NEW
YORK, Jan. 26, 2024 /PRNewswire/ - Oppenheimer
Holdings Inc. (NYSE: OPY) (the "Company" or "Firm") today reported
net income of $11.1 million or
$1.07 basic earnings per share for
the fourth quarter of 2023 compared with net income of $22.4 million or $2.04 basic earnings per share for the fourth
quarter of 2022. Adjusted net income(a) was $16.1 million or $1.56 basic earnings per share for the fourth
quarter of 2023, after excluding $5.0
million of expense related to a regulatory settlement.
Revenue for the fourth quarter of 2023 was $308.3 million compared to revenue of
$313.6 million for the fourth quarter
of 2022, a decrease of 1.7%.
For the year ended December 31,
2023, the Company reported net income of $30.2 million or $2.81 basic earnings per share compared with net
income of $32.4 million or
$2.77 basic earnings per share for
the year ended December 31, 2022.
Adjusted net income(a) was $43.2
million or $4.02 basic
earnings per share for the year ended December 31, 2023, after excluding $13.0 million of expense related to a regulatory
settlement. Revenue for the year ended December 31, 2023 was $1.2
billion compared to revenue of $1.1
billion for the year ended December
31, 2022, an increase of 12.4%.
Summary Operating
Results (Unaudited)
|
('000s, except per
share amounts or otherwise indicated)
|
|
4Q-23
|
4Q-22
|
FY-23
|
FY-22
|
Revenue
|
$ 308,289
|
$ 313,580
|
$
1,248,825
|
$
1,110,941
|
Compensation
Expense
|
$ 193,196
|
$ 197,683
|
$ 782,396
|
$ 740,827
|
Non-compensation
Expense
|
$
97,261
|
$
85,625
|
$ 419,659
|
$ 324,560
|
Pre-Tax
Income
|
$
17,832
|
$
30,272
|
$
46,770
|
$
45,554
|
Income Taxes
Provision
|
$ 6,236
|
$ 7,885
|
$
16,498
|
$
13,444
|
Net Income
(1)
|
$
11,100
|
$
22,413
|
$
30,179
|
$
32,351
|
Adjusted Net Income
(1)(a)
|
$
16,100
|
N/A
|
$
43,179
|
N/A
|
Earnings Per Share
(Basic) (1)
|
$ 1.07
|
$ 2.04
|
$ 2.81
|
$ 2.77
|
Adjusted Earnings Per
Share (Basic) (1)(a)
|
$ 1.56
|
N/A
|
$ 4.02
|
N/A
|
Earnings Per Share
(Diluted) (1)
|
$ 0.98
|
$ 1.87
|
$ 2.59
|
$ 2.57
|
Adjusted Earnings Per
Share (Diluted) (1)(a)
|
$ 1.42
|
N/A
|
$ 3.71
|
N/A
|
Book Value Per
Share
|
$ 76.72
|
$ 72.41
|
$ 76.72
|
$ 72.41
|
Tangible Book Value Per
Share (2)
|
$ 59.54
|
$ 56.91
|
$ 59.54
|
$ 56.91
|
(1) Attributable to
Oppenheimer Holdings Inc.
|
(2) Represents
preliminary book value less goodwill and intangible assets divided
by number of shares outstanding
|
Highlights
- Increased revenues for the full year 2023 due to record bank
deposit sweep income and margin interest income and substantially
higher fixed income sales and trading revenues than prior year
- Reduced net income and earnings per share for the fourth
quarter largely reflected fewer investment banking transactions and
regulatory charges
- Higher non-compensation expenses for the full year 2023 mostly
attributable to the impact of significant legal costs and an
accrual for a regulatory settlement
- Client assets under administration and under management were
both at higher levels compared with the prior quarter and year
end
- The Company repurchased 900,518 shares of Class A non-voting
common stock during the full year 2023 at an average price of
$39.00 per share under its previously
announced share repurchase program and "Dutch Auction" tender
offer, which resulted in 10,186,783 shares of Class A non-voting
common stock remaining outstanding as of December 31, 2023
- Book value per share reached record levels at December 31, 2023 as a result of positive
earnings and share repurchases
- The effective tax rate of 35.3% reflects the impact of a
non-deductible $13.0 million
regulatory settlement for the full year 2023. The adjusted
effective tax rate(b) is 27.6% when this expense is
excluded
Albert G. Lowenthal,
Chairman and CEO commented, "The Company generated profitable
results for the full year 2023 despite mixed macroeconomic
conditions and significantly higher legal and regulatory costs. The
costs of a particular legal matter (which we now believe is behind
us from a financial point of view) and, the impact of a
non-recurring accrual related to an SEC industry-wide focus on
'off-channel communications' was approximately $70 million for the year. But for these, the
Company would have produced a decent return despite the ongoing
drought in Investment Banking activity.
The year began with markets anticipating either a mild
recession or a "soft landing" with nominal growth and high but
declining inflation driven by a Federal Reserve ("FED") committed
to interest rate increases. The economic outlook gradually improved
as inflation receded, unemployment held steady and the FED signaled
potential rate cuts in 2024. The financial markets improved along
with the economic outlook, as what began as a narrow rally focused
on generative A.I. stocks eventually broadened into an "everything
rally" by the year's end, with most major indices ending the year
at or near their all-time highs in spite of continued geopolitical
tensions in Ukraine and
Gaza.
Throughout these evolving market conditions, our diversified
businesses registered a year-over-year increase in total
revenues. Higher short-term interest rates propelled record
high full-year bank deposit sweep and margin interest income in our
Wealth Management business as well as large increases in fixed
income sales and trading revenues in our Capital Markets segment.
The rising markets and addition of new client assets also drove
improvements in the valuation of client assets under management
throughout the year, though asset-based advisory fees did not fully
recover to last year's levels. Investment banking revenues continue
to be adversely impacted by reduced corporate transactions and a
moribund IPO environment.
We ended the year with a strong balance sheet and record high
book value per share levels. Our Class A share count is
significantly reduced from the prior year due to share repurchases
during the year. While market conditions proved challenging at
times, I am optimistic about the future as we strengthened our
competitive posture through strategic additions to personnel and I
am appreciative of the commitment and success of existing staff in
providing exceptional service to our clients."
Segment Results
(Unaudited)
|
('000s, except per
share amounts or otherwise indicated)
|
|
4Q-23
|
4Q-22
|
FY-23
|
FY-22
|
Private
Client
|
Revenue
|
$
203,834
|
$
201,748
|
$
801,754
|
$
675,680
|
Pre-Tax
Income
|
$
53,945
|
$
49,331
|
$
194,444
|
$
142,250
|
Assets Under
Administration (billions)
|
$
118.2
|
$
105.0
|
$
118.2
|
$
105.0
|
|
|
|
|
|
Asset
Management
|
Revenue
|
$
21,446
|
$
22,940
|
$
88,433
|
$
99,242
|
Pre-Tax
Income
|
$
6,125
|
$
9,837
|
$
24,091
|
$
35,753
|
Asset Under Management
(billions)
|
$
43.9
|
$
36.8
|
$
43.9
|
$
36.8
|
|
|
|
|
|
Capital
Markets
|
Revenue
|
$
81,457
|
$
90,549
|
$
345,897
|
$
337,821
|
Pre-Tax Loss
|
$
(18,179)
|
$
(11,328)
|
$
(62,961)
|
$
(25,696)
|
Fourth Quarter Results
Private Client
Private Client reported revenue of $203.8
million for the fourth quarter of 2023, 1.0% higher compared
with a year ago. Pre-tax income was $53.9
million, an increase of 9.4% compared with a year ago.
Productivity of our financial advisors improved although financial
advisor headcount declined to 931 at the end of the fourth quarter
of 2023 compared to 968 at the end of the fourth quarter of
2022.
('000s, except
otherwise indicated)
|
|
4Q-23
|
4Q-22
|
|
|
|
Revenue
|
$
203,834
|
$
201,748
|
Commissions
|
$
50,098
|
$
46,128
|
Advisory
Fees
|
$
81,023
|
$
76,574
|
Bank Deposit Sweep
Income
|
$
37,534
|
$
49,590
|
Interest
|
$
20,875
|
$
18,880
|
Other
|
$
14,304
|
$
10,576
|
|
|
|
Total
Expenses
|
$
149,889
|
$
152,417
|
Compensation
|
$ 112,200
|
$ 112,919
|
Non-compensation
|
$
37,689
|
$
39,498
|
|
|
|
Pre-Tax
Income
|
$
53,945
|
$
49,331
|
|
|
|
Compensation
Ratio
|
55.0 %
|
56.0 %
|
Non-compensation
Ratio
|
18.5 %
|
19.6 %
|
Pre-Tax
Margin
|
26.5 %
|
24.5 %
|
|
|
|
Assets Under
Administration (billions)
|
$ 118.2
|
$ 105.0
|
Cash Sweep Balances
(billions)
|
$
3.4
|
$
5.5
|
Revenue:
- Retail commissions increased 8.6% from a year ago primarily
driven by higher client activity
- Advisory fees increased 5.8% from a year ago due to higher
valuations of assets under management ("AUM")
- Bank deposit sweep income for the fourth quarter of 2023
decreased $12.1 million from a year
ago due to lower cash sweep balances
- Interest revenue increased 10.6% from a year ago due to higher
short-term interest rates
- Other revenue increased 35.2% compared with a year ago
primarily due to an increase of COLI asset values and insurance
proceeds when compared to the prior year quarter
Total Expenses:
- Compensation expenses were flat compared with a year ago
- Non-compensation expenses decreased 4.6% compared with a year
ago
Asset Management
Asset Management reported revenue of $21.4 million for the fourth quarter of 2023,
6.5% lower compared with a year ago primarily due to the reduced
value of positions held in private equity investments, partially
offset by higher advisory fees based on increased AUM levels.
Pre-tax income was $6.1 million, a
decrease of 37.7% compared with a year ago.
('000s, except
otherwise indicated)
|
|
4Q-23
|
4Q-22
|
|
|
|
Revenue
|
$
21,446
|
$
22,940
|
Advisory
Fees
|
$ 24,236
|
$ 22,936
|
Other
|
$
(2,790)
|
$
4
|
|
|
|
Total
Expenses
|
$
15,321
|
$
13,103
|
Compensation
|
$
5,363
|
$
3,776
|
Non-compensation
|
$
9,958
|
$
9,327
|
|
|
|
Pre-Tax
Income
|
$
6,125
|
$
9,837
|
|
|
|
Compensation
Ratio
|
25.0 %
|
16.5 %
|
Non-compensation
Ratio
|
46.4 %
|
40.7 %
|
Pre-Tax
Margin
|
28.6 %
|
42.9 %
|
|
|
|
AUM
(billions)
|
$
43.9
|
$
36.8
|
Revenue:
- Advisory fee revenue increased 5.7% from a year ago due to
increased management fees resulting from the higher net value of
AUM during the fourth quarter of 2023
- Other revenue decreased $2.8
million from a year ago primarily due to an decrease in the
fair value of positions held in private equity investments
Assets under Management (AUM):
- AUM were $43.9 billion at
December 31, 2023, which is the basis
for advisory fee billings for January
2024
- The increase in AUM from December
31, 2022 to December 31, 2023
was comprised of higher asset values of $6.0
billion on existing client holdings and a net contribution
of assets of $1.1 billion
Total Expenses:
- Compensation expenses were up 42.0% driven primarily by larger
incentive compensation accrual adjustments in the prior year
- Non-compensation expenses increased 6.8% when compared with a
year ago due to higher external portfolio management costs which
are directly related to the assets being managed and higher
communications and technology expenses
Capital Markets
Capital Markets reported revenue of $81.5
million for the fourth quarter of 2023, 10.0% lower compared
with a year ago. Pre-tax loss was $18.2
million compared with a pre-tax loss of $11.3 million a year ago.
('000s)
|
|
|
|
4Q-23
|
4Q-22
|
|
|
|
Revenue
|
$
81,457
|
$
90,549
|
|
|
|
Investment
Banking
|
$
20,704
|
$
32,476
|
Advisory
Fees
|
$
12,740
|
$
25,110
|
Equities
Underwriting
|
$ 5,837
|
$ 5,533
|
Fixed Income
Underwriting
|
$ 1,781
|
$ 1,541
|
Other
|
$
346
|
$
292
|
|
|
|
Sales and
Trading
|
$
60,170
|
$
57,039
|
Equities
|
$
31,092
|
$
33,082
|
Fixed
Income
|
$
29,078
|
$
23,957
|
|
|
|
Other
|
$
583
|
$ 1,034
|
|
|
|
Total
Expenses
|
$
99,636
|
$
101,877
|
Compensation
|
$
58,346
|
$
73,163
|
Non-compensation
|
$
41,290
|
$
28,714
|
|
|
|
Pre-Tax
Loss
|
$
(18,179)
|
$
(11,328)
|
|
|
|
Compensation
Ratio
|
71.6 %
|
80.8 %
|
Non-compensation
Ratio
|
50.7 %
|
31.7 %
|
Pre-Tax
Margin
|
(22.3) %
|
(12.5) %
|
Revenue:
Investment Banking
- Advisory fees earned from investment banking activities
decreased 49.3% compared with a year ago driven by an industry-wide
slowdown in M&A transactions
- Equity and fixed income underwriting fees were relatively flat
with the prior year due to continued industry-wide softness in
capital raising activities
Sales and Trading
- Equities sales and trading decreased 6.0% compared with a year
ago due to lower client activity levels
- Fixed income sales and trading increased 21.4% compared to the
prior year primarily due to an increase in trading income
attributable to higher volumes
Total Expenses:
- Compensation expenses decreased 20.3% compared with the prior
year primarily due to lower incentive compensation
- Non-compensation expenses increased 43.8% compared with a year
ago mainly due to an increase in interest expense in financing
trading inventories
Full Year Results
Private Client
Private Client reported revenue of $801.8
million for the year ended December
31, 2023, 18.7% higher compared with the prior year.
Pre-tax income was $194.4 million, an
increase of 36.7% from the prior year.
('000s)
|
|
FY-23
|
FY-22
|
Revenue
|
$
801,754
|
$
675,680
|
Commissions
|
$ 186,496
|
$ 190,614
|
Advisory
Fees
|
$ 319,191
|
$ 326,240
|
Bank Deposit Sweep
Income
|
$ 172,807
|
$ 104,558
|
Interest
|
$
85,105
|
$
51,866
|
Other
|
$
38,155
|
$ 2,402
|
Total
Expenses
|
$
607,310
|
$
533,430
|
Compensation
|
$ 399,185
|
$ 377,671
|
Non-compensation
|
$ 208,125
|
$ 155,759
|
|
|
|
Pre-Tax
Income
|
$
194,444
|
$
142,250
|
|
|
|
Compensation
Ratio
|
49.8 %
|
55.9 %
|
Non-compensation
Ratio
|
26.0 %
|
23.1 %
|
Pre-Tax
Margin
|
24.3 %
|
21.1 %
|
Assets Under
Administration (billions)
|
$ 118.2
|
$ 105.0
|
Cash Sweep Balances
(billions)
|
$
3.4
|
$
5.5
|
Revenue:
- Retail commissions decreased slightly from the prior year, due
to lower overall client activity, though transaction volumes
improved later in the year
- Advisory fees decreased 2.2% from the prior year due to lower
billable AUM during the year
- Bank deposit sweep income for the full year was a record high
and increased $68.2 million or 65.3%
from the prior year due to higher short-term interest rates,
partially offset by lower cash sweep balances
- Interest revenue increased 64.1% from the prior year due to
record full year margin interest income attributable to higher
short-term interest rates
- Other revenue increased significantly compared with the prior
year primarily due to increases in the cash surrender value of
Company-owned life insurance policies, which fluctuates based on
changes in fair value of the policies' underlying investments
Total Expenses:
- Compensation expenses increased 5.7% from the prior year
primarily due to higher deferred compensation costs
- Non-compensation expenses increased 33.6% from the prior year
primarily due to the impact of significant legal costs
Asset Management
Asset Management reported revenue of $88.4 million for the year ended December 31, 2023, 10.9% lower compared with the
prior year. Pre-tax income was $24.1
million, a decrease of 32.6% compared with the prior
year.
('000s)
|
|
FY-23
|
FY-22
|
|
|
|
Revenue
|
$
88,433
|
$
99,242
|
Advisory
Fees
|
$ 96,259
|
$ 99,224
|
Other
|
$
(7,826)
|
$
18
|
|
|
|
Total
Expenses
|
$
64,342
|
$
63,489
|
Compensation
|
$ 24,846
|
$ 24,261
|
Non-compensation
|
$ 39,496
|
$ 39,228
|
|
|
|
Pre-Tax
Income
|
$
24,091
|
$
35,753
|
|
|
|
Compensation
Ratio
|
28.1 %
|
24.4 %
|
Non-compensation
Ratio
|
44.7 %
|
39.5 %
|
Pre-Tax
Margin
|
27.2 %
|
36.0 %
|
|
|
|
AUM
(billions)
|
$
43.9
|
$
36.8
|
Revenue:
- Advisory fee revenue decreased 3.0% from the prior year
primarily due to lower management fees from advisory programs
attributable to reduced billable AUM levels and lower incentive
fees from alternative investments during the year
- Other revenue decreased $7.8
million from a year ago primarily due to a decrease in the
fair value of positions held in private equity investments
Assets under Management (AUM):
- AUM were $43.9 billion at
December 31, 2023, which is the basis
for advisory fee billings for January
2024
- The increase in AUM from December 31,
2022 to December 31, 2023 was
comprised of higher asset values of $6.0
billion on existing client holdings and a net contribution
of assets of $1.1 billion
Total Expenses:
- Compensation expenses and non-compensation expenses were
relatively flat when compared to the prior year
Capital Markets
Capital Markets reported revenue of $345.9 million for the year ended December 31, 2023, 2.4% higher compared with the
prior year. Pre-tax loss was $63.0
million compared with pre-tax loss of $25.7 million for the prior year.
('000s)
|
|
|
|
FY-23
|
FY-22
|
|
|
|
Revenue
|
$ 345,897
|
$ 337,821
|
|
|
|
Investment
Banking
|
$ 111,734
|
$ 117,101
|
Advisory
Fees
|
$
69,623
|
$
84,569
|
Equities
Underwriting
|
$
33,904
|
$
24,583
|
Fixed Income
Underwriting
|
$
6,594
|
$
8,898
|
Other
|
$
1,613
|
$
(949)
|
|
|
|
Sales and
Trading
|
$ 231,867
|
$ 217,712
|
Equities
|
$ 128,216
|
$ 141,013
|
Fixed
Income
|
$ 103,651
|
$
76,699
|
|
|
|
Other
|
$
2,296
|
$
3,008
|
|
|
|
Total
Expenses
|
$ 408,858
|
$ 363,517
|
Compensation
|
$ 269,330
|
$ 260,974
|
Non-compensation
|
$ 139,528
|
$ 102,543
|
|
|
|
Pre-Tax
Loss
|
$ (62,961)
|
$ (25,696)
|
|
|
|
Compensation
Ratio
|
77.9 %
|
77.3 %
|
Non-compensation
Ratio
|
40.3 %
|
30.4 %
|
Pre-Tax
Margin
|
(18.2) %
|
(7.6) %
|
Revenue:
Investment Banking
- Advisory fees earned from investment banking activities
decreased 17.7% compared with the prior year driven by an
industry-wide slowdown in M&A transactions
- Equities underwriting fees increased 37.9% compared with the
prior year due to higher new issuance volumes and deal sizes,
primarily during the third quarter
- Fixed income underwriting fees were down 25.9% compared with
the prior year primarily driven by less overall new issuance
activity
Sales and Trading
- Equities sales and trading decreased 9.1% compared with the
prior year due to reduced volumes as a result of lower market
volatility
- Fixed income sales and trading increased 35.1% compared with
the prior year driven by higher trading income attributable to
higher volumes
Total Expenses:
- Compensation expenses were slightly higher than the prior year
due to opportunistic hires and inflationary pressures on wages as
well as higher deferred compensation costs
- Non-compensation expenses were 36.1% higher compared with the
prior year mainly due to an increase in interest expense in
financing trading inventories
Other Matters
(In millions, except
number of shares and per share amounts)
|
|
FY-23
|
FY-22
|
Capital
|
|
|
Stockholders' Equity
(1)
|
$
789.2
|
$
794.2
|
Regulatory Net Capital
(2)
|
$
453.6
|
$
432.5
|
Regulatory Excess Net
Capital (2)
|
$
435.0
|
$
408.3
|
|
|
|
Common Stock
Repurchases
|
|
|
Share Repurchase
Program
|
Repurchases
|
$
17.6
|
$
60.6
|
Number of
Shares
|
463,335
|
1,684,287
|
Average Price Per
Share
|
$
38.07
|
$
36.00
|
"Dutch Auction"
Tender Offer
|
Repurchases
|
$
17.49
|
$
—
|
Number of
Shares
|
437,183
|
—
|
Average Price Per
Share
|
$
40.00
|
$
—
|
|
|
|
Period End
Shares
|
10,286,448
|
10,968,221
|
Effective Tax
Rate
|
35.3 %
|
29.5 %
|
|
|
|
(1)
Attributable to Oppenheimer Holdings Inc.
|
(2)
Attributable to Oppenheimer & Co. Inc. broker-dealer
|
- The Board of Directors announced a quarterly dividend in the
amount of $0.15 per share for the
fourth quarter of 2023 payable on February
23, 2024 to holders of Class A non-voting and Class B voting
common stock of record on February 9,
2024
- Compensation expense as a percentage of revenue was 62.7%
during the 2023 year versus 66.7% for the prior year primarily due
to higher interest-sensitive revenues that are not directly
correlated with compensation
- Non-compensation expenses increased 29.3% from the prior year
primarily due to the impact of significant legal costs and an
accrual for a regulatory settlement
- The effective tax rate for the 2023 year was 35.3% compared
with 29.5% for the prior year primarily due to the impact of a
non-deductible $13.0 million
regulatory settlement
Notes
(a) Adjusted net income and earnings per share attributable to
Oppenheimer Holdings Inc. (a non-GAAP financial measure) excludes
$5.0 million and $13.0 million of expense related to a regulatory
settlement that was recognized during the fourth quarter of 2023
and year-ended December 31, 2023,
respectively. Refer to the schedule on page 8 for additional
explanation of non-GAAP financial measures and a reconciliation of
adjusted net income and earnings per share to U.S. GAAP.
(b) Adjusted effective tax rate (a non-GAAP financial measure)
excludes $13.0 million of expense
related to a regulatory settlement that was recognized during the
year-ended December 31, 2023. Refer
to the schedule on page 8 for additional explanation of non-GAAP
financial measures and a reconciliation of the adjusted effective
tax rate to U.S. GAAP.
Company Information
Oppenheimer Holdings Inc., through its operating subsidiaries,
is a leading middle market investment bank and full service
broker-dealer that is engaged in a broad range of activities in the
financial services industry, including retail securities brokerage,
institutional sales and trading, investment banking (corporate and
public finance), equity and fixed income research, market-making,
trust services, and investment advisory and asset management
services. With roots tracing back to 1881, the Company is
headquartered in New York and has
90 retail branch offices in the United
States and institutional businesses located in London, Tel
Aviv, and Hong Kong.
Forward-Looking
Statements
This press release includes certain "forward-looking statements"
relating to anticipated future performance. For a discussion of the
factors that could cause future performance to be different than
anticipated, reference is made to Factors Affecting
"Forward-Looking Statements" and Part 1A – Risk Factors in the
Company's Annual Report on Form 10-K for the year ended
December 31, 2022 and Factors Affecting "Forward-Looking
Statements" in Part I, Item 2 in the Company's Quarterly Report on
Form 10-Q for the quarter ended September
30, 2023.
Oppenheimer Holdings
Inc.
|
Consolidated Income
Statements (Unaudited)
|
('000s, except
number of shares and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
December
31,
|
|
For the Year
Ended
December
31,
|
|
|
2023
|
|
2022
|
|
%
Change
|
|
2023
|
|
2022
|
|
%
Change
|
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions
|
$
90,074
|
|
$
88,075
|
|
2.3
|
|
$
349,248
|
|
$
370,382
|
|
(5.7)
|
|
Advisory
fees
|
105,465
|
|
99,517
|
|
6.0
|
|
415,679
|
|
425,615
|
|
(2.3)
|
|
Investment
banking
|
22,311
|
|
34,013
|
|
(34.4)
|
|
117,665
|
|
127,529
|
|
(7.7)
|
|
Bank deposit sweep
income
|
37,534
|
|
49,590
|
|
(24.3)
|
|
172,807
|
|
104,558
|
|
65.3
|
|
Interest
|
25,859
|
|
22,046
|
|
17.3
|
|
104,550
|
|
60,713
|
|
72.2
|
|
Principal transactions,
net
|
18,712
|
|
10,907
|
|
71.6
|
|
65,347
|
|
21,031
|
|
210.7
|
|
Other
|
8,334
|
|
9,432
|
|
(11.6)
|
|
23,529
|
|
1,113
|
|
2,014.0
|
|
Total
revenue
|
308,289
|
|
313,580
|
|
(1.7)
|
|
1,248,825
|
|
1,110,941
|
|
12.4
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
related expenses
|
193,196
|
|
197,683
|
|
(2.3)
|
|
782,396
|
|
740,827
|
|
5.6
|
|
Communications and
technology
|
23,508
|
|
21,493
|
|
9.4
|
|
91,321
|
|
85,474
|
|
6.8
|
|
Occupancy and equipment
costs
|
16,380
|
|
15,196
|
|
7.8
|
|
66,002
|
|
59,897
|
|
10.2
|
|
Clearing and exchange
fees
|
6,687
|
|
6,643
|
|
0.7
|
|
24,928
|
|
25,566
|
|
(2.5)
|
|
Interest
|
18,246
|
|
10,688
|
|
70.7
|
|
68,599
|
|
23,846
|
|
187.7
|
|
Other
|
32,440
|
|
31,605
|
|
2.6
|
|
168,809
|
|
129,777
|
|
30.1
|
|
Total
expenses
|
290,457
|
|
283,308
|
|
2.5
|
|
1,202,055
|
|
1,065,387
|
|
12.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
Income
|
17,832
|
|
30,272
|
|
(41.1)
|
|
46,770
|
|
45,554
|
|
2.7
|
Income taxes
provision
|
6,236
|
|
7,885
|
|
(20.9)
|
|
16,498
|
|
13,444
|
|
22.7
|
Net
Income
|
$
11,596
|
|
$
22,387
|
|
(48.2)
|
|
$
30,272
|
|
$
32,110
|
|
(5.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income (loss)
attributable to non-controlling interest, net of tax
|
496
|
|
(26)
|
|
*
|
|
93
|
|
(241)
|
|
*
|
Net income
attributable to
Oppenheimer Holdings
Inc.
|
$
11,100
|
|
$
22,413
|
|
(50.5)
|
|
$
30,179
|
|
$
32,351
|
|
(6.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Oppenheimer Holdings Inc.
|
|
|
|
|
|
|
|
|
Basic
|
$
1.07
|
|
$
2.04
|
|
(47.5)
|
|
$
2.81
|
|
$
2.77
|
|
1.4
|
Diluted
|
$
0.98
|
|
$
1.87
|
|
(47.6)
|
|
$
2.59
|
|
$
2.57
|
|
0.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
10,326,996
|
|
10,967,276
|
|
(5.8)
|
|
10,736,166
|
|
11,666,194
|
|
(8.0)
|
|
Diluted
|
11,305,198
|
|
11,969,012
|
|
(5.5)
|
|
11,645,708
|
|
12,607,752
|
|
(7.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end number
of common shares outstanding
|
10,286,448
|
|
10,968,221
|
|
(6.2)
|
|
10,286,448
|
|
10,968,221
|
|
(6.2)
|
*
Percentage not meaningful
|
Explanation of Non-GAAP Financial
Measures
The Company included certain non-GAAP financial measures within
this Earnings Release to supplement the U.S. GAAP financial
information. Adjusted results begin with information prepared in
accordance with U.S. GAAP, and such results are adjusted to exclude
certain items. Specifically, we included non-GAAP measures that
adjust the Company's net income, earnings per share and effective
tax rate to exclude the expense associated with a non-recurring
regulatory settlement. The Company believes that these
non-GAAP financial measures provide additional useful information
for investors because they permit investors to view the financial
measures on a basis consistent with how management views the
operating performance of the Firm. These non-GAAP financial
measures, when presented in conjunction with comparable U.S. GAAP
measures, also are useful to investors when comparing the Company's
results across different financial reporting periods on a
consistent basis.
The following tables reconcile our non-GAAP financial measures
to their respective U.S. GAAP measures. These non-GAAP financial
measures have limitations as analytical tools and should not be
considered in isolation from, as a substitute for, or superior to
the analysis of U.S. GAAP financial measures.
Net Income Attributable to
Oppenheimer Holdings Inc. and Earnings Per Share U.S. GAAP
Reconciliation
Reconciliation of net income attributable to Oppenheimer
Holdings Inc. to adjusted net income attributable to Oppenheimer
Holdings Inc., reconciliation of basic earnings per share to
adjusted basic earnings per share, and reconciliation of diluted
earnings per share to adjusted diluted earnings per share are as
follows:
('000s, except per
share amounts)
|
For the Three Months
Ended
|
|
For the Year
Ended
|
|
December 31,
2023
|
|
December 31,
2023
|
Net income attributable
to Oppenheimer Holdings Inc. (U.S. GAAP)
|
$
11,100
|
|
$
30,179
|
Net income impact of
regulatory settlement
|
5,000
|
|
13,000
|
Adjusted net income
attributable to Oppenheimer Holdings Inc. (non-GAAP)
|
$
16,100
|
|
$
43,179
|
|
|
|
|
Basic earnings per
share (U.S. GAAP)
|
$
1.07
|
|
$
2.81
|
Basic earnings per
share impact of regulatory settlement
|
$
0.49
|
|
$
1.21
|
Adjusted basic earnings
per share (non-GAAP)
|
$
1.56
|
|
$
4.02
|
|
|
|
|
Diluted earnings per
share (U.S. GAAP)
|
$
0.98
|
|
$
2.59
|
Diluted earnings per
share impact of regulatory settlement
|
$
0.44
|
|
$
1.12
|
Adjusted diluted
earnings per share (non-GAAP)
|
$
1.42
|
|
$
3.71
|
Effective Tax Rate U.S. GAAP
Reconciliation
The table below reconciles our effective tax rate to the
adjusted effective tax rate:
|
For the Year
Ended
|
|
December 31,
2023
|
Effective tax rate
(U.S. GAAP)
|
35.3 %
|
Tax rate impact of
regulatory settlement
|
(7.7) %
|
Adjusted effective tax
rate (non-GAAP)
|
27.6 %
|
View original
content:https://www.prnewswire.com/news-releases/oppenheimer-holdings-inc-reports-fourth-quarter-and-full-year-2023-earnings-302045282.html
SOURCE Oppenheimer Holdings Inc.