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Financial Results Include a Number of Significant Items, Primarily Non-Cash

MINNEAPOLIS--(BUSINESS WIRE)-- Piper Jaffray Companies (NYSE: PJC) today announced a net loss from continuing operations of $153.0 million, or $9.76 per diluted share, for the quarter ended December 31, 2008. Substantially all of the loss was attributable to a number of significant items that totaled $146.3 million after-tax, or $9.33 per diluted share, $127.1 million of which were non-cash. In the fourth quarter of 2007, net income from continuing operations was $6.5 million, or $0.37 per diluted share. Net income from continuing operations in the third quarter of 2008 was a loss of $27.5 million, or $1.75 per diluted share. Fourth quarter 2008 net revenues from continuing operations were $59.4 million, compared to $147.9 million in the year-ago period, which was a record for the firm since becoming a public company. Net revenues declined 19 percent compared to the third quarter of 2008. Comparative results for 2007 and 2008 in this earnings release have been restated as more fully described below.

The significant items that impacted the fourth quarter 2008 financial results were:

“Operating conditions further deteriorated in the fourth quarter affecting nearly all of our businesses. We took steps to reduce our operating cost structure and manage and mitigate risk exposure,” said Chairman and Chief Executive Officer Andrew S. Duff. “Our actions were not able to overcome the severe market conditions and our operating results suffered.”

Duff said, “Despite this extraordinarily difficult operating backdrop, we are very mindful that our firm has a unique opportunity to capitalize on the turmoil in the competitive landscape. During 2008, we enhanced our talent base by adding nearly 47 senior client-facing professionals. Together with the investments that we have made to enhance our franchise across geography, sectors and products, we are well positioned to gain market share and capitalize on more positive market cycles.”

Change in Stock-Based Compensation Accounting Treatment and Restatement

In January 2009, the company in consultation with its auditor, Ernst & Young LLP, determined that the post-termination provisions for certain equity awards granted in 2008, 2007 and 2006 did not meet the criteria for an in-substance service condition as required by Statement of Financial Accounting Standards No. 123(R), “Share-Based Payment”, which the company adopted on January 1, 2006. This determination necessitated restating results for 2008, 2007 and 2006 to recognize expense for all of the outstanding affected equity awards in the year in which those awards were deemed to be earned rather than over the three-year vesting period.

The total expense impact resulting from the revised stock-based compensation treatment was $51.7 million after-tax ($81.5 million pre-tax), which includes the unamortized expense for the outstanding affected equity awards that were granted in 2008, 2007 and 2006 and an accrual for the equity awards earned in 2008 that will be granted in February 2009. The total expense was largely non-cash. The cumulative impact on shareholders’ equity was an increase of $29.9 million after-tax, essentially all driven by the deferred tax benefit associated with the increase in expense.

As a result of the revised stock-based compensation treatment, 2009 and future years’ compensation expense (based on current compensation plans) will reflect all of the cost for annual stock-based awards earned each year. Therefore, compensation expense will more closely match the revenue generated in a particular year. Compensation expense for 2009 will be reduced as a result of the revised stock-based compensation treatment, and will be reflected in a lower compensation ratio by approximately four percentage points, or a goal of approximately 60 percent for 2009.

Outstanding equity awards will continue to vest on a three-year cliff vesting schedule, and post-termination provisions will continue to apply unaffected by the change in accounting treatment. Performance-based, retention and certain recruiting awards will continue to be amortized over the vesting period.

The supplemental restated schedules attached to this earnings release display the impacts to the financial results for 2008, 2007 and 2006. The following summarizes the financial impacts to net income/(loss), shareholders’ equity and fully diluted EPS:

  As Reported   Restated   Difference
Basic EPS   Diluted EPS Basic EPS   Diluted EPS Basic EPS   Diluted EPS
Income/(loss) from continuing operations
Nine Months Ended Sept. 30, 2008 $ (2.20) $ (2.20) $ (1.92) $ (1.92) $ 0.28 $ 0.28
 
For the Year Ended 2007 2.73 2.59 1.50 1.36 (1.23) (1.23)
 
For the Year Ended 2006 3.49 3.32 1.29 1.19 (2.20) (2.13)

Additional information regarding the restatement will be set forth in the company’s current report on Form 8-K dated today and in its forthcoming annual report on Form 10-K for the year ended December 31, 2008. The preliminary restated information included in this press release is subject to completion of the audit of the company’s financial statements.

Results of Continuing Operations

Fourth Quarter

Net Revenues

Investment Banking

For the fourth quarter of 2008, total investment banking revenues were $25.5 million, down 74 percent and 50 percent compared to the fourth quarter of 2007 and the third quarter of 2008, respectively. Industry-wide market conditions further eroded in the quarter, significantly reducing activity in equity financings, mergers and acquisitions and public finance. For example, during the fourth quarter of 2008, only one IPO was completed in the U.S., ending a year with the lowest level of IPOs since the 1970s. In addition, industry statistics reflect that compared to the third quarter of 2008, the number of completed merger and acquisition transactions declined by nearly 30 percent and the par value of total public finance underwriting declined by 23 percent.

The following is a recap of completed deal information for the fourth quarter of 2008:

Institutional Sales and Trading

For the quarter ended December 31, 2008, institutional sales and trading generated net revenues of $28.5 million, down 38 percent from the same quarter last year and up 58 percent compared to the third quarter of 2008.

Fourth Quarter

Non-Interest Expenses

For the fourth quarter of 2008, compensation and benefits expenses were $48.7 million, down 52 percent compared to the fourth quarter of 2007 and down 40 percent compared to the third quarter of 2008. The decreases compared to both periods were mainly driven by significantly reduced incentives due to lower financial results.

The compensation ratio for the fourth quarter of 2008 was 81.9 percent, compared to 68.2 percent in the fourth quarter of 2007, and 109.4 percent in the third quarter of 2008.

For the fourth quarter of 2008, non-compensation expenses were $179.3 million, compared to $41.7 million in the fourth quarter of 2007 and $39.8 million in the third quarter of 2008. The fourth quarter of 2008 included several significant items which increased expenses by $144.1 million pre-tax:

Full Year 2008

For the full year of 2008, continuing operations generated a net loss of $183.5 million, or $11.59 per diluted share. For the full year of 2007, continuing operations generated net income of $24.6 million, or $1.36 per diluted share.

For 2008, net revenues from continuing operations were $326.4 million, down 35 percent from $504.4 million reported in 2007. Equity sales and trading revenues were $129.9 million, up 9 percent year-over-year. Fixed income sales and trading produced positive revenues for the year of $6.3 million despite severe conditions throughout 2008. Within fixed income sales and trading, municipal sales and trading, municipal proprietary trading, and taxable sales and trading revenues were strong and in aggregate doubled from the previous year. However, due to the turmoil in the financial markets, lower revenues in investment banking, high yield and structured products, and TOBs largely offset the positive results.

The following is a recap of completed deal information for the full year of 2008:

Full Year 2008

Non-Interest Expenses

For the full year of 2008, compensation and benefits expenses were $249.4 million, compared to $329.8 million in 2007. The compensation ratio for 2008 was 76.4 percent compared to 65.4 percent for 2007.

Non-compensation expenses for the full year were $300.6 million, compared to $144.1 million in 2007. Full year 2008 non-compensation expenses included several significant items which increased expenses:

For the full year of 2008, pre-tax operating margin from continuing operations was negative 68.5 percent, 50.4 percentage points of which were attributable to the significant items outlined above. For the full year 2007, pre-tax operating margin was 6.0 percent.

Additional Shareholder Information

    As of Dec. 31, 2008   As of Sept. 30, 2008   As of Dec. 31, 2007
Full time employees:   1,045   1,140   1,205
FAMCO AUM   $5.9 billion   $7.4 billion   $9.0 billion
Shareholders’ equity*:   $764.4 million   $922.6 million   $948.0 million
Annualized Return on Average Tangible Shareholders’ Equity*1  

(18.2)%

 

(17.7)%

 

4.2%

Book value per share*:   $48.74   $58.85   $60.53
Tangible book value per share*:   $37.57   $39.72   $41.25

*As restated

1Tangible shareholders’ equity equals total shareholders’ equity less goodwill and identifiable intangible assets. Annualized return on average tangible shareholders’ equity is computed by dividing annualized net earnings less goodwill impairment charge by average monthly tangible shareholders’ equity. Management believes that annualized return on tangible shareholders’ equity is a meaningful measure of performance because it reflects the tangible equity deployed in our businesses. This measure excludes the portion of our shareholders’ equity attributable to goodwill and identifiable intangible assets. The majority of our goodwill is a result of the 1998 acquisition of our predecessor company, Piper Jaffray Companies Inc., and its subsidiaries by U.S. Bancorp. The following table sets forth a reconciliation of shareholders’ equity to tangible shareholders’ equity. Shareholders’ equity is the most directly comparable GAAP financial measure to tangible shareholders’ equity.

  Average for the  
Three Months Ended   Three Months Ended As of

(Dollars in thousands)

Dec. 31, 2008 Dec. 31, 2007 Dec. 31, 2008
 
Shareholders' equity $

843,479

$

933,857

$

764,399

Deduct: Goodwill and identifiable intangible assets

  268,605   310,876   175,105

Tangible shareholders' equity

$

574,874

$

622,981

$

589,294

Conference Call

Andrew S. Duff, chairman and chief executive officer, and Debbra L. Schoneman, chief financial officer, will host a conference call to discuss first quarter results on Monday, February 2 at 9 a.m. ET (8 a.m. CT). The call can be accessed via live audio webcast available through the company’s web site at www.piperjaffray.com or by dialing (866) 244-9933, or (706) 758-0864 internationally, and referring to conference ID 80642497 and the leader's name, Andrew Duff. Callers should dial in at least 15 minutes early to receive instructions. A replay of the conference call will be available beginning at approximately 11 a.m. ET on February 2, 2008 at the same web address or by calling (800) 642-1687, or (706) 645-9291 internationally.

About Piper Jaffray

Piper Jaffray Companies (NYSE: PJC) is a leading, international middle market investment bank and institutional securities firm, serving the needs of middle market corporations, private equity groups, public entities, nonprofit clients and institutional investors. Founded in 1895, Piper Jaffray provides a comprehensive set of products and services, including equity and debt capital markets products; public finance services; mergers and acquisitions advisory services; high-yield and structured products; institutional equity and fixed-income sales and trading; and equity and high-yield research. With headquarters in Minneapolis, Piper Jaffray has 28 offices across the United States and international locations in London, Shanghai and Hong Kong. Piper Jaffray & Co. is the firm's principal operating subsidiary. (www.piperjaffray.com)

Cautionary Note Regarding Forward-Looking Statements

This press release and the conference call to discuss the contents of this press release contain forward-looking statements. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are subject to significant risks and uncertainties that are difficult to predict. These forward-looking statements cover, among other things, statements made about general economic and market conditions, our current deal pipelines, the environment and prospects for capital markets transactions and activity, management expectations, anticipated financial results (including expectations regarding revenue and expense levels, the compensation ratio, and break-even performance), liquidity and capital resources, expectations regarding inventory positions, changes in our accounting policy related to stock-based compensation, our planned financial restatements and estimation of restatement amounts, or other similar matters. These statements involve inherent risks and uncertainties, both known and unknown, and important factors could cause actual results to differ materially from those anticipated or discussed in the forward-looking statements including (1) market and economic conditions or developments may be unfavorable, including in specific sectors in which we operate, and these conditions or developments (including market fluctuations or volatility) may adversely affect the environment for capital markets transactions and activity and our business, revenue levels and profitability, (2) the volume of anticipated investment banking transactions as reflected in our deal pipelines (and the net revenues we earn from such transactions) may differ from expected results if any transactions are delayed or not completed at all or if the terms of any transactions are modified, (3) we may not be able to compete successfully with other companies in the financial services industry, (4) our ability to manage expenses to attain break-even performance at reduced revenue levels may be limited by the fixed nature of certain expenses as well as the impact from unanticipated expenses during the year, (5) an inability to access capital readily or on terms favorable to us could impair our ability to fund operations and could jeopardize our financial condition, (6) an inability to readily divest or transfer inventory positions may result in future inventory levels that differ from management’s expectations and potential financial losses from a decline in value of illiquid positions, (7) the use of estimates and valuations in the application of our accounting policies, particularly our critical accounting policies, require significant estimation and judgment by management, (8) the results of the audit of our restated financial information could require adjustments to such information, and (9) the other factors described under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2007 and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2007, and updated in our subsequent reports filed with the SEC (available at our Web site at www.piperjaffray.com and at the SEC Web site at www.sec.gov). Forward-looking statements speak only as of the date they are made, and readers are cautioned not to place undue reliance on them. We undertake no obligation to update them in light of new information or future events.

© 2009 Piper Jaffray & Co., 800 Nicollet Mall, Suite 800, Minneapolis, Minnesota 55402-7020

Piper Jaffray Companies
Preliminary Unaudited Results of Operations
               

Three Months Ended

For the Year Ended

 

Percent Inc/(Dec)

 

(Amounts in thousands, except per share data)

Dec. 31,
2008

Sept. 30,
2008
Restated

Dec. 31,
2007
Restated

4Q '08
vs. 3Q '08

4Q '08
vs. 4Q '07

 

Dec. 31,
2008

 

Dec. 31,
2007
Restated

Percent
Inc/(Dec)

Revenues:
Investment banking $ 23,985 $ 48,313 $ 93,547 (50.4 ) % (74.4 ) % $ 159,747 $ 302,428 (47.2 ) %
Institutional brokerage 23,359 12,834 39,549 82.0 (40.9 ) 117,201 151,464 (22.6 )
Interest 9,714 10,509 14,644 (7.6 ) (33.7 ) 48,496 60,873 (20.3 )
Asset management 3,985 4,314 5,344 (7.6 ) (25.4 ) 16,969 6,446 163.2
Other income   1,170     697     1,716   67.8   (31.8 )   2,639     6,856   (61.5 )
Total revenues 62,213 76,667 154,800 (18.9 ) (59.8 ) 345,052 528,067 (34.7 )
 
Interest expense   2,803     3,148     6,923   (11.0 ) (59.5 )   18,655     23,689   (21.3 )
 
Net revenues   59,410     73,519     147,877   (19.2 ) (59.8 )   326,397     504,378   (35.3 )
 
Non-interest expenses:
Compensation and benefits 48,653 80,421 100,824 (39.5 ) (51.7 ) 249,438 329,811 (24.4 )
Occupancy and equipment 8,699 8,092 8,710 7.5 (0.1 ) 33,034 32,482 1.7
Communications 5,893 6,597 6,476 (10.7 ) (9.0 ) 25,098 24,772 1.3
Floor brokerage and clearance 2,892 3,342 3,446 (13.5 ) (16.1 ) 12,787 14,701 (13.0 )
Marketing and business development 5,673 6,099 8,494 (7.0 ) (33.2 ) 25,249 26,619 (5.1 )
Outside services 11,992 9,270 10,021 29.4 19.7 41,212 34,594 19.1
Restructuring-related expenses 9,712 4,570 - 112.5 N/M 17,865 - N/M
Goodwill impairment 130,500 - - N/M N/M 130,500 - N/M
Other operating expenses   3,923     1,830     4,506   114.4   (12.9 )   14,821     10,970   35.1  
Total non-interest expenses   227,937     120,221     142,477   89.6   60.0   %   550,004     473,949   16.0   %
 

Income/(loss) from continuing operations before income tax expense/(benefit)

(168,527 ) (46,702 ) 5,400 260.9 N/M (223,607 ) 30,429 N/M
 
Income tax expense/(benefit)   (15,496 )   (19,166 )   (1,094 ) (19.1 ) N/M     (40,133 )   5,790   N/M  
 
Net income/(loss) from continuing operations   (153,031 )   (27,536 )   6,494   455.7   N/M     (183,474 )   24,639   N/M  
 
Income/(loss) from discontinued operations, net of tax   (287 )   (653 )   -   (56.0 ) N/M     499     (2,696 ) N/M  
 
Net income/(loss) $ (153,318 ) $ (28,189 ) $ 6,494   443.9   % N/M   $ (182,975 ) $ 21,943   N/M  
 
Earnings per basic common share
Income/(loss) from continuing operations $ (9.76 ) $ (1.75 ) $ 0.41 457.7 % N/M $ (11.59 ) $ 1.50 N/M
Income/(loss) from discontinued operations   (0.02 )   (0.04 )   -   (50.0 ) N/M     0.03     (0.16 ) N/M  
Earnings per basic common share $ (9.78 ) $ (1.79 ) $ 0.41 446.4 % N/M $ (11.55 ) $ 1.33 N/M
 
Earnings per diluted common share
Income/(loss) from continuing operations $ (9.76 ) $ (1.75 ) $ 0.37 457.7 % N/M $ (11.59 ) $ 1.36 N/M
Income/(loss) from discontinued operations   (0.02 )   (0.04 )   -   (50.0 ) N/M     0.03     (0.15 ) N/M  
Earnings per diluted common share $ (9.78 ) $ (1.79 ) $ 0.37 (446.4 ) % N/M $ (11.55 ) $ 1.21 N/M
 
Weighted average number of common shares outstanding
Basic 15,676 15,772 15,663 (0.6 ) % 0.1 % 15,837 16,474 (3.9 ) %
Diluted 15,676 15,772 17,381 (0.6 ) % (9.8 ) % 15,837 18,117 (12.6 ) %
 
N/M - Not meaningful
Piper Jaffray Companies      
Preliminary Unaudited Revenues From Continuing Operations (Detail)
   
Three Months Ended   For the Year Ended

 

 

Percent Inc/(Dec)

 

(Dollars in thousands)  

Dec. 31, 2008

Sept. 30,
2008
Restated

Dec. 31,
2007
Restated

4Q '08
vs. 3Q '08

4Q '08
vs. 4Q '07

 

Dec. 31,
2008

Dec. 31,
2007
Restated

 

Percent
Inc/(Dec)

Investment banking
Financing
Equities $ 4,225 $ 11,397 $ 42,985 (62.9 ) % (90.2 ) % $ 40,845 $ 141,981 (71.2 ) %
Debt 10,687 17,771 16,713 (39.9 ) (36.1 ) 63,125 80,045 (21.1 )
Advisory services   10,584   21,358     36,747 (50.4 ) (71.2 )   68,523   89,449 (23.4 )
Total investment banking 25,496 50,526 96,445 (49.5 ) (73.6 ) 172,493 311,475 (44.6 )
 
Institutional sales and trading
Equities 28,040 35,302 34,639 (20.6 ) (19.1 ) 129,867 119,688 8.5
Fixed income   432   (17,280 )   11,185 N/M   (96.1 )   6,295   61,122 (89.7 )
Total institutional sales and trading 28,472 18,022 45,824 58.0 (37.9 ) 136,162 180,810 (24.7 )
 
Asset management 3,985 4,314 5,344 (7.6 ) (25.4 ) 16,969 6,446 163.2
 
Other income 1,457 657 264 121.6 451.9 773 5,647 (86.3 )
               
Net revenues $ 59,410 $ 73,519   $ 147,877 (19.2 ) % (59.8 ) % $ 326,397 $ 504,378 (35.3 ) %
 
N/M - Not meaningful
Piper Jaffray Companies
Preliminary Unaudited Results of Operations
   
Nine Months Ended
Sept. 30, Sept. 30,
2008 2008
(Amounts in thousands, except per share data) As Reported Adjustments Restated
Revenues:
Investment banking $ 135,762 $ - $ 135,762
Institutional brokerage 93,842 - 93,842
Interest 38,782 - 38,782
Asset management 12,984 - 12,984
Other income   (2,173 )   3,642     1,469  
Total revenues 279,197 3,642 282,839
 
Interest expense   15,852     -     15,852  
 
Net revenues   263,345     3,642     266,987  
 
Non-interest expenses:
Compensation and benefits 203,823 (3,038 ) 200,785
Occupancy and equipment 24,335 - 24,335
Communications 19,205 - 19,205
Floor brokerage and clearance 9,895 - 9,895
Marketing and business development 19,576 - 19,576
Outside services 29,220 - 29,220
Restructuring-related expenses 10,213 (2,060 ) 8,153
Other operating expenses   10,898     -     10,898  
Total non-interest expenses   327,165     (5,098 )   322,067  
 

Loss from continuing operations before income tax benefit

(63,820 ) 8,740 (55,080 )
 
Income tax benefit   (28,799 )   4,162     (24,637 )
 
Net loss from continuing operations   (35,021 )   4,578     (30,443 )
 
Income from discontinued operations, net of tax   786     -     786  
 
Net loss $ (34,235 ) $ 4,578   $ (29,657 )
 
Earnings per basic common share
Loss from continuing operations $ (2.20 ) $ (1.92 )
Income from discontinued operations   0.05     0.05  
Earnings per basic common share $ (2.15 ) $ (1.87 )
 
Earnings per diluted common share
Loss from continuing operations $ (2.20 ) $ (1.92 )
Income from discontinued operations   0.05     0.05  
Earnings per diluted common share $ (2.15 ) (1

)

 

$ (1.87 ) (1 )
 
Weighted average number of common shares outstanding
Basic 15,891 - 15,891
Diluted 15,891

(1

)

- 15,891 (1 )
 
(1) In accordance with SFAS 128, earnings per diluted common share is not calculated in periods a loss is incurred.
Piper Jaffray Companies
Preliminary Unaudited Results of Operations
     
For the Year Ended
Dec. 31, Dec. 31,
2007 2007
(Amounts in thousands, except per share data) As Reported Adjustments Restated
Revenues:
Investment banking $ 302,428 $ - $ 302,428
Institutional brokerage 151,464 - 151,464
Interest 60,873 - 60,873
Asset management 6,446 - 6,446
Other income   1,400     5,456     6,856  
Total revenues 522,611 5,456 528,067
 
Interest expense   23,689     -     23,689  
 
Net revenues   498,922     5,456     504,378  
 
Non-interest expenses:
Compensation and benefits 291,870 37,941 329,811
Occupancy and equipment 32,482 - 32,482
Communications 24,772 - 24,772
Floor brokerage and clearance 14,701 - 14,701
Marketing and business development 26,619 - 26,619
Outside services 34,594 - 34,594
Other operating expenses   10,970     -     10,970  
Total non-interest expenses   436,008     37,941     473,949  
 

Income from continuing operations before income tax expense

62,914 (32,485 ) 30,429
 
Income tax expense   17,887     (12,097 )   5,790  
 
Net income from continuing operations   45,027     (20,388 )   24,639  
 
Loss from discontinued operations, net of tax   (2,811 )   115     (2,696 )
 
Net income $ 42,216   $ (20,273 ) $ 21,943  
 
Earnings per basic common share
Income from continuing operations $ 2.73 $ 1.50
Loss from discontinued operations   (0.17 )   (0.16 )
Earnings per basic common share $ 2.56 $ 1.33
 
Earnings per diluted common share
Income from continuing operations $ 2.59 $ 1.36
Loss from discontinued operations   (0.16 )   (0.15 )
Earnings per diluted common share $ 2.43 $ 1.21
 
Weighted average number of common shares outstanding
Basic 16,474 - 16,474
Diluted 17,355 762 18,117
Piper Jaffray Companies      
Preliminary Unaudited Results of Operations
 
 
For the Year Ended
Dec. 31, Dec. 31,
2006 2006
(Amounts in thousands, except per share data) As Reported Adjustments Restated
Revenues:
Investment banking $ 298,309 $ - $ 298,309
Institutional brokerage 160,502 - 160,502
Interest 64,110 - 64,110
Asset management 222 - 222
Other income   12,094     2,114     14,208  
Total revenues 535,237 2,114 537,351
 
Interest expense   32,303     -     32,303  
 
Net revenues   502,934     2,114     505,048  
 
Non-interest expenses:
Compensation and benefits 291,265 66,639 357,904
Occupancy and equipment 30,660 - 30,660
Communications 23,189 - 23,189
Floor brokerage and clearance 13,292 - 13,292
Marketing and business development 24,664 - 24,664
Outside services 28,053 - 28,053
Other operating expenses   (6,062 )   -     (6,062 )
Total non-interest expenses   405,061     66,639     471,700  
 

 

Income from continuing operations before income tax expense

97,873 (64,525 ) 33,348
 
Income tax expense   34,974     (24,764 )   10,210  
 
Net income from continuing operations   62,899     (39,761 )   23,138  
 
Income from discontinued operations, net of tax   172,354     (67 )   172,287  
 
Net income $ 235,253   $ (39,828 ) $ 195,425  
 
Earnings per basic common share
Income from continuing operations $ 3.49 $ 1.29
Income from discontinued operations   9.57     9.57  
Earnings per basic common share $ 13.07 $ 10.86
 
Earnings per diluted common share
Income from continuing operations $ 3.32 $ 1.19
Income from discontinued operations   9.09     8.88  
Earnings per diluted common share $ 12.40 $ 10.07
 
Weighted average number of common shares outstanding
Basic 18,002 - 18,002
Diluted 18,968 431 19,399
Piper Jaffray Companies      
Preliminary Unaudited Results of Operations
 
 
(Amounts in thousands) As Reported Adjustments Restated
 
1/1/06 Shareholders' equity $ 754,827 $ - $ 754,827
2006 Net income 235,253 (39,828 ) 195,425
Other shareholders' equity   (65,641 )   63,709     (1,932 )
12/31/06 Shareholders' equity 924,439 23,881 948,320
2007 Net income 42,216 (20,273 ) 21,943
Other shareholders' equity   (54,066 )   31,837     (22,229 )
12/31/07 Shareholders' equity 912,589 35,445 948,034
2008 Net loss (34,235 ) 4,578 (29,657 )
Other shareholders' equity   12,826     (8,644 )   4,182  
9/30/08 Shareholders' equity $ 891,180   $ 31,379   $ 922,559  
 
 
9/30/08 Shareholders' equity restated $ 922,559
Q4 2008 Net loss (153,318 )
Q4 Other shareholders' equity   (4,842 )
12/31/2008 Shareholders' equity $ 764,399  

Source: Piper Jaffray Companies

For Piper Jaffray Companies
Jennifer A. Olson-Goude, 612-303-6277 (Investor Relations)
Rob Litt, 612-303-8266 (Media Relations)