December 15, 2011 | 7 Pages
Footwear & Apparel Company Report
Deckers Outdoor Corp.
(NNM: DECK)
DOWNGRADING FROM BUY TO UNDERPERFORM: WARM WEATHER, RATING: UNDERPERFORM
HIGHER PRICES, INCREASED DISTRIBUTION — AND THE MANIA
Sam Poser Kenneth M. Stumphauzer,
APPEARS TO BE GONE. LOWERING ESTS AND PT CFA
(212) 763-8226 (212) 763-8287
4Q11 intact but 2012 outlook likely at risk: After numerous channel sposer@sterneagee.com kstumphauzer@sterneagee.com
checks, we have concluded that the UGG business, while still extremely
important to retailers, has been disappointing this fall in the U.S. The Fiscal Year Ends Dec
disappointing results will likely lead to 1Q12 cancelations due to
adequate current inventory levels, and a much more conservative Rating: Underperform
approach to fall 2012 orders. Change in consumer buying patterns this Price: Close $95.59
year is likely to affect the cadence and nature (backlog v. replenishment) Price Target: $72.00
of 2H12 orders. Combination of domestic wholesale door growth and 52-wk Range: $71.18-$118.90
owned retail proliferation is resulting in UGGs becoming ubiquitous, Market Capitalization (M): $3,766.0
especially the Classic. Exacerbating the situation is that wholesale Shares Outstanding (M): 39.40
customers bought UGG product improperly and have become over-reliant Assets (M): $753.9
on Classic styles. We are hearing of unadvertised discounting at a number Avg. Daily Vol. (000): 1,330.1
of independent retail accounts and we have noticed that Nordstrom
Enterprise Value: $3,338.0
(JWN-$47.15 -Buy) is no longer limiting the number of pairs that can be
Consensus EPS Current Year: $5.04
purchased online.
Consensus EPS Next Year: $5.98
2012 outlook still promising but less so than our previous thoughts as Insider Holdings: 4.0%
price increases come to light: We are now forecasting ’12 GM to be
Institutional Holdings: 102.1%
down 108BPS versus ’11. We had thought that international growth,
Short Interest: 11.2%
increased retail penetration, and the higher margin Sanuk business would
Price/Book Value: 5.58x
offset pending 40% increase in sheep skin prices. Higher prices are
impacting sales: We understand that the fall ’11 sales on the Triplet, Earnings Summary
which went from a 2010 retail price of $180 to $200, have been FYE Dec 2011E 2012E 2013E
disappointing, and the price is going up again in 2012. The Classic Tall is EBITDA
reportedly going from $180 to $200 next year, and, along with retailers, (M): $291.5 $328.2 $390.2
we fear that UGG is stretching the pricing limits too far. Retailers are
EPS & P/E Summary
anticipating the $165 Classic Short and the new $150 Bailey Mini to be 2011 2012 2013
the key items in 2H12, which means a likely decrease in ASPs. We now EPS: 2011E Prior 2012E Prior 2013E Prior
believe that the combination of potential 1Q12 boot cancelations, and Q1 $0.56 -- $0.60 $0.69 $0.67 $0.78
domestic retailers planning 2H12 purchases to reflect 2H11 retail selling, Q2 ($0.11) -- $0.01 $0.05 $0.05 $0.18
will result in very cautious outlook when management speaks at the ICR Q3 $1.64 -- $1.62 $1.74 $1.76 $1.66
conference in early January, or on the 4Q11 earnings call. Q4 $3.21 $3.21 $3.59 $4.00 $3.89 $4.31
Lowering rating from Buy to Underperform: We are reducing our 2012 Full Year $5.30 $5.30 $5.81 6.47 $6.36 6.93
sales/EPS estimates from $1.6B/ $6.47 to $1.56B/$5.81. We are also P/E Ratio: 18.03x -- 16.45x -- 15.02x --
lowering our price target from $130 to $72. We do not see risk to our
4Q11 estimates. This downgrade is predicated on a decelerating US
wholesale business. While we believe that retailers’ reaction to the
pricing and 2011 sales trends is warranted, we also believe that such
caution may result in product shortages in late 4Q12, especially given the
strong new offerings in fashion items for men and women, handbags, and
small leather goods. We are confident that the UGG business will
continue to grow globally, and will still be a major part of many domestic
retailers fall ’12 business, but likely with purchases similar to 2H10.
Uncertainty has historically led extreme emotional reactions by investors
when it comes to DECK. In January – March ’09 the stock went from
~$29 to $12.41, then recovered to over $100. It appears to us that such
uncertainty will be evident by the time management releases results in Source: Factset
February.
Important Disclosures regarding Price Target Risks, Valuation Methodology, Regulation Analyst Certification,
Investment Banking, Ratings Definitions, and potential conflicts of interest begin on Page I of the Appendix Section.
800 Shades Creek Parkway Suite 700 Birmingham, AL 35209 205-949-3500
Sterne, Agee & Leach Inc. is Member NYSE, FINRA, SIPC
DECKERS OUTDOOR CORP. (NNM: DECK) December 15, 2011
4Q11 & LT Outlook
Figure 1: Relative Valuation
4Q11E 4Q10A Variance
Revenue 561.9M 277.9M 102.2%
Gross Margin 53.50% 47.13% 637bps
SG&A % of Sales 21.50% 23.26% (176) bps
Operating Margin 32.00% 23.86% 814bps
EBITDA 180.7M 67.2M 168.8%
Adj EPS $3.21 $1.07 198.5%
Segment Revenue
UGG 529.2M 288.8M 83.24%
Teva 16.2M 13.7M 18.51%
Other 3.5M 8.4M (58.79%)
Sanuk 13.0M 0.0M #DIV/0!
Source: FactSet
Figure 2: Changes in Forward Earnings Estimates
2011 2012 2013
Estimates Prior Estimates Prior Estimates Prior
Revenue 1335M 1335M 1,556M 1,598M 1,766M 1,696M
Gross Margin 50.31% 50.31% 49.23% 50.22% 50.03% 51.42%
SG&A % of Sales 28.76% 28.76% 28.36% 27.60% 28.14% 26.59%
Operating Margin 21.56% 21.56% 20.86% 22.63% 21.90% 24.83%
EBITDA 291M 291M 328M 365M 390M 425M
Adj EPS $5.30 $5.30 $5.81 $6.47 $6.36 $6.93
Segment Revenue
UGG 1162.6M 1162.6M 1302.2M 1344.6M 1473.7M 1506.9M
Teva 121.6M 121.6M 141.9M 141.9M 163.2M 163.2M
Other 22.6M 22.6M 22.6M 22.6M 26.0M 26.0M
Sanuk 28.6M 28.6M 89.3M 89.3M 102.7M 102.7M
Source: FactSet
Relative Valuation
Figure 3: Relative Valuation
FY1 Rel FY1 FY2 Rel FY2 FY2
Ticker Price Market Cap EV Short FY1 PE PE EV/EBITD FY1 EV/S FY2 PE PE EV/EBITD EV/S
DECK $95.59 $3,828 $3,910 11% 18.0x 1.41x 13.4x 2.93x 16.5x 1.42x 11.9x 2.51x
RL $138.88 $8,644 $12,870 5% 19.9x 1.56x 10.5x 1.89x 17.1x 1.48x 9.2x 1.71x
COH $59.51 $17,527 $16,958 2% 17.4x 1.36x 10.2x 3.59x 15.0x 1.30x 9.1x 3.22x
FOSL $81.53 $5,136 $5,022 8% 18.0x 1.41x 9.6x 1.95x 14.7x 1.27x 8.2x 1.67x
WWW $34.50 $1,662 $1,639 5% 13.6x 1.06x 8.6x 1.15x 11.6x 1.01x 7.3x 1.05x
WRC $48.42 $2,015 $2,213 9% 12.6x 0.99x 6.6x 0.87x 11.4x 0.98x 6.1x 0.80x
COLM $47.75 $1,607 $1,544 16% 16.2x 1.27x 8.9x 0.90x 15.2x 1.31x 7.7x 0.84x
VFC $130.40 $14,523 $14,678 2% 15.9x 1.24x 9.8x 1.55x 13.5x 1.17x 8.6x 1.27x
JNY $9.49 $782 $1,630 13% 7.3x 0.58x 5.2x 0.42x 7.0x 0.60x 5.0x 0.40x
HBI $22.42 $2,162 $4,382 9% 8.0x 0.63x 7.4x 0.93x 6.8x 0.59x 6.7x 0.89x
Group Mean #REF! 14.32x 1.12x 4.82x 1.47x 11.79x 1.08x 7.54x 1.32x
DECK Prem (Disc) 26% 26% 179% 99% 40% 32% 58% 91%
Source: FactSet
Over the preceding five years, DECK has traded at an average of 17.4x (range: 5.4 to 36)
and 15x (range: 5 to 29.6) FY1 and FY2 estimated earnings. On a relative basis, the
shares traded at a 5/15% premium to the vendor index & S&P500. Both the relative and
absolute valuation levels came in greatly during the recession due to: 1) re-pricing of risk
across the marketplace and 2) investor sentiment that the UGG brand was unsustainable
and hence brand equity would not survive the downturn intact.
We believe there is the possibility that negative earnings revisions will result in multiple
compression after ~8 straight quarters of upwards revisions. Specifically, the multiple
has proven susceptible to perception of discounting, waning brand momentum or
indications of maturation in the core US wholesale channel.
Page 2
DECKERS OUTDOOR CORP. (NNM: DECK) December 15, 2011
Our $72 price target implies the shares trade at 12.4x our 2012 EPS estimates. This
multiple assumes the shares are at a 15% discount to the S&P 500 & the FactSet
Footwear/Apparel Index. On an enterprise basis, our PT assumes the company garners a
7.3x ’12 EBITDA multiple, a 3% discount to the company’s footwear/apparel
counterparts.
Risks:
Upward idiosyncratic risks include: a significant alteration in current weather patterns
stimulating demand, accelerating international business compensating for domestic
weakness, significant pricing offsetting unit weakness in ’12, or another highly accretive
acquisition.
Page 3
DECKERS OUTDOOR CORP. (NNM: DECK) December 15, 2011
Deckers Outdoor Corp. Quarterly Income Statement
($M) Q110 Q210 Q310 Q410 FY10 Q111 Q211 Q311 Q411E FY11E Q112E Q212E Q312E Q412E FY12E Q113E Q213E Q313E Q413E FY13E
Teva 43.17 31.21 13.69 13.30 101.37 50.41 40.29 14.69 16.23 121.62 57.96 48.35 16.91 18.66 141.88 66.65 55.60 19.45 21.46 163.16
UGG 104.37 100.21 288.79 379.78 873.15 148.43 108.27 376.70 529.19 1,162.58 171.63 128.16 391.01 611.39 1,302.19 194.57 142.47 439.73 696.91 1,473.67
Other 8.39 5.60 8.40 4.11 26.50 6.02 5.71 7.41 16.46 35.60 31.02 35.71 26.11 19.06 111.89 35.67 41.07 30.02 21.92 128.67
- - - - - - - - - - - - - - - - - - - -
Net Sales 155.93 137.06 277.88 430.12 1,000.99 204.85 154.22 414.36 561.88 1,335.31 260.60 212.22 434.03 649.11 1,555.95 296.89 239.13 489.20 740.28 1,765.50
Y/Y sales growth 16.17% 33.65% 21.66% 23.60% 23.10% 31.38% 12.52% 49.11% 30.63% 33.40% 27.22% 37.61% 4.75% 15.52% 16.52% 13.92% 12.68% 12.71% 14.05% 13.47%
COGS 78.02 79.42 146.93 196.79 501.15 102.37 88.31 211.51 261.27 663.46 132.91 123.09 225.69 308.32 790.01 148.44 136.31 249.49 347.93 882.17
Gross Profit 77.91 57.64 130.95 233.34 499.84 102.48 65.91 202.85 300.60 671.85 127.70 89.13 208.33 340.78 765.94 148.44 102.83 239.71 392.35 883.33
Y/Y gross profit growth 32.24% 41.33% 33.69% 34.53% 34.69% 31.54% 14.35% 54.91% 28.83% 34.41% 24.61% 35.23% 2.70% 13.37% 14.01% 16.25% 15.37% 15.06% 15.13% 15.33%
SG&A 49.09 46.53 64.64 94.37 254.62 74.28 76.71 112.19 120.80 383.99 94.60 89.13 118.06 139.56 441.34 107.77 100.44 133.06 155.46 496.73
Y/Y Core SG&A growth 24.00% 27.26% 44.06% 39.14% 34.83% 51.33% 64.87% 73.57% 28.01% 50.81% 27.35% 16.19% 5.23% 15.52% 14.94% 13.92% 12.68% 12.71% 11.39% 12.55%
Operating Income 28.82 11.12 66.31 138.97 245.22 28.20 (10.80) 90.66 179.80 287.86 33.10 - 90.28 201.22 324.60 40.67 2.39 106.64 236.89 386.60
Y/Y operating income growth 49.13% 163.10% 24.93% 31.58% 34.55% -2.17% -197.14% 36.71% 29.39% 17.39% 17.38% -100.00% -0.42% 11.91% 12.76% 22.89% #DIV/0! 18.13% 17.73% 19.10%
Interest Income (0.02) (0.50) - (0.25) (0.76) (0.14) - 0.00 0.00 (0.14) (0.30) (0.30) (0.30) (0.30) (1.20) (0.30) (0.30) (0.30) (0.30) (1.20)
Interest Expense & Other 0.02 - (0.21) - (0.20) (0.06) (0.04) 0.05 0.05 (0.00) 0.02 0.02 0.02 0.02 0.07 0.02 0.02 0.02 0.02 0.07
Minority Interest (0.06) - (0.17) - (0.24) (0.03) (0.19) (0.14) - (0.36) (0.06) (0.10) (0.10) 0.41 0.15 (0.06) (0.10) (0.10) 0.41 0.15
Pre-Tax Income 28.89 11.61 66.70 139.21 246.41 28.33 (10.57) 90.75 179.75 288.35 33.44 0.38 90.66 201.09 325.58 41.02 2.77 107.03 236.76 387.58
Taxes 10.75 4.04 24.56 49.00 88.34 8.50 (3.23) 28.27 55.72 89.26 10.37 0.12 28.10 62.34 100.93 14.97 1.01 39.06 86.42 141.47
Tax Rate 37.20% 34.76% 36.82% 35.20% 35.85% 30.00% 30.54% 31.15% 31.00% 30.96% 31.00% 31.00% 31.00% 31.00% 31.00% 36.50% 36.50% 36.50% 36.50% 36.50%
Net Income 17.90 7.58 42.14 90.21 157.82 19.18 (7.34) 62.48 124.03 198.35 23.08 0.26 62.55 138.75 224.65 26.05 1.76 67.96 150.34 246.11
Y/Y net income growth 44.71% 116.47% 24.59% 33.10% 34.36% 7.17% -196.87% 48.26% 37.49% 25.68% 20.32% -103.59% 0.11% 11.87% 13.26% 12.88% 568.13% 8.64% 8.35% 9.56%
One Time Charges - 1.3 (0.63) (0.97) (0.3) 3.0 3.1 1.9
Applicable Shares 39.06 39.08 39.23 39.30 39.17 39.40 38.67 39.19 38.67 38.98 38.67 38.67 38.67 38.67 38.67 38.67 38.67 38.67 38.67 38.67
GAAP EPS $0.46 $0.23 $1.06 $2.27 $4.03 $0.49 ($0.19) $1.59 $3.21 $5.10 $0.60 $0.01 $1.62 $3.59 $5.81 $0.67 $0.05 $1.76 $3.89 $6.36
Recurring Earnings $0.46 $0.19 $1.07 $2.30 $4.03 $0.56 ($0.11) $1.64 $3.21 $5.30 $0.60 $0.01 $1.62 $3.59 $5.81 $0.67 $0.05 $1.76 $3.89 $6.36
Depreciation & Amortization 0.90 0.91 0.90 0.90 3.61 0.90 0.91 0.90 0.90 3.61 0.90 0.91 0.90 0.90 3.61 0.90 0.91 0.90 0.90 3.61
EBITDA 29.72 12.03 67.21 139.87 248.83 29.10 (9.89) 91.56 180.70 291.47 34.00 0.91 91.18 202.12 328.21 41.57 3.30 107.54 237.79 390.21
Profitability Ratios
Gross Margin 49.96% 42.06% 47.13% 54.25% 49.93% 50.03% 42.74% 48.96% 53.50% 50.31% 49.00% 42.00% 48.00% 52.50% 49.23% 50.00% 43.00% 49.00% 53.00% 50.03%
SG&A% 31.48% 33.95% 23.26% 21.94% 25.44% 36.26% 49.74% 27.08% 21.50% 28.76% 36.30% 42.00% 27.20% 21.50% 28.36% 36.30% 42.00% 27.20% 21.00% 28.14%
EBITDA 19.06% 8.77% 24.19% 32.52% 24.86% 14.20% (6.41%) 22.10% 32.16% 21.83% 13.05% 0.43% 21.01% 31.14% 21.09% 14.00% 1.38% 21.98% 32.12% 22.10%
Inc/(Dec) EBITDA% 43.75% 19.97% 26.75% 40.60% 33.53% (1.28%) (127.7%) 17.84% 30.99% 12.75% 8.79% 18.62% (1.95%) 24.56% 16.65% 20.88% 8.88% 29.67% 39.12% 29.59%
EBIT% 18.48% 8.11% 23.86% 32.31% 24.50% 13.76% (7.00%) 21.88% 32.00% 21.56% 12.70% 0.00% 20.80% 31.00% 20.86% 13.70% 1.00% 21.80% 32.00% 21.90%
Inc/(Dec) EBIT % 43.75% 19.97% 26.75% 40.60% 33.53% (1.28%) (127.7%) 17.84% 30.99% 12.75% 8.79% 18.62% (1.95%) 24.56% 16.65% 20.88% 8.88% 29.67% 39.12% 29.59%
Pre-tax 18.53% 8.47% 24.00% 32.37% 24.62% 13.83% (6.85%) 21.90% 31.99% 21.59% 12.83% 0.18% 20.89% 30.98% 20.92% 13.82% 1.16% 21.88% 31.98% 21.95%
Net Margin 11.48% 5.53% 15.17% 20.97% 15.77% 9.36% (4.76%) 15.08% 22.07% 14.85% 8.85% 0.12% 14.41% 21.38% 14.44% 8.77% 0.74% 13.89% 20.31% 13.94%
Effeciency Analysis
Gross Margin 607 229 424 441 430 6 68 183 (75) 38 (103) (74) (96) (100) (109) 100 100 100 50 81
SG&A/Net Sales 199 (170) 362 245 221 478 1579 381 (44) 332 4 (774) 12 0 (39) 0 0 0 (50) (23)
EBITDA 399 377 56 191 200 (486) (1519) (209) (36) (303) (116) 684 (109) (102) (73) 96 95 98 98 101
Operating Margin 409 399 63 196 209 (472) (1511) (198) (31) (294) (106) 700 (108) (100) (70) 100 100 100 100 104
Pre-tax 367 304 69 208 197 (469) (1532) (210) (37) (302) (100) 703 (101) (101) (67) 98 98 99 100 103
Net Margin 226 211 36 150 132 (211) (1029) (9) 110 (91) (51) 488 (67) (70) (42) (8) 61 (52) (107) (50)
Source: Company reports and Sterne Agee estimates
Page 4
DECKERS OUTDOOR CORP. (NNM: DECK) December 15, 2011
APPENDIX SECTION
Company Description: Deckers Outdoor Corporation is a designer, producer, and brand manager of footwear for outdoor
activities and casual lifestyles. It sells its products directly to consumers through retailers in the United States, and through
distributors in a number of international countries. It markets its products under the brand names Teva, UGG, Simple, Ahnu and
TSUBO.
IMPORTANT DISCLOSURES:
Price Target Risks & Related Risk Factors:
Risks to our investment thesis and the achievement of our price target include, but are not limited to, a company's failure to achieve
Sterne, Agee & Leach, Inc., earnings and revenue estimates; unforeseen macroeconomic and/or industry events that adversely affect
demand for a company's products or services; product obsolescence; changes in investor sentiment regarding the specific company or
industry; intense and rapidly changing competitive pressures; the continuing development of industry standards; the company's ability
to recruit and retain competent personnel; and adverse market conditions. For a complete discussion of the risk factors that could
affect the market price of a company's shares, refer to the most recent Form 10-Q or 10-K that a company has filed with the Securities
Exchange Commission, or contact Mr. Robert Hoehn, Director of Research at Sterne, Agee & Leach, Inc., at 1-212-338-4731.
Valuation Methodology:
Methodology for assigning ratings and target prices includes qualitative and quantitative factors including an assessment of industry
size, structure, business trends and overall attractiveness; management effectiveness; competition; visibility; financial condition; and
expected total return, among other factors. These factors are subject to change depending on overall economic conditions or industry
or company-specific occurrences. Sterne, Agee & Leach, Inc., analysts base valuations on a combination of forward looking earnings
multiples, price-to-revenue multiples, and enterprise-value-to-revenue ratios. Sterne, Agee & Leach, Inc., believes this accurately
reflects the absolute value of earnings, the earnings growth rate, the inherent profitability, and adjusted balance sheet factors.
Additional company-specific valuation methodology is available through Sterne, Agee & Leach, Inc., by contacting Mr. Robert
Hoehn, Director of Research, at Sterne, Agee & Leach, Inc., at 1-212-338-4731.
Regulation Analyst Certification:
I, Sam Poser, (212) 763-8226, Kenneth M. Stumphauzer, CFA, (212) 763-8287, hereby certify the views expressed in this research
report accurately reflect my personal views about the subject security(ies) or issuer(s). I further certify that no part of my
compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by me in this
report.
Sterne, Agee & Leach, Inc. Disclosure Legend as of December 15, 2011:
Company Disclosure(s) – See Below
Deckers Outdoor Corp. (DECK - NNM): 1
Nordstrom Inc. (JWN - NYSE): 1
Disclosure Legend
1. Sterne, Agee & Leach, Inc. makes a market in the shares of the subject company.
2. Sterne, Agee & Leach, Inc. has, over the past 12 months, managed or co-managed a public securities offering or
provided other investment banking services for the subject company.
3. Sterne, Agee & Leach, Inc. received compensation for products or services other than investment banking services
from the subject company in the past 12 months.
4. The Sterne Agee analyst who has active coverage on this company owns a position in the subject company.
5. Sterne, Agee & Leach, Inc. or its affiliates beneficially own 1% or more of any class of common equity securities of the
subject company.
Sterne Agee & Leach, Inc. expects to receive or intends to seek compensation for investment banking services from the subject
company in the next three months. Sterne, Agee & Leach, Inc.’s research analysts receive compensation that is based upon various
factors, including Sterne, Agee & Leach, Inc.’s total revenues, a portion of which is generated by investment banking activities.
Definition of Investment Ratings:
BUY: We expect this stock to outperform the industry over the next 12 months.
NEUTRAL: We expect this stock to perform in line with the industry over the next 12 months.
UNDERPERFORM: We expect this stock to underperform the industry over the next 12 months.
RESTRICTED: Restricted list requirements preclude comment.
Appendix Section, Page I
DECKERS OUTDOOR CORP. (NNM: DECK) December 15, 2011
Ratings Distribution:
Of the securities rated by Sterne, Agee & Leach, Inc., as of September 30, 2011, 51.4% had a BUY rating, 44.4% had a NEUTRAL
rating, 3.2% had a UNDERPERFORM rating, and 0% was RESTRICTED. Within those ratings categories, 3.8% of the securities
rated BUY, 1.1% rated NEUTRAL, 0% rated UNDERPERFORM, and 0% rated RESTRICTED received investment banking services
from Sterne, Agee & Leach, Inc., within the 12 months preceding September 30, 2011.
ADDITIONAL INFORMATION AVAILABLE UPON REQUEST: Contact Robert Hoehn at 1-212-338-4731.
Other Disclosures:
Opinions expressed are our present opinions only. This material is based upon information that we consider reliable, but we do not
represent that it is accurate or complete, and it should not be relied upon as such. Sterne, Agee & Leach, Inc., its affiliates, or one or
more of its officers, employees, or consultants may, at times, have long or short or options positions in the securities mentioned herein
and may act as principal or agent to buy or sell such securities.
Copyright © 2011 Sterne, Agee & Leach, Inc. All Rights Reserved.
Sterne, Agee & Leach, Inc. disclosure price charts are updated within the first fifteen days of each new calendar quarter per FINRA
regulations. Price charts for companies initiated upon in the current quarter, and rating and target price changes occurring in the
current quarter, will not be displayed until the following quarter.
Price Chart(s):
To receive price charts or other disclosures on the companies mentioned in this report, please contact
Sterne, Agee & Leach, Inc. toll-free at (800) 240-1438 or (205) 949-3689.
Appendix Section, Page II
Founded in 1901, Sterne Agee has been providing investors like you with high-quality investment opportunities for over a century. During the
early years, our founders prominently established themselves in the financial securities industry in the southeastern United States. Today, we
have expanded to serve all regions of the country. Sterne, Agee is headquartered in Birmingham, Alabama with offices in 22 states. Sterne
Agee is one of the largest independent firms in the country. Sterne, Agee & Leach, Inc. is a division of Sterne Agee Group, Inc., which also
includes The Trust Company of Sterne, Agee & Leach, Inc.; Sterne Agee Asset Management, Inc.; Sterne Agee Clearing, Inc.; and Sterne Agee
Financial Services, Inc.—www.sterneagee.com
EQUITY CAPITAL MARKETS
Ryan Medo Managing Dir., Eq. Cap. Mkts. (205) 949-3623 William McIlroy Director, Equity Products (212) 338-4781
Paul Garner Associate (212) 338-4799
INSTITUTIONAL SALES INSTITUTIONAL TRADING
Steve Pokorny Head of Institutional Sales (214) 702-4020 JT Cacciabaudo Head of Trading (212) 763-8288
EQUITY RESEARCH
Robert Hoehn Director of Research (212) 338-4731
CONSUMER FINANCIAL SERVICES (CONT.)
Apparel Retailing & Toys Mortgage Finance & Specialty Finance
Margaret Whitfield SVP, Sr. Analyst (973) 519-1019 Henry J. Coffey, Jr., CFA Mng. Dir. (615) 760-1472
Tom Nikic, CFA Analyst (212) 338-4784 Jason Weaver Analyst (615) 760-1475
Calvin Hotrum Associate (615) 760-1476
Educational Services / Interactive Entertainment
Arvind Bhatia, CFA Mng. Dir. (214) 702-4001
Property/Casualty Insurance
Brett Strauser Analyst (214) 702-4009
Dan Farrell Mng. Dir. (212) 338-4782
Footwear & Apparel Nitin Chhabra, FCAS Analyst (212) 338-4779
Sam Poser Mng. Dir. (212) 763-8226
Kenneth M. Stumphauzer, CFA Sr. Analyst (212) 763-8287 GLOBAL INDUSTRIAL INFRASTRUCTURE (GII)
Jessica Bornn Associate (212) 338-4721 ACME &Latin America
Ben Elias, CFA SVP, Sr. Analyst (212) 338-4706
Leisure & Entertainment Ali-Ahmad Faghri Associate (646) 376-5304
David Bain Mng. Dir. (949) 721-6651
Sherry Yin Associate (949) 721-6651 Aerospace
Peter Arment Mng. Dir. (646) 376-5336
Restaurants Josh W. Sullivan Analyst (646) 376-5337
Lynne Collier Mng. Dir. (214) 702-4045
Philip May Analyst (214) 702-4004 Coal, Metals & Mining, Engineering & Construction
Michael S. Dudas, CFA Mng. Dir. (646) 376-5329
ENERGY Satyadeep Jain Analyst (646) 376-5357
Exploration & Production Patrick Uotila, CPA Analyst (646) 376-5358
Michael J. McAllister Mng. Dir. (212) 338-4783
Tim Rezvan, CFA Analyst (212) 338-4736 CONSTRUCTION MATERIALS & DIVERSIFIED INDUSTRIALS
Ryan Mueller Associate (212) 338-4732 Todd Vencil, CFA SVP, Sr. Analyst (804) 282-7385
Kevin Bennett, CFA Analyst (804) 282-4506
Oilfield Services & Equipment
Stephen D. Gengaro Mng. Dir. (646) 376-5331 HEALTHCARE
Grant Fox Associate (212) 338-4723 PHARMACEUTICAL SERVICES
Greg T. Bolan Mng. Dir. (615) 760-1469
FINANCIAL SERVICES
Asset Management TECHNOLOGY
Jason Weyeneth, CFA SVP, Sr. Analyst (212) 763-8293 Data Networking and Storage
Charles Warren Analyst (646) 376-5309 Alex Kurtz Mng. Dir (415) 402-6015
Amelia Harris Analyst (415) 402-6018
Banks & Thrifts
Matthew Kelley Mng. Dir. (207) 699-5800 Financial Technology
Mike I. Shafir SVP, Sr. Analyst (212) 763-8239 Greg Smith Mng. Dir (818) 615-2029
Matthew Breese Analyst (207) 699-5800 Jennifer Dugan Analyst (415) 402-6051
Brett Rabatin, CFA SVP, Sr. Analyst (877) 457-8625
Kenneth James Analyst (615) 760-1474 Hardware, Mobile Devices, IT Supply Chain
Nathan Race Associate (615) 760-1477 Shaw Wu SVP, Sr. Analyst (415) 362-7431
Peyton Green Mng. Dir. (877) 492-2663
Zachary Wollam Analyst (615) 760-1468 LED Supply Chain
Todd L. Hagerman Mng. Dir. (212) 338-4744 Andrew Huang Mng. Dir. (415) 362-6143
Robert Greene Analyst (212) 763-8296 John Shen Associate (415) 402-6052
Semiconductors
Life Insurance Vijay Rakesh Mng. Dir. (312) 525-8431
John M. Nadel Mng. Dir. (212) 338-4717 Mark Kelley Analyst (312) 525-8430
Alex Levine Associate (212) 338-4748
TRANSPORTATION, SERVICES & EQUIPMENT
Jeffrey A. Kauffman Mng. Dir. (212) 338-4765
Sal Vitale VP, Analyst (212) 338-4766
Kanchana Pinnapureddy Associate (212) 338-4767
Email Address for Sterne Agee Employees: first initial + last name@sterneagee.com (e.g., jsmith@sterneagee.com)