Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q4 2005 Earnings Presentation
19 slides from Stifel Financial's earnings presentation, Feb 17, 2006
Slide 1: 4th Quarter and Full Fiscal Year Ended 12/31/05 Earnings Conference Call
4th Quarter and Full Fiscal Year Ended 12/31/05 Earnings Conference Call February 17, 2006
Slide 2: Forward Statements
Forward Statements This presentation contains certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this presentation not dealing with historic
Slide 3: Fourth Quarter Update 2005
Fourth Quarter Update 2005 Page 2
Slide 4: Fourth Quarter "Noise"
Fourth Quarter “Noise” • Incurred approximately $3.1 million in integration expenses related to merger • Merger announcement caused disruption for Stifel’s legacy ECM business • One month of combined firm’s business Page 3
Slide 5: Fourth Quarter Highlights
Fourth Quarter Highlights 2005 2004 % Change Net Revenue $75,796 $64,267 17.94% Net Income $4,769 $6,982 (31.7%) Diluted EPS $0.38 $0.56 (32.1%) Proforma (excluding integration items) Net Income $6,612 $6,982 (5.3%) Diluted EPS $0.52 $0.56 (7.1%) Note: For a reconciliation of GAAP to ProForma items
Slide 6: 2005 Fiscal Year Review
2005 Fiscal Year Review Page 5
Slide 7: Full Year Highlights
Full Year Highlights 2005 2004 % Change Net Revenue $263,735 $246,823 6.85% Net Income $19,643 $23,147 (15.1%) Diluted EPS $1.56 $1.88 (17.0%) Proforma (excluding integration items) Net Income $21,500 $22,147 (2.9%) Diluted EPS $1.71 $1.80 (5.0%) Note: For a reconciliation of GAAP to ProForma items
Slide 8: Merger Update
STIFEL NICOLAUS Page 7
Slide 9: The "New Stifel"
The “New Stifel” • One of the largest domestic Equity Research franchises off Wall Street • Approximately 1,800 employees in 113 offices in US and Europe • Highly Regarded Private Client Group Manages $27 billion in Client Assets • Broad Institutional Equity and Fixed Income origination and distribu
Slide 10: Let's Recap the Merger
Let’s Recap the Merger STIFEL NICOLAUS Page 9
Slide 11: Consideration to Seller
Consideration to Seller 1) Purchased Net Trading Inventory at Fair Value (Approximately $46 million of marketable securities) 2) Purchased Net Assets valued at $12.2 million 3) Assumed certain liabilities including leases, contracts, and other items related to the continuing operation of the busines
Slide 12: Stock based Incentives to LM Associates
Stock based Incentives to LM Associates On January 23, 2006 the Company completed its private placement of 1,052,220 shares of its common stock at $25.00 per share. The shares were purchased by key associates of the Legg Mason Capital Markets. The Company is required to charge to Private Placement c
Slide 13: Private Placement Balance Sheet Impact
Private Placement Balance Sheet Impact Book Shares Equity Value December 31, 2005 10,129 155,093 $15.31 Shares Issued 1,052 36,052 Shares Repurchased, Net of Tax benefit (109) (2,470) After Tax Charge to Earnings (5,851) Proforma, After Private Placement 11,072 182,824 $16.51 Page 12
Slide 14: Stock Based Incentives Income Statement Impact
Stock Based Incentives Income Statement Impact Total Private Placement 1,052 Shares via PPM at $25 . . . . . . . . . . . . . . . . . . . . . $26,300 Fair Value pursuant to 123R . . . . . . . . . . . . . . . . . . . . . . $36,052 Premium treated as Compensation . . . . . . . . . . . . . . . . $9,752
Slide 15: 2006 Quarterly Income Statement Impact
2006 Quarterly Income Statement Impact Q1 2006 Q2 2006 Q3 2006 Q4 2006 Stock Unit Pre Tax Expense . . . . . . . . . . $5,661 $5,661 $5,661 $5,661 Private Placement FAS 123R Expense . 9,752 $0 $0 $0 Pre Tax Stock Bas e d Com pe ns ation . . . $15,413 $5,661 $5,661 $5,661 EPS Effe ct us ing 13.9 M ill
Slide 16: Annual Income Statement Impact
Annual Income Statement Impact FY 2006 FY 2007 FY 2008 FY 2009 Total Stock Unit Pre Tax Expense . . . . . . . . . . $22,642 $22,642 $22,642 $0 $67,926 Private Placement FAS 123R Expense . 9,752 $0 $0 $0 $9,752 Pre Tax Stock Bas e d Com pe ns ation . . . $32,394 $22,642 $22,642 $0 $77,678 EPS Effe ct
Slide 17: Equity Performance
Equity Performance STIFEL NICOLAUS eee — eeeeeeeeeeEeEeEeooooeEOeeeeeeeeeeeee Page 16
Slide 18: Stifel Stock Performance
Stifel Stock Performance 5 y e ar 3 y e ar 1 y e ar Ranking Co mpany Re turn Ranking Co mpany Re turn Ranking Co mpany Re turn 1 Stifel Financial Corp. 340.62% 1 Stifel Financial Corp. 349.91% 1 Stifel Financial Corp. 79.43% 2 Sanders Morris Harris 285.65% 2 Legg Mason Inc. 269.87% 2 Legg Mason Inc.
Slide 19: Questions & Answers
STIFEL NICOLAUS Questions & Answers