Oppenheimer Holdings, Inc. · NYSE:OPY
Oppenheimer — Q2 2016 Earnings Presentation
14 slides from Oppenheimer's earnings presentation, Aug 10, 2016
Slide 1: Oppenheimer Holdings Inc. Investor Presentation 2Q-16
OPPENHEIMER HOLDINGS INC. INVESTOR PRESENTATION 2Q-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 2 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
Slide 3: Overview
OVERVIEW 3 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. Private client services and asset management solutions tailored to individuals’ unique financial obj
Slide 4: Our Cultural Values
Cultural Values Business Principles Talent & Leadership Technology Investments 4 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
Slide 5: Our Business Principles
Cultural Values Business Principles Talent & Leadership Technology Investments 5 OUR BUSINESS PRINCIPLES We are deeply committed to our clients and offer the same level of service to investors of all sizes.Client Focus Recommendations for each client are tailored and based on a deep-seeded knowledge
Slide 6: Investing in Talent & Leadership
Changed leadership in Private Client Division Added 14 new branch managers in the past year Recalibrated expectations of financial advisers Implemented New Financial Adviser recruitment deal Created an Associate Financial Adviser Program Cultural Values Business Principles Talent & Leaders
Slide 7: Technology Investments
Cultural Values Business Principles Talent & Leadership Technology Investments 7 TECHNOLOGY INVESTMENTS We made substantial investments in technology to satisfy regulatory and compliance needs as well as to better service our clients – Invested in new platform for all investment advisory programs –
Slide 8: Let's Look at Our Results
$- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 Institutional Equities Investment Banking Taxable Fixed Income Public Finance LET’S LOOK AT OUR RESULTS 8 Business Segment Results TTM 2Q-16 Shareholders' Equity at 6/30/16 (‘000s) $522,112 Book-value at 6/30/16 $38.45 Tangible Book-value
Slide 9: Financial Results Continued
2011 2012 2013 2014 2015 TTM 6‐30‐16 Net Income/(Loss) $10,316 $(3,613) $25,061 $8,826 $1,962 $(2,711) $(10,000) $(5,000) $‐ $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 FINANCIAL RESULTS CONTINUED 9 Gross Revenue ($M) Net Income/(Loss) ($ thousands) $800 $850 $900 $950 $1,000 $1,050 2011 2012 201
Slide 10: Capital Structure as of June 30, 2016
CAPITAL STRUCTURE AS OF JUNE 30, 2016 10 Conservative Risk Profile Ratios Equity to Assets: Capitalization to Assets: Debt to Equity: Gross Leverage Ratio: 20% 26% 29% 4.9X ($ in thousands) June 30, 2016 Total Assets: $2,575,729 Stockholders’ Equity: Long-Term Debt: $522,112 $150,000 Total Capitaliz
Slide 11: Select Financial Measures
0.74 -0.27 1.77 0.62 0.14 0.39 0.76 -0.27 1.85 0.65 0.14 0.39 -0.50 0.00 0.50 1.00 1.50 2.00 2011 2012 2013 2014 2015 2Q-16 EPS - diluted EPS - basic 2.0% -0.7% 4.8% 1.7% 0.4% -0.5% -2.0% 0.0% 2.0% 4.0% 6.0% 2011 2012 2013 2014 2015 TTM 2Q-16 1.9% -0.1% 4.3% 2.6% 0.7% -0.4% -2.0% 0.0% 2.0% 4.0% 6.0%
Slide 12: We Continue to Address the ARS Matter
WE CONTINUE TO ADDRESS THE ARS MATTER 12 Company ($M)Client ($B) ARS Holdings Auction Rate Securities (“ARS”) failed in Feb. 2008 with over $330B outstanding in market Oppenheimer clients held $2.8B in Feb. 2008 Settlements with New York Attorney General and Massachusetts Securities Division i
Slide 13: Positioned Well for a Rising Interest Rate Environment
‐ 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2009 2010 2011 2012 2013 2014 2015 6‐30‐16 13 POSITIONED WELL FOR A RISING INTEREST RATE ENVIRONMENT Low interest rates have had significant impact on interest and fee revenues Firm’s interest rate sensitive products: – Cash sweep balances
Slide 14: Thank You for Your Time
THANK YOU FOR YOUR TIME ()PPENHEIMER,