Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q2 2008 Earnings Presentation
21 slides from Stifel Financial's earnings presentation, Aug 12, 2008
Slide 1: 2nd Quarter 2008 Earnings Conference Call
TIFEL INANCIAL 2nd Quarter 2008 Fiscal Year Earnings Conference Call August 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: Quarter Business Highlights
Quarter Business Highlights ¾ Net revenues of $209.0 million, down slightly from the prior year second quarter and the first quarter of 2008. ¾ GAAP net income of $12.3 million, or $0.45 per diluted share, a 752% increase over the prior year second quarter and a 14% decrease from the first quarter 2
Slide 4: YTD Business Highlights
YTD Business Highlights ¾ Net revenues of $420.4 million, a 14% increase for the six months as compared to 2007. ¾ GAAP net income of $26.7 million, or $0.99 per diluted share, a 160% increase for the six months as compared to 2007. ¾ Book value per common share increased to $19.75 as of June 30, 20
Slide 5: Recent Growth
Recent Growth Business Units # Private Client Group New Financial Advisors . . . . . . . . . . . . . . . . . . . . . . . . 89 New Offices Opened . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Equity Capital Markets Equity Sales & Trading Professionals . . . . . . . . . . . . . 21 Investment
Slide 6: Stifel Income Statements
Stifel Income Statements Quarters Ended % Change YTD % Change ($ in thousands) 6/30/08 3/31/08 6/30/07 3/31/08 6/30/07 6/30/08 6/30/07 Core Net Revenues $ 208,951 $ 211,477 $ 211,248 -1% -1% $ 420,428 $ 368,209 14% Compensation and Benefits 138,428 139,733 136,653 -1% 1% 278,161 241,325 15% Non-Comp
Slide 7: Source of Revenues
Source of Revenues Three Months Ended Percent Change From Six Months Ended % o f Net % o f Net % o f Net % o f Net % o f Net % ($ in thousands) 6/30/08 Revenues 3/31/08 Revenues 6/30/07 Revenues 3/31/08 6/30/07 6/30/08 Revenues 6/30/07 Revenues Change Revenues Commissions $ 83,063 39.8% $ 85,701 40.
Slide 8: Segment Comparison Excluding Acquisitions
Segment Comparison Excluding Acquisitions Quarters Ended % Change YTD % Change Net Revenues 6/30/08 3/31/08 6/30/07 3/31/08 6/30/07 6/30/08 6/30/07 Private Client $ 120,999 $ 114,853 $ 118,274 5% 2% $ 235,852 $ 203,801 16% Equity Capital Markets 48,011 48,228 78,410 0% -39% 97,239 130,940 -26% Fixed
Slide 9: Private Client Group Income Statements
Private Client Group Income Statements Quarters Ended % Change YTD % Change ($ in thousands) 6/30/08 3/31/08 6/30/07 3/31/08 6/30/07 6/30/08 6/30/07 Re ve nue s: Commissions and principal transactions $ 81,540 $ 77,952 $ 75,925 5% 7% $ 159,492 $ 127,654 25% Investment banking 6,216 4,103 13,010 51%
Slide 10: Equity Capital Markets Income Statements
Equity Capital Markets Income Statements Quarters Ended % Change YTD % Change ($ in thousands) 6/30/08 3/31/08 6/30/07 3/31/08 6/30/07 6/30/08 6/30/07 Revenues: Commissions and principal transactions $ 35,880 $ 34,654 $ 29,463 4% 22% $ 70,534 $ 54,085 30% Capital raising 4,559 6,758 19,168 -33% -76%
Slide 11: Fixed Income Capital Markets Income Statements
Fixed Income Capital Markets Income Statements Quarters Ended % Change YTD % Change ($ in thousands) 6/30/08 3/31/08 6/30/07 3/31/08 6/30/07 6/30/08 6/30/07 Re ve nues: Commissions & principal transactions $ 31,317 $ 40,033 $ 8,507 -22% 268% $ 71,349 $ 20,098 255% Investment banking 2,851 3,474 2,53
Slide 12: Stifel Bank
Stifel Bank Quarters Ended % Change YTD % Change ($ in thousands) 6/30/08 3/31/08 6/30/07 3/31/08 6/30/07 6/30/08 6/30/07 Re ve nue s: Interest $ 3,811 $ 3,551 $ 2,592 7% 47% $ 7,362 $ 2,592 184% Other 862 247 136 249% 535% 1,109 136 715% T otal Revenues 4,673 3,798 2,728 23% 71% 8,471 2,728 211% Le
Slide 13: Other Segment Analysis
Other Segment Analysis Quarters Ended % Change YTD % Change ($ in thousands) 6/30/08 3/31/08 6/30/07 3/31/08 6/30/07 6/30/08 6/30/07 Net Revenues Acquisition Related Other $ - $ - $ (313) n/a n/a $ - $ (313) n/a Other 1,995 1,312 2,978 52.1% -33.0% 3,307 7,267 -54.5% Total Net Revenues 1,995 1,312 2
Slide 14: Reconciliation of GAAP to Core Earnings
Reconciliation of GAAP to Core Earnings Page 13
Slide 15: GAAP to Core Earnings
GAAP to Core Earnings Quarters Ended % Change YTD % Change ($ in thousands) 6/30/08 3/31/08 6/30/07 3/31/08 6/30/07 6/30/08 6/30/07 Core Net Income $ 16,319 $ 18,318 $ 18,851 -11% -13% $ 34,637 $ 32,031 8% Acquisiton Related Expenses-net of tax LM Capital Markets Acquisition (3,905) (3,776) (3,248)
Slide 16: Income Statement Impact
Income Statement Impact Estimated Actual Actual Estimated Estimated Full Year Q1 2008 Q2 2008 Q3 2008 Q4 2008 2008 2009 Acquisiton Related Expenses ($ in thousands) LM Capital Markets Acquisition $ 6,306 $ 6,380 $ 6,250 $ 6,250 $ 25,186 $ - Ryan Beck Acquisition 325 134 250 250 959 - Pre Tax Acquisi
Slide 17: Stifel Financial Balance Sheet Graphs
Total Assets ($ millions) $1,800 $1,686 Stifel Financial $1,500 $1,499 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 $560 $520 $95 Book Value Per Share $95 $25 $19.75 $400 $18.36 $290 $20 $225 $4
Slide 18: Level 3 Assets
Level 3 Assets Significant Unobservable Inputs Assets (in $000s) (Level 3) Trading Securities Sate and Municipal Bonds $8,255 Corporate Stocks 7,851 Total Trading Stocks 16,106 Available for Sale Securities State and political subdivisions 11,020 Investments 17,038 Total assets measured at fair valu
Slide 19: Capital Structure
Capital Structure ($ in thousands) Total Assets $1,685,837 Stockholders' Equity $465,071 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 Quarterly Data % Change vs vs Other Data 6/30/2008 3/31/2008 6/30/2007 Q1 2008 Q2 2007 Bank Assets $301,511 $287,993 $201,412 5% 50% SN & SF Assets $1,384,326 $1,325,222 $1,432,344 4% -3% Total Assets (000's) $1,685,837 $1,613,215 $1,633,756 5% 3% Stockholders Equity (000's) $46
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