Stifel Financial Corp. Reports Second Quarter Results.Record Quarterly Revenue of $220.6 Million, up 106% Quarterly Core Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. $1.09, Quarterly GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). Diluted EPS $0.08 ST. LOUIS -- Stifel Financial Corp. (NYSE NYSE See: New York Stock Exchange : SF) today reported unaudited quarterly net income of $1.4 million, or $0.08 per diluted share, on record revenue of $220.6 million for the quarter ended June June: see month. 30, 2007. For the comparable quarter of 2006, net income was $2.3 million, or $0.16 per diluted share, on revenue of $107.4 million. For the six months ended June 30, 2007, we posted net income of $10.3 million, or $0.63 per diluted share, on revenue of $383.1 million, compared with $2.8 million, or $0.20 per diluted share, on revenue of $220.9 million, for the same period one year earlier. At June 30, 2007, our equity was $388.2 million, resulting in book value per share of $26.04. After adjusting for acquisition related charges, principally compensation expense for acceleration acceleration, change in the velocity of a body with respect to time. Since velocity is a vector quantity, involving both magnitude and direction, acceleration is also a vector. In order to produce an acceleration, a force must be applied to the body. of deferred compensation for the Ryan Ryan may refer to: Places
Beck Hansen (born Bek David Campbell, July 8, 1970) is a Grammy Award-winning American musician, singer-songwriter, and multi-instrumentalist, known by his simple stage name of & Company ("Ryan Beck") deferred compensation plans and stock-based awards offered to key associates of LM Capital Markets ("LM Capital Markets"), non-GAAP net income and non-GAAP earnings per diluted share, our "Core earnings", were $18.9 million and $1.09, respectively for the second quarter of 2007 compared to 2006 second quarter Core earnings of $7.0 million and Core earnings per diluted share of $0.50. Our Core earnings for the six months ended June 30, 2007 were $32.0 million, or $1.96 a share compared to $18.1 million or $1.31 a share for the six months ended June 30, 2006. A reconciliation between our GAAP results and Core earnings is discussed below. Included in the 2007 second quarter and six months Core earnings is an after tax charge of $652,000 or $.04 per diluted share for the write off of deferred issuance costs related to the 9% Trust Preferred Securities called on July July: see month. 13, 2007. Included in the six month 2006 Core earnings is $2.0 million after tax or $0.15 per diluted share for the gain on the Company's 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. membership seat. Business Highlights * Record quarterly revenue of $220.6 million, a 106% increase over the prior year second quarter. * Our Private Client Group ("PCG PCG phonocardiogram. "), and Equity Capital Markets ("ECM (1) (Enterprise Change Management) See version control and configuration management. (2) (Error Correcting Mode) A Group 3 fax capability that can test for errors within a row of pixels and request retransmission. "), achieved record revenue and profits for the three-and six months ended June 30, 2007. * Commission and principal transactions increased $45.1 million, 66% over the previous year second quarter and increased 46% for the six months as compared to 2006. * Investment banking revenue increased to $63.9 million, 306% over the prior year second quarter and increased 240% for the six months as compared to 2006. * Asset management and service fees increased to $25.5 million, 79% over the prior year second quarter and increased to $44.9 million, 62% for the six months ended June 30, 2007. * For the three and six months ended June 30, 2007, utilizing Core earnings, pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern margin was 15% for both periods and annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on average equity totaled 21% and 19% respectively. * We closed on our previously announced acquisition of First Service Financial Company and its bank subsidiary First Service Bank on April 2, 2007. First Service Bank converted its charter from a Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. bank to a Missouri trust company and changed its name to Stifel Bank and
Trust.
* We completed an additional private placement of $35.0 million of 6.78% Cumulative Trust Preferred Securities on June 29, 2007. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). were used to call the Company's $34.5 million 9% Cumulative Trust Preferred Securities on July 13, 2007. * The Company has successfully converted 33 of 37 Ryan Beck branch offices to date and expect to complete the conversion of all Ryan Beck offices in the third quarter. Chairman and Chief Executive Officer, Ronald J. Kruszewski, commented, "Our Company posted outstanding results in a quarter characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. both by favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. equity markets and a hostile fixed income environment. The integration of Ryan Beck is proceeding smoothly and on schedule. We are especially pleased with the endorsement A signature on a Commercial Paper or document. An endorsement on a negotiable instrument, such as a check or a promissory note, has the effect of transferring all the rights represented by the instrument to another individual. of our business platform by the Ryan Beck financial advisors as evidenced by the fact we have experienced virtually no attrition Attrition The reduction in staff and employees in a company through normal means, such as retirement and resignation. This is natural in any business and industry. Notes: since the closing of our merger. Looking forward, we see continued volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the in the markets and a potential retrenchment re·trench·ment n. The cutting away of superfluous tissue. within our industry. Historically, while this environment may impact short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. results, it is during those times that our firm has added to our capabilities and we see many opportunities to do likewise today." Revenue Year to date comparisons were impacted by the resultant This article is about the resultant of polynomials. For the result of adding two or more vectors, see Parallelogram rule. For the technique in organ building, see Resultant (organ). In mathematics, the resultant of two monic polynomials increased activity from the successful integration of the LM Capital Markets business acquired on December December: see month. 1, 2005, the Ryan Beck acquisition on February February: see month. 28, 2007, the First Service acquisition on April 2, 2007, and the Company's continued expansion of the PCG, including the Miller Johnson Steichen and Kinnard ("MJSK MJSK Miller Johnson Steichen Kinnard, Inc ") purchase on December 5, 2006. As a result of the Ryan Beck and MJSK acquisitions, the Company added 1,013 employees and 51 offices. Except as noted in the following discussion of variances for the total Company and the ensuing en·sue intr.v. en·sued, en·su·ing, en·sues 1. To follow as a consequence or result. See Synonyms at follow. 2. To take place subsequently. segment results, the underlying reasons for the increase in revenue and expense categories can be attributed principally to the acquisitions and increased number of PCG offices and PCG financial advisors. Commission and Principal Transactions Second Quarter Commission and principal transaction revenue increased 66% to $113.9 million from $68.8 million in the same period last year with increases of 106% and 30% in PCG and ECM respectively, and a decrease of 8% in Fixed Income Capital Markets ("FICM FICM Fuel Injection Control Module (diesel engines) FICM Fellow of the Institute of Credit Management FICM Fleet Intelligence Collection Manual FICM Fault Induced Conductor Motion "). Six Months Commission and principal transaction revenue increased 46% to $201.9 million from $138.6 million in the same period last year with increases of 69%, 22% and 7% in PCG, ECM, and FICM, respectively. Investment Banking Revenue Second Quarter Investment banking revenue increased 306% to $63.9 million from $15.8 million from the same period last year. During the quarter, the Company completed a significant corporate investment banking transaction for $24.3 million. Capital raising revenue was $34.1 million, up 421% over the prior year. Strategic advisory fees increased 224% to $29.8 million from $9.2 million in the same prior year period. Six Months Investment banking revenue increased 240% to $107.0 million from $31.5 million from the same period last year. Capital raising revenue increased 422% to $61.4 million from $11.7 million in the prior year. Strategic advisory fees increased 131% to $45.6 million from $19.8 million in the same prior year period. Asset Management and Service Fees Second Quarter Asset management and service fees increased 79% to $25.5 million from $14.2 million in the second quarter of last year as a result of increased fees of $4.2 million resulting from the Ryan Beck acquisition along with a 25% increase in the number of Stifel Nicolaus Stifel Nicolaus is the largest subsidiary of Stifel Financial Corp. and is a member of SIPC and listed on the New York Stock Exchange. Stifel Financial Corp. managed accounts and a 33% increase in the value of assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. in those accounts. Six Months Year to date asset management and service fees increased 62% to $44.9 million from $27.7 million in the prior year as a result of increased fees of $5.6 million resulting from the Ryan Beck acquisition along with a 27% increase in the number of Stifel Nicolaus managed accounts and a 38% increase in the value of assets under management in those accounts. Net Interest Revenue Second Quarter Net interest revenue increased 77% to $7.0 million from $4.0 million in the same period last year due principally to increased revenue from increased interest charged on customer margin accounts, increased interest earned on fixed income inventory held for sale to customers, and interest earned from our newly acquired (Stifel Bank and Trust) banking operations offset by increased costs to carry higher levels of firm inventory, increased interest expense resulting from the debenture debenture (dəbĕn`chər), document acknowledging indebtedness. In Great Britain a debenture is practically the same as a bond, and debenture stock is similar to preferred stock. issued in the second quarter of 2007 and interest expense associated with our banking operations. Six Months Net interest revenue increased 72% to $12.2 million from $7.1 million in the same period last year due principally to increased revenue from increased interest charged on customer margin accounts, increased interest earned on fixed income inventory held for sale to customers, and interest earned from our banking operations offset by increased costs to carry higher levels of firm inventory, increased interest expense resulting from the debenture issued in the second quarter of 2007 and interest expense associated with our banking operations. Non-Interest Expenses Employee Compensation and Benefits Second Quarter Employee compensation and benefits increased 120% to $163.8 million from $74.4 million in the second quarter last year. As a percentage of net revenue, compensation and benefits totaled 77.6% in the second quarter of 2007 compared to 72.5% in the second quarter of 2006. A portion of compensation and benefits includes transition pay of $6.7 million (3.2% of net revenue) and $3.5 million (3.4% of net revenue) for the three months ended June 30, 2007 and June 30, 2006, respectively, in connection with the Company's continuing expansion efforts. In addition, for the three months ended June 30, 2007, compensation and benefits includes $21.8 million in connection with the Ryan Beck acquisition, primarily a charge related to the acceleration of vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: arising from the amendment of the Ryan Beck deferred compensation plan and $5.4 million, primarily stock-based compensation, for acquisition related payments in connection with the LM Capital Markets acquisition. For the three months ended June 30, 2006 compensation and benefits includes $7.8 million, primarily stock-based compensation, for acquisition related payments in connection with the LM Capital Markets acquisition. Excluding the acquisition related charges, compensation and benefits as a percentage of net revenue totaled 64.8% for both 2007 and 2006. The Company excludes acquisition related expenses in its analysis of compensation and benefits, a non-GAAP measure; because it believes exclusion exclusion /ex·clu·sion/ (eks-kloo´zhun) 1. a shutting out or elimination. 2. surgical isolation of a part, as of a segment of intestine, without removal from the body. of acquisition related compensation is a more useful tool in measuring compensation as a percentage of net revenue. Six Months Employee compensation and benefits increased 70% to $274.6 million from $161.1 million in the same period last year. As a percentage of net revenue, compensation and benefits totaled 74.6% for the six months ended June 30, 2007 compared to 75.9% for the six months ended June 30, 2006. A portion of compensation and benefits includes transition pay of $11.3 million (3.1% of net revenue) and $6.6 million (3.1% of net revenue) for the six months ended June 30, 2007 and June 30, 2006, respectively, in connection with the Company's continuing expansion efforts. In addition, for the six months ended June 30, 2007, compensation and benefits includes $21.8 million in connection with the Ryan Beck acquisition, primarily a charge related to the acceleration of vesting arising from the amendment of the Ryan Beck deferred compensation plan and $11.5 million, primarily stock-based compensation, for acquisition related payments in connection with the LM Capital Markets acquisition. For the six months ended June 30, 2006 compensation and benefits includes $25.3 million, primarily stock-based compensation, for acquisition related payments in connection with the LM Capital Markets acquisition. Excluding the acquisition related charges, compensation and benefits as a percentage of net revenue totaled 65.6% for 2007 and 64.0% for 2006. The Company excludes acquisition related expenses in its analysis of compensation and benefits, a non-GAAP measure; because it believes exclusion of acquisition related compensation is a more useful tool in measuring compensation as a percentage of net revenue. Operating Expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. Second Quarter Excluding compensation and benefits and non-compensation acquisition related charges, operating expenses increased 166% from the prior year second quarter. As a percentage of net revenue excluding compensation and benefits and non-compensation acquisition related charges, operating expenses were 20% in the second quarter of 2007 and 16% in the second quarter of 2006. The Company excludes compensation and benefits and non-compensation acquisition related charges in its analysis of operating expenses, a non-GAAP measure, because it believes exclusion of compensation and benefits and non-compensation acquisition related charges is a more useful tool in measuring operating expenses as a percentage of net revenue. Six Months Excluding compensation and benefits and non-compensation acquisition related charges, operating expenses increased 60% from the prior year first six months. As a percentage of net revenue excluding compensation and benefits and non-compensation acquisition related charges, operating expenses were 20% in the first six months of 2007 and 21% in the first six months of 2006. The Company excludes compensation and benefits and non-compensation acquisition related charges in its analysis of operating expenses, a non-GAAP measure, because it believes exclusion of compensation and benefits and non-compensation acquisition related charges is a more useful tool in measuring operating expenses as a percentage of net revenue. Business Segment Results Private Client Group Second Quarter PCG net revenue for the second quarter of 2007 was $118.3 million, an increase of 115% from the second quarter of 2006 principally due to increased commissions and principal transactions, sales credits from investment banking and increased asset management and service fees. Sales credits from investment banking increased due to increased underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. activity, principally corporate finance (See ECM discussion). Asset management and service fees increased as previously noted (See Asset Management and Service Fees discussion). PCG net revenue increased 38% from the first quarter of 2007. PCG operating contribution increased to $26.4 million, 126% over the second quarter of 2006, as a result of the 115% increase in net revenue and the leverage in increased production. Six Months PCG net revenue for the first six months of 2007 was $203.8 million, an increase of 84% from the first six months of 2006 principally due to increased commissions and principal transactions, sales credits from investment banking and increased asset management and service fees. Sales credits from investment banking increased due to increased underwriting activity, principally corporate finance (See ECM discussion). Asset management and service fees increased as previously noted (See Asset Management and Service Fees discussion). PCG operating contribution increased to $44.5 million, 84% over the comparable 2006 period as a result of the 84% increase in net revenue and the leverage in increased production. Equity Capital Markets Second Quarter ECM recorded record net revenues of $78.4 million in the second quarter 2007, an increase of 122% from the same quarter last year, principally due to increased commissions and principal transactions and increased investment banking revenue. During the quarter, the Company completed a significant corporate investment banking transaction for $24.3 million. Investment banking revenue increased principally due to financial advisory fees of $29.4 million, a 238% increase over last year's second quarter, and equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. revenue of $19.2 million, up 464% compared to the second quarter of 2006. Non-interest expenses increased 111% to $57.9 million in the second quarter of 2007 compared to $27.4 million in the second quarter of 2006 principally due to a 141% increase in employee compensation and benefits to $46.5 million compared to $19.3 million in the second quarter of 2006. The increase in employee compensation and benefits is primarily due to an increase in variable compensation associated with increased revenue. As a percentage of net revenues, employee compensation and benefits was 59.3% and 54.6% for the second quarter of 2007 and 2006, respectively. Increases in all non-compensation expense categories can be attributed to the increased revenue. ECM operating contribution increased 159% to $20.5 million in the second quarter of 2007 compared to $7.9 million in the prior year period as a result of the 122% increase in net revenues and the leverage in increased production. Six Months ECM recorded record net revenues of $130.9 million in the first six months of 2007, an increase of 89% from the first six months of 2006, principally due to increased commissions and principal transactions which increased 22% to $54.1 million and increased investment banking revenue which increased 216% to $76.1 million. During the second quarter of 2007 the Company closed on a significant corporate finance investment banking transaction which contributed $24.3 million in revenue. Investment banking revenue increased principally due to financial advisory fees of $45.1 million, a 136% increase over last year's six month period, and equity financing revenue of $31.0 million, up 596% compared to the first six months of 2006 Non-interest expenses increased 81% to $97.0 million in the first six months of 2007 compared to $53.7 million in the first six months of 2006 principally due to a 99% increase in employee compensation and benefits to $77.4 million compared to $39.0 million in the first six months of 2006. The increase in employee compensation and benefits is primarily due to an increase in variable compensation associated with increased revenue. As a percentage of net revenues, employee compensation and benefits was 59.1% and 56.4% for the first six months of 2007 and 2006, respectively. ECM operating contribution increased 120% to $33.9 million in the first six months of 2007 compared to $15.4 million in the prior year period as a result of the 89% increase in net revenues and the leverage in increased production. Fixed Income Capital Markets Second Quarter FICM net revenues for the second quarter of 2007 decreased 1% to $10.5 million from $10.6 million during the same time period last year, principally due to inventory losses discussed previously and lower commission and principal transactions revenues, partially offset by an increase in investment banking revenue. Investment banking revenue increased 78% principally due to increased underwriting activity. Interest revenue increased $3.1 million principally as a result of increased interest received on increased levels of fixed income inventory held for sale to clients. Interest expense increased $3.6 million as a result of increased interest expense incurred to carry that inventory and inventory losses related to the change in interest rates. Non-interest expenses increased $1.5 million or 16% to $11.1 million primarily due to a 13% increase in employee compensation and benefits which increased in conjunction with increased productivity. As a result of the decrease in net revenues and the increase in non-interest expenses, FICM operating contribution decreased $1.6 million. Six Months FICM posted net revenues for the first six months of 2007 increased 14% to $25.1 million from $22.1 million during the same time period last year, principally due to an increase in commissions and principal transactions and investment banking revenue, partially offset by trading losses The following contains a list of trading losses which eventually forced major corporations to go bankrupt or restructure parts of their organisation. This list is not exhaustive. incurred in the second quarter of 2007 resulting from weaker bond markets. Investment banking revenue increased principally due to increased underwriting activity. Interest revenue increased $7.2 million principally as a result of increased interest received on increased levels of fixed income inventory held for sale to clients. Interest expense increased $7.9 million as a result of increased interest expense incurred to carry that inventory. Non-interest expenses increased $4.5 million or 23% to $23.8 million primarily due to a 27% increase in employee compensation and benefits. Operating contribution decreased 54% to $1.3 million from $2.7 million in the first six months of 2006 principally as a result of inventory losses discussed above. Banking Segment Second Quarter The Banking Segment ("Banking"), which operations began with the acquisition of Stifel Bank & Trust on April 2, 2007, posted net revenue of $1.1 million and an operating contribution of 274,000 in the second quarter of 2007. Prior period comparative data is not included as we acquired Stifel Bank & Trust on April 2, 2007. Other Segment Second Quarter Other Segment, which includes acquisition charges related to the LM Capital Markets and Ryan Beck acquisition, posted net revenue of $2.7 million, an increase of 50% from the prior year second quarter. During the second quarter, the Other Segment recorded an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $43.9 million which consists of $14.2 million from other operations, $5.5 million related to charges from the LM Capital Markets acquisition, primarily stock based compensation (discussed in the Core Earnings section), and $24.2 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the charges associated with the Ryan Beck acquisition (discussed in Core Earnings section) compared to the prior year quarter operating loss of $16.7 million, which consist of $8.2 million from other operations and $8.5 million from the LM Capital Markets acquisition. The increase in the loss from other operations can be attributed to the acquisition charges related to the Ryan Beck acquisition combined with increases in other variable compensation for increased Core earnings, travel and promotion, occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy and equipment rental and other operating expenses associated with the continued growth of the firm. Six Months Other Segment, which includes acquisition charges related to the LM Capital Markets and Ryan Beck acquisition, posted net revenue of $7.0 million, a decrease of 30% from the prior year principally as a result of a decrease in gains on investments relating to the $5.1 million gain posted in the first quarter of 2006 for the company's ownership of its New York Stock Exchange seat During the first six months, the Other Segment recorded an operating loss of $62.5 million which consists of $25.5 million from other operations, $11.7 million related to charges from the LM Capital Markets acquisition, primarily stock based compensation (discussed in the Core Earnings section), and $25.3 million relating to the charges associated with the Ryan Beck acquisition (discussed in Core Earnings section) compared to the prior year operating loss of $37.6 million, which consist of $11.3 million from other operations and $26.3 million from the LM Capital Markets acquisition. The increase in the loss from other operations can be attributed to a reduction of net revenue resulting from the gain on the sale of the New York Stock Exchange ("NYSE") seat in the first quarter of 2006 combined with increases in travel and promotion, occupancy and equipment rental and other operating expenses associated with the continued growth of the firm. [TABLE OMITTED] Core Earnings After adjusting for acquisition related charges, principally compensation expense recorded for the amendment of the Ryan Beck deferred compensation plans and stock based awards offered to key associates of LM Capital Markets and accounted for under SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 123R, non-GAAP net income and non-GAAP earnings per diluted share, our Core earnings, for the quarter ended June 30, 2007 were $18.9 million and $1.09, respectively and for the six months ended June 30, 2007 were $32.0 million and $1.96 respectively . We believe Core earnings provides investors, rating agencies, and financial analysts with a more meaningful measure of the Company's operating performance. Core Earnings for the quarter excludes pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta acquisition charges of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $29.7 million or $1.01 per diluted share. Included in these acquisition related charges are: 1) compensation charges of approximately $5.4 million for amortization of units awarded to LM Capital Markets associates, severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when , and contractually based compensation above standard performance based compensation; 2) $21.8 million in connection with the amendment of the Ryan Beck deferred compensation plan and amortization of units awarded to the Ryan beck associates; and 3) other non-compensation acquisition charges of $2.5 million. See Reconciliation of Core Earnings table. Core Earnings for the six months excludes pre-tax acquisition charges of approximately $37.0 million or $1.33 per diluted share. Included in these acquisition related charges are: 1) compensation charges of approximately $11.5 million for amortization of units awarded to LM Capital Markets associates, severance, and contractually based compensation above standard performance based compensation; 2) $21.8 million in connection with the amendment and acceleration of the Ryan Beck deferred compensation plan and amortization of units awarded to the Ryan beck associates; and 3) other non-compensation acquisition charges of $3.7 million. See Reconciliation of Core Earnings table. Statement of Financial Condition Total assets increased 51% to $1.6 billion from $1.1 billion at December 31, 2006, principally as a result of increased levels of firm inventory for sale to customers. Total stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. increased $168.0 million, or 76%, to $388.2 million. The increase in equity exceeded net income due to the amortization of stock-based awards and the acquisition of Ryan Beck and the resultant increase in net book value, partially offset by repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of common stock for treasury. Conference Call Information Stifel Financial Corp. will hold a conference call Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , August 10, 2007, at 10:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . This call will be Web cast and slides can be accessed on the Investor Relations Investor relations The process by which the corporation communicates with its investors. portion of the Stifel Financial Corp. website at www.stifel.com, as well as on all sites within Thomson/CCBN's Investor Distribution Network. To participate in the question and answer portion on the call, please dial 888-676-3684 and request the Stifel Financial Corp. earnings call. Company Information Stifel Financial Corp. operates 177 offices in 28 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). through its principal subsidiary, Stifel Nicolaus and Company, Inc., and 3 European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. offices through Stifel Nicolaus Limited. Stifel Nicolaus provides securities brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. , investment banking, trading, investment advisory, and related financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , primarily, to individual investors, professional money managers, businesses, and municipalities. To learn more about Stifel, please visit the Company's web site at www.stifel.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this press release not dealing with historical results are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and are based on various assumptions. The forward-looking statements in this press release are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by the statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among other things, the following possibilities: the ability to successfully integrate the acquired companies; a material adverse change in the financial condition,; the risk of borrower BORROWER, contracts. He to whom a thing is lent at his request. 2. The contract of loan confers rights, and imposes duties on the borrower' 1. In general, he has the right to use the thing borrowed, during the time and for the purpose intended between the , depositor and other customer attrition Customer attrition, also known as customer churn, customer turnover, or customer defection, is a business term used to describe loss of clients or customers. ; a change in general business and economic conditions; changes in the interest rate environment, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies or guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. ; changes in legislation and regulation; other economic, competitive, governmental, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. , geopolitical ge·o·pol·i·tics n. (used with a sing. verb) 1. The study of the relationship among politics and geography, demography, and economics, especially with respect to the foreign policy of a nation. 2. a. , and technological factors affecting the companies' operations, pricing, and services; and other risk factors referred to from time to time in filings made by Stifel with the Securities and Exchange Commission. Forward-looking statements speak only as to the date they are made. Stifel does not undertake to update forward-looking statements to reflect circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or or events that occur after the date the forward-looking statements are made. Stifel disclaims any intent or obligation to update these forward-looking statements. 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