PIPER JAFFRAY COMPANIES REPORTS FISCAL 95 FINANCIAL RESULTS, DECLARES DIVIDEND.MINNEAPOLIS--(BUSINESS WIRE)--Nov. 8, 1995--Piper Jaffray Companies Inc. (NYSE NYSE See: New York Stock Exchange : PJC PJC Permanent Joint Council (forum for NATA-Russia Consultations) PJC Prayer for Judgment Continued (legal term) PJC Pioneer Junior College (Singapore) ) today announced financial results for the fourth quarter and the fiscal year ended Sept. 30, 1995. The board of directors also declared the Company's quarterly dividend of 7.5 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. of its common stock, payable on Dec. 12, 1995, to shareholders of record on Nov. 28, 1995. Revenue for the fiscal year ended Sept. 30, 1995, was $431.7 million, an increase of 8.6 percent over $397.5 million in fiscal 1994. Net loss was $14.1 million versus net income of $25.3 million one year ago. The net loss per share was $0.82 compared to net income per share of $1.41 last year. Revenue for the fourth quarter was $132.2 million, or 36.8 percent ahead of the same period a year ago. Net income for the fourth quarter was $5.4 million, up 51.7 percent from the same quarter last year. Net income per share was up 50 percent to $0.30 compared to $0.20 a year ago. The 1995 fiscal year loss was a result of a $70 million pre- pre- word element [L.], before (in time or space). pre- pref. 1. Earlier; before; prior to: prenatal. 2. tax charge, taken in the second quarter, for settlement of the Institutional Government Income Portfolio (PJIGX) mutual fund litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . The charge was partially offset during third quarter by $13.9 million of insurance proceeds, net of related expenses. Excluding the net impact of the settlement, net income for fiscal 1995 would have been $20.4 million, and net income per share would have been $1.14. Fourth quarter and fiscal 1995 net income (loss) reflects provision for two additional legal actions: a $1.95 million proposed settlement, subject to court approval, of a Piper Jaffray Piper Jaffray & Co. (NYSE: PJC), often shortened to just Piper Jaffray or PiperJaffray, is a U.S. middle-market investment banking firm based in Minneapolis, Minnesota and is a focused on delivering financial advice, investment products and transaction execution Companies shareholder lawsuit lawsuit: see procedure; tort. ; and an arbitration award An arbitration award (or arbitral award) is a determination on the merits by an arbitration tribunal in an arbitration, and is analogous to a judgment in a court of law. of approximately $6 million related to losses in a Piper Capital Management privately managed account. The Company ended the year with shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of $155.7 million and shareholders' equity per share of $8.90. Piper Jaffray Inc., the broker/dealer subsidiary, had net capital of $87.3 million, which exceeds the regulatory requirement Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. by $79.3 million. The Company is currently a defendant in lawsuits or arbitrations related to various funds or assets managed by Piper Capital. The Company intends to defend, or in some cases, negotiate to settle these actions. "We believe the remaining financial exposure is manageable and these cases are being appropriately handled," said Addison Addison, village (1990 pop. 32,058), Du Page co., NE Ill.; inc. 1884. An industrial suburb of Chicago, it manufactures machinery and plastic items. L. Piper, chairman and chief executive officer. It is impossible to predict the outcome of these actions, and the effect on the Company's future consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge cannot be determined. Accordingly, no provision for loss that may result has been recorded in the Company's consolidated financial statements. However, the aggregate cost of litigation and any judgments or settlements could have a material adverse effect on the consolidated financial statements. "Though we were pleased with the revenue growth we experienced during a volatile market and a difficult year for our Company, our fiscal 1995 earnings results were disappointing," said Piper. "We believe, however, that the steps we're taking to provide the necessary leadership, management and operating efficiencies will allow us to improve our operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: ." During 1995 the corporate board structure was redefined in keeping with governance Governance makes decisions that define expectations, grant power, or verify performance. It consists either of a separate process or of a specific part of management or leadership processes. Sometimes people set up a government to administer these processes and systems. trends toward independent outside boards. The board was reduced from 15 to seven members, of which five are external directors. The Company's senior management was reorganized re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. and the holding company role was expanded to support growth. Staff units that provide support to all of the Company's business units are now housed within the holding company and will report to Piper. In addition, the director of Fixed Income Capital Markets, Andrew Duff Andrew Duff (born 25 December 1950 in Birkenhead, Merseyside) is a Liberal Democrat politician and a Member of the European Parliament for the East of England region of the UK.[1] He initially stood in the 1984 European Parliament election, finishing third with 22. , was named president of Piper Jaffray Inc., the company's broker/dealer subsidiary. William H. Ellis ELLIS - EuLisp LInda System. An object-oriented Linda system written for EuLisp. "Using Object-Oriented Mechanisms to Describe Linda", P. Broadbery <pab@maths.bath.ac.uk> et al, in Linda-Like Systems and Their Implementation, G. Wilson ed, U Edinburgh TR 91-13, 1991. , chairman of Piper Capital Management, the Company's money management subsidiary, was named to the additional post of president and assumed day-to-day management, while retaining his role as Piper Jaffray Companies president. "While we're not satisfied with our operating results, even without the net impact of the settlement," said Piper, "we are encouraged by the positive trends we saw in the fourth quarter in each of our business units." Piper Jaffray's Individual Investor Services business continues to gain market share, particularly in its hub markets in the West and Southwest. Three new retail sales offices were opened in Arizona during fiscal 1995, and the Company has since added an office, Lee's Summit Lee's Summit, city (1990 pop. 46,418), Jackson co., W Mo., in the Kansas City metropolitan area; inc. 1868. The city is an important trucking center and manufactures communications equipment, appliances, pharmaceuticals, and plastic and metal products. , in the Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). hub. The retail sales force was expanded by a net addition of 63 investment executives during the year, bringing the total to 1,063. The Company's Capital Markets business increased operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. 13 percent over fiscal 1994, in part due to aggressive Fixed Income Capital Markets expense management. In line with the industry, the number and volume of fixed income bond underwritings was down from 1994. But the volume of negotiated municipal bond issues sole- or lead-managed by the Company was up 10 percent at a time when national volume decreased 26 percent. The Company's Equity Capital Markets group completed 33 public offerings, including 16 initial public offerings (IPOs), compared with 25 public offerings in fiscal 1994. Aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. performance of IPOs in which the Company participated was excellent, up an average of 63.3 percent as of Sept. 30, 1995. Piper Capital Management fund performance was competitive during fiscal 1995, with tax-exempt closed-end funds Closed-end fund An investment company that issues shares like any other corporation and usually does not redeem its shares. A publicly traded fund sold on stock exchanges or over the counter that may trade above or below its net asset value. Related: Open-end fund. and equity funds delivering particularly strong performances. Piper Trust Company redefined its business to focus on employee benefit and personal trust services, with an emphasis on working closely with Piper Jaffray investment executives to offer services to the Company's existing clients. Piper Jaffray Companies Inc. was founded in 1895 and has built a reputation as one of the nation's premier full- service investment companies. Piper Jaffray Companies is the parent company of Piper Jaffray Inc., an investment firm with 78 retail sales offices in 17 Midwest, Mountain, Southwest and Pacific Coast states. Piper Jaffray Inc. also has capital markets offices in 15 cities. Other subsidiaries include Piper Capital Management Incorporated, a money management company with approximately $9 billion under management; and Piper Trust Company, a provider of trust services to individuals and institutions. Piper Jaffray is a member of the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. and other major stock exchanges. -0- CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts)
3 Months Ended 12 Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1995 1994 1995 1994
Revenues
Commissions 41,826 33,594 145,492 147,539
Profits on principal
transactions 36,716 25,882 124,910 101,381
Investment banking 27,790 13,940 64,138 61,146
Interest 8,781 7,352 33,765 24,792
Asset management
fees 10,522 12,911 43,913 51,917
Other 6,560 2,981 19,489 10,736
------ ------ ------ ------
$132,195 $96,660 $431,707 $397,511
======== ======= ======== ========
Expenses
Employee
compensation 80,669 57,962 262,110 245,567
Floor brokerage
& clearance 2,186 1,822 8,137 7,433
Interest 2,920 2,479 11,741 7,242
Occupancy &
equipment 9,176 7,466 30,571 27,845
Communications 4,188 3,735 16,028 14,468
Travel &
promotional 4,110 4,214 15,550 15,425
PJIGX settlement
charge, net - - 56,090 -
Other operating
expenses 20,076 14,449 54,133 39,401
-------- -------- -------- --------
$123,325 $92,127 $454,360 $357,381
========== ========= ========== =========
Income (loss) 8,870 4,533 (22,653) 40,130 before income taxes Income taxes 3,459 965 (8,535) 14,848 Net income (loss) $5,411 $3,568 $(14,118) $25,282
3 Months Ended 12 Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1995 1994 1995 1994
Net income (loss)
per common and common
equivalent share
(primary and
fully diluted)
$0.30 $0.20 $(0.82) $1.41
Weighted average number
of common and common
equivalent shares
outstanding
18,080 17,701 17,300 17,945
OTHER CONSOLIDATED FINANCIAL DATA (in thousands, except per share amounts)
Sept. 30, Sept. 30,
1995 1994
Total assets $679,763 $584,447 Shareholders' equity $155,724 $167,803 Shareholders' equity per share $8.90 $9.76 CONTACT: Media: Marie Uhrich 612/342-6583 or Investors: Marge Proell 612/342-6084 |
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