Piper Sandler Companies has recently released its 10-K report, providing a comprehensive overview of its business operations. The company operates as an investment bank and institutional securities firm, offering a range of services including investment banking, institutional sales, trading, and research services for various equity and fixed income products. Additionally, it provides advisory services such as mergers and acquisitions, equity private placements, and debt and restructuring advisory.
In the year ended December 31, 2023, Piper Sandler reported net revenues of $1,347,967, a 5.4% decrease from the previous year. The company's compensation and benefits totaled $897,034, representing an 8.8% decrease from the prior year. The non-compensation expenses amounted to $328,347, reflecting a 6.7% increase from the previous year. The company reported an income before income tax expense of $122,586, marking an 8.8% decrease from the prior year. The net income attributable to Piper Sandler Companies was $85,491, representing a 22.8% decrease from the previous year. The earnings per diluted common share stood at $4.96, reflecting a 23.9% decrease from the prior year.
Piper Sandler Companies also provided non-GAAP financial measures, which exclude certain items to present a more meaningful basis for comparison of its operating results across periods. The adjusted net revenues for the year ended December 31, 2023, were $1,330,197, a 7.2% decrease from the previous year. The adjusted compensation and benefits amounted to $845,976, reflecting a 5.6% decrease from the prior year. The adjusted non-compensation expenses totaled $271,278, representing a 1.0% increase from the previous year. The adjusted operating income was $212,943, marking a 20.9% decrease from the prior year. The adjusted net income attributable to Piper Sandler Companies was $166,393, reflecting a 17.3% decrease from the previous year. The adjusted earnings per diluted common share stood at $9.28, representing a 17.6% decrease from the prior year.
Piper Sandler Companies highlighted its strategic activities, including the expansion of its business through strategic investments and the addition of partners, growth of its investment banking platform, and market share gains in advisory services and equity brokerage businesses. The company also completed several acquisitions in 2022 as part of its growth strategy.
The company emphasized that the performance of the financial services industry, in which it operates, is highly correlated to the overall strength of macroeconomic conditions, financial market activity, and the effect of geopolitical events. Piper Sandler Companies acknowledged the sensitivity of its profitability to factors such as the demand for investment banking services, volatility of the equity and fixed income markets, changes in interest rates and credit spreads, and overall market liquidity.
