Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q4 2007 Earnings Presentation
18 slides from Stifel Financial's earnings presentation, Feb 12, 2008
Slide 1: 4th Quarter 2007 Fiscal Year Earnings Conference Call
TIFEL INANCIAL 4th Quarter 2007 Fiscal Year Earnings Conference Call February 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: Annual Highlights
Annual Highlights ¾ Record net revenue of $763.1 million, a 69% increase for 2007 as compared to 2006, making 2007 the twelfth consecutive year of record net revenues. ¾ Record GAAP net income of $32.2 million, or $1.88 per diluted share, a 108% increase for 2007 as compared to 2006. ¾ Book value pe
Slide 4: 4th Quarter Highlights
4th Quarter Highlights ¾ Record net revenue of $212.2 million a 63% increase over the prior year fourth quarter and 16% from the third quarter. ¾ Record GAAP net income of $13.8 million, or $0.77 per diluted share, a 91% increase over the prior year fourth quarter and 72% from the third quarter. ¾ R
Slide 5: Stifel Income Statements - Core Revenues
Stifel Income Statements Core Revenues Quarters Ended % Change YTD % Change ($ in thousands) 12/31/07 09/30/07 12/31/06 09/30/07 12/31/06 12/31/07 12/31/06 Revenues Commis sions & Principal Trans $ 138,222 $ 114,628 $ 76,761 21% 80% $ 454,730 $ 285,421 59% Investment Banking 31,445 30,983 31,682 1%
Slide 6: Stifel Income Statements
Stifel Income Statements Quarters Ended % Change YTD % Change ($ in thousands) 12/31/07 09/30/07 12/31/06 09/30/07 12/31/06 12/31/07 12/31/06 Net Revenues $ 212,160 $ 183,000 $ 129,794 16% 63% $ 763,369 $ 451,961 69% Compensation and Benefits 133,018 119,566 83,719 11% 59% 493,908 289,943 70% Non-Co
Slide 7: Segment Comparison Excluding Acquisitions
Segment Comparison Excluding Acquisitions Quarters Ended % Change YTD % Change Net Revenues 12/31/07 09/30/07 12/31/06 09/30/07 12/31/06 12/31/07 12/31/06 Private Client $ 119,260 $ 112,650 $ 63,990 6% 86% $ 435,711 $ 231,364 88% Equity Capital Markets 59,421 47,703 44,152 25% 35% 238,064 150,038 59
Slide 8: Private Client Group Income Statements
Private Client Group Income Statements Quarters Ended % Change YTD % Change ($ in thousands) 12/31/07 09/30/07 12/31/06 09/30/07 12/31/06 12/31/07 12/31/06 Re ve n u e s: Commissions and principal t ransact ions $ 81,929 $ 71,766 $ 40,873 16% 104% $ 281,350 $ 152,059 86% Invest ment banking 4,705 10
Slide 9: Equity Capital Markets Income Statements
Equity Capital Markets Income Statements Quarters Ended % Change YTD % Change ($ in thousands) 12/31/07 09/30/07 12/31/06 09/30/07 12/31/06 12/31/07 12/31/06 Re ve n u e s: Commissions and principal t ransact ions $ 35,100 $ 31,020 $ 24,237 14% 46% $ 120,204 $ 91,547 32% Capital raising 7,850 7,641
Slide 10: Fixed Income Capital Markets Income Statements
Fixed Income Capital Markets Income Statements Quarters Ended % Change YTD % Change ($ in thousands) 12/31/07 09/30/07 12/31/06 09/30/07 12/31/06 12/31/07 12/31/06 Re ve n u e s: Commissions and principal t ransact ions $ 21,225 $ 11,840 $ 11,652 81% 84% $ 56,164 $ 41,816 28% Invest ment banking 2,5
Slide 11: Reconciliation of GAAP to Core Earnings
Reconciliation of GAAP to Core Earnings Page 10
Slide 12: GAAP to Core Earnings
GAAP to Core Earnings Quarter Ended 12/31/07 Year Ended 12/31/07 Acquisition Core Acquisition Core ($ in thousands) GAAP Related Business GAAP Related Business Revenues Net Revenues $ 212,186 $ 26 $ 212,160 $ 763,065 $ (304) $ 763,369 Non-Interest Expenses Compensation and benefits 141,758 8,740 133
Slide 13: 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 $ 25,000 $ - $ 91,452 Ryan Beck Acquisition Charges . . . . . . . . . . . . - 31,693 - - 31,693 Pre Tax Acquisi
Slide 14: Quarterly Income Statement Impact
Quarterly Income Statement Impact Actual Actual Actual Actual Full Year Q1 2007 Q2 2007 Q3 2007 Q4 2007 2007 Acquisiton Related Expenses ($ in thousands) LM Capital Markets Acquisition $ 6,202 $ 5,544 $ 6,653 $ 6,683 $ 25,082 (1) Ryan Beck Acquisition 1,097 24,159 3,246 3,191 31,693 Total non-intere
Slide 15: Stifel Financial Balance Sheet Graphs
Total Assets ($ millions) $1,800 $1,490 Stifel Financial $1,500 Balance Sheet Graphs $1,200 $842 $1,081 $900 $600 $423 $412 $382 $300 $0 2002 2003 2004 2005 2006 2007 Total Shareholder’s Equity ($ millions) Book Value Per Share $425 $27.54 $450 $30 $18.53 $300 $20 $220 $13.53 $15.31 $10.85 $131 $155
Slide 16: Capital Structure
Capital Structure ($ in thousands) Total Assets $1,489,534 Stockholders' Equity $424,637 Debentures to: Stifel Financial Capital Trust II - LIBOR plus 1.70% (fixed at 6.38% unt il 9/30/10), due 9/30/35 $35,000 Stifel Financial Capital Trust III - LIBOR plus 1.85% (fixed at 6.79% unt il 6/6/12), due
Slide 17: Other Financial Data
Other Financial Data Quarterly Data % Change vs vs Other Data 12/31/2007 9/30/2007 12/31/2006 Q3 2007 Q4 2006 Total Assets (000's) $ 1,489,534 $ 1,517,826 $ 1,084,774 -2% 37% Stockholders Equity (000's) $ 424,637 $ 406,646 $ 220,265 4% 93% Book value Per Share $ 27.54 $ 27.12 $ 18.53 2% 49% Financia
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