Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q1 2007 Earnings Presentation
28 slides from Stifel Financial's earnings presentation, May 15, 2007
Slide 1: 1st Quarter 2007 Earnings Conference Call
TIFEL INANCIAL 1st Quarter 2007 Fiscal Year Earnings Conference Call May 15, 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: 1st Quarter Update 2007
1st Quarter Update 2007 Page 2
Slide 4: 1st Quarter Highlights
1st Quarter Highlights ¾ Record quarterly revenue of $162.5 million, a 43% increase over the prior year first quarter. ¾ Our Private Client Group ("PCG"), and Equity Capital Markets ("ECM"), achieved record revenue and profits for the three- months ended March 31, 2007. ¾ Commission and principal tr
Slide 5: 1st Quarter Highlights
1st Quarter Highlights ¾ For the three months ended March 31, 2007, utilizing Core earnings, pretax margin was 14% and annualized return on average equity totaled 21%. ¾ We closed on the acquisition of Ryan Beck & Company from BankAtlantic Bancorp Inc. on February 28, 2007 adding 400 financial advis
Slide 6: Stifel Financial Core Total Revenues
Stifel Financial Core Total Revenues ($ Millions) $800 $800 $600 $471 $400 $251 $270 $222 $194 $162 $200 $0 2002 2004 2006 Annualized(1) (1) Annualized represents Stifel Financial Corp and Ryan Beck based on three months ended March 31, 2007. Page 5
Slide 7: Ryan Beck Update
Ryan Beck Update Page 6
Slide 8: 1st Quarter GAAP to Core Earnings
1st Quarter GAAP to Core Earnings Acquisition ($ in thousands) GAAP Related Core Business $ $ $ % Net Rev Revenues Net Revenues $ 156,961 $ - $ 156,961 100% Non-Interest Expenses Compensation and benefits 110,834 6,162 104,672 67% Operating Expenses 31,310 1,138 30,172 19% Total non-interest expense
Slide 9: Stifel Financial Core Net Revenues by Quarter
Stifel Financial Core Net Revenues by Quarter ($ Millions) $180 +43% $157 $160 $140 $130 $120 $110 $110 $103 $100 $80 Q1 Q2 Q3 Q4 2006 2007 Page 8
Slide 10: Stifel Financial Core Net Income by Quarter
Stifel Financial Core Net Income by Quarter ($ Thousands) $16,000 ** Included in 2006 Core earnings is $2.1 million after tax or $0.16 per diluted share for the gain on the Company’s New York Stock Exchange membership seat. $13,179 $11,867 $11,104 $12,000 $9,621 $2,100 $6,998 $8,000 $4,000 Q1 Q2 Q3
Slide 11: Stifel Financial Core Diluted EPS by Quarter
Stifel Financial Core Diluted EPS by Quarter $1.00 ** Included in 2006 Core earnings is $2.1 million after tax or $0.16 per diluted share for the gain on the Company’s New York Stock Exchange membership seat. $0.83 $0.86 $0.84 $0.80 $0.16 $0.69 $0.60 $0.50 $0.40 Q1 Q2 Q3 Q4 2006 2007 Page 10
Slide 12: Segment Update
Segment Update Page 11
Slide 13: 1st Quarter Core Segment Comparison
1st Quarter Core Segment Comparison ($ in thousands) Three M onths Ended Percent Change From Net Revenues 3/31/2007 12/31/2006 3/31/2006 12/31/2006 3/31/2006 Private client $ 85,527 $ 63,990 $ 55,684 34% 54% Equity capital markets 52,530 44,152 33,798 19% 55% Fixed income capital markets 14,615 17,6
Slide 14: Private Client Group Quarterly Income Statements
Private Client Group Quarterly Income Statements Quarters Ended Increase/Decreas e % of % of % of ($ in thousands) 03/31/07 Net Rev 12/31/06 Net Rev 03/31/06 Net Rev 12/31/06 03/31/06 Revenues Total Revenues $ 89,005 104% $ 67,434 105% $ 58,376 105% 32% 52% Interest Expense 3,478 4% 3,444 5% 2,692 5
Slide 15: Equity Capital Markets Quarterly Income Statements
Equity Capital Markets Quarterly Income Statements Quarters Ended Increase/Decrease % of % of % of ($ in thousands) 03/31/07 Net Rev 12/31/06 Net Rev 03/31/06 Net Rev 12/31/06 03/31/06 Revenues Total Revenues $ 52,644 100% $ 44,220 100% $ 33,854 100% 19% 56% Interest Expense 114 0% 68 0% 56 0% 68% 1
Slide 16: Investment Banking
Investment Banking Quarterly ($ in thousands) 03/31/07 % 03/31/06 % % Change Capital Raising $ 27,263 63% $ 5,211 33% 423% Advisory Fees 15,803 37% 10,537 67% 50% Total Investment Banking $ 43,066 100% $ 15,748 100% 173% Page 15
Slide 17: Investment Banking Capital Raising
Investment Banking Capital Raising $30,000 $27,263 $25,000 $21,794 $20,000 $15,000 $10,485 $10,000 $6,538 $5,211 $5,000 $0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 2006 2007 Page 16
Slide 18: Fixed Income Capital Markets Quarterly Income Statements
Fixed Income Capital Markets Quarterly Income Statements Quarters Ended Increase/Decrease % of % of % of ($ in thousands) 03/31/07 Net Rev 12/31/06 Net Rev 03/31/06 Net Rev 12/31/06 03/31/06 Revenues Total Revenues $ 21,245 145% $ 24,194 137% $ 14,311 121% -12% 48% Interest Expense 6,630 45% 6,558 3
Slide 19: Other Financial Data
Other Financial Data Quarterly Data % Change vs vs Other Data 3/31/2007 12/31/2006 3/31/2006 Q4 2006 Q1 2006 Total Assets (000's) $ 1,427,407 $ 1,080,723 $ 891,043 32% 60% Stockholders Equity (000's) $ 342,641 $ 220,264 $ 196,275 56% 75% Book value Per Share $23.16 $18.53 $16.77 25% 38% Financial Ad
Slide 20: Non Core Expense Analysis
Non Core Expense Analysis Page 19
Slide 21: Quarterly Income Statement Impact
Quarterly Income Statement Impact Actual Estimated Estimated Estimated Full Year Q1 2007 Q2 2007 Q3 2007 Q4 2007 2007 Acquisiton Related Expenses ($ in thousands) LM Capital Markets Acquisition $ 6,162 $ 6,162 $ 6,162 $ 6,162 $ 24,648 Ryan Beck Acquisition 1,138 18,000 (1) 500 500 20,138 Total non-i
Slide 22: Annual Income Statement Impact
Annual Income Statement Impact FY 2006A FY 2007E FY 2008E FY 2009E Total ($ in thousands) Legg Mas on Acquis ition Charges . . . . . . . . . . . $ 41,389 $ 24,648 $ 25,000 $ - $ 91,037 Ryan Beck Acquis ition Charges . . . . . . . . . . . . - 20,138 - - 20,138 Pre Tax A cquisition Charges . . . . . .
Slide 23: Balance Sheet
Balance Sheet Page 22
Slide 24: Stifel Financial Total Assets
Stifel Financial Total Assets ($ Millions) $1,423 $1,500 $1,200 $1,085 $842 $900 $600 $423 $412 $382 $300 $0 2002 2003 2004 2005 2006 Q1 2007 Page 23
Slide 25: Stifel Financial Total Shareholder's Equity
Stifel Financial Total Shareholder’s Equity ($ Millions) $400 $343 $300 $220 $200 $155 $131 $100 $80 $100 $0 2002 2003 2004 2005 2006 Q1 2007 Page 24
Slide 26: Equity Roll Forward
Equity Roll Forward ($ in thousands) Beginning Equity 12/31/06 $220,265 Earnings 8,829 Subtotal 229,094 Unit Amortization/Options/ESOP 12,125 Ryan Beck 102,529 Treasury Buy Back (1,107) Ending Equity 3/31/07 $342,641 Page 25
Slide 27: Stifel Financial Book Value Per Share
Stifel Financial Book Value Per Share $23.16 $25 $18.53 $20 $15.31 $13.53 $15 $10.85 $8.86 $10 $5 $0 2002 2003 2004 2005 2006 Q1 2007 Page 26
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