Houlihan Lokey Reports Third Quarter Fiscal 2021 Financial Results
– Third Quarter Fiscal 2021 Revenues of $538 million –
– Third Quarter Fiscal 2021 Diluted EPS of $1.71 –
– Adjusted Third Quarter Fiscal 2021 Diluted EPS of $1.77 –
– Announces Dividend of $0.33 per Share for Fourth Quarter Fiscal 2021 –
– Announces Increase in Share Repurchase Program to $200 million –
LOS ANGELES and NEW YORK - January 28, 2021 - Houlihan Lokey, Inc. (NYSE:HLI) (“Houlihan Lokey” or the “Company”) today reported financial results for its third quarter ended December 31, 2020. For the third quarter ended December 31, 2020, revenues were $538 million, compared with $334 million for the third quarter ended December 31, 2019.
Net income was $119 million, or $1.71 per diluted share, for the third quarter ended December 31, 2020, compared with $49 million, or $0.75 per diluted share, for the third quarter ended December 31, 2019. Adjusted net income for the third quarter ended December 31, 2020 was $123 million, or $1.77 per diluted share, compared with $58 million, or $0.88 per diluted share, for the third quarter ended December 31, 2019.
“By almost every measure this was a standout quarter for the firm. Not only did we produce record results in all three business segments, but we were once again recognized for our leading positions in both M&A and Financial Restructuring. I am proud to announce that in 2020 and for the sixth year in a row, we were recognized as the #1 M&A advisor in the U.S. based on number of completed transactions, and in 2020 and for the seventh year in a row, we were recognized as the #1 Restructuring Advisor globally based on number of completed transactions, both per Refinitiv. I am very proud of our employees for achieving these rankings.” stated Scott Beiser, Chief Executive Officer of Houlihan Lokey.
Selected Financial Data
| (In thousands, except per share data) | U.S. GAAP | ||||||||||||||||||||||
| Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Revenues | $ | 537,876 | $ | 333,515 | $ | 1,024,748 | $ | 856,674 | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||
| Employee compensation and benefits | 339,743 | 213,107 | 654,113 | 551,056 | |||||||||||||||||||
| Non-compensation | 39,717 | 52,392 | 102,754 | 144,672 | |||||||||||||||||||
Operating income | 158,416 | 68,016 | 267,881 | 160,946 | |||||||||||||||||||
| Other (income)/expense, net | (187) | (1,039) | (1,544) | (3,787) | |||||||||||||||||||
Income before provision for income taxes | 158,603 | 69,055 | 269,425 | 164,733 | |||||||||||||||||||
Provision for income taxes | 40,088 | 20,161 | 56,020 | 39,954 | |||||||||||||||||||
Net income attributable to Houlihan Lokey, Inc. | $ | 118,515 | $ | 48,894 | $ | 213,405 | $ | 124,779 | |||||||||||||||
Diluted earnings per share | $ | 1.71 | $ | 0.75 | $ | 3.11 | $ | 1.90 | |||||||||||||||
Revenues
For the third quarter ended December 31, 2020, revenues were $538 million, compared with $334 million for the third quarter ended December 31, 2019. For the third quarter ended December 31, 2020, Corporate Finance (“CF”) revenues increased 52%, Financial Restructuring (“FR”) revenues increased 92%, and Financial and Valuation Advisory (“FVA”) revenues increased 36% when compared with the third quarter ended December 31, 2019.
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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) * | ||||||||||||||||||||||
| Three Months Ended December 31, | |||||||||||||||||||||||
| (Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
| Expenses: | |||||||||||||||||||||||
| Employee compensation and benefits | $ | 339,743 | $ | 213,107 | $ | 334,828 | $ | 203,430 | |||||||||||||||
| % of Revenues | 63.2 | % | 63.9 | % | 62.3 | % | 61.0 | % | |||||||||||||||
| Non-compensation | $ | 39,717 | $ | 52,392 | $ | 38,523 | $ | 49,894 | |||||||||||||||
| % of Revenues | 7.4 | % | 15.7 | % | 7.2 | % | 15.0 | % | |||||||||||||||
| Provision for Income Taxes | $ | 40,088 | $ | 20,161 | $ | 41,632 | $ | 23,719 | |||||||||||||||
| % of Pre-Tax Income | 25.3 | % | 29.2 | % | 25.3 | % | 29.2 | % | |||||||||||||||
*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) * | ||||||||||||||||||||||
| Nine Months Ended December 31, | |||||||||||||||||||||||
| (Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
| Expenses: | |||||||||||||||||||||||
| Employee compensation and benefits | $ | 654,113 | $ | 551,056 | $ | 641,878 | $ | 521,604 | |||||||||||||||
| % of Revenues | 63.8 | % | 64.3 | % | 62.6 | % | 60.9 | % | |||||||||||||||
| Non-compensation | $ | 102,754 | $ | 144,672 | $ | 97,262 | $ | 131,413 | |||||||||||||||
| % of Revenues | 10.0 | % | 16.9 | % | 9.5 | % | 15.3 | % | |||||||||||||||
| Provision for Income Taxes | $ | 56,020 | $ | 39,954 | $ | 74,008 | $ | 59,848 | |||||||||||||||
| % of Pre-Tax Income | 20.8 | % | 24.3 | % | 25.8 | % | 28.9 | % | |||||||||||||||
*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.
Employee compensation and benefits expenses were $340 million for the third quarter ended December 31, 2020, compared with $213 million for the third quarter ended December 31, 2019. The increase in GAAP employee compensation and benefits expenses was primarily a result of an increase in fee revenues for the quarter when compared with the same quarter last year. Adjusted employee compensation and benefits expenses were $335 million for the third quarter ended December 31, 2020, compared with $203 million for the third quarter ended December 31, 2019. This resulted in an adjusted compensation ratio of 62.3% for the third quarter ended December 31, 2020, versus 61.0% for the third quarter ended December 31, 2019. The increase in adjusted employee compensation and benefits expenses was primarily a result of an increase in fee revenues for the quarter when compared with the same quarter last year.
Non-compensation expenses were $40 million for the third quarter ended December 31, 2020, compared with $52 million for the third quarter ended December 31, 2019. Adjusted non-compensation expenses were $39 million for the third quarter ended December 31, 2020, compared with $50 million for the third quarter ended December 31, 2019. The decrease in GAAP and adjusted non-compensation expenses was primarily a result of a decrease in travel, meals, and entertainment expenses and other operating expenses. The decrease in travel, meals, and entertainment expenses was primarily driven by reduced travel and entertainment activity as a result of the COVID-19 pandemic. The decrease in other operating expenses was due to a reduction in other miscellaneous costs, also driven in large part by the COVID-19 pandemic.
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The provision for income taxes was $40 million, representing an effective tax rate of 25.3% for the third quarter ended December 31, 2020, compared with $20 million, representing an effective tax rate of 29.2% for the third quarter ended December 31, 2019. The decrease in the Company’s tax rate during the third quarter ended December 31, 2020 relative to the same period in 2019 was primarily a result of a decrease in non-deductible expenses and state taxes as a result of year-over-year fluctuations in pre-tax income. The adjusted provision for income taxes was $42 million, representing an adjusted effective tax rate of 25.3% for the third quarter ended December 31, 2020, compared with $24 million, representing an adjusted effective tax rate of 29.2% for the third quarter ended December 31, 2019.
Segment Reporting for the Third Quarter
Corporate Finance
CF revenues were $306 million for the third quarter ended December 31, 2020, compared with $201 million for the third quarter ended December 31, 2019, representing an increase of 52%. Revenues increased primarily due to a significant increase in the number of closed transactions and average transaction fee on closed transactions.
| Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
| (Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
| Corporate Finance | |||||||||||||||||||||||
| Revenues | $ | 306,171 | $ | 201,137 | $ | 502,191 | $ | 490,707 | |||||||||||||||
| # of Managing Directors | 123 | 122 | 123 | 122 | |||||||||||||||||||
# of Closed transactions (1) | 121 | 95 | 209 | 225 | |||||||||||||||||||
Financial Restructuring
FR revenues increased 92% to $178 million for the third quarter ended December 31, 2020, compared with $93 million for the third quarter ended December 31, 2019. Revenues increased primarily due to a significant increase in the number of closed transactions and average transaction fee on closed transactions.
| Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
| (Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
| Financial Restructuring | |||||||||||||||||||||||
| Revenues | $ | 177,995 | $ | 92,808 | $ | 392,006 | $ | 249,438 | |||||||||||||||
| # of Managing Directors | 47 | 45 | 47 | 45 | |||||||||||||||||||
# of Closed transactions (1) | 44 | 28 | 103 | 70 | |||||||||||||||||||
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Financial and Valuation Advisory
FVA revenues increased 36% to $54 million for the third quarter ended December 31, 2020, compared with $40 million for the third quarter ended December 31, 2019. Revenues increased primarily due to an increase in the number of fee events and average fee per fee event.
| Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
| (Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
| Financial and Valuation Advisory | |||||||||||||||||||||||
| Revenues | $ | 53,710 | $ | 39,570 | $ | 130,551 | $ | 116,529 | |||||||||||||||
| # of Managing Directors | 31 | 32 | 31 | 32 | |||||||||||||||||||
# of Fee Events (1) | 639 | 530 | 1,134 | 1,086 | |||||||||||||||||||
(1)A Fee Event includes any engagement that involves revenue activity during the measurement period based on a revenue minimum of $1,000. 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.
COVID-19 Update
The COVID-19 pandemic has had a substantial effect on the global markets, and has created uncertainty, volatility and dislocation among a wide variety of sectors. The scale, scope and duration of the impact of the COVID-19 pandemic on our business, revenues and operating results are unpredictable and depend on many factors outside of our control. We expect the COVID-19 pandemic to continue to have an effect on our business, revenues, and operating results.
Balance Sheet and Capital Allocation
The Board of Directors of the Company declared a regular quarterly cash dividend of $0.33 per share of Class A and Class B common stock. The dividend will be payable on March 15, 2021 to stockholders of record as of the close of business on March 2, 2021.
The Board of Directors of the Company increased the size of our share repurchase program from $125 million to $200 million.
As of December 31, 2020, the Company had $868 million of cash and cash equivalents and investment securities, and $49 million of other liabilities and loans payable to former shareholders.
Investor Conference Call and Webcast
The Company will host a conference call and live webcast at 5:00 p.m. Eastern Time on Thursday, January 28, 2021, to discuss its third quarter fiscal 2021 results. The number to call is 1-877-407-4018 (domestic) or 1-201-689-8471 (international). 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 January 28, 2021 through February 4, 2021, by dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and entering the passcode 13714773#. 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 (including the significant effect that the COVID-19 pandemic has had on our business and is expected to continue to have on our business) 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.
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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. These adjusted items remove the significant accounting impact of one-time or non-recurring charges associated with the Company’s one-time/non-recurring matters, as set forth in the tables at the end of this release.
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 (NYSE:HLI) is a global investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, and valuation. The firm serves corporations, institutions, and governments worldwide with offices in the United States, 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. Houlihan Lokey is the No. 1 M&A advisor for the past six consecutive years in the U.S., the No. 1 global restructuring advisor for the past seven consecutive years, and the No. 1 global M&A fairness opinion advisor over the past 20 years, all based on number of transactions and according to data provided by Refinitiv (formerly Thomson Reuters).
For more information, please visit www.HL.com.
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Contact Information
| Investor Relations 212.331.8225 IR@HL.com | OR | Public Relations 212.331.8223 PR@HL.com | ||||||
Appendix
Condensed Consolidated Balance Sheet (Unaudited)
Condensed Consolidated Statement of Income (Unaudited)
Reconciliation of GAAP to Adjusted Financial Information (Unaudited)
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HOULIHAN LOKEY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
December 31, 2020 | March 31, 2020 | ||||||||||
| (In thousands, except share data and par value) | |||||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 633,659 | $ | 380,373 | |||||||
| Restricted cash | 373 | 373 | |||||||||
| Investment securities | 234,576 | 135,389 | |||||||||
| Accounts receivable, net of allowance for doubtful accounts | 78,969 | 80,912 | |||||||||
| Unbilled work in process, net of allowance for doubtful accounts | 53,074 | 39,821 | |||||||||
| Income taxes receivable | — | 4,282 | |||||||||
| Deferred income taxes | 9,564 | 6,507 | |||||||||
| Property and equipment, net | 46,167 | 42,372 | |||||||||
| Operating lease right-of-use asset | 145,367 | 135,240 | |||||||||
| Goodwill and other intangibles, net | 866,438 | 812,844 | |||||||||
| Other assets | 51,612 | 38,890 | |||||||||
| Total assets | $ | 2,119,799 | $ | 1,677,003 | |||||||
| Liabilities and Stockholders' Equity | |||||||||||
| Liabilities: | |||||||||||
| Accrued salaries and bonuses | $ | 436,438 | $ | 420,376 | |||||||
| Accounts payable and accrued expenses | 55,035 | 53,883 | |||||||||
| Deferred income | 37,008 | 26,780 | |||||||||
| Income taxes payable | 19,851 | — | |||||||||
| Deferred income taxes | 35 | 664 | |||||||||
| Loans payable to former shareholders | 1,007 | 1,393 | |||||||||
| Loan payable to non-affiliate | — | 3,283 | |||||||||
| Operating lease liabilities | 168,567 | 154,218 | |||||||||
| Other liabilities | 47,592 | 32,024 | |||||||||
| Total liabilities | 765,533 | 692,621 | |||||||||
| Stockholders' equity: | |||||||||||
| Class A common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 51,623,683 and 46,178,633 shares, respectively | 52 | 46 | |||||||||
| Class B common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 17,472,592 and 19,345,277 shares, respectively | 17 | 19 | |||||||||
| Additional paid-in capital | 851,444 | 649,954 | |||||||||
| Retained earnings | 523,454 | 377,471 | |||||||||
| Accumulated other comprehensive (loss) | (20,701) | (43,108) | |||||||||
| Total stockholders' equity | 1,354,266 | 984,382 | |||||||||
| Total liabilities and stockholders' equity | $ | 2,119,799 | $ | 1,677,003 | |||||||
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HOULIHAN LOKEY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
| Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
| (In thousands, except share and per share data) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
| Revenues | $ | 537,876 | $ | 333,515 | $ | 1,024,748 | $ | 856,674 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Employee compensation and benefits | 339,743 | 213,107 | 654,113 | 551,056 | |||||||||||||||||||
| Travel, meals, and entertainment | 1,338 | 12,943 | 4,416 | 32,760 | |||||||||||||||||||
| Rent | 10,086 | 9,531 | 30,010 | 34,454 | |||||||||||||||||||
| Depreciation and amortization | 3,949 | 4,336 | 11,291 | 12,280 | |||||||||||||||||||
| Information technology and communications | 9,281 | 7,225 | 22,532 | 19,477 | |||||||||||||||||||
| Professional fees | 6,188 | 6,204 | 16,422 | 16,494 | |||||||||||||||||||
| Other operating expenses | 8,875 | 12,153 | 18,083 | 29,207 | |||||||||||||||||||
| Total operating expenses | 379,460 | 265,499 | 756,867 | 695,728 | |||||||||||||||||||
| Operating income | 158,416 | 68,016 | 267,881 | 160,946 | |||||||||||||||||||
| Other (income)/expense, net | (187) | (1,039) | (1,544) | (3,787) | |||||||||||||||||||
| Income before provision for income taxes | 158,603 | 69,055 | 269,425 | 164,733 | |||||||||||||||||||
| Provision for income taxes | 40,088 | 20,161 | 56,020 | 39,954 | |||||||||||||||||||
| Net income attributable to Houlihan Lokey, Inc. | $ | 118,515 | $ | 48,894 | $ | 213,405 | $ | 124,779 | |||||||||||||||
| Weighted average shares of common stock outstanding: | |||||||||||||||||||||||
| Basic | 66,547,587 | 62,014,564 | 65,680,516 | 62,199,716 | |||||||||||||||||||
| Fully diluted | 69,356,347 | 65,608,026 | 68,596,503 | 65,770,056 | |||||||||||||||||||
| Earnings per share | |||||||||||||||||||||||
| Basic | $ | 1.78 | $ | 0.79 | $ | 3.25 | $ | 2.01 | |||||||||||||||
| Fully diluted | $ | 1.71 | $ | 0.75 | $ | 3.11 | $ | 1.90 | |||||||||||||||
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HOULIHAN LOKEY, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO ADJUSTED FINANCIAL INFORMATION
(UNAUDITED)
| Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
| (In thousands, except per share data) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
| Revenues | $ | 537,876 | $ | 333,515 | $ | 1,024,748 | $ | 856,674 | |||||||||||||||
| Employee compensation and benefits expenses | |||||||||||||||||||||||
| Employee compensation and benefits expenses (GAAP) | $ | 339,743 | $ | 213,107 | $ | 654,113 | $ | 551,056 | |||||||||||||||
| (Less)/plus: Pre-IPO grant vesting | — | (6,193) | — | (18,269) | |||||||||||||||||||
| (Less)/plus: Acquisition related retention payments | (4,915) | (3,484) | (12,235) | (11,183) | |||||||||||||||||||
| Employee compensation and benefits expenses (adjusted) | 334,828 | 203,430 | 641,878 | 521,604 | |||||||||||||||||||
| Non-compensation expenses | |||||||||||||||||||||||
| Non-compensation expenses (GAAP) | $ | 39,717 | $ | 52,392 | $ | 102,754 | $ | 144,672 | |||||||||||||||
| (Less)/plus: Secondary offering related costs | — | — | (418) | (665) | |||||||||||||||||||
| (Less)/plus: Acquisition related costs | — | (579) | (1,258) | (579) | |||||||||||||||||||
| (Less)/plus: Acquisition amortization | (1,194) | (1,919) | (3,080) | (5,184) | |||||||||||||||||||
| (Less)/plus: Oracle ERP implementation | — | — | (736) | — | |||||||||||||||||||
| (Less)/plus: London office buildout | — | — | — | (6,831) | |||||||||||||||||||
| Non-compensation expenses (adjusted) | 38,523 | 49,894 | 97,262 | 131,413 | |||||||||||||||||||
| Operating income | |||||||||||||||||||||||
| Operating income (GAAP) | $ | 158,416 | $ | 68,016 | $ | 267,881 | $ | 160,946 | |||||||||||||||
(Less)/plus: Adjustments (1) | 6,109 | 12,175 | 17,727 | 42,711 | |||||||||||||||||||
| Operating income (adjusted) | 164,525 | 80,191 | 285,608 | 203,657 | |||||||||||||||||||
| Other (income)/expense, net | |||||||||||||||||||||||
| Other (income)/expense, net (GAAP) | $ | (187) | $ | (1,039) | $ | (1,544) | $ | (3,787) | |||||||||||||||
| Other (income)/expense, net (adjusted) | (187) | (1,039) | (1,544) | (3,787) | |||||||||||||||||||
| Provision for income taxes | |||||||||||||||||||||||
| Provision for income taxes (GAAP) | $ | 40,088 | $ | 20,161 | $ | 56,020 | $ | 39,954 | |||||||||||||||
| (Less)/plus: Impact of the excess tax benefit for stock vesting | — | — | 13,408 | 7,605 | |||||||||||||||||||
| Adjusted provision for income taxes | 40,088 | 20,161 | 69,428 | 47,559 | |||||||||||||||||||
(Less)/plus: Resulting tax impact (2) | 1,544 | 3,558 | 4,580 | 12,289 | |||||||||||||||||||
| Provision for income taxes (adjusted) | 41,632 | 23,719 | 74,008 | 59,848 | |||||||||||||||||||
| Net income | |||||||||||||||||||||||
| Net income (GAAP) | $ | 118,515 | $ | 48,894 | $ | 213,405 | $ | 124,779 | |||||||||||||||
(Less)/plus: adjustments (3) | 4,565 | 8,617 | (261) | 22,817 | |||||||||||||||||||
| Net income (adjusted) | 123,080 | 57,511 | 213,144 | 147,596 | |||||||||||||||||||
| Diluted EPS (GAAP) | $ | 1.71 | $ | 0.75 | $ | 3.11 | $ | 1.90 | |||||||||||||||
| Diluted EPS (adjusted) | $ | 1.77 | $ | 0.88 | $ | 3.11 | $ | 2.24 | |||||||||||||||
(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.
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