Moelis & Company Reports Fourth Quarter and Full Year 2023 Financial Results; Declares Regular Quarterly Dividend of $0.60 Per Share
-
Fourth quarter GAAP revenues of
$214.9 million ; fourth quarter Adjusted revenues of$214.9 million , up 6% from the prior year period -
Full year 2023 GAAP revenues of
$854.7 million ; full year 2023 Adjusted revenues of$860.1 million , down 11% from the prior year -
GAAP net loss of
$0.08 per share for the fourth quarter of 2023 and$0.36 per share for full year 2023; Adjusted net loss of$0.06 per share for the fourth quarter of 2023 and$0.20 per share for full year 2023 -
Continued to execute on our growth strategy:
- In 2023, we promoted eight advisory professionals to Managing Director and hired 24 Managing Directors in areas of key strategic importance including Technology, Industrials, Metals & Mining, Clean Technology, Power & Utilities, Capital Markets, Capital Structure Advisory and Private Funds Advisory
Launched Clean Technology Group during the third quarter of 2023- Since the beginning of 2024, we have added a total of 10 Managing Directors to our platform, including seven through internal promotions, one new hire focused on enhancing the Firm's coverage of credit funds, and two focused on Upstream Energy that will join in the coming weeks
-
Strong balance sheet with cash and short-term investments of
$349.3 million and no debt or goodwill-
Declared quarterly dividend of
$0.60 per share
-
Declared quarterly dividend of
The Firm's full year 2023 GAAP revenues were
"In 2023, we aggressively expanded our Managing Director headcount in key areas of growth to position the Firm for the coming resurgence in M&A activity. We enter 2024 with a focus on delivering our expanded expertise to our clients," said
The Firm’s revenues and net income can fluctuate materially depending on the number, size and timing of completed transactions as well as other factors. Accordingly, financial results in any particular quarter may not be representative of future results over a longer period of time.
Currently 91% of the operating partnership (
GAAP and Adjusted (non-GAAP) Selected Financial Data (Unaudited)
|
|
GAAP |
|
Adjusted (non-GAAP)* |
||||||||||||||
|
|
Three Months Ended |
||||||||||||||||
($ in thousands except per share data) |
|
2023 |
|
2022 |
|
Variance |
|
2023 |
|
2022 |
|
Variance |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
214,878 |
|
$ |
207,183 |
|
4 |
% |
|
$ |
214,878 |
|
$ |
202,136 |
|
6 |
% |
Income (loss) before income taxes |
|
|
(4,204) |
|
|
32,301 |
|
N/M |
|
|
|
(3,215) |
|
|
34,165 |
|
N/M |
|
Provision (benefit) for income taxes |
|
|
2,260 |
|
|
9,629 |
|
-77 |
% |
|
|
1,608 |
|
|
8,918 |
|
-82 |
% |
Net income (loss) |
|
|
(6,464) |
|
|
22,672 |
|
N/M |
|
|
|
(4,823) |
|
|
25,247 |
|
N/M |
|
Net income (loss) attributable to noncontrolling interests |
|
|
(804) |
|
|
2,617 |
|
N/M |
|
|
|
— |
|
|
— |
|
N/M |
|
Net income (loss) attributable to |
|
$ |
(5,660) |
|
$ |
20,055 |
|
N/M |
|
|
$ |
(4,823) |
|
$ |
25,247 |
|
N/M |
|
Diluted earnings (loss) per share |
|
$ |
(0.08) |
|
$ |
0.28 |
|
N/M |
|
|
$ |
(0.06) |
|
$ |
0.33 |
|
N/M |
|
N/M = not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP) |
|
|
GAAP |
|
Adjusted (non-GAAP)* |
||||||||||||||
|
|
Year Ended |
||||||||||||||||
($ in thousands except per share data) |
|
2023 |
|
2022 |
|
Variance |
|
2023 |
|
2022 |
|
Variance |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
854,748 |
|
$ |
985,297 |
|
-13 |
% |
|
$ |
860,085 |
|
$ |
970,195 |
|
-11 |
% |
Income (loss) before income taxes |
|
|
(29,147) |
|
|
216,320 |
|
N/M |
|
|
|
(17,233) |
|
|
218,184 |
|
N/M |
|
Provision (benefit) for income taxes |
|
|
(1,631) |
|
|
47,638 |
|
N/M |
|
|
|
(2,282) |
|
|
48,776 |
|
N/M |
|
Net income (loss) |
|
|
(27,516) |
|
|
168,682 |
|
N/M |
|
|
|
(14,951) |
|
|
169,408 |
|
N/M |
|
Net income (loss) attributable to noncontrolling interests |
|
|
(2,816) |
|
|
18,337 |
|
N/M |
|
|
|
— |
|
|
— |
|
N/M |
|
Net income (loss) attributable to |
|
$ |
(24,700) |
|
$ |
150,345 |
|
N/M |
|
|
$ |
(14,951) |
|
$ |
169,408 |
|
N/M |
|
Diluted earnings (loss) per share |
|
$ |
(0.36) |
|
$ |
2.14 |
|
N/M |
|
|
$ |
(0.20) |
|
$ |
2.22 |
|
N/M |
|
N/M = not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP) |
Revenues
We earned GAAP revenues of
For the year ended
We continued to execute on our strategy of organic growth in 2023. We promoted eight advisory professionals to Managing Director and hired 24 Managing Directors. The 24 Managing Director hires were in areas of key strategic importance to the Firm including Technology, Industrials, Metals & Mining, Clean Technology, Power & Utilities, Capital Markets, Capital Structure Advisory and Private Funds Advisory.
Since the beginning of 2024, we have added a total of 10 Managing Directors to our platform, including seven through internal promotions, one new hire focused on enhancing the Firm's coverage of credit funds, and two additional hires focused on Upstream Energy that will join in the coming weeks.
The seven advisory professionals promoted to Managing Director include:
As of the date of this release, we have 160 advisory Managing Directors on our platform.
Expenses
The following tables set forth information relating to the Firm’s operating expenses.
|
|
GAAP |
|
Adjusted (non-GAAP)* |
||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||||
($ in thousands) |
|
2023 |
|
2022 |
|
Variance |
|
2023 |
|
2022 |
|
Variance |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
$ |
178,485 |
|
|
$ |
141,029 |
|
|
27 |
% |
|
$ |
175,636 |
|
|
$ |
134,997 |
|
|
30 |
% |
% of revenues |
|
|
83.1 |
% |
|
|
68.1 |
% |
|
|
|
|
|
81.7 |
% |
|
|
66.8 |
% |
|
|
|
Non-compensation expenses |
|
$ |
45,742 |
|
|
$ |
36,729 |
|
|
25 |
% |
|
$ |
44,593 |
|
|
$ |
36,729 |
|
|
21 |
% |
% of revenues |
|
|
21.3 |
% |
|
|
17.7 |
% |
|
|
|
|
|
20.8 |
% |
|
|
18.2 |
% |
|
|
|
Total operating expenses |
|
$ |
224,227 |
|
|
$ |
177,758 |
|
|
26 |
% |
|
$ |
220,229 |
|
|
$ |
171,726 |
|
|
28 |
% |
% of revenues |
|
|
104.4 |
% |
|
|
85.8 |
% |
|
|
|
|
|
102.5 |
% |
|
|
85.0 |
% |
|
|
|
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP) |
|
|
|
GAAP |
|
Adjusted (non-GAAP)* |
||||||||||||||||||
|
|
Year Ended |
||||||||||||||||||||
($ in thousands) |
|
2023 |
|
2022 |
|
Variance |
|
2023 |
|
2022 |
|
Variance |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
$ |
714,749 |
|
|
$ |
618,195 |
|
|
16 |
% |
|
$ |
711,158 |
|
|
$ |
611,219 |
|
|
16 |
% |
% of revenues |
|
|
83.6 |
% |
|
|
62.7 |
% |
|
|
|
|
|
82.7 |
% |
|
|
63.0 |
% |
|
|
|
Non-compensation expenses |
|
$ |
180,351 |
|
|
$ |
151,002 |
|
|
19 |
% |
|
$ |
178,782 |
|
|
$ |
151,002 |
|
|
18 |
% |
% of revenues |
|
|
21.1 |
% |
|
|
15.3 |
% |
|
|
|
|
|
20.8 |
% |
|
|
15.6 |
% |
|
|
|
Total operating expenses |
|
$ |
895,100 |
|
|
$ |
769,197 |
|
|
16 |
% |
|
$ |
889,940 |
|
|
$ |
762,221 |
|
|
17 |
% |
% of revenues |
|
|
104.7 |
% |
|
|
78.1 |
% |
|
|
|
|
|
103.5 |
% |
|
|
78.6 |
% |
|
|
|
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP) |
|
Total operating expenses on a GAAP basis were
Compensation and benefits expenses on a GAAP basis were
Non-compensation expenses on a GAAP basis were
Other Income (Expenses)
|
|
GAAP |
|
Adjusted (non-GAAP)* |
||||||||||||||
|
|
Three Months Ended |
||||||||||||||||
($ in thousands) |
|
2023 |
|
2022 |
|
Variance |
|
2023 |
|
2022 |
|
Variance |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expenses) |
|
$ |
5,145 |
|
$ |
2,876 |
|
79 |
% |
|
$ |
2,136 |
|
$ |
3,755 |
|
-43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
Adjusted (non-GAAP)* |
||||||||||||||
|
|
Year Ended |
||||||||||||||||
($ in thousands) |
|
2023 |
|
2022 |
|
Variance |
|
2023 |
|
2022 |
|
Variance |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expenses) |
|
$ |
11,205 |
|
$ |
220 |
|
4,993 |
% |
|
$ |
12,622 |
|
$ |
10,210 |
|
24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP) |
|
|
|
|
|
|
|
|
|
|
Other income (expenses) on a GAAP basis was
For the year ended
As previously disclosed, Adjusted other income for the year ended
Provision for Income Taxes
The corporate partner (
Capital Management and Balance Sheet
The Board of Directors of
Earnings Call
We will host a conference call beginning at
Investors and analysts may participate in the live conference call by dialing 1-888-300-4150 (domestic) or 1-646-970-1530 (international) and using access code 8014191. Please dial in 15 minutes before the conference call begins. The conference call will also be accessible as a listen-only audio webcast through the Investor Relations section of the
For those unable to listen to the live broadcast, a replay of the call will be available for one month via telephone starting approximately one hour after the live call ends. The replay can be accessed at 1-800-770-2030 (domestic) or 1-647-362-9199 (international); the conference number is 8014191.
About
Forward-Looking Statements
This press release contains forward-looking statements, which reflect the Firm’s current views with respect to, among other things, its operations and financial performance. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “target,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are based on certain assumptions and estimates and subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include, but are not limited to, those described under "Risk Factors" discussed in our Annual Report on Form 10-K for the year ended
Non-GAAP Financial Measures
The Company prepares its consolidated financial statements using accounting principles generally accepted in
The Company’s Adjusted revenues includes amounts reflected within other income (expenses) which are considered the equivalent of revenues for compensation. Such adjustments may include gains on founder investments where our employees and the Moelis advisory platform contributed meaningfully to the value creation; or the mark-to-market impact of equity instruments held by the Company that were originally received as payment for our banking services and included in revenues. We believe these adjustments are useful to allow comparability of period-to-period operating performance and compensation levels.
The Company’s Adjusted compensation and benefits expenses may include adjustments reflected within other income (expenses) associated with compensation awards forfeited due to the enforcement of non-compete provisions. Management views the credits associated with such forfeitures as an offset to compensation and benefits expenses since the Firm will utilize the forfeited economics to recruit and or retain talent. We believe the netted presentation of forfeiture credits and compensation expenses is useful to allow comparability of period-to-period operating performance.
The Company’s Adjusted non-compensation expenses and other income (expenses) may exclude certain one-time items that reduce the comparability of our operating performance as well as the amounts related to revenues and compensation and benefits expenses discussed above and adjustments to our provision for income taxes discussed below. Such adjustments increase the comparability of our financial performance across reporting periods and versus our peers.
The Company’s Adjusted provision (benefit) for income taxes is adjusted to illustrate the result as if 100% of the Firm’s income is being taxed at our corporate effective tax rates for the periods presented. Adjusted provision (benefit) for income taxes periodically includes the tax impact related to the settlement of share-based awards, the reclassification of TRA liability adjustments, or adjustments to our deferred tax assets and liabilities that occur in connection with new tax legislation. Such adjustments increase the comparability of our financial performance across reporting periods and versus our peers.
The Company’s Adjusted basic and diluted shares of Class A common stock outstanding is presented for each period as if all outstanding Class A partnership units have been exchanged into Class A common stock. The Adjusted presentation helps analysts, investors, and other stakeholders understand the effect of the Firm’s ownership structure on its results, including the impact of all the Firm’s income becoming subject to corporate-level tax.
Appendix
GAAP Consolidated Statement of Operations (Unaudited)
Reconciliation of GAAP to Adjusted (non-GAAP) Financial Information (Unaudited)
GAAP Consolidated Statement of Operations Unaudited (dollars in thousands, except for share and per share data) |
|||||||||||||
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
214,878 |
|
$ |
207,183 |
|
$ |
854,748 |
|
$ |
985,297 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
||
Compensation and benefits |
|
|
|
178,485 |
|
|
141,029 |
|
|
714,749 |
|
|
618,195 |
Occupancy |
|
|
|
8,721 |
|
|
6,144 |
|
|
28,608 |
|
|
24,243 |
Professional fees |
|
|
|
7,418 |
|
|
5,038 |
|
|
32,796 |
|
|
20,971 |
Communication, technology and information services |
|
|
|
12,220 |
|
|
10,452 |
|
|
45,978 |
|
|
39,310 |
Travel and related expenses |
|
|
|
8,430 |
|
|
8,018 |
|
|
37,005 |
|
|
32,416 |
Depreciation and amortization |
|
|
|
2,294 |
|
|
2,177 |
|
|
8,317 |
|
|
7,975 |
Other expenses |
|
|
|
6,659 |
|
|
4,900 |
|
|
27,647 |
|
|
26,087 |
Total Expenses |
|
|
|
224,227 |
|
|
177,758 |
|
|
895,100 |
|
|
769,197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
(9,349) |
|
|
29,425 |
|
|
(40,352) |
|
|
216,100 |
||
Other income (expenses) |
|
|
|
5,145 |
|
|
2,876 |
|
|
11,205 |
|
|
220 |
Income (loss) before income taxes |
|
(4,204) |
|
|
32,301 |
|
|
(29,147) |
|
|
216,320 |
||
Provision (benefit) for income taxes |
|
|
|
2,260 |
|
|
9,629 |
|
|
(1,631) |
|
|
47,638 |
Net income (loss) |
|
(6,464) |
|
|
22,672 |
|
|
(27,516) |
|
|
168,682 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to noncontrolling interests |
|
(804) |
|
|
2,617 |
|
|
(2,816) |
|
|
18,337 |
||
Net income (loss) attributable to |
$ |
(5,660) |
|
$ |
20,055 |
|
$ |
(24,700) |
|
$ |
150,345 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares of Class A common stock outstanding |
|
|
|
|
|
|
|
|
|
|
|
||
Basic |
|
|
|
68,880,740 |
|
|
65,874,665 |
|
|
68,501,018 |
|
|
65,766,439 |
Diluted |
|
|
|
68,880,740 |
|
|
70,414,247 |
|
|
68,501,018 |
|
|
70,320,182 |
Net income (loss) attributable to holders of shares of Class A common stock per share |
|
|
|
|
|
|
|
|
|
|
|
||
Basic |
|
|
$ |
(0.08) |
|
$ |
0.30 |
|
$ |
(0.36) |
|
$ |
2.29 |
Diluted |
|
|
$ |
(0.08) |
|
$ |
0.28 |
|
$ |
(0.36) |
|
$ |
2.14 |
Reconciliation of GAAP to Adjusted (non-GAAP) Financial Information Unaudited (dollars in thousands, except share and per share data) |
|||||||||||
|
|
Three Months Ended |
|||||||||
Adjusted items |
|
GAAP |
|
Adjustments |
|
|
Adjusted
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
214,878 |
|
$ |
— |
|
|
$ |
214,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
178,485 |
|
|
(2,849) |
|
(a) |
|
175,636 |
|
Non-compensation expenses |
|
|
45,742 |
|
|
(1,149) |
|
(b) |
|
44,593 |
|
Other income (expenses) |
|
|
5,145 |
|
|
(3,009) |
|
(a)(b)(c) |
|
2,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
|
|
(4,204) |
|
|
989 |
|
|
|
(3,215) |
|
Provision (benefit) for income taxes |
|
|
2,260 |
|
|
(652) |
|
(c)(d) |
|
1,608 |
|
Net income (loss) |
|
|
(6,464) |
|
|
1,641 |
|
|
|
(4,823) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to noncontrolling interests |
|
|
(804) |
|
|
804 |
|
(e) |
|
— |
|
Net income (loss) attributable to |
|
$ |
(5,660) |
|
$ |
837 |
|
|
$ |
(4,823) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares of Class A common stock outstanding |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
68,880,740 |
|
|
6,286,001 |
|
(e) |
|
75,166,741 |
|
Diluted |
|
|
68,880,740 |
|
|
6,286,001 |
|
(e) |
|
75,166,741 |
|
Net income (loss) attributable to holders of shares of Class A common stock per share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.08) |
|
|
|
|
|
$ |
(0.06) |
|
Diluted |
|
$ |
(0.08) |
|
|
|
|
|
$ |
(0.06) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Reflects a reclassification of |
||||||||||
(b) |
Reflects adjustments of |
||||||||||
(c) |
Tax Receivable Agreement liability related adjustments are made to other income (expenses) for GAAP purposes. The adjustment of |
||||||||||
(d) |
An adjustment has been made to illustrate the result as if 100% of the Firm’s income is being taxed at our corporate effective tax rate for the period stated. Our Adjusted tax provision excludes any benefits or costs related to the adjustment to the step-up in tax basis in |
||||||||||
(e) |
Assumes all outstanding Class A partnership units have been exchanged into Class A common stock. |
Reconciliation of GAAP to Adjusted (non-GAAP) Financial Information Unaudited (dollars in thousands, except share and per share data) |
|||||||||||
|
|
|
Three Months Ended |
||||||||
Adjusted items |
|
GAAP |
|
Adjustments |
|
|
Adjusted
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
207,183 |
|
$ |
(5,047) |
|
(a) |
$ |
202,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
141,029 |
|
|
(6,032) |
|
(b) |
|
134,997 |
|
Other income (expenses) |
|
|
2,876 |
|
|
879 |
|
(a)(b)(c)(d) |
|
3,755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
|
|
32,301 |
|
|
1,864 |
|
|
|
34,165 |
|
Provision (benefit) for income taxes |
|
|
9,629 |
|
|
(711) |
|
(c)(e) |
|
8,918 |
|
Net income (loss) |
|
|
22,672 |
|
|
2,575 |
|
|
|
25,247 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to noncontrolling interests |
|
|
2,617 |
|
|
(2,617) |
|
(f) |
|
— |
|
Net income (loss) attributable to |
|
$ |
20,055 |
|
$ |
5,192 |
|
|
$ |
25,247 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares of Class A common stock outstanding |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
65,874,665 |
|
|
5,888,027 |
|
(f) |
|
71,762,692 |
|
Diluted |
|
|
70,414,247 |
|
|
5,888,027 |
|
(f) |
|
76,302,274 |
|
Net income (loss) attributable to holders of shares of Class A common stock per share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.30 |
|
|
|
|
|
$ |
0.35 |
|
Diluted |
|
$ |
0.28 |
|
|
|
|
|
$ |
0.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Reflects a reclassification of |
||||||||||
(b) |
Reflects a reclassification of |
||||||||||
(c) |
Adjustments to TRA liability and associated costs are made to other income (expenses) for GAAP purposes. Such amounts are reclassified to the provision for income taxes line. |
||||||||||
(d) |
Reflects an adjustment of |
||||||||||
(e) |
An adjustment has been made to illustrate the result as if 100% of the Firm’s income is being taxed at our corporate effective tax rate for the period stated. Our Adjusted effective tax rate for the period presented is 26.1%. Our adjusted tax provision includes an expense related to the adjustment to the tax benefit on the settlement of share-based awards of |
||||||||||
(f) |
Assumes all outstanding Class A partnership units have been exchanged into Class A common stock. |
Reconciliation of GAAP to Adjusted (non-GAAP) Financial Information Unaudited (dollars in thousands, except share and per share data) |
|||||||||||
|
|
Year Ended |
|||||||||
Adjusted items |
|
GAAP |
|
Adjustments |
|
|
Adjusted
|
||||
Revenues |
|
$ |
854,748 |
|
$ |
5,337 |
|
(a) |
$ |
860,085 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
714,749 |
|
|
(3,591) |
|
(b) |
|
711,158 |
|
Non-compensation expenses |
|
|
180,351 |
|
|
(1,569) |
|
(c)(d) |
|
178,782 |
|
Other income (expenses) |
|
|
11,205 |
|
|
1,417 |
|
(a)(b)(c)(d)(e) |
|
12,622 |
|
Income (loss) before income taxes |
|
|
(29,147) |
|
|
11,914 |
|
|
|
(17,233) |
|
Provision (benefit) for income taxes |
|
|
(1,631) |
|
|
(651) |
|
(e)(f) |
|
(2,282) |
|
Net income (loss) |
|
|
(27,516) |
|
|
12,565 |
|
|
|
(14,951) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to noncontrolling interests |
|
|
(2,816) |
|
|
2,816 |
|
(g) |
|
— |
|
Net income (loss) attributable to |
|
$ |
(24,700) |
|
$ |
9,749 |
|
|
$ |
(14,951) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares of Class A common stock outstanding |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
68,501,018 |
|
|
6,238,470 |
|
(g) |
|
74,739,488 |
|
Diluted |
|
|
68,501,018 |
|
|
6,238,470 |
|
(g) |
|
74,739,488 |
|
Net income (loss) attributable to holders of shares of Class A common stock per share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.36) |
|
|
|
|
|
$ |
(0.20) |
|
Diluted |
|
$ |
(0.36) |
|
|
|
|
|
$ |
(0.20) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Reflects a reclassification of |
||||||||||
(b) |
Reflects a reclassification of |
||||||||||
(c) |
Reflects adjustments of |
||||||||||
(d) |
Reflects adjustments of |
||||||||||
(e) |
Tax Receivable Agreement liability related adjustments are made to other income (expenses) for GAAP purposes. The adjustment of |
||||||||||
(f) |
An adjustment has been made to illustrate the result as if 100% of the Firm’s income is being taxed at our corporate effective tax rate for the period stated, together with the tax benefit related to the settlement of share-based awards of |
||||||||||
(g) |
Assumes all outstanding Class A partnership units have been exchanged into Class A common stock. |
Reconciliation of GAAP to Adjusted (non-GAAP) Financial Information Unaudited (dollars in thousands, except share and per share data) |
|||||||||||
|
|
|
Year Ended |
||||||||
Adjusted items |
|
GAAP |
|
Adjustments |
|
|
Adjusted
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
985,297 |
|
$ |
(15,102) |
|
(a) |
$ |
970,195 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
618,195 |
|
|
(6,976) |
|
(b) |
|
611,219 |
|
Other income (expenses) |
|
|
220 |
|
|
9,990 |
|
(a)(b)(c)(d) |
|
10,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
|
|
216,320 |
|
|
1,864 |
|
|
|
218,184 |
|
Provision (benefit) for income taxes |
|
|
47,638 |
|
|
1,138 |
|
(c)(e) |
|
48,776 |
|
Net income (loss) |
|
|
168,682 |
|
|
726 |
|
|
|
169,408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to noncontrolling interests |
|
|
18,337 |
|
|
(18,337) |
|
(f) |
|
— |
|
Net income (loss) attributable to |
|
$ |
150,345 |
|
$ |
19,063 |
|
|
$ |
169,408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares of Class A common stock outstanding |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
65,766,439 |
|
|
6,041,284 |
|
(f) |
|
71,807,723 |
|
Diluted |
|
|
70,320,182 |
|
|
6,041,284 |
|
(f) |
|
76,361,466 |
|
Net income (loss) attributable to holders of shares of Class A common stock per share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
2.29 |
|
|
|
|
|
$ |
2.36 |
|
Diluted |
|
$ |
2.14 |
|
|
|
|
|
$ |
2.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Reflects a reclassification of |
||||||||||
(b) |
Reflects a reclassification of |
||||||||||
(c) |
Adjustments to TRA liability and associated costs are made to other income (expenses) for GAAP purposes. Such amounts are reclassified to the provision for income taxes line. |
||||||||||
(d) |
Reflects an adjustment of |
||||||||||
(e) |
An adjustment has been made to illustrate the result as if 100% of the Firm’s income is being taxed at our corporate effective tax rate for the period stated. Our Adjusted effective tax rate for the period presented is 22.4%. Our adjusted tax provision includes a tax benefit related to the settlement of share-based awards of |
||||||||||
(f) |
Assumes all outstanding Class A partnership units have been exchanged into Class A common stock. |
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