HLI Houlihan Lokey Inc

– Fiscal Year 2024 Revenues of $1.91 billion – – Fiscal Year 2024 Diluted EPS of $4.11 – – Adjusted Fiscal Year 2024 Diluted EPS of $4.49 –

– Fourth Quarter Fiscal 2024 Revenues of $520 million – – Fourth Quarter Fiscal 2024 Diluted EPS of $1.18 – – Adjusted Fourth Quarter Fiscal 2024 Diluted EPS of $1.27 –

– Announces an Increase in the Quarterly Dividend to $0.57 per Share –

Houlihan Lokey, Inc. (NYSE:HLI) (“Houlihan Lokey” or the “Company”) today reported financial results for its fiscal year and fourth quarter ended March 31, 2024. For the fiscal year, revenues were $1.91 billion, compared with $1.81 billion for the fiscal year ended March 31, 2023. For the fourth quarter ended March 31, 2024, revenues were $520 million, compared with $445 million for the fourth quarter ended March 31, 2023.

Net income was $280 million, or $4.11 per diluted share, for the fiscal year ended March 31, 2024, compared with $254 million, or $3.76 per diluted share, for the fiscal year ended March 31, 2023. Adjusted net income for the fiscal year ended March 31, 2024 was $310 million, or $4.49 per diluted share, compared with $315 million, or $4.54 per diluted share, for the fiscal year ended March 31, 2023.

Net income was $81 million, or $1.18 per diluted share, for the fourth quarter ended March 31, 2024, compared with $60 million, or $0.88 per diluted share, for the fourth quarter ended March 31, 2023. Adjusted net income for the fourth quarter ended March 31, 2024 was $88 million, or $1.27 per diluted share, compared with $77 million, or $1.11 per diluted share, for the fourth quarter ended March 31, 2023.

“We ended our fiscal year 2024 with our highest fourth quarter revenues ever. Revenues for the fourth quarter were up 17% versus the fourth quarter last year, and we ended the fiscal year up 6% versus last year; a good result in a challenging market. Our results for the quarter and fiscal year are a reflection of our diversified business model and the firm’s stability through the cycles. We enter fiscal 2025 with good momentum in our business and the most talented work force in the firm’s history, however, we are realistic about the pace of recovery in this sluggish M&A environment,” stated Scott Beiser, Chief Executive Officer of Houlihan Lokey.

Selected Financial Data

(In thousands, except per share data)

U.S. GAAP

Three Months Ended March 31,

 

Year Ended March 31,

2024

 

2023

 

2024

 

2023

Revenues by segment

 

 

 

 

 

 

 

Corporate Finance

$

287,579

 

 

$

256,425

 

$

1,106,826

 

 

$

1,127,126

Financial Restructuring

 

155,381

 

 

 

120,382

 

 

521,984

 

 

 

395,733

Financial and Valuation Advisory

 

77,496

 

 

 

67,960

 

 

285,594

 

 

 

286,588

Revenues

$

520,456

 

 

$

444,767

 

$

1,914,404

 

 

$

1,809,447

Operating expenses:

 

 

 

 

 

 

 

Employee compensation and benefits

$

329,525

 

 

$

282,937

 

$

1,213,589

 

 

$

1,147,879

Non-compensation expenses

 

88,234

 

 

 

71,206

 

 

337,954

 

 

 

319,830

Operating income

 

102,697

 

 

 

90,624

 

 

362,861

 

 

 

341,738

Other (income)/expense, net

 

(15,342

)

 

 

10,322

 

 

(27,678

)

 

 

17,738

Income before provision for income taxes

 

118,039

 

 

 

80,302

 

 

390,539

 

 

 

324,000

Provision for income taxes

 

36,962

 

 

 

20,642

 

 

110,238

 

 

 

69,777

Net income attributable to Houlihan Lokey, Inc.

$

81,077

 

 

$

59,660

 

$

280,301

 

 

$

254,223

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to Houlihan Lokey, Inc.

$

1.18

 

 

$

0.88

 

$

4.11

 

 

$

3.76

 

Revenues

For the fiscal year ended March 31, 2024, revenues were $1.91 billion, compared with $1.81 billion for the fiscal year ended March 31, 2023. For the fiscal year ended March 31, 2024, CF revenues decreased (2)%, Financial Restructuring (“FR”) revenues increased 32%, and Financial and Valuation Advisory (“FVA”) revenues remained relatively flat when compared with the fiscal year ended March 31, 2023.

For the fourth quarter ended March 31, 2024, revenues were $520 million, compared with $445 million for the fourth quarter ended March 31, 2023. For the fourth quarter ended March 31, 2024, CF revenues increased 12%, FR revenues increased 29%, and FVA revenues increased 14% when compared with the fourth quarter ended March 31, 2023.

Expenses

The Company’s employee compensation and benefits expenses, non-compensation expenses, and provision for income taxes during the periods presented and described below are on a GAAP and an adjusted basis.

 

U.S. GAAP

 

Adjusted (Non-GAAP) *

 

Year Ended March 31,

($ in thousands)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Expenses:

 

 

 

 

 

 

 

Employee compensation and benefits

$

1,213,589

 

 

$

1,147,879

 

 

$

1,177,355

 

 

$

1,112,809

 

% of Revenues

 

63.4

%

 

 

63.4

%

 

 

61.5

%

 

 

61.5

%

Non-compensation

$

337,954

 

 

$

319,830

 

 

$

314,081

 

 

$

272,534

 

% of Revenues

 

17.7

%

 

 

17.7

%

 

 

16.4

%

 

 

15.1

%

Provision for Income Taxes

$

110,238

 

 

$

69,777

 

 

$

129,850

 

 

$

113,150

 

% of Pre-Tax Income

 

28.2

%

 

 

21.5

%

 

 

29.5

%

 

 

26.4

%

*

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.

 

 

U.S. GAAP

 

Adjusted (Non-GAAP) *

 

Three Months Ended March 31,

($ in thousands)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Expenses:

 

 

 

 

 

 

 

Employee compensation and benefits

$

329,525

 

 

$

282,937

 

 

$

320,077

 

 

$

273,530

 

% of Revenues

 

63.3

%

 

 

63.6

%

 

 

61.5

%

 

 

61.5

%

Non-compensation

$

88,234

 

 

$

71,206

 

 

$

80,963

 

 

$

67,991

 

% of Revenues

 

17.0

%

 

 

16.0

%

 

 

15.6

%

 

 

15.3

%

Provision for Income Taxes

$

36,962

 

 

$

20,642

 

 

$

37,438

 

 

$

29,964

 

% of Pre-Tax Income

 

31.3

%

 

 

25.7

%

 

 

29.9

%

 

 

28.0

%

*

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.

 

Year Ended March 31, 2024 Compared to the Year Ended March 31, 2023

Employee compensation and benefits expenses were $1.21 billion for the fiscal year ended March 31, 2024, compared with $1.15 billion for the fiscal year ended March 31, 2023. This resulted in a GAAP compensation ratio of 63.4% for both the fiscal year ended March 31, 2024 and March 31, 2023. Adjusted employee compensation and benefits expenses were $1.18 billion for the fiscal year ended March 31, 2024, compared with $1.11 billion for the fiscal year ended March 31, 2023. This resulted in an adjusted compensation ratio of 61.5% for both the fiscal year ended March 31, 2024 and March 31, 2023. The increase in GAAP and adjusted employee compensation and benefits expenses was primarily a result of an increase in revenues for the year when compared with the prior year.

Non-compensation expenses were $338 million for the fiscal year ended March 31, 2024, compared with $320 million for the fiscal year ended March 31, 2023. The increase in GAAP non-compensation expenses was primarily a result of an increase in rent expense and professional fees, partially offset by a decrease in depreciation and amortization. Adjusted non-compensation expenses were $314 million for the fiscal year ended March 31, 2024, compared with $273 million for the fiscal year ended March 31, 2023. The increase in adjusted non-compensation expenses was primarily a result of an increase in rent expense and travel, meals, and entertainment expenses, partially offset by a decrease in other operating expenses.

The provision for income taxes was $110 million, representing an effective tax rate of 28.2% for the fiscal year ended March 31, 2024, compared with $70 million, representing an effective tax rate of 21.5%, for the fiscal year ended March 31, 2023. The increase in the Company's tax rate during the fiscal year ended March 31, 2024 relative to the fiscal year ended March 31, 2023 was primarily a result of decreased stock compensation deductions and increased taxes due to foreign operations, as well as the release of the provision for an uncertain tax position as a result of the successful closure of a state audit that occurred during the fiscal year ended March 31, 2023 that did not repeat in the fiscal year ended March 31, 2024. The adjusted provision for income taxes was $130 million, representing an adjusted effective tax rate of 29.5%, for the fiscal year ended March 31, 2024, compared with $113 million, representing an adjusted effective tax rate of 26.4%, for the fiscal year ended March 31, 2023.

Quarter Ended March 31, 2024 Compared to the Quarter Ended March 31, 2023

Employee compensation and benefits expenses were $330 million for the fourth quarter ended March 31, 2024, compared with $283 million for the fourth quarter ended March 31, 2023. This resulted in a GAAP compensation ratio of 63.3% for the fourth quarter ended March 31, 2024, compared with 63.6% for the fourth quarter ended March 31, 2023. Adjusted employee compensation and benefits expenses were $320 million for the fourth quarter ended March 31, 2024, compared with $274 million for the fourth quarter ended March 31, 2023. This resulted in an adjusted compensation ratio of 61.5% for both the fourth quarter ended March 31, 2024 and March 31, 2023. The increase in GAAP and adjusted employee compensation and benefits expenses was primarily a result of an increase in revenues when compared with the same quarter last year.

Non-compensation expenses were $88 million for the fourth quarter ended March 31, 2024, compared with $71 million for the fourth quarter ended March 31, 2023. The increase in GAAP non-compensation expenses was primarily a result of an increase in professional fees and travel, meals, and entertainment expenses. Adjusted non-compensation expenses were $81 million for the quarter ended March 31, 2024, compared with $68 million for the fourth quarter ended March 31, 2023. The increase in adjusted non-compensation expenses was primarily a result of an increase in travel, meals, and entertainment expenses and an increase in rent expense.

The provision for income taxes was $37 million, representing an effective tax rate of 31.3%, for the fourth quarter ended March 31, 2024, compared with $21 million, representing an effective tax rate of 25.7%, for the fourth quarter ended March 31, 2023. The increase in the Company's tax rate during the quarter ended March 31, 2024 relative to the quarter ended March 31, 2023 was primarily a result of increased taxes due to foreign operations. The adjusted provision for income taxes was $37 million, representing an adjusted effective tax rate of 29.9%, for the fourth quarter ended March 31, 2024, compared with $30 million, representing an adjusted effective tax rate of 28.0%, for the fourth quarter ended March 31, 2023.

Segment Reporting for the Fourth Quarter

Corporate Finance

CF revenues were $288 million for the fourth quarter ended March 31, 2024, compared with $256 million for the fourth quarter ended March 31, 2023. Revenues increased primarily due to an increase in the average transaction fee on closed transactions, offset by a decrease in the number of closed transactions. The increase in the average transaction fee was driven by the size and timing of transactions that closed during the quarter, and does not represent a trend in the average fee on closed transactions.

 

Three Months Ended March 31,

 

Year Ended March 31,

($ in thousands)

2024

 

2023

 

2024

 

2023

Corporate Finance

 

 

 

 

 

 

 

Revenues

$

287,579

 

$

256,425

 

$

1,106,826

 

$

1,127,126

# of Managing Directors

 

223

 

 

217

 

 

223

 

 

217

# of Closed transactions (1)

 

121

 

 

140

 

 

450

 

 

503

 

Financial Restructuring

FR revenues were $155 million for the fourth quarter ended March 31, 2024, compared with $120 million for the fourth quarter ended March 31, 2023. Revenues increased primarily due to an increase in the average transaction fee on closed transactions, which was driven by the size and timing of transactions that closed during the quarter, and does not represent a trend in the average fee on closed transactions.

 

Three Months Ended March 31,

 

Year Ended March 31,

($ in thousands)

2024

 

2023

 

2024

 

2023

Financial Restructuring

 

 

 

 

 

 

 

Revenues

$

155,381

 

$

120,382

 

$

521,984

 

$

395,733

# of Managing Directors

 

54

 

 

57

 

 

54

 

 

57

# of Closed transactions (1)

 

35

 

 

38

 

 

126

 

 

106

 

Financial and Valuation Advisory

FVA revenues were $77 million for the quarter ended March 31, 2024, compared with $68 million for the fourth quarter ended March 31, 2023. Revenues increased primarily due to an increase in the number of fee events. The increase in the number of Fee Events was driven by improvements in the M&A markets, which affected one or more of the service lines within our FVA business.

 

Three Months Ended March 31,

 

Year Ended March 31,

($ in thousands)

2024

 

2023

 

2024

 

2023

Financial and Valuation Advisory

 

 

 

 

 

 

 

Revenues

$

77,496

 

$

67,960

 

$

285,594

 

$

286,588

# of Managing Directors

 

39

 

 

39

 

 

39

 

 

39

# of Fee Events (1)

 

1,025

 

 

957

 

 

2,178

 

 

2,257

(1)

A Fee Event includes any engagement that involves revenue activity during the measurement period based on a revenue minimum of one thousand dollars. References in this press release to closed transactions should be understood to be the same as transactions that are “effectively closed” as described in our periodic reports on Forms 10-K and 10-Q.

 

Other Announcements

The Board of Directors of the Company declared a regular quarterly cash dividend of $0.57 per share of Class A and Class B common stock. The dividend will be payable on June 15, 2024 to stockholders of record as of the close of business on June 3, 2024.

Investor Conference Call and Webcast

The Company will host a conference call and live webcast at 5:00 p.m. Eastern Time on Wednesday, May 8, 2024, to discuss its full year and fourth quarter fiscal 2024 results. The number to call is 1-800-267-6316 (domestic) or 1-203-518-9783 (international) and entering the conference ID: HLOKEY. 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 May 8, 2024 through May 15, 2024, by dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and entering the passcode 11155795#. 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. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. The Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Non-GAAP Financial Measures

Adjusted net income, total and on a per share basis, and certain adjusted items used to determine adjusted net income, 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. The adjusted items included in this earnings press release as calculated by the Company are not necessarily comparable to similarly titled measures reported by other companies. Additionally, these adjusted amounts are 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 these adjusted items and a reconciliation with comparable GAAP items, 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, Inc. (NYSE:HLI) is a global investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, and financial and valuation advisory. Houlihan Lokey serves corporations, institutions, and governments worldwide with offices in the Americas, 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. The firm is the No. 1 investment bank for all global M&A transactions, the No. 1 M&A advisor for the past nine consecutive years in the U.S., the No. 1 global restructuring advisor for the past ten consecutive years, and the No. 1 global M&A fairness opinion advisor over the past 25 years, all based on number of transactions and according to data provided by LSEG (formerly Refinitiv).

For more information, please visit www.HL.com.

Appendix

Condensed Consolidated Balance Sheets (Unaudited) Condensed Consolidated Statements of Income (Unaudited) Reconciliation of GAAP to Adjusted Financial Information (Unaudited)

 

HOULIHAN LOKEY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

   

(In thousands, except share data and par value)

March 31, 2024

 

March 31, 2023

Assets

 

 

 

Cash and cash equivalents

$

721,235

 

 

$

714,439

 

Restricted cash

 

619

 

 

 

373

 

Investment securities

 

38,005

 

 

 

37,309

 

Accounts receivable, net of allowance for credit losses

 

199,630

 

 

 

182,029

 

Unbilled work in process, net of allowance for credit losses

 

192,012

 

 

 

115,045

 

Income taxes receivable

 

32,856

 

 

 

17,693

 

Deferred income taxes

 

90,064

 

 

 

104,941

 

Property and equipment, net

 

136,701

 

 

 

88,345

 

Operating lease right-of-use assets

 

344,024

 

 

 

333,877

 

Goodwill

 

1,127,497

 

 

 

1,087,784

 

Other intangible assets, net

 

197,439

 

 

 

203,370

 

Other assets

 

90,677

 

 

 

83,609

 

Total assets

$

3,170,759

 

 

$

2,968,814

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

Liabilities:

 

 

 

Accrued salaries and bonuses

$

726,031

 

 

$

765,877

 

Accounts payable and accrued expenses

 

114,171

 

 

 

113,421

 

Deferred income

 

33,139

 

 

 

40,695

 

Deferred income taxes

 

7,505

 

 

 

544

 

Operating lease liabilities

 

415,412

 

 

 

374,869

 

Other liabilities

 

37,751

 

 

 

60,111

 

Total liabilities

 

1,334,009

 

 

 

1,355,517

 

 

 

 

 

Stockholders' equity:

 

 

 

Class A common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 52,348,511 and 50,638,924 shares, respectively

 

52

 

 

 

51

 

Class B common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 16,746,676 and 18,048,345 shares, respectively

 

17

 

 

 

18

 

Additional paid-in capital

 

739,870

 

 

 

642,970

 

Retained earnings

 

1,163,419

 

 

 

1,033,072

 

Accumulated other comprehensive loss

 

(66,608

)

 

 

(62,814

)

Total stockholders’ equity

 

1,836,750

 

 

 

1,613,297

 

Total liabilities and stockholders’ equity

$

3,170,759

 

 

$

2,968,814

 

 

HOULIHAN LOKEY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

   

 

Three Months Ended March 31,

 

Year Ended March 31,

(In thousands, except share and per share data)

 

2024

 

 

2023

 

 

2024

 

 

2023

Revenues

$

520,456

 

 

$

444,767

 

$

1,914,404

 

 

$

1,809,447

Operating expenses:

 

 

 

 

 

 

 

Employee compensation and benefits

 

329,525

 

 

 

282,937

 

 

1,213,589

 

 

 

1,147,879

Travel, meals, and entertainment

 

17,804

 

 

 

13,391

 

 

65,298

 

 

 

51,082

Rent

 

20,661

 

 

 

17,911

 

 

76,079

 

 

 

55,838

Depreciation and amortization

 

8,261

 

 

 

6,347

 

 

28,536

 

 

 

58,221

Information technology and communications

 

16,849

 

 

 

15,201

 

 

60,168

 

 

 

54,125

Professional fees

 

13,808

 

 

 

9,078

 

 

49,077

 

 

 

32,940

Other operating expenses

 

10,851

 

 

 

9,278

 

 

58,796

 

 

 

67,624

Total operating expenses

 

417,759

 

 

 

354,143

 

 

1,551,543

 

 

 

1,467,709

Operating income

 

102,697

 

 

 

90,624

 

 

362,861

 

 

 

341,738

Other (income)/expense, net

 

(15,342

)

 

 

10,322

 

 

(27,678

)

 

 

17,738

Income before provision for income taxes

 

118,039

 

 

 

80,302

 

 

390,539

 

 

 

324,000

Provision for income taxes

 

36,962

 

 

 

20,642

 

 

110,238

 

 

 

69,777

Net income

$

81,077

 

 

$

59,660

 

 

280,301

 

 

 

254,223

 

 

 

 

 

 

 

 

Weighted average shares of common stock outstanding:

Basic

 

64,579,004

 

 

 

63,351,104

 

 

64,337,975

 

 

 

63,358,408

Fully diluted

 

68,492,023

 

 

 

68,107,465

 

 

68,159,390

 

 

 

67,586,263

Earnings per share attributable to Houlihan Lokey, Inc.

 

 

 

 

 

 

 

Basic

$

1.26

 

 

$

0.94

 

$

4.36

 

 

$

4.01

Fully diluted

$

1.18

 

 

$

0.88

 

$

4.11

 

 

$

3.76

 

HOULIHAN LOKEY, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO ADJUSTED FINANCIAL INFORMATION (UNAUDITED)

   

 

Three Months Ended March 31,

 

Year Ended March 31,

(In thousands, except share and per share data)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenues

$

520,456

 

 

$

444,767

 

 

$

1,914,404

 

 

$

1,809,447

 

 

 

 

 

 

 

 

 

Employee compensation and benefits expenses

 

 

 

 

 

 

 

Employee compensation and benefits expenses (GAAP)

$

329,525

 

 

$

282,937

 

 

$

1,213,589

 

 

$

1,147,879

 

Less: Acquisition related retention payments

 

(9,448

)

 

 

(9,407

)

 

 

(36,234

)

 

 

(35,070

)

Employee compensation and benefits expenses (adjusted)

 

320,077

 

 

 

273,530

 

 

 

1,177,355

 

 

 

1,112,809

 

 

 

 

 

 

 

 

 

Non-compensation expenses

 

 

 

 

 

 

 

Non-compensation expenses (GAAP)

$

88,234

 

 

$

71,206

 

 

$

337,954

 

 

$

319,830

 

Less: Acquisition related legal structure reorganization

 

(3,514

)

 

 

—

 

 

 

(6,117

)

 

 

—

 

Less: Integration and acquisition related costs

 

(1,278

)

 

 

—

 

 

 

(7,002

)

 

 

(2,325

)

Less: Acquisition amortization

 

(2,479

)

 

 

(3,215

)

 

 

(10,754

)

 

 

(44,971

)

Non-compensation expenses (adjusted)

 

80,963

 

 

 

67,991

 

 

 

314,081

 

 

 

272,534

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

 

 

 

 

Operating income (GAAP)

$

102,697

 

 

$

90,624

 

 

$

362,861

 

 

$

341,738

 

Plus: Adjustments (1)

 

16,719

 

 

 

12,622

 

 

 

60,107

 

 

 

82,366

 

Operating income (adjusted)

 

119,416

 

 

 

103,246

 

 

 

422,968

 

 

 

424,104

 

 

 

 

 

 

 

 

 

Other (income)/expense, net

 

 

 

 

 

 

 

Other (income)/expense, net (GAAP)

$

(15,342

)

 

$

10,322

 

 

$

(27,678

)

 

$

17,738

 

Less: Warrant revaluation

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,264

)

Less: SPAC wind-down write-off

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,742

)

Less: Settlement of SEC investigation

 

—

 

 

 

(15,000

)

 

 

—

 

 

 

(15,000

)

Plus/(less): Change in acquisition earnout liability fair value

 

9,557

 

 

 

738

 

 

 

10,373

 

 

 

(2,103

)

Other income, net (adjusted)

 

(5,785

)

 

 

(3,940

)

 

 

(17,305

)

 

 

(4,371

)

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

 

 

 

 

 

Provision for income taxes (GAAP)

$

36,962

 

 

$

20,642

 

 

$

110,238

 

 

$

69,777

 

Plus: Impact of the excess tax benefit for stock vesting

 

—

 

 

 

—

 

 

 

7,299

 

 

 

8,102

 

Plus: Release of the provision for an uncertain tax position as a result of the successful closure of a state audit

 

—

 

 

 

—

 

 

 

—

 

 

 

5,762

 

Plus: Release of valuation allowance

 

—

 

 

 

5,881

 

 

 

—

 

 

 

5,881

 

Less: Non-deductible acquisition related costs

 

(1,676

)

 

 

—

 

 

 

(2,355

)

 

 

—

 

Adjusted provision for income taxes

 

35,286

 

 

 

26,523

 

 

 

115,182

 

 

 

89,522

 

Plus: Resulting tax impact (2)

 

2,152

 

 

 

3,441

 

 

 

14,668

 

 

 

23,628

 

Provision for income taxes (adjusted)

 

37,438

 

 

 

29,964

 

 

 

129,850

 

 

 

113,150

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

Net income (GAAP)

$

81,077

 

 

$

59,660

 

 

$

280,301

 

 

$

254,223

 

Plus: Adjustments (3)

 

6,686

 

 

 

17,562

 

 

 

30,122

 

 

 

61,102

 

Net income (adjusted)

 

87,763

 

 

 

77,222

 

 

 

310,423

 

 

 

315,325

 

 

 

 

 

 

 

 

 

Fully diluted shares outstanding

 

 

 

 

 

 

 

Fully diluted shares outstanding (GAAP)

 

68,492,023

 

 

 

68,107,465

 

 

 

68,159,390

 

 

 

67,586,263

 

Plus: Impact of unvested GCA retention and deferred share awards

 

755,020

 

 

 

1,591,157

 

 

 

1,034,118

 

 

 

1,927,786

 

Fully diluted shares outstanding (adjusted)

 

69,247,043

 

 

 

69,698,622

 

 

 

69,193,508

 

 

 

69,514,049

 

 

 

 

 

 

 

 

 

Diluted EPS attributable to Houlihan Lokey, Inc. (GAAP)

$

1.18

 

 

$

0.88

 

 

$

4.11

 

 

$

3.76

 

Diluted EPS attributable to Houlihan Lokey, Inc. (adjusted)

$

1.27

 

 

$

1.11

 

 

$

4.49

 

 

$

4.54

 

(1)

The aggregate of adjustments from employee compensation and benefits and non-compensation expenses.

(2)

Reflects the tax impact of utilizing the adjusted effective tax rate on the non-tax adjustments identified above.

(3)

Consists of all adjustments identified above net of the associated tax impact.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240508665273/en/

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