(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Title of Each Class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Emerging growth company |
Date: | October 30, 2024 | Houlihan Lokey, Inc. | ||||||||||||
By: | /s/ J. Lindsey Alley | |||||||||||||
Name: J. Lindsey Alley | ||||||||||||||
Position: Chief Financial Officer |
Exhibit No. | Description | |||||||
99.1 |
(In thousands, except per share data) | U.S. GAAP | ||||||||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Revenues by segment | |||||||||||||||||||||||
Corporate Finance | $ | 364,028 | $ | 281,684 | $ | 692,445 | $ | 508,735 | |||||||||||||||
Financial Restructuring | 131,568 | 114,670 | 248,990 | 238,038 | |||||||||||||||||||
Financial and Valuation Advisory | 79,361 | 70,635 | 147,131 | 136,045 | |||||||||||||||||||
Revenues | $ | 574,957 | $ | 466,989 | $ | 1,088,566 | $ | 882,818 | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Employee compensation and benefits | $ | 360,637 | $ | 296,542 | $ | 690,753 | $ | 560,025 | |||||||||||||||
Non-compensation | 83,651 | 80,170 | 171,576 | 159,169 | |||||||||||||||||||
Operating income | 130,669 | 90,277 | 226,237 | 163,624 | |||||||||||||||||||
Other income, net | (5,419) | (3,296) | (9,725) | (6,301) | |||||||||||||||||||
Income before provision for income taxes | 136,088 | 93,573 | 235,962 | 169,925 | |||||||||||||||||||
Provision for income taxes | 42,539 | 26,542 | 53,473 | 41,504 | |||||||||||||||||||
Net income attributable to Houlihan Lokey, Inc. | $ | 93,549 | $ | 67,031 | $ | 182,489 | $ | 128,421 | |||||||||||||||
Diluted earnings per share attributable to Houlihan Lokey, Inc. | $ | 1.37 | $ | 0.99 | $ | 2.67 | $ | 1.89 |
U.S. GAAP | Adjusted (Non-GAAP) * | ||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||
($ in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Employee compensation and benefits | $ | 360,637 | $ | 296,542 | $ | 353,599 | $ | 287,200 | |||||||||||||||
% of Revenues | 62.7 | % | 63.5 | % | 61.5 | % | 61.5 | % | |||||||||||||||
Non-compensation | $ | 83,651 | $ | 80,170 | $ | 80,879 | $ | 75,345 | |||||||||||||||
% of Revenues | 14.5 | % | 17.2 | % | 14.1 | % | 16.1 | % | |||||||||||||||
Per full-time employee (1) | $ | 32 | $ | 30 | $ | 31 | $ | 29 | |||||||||||||||
Provision for income taxes | $ | 42,539 | $ | 26,542 | $ | 45,610 | $ | 30,329 | |||||||||||||||
% of Pre-tax income | 31.3 | % | 28.4 | % | 31.3 | % | 28.4 | % |
U.S. GAAP | Adjusted (Non-GAAP) * | ||||||||||||||||||||||
Six Months Ended September 30, | |||||||||||||||||||||||
($ in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Employee compensation and benefits | $ | 690,753 | $ | 560,025 | $ | 669,468 | $ | 542,933 | |||||||||||||||
% of Revenues | 63.5 | % | 63.4 | % | 61.5 | % | 61.5 | % | |||||||||||||||
Non-compensation | $ | 171,576 | $ | 159,169 | $ | 161,209 | $ | 150,989 | |||||||||||||||
% of Revenues | 15.8 | % | 18.0 | % | 14.8 | % | 17.1 | % | |||||||||||||||
Per full-time employee (1) | $ | 65 | $ | 60 | $ | 61 | $ | 57 | |||||||||||||||
Provision for income taxes | $ | 53,473 | $ | 41,504 | $ | 83,849 | $ | 55,828 | |||||||||||||||
% of Pre-tax income | 22.7 | % | 24.4 | % | 31.2 | % | 28.7 | % |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
($ in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Corporate Finance | |||||||||||||||||||||||
Revenues | $ | 364,028 | $ | 281,684 | $ | 692,445 | $ | 508,735 | |||||||||||||||
# of Managing Directors | 224 | 211 | 224 | 211 | |||||||||||||||||||
# of Closed transactions (1) | 131 | 117 | 247 | 212 |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
($ in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Financial Restructuring | |||||||||||||||||||||||
Revenues | $ | 131,568 | $ | 114,670 | $ | 248,990 | $ | 238,038 | |||||||||||||||
# of Managing Directors | 58 | 60 | 58 | 60 | |||||||||||||||||||
# of Closed transactions (1) | 33 | 31 | 66 | 61 |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
($ in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Financial and Valuation Advisory | |||||||||||||||||||||||
Revenues | $ | 79,361 | $ | 70,635 | $ | 147,131 | $ | 136,045 | |||||||||||||||
# of Managing Directors | 41 | 40 | 41 | 40 | |||||||||||||||||||
# of Fee Events (1) | 903 | 852 | 1,316 | 1,255 |
Investor Relations 212.331.8225 IR@HL.com | OR | Media Relations 212.331.8223 PR@HL.com |
(In thousands, except share data and par value) | September 30, 2024 | March 31, 2024 | |||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 691,410 | $ | 721,235 | |||||||
Restricted cash | 1,452 | 619 | |||||||||
Investment securities | 56,829 | 38,005 | |||||||||
Accounts receivable, net of allowance for credit losses | 219,133 | 199,630 | |||||||||
Unbilled work in process, net of allowance for credit losses | 138,293 | 192,012 | |||||||||
Income taxes receivable | 21,832 | 32,856 | |||||||||
Deferred income taxes | 87,020 | 90,064 | |||||||||
Property and equipment, net | 148,729 | 136,701 | |||||||||
Operating lease right-of-use assets | 359,739 | 344,024 | |||||||||
Goodwill | 1,177,757 | 1,127,497 | |||||||||
Other intangible assets, net | 196,641 | 197,439 | |||||||||
Other assets | 113,916 | 90,677 | |||||||||
Total assets | $ | 3,212,751 | $ | 3,170,759 | |||||||
Liabilities and stockholders' equity | |||||||||||
Liabilities: | |||||||||||
Accrued salaries and bonuses | $ | 641,370 | $ | 726,031 | |||||||
Accounts payable and accrued expenses | 104,661 | 114,171 | |||||||||
Deferred income | 37,956 | 33,139 | |||||||||
Deferred income taxes | 7,575 | 7,505 | |||||||||
Operating lease liabilities | 431,222 | 415,412 | |||||||||
Other liabilities | 32,880 | 37,751 | |||||||||
Total liabilities | 1,255,664 | 1,334,009 | |||||||||
Stockholders' equity: | |||||||||||
Class A common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 53,403,939 and 52,348,511 shares, respectively | 53 | 52 | |||||||||
Class B common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 16,082,738 and 16,746,676 shares, respectively | 16 | 17 | |||||||||
Additional paid-in capital | 735,277 | 739,870 | |||||||||
Retained earnings | 1,259,950 | 1,163,419 | |||||||||
Accumulated other comprehensive loss | (38,209) | (66,608) | |||||||||
Total stockholders’ equity | 1,957,087 | 1,836,750 | |||||||||
Total liabilities and stockholders’ equity | $ | 3,212,751 | $ | 3,170,759 |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
(In thousands, except share and per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Revenues | $ | 574,957 | $ | 466,989 | $ | 1,088,566 | $ | 882,818 | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Employee compensation and benefits | 353,599 | 287,200 | 669,468 | 542,933 | |||||||||||||||||||
Acquisition related compensation and benefits | 7,038 | 9,342 | 21,285 | 17,092 | |||||||||||||||||||
Travel, meals, and entertainment | 13,570 | 14,151 | 32,082 | 30,169 | |||||||||||||||||||
Rent | 15,174 | 19,013 | 34,458 | 36,416 | |||||||||||||||||||
Depreciation and amortization | 7,444 | 7,086 | 16,300 | 13,618 | |||||||||||||||||||
Information technology and communications | 17,755 | 14,328 | 33,944 | 27,876 | |||||||||||||||||||
Professional fees | 9,677 | 10,859 | 18,154 | 20,416 | |||||||||||||||||||
Other operating expenses | 20,031 | 14,733 | 36,638 | 30,674 | |||||||||||||||||||
Total operating expenses | 444,288 | 376,712 | 862,329 | 719,194 | |||||||||||||||||||
Operating income | 130,669 | 90,277 | 226,237 | 163,624 | |||||||||||||||||||
Other income, net | (5,419) | (3,296) | (9,725) | (6,301) | |||||||||||||||||||
Income before provision for income taxes | 136,088 | 93,573 | 235,962 | 169,925 | |||||||||||||||||||
Provision for income taxes | 42,539 | 26,542 | 53,473 | 41,504 | |||||||||||||||||||
Net income | $ | 93,549 | $ | 67,031 | $ | 182,489 | $ | 128,421 | |||||||||||||||
Weighted average shares of common stock outstanding: | |||||||||||||||||||||||
Basic | 65,822,690 | 64,551,353 | 65,429,115 | 64,180,642 | |||||||||||||||||||
Fully diluted | 68,422,600 | 67,867,381 | 68,450,866 | 67,881,623 | |||||||||||||||||||
Earnings per share attributable to Houlihan Lokey, Inc. | |||||||||||||||||||||||
Basic | $ | 1.42 | $ | 1.04 | $ | 2.79 | $ | 2.00 | |||||||||||||||
Fully diluted | $ | 1.37 | $ | 0.99 | $ | 2.67 | $ | 1.89 |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
(In thousands, except share and per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Revenues | $ | 574,957 | $ | 466,989 | $ | 1,088,566 | $ | 882,818 | |||||||||||||||
Employee compensation and benefits expenses | |||||||||||||||||||||||
Employee compensation and benefits expenses (GAAP) | $ | 360,637 | $ | 296,542 | $ | 690,753 | $ | 560,025 | |||||||||||||||
Less: Acquisition related compensation and benefits | (7,038) | (9,342) | (21,285) | (17,092) | |||||||||||||||||||
Employee compensation and benefits expenses (adjusted) | 353,599 | 287,200 | 669,468 | 542,933 | |||||||||||||||||||
Non-compensation expenses | |||||||||||||||||||||||
Non-compensation expenses (GAAP) | $ | 83,651 | $ | 80,170 | $ | 171,576 | $ | 159,169 | |||||||||||||||
Less: Acquisition related legal structure reorganization | (705) | — | (1,205) | — | |||||||||||||||||||
Less: Integration and acquisition related costs | — | (1,465) | (3,554) | (1,465) | |||||||||||||||||||
Less: Acquisition amortization | (2,067) | (3,360) | (5,608) | (6,715) | |||||||||||||||||||
Non-compensation expenses (adjusted) | 80,879 | 75,345 | 161,209 | 150,989 | |||||||||||||||||||
Operating income | |||||||||||||||||||||||
Operating income (GAAP) | $ | 130,669 | $ | 90,277 | $ | 226,237 | $ | 163,624 | |||||||||||||||
Plus: Adjustments (1) | 9,810 | 14,167 | 31,652 | 25,272 | |||||||||||||||||||
Operating income (adjusted) | 140,479 | 104,444 | 257,889 | 188,896 | |||||||||||||||||||
Other income, net | |||||||||||||||||||||||
Other income, net (GAAP) | $ | (5,419) | $ | (3,296) | $ | (9,725) | $ | (6,301) | |||||||||||||||
Plus: Change in acquisition earnout liability fair value | — | 816 | (828) | 816 | |||||||||||||||||||
Other income, net (adjusted) | (5,419) | (2,480) | (10,553) | (5,485) | |||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Provision for income taxes (GAAP) | $ | 42,539 | $ | 26,542 | $ | 53,473 | $ | 41,504 | |||||||||||||||
Plus: Impact of the excess tax benefit for stock vesting | — | — | 21,921 | 7,299 | |||||||||||||||||||
Less: Reversal of deferred tax asset | — | — | (1,690) | — | |||||||||||||||||||
Adjusted provision for income taxes | 42,539 | 26,542 | 73,704 | 48,803 | |||||||||||||||||||
Plus: Resulting tax impact (2) | 3,071 | 3,787 | 10,145 | 7,025 | |||||||||||||||||||
Provision for income taxes (adjusted) | 45,610 | 30,329 | 83,849 | 55,828 | |||||||||||||||||||
Net income | |||||||||||||||||||||||
Net income (GAAP) | $ | 93,549 | $ | 67,031 | $ | 182,489 | $ | 128,421 | |||||||||||||||
Plus/(less): Adjustments (3) | 6,739 | 9,564 | 2,104 | 10,132 | |||||||||||||||||||
Net income (adjusted) | $ | 100,288 | $ | 76,595 | 184,593 | 138,553 | |||||||||||||||||
Fully diluted shares outstanding | |||||||||||||||||||||||
Fully diluted shares outstanding (GAAP) | 68,422,600 | 67,867,381 | 68,450,866 | 67,881,623 | |||||||||||||||||||
Plus: Impact of unvested GCA retention and deferred share awards | 458,865 | 1,132,423 | 532,840 | 1,257,446 | |||||||||||||||||||
Fully diluted shares outstanding (adjusted) | 68,881,465 | 68,999,804 | 68,983,706 | 69,139,069 | |||||||||||||||||||
Diluted EPS attributable to Houlihan Lokey, Inc. (GAAP) | $ | 1.37 | $ | 0.99 | $ | 2.67 | $ | 1.89 | |||||||||||||||
Diluted EPS attributable to Houlihan Lokey, Inc. (adjusted) | $ | 1.46 | $ | 1.11 | $ | 2.68 | $ | 2.00 |
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Cover Page Document |
Oct. 30, 2024 |
---|---|
Cover page [Abstract] | |
Document Type | 8-K |
Document Period End Date | Oct. 30, 2024 |
Entity Registrant Name | Houlihan Lokey, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-37537 |
Entity Tax Identification Number | 95-2770395 |
Entity Address, Address Line One | 10250 Constellation Blvd. |
Entity Address, Address Line Two | 5th Floor |
Entity Address, City or Town | Los Angeles |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 90067 |
City Area Code | 310 |
Local Phone Number | -8871 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Class A Common Stock, par value $0.001 |
Trading Symbol | HLI |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001302215 |
Amendment Flag | false |
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