- Record first-quarter firm-wide adjusted net revenue
- Record first-quarter Financial Advisory adjusted net revenue
- Asset Management quarter end AUM increased 8% year-over-year
“Lazard’s record first-quarter revenue reflects an improving M&A environment and reinforces our outlook for a productive year ahead, as we continue to make strides in executing our long-term strategic plan,” said
|
|
|
|
|
|
|
|
|
|
|
|
(Selected results, $ in millions, |
Quarter Ended |
|
|
|
|
||
|
|
except per share data and AUM) |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
%'24-'23 |
|
|
|
|
Net Revenue |
|
|
|
|
41% |
|
|
|
|
Financial Advisory |
|
|
|
|
63% |
|
|
|
|
Asset Management |
|
|
|
|
4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
|
( |
|
NM |
|
|
|
|
Per share, diluted |
|
|
( |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Financial Measures 1, 2 |
|
|
|
|
|
|
|
|
|
Net Revenue |
|
|
|
|
42% |
|
|
|
|
Financial Advisory |
|
|
|
|
63% |
|
|
|
|
Asset Management |
|
|
|
|
4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
|
( |
|
NM |
|
|
|
|
Per share, diluted |
|
|
( |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets Under Management ($ in billions) |
|
|
|
|
|
|
|
|
|
Ending AUM |
|
|
|
|
8% |
|
|
|
|
Average AUM |
|
|
|
|
9% |
|
|
|
|
|
|
|
|
|
|
|
|
Note: Endnotes are on page 4 of this release. Reconciliations of
NET REVENUE
Financial Advisory
Financial Advisory net revenue and adjusted net revenue1 were
During and since the first quarter of 2024, Lazard has been engaged in significant and complex M&A transactions globally, including the following (clients are in italics): Orange on the combination of its and Masmovil’s operations in
Lazard's preeminent restructuring and liability management practices have been engaged in a broad range of complex restructuring and debt advisory assignments, including company roles involving Enviva,
Our capital advisory and solutions practices remain active and engaged in assignments, including
For a list of publicly announced transactions please visit our website.
Asset Management
Asset Management net revenue and adjusted net revenue1 were
Management fees and other revenue, on an adjusted basis1, were
Incentive fees, on an adjusted basis1 during the period were
Average assets under management (AUM) for the first quarter of 2024 were
AUM as of
OPERATING EXPENSES
Compensation and Benefits
For the first quarter of 2024, compensation and benefits expense on a
We focus on the adjusted compensation ratio to manage costs, balancing a view of current conditions in the market for talent alongside our objective to drive long-term shareholder value. Our goal remains to deliver an adjusted compensation ratio over the cycle in the mid- to high-50s percentage range, while targeting a consistent deferral policy.
Non-Compensation Expenses
For the first quarter of 2024, non-compensation expenses on a
The adjusted non-compensation ratio4 was 18.0% for the first quarter of 2024, compared to 27.0% for the first quarter of 2023.
Our goal remains to deliver an adjusted non-compensation ratio between 16% to 20% over the cycle.
TAXES
The provisions for income taxes, on a
CAPITAL MANAGEMENT AND BALANCE SHEET
In the first quarter of 2024, we issued
In the first quarter of 2024, Lazard returned
In the first quarter of 2024, we repurchased 0.6 million shares at an average price of
On
Lazard’s financial position remains strong. As of
ENDNOTES
Beginning in the first quarter of 2024, Lazard has updated the names of certain non-
-
A non-GAAP measure. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding
U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance withU.S. GAAP. See attached financial schedules and related notes for a detailed explanation of adjustments to correspondingU.S. GAAP results. We believe that presenting our results on an adjusted basis, in addition to theU.S. GAAP results, is a meaningful and useful way to compare our operating results across periods. -
First-quarter 2024 adjusted results1 exclude pre-tax charges of
$48.7 million relating to expenses associated with cost-saving initiatives. Including the effect of taxes, these resulted in a net charge of$30.9 million , or$0.31 , per share, diluted, for the first quarter of 2024. -
The adjusted compensation ratio is based on a calculation where the numerator is adjusted compensation and benefits expense and the denominator is adjusted net revenue.
- The adjusted non-compensation ratio is based on a calculation where the numerator is adjusted non-compensation expense and the denominator is adjusted net revenue.
CONFERENCE CALL
Lazard will host a conference call at
A replay of the conference call will be available by
ABOUT LAZARD
Founded in 1848, Lazard is one of the world's preeminent financial advisory and asset management firms, with operations in
Cautionary Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “target,” “goal,” or “continue,” and the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our strategies, business plans and initiatives and anticipated trends in our business. These forward-looking statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by these forward-looking statements.
These factors include, but are not limited to, those discussed in our Annual Report on Form 10-K under Item 1A “Risk Factors,” and also discussed from time to time in our reports on Forms 10-Q and 8-K, including the following:
- A decline in general economic conditions or the global or regional financial markets;
- A decline in our revenues, for example due to a decline in overall mergers and acquisitions (M&A) activity, our share of the M&A market or our assets under management (AUM);
- Losses caused by financial or other problems experienced by third parties;
- Losses due to unidentified or unanticipated risks;
- A lack of liquidity, i.e., ready access to funds, for use in our businesses; and
- Competitive pressure on our businesses and on our ability to retain and attract employees at current compensation levels
- In the event of a change or adverse interpretation of relevant income tax law, regulation or treaty, or a failure to qualify for treaty benefits, or in the event tax authorities challenge our tax computations or classifications.
Although we believe the statements reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, achievements or events. Neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. We are under no duty to update any of these forward-looking statements after the date of this release to conform our prior statements to actual results or revised expectations and we do not intend to do so.
***
LAZ-EPE
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
( |
|||||||||
|
Three Months Ended |
|
% Change From |
||||||
|
|
|
|
|
|
|
|
|
|
($ in thousands, except per share data) |
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
|
|
|
|
(5%) |
|
40% |
Interest expense |
(20,728) |
|
(19,742) |
|
(19,475) |
|
|
|
|
Net revenue |
764,753 |
|
806,021 |
|
542,436 |
|
(5%) |
|
41% |
Operating expenses: |
|
|
|
|
|
|
|
|
|
Compensation and benefits |
550,824 |
|
559,207 |
|
449,967 |
|
(1%) |
|
22% |
|
|
|
|
|
|
|
|
|
|
Occupancy and equipment |
32,857 |
|
33,436 |
|
31,773 |
|
|
|
|
Marketing and business development |
23,599 |
|
27,259 |
|
22,762 |
|
|
|
|
Technology and information services |
44,917 |
|
47,363 |
|
44,040 |
|
|
|
|
Professional services |
19,880 |
|
23,129 |
|
24,326 |
|
|
|
|
Fund administration and outsourced services |
26,140 |
|
27,450 |
|
26,576 |
|
|
|
|
Amortization and other acquisition-related costs |
68 |
|
95 |
|
48 |
|
|
|
|
Other |
11,907 |
|
19,644 |
|
20,303 |
|
|
|
|
Non-compensation expenses |
159,368 |
|
178,376 |
|
169,828 |
|
(11%) |
|
(6%) |
Benefit pursuant to tax receivable agreement |
– |
|
(3,459) |
|
(40,435) |
|
|
|
|
Operating expenses |
710,192 |
|
734,124 |
|
579,360 |
|
(3%) |
|
23% |
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
54,561 |
|
71,897 |
|
(36,924) |
|
(24%) |
|
NM |
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for income taxes |
14,337 |
|
403 |
|
(21,725) |
|
NM |
|
NM |
Net income (loss) |
40,224 |
|
71,494 |
|
(15,199) |
|
(44%) |
|
NM |
Net income attributable to noncontrolling interests |
4,469 |
|
7,927 |
|
6,973 |
|
|
|
|
Net income (loss) attributable to |
|
|
|
|
( |
|
(44%) |
|
NM |
|
|
|
|
|
|
|
|
|
|
Attributable to |
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
91,260,465 |
|
90,228,532 |
|
87,591,852 |
|
1% |
|
4% |
Diluted |
99,351,769 |
|
94,989,330 |
|
87,591,852 |
|
5% |
|
13% |
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share: |
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
( |
|
(45%) |
|
NM |
Diluted |
|
|
|
|
( |
|
(46%) |
|
NM |
Note: For the three month periods ended
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
( |
|||
|
|
|
|
($ in thousands) |
2024 |
|
2023 |
|
|
|
|
ASSETS |
|||
|
|
|
|
Cash and cash equivalents |
|
|
|
Deposits with banks and short-term investments |
247,847 |
|
219,576 |
Restricted cash |
33,558 |
|
34,091 |
Receivables |
750,483 |
|
762,319 |
Investments |
620,615 |
|
701,964 |
Property |
227,539 |
|
232,516 |
|
394,113 |
|
394,928 |
Operating lease right-of-use assets |
389,884 |
|
407,213 |
Deferred tax assets |
506,171 |
|
497,340 |
Other assets |
493,513 |
|
414,518 |
|
|
|
|
Total Assets |
|
|
|
|
|
|
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS & STOCKHOLDERS' EQUITY |
|||
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
Deposits and other customer payables |
|
|
|
Accrued compensation and benefits |
495,923 |
|
781,375 |
Operating lease liabilities |
467,351 |
|
485,191 |
Tax receivable agreement obligation |
115,001 |
|
115,087 |
Senior debt |
1,851,444 |
|
1,690,200 |
Other liabilities |
583,902 |
|
550,804 |
Total liabilities |
4,049,964 |
|
4,065,919 |
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
Redeemable noncontrolling interests |
88,475 |
|
87,675 |
|
|
|
|
Stockholders' equity |
|
|
|
|
|
|
|
Preferred stock, par value |
– |
|
– |
Common stock, par value |
1,128 |
|
1,128 |
Additional paid-in capital |
134,573 |
|
247,204 |
Retained earnings |
1,384,829 |
|
1,402,636 |
Accumulated other comprehensive loss, net of tax |
(303,995) |
|
(289,950) |
Subtotal |
1,216,535 |
|
1,361,018 |
Class A common stock held by subsidiaries, at cost |
(823,821) |
|
(937,259) |
|
392,714 |
|
423,759 |
Noncontrolling interests |
55,817 |
|
58,428 |
Total stockholders' equity |
448,531 |
|
482,187 |
|
|
|
|
Total liabilities, redeemable noncontrolling interests and stockholders' equity |
|
|
|
Note: "Property" includes
SELECTED SUMMARY FINANCIAL INFORMATION (a) (Adjusted Basis - Non-GAAP - unaudited)
|
|||||||||
|
Three Months Ended |
|
% Change From |
||||||
|
|
|
|
|
|
|
|
|
|
($ in thousands, except per share data) |
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
Net Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Advisory |
|
|
|
|
|
|
(6%) |
|
63% |
Asset Management |
275,934 |
|
273,694 |
|
264,645 |
|
1% |
|
4% |
Corporate |
23,997 |
|
9,898 |
|
(11,488) |
|
142% |
|
NM |
|
|
|
|
|
|
|
|
|
|
Adjusted net revenue (b) |
|
|
|
|
|
|
(2%) |
|
42% |
|
|||||||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted compensation and benefits expense (c) |
|
|
|
|
|
|
(4%) |
|
23% |
Adjusted compensation ratio |
66.0% |
|
67.8% |
|
75.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted non-compensation expenses (d) |
|
|
|
|
|
|
(9%) |
|
(6%) |
Adjusted non-compensation ratio |
18.0% |
|
19.5% |
|
27.0% |
|
|
|
|
|
|||||||||
Earnings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (loss) (e) |
|
|
|
|
( |
|
23% |
|
NM |
Adjusted operating margin (f) |
16.0% |
|
12.8% |
|
(2.7%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (loss) (g) |
|
|
|
|
( |
|
2% |
|
NM |
|
|
|
|
|
|
|
|
|
|
Adjusted diluted net income (loss) per share |
|
|
|
|
( |
|
–% |
|
NM |
|
|
|
|
|
|
|
|
|
|
Adjusted diluted weighted average shares (h) |
101,532,219 |
|
99,154,021 |
|
87,591,852 |
|
2% |
|
16% |
|
|
|
|
|
|
|
|
|
|
Adjusted effective tax rate (i) |
32.6% |
|
16.0% |
|
32.1% |
|
|
|
|
This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding
ASSETS UNDER MANAGEMENT (unaudited) |
|||||||||
($ in millions) |
As of |
|
% Change From |
||||||
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
|
Emerging Markets |
|
|
|
|
|
|
(2.0%) |
|
4.6% |
Global |
55,544 |
|
53,528 |
|
49,797 |
|
3.8% |
|
11.5% |
Local |
54,841 |
|
52,208 |
|
49,887 |
|
5.0% |
|
9.9% |
Multi-Regional |
60,089 |
|
59,114 |
|
55,252 |
|
1.6% |
|
8.8% |
Total Equity |
195,253 |
|
190,138 |
|
178,628 |
|
2.7% |
|
9.3% |
Fixed Income: |
|
|
|
|
|
|
|
|
|
Emerging Markets |
9,080 |
|
9,525 |
|
9,164 |
|
(4.7%) |
|
(0.9%) |
Global |
10,664 |
|
10,762 |
|
11,322 |
|
(0.9%) |
|
(5.8%) |
Local |
6,378 |
|
6,080 |
|
6,002 |
|
4.9% |
|
6.3% |
Multi-Regional |
21,098 |
|
21,740 |
|
18,973 |
|
(3.0%) |
|
11.2% |
Total Fixed Income |
47,220 |
|
48,107 |
|
45,461 |
|
(1.8%) |
|
3.9% |
Alternative Investments |
3,201 |
|
3,330 |
|
4,111 |
|
(3.9%) |
|
(22.1%) |
Other Alternative Investments |
2,643 |
|
2,799 |
|
2,479 |
|
(5.6%) |
|
6.6% |
Private Equity |
1,486 |
|
1,623 |
|
821 |
|
(8.4%) |
|
81.0% |
Cash Management |
629 |
|
654 |
|
640 |
|
(3.8%) |
|
(1.7%) |
Total AUM |
|
|
|
|
|
|
1.5% |
|
7.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
% Change From |
||||||
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
AUM - Beginning of Period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Flows |
(6,630) |
|
(3,550) |
|
2,999 |
|
|
|
|
Market and foreign exchange |
|
|
|
|
|
|
|
|
|
appreciation |
10,411 |
|
21,937 |
|
13,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AUM - End of Period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average AUM |
|
|
|
|
|
|
5.6% |
|
8.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Average AUM generally represents the average of the monthly ending AUM balances for the period.
RECONCILIATION OF (unaudited) |
||||||
|
Three Months Ended |
|
||||
|
|
|
|
|
|
|
($ in thousands, except per share data) |
2024 |
|
2023 |
|
2023 |
|
|
|
|
|
|
|
|
Net Revenue |
||||||
Financial Advisory net revenue - |
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
(Gains) losses associated with cost-saving initiatives (j) |
587 |
|
(340) |
|
– |
|
Reimbursable deal costs, bad debt expense and other (k) |
(7,501) |
|
(11,581) |
|
(3,781) |
|
Interest expense |
41 |
|
29 |
|
68 |
|
|
|
|
|
|
|
|
Adjusted Financial Advisory net revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Management net revenue - |
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
Revenue related to noncontrolling interests (l) |
(4,097) |
|
(3,392) |
|
(4,002) |
|
Distribution fees and other (k) |
(15,448) |
|
(17,201) |
|
(15,400) |
|
Interest expense |
3 |
|
3 |
|
3 |
|
|
|
|
|
|
|
|
Adjusted Asset Management net revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate net revenue (loss) - |
|
|
|
|
( |
|
Adjustments: |
|
|
|
|
|
|
Revenue related to noncontrolling interests (l) |
(3,006) |
|
(6,843) |
|
(6,821) |
|
Gains related to Lazard Fund Interests ("LFI") and other similar arrangements |
(9,373) |
|
(25,933) |
|
(16,453) |
|
Bad debt expense (k) |
– |
|
– |
|
(7,500) |
|
Asset impairment charges |
– |
|
– |
|
19,129 |
|
Losses associated with cost-saving initiatives (j) |
– |
|
571 |
|
– |
|
Interest expense |
20,606 |
|
19,624 |
|
19,339 |
|
|
|
|
|
|
|
|
Adjusted Corporate net revenue (loss) |
|
|
|
|
( |
|
|
|
|
|
|
|
|
Net revenue - |
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
Revenue related to noncontrolling interests (l) |
(7,103) |
|
(10,235) |
|
(10,823) |
|
Gains related to Lazard Fund Interests ("LFI") and other similar arrangements |
(9,373) |
|
(25,933) |
|
(16,453) |
|
Distribution fees, reimbursable deal costs, bad debt expense and other (k) |
(22,949) |
|
(28,782) |
|
(26,681) |
|
Asset impairment charges |
– |
|
– |
|
19,129 |
|
Losses associated with cost-saving initiatives (j) |
587 |
|
231 |
|
– |
|
Interest expense |
20,650 |
|
19,656 |
|
19,410 |
|
|
|
|
|
|
|
|
Adjusted net revenue (b) |
|
|
|
|
|
|
This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding
See Notes to Financial Schedules |
RECONCILIATION OF (unaudited) |
||||||
|
Three Months Ended |
|
||||
|
|
|
|
|
|
|
($ in thousands, except per share data) |
2024 |
|
2023 |
|
2023 |
|
|
|
|
|
|
|
|
Compensation and Benefits Expense |
||||||
Compensation and benefits expense - |
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
Charges pertaining to LFI and other similar arrangements |
(9,373) |
|
(25,933) |
|
(16,453) |
|
Expenses associated with cost-saving initiatives (m) |
(46,610) |
|
(15,814) |
|
(20,740) |
|
Expenses associated with senior management transition (n) |
– |
|
– |
|
(10,674) |
|
Compensation related to noncontrolling interests (l) |
(2,108) |
|
(1,736) |
|
(3,010) |
|
|
|
|
|
|
|
|
Adjusted compensation and benefits expense (c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Compensation Expense |
||||||
Non-compensation expenses - |
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
Expenses associated with cost-saving initiatives (m) |
(1,532) |
|
(807) |
|
– |
|
Distribution fees, reimbursable deal costs, bad debt expense and other (k) |
(22,949) |
|
(28,782) |
|
(26,681) |
|
Amortization and other acquisition-related costs |
(68) |
|
(95) |
|
(48) |
|
Non-compensation expense related to noncontrolling interests (l) |
(526) |
|
(573) |
|
(841) |
|
|
|
|
|
|
|
|
Adjusted non-compensation expenses (d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
||||||
Operating income (loss) - |
|
|
|
|
( |
|
Adjustments: |
|
|
|
|
|
|
Benefit pursuant to tax receivable agreement obligation ("TRA") (o) |
– |
|
(3,459) |
|
(40,435) |
|
Asset impairment charges |
– |
|
– |
|
19,129 |
|
Losses associated with cost-saving initiatives (j) |
587 |
|
231 |
|
– |
|
Expenses associated with cost-saving initiatives (m) |
48,142 |
|
16,621 |
|
20,740 |
|
Expenses associated with senior management transition (n) |
– |
|
– |
|
10,674 |
|
Net income related to noncontrolling interests (l) |
(4,469) |
|
(7,927) |
|
(6,973) |
|
Interest expense |
20,650 |
|
19,656 |
|
19,410 |
|
Amortization and other acquisition-related costs |
68 |
|
96 |
|
49 |
|
|
|
|
|
|
|
|
Adjusted operating income (loss) (e) |
|
|
|
|
( |
|
|
|
|
|
|
|
|
Provision for Income Taxes |
||||||
Provision (benefit) for income taxes - |
|
|
|
|
( |
|
Adjustments: |
|
|
|
|
|
|
Tax effect of adjustments |
17,878 |
|
11,949 |
|
10,884 |
|
|
|
|
|
|
|
|
Adjusted provision (benefit) for income taxes |
|
|
|
|
( |
|
|
|
|
|
|
|
|
Net Income attributable to |
||||||
Net income (loss) attributable to |
|
|
|
|
( |
|
Adjustments: |
|
|
|
|
|
|
Benefit pursuant to tax receivable agreement obligation ("TRA") (o) |
– |
|
(3,459) |
|
(40,435) |
|
Asset impairment charges |
– |
|
– |
|
19,129 |
|
Losses associated with cost-saving initiatives (j) |
587 |
|
231 |
|
– |
|
Expenses associated with cost-saving initiatives (m) |
48,142 |
|
16,621 |
|
20,740 |
|
Expenses associated with senior management transition (n) |
– |
|
– |
|
10,674 |
|
Tax effect of adjustments |
(17,878) |
|
(11,949) |
|
(10,884) |
|
|
|
|
|
|
|
|
Adjusted net income (loss) (g) |
|
|
|
|
( |
|
|
|
|
|
|
|
|
Diluted Weighted Average Shares Outstanding |
||||||
Diluted Weighted Average Shares Outstanding - |
99,351,769 |
|
94,989,330 |
|
87,591,852 |
|
Adjustment: participating securities including profits interest participation rights and other |
2,180,450 |
|
4,164,691 |
|
– |
|
|
|
|
|
|
|
|
Adjusted Diluted Weighted Average Shares Outstanding (h) |
101,532,219 |
|
99,154,021 |
|
87,591,852 |
|
|
|
|
|
|
|
|
Diluted net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
( |
|
Adjusted Basis |
|
|
|
|
( |
|
This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding
See Notes to Financial Schedules |
RECONCILIATION OF NON-COMPENSATION (unaudited) |
||||||
|
Three Months Ended |
|
||||
|
|
|
|
|
|
|
($ in thousands) |
2024 |
|
2023 |
|
2023 |
|
|
|
|
|
|
|
|
Non-compensation expenses - |
|
|
|
|
|
|
Occupancy and equipment |
|
|
|
|
|
|
Marketing and business development |
23,599 |
|
27,259 |
|
22,762 |
|
Technology and information services |
44,917 |
|
47,363 |
|
44,040 |
|
Professional services |
19,880 |
|
23,129 |
|
24,326 |
|
Fund administration and outsourced services |
26,140 |
|
27,450 |
|
26,576 |
|
Amortization and other acquisition-related costs |
68 |
|
95 |
|
48 |
|
Other |
11,907 |
|
19,644 |
|
20,303 |
|
Non-compensation expenses - |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-compensation expense - Adjustments: |
|
|
|
|
|
|
Occupancy and equipment (l) (m) |
( |
|
( |
|
( |
|
Marketing and business development (k) (l) |
(2,079) |
|
(3,748) |
|
(2,728) |
|
Technology and information services (k) (l) (m) |
(35) |
|
(149) |
|
(73) |
|
Professional services (k) (l) (m) |
(873) |
|
(1,306) |
|
(1,402) |
|
Fund administration and outsourced services (k) (l) |
(15,035) |
|
(16,546) |
|
(14,979) |
|
Amortization and other acquisition-related costs |
(68) |
|
(95) |
|
(48) |
|
Other (k) (l) (m) |
(5,412) |
|
(8,216) |
|
(8,279) |
|
Subtotal non-compensation adjustments |
( |
|
( |
|
( |
|
|
|
|
|
|
|
|
Adjusted non-compensation expenses: |
|
|
|
|
|
|
Occupancy and equipment |
|
|
|
|
|
|
Marketing and business development |
21,520 |
|
23,511 |
|
20,034 |
|
Technology and information services |
44,882 |
|
47,214 |
|
43,967 |
|
Professional services |
19,007 |
|
21,823 |
|
22,924 |
|
Fund administration and outsourced services |
11,105 |
|
10,904 |
|
11,597 |
|
Amortization and other acquisition-related costs |
– |
|
– |
|
– |
|
Other |
6,495 |
|
11,428 |
|
12,024 |
|
Adjusted non-compensation expenses (d) |
|
|
|
|
|
|
This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding
See Notes to Financial Schedules |
Notes to Financial Schedules
(a) |
Selected Summary Financial Information are non-GAAP measures. Lazard believes that presenting results and measures on an adjusted basis in conjunction with |
|||||
|
|
|
|
|
|
|
(b) |
A non-GAAP measure which excludes (i) revenue related to non-controlling interests (see (l) below), (ii) gains related to the changes in the fair value of investments held in connection with Lazard Fund Interests and other similar deferred compensation arrangements for which a corresponding equal amount is excluded from compensation & benefits expense, (iii) revenue related to distribution fees, reimbursable deal costs in accordance with the revenue recognition guidance, bad debt expense, and other (see (k) below), (iv) for the three month period ended |
|||||
|
|
|
|
|
|
|
(c) |
A non-GAAP measure which excludes (i) charges related to the changes in the fair value of the compensation liability recorded in connection with Lazard Fund Interests and other similar deferred compensation arrangements, (ii) expenses associated with cost-saving initiatives (see (m) below), (iii) for the three month period ended |
|||||
|
|
|
|
|
|
|
(d) |
A non-GAAP measure which excludes (i) for the three month periods ended |
|||||
|
|
|
|
|
|
|
(e) |
A non-GAAP measure which excludes (i) for the three month periods ended |
|||||
|
|
|
|
|
|
|
(f) |
A non-GAAP measure which represents adjusted operating income as a percentage of adjusted net revenue. |
|||||
|
|
|
|
|
|
|
(g) |
A non-GAAP measure which excludes (i) for the three month periods ended |
|||||
|
|
|
|
|
|
|
(h) |
A non-GAAP measure which includes units of the long-term incentive compensation program consisting of profits interest participation rights, which are equity incentive awards that, subject to certain conditions, may be exchanged for shares of our common stock. Certain profits interest participation rights and other participating securities may be excluded from the computation of outstanding stock equivalents for |
|||||
|
|
|
|
|
|
|
(i) |
Adjusted effective tax rate is a non-GAAP measure based upon the |
|||||
|
|
|
|
|
|
|
(j) |
Represents losses associated with the closing of certain offices as part of the cost-saving initiatives including the reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss and transactions related to foreign currency exchange. |
|||||
|
|
|
|
|
|
|
(k) |
Represents certain distribution, introducer and management fees paid to third parties and reimbursable deal costs for which an equal amount is excluded from both adjusted net revenue and adjusted non-compensation expense, respectively, and excludes bad debt expense, which represents fees and other receivables that are deemed uncollectible. |
|||||
|
|
|
|
|
|
|
(l) |
Noncontrolling interests include revenue and expenses principally related to Edgewater, ESC Funds and a |
|||||
|
|
|
|
|
|
|
(m) |
Represents expenses associated with cost-saving initiatives including closing certain offices. |
|||||
|
|
|
|
|
|
|
(n) |
Represents expenses associated with senior management transition reflecting the departure of certain executive officers. |
|||||
|
|
|
|
|
|
|
(o) |
Pursuant to the periodic revaluation of the TRA liability and the assumptions reflected in the estimate, the revaluation had the effect of reducing the estimated liability under the TRA. As a result, the Company recorded a “benefit pursuant to tax receivable agreement” of |
|||||
|
|
|
|
|
|
|
NM |
Not meaningful |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240425191838/en/
Media:
+1 212 632 6880
shannon.houston@lazard.com
Investor:
+1 212 632 6886
alexandra.deignan@lazard.com
Source: