UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended December 31, 1997 Commission file number 1-7421
PIPER JAFFRAY COMPANIES INC.
(Exact name of Registrant as specified in its charter)
Delaware 41-1233380
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Piper Jaffray Tower, 222 South 9th Street, Minneapolis, Minnesota 55402
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 612-342-6000
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
As of December 31, 1997, 19,129,164 shares of the Registrant's common stock were
issued and outstanding.
<PAGE>
PIPER JAFFRAY COMPANIES INC.
TABLE OF CONTENTS
Page
Number
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements:
Consolidated Statements of Financial Condition 3
Consolidated Statements of Operations 4
Consolidated Statements of Cash Flows 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations 8
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 10
Item 4. Submission of Matters to a Vote of Security Holders 10
Item 6. Exhibits and Reports on Form 8-K 10
Signatures 11
Index of Exhibits 12
Exhibits 13
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
PIPER JAFFRAY COMPANIES INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In Thousands, Except Share Amounts)
December 31, September 30,
1997 1997
------------- -------------
ASSETS (unaudited)
Cash ($0 and $1,361, respectively, which was
required to be segregated under federal and
other regulations) $ 33,803 $ 30,862
Receivable from other brokers and dealers 68,112 68,802
Receivable from customers 669,627 640,686
Trading securities owned, at market 195,075 156,779
Securities purchased under agreements to resell 40,202 34,113
Investments pursuant to mortgage-backed bonds 37,765 39,871
Office equipment and leasehold improvements,
at cost less accumulated depreciation of
$42,624 and $44,574, respectively 33,734 32,756
Deferred income tax asset 29,478 31,532
Other assets 103,322 96,468
------------- -------------
$1,211,118 $1,131,869
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Short-term borrowings $ 264,625 $ 210,805
Checks and drafts payable 74,370 57,081
Payable to other brokers and dealers 274,224 262,081
Payable to customers 116,455 127,513
Securities sold under agreements to repurchase 24,244 14,810
Trading securities sold, but not yet purchased,
at market 53,637 49,370
Mortgage-backed bonds payable 38,544 40,709
Employee compensation and related taxes 72,235 96,302
Federal and state income taxes 4,084 -
Other accounts payable and accrued expenses 99,998 101,635
------------- -------------
1,022,416 960,306
Shareholders' Equity
Preferred stock, $1 par value; authorized,
300,000 shares; none issued and outstanding - -
Common stock, $1 par value; authorized,
40,000,000 shares; 19,130,040 and 18,754,153
issued, respectively 19,130 18,754
Additional paid-in capital 36,242 28,237
Retained earnings 133,356 124,586
Less treasury stock, at cost; 876 and 555 shares,
respectively (26) (14)
------------- -------------
188,702 171,563
------------- -------------
$1,211,118 $1,131,869
============= =============
See accompanying notes to consolidated financial statements.
<PAGE>
PIPER JAFFRAY COMPANIES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Ended
December 31,
------------------------
1997 1996
------------------------
REVENUE:
Commissions $ 61,599 $ 46,415
Profits on principal transactions 37,184 43,742
Investment banking 29,981 20,937
Interest income 14,785 12,290
Asset management fees 10,046 8,905
Other 10,110 6,540
------------------------
Total revenue 163,705 138,829
Interest expense 7,593 6,155
------------------------
Net revenue 156,112 132,674
NON-INTEREST EXPENSE:
Employee compensation 103,077 86,036
Floor brokerage and clearance 3,128 2,260
Occupancy and equipment 10,473 9,417
Communications 6,032 5,546
Travel and promotional 4,946 4,251
Other operating expense 11,729 22,181
------------------------
Total expense 139,385 129,691
------------------------
Income before income taxes 16,727 2,983
Income taxes 6,523 1,163
------------------------
Net income $ 10,204 $ 1,820
========================
Earnings per share, assuming dilution $ .51 $ .10
Basic earnings per share $ .54 $ .10
See accompanying notes to consolidated financial statements
<PAGE>
PIPER JAFFRAY COMPANIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Three months ended
December 31,
-------------------------------
1997 1996
-------------- --------------
Operating activities:
Net income $ 10,204 $ 1,820
Adjustments to reconcile net income to net
cash used in operating activities:
Depreciation and amortization 2,865 2,556
Deferred income taxes 2,054 (331)
(Increase) decrease in:
Net receivable from customer (39,999) (46,125)
Net trading securities (34,029) (13,599)
Securities purchased under agreements
to resell (6,089) (27,441)
Other (8,488) 9,968
Increase (decrease) in:
Net payable to other brokers and dealers 12,833 37,969
Checks and drafts payable 17,289 160
Employee compensation (24,067) (24,692)
Federal and state income taxes payable 4,084 4,615
-------------- --------------
Net cash used in operating activities (63,343) (55,100)
Financing activities:
Net change in:
Short-term borrowings 53,820 35,521
Securities sold under repurchase agreements 9,434 21,137
Mortgage-backed bonds payable (2,165) (478)
Investments and funds pursuant to 2,106 141
mortgage-backed bonds
Net common stock issued 9,806 9,102
Treasury shares repurchased (1,437) (1,349)
Dividends paid (1,434) (1,365)
-------------- --------------
Net cash provided by financing activities 70,130 62,709
Net cash used for purchase of office
equipment and leasehold improvements (3,846) (2,641)
-------------- --------------
Net increase in cash 2,941 4,968
Cash at beginning of period 30,862 23,406
============== ==============
Cash at end of period $ 33,803 $ 28,374
============== ==============
Supplemental disclosure of cash flow information:
Cash paid (refunded) during the three months ended for:
Interest $ 7,290 $ 5,442
Income taxes $ (2,509) $ 16,833
See accompanying notes to consolidated financial statements.
<PAGE>
PIPER JAFFRAY COMPANIES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
THREE MONTHS ENDED DECEMBER 31, 1997 AND 1996
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying consolidated financial statements of Piper Jaffray Companies
Inc. and its subsidiaries (the "Company") have been prepared in conformity with
generally accepted accounting principles and should be read in conjunction with
the Company's Annual Report for the year ended September 30, 1997. The results
of operations for the three months ended December 31, 1997, are not necessarily
indicative of the results to be expected for the year ending September 30, 1998.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
The consolidated statement of financial condition as of December 31, 1997 and
the other consolidated financial information for the periods ended December 31,
1997 and 1996, is unaudited, but management of the Company believes that all
adjustments (consisting of normal recurring accruals) necessary for a fair
statement of the results of operations for the periods have been included.
In February 1997, SFAS No. 128, Earnings Per Share, was issued and is effective
for financial statements for both interim and reporting periods ending after
December 15, 1997. This statement changes the method for calculating and
disclosing earnings per share. Prior year financials have been restated to
reflect the new requirements.
In January 1998, the Company adopted certain provisions of SFAS No.125,
Accounting for Transfers and Servicing of Financial Assets and Extinguishments
of Liabilities, which are applicable to its business. SFAS No. 125 introduces a
financial components approach which focuses on the recognition of financial
assets and liabilities which an entity controls and the derecognition of
financial assets and liabilities for which control has been transferred. The
adoption of this statement is not expected to have a material effect on the
Company's financial condition or results of operations.
2. EARNINGS PER SHARE
In December 1997, the Company adopted SFAS No. 128, Earnings Per Share. This
statement changed the method for calculating and disclosing earnings per share.
Prior year financials have been restated to reflect the new requirements. The
following table reflects the calculation of basic and diluted earnings per
share.
1997 1996
------------------------
Net income available to common shareholders $ 10,204 $ 1,820
========================
Weighted average number of common shares outstanding 18,985 18,279
Dilutive impact of options 992 404
------------------------
Weighted average shares and potentially dilutive
shares outstanding 19,977 18,683
========================
Earnings per share, assuming dilution $ .51 $ .10
Basic earnings per share $ .54 $ .10
3. NET CAPITAL REQUIREMENTS
At December 31, 1997, Piper Jaffray Inc. (Piper Jaffray), the Company's
broker-dealer subsidiary, had net capital under applicable regulations of $121.2
million or 18% of aggregate debit balances and $107.8 million in excess of the
minimum required net capital.
4. AGREEMENT AND PLAN OF MERGER
On December 15, 1997, the Company announced an agreement of merger with U.S.
Bancorp. The merger, which is subject to shareholder and regulatory approval, is
expected to close in the second calendar quarter of 1998.
5. SHAREHOLDERS' EQUITY
During the three months ended December 31, 1997, 51,900 shares of the Company's
common stock were repurchased by the Company, leaving a total of 368,400 shares
available for repurchase pursuant to the Board of Directors' authorizations to
repurchase common stock to satisfy employee benefit plan obligations. As of
December 31, 1997, 876 shares of common stock were held in the treasury.
On November 4, 1997, the Board of Directors authorized the contribution of $13.4
million to the Piper Jaffray Companies ESOP for fiscal year 1997. The
contribution was made 50 percent in cash and 50 percent in the Company's newly
issued common stock, thus adding $6.7 million in additional shareholders' equity
during the first quarter of fiscal 1998.
On January 14, 1998, the Board of Directors of the Company declared a quarterly
dividend of 7.5 cents per share of common stock, payable March 10, 1998, to
shareholders of record on February 24, 1998.
( in thousands, except share and per share amounts)
<TABLE>
Common Stock Additional Total
---------------------- Paid-In Retained Treasury Shareholders'
Shares Amount Capital Earnings Stock Equity
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Balances at Sept. 30, 1996 18,197,258 $ 18,198 $ 19,432 $129,201 $ (6) $166,825
Net income 954 954
Net stock issued pursuant
to employee benefit plans 888,540 556 8,805 5,776 15,137
Cash dividend-$.30 per share (5,569) (5,569)
Treasury stock acquired (332,200) (5,784) (5,784)
-----------------------------------------------------------------------
Balances at Sept. 30, 1997 18,753,598 18,754 28,237 124,586 (14) 171,563
Net income 10,204 10,204
Net stock issued pursuant
to employee benefit plans 427,466 376 8,005 1,425 9,806
Cash dividends-$.075 per share (1,434) (1,434)
Treasury stock acquired (51,900) (1,437) (1,437)
-----------------------------------------------------------------------
Balances at Dec. 31, 1997 19,129,164 $ 19,130 $ 36,242 $133,356 $ (26) $188,702
=======================================================================
</TABLE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
This discussion should be read in conjunction with Management's Financial
Discussion contained in the Company's Annual Report for the year ended September
30, 1997.
On December 15, 1997, the Company announced an agreement of merger with U.S.
Bancorp. The merger, which is subject to shareholder and regulatory approval, is
expected to close in the second calendar quarter of 1998.
OPERATIONS
The Company recorded total revenue of $163.7 million for the quarter ended
December 31, 1997, an increase of 18% over the same period in the prior year.
Net income increased to $10.2 million or $.51 per share, on a diluted basis, for
the quarter ended December 31, 1997 versus $1.8 million or $.10 per share a year
earlier.
Investment banking revenue increased 43% over the prior year quarter primarily
due to increased mergers and acquisition activity across all five targeted
industry groups. Asset management revenue increased 13% for the three months
ended December 31, 1997 compared to the same period in fiscal 1997 due to an
increase in Piper Capital's assets under management primarily caused by the
purchase of certain assets from Washington Square Advisers. Fee-based revenue
increased 94% to $4.8 million compared to $2.5 million in fiscal 1997 due to
continued growth in the managed account business. Net interest income was up 17%
to $1.1 million for the three months ended December 31, 1997 due to growth in
customer margin receivables.
Non-interest expense increased 7% or $9.7 million compared to the first quarter
of fiscal 1997, when other operating expenses included certain
litigation-related costs. Due to the accrual the Company took in the fourth
quarter of fiscal 1997, first quarter of fiscal 1998 does not include charges
for litigation or regulatory inquiries related to funds or assets managed by
Piper Capital Management Incorporated (Piper Capital), the Company's asset
management subsidiary.
Employee compensation, including broker compensation and employee incentives,
increased by $17.0 million, or 20% compared to the same three months of fiscal
1997, in line with increases in revenue. Occupancy and equipment and
communications expenses increased $1.1 million (11%) and $0.5 million (9%),
respectively, over the prior year due primarily to significant investment in
technology infrastructure of the branches and headquarters. Travel and
promotional expenses increased $0.7 million or 16% resulting primarily from an
increase in accrued expenses for investor conferences.
LIQUIDITY AND CAPITAL RESOURCES
The Company has a liquid balance sheet. Most of the Company's assets consist of
cash and assets readily convertible into cash. The fluctuations in cash flows
from financing activities are directly related to operating activities due to
the liquid nature of the Company's balance sheet.
Management believes that existing capital, funds from operations and current
credit lines will be sufficient to finance the Company's business.
The Company has structured certain legal settlements related to various funds or
assets managed by Piper Capital. Payments for these agreements, which are due
over one to five years, are expected to be financed through cash flow from
operations and available credit facilities. Certain settlements have
change-in-control provisions which require prepayments.
In the normal course of business, the Company's customer, trading and
correspondent clearance activities involve the execution, settlement and
financing of various securities transactions including repurchase agreements.
These activities may expose the Company to off-balance sheet risk in the event
the other party to the transaction is unable to fulfill its contractual
obligations.
The Company utilizes financial futures contracts to hedge fixed income
inventories against market interest rate fluctuations. Such transactions are
subject to the same controls as all trading for the Company's own account. The
Company also enters into government reverse repurchase agreements to facilitate
hedging. The Company does not, and has no plans to enter into, for either
hedging or speculative purposes, the following types of transactions: interest
rate swaps, foreign currency contracts or significant amounts of futures,
options, forwards, mortgage-backed derivatives, or other securities whose value
is derived from other investment products (derivatives). The Company's
investment management subsidiary, Piper Capital, manages mutual funds and other
investment portfolios which do contain such derivatives.
The Company's current headquarters lease expires in the year 2000 and the
Company intends to enter into a 14-year commitment on a new headquarters
location in fiscal 1998.
Like most corporations, the Company is heavily reliant on technology to deliver
services. As the millennium approaches, the Company is working toward becoming
year 2000 ready. We have developed specific plans to address this issue and are
in the process of implementing them. In this process, the Company expects to
replace some systems and upgrade others. The incremental costs of this project
are not presently expected to be material to the Company's consolidated
financial statements. However, the Company may be adversely impacted if similar
efforts of other organizations are unsuccessful.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
The Company is involved in various lawsuits or arbitrations or threatened
lawsuits or arbitrations and regulatory inquiries incidental to its securities
business. Management of the Company, after consultation with counsel, believes
the resolution of these matters will have no material adverse effect on the
consolidated financial statements.
Item 4. Submission of Matters to a Vote of Security Holders
Due to the pending merger of the Company with U.S. Bancorp, the Company's annual
meeting of shareholders was not held. The Company will be holding a special
meeting of shareholders to approve the merger in the second calendar quarter of
1998.
Item 6. Exhibits and Reports on Form 8-K
11 - Statement Regarding Computation of Per Share Earnings.
27 - Financial Data Schedule - EDGAR version only (filed electronically)
27.1 Financial Data Schedule for December 31, 1997
27.2 Restated Financial Data Schedule for December 31, 1996,
March 31, 1997, June 30, 1997, and September 30, 1997
27.3 Restated Financial Data Schedule for December 31, 1995,
March 31, 1996, June 30, 1996, and September 30, 1996
27.4 Restated Financial Data Schedule for September 30, 1995
(b) Reports on Form 8-K
On December 19, 1997, the Company filed a report on Form 8-K announcing the
Agreement and Plan of Merger dated as of December 14, 1997 by and among Piper
Jaffray Companies Inc., U.S. Bancorp and Cub Acquisition Corporation.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PIPER JAFFRAY COMPANIES INC.
(Registrant)
Dated: February 13, 1998 /s/Deborah K. Roesler
DEBORAH K. ROESLER
Chief Financial Officer and Managing Director
Dated: February 13, 1998 /s/Addison Piper
ADDISON L. PIPER
Chairman and Chief Executive Officer,
President and Director
<PAGE>
PIPER JAFFRAY COMPANIES INC.
INDEX OF EXHIBITS TO QUARTERLY REPORT ON FORM 10-Q
Exhibit Description of Exhibit Form of Filing
11 Statement Regarding Computation of Per Share Earnings Electronic
transmission
27 Financial Data Schedule (EDGAR version only) Electronic
transmission
27.1 Financial Data Schedule for December 31, 1997
27.2 Restated Financial Data Schedule for December 31, 1996,
March 31, 1997, June 30, 1997, and September 30, 1997
27.3 Restated Financial Data Schedule for December 31, 1995,
March 31, 1996, June 30, 1996, and September 30, 1996
27.4 Restated Financial Data Schedule for September 30, 1995
Exhibit 11
PIPER JAFFRAY COMPANIES INC.
STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
(In Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Ended
December 31,
--------------------
1997 1996
--------- ---------
BASIC EARNINGS PER SHARE:
Net income available to common shareholders $10,204 $ 1,820
========= =========
Weighted average number of common shares outstanding 18,985 18,279
Basic earnings per share $ .54 $ .10
========= =========
DILUTED EARNINGS PER SHARE:
Net income available to common shareholders $10,204 $ 1,820
========= =========
Weighted average number of common shares outstanding 18,985 18,279
Dilutive impact of options:
Book value plan options 149 157
Executive incentive stock options 843 247
--------- ---------
19,977 18,683
Earnings per share, assuming dilution $ .51 $ .10
========= =========
<TABLE> <S> <C>
<ARTICLE> BD
<LEGEND>
THE FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE CONSOLIDATED FINANCIAL STATEMENTS OF PIPER JAFFRAY COMPANIES INC. AS OF
AND FOR THE PERIODS ENDED DECEMBER 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH CONSOLIDATED FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> DEC-31-1997
<CASH> 33,803
<RECEIVABLES> 737,739
<SECURITIES-RESALE> 40,202
<SECURITIES-BORROWED> 0
<INSTRUMENTS-OWNED> 232,840
<PP&E> 33,734
<TOTAL-ASSETS> 1,211,118
<SHORT-TERM> 264,625
<PAYABLES> 465,049
<REPOS-SOLD> 24,244
<SECURITIES-LOANED> 0
<INSTRUMENTS-SOLD> 53,637
<LONG-TERM> 38,544
0
0
<COMMON> 19,130
<OTHER-SE> 169,572
<TOTAL-LIABILITY-AND-EQUITY> 1,211,118
<TRADING-REVENUE> 37,184
<INTEREST-DIVIDENDS> 14,785
<COMMISSIONS> 61,599
<INVESTMENT-BANKING-REVENUES> 29,981
<FEE-REVENUE> 10,046
<INTEREST-EXPENSE> 7,593
<COMPENSATION> 103,077
<INCOME-PRETAX> 16,727
<INCOME-PRE-EXTRAORDINARY> 16,727
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 10,204
<EPS-PRIMARY> 0.54 <F1>
<EPS-DILUTED> 0.51 <F2>
<FN>
<F1> BASIC EARNINGS PER SHARE - COMPUTED UNDER SFAS 128
<F2> DILUTED EARNINGS PER SHARE - COMPUTED UNDER SFAS 128
</FN>
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> BD
<RESTATED>
[LEGEND]
THE FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE CONSOLIDATED FINANCIAL STATEMENTS OF PIPER JAFFRAY COMPANIES INC. AS OF
AND AS RESTATED FOR THE PERIODS ENDED DECEMBER 31, 1996, MARCH 31,1997, JUNE
30,1997, AND SEPTEMBER 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH CONSOLIDATED FINANCIAL STATEMENTS.
[/LEGEND]
<S> <C> <C> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS 9-MOS 12-MOS
<FISCAL-YEAR-END> SEP-30-1997 SEP-30-1997 SEP-30-1997 SEP-30-1997
<PERIOD-END> DEC-31-1996 MAR-31-1997 JUN-30-1997 SEP-30-1997
<CASH> 28,374 45,896 29,165 30,862
<RECEIVABLES> 615,692 621,519 747,282 709,488
<SECURITIES-RESALE> 27,441 50,781 43,327 34,113
<SECURITIES-BORROWED> 0 0 0 0
<INSTRUMENTS-OWNED> 184,233 219,183 189,935 196,650
<PP&E> 30,263 30,534 30,338 32,756
<TOTAL-ASSETS> 988,535 1,119,165 1,181,782 1,131,869
<SHORT-TERM> 218,841 295,828 223,950 210,805
<PAYABLES> 328,855 329,561 459,530 446,675
<REPOS-SOLD> 21,137 31,984 36,142 14,810
<SECURITIES-LOANED> 0 0 0 0
<INSTRUMENTS-SOLD> 48,643 69,592 70,022 49,370
<LONG-TERM> 44,855 43,482 42,004 40,709
0 0 0 0
0 0 0 0
<COMMON> 18,661 18,676 18,676 18,754
<OTHER-SE> 156,372 162,978 168,228 152,809
<TOTAL-LIABILITY-AND-EQUITY> 988,535 1,119,165 1,181,782 1,131,869
<TRADING-REVENUE> 43,994 84,429 124,614 162,340
<INTEREST-DIVIDENDS> 12,290 24,818 38,754 53,107
<COMMISSIONS> 46,415 100,029 154,632 218,139
<INVESTMENT-BANKING-REVENUES> 20,937 49,927 70,233 98,335
<FEE-REVENUE> 8,905 17,951 27,130 37,517
<INTEREST-EXPENSE> 6,155 12,299 19,446 26,964
<COMPENSATION> 86,036 179,745 268,447 372,703
<INCOME-PRETAX> 2,983 14,744 25,210 1,514
<INCOME-PRE-EXTRAORDINARY> 2,983 14,744 25,210 1,514
<EXTRAORDINARY> 0 0 0 0
<CHANGES> 0 0 0 0
<NET-INCOME> 1,820 9,289 15,882 954
<EPS-PRIMARY> 0.10 0.50 0.86 0.05 <F1>
<EPS-DILUTED> 0.10 0.49 0.83 0.05 <F2>
<FN>
<F1> BASIC EARNINGS PER SHARE - COMPUTED UNDER SFAS 128
<F2> DILUTED EARNINGS PER SHARE - COMPUTED UNDER SFAS 128
</FN>
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> BD
<RESTATED>
[LEGEND]
THE FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE CONSOLIDATED FINANCIAL STATEMENTS OF PIPER JAFFRAY COMPANIES INC. AS OF
AND AS RESTATED FOR THE PERIODS ENDED DECEMBER 31, 1995, MARCH 31,1996, JUNE
30,1996, AND SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH CONSOLIDATED FINANCIAL STATEMENTS.
[/LEGEND]
<S> <C> <C> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS 9-MOS 12-MOS
<FISCAL-YEAR-END> SEP-30-1996 SEP-30-1996 SEP-30-1996 SEP-30-1996
<PERIOD-END> DEC-31-1995 MAR-31-1996 JUN-30-1996 SEP-30-1996
<CASH> 25,665 23,162 27,409 23,406
<RECEIVABLES> 550,247 572,127 574,153 620,175
<SECURITIES-RESALE> 0 0 0 0
<SECURITIES-BORROWED> 0 0 0 0
<INSTRUMENTS-OWNED> 127,561 134,611 150,049 149,604
<PP&E> 26,609 27,484 28,977 30,185
<TOTAL-ASSETS> 823,048 898,386 919,757 923,740
<SHORT-TERM> 194,082 203,885 224,075 183,320
<PAYABLES> 398,990 314,576 228,667 341,334
<REPOS-SOLD> 0 0 0 0
<SECURITIES-LOANED> 0 0 0 0
<INSTRUMENTS-SOLD> 14,971 47,727 54,686 27,472
<LONG-TERM> 52,889 48,874 46,352 45,333
0 0 0 0
0 0 0 0
<COMMON> 17,569 18,128 18,142 18,198
<OTHER-SE> 144,547 147,705 144,934 148,627
<TOTAL-LIABILITY-AND-EQUITY> 823,048 898,386 919,757 923,740
<TRADING-REVENUE> 40,915 83,529 125,555 165,284
<INTEREST-DIVIDENDS> 9,463 19,539 29,920 41,130
<COMMISSIONS> 42,646 91,390 141,974 185,301
<INVESTMENT-BANKING-REVENUES> 25,023 44,952 72,782 98,812
<FEE-REVENUE> 14,479 30,708 28,422 37,442
<INTEREST-EXPENSE> 3,043 7,429 11,917 16,866
<COMPENSATION> 81,486 166,444 260,044 343,518
<INCOME-PRETAX> 10,908 6,921 4,665 11,961
<INCOME-PRE-EXTRAORDINARY> 10,908 6,921 4,665 11,961
<EXTRAORDINARY> 0 0 0 0
<CHANGES> 0 0 0 0
<NET-INCOME> 6,654 4,360 2,846 7,296
<EPS-PRIMARY> 0.38 0.25 0.16 0.41 <F1>
<EPS-DILUTED> 0.37 0.24 0.16 0.40 <F2>
<FN>
<F1> BASIC EARNINGS PER SHARE - COMPUTED UNDER SFAS 128
<F2> DILUTED EARNINGS PER SHARE - COMPUTED UNDER SFAS 128
</FN>
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> BD
<RESTATED>
[LEGEND]
THE FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE CONSOLIDATED FINANCIAL STATEMENTS OF PIPER JAFFRAY COMPANIES INC. AS OF
AND AS RESTATED FOR THE PERIODS ENDED SEPTEMBER 30, 1995 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH CONSOLIDATED FINANCIAL STATEMENTS.
[/LEGEND]
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-END> SEP-30-1995
<CASH> 17,345
<RECEIVABLES> 427,375
<SECURITIES-RESALE> 0
<SECURITIES-BORROWED> 0
<INSTRUMENTS-OWNED> 111,600
<PP&E> 25,764
<TOTAL-ASSETS> 679,763
<SHORT-TERM> 63,781
<PAYABLES> 365,554
<REPOS-SOLD> 0
<SECURITIES-LOANED> 0
<INSTRUMENTS-SOLD> 21,491
<LONG-TERM> 73,213
0
0
<COMMON> 17,566
<OTHER-SE> 138,158
<TOTAL-LIABILITY-AND-EQUITY> 679,763
<TRADING-REVENUE> 124,910
<INTEREST-DIVIDENDS> 33,765
<COMMISSIONS> 145,492
<INVESTMENT-BANKING-REVENUES> 64,138
<FEE-REVENUE> 63,402
<INTEREST-EXPENSE> 11,741
<COMPENSATION> 262,110
<INCOME-PRETAX> (22,653)
<INCOME-PRE-EXTRAORDINARY> (22,653)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (14,118)
<EPS-PRIMARY> (0.82) <F1>
<EPS-DILUTED> (0.82) <F2>
<FN>
<F1> BASIC EARNINGS PER SHARE - COMPUTED UNDER SFAS 128
<F2> DILUTED EARNINGS PER SHARE - COMPUTED UNDER SFAS 128
</FN>
</TABLE>
