Piper Sandler Companies (NYSE:PIPR) Q4 2023 Earnings Call Transcript
Piper Sandler Companies (NYSE:PIPR) Q4 2023 Earnings Call Transcript February 2, 2024
Piper Sandler Companies isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Good morning, and welcome to the Piper Sandler Companies conference call to discuss the financial results for the Fourth Quarter and Full Year of 2023. During the question-and-answer session, securities industry professionals may ask questions of management. The company will make forward-looking statements on this call that are not historical or current facts, including statements about beliefs and expectations, and involve inherent risks and uncertainties. Factors that could cause actual results differ materially from those anticipated are identified in the company's earnings release and reports on file with the SEC which are available on the company's website at pipersandler.com and on the SEC website at sec.gov.
This call will also include statements regarding certain non-GAAP financial measures. The non-GAAP measures should be considered in addition to and not a substitute for measures of financial performance prepared in accordance with GAAP. Please refer to the company's earnings release issued today for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measure. The earnings release is available on the Investor Relations page on the company's website and at the SEC website. As a reminder, this call is being recorded. And now I'd like to turn the call over to Mr. Chad Abraham. Mr. Abraham, you may begin.
Chad Abraham: Good morning, everyone, and thanks for joining us today to talk about our fourth quarter and full year results for 2023. I am here with Deb Schoneman, our President; and Kate Clune, our newly appointed CFO. I'd like to welcome Kate to her first of many earnings calls. She is an excellent addition to Piper Sandler and our leadership team. Kate has an impressive skill set, and we look forward to leveraging that to help drive the firm's next stage of growth. We also have Tim Carter with us today, our former CFO, who is serving as Senior Vice President of Finance through the transition before retiring in April. I'd like to thank Tim for his leadership. He has been an incredible partner to me and instrumental in helping guide us through our growth over the years, including several transformative acquisitions.
Tim Carter: Thanks, Chad. I feel incredibly fortunate to have spent over 28 years at Piper Sandler, and I'm really proud of everything we've accomplished. The firm is well positioned, and I'm excited to have Kate in the CFO seat to guide us through the next stage of growth. It's been an absolute honor to work side-by-side with so many fantastic people at Piper Sandler, which is what I'll miss most.
Chad Abraham: Thanks, Tim. Now turning to our results. Our diversified platform performed well during 2023 despite challenging market conditions for much of the year. We finished the year strong with the fourth quarter representing our best quarter of 2023 as well as our third highest quarterly revenues on record. We generated adjusted net revenues of $457 million, a 21.7% operating margin and adjusted EPS of $4.03. On a full year basis, adjusted net revenues were $1.3 billion, generating a 16% operating margin and adjusted EPS of $9.28. There are a number of highlights worth noting from 2023. Advisory services revenues represented over half of our total net revenues for the third consecutive year. The business delivered its second strongest quarter on record and accounted for 60% of total net revenues for the fourth quarter.
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