(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Title of Each Class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Emerging growth company |
Date: | October 26, 2023 | Houlihan Lokey, Inc. | ||||||||||||
By: | /s/ J. Lindsey Alley | |||||||||||||
Name: J. Lindsey Alley | ||||||||||||||
Position: Chief Financial Officer |
Exhibit No. | Description | |||||||
99.1 |
(In thousands, except per share data) | U.S. GAAP | ||||||||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenues by segment | |||||||||||||||||||||||
Corporate Finance | $ | 281,684 | $ | 315,016 | $ | 508,735 | $ | 578,967 | |||||||||||||||
Financial Restructuring | 114,670 | 97,694 | 238,038 | 176,532 | |||||||||||||||||||
Financial and Valuation Advisory | 70,635 | 76,827 | 136,045 | 152,682 | |||||||||||||||||||
Revenues | $ | 466,989 | $ | 489,537 | $ | 882,818 | $ | 908,181 | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Employee compensation and benefits | $ | 296,542 | $ | 309,859 | $ | 560,025 | $ | 575,594 | |||||||||||||||
Non-compensation | 80,170 | 90,307 | 159,169 | 165,646 | |||||||||||||||||||
Operating income | 90,277 | 89,371 | 163,624 | 166,941 | |||||||||||||||||||
Other expense, net | (3,296) | 5,104 | (6,301) | 6,853 | |||||||||||||||||||
Income before provision for income taxes | 93,573 | 84,267 | 169,925 | 160,088 | |||||||||||||||||||
Provision for income taxes | 26,542 | 23,537 | 41,504 | 28,576 | |||||||||||||||||||
Net income attributable to Houlihan Lokey, Inc. | $ | 67,031 | $ | 60,730 | $ | 128,421 | $ | 131,512 | |||||||||||||||
Diluted earnings per share attributable to Houlihan Lokey, Inc. | $ | 0.99 | $ | 0.87 | $ | 1.89 | $ | 1.90 |
U.S. GAAP | Adjusted (Non-GAAP) * | ||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Employee compensation and benefits | $ | 296,542 | $ | 309,859 | $ | 287,200 | $ | 301,063 | |||||||||||||||
% of Revenues | 63.5 | % | 63.3 | % | 61.5 | % | 61.5 | % | |||||||||||||||
Non-compensation | $ | 80,170 | $ | 90,307 | $ | 75,345 | $ | 72,358 | |||||||||||||||
% of Revenues | 17.2 | % | 18.4 | % | 16.1 | % | 14.8 | % | |||||||||||||||
Per full time employee (1) | $ | 30 | $ | 38 | $ | 29 | $ | 30 | |||||||||||||||
Provision for income taxes | $ | 26,542 | $ | 23,537 | $ | 30,329 | $ | 32,084 | |||||||||||||||
% of Pre-tax income | 28.4 | % | 27.9 | % | 28.4 | % | 27.9 | % |
U.S. GAAP | Adjusted (Non-GAAP) * | ||||||||||||||||||||||
Six Months Ended September 30, | |||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Employee compensation and benefits | $ | 560,025 | $ | 575,594 | $ | 542,933 | $ | 558,530 | |||||||||||||||
% of Revenues | 63.4 | % | 63.4 | % | 61.5 | % | 61.5 | % | |||||||||||||||
Non-compensation | $ | 159,169 | $ | 165,646 | $ | 150,989 | $ | 131,932 | |||||||||||||||
% of Revenues | 18.0 | % | 18.2 | % | 17.1 | % | 14.5 | % | |||||||||||||||
Per full time employee (1) | $ | 60 | $ | 69 | $ | 57 | $ | 55 | |||||||||||||||
Provision for income taxes | $ | 41,504 | $ | 28,576 | $ | 55,828 | $ | 57,289 | |||||||||||||||
% of Pre-tax income | 24.4 | % | 17.9 | % | 28.7 | % | 26.5 | % |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Corporate Finance | |||||||||||||||||||||||
Revenues | $ | 281,684 | $ | 315,016 | $ | 508,735 | $ | 578,967 | |||||||||||||||
# of Managing Directors | 211 | 210 | 211 | 210 | |||||||||||||||||||
# of Closed transactions (1) | 117 | 114 | 212 | 238 |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Financial Restructuring | |||||||||||||||||||||||
Revenues | $ | 114,670 | $ | 97,694 | $ | 238,038 | $ | 176,532 | |||||||||||||||
# of Managing Directors | 60 | 56 | 60 | 56 | |||||||||||||||||||
# of Closed transactions (1) | 31 | 24 | 61 | 40 |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Financial and Valuation Advisory | |||||||||||||||||||||||
Revenues | $ | 70,635 | $ | 76,827 | $ | 136,045 | $ | 152,682 | |||||||||||||||
# of Managing Directors | 40 | 40 | 40 | 40 | |||||||||||||||||||
# of Fee Events (1) | 852 | 890 | 1,255 | 1,404 |
Investor Relations 212.331.8225 IR@HL.com | OR | Media Relations 212.331.8223 PR@HL.com |
(In thousands, except share data and par value) | September 30, 2023 | March 31, 2023 | |||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 493,929 | $ | 714,439 | |||||||
Restricted cash | 373 | 373 | |||||||||
Investment securities | 31,214 | 37,309 | |||||||||
Accounts receivable, net of allowance for credit losses | 152,243 | 182,029 | |||||||||
Unbilled work in process, net of allowance for credit losses | 133,787 | 115,045 | |||||||||
Income taxes receivable | 22,549 | 17,693 | |||||||||
Deferred income taxes | 106,343 | 104,941 | |||||||||
Property and equipment, net | 119,394 | 88,345 | |||||||||
Operating lease right-of-use assets | 363,719 | 333,877 | |||||||||
Goodwill | 1,086,438 | 1,087,784 | |||||||||
Other intangible assets, net | 196,652 | 203,370 | |||||||||
Other assets | 74,912 | 83,609 | |||||||||
Total assets | $ | 2,781,553 | $ | 2,968,814 | |||||||
Liabilities and Stockholders' Equity | |||||||||||
Liabilities: | |||||||||||
Accrued salaries and bonuses | $ | 552,673 | $ | 765,877 | |||||||
Accounts payable and accrued expenses | 95,125 | 113,421 | |||||||||
Deferred income | 37,370 | 40,695 | |||||||||
Deferred income taxes | 349 | 544 | |||||||||
Operating lease liabilities | 419,421 | 374,869 | |||||||||
Other liabilities | 30,539 | 60,111 | |||||||||
Total liabilities | 1,135,477 | 1,355,517 | |||||||||
Stockholders' equity: | |||||||||||
Class A common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 51,565,992 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 17,427,625 and 18,048,345 shares, respectively | 17 | 18 | |||||||||
Additional paid-in capital | 638,404 | 642,970 | |||||||||
Retained earnings | 1,087,326 | 1,033,072 | |||||||||
Accumulated other comprehensive loss | (79,723) | (62,814) | |||||||||
Total stockholders’ equity | 1,646,076 | 1,613,297 | |||||||||
Total liabilities and stockholders’ equity | $ | 2,781,553 | $ | 2,968,814 |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
(In thousands, except share and per share data) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Revenues | $ | 466,989 | $ | 489,537 | $ | 882,818 | $ | 908,181 | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Employee compensation and benefits | 296,542 | 309,859 | 560,025 | 575,594 | |||||||||||||||||||
Travel, meals, and entertainment | 14,151 | 12,370 | 30,169 | 23,420 | |||||||||||||||||||
Rent | 19,013 | 13,285 | 36,416 | 25,075 | |||||||||||||||||||
Depreciation and amortization | 7,086 | 19,475 | 13,618 | 38,618 | |||||||||||||||||||
Information technology and communications | 14,328 | 13,183 | 27,876 | 24,173 | |||||||||||||||||||
Professional fees | 10,859 | 9,598 | 20,416 | 16,067 | |||||||||||||||||||
Other operating expenses | 14,733 | 22,396 | 30,674 | 38,293 | |||||||||||||||||||
Total operating expenses | 376,712 | 400,166 | 719,194 | 741,240 | |||||||||||||||||||
Operating income | 90,277 | 89,371 | 163,624 | 166,941 | |||||||||||||||||||
Other (income)/expense, net | (3,296) | 5,104 | (6,301) | 6,853 | |||||||||||||||||||
Income before provision for income taxes | 93,573 | 84,267 | 169,925 | 160,088 | |||||||||||||||||||
Provision for income taxes | 26,542 | 23,537 | 41,504 | 28,576 | |||||||||||||||||||
Net income | $ | 67,031 | $ | 60,730 | 128,421 | 131,512 | |||||||||||||||||
Weighted average shares of common stock outstanding: | |||||||||||||||||||||||
Basic | 64,551,353 | 63,422,701 | 64,180,642 | 63,350,545 | |||||||||||||||||||
Fully diluted | 67,867,381 | 69,800,028 | 67,881,623 | 69,316,792 | |||||||||||||||||||
Earnings per share attributable to Houlihan Lokey, Inc. | |||||||||||||||||||||||
Basic | $ | 1.04 | $ | 0.96 | $ | 2.00 | $ | 2.08 | |||||||||||||||
Fully diluted | $ | 0.99 | $ | 0.87 | $ | 1.89 | $ | 1.90 |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
(In thousands, except share and per share data) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Revenues | $ | 466,989 | $ | 489,537 | $ | 882,818 | $ | 908,181 | |||||||||||||||
Employee compensation and benefits expenses | |||||||||||||||||||||||
Employee compensation and benefits expenses (GAAP) | $ | 296,542 | $ | 309,859 | $ | 560,025 | $ | 575,594 | |||||||||||||||
Less: Acquisition related retention payments | (9,342) | (8,796) | (17,092) | (17,064) | |||||||||||||||||||
Employee compensation and benefits expenses (adjusted) | 287,200 | 301,063 | 542,933 | 558,530 | |||||||||||||||||||
Non-compensation expenses | |||||||||||||||||||||||
Non-compensation expenses (GAAP) | $ | 80,170 | $ | 90,307 | $ | 159,169 | $ | 165,646 | |||||||||||||||
Less: Integration and acquisition related costs | (1,465) | (2,325) | (1,465) | (2,325) | |||||||||||||||||||
Less: Acquisition amortization | (3,360) | (15,624) | (6,715) | (31,389) | |||||||||||||||||||
Non-compensation expenses (adjusted) | 75,345 | 72,358 | 150,989 | 131,932 | |||||||||||||||||||
Operating income | |||||||||||||||||||||||
Operating income (GAAP) | $ | 90,277 | $ | 89,371 | $ | 163,624 | $ | 166,941 | |||||||||||||||
Plus: Adjustments (1) | 14,167 | 26,745 | 25,272 | 50,778 | |||||||||||||||||||
Operating income (adjusted) | 104,444 | 116,116 | 188,896 | 217,719 | |||||||||||||||||||
Other (income)/expense, net | |||||||||||||||||||||||
Other (income)/expense, net (GAAP) | $ | (3,296) | $ | 5,104 | $ | (6,301) | $ | 6,853 | |||||||||||||||
Less: Warrant revaluation | — | (1,014) | — | (2,264) | |||||||||||||||||||
Plus/(less): Change in acquisition earnout liability fair value | 816 | (2,841) | 816 | (2,841) | |||||||||||||||||||
Other (income)/expense, net (adjusted) | (2,480) | 1,249 | (5,485) | 1,748 | |||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Provision for income taxes (GAAP) | $ | 26,542 | $ | 23,537 | $ | 41,504 | $ | 28,576 | |||||||||||||||
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 | |||||||||||||||||||
Adjusted provision for income taxes | 26,542 | 23,537 | 48,803 | 42,440 | |||||||||||||||||||
Plus: Resulting tax impact (2) | 3,787 | 8,547 | 7,025 | 14,849 | |||||||||||||||||||
Provision for income taxes (adjusted) | 30,329 | 32,084 | 55,828 | 57,289 | |||||||||||||||||||
Net income | |||||||||||||||||||||||
Net income (GAAP) | $ | 67,031 | $ | 60,730 | $ | 128,421 | $ | 131,512 | |||||||||||||||
Plus: Adjustments (3) | 9,564 | 22,053 | 10,132 | 27,170 | |||||||||||||||||||
Net income (adjusted) | 76,595 | 82,783 | 138,553 | 158,682 | |||||||||||||||||||
Fully diluted shares outstanding | |||||||||||||||||||||||
Fully diluted shares outstanding (GAAP) | 67,867,381 | 69,800,028 | 67,881,623 | 69,316,792 | |||||||||||||||||||
Plus: Impact of unvested GCA retention and deferred share awards | 1,132,423 | — | 1,257,446 | — | |||||||||||||||||||
Fully diluted shares outstanding (adjusted) | 68,999,804 | 69,800,028 | 69,139,069 | 69,316,792 | |||||||||||||||||||
Diluted EPS attributable to Houlihan Lokey, Inc. (GAAP) | $ | 0.99 | $ | 0.87 | $ | 1.89 | $ | 1.90 | |||||||||||||||
Diluted EPS attributable to Houlihan Lokey, Inc. (adjusted) | $ | 1.11 | $ | 1.19 | $ | 2.00 | $ | 2.29 |
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Cover Page Document |
Oct. 26, 2023 |
---|---|
Cover page [Abstract] | |
Document Type | 8-K |
Document Period End Date | Oct. 26, 2023 |
Entity Registrant Name | Houlihan Lokey, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-37537 |
Entity Tax Identification Number | 95-2770395 |
Entity Address, Address Line One | 10250 Constellation Blvd. |
Entity Address, Address Line Two | 5th Floor |
Entity Address, City or Town | Los Angeles |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 90067 |
City Area Code | 310 |
Local Phone Number | 788-5200 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Class A Common Stock, par value $0.001 |
Trading Symbol | HLI |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001302215 |
Amendment Flag | false |
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