EX-99.1 2 a1q19investorpresentatio.htm EXHIBIT 99.1
Oppenheimer Holdings Inc. First Quarter Update – 2019

Safe Harbor Statement This presentation and other written or oral statements made from time to time by representatives of Oppenheimer Holdings Inc. (the “company”) may contain “forward‐looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward‐looking statements may relate to such matters as anticipated financial performance, future revenues or earnings, business prospects, new products or services, anticipated market performance and similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward‐looking statements. Forward‐looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the company’s current beliefs, expectations and assumptions regarding the future of the company’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward‐looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the company’s control. The company cautions that a variety of factors could cause the company’s actual results to differ materially from the anticipated results or other expectations expressed in the company’s forwarding‐looking statements. These risks and uncertainties include, but are not limited to, those risk factors discussed in Part I, “Item 1A. Risk Factors” of our Annual Report on Form 10‐K for the year ended December 31, 2018 filed with the SEC on March 1, 2019 (the “2018 10‐K”). In addition, important factors that could cause actual results to differ materially from those in the forward‐looking statements include those factors discussed in Part II, “Item 7. Management’s Discussion & Analysis of Financial Condition and Results of Operations – Factors Affecting ‘Forward‐ Looking Statements’” of our Quarterly Report on Form 10‐Q for the quarter ended March 31, 2019 filed with the SEC on April 26, 2019 (“2019 10‐Q1”). Any forward‐looking statements herein are qualified in their entirety by reference to all such factors discussed in the 2018 10‐K, the 2019 10‐Q1 and the company’s other SEC filings. There can be no assurance that the company has correctly or completely identified and assessed all of the factors affecting the company’s business. Therefore, you should not rely on any of these forward‐looking statements. Any forward‐looking statement made by the company in this presentation is based only on information currently available to the company and speaks only as of the date on which it is made. The company does not undertake any obligation to publicly update or revise any forward‐looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. 2

Business Overview Oppenheimer is a leading investment bank and full‐service investment firm that provides financial services and advice to high net worth investors, individuals, businesses and institutions. Oppenheimer Snapshot (as of 3/31/19) $251.8 million $975.4 million Listed NYSE Ticker: OPY Revenue for 1Q‐19 Revenue for TTM 3‐31‐19 Shareholders’ Equity ($mm): $554.5 Market Cap ($mm): $336.9 Book Value per Share: $42.58 Tangible Book Value per Share: $29.52 Share Price: $26.02 TTM 3‐31‐19 Revenue ($mm): $975.4 Employees: 2,984 Europe Middle East Asia #of Financial Advisors: 1,062 Be ijing Shanghai Hong Kong Retail Branches in the US: 94 . Client Assets under Administration ($bn): $87.5 London, UK . Tel Aviv, Israel . Hong Kong . Geneva, Switzerland Assets Under Management ($bn): $29.5 . St. Helier, Isle of Jersey . Frankfurt, Germany 3

Summary Operating Results – 1Q-19 (Unaudited) ($000’s) For the 3‐Months Ended Highlights REVENUE 3‐31‐19 3‐31‐18 % Change Commissions $ 79,409 $ 83,407 (4.8)%  Quarterly revenues in excess of $250 Advisory fees 73,647 77,548 (5.0)% million Investment banking 28,043 28,210 (0.6)%  Advisory fees lower due to lower Bank deposit sweep income 33,968 25,297 34.3% assets under management at Interest 12,727 12,227 4.1% 12/31/18 compared to 12/31/17 Principal transactions, net 11,438 2,726 319.6%  Increase of 77.7% in fees earned from Other 12,538 5,115 145.1% M&A activities Total Revenue 251,770 234,530 7.4%  Higher short‐term interest rates continue to benefit bank deposit EXPENSES sweep income Compensation and related expenses 160,355 153,104 4.7%  Principal transactions revenue higher Non‐Compensation related expenses 75,363 71,805 5.0% due to higher trading income in fixed income and equities during 1Q‐19 Total Expenses 235,718 224,909 4.8% Pre‐tax Income 16,052 9,621 66.8%  Other revenue increase primarily due to increases in cash surrender value of company‐owned life insurance during Net income $ 11,194 $ 6,705 67.0% 1Q‐19  Basic net income per share $ 0.86 $ 0.51 68.6% Compensation as a percentage of revenue was 63.7% in 1Q‐19 Diluted net income per share $ 0.81 $ 0.48 68.8% compared to 65.3% in 1Q‐18 4

First Quarter 2019 Highlights (In $millions) Advisory Fees Investment Banking Revenue Interest and Fee Revenues $180 3.0% $77.5 $73.6 $160 2.5% $140 $28.2 $28.0 $120 2.0% $100 1.5% $80 1Q‐18 1Q‐19 1Q‐18 1Q‐19 $60 1.0% $40 Commission Revenue Principal Transactions Revenue 0.5% $20 $83.4 $79.4 $0 0.0% 2015 2016 2017 2018 TTM 3‐31‐19 Margin Interest $11.4 Bank Deposit Sweep Income $2.7 Fed Funds Target 1Q‐18 1Q‐19 1Q‐18 1Q‐19 5

Business Segments Our business is well diversified across a wide range of clients, services and industries Business Mix –1Q‐19 Revenue ($251.1mm)(1) Private client services and asset WEALTH MANAGEMENT management solutions tailored to unique financial objectives $180.1mm $71.0mm Wealth Management 72% 28% Investment banking services and Capital Markets CAPITAL MARKETS capital markets products for institutions and corporations Wealth Management Revenue ($mm) Capital Markets Revenue ($mm) $800 683 690 $300 280 273 $700 619 255 597 232 $600 $250 $500 $200 $400 $150 $300 180 172 $100 $200 71 62 $100 $50 $0 $0 2015 2016 2017 2018 1Q‐19 1Q‐18 2015 2016 2017 2018 1Q‐19 1Q‐18 Note: Wealth Management includes both Private Client and Asset Management business segments. (1) Does not include $0.7 million allocated to Corporate/Other. 6

Wealth Management* Well recognized brand and one of the few independent, non‐bank broker‐dealers with full service capabilities RETAIL SERVICES ADVISORY SERVICES ALTERNATIVE INVESTMENTS –Full‐Service Brokerage – Investment Policy Design & –Hedge Funds and Fund‐of‐Funds –Financial Planning, Retirement Services, Implementation –Private Equity Corporate & Executive Services, and – Asset Allocation & Portfolio Construction –Private Market Opportunity, recently Trust Services – Research, Diligence & Manager Selection launched to source investments across –Margin & Securities Lending –Portfolio Monitoring & Reporting the private markets continuum Q1‐19 Highlights Financial Snapshot ($mm) 1Q‐19 1Q‐18 % Change  Assets under management increase of 4.6% to $29.5 billion, near all‐time highs, which will be Revenue $ 180.1 $ 171.7 4.9% the basis for 2Q‐19 asset management fees Pre‐tax Income $ 45.1 $ 43.9 2.7%  Bank Deposit Sweep Income up 34.3% in 1Q‐19 compared to 1Q‐18 Profit Margin 25.0% 25.6% (2.1)%  Relocated our largest branch office in midtown Manhattan which will result in # of Financial Advisors 1,062 1,082 significant annual savings Client Assets Under Administration ($bn) Client Assets Per Financial Advisor ($mm) $90 86.9 87.5 84.9 $90 82.4 78.5 78.5 74.7 78.7 80.1 $80 77.2 $70 63.8 66.7 $70 $50 $30 $60 2015 2016 2017 2018 1Q‐19 1Q‐18 2015 2016 2017 2018 1Q‐19 1Q‐18 1,233 1,158 1,107 1,073 1,062 1082 * Wealth Management includes both Private Client and Asset Management divisions. 7

Capital Markets A leading capital markets business providing sophisticated investment banking, research and trading solutions INSTITUTIONAL EQUITIES INVESTMENT BANKING FIXED INCOME –Sales and Trading –Mergers & Acquisitions – Taxable Fixed Income – Equity Research – Equity Capital Markets –Non‐Taxable Fixed Income • 32 senior research analysts covering –Debt Capital Markets – Public Finance 500+ companies – Restructuring & Special Situations –Corporate Access (Conferences & NDRs) (In $millions) (In $millions) 1Q‐19 Capital Markets Revenue Breakdown ($71.0mm) Institutional Equities Commissions Equity Underwriting Fees 1Q‐19 $23.5 1Q‐19 $7.5 $5.2 Institutional Equities 7% 1Q‐18 $23.2 1Q‐18 $15.2 $19.8 $29.5 Fixed Income 28% 42% Investment Banking Advisory Fees from IBK Fixed Income Revenue $16.5 Public Finance & Municipal Trading 23% 1Q‐19 $16.7 1Q‐19 $16.5 1Q‐18 $9.4 1Q‐18 $12.1 Investment Banking Focus Industries Healthcare Technology Consumer Transportation & Finance & Real Energy & Retail Logistics Estate 8

Select 1Q-19 Investment Banking Transactions $1,397,000,000 $2,000,000,000 Undisclosed $287,500,000 Rental Services Technology Rental Services Technology Mergers & Acquisitions Debt Private Placement Mergers & Acquisitions Convertible Debt Exclusive Financial Advisor Joint Bookrunner Exclusive Financial Advisor Co‐Lead Manager March 2019 March 2019 February 2019 February 2019 $143,000,000 $30,500,001 $172,500,000 $45,000,000 Energy Healthcare Healthcare Technology Distressed Exchange U.S. IPO Follow‐on Mergers & Acquisitions Exclusive Financial Advisor & Sole Sole Bookrunner Lead Manager Exclusive Financial Advisor Dealer Manager February 2019 February 2019 January 2019 January 2019 9

Capital Structure Conservative risk profile with strong balance sheet Liquidity & Capital As of March 31, 2019 ($ in thousands) . Issued $200 million 5 year 6.75% Senior Secured Notes in June 2017 Total Assets: $2,527,510 . Level 3 assets represent .86% of total assets . Broker‐Dealer Regulatory Net Capital at highest level in Stockholders’ Equity: $554,487 several years Long‐Term Debt: $200,000 . Book value per share of $42.58 and tangible book value per share of $29.52, both record highs Total Capitalization: $754,487 Historical Book & Tangible Book Value per Share ($) Debt to Equity Ratio: 36.1% $40 (1) Gross Leverage Ratio :4.6x$30 $20 Broker‐Dealer Regulatory Capital ($ in thousands) $10 Regulatory Net Capital: $202,415 $0 Year Regulatory Excess Net Capital: $187,019 (1) Total Assets divided by Total Stockholders’ Equity. 10

Historical Financial Ratios Consolidated Adjusted EBITDA ($mm) Long‐Term Debt to Consolidated Adjusted EBITDA (x) Consolidated Adjusted EBITDA Margin (%) Interest Coverage (x) 11

For more information contact Investor Relations at info@opco.com 2519237.1