Piper Sandler Companies (PIPR) Q3 2021 Earnings Call Transcript

Piper Sandler Companies (NYSE:PIPR)
Q3 2021 Earnings Call
Oct 29, 2021, 10:00 a.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Good morning, and welcome to the Piper Sandler Companies conference call to discuss the financial results for the third quarter of 2021. During the question-and-answer session, securities industry professionals may ask questions of management. The company has asked that I remind you that statements on this call that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements that involve inherent risks and uncertainties. Factors that could cause actual results to differ materially from those anticipated or identified in the company’s earnings release and reports on file with the SEC, which are available on the company’s website at www.pipersandler.com and on the SEC website at www.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 of the company’s website and at the SEC website. As a reminder, this call is being recorded. And now I would like to turn the call over to Mr. Chad Abraham.

Sir, you may begin your call.

Chad R. Abraham — Chairman & Chief Executive Officer

Good morning, everyone. Thank you for joining our call to review our results for the third quarter of 2021. I am here with Deb Schoneman, our President; and Tim Carter, our CFO. We will go through our prepared remarks and then open up the call for questions. We recorded the fourth consecutive quarter with net revenues at or above $400 million, as we’re experiencing strong demand for our services across the platform. We generated adjusted net revenues of $440 million for the third quarter, a 26.3% operating margin and adjusted EPS of $4.55.

For the first nine months of 2021, we recorded adjusted net revenues of $1.3 billion, a 26.4% operating margin and adjusted EPS of $14.08, all record-setting activity. Our success in the marketplace and the strength of our platform continue to present opportunities for us to add high-quality teams. We were very pleased to announce our combination with Cornerstone Macro earlier in October. Deb will provide more details on the acquisition in her remarks. Turning to our corporate investment banking business. We generated total corporate investment banking revenues of $293 million in the third quarter of 2021, representing our fourth consecutive quarter with revenues in excess of $250 million. Performance during the quarter was…