Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q3 2007 Earnings Presentation
21 slides from Stifel Financial's earnings presentation, Nov 5, 2007
Slide 1: 3rd Quarter 2007 Earnings Conference Call
TIFEL INANCIAL 3rd Quarter 2007 Fiscal Year Earnings Conference Call November 5, 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: 3rd Quarter Highlights
3rd Quarter Highlights ¾ Quarterly revenue of $190.8 million, a 66% increase over the prior year third quarter. Nine month revenue of $574.0 million, a 71% increase for the nine months as compared to 2006. ¾ Quarterly Core net income of $14.3 million, or $0.80 per diluted share, a 48% over the prior
Slide 4: Stifel Income Statements
Stifel Income Statements Quarters Ended % Change YTD % Change ($ in thousands) 09/30/07 06/30/07 09/30/06 06/30/07 09/30/06 09/30/07 09/30/06 Net Revenues 183,000 211,248 109,817 -13% 67% 551,209 322,170 71% Compensation and Benefits 119,566 136,653 70,412 -13% 70% 360,891 206,224 75% Non-Comp Opera
Slide 5: Segment Comparison Excluding Acquisitions
Segment Comparison Excluding Acquisitions Quarters Ended % Change YTD % Change Net Revenues 09/30/07 06/30/07 09/30/06 06/30/07 09/30/06 09/30/07 09/30/06 Private Client 112,650 118,274 56,461 -5% 100% 316,451 167,461 89% Equity Capital Markets 47,703 78,410 36,692 -39% 30% 178,643 105,801 69% Fixed
Slide 6: Private Client Group Income Statements
Private Client Group Income Statements Quarters Ended % Change YTD % Change ($ in thousands) 09/30/07 06/30/07 09/30/06 06/30/07 09/30/06 09/30/07 09/30/06 Net Revenues 112,650 118,274 56,461 -5% 100% 316,451 167,461 89% Compensation and Benefits 72,177 74,831 34,704 -4% 108% 201,964 104,625 93% Non
Slide 7: Equity Capital Markets Income Statements
Equity Capital Markets Income Statements Quarters Ended % Change YTD % Change ($ in thousands) 09/30/07 06/30/07 09/30/06 06/30/07 09/30/06 09/30/07 09/30/06 Net Revenues 47,703 78,410 36,692 -39% 30% 178,643 105,801 69% Compensation and Benefits 28,235 46,495 20,898 -39% 35% 105,619 59,862 76% Non-
Slide 8: Equity Capital Markets Revenue Composition
Equity Capital Markets Revenue Composition Quarters Ended % Change YTD % Change ($ in thousands) 09/30/07 06/30/07 09/30/06 06/30/07 09/30/06 09/30/07 09/30/06 Flow Business 31,020 29,463 22,074 5% 41% 85,104 66,429 28% Capital Raising 6,524 19,169 5,276 -66% 24% 37,521 9,479 296% Advisory Fee 10,13
Slide 9: Fixed Income Capital Markets Income Statements
Fixed Income Capital Markets Income Statements Quarters Ended % Change YTD % Change ($ in thousands) 09/30/07 06/30/07 09/30/06 06/30/07 09/30/06 09/30/07 09/30/06 Net Revenues 15,962 10,496 13,829 52% 15% 41,073 35,934 14% Compensation and Benefits 10,576 7,893 8,320 34% 27% 28,623 22,525 27% Non-C
Slide 10: Fixed Income Capital Markets Revenue Composition
Fixed Income Capital Markets Revenue Composition Quarters Ended % Change YTD % Change ($ in thousands) 09/30/07 06/30/07 09/30/06 06/30/07 09/30/06 09/30/07 09/30/06 Flow Business 11,840 8,507 11,412 39% 4% 31,939 30,164 6% Capital Raising 3,086 2,183 2,558 41% 21% 8,425 5,278 60% Advisory Fee 1,155
Slide 11: Banking Segment Income Statements
Banking Segment Income Statements Quarters Ended % Change YTD % Change ($ in thousands) 09/30/07 06/30/07 09/30/06 06/30/07 09/30/06 09/30/07 09/30/06 Net Revenues 1,839 1,090 - 69% n/a 2,929 - n/a Compensation and Benefits 516 348 - 48% n/a 863 - n/a Non-Comp Operating Expenses 954 468 - 104% n/a 1
Slide 12: Other Segment Analysis
Other Segment Analysis 3 Months Ended 9 Months Ended Net Revenues 9/30/2007 9/30/2006 9/30/2007 9/30/2006 Acquisition Related Other (17) (1) (330) (153) Other 4,846 2,835 12,113 12,974 Total net revenues $ 4,829 $ 2,834 $ 11,783 $ 12,821 Operating Contribution Acquisition Related Other (9,899) (7,26
Slide 13: Reconciliation of GAAP to Core Earnings
Reconciliation of GAAP to Core Earnings Page 12
Slide 14: GAAP to Core Earnings
GAAP to Core Earnings Quarter Ended 9/30/07 Nine M onths Ended 9/30/07 Acquisition Core Acquisition Core ($ in thousands) GAAP Related Business GAAP Related Business Revenues Net Revenues $ 182,983 $ (17) $ 183,000 $ 550,879 $ (330) $ 551,209 Non-Interest Expenses Compensation and benefits 126,652 7
Slide 15: Quarterly Income Statement Impact
Quarterly Income Statement Impact Actual Actual Actual Estimated Full Year Q1 2007 Q2 2007 Q3 2007 YTD Q4 2007 2007 Acquisiton Related Expenses ($ in thousands) LM Capital Markets Acquisition . . . . . . . $ 6,202 $ 5,544 $ 6,653 $ 18,399 $ 6,601 $ 25,000 (1) Ryan Beck Acquisition . . . . . . . . .
Slide 16: Annual Income Statement Impact
Annual Income Statement Impact FY 2006A FY 2007E FY 2008E FY 2009E Total Acquisiton Related Expenses ($ in thousands) Legg Mason Acquisition Charges . . . . . . . . . . . $ 41,389 $ 25,000 $ 25,000 $ - $ 91,389 Ryan Beck Acquisition Charges . . . . . . . . . . . . - 31,502 - - 31,502 Pre Tax Acquisi
Slide 17: Stifel Financial Balance Sheet Graphs
Total Assets ($ millions) $1,800 $1,518 Stifel Financial $1,500 Balance Sheet Graphs $1,200 $842 $1,085 $900 $600 $423 $412 $382 $300 $0 2002 2003 2004 2005 2006 Q3 2007 Total Shareholder’s Equity ($ millions) Book Value Per Share $450 $407 $30 $27.12 $18.53 $300 $20 $220 $13.53 $15.31 $10.85 $131 $
Slide 18: Equity Roll Forward
Equity Roll Forward ($ in thousands) Beginning Equity 12/31/06 $220,265 Earnings 18,335 Subtotal 238,600 Stock Based Compensation 34,689 Ryan Beck Deferred Units 16,405 Ryan Beck 119,424 Treasury Buy Back (2,472) Ending Equity 9/30/07 $406,646 Page 17
Slide 19: Capital Structure
Capital Structure ($ in thousands) Total Assets $1,518,186 Stockholders' Equity $406,646 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 6/6/12), due 6/
Slide 20: Other Financial Data
Other Financial Data Qua rte rly Da ta % Cha nge vs vs Othe r Da ta 9/30/2007 6/30/2007 9/30/2006 Q2 2007 Q3 2006 Total Assets (000's) $ 1,518,186 $ 1,633,756 $ 1,137,545 -7% 33% Stockholders Equity (000's) $ 406,646 $ 388,241 $ 210,694 5% 93% Book value Per Share $27.12 $26.04 $18.39 4% 47% Financi
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