Earnings call transcript Q4 2022

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Operator

Good morning, and welcome to the Piper Sandler Companies conference call to discuss the Financial Results for the fourth quarter and full year of 2022.

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 are 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. be measures addition in of GAAP. should a and accordance measures for, substitute financial non-GAAP considered to, in not with The performance prepared refer most directly today GAAP measure. release these Please financial comparable company's reconciliation non-GAAP the a of issued to measures the to for earnings The is the available Investor the page of earnings website website. and release company's at on Relations the SEC

is As recorded. this call being reminder, a

call call. over you now, to Chad turn I'd And Abraham, your like Abraham. may the begin to Mr. Mr.

Chad Abraham

Good you our am and thank morning with Tim here CFO. I and us. joining for our Deb President, Schoneman, Carter,

go prepared up will and the then We open through our questions. call for remarks,

and $XX.XX. year and quarter continues thematic, behind XX% a Cornerstone basis, and our to strongest research The expansion industry generating advisory market our second one revenues allies. and backdrop. product, perform Macro share with total a adjusted year boutique revenues, quarter are specialist our best Stamford has a acquired XXXX $XXX in represents in of of banking our diversified the that doubled despite the successful we representing On full margin, There worth Partners, our high We positions the year in on of managing and and advisory and over a headcount strongest of We net we adjusted million, generated market well revenues XXXX an We margin, of grew MDs, generating a for focused $X.X natural Overall, macro, fourth business. DBO a XX.X% quality of equities director in was our quantitative in us EPS growth this continue basis, ever. business which to XXXX platform, important generated highlights net acquired proven XXXX. history. investment revenues with adjusted the We business, platform from number adjusted our on noting technology line, the on record which of further make XX.X% We acquisition most year. of resiliency XXXX. record of a We net our million, finished EPS food challenging second grew brokerage our presence, market sector. European companies, of added earnings as that billion, and a equities operating the were expanding to synergistic $X.XX. XXX Our $XXX our operating capacity of increasing well significant and M&A strides beverage in finishing revenues power our with year platform. marks existing be Partners, net banking year representing

corporate on the $XXX revenues Now, XX% quarter XXXX, our for banking up investment our business. business. of I'll provide million investment an advisory corporate strong of banking total driven sequentially, by generated We in update fourth performance

and restructuring For included year, investment financial from energy from and $XXX our groups. record XXXX million, full by Sector years both declined power the performance. was services, led of performance record relatively broad, and banking our revenues XX%

our strong our insurance, larger of been one we performance have sponsor with joined practices, was growth headcount management, services and non-depository of By specialty revenues from and in was real our Our mandates more experiencing our our depositories, to within during objectives regular that group broad the have on asset our financial combined XXXX, Sandler, for and financial market-leading the and When XXXX fintech. which banking front. we XXXX. M&A a expand included of by to in based real led advisor leveraging same we early In US on XX% in momentum one non-depository these platform. represented transactions, Since the have estate, and sub-sectors. revenues, the total number investment announced on bank time. business, At asset bank we're management, our finance, financial expand that number compares on have adding services XXXX, in revenues mergers the doubled and acquisitions strong are nearly XX% our insurance, and XX time, We estate maintained and contributions combination before to nearly basis winning largest were during depositories. coverage, seven we position advised we of announced non-depository

number XXXX our on Another in power was sector and one We group. completed advisor the in oil number leadership our energy services, deals. we were with strong retained of field based performance where

built last largest diversified With the and we we the over upstream most Street, in presence addition, the few a have group. and years, for on great teams one about tenured this outlook of and In solid energy. our the business feel renewable

less our the Specific to services, XX% $XXX headwinds, was of up generated quarter, fourth advisory million than seasonal of revenues typical market historically. fourth the strong we finish, pickup this but during given the a quarters sequentially,

benefited with we For the of strategic private equity and exceptional year sector $XXX between behind balanced second in generated coverage XXXX. the year, the an diversification strongest from We history, our of advisory our million revenues, clients. business, along

Our the XX% and lower advisory advise revenues negatively from on activity That offset Street, the compared this to record the market continue equity said, which with well to clients. represented revenues, for we XX% private one for from Rising advisory to clients options PE and year sponsors, reduced that on deploy. markets financing interest approximately revenues of XXXX, from these client improve. middle firms to are base when helped resilient strategic maintain par revenues strong clients. rates amounts were have impacted of capital said, businesses strategic financial positioned with deal portfolio XXXX. total PE volatile during companies of clients and approximately and largest With Advisory

taking strides a the closed or deals, and aggregate results. taking XXX than more, a advisory of During our to of able over on advising with billion conditions. rather in With transaction We we M&A focus XX XXXX, announced value. fees, generating trend driver core to longer market key larger size, notwithstanding were fee our transactions average on larger hold be continues average softer

We continue to fourth deals the ranked one M&A were the $X we the US the two XXXX, And advisor. we and full for under year, announced number market take for as advisor quarter on billion. number share, of

Looking forward, our advisory remain pipelines solid.

of However, uncertain. the make current economic conditions those conversion pipelines

XXXX, relative our to a of expect advisory We first first quarter business quarter to to slow to start revenues have anticipate and XXXX. decline our the

$XX financing generated we financing, the fourth slightly corporate the quarter, declined. to lower fourth of revenues for financings quarter, million as debt than Turning

demand, valuations, of during sharply on declined revenues largely million, financing XXXX Increased and record equity issuers sidelines have kept year, reduced the from results. XXXX. the $XXX volatility, For declining

from our For average raising was Against fee declined for of years. in over during of backdrop, last XX XXXX billion the bulk the completed XX the of pool market context, XXXX, $XX equity capital and financings than we XX financings the for represented XX% years, clients. more this XXXX equity activity. Healthcare the lowest our

group completed stock services other billion and depositories $X financial raising debt for and of preferred offerings, financial capital XX Our companies. services

financing activity plans. their companies increase strategic expect on needed to capital execute raise We as XXXX, to in

focused the the director on most Turning banking directors, banking. year we remain firm within managing XXX investment finished We history. filling in headcount, to white spaces managing at investment

transportation talent coverage, notably the automotive Stamford, DBO and of and and acquisitions healthcare and added the to in services, restructuring. addition we year, logistics, aftermarket, product during strengthen to broaden In and industry our

marketplace, in remain Historically, and to of momentum, downturn choice Our resonate success, compelling have add opportunities a culture, top for we the periods tier of market and destination yielded talent. talent.

make. investments in remain and we have the selective with disciplined past, the we we As

it I Before and let turn couple over Tim, remarks. a me concluding to make Deb of

our have returns. and strong we Over and growth executed the delivered strategic decade, last vision shareholder

headcount have years, investment we verticals over significant margin, and to have built last now most from XX XXX. have managing to XX grown the and platform resilient We scale, economy, expanded diverse our a flow. the seven, covering cash Within and of banking with industry director

more flow, more a are offer diverse larger, product more and provide base. more capabilities to We client deal relevant,

equity margins we enhanced while and years. opportunities the addition, of over doubled last growth. meaningful businesses profitability, capabilities our and the platform providing of income and In fixed our brokerage increased have few have The scale for size

and grow client our deepen has a integration platform. Our and the to enabled marketplace, and our partners their in strategy on is key execution revenues relationships differentiator new

noted the to path grow years, gains, corporate continue scaling same the using I as we increasing banking decade, $X industry share on last investment and over to to billion playbook year, next fee transaction last size, several revenues corporate development. the execute annual As the product and groups, over

finance to to Deb turn that, public our brokerage discuss I With businesses. and call the over will

Deb Schoneman

rates, interest municipal is finance investor market Thanks, revenues, update generated down volatility, an municipal sequential demand, lack Chad. quarter. conditions, and on business business. million significantly XX% This the from reduced In fourth begin I'll issuances. unfavorable our nominal financing of have we higher with as experiencing quarter, $XX public of rate the

XX% For We declined year. year, market the our Overall XXXX, down we of the $XXX we generated municipal from two XXXX full from through the our revenues, billion of of underwritings year for clients. last raising issuance par financing maintained of Based $XX transactions, year. underwrote negotiated number prior on value approximately municipal million number ranking. for XXX municipal XX%

decreased sectors. outflows. of component business issuance is public significant However, our our high yield This high performance, XX% fund due to specialty meaningful yield as in approximately a new finance impacted

more conducive uncertain will is it become but pipeline transactions. Our remains strong, when conditions closing to

have sharply we expect remain curtailed to activity, issuance depressing market look rates we volumes. As XXXX, refinancing to Higher conditions challenging. ahead new

expect to that provide we in resiliency leadership the diversification business, our market However, will headwinds. some market and

of sequentially. to brokerage. equity elevated equity to experience revenues up for brokerage million Turning quarter, volumes, Equity fourth markets and the volatility X% driving continue record $XX

equity provided year, on strong broad-based, most ourselves build to goal beginning program, and of full at Performance set the equity Heightened million. $XXX platform succeed all algo business was activity. revenues our an $XXX of the high-touch for the derivatives the trading, tailwinds. generating to of of brokerage revenues year with year volatility the we the For with brokerage through generated at million,

average. coverage. intraday X,XXX platform and of clients between fundamental over clients. Strong than the view of client of under volatility, and between maintain three-year XXXX, largest experienced macro a $XX X,XXX We volatility double research analysts XX% more shares valuable one During for trading our to research the with and clients, in navigate differentiated bringing last is our our small votes. days approximately the unique collaboration strength billion our traded X% space, platforms the by the helped stocks mid-cap recognized we analysts, and The X%, increasing to

we fee volatility. forward lower As XXXX, see to market a with environment, challenging less we more pool likely and a look

that We have further headwinds. products we of and last believe increased market share of our cross-selling most will share the in five gains result these mitigate and market each in quarters,

our turning Lastly, to fixed income business.

of last up fixed of fourth more generated revenues be quarter. basis, the $XX the of rate slowing, sequential the With we to during income were quarter perception year. For and a quarter XXXX, compared clients may fourth on million, increases a fourth flat interest that XX% active

new portfolios depository Our clients of value the municipal in with active active selling, municipals as the their were ahead were advantage well our and clients taking provides. year, and tax as yields repositioning relative loss higher of

million we down last of interest the combined uncertainty negatively full XXXX, year. year produced the For rates, from impacted $XXX and level of Volatility with of curve, an client regarding activity. revenues, terminal XX% yield inverted

The to provide We targeted hires client dislocation XXXX, depth we this should in to to hiring From several analytical asset elevating specialization. targeted an investment opportunity. more and for be invest XXXX, outlook higher opportunity clients class last we expect attractive continue six that the sales current represents the an increased continue to XXXX our months. in in made product fixed as and business, rates, our and relative income look perspective, platform. more With increasingly active in market nominal we

over call Tim update results financial our review to the capital turn will I an on and to provide Now use.

Tim Carter

Thanks, Deb.

the As focused net of on exceptional adjusted XXXX, my billion, quarter revenues down brokerage across XXXX advisory investment quarter, banking our due revenues fourth of driven investment up most XXXX financing, from from Net by We the during of totaled activity. for decreased record comments fixed for impact prior record XX% banking, $XXX fourth and financing from from on million results. XX% reminder, corporate the be corporate the Market year, will businesses $X.X municipal performances had an XXXX. which benefited revenues our third volatility non-gap financial XX% to brokerage and and our revenues. municipal businesses. lower solid adverse of quarter a generated Net income

year strongest despite for and conditions, performance was in However, second our earnings. good, our tough absolute revenues history firm represents and

ratio. XX.X%, operating expenses in our full with and guided line XXXX quarter Turning was for was compensation margin, our the our to And XX.X%. on of ratio ratio year compensation fourth basis, a

quarter to and Non-compensation continued ratio based retention, we the quarter estimate expenses margins. XXXX, we compared Non-compensation maintain remain the consistent excluding In levels the of increased on outlook, to $XX ahead, be costs, expectations. will on our our to reimbursed balance a our excluding as to operating our costs million, Cornerstone expenses. this by philosophy opportunities, outlook, actionable Looking XX% year, for expenses, of fourth addition compared and million, fairly we travel employee third current expenses, XXXX, managing of of with challenging compensation well levels. managing investment up be of for consistent totaled focused deal was costs, with XXXX platform. the X% reimburse Stamford, DBO compensation and with deal of an our driven as increase $XXX and XXXX, Macro, We in to are disciplined XXXX,

non-compensation our around costs continue we expect quarter to Looking fourth to level. this XXXX,

quarter, of our strongest year. income and fourth this the generated of operating we XX.X%, operating $XX million, During quarter margin an

year, margin years. on the with scale highlighting million, an XX.X%, totaled we the both income of the absolute over an For $XXX basis, operating last have few operating built solid

adjusted stock reversed our a benefit recognized XX% date was reduced expense vestings by fourth for smaller quarter tax asset restricted entity, on prices XXXX. grant rate we in $X Income higher tax to than at as and was deferred Our million, valuation the quarter the a tax related price. fourth of allowance UK legal the

fourth these rate was Excluding items, quarter tax our XX.X%.

higher $XX than tax year price, restricted million grant XX.X%, valuation tax reserve vesting the the prices and full benefits was UK stock date effective at which Our adjustment. to related rate totaling included

tax rate Excluding XXXX these adjusted for XX.X%. the items, was

the vestings. adjusted from range Going full year our excluding forward, impact within of we be will expect tax rate to stock a XX% XX%,

quarter we $X.XX. XXXX, generated of fourth of the During $XX diluted net income EPS and of million

was XXXX, $XX.XX. totaled $XXX diluted net and EEPs income For million,

drive capital We Let to me finish capital. committed an on returns. shareholder deploying remain update with to

corporate with and the cash drive and all been on the of buybacks, out to and Our approach, DBO. our deploy build long-term year earnings capacity, development, Stamford, combined during deployed our enables capital of us has dividends. capabilities We've acquisition growth XXXX significant platform to active through capital-light Cornerstone, levels to generate share fronts. through an year

of Combined year, the During returned grants paid to our XXXX, the for repurchased we approximately shares of our offset from shareholders. million, dividends annual stock count and aggregate X.X common share million our year's stock than more million dilution an acquisitions. with which have $XXX during $XXX this we

our or a and Including of board the Given to XXXX the adjusted and of This equals XX% the end a ratio, at $X.XX, year for position, our level of share $X.XX capital payout dividend of strategic is fiscal year dividend, towards full strong this XX% XXXX XX% earnings deployed lower per year to the of ratio today, active income. net of approved special cash capital results. our special during repurchases given payout share acquisitions our year. dividend total related

per cash the of be a XXth March approved board and special March quarterly will the paid on share. dividend shareholders to the on business of addition, In record of quarterly Xrd. as Both dividend of close $X.XX

continue generated executing for to we Overall, plans, earnings as metrics growth. expansion the XXXX long-term with on our of Sandler, great increase strategic strategic balancing few to our are while to strides Piper year marked business. over solid We've of excited the and long-term and profitability the results another years last platform, made capacity successful drive opportunities our we furthered

open questions. I'll that, With the call and stop up for

Operator

Instructions] with first will Devin our JMP And Ryan from question Securities. [Operator come

Devin Ryan

you are How doing? everyone. morning, guys Good

Chad Abraham

Good, Devin.

Devin Ryan

I'll and start you outlook with on maybe Chad, commentary. Good. advisory the

is sense. heard to the but strong, year, the slower obviously makes backlog a expect So, which start that comment the

it number of but talking of peers, a saying from peer your deals you're progression of in about is mandates was deals. pipeline one of terms market a level, hearing centric middle just And the We’re similar like aren't of just of kind at record sounds something the progressing.

the one look bit seeing of little green pipeline, little guys better. a hearing here, incremental then more you're also We're a with start and maybe another. at bit direction year bit of sentiment to is you whether the or move any the it, kind shoots So, a to just better frame around and love how just little in

of in how financing it that's just macro broken, really it view and kind or the and that's things. curious is to some the is it So, forward? stuff affecting Is needs that see - confidence to just of this improve move

Chad Abraham

we Yes, relative certainly. good QX. had Obviously, a a basis, on advisory we thought on pretty

on thought just got start We of measure never a stuff we the probably me what can a quarter. the to closed quarter. lot relative at You advisory of

the So, beginning year. impacts the of some - certainly that so

pipeline, - the are like slow of to mandates relative kind have launching say I updating do not just the ready. is, mean, lot would it's think books They've are They're I really I of new but ready. getting packages, a dying. got we What it's people on transactions.

well private start equity, that's is this still and that advisory start while certainly second recognition, a pretty QX what quarter little expect by seeing based pattern think, relatively, start just And think last think relative thinks we cycle slow. like to I obviously, And lot of the half, the from is and up cautious yes, it in expect but pick to the the I better we're if in probably others, strategic we M&A general, to year. on here. to this year. not we little And pretty strategic bit a going in side I But on I bit scientific. say a back think conditions, So, and And private equity. the going would you're be better, financing We it’s tough. that's everybody incredibly drives better but to half did

Devin Ryan

that. some of commentaries. the Deb, for your and guess for finance Thanks on I great. One Okay, muni

persist, share market there a had here. normalization mean, just you be picture, bigger I guess We've but like bit in about just quite partially will business by what So, looks I of offset improvement come to just off some it XXXX. that the those sounds within level Piper. could a of think trying headwinds like. this tremendous

between something I what I jumping point, in is $XXX the of guess in revenue. mind million was XXXX? are now, question, in maybe company did it the so, off in right your and And kind quarter we think normal fourth where

bit when to a kind think settle maybe where Just that constructive could more in environment. settle trying down little we’re markets of and about in the

Deb Schoneman

the and the say, I'd one part say, would But Devin, that's is become to of is was is Yes, part of by amount and predict. refunding constructive, little things the I and biggest mean, far I the the in more that settle when down that in issuance. markets XXXX key saw of a driver significantly of the decline you that coming the difficult down.

of so, due does out comes and that that ultimately some rates of is marketplace. And into that where how - back settle the much where ultimately

us the piece for business thing is, other groups going and diversification more the reliant we which have, that given to see. high that The need we're market, our the yield that's another are to of specialty on

back out started but one Our year with in month. back it's some after of the coming inflows month inflows into consistently outflows coming month, which funds, those year after a

And so, it piece us. that's of for just another

sides between really about business. over our business balanced of the You and think those pretty time governmental is specialty

see, of a landing gets bit it to a your there how is point, somewhere it those between two, but question. So, just quickly definitely

Devin Ryan

you. no, but completely understood, thank Yep,

Tim the terms some between the XXXX costs opportunity external here balance also one flip still guys and and side, focus in a last Just grow had talked recruiting of think of nice M&A. firm there's you as lot both I about, of kind just great to a the on tuck-in on

in to a is curious ahead, you balancing in XXXX, to of given as the appetite versus much do upfront just you just create the of bit going that kind in And kind did XXXX, a of that so, as term. near of that maybe dynamic look opportunity as the cost little drag

Chad Abraham

into at buckets. We're still Yes, really that, two breaking we're it when look driving focused and I on think we growth.

that I on we’re have opportunity senior fixed to income, we're being replacing see careful on revenue right, focused we banking up. little public the say that junior driving areas. on when headcount a continue really capacity new finance, less going spot, got more and general, banking, that would an every where we’ve to in cautious, very in balance try not you're production that's in hire quite across - But picks and a hiring just general, find got so some on to So, that. do But careful hiring we being probably when to front. directly we've other attrition of

Devin Ryan

right, so All there. it. I'll Got much. leave Thanks it

Operator

Goldman question our James Yaro And comes with from Sachs. next

James Yaro

this could from consider when on turn the to transiting with cadence quite sort the quarter. to in financing what on clients being ECM remains And great if just sector should side and healthcare Congrats then some morning. the corporate terms business, color ECM is activity? Obviously, back start tailwind a of to on a corporate Good XXXX? Maybe XXXX. to you normalized they soft. how industry of Chad. remain to expect you wanted I close provide might business you specifically in in financing, of we hear just for And of the this

Chad Abraham

us January, say I what I of Yes, about healthcare in deals. for with a we've done the start mean, would handful ECM,

a ECM. for quarter, better of last to QX year, this our of say for than quite fairly QX, at mean, almost QX mean, March, least we would last no which did ECM, last close QX. I is feels pace so, February, January, I obviously And and I bit year

slowly this say, urgency to more normalized. I would we're think year, I So, transactions. would do I that financing expectations say price the clients doing need from a are

probably nowhere year is, incredibly just this normalized. ‘XX fee but think size, I mean, and flip the call it’s ‘XX the be will a certainly of near side overall pool sure we ECM. better for it ‘XX would I'm low. I was still not So, that

between, the has started for in certainly how and that's us. somewhere probably So, year

James Yaro

lot a makes That it. sense. Got of

back and sort ‘XX? obviously would the about that to liquidity. quarter. think And quarter's more strong this relative Is and of fixed XQ quite income Fed would strong Just securities peers, there for demand. were tightening, as continuing third I to ticks Deb, you thinking about there a and Or the When quarter recovery they should result than its about down the to drain fixed this quantitative most a obviously - that that bank dampen business, was does that closer better to think imagine run we more normalized any risk level? rate income

Deb Schoneman

James, picked would Yes, go see in what said. into middle We up think activity you to banks in I right the related QX, I year-end. actually did of just repositioning balance sheets going

QX more which levels contributed for that so, same way, those rates good say, tend I Longer need in to that's I interest about. term, those of income had don't these are see so that And going. the back the of it where in just talking trying strength step are relative let going. much to the the the and what more And this you're the to we higher quarter. where put becomes as clear, it more to some clients fourth out clarity at that back figure just goes to me At is fixed the of into to that would think We end there's outlook clients are the time, of rates are market, why rates the day, business.

of especially ours, with to platform continue the the is which combination our with a a interim, So, strength has in away just banks, the more from diversified more been to goal Sandler. of build

banks’ what sheets you what's to being the business. a to little with an impact have balance less alluded overall going on to, our trying So, fixed income of that,

James Yaro

Okay. That's really helpful. you much. so Thank

Operator

question will come And Steven Research. Wolfe our from with next Chubak

Steven Chubak

Hi, good morning.

the you to unpack So, topline start like question probably to the of pretty way non-com somewhere of non-com, around your the rate So, some seasonality? thinking reasonable, of in million in $XX for per zone. asked Is trajectory have for a I ‘XX, while adjusting that since terms million quarter like was wanted run with off somewhere tends the to be about to us is wanted been to for around commentary a pronounced. must just right $XXX business trends, be the the seasonality some

sure make appropriately, the Just I'm the on want to year. that watermark XQ typically high because is about thinking

Tim Carter

Steve, Yes, that. I can take

think the go-forward that includes include - fourth perspective. the is sort a what reimbursed expenses, would quarter, The and level, reimburse XX, think that at XX that think I I that. about And excluding deal bit But looks the tend activity, is to capital we like the at more it I of we excluding markets in we talk high going in on of from deal level. sort think level, markets. QX, based little variable is of about if forward all Chad at levels that a of QX, particularly sort a talked XX in, stays levels saw capital just the right

Steven Chubak

on like your the categories Got the the it. all Very of trends touch helpful. different business investment And we banking and covering trading or brokerage business.

that providing process be think ECM holistic could outlook better, based to picture helpful. that far, so ‘XX positive, I for relative still you Is challenged. actually on a more we've seen As you revenues commentary the in this trends really Just the expectation budgeting overall went would through the brokerage year, advisory guys grow your ‘XX?

Chad Abraham

think give don't trends and obviously, be year guidance, would I have quarters we is if like financing the but mean, don't generally means that is, I correct QX ECM, by say are we We annual I half think first your QX, better better. ECM, certainly is think certainly which what we any Yes. could of robust for more this there. and

And is obviously, businesses I advisory. wild market. to the going brokerage think card the depend the on are

we slow think our certainly here. in can the half and think still first I challenged be commentary,

going what outlook so, the you grow market have the be that's And for to revenues based second half. for And sort on the is year of advisory to depend going on entire in conditions. to

Steven Chubak

benefited be really a historically Right. year, relationships. having And from strategic I big helpful this you like past since sponsor guys strength, might contributor have to piece it the is know strong

your terms to from around what or more sponsor transact clients, see them of here. the inclined in hearing you're make they willing what to need to Just clarity macro

Chad Abraham

things. I fighting mean, really I we're think two Yes.

you pin would much to on part I very try First, realistic quarters sort now. down it seller price in or many conversations to try - always that's come for while. line. of of, does I more takes the We're take get expectations it I'm a to - there. people closer buy how we're say,

year, deals So, financings that's financings. I getting larger help still Can middle that funds, credit people ones, certainly, And And market then it's the it's It half that, we done? done. a get which price. difficult. less But might will Obviously, throughout will advisory. those How where transactions. think that all just impacts are the up in the change. little back will changes be picks expect leverage, of much impact slowly how

Steven Chubak

great for color, my Thanks questions. so Chad. much taking That's

Operator

to instructions]. Mike [Operator Securities. go now with Northland Grondahl We'll

Mike Grondahl

want Hey, thanks, with what’s times. page Can noticed what release, about three but and to to in of of industrials, really or healthcare, now. historically, sort services, statement, recently, you think other guys. Consumer, emphasize, the just the acquisition, on press I energy financial we us scaled seven about Chad? highlight want acknowledge to really and you you verticals that talked you and I know diversified? verticals do what kind you emphasize roughly scaled And more Hey, the mentioned diversified dating first Simmons

Chad Abraham

year. biggest, a pretty but industry was good banking biggest, us, was said, And the financials which and ECM just there, lot of away you like we healthcare, a always for really then is I it relative and had frankly, our that second the of drop of one teams, - investment really Healthcare would general, was advisory, the that energy in our was a well Yes, did healthcare. say far really is usually record. by year to was lot strengths. A in for difficult impacts a but strong in

And are ago, industrials. just there even were were And energy say, years we consumer they then But Simmons two years, like having and much, and and of eight other and couple the become expect done diversification. they one and I software the is significantly then do paces, and we the ago, to still that toughest five our businesses than over or much in our seven teams energy practice wear right after year, obviously our the four in markets that M&A a time We the of now end of way acquisition ‘XX was the and technology. larger cycles, acquired off that technology. acknowledge we those over DBO would scale tough would And other tech really towards bigger. help much real the business they're be strong. industry or market contribute - though same other the years is to think I bigger

business need recovery believe top terms but rival businesses we'll obviously, should over in three time So, we size. a of that our there,

Mike Grondahl

of a it. quarter? did then look DBO Got and the in the much does acquisitions? And And your what's contribution pipeline have continued fourth appetite maybe, what then tuck-in for

Chad Abraham

Yes.

from So, question, transactions and a Mike? second we contribution QX. in DBO the And in no, lot of October, new there what wasn't closed then, was

Mike Grondahl

what your the appetite your like continued pipeline just and Oh, for looks tuck-in acquisitions.

Chad Abraham

we get, and would the harder in white it I last years, the helped look have and if at been drive more some frankly, And over find really of track But obviously, best time done harder good just six or Yes, of say, larger to space gets we've five deals fits. the you it’s the sort markets. challenged record us scale.

good So, a I we say, would have appetite.

We be this got are market, careful. we've in to seeing obviously things,

If pipelines yes, look source understand going we're to kind back major active pipelines. really headed at for continue be there. got of to of you’ve a half-weighted, to as use capital that's got where us. we're are But You’ve to

Mike Grondahl

think is business? of income you lastly, you I the really called we it. Got maybe should the then institutions. run of that for think And out And have Deb. strong What rate? quarterly from trading just like How to seemed some depository a for think a do fixed Deb, trading XQ.

Deb Schoneman

Yes.

We over is at it's out going believing say mentioning crystal now. And certainty that the into see look a of was talked is right going they're about ball. challenging to rates be to second half to and extent we the a crystal volatility ball and dependent see XXXX on it before, going improvement just always I really where to that to the improvement do some And we're just hard given so around which more interest more. when rates that. of land. from settle But is we little little As here looking foggy

Mike Grondahl

it. fair. Got That's

Deb Schoneman

or a that's tough know one. not. if It’s I don’t helpful

Mike Grondahl

Sure. Hey, a thanks lot.

Operator

turn closing so I'll back to things there And Abraham remarks. this questions time, any at additional further Mr. are no over or for

Chad Abraham

forward thanks We great look results. day. everyone. operator, a on quarter you, first and to you updating the Have Thank

Operator

thanks, that And conference. us. does Once for again, joining conclude everyone, today's

now may You disconnect.

Piper Sandler Companies (PIPR) 3 Feb 232022 Q4 Earnings call transcript