PJT Partners Inc. Reports Full Year and Fourth Quarter 2023 Results; Announces $500 Million Repurchase Authorization
Full Year Overview
-
Record Revenues of
$1.15 billion , an increase of 12% from a year ago -
GAAP Pretax Income of
$178 million and Adjusted Pretax Income of$183 million -
GAAP Diluted EPS of
$3.12 and Adjusted EPS of$3.27
Fourth Quarter Overview
-
Record Fourth Quarter Revenues of
$329 million , an increase of 17% from a year ago -
GAAP Pretax Income of
$52 million and Adjusted Pretax Income of$53 million -
GAAP Diluted EPS of
$0.87 and Adjusted EPS of$0.96
2023 Investments and Capital Management
- 1,012 Company-wide headcount, an increase of 12% from a year ago
- 2.2 million share and share equivalents repurchased
-
$437 million of cash, cash equivalents and short-term investments at year end and no funded debt -
Board authorized a
$500 million Class A common stock repurchase program, replacing the existing repurchase authorization
Revenues
The following table sets forth revenues for the three months and year ended
|
|
Three Months Ended
|
|
|
|
|
|
Year Ended
|
|
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
% Change |
|
|
2023 |
|
|
2022 |
|
|
% Change |
||||
|
|
(Dollars in Millions) |
|||||||||||||||||||
Revenues |
|
|
|||||||||||||||||||
Advisory |
|
$ |
290.6 |
|
|
$ |
230.8 |
|
|
26% |
|
|
$ |
1,026.6 |
|
|
$ |
823.5 |
|
|
25% |
Placement |
|
|
28.3 |
|
|
|
43.4 |
|
|
(35%) |
|
|
|
102.6 |
|
|
|
192.9 |
|
|
(47%) |
Interest Income & Other |
|
|
9.6 |
|
|
|
5.8 |
|
|
66% |
|
|
|
23.9 |
|
|
|
9.1 |
|
|
162% |
Total Revenues |
|
$ |
328.6 |
|
|
$ |
280.0 |
|
|
17% |
|
|
$ |
1,153.2 |
|
|
$ |
1,025.5 |
|
|
12% |
Year Ended
Total Revenues of
Advisory Revenues of
Placement Revenues of
Interest Income & Other of
Three Months Ended
Total Revenues of
Advisory Revenues of
Placement Revenues of
Interest Income & Other of
Expenses
The following tables set forth information relating to the Company’s expenses for the three months and year ended
|
|
Year Ended |
|
|||||||||||||
|
|
2023 |
|
|
2022 |
|
||||||||||
|
|
GAAP |
|
|
As Adjusted |
|
|
GAAP |
|
|
As Adjusted |
|
||||
|
|
(Dollars in Millions) |
|
|||||||||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation and Benefits |
|
$ |
805.4 |
|
|
$ |
805.4 |
|
|
$ |
669.1 |
|
|
$ |
657.4 |
|
% of Revenues |
|
|
69.8 |
% |
|
|
69.8 |
% |
|
|
65.2 |
% |
|
|
64.1 |
% |
Non-Compensation |
|
$ |
170.2 |
|
|
$ |
165.1 |
|
|
$ |
154.9 |
|
|
$ |
147.6 |
|
% of Revenues |
|
|
14.8 |
% |
|
|
14.3 |
% |
|
|
15.1 |
% |
|
|
14.4 |
% |
Total Expenses |
|
$ |
975.6 |
|
|
$ |
970.5 |
|
|
$ |
824.0 |
|
|
$ |
805.0 |
|
% of Revenues |
|
|
84.6 |
% |
|
|
84.2 |
% |
|
|
80.4 |
% |
|
|
78.5 |
% |
Pretax Income |
|
$ |
177.6 |
|
|
$ |
182.7 |
|
|
$ |
201.5 |
|
|
$ |
220.5 |
|
% of Revenues |
|
|
15.4 |
% |
|
|
15.8 |
% |
|
|
19.6 |
% |
|
|
21.5 |
% |
|
|
Three Months Ended |
|
|||||||||||||
|
|
2023 |
|
|
2022 |
|
||||||||||
|
|
GAAP |
|
As Adjusted |
|
|
GAAP |
|
As Adjusted |
|
||||||
|
|
(Dollars in Millions) |
|
|||||||||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation and Benefits |
|
$ |
232.3 |
|
|
$ |
232.3 |
|
|
$ |
180.2 |
|
|
$ |
180.2 |
|
% of Revenues |
|
|
70.7 |
% |
|
|
70.7 |
% |
|
|
64.4 |
% |
|
|
64.4 |
% |
Non-Compensation |
|
$ |
44.6 |
|
|
$ |
43.3 |
|
|
$ |
39.7 |
|
|
$ |
38.5 |
|
% of Revenues |
|
|
13.6 |
% |
|
|
13.2 |
% |
|
|
14.2 |
% |
|
|
13.7 |
% |
Total Expenses |
|
$ |
276.9 |
|
|
$ |
275.6 |
|
|
$ |
220.0 |
|
|
$ |
218.7 |
|
% of Revenues |
|
|
84.3 |
% |
|
|
83.9 |
% |
|
|
78.6 |
% |
|
|
78.1 |
% |
Pretax Income |
|
$ |
51.7 |
|
|
$ |
53.0 |
|
|
$ |
60.0 |
|
|
$ |
61.3 |
|
% of Revenues |
|
|
15.7 |
% |
|
|
16.1 |
% |
|
|
21.4 |
% |
|
|
21.9 |
% |
Compensation and Benefits Expense
Year Ended
GAAP Compensation and Benefits Expense was
Three Months Ended
GAAP Compensation and Benefits Expense was
Non-Compensation Expense
Year Ended
GAAP Non-Compensation Expense was
The increase in GAAP and Adjusted Non-Compensation Expense compared with the prior year was principally due to increases in Professional Fees and Occupancy and Related expenses. Professional Fees increased principally due to higher consulting and legal expenses relating to the firm's business activities. Occupancy and Related increased principally due to the further expansion of our
Three Months Ended
GAAP Non-Compensation Expense was
The increase in GAAP and Adjusted Non-Compensation Expense compared with the prior year was principally due to increases in Professional Fees and Occupancy and Related expenses. Professional Fees increased principally due to higher legal expenses relating to the firm's business activities. Occupancy and Related increased principally due to the further expansion of our
Provision for Taxes
As of
In calculating Adjusted Net Income, If-Converted, the Company has assumed that all outstanding Class A partnership units in
The effective tax rate for Adjusted Net Income, If-Converted for the years ended
Capital Management and Balance Sheet
As of
On
During the year ended
In total during the year ended
The Company intends to repurchase 198 thousand Partnership Units for cash on
Dividend
The Board of Directors of
Quarterly Investor Call Details
About
Forward-Looking Statements
Certain material presented herein contains 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 (the “Exchange Act”). Forward-looking statements include certain information concerning future results of operations, business strategies, acquisitions, financing plans, competitive position, potential growth opportunities, potential operating performance improvements, the effects of competition and the effects of future legislation or regulations. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words “believe,” “expect,” “opportunity,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “continue,” “may,” “might,” “should,” “could” or the negative of these terms or similar expressions.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our 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, many of which are outside our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not place undue reliance upon any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (a) changes in governmental regulations and policies; (b) cyberattacks, security vulnerabilities, and internet disruptions, including breaches of data security and privacy leaks, data loss, and business interruptions; (c) failures of our computer systems or communication systems, including as a result of a catastrophic event and the use of remote work environments and virtual platforms; (d) the impact of catastrophic events, including business disruptions, pandemics, reductions in employment and an increase in business failures on (1) the
Any of these factors, as well as such other factors discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended
Non-GAAP Financial Measures
The following represent key performance measures that management uses in making resource allocation and/or compensation decisions. These measures should not be considered substitutes for, or superior to, financial measures prepared in accordance with GAAP.
Management believes the following non-GAAP measures, when presented together with comparable GAAP measures, are useful to investors in understanding the Company’s operating results: Adjusted Pretax Income; Adjusted Net Income; Adjusted Net Income, If-Converted, in total and on a per-share basis (referred to as “Adjusted EPS”); Adjusted Compensation and Benefits Expense and Adjusted Non-Compensation Expense. These non-GAAP measures, presented and discussed in this earnings release, remove the significant accounting impact of: (a) transaction-related compensation expense, including expense related to Partnership Units with both time-based vesting and market conditions as well as equity-based and cash awards granted in connection with the acquisition of
To help investors understand the effect of the Company’s ownership structure on its Adjusted Net Income, the Company has presented Adjusted Net Income, If-Converted. This measure illustrates the impact of taxes on Adjusted Pretax Income, assuming all Partnership Units (excluding the unvested Partnership Units that have yet to satisfy certain market conditions) have been exchanged for shares of the Company’s Class A common stock, resulting in all of the Company’s income becoming subject to corporate-level tax, considering both current and deferred income tax effects. This tax rate excludes a number of adjustments, including the tax benefits of the adjustments for transaction-related compensation expense and amortization expense.
Appendix
GAAP Condensed Consolidated Statements of Operations (unaudited)
Reconciliations of GAAP to Non-GAAP Financial Data (unaudited)
Summary of Shares Outstanding (unaudited)
Footnotes
|
|
Three Months Ended
|
|
|
Year Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Advisory |
|
$ |
290,633 |
|
|
$ |
230,784 |
|
|
$ |
1,026,646 |
|
|
$ |
823,496 |
|
Placement |
|
|
28,338 |
|
|
|
43,405 |
|
|
|
102,611 |
|
|
|
192,890 |
|
Interest Income and Other |
|
|
9,583 |
|
|
|
5,764 |
|
|
|
23,925 |
|
|
|
9,119 |
|
Total Revenues |
|
|
328,554 |
|
|
|
279,953 |
|
|
|
1,153,182 |
|
|
|
1,025,505 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation and Benefits |
|
|
232,271 |
|
|
|
180,242 |
|
|
|
805,385 |
|
|
|
669,141 |
|
Occupancy and Related |
|
|
10,721 |
|
|
|
9,422 |
|
|
|
40,420 |
|
|
|
35,253 |
|
Travel and Related(1) |
|
|
8,727 |
|
|
|
9,481 |
|
|
|
31,190 |
|
|
|
30,404 |
|
Professional Fees |
|
|
7,856 |
|
|
|
5,548 |
|
|
|
36,581 |
|
|
|
27,200 |
|
Communications and Information Services |
|
|
4,840 |
|
|
|
4,078 |
|
|
|
17,157 |
|
|
|
16,897 |
|
Depreciation and Amortization |
|
|
3,460 |
|
|
|
3,319 |
|
|
|
14,047 |
|
|
|
15,475 |
|
Other Expenses(1) |
|
|
8,986 |
|
|
|
7,870 |
|
|
|
30,793 |
|
|
|
29,664 |
|
Total Expenses |
|
|
276,861 |
|
|
|
219,960 |
|
|
|
975,573 |
|
|
|
824,034 |
|
Income Before Provision for Taxes |
|
|
51,693 |
|
|
|
59,993 |
|
|
|
177,609 |
|
|
|
201,471 |
|
Provision for Taxes |
|
|
6,202 |
|
|
|
13,923 |
|
|
|
31,927 |
|
|
|
36,699 |
|
Net Income |
|
|
45,491 |
|
|
|
46,070 |
|
|
|
145,682 |
|
|
|
164,772 |
|
Net Income Attributable to Non-Controlling Interests |
|
|
20,579 |
|
|
|
21,496 |
|
|
|
63,883 |
|
|
|
74,238 |
|
Net Income Attributable to |
|
$ |
24,912 |
|
|
$ |
24,574 |
|
|
$ |
81,799 |
|
|
$ |
90,534 |
|
Net Income Per Share of Class A Common Stock |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.98 |
|
|
$ |
0.97 |
|
|
$ |
3.24 |
|
|
$ |
3.61 |
|
Diluted |
|
$ |
0.87 |
|
|
$ |
0.95 |
|
|
$ |
3.12 |
|
|
$ |
3.51 |
|
Weighted-Average Shares of Class A Common Stock Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
25,362,576 |
|
|
|
25,213,986 |
|
|
|
25,255,327 |
|
|
|
25,077,835 |
|
Diluted |
|
|
43,472,884 |
|
|
|
26,974,129 |
|
|
|
41,882,034 |
|
|
|
26,616,640 |
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
GAAP Net Income |
|
$ |
45,491 |
|
|
$ |
46,070 |
|
|
$ |
145,682 |
|
|
$ |
164,772 |
|
Less: GAAP Provision for Taxes |
|
|
6,202 |
|
|
|
13,923 |
|
|
|
31,927 |
|
|
|
36,699 |
|
GAAP Pretax Income |
|
|
51,693 |
|
|
|
59,993 |
|
|
|
177,609 |
|
|
|
201,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustments to GAAP Pretax Income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Transaction-Related Compensation Expense(2) |
|
|
— |
|
|
|
19 |
|
|
|
— |
|
|
|
11,765 |
|
Amortization of Intangible Assets(3) |
|
|
1,230 |
|
|
|
1,230 |
|
|
|
4,920 |
|
|
|
6,506 |
|
Spin-Off-Related Payable Due to |
|
|
36 |
|
|
|
33 |
|
|
|
136 |
|
|
|
804 |
|
Adjusted Pretax Income |
|
|
52,959 |
|
|
|
61,275 |
|
|
|
182,665 |
|
|
|
220,546 |
|
Adjusted Taxes(5) |
|
|
6,700 |
|
|
|
13,814 |
|
|
|
32,768 |
|
|
|
40,020 |
|
Adjusted Net Income |
|
|
46,259 |
|
|
|
47,461 |
|
|
|
149,897 |
|
|
|
180,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
If-Converted Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: Adjusted Taxes(5) |
|
|
(6,700 |
) |
|
|
(13,814 |
) |
|
|
(32,768 |
) |
|
|
(40,020 |
) |
Add: If-Converted Taxes(6) |
|
|
11,666 |
|
|
|
16,121 |
|
|
|
46,297 |
|
|
|
57,264 |
|
Adjusted Net Income, If-Converted |
|
$ |
41,293 |
|
|
$ |
45,154 |
|
|
$ |
136,368 |
|
|
$ |
163,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP Net Income Per Share of Class A Common Stock |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.98 |
|
|
$ |
0.97 |
|
|
$ |
3.24 |
|
|
$ |
3.61 |
|
Diluted |
|
$ |
0.87 |
|
|
$ |
0.95 |
|
|
$ |
3.12 |
|
|
$ |
3.51 |
|
GAAP Weighted-Average Shares of Class A
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
25,362,576 |
|
|
|
25,213,986 |
|
|
|
25,255,327 |
|
|
|
25,077,835 |
|
Diluted |
|
|
43,472,884 |
|
|
|
26,974,129 |
|
|
|
41,882,034 |
|
|
|
26,616,640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted Net Income, If-Converted Per Share |
|
$ |
0.96 |
|
|
$ |
1.08 |
|
|
$ |
3.27 |
|
|
$ |
3.92 |
|
Weighted-Average Shares Outstanding, If-Converted |
|
|
42,943,082 |
|
|
|
41,812,119 |
|
|
|
41,749,633 |
|
|
|
41,663,773 |
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
GAAP Compensation and Benefits Expense |
|
$ |
232,271 |
|
|
$ |
180,242 |
|
|
$ |
805,385 |
|
|
$ |
669,141 |
|
Transaction-Related Compensation Expense(2) |
|
|
— |
|
|
|
(19 |
) |
|
|
— |
|
|
|
(11,765 |
) |
Adjusted Compensation and Benefits Expense |
|
$ |
232,271 |
|
|
$ |
180,223 |
|
|
$ |
805,385 |
|
|
$ |
657,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-Compensation Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Occupancy and Related |
|
$ |
10,721 |
|
|
$ |
9,422 |
|
|
$ |
40,420 |
|
|
$ |
35,253 |
|
Travel and Related(1) |
|
|
8,727 |
|
|
|
9,481 |
|
|
|
31,190 |
|
|
|
30,404 |
|
Professional Fees |
|
|
7,856 |
|
|
|
5,548 |
|
|
|
36,581 |
|
|
|
27,200 |
|
Communications and Information Services |
|
|
4,840 |
|
|
|
4,078 |
|
|
|
17,157 |
|
|
|
16,897 |
|
Depreciation and Amortization |
|
|
3,460 |
|
|
|
3,319 |
|
|
|
14,047 |
|
|
|
15,475 |
|
Other Expenses(1) |
|
|
8,986 |
|
|
|
7,870 |
|
|
|
30,793 |
|
|
|
29,664 |
|
GAAP Non-Compensation Expense |
|
|
44,590 |
|
|
|
39,718 |
|
|
|
170,188 |
|
|
|
154,893 |
|
Amortization of Intangible Assets(3) |
|
|
(1,230 |
) |
|
|
(1,230 |
) |
|
|
(4,920 |
) |
|
|
(6,506 |
) |
Spin-Off-Related Payable Due to |
|
|
(36 |
) |
|
|
(33 |
) |
|
|
(136 |
) |
|
|
(804 |
) |
Adjusted Non-Compensation Expense |
|
$ |
43,324 |
|
|
$ |
38,455 |
|
|
$ |
165,132 |
|
|
$ |
147,583 |
|
The following table provides a summary of weighted-average shares outstanding for the three months and year ended
|
|
Three Months Ended
|
|
|
Year Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Weighted-Average Shares Outstanding - GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic Shares Outstanding, GAAP |
|
|
25,362,576 |
|
|
|
25,213,986 |
|
|
|
25,255,327 |
|
|
|
25,077,835 |
|
Dilutive Impact of Unvested RSUs(7) |
|
|
2,614,537 |
|
|
|
1,760,143 |
|
|
|
1,711,829 |
|
|
|
1,538,805 |
|
Dilutive Impact of Partnership Units(8) |
|
|
15,495,771 |
|
|
|
— |
|
|
|
14,914,878 |
|
|
|
— |
|
Diluted Shares Outstanding, GAAP |
|
|
43,472,884 |
|
|
|
26,974,129 |
|
|
|
41,882,034 |
|
|
|
26,616,640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-Average Shares Outstanding - If-Converted |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic Shares Outstanding, GAAP |
|
|
25,362,576 |
|
|
|
25,213,986 |
|
|
|
25,255,327 |
|
|
|
25,077,835 |
|
Unvested RSUs(9) |
|
|
2,614,537 |
|
|
|
1,760,143 |
|
|
|
1,711,829 |
|
|
|
1,540,744 |
|
Partnership Units(10) |
|
|
14,965,969 |
|
|
|
14,837,990 |
|
|
|
14,782,477 |
|
|
|
15,045,194 |
|
If-Converted Shares Outstanding |
|
|
42,943,082 |
|
|
|
41,812,119 |
|
|
|
41,749,633 |
|
|
|
41,663,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
As of |
|
|
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
||||
Fully-Diluted Shares Outstanding(11) |
|
|
46,046,461 |
|
|
|
43,599,438 |
|
|
|
|
|
|
|
As of
Footnotes
(1) |
Certain balances in the prior period have been reclassified to conform to their current presentation. For the three months and year ended |
(2) |
This adjustment adds back to GAAP Pretax Income transaction-related compensation expense for Partnership Units with both time-based vesting and market conditions as well as equity-based and cash awards granted in connection with the acquisition of CamberView. |
(3) |
This adjustment adds back to GAAP Pretax Income amounts for the amortization of intangible assets that are associated with |
(4) |
This adjustment adds back to GAAP Pretax Income the net change to the amount the Company has agreed to pay |
(5) |
Represents taxes on Adjusted Pretax Income, considering both current and deferred income tax effects for the current ownership structure. |
(6) |
Represents taxes on Adjusted Pretax Income, assuming all Partnership Units (excluding the unvested Partnership Units that have yet to satisfy market conditions) have been exchanged for shares of the Company’s Class A common stock, resulting in all of the Company’s income becoming subject to corporate-level tax, considering both current and deferred income tax effects. This tax rate excludes a number of adjustments, including the tax benefits of the adjustments for transaction-related compensation expense and amortization expense. |
(7) |
Represents the dilutive impact under the treasury method of unvested, non-participating RSUs that have a remaining service requirement. |
(8) |
Represents the number of shares assuming the conversion of vested Partnership Units, the dilutive impact of unvested Partnership Units with a remaining service requirement, and the dilutive impact of Partnership Units that achieved certain market conditions as if those conditions were achieved as of the beginning of the reporting period. |
(9) |
Represents the dilutive impact of unvested RSUs that have a remaining service requirement. |
(10) |
Represents the number of shares assuming the conversion of all Partnership Units, including Partnership Units that achieved certain market conditions as of the date those conditions were achieved, and excludes Partnership Units that have yet to satisfy certain market conditions. |
(11) |
Assumes all Partnership Units and unvested RSUs have been converted to shares of the Company’s Class A common stock. As of |
Note: |
Amounts presented in tables above may not add or recalculate due to rounding. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240205436389/en/
Media Relations:
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