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KBW Inc.(KBW)
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 - Long-Term Growth
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Underwriters: |
Keefe, Bruyette & Woods, Inc.
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Merrill Lynch & Co.
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| Status: |
Priced |
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| Address: |
The Equitable Bldg., 787 7th Ave., 4th Fl.
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FiledDate: |
08/11/2006 |
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New York,
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NY 10019
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Filed Price Range ($): |
$19.00-21.00 |
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| Telephone: |
212-887-7777 |
Filed Offer Amount ($ Million): |
$100.00 |
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| Fax: |
212-541-6668 |
Shares Offered (Millions): |
6.52 |
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| Websites: |
www.kbw.com |
Shares Outstanding (Millions): |
30.42 |
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| Management: |
John Duffy, Chair./CEO
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IPO Date: |
11/09/2006
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Andrew Senchak, Pres/Chair.
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Thomas Michaud, COO
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Final Offer Price ($): |
$21.00 |
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| Industry: |
Financial Services |
Final Offer Size (Millions of Shares): |
6.80 |
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| Employees: |
430 |
Final Offer Amount ($ Million): |
$142.80 |
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| Competitors: |
Fox-Pitt
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S-1 Forms: |
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Friedman, Billings, Ramsey Group
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Sandler O'Neill
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- Avoid 
- Value Gap 
- Short-Term Growth
- Long-Term Growth 
- Long-Term Value
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Company Links |
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Business Environment |
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The financial services industry provides depository, insurance and specialty finance services to individuals, companies and institutions.
The bank and thrift and insurance segments represent a pool of companies in the United States with a combined market capitalization as of December 31, 2005 of more than $2.6 trillion.
The financial services industry is one of the largest sectors of the overall market, both in the U.S. and in Europe.
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Company Strategy |
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The Company is a leading full service investment bank specializing in the financial services industry. |
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Product/Services Portfolio |
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The Company’s investment banking practice provides a broad range of investment banking services to banks and thrifts, insurance companies, broker-dealers, mortgage banks, asset management companies, mortgage REITs, consumer and specialty finance firms, financial processing companies and securities exchanges. The services the Company provides include M&A and other strategic advisory services; equity capital markets; fixed income capital markets; structured finance; and mutual thrift and insurance company conversions.
The Company’s investment banking business is structured to serve three segments of the financial services industry, each with professionals having expertise in that area: banks and thrifts, insurance, and diversified finance.
The Company provides a broad range of advice to its clients in relation to mergers, acquisitions and similar corporate finance matters and is positioned to be involved at each stage of these transactions, from initial structuring to final execution.
The Company’s strategic advisory services also include more specialized advisory assignments, such as divestitures, hostile takeover defenses and special committee assignments.
Providing execution of capital raising services is important in the financial services industry. Many of the Company’s clients, such as banks, thrifts, brokerage firms and insurance companies operate under statutes or regulations that require the maintenance of certain capital levels in order to provide certain business services. Capital raising is also an important part of providing financing for the ongoing consolidation in the financial services industry. The Company acts as underwriter and placement agent for its corporate clients in public and private offerings of equity and debt securities.
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Investment Analysis |
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Total revenues increased $33.7 million, or 49.6%, to $101.4 million for the three months ended March 31, 2006 compared with $67.8 million for the three months ended March 31, 2005.
Total expenses increased $21.1 million, or 34.1%, to $83.1 million for the three months ended March 31, 2006 compared with $62.0 million for the three months ended March 31, 2005.
Total non-compensation expenses increased $3.4 million, or 16.5%, during the three months ended March 31, 2006 compared with the three months ended March 31, 2005.
Net income was $10.2 million for the three months ended March 31, 2006 compared with $3.3 million for the three months ended March 31, 2005.
Interest and dividend income increased $1.8 million, or 46.8%, to $5.5 million for the three months ended March 31, 2006 compared with $3.8 million for the three months ended March 31, 2005.
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Income Data (Thousand $ Except EPS) |
| Year |
Revenues |
Costs |
Oper Income |
Taxes |
Net Income |
EPS |
| 2005
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101,438 |
83,139 |
0.00 |
0.00 |
0.00 |
5.37 |
| 2006
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67,785 |
62,004 |
0.00 |
0.00 |
10,156 |
15.94 |
| *As of period ended March 31, 2006
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Balance Sheet Data
(Thousand $) |
Year |
Cash |
Acct Recv. |
Inventory |
Total Cur Assets |
Total Cur Liability |
PPE |
Total Assets |
LT Debt |
SH Equity |
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2005 |
75,642 |
25,787 |
0.00 |
0.00 |
382,204 |
0.00 |
648,298 |
0.00 |
0.00 |
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2006 |
72,352 |
9,677 |
0.00 |
0.00 |
318,293 |
0.00 |
592,207 |
0.00 |
0.00 |
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*As of period ended March 31, 2006
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| Cash
Flow Summary
(Thousand $) |
Year |
Net Cash-Ops |
Net Cash-Inv |
Net Cash-Fin |
Net Change |
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2005 |
-33,793 |
-3,065 |
3,276 |
-33,720 |
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2006 |
-213 |
-444 |
-2,704 |
-3,290 |
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