Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q2 2007 Earnings Presentation
24 slides from Stifel Financial's earnings presentation, Aug 10, 2007
Slide 1: 2nd Quarter 2007 Earnings Conference Call
TIFEL INANCIAL 2nd Quarter 2007 Fiscal Year Earnings Conference Call August 10, 2007
Slide 2: Forward Statements
Forward Statements This presentation may contain “forward-looking statements” that involve risks and uncertainties, including statements relating to the market opportunity and future business prospects of Stifel Financial Corp. and Stifel Nicolaus (“SF” or the “Company”). Actual results may differ m
Slide 3: 2nd Quarter Highlights
2nd Quarter Highlights ¾ Record quarterly revenue of $220.6 million, a 106% increase over the prior year second quarter. ¾ Our Private Client Group ("PCG"), and Equity Capital Markets ("ECM"), achieved record revenue and profits for the three-and six months ended June 30, 2007. ¾ Commission and prin
Slide 4: 2nd Quarter Highlights
2nd Quarter Highlights ¾ For the three and six months ended June 30, 2007, utilizing Core earnings, pretax margin was 15% for both periods and annualized return on average equity totaled 21% and 19% respectively. ¾ We closed on our previously announced acquisition of First Service Financial Company
Slide 5: Ryan Beck Update
Ryan Beck Update Page 4
Slide 6: 2nd Quarter GAAP to Core Earnings
2nd Quarter GAAP to Core Earnings Acquisition ($ in thousands) GAAP Related Core Business $ $ $ % Net Rev Revenues Net Revenues $ 210,935 $ (313) $ 211,248 100% Non-Interest Expenses Compensation and benefits 163,777 27,124 136,653 65% Operating Expenses 44,494 2,264 42,230 20% Total non-interest ex
Slide 7: Stifel Financial Quarterly Core Graphs
Net Revenue ($ millions) $250 Change from Q2 2006: +105% Stifel Financial $200 $211 Change from Q1 2007: +35% $157 Quarterly Core Graphs $150 $110 $103 $110 $130 $100 $50 $0 Q1 Q2 Q3 Q4 Net Income $19 ($ millions) Diluted EPS $20 Change from Q2 2006: +169% $1.09 Change from Q2 2006: +118% Change fro
Slide 8: YTD GAAP to Core Earnings
YTD GAAP to Core Earnings Acquisition ($ in thousands) GAAP Related Core Business $ $ $ % Net Rev Revenues Net Revenues $367,896 ($313) $368,209 100% Non-Interest Expenses Compensation and benefits $274,611 $33,286 $241,325 65% Operating Expenses $75,804 $3,403 $72,401 20% Total non-interest expense
Slide 9: Stifel Financial YTD Core Graphs
Stifel Financial YTD Core Graphs Net Revenue Net Income ($ millions) ($ millions) Diluted EPS Change from 2006: +73% Change from 2006: +77% Change from 2006: +50% $400 $368 $40 $1.96 $2.00 $32 $300 $30 $1.50 $1.33 $212 $18 $200 $20 $1.00 $100 $10 $0.50 $0 $0 $0.00 Page 8
Slide 10: Second Quarter Segment Comparison Excludes Acquisitions
Second Quarter Segment Comparison Excludes Acquisitions Net Revenues 6/30/2007 3/31/2007 6/30/2006 3/31/2007 6/30/2006 Private client $ 118,274 $ 85,527 $ 54,942 38% 115% Equity capital markets 78,410 52,530 35,311 49% 122% Fixed income capital markets 10,496 14,615 10,636 -28% -1% Banking 1,090 0 0
Slide 11: Private Client Group Quarterly Income Statements
Private Client Group Quarterly Income Statements Quarters Ended Increase/Decrease % of % of % of ($ in thousands) 06/30/07 Net Rev 03/31/07 Net Rev 06/30/06 Net Rev 03/31/07 06/30/06 Revenues Total Revenues $ 122,481 104% $ 89,005 104% $ 58,340 106% 38% 110% Interest Expense 4,207 4% 3,478 4% 3,398
Slide 12: Equity Capital Markets Quarterly Income Statements
Equity Capital Markets Quarterly Income Statements Quarters Ended Increase/Decrease % of % of % of ($ in thousands) 06/30/07 Net Rev 03/31/07 Net Rev 06/30/06 Net Rev 03/31/07 06/30/06 Revenues Total Revenues $ 78,626 100% $ 52,644 100% $ 35,386 100% 49% 122% Interest Expense 216 0% 114 0% 75 0% 89%
Slide 13: Investment Banking
Investment Banking Quarters Ended Increase/Decrease % of % of % of ($ in thousands) 06/30/07 Net Rev 03/31/07 Net Rev 06/30/06 Net Rev 03/31/07 06/30/06 Capital Raising $ 34,089 53% $ 27,263 63% $ 6,538 41% 25% 421% Advisory Fees 29,842 47% 15,803 37% 9,218 59% 89% 224% Total Investment Banking 63,9
Slide 14: Investment Banking
Investment Banking $80,000 $63,931 $60,000 $43,066 $40,000 $31,679 $19,672 $15,748 $15,757 $20,000 $0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Capital Raising Advisory Fees $40,000 $40,000 $34,089 $29,842 $30,000 $27,263 $30,000 $21,794 $20,000 $20,000 $15,803 $10,485 $10,537 $9,187 $9,885 $9,218 $10,000 $6,
Slide 15: Investment Banking ($ millions)
Investment Banking ($ millions) $70 $64 $60 $50 $43 $40 $32 $30 $20 $16 $16 $20 $10 $0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Capital Raising ($ millions) Advisory Fees ($ millions) $35 $30 $34.1 $29.8 $30 $27.3 $25 $25 $21.8 $20 $15.8 $20 $15 $15 $10.5 $9.2 $9.2 $9.9 $10.5 $10 $10 $6.5 $5.2 $5 $5 $0 $0 1s
Slide 16: Fixed Income Capital Markets Quarterly Income Statements
Fixed Income Capital Markets Quarterly Income Statements Quarters Ended Increase/Decrease % of % of % of ($ in thousands) 06/30/07 Net Rev 03/31/07 Net Rev 06/30/06 Net Rev 03/31/07 06/30/06 Revenues Total Revenues $ 18,901 180% $ 21,245 145% $ 15,444 145% -11% 22% Interest Expense 8,405 80% 6,630 4
Slide 17: Banking Segment Quarterly Income Statements
Banking Segment Quarterly Income Statements Quarters Ended Increase/Decrease % of % of % of ($ in thousands) 06/30/07 Net Rev 03/31/07 Net Rev 06/30/06 Net Rev 03/31/07 06/30/06 Revenues Total Revenues $ 2,728 250% $ - na $ - na na na Interest Expense 1,638 150% - na - na na na Net Revenues 1,090 10
Slide 18: Other Segment Analysis
Other Segment Analysis 3 Months Ended 6 Months Ended Net Revenues 6/30/2007 6/30/2006 6/30/2007 6/30/2006 Acquisition Related Other (313) (152) (313) (152) Other 2,978 1,930 7,267 10,139 Total net revenues $ 2,665 $ 1,778 $ 6,954 $ 9,987 Operating Contribution Acquisition Related Other (29,701) (8,4
Slide 19: Quarterly Income Statement Impact
Quarterly Income Statement Impact Actual Actual Estimated Estimated Full Year Q1 2007 Q2 2007 Q3 2007 Q4 2007 2007 Acquisiton Related Expenses ($ in thousands) LM Capital Markets Acquisition $ 6,162 $ 5,544 $ 6,250 $ 6,250 $ 24,206 Ryan Beck Acquisition 1,138 24,158 (1) 2,000 1,000 28,296 Total non-
Slide 20: Annual Income Statement Impact
Annual Income Statement Impact FY 2006A FY 2007E FY 2008E FY 2009E Total ($ in thousands) Legg Mason Acquisition Charges . . . . . . . . . . . $ 41,389 $ 24,206 $ 25,000 $ - $ 90,595 Ryan Beck Acquisition Charges . . . . . . . . . . . . - 28,296 - - 28,296 Pre Tax Acquisition Charges . . . . . . . .
Slide 21: Stifel Financial Balance Sheet Graphs
Total Assets ($ millions) $1,800 $1,634 Stifel Financial $1,500 Balance Sheet Graphs $1,200 $842 $1,085 $900 $600 $423 $412 $382 $300 $0 2002 2003 2004 2005 2006 Q2 2007 Total Shareholder’s Equity ($ millions) Book Value Per Share $388 $400 $30 $26.04 $300 $18.53 $220 $20 $13.53 $15.31 $200 $155 $10
Slide 22: Equity Roll Forward
Equity Roll Forward ($ in thousands) Beginning Equity 12/31/06 $220,265 Earnings 10,277 Subtotal 230,542 Stock Based Compensation 22,811 Ryan Beck Deferred Units 16,405 Ryan Beck 119,424 Treasury Buy Back (941) Ending Equity 6/30/07 $388,241 Page 21
Slide 23: Other Financial Data
Other Financial Data Quarterly Data % Change vs vs Other Data 6/30/2007 3/31/2007 6/30/2006 Q1 2007 Q2 2006 Total Assets (000's) $ 1,633,756 $ 1,427,407 $ 1,060,953 14% 54% Stockholders Equity (000's) $ 388,241 $ 342,641 $ 205,440 13% 89% Book value Per Share $26.04 $23.16 $17.57 12% 48% Financial A
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