Oppenheimer Holdings Inc. (OPY, Financial) filed Quarterly Report for the period ended 2010-03-31.
Oppenheimer Holdings Inc. has a market cap of $367.6 million; its shares were traded at around $27.76 with a P/E ratio of 11.3 and P/S ratio of 0.4. The dividend yield of Oppenheimer Holdings Inc. stocks is 1.5%. Oppenheimer Holdings Inc. had an annual average earning growth of 9.5% over the past 10 years. GuruFocus rated Oppenheimer Holdings Inc. the business predictability rank of 1-star.OPY is in the portfolios of Private Capital of Private Capital Management, Chuck Royce of Royce& Associates.
Advisory fees were $42.8 million in the first quarter of 2010, an increase of 19.7% compared to $35.8 million in the first quarter of 2009. Asset management fees increased by $11.4 million in the first quarter of 2010 compared to the same period in 2009 as a result of an increase in the value of assets under management of 31.2% during the period. Asset management fees are calculated based on client assets under management at the end of the prior quarter and were $16.4 billion at December 31, 2009 ($12.5 billion at December 31, 2008). This increase was offset by a decrease of $5.5 million due to waivers on fees that otherwise would have been due from money market funds.
Other revenue increased 111.2% to $10.2 million in the first quarter of 2010 compared to $4.9 million in the first quarter of 2009 primarily as a result of a $2.4 million increase in the mark-to-market value of Company-owned life insurance policies that relate to our deferred compensation programs and increased fees generated from Evanston in the amount of $2.3 million.
Compensation and related expenses increased 12.5% in the first quarter of 2010 to $158.1 million from $140.7 million during the first quarter of 2009. Production and incentive-related compensation increased $13.0 million, deferred compensation costs increased $2.6 million and payroll taxes and health benefits increased $4.4 million in the first quarter of 2010 compared with the same period in 2009. These increases were offset by a decrease of $3.9 million in share-based compensation expense directly related to the drop in the price of the Companys stock during the quarter ($25.51 per share at March 31, 2010 compared to $33.22 per share at December 31, 2009) as well as an out-of-period adjustment related to over-accruals in compensation of $3.7 million which was adjusted in the current period.
On February 23, 2010 and February 26, 2010, the Company reached settlement agreements with the Regulators with respect to clients ownership and holdings of ARS. Under the terms of those settlements, the Company has agreed to purchase, in aggregate, ARS with a par value of approximately $31.5 million at December 31, 2009, from eligible clients no later than August 7, 2010 and to establish redemption funds of $4.5 million and $2.8 million no later than August 28, 2010 and February 29, 2011, respectively. The Company estimates that it is obligated to purchase an aggregate of approximately $39 million of eligible ARS in the initial 15 month period covered by the settlements with the Regulators. It will make subsequent offers to eligible clients holding eligible ARS based on the Companys availability of funds for such purpose, the amount of which the Company believes, pursuant to the terms of the settlements, will not create a condition that would have a material adverse affect on the Companys financial statements. As a result, it is unlikely that the Company will be required over any short period of time to purchase all of the ARS currently held by the Companys former or current clients who purchased ARS prior to the beginning of the markets failure in February 2008. In future periods the Company, pursuant to the Settlements, will assess whether it has sufficient regulatory capital or borrowing capacity to make any purchases of ARS beyond those agreed upon in the settlements described above.
On December 22, 2008, certain terms of the Senior Secured Credit Note were amended, including (1) revised financial covenant levels that require that (i) the Company maintain a maximum leverage ratio (total long-term debt divided by EBITDA) of 3.05 at March 31, 2010 and (ii) the Company maintain a minimum fixed charge ratio (EBITDA adjusted for capital expenditures and income taxes divided by the sum of principal and interest payments on long-term debt) of 1.45 at March 31, 2010; (2) an increase in scheduled principal payments as follows: 2009 - $400,000 per quarter plus $4.0 million on September 30, 2009 - $500,000 per quarter plus $8.0 million on September 30, 2010; (3) an increase in the interest rate to LIBOR plus 450 basis points (an increase of 150 basis points); and (4) a pay-down of principal equal to the cost of any share repurchases made pursuant to the Issuer Bid. In the Companys view, the maximum leverage ratio and minimum fixed charge ratio represent the most restrictive covenants. These ratios adjust each quarter in accordance with the loan terms, and become more restrictive over time. At March 31, 2010, the Company was in compliance with all of its covenants.
Read the The complete Report
Oppenheimer Holdings Inc. has a market cap of $367.6 million; its shares were traded at around $27.76 with a P/E ratio of 11.3 and P/S ratio of 0.4. The dividend yield of Oppenheimer Holdings Inc. stocks is 1.5%. Oppenheimer Holdings Inc. had an annual average earning growth of 9.5% over the past 10 years. GuruFocus rated Oppenheimer Holdings Inc. the business predictability rank of 1-star.OPY is in the portfolios of Private Capital of Private Capital Management, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Oppenheimer Holdings Inc. reported a net profit of $9.2 million or $0.69 per share for the first quarter of 2010, compared to a net loss of $2.0 million or $0.15 per share in the first quarter of 2009. Revenue for the first quarter of 2010 was $246.9 million, compared to revenue of $205.3 million in the first quarter of 2009, an increase of 20.3%. Client assets entrusted to the Company and under administration totaled approximately $69.6 billion while client assets under fee-based programs offered by the asset management groups totaled approximately $17.0 billion at March 31, 2010 ($48.1 billion and $11.5 billion, respectively, at March 31, 2009).Advisory fees were $42.8 million in the first quarter of 2010, an increase of 19.7% compared to $35.8 million in the first quarter of 2009. Asset management fees increased by $11.4 million in the first quarter of 2010 compared to the same period in 2009 as a result of an increase in the value of assets under management of 31.2% during the period. Asset management fees are calculated based on client assets under management at the end of the prior quarter and were $16.4 billion at December 31, 2009 ($12.5 billion at December 31, 2008). This increase was offset by a decrease of $5.5 million due to waivers on fees that otherwise would have been due from money market funds.
Other revenue increased 111.2% to $10.2 million in the first quarter of 2010 compared to $4.9 million in the first quarter of 2009 primarily as a result of a $2.4 million increase in the mark-to-market value of Company-owned life insurance policies that relate to our deferred compensation programs and increased fees generated from Evanston in the amount of $2.3 million.
Compensation and related expenses increased 12.5% in the first quarter of 2010 to $158.1 million from $140.7 million during the first quarter of 2009. Production and incentive-related compensation increased $13.0 million, deferred compensation costs increased $2.6 million and payroll taxes and health benefits increased $4.4 million in the first quarter of 2010 compared with the same period in 2009. These increases were offset by a decrease of $3.9 million in share-based compensation expense directly related to the drop in the price of the Companys stock during the quarter ($25.51 per share at March 31, 2010 compared to $33.22 per share at December 31, 2009) as well as an out-of-period adjustment related to over-accruals in compensation of $3.7 million which was adjusted in the current period.
On February 23, 2010 and February 26, 2010, the Company reached settlement agreements with the Regulators with respect to clients ownership and holdings of ARS. Under the terms of those settlements, the Company has agreed to purchase, in aggregate, ARS with a par value of approximately $31.5 million at December 31, 2009, from eligible clients no later than August 7, 2010 and to establish redemption funds of $4.5 million and $2.8 million no later than August 28, 2010 and February 29, 2011, respectively. The Company estimates that it is obligated to purchase an aggregate of approximately $39 million of eligible ARS in the initial 15 month period covered by the settlements with the Regulators. It will make subsequent offers to eligible clients holding eligible ARS based on the Companys availability of funds for such purpose, the amount of which the Company believes, pursuant to the terms of the settlements, will not create a condition that would have a material adverse affect on the Companys financial statements. As a result, it is unlikely that the Company will be required over any short period of time to purchase all of the ARS currently held by the Companys former or current clients who purchased ARS prior to the beginning of the markets failure in February 2008. In future periods the Company, pursuant to the Settlements, will assess whether it has sufficient regulatory capital or borrowing capacity to make any purchases of ARS beyond those agreed upon in the settlements described above.
On December 22, 2008, certain terms of the Senior Secured Credit Note were amended, including (1) revised financial covenant levels that require that (i) the Company maintain a maximum leverage ratio (total long-term debt divided by EBITDA) of 3.05 at March 31, 2010 and (ii) the Company maintain a minimum fixed charge ratio (EBITDA adjusted for capital expenditures and income taxes divided by the sum of principal and interest payments on long-term debt) of 1.45 at March 31, 2010; (2) an increase in scheduled principal payments as follows: 2009 - $400,000 per quarter plus $4.0 million on September 30, 2009 - $500,000 per quarter plus $8.0 million on September 30, 2010; (3) an increase in the interest rate to LIBOR plus 450 basis points (an increase of 150 basis points); and (4) a pay-down of principal equal to the cost of any share repurchases made pursuant to the Issuer Bid. In the Companys view, the maximum leverage ratio and minimum fixed charge ratio represent the most restrictive covenants. These ratios adjust each quarter in accordance with the loan terms, and become more restrictive over time. At March 31, 2010, the Company was in compliance with all of its covenants.
Read the The complete Report
