Piper Sandler(PIPR) - 2024 Q2 - Quarterly Results

Financial Performance - Net revenues for Q2 2024 were $339 million, a 17$357 million, reflecting a 29% increase compared to Q2 2023[2]. - The net income attributable to Piper Sandler Companies was $35 million, representing a 779$1.97, a 757% increase year-over-year[1][7]. - For Q2 2024, net revenues were $339.2 million, flat compared to Q1 2024 and up 17$259.8 million, increasing 13% from Q1 2024 and 41% from Q2 2023[10]. - Adjusted net revenues for Q2 2024 were $356.7 million, a 7$45.2 million, or $2.52 per diluted common share, a decrease from Q1 2024 but an increase from Q2 2023[22]. - Adjusted total revenues for Q2 2024 reached$358,375,000, a 6.5% increase from $335,288,000 in Q1 2024 and a 28.8$278,350,000 in Q2 2023[33]. - Adjusted earnings per diluted common share for Q2 2024 was $2.52, down from$2.79 in Q1 2024 but up from $1.13 in Q2 2023[33]. - Net income for Q2 2024 was$34.8 million, or $1.97 per diluted share, decreasing from Q1 2024 but increasing from Q2 2023[15]. Revenue Breakdown - Advisory services revenues reached$184 million, up 42% year-over-year, driven by higher fees and increased transaction completions across various sectors[2]. - Corporate financing revenues were $51 million, primarily driven by equity financings for biopharma companies, marking a 37$25 million, reflecting growth in governmental business[2]. - Advisory services revenues were $183.9 million, up 17$50.6 million but increased 37% from Q2 2023[10]. - Municipal financing revenues increased 22% from Q1 2024 to $25.2 million and 46$234.7 million compared to Q1 2024, and increased by 24% year-over-year[7]. - Non-interest expenses for Q2 2024 were $310.9 million, up 7$295.1 million, up 6% from Q1 2024 and 18% from Q2 2023, with an adjusted compensation ratio of 62.9%[19]. - Adjusted operating income for Q2 2024 was $61.6 million, a 10$0.65 per share, with a total of $108 million returned to shareholders year-to-date through share repurchases and dividends[5]. - The Board of Directors declared a quarterly cash dividend of$0.65 per share, an 8% increase compared to the previous dividend, to be paid on September 13, 2024[23]. - The company repurchased approximately 27,000 shares for $5.5 million in Q2 2024, and a total of 316,000 shares for$57.6 million in the first half of 2024[25]. Employee and Equity Information - Full-time employees increased to 1,768 as of March 31, 2024, compared to 1,706 a year earlier[26]. - Common shareholders' equity rose to $1,126.3 million as of March 31, 2024, up from$1,100.6 million in the previous quarter[26]. Future Outlook and Acquisitions - The company announced the pending acquisition of Aviditi Advisors, expected to close in late Q3 or early Q4 2024, which will enhance its investment banking capabilities[3]. - The company is in the process of acquiring Aviditi Advisors, which is expected to enhance its corporate advisory capabilities[29]. - Forward-looking statements indicate potential risks related to market conditions and transaction volumes that could impact future performance[29].