-
Third quarter revenues of $150.7 million compare with $151.8 million
of revenues in the third quarter of 2015; first nine month revenues of
$408.8 million, up 8% from the same period of 2015
-
GAAP net income of $0.39 per share (diluted) for the third quarter and
$0.99 per share (diluted) for the first nine months of 2016; Adjusted
net income of $0.44 per share (diluted) for the third quarter and
$1.14 per share (diluted) for the first nine months of 2016
-
Continued to execute on organic growth strategy
― Entered
into a strategic alliance with Alfaro, Dávila y Ríos, S.C., Mexico’s
leading independent strategic and finacial advisory firm; Moelis &
Company is now present in the two largest markets in Latin America
―
Added an Oil & Gas Senior Advisor in the Houston office to advise
upstream clients; augments existing team of five Managing Directors
and is the third senior hire in Houston this year
― Added
a Senior Advisor with significant M&A and operating experience and
deep relationships with multinational companies in healthcare,
industrials and business services
-
Strong balance sheet with $235.6 million of cash and short-term
investments and no debt at quarter-end
-
Declared quarterly dividend of $0.32 per share
NEW YORK--(BUSINESS WIRE)--
Moelis & Company (“we” or the “Firm”) (NYSE: MC) today reported
financial results for the third quarter ended September 30, 2016. The
Firm’s total revenues for the third quarter were $150.7 million,
representing a decrease of 1% from the prior year period. The Firm
reported third quarter 2016 GAAP net income of $35.3 million, or $0.39
per share (diluted). On an Adjusted basis, the Firm reported net income
of $25.7 million or $0.44 per share (diluted) for the third quarter of
2016, as compared with $25.1 million or $0.45 per share (diluted) in the
prior year period.
Total revenues for the first nine months of 2016 were $408.8 million, up
8% from the $377.1 million of revenues earned in the first nine months
of 2015. GAAP net income for the period was $87.1 million, or $0.99 per
share (diluted). On an Adjusted basis, the Firm reported net income of
$65.2 million or $1.14 per share (diluted) for the first nine months of
2016, as compared with $61.2 million or $1.11 per share (diluted) in the
prior year period.
“Following a strong first half of the year, our third quarter revenues
were flat with the prior year quarter, despite the M&A market being down
almost 20% globally1. However, we continue to see strong
M&A-related activity and growing restructuring-related activity,
particularly in the US,” said Ken Moelis, Chairman and Chief Executive
Officer.
“During the third quarter we expanded our global footprint with a
strategic alliance in Mexico, and we recently bolstered our Oil & Gas
and M&A expertise with veteran Senior Advisors. We continue to invest in
the organic growth of our business, which we believe results in a
significantly higher return on invested capital. This allows us to
generate significant cash flow which we will continue to return to our
investors.”
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.
In the second quarter of 2016, the Firm 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.
1 Source: Thomson Financial as of October 5, 2016; includes
all transactions greater than $100 million in value
GAAP and Adjusted (non-GAAP) Selected
Financial Data (Unaudited) |
|
|
| |
| |
| | | U.S. GAAP | | Adjusted (non-GAAP)* |
| | | Three Months Ended September 30, |
| ($ in thousands except per share data) | | | 2016 |
| 2015 |
| 2016 vs. 2015
Variance | | 2016 |
| 2015 |
| 2016 vs. 2015
Variance |
| | | | | | | | | | | | |
|
|
Revenues
| | | $150,676 | | $151,789 | |
-1
|
%
| | $150,676 | | $151,789 | |
-1
|
%
|
| Income (loss) before income taxes | | |
41,863
| |
39,903
| |
5
|
%
| |
42,504
| |
41,879
| |
1
|
%
|
|
Provision for income taxes
| | |
6,550
| |
5,273
| |
24
|
%
| |
16,789
| |
16,751
| |
0
|
%
|
| Net income (loss) | | |
35,313
| |
34,630
| |
2
|
%
| |
25,715
| |
25,128
| |
2
|
%
|
| | | | | | | | | | | | |
|
|
Net income (loss) attributable to noncontrolling interests
| | |
25,824
| |
24,540
| |
5
|
%
| |
-
| |
-
| |
N/M
|
|
Net income (loss) attributable to Moelis & Company | | | $9,489 | | $10,090 | |
-6
|
%
| | $25,715 | | $25,128 | |
2
|
%
|
| | | | | | | | | | | | |
|
|
Diluted earnings per share
| | | $0.39 | | $0.47 | |
-17
|
%
| | $0.44 | | $0.45 | |
-2
|
%
|
|
| | | | | | | | | | | | | |
|
N/M = not meaningful
| | | | | | | | | | | | | |
|
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)
|
| | | | | | | | | | | | |
|
| | | | |
|
| | | U.S. GAAP | | Adjusted (non-GAAP)* |
| | | Nine Months Ended September 30, |
| ($ in thousands except per share data) | | | 2016 | | 2015 | | 2016 vs. 2015
Variance | | 2016 | | 2015 | | 2016 vs. 2015
Variance |
| | | | | | | | | | | | |
|
|
Revenues
| | | $408,765 | | $377,074 | |
8
|
%
| | $408,765 | | $377,074 | |
8
|
%
|
| Income (loss) before income taxes | | |
103,852
| |
97,098
| |
7
|
%
| |
107,729
| |
101,921
| |
6
|
%
|
|
Provision for income taxes
| | |
16,715
| |
15,652
| |
7
|
%
| |
42,553
| |
40,768
| |
4
|
%
|
| Net income (loss) | | |
87,137
| |
81,446
| |
7
|
%
| |
65,176
| |
61,153
| |
7
|
%
|
| | | | | | | | | | | | |
|
|
Net income (loss) attributable to noncontrolling interests
| | |
63,785
| |
58,889
| |
8
|
%
| |
-
| |
-
| |
N/M
|
|
Net income (loss) attributable to Moelis & Company | | | $23,352 | | $22,557 | |
4
|
%
| | $65,176 | | $61,153 | |
7
|
%
|
| | | | | | | | | | | | |
|
|
Diluted earnings per share
| | | $0.99 | | $1.07 | |
-7
|
%
| | $1.14 | | $1.11 | |
3
|
%
|
|
| | | | | | | | | | | | | |
|
N/M = not meaningful
| | | | | | | | | | | | | |
|
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)
|
Revenues
For the third quarter of 2016, revenues were $150.7 million,
representing a decrease of 1% from the record third quarter of 2015 in
which we earned $151.8 million of revenues. This compares favorably with
an 18% decrease in the number of global completed M&A transactions in
the same period1.
For the first nine months of 2016, revenues were $408.8 million as
compared with $377.1 million in the same period in 2015, representing an
increase of 8%. The increase in revenues reflects continued strong M&A
activity and a larger number of total clients advised. We advised 246
clients (120 of whom paid fees equal to or greater than $1 million) in
the first nine months of 2016 as compared with 213 clients (104 of whom
paid fees equal to or greater than $1 million) during the same period in
the prior year.
We continued to execute on our strategy of profitable expansion. During
the third quarter, we entered into a Strategic Alliance in Mexico with
Alfaro, Dávila y Ríos, S.C. which will focus on cross-border
transactions and further expand our global footprint. The Firm is now
present in Brazil and Mexico, Latin America’s two largest markets. We
also announced the addition of a Senior Advisor in Houston who adds to
the Firm’s growing capabilities covering Oil & Gas clients, and a Senior
Advisor who will deepen the Firm’s client relationships with
multinational companies.
1 Source: Thomson Financial as of October 5, 2016; includes
all transactions greater than $100 million in value
Expenses
The following tables set forth information relating to the Firm’s
operating expenses, which are reported net of client expense
reimbursements.
|
|
| U.S. GAAP |
| Adjusted (non-GAAP)* |
| | | Three Months Ended September 30, |
| ($ in thousands) | | | 2016 |
| 2015 |
| 2016 vs. 2015
Variance | | 2016 |
| 2015 |
| 2016 vs. 2015
Variance |
| | | | | | | | | | | | |
|
| Expenses | | | | | | | | | | | | | |
|
Compensation and benefits
| | | $88,046 | | $86,277 | |
2%
| | $87,405 | | $84,806 | |
3%
|
| % of revenues | | |
58%
| |
57%
| | | |
58%
| |
56%
| | |
|
Non-compensation expenses
| | | $22,516 | | $25,603 | |
-12%
| | $22,516 | | $25,603 | |
-12%
|
| % of revenues | | |
15%
| |
17%
| | | |
15%
| |
17%
| | |
|
Total operating expenses
| | | $110,562 | | $111,880 | |
-1%
| | $109,921 | | $110,409 | |
0%
|
| % of revenues | | |
73%
| |
74%
| | | |
73%
| |
73%
| | |
| | | | | | | | | | | | |
|
|
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)
|
|
|
|
|
| | | U.S. GAAP | | Adjusted (non-GAAP)* |
| | | Nine Months Ended September 30, |
| ($ in thousands) | | | 2016 | | 2015 | | 2016 vs. 2015
Variance | | 2016 | | 2015 | | 2016 vs. 2015
Variance |
| | | | | | | | | | | | |
|
| Expenses | | | | | | | | | | | | | |
|
Compensation and benefits
| | | $240,912 | | $211,333 | |
14%
| | $237,035 | | $207,015 | |
15%
|
| % of revenues | | |
59%
| |
56%
| | | |
58%
| |
55%
| | |
|
Non-compensation expenses
| | | $68,289 | | $71,679 | |
-5%
| | $68,289 | | $71,679 | |
-5%
|
| % of revenues | | |
17%
| |
19%
| | | |
17%
| |
19%
| | |
|
Total operating expenses
| | | $309,201 | | $283,012 | |
9%
| | $305,324 | | $278,694 | |
10%
|
| % of revenues | | |
76%
| |
75%
| | | |
75%
| |
74%
| | |
| | | | | | | | | | | | |
|
|
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)
|
Total operating expenses on a GAAP basis were $110.6 million for the
third quarter and $309.2 million for the first nine months of 2016. On
an Adjusted basis, operating expenses were $109.9 million for the third
quarter of 2016 as compared with $110.4 million for the third quarter of
2015, and $305.3 million for the first nine months as compared with
$278.7 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 $88.0 million on a GAAP basis in
the third quarter and $240.9 million for the first nine months of 2016.
Adjusted compensation and benefits expenses (which exclude the
amortization of IPO awards for both 2015 and 2016) were $87.4 million
and $237.0 million for the third quarter and first nine months of 2016,
respectively, as compared with $84.8 million and $207.0 million for the
third quarter and first nine months of 2015, respectively. The Adjusted
compensation and benefits ratio increased from 56% in the third quarter
and 55% in the first nine months 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.
Non-compensation expenses on a GAAP and Adjusted basis were $22.5
million for the third quarter of 2016 as compared with $25.6 million for
the third quarter of 2015. Our non-compensation expense ratio decreased
to 15% from 17% in the same period of the prior year. For the first nine
months of 2016, GAAP and Adjusted non-compensation expenses were $68.3
million as compared with $71.7 million for the same period of the prior
year, and the non-compensation expense ratio decreased to 17% from 19%,
driven by continued expense discipline.
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 third 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 September 30, 2016, we held cash and short term investments of
$235.6 million and had no debt or goodwill on our balance sheet.
On October 25, 2016, the Board of Directors of Moelis & Company declared
a quarterly dividend of $0.32 per share to be paid on December 7, 2016
to common stockholders of record on November 22, 2016.
Earnings Call
We will host a conference call beginning at 5:00pm ET on Wednesday,
October 26, 2016, accessible via telephone and the internet. Ken Moelis,
Chairman and Chief Executive Officer, and Joe Simon, Chief Financial
Officer, will review our third 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 Third 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 10093107.
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 over 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)
Reconciliation of GAAP 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 September 30, | | Nine Months Ended September 30, |
| | | 2016 |
| 2015 | | 2016 |
| 2015 |
| | | | | | | | | | |
|
| Revenues | | | $150,676 | | | $151,789 | | | $408,765 | | | $377,074 | |
| | | | | | | | | | |
|
| Expenses | | | | | | | | | | | |
|
Compensation and benefits
| | |
88,046
| | |
86,277
| | |
240,912
| | |
211,333
| |
|
Occupancy
| | |
4,096
| | |
3,836
| | |
14,941
| | |
11,228
| |
|
Professional fees
| | |
2,804
| | |
5,116
| | |
7,551
| | |
12,813
| |
|
Communication, technology and information services
| | |
5,496
| | |
4,862
| | |
16,101
| | |
13,403
| |
|
Travel and related expenses
| | |
4,490
| | |
5,951
| | |
16,452
| | |
16,695
| |
|
Depreciation and amortization
| | |
817
| | |
646
| | |
2,359
| | |
1,954
| |
|
Other expenses
| | |
4,813
|
| |
5,192
|
| |
10,885
|
| |
15,586
|
|
|
Total expenses
| | |
110,562
|
| |
111,880
|
| |
309,201
|
| |
283,012
|
|
| | | | | | | | | | |
|
| Operating income (loss) | | |
40,114
| | |
39,909
| | |
99,564
| | |
94,062
| |
|
Other income (expenses)
| | |
187
| | |
(456
|
)
| |
391
| | |
(474
|
)
|
|
Income (loss) from equity method investments
| | |
1,562
|
| |
450
|
| |
3,897
|
| |
3,510
|
|
| Income (loss) before income taxes | | |
41,863
| | |
39,903
| | |
103,852
| | |
97,098
| |
|
Provision for income taxes
| | |
6,550
|
| |
5,273
|
| |
16,715
|
| |
15,652
|
|
| Net income (loss) | | |
35,313
| | |
34,630
| | |
87,137
| | |
81,446
| |
| | | | | | | | | | |
|
|
Net income (loss) attributable to noncontrolling interests
| | |
25,824
|
| |
24,540
|
| |
63,785
|
| |
58,889
|
|
|
Net income (loss) attributable to Moelis & Company | | | $9,489 |
| | $10,090 |
| | $23,352 |
| | $22,557 |
|
| | | | | | | | | | |
|
Weighted-average shares of Class A common stock outstanding
| | | | | | | | | | | |
|
Basic
| | |
20,926,745
|
| |
20,184,835
|
| |
20,807,189
|
| |
19,919,675
|
|
|
Diluted
| | |
24,301,063
|
| |
21,466,021
|
| |
23,516,239
|
| |
21,105,523
|
|
|
Net income (loss) attributable to holders of shares of Class A
common stock per share
| | | | | | | | | | | |
|
Basic
| | | $0.45 |
| | $0.50 |
| | $1.12 |
| | $1.13 |
|
|
Diluted
| | | $0.39 |
| | $0.47 |
| | $0.99 |
| | $1.07 |
|
| | | | | | | | | | | | |
|
| | | | | | | | | | | | |
|
Moelis & Company Reconciliation of GAAP to Adjusted (non-GAAP) Financial
Information Unaudited (dollars in thousands, except share and per share data) |
|
|
| |
| | | Three Months Ended September 30, 2016 |
| Adjusted Items | | | GAAP |
| Adjustments | | Adjusted (non-GAAP) |
| | | | | | |
|
|
Compensation and benefits
| | | $88,046 | |
($641)
|
(a)
| $87,405 |
| | | | | | |
|
|
Income (loss) before income taxes
| | |
41,863
| |
641
| |
42,504
|
|
Provision for income taxes
| | |
6,550
| |
10,239
|
(b)
|
16,789
|
|
Net income (loss)
| | |
35,313
| |
(9,598)
| |
25,715
|
| | | | | | |
|
|
Net income (loss) attributable to noncontrolling interests
| | |
25,824
| |
(25,824)
| |
-
|
|
Net income (loss) attributable to Moelis & Company | | | $9,489 | | $16,226 | | $25,715 |
| | | | | | |
|
Weighted-average shares of Class A common stock outstanding
| | | | | | | |
|
Basic
| | |
20,926,745
| |
33,699,539
|
(b)
|
54,626,284
|
|
Diluted
| | |
24,301,063
| |
33,699,539
|
(b)
|
58,000,602
|
Net income (loss) attributable to holders of shares of Class A
common stock per share
| | | | | | | |
|
Basic
| | | $0.45 | | | | $0.47 |
|
Diluted
| | | $0.39 | | | | $0.44 |
| | | | | | |
|
|
(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 September 30, 2015 |
| Adjusted Items | | | GAAP |
| Adjustments | | Adjusted (non-GAAP) |
| | | | | | |
|
|
Compensation and benefits
| | | $86,277 | |
($1,471)
|
(a)
| $84,806 |
| | | | | | |
|
|
Operating income (loss)
| | |
39,909
| |
1,471
| |
41,380
|
|
Other income (expenses)
| | |
(456)
| |
505
|
(b)
|
49
|
| | | | | | |
|
|
Income (loss) before income taxes
| | |
39,903
| |
1,976
| |
41,879
|
|
Provision for income taxes
| | |
5,273
| |
11,478
|
(b)(c)
|
16,751
|
|
Net income (loss)
| | |
34,630
| |
(9,502)
| |
25,128
|
| | | | | | |
|
|
Net income (loss) attributable to noncontrolling interests
| | |
24,540
| |
(24,540)
| |
-
|
|
Net income (loss) attributable to Moelis & Company | | | $10,090 | | $15,038 | | $25,128 |
| | | | | | |
|
Weighted-average shares of Class A common stock outstanding
| | | | | | | |
|
Basic
| | |
20,184,835
| |
33,932,671
|
(c)
|
54,117,506
|
|
Diluted
| | |
21,466,021
| |
33,932,671
|
(c)
|
55,398,692
|
Net income (loss) attributable to holders of shares of Class A
common stock per share
| | | | | | | |
|
Basic
| | | $0.50 | | | | $0.46 |
|
Diluted
| | | $0.47 | | | | $0.45 |
| | | | | | |
|
|
(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)
| |
Reflects the netting of GAAP adjustments made to the amount pursuant
to the Company’s Tax Receivable Agreement against provision for
income taxes.
|
| |
|
|
(c)
| |
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.
|
| |
|
| |
|
|
|
| Nine Months Ended September 30, 2016 |
| Adjusted Items | | | GAAP |
| Adjustments | | Adjusted (non-GAAP) |
| | | | | | |
|
|
Compensation and benefits
| | | $240,912 | |
($3,877)
|
(a)
| $237,035 |
| | | | | | |
|
|
Income (loss) before income taxes
| | |
103,852
| |
3,877
| |
107,729
|
|
Provision for income taxes
| | |
16,715
| |
25,838
|
(b)
|
42,553
|
|
Net income (loss)
| | |
87,137
| |
(21,961)
| |
65,176
|
| | | | | | |
|
|
Net income (loss) attributable to noncontrolling interests
| | |
63,785
| |
(63,785)
| |
-
|
|
Net income (loss) attributable to Moelis & Company | | | $23,352 | | $41,824 | | $65,176 |
| | | | | | |
|
Weighted-average shares of Class A common stock outstanding
| | | | | | | |
|
Basic
| | |
20,807,189
| |
33,819,095
|
(b)
|
54,626,284
|
|
Diluted
| | |
23,516,239
| |
33,819,095
|
(b)
|
57,335,334
|
Net income (loss) attributable to holders of shares of Class A
common stock per share
| | | | | | | |
|
Basic
| | | $1.12 | | | | $1.19 |
|
Diluted
| | | $0.99 | | | | $1.14 |
| | | | | | |
|
|
(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.
|
| |
|
| |
|
|
|
| Nine Months Ended September 30, 2015 |
| Adjusted Items | | | GAAP |
| Adjustments | | Adjusted (non-GAAP) |
| | | | | | |
|
|
Compensation and benefits
| | | $211,333 | |
($4,318)
|
(a)
| $207,015 |
| | | | | | |
|
|
Operating income (loss)
| | |
94,062
| |
4,318
| |
98,380
|
|
Other income (expenses)
| | |
(474)
| |
505
|
(b)
|
31
|
| | | | | | |
|
|
Income (loss) before income taxes
| | |
97,098
| |
4,823
| |
101,921
|
|
Provision for income taxes
| | |
15,652
| |
25,116
|
(b)(c)
|
40,768
|
|
Net income (loss)
| | |
81,446
| |
(20,293)
| |
61,153
|
| | | | | | |
|
|
Net income (loss) attributable to noncontrolling interests
| | |
58,889
| |
(58,889)
| |
-
|
|
Net income (loss) attributable to Moelis & Company | | | $22,557 | | $38,596 | | $61,153 |
| | | | | | |
|
Weighted-average shares of Class A common stock outstanding
| | | | | | | |
|
Basic
| | |
19,919,675
| |
34,197,831
|
(c)
|
54,117,506
|
|
Diluted
| | |
21,105,523
| |
34,197,831
|
(c)
|
55,303,354
|
Net income (loss) attributable to holders of shares of Class A
common stock per share
| | | | | | | |
|
Basic
| | | $1.13 | | | | $1.13 |
|
Diluted
| | | $1.07 | | | | $1.11 |
| | | | | | |
|
|
(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)
| |
Reflects the netting of GAAP adjustments made to the amount pursuant
to the Company’s Tax Receivable Agreement against provision for
income taxes.
|
|
|
|
(c)
| |
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/20161026006813/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