Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q4 2006 Earnings Presentation
27 slides from Stifel Financial's earnings presentation, Feb 14, 2007
Slide 1: 4th Quarter 2006 Fiscal Year Earnings Conference Call
4th Quarter 2006 Fiscal Year Earnings Conference Call February 14, 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: 4th Quarter Update 2006
4th Quarter Update 2006
Slide 4: 4th Quarter Highlights
4th Quarter Highlights • Our PCG, ECM, and FICM achieved record revenue and profits for the twelve-months ended December 31, 2006. • Record fourth quarter revenue of $135.2 million, a 73% increase over the prior year fourth quarter. • Record twelve month revenue of $471.4 million, a 75% increase ove
Slide 5: 4th Quarter GAAP to Core Earnings
4th Quarter GAAP to Core Earnings Acquisition GAAP Related Core Business $ $ $ % Net Rev Revenues Net Revenues $129,793 ($1) $129,794 100% Non-Interest Expenses Compensation and benefits $91,158 $7,439 $83,719 64% Operating Expenses $26,263 $408 $25,855 20% Total non-interest expenses $117,421 $7,84
Slide 6: YTD GAAP to Core Earnings
YTD GAAP to Core Earnings Acquisition GAAP Related Core Business $ $ $ % Net Rev Revenues Net Revenues $451,807 ($154) $451,961 100% Non-Interest Expenses Compensation and benefits $329,703 $39,760 $289,943 64% Operating Expenses $95,735 $1,475 $94,260 21% Total non-interest expenses $425,438 $41,23
Slide 7: Acquisition Related Expenses
Acquisition Related Expenses Actual Actual Actual Actual Full Year Q1 2006 Q2 2006 Q3 2006 Q4 2006 2006 Revenues Net Revenues $ - $ (152) $ (1) $ (1) $ (154) Expenses Compensation charges 7,648 7,818 7,054 7,439 29,959 Private Placement FAS 123R Expense 9,800 - - - 9,800 Other Non Compensation 346 5
Slide 8: Annual Income Statement Impact
Annual Income Statement Impact FY 2006 FY 2007 FY 2008 FY 2009 Total Compensation Charges . . . . . . . . . . . . . . . .$29,959 . . . . . . . . . . .$25,000 . . . . . . . . . . . $25,000 . . . . . . . . . . . . . . . . .$0 . . . . . . . .$79,959 ........... Private Placement FAS 123R Expense . . .
Slide 9: Stifel Financial Core Net Revenues by Quarter
Stifel Financial Core Net Revenues by Quarter ($ Millions) $140 $130 $120 $110 $110 $103 $100 $76 $80 $64 $64 $60 $60 $40 Q1 Q2 Q3 Q4 2005 2006 Page 8
Slide 10: Stifel Financial Core Net Income by Quarter
Stifel Financial Core Net Income by Quarter ($ Thousands) $14,000 $11,867 $11,104 $12,000 $9,621 $10,000 $6,999 $6,742 $8,000 $5,620 $6,000 $4,896 $4,358 $4,000 $2,000 $0 Q1 Q2 Q3 Q4 2005 2006 Page 9
Slide 11: Stifel Financial Core Diluted EPS by Quarter
Stifel Financial Core Diluted EPS by Quarter $1.00 $0.83 $0.84 $0.80 $0.69 $0.60 $0.50 $0.53 $0.46 $0.39 $0.40 $0.35 $0.20 $0.00 Q1 Q2 Q3 Q4 2005 2006 Page 10
Slide 12: Stifel Financial Annual Net Revenues
Stifel Financial Annual Net Revenues ($ in Millions) $500 $452 $450 $400 $350 $264 $247 $300 $217 $250 $177 $188 $177 $200 $150 $100 $50 $0 2000 2001 2002 2003 2004 2005 2006 Page 11
Slide 13: Stifel Financial Core Net Income
Stifel Financial Core Net Income ($ in Thousands) $39.6 $40 $30 $23.1 $21.6 $20 $15.0 $9.2 $10 $2.8 $2.0 $0 2000 2001 2002 2003 2004 2005 2006 Page 12
Slide 14: Stifel Financial Diluted Core Earnings Per Share
Stifel Financial Diluted Core Earnings Per Share $2.85 $3.00 $2.50 $1.88 $2.00 $1.72 $1.37 $1.50 $0.90 $1.00 $0.19 $0.26 $0.50 $0.00 2000 2001 2002 2003 2004 2005 2006 Page 13
Slide 15: Investment Banking
Investment Banking Quarterly 12/31/06 % 12/31/05 % % Change Capital Raising 21,794 69% 6,752 46% 223% Advisory Fees 9,885 31% 8,031 54% 23% Total Investment Banking 31,679 100% 14,783 100% 114% YTD 12/31/06 % 12/31/05 % % Change Capital Raising 44,028 53% 42,303 76% 4% Advisory Fees 38,827 47% 13,59
Slide 16: Investment Banking Capital Raising
Investment Banking Capital Raising $25,000 $21,794 $20,000 $15,000 $10,485 $10,000 $6,538 $5,211 $5,000 $0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 2006 2006 2006 2006 Page 15
Slide 17: 4th Quarter Core Segment Comparison
4th Quarter Core Segment Comparison Three M onths Ended Percent Change From Net Revenues 12/31/2006 9/30/2006 12/31/2005 9/30/2006 12/31/2005 Private client $ 63,990 $ 56,461 $ 50,693 13% 26% Equity capital markets 44,152 36,692 17,351 20% 154% Fixed income capital markets 17,636 13,829 6,272 28% 18
Slide 18: YTD Segment Core Comparison
YTD Segment Core Comparison 12 Months Ended Increase/Decrease Net Revenues 12/31/2006 12/31/2005 $ % Private client $ 231,364 $ 197,606 $ 33,757 17% Equity capital markets 150,038 43,811 106,227 242% Fixed income capital markets 53,570 17,510 36,060 206% Other 16,842 4,808 12,034 250% Total net reve
Slide 19: Private Client Group Quarterly Income Statements
Private Client Group Quarterly Income Statements Quarters Ended Incre as e /De cre as e % of % of % of 12/31/06 Net Rev 09/30/06 Net Rev 12/31/05 Net Rev 09/30/06 12/31/05 Revenues Total Revenues 67,434 105% 59,277 105% 53,222 105% 14% 27% Interest Exp ense 3,444 5% 2,816 5% 2,529 5% 22% 36% Net Rev
Slide 20: Private Client Group YTD Income Statements
Private Client Group YTD Income Statements 12 Month(s) Ended Incre as e / (De cre as e ) % of % of 12/31/06 Ne t Re v 12/31/05 Ne t Re v Am ount Pe rce nt Revenues Total Revenues 244,007 105% 205,409 104% 38,598 19% Interest Expense 12,643 5% 7,803 4% 4,840 62% Net Revenues 231,364 100% 197,606 100%
Slide 21: Equity Capital Markets Quarterly Income Statements
Equity Capital Markets Quarterly Income Statements Quarters Ended Increase/Decrease % of % of % of 12/31/06 Net Rev 09/30/06 Net Rev 12/31/05 Net Rev 09/30/06 12/31/05 Revenues Total Revenues 44,220 100% 36,727 100% 17,403 100% 20% 154% Interest Expense 68 0% 35 0% 52 0% 94% 31% Net Revenues 44,152
Slide 22: Equity Capital Markets YTD Income Statements
Equity Capital Markets YTD Income Statements 12 Month(s) Ended Increase / (Decrease) % of % of 12/31/06 Net Rev 12/31/05 Net Rev Amount Percent Revenues Total Revenues 150,242 100% 44,042 101% 106,200 241% Interest Expense 204 0% 231 1% (27) -12% Net Revenues 150,038 100% 43,811 100% 106,227 242% No
Slide 23: Fixed Income Capital Markets Quarterly Income Statements
Fixed Income Capital Markets Quarterly Income Statements Quarters Ended Increase/Decrease % of % of % of 12/31/06 Net Rev 09/30/06 Net Rev 12/31/05 Net Rev 09/30/06 12/31/05 Revenues Total Revenues 24,194 137% 19,980 144% 6,910 110% 21% 250% Interest Expense 6,558 37% 6,151 44% 638 10% 7% 928% Net R
Slide 24: Fixed Income Capital Markets YTD Income Statements
Fixed Income Capital Markets YTD Income Statements 12 Month(s) Ended Increase / (Decrease) % of % of 12/31/06 Net Rev 12/31/05 Net Rev Amount Percent Revenues Total Revenues 73,381 137% 18,353 105% 55,028 300% Interest Expense 19,811 37% 843 5% 18,968 2250% Net Revenues 53,570 100% 17,510 100% 36,06
Slide 25: Other Financial Data
Other Financial Data Quarterly Data % Change vs vs Other Data 12/31/2006 9/30/2006 12/31/2005 Q3 2006 Q4 2005 Total Assets 1,080,723 1,134,194 842,001 -5% 28% Stockholders Equity 220,264 210,694 155,093 5% 42% Book value Per Share $18.53 $18.39 $15.31 1% 21% Investment Executives 556 500 467 11% 19%
Slide 26: Business Mix
Business Mix 2005 YTD Mix 2006 YTD Mix 23% 48% 52% 77% PCG Capital Markets PCG Capital Markets Page 25
Slide 27: Questions & Answers
STIFEL NICOLAUS Questions & Answers