Oppenheimer Holdings, Inc. · NYSE:OPY
Oppenheimer — Q1 2016 Earnings Presentation
15 slides from Oppenheimer's earnings presentation, April 2016
Slide 1: Oppenheimer Holdings Inc. Investor Presentation 1Q-16
OPPENHEIMER HOLDINGS INC. INVESTOR PRESENTATION 1Q-16 Presented by: Robert Lowenthal Senior Managing Director, Chairman of Management Committee Jeffrey Alfano Executive Vice President & Chief Financial Officer
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation and other written or oral statements made from time to time by representatives of Oppenheimer Holdings Inc. (the “company”) may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
Slide 3: Overview
OVERVIEW Oppenheimer is a leading investment bank and full-service investment firm that provides financial services and advice to high net worth investors, individuals, businesses and institutions. Wealth Commercial Mortgage Capital Markets Management Banking Private client services and Investment b
Slide 4: Current Environment
CURRENT ENVIRONMENT Global Economic growth – weakness in China’s economy Decline in oil and other commodity prices Interest rate environment Politics (U.S. Presidential Election 2016) Industry Regulatory landscape Department of Labor Conflicts of Interest Final Rule Fintech revolution
Slide 5: Our Cultural Values
OUR CULTURAL VALUES “Our core values and our culture are the most important and enduring strength of this firm. As we stay true to our principles, always doing what is right and best for our clients, then in the best and worst of times, we can feel justly proud of our efforts. As we make the changes
Slide 6: Our Business Principles
OUR BUSINESS PRINCIPLES Client Focus Deeply committed to our clients and offer the same level of service to investors of all sizes Tailored Advice Recommendations for each client are tailored and based on a deep-seeded knowledge of individual goals Trust Our track record demonstrates a commitment to
Slide 7: Investing in Talent & Leadership
INVESTING IN TALENT & LEADERSHIP Recruiting & Growth Key Initiatives Changed leadership in Private Client Internship and Training Program Division Next Generation Program 14 new branch managers in the past year Recalibrate expectations of financial “Oppenheimer University” advisers Pro
Slide 8: Technology Investments
TECHNOLOGY INVESTMENTS Made substantial investments in technology to satisfy regulatory and compliance needs as well as to better service our clients – New platform for all investment advisory programs – Launched new mobile application – Implemented systems to improve surveillance capabilities – Enh
Slide 9: Let's Look at Our Results
LET’S LOOK AT OUR RESULTS Snapshot Shareholders' Equity at 3/31/16 (‘000s) $516,346 Book-value at 3/31/16 $38.12 Tangible Book-value at 3/31/16 $25.43 Market Cap at 4/27/16 (‘000s) $216,594 Share Price at 4/27/16 $16.30 TTM 1Q-16Revenue (‘000s) $901,518 Business Segment Results TTM 1Q-16 Total Reven
Slide 10: Financial Results Continued
FINANCIAL RESULTS CONTINUED Gross Revenue ($M) $1,040 $1,020 $1,000 $980 $960 $940 $920 $900 $880 $860 $840 2011 2012 2013 2014 2015 TTM 3‐31‐16 Net Income/(Loss) $30,000 ($ thousands) $25,000 $20,000 $15,000 $10,000 $5,000 $‐ $(5,000) $(10,000) 2011 2012 2013 2014 2015 TTM 3‐31‐16 Net Income $10,31
Slide 11: Capital Structure as of March 31, 2016
CAPITAL STRUCTURE AS OF MARCH 31, 2016 Conservative Risk Profile Capital Structure ($ in thousands) March 31, 2016 Straight-forward balance sheet Total Assets: $2,620,864 Level 3 assets represent 3.8% of total assets (primarily ARS) Stockholders’ Equity: $516,346 Long-Term Debt: $150,000 Regul
Slide 12: Select Financial Measures
SELECT FINANCIAL MEASURES Pretax Margin (%) ROE 6.0% 6.0% 4.3% 4.8% 4.0% 2.6% 1.9% 4.0% 2.0% 0.7% 0.0% 2.0% 2.0% 1.7% -0.1% -2.0% 0.4% 0.0% -4.0% -3.7% -0.7% -6.0% -2.0% -1.5% 2011 2012 2013 2014 2015 TTM 1Q-16 2011 2012 2013 2014 2015 TTM 1Q-16 Book Value Earnings per Share ($) $45 $ 38.77 $ 38.71
Slide 13: We Continue to Address the ARS Matter
WE CONTINUE TO ADDRESS THE ARS MATTER ARS Holdings $3.0 $2.79 Client ($B) Company ($M) $100.0 $91.4 $85.1 $86.8 $84.2 $2.5 $90.0 $80.0 $68.2 $72.0 $2.0 $70.0 $60.0 $1.5 $1.30 $50.0 $0.85 $40.0 $35.9 $1.0 $0.58 $30.0 $0.5 $0.30 $0.24 $0.194 $20.0 $0.167 $0.152 $5.3 $4.5 $10.0 $0.0 $0.0 Auction Rate
Slide 14: Positioned Well for a Rising Interest Rate Environment
POSITIONED WELL FOR A RISING INTEREST RATE ENVIRONMENT Cash Sweep Low interest rates have had significant Balances* ($M) impact on interest and fee revenues 9,000 8,000 Gross interest revenues down 7,000 6,000 approximately $74M annually since 5,000 2010 due to low interest rates 4,000 3,000 F
Slide 15: Thank You For Your Time
THANK YOU FOR YOUR TIME (_)PPENHEIMER