PIPER SANDLER COMPANIES

For the period ended Dec 31, 2023. Filed Feb 26, 2024.

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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2023 · Filed Feb 26, 2024

PIPR$66.75-1.3%Stored close · as of Nov 10, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

Item 8. Consolidated Financial Statements

	December 31,	December 31,
(Amounts in thousands, except share data)	2023	2022
Assets
Cash and cash equivalents	$383,098	$365,624
Receivables from brokers, dealers and clearing organizations	212,004	300,463
Financial instruments and other inventory positions owned:
Financial instruments and other inventory positions owned	341,780	282,501
Financial instruments and other inventory positions owned and pledged as collateral	92,777	57,478
Total financial instruments and other inventory positions owned	434,557	339,979
Investments (including noncontrolling interests of $211,096 and $200,687, respectively)	298,048	285,726
Fixed assets (net of accumulated depreciation and amortization of $91,378 and $75,759, respectively)	60,770	68,220
Right-of-use lease assets	69,387	87,730
Goodwill	301,760	301,151
Intangible assets (net of accumulated amortization of $150,487 and $131,047, respectively)	116,197	135,637
Net deferred income tax assets	179,207	191,002
Other assets	85,955	106,025
Total assets	$2,140,983	$2,181,557
Liabilities and Shareholders' Equity
Short-term financing	$30,000	$—
Long-term financing	—	125,000
Payables to brokers, dealers and clearing organizations	979	4,622
Financial instruments and other inventory positions sold, but not yet purchased	148,980	60,836
Accrued compensation	486,145	565,738
Accrued lease liabilities	93,727	109,771
Other liabilities and accrued expenses	81,679	61,562
Total liabilities	841,510	927,529
Shareholders' equity:
Common stock, $0.01 par value:
Shares authorized: 100,000,000 at December 31, 2023 and December 31, 2022;
Shares issued: 19,553,101 at December 31, 2023 and 19,544,507 at December 31, 2022;
Shares outstanding: 15,200,149 at December 31, 2023 and 13,673,064 at December 31, 2022	195	195
Additional paid-in capital	988,136	1,044,719
Retained earnings	454,358	453,311
Less: Common stock held in treasury, at cost: 4,352,952 shares at December 31, 2023 and 5,871,443 shares at December 31, 2022	(356,297)	(441,653)
Accumulated other comprehensive loss	(894)	(2,499)
Total common shareholders' equity	1,085,498	1,054,073
Noncontrolling interests	213,975	199,955
Total shareholders' equity	1,299,473	1,254,028
Total liabilities and shareholders' equity	$2,140,983	$2,181,557

	Year Ended December 31,
(Amounts in thousands, except per share data)	2023	2022	2021
Revenues
Investment banking	$923,812	$1,009,509	$1,553,219
Institutional brokerage	377,539	405,267	387,577
Interest income	26,723	20,365	6,967
Investment income/(loss)	30,039	(23)	94,032
Total revenues	1,358,113	1,435,118	2,041,795
Interest expense	10,146	9,480	10,734
Net revenues	1,347,967	1,425,638	2,031,061
Non-interest expenses
Compensation and benefits	897,034	983,524	1,305,166
Outside services	51,754	53,189	45,942
Occupancy and equipment	64,356	64,252	56,946
Communications	52,718	50,565	44,008
Marketing and business development	37,734	42,849	20,902
Deal-related expenses	28,189	31,874	42,921
Trade execution and clearance	19,972	20,185	16,533
Restructuring and integration costs	7,749	11,440	4,724
Intangible asset amortization	19,440	15,375	30,080
Other operating expenses	46,435	18,016	22,327
Total non-interest expenses	1,225,381	1,291,269	1,589,549
Income before income tax expense	122,586	134,369	441,512
Income tax expense	23,613	33,189	111,144
Net income	98,973	101,180	330,368
Net income/(loss) attributable to noncontrolling interests	13,482	(9,494)	51,854
Net income attributable to Piper Sandler Companies	$85,491	$110,674	$278,514
Earnings per common share
Basic	$5.72	$7.92	$19.52
Diluted	$4.96	$6.52	$16.43
Dividends declared per common share	$3.65	$6.90	$6.80
Weighted average number of common shares outstanding
Basic	14,958	13,982	14,265
Diluted	17,224	16,965	16,955

	Year Ended December 31,
(Amounts in thousands)	2023	2022	2021
Net income	$98,973	$101,180	$330,368
Other comprehensive income/(loss), net of tax — Foreign currency translation adjustment	1,605	(1,535)	(767)
Comprehensive income	100,578	99,645	329,601
Comprehensive income/(loss) attributable to noncontrolling interests	13,482	(9,494)	51,854
Comprehensive income attributable to Piper Sandler Companies	$87,096	$109,139	$277,747

Consolidated Statements of Changes in Shareholders' Equity

Accumulated · Total
Common · Additional · Other · Common · Total
(Amounts in thousands,	Shares	Common	Paid-In	Retained	Treasury	Comprehensive	Shareholders'	Noncontrolling	Shareholders'
except share amounts)	Outstanding	Stock	Capital	Earnings	Stock	Loss	Equity	Interests	Equity
Balance at December 31, 2020	13,776,025	$195	$847,785	$271,001	$(289,359)	$(197)	$829,425	$96,657	$926,082
Net income	—	—	—	278,514	—	—	278,514	51,854	330,368
Dividends	—	—	—	(99,350)	—	—	(99,350)	—	(99,350)
Amortization/issuance of restricted stock (1)	—	—	123,270	—	—	—	123,270	—	123,270
Repurchase of common stock through share repurchase program	(417,903)	—	—	—	(52,250)	—	(52,250)	—	(52,250)
Issuance of treasury shares for restricted stock vestings	918,024	—	(46,687)	—	46,687	—	—	—	—
Repurchase of common stock from employees	(154,117)	—	—	—	(17,651)	—	(17,651)	—	(17,651)
Shares reserved/issued for director compensation	7,490	—	1,019	—	—	—	1,019	—	1,019
Other comprehensive loss	—	—	—	—	—	(767)	(767)	—	(767)
Fund capital contributions, net	—	—	—	—	—	—	—	16,134	16,134
Balance at December 31, 2021	14,129,519	$195	$925,387	$450,165	$(312,573)	$(964)	$1,062,210	$164,645	$1,226,855
Net income/(loss)	—	—	—	110,674	—	—	110,674	(9,494)	101,180
Dividends	—	—	—	(107,528)	—	—	(107,528)	—	(107,528)
Amortization/issuance of restricted stock (1)	—	—	176,645	—	—	—	176,645	—	176,645
Repurchase of common stock through share repurchase program	(1,245,221)	—	—	—	(161,811)	—	(161,811)	—	(161,811)
Issuance of treasury shares for restricted stock vestings	953,293	—	(58,254)	—	58,254	—	—	—	—
Repurchase of common stock from employees	(172,156)	—	—	—	(25,523)	—	(25,523)	—	(25,523)
Shares reserved/issued for director compensation	7,629	—	941	—	—	—	941	—	941
Other comprehensive loss	—	—	—	—	—	(1,535)	(1,535)	—	(1,535)
Fund capital contributions, net	—	—	—	—	—	—	—	44,804	44,804
Balance at December 31, 2022	13,673,064	$195	$1,044,719	$453,311	$(441,653)	$(2,499)	$1,054,073	$199,955	$1,254,028
Net income	—	—	—	85,491	—	—	85,491	13,482	98,973
Dividends	—	—	—	(84,444)	—	—	(84,444)	—	(84,444)
Amortization/issuance of restricted stock (1)	—	—	98,285	—	—	—	98,285	—	98,285
Issuance of treasury shares for restricted stock vestings	2,013,046	—	(156,036)	—	156,036	—	—	—	—
Repurchase of common stock from employees	(494,555)	—	—	—	(70,680)	—	(70,680)	—	(70,680)
Shares reserved/issued for director compensation	8,594	—	1,168	—	—	—	1,168	—	1,168
Other comprehensive income	—	—	—	—	—	1,605	1,605	—	1,605
Fund capital contributions, net	—	—	—	—	—	—	—	538	538
Balance at December 31, 2023	15,200,149	$195	$988,136	$454,358	$(356,297)	$(894)	$1,085,498	$213,975	$1,299,473

(1)Includes amortization of restricted stock issued in conjunction with the Company's acquisitions.

	Year Ended December 31,
(Amounts in thousands)	2023	2022	2021
Operating Activities
Net income	$98,973	$101,180	$330,368
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Depreciation and amortization of fixed assets	17,932	15,639	12,630
Deferred income taxes	11,426	(32,802)	(53,981)
Stock-based compensation	93,768	131,203	171,447
Amortization of intangible assets	19,440	15,375	30,080
Amortization of forgivable loans	10,816	9,322	9,505
Decrease/(increase) in operating assets:
Receivables from brokers, dealers and clearing organizations	88,459	(43,392)	(32,639)
Net financial instruments and other inventory positions owned	(6,434)	(58,859)	30,238
Investments	(12,322)	(33,681)	(68,866)
Other assets	28,756	(5,216)	(34,913)
Increase/(decrease) in operating liabilities:
Payables to brokers, dealers and clearing organizations	(3,643)	(8,625)	(5,344)
Accrued compensation	(74,689)	(296,369)	330,883
Other liabilities and accrued expenses	3,147	(18,682)	(12,321)
Net cash provided by/(used in) operating activities	275,629	(224,907)	707,087
Investing Activities
Business acquisitions, net of cash acquired	—	(96,504)	—
Purchases of fixed assets, net	(10,051)	(30,600)	(20,577)
Net cash used in investing activities	(10,051)	(127,104)	(20,577)
Financing Activities
Net change in short-term financing	30,000	—	—
Repayment of long-term financing	(125,000)	—	(70,000)
Payment of cash dividend	(84,444)	(107,528)	(99,350)
Increase in noncontrolling interests	538	44,804	16,134
Repurchase of common stock	(70,680)	(187,334)	(69,901)
Net cash used in financing activities	(249,586)	(250,058)	(223,117)
Currency adjustment:
Effect of exchange rate changes on cash	1,482	(3,272)	(363)
Net increase/(decrease) in cash and cash equivalents	17,474	(605,341)	463,030
Cash and cash equivalents at beginning of year	365,624	970,965	507,935
Cash and cash equivalents at end of year	$383,098	$365,624	$970,965
Supplemental disclosure of cash flow information
Cash paid during the year for:
Interest	$10,163	$9,481	$10,777
Income taxes	$19,446	$85,428	$165,910

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