– Record Second Quarter Fiscal 2019 Revenues of $275 million–
–Second Quarter Fiscal 2019 Diluted EPS of $0.61–
–Adjusted Second Quarter Fiscal 2019 Diluted EPS of
$0.70–
–Announces Dividend of $0.27 per Share for Third
Quarter Fiscal 2019 –
LOS ANGELES & NEW YORK--(BUSINESS WIRE)--
Houlihan Lokey, Inc. (NYSE:HLI) (“Houlihan Lokey”, or the “Company”)
today reported record financial results for its second quarter ended
September 30, 2018. For the second quarter, revenues increased 14% to
$275 million, compared with $242 million for the second quarter ended
September 30, 2017.
Net income increased 20% to $40 million, or $0.61 per diluted share, for
the second quarter ended September 30, 2018, compared with $33 million,
or $0.50 per diluted share, for the second quarter ended September 30,
2017. Adjusted net income for the second quarter ended September 30,
2018 grew 24% to $46 million, or $0.70 per diluted share, compared with
$37 million, or $0.56 per diluted share, for the second quarter ended
September 30, 2017.
"We are pleased to report that the firm achieved its highest quarterly
revenues ever, with good results across all three business segments. As
the global equity and debt markets have recently experienced increased
volatility, we increasingly see a bifurcated business environment. Most
of our client base continues to exhibit a healthy confidence in their
financial results while selected pockets of distress are resulting in
stable restructuring activity. Currently, this is a positive environment
for our balanced business model, allowing the firm to achieve solid
results in both our corporate finance and financial advisory business
segments as well as our financial restructuring business segment,"
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, |
| | 2018 |
|
| 2017 | | | 2018 |
|
| 2017 |
| Revenues | | | $ | 274,992 | | | | $ | 242,183 | | | | $ | 494,994 | | | | $ | 459,674 | |
| Operating expenses: | | | | | | | | | | | | |
|
Employee compensation and benefits
| | | |
175,321
| | | | |
161,295
| | | | |
314,501
| | | | |
306,804
| |
|
Non-compensation expenses
| | |
|
43,496
|
| | |
|
27,562
|
| | |
|
84,188
|
| | |
|
52,671
|
|
|
Operating income
| | | |
56,175
| | | | |
53,326
| | | | |
96,305
| | | | |
100,199
| |
|
Other (income) expense, net
| | |
|
(1,007
|
)
| | |
|
(200
|
)
| | |
|
(2,613
|
)
| | |
|
(1,706
|
)
|
|
Income before provision for income taxes
| | | |
57,182
| | | | |
53,526
| | | | |
98,918
| | | | |
101,905
| |
|
Provision for income taxes
| | |
|
17,063
|
| | |
|
20,169
|
| | |
|
29,115
|
| | |
|
29,304
|
|
| Net income attributable to Houlihan Lokey, Inc. | | | $ | 40,119 | | | | $ | 33,357 | | | | $ | 69,803 | | | | $ | 72,601 | |
| | | | | | | | | | | |
|
|
Diluted net income per share of common stock
| | |
$
|
0.61
| | | |
$
|
0.50
| | | |
$
|
1.06
| | | |
$
|
1.09
| |
| | | | | | | | | | | | | | | | | | | |
|
Revenues
For the second quarter ended September 30, 2018, revenues increased to
$275 million, compared with $242 million for the second quarter ended
September 30, 2017. For the quarter, Corporate Finance ("CF") revenues
were relatively flat, Financial Restructuring ("FR") revenues increased
46%, and Financial Advisory Services ("FAS") revenues increased 10% when
compared with the second quarter ended September 30, 2017. Revenues for
the quarter ended September 30, 2018 included $5.2 million in expense
reimbursements as a result of the adoption of ASC 606 effective April 1,
2018 that now clarifies that reimbursements of out-of-pocket expenses
should be included in revenues, whereas prior to adoption we had been
reporting non-compensation expenses net of such reimbursements.
Expenses
The Company’s employee compensation and benefits and non-compensation
expenses during the periods presented and described below are on a GAAP
and an adjusted basis, as appropriate.
|
|
| |
(Unaudited and in thousands)
|
| | | Three Months Ended September 30, |
| | | U.S. GAAP |
|
| Adjusted (Non-GAAP)* |
| | |
| 2018 |
|
|
|
| 2017 |
| | |
| 2018 |
|
|
|
| 2017 |
|
| Expenses: | | | | | | | | | | | | |
|
Employee compensation and benefits
| | |
$
|
175,321
| | | |
$
|
161,295
| | | |
$
|
169,119
| | | |
$
|
154,997
| |
| % of Revenues | | | | 63.8 | % | | | | 66.6 | % | | | | 61.5 | % | | | | 64.0 | % |
|
Non-compensation expenses
| | |
$
|
43,496
| | | |
$
|
27,562
| | | |
$
|
41,286
| | | |
$
|
27,562
| |
| % of Revenues | | | | 15.8 | % | | | | 11.4 | % | | | | 15.0 | % | | | | 11.4 | % |
|
Provision for Income Taxes
| | |
$
|
17,063
| | | |
$
|
20,169
| | | |
$
|
19,573
| | | |
$
|
22,479
| |
| % of Pre-Tax Income | | | | 29.8 | % | | | | 37.7 | % | | | | 29.8 | % | | | | 37.7 | % |
| | | | | | | | | | | |
|
|
|
| |
(Unaudited and in thousands)
|
| | | Six Months Ended September 30, |
| | | U.S. GAAP |
|
| Adjusted (Non-GAAP)* |
| | |
| 2018 |
|
|
|
| 2017 |
| | |
| 2018 |
|
|
|
| 2017 |
|
| Expenses: | | | | | | | | | | | | |
|
Employee compensation and benefits
| | |
$
|
314,501
| | | |
$
|
306,804
| | | |
$
|
302,224
| | | |
$
|
294,193
| |
| % of Revenues | | | | 63.5 | % | | | | 66.7 | % | | | | 61.1 | % | | | | 64.0 | % |
|
Non-compensation expenses
| | |
$
|
84,188
| | | |
$
|
52,671
| | | |
$
|
78,232
| | | |
$
|
52,671
| |
| % of Revenues | | | | 17.0 | % | | | | 11.5 | % | | | | 15.8 | % | | | | 11.5 | % |
|
Provision for Income Taxes
| | |
$
|
29,115
| | | |
$
|
29,304
| | | |
$
|
34,254
| | | |
$
|
42,908
| |
| % of Pre-Tax Income | | | | 29.4 | % | | | | 28.8 | % | | | | 29.4 | % | | | | 38.0 | % |
| | | | | | | | | | | | | | | | | | | |
|
*Note: The 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.
Employee compensation and benefits expenses were $175 million for the
second quarter ended September 30, 2018, compared with $161 million for
the second quarter ended September 30, 2017. The increase in employee
compensation and benefits expenses was primarily a result of higher fee
revenues when compared with the same quarter last year.
Adjusted employee compensation and benefits expenses were $169 million
for the second quarter ended September 30, 2018, compared with $155
million for the second quarter ended September 30, 2017. The increase in
adjusted employee compensation and benefits expenses was primarily a
result of an increase in fee revenues for the quarter when compared with
the same quarter last year. This resulted in an adjusted compensation
ratio of 61.5% for the second quarter ended September 30, 2018, versus
64.0% for the second quarter ended September 30, 2017.
Non-compensation expenses were $43 million for the second quarter ended
September 30, 2018 and $28 million for the second quarter ended
September 30, 2017. The increase in non-compensation expenses was
primarily driven by (i) the recognition of reimbursements of
out-of-pocket expenses as revenues, (ii) higher rent expense, (iii)
higher professional fees, and (iv) general increases in travel, meals,
and entertainment and other operating expenses.
Adjusted non-compensation expenses were $41 million for the second
quarter ended September 30, 2018 and $28 million for the second quarter
ended September 30, 2017. The increase in adjusted non-compensation
expenses was primarily driven by (i) the recognition of reimbursements
of out-of-pocket expenses as revenues, (ii) higher rent expense, (iii)
higher professional fees, and (iv) general increases in travel, meals,
and entertainment and other operating expenses.
The provision for income taxes was $17 million, representing an
effective tax rate of 29.8% for the second quarter ended September 30,
2018, compared with $20 million, representing an effective tax rate of
37.7% for the second quarter ended September 30, 2017. The decrease in
the effective tax rate was a result of a lower statutory federal tax
rate per the Tax Cuts and Jobs Acts (the "Tax Act") that was enacted
into law in December 2017.
The adjusted provision for income taxes was $20 million, representing an
adjusted effective tax rate of 29.8% for the second quarter ended
September 30, 2018, compared with $22 million, representing an adjusted
effective tax rate of 37.7% for the second quarter ended September 30,
2017. The decrease in the adjusted effective tax rate was a result of a
lower statutory federal tax rate per the Tax Act.
Segment Reporting for the Second Quarter
Corporate Finance revenues were $146 million for both the second quarter
of September 30, 2018 and September 30, 2017. The increase in revenues
due to the recognition of reimbursements of out-of-pocket expenses as
revenues was offset by a slight decrease in the number of transactions
that closed during the quarter compared to the same period last year. CF
closed 62 transactions in the second quarter ended September 30, 2018,
versus 64 transactions in the second quarter ended September 30, 2017,
and CF's average transaction fee for the quarter was slightly higher
when compared with the same period last year.
|
|
| |
|
| |
(Unaudited and $ in thousands)
|
| | | Three Months Ended
September 30, | | | Six Months Ended
September 30, |
| | | 2018 |
|
| 2017 | | | 2018 |
|
| 2017 |
| Corporate Finance | | | | | | | | | | | | |
|
Revenues
| | |
$
|
146,057
| | | |
$
|
145,821
| | | |
$
|
278,928
| | | |
$
|
269,820
|
|
# of MDs
| | | |
106
| | | | |
94
| | | | |
106
| | | | |
94
|
|
# of Closed Transactions
| | | |
62
| | | | |
64
| | | | |
131
| | | | |
116
|
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
|
For the second quarter ended September 30, 2018, Financial Restructuring
revenues increased 46% to $93 million, compared with $63 million in the
second quarter ended September 30, 2017. FR closed 20 transactions in
the second quarter ended September 30, 2018, versus 14 transactions in
the second quarter ended September 30, 2017, and FR's average
transaction fee for the quarter was higher when compared with the same
period last year.
|
|
| |
|
| |
(Unaudited and $ in thousands)
|
| | | Three Months Ended
September 30, | | | Six Months Ended
September 30, |
| | | 2018 |
|
| 2017 | | | 2018 |
|
| 2017 |
| Financial Restructuring | | | | | | | | | | | | |
|
Revenues
| | |
$
|
92,684
| | | |
$
|
63,281
| | | |
$
|
143,160
| | | |
$
|
122,310
|
|
# of MDs
| | | |
45
| | | | |
40
| | | | |
45
| | | | |
40
|
|
# of Closed Transactions
| | | |
20
| | | | |
14
| | | | |
33
| | | | |
32
|
| | | | | | | | | | | | | | |
|
For the second quarter ended September 30, 2018, Financial Advisory
Services revenues increased 10% to $36 million, compared with $33
million in the second quarter ended September 30, 2017. The growth in
revenues was primarily a result of the recognition of reimbursements of
out-of-pocket expenses as revenues.
|
|
| |
|
| |
(Unaudited and $ in thousands)
|
| | | Three Months Ended
September 30, | | | Six Months Ended
September 30, |
| | | 2018 |
|
| 2017 | | | 2018 |
|
| 2017 |
| Financial Advisory Services | | | | | | | | | | | | |
|
Revenues
| | |
$
|
36,251
| | | |
$
|
33,082
| | | |
$
|
72,906
| | | |
$
|
67,545
|
|
# of MDs
| | | |
35
| | | | |
40
| | | | |
35
| | | | |
40
|
|
# of Fee Events1 | | | |
469
| | | | |
532
| | | | |
771
| | | | |
842
|
| | | | | | | | | | | | | | |
|
1. |
| 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 $0.27 per share of Class A and Class B common stock. The
dividend will be payable on December 14, 2018 to stockholders of record
as of the close of business on December 3, 2018.
For the second quarter ended September 30, 2018, the Company repurchased
413,141 shares of its common stock in open market purchases at an
average price of $48.38 per share, for a total cost of $20 million.
As of September 30, 2018, the Company had $254 million of unrestricted
cash and cash equivalents and investment securities, and loans payable
and other liabilities aggregating $33 million.
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 25, 2018, to discuss its second
quarter fiscal 2019 results. The number to call is 1-888-599-8686
(domestic) or 1-323-994-2093 (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 25, 2018
through November 1, 2018, by dialing 1-844-512-2921 (domestic) or
1-412-317-6671 (international) and entering the passcode 3699015#. 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, adjusted operating
expenses and adjusted provision for income taxes 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, adjusted operating expenses and
adjusted provision for income taxes 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.
Adjusted net income as calculated by the Company is 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 net income, 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,
2018 | | | March 31,
2018 |
| | |
(unaudited)
| | |
(audited)
|
| Assets: | | | | | | |
|
Cash and cash equivalents
| | |
$
|
227,599
| | | |
$
|
206,723
| |
|
Restricted cash
| | | |
366
| | | | |
93,500
| |
|
Investment securities
| | | |
26,565
| | | | |
209,319
| |
|
Accounts receivable, net of allowance for doubtful accounts
| | | |
66,010
| | | | |
77,259
| |
|
Unbilled work in process
| | | |
31,841
| | | | |
45,862
| |
|
Receivable from affiliates
| | | |
7,870
| | | | |
8,732
| |
|
Property and equipment – net of accumulated depreciation
| | | |
31,699
| | | | |
32,146
| |
| Goodwill and other intangibles, net
| | | |
799,322
| | | | |
723,310
| |
|
Other assets
| | |
|
29,134
|
| | |
|
21,990
|
|
| Total assets | | |
| 1,220,406 |
| | |
| 1,418,841 |
|
| Liabilities and Stockholders' Equity | | | | | | |
| Liabilities: | | | | | | |
|
Accrued salaries and bonuses
| | | |
268,548
| | | | |
377,901
| |
|
Accounts payable and accrued expenses
| | | |
41,183
| | | | |
40,772
| |
|
Deferred income
| | | |
30,946
| | | | |
3,620
| |
|
Income taxes payable
| | | |
7,941
| | | | |
9,967
| |
|
Deferred income taxes
| | | |
10,148
| | | | |
22,180
| |
|
Forward purchase liability
| | | |
—
| | | | |
93,500
| |
|
Loans payable to former shareholders
| | | |
2,642
| | | | |
3,036
| |
|
Loan payable to non-affiliate
| | | |
8,899
| | | | |
8,825
| |
|
Other liabilities
| | |
|
21,793
|
| | |
|
6,227
|
|
| Total liabilities | | |
| 392,100 |
| | |
| 566,028 |
|
| | | | | |
|
| Stockholders' equity: | | | | | | |
|
Class A common stock, $0.001 par value. Authorized 1,000,000,000
shares; issued and outstanding 34,696,005 and 30,604,405 shares as
of September 30 and March 31, 2018, respectively
| | | |
35
| | | | |
31
| |
|
Class B common stock, $0.001 par value. Authorized 1,000,000,000
shares; issued and outstanding 31,063,445 and 37,187,932 shares as
of September 30 and March 31, 2018, respectively
| | | |
31
| | | | |
37
| |
| Treasury stock, at cost; 0 and 2,000,000 shares as of September 30
and March 31, 2018, respectively
| | | |
—
| | | | |
(93,500
|
)
|
|
Additional paid-in capital
| | | |
636,150
| | | | |
753,077
| |
|
Retained earnings
| | | |
222,324
| | | | |
207,124
| |
|
Accumulated other comprehensive loss
| | |
|
(30,234
|
)
| | |
|
(13,956
|
)
|
| Total stockholders' equity | | |
| 828,306 |
| | |
| 852,813 |
|
| Total liabilities and stockholders' equity | | |
| 1,220,406 |
| | |
| 1,418,841 |
|
| | | | | | | | | |
|
|
|
| |
|
| |
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, |
| | | 2018 |
|
| 2017 | | | 2018 |
|
| 2017 |
| Revenues | | | $ | 274,992 | | | | $ | 242,183 | | | | $ | 494,994 | | | | $ | 459,674 | |
| | | | | | | | | | | |
|
| Operating expenses: | | | | | | | | | | | | |
|
Employee compensation and benefits
| | | |
175,321
| | | | |
161,295
| | | | |
314,501
| | | | |
306,804
| |
|
Travel, meals, and entertainment
| | | |
10,111
| | | | |
6,229
| | | | |
19,697
| | | | |
11,907
| |
|
Rent
| | | |
10,437
| | | | |
6,959
| | | | |
18,625
| | | | |
14,149
| |
|
Depreciation and amortization
| | | |
3,706
| | | | |
2,175
| | | | |
7,174
| | | | |
4,149
| |
|
Information technology and communications
| | | |
4,709
| | | | |
4,966
| | | | |
10,298
| | | | |
9,242
| |
|
Professional fees
| | | |
5,784
| | | | |
3,371
| | | | |
12,061
| | | | |
5,758
| |
|
Other operating expenses, net
| | |
|
8,749
|
| | |
|
3,862
|
| | |
|
16,333
|
| | |
|
7,466
|
|
|
Total operating expenses
| | | |
218,817
| | | | |
188,857
| | | | |
398,689
| | | | |
359,475
| |
| | | | | | | | | | | |
|
|
Operating income
| | | |
56,175
| | | | |
53,326
| | | | |
96,305
| | | | |
100,199
| |
| | | | | | | | | | | |
|
|
Other (income) expense, net
| | |
|
(1,007
|
)
| | |
|
(200
|
)
| | |
|
(2,613
|
)
| | |
|
(1,706
|
)
|
|
Income before provision for income taxes
| | | |
57,182
| | | | |
53,526
| | | | |
98,918
| | | | |
101,905
| |
| | | | | | | | | | | |
|
|
Provision for income taxes
| | |
|
17,063
|
| | |
|
20,169
|
| | |
|
29,115
|
| | |
|
29,304
|
|
| Net income attributable to Houlihan Lokey, Inc. | | | $ | 40,119 | | | | $ | 33,357 | | | | $ | 69,803 | | | | $ | 72,601 | |
| | | | | | | | | | | |
|
|
Weighted average shares of common stock outstanding:
| | | | | | | | | | | | |
|
Basic
| | | |
62,258,919
| | | | |
62,117,998
| | | | |
62,620,017
| | | | |
62,230,177
| |
|
Fully Diluted
| | | |
66,045,921
| | | | |
66,907,890
| | | | |
66,099,770
| | | | |
66,640,539
| |
|
Net income per share of common stock:
| | | | | | | | | | | | |
|
Basic
| | |
$
|
0.64
| | | |
$
|
0.54
| | | |
$
|
1.11
| | | |
$
|
1.17
| |
|
Fully Diluted
| | |
$
|
0.61
| | | |
$
|
0.50
| | | |
$
|
1.06
| | | |
$
|
1.09
| |
| | | | | | | | | | | | | | | | | | | |
|
|
|
| |
|
| |
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, |
| | | 2018 |
|
| 2017 | | | 2018 |
|
| 2017 |
| Revenues | | | $ | 274,992 | | | | $ | 242,183 | | | | $ | 494,994 | | | | $ | 459,674 | |
| | | | | | | | | | | |
|
| Employee Compensation and Benefits |
|
|
|
|
|
| | |
|
|
|
|
|
Employee Compensation and Benefits (GAAP)
| | |
$
|
175,321
| | | |
$
|
161,295
| | | |
$
|
314,501
| | | |
$
|
306,804
| |
|
Less/Plus: Adjustments1 | | |
|
(6,202
|
)
| | |
|
(6,298
|
)
| | |
|
(12,278
|
)
| | |
|
(12,611
|
)
|
|
Employee Compensation and Benefits (Adjusted)
| | | |
169,119
| | | | |
154,997
| | | | |
302,224
| | | | |
294,193
| |
| | | | | | | | | | | |
|
| Non-Compensation Expenses |
|
|
|
|
|
| | |
|
|
|
|
|
Non-Compensation Expenses (GAAP)
| | |
$
|
43,496
| | | |
$
|
27,562
| | | |
$
|
84,188
| | | |
$
|
52,671
| |
|
Less/Plus: Adjustments2 | | |
|
(2,209
|
)
| | |
|
—
|
| | |
|
(5,955
|
)
| | |
|
—
|
|
|
Non-Compensation Expenses (Adjusted)
| | | |
41,286
| | | | |
27,562
| | | | |
78,232
| | | | |
52,671
| |
| | | | | | | | | | | |
|
| Operating Income |
|
|
|
|
|
| | |
|
|
|
|
|
Operating Income (GAAP)
| | |
$
|
56,175
| | | |
$
|
53,326
| | | |
$
|
96,305
| | | |
$
|
100,199
| |
|
Less/Plus: Adjustments3 | | |
|
8,411
|
| | |
|
6,298
|
| | |
|
18,233
|
| | |
|
12,611
|
|
|
Operating Income (Adjusted)
| | | |
64,586
| | | | |
59,624
| | | | |
114,538
| | | | |
112,810
| |
| | | | | | | | | | | |
|
| Other (Income) Expenses, net |
|
|
|
|
|
| | |
|
|
|
|
|
Other (Income) Expenses, net (GAAP)
| | | |
($1,007 |
)
| | | |
($200 |
)
| | | |
($2,613 |
)
| | | |
($1,706 |
)
|
|
Less/Plus: Adjustments4 | | |
|
—
|
| | |
|
166
|
| | |
|
719
|
| | |
|
1,552
|
|
|
Other (Income) Expenses, net (Adjusted)
| | | |
(1,007
|
)
| | | |
(34
|
)
| | | |
(1,894
|
)
| | | |
(154
|
)
|
| | | | | | | | | | | |
|
| Provision for Income Taxes |
|
|
|
|
|
| | |
|
|
|
|
|
Provision for Income Taxes (GAAP)
| | |
$
|
17,063
| | | |
$
|
20,169
| | | |
$
|
29,115
| | | |
$
|
29,304
| |
|
Less/Plus: Adjustments5 | | |
|
2,510
|
| | |
|
2,310
|
| | |
|
5,139
|
| | |
|
13,604
|
|
|
Provision for Income Taxes (Adjusted)
| | | |
19,573
| | | | |
22,479
| | | | |
34,254
| | | | |
42,908
| |
| | | | | | | | | | | |
|
| Net Income |
|
|
|
|
|
| | |
|
|
|
|
|
Net Income (GAAP)
| | |
$
|
40,119
| | | |
$
|
33,357
| | | |
$
|
69,803
| | | |
$
|
72,601
| |
|
Less/Plus: Adjustments6 | | |
|
5,902
|
| | |
|
3,822
|
| | |
|
12,375
|
| | |
|
(2,545
|
)
|
|
Net Income (Adjusted)
| | | |
46,021
| | | | |
37,179
| | | | |
82,178
| | | | |
70,056
| |
| | |
| | |
| | |
| | |
|
|
Diluted adjusted net income per share of common stock
| | |
$
|
0.70
| | | |
$
|
0.56
| | | |
$
|
1.24
| | | |
$
|
1.05
| |
| | | | | | | | | | | | | | | |
|
|
____________________________
|
|
Note: Figures may not sum due to rounding.
|
|
1.
|
|
Consists of pre-IPO grant vesting, including grants re-awarded
following forfeiture, if any.
|
|
2.
| |
Includes costs associated with Houlihan Lokey's secondary offering
of stock ($0 in Q2 FY19; ($498) in YTD Q2 FY19), completed
acquisitions ($0 in Q2 FY19; ($1,929) in YTD Q2 FY19),
acquisition-related amortization (($1,589) in Q2 FY19; ($2,910) in
YTD Q2 FY19), and HL Finance setup costs (($619) in Q2 FY19 and YTD
Q2 FY19).
|
|
3.
| |
Includes adjustments from (1) and (2) above.
|
|
4.
| |
Includes Australia related transaction expenses ($166 in Q2 FY18 and
YTD Q2 FY18) and the reduction of an earnout liability ($719 in YTD
Q2 FY19; $1,386 in YTD Q2 FY18).
|
|
5.
| |
Includes adjustments relating to the following: (i) the tax impact
as a result of the adoption of ASU No. 2016-09, Compensation - Stock
Compensation due to the acceleration of vesting of share awards
($9,406 in YTD Q2 FY18) and (ii) the tax impact, using the adjusted
effective tax rate, of the adjustments described in footnotes 1, 2,
and 4 ($2,510 in Q2 FY19; $2,310 in Q2 FY18; $5,139 in YTD Q2 FY19;
$4,198 in YTD Q2 FY18).
|
|
6.
| |
Consists of the adjustments described above net of the tax impact of
described adjustments.
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20181025005866/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.