LAZ Lazard Inc

• Financial Advisory reports record first-half adjusted net revenue of $855 million
• Asset Management reports quarter-end AUM of $245 billion
• Investing in talent firm-wide to support long-term growth strategy

Lazard, Inc. (NYSE: LAZ) today reported both net revenue and adjusted net revenue1 of $685 million for the quarter ended June 30, 2024, and net revenue of $1,450 million and adjusted net revenue1 of $1,431 million for the first half of 2024.

On a U.S. GAAP basis, second-quarter and first-half 2024 net income were $50 million or $0.49 per share, diluted, and $86 million or $0.84 per share, diluted, respectively. Adjusted net income1 was $53 million or $0.52 per share, diluted, for the second quarter of 2024, and $119 million or $1.17 per share, diluted, for the first half of 2024.

"Lazard’s record revenue in Financial Advisory for the first-half of 2024 demonstrates the ongoing, successful execution of our long-term growth strategy,” said Peter R. Orszag, Chief Executive Officer, Lazard. “Our Asset Management business continues to produce solid results as we effectively serve clients while evolving to meet their investment priorities. Overall, our performance reflects an unwavering focus on delivering excellence in advisory and investment solutions for our clients, our renewed ambition for growth, and our increasingly commercial and collegial culture.”

(Selected results, $ in millions,

Three Months Ended

 

Six Months Ended

except per share data and AUM)

June 30,

 

June 30,

U.S. GAAP Financial Measures

2024

 

2023

 

%'24-'23

 

2024

 

2023

 

% '24-'23

Net Revenue

$685

 

$643

 

 

7%

 

$1,450

 

$1,186

 

 

22%

Financial Advisory

$411

 

$352

 

 

17%

 

$865

 

$630

 

 

37%

Asset Management

$285

 

$288

 

 

(1)%

 

$581

 

$572

 

 

2%

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

$50

 

($124

)

 

NM

 

$86

 

($146

)

 

NM

Per share, diluted

$0.49

 

($1.41

)

 

NM

 

$0.84

 

($1.68

)

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Financial Measures1

 

 

 

 

 

 

 

 

 

 

 

Net Revenue

$685

 

$620

 

 

10%

 

$1,431

 

$1,147

 

 

25%

Financial Advisory

$408

 

$344

 

 

19%

 

$855

 

$618

 

 

38%

Asset Management

$265

 

$267

 

 

(1)%

 

$541

 

$532

 

 

2%

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$53

 

$23

 

 

133%

 

$119

 

$–

 

 

NM

Per share, diluted

$0.52

 

$0.24

 

 

117%

 

$1.17

 

$–

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

Assets Under Management ("AUM")

($ in billions)

 

 

 

 

 

 

 

 

 

 

 

Ending AUM

$245

 

$239

 

 

2%

 

 

 

 

 

 

Average AUM

$245

 

$235

 

 

4%

 

$246

 

$231

 

 

6%

 

 

 

 

 

 

 

 

 

 

 

 

 

Note: Endnotes are on page 5 of this release. Reconciliations of U.S. GAAP to Adjusted results are shown on pages 13-15.

NET REVENUE

Financial Advisory

Financial Advisory net revenue and adjusted net revenue1 were $411 million and $408 million for the second quarter of 2024, 17% and 19% higher than the second quarter of 2023, respectively.

Financial Advisory net revenue and adjusted net revenue1 were $865 million and $855 million for the first half of 2024, 37% and 38% higher than the first half of 2023, respectively.

During and since the second quarter of 2024, Lazard has been engaged in significant and complex M&A transactions globally, including the following (clients are in italics): WestRock's $33.5 billion combination with Smurfit Kappa; Renault’s creation of HORSE Powertrain Limited with Geely and the sale of a 10% equity interest to Saudi Aramco, valuing the new company at €7.4 billion; Rivian’s $5 billion strategic investment from Volkswagen Group; Vertex Pharmaceuticals' $4.9 billion acquisition of Alpine Immune Sciences; Synlab's $4.3 billion acquisition by Cinven; KPS Capital Partners’ €3.5 acquisition of Innomotics from Siemens AG; Roquette Freres’ $2.9 billion agreement to acquire IFF Pharma Solutions; Neiman Marcus Group’s $2.7 billion sale to HBC, parent of Saks Fifth Avenue; Sanofi's $2.4 billion acquisition of Inhibrx; HASI's $2 billion strategic partnership with KKR to invest in sustainable infrastructure projects; Elecnor Group’s sale of its Spanish based renewables business Enerfin to Statkraft for €1.8 billion; Air Products & Chemicals' $1.8 billion sale of its LNG business to Honeywell International Inc.; Thales’ sale of its Ground Transportation Systems business to Hitachi Rail, for an enterprise value of €1.7 billion; Bpost’s $1.3 billion acquisition of Staci; CVC Capital Partners' €600 million acquisition of La Piadineria; Ultra Maritime's $550 million sale of its Signature Management & Power Business to ESCO Technologies, Inc.; EIG and West Burton Energy’s £450 million sale of is operational CCGT and BESS to TotalEnergies; Allen & Overy LLP's combination with Shearman & Sterling and CVC Capital Partners’ investment in Hempel.

Lazard's preeminent restructuring and liability management practice has been engaged in a broad range of complex restructuring and debt advisory assignments, including company roles involving Belk, Enviva and LivePerson and creditor and/or related party roles involving Endo Pharmaceuticals, Hilding Anders, JOANN, KLDiscovery, Rite Aid and SVB Financial Group.

Our capital advisory and solutions practices remain active and engaged in assignments, including Ceva Sante Animale’s €2.4 billion Term Loan B repricing and resizing; CVC Capital Partners on a single asset continuation fund; Eir Partners’ closing of $496 million Investment Program II; Exosens’ initial public offer on Euronext Paris valuing the company at $1.1 billion; Kingswood Capital's closing of $1.5 billion Kingswood Capital Opportunities Fund III; Morrisons, a portfolio company of CD&R, on its £1.1 billion debt reduction exercise; and UL Standards & Engagement on the IPO of UL Solutions. Our sovereign advisory practice continues to be active in advising governments and sovereign entities across developed and emerging markets.

For a list of publicly announced transactions please visit our website.

Asset Management

For the second quarter of 2024, Asset Management net revenue and adjusted net revenue1 were $285 million and $265 million, respectively, both 1% lower than the second quarter of 2023.

Management fees and other revenue, on an adjusted basis1, were $263 million for the second quarter of 2024, 1% higher and 2% lower than the second quarter of 2023 and first quarter of 2024, respectively.

Incentive fees, on an adjusted basis1, were $3 million for the second quarter of 2024, compared to $6 million for the second quarter of 2023.

Average assets under management (AUM) were $245 billion for the second quarter of 2024, 4% higher than the second quarter of 2023, and 1% lower than the first quarter of 2024, respectively.

For the first half of 2024, Asset Management net revenue and adjusted net revenue1 were $581 million and $541 million, respectively, both 2% higher than the first half of 2023.

Management fees and other revenue, on an adjusted basis1, were $531 million for the first half of 2024, 2% higher than the first half of 2023.

Incentive fees, on an adjusted basis1, were $10 million for the first half of 2024, compared to $11 million for the first half of 2023.

Average AUM for the first half of 2024 was $246 billion, 6% higher than the first half of 2023. AUM as of June 30, 2024, was $245 billion, 2% lower than March 31, 2024, and 2% higher than June 30, 2023, respectively. The sequential change from March 31, 2024 was driven by market appreciation of $2.5 billion, foreign exchange depreciation of $1.7 billion and net outflows of $6.6 billion.

OPERATING EXPENSES

Compensation and Benefits Expense

For the second quarter of 2024, compensation and benefits expense on a U.S. GAAP and adjusted basis1 were $453 million and $452 million, respectively, compared to $572 million and $424 million, respectively, for the second quarter of 2023. The adjusted compensation ratio2 for the second quarter of 2024 was 66.0%, compared to the second-quarter 2023 ratio of 68.4%.

For the first half of 2024, compensation and benefits expense on a U.S. GAAP and adjusted basis1 were $1,003 million and $945 million, respectively, compared to $1,022 million and $823 million, respectively, for the first half of 2023.

We focus on the adjusted compensation ratio to manage costs, balancing a view of current conditions in the market for talent alongside our objective to drive long-term shareholder value. Our goal remains to deliver an adjusted compensation ratio over the cycle in the mid- to high-50s percentage range, while targeting a consistent deferral policy.

Non-Compensation Expenses

For the second quarter of 2024, non-compensation expenses on a U.S. GAAP basis were $169 million, 7% lower than the second quarter of 2023 which included charges associated with our cost-saving initiatives. On an adjusted basis1, non-compensation expenses were $149 million, 3% higher than the second quarter of 2023, primarily reflecting higher professional services and technology spending.

The adjusted non-compensation ratio3 was 21.7% for the second quarter of 2024, compared to 23.2% for the second quarter of 2023.

For the first half of 2024, non-compensation expenses on a U.S. GAAP and adjusted basis1 were $329 million and $283 million, respectively, 6% and 1% lower than the first half of 2023, respectively.

The adjusted non-compensation ratio3 was 19.8% for the first half of 2024, compared to 24.9% for the first half of 2023.

Our goal remains to deliver an adjusted non-compensation ratio between 16% to 20% over the cycle.

TAXES

The provisions for income taxes, on a U.S. GAAP and adjusted basis1 were $12 million and $9 million, respectively, for the second quarter of 2024. The effective tax rate on an adjusted basis1 was 14.0% for the second quarter of 2024, compared to 31.2% for the second quarter of 2023.

The provisions for income taxes, on a U.S. GAAP and adjusted basis1 were $26 million and $41 million, respectively, for the first half of 2024. The effective tax rate on an adjusted basis1 was 25.5% for the first half of 2024, compared to 67.8% for the first half of 2023.

CAPITAL MANAGEMENT AND BALANCE SHEET

In the second quarter of 2024, Lazard returned $70 million to shareholders, which included: $45 million in dividends; $19 million in share repurchases of our common stock; and $6 million in satisfaction of employee tax obligations in lieu of share issuances upon vesting of equity grants.

In the first half of 2024, Lazard returned $192 million to shareholders, which included: $89 million in dividends; $41 million in share repurchases of our common stock; and $62 million in satisfaction of employee tax obligations in lieu of share issuances upon vesting of equity grants.

During the first half of 2024, we repurchased 1.1 million shares at an average price of $38.66. On July 24, 2024, our Board of Directors authorized additional share repurchase of $200 million, which expires as of December 31, 2026, bringing our total outstanding share repurchase authorization to approximately $360 million.

On July 24, 2024, Lazard declared a quarterly dividend of $0.50 per share on its outstanding common stock. The dividend is payable on August 16, 2024, to stockholders of record on August 5, 2024.

Lazard’s financial position remains strong. As of June 30, 2024, our cash and cash equivalents were $848 million.

ENDNOTES

Beginning in the first quarter of 2024, Lazard has updated the names of certain non-U.S. GAAP ("non-GAAP") measures and metrics. The nomenclature change did not result in any change to the components of our non-GAAP measures and metrics compared to prior periods. Reconciliations of U.S. GAAP to Adjusted results are shown on pages 13-15.

1

A non-GAAP measure. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. See attached financial schedules and related notes for a detailed explanation of adjustments to corresponding U.S. GAAP results. We believe that presenting our results on an adjusted basis, in addition to the U.S. GAAP results, is a meaningful and useful way to compare our operating results across periods.

 

2

A non-GAAP measure which represents adjusted compensation and benefits expense as a percentage of adjusted net revenue.

 

3

A non-GAAP measure which represents adjusted non-compensation expenses as a percentage of adjusted net revenue.

CONFERENCE CALL

Lazard will host a conference call at 8:00 a.m. ET on July 25, 2024, to discuss the company’s financial results for the second quarter and first-half of 2024. The conference call can be accessed via a live audio webcast available through Lazard’s Investor Relations website at www.lazard.com, or by dialing 1 800-343-4136 (toll-free, U.S. and Canada) or +1 203-518-9843 (outside of the U.S. and Canada), 15 minutes prior to the start of the call. Conference ID: LAZQ224.

A replay of the conference call will be available by 10:00 a.m. ET, July 25, 2024, via the Lazard Investor Relations website at www.lazard.com, or by dialing +1 800-839-5637 (toll-free, U.S. and Canada) or +1 402-220-2562 (outside of the U.S. and Canada).

ABOUT LAZARD

Founded in 1848, Lazard is one of the world's preeminent financial advisory and asset management firms, with operations in North and South America, Europe, the Middle East, Asia, and Australia. Lazard provides advice on mergers and acquisitions, capital markets and capital solutions, restructuring and liability management, geopolitics, and other strategic matters, as well as asset management and investment solutions to institutions, corporations, governments, partnerships, family offices, and high net worth individuals. For more information, please visit www.lazard.com.

Cautionary Note Regarding Forward-Looking Statements:

This press release contains forward-looking statements. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “target,” “goal,” or “continue,” and the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our strategies, business plans and initiatives and anticipated trends in our business. These forward-looking statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by these forward-looking statements.

These factors include, but are not limited to, those discussed in our Annual Report on Form 10-K under Item 1A “Risk Factors,” and also discussed from time to time in our reports on Forms 10-Q and 8-K, including the following:

• Adverse general economic conditions or adverse conditions in global or regional financial markets;
• A decline in our revenues, for example due to a decline in overall mergers and acquisitions (M&A) activity, our share of the M&A market or our assets under management (AUM);
• Losses caused by financial or other problems experienced by third parties;
• Losses due to unidentified or unanticipated risks;
• A lack of liquidity, i.e., ready access to funds, for use in our businesses; and
• Competitive pressure on our businesses and on our ability to retain and attract employees at current compensation levels
• In the event of a change or adverse interpretation of relevant income tax law, regulation or treaty, or a failure to qualify for treaty benefits, or in the event tax authorities challenge our tax computations or classifications.

Although we believe the statements reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, achievements or events. Neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. We are under no duty to update any of these forward-looking statements after the date of this release to conform our prior statements to actual results or revised expectations and we do not intend to do so.

Lazard, Inc. is committed to providing timely and accurate information to the investing public, consistent with our legal and regulatory obligations. To that end, Lazard and its operating companies use their websites, and other social media sites to convey information about their businesses, including the anticipated release of quarterly financial results, quarterly financial, statistical and business-related information, and the posting of updates of assets under management in various mutual funds, hedge funds and other investment products managed by Lazard Asset Management LLC and Lazard Frères Gestion SAS. Investors can link to Lazard and its operating company websites through www.lazard.com.

***

LAZ-EPE

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(U.S. GAAP - unaudited)

 

 

Three Months Ended

 

% Change From

 

June 30,

 

March 31,

 

June 30,

 

March 31,

 

June 30,

($ in thousands, except per share data)

2024

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

Total revenue

$707,991

 

 

$785,481

 

 

$662,318

 

 

(10%)

 

7%

Interest expense

(22,642

)

 

(20,728

)

 

(19,204

)

 

 

 

 

Net revenue

685,349

 

 

764,753

 

 

643,114

 

 

(10%)

 

7%

Operating expenses:

 

 

 

 

 

 

 

 

 

Compensation and benefits

452,560

 

 

550,824

 

 

572,231

 

 

(18%)

 

(21%)

 

 

 

 

 

 

 

 

 

 

Occupancy and equipment

32,031

 

 

32,857

 

 

32,800

 

 

 

 

 

Marketing and business development

25,493

 

 

23,599

 

 

28,582

 

 

 

 

 

Technology and information services

46,406

 

 

44,917

 

 

51,370

 

 

 

 

 

Professional services

23,734

 

 

19,880

 

 

21,402

 

 

 

 

 

Fund administration and outsourced services

27,114

 

 

26,140

 

 

28,968

 

 

 

 

 

Amortization and other acquisition-related costs

68

 

 

68

 

 

95

 

 

 

 

 

Other

14,303

 

 

11,907

 

 

17,739

 

 

 

 

 

Non-compensation expenses

169,149

 

 

159,368

 

 

180,956

 

 

6%

 

(7%)

Operating expenses

621,709

 

 

710,192

 

 

753,187

 

 

(12%)

 

(17%)

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

63,640

 

 

54,561

 

 

(110,073

)

 

17%

 

NM

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

11,587

 

 

14,337

 

 

10,303

 

 

(19%)

 

12%

Net income (loss)

52,053

 

 

40,224

 

 

(120,376

)

 

29%

 

NM

Net income attributable to noncontrolling interests

2,144

 

 

4,469

 

 

3,637

 

 

 

 

 

Net income (loss) attributable to Lazard, Inc.

$49,909

 

 

$35,755

 

 

($124,013

)

 

40%

 

NM

 

 

 

 

 

 

 

 

 

 

Attributable to Lazard, Inc. Common Stockholders:

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

92,886,364

 

 

91,260,465

 

 

88,729,654

 

 

2%

 

5%

Diluted

100,627,867

 

 

99,351,769

 

 

88,729,654

 

 

1%

 

13%

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

Basic

$0.53

 

 

$0.38

 

 

($1.41

)

 

39%

 

NM

Diluted

$0.49

 

 

$0.35

 

 

($1.41

)

 

40%

 

NM

 

Note: For the three month periods ended June 30, 2024, March 31, 2024 and June 30, 2023, Financial Advisory net revenue was $411,308, $453,507 and $352,477, respectively; Asset Management net revenue was $285,487, $295,476 and $288,313, respectively; Corporate net revenue (loss) was ($11,446), $15,770 and $2,324, respectively.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(U.S. GAAP - unaudited)

 

 

Six Months Ended

 

June 30,

 

June 30,

 

 

($ in thousands, except per share data)

2024

 

2023

 

% Change

 

 

 

 

 

 

Total revenue

$1,493,472

 

 

$1,224,229

 

 

22%

Interest expense

(43,370

)

 

(38,679

)

 

 

Net revenue

1,450,102

 

 

1,185,550

 

 

22%

Operating expenses:

 

 

 

 

 

Compensation and benefits

1,003,384

 

 

1,022,198

 

 

(2%)

 

 

 

 

 

 

Occupancy and equipment

64,888

 

 

64,573

 

 

 

Marketing and business development

49,092

 

 

51,344

 

 

 

Technology and information services

91,323

 

 

95,410

 

 

 

Professional services

43,614

 

 

45,728

 

 

 

Fund administration and outsourced services

53,254

 

 

55,544

 

 

 

Amortization and other acquisition-related costs

136

 

 

143

 

 

 

Other

26,210

 

 

38,042

 

 

 

Non-compensation expenses

328,517

 

 

350,784

 

 

(6%)

Benefit pursuant to tax receivable agreement

–

 

 

(40,435

)

 

 

Operating expenses

1,331,901

 

 

1,332,547

 

 

–%

 

 

 

 

 

 

Operating income (loss)

118,201

 

 

(146,997

)

 

NM

 

 

 

 

 

 

Provision (benefit) for income taxes

25,924

 

 

(11,422

)

 

NM

Net income (loss)

92,277

 

 

(135,575

)

 

NM

Net income attributable to noncontrolling interests

6,613

 

 

10,610

 

 

 

Net income (loss) attributable to Lazard, Inc.

$85,664

 

 

($146,185

)

 

NM

 

 

 

 

 

 

Attributable to Lazard, Inc. Common Stockholders:

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

Basic

92,073,414

 

 

88,160,753

 

 

4%

Diluted

99,989,817

 

 

88,160,753

 

 

13%

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

Basic

$0.91

 

 

($1.68

)

 

NM

Diluted

$0.84

 

 

($1.68

)

 

NM

 

Note: For the six month periods ended June 30, 2024 and June 30, 2023, Financial Advisory net revenue was $864,815 and $630,051, respectively; Asset Management net revenue was $580,963 and $572,357, respectively; Corporate net revenue (loss) was $4,324 and ($16,858), respectively.

CONDENSED CONSOLIDATED

STATEMENT OF FINANCIAL CONDITION

(U.S. GAAP - unaudited)

 

 

As of

 

June 30,

 

December 31,

($ in thousands)

2024

 

2023

 

 

 

 

ASSETS

 

 

 

 

Cash and cash equivalents

$847,555

 

 

$971,316

 

Deposits with banks and short-term investments

203,809

 

 

219,576

 

Restricted cash

33,089

 

 

34,091

 

Receivables

725,488

 

 

762,319

 

Investments

687,507

 

 

701,964

 

Property

220,663

 

 

232,516

 

Operating lease right-of-use assets

451,707

 

 

407,213

 

Goodwill and other intangible assets

393,967

 

 

394,928

 

Deferred tax assets

507,572

 

 

497,340

 

Other assets

455,837

 

 

414,518

 

 

 

 

 

Total Assets

$4,527,194

 

 

$4,635,781

 

 

 

 

 

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS & STOCKHOLDERS' EQUITY

 

 

 

 

Liabilities

 

 

 

 

 

 

 

Deposits and other customer payables

$382,115

 

 

$443,262

 

Accrued compensation and benefits

550,189

 

 

781,375

 

Operating lease liabilities

522,864

 

 

485,191

 

Tax receivable agreement obligation

84,137

 

 

115,087

 

Senior debt

1,852,149

 

 

1,690,200

 

Other liabilities

540,619

 

 

550,804

 

Total liabilities

3,932,073

 

 

4,065,919

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Redeemable noncontrolling interests

80,931

 

 

87,675

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

Preferred stock, par value $.01 per share

–

 

 

–

 

Common stock, par value $.01 per share

1,128

 

 

1,128

 

Additional paid-in capital

218,455

 

 

247,204

 

Retained earnings

1,382,703

 

 

1,402,636

 

Accumulated other comprehensive loss, net of tax

(306,293

)

 

(289,950

)

Subtotal

1,295,993

 

 

1,361,018

 

Class A common stock held by subsidiaries, at cost

(837,338

)

 

(937,259

)

Total Lazard, Inc. stockholders' equity

458,655

 

 

423,759

 

Noncontrolling interests

55,535

 

 

58,428

 

Total stockholders' equity

514,190

 

 

482,187

 

 

 

 

 

Total liabilities, redeemable noncontrolling interests and stockholders' equity

$4,527,194

 

 

$4,635,781

 

 

Note: "Property" includes $70 million and $73 million of property held for sale at June 30, 2024 and December 31, 2023, respectively.

SELECTED SUMMARY FINANCIAL INFORMATION (a)

(Adjusted Basis - Non-GAAP - unaudited)

 

 

Three Months Ended

 

% Change From

 

June 30,

 

March 31,

 

June 30,

 

March 31,

 

June 30,

($ in thousands, except per share data)

2024

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

Net Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Advisory

$407,936

 

 

$446,634

 

 

$344,167

 

 

(9%)

 

19%

Asset Management

265,219

 

 

275,934

 

 

267,058

 

 

(4%)

 

(1%)

Corporate

11,487

 

 

23,997

 

 

8,801

 

 

(52%)

 

31%

 

 

 

 

 

 

 

 

 

 

Adjusted net revenue

$684,642

 

 

$746,565

 

 

$620,026

 

 

(8%)

 

10%

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted compensation and benefits expense

$451,864

 

 

$492,733

 

 

$424,097

 

 

(8%)

 

7%

Adjusted compensation ratio (b)

66.0

%

 

66.0

%

 

68.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted non-compensation expenses

$148,612

 

 

$134,293

 

 

$143,677

 

 

11%

 

3%

Adjusted non-compensation ratio (c)

21.7

%

 

18.0

%

 

23.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income

$84,166

 

 

$119,539

 

 

$52,252

 

 

(30%)

 

61%

Adjusted operating margin (d)

12.3

%

 

16.0

%

 

8.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income

$52,869

 

 

$66,606

 

 

$22,692

 

 

(21%)

 

133%

 

 

 

 

 

 

 

 

 

 

Adjusted diluted net income per share

$0.52

 

 

$0.66

 

 

$0.24

 

 

(21%)

 

117%

 

 

 

 

 

 

 

 

 

 

Adjusted diluted weighted average shares (e)

102,188,981

 

 

101,532,219

 

 

95,620,902

 

 

1%

 

7%

 

 

 

 

 

 

 

 

 

 

Adjusted effective tax rate (f)

14.0

%

 

32.6

%

 

31.2

%

 

 

 

 

 

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Reconciliation of U.S. GAAP to Selected Summary Financial Information and Notes to Financial Schedules.

See Notes to Financial Schedules

SELECTED SUMMARY FINANCIAL INFORMATION (a)

(Adjusted Basis - Non-GAAP - unaudited)

 

 

Six Months Ended

 

June 30,

 

June 30,

 

 

($ in thousands, except per share data)

2024

 

2023

 

% Change

 

 

 

 

 

 

Net Revenue:

 

 

 

 

 

 

 

 

 

 

 

Financial Advisory

$854,570

 

 

$618,028

 

 

38%

Asset Management

541,153

 

 

531,703

 

 

2%

Corporate

35,484

 

 

(2,687

)

 

NM

 

 

 

 

 

 

Adjusted net revenue

$1,431,207

 

 

$1,147,044

 

 

25%

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

Adjusted compensation and benefits expense

$944,597

 

 

$823,187

 

 

15%

Adjusted compensation ratio (b)

66.0

%

 

71.8

%

 

 

 

 

 

 

 

 

Adjusted non-compensation expenses

$282,905

 

 

$285,935

 

 

(1%)

Adjusted non-compensation ratio (c)

19.8

%

 

24.9

%

 

 

 

 

 

 

 

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income

$203,705

 

 

$37,922

 

 

NM

Adjusted operating margin (d)

14.2

%

 

3.3

%

 

 

 

 

 

 

 

 

Adjusted net income (loss)

$119,475

 

 

($256

)

 

NM

 

 

 

 

 

 

Adjusted diluted net income per share

$1.17

 

 

$–

 

 

NM

 

 

 

 

 

 

Adjusted diluted weighted average shares (e)

101,860,599

 

 

88,160,753

 

 

NM

 

 

 

 

 

 

Adjusted effective tax rate (f)

25.5

%

 

67.8

%

 

 

 

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Reconciliation of U.S. GAAP to Selected Summary Financial Information and Notes to Financial Schedules.

See Notes to Financial Schedules

ASSETS UNDER MANAGEMENT

(unaudited)

 

 

As of

 

% Change From

 

June 30,

 

March 31,

 

December 31,

 

March 31,

 

December 31,

($ in millions)

2024

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

 

Emerging Markets

$27,044

 

 

$24,779

 

 

$25,288

 

 

9.1

%

 

6.9

%

Global

54,026

 

 

55,544

 

 

53,528

 

 

(2.7

%)

 

0.9

%

Local

52,738

 

 

54,841

 

 

52,208

 

 

(3.8

%)

 

1.0

%

Multi-Regional

56,618

 

 

60,089

 

 

59,114

 

 

(5.8

%)

 

(4.2

%)

Total Equity

190,426

 

 

195,253

 

 

190,138

 

 

(2.5

%)

 

0.2

%

Fixed Income:

 

 

 

 

 

 

 

 

 

Emerging Markets

9,250

 

 

9,080

 

 

9,525

 

 

1.9

%

 

(2.9

%)

Global

11,167

 

 

10,664

 

 

10,762

 

 

4.7

%

 

3.8

%

Local

5,729

 

 

6,378

 

 

6,080

 

 

(10.2

%)

 

(5.8

%)

Multi-Regional

19,965

 

 

21,098

 

 

21,740

 

 

(5.4

%)

 

(8.2

%)

Total Fixed Income

46,111

 

 

47,220

 

 

48,107

 

 

(2.3

%)

 

(4.1

%)

Alternative Investments

2,897

 

 

3,201

 

 

3,330

 

 

(9.5

%)

 

(13.0

%)

Private Wealth Alternative Investments

3,033

 

 

2,643

 

 

2,799

 

 

14.8

%

 

8.4

%

Private Equity

1,501

 

 

1,486

 

 

1,623

 

 

1.0

%

 

(7.5

%)

Cash Management

702

 

 

629

 

 

654

 

 

11.6

%

 

7.3

%

Total AUM

$244,670

 

 

$250,432

 

 

$246,651

 

 

(2.3

%)

 

(0.8

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

June 30,

 

2024

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

AUM - Beginning of Period

$250,432

 

 

$246,651

 

 

$232,140

 

 

$246,651

 

 

$216,125

 

 

 

 

 

 

 

 

 

 

 

Net Flows

(6,599

)

 

(6,630

)

 

(997

)

 

(13,229

)

 

2,002

 

Market and foreign exchange appreciation

837

 

 

10,411

 

 

8,197

 

 

11,248

 

 

21,213

 

 

 

 

 

 

 

 

 

 

 

AUM - End of Period

$244,670

 

 

$250,432

 

 

$239,340

 

 

$244,670

 

 

$239,340

 

 

 

 

 

 

 

 

 

 

 

Average AUM

$245,302

 

 

$246,950

 

 

$235,352

 

 

$246,126

 

 

$231,110

 

 

 

 

 

 

 

 

 

 

 

% Change in Average AUM

 

 

(0.7

%)

 

4.2

%

 

 

 

6.5

%

 

Note: Average AUM generally represents the average of the monthly ending AUM balances for the period.

RECONCILIATION OF U.S. GAAP TO ADJUSTED RESULTS (a)

(unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

June 30,

($ in thousands)

2024

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

Net Revenue

Financial Advisory net revenue - U.S. GAAP Basis

$411,308

 

 

$453,507

 

 

$352,477

 

 

$864,815

 

 

$630,051

 

Adjustments:

 

 

 

 

 

 

 

 

 

Reimbursable deal costs, provision for credit losses and other (g)

(3,372

)

 

(7,501

)

 

(8,310

)

 

(10,873

)

 

(12,091

)

Interest expense (h)

–

 

 

41

 

 

–

 

 

41

 

 

68

 

Losses associated with cost-saving initiatives (i)

–

 

 

587

 

 

–

 

 

587

 

 

–

 

 

 

 

 

 

 

 

 

 

 

Adjusted Financial Advisory net revenue

$407,936

 

 

$446,634

 

 

$344,167

 

 

$854,570

 

 

$618,028

 

 

 

 

 

 

 

 

 

 

 

Asset Management net revenue - U.S. GAAP Basis

$285,487

 

 

$295,476

 

 

$288,313

 

 

$580,963

 

 

$572,357

 

Adjustments:

 

 

 

 

 

 

 

 

 

Revenue related to noncontrolling interests (j)

(4,054

)

 

(4,097

)

 

(3,227

)

 

(8,151

)

 

(7,229

)

Distribution fees and other (g)

(16,216

)

 

(15,448

)

 

(18,028

)

 

(31,664

)

 

(33,428

)

Interest expense (h)

2

 

 

3

 

 

–

 

 

5

 

 

3

 

 

 

 

 

 

 

 

 

 

 

Adjusted Asset Management net revenue

$265,219

 

 

$275,934

 

 

$267,058

 

 

$541,153

 

 

$531,703

 

 

 

 

 

 

 

 

 

 

 

Corporate net revenue (loss) - U.S. GAAP Basis

($11,446

)

 

$15,770

 

 

$2,324

 

 

$4,324

 

 

($16,858

)

Adjustments:

 

 

 

 

 

 

 

 

 

Revenue related to noncontrolling interests (j)

(866

)

 

(3,006

)

 

(3,010

)

 

(3,872

)

 

(9,831

)

(Gains) losses related to Lazard Fund Interests ("LFI") and other similar arrangements (k)

1,201

 

 

(9,373

)

 

(9,675

)

 

(8,172

)

 

(26,128

)

Provision for credit losses (g)

–

 

 

–

 

 

–

 

 

–

 

 

(7,500

)

Interest expense (h)

22,598

 

 

20,606

 

 

19,162

 

 

43,204

 

 

38,501

 

Asset impairment charges

–

 

 

–

 

 

–

 

 

–

 

 

19,129

 

 

 

 

 

 

 

 

 

 

 

Adjusted Corporate net revenue (loss)

$11,487

 

 

$23,997

 

 

$8,801

 

 

$35,484

 

 

($2,687

)

 

 

 

 

 

 

 

 

 

 

Net revenue - U.S. GAAP Basis

$685,349

 

 

$764,753

 

 

$643,114

 

 

$1,450,102

 

 

$1,185,550

 

Adjustments:

 

 

 

 

 

 

 

 

 

Revenue related to noncontrolling interests (j)

(4,920

)

 

(7,103

)

 

(6,237

)

 

(12,023

)

 

(17,060

)

(Gains) losses related to Lazard Fund Interests ("LFI") and other similar arrangements (k)

1,201

 

 

(9,373

)

 

(9,675

)

 

(8,172

)

 

(26,128

)

Distribution fees, reimbursable deal costs, provision for credit losses and other (g)

(19,588

)

 

(22,949

)

 

(26,338

)

 

(42,537

)

 

(53,019

)

Interest expense (h)

22,600

 

 

20,650

 

 

19,162

 

 

43,250

 

 

38,572

 

Asset impairment charges

–

 

 

–

 

 

–

 

 

–

 

 

19,129

 

Losses associated with cost-saving initiatives (i)

–

 

 

587

 

 

–

 

 

587

 

 

–

 

 

 

 

 

 

 

 

 

 

 

Adjusted net revenue

$684,642

 

 

$746,565

 

 

$620,026

 

 

$1,431,207

 

 

$1,147,044

 

 

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Notes to Financial Schedules.

See Notes to Financial Schedules

RECONCILIATION OF U.S. GAAP TO ADJUSTED RESULTS (a)

(unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

June 30,

($ in thousands, except per share data)

2024

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

Compensation and Benefits Expense

Compensation and benefits expense - U.S. GAAP Basis

$452,560

 

 

$550,824

 

 

$572,231

 

 

$1,003,384

 

 

$1,022,198

 

Adjustments:

 

 

 

 

 

 

 

 

 

Compensation and benefits expense related to noncontrolling interests (j)

(1,897

)

 

(2,108

)

 

(1,851

)

 

(4,005

)

 

(4,861

)

(Charges) credits pertaining to LFI and other similar arrangements (l)

1,201

 

 

(9,373

)

 

(9,675

)

 

(8,172

)

 

(26,128

)

Expenses associated with cost-saving initiatives

–

 

 

(46,610

)

 

(136,608

)

 

(46,610

)

 

(157,348

)

Expenses associated with senior management transition (m)

–

 

 

–

 

 

–

 

 

–

 

 

(10,674

)

 

 

 

 

 

 

 

 

 

 

Adjusted compensation and benefits expense

$451,864

 

 

$492,733

 

 

$424,097

 

 

$944,597

 

 

$823,187

 

 

 

 

 

 

 

 

 

 

 

Non-Compensation Expenses

Non-compensation expenses - U.S. GAAP Basis

$169,149

 

 

$159,368

 

 

$180,956

 

 

$328,517

 

 

$350,784

 

Adjustments:

 

 

 

 

 

 

 

 

 

Non-compensation expenses related to noncontrolling interests (j)

(881

)

 

(526

)

 

(749

)

 

(1,407

)

 

(1,590

)

Distribution fees, reimbursable deal costs, provision for credit losses and other (g)

(19,588

)

 

(22,949

)

 

(26,338

)

 

(42,537

)

 

(53,019

)

Amortization and other acquisition-related costs

(68

)

 

(68

)

 

(95

)

 

(136

)

 

(143

)

Expenses associated with cost-saving initiatives

–

 

 

(1,532

)

 

(10,097

)

 

(1,532

)

 

(10,097

)

 

 

 

 

 

 

 

 

 

 

Adjusted non-compensation expenses

$148,612

 

 

$134,293

 

 

$143,677

 

 

$282,905

 

 

$285,935

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

Operating income (loss) - U.S. GAAP Basis

$63,640

 

 

$54,561

 

 

($110,073

)

 

$118,201

 

 

($146,997

)

Adjustments:

 

 

 

 

 

 

 

 

 

Operating income related to noncontrolling interests (j)

(2,142

)

 

(4,469

)

 

(3,637

)

 

(6,611

)

 

(10,610

)

Interest expense (h)

22,600

 

 

20,650

 

 

19,162

 

 

43,250

 

 

38,572

 

Amortization and other acquisition-related costs

68

 

 

68

 

 

95

 

 

136

 

 

144

 

Asset impairment charges

–

 

 

–

 

 

–

 

 

–

 

 

19,129

 

Losses associated with cost-saving initiatives (i)

–

 

 

587

 

 

–

 

 

587

 

 

–

 

Expenses associated with cost-saving initiatives

–

 

 

48,142

 

 

146,705

 

 

48,142

 

 

167,445

 

Expenses associated with senior management transition (m)

–

 

 

–

 

 

–

 

 

–

 

 

10,674

 

Benefit pursuant to tax receivable agreement obligation ("TRA") (n)

–

 

 

–

 

 

–

 

 

–

 

 

(40,435

)

 

 

 

 

 

 

 

 

 

 

Adjusted operating income

$84,166

 

 

$119,539

 

 

$52,252

 

 

$203,705

 

 

$37,922

 

 

 

 

 

 

 

 

 

 

 

Provision (Benefit) for Income Taxes

Provision (benefit) for income taxes - U.S. GAAP Basis

$11,587

 

 

$14,337

 

 

$10,303

 

 

$25,924

 

 

($11,422

)

Adjustment:

 

 

 

 

 

 

 

 

 

Tax effect of adjustments

(2,960

)

 

17,878

 

 

–

 

 

14,918

 

 

10,884

 

 

 

 

 

 

 

 

 

 

 

Adjusted provision (benefit) for income taxes

$8,627

 

 

$32,215

 

 

$10,303

 

 

$40,842

 

 

($538

)

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) attributable to Lazard, Inc.

Net income (loss) attributable to Lazard, Inc. - U.S. GAAP Basis

$49,909

 

 

$35,755

 

 

($124,013

)

 

$85,664

 

 

($146,185

)

Adjustments:

 

 

 

 

 

 

 

 

 

Asset impairment charges

–

 

 

–

 

 

–

 

 

–

 

 

19,129

 

Losses associated with cost-saving initiatives (i)

–

 

 

587

 

 

–

 

 

587

 

 

–

 

Expenses associated with cost-saving initiatives

–

 

 

48,142

 

 

146,705

 

 

48,142

 

 

167,445

 

Expenses associated with senior management transition (m)

–

 

 

–

 

 

–

 

 

–

 

 

10,674

 

Benefit pursuant to tax receivable agreement obligation ("TRA") (n)

–

 

 

–

 

 

–

 

 

–

 

 

(40,435

)

Tax effect of adjustments

2,960

 

 

(17,878

)

 

–

 

 

(14,918

)

 

(10,884

)

 

 

 

 

 

 

 

 

 

 

Adjusted net income (loss)

$52,869

 

 

$66,606

 

 

$22,692

 

 

$119,475

 

 

($256

)

 

 

 

 

 

 

 

 

 

 

Diluted Weighted Average Shares Outstanding

Diluted Weighted Average Shares Outstanding - U.S. GAAP Basis

100,627,867

 

 

99,351,769

 

 

88,729,654

 

 

99,989,817

 

 

88,160,753

 

Adjustment: participating securities including profits interest participation rights and other

1,561,114

 

 

2,180,450

 

 

6,891,248

 

 

1,870,782

 

 

–

 

 

 

 

 

 

 

 

 

 

 

Adjusted Diluted Weighted Average Shares Outstanding (e)

102,188,981

 

 

101,532,219

 

 

95,620,902

 

 

101,860,599

 

 

88,160,753

 

 

 

 

 

 

 

 

 

 

 

Diluted net income (loss) per share:

 

 

 

 

 

 

 

 

 

U.S. GAAP Basis

$0.49

 

 

$0.35

 

 

($1.41

)

 

$0.84

 

 

($1.68

)

Diluted net income (loss) effect of adjustments

0.03

 

 

0.31

 

 

1.65

 

 

0.33

 

 

1.68

 

Adjusted Basis

$0.52

 

 

$0.66

 

 

$0.24

 

 

$1.17

 

 

$–

 

 

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Notes to Financial Schedules.

See Notes to Financial Schedules

RECONCILIATION OF NON-COMPENSATION EXPENSES U.S. GAAP TO ADJUSTED (a)

(unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

June 30,

($ in thousands)

2024

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

Non-compensation expenses - U.S. GAAP Basis:

 

 

 

 

 

 

 

 

 

Occupancy and equipment

$32,031

 

 

$32,857

 

 

$32,800

 

 

$64,888

 

 

$64,573

 

Marketing and business development

25,493

 

 

23,599

 

 

28,582

 

 

49,092

 

 

51,344

 

Technology and information services

46,406

 

 

44,917

 

 

51,370

 

 

91,323

 

 

95,410

 

Professional services

23,734

 

 

19,880

 

 

21,402

 

 

43,614

 

 

45,728

 

Fund administration and outsourced services

27,114

 

 

26,140

 

 

28,968

 

 

53,254

 

 

55,544

 

Amortization and other acquisition-related costs

68

 

 

68

 

 

95

 

 

136

 

 

143

 

Other

14,303

 

 

11,907

 

 

17,739

 

 

26,210

 

 

38,042

 

Non-compensation expenses - U.S. GAAP Basis

$169,149

 

 

$159,368

 

 

$180,956

 

 

$328,517

 

 

$350,784

 

 

 

 

 

 

 

 

 

 

 

Non-compensation expenses - Adjustments:

 

 

 

 

 

 

 

 

 

Occupancy and equipment (j)

($95

)

 

($1,573

)

 

($878

)

 

($1,668

)

 

($939

)

Marketing and business development (g) (j)

(2,944

)

 

(2,079

)

 

(5,164

)

 

(5,023

)

 

(7,892

)

Technology and information services (g) (j)

(49

)

 

(35

)

 

(7,436

)

 

(84

)

 

(7,509

)

Professional services (g) (j)

(1,085

)

 

(873

)

 

(1,989

)

 

(1,958

)

 

(3,391

)

Fund administration and outsourced services (g) (j)

(15,588

)

 

(15,035

)

 

(17,282

)

 

(30,623

)

 

(32,261

)

Amortization and other acquisition-related costs

(68

)

 

(68

)

 

(95

)

 

(136

)

 

(143

)

Other (g) (j)

(708

)

 

(5,412

)

 

(4,435

)

 

(6,120

)

 

(12,714

)

Subtotal non-compensation expenses adjustments

($20,537

)

 

($25,075

)

 

($37,279

)

 

($45,612

)

 

($64,849

)

 

 

 

 

 

 

 

 

 

 

Adjusted non-compensation expenses:

 

 

 

 

 

 

 

 

 

Occupancy and equipment

$31,936

 

 

$31,284

 

 

$31,922

 

 

$63,220

 

 

$63,634

 

Marketing and business development

22,549

 

 

21,520

 

 

23,418

 

 

44,069

 

 

43,452

 

Technology and information services

46,357

 

 

44,882

 

 

43,934

 

 

91,239

 

 

87,901

 

Professional services

22,649

 

 

19,007

 

 

19,413

 

 

41,656

 

 

42,337

 

Fund administration and outsourced services

11,526

 

 

11,105

 

 

11,686

 

 

22,631

 

 

23,283

 

Amortization and other acquisition-related costs

–

 

 

–

 

 

–

 

 

–

 

 

–

 

Other

13,595

 

 

6,495

 

 

13,304

 

 

20,090

 

 

25,328

 

Adjusted non-compensation expenses

$148,612

 

 

$134,293

 

 

$143,677

 

 

$282,905

 

 

$285,935

 

 

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Notes to Financial Schedules.

See Notes to Financial Schedules

LAZARD, Inc.

 

Notes to Financial Schedules

 

(a)

Selected Summary Financial Information are non-GAAP measures. Lazard believes that presenting results and measures on an adjusted basis in conjunction with U.S. GAAP measures provides a meaningful and useful basis for comparison of its operating results across periods.

Beginning in the first quarter of 2024, Lazard has updated the names of certain non-GAAP measures and metrics. The nomenclature change did not result in any change to the components of our non-GAAP measures and metrics compared to prior periods.

 

 

 

 

 

 

 

 

 

 

 

(b)

A non-GAAP measure which represents adjusted compensation and benefits expense as a percentage of adjusted net revenue.

 

 

 

 

 

 

 

 

 

 

 

(c)

A non-GAAP measure which represents adjusted non-compensation expenses as a percentage of adjusted net revenue.

 

 

 

 

 

 

 

 

 

 

 

(d)

A non-GAAP measure which represents adjusted operating income as a percentage of adjusted net revenue.

 

 

 

 

 

 

 

 

 

 

 

(e)

A non-GAAP measure which includes units of the long-term incentive compensation program consisting of profits interest participation rights, which are equity incentive awards that, subject to certain conditions, may be exchanged for shares of our common stock. Certain profits interest participation rights may be excluded from the computation of outstanding stock equivalents for U.S. GAAP net income per share. In addition, this measure includes the dilutive effect of the weighted average number of shares of common stock issuable from share-based compensation programs. However, for the six month period ended June 30, 2023, this measure excluded such shares as the effect would have been anti-dilutive.

 

 

 

 

 

 

 

 

 

 

 

(f)

A non-GAAP measure which represents the adjusted provision (benefit) for income taxes as a percentage of adjusted operating income (loss) less interest expense and amortization and other acquisition-related costs.

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

June 30,

 

 

2024

 

2024

 

2023

 

2024

 

2023

 

Adjusted provision (benefit) for income taxes

$8,627

 

$32,215

 

$10,303

 

$40,842

 

($538)

 

Adjusted operating income (loss) less interest expense and amortization and other acquisition-related costs

61,496

 

98,821

 

32,995

 

160,317

 

(794)

 

Adjusted effective tax rate

14.0%

 

32.6%

 

31.2%

 

25.5%

 

67.8%

 

 

 

 

 

 

 

 

 

 

 

(g)

Represents certain distribution, introducer and management fees paid to third parties and reimbursable deal costs, for which an equal amount is excluded from both adjusted net revenue and adjusted non-compensation expenses, respectively, and excludes provision for credit losses, which represents fees and other receivables that are deemed uncollectible.

 

 

 

 

 

 

 

 

 

 

 

(h)

Interest expense, excluding interest expense incurred by Lazard Frères Banque SA ("LFB"), is added back in determining adjusted net revenue because such expense relates to corporate financing activities and is not considered to be a cost directly related to the revenue of our business.

 

 

 

 

 

 

 

 

 

 

 

(i)

Represents losses associated with the closing of certain offices as part of the cost-saving initiatives, including the reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss.

 

 

 

 

 

 

 

 

 

 

 

(j)

Noncontrolling interests include revenue and expenses principally related to Edgewater, ESC Funds and a Special Purpose Acquisition Company.

 

 

 

 

 

 

 

 

 

 

 

(k)

Represents changes in the fair value of investments held in connection with LFI and other similar deferred compensation arrangements, for which a corresponding equal amount is excluded from compensation and benefits expense.

 

 

 

 

 

 

 

 

 

 

 

(l)

Represents changes in the fair value of the compensation liability recorded in connection with LFI and other similar deferred incentive compensation awards, for which a corresponding equal amount is excluded from adjusted net revenue.

 

 

 

 

 

 

 

 

 

 

 

(m)

Represents expenses associated with senior management transition reflecting the departure of certain executive officers.

 

 

 

 

 

 

 

 

 

 

 

(n)

Pursuant to the periodic revaluation of the TRA liability and the assumptions reflected in the estimate, the revaluation had the effect of reducing the estimated liability under the TRA.

 

 

 

 

 

 

 

 

 

 

 

NM

Not meaningful

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240725645603/en/

Media Contact: Shannon Houston +1 212 632 6880 shannon.houston@lazard.com

Investor Contact: Alexandra Deignan +1 212 632 6886 alexandra.deignan@lazard.com