Financial Performance - Piper Sandler Companies reported net revenues of 484millionforQ42024,a351.53 billion, reflecting a 13% increase compared to 2023[9]. - Total revenues for Q4 2024 reached 485.4million,a27.5360.9 million in Q3 2024[46]. - Net income for 2024 was 181.1million,or10.24 per diluted common share, an increase compared to 2023[22]. - Net income attributable to Piper Sandler Companies for Q4 2024 was 69.1million,comparedto34.8 million in Q3 2024, representing a 98.5% increase[46]. - Adjusted net revenues for Q4 2024 were 498.6million,a421.54 billion, a 16% increase compared to the prior year[28]. - Adjusted net income for Q4 2024 was 86.8million,translatingto4.80 per diluted share, driven by a higher adjusted operating margin[32]. - For 2024, adjusted net income reached 228.2million,or12.69 per diluted share, reflecting an increase compared to 2023[33]. Revenue Breakdown - Advisory services revenues for Q4 2024 were 280million,markingthethirdstrongestquarteronrecord,drivenbycontributionsfromvarioussectors[4].−Investmentbankingrevenuesfor2024reached1.11 billion, a 20% increase compared to 2023[10]. - Advisory services revenues for Q4 2024 were 279.6million,up4953 million, the highest since 2021, indicating strong market performance[4]. - Corporate financing revenues for Q4 2024 were 52.8million,a19541.0 million, a 15% increase from Q3 2024 and a 40% increase from Q4 2023[11]. - Institutional brokerage revenues for Q4 2024 were 117.3million,a16186 million in 2024, driven by increased activity among depository clients[4]. Expenses and Margins - Non-interest expenses for Q4 2024 were 402.0million,a32377.2 million, a 31% increase from Q3 2024 and a 5% increase from Q4 2023[29]. - Adjusted operating income for Q4 2024 was 121.4million,up87316.0 million, a 37% increase from 231.0millioninQ32024[46].ShareholderReturns−PiperSandlerdeclaredaspecialcashdividendof3.00 per share and a quarterly dividend of 0.65pershare,totaling5.50 per share for fiscal year 2024[4]. - The total dividend payout ratio for fiscal year 2024 was 43% of adjusted net income[4]. - The company returned an aggregate of 140milliontoshareholdersin2024throughsharerepurchasesanddividends[4].−InQ42024,thecompanyrepurchasedapproximately22,000sharesfor6.5 million at an average price of 294.08pershare[37].−For2024,thecompanyrepurchasedapproximately347,000sharesfor66.4 million at an average price of 191.44pershare[38].−Thetotaldividendforfiscalyear2024amountsto5.50 per share, with a payout ratio of 43% of adjusted net income[34]. Tax and Adjustments - The adjusted effective tax rate for 2024 was 24.9%, an increase from 19.9% in the prior year due to a lower tax benefit related to restricted stock awards[31]. - Adjusted effective tax rate for Q4 2024 was 28.5%, slightly down from 28.6% in Q3 2024[47]. - The company reported an income tax expense of 29.6millionforQ42024,upfrom15.2 million in Q3 2024, representing a 94.5% increase[49]. - Adjusted income tax expense for Q4 2024 was 34.7million,comparedto18.5 million in Q3 2024, indicating an increase of 87.2%[49]. Employment - Full-time employees as of December 31, 2024, totaled 1,805, an increase from 1,725 a year earlier[39]. Financial Reporting Practices - The company presents selected summary financial information as non-GAAP measures to provide a meaningful basis for comparison of operating results across periods[1]. - Adjusted net income excludes compensation and non-compensation expenses from acquisition-related agreements, restructuring costs, and amortization of intangible assets[9]. - Adjusted operating income is represented as a percentage of adjusted net revenues, indicating operational efficiency[14]. - The company emphasizes the importance of adjusted measures to reflect true financial performance, excluding various one-time costs[6]. - The adjustments made in the financial reporting are aimed at providing stakeholders with a more accurate picture of the company's financial health[8].
Piper Sandler(PIPR)2025-01-31 13:03