acquisitions | 1,416 | 1,416 | 1,860 | 4,331 | 3,890 | |||||||||||||||
| Adjusted net income from continuing operations | $ | 16,885 | $ | 20,494 | $ | 11,646 | $ | 57,414 | $ | 29,094 | ||||||||||
| Net income from continuing operations applicable to Piper Jaffray Companies' common shareholders: | ||||||||||||||||||||
| Net income from continuing operations applicable to Piper Jaffray Companies' common stockholders – U.S. GAAP basis | $ | 13,552 | $ | 16,717 | $ | 6,213 | $ | 46,386 | $ | 19,692 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Compensation from acquisition-related agreements | 740 | 794 | 543 | 2,248 | 892 | |||||||||||||||
| Restructuring and integration costs | — | — | 2,118 | — | 2,103 | |||||||||||||||
| Amortization of intangible assets related to acquisitions | 1,308 | 1,300 | 1,687 | 3,968 | 3,502 | |||||||||||||||
| Adjusted net income from continuing operations applicable to Piper Jaffray Companies' common stockholders | $ | 15,600 | $ | 18,811 | $ | 10,561 | $ | 52,602 | $ | 26,189 | ||||||||||
| Earnings per diluted common share from continuing operations: | ||||||||||||||||||||
| Earnings per diluted common share – U.S. GAAP basis | $ | 0.90 | $ | 1.11 | $ | 0.42 | $ | 3.11 | $ | 1.29 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Compensation from acquisition-related agreements | 0.05 | 0.05 | 0.04 | 0.15 | 0.06 | |||||||||||||||
| Restructuring and integration costs | — | — | 0.14 | — | 0.14 | |||||||||||||||
| Amortization of intangible assets related to acquisitions | 0.09 | 0.09 | 0.12 | 0.27 | 0.23 | |||||||||||||||
| Adjusted earnings per diluted common share from continuing operations | $ | 1.03 | $ | 1.25 | $ | 0.72 | $ | 3.52 | $ | 1.71 | ||||||||||
|
This presentation includes non-GAAP measures. The non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. |
||||||||||||||||||||
| Piper Jaffray Companies | ||||
| Notes to Non-GAAP Financial Schedules | ||||
| (1) | Selected Summary Financial Information are non-GAAP measures. Management believes that presenting results and measures on an adjusted basis in conjunction with U.S. GAAP measures provides the most meaningful basis for comparison of its operating results across periods. | |||
| (2) | A non-GAAP measure which excludes revenues related to noncontrolling interests (see (11) below). | |||
| (3) | A non-GAAP measure which excludes compensation expense from acquisition-related agreements. | |||
| (4) | A non-GAAP measure which excludes (a) non-compensation expenses related to noncontrolling interests (see (11) below), (b) restructuring and integration costs and (c) amortization of intangible assets related to acquisitions. | |||
| (5) | A non-GAAP measure which excludes (a) revenues and expenses related to noncontrolling interests (see (11) below), (b) compensation from acquisition-related agreements, (c) restructuring and integration costs and (d) amortization of intangible assets related to acquisitions. | |||
| (6) | A non-GAAP measure which represents adjusted income from continuing operations before adjusted income tax expense as a percentage of adjusted net revenues. | |||
| (7) | A non-GAAP measure which excludes the income tax benefit from (a) compensation from acquisition-related agreements, (b) restructuring and integration costs and (c) amortization of intangible assets related to acquisitions. | |||
| (8) | A non-GAAP measure which represents net income from continuing operations earned by the Company excluding (a) compensation expense from acquisition-related agreements, (b) restructuring and integration costs, (c) amortization of intangible assets related to acquisitions and (d) the income tax expense/(benefit) allocated to the adjustments. | |||
| (9) | Effective tax rate is a non-GAAP measure which is computed based on a quotient, the numerator of which is adjusted income tax expense and the denominator of which is adjusted income from continuing operations before adjusted income tax expense. | |||
| (10) | Piper Jaffray Companies calculates earnings per common share using the two-class method, which requires the allocation of consolidated adjusted net income between common shareholders and participating security holders, which in the case of Piper Jaffray Companies, represents unvested stock with dividend rights. | |||
| (11) | Noncontrolling interests include revenue and expenses from consolidated alternative asset management entities that are not attributable, either directly or indirectly, to Piper Jaffray Companies. | |||
| (12) | A non-GAAP measure which excludes (a) expenses related to noncontrolling interests (see (11) above), (b) compensation from acquisition-related agreements, (c) restructuring and integration costs and (d) amortization of intangible assets related to acquisitions. | |||
| (13) | A non-GAAP measure which excludes (a) compensation from acquisition-related agreements and (b) amortization of intangible assets related to acquisitions. | |||
Source:
Piper Jaffray
Investor Relations Contact
Tom
Smith, 612-303-6336