Record Second Quarter and First Half Revenues
-
Second quarter revenues of $131.7 million, up 5% from the second
quarter of 2015; first half revenues of $258.1 million, up 15% from
the same period of 2015
-
GAAP net income of $0.29 per share (diluted) for the second quarter
and $0.60 per share (diluted) for the first half of 2016; Adjusted net
income of $0.35 per share (diluted) and $0.69 per share (diluted) for
the second quarter and first half of 2016, respectively
-
Board of Directors approved 7% increase in quarterly dividend to $0.32
per share
-
Strong balance sheet with $176.1 million of cash and short-term
investments and no debt at quarter-end
-
Continued to execute on organic growth strategy
-
Recruited two Managing Directors in the U.S. to enhance industry
expertise in oil & gas and diversified industrials
-
Announced one Managing Director hire in Frankfurt to advise
clients in Europe’s German speaking countries
NEW YORK--(BUSINESS WIRE)--
Moelis & Company (“we” or the “Firm”) (NYSE:MC) today reported financial
results for the second quarter ended June 30, 2016. The Firm’s total
revenues for the second quarter were a record $131.7 million,
representing an increase of 5% from the prior year period. The Firm
reported second quarter 2016 GAAP net income of $26.2 million, or $0.29
per share (diluted). On an Adjusted basis, the Firm reported net income
of $19.8 million or $0.35 per share (diluted) for the second quarter of
2016, as compared with $20.6 million or $0.37 per share (diluted) in the
prior year period.
First half 2016 total revenues were $258.1 million as compared with
$225.3 million in the first half of 2015, representing our largest first
half of revenues on record and an increase of 15% from the prior year
period. GAAP net income for the period was $51.8 million, or $0.60 per
share (diluted). On an Adjusted basis, the Firm reported net income of
$39.5 million or $0.69 per share (diluted) for the first half of 2016,
as compared with $36.0 million or $0.65 per share (diluted) in the prior
year period.
“Our record second quarter revenues represent the fourth consecutive
quarter of year over year revenue growth and demonstrate the strength of
our model against the backdrop of a slower global M&A environment. Our
M&A-related activity was strong during the quarter, and our
restructuring activity continues to grow, contributing to a solid
pipeline of clients who are evaluating strategic alternatives,” said Ken
Moelis, Chairman and Chief Executive Officer.
“Today we announced a 7% increase in our quarterly dividend to $0.32 per
share, representing the third increase in our regular dividend from the
time of our IPO. We also invested in the firm with the recent
announcements of three new MD hires. Our model is durable, our advisory
practice is diverse, and our balance sheet is strong. As a result, we
remain confident in our ability to grow the franchise while continuing
to distribute earnings to our shareholders.”
The Firm’s revenues and net income can fluctuate materially depending
on the number, size and timing of completed transactions on which it
advised as well as other factors.Accordingly, financial results
in any particular quarter may not be representative of future results
over a longer period of time.
Currently 38% of the operating partnership (Moelis & Company Group
LP) is owned by the corporate partner (Moelis & Company) and is subject
to corporate U.S. federal and state income tax. The remaining 62% is
owned by other partners of Moelis & Company Group LP and is primarily
subject to tax at the partner level (except for certain state and local
and foreign income taxes). The Adjusted results included herein remove
the impact of compensation expenses specifically related to the Firm’s
IPO awards, and apply the corporate tax rate to all earnings under the
assumption that all outstanding Class A partnership units of Moelis &
Company Group LP have been exchanged into Class A common stock of Moelis
& Company.
The Firm has modified the description of its unaudited non-generally
accepted accounting principles (“non-GAAP”) measure presented in its
quarterly earnings release and other supplementary information from
“Adjusted Pro Forma” to “Adjusted.” This modification impacted the
descriptions only. The amounts and principles used to derive the
Adjusted data have been consistently applied.We believe the
Adjusted results, when presented together with comparable GAAP results,
are useful to investors to compare our performance across periods and to
better understand our operating results. A reconciliation between our
GAAP results and our Adjusted results is presented in the Appendix to
this press release.
GAAP and Adjusted (non-GAAP) Selected
Financial Data (Unaudited) |
|
| |
| |
| | U.S. GAAP | | Adjusted (non-GAAP)* |
| | Three Months Ended June 30, |
| ($ in thousands except per share data) | | 2016 |
| 2015 |
| 2016 vs. 2015 Variance | | 2016 |
| 2015 |
| 2016 vs. 2015 Variance |
| | | | | | | | | | | |
|
|
Revenues
| |
$
|
131,725
| |
$
|
125,873
| |
5
|
%
| |
$
|
131,725
| |
$
|
125,873
| |
5
|
%
|
| Income (loss) before income taxes | | |
30,926
| | |
32,934
| |
-6
|
%
| | |
32,788
| | |
34,321
| |
-4
|
%
|
|
Provision for income taxes
| |
|
4,721
| |
|
6,079
| |
-22
|
%
| |
|
12,951
| |
|
13,729
| |
-6
|
%
|
| Net income (loss) | | |
26,205
| | |
26,855
| |
-2
|
%
| | |
19,837
| | |
20,592
| |
-4
|
%
|
| | | | | | | | | | | |
|
|
Net income (loss) attributable to noncontrolling interests
| |
|
19,312
| |
|
19,724
| |
-2
|
%
| |
|
-
| |
|
-
| |
N/M
|
|
|
Net income (loss) attributable to Moelis & Company | |
$
|
6,893
| |
$
|
7,131
| |
-3
|
%
| |
$
|
19,837
| |
$
|
20,592
| |
-4
|
%
|
| | | | | | | | | | | |
|
|
Diluted earnings per share
| |
$
|
0.29
| |
$
|
0.34
| |
-15
|
%
| |
$
|
0.35
| |
$
|
0.37
| |
-5
|
%
|
|
| | | | | | | | | | | | |
|
N/M = not meaningful
| | | | | | | | | | | | |
|
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
| | U.S. GAAP | | Adjusted (non-GAAP)* |
| | Six Months Ended June 30, |
| ($ in thousands except per share data) | | 2016 | | 2015 | | 2016 vs. 2015 Variance | | 2016 | | 2015 | | 2016 vs. 2015 Variance |
| | | | | | | | | | | |
|
|
Revenues
| |
$
|
258,089
| |
$
|
225,285
| |
15
|
%
| |
$
|
258,089
| |
$
|
225,285
| |
15
|
%
|
| Income (loss) before income taxes | | |
61,989
| | |
57,195
| |
8
|
%
| | |
65,225
| | |
60,042
| |
9
|
%
|
|
Provision for income taxes
| |
|
10,165
| |
|
10,379
| |
-2
|
%
| |
|
25,764
| |
|
24,017
| |
7
|
%
|
| Net income (loss) | | |
51,824
| | |
46,816
| |
11
|
%
| | |
39,461
| | |
36,025
| |
10
|
%
|
| | | | | | | | | | | |
|
|
Net income (loss) attributable to noncontrolling interests
| |
|
37,961
| |
|
34,349
| |
11
|
%
| |
|
-
| |
|
-
| |
N/M
|
|
|
Net income (loss) attributable to Moelis & Company | |
$
|
13,863
| |
$
|
12,467
| |
11
|
%
| |
$
|
39,461
| |
$
|
36,025
| |
10
|
%
|
| | | | | | | | | | | |
|
|
Diluted earnings per share
| |
$
|
0.60
| |
$
|
0.59
| |
2
|
%
| |
$
|
0.69
| |
$
|
0.65
| |
6
|
%
|
|
| | | | | | | | | | | | |
|
N/M = not meaningful
| | | | | | | | | | | | |
|
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)
|
Revenues
For the second quarter of 2016, revenues were $131.7 million as compared
with $125.9 million in the second quarter of 2015, representing an
increase of 5%. This compares favorably with a 23% decrease in the
number of global completed M&A transactions in the same period1.
The increase in revenues was primarily driven by strong M&A activity,
including higher average fees earned per completed M&A transaction.
For the first half of 2016, revenues were $258.1 million as compared
with $225.3 million in the same period in 2015, representing an increase
of 15%. We advised 184 total clients in the first half of 2016 as
compared with 168 clients during the same period in the prior year.
We continued to execute on our strategy of profitable expansion. Since
our last earnings release, we hired two Managing Directors in the U.S.
who will strengthen our industry expertise in oil & gas and diversified
industrials. We also strengthened our regional coverage with a senior
hire in Frankfurt who will provide financial and strategic advice to
clients across the German-speaking region and the rest of Europe. These
individuals will join the Firm in the third quarter of 2016.
1 Source: Thomson Financial as of July 6, 2016; includes all
transactions greater than $100 million in value
Expenses
The following tables set forth information relating to the Firm’s
operating expenses, which are reported net of client expense
reimbursements.
|
| U.S. GAAP |
| Adjusted (non-GAAP)* |
| | Three Months Ended June 30, |
| ($ in thousands) | | 2016 |
| 2015 |
| 2016 vs. 2015
Variance | | 2016 |
| 2015 |
| 2016 vs. 2015
Variance |
| | | | | | | | | | | |
|
| Expenses | | | | | | | | | | | | |
|
Compensation and benefits
| |
$
|
78,198
| |
$
|
69,663
| |
12%
| |
$
|
76,336
| |
$
|
68,276
| |
12%
|
| % of revenues | | |
59%
| | |
55%
| | | | |
58%
| | |
54%
| | |
|
Non-compensation expenses
| |
$
|
22,968
| |
$
|
23,438
| |
-2%
| |
$
|
22,968
| |
$
|
23,438
| |
-2%
|
| % of revenues | | |
17%
| | |
19%
| | | | |
17%
| | |
19%
| | |
|
Total operating expenses
| |
$
|
101,166
| |
$
|
93,101
| |
9%
| |
$
|
99,304
| |
$
|
91,714
| |
8%
|
| % of revenues | | |
77%
| | |
74%
| | | | |
75%
| | |
73%
| | |
| | | | | | | | | | | |
|
|
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)
|
|
|
|
|
|
| U.S. GAAP |
| Adjusted (non-GAAP)* |
| | Six Months Ended June 30, |
| ($ in thousands) | | 2016 |
| 2015 |
| 2016 vs. 2015
Variance | | 2016 |
| 2015 |
| 2016 vs. 2015
Variance |
| | | | | | | | | | | |
|
| Expenses | | | | | | | | | | | | |
|
Compensation and benefits
| |
$
|
152,866
| |
$
|
125,056
| |
22%
| |
$
|
149,630
| |
$
|
122,209
| |
22%
|
| % of revenues | | |
59%
| | |
56%
| | | | |
58%
| | |
54%
| | |
|
Non-compensation expenses
| |
$
|
45,773
| |
$
|
46,076
| |
-1%
| |
$
|
45,773
| |
$
|
46,076
| |
-1%
|
| % of revenues | | |
18%
| | |
20%
| | | | |
18%
| | |
20%
| | |
|
Total operating expenses
| |
$
|
198,639
| |
$
|
171,132
| |
16%
| |
$
|
195,403
| |
$
|
168,285
| |
16%
|
| % of revenues | | |
77%
| | |
76%
| | | | |
76%
| | |
75%
| | |
| | | | | | | | | | | |
|
|
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)
|
|
|
Total operating expenses on a GAAP basis were $101.2 million for the
second quarter and $198.6 million for the first half of 2016. On an
Adjusted basis, operating expenses were $99.3 million for the second
quarter of 2016 as compared with $91.7 million for the second quarter of
2015, and $195.4 million for the first half as compared with $168.3
million in the prior year period. The increase in operating expenses in
2016 resulted from increased compensation and benefits expenses.
Compensation and benefits expenses were $78.2 million on a GAAP basis in
the second quarter and $152.9 million for the first half of 2016.
Adjusted compensation and benefits expenses (which exclude the
amortization of IPO awards for both 2015 and 2016) were $76.3 million
and $149.6 million for the second quarter and first half of 2016,
respectively, as compared with $68.3 million and $122.2 million for the
second quarter and first half of 2015, respectively. The Adjusted
compensation and benefits ratio increased from 54% in the second quarter
and first half of 2015 to 58% of revenues in the current year periods.
The increased compensation ratio reflects an additional tranche of
equity amortization expense arising from the 2015 equity incentive
grants made in early 2016 as well as modified vesting terms associated
with that equity. We remain committed to our targeted long-term
compensation ratio level of 58% of revenues.
Non-compensation expenses on a GAAP and Adjusted basis were $23.0
million for the second quarter of 2016 as compared with $23.4 million
for the second quarter of 2015. Our non-compensation expense ratio
decreased to 17% from 19% in the same period of the prior year. For the
first half of 2016, GAAP and Adjusted non-compensation expenses were
$45.8 million as compared with $46.1 million for the same period of the
prior year, and the non-compensation expense ratio decreased to 18% from
20%, driven by increased revenues.
Provision for Income Taxes
The corporate partner (Moelis & Company) currently owns 38% of the
operating partnership (Moelis & Company Group LP) and is subject to
corporate U.S. federal and state income tax. Income on the remaining 62%
continues to be subject to New York City unincorporated business tax and
certain foreign income taxes and is accounted for at the partner level
through the non-controlling interests line item. For Adjusted purposes,
we have assumed all outstanding Class A partnership units of Moelis &
Company Group LP to have been exchanged into Class A common stock of
Moelis & Company such that 100% of the Firm’s second quarter 2016 income
was taxed at our corporate effective tax rate of 39.5%, versus 40.0% in
the prior year period.
Capital Management and Balance Sheet
Moelis & Company continues to maintain a strong financial position, and
as of June 30, 2016, we held cash and short term investments of $176.1
million and had no debt or goodwill on our balance sheet.
The Board of Directors of Moelis & Company has declared a quarterly
dividend of $0.32 per share to be paid on September 6, 2016 to common
stockholders of record on August 22, 2016.
Earnings Call
We will host a conference call beginning at 5:00pm ET on Wednesday,
August 3, 2016, accessible via telephone and the internet. Ken Moelis,
Chairman and Chief Executive Officer, and Joe Simon, Chief Financial
Officer, will review our second quarter 2016 financial results.
Following the review, there will be a question and answer session.
Investors and analysts may participate in the live conference call by
dialing 1-877-510-3938 (domestic) or 1-412-902-4137 (international) and
referencing the Moelis & Company Second Quarter 2016 Earnings Call.
Please dial in 15 minutes before the conference call begins. The
conference call will also be accessible as a listen-only audio webcast
through the Investor Relations section of the Moelis & Company website
at www.moelis.com.
For those unable to listen to the live broadcast, a replay of the call
will be available for one month via telephone starting approximately one
hour after the live call ends. The replay can be accessed at
1-877-344-7529 (domestic) or 1-412-317-0088 (international); the
conference number is 10088331.
About Moelis & Company
Moelis & Company is a leading global independent investment bank that
provides innovative strategic advice and solutions to a diverse client
base, including corporations, governments and financial sponsors. The
Firm assists its clients in achieving their strategic goals by offering
comprehensive integrated financial advisory services across all major
industry sectors. Moelis & Company’s experienced professionals advise
clients on their most critical decisions, including mergers and
acquisitions, recapitalizations and restructurings, capital markets
transactions and other corporate finance matters. The Firm serves its
clients with about 650 employees based in 17 offices in North and South
America, Europe, the Middle East, Asia and Australia. For further
information about Moelis & Company, please visit www.moelis.com.
Forward-Looking Statements
This press release contains forward-looking statements, which reflect
the Firm’s current views with respect to, among other things, its
operations and financial performance. You can identify these
forward-looking statements by the use of words such as “outlook,”
“believes,” “expects,” “potential,” “continues,” “may,” “will,”
“should,” “seeks,” “target,” “approximately,” “predicts,” “intends,”
“plans,” “estimates,” “anticipates” or the negative version of these
words or other comparable words. Such forward-looking statements are
subject to various risks and uncertainties. Accordingly, there are or
will be important factors that could cause actual outcomes or results to
differ materially from those indicated in these statements. For a
further discussion of such factors, you should read the Firm’s filings
with the Securities and Exchange Commission. The Firm undertakes no
obligation to publicly update or review any forward-looking statement,
whether as a result of new information, future developments or otherwise.
Non-GAAP Financial Measures
Adjusted results are a non-GAAP measure which better reflect
management’s view of operating results. We believe that the disclosed
Adjusted measures and any adjustments thereto, when presented in
conjunction with comparable GAAP measures, are useful to investors to
understand the Firm’s operating results by removing the significant
accounting impact of one-time charges associated with the Firm’s IPO and
assuming all Class A partnership units have been exchanged into Class A
common stock. These measures should not be considered a substitute for,
or superior to, measures of financial performance prepared in accordance
with GAAP. A reconciliation of GAAP results to Adjusted results is
presented in the Appendix.
Appendix
GAAP Consolidated Statement of Operations (Unaudited)
GAAP Reconciliation to Adjusted (non-GAAP) Financial Information
(Unaudited)
|
|
Moelis & Company GAAP Consolidated Statement of Operations Unaudited (dollars in thousands, except for share and per share data) |
|
|
| |
| |
| | | Three Months Ended June 30, | | Six Months Ended June 30, |
| | | 2016 |
| 2015 | | 2016 |
| 2015 |
| | | | | | | | |
|
| Revenues | | |
$
|
131,725
| |
$
|
125,873
| | |
$
|
258,089
| |
$
|
225,285
| |
| | | | | | | | |
|
| Expenses | | | | | | | | | |
|
Compensation and benefits
| | | |
78,198
| | |
69,663
| | | |
152,866
| | |
125,056
| |
|
Occupancy
| | | |
6,287
| | |
3,715
| | | |
10,845
| | |
7,392
| |
|
Professional fees
| | | |
2,511
| | |
4,143
| | | |
4,747
| | |
7,697
| |
|
Communication, technology and information services
| | | |
5,309
| | |
4,440
| | | |
10,605
| | |
8,541
| |
|
Travel and related expenses
| | | |
5,831
| | |
5,131
| | | |
11,962
| | |
10,744
| |
|
Depreciation and amortization
| | | |
806
| | |
688
| | | |
1,542
| | |
1,308
| |
|
Other expenses
| | |
|
2,224
| |
|
5,321
|
| |
|
6,072
| |
|
10,394
|
|
|
Total expenses
| | |
|
101,166
| |
|
93,101
|
| |
|
198,639
| |
|
171,132
|
|
| | | | | | | | |
|
| Operating income (loss) | | | |
30,559
| | |
32,772
| | | |
59,450
| | |
54,153
| |
|
Other income (expenses)
| | | |
101
| | |
(33
|
)
| | |
204
| | |
(18
|
)
|
|
Income (loss) from equity method investments
| | |
|
266
| |
|
195
|
| |
|
2,335
| |
|
3,060
|
|
| Income (loss) before income taxes | | | |
30,926
| | |
32,934
| | | |
61,989
| | |
57,195
| |
|
Provision for income taxes
| | |
|
4,721
| |
|
6,079
|
| |
|
10,165
| |
|
10,379
|
|
| Net income (loss) | | | |
26,205
| | |
26,855
| | | |
51,824
| | |
46,816
| |
| | | | | | | | |
|
|
Net income (loss) attributable to noncontrolling interests
| | |
|
19,312
| |
|
19,724
|
| |
|
37,961
| |
|
34,349
|
|
|
Net income (loss) attributable to Moelis & Company | | |
$
|
6,893
| |
$
|
7,131
|
| |
$
|
13,863
| |
$
|
12,467
|
|
| | | | | | | | |
|
Weighted-average shares of Class A common stock outstanding
| | | | | | | | | |
|
Basic
| | |
|
20,745,043
| |
|
19,978,108
|
| |
|
20,654,657
| |
|
19,961,286
|
|
|
Diluted
| | |
|
23,618,093
| |
|
21,088,220
|
| |
|
23,052,255
| |
|
21,144,161
|
|
|
Net income (loss) attributable to holders of shares of Class A
common stock per share
| | | | | | | | | |
|
Basic
| | |
$
|
0.33
| |
$
|
0.36
|
| |
$
|
0.67
| |
$
|
0.62
|
|
|
Diluted
| | |
$
|
0.29
| |
$
|
0.34
|
| |
$
|
0.60
| |
$
|
0.59
|
|
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
|
Moelis & Company Reconciliation of GAAP to Adjusted (non-GAAP) Financial
Information Unaudited (dollars in thousands, except share and per share data) |
|
|
| |
| | | Three Months Ended June 30, 2016 |
| Adjusted Items | | | GAAP |
| Adjustments | | Adjusted (non-GAAP) |
| | | | | | |
|
|
Compensation and benefits
| | |
$
|
78,198
| | |
($1,862 |
)
|
(a)
|
$
|
76,336
|
| | | | | | |
|
| Income (loss) before income taxes | | | |
30,926
| | |
1,862
| | | |
32,788
|
|
Provision for income taxes
| | |
|
4,721
| |
|
8,230
|
|
(b)
|
|
12,951
|
| Net income (loss) | | | |
26,205
| | |
(6,368
|
)
| | |
19,837
|
| | | | | | |
|
|
Net income (loss) attributable to noncontrolling interests
| | |
|
19,312
| |
|
(19,312
|
)
| |
|
-
|
|
Net income (loss) attributable to Moelis & Company | | |
$
|
6,893
| |
$
|
12,944
|
| |
$
|
19,837
|
| | | | | | |
|
Weighted-average shares of Class A common stock outstanding
| | | | | | | |
|
Basic
| | |
|
20,745,043
| |
|
33,768,672
|
|
(b)
|
|
54,513,715
|
|
Diluted
| | |
|
23,618,093
| |
|
33,768,672
|
|
(b)
|
|
57,386,765
|
|
Net income (loss) attributable to holders of shares of Class A
common stock per share
| | | | | | | |
|
Basic
| | |
$
|
0.33
| | | |
$
|
0.36
|
|
Diluted
| | |
$
|
0.29
| | | |
$
|
0.35
|
|
(a)
|
|
Expense associated with the amortization of Restricted Stock Units
(“RSUs”) and stock options granted in connection with the IPO. In
accordance with GAAP, amortization expense of RSUs and stock options
granted in connection with the IPO will be recognized over the five
year vesting period; we will continue to adjust for this expense due
to the one-time nature of the grant.
|
|
|
|
(b)
| |
Assumes all outstanding Class A partnership units have been
exchanged into Class A common stock. Accordingly, an adjustment has
been made such that 100% of the Firm’s income is taxed at the
corporate effective tax rate of 39.5% for the period presented.
|
| |
|
| |
|
|
|
| Three Months Ended June 30, 2015 |
| Adjusted Items | | | GAAP |
| Adjustments | | Adjusted (non-GAAP) |
| | | | | | |
|
|
Compensation and benefits
| | |
$
|
69,663
| | |
($1,387 |
)
|
(a)
|
$
|
68,276
|
| | | | | | |
|
| Income (loss) before income taxes | | | |
32,934
| | |
1,387
| | | |
34,321
|
|
Provision for income taxes
| | |
|
6,079
| |
|
7,650
|
|
(b)
|
|
13,729
|
Net income (loss) | | | |
26,855
| | |
(6,263)
| | | |
20,592
|
| | | | | | |
|
|
Net income (loss) attributable to noncontrolling interests
| | |
|
19,724
| |
|
(19,724)
|
| |
|
-
|
|
Net income (loss) attributable to Moelis & Company | | |
$
|
7,131
| |
$
|
13,461
|
| |
$
|
20,592
|
| | | | | | |
|
Weighted-average shares of Class A common stock outstanding
| | | | | | | |
|
Basic
| | |
|
19,978,108
| |
|
34,160,239
|
|
(b)
|
|
54,138,347
|
|
Diluted
| | |
|
21,088,220
| |
|
34,160,239
|
|
(b)
|
|
55,248,459
|
|
Net income (loss) attributable to holders of shares of Class A
common stock per share
| | | | | | | |
|
Basic
| | |
$
|
0.36
| | | |
$
|
0.38
|
|
Diluted
| | |
$
|
0.34
| | | |
$
|
0.37
|
|
(a)
|
|
Expense associated with the amortization of RSUs and stock options
granted in connection with the IPO. In accordance with GAAP,
amortization expense of RSUs and stock options granted in connection
with the IPO will be recognized over the five year vesting period;
we will continue to adjust for this expense due to the one-time
nature of the grant.
|
|
|
|
(b)
| |
Assumes all outstanding Class A partnership units have been
exchanged into Class A common stock. Accordingly, an adjustment has
been made such that 100% of the Firm’s income is taxed at the
corporate effective tax rate of 40.0% for the period presented.
|
| |
|
| |
|
|
|
| Six Months Ended June 30, 2016 |
| Adjusted Items | | | GAAP |
| Adjustments | | Adjusted (non-GAAP) |
| | | | | | |
|
|
Compensation and benefits
| | |
$
|
152,866
| | |
($3,236 |
)
|
(a)
|
$
|
149,630
|
| | | | | | |
|
| Income (loss) before income taxes | | | |
61,989
| | |
3,236
| | | |
65,225
|
|
Provision for income taxes
| | |
|
10,165
| |
|
15,599
|
|
(b)
|
|
25,764
|
| Net income (loss) | | | |
51,824
| | |
(12,363
|
)
| | |
39,461
|
| | | | | | |
|
|
Net income (loss) attributable to noncontrolling interests
| | |
|
37,961
| |
|
(37,961
|
)
| |
|
-
|
|
Net income (loss) attributable to Moelis & Company | | |
$
|
13,863
| |
$
|
25,598
|
| |
$
|
39,461
|
| | | | | | |
|
Weighted-average shares of Class A common stock outstanding
| | | | | | | |
|
Basic
| | |
|
20,654,657
| |
|
33,859,058
|
|
(b)
|
|
54,513,715
|
|
Diluted
| | |
|
23,052,255
| |
|
33,859,058
|
|
(b)
|
|
56,911,313
|
|
Net income (loss) attributable to holders of shares of Class A
common stock per share
| | | | | | | |
|
Basic
| | |
$
|
0.67
| | | |
$
|
0.72
|
|
Diluted
| | |
$
|
0.60
| | | |
$
|
0.69
|
|
(a)
|
|
Expense associated with the amortization of RSUs and stock options
granted in connection with the IPO. In accordance with GAAP,
amortization expense of RSUs and stock options granted in connection
with the IPO will be recognized over the five year vesting period;
we will continue to adjust for this expense due to the one-time
nature of the grant.
|
|
|
|
(b)
| |
Assumes all outstanding Class A partnership units have been
exchanged into Class A common stock. Accordingly, an adjustment has
been made such that 100% of the Firm’s income is taxed at the
corporate effective tax rate of 39.5% for the period presented.
|
| |
|
| |
|
|
|
| Six Months Ended June 30, 2015 |
| Adjusted Items | | | GAAP |
| Adjustments | | Adjusted (non-GAAP) |
| | | | | | |
|
|
Compensation and benefits
| | |
$
|
125,056
| | |
($2,847 |
)
|
(a)
|
$
|
122,209
|
| | | | | | |
|
| Income (loss) before income taxes | | | |
57,195
| | |
2,847
| | | |
60,042
|
|
Provision for income taxes
| | |
|
10,379
| |
|
13,638
|
|
(b)
|
|
24,017
|
| Net income (loss) | | | |
46,816
| | |
(10,791
|
)
| | |
36,025
|
| | | | | | |
|
|
Net income (loss) attributable to noncontrolling interests
| | |
|
34,349
| |
|
(34,349
|
)
| |
|
-
|
|
Net income (loss) attributable to Moelis & Company | | |
$
|
12,467
| |
$
|
23,558
|
| |
$
|
36,025
|
| | | | | | |
|
Weighted-average shares of Class A common stock outstanding
| | | | | | | |
|
Basic
| | |
|
19,961,286
| |
|
34,177,061
|
|
(b)
|
|
54,138,347
|
|
Diluted
| | |
|
21,144,161
| |
|
34,177,061
|
|
(b)
|
|
55,321,222
|
|
Net income (loss) attributable to holders of shares of Class A
common stock per share
| | | | | | | |
|
Basic
| | |
$
|
0.62
| | | |
$
|
0.67
|
|
Diluted
| | |
$
|
0.59
| | | |
$
|
0.65
|
|
(a)
|
|
Expense associated with the amortization of RSUs and stock options
granted in connection with the IPO. In accordance with GAAP,
amortization expense of RSUs and stock options granted in connection
with the IPO will be recognized over the five year vesting period;
we will continue to adjust for this expense due to the one-time
nature of the grant.
|
|
|
|
(b)
| |
Assumes all outstanding Class A partnership units have been
exchanged into Class A common stock. Accordingly, an adjustment has
been made such that 100% of the Firm’s income is taxed at the
corporate effective tax rate of 40.0% for the period presented.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160803006612/en/
Moelis & Company
Investor Relations:
Michele Miyakawa, + 1
310 443 2344
michele.miyakawa@moelis.com
or
Media:
Andrea
Hurst, + 1 212 883 3666
m: +1 347 583 9705
andrea.hurst@moelis.com
Source: Moelis & Company