Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q1 2008 Earnings Presentation
19 slides from Stifel Financial's earnings presentation, May 12, 2008
Slide 1: 1st Quarter 2008 Earnings Conference Call
TIFEL INANCIAL 1st Quarter 2008 Fiscal Year Earnings Conference Call May 12, 2008
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: Business Highlights
Business Highlights ¾ Net revenue of $211.5 million a 35% increase over the prior year first quarter and down slightly from the fourth quarter 2007. ¾ GAAP net income of $14.3 million, or $0.81 per diluted share, a 62% increase over the prior year first quarter and a 4% increase from the fourth quar
Slide 4: Stifel Income Statements: Core Revenues
Stifel Income Statements Core Revenues Quarters Ended % Change ($ in thousands) 3/31/08 12/31/07 3/31/07 12/31/07 3/31/07 Revenues Commissions $ 85,701 $ 90,584 $ 61,376 -5% 40% Principal Transactions 66,937 47,638 26,566 41% 152% Investment Banking 21,844 31,445 43,066 -31% -49% Asset Management an
Slide 5: Stifel Income Statements
Stifel Income Statements Quarters Ended % Change ($ in thousands) 3/31/08 12/31/07 3/31/07 12/31/07 3/31/07 Net Revenues $ 211,477 $ 212,160 $ 156,961 0% 35% Compensation and Benefits 139,732 133,018 104,672 5% 33% Non-Comp Operating Expenses 41,189 46,175 30,172 -11% 37% Total non-interest expenses
Slide 6: Segment Comparison Excluding Acquisitions
Segment Comparison Excluding Acquisitions ($ in thousands) Quarters Ended % Change Net Revenues 3/31/08 12/31/07 3/31/07 12/31/07 3/31/07 Private Client $ 114,853 $ 119,260 $ 85,527 -4% 34% Equity Capital Markets 49,228 59,421 52,530 -17% -6% Fixed Income Capital Markets 44,002 23,794 14,615 85% 201
Slide 7: Private Client Group Segment Income Statements
Private Client Group Segment Income Statements Quarters Ended % Change ($ in thousands) 3/31/08 12/31/07 3/31/07 12/31/07 3/31/07 Commissions and principal transactions $ 77,952 $ 81,929 $ 51,730 -5% 51% Investment banking 4,103 4,705 12,288 -13% -67% Asset management and service fees 30,147 29,578
Slide 8: Equity Capital Markets Segment Income Statements
Equity Capital Markets Segment Income Statements Quarters Ended % Change ($ in thousands) 3/31/2008 12/31/2007 3/31/2007 12/31/2007 3/31/2007 Commissions and principal transactions $34,654 $35,100 $24,621 -1% 41% Capital raising 6,758 7,850 11,828 -14% -43% Advisory fees 7,509 16,322 15,654 -54% -52
Slide 9: Fixed Income Capital Markets Segment Income Statements
Fixed Income Capital Markets Segment Income Statements Quarters Ended % Change ($ in thousands) 3/31/08 12/31/07 3/31/07 12/31/07 3/31/07 Commissions and principal transactions $40,033 $21,225 $11,592 89% 245% Investment banking 3,474 2,571 3,296 35% 5% Other 495 (2) (273) n/a n/a Net Revenues 44,00
Slide 10: Stifel Bank Segment Income Statements
Stifel Bank Segment Income Statements Quarters Ended ($ in thousands) 3/31/08 12/31/07 % Change Revenues Interest $ 3,551 $ 3,625 -2% Other 247 238 4% Total Revenues 3,798 3,863 -2% Less: Interest expense 1,716 1,992 -14% Net Revenues 2,082 1,871 11% Compensation and Benefits 759 749 1% Non-Comp Ope
Slide 11: Other Segment Analysis
Other Segment Analysis ($ in thousands) 3 Months Ended Net Revenues 3/31/2008 3/31/2007 Acquisition Related Other $ - $ - Other 1,312 4,289 Total net revenues $ 1,312 $ 4,289 Operating Contribution Acquisition Related Other $ (6,631) $ (7,300) Other (17,198) (11,279) Total Operating Contribution $ (
Slide 12: Reconciliation of GAAP to Core Earnings
Reconciliation of GAAP to Core Earnings Page 11
Slide 13: GAAP to Core Earnings
GAAP to Core Earnings Quarter Ended 3/31/08 Quarter Ended 3/31/07 Core Acquisition Core Acquisition ($ in thousands) Business Related GAAP Business Related GAAP Revenues Net Revenues $ 211,477 $ - $ 211,477 $ 156,961 $ - $ 156,961 Non-Interest Expenses Compensation and benefits 139,732 6,298 146,030
Slide 14: Annual Income Statement Impact
Annual Income Statement Impact FY 2006A FY 2007A FY 2008E FY 2009E Total Acquisiton Related Expenses ($ in thousands) Legg Mason Acquisition Charges . . . . . . . . . . . $ 41,371 $ 25,082 $ 25,056 $ - $ 91,508 Ryan Beck Acquisition Charges . . . . . . . . . . . . - 31,693 1,000 - 32,693 Pre Tax Acq
Slide 15: Quarterly Income Statement Impact
Quarterly Income Statement Impact Actual Estimated Estimated Estimated Full Year Q1 2008 Q2 2008 Q3 2008 Q4 2008 2008 Acquisiton Related Expenses ($ in thousands) LM Capital Markets Acquisition $ 6,306 $ 6,250 $ 6,250 $ 6,250 $ 25,056 Ryan Beck Acquisition 325 225 225 225 1,000 Total non-interest ex
Slide 16: Stifel Financial Balance Sheet Graphs
Total Assets ($ millions) $1,499 $1,613 $1,800 Stifel Financial $1,500 Balance Sheet Graphs $1,200 $842 $1,085 $900 $600 $423 $412 $382 $300 Total Capitalization ($ millions) (1) $0 2002 2003 2004 2005 2006 2007 2008 $600 $520 $532 $95 $95 Book Value Per Share$28.07 $30 $27.54 $400 $290 $225 $166 $7
Slide 17: Capital Structure
Capital Structure ($ in thousands) 3/31/2008 Total Assets $ 1,613,215 Stockholders' Equity $ 437,038 Debentures to: Stifel Financial Capital Trust II - LIBOR plus 1.70% (fixed at 6.38% until 9/30/10), due 9/30/35 $ 35,000 Stifel Financial Capital Trust III - LIBOR plus 1.85% (fixed at 6.79% until 6/
Slide 18: Other Financial Data
Other Financial Data Quarterly Data % Change vs vs Other Data 3/31/2008 12/31/2007 3/31/2007 12/31/2007 3/31/2007 Total Assets (000's) $ 1,613,215 $ 1,499,440 $ 1,427,407 8% 13% Stockholders Equity (000's) $ 437,038 $ 424,637 $ 342,641 3% 28% Book value Per Share $28.07 $27.54 $23.16 2% 21% Financia
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