– Record Second Quarter Fiscal 2018 Revenue of $242 million,
up 30% Year-Over-Year –
–Second Quarter Fiscal 2018 Diluted EPS of $0.50, up
61% Year-Over-Year –
–Adjusted Second Quarter Fiscal 2018 Diluted EPS of
$0.56, up 51% Year-Over-Year –
– Announces Dividend of $0.20 per Share for Third Quarter
Fiscal 2018 –
LOS ANGELES & NEW YORK--(BUSINESS WIRE)--
Houlihan Lokey, Inc. (NYSE:HLI) (“Houlihan Lokey”, the “Company”), the
global investment bank, today reported financial results for its second
quarter ended September 30, 2017. For the second quarter, total revenue
grew 30% to a second quarter record of $242 million, as compared with
$187 million for the second quarter ended September 30, 2016.
Net income grew 60% to $33 million, or $0.50 per diluted share, for the
second quarter ended September 30, 2017, compared with $21 million, or
$0.31 per diluted share, for the second quarter ended September 30,
2016. Adjusted net income for the second quarter ended September 30,
2017 grew 50% to $37 million, or $0.56 per diluted share, compared with
$25 million, or $0.37 per diluted share, for the second quarter ended
September 30, 2016.
"We are pleased to have achieved a record for the second quarter with
strong financial performance from all three product lines. We enter the
third quarter with a stable M&A environment and strong client confidence
which should continue to drive the healthy segments of our business for
the second half of the year. Our pledge to shareholders has not changed
since our IPO; we remain committed to making strategic investments to
build shareholder value over the long term, and we remain focused in
further diversifying our business model to enable us to be successful in
varying market environments and geographies,” stated Scott Beiser, Chief
Executive Officer of Houlihan Lokey.
Selected Financial Data |
(Unaudited and in thousands, except per share data)
|
|
| |
| | U.S. GAAP |
| Three Months Ended
September 30, |
| Six Months Ended
September 30, |
| 2017 |
| 2016 | | 2017 |
|
| 2016 |
| Fee revenue | | $ | 242,183 | | | $ | 186,537 | | | $ | 459,674 | | | $ | 367,311 |
| Operating expenses: | | | | | | | | |
|
Employee compensation and benefits
| | |
161,295
| | | |
124,902
| | | |
306,804
| | | |
246,706
|
|
Non-compensation expenses
| |
|
27,562
|
| |
|
26,658
|
| |
|
52,671
|
| |
|
52,767
|
|
Total operating expenses
| | |
188,857
| | | |
151,560
| | | |
359,475
| | | |
299,473
|
|
Operating income
| | |
53,326
| | | |
34,977
| | | |
100,199
| | | |
67,838
|
|
Other (income) expense, net
| |
|
(200
|
)
| |
|
749
|
| |
|
(1,706
|
)
| |
|
1,657
|
|
Income before provision for income taxes
| | |
53,526
| | | |
34,228
| | | |
101,905
| | | |
66,181
|
|
Provision for income taxes
| |
|
20,169
|
| |
|
13,352
|
| |
|
29,304
|
| |
|
25,894
|
| Net income attributable to Houlihan Lokey, Inc. | | $ | 33,357 |
| | $ | 20,876 |
| | $ | 72,601 |
| | $ | 40,287 |
| | | | | | | |
|
|
Diluted net income per share of common stock
| |
$
|
0.50
| | |
$
|
0.31
| | |
$
|
1.09
| | |
$
|
0.61
|
Revenues
For the second quarter ended September 30, 2017, total fee revenue grew
30% to $242 million from $187 million for the second quarter ended
September 30, 2016. For the quarter, Corporate Finance (“CF”) revenues
increased 46%, Financial Restructuring (“FR”) revenues increased 11%,
and Financial Advisory Services (“FAS”) revenues increased 12% when
compared with the second quarter ended September 30, 2016.
Expenses
The Company’s employee compensation and benefits and non-compensation
expenses during the periods presented and described below are on a GAAP,
an adjusted, and an adjusted awarded basis, as appropriate.
(Unaudited and in thousands)
|
| Three Months Ended September 30, |
| | U.S. GAAP |
| Adjusted (Non-GAAP)* |
| | 2017 |
| 2016 | | 2017 |
| 2016 |
| Expenses: | | | | | | | | |
|
Employee compensation and benefits
| |
$
|
161,295
| | |
$
|
124,902
| | |
$
|
154,997
| | |
$
|
118,426
| |
| % of Revenues | | | 66.6 | % | | | 67.0 | % | | | 64.0 | % | | | 63.5 | % |
|
Non-compensation expenses
| |
$
|
27,562
| | |
$
|
26,658
| | |
$
|
27,562
| | |
$
|
26,658
| |
| % of Revenues | | | 11.4 | % | | | 14.3 | % | | | 11.4 | % | | | 14.3 | % |
|
Total operating expenses
| |
$
|
188,857
| | |
$
|
151,560
| | |
$
|
182,559
| | |
$
|
145,084
| |
| % of Revenues | | | 78.0 | % | | | 81.2 | % | | | 75.4 | % | | | 77.8 | % |
|
| |
|
|
|
|
|
|
|
| | | | | | | |
|
|
Adjusted awarded employee compensation and benefits
| | | | | |
$
|
158,630
| | |
$
|
121,260
| |
| % of Revenues | | | | | | |
65.5
|
%
| | |
65.0
|
%
|
(Unaudited and in thousands)
|
| Six Months Ended September 30, |
| | U.S. GAAP |
| Adjusted (Non-GAAP)* |
| | 2017 |
| 2016 | | 2017 |
| 2016 |
| Expenses: | | | | | | | | |
|
Employee compensation and benefits
| |
$
|
306,804
| | |
$
|
246,706
| | |
$
|
294,193
| | |
$
|
233,700
| |
| % of Revenues | | | 66.7 | % | | | 67.2 | % | | | 64.0 | % | | | 63.6 | % |
|
Non-compensation expenses
| |
$
|
52,671
| | |
$
|
52,767
| | |
$
|
52,671
| | |
$
|
52,767
| |
| % of Revenues | | | 11.5 | % | | | 14.4 | % | | | 11.5 | % | | | 14.4 | % |
|
Total operating expenses
| |
$
|
359,475
| | |
$
|
299,473
| | |
$
|
346,864
| | |
$
|
286,467
| |
| % of Revenues | | | 78.2 | % | | | 81.5 | % | | | 75.5 | % | | | 78.0 | % |
|
| |
|
|
|
|
|
|
|
| | | | | | | |
|
|
Adjusted awarded employee compensation and benefits
| | | | | |
$
|
301,087
| | |
$
|
239,668
| |
| % of Revenues | | | | | | |
65.5
|
%
| | |
65.2
|
%
|
*Note: The adjusted and adjusted awarded 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.
Total operating expenses were $189 million for the second quarter ended
September 30, 2017, an increase of 25% when compared with $152 million
in operating expenses for the second quarter ended September 30, 2016.
Employee compensation and benefits expenses were $161 million for the
second quarter ended September 30, 2017, compared with $125 million for
the second quarter ended September 30, 2016. The increase in employee
compensation and benefits expenses was primarily a result of the growth
in revenues for the quarter.
Total adjusted operating expenses were $183 million for the second
quarter ended September 30, 2017, an increase of 26% when compared with
$145 million in adjusted operating expenses for the second quarter ended
September 30, 2016. Adjusted employee compensation and benefits expenses
were $155 million for the second quarter ended September 30, 2017,
compared with $118 million for the second quarter ended September 30,
2016. The increase in adjusted employee compensation and benefits
expenses were primarily a result of the growth in revenues for the
quarter. This resulted in an adjusted awarded compensation ratio of
65.5% for the second quarter ended September 30, 2017, compared with
65.0% for the second quarter ended September 30, 2016.
Non-compensation expenses were $28 million for the second quarter ended
September 30, 2017, compared with $27 million for the second quarter
ended September 30, 2016, an increase of 3%. Non-compensation expenses
increased primarily as a result of higher general operating expenses
during the second quarter of fiscal 2018.
Segment Reporting for the Second Quarter
For the second quarter ended September 30, 2017, Corporate Finance
revenue grew 46% to $146 million, compared with $100 million during the
second quarter ended September 30, 2016. The growth in revenues was
driven by an increase in the number of closed transactions, as well as
an increase in average transaction fees on closed transactions. CF
closed 64 transactions in the second quarter, versus 56 transactions in
the same quarter last year. Segment profit was $54 million for the
second quarter ended September 30, 2017, compared with $28 million for
the second quarter ended September 30, 2016. Segment profitability
increased as a result of a decrease in employee compensation and
benefits expenses as a percentage of revenues and a decrease in
non-compensation expenses as a percentage of revenues.
(Unaudited and $ in thousands)
|
| Three Months Ended
September 30, |
| Six Months Ended
September 30, |
| | 2017 |
| 2016 | | 2017 |
| 2016 |
| Corporate Finance | | | | | | | | |
Revenues
| |
$
|
145,821
| | |
$
|
100,207
| | |
$
|
269,820
| | |
$
|
196,243
|
|
Segment Profit¹
| | |
54,211
| | | |
27,722
| | | |
95,786
| | | |
51,094
|
|
# of MDs
| | |
94
| | | |
91
| | | |
94
| | | |
91
|
|
# of Closed Transactions
| | |
64
| | | |
56
| | | |
116
| | | |
104
|
For the second quarter ended September 30, 2017, Financial Restructuring
revenue grew 11% to $63 million, compared with $57 million during the
second quarter ended September 30, 2016. The growth in revenues was
driven primarily by an increase in the number of closed transactions. FR
closed 14 transactions in the second quarter ended September 30, 2017
versus 12 transactions in the second quarter ended September 30, 2016.
Segment profit was $8 million for the second quarter ended September 30,
2017, compared with $14 million for the second quarter ended
September 30, 2016. Segment profitability decreased as a result of an
increase in employee compensation and benefits expenses as a percentage
of revenues, partially offset by a decrease in non-compensation expenses
as a percentage of revenues.
(Unaudited and $ in thousands)
|
| Three Months Ended
September 30, |
| Six Months Ended
September 30, |
| | 2017 |
| 2016 | | 2017 |
|
| 2016 |
| Financial Restructuring | | | | | | | | |
|
Revenues
| |
$
|
63,281
| | |
$
|
56,862
| | |
$
|
122,310
| | |
$
|
113,192
|
|
Segment Profit¹
| | |
7,840
| | | |
14,174
| | | |
18,575
| | | |
30,878
|
|
# of MDs
| | |
40
| | | |
43
| | | |
40
| | | |
43
|
|
# of Closed Transactions
| | |
14
| | | |
12
| | | |
32
| | | |
22
|
For the second quarter ended September 30, 2017, Financial Advisory
Services revenue grew 12% to $33 million, compared with $29 million in
the second quarter ended September 30, 2016. Revenues for FAS increased
primarily as a result of strong performance by our transaction opinion,
transaction advisory, and portfolio valuation businesses and our
intellectual property business is off to a strong start. Segment profit
was $7 million for both the second quarters ended September 30, 2017 and
September 30, 2016. FAS generated 532 fee events in the second quarter
ended September 30, 2017, versus 437 fee events during the same quarter
last year.
(Unaudited and $ in thousands)
|
| Three Months Ended
September 30, |
| Six Months Ended
September 30, |
| | 2017 |
| 2016 | | 2017 |
| 2016 |
| Financial Advisory Services | | | | | | | | |
|
Revenues
| |
$
|
33,082
| | |
$
|
29,468
| | |
$
|
67,545
| | |
$
|
57,876
|
|
Segment Profit¹
| | |
6,729
| | | |
6,535
| | | |
15,192
| | | |
13,270
|
|
# of MDs
| | |
40
| | | |
34
| | | |
40
| | | |
34
|
|
# of Fee Events2 | | |
532
| | | |
437
| | | |
842
| | | |
701
|
1.We adjust the compensation expense for a business segment
in situations where an employee residing in one business segment is
performing work in another business segment where the revenues are
accrued.We account for the compensation expense in the business
segment where the employee resides.
2.A Fee Event includes any engagement that involves revenue
activity during the measurement period based on a revenue minimum of
$1,000 (one thousand dollars).
Balance Sheet and Capital Allocation
The Board of Directors of the Company declared a regular quarterly cash
dividend of $0.20 per share of Class A and Class B common stock. The
dividend will be payable on December 15, 2017 to stockholders of record
as of the close of business on December 4, 2017.
For the second quarter ended September 30, 2017, the Company repurchased
261,991 shares of its common stock in open market purchases at an
average price of $35.75 per share, for a total cost of $9.4 million.
As of September 30, 2017, the Company had $306 million of cash and cash
equivalents and investment securities, and loans payable aggregating $16
million.
Investor Conference Call and Webcast
The Company will host a conference call and live webcast at 5:00 p.m.
Eastern Time on Tuesday, October 24, 2017, to discuss its second quarter
fiscal 2018 results. The number to call is 1-888-713-3592 (domestic) or
1-719-325-4750 (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 on October 24, 2017 through October
31, 2017, by dialing 1-844-512-2921 (domestic) or 1-412-317-6671
(international) and entering the passcode 4380863#. 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. 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 adjusted
operating expenses 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. Adjusted net
income and adjusted operating expenses remove the significant accounting
impact of one-time charges associated with the Company’s IPO and other
matters, as set forth in the tables at the end of this release.
Adjusted net income and adjusted operating expenses as calculated by the
Company are not necessarily comparable to similarly titled measures
reported by other companies. Additionally, adjusted net income is 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 adjusted net income and a reconciliation with net income, as well
as a reconciliation of the specific line items in adjusted operating
expenses, 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 (NYSE:HLI) is a global investment bank with expertise in
mergers and acquisitions, capital markets, financial restructuring,
valuation, and strategic consulting. The firm serves corporations,
institutions, and governments worldwide with offices in the United
States, 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. Houlihan
Lokey is ranked as the No. 1 M&A advisor for all U.S. transactions, the
No. 1 global restructuring advisor, and the No. 1 global M&A fairness
opinion advisor over the past 20 years, according to Thomson Reuters.
For more information, please visit www.HL.com.
Appendix
Consolidated Balance Sheet (Unaudited)
Consolidated Statement of Income (Unaudited)
Reconciliation of GAAP to Adjusted Financial Information (Unaudited)
Houlihan Lokey, Inc. |
Consolidated Balance Sheet |
(In thousands, except share data and par value)
|
|
| |
| |
| | September 30,
2017 | | March 31,
2017 |
| |
(unaudited)
| |
(audited)
|
| Assets | | | | |
|
Cash and cash equivalents
| |
$
|
245,356
| | |
$
|
300,314
| |
|
Restricted cash
| | |
—
| | | |
192,372
| |
|
Investment securities
| | |
60,558
| | | |
—
| |
|
Accounts receivable, net of allowance for doubtful accounts
| | |
39,355
| | | |
60,718
| |
|
Unbilled work in process
| | |
34,518
| | | |
57,682
| |
|
Income taxes receivable
| | |
5,611
| | | |
—
| |
|
Receivable from affiliates
| | |
8,659
| | | |
10,913
| |
|
Property and equipment, net of accumulated depreciation
| | |
33,083
| | | |
30,416
| |
| Goodwill and other intangibles
| | |
721,534
| | | |
715,343
| |
|
Other assets
| |
|
20,007
|
| |
|
17,949
|
|
| Total assets | | $ | 1,168,681 |
| | $ | 1,385,707 |
|
| Liabilities and Stockholders' Equity | | | | |
| Liabilities: | | | | |
|
Accrued salaries and bonuses
| |
$
|
276,690
| | |
$
|
336,465
| |
|
Accounts payable and accrued expenses
| | |
39,735
| | | |
41,655
| |
|
Deferred income
| | |
5,123
| | | |
3,717
| |
|
Income taxes payable
| | |
—
| | | |
4,937
| |
|
Deferred income taxes
| | |
31,616
| | | |
31,196
| |
|
Forward repurchase liability
| | |
—
| | | |
192,372
| |
|
Loan payable to affiliate
| | |
—
| | | |
15,000
| |
|
Loans payable to former shareholders
| | |
4,003
| | | |
5,482
| |
|
Loan payable to non-affiliate
| | |
12,177
| | | |
12,080
| |
|
Other liabilities
| |
|
9,172
|
| |
|
12,348
|
|
| Total liabilities | | $ | 378,516 |
| | $ | 655,252 |
|
| | | |
|
|
Redeemable noncontrolling interest
| | |
4,467
| | | |
3,838
| |
| | | |
|
| Stockholders' equity: | | | | |
|
Class A common stock, $0.001 par value. Authorized 1,000,000,000
shares; issued and outstanding 24,571,041 and 22,026,811 shares as
of September 30, 2017 and March 31, 2017, respectively
| | |
25
| | | |
22
| |
|
Class B common stock, $0.001 par value. Authorized 1,000,000,000
shares; issued and outstanding 42,092,288 and 50,883,299 shares as
of September 30, 2017 and March 31, 2017, respectively
| | |
42
| | | |
51
| |
| Treasury stock, at cost; 0 and 6,900,000 shares as of September 30,
and March 31, 2017, respectively
| | |
—
| | | |
(193,572
|
)
|
|
Additional paid-in capital
| | |
665,551
| | | |
854,750
| |
|
Retained earnings
| | |
134,244
| | | |
87,407
| |
|
Accumulated other comprehensive loss
| | |
(14,164
|
)
| | |
(21,917
|
)
|
|
Stock subscription receivable
| |
|
—
|
| |
|
(124
|
)
|
| Total stockholders' equity | |
| 785,698 |
| |
| 726,617 |
|
| Total liabilities and stockholders' equity | | $ | 1,168,681 |
| | $ | 1,385,707 |
|
Houlihan Lokey, Inc. |
Consolidated Statement of Income |
(Unaudited and in thousands, except share and per share data)
|
|
| |
| |
| | Three Months Ended
September 30, | | Six Months Ended
September 30, |
| | 2017 |
| 2016 | | 2017 |
| 2016 |
| Fee revenue | | $ | 242,183 | | | $ | 186,537 | | | $ | 459,674 | | | $ | 367,311 |
| | | | | | | |
|
| Operating expenses: | | | | | | | | |
|
Employee compensation and benefits
| | |
161,295
| | | |
124,902
| | | |
306,804
| | | |
246,706
|
|
Travel, meals, and entertainment
| | |
6,229
| | | |
5,215
| | | |
11,907
| | | |
11,145
|
|
Rent
| | |
6,959
| | | |
6,702
| | | |
14,149
| | | |
13,736
|
|
Depreciation and amortization
| | |
2,175
| | | |
2,382
| | | |
4,149
| | | |
4,621
|
|
Information technology and communications
| | |
4,966
| | | |
4,465
| | | |
9,242
| | | |
8,851
|
|
Professional fees
| | |
3,371
| | | |
3,074
| | | |
5,758
| | | |
5,431
|
|
Other operating expenses
| | |
3,497
| | | |
4,115
| | | |
6,487
| | | |
7,539
|
|
Provision for bad debt
| |
|
365
|
| |
|
705
|
| |
|
979
|
| |
|
1,444
|
|
Total operating expenses
| | |
188,857
| | | |
151,560
| | | |
359,475
| | | |
299,473
|
| | | | | | | |
|
|
Operating income
| | |
53,326
| | | |
34,977
| | | |
100,199
| | | |
67,838
|
| | | | | | | |
|
|
Other (income) expense, net
| |
|
(200
|
)
| |
|
749
|
| |
|
(1,706
|
)
| |
|
1,657
|
|
Income before provision for income taxes
| | |
53,526
| | | |
34,228
| | | |
101,905
| | | |
66,181
|
| | | | | | | |
|
|
Provision for income taxes
| |
|
20,169
|
| |
|
13,352
|
| |
|
29,304
|
| |
|
25,894
|
| Net income attributable to Houlihan Lokey, Inc. | | $ | 33,357 | | | $ | 20,876 | | | $ | 72,601 | | | $ | 40,287 |
| | | | | | | |
|
|
Weighted average shares of common stock outstanding:
| | | | | | | | |
|
Basic
| | |
62,117,998
| | | |
61,134,501
| | | |
62,230,177
| | | |
60,860,138
|
|
Fully Diluted
| | |
66,907,890
| | | |
66,816,689
| | | |
66,640,539
| | | |
66,582,459
|
|
Net income per share of common stock:
| | | | | | | | |
|
Basic
| |
$
|
0.54
| | |
$
|
0.34
| | |
$
|
1.17
| | |
$
|
0.66
|
|
Fully Diluted
| |
$
|
0.50
| | |
$
|
0.31
| | |
$
|
1.09
| | |
$
|
0.61
|
Houlihan Lokey, Inc. |
Reconciliation of GAAP to Adjusted Financial Information |
(Unaudited and in thousands, except per share data)
|
|
| |
| |
| | Three Months Ended
September 30, | | Six Months Ended
September 30, |
| | 2017 |
| 2016 | | 2017 |
| 2016 |
| Fee revenue | | $ | 242,183 | | | $ | 186,537 | | | $ | 459,674 | | | $ | 367,311 | |
| | | | | | | |
|
| Employee Compensation and Benefits | |
|
|
|
|
|
|
|
|
Employee Compensation and Benefits (GAAP)
| |
$
|
161,295
| | |
$
|
124,902
| | |
$
|
306,804
| | |
$
|
246,706
| |
|
Less/Plus: Adjustments1 | |
|
(6,298
|
)
| |
|
(6,476
|
)
| |
|
(12,611
|
)
| |
|
(13,006
|
)
|
|
Employee Compensation and Benefits (Adjusted)
| | |
154,997
| | | |
118,426
| | | |
294,193
| | | |
233,700
| |
|
Less/Plus: Adjustments2 | |
|
3,633
|
| |
|
2,834
|
| |
|
6,894
|
| |
|
5,968
|
|
|
Employee Compensation and Benefits (Adjusted Awarded)
| | |
158,630
| | | |
121,260
| | | |
301,087
| | | |
239,668
| |
| | | | | | | |
|
| Non-Compensation Expenses | |
|
|
|
|
|
|
|
|
Non-Compensation Expenses (GAAP)
| |
$
|
27,562
| | |
$
|
26,658
| | |
$
|
52,671
| | |
$
|
52,767
| |
|
Less/Plus: Adjustments
| |
|
—
|
| |
|
—
|
| |
|
—
|
| |
|
—
|
|
|
Non-Compensation Expenses (Adjusted)
| | |
27,562
| | | |
26,658
| | | |
52,671
| | | |
52,767
| |
| | | | | | | |
|
| Operating Income | |
|
|
|
|
|
|
|
|
Operating Income (GAAP)
| |
$
|
53,326
| | |
$
|
34,977
| | |
$
|
100,199
| | |
$
|
67,838
| |
|
Less/Plus: Adjustments3 | |
|
6,298
|
| |
|
6,476
|
| |
|
12,611
|
| |
|
13,006
|
|
|
Operating Income (Adjusted)
| | |
59,624
| | | |
41,453
| | | |
112,810
| | | |
80,844
| |
| | | | | | | |
|
| Other (Income) Expense, net | |
|
|
|
|
|
|
|
|
Other (Income) Expense, net (GAAP)
| | |
($200 |
)
| |
$
|
749
| | | |
($1,706 |
)
| |
$
|
1,657
| |
|
Less/Plus: Adjustments4 | |
|
166
|
| |
|
—
|
| |
|
1,552
|
| |
|
—
|
|
|
Other (Income) Expense, net (Adjusted)
| | |
(34
|
)
| | |
749
| | | |
(154
|
)
| | |
1,657
| |
| | | | | | | |
|
| Provision for Income Taxes | |
|
|
|
|
|
|
|
|
Provision for Income Taxes (GAAP)
| |
$
|
20,169
| | |
$
|
13,352
| | |
$
|
29,304
| | |
$
|
25,894
| |
|
Less/Plus: Adjustments5 | |
|
2,310
|
| |
|
2,548
|
| |
|
13,604
|
| |
|
5,111
|
|
|
Provision for Income Taxes (Adjusted)
| | |
22,479
| | | |
15,900
| | | |
42,908
| | | |
31,005
| |
| | | | | | | |
|
| Net Income | |
|
|
|
|
|
|
|
|
Net Income (GAAP)
| |
$
|
33,357
| | |
$
|
20,876
| | |
$
|
72,601
| | |
$
|
40,287
| |
|
Less/Plus: Adjustments6 | |
|
3,822
|
| |
|
3,928
|
| |
|
(2,545
|
)
| |
|
7,895
|
|
|
Net Income (Adjusted)
| | |
37,179
| | | |
24,804
| | | |
70,056
| | | |
48,182
| |
| |
| |
| |
| |
|
|
Diluted adjusted net income per share of common stock
| |
$
|
0.56
| | |
$
|
0.37
| | |
$
|
1.05
| | |
$
|
0.72
| |
____________________________
Note: Figures may not sum due to rounding.
1. Consists of pre-IPO grant vesting, including grants re-awarded
following forfeiture, if any (($6,298) in Q2 FY18; ($6,476) in Q2 FY17);
($12,611) in YTD FY18; ($13,006) in YTD FY17)).
2. Reflects (i) the expected vesting of grants that were made in prior
year periods that were expensed during the period plus any unvested
grants that were forfeited during the period (($8,676) in Q2 FY18;
($6,213) in Q2 FY17; ($16,063) in YTD FY18; ($12,494) in YTD FY17), and
(ii) estimated normal year-end grants of deferred stock during the
period ($12,309 in Q2 FY18; $9,047 in Q2 FY17; $22,957 in YTD FY18;
$18,462 in YTD FY17).
3. Includes pre-IPO grant vesting, including grants re-awarded following
forfeiture, if any.
4. Includes (i) the net gain from the acquisition of the remaining
outstanding equity stake of the Australia joint venture ($166 in both Q2
FY18 and YTD FY18), and (ii) the reduction of an earnout liability in
YTD FY18 of ($1,386).
5. Includes (i) the tax impact as a result of the adoption of ASU No.
2016-09, Compensation - Stock Compensation which resulted in a decrease
to the provision for income taxes due to the acceleration of vesting of
share awards on February 14, 2017 in YTD FY18, and (ii) the tax impact
of described adjustments.
6. Consists of the adjustments described above net of the tax impact of
described adjustments.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171024006683/en/
Houlihan Lokey, Inc.
Investor Relations:
212-331-8225
IR@HL.com
or
Public
Relations:
212-331-8223
PR@HL.com
Source: Houlihan Lokey, Inc.