– Second Quarter Fiscal 2024 Revenues of $467
million – – Second Quarter Fiscal 2024 Diluted EPS of $0.99 – –
Adjusted Second Quarter Fiscal 2024 Diluted EPS of $1.11 – –
Announces Dividend of $0.55 per Share for Third Quarter Fiscal 2024
–
Houlihan Lokey, Inc. (NYSE:HLI) (“Houlihan Lokey” or the
“Company”) today reported financial results for its second quarter
ended September 30, 2023.
For the second quarter ended September 30, 2023, revenues were
$467 million, compared with $490 million for the second quarter
ended September 30, 2022. Net income was $67 million, or $0.99 per
diluted share, for the second quarter ended September 30, 2023,
compared with $61 million, or $0.87 per diluted share, for the
second quarter ended September 30, 2022. Adjusted net income for
the second quarter ended September 30, 2023 was $77 million, or
$1.11 per diluted share, compared with $83 million, or $1.19 per
diluted share, for the second quarter ended September 30, 2022.
“We finished our second fiscal quarter with better results than
our prior quarter. We continue to see improvements in the
availability of debt capital and confidence in the earnings outlook
for our clients, all of which bodes well for a steady recovery of
the M&A markets. However, the recent geopolitical crises may
impact our cautious optimism. Regardless, we believe we are well
positioned to handle most economic environments, and we will
continue to invest in professionals, acquisitions, industries and
geographies where we believe we can create long term shareholder
value,” stated Scott Beiser, Chief Executive Officer of Houlihan
Lokey.
Selected Financial Data
(In thousands,
except per share data)
U.S. GAAP
Three Months Ended September
30,
Six Months Ended September
30,
2023
2022
2023
2022
Revenues by segment
Corporate Finance
$
281,684
$
315,016
$
508,735
$
578,967
Financial Restructuring
114,670
97,694
238,038
176,532
Financial and Valuation Advisory
70,635
76,827
136,045
152,682
Revenues
$
466,989
$
489,537
$
882,818
$
908,181
Operating expenses:
Employee compensation and benefits
$
296,542
$
309,859
$
560,025
$
575,594
Non-compensation
80,170
90,307
159,169
165,646
Operating income
90,277
89,371
163,624
166,941
Other expense, net
(3,296
)
5,104
(6,301
)
6,853
Income before provision for income
taxes
93,573
84,267
169,925
160,088
Provision for income taxes
26,542
23,537
41,504
28,576
Net income attributable to Houlihan Lokey,
Inc.
$
67,031
$
60,730
$
128,421
$
131,512
Diluted earnings per share attributable to
Houlihan Lokey, Inc.
$
0.99
$
0.87
$
1.89
$
1.90
Revenues
For the second quarter ended September 30, 2023, revenues were
$467 million, compared with $490 million for the second quarter
ended September 30, 2022. Revenues decreased primarily as a result
of a decrease in the average transaction fee on closed transactions
in our Corporate Finance (“CF”) business. For the second quarter
ended September 30, 2023, CF revenues decreased (11)%, Financial
Restructuring (“FR”) revenues increased 17%, and Financial and
Valuation Advisory (“FVA”) revenues decreased (8)%, in each case,
when compared with the second quarter ended September 30, 2022.
Expenses
The Company’s employee compensation and benefits expenses,
non-compensation expenses, and provision for income taxes during
the periods presented and described below are on a GAAP and an
adjusted basis.
U.S. GAAP
Adjusted (Non-GAAP) *
Three Months Ended September
30,
($ in
thousands)
2023
2022
2023
2022
Expenses:
Employee compensation and benefits
$
296,542
$
309,859
$
287,200
$
301,063
% of Revenues
63.5
%
63.3
%
61.5
%
61.5
%
Non-compensation
$
80,170
$
90,307
$
75,345
$
72,358
% of Revenues
17.2
%
18.4
%
16.1
%
14.8
%
Per full time employee (1)
$
30
$
38
$
29
$
30
Provision for income taxes
$
26,542
$
23,537
$
30,329
$
32,084
% of Pre-tax income
28.4
%
27.9
%
28.4
%
27.9
%
*
Adjusted figures represent non-GAAP
information. See “Non-GAAP Financial Measures” and the tables at
the end of this release for an explanation of the adjustments and
reconciliations to the comparable GAAP numbers.
(1)
Calculated using the average of the number
of full time employees at the beginning of the reporting period and
the end of the reporting period.
U.S. GAAP
Adjusted (Non-GAAP) *
Six Months Ended September
30,
($ in
thousands)
2023
2022
2023
2022
Expenses:
Employee compensation and benefits
$
560,025
$
575,594
$
542,933
$
558,530
% of Revenues
63.4
%
63.4
%
61.5
%
61.5
%
Non-compensation
$
159,169
$
165,646
$
150,989
$
131,932
% of Revenues
18.0
%
18.2
%
17.1
%
14.5
%
Per full time employee (1)
$
60
$
69
$
57
$
55
Provision for income taxes
$
41,504
$
28,576
$
55,828
$
57,289
% of Pre-tax income
24.4
%
17.9
%
28.7
%
26.5
%
*
Adjusted figures represent non-GAAP
information. See “Non-GAAP Financial Measures” and the tables at
the end of this release for an explanation of the adjustments and
reconciliations to the comparable GAAP numbers.
(1)
Calculated using the average of the number
of full time employees at the beginning of the reporting period and
the end of the reporting period.
Employee compensation and benefits expenses were $297 million
for the second quarter ended September 30, 2023, compared with $310
million for the second quarter ended September 30, 2022. Adjusted
employee compensation and benefits expenses were $287 million for
the second quarter ended September 30, 2023, compared with $301
million for the second quarter ended September 30, 2022. This
resulted in an adjusted compensation ratio of 61.5% for both the
second quarter ended September 30, 2023 and the second quarter
ended September 30, 2022. The decrease in GAAP and adjusted
employee compensation and benefits expenses was a result of a
decrease in revenues for the quarter when compared with the same
quarter last year.
Non-compensation expenses were $80 million for the second
quarter ended September 30, 2023, compared with $90 million for the
second quarter ended September 30, 2022. The decrease in GAAP
non-compensation expenses was primarily a result of a decrease in
depreciation and amortization and a decrease in other operating
expenses for the quarter when compared with the same quarter last
year. Adjusted non-compensation expenses were $75 million for the
second quarter ended September 30, 2023, compared with $72 million
for the second quarter ended September 30, 2022. The increase in
adjusted non-compensation expenses was primarily a result of an
increase in rent expense.
The provision for income taxes was $27 million, representing an
effective tax rate of 28.4% for the second quarter ended September
30, 2023, compared with $24 million, representing an effective tax
rate of 27.9% for the second quarter ended September 30, 2022. The
adjusted provision for income taxes was $30 million, representing
an adjusted effective tax rate of 28.4% for the second quarter
ended September 30, 2023, compared with $32 million, representing
an adjusted effective tax rate of 27.9% for the second quarter
ended September 30, 2022.
Segment Reporting for the Second Fiscal Quarter
Corporate Finance
CF revenues were $282 million for the second quarter ended
September 30, 2023, compared with $315 million for the second
quarter ended September 30, 2022, representing a decrease of (11)%.
Revenues decreased due to a decrease in the average transaction fee
on closed transactions, which was driven by transaction mix, and
did not represent a trend in the average transaction fee on closed
transactions.
Three Months Ended September
30,
Six Months Ended September
30,
($ in
thousands)
2023
2022
2023
2022
Corporate Finance
Revenues
$
281,684
$
315,016
$
508,735
$
578,967
# of Managing Directors
211
210
211
210
# of Closed transactions (1)
117
114
212
238
Financial Restructuring
FR revenues increased 17% to $115 million for the second quarter
ended September 30, 2023, compared with $98 million for the second
quarter ended September 30, 2022. Revenues increased primarily due
to an increase in the number of closed transactions during the
quarter, which was driven by favorable market conditions for
restructuring transactions.
Three Months Ended September
30,
Six Months Ended September
30,
($ in
thousands)
2023
2022
2023
2022
Financial Restructuring
Revenues
$
114,670
$
97,694
$
238,038
$
176,532
# of Managing Directors
60
56
60
56
# of Closed transactions (1)
31
24
61
40
Financial and Valuation
Advisory
FVA revenues decreased (8)% to $71 million for the second
quarter ended September 30, 2023, compared with $77 million for the
second quarter ended September 30, 2022. Revenues decreased
primarily due to a decrease in the number of Fee Events. The
decrease in the number of Fee Events was driven by softness in the
M&A markets, which affected one or more of the service lines
within our FVA business.
Three Months Ended September
30,
Six Months Ended September
30,
($ in
thousands)
2023
2022
2023
2022
Financial and Valuation
Advisory
Revenues
$
70,635
$
76,827
$
136,045
$
152,682
# of Managing Directors
40
40
40
40
# of Fee Events (1)
852
890
1,255
1,404
(1)
A Fee Event includes any engagement that
involves revenue activity during the measurement period based on a
revenue minimum of one thousand dollars. References in this press
release to closed transactions should be understood to be the same
as transactions that are “effectively closed” as described in our
periodic reports on Forms 10-K and 10-Q.
Balance Sheet and Capital Allocation
The Board of Directors of the Company declared a regular
quarterly cash dividend of $0.55 per share of Class A and Class B
common stock. The dividend will be payable on December 15, 2023 to
stockholders of record as of the close of business on December 1,
2023. As of September 30, 2023, the Company had $525 million of
cash and cash equivalents and investment securities, and $31
million of other liabilities.
Investor Conference Call and Webcast
The Company will host a conference call and live webcast at 5:00
p.m. Eastern Time on Thursday, October 26, 2023, to discuss its
second quarter fiscal 2024 results. The number to call is
1-877-407-4018 (domestic) or 1-201-689-8471 (international). A live
webcast will be available in the Investor Relations section of the
Company’s website. A replay of the conference call will be
available from October 26, 2023 through November 2, 2023, by
dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international)
and entering the passcode 13741798. A replay of the webcast will be
archived and available on the Company’s website.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. You can identify these
statements by our use of the words “assumes,” “believes,”
“estimates,” “expects,” “guidance,” “intends,” “plans,” “projects,”
and similar expressions that do not relate to historical matters.
You should exercise caution in interpreting and relying on
forward-looking statements because they involve known and unknown
risks, uncertainties, and other factors which are, in some cases,
beyond the Company’s control and could materially affect actual
results, performance, or achievements. For a further description of
such factors, you should read the Company’s filings with the
Securities and Exchange Commission. Because forward-looking
statements are inherently subject to risks and uncertainties, some
of which cannot be predicted or quantified, you should not rely on
these forward-looking statements as predictions of future events.
The events and circumstances reflected in our forward-looking
statements may not be achieved or occur and actual results could
differ materially from those projected in the forward-looking
statements. The Company does not undertake any obligation to update
or revise any forward-looking statement, whether as a result of new
information, future events, or otherwise.
Non-GAAP Financial Measures
Adjusted net income, total and on a per share basis, and certain
adjusted items used to determine adjusted net income, are presented
and discussed in this earnings press release and are non-GAAP
measures that management believes, when presented together with
comparable GAAP measures, are useful to investors in understanding
the Company’s operating results. These adjusted items remove the
significant accounting impact of one-time or non-recurring charges
associated with the Company’s one-time/non-recurring matters, as
set forth in the tables at the end of this release.
The adjusted items included in this earnings press release as
calculated by the Company are not necessarily comparable to
similarly titled measures reported by other companies.
Additionally, these adjusted amounts are not a measurement of
financial performance or liquidity under GAAP and should not be
considered as an alternative to the Company’s financial information
determined under GAAP. For a description of the Company’s use of
these adjusted items and a reconciliation with comparable GAAP
items, see the section of this press release titled “Reconciliation
of GAAP to Adjusted Financial Information.” Please refer to our
financial statements, prepared in accordance with GAAP, for
purposes of evaluating our financial condition, results of
operations, and cash flows.
About Houlihan Lokey
Houlihan Lokey, Inc. (NYSE:HLI) is a global investment bank with
expertise in mergers and acquisitions, capital markets, financial
restructuring, and financial and valuation advisory. Houlihan Lokey
serves corporations, institutions, and governments worldwide with
offices in the Americas, Europe, the Middle East, and the
Asia-Pacific region. Independent advice and intellectual rigor are
hallmarks of the firm’s commitment to client success across its
advisory services. The firm is the No. 1 investment bank for global
M&A transactions under $1 billion, the No. 1 M&A advisor
for the past eight consecutive years in the U.S., the No. 1 global
restructuring advisor for the past nine consecutive years, and the
No. 1 global M&A fairness opinion advisor over the past 25
years, all based on number of transactions and according to data
provided by Refinitiv.
For more information, please visit www.HL.com.
Appendix
Condensed Consolidated Balance Sheets (Unaudited) Condensed
Consolidated Statements of Income (Unaudited) Reconciliation of
GAAP to Adjusted Financial Information (Unaudited)
HOULIHAN LOKEY, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
(In thousands,
except share data and par value)
September 30, 2023
March 31, 2023
Assets
Cash and cash equivalents
$
493,929
$
714,439
Restricted cash
373
373
Investment securities
31,214
37,309
Accounts receivable, net of allowance for
credit losses
152,243
182,029
Unbilled work in process, net of allowance
for credit losses
133,787
115,045
Income taxes receivable
22,549
17,693
Deferred income taxes
106,343
104,941
Property and equipment, net
119,394
88,345
Operating lease right-of-use assets
363,719
333,877
Goodwill
1,086,438
1,087,784
Other intangible assets, net
196,652
203,370
Other assets
74,912
83,609
Total assets
$
2,781,553
$
2,968,814
Liabilities and Stockholders' Equity
Liabilities:
Accrued salaries and bonuses
$
552,673
$
765,877
Accounts payable and accrued expenses
95,125
113,421
Deferred income
37,370
40,695
Deferred income taxes
349
544
Operating lease liabilities
419,421
374,869
Other liabilities
30,539
60,111
Total liabilities
1,135,477
1,355,517
Stockholders' equity:
Class A common stock, $0.001 par value.
Authorized 1,000,000,000 shares; issued and outstanding 51,565,992
and 50,638,924 shares, respectively
52
51
Class B common stock, $0.001 par value.
Authorized 1,000,000,000 shares; issued and outstanding 17,427,625
and 18,048,345 shares, respectively
17
18
Additional paid-in capital
638,404
642,970
Retained earnings
1,087,326
1,033,072
Accumulated other comprehensive loss
(79,723
)
(62,814
)
Total stockholders’ equity
1,646,076
1,613,297
Total liabilities and stockholders’
equity
$
2,781,553
$
2,968,814
HOULIHAN LOKEY, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended September
30,
Six Months Ended September
30,
(In thousands,
except share and per share data)
2023
2022
2023
2022
Revenues
$
466,989
$
489,537
$
882,818
$
908,181
Operating expenses:
Employee compensation and benefits
296,542
309,859
560,025
575,594
Travel, meals, and entertainment
14,151
12,370
30,169
23,420
Rent
19,013
13,285
36,416
25,075
Depreciation and amortization
7,086
19,475
13,618
38,618
Information technology and
communications
14,328
13,183
27,876
24,173
Professional fees
10,859
9,598
20,416
16,067
Other operating expenses
14,733
22,396
30,674
38,293
Total operating expenses
376,712
400,166
719,194
741,240
Operating income
90,277
89,371
163,624
166,941
Other (income)/expense, net
(3,296
)
5,104
(6,301
)
6,853
Income before provision for income
taxes
93,573
84,267
169,925
160,088
Provision for income taxes
26,542
23,537
41,504
28,576
Net income
$
67,031
$
60,730
128,421
131,512
Weighted average shares of common stock
outstanding:
Basic
64,551,353
63,422,701
64,180,642
63,350,545
Fully diluted
67,867,381
69,800,028
67,881,623
69,316,792
Earnings per share attributable to
Houlihan Lokey, Inc.
Basic
$
1.04
$
0.96
$
2.00
$
2.08
Fully diluted
$
0.99
$
0.87
$
1.89
$
1.90
HOULIHAN LOKEY, INC. AND
SUBSIDIARIES
RECONCILIATION OF GAAP TO
ADJUSTED FINANCIAL INFORMATION
(UNAUDITED)
Three Months Ended September
30,
Six Months Ended September
30,
(In
thousands, except share and per share data)
2023
2022
2023
2022
Revenues
$
466,989
$
489,537
$
882,818
$
908,181
Employee compensation and benefits
expenses
Employee compensation and benefits
expenses (GAAP)
$
296,542
$
309,859
$
560,025
$
575,594
Less: Acquisition related retention
payments
(9,342
)
(8,796
)
(17,092
)
(17,064
)
Employee compensation and benefits
expenses (adjusted)
287,200
301,063
542,933
558,530
Non-compensation expenses
Non-compensation expenses (GAAP)
$
80,170
$
90,307
$
159,169
$
165,646
Less: Integration and acquisition related
costs
(1,465
)
(2,325
)
(1,465
)
(2,325
)
Less: Acquisition amortization
(3,360
)
(15,624
)
(6,715
)
(31,389
)
Non-compensation expenses (adjusted)
75,345
72,358
150,989
131,932
Operating income
Operating income (GAAP)
$
90,277
$
89,371
$
163,624
$
166,941
Plus: Adjustments (1)
14,167
26,745
25,272
50,778
Operating income (adjusted)
104,444
116,116
188,896
217,719
Other (income)/expense, net
Other (income)/expense, net (GAAP)
$
(3,296
)
$
5,104
$
(6,301
)
$
6,853
Less: Warrant revaluation
—
(1,014
)
—
(2,264
)
Plus/(less): Change in acquisition earnout
liability fair value
816
(2,841
)
816
(2,841
)
Other (income)/expense, net (adjusted)
(2,480
)
1,249
(5,485
)
1,748
Provision for income taxes
Provision for income taxes (GAAP)
$
26,542
$
23,537
$
41,504
$
28,576
Plus: Impact of the excess tax benefit for
stock vesting
—
—
7,299
8,102
Plus: Release of the provision for an
uncertain tax position as a result of the successful closure of a
state audit
—
—
—
5,762
Adjusted provision for income taxes
26,542
23,537
48,803
42,440
Plus: Resulting tax impact (2)
3,787
8,547
7,025
14,849
Provision for income taxes (adjusted)
30,329
32,084
55,828
57,289
Net income
Net income (GAAP)
$
67,031
$
60,730
$
128,421
$
131,512
Plus: Adjustments (3)
9,564
22,053
10,132
27,170
Net income (adjusted)
76,595
82,783
138,553
158,682
Fully diluted shares
outstanding
Fully diluted shares outstanding
(GAAP)
67,867,381
69,800,028
67,881,623
69,316,792
Plus: Impact of unvested GCA retention and
deferred share awards
1,132,423
—
1,257,446
—
Fully diluted shares outstanding
(adjusted)
68,999,804
69,800,028
69,139,069
69,316,792
Diluted EPS attributable to Houlihan
Lokey, Inc. (GAAP)
$
0.99
$
0.87
$
1.89
$
1.90
Diluted EPS attributable to Houlihan
Lokey, Inc. (adjusted)
$
1.11
$
1.19
$
2.00
$
2.29
(1)
The aggregate of adjustments from employee
compensation and benefits and non-compensation expenses.
(2)
Reflects the tax impact of utilizing the
adjusted effective tax rate on the non-tax adjustments identified
above.
(3)
Consists of all adjustments identified
above net of the associated tax impact.
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Investor Relations 212.331.8225 IR@HL.com
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Houlihan Lokey (NYSE:HLI)
過去 株価チャート
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Houlihan Lokey (NYSE:HLI)
過去 株価チャート
から 6 2023 まで 6 2024