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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): May 12, 2003
STIFEL FINANCIAL CORP.
Delaware |
1-9305 |
43-1273600 |
One Financial Plaza
501 North Broadway
St. Louis, Missouri 63102-2102
(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code
(314) 342-2000
___________________________ N/A_______________________________
(Former name or former address, if changed since last report)
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits
The following exhibit is furnished pursuant to Item 12 "Disclosure of Results of Operations and Financial Condition," is not to be considered "filed" under the Securities Exchange Act of 1934, as amended, ("Exchange Act") and shall not be incorporated by reference into any filing by Stifel Financial Corp. under the Securities Act of 1933, as amended, ("Securities Act") or the Exchange Act.
Exhibit 99.1: Unaudited Earnings Summaries for the three months ended March 31, 2003 and supplemental quarterly information.
Items 12. Disclosure of Results of Operations and Financial Condition
(furnished under Item 9 in accordance with interim guidance provided by the United States Securities and Exchange Commission)
(a) Exhibit 99.1 consists of a copy of the press release issued May 12, 2003 reporting results for the quarter ended March 31, 2003.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
STIFEL FINANCIAL CORP.
Date: May 12, 2003 |
By: /s/ James M. Zemlyak |
STIFEL FINANCIAL CORP.
Form 8-K Dated May 12, 2003
Exhibit 99.1: Press Release
[Stifel Financial Corp. logo] Stifel Financial News
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
One Financial Plaza |
For further information contact: |
For Immediate Release
Stifel Financial Corp.
Reports Unaudited First Quarter Results
St. Louis, Missouri, May 12, 2003 - Stifel Financial Corp. (NYSE: "SF") today reported unaudited quarterly net income of $722,000, or $0.09 per diluted share on net revenues of $42.7 million for the quarter ended March 31, 2003, compared to net income of $1.7 million, or $0.21 per diluted share, on net revenues of $47.8 million for the comparable quarter of 2002. At March 31, 2002, the Company's equity was $83.1 million, resulting in book value per share of $11.99. Book value per share assuming conversion of all outstanding stock units is $10.70.
Chairman and Chief Executive Officer, Ronald J. Kruszewski, commented, "Our quarter reflected the difficult market environment, especially with respect to equity-based business in both our Private Client and Equity Capital Market segments. While we remain cautious about the short-term outlook, we continue to pursue our growth strategy and believe we are well-positioned as a Company when the market environment improves."
Net revenues for the quarter decreased to $42.7 million from $47.8 million in the prior year first quarter as primarily all revenue line items were negatively impacted by poor market conditions. Commission and principal transaction revenues declined to $26.1 million from $28.0 million in the same period last year. Investment banking revenues decreased to $8.6 million in the first quarter of 2003 from $10.8 million in the prior year first quarter. Other income of $6.3 million decreased from the first quarter of 2002 of $6.6 million. Net interest declined to $1.8 million from $2.4 million in the prior year first quarter.
Total non-interest expenses in the 2003 first quarter were $41.6 million, down from $45.0 million in the same period of 2002. Employee compensation and benefits decreased to $29.7 million from $33.1 million in the prior year first quarter. As a percentage of net revenues, compensation totaled 69.3% in the first quarter of 2003, unchanged from the 2002 comparable quarter. Excluding compensation and benefits, the remaining non-interest expenses remained unchanged from the prior year first quarter.
Business Segment Results for the Quarter Ended March 31, 2003:
Stifel Financial Corp. is a financial services holding company whose subsidiaries are engaged in general securities brokerage, investment banking, and money management with 82 locations in 15 states, primarily in the Midwest. To learn more about Stifel, please visit the Company's web site at www.stifel.com.
Statements in this news release contain forward-looking statements within the meaning of federal securities laws. Actual results are subject to risks and uncertainties, including both those specific to the Company and those specific to the industry, which could cause results to differ materially from those contemplated. The risks and uncertainties include, but are not limited to, general economic conditions, actions of competitors, regulatory actions, changes in legislation, and technology changes. Undue reliance should not be placed on the forward-looking statements, which speak only as of the date of this news release. The Company does not undertake any obligation to publicly update any forward-looking statements.
# # #
(table attached)
Stifel Financial Corp., Consolidated |
|
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Summary Of Results Of Operations (Unaudited) |
|
|||||||||||||||||||||
(In Thousands, Except Per Share Amounts) |
|
|||||||||||||||||||||
|
|
|||||||||||||||||||||
|
Three Months Ended |
|
Amount Change From |
|
Percent Change From |
|
||||||||||||||||
|
3/31/2003 |
12/31/2002 |
3/31/2002 |
12/31/2002 |
3/31/2002 |
12/31/2002 |
3/31/2002 |
|
||||||||||||||
Revenues |
|
|||||||||||||||||||||
Commissions |
$ 16,235 |
$ 17,241 |
$ 19,033 |
$ (1,006) |
$ (2,798) |
-6% |
-15% |
|
||||||||||||||
Principal transactions |
9,816 |
10,512 |
8,927 |
(696) |
889 |
-7% |
10% |
|
||||||||||||||
Investment banking |
8,587 |
9,498 |
10,841 |
(911) |
(2,254) |
-10% |
-21% |
|
||||||||||||||
Other |
6,293 |
6,281 |
6,602 |
12 |
(309) |
0% |
-5% |
|
||||||||||||||
Total operating revenues |
40,931 |
43,532 |
45,403 |
(2,601) |
(4,472) |
-6% |
-10% |
|
||||||||||||||
Interest revenue |
3,165 |
3,342 |
3,684 |
(177) |
(519) |
-5% |
-14% |
|
||||||||||||||
Total revenues |
44,096 |
46,874 |
49,087 |
(2,778) |
(4,991) |
-6% |
-10% |
|
||||||||||||||
Less: Interest expense |
1,363 |
1,430 |
1,284 |
(67) |
79 |
-5% |
6% |
|
||||||||||||||
Net revenues |
42,733 |
45,444 |
47,803 |
(2,711) |
(5,070) |
-6% |
-11% |
|
||||||||||||||
Non-Interest Expenses |
|
|||||||||||||||||||||
Employee compensation and benefits |
29,689 |
29,913 |
33,109 |
(224) |
(3,420) |
-1% |
-10% |
|
||||||||||||||
Occupancy and equipment rental |
4,767 |
4,805 |
4,515 |
(38) |
252 |
-1% |
6% |
|
||||||||||||||
Communication and office supplies |
2,757 |
2,726 |
2,571 |
31 |
186 |
1% |
7% |
|
||||||||||||||
Commissions and floor brokerage |
689 |
823 |
871 |
(134) |
(182) |
-16% |
-21% |
|
||||||||||||||
Other operating expenses |
3,626 |
4,351 |
3,890 |
(725) |
(264) |
-17% |
-7% |
|
||||||||||||||
Total non-interest expenses |
41,528 |
42,618 |
44,956 |
(1,090) |
(3,428) |
-3% |
-8% |
|
||||||||||||||
Income before income taxes |
1,205 |
2,826 |
2,847 |
(1,621) |
(1,642) |
-57% |
-58% |
|
||||||||||||||
Provision for income taxes |
483 |
1,168 |
1,146 |
(685) |
(663) |
-59% |
-58% |
|
||||||||||||||
Net income |
$ 722 |
$ 1,658 |
$ 1,701 |
$ (936) |
$ (979) |
-56% |
-58% |
|
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|
|
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Per Share Information |
|
|||||||||||||||||||||
|
Three Months Ended |
|
Amount Change From |
|
Percent Change From |
|
||||||||||||||||
|
3/31/2003 |
12/31/2002 |
3/31/2002 |
12/31/02 |
03/31/02 |
12/31/2002 |
3/31/2002 |
|
||||||||||||||
Net Earnings Per Share: |
|
|||||||||||||||||||||
Basic |
$ 0.10 |
$ 0.24 |
$ 0.24 |
$ (0.14) |
$ (0.14) |
-58% |
-58% |
|
||||||||||||||
Diluted |
$ 0.09 |
$ 0.21 |
$ 0.21 |
$ (0.12) |
$ (0.12) |
-57% |
-57% |
|
||||||||||||||
|
|
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Number of Shares for Earnings Per Share Computations: |
|
|||||||||||||||||||||
Basic shares |
6,904 |
6,825 |
7,229 |
79 |
(325) |
1% |
-4% |
|
||||||||||||||
Diluted shares |
7,953 |
7,979 |
8,104 |
(26) |
(151) |
0% |
-2% |
|
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|
|
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Note: Certain prior period amounts have been reclassified to conform to the current period presentation. |
|
|
|
|
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Stifel Financial Corp., Consolidated |
|
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Summary Of Segment Data & Statistical Information (Unaudited) |
|
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($ In Thousands, Except Per Share Amounts) |
|
||||||||||
|
|
||||||||||
Segment Data |
|
||||||||||
|
|
||||||||||
|
Three Months Ended |
Amount Change From |
Percent Change From |
|
|||||||
Net Revenues |
3/31/2003 |
12/31/2002 |
3/31/2002 |
12/31/2002 |
3/31/2002 |
12/31/2002 |
3/31/2002 |
|
|||
Private client |
$ 32,462 |
$ 33,048 |
$ 34,972 |
$ (586) |
$ (2,510) |
-2% |
-7% |
|
|||
Equity capital markets |
5,613 |
6,865 |
8,895 |
(1,252) |
(3,282) |
-18% |
-37% |
|
|||
Fixed income capital markets |
3,844 |
4,324 |
2,402 |
(480) |
1,442 |
-11% |
60% |
|
|||
Other |
814 |
1,207 |
1,534 |
(393) |
(720) |
-33% |
-47% |
|
|||
Total net revenues |
$ 42,733 |
$ 45,444 |
$ 47,803 |
$ (2,711) |
$ (5,070) |
-6% |
-11% |
|
|||
|
|
||||||||||
Operating Contribution |
|
|
|
||||||||
Private client |
$ 3,660 |
$ 4,781 |
$ 5,095 |
$ (1,121) |
$ (1,435) |
-23% |
-28% |
|
|||
Equity capital markets |
483 |
1,453 |
2,598 |
(970) |
(2,115) |
-67% |
-81% |
|
|||
Fixed income capital markets |
946 |
729 |
(196) |
217 |
1,142 |
30% |
n/a |
|
|||
Other / unallocated overhead |
(3,884) |
(4,137) |
(4,650) |
253 |
766 |
n/a |
n/a |
|
|||
Income before income taxes |
$ 1,205 |
$ 2,826 |
$ 2,847 |
$ (1,621) |
$ (1,642) |
-57% |
-58% |
|
|||
|
|
||||||||||
Statistical Information |
|
||||||||||
|
|
||||||||||
|
Three Months Ended |
Amount Change From |
Percent Change From |
|
|||||||
|
3/31/2003 |
12/31/2002 |
3/31/2002 |
12/31/2002 |
3/31/2002 |
12/31/2002 |
3/31/2002 |
|
|||
Total Operating Revenues |
$ 40,931 |
$ 43,532 |
$ 45,403 |
$ (2,601) |
$ (4,472) |
-6% |
-10% |
|
|||
Net Operating Interest |
2,578 |
2,688 |
2,600 |
(110) |
(22) |
-4% |
-1% |
|
|||
Non-Interest Expenses (1) |
38,725 |
40,928 |
41,876 |
(2,203) |
(3,151) |
-5% |
-8% |
|
|||
Adjusted EBITDA (2) |
4,784 |
5,292 |
6,127 |
(508) |
(1,343) |
-10% |
-22% |
|
|||
|
|
||||||||||
Amortization and Depreciation |
2,803 |
1,690 |
3,080 |
1,113 |
(277) |
66% |
-9% |
|
|||
Interest on Long-Term Debt (3) |
776 |
776 |
200 |
0 |
576 |
0% |
288% |
|
|||
Income before income taxes |
1,205 |
2,826 |
2,847 |
(1,621) |
(1,642) |
-57% |
-58% |
|
|||
Provision for income taxes |
483 |
1,168 |
1,146 |
(685) |
(663) |
-59% |
-58% |
|
|||
Net income |
$ 722 |
$ 1,658 |
$ 1,701 |
$ (936) |
$ (979) |
-56% |
-58% |
|
|||
|
|
||||||||||
Net Earnings Per Share: |
|
||||||||||
Diluted |
$ 0.09 |
$ 0.21 |
$ 0.21 |
$ (0.12) |
$ (0.12) |
-57% |
-57% |
|
|||
|
|
||||||||||
Stockholders' Equity |
$ 83,115 |
$ 79,990 |
$ 81,100 |
$ 3,125 |
$ 2,015 |
4% |
2% |
|
|||
Book Value Per Share |
$ 11.99 |
$ 11.81 |
$ 11.30 |
$ 0.18 |
$ 0.69 |
2% |
6% |
|
|||
Total Assets |
$ 425,263 |
$ 422,976 |
$ 460,695 |
$ 2,287 |
$ (35,432) |
1% |
-8% |
|
|||
Investment Executives |
420 |
412 |
427 |
8 |
(7) |
2% |
-2% |
|
|||
Full-Time Employees |
1,136 |
1,123 |
1,103 |
13 |
33 |
1% |
3% |
|
|||
Locations |
82 |
80 |
77 |
2 |
5 |
3% |
6% |
|
|||
Total Client Assets |
$ 16,154,000 |
$ 16,174,000 |
$ 17,625,000 |
$ (20,000) |
$ (1,471,000) |
0% |
-8% |
|
|||
|
|
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(1) Non-interest expenses exclude depreciation and amortization of intangibles and employment incentives. Employment incentives include up-front loans and restricted stock units. |
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(2) Adjusted EBITDA, which is defined as net income before income taxes, depreciation, amortization of intangibles and employment incentives and interest on long-term debt, represents a non-GAAP financial measure. A reconciliation of adjusted EBITDA to net income, the most directly comparable measure under accounting principles generally accepted in the United States (GAAP), is included in the table above. The Company believes that adjusted EBITDA is a useful measure of financial performance because of its focus on the Company's results from operations before income taxes, depreciation, amortization, and interest. The Company also believes that this measure is an alternative financial measure of performance used by investors, rating agencies, and financial analysts to estimate the value of a company and evaluate its ability to meet debt service requirements. |
|
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(3) Long-term debt composed of: 9% $34.5 million Trust Preferred at 3/31/03 and 12/31/02 and 8% $10 million note to Western & Southern Life Insurance Company at 3/31/02. |
|
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Note: Certain prior period amounts have been reclassified to conform to the current period presentation. |
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- End -