[Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) [Fiscal Year and Fourth Quarter 2024 Highlights](index=1&type=section&id=Fiscal%20Year%20and%20Fourth%20Quarter%202024%20Highlights) Houlihan Lokey reported fiscal year 2024 revenues of $1.91 billion, a 6% increase year-over-year, with a diluted EPS of $4.11. The fourth quarter saw record revenues of $520 million, up 17% from the prior year, with a diluted EPS of $1.18. The company also announced an increase in its quarterly dividend to $0.57 per share Fiscal Year 2024 vs. 2023 Performance | Metric | Fiscal Year 2024 | Fiscal Year 2023 | Change | | :--- | :--- | :--- | :--- | | Revenues | $1.91 billion | $1.81 billion | +6% | | Net Income (GAAP) | $280 million | $254 million | +10.2% | | Diluted EPS (GAAP) | $4.11 | $3.76 | +9.3% | | Net Income (Adjusted) | $310 million | $315 million | -1.6% | | Diluted EPS (Adjusted) | $4.49 | $4.54 | -1.1% | Q4 Fiscal 2024 vs. Q4 2023 Performance | Metric | Q4 Fiscal 2024 | Q4 Fiscal 2023 | Change | | :--- | :--- | :--- | :--- | | Revenues | $520 million | $445 million | +16.9% | | Net Income (GAAP) | $81 million | $60 million | +35.0% | | Diluted EPS (GAAP) | $1.18 | $0.88 | +34.1% | | Net Income (Adjusted) | $88 million | $77 million | +14.3% | | Diluted EPS (Adjusted) | $1.27 | $1.11 | +14.4% | - The Board of Directors announced an increase in the quarterly dividend to **$0.57 per share**[1](index=1&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) The CEO, Scott Beiser, highlighted the record-breaking fourth-quarter revenues and a 6% annual revenue growth despite a challenging market. He attributed this success to the firm's diversified business model and stability. While entering fiscal 2025 with good momentum, he remains cautious about the slow pace of recovery in the M&A environment - The company achieved its highest fourth-quarter revenues ever, with a **17% increase** compared to the same quarter last year[4](index=4&type=chunk) - Full fiscal year 2024 revenues were up **6%** versus the prior year, which is considered a good result in a challenging market[4](index=4&type=chunk) - The firm's performance is credited to its diversified business model and stability through economic cycles[4](index=4&type=chunk) - The company is realistic about the pace of recovery in what is described as a "sluggish M&A environment"[4](index=4&type=chunk) [Detailed Financial Analysis](index=2&type=section&id=Detailed%20Financial%20Analysis) [Revenues Analysis](index=2&type=section&id=Revenues%20Analysis) Fiscal year 2024 revenues grew 6% to $1.91 billion, primarily driven by a strong 32% increase in Financial Restructuring (FR) revenues, which compensated for a 2% decrease in Corporate Finance (CF) revenues. The fourth quarter showed broad strength, with revenues up 17% to $520 million, reflecting growth across all segments: CF (+12%), FR (+29%), and Financial and Valuation Advisory (FVA) (+14%) Fiscal Year 2024 Revenue by Segment (vs. FY 2023) | Segment | FY 2024 Revenues | YoY Change | | :--- | :--- | :--- | | Corporate Finance | $1,106.8M | -2% | | Financial Restructuring | $522.0M | +32% | | Financial and Valuation Advisory | $285.6M | ~0% | | **Total Revenues** | **$1,914.4M** | **+6%** | Q4 Fiscal 2024 Revenue by Segment (vs. Q4 2023) | Segment | Q4 2024 Revenues | YoY Change | | :--- | :--- | :--- | | Corporate Finance | $287.6M | +12% | | Financial Restructuring | $155.4M | +29% | | Financial and Valuation Advisory | $77.5M | +14% | | **Total Revenues** | **$520.5M** | **+17%** | [Expenses Analysis](index=2&type=section&id=Expenses%20Analysis) For fiscal year 2024, GAAP employee compensation expenses rose to $1.21 billion, maintaining a stable compensation ratio of 63.4%. Non-compensation expenses increased to $338 million, driven by higher rent and professional fees. The GAAP effective tax rate saw a significant rise to 28.2% from 21.5% in the prior year, mainly due to decreased stock compensation deductions and higher foreign taxes. Similar expense growth trends were observed in the fourth quarter Fiscal Year 2024 Expense Ratios (GAAP) | Expense Category | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Employee compensation (% of Revenues) | 63.4% | 63.4% | | Non-compensation (% of Revenues) | 17.7% | 17.7% | | Provision for Income Taxes (% of Pre-Tax Income) | 28.2% | 21.5% | - The increase in FY2024 GAAP non-compensation expenses was primarily due to higher rent expense and professional fees[13](index=13&type=chunk) - The FY2024 effective tax rate increased mainly because of lower stock compensation deductions, higher taxes from foreign operations, and a non-recurring tax benefit in the prior year from a state audit closure[14](index=14&type=chunk) - In Q4 2024, GAAP non-compensation expenses increased primarily due to a rise in professional fees and travel, meals, and entertainment expenses[16](index=16&type=chunk) [Segment Performance](index=4&type=section&id=Segment%20Performance) In the fourth quarter of fiscal 2024, Corporate Finance revenue increased to $288 million, driven by a higher average transaction fee despite fewer closed deals. Financial Restructuring revenue grew to $155 million, also due to larger average transaction fees. Financial and Valuation Advisory revenue rose to $77 million, benefiting from an increase in the number of fee events, which was attributed to improvements in the M&A markets Corporate Finance Performance - Q4 2024 vs Q4 2023 | Metric | Q4 2024 | Q4 2023 | | :--- | :--- | :--- | | Revenues | $287.6M | $256.4M | | of Closed transactions | 121 | 140 | Financial Restructuring Performance - Q4 2024 vs Q4 2023 | Metric | Q4 2024 | Q4 2023 | | :--- | :--- | :--- | | Revenues | $155.4M | $120.4M | | of Closed transactions | 35 | 38 | Financial and Valuation Advisory Performance - Q4 2024 vs Q4 2023 | Metric | Q4 2024 | Q4 2023 | | :--- | :--- | :--- | | Revenues | $77.5M | $68.0M | | of Fee Events | 1,025 | 957 | [Shareholder Information](index=5&type=section&id=Shareholder%20Information) [Dividend Announcement](index=5&type=section&id=Dividend%20Announcement) The Board of Directors has approved an increased regular quarterly cash dividend of $0.57 per share for both Class A and Class B common stock. The dividend is scheduled to be paid on June 15, 2024, to shareholders of record as of the close of business on June 3, 2024 - A quarterly cash dividend of **$0.57 per share** was declared for Class A and Class B common stock[25](index=25&type=chunk) - The dividend is payable on **June 15, 2024**[25](index=25&type=chunk) - The record date for the dividend is the close of business on **June 3, 2024**[25](index=25&type=chunk) [Appendix: Financial Statements](index=6&type=section&id=Appendix%3A%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, Houlihan Lokey's total assets grew to $3.17 billion from $2.97 billion in the prior year, driven by increases in unbilled work in process and property/equipment. Total liabilities saw a slight decrease to $1.33 billion from $1.36 billion. Consequently, total stockholders' equity increased significantly to $1.84 billion from $1.61 billion year-over-year Balance Sheet Summary (as of March 31) | (In thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $721,235 | $714,439 | | Total assets | $3,170,759 | $2,968,814 | | Total liabilities | $1,334,009 | $1,355,517 | | Total stockholders' equity | $1,836,750 | $1,613,297 | [Condensed Consolidated Statements of Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the fiscal year ended March 31, 2024, the company generated $1.91 billion in revenues, an increase from $1.81 billion in the previous year. Operating income rose to $362.9 million from $341.7 million. Net income attributable to the company increased to $280.3 million, or $4.11 per diluted share, compared to $254.2 million, or $3.76 per diluted share, in fiscal 2023 Income Statement Summary (Year Ended March 31) | (In thousands, except per share data) | 2024 | 2023 | | :--- | :--- | :--- | | Revenues | $1,914,404 | $1,809,447 | | Operating income | $362,861 | $341,738 | | Net income | $280,301 | $254,223 | | Fully diluted EPS | $4.11 | $3.76 | [Reconciliation of GAAP to Adjusted Financial Information](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Adjusted%20Financial%20Information) The company provided a reconciliation from GAAP to non-GAAP (adjusted) results. For fiscal year 2024, GAAP net income of $280.3 million was adjusted to $310.4 million. Key adjustments included adding back $36.2 million in acquisition-related retention payments and $10.8 million in acquisition amortization, among other items, net of tax effects. This resulted in an adjusted diluted EPS of $4.49, compared to the GAAP diluted EPS of $4.11 FY 2024 GAAP to Adjusted Net Income Reconciliation | (In thousands) | Amount | | :--- | :--- | | **Net income (GAAP)** | **$280,301** | | Plus: Adjustments (net of tax) | $30,122 | | **Net income (adjusted)** | **$310,423** | FY 2024 GAAP to Adjusted Diluted EPS Reconciliation | Metric | Amount | | :--- | :--- | | **Diluted EPS (GAAP)** | **$4.11** | | **Diluted EPS (adjusted)** | **$4.49** | - Major pre-tax adjustments for fiscal year 2024 included **$36.2 million** for acquisition-related retention payments, **$10.8 million** for acquisition amortization, and a **$10.4 million** change in acquisition earnout liability fair value[36](index=36&type=chunk)

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Houlihan Lokey (HLI) , which belongs to the Zacks Financial - Miscellaneous Services industry, could be a great candidate to consider.This investment banking company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 9.96%.For ...

SÃO PAULO--(BUSINESS WIRE)--Houlihan Lokey, Inc. (NYSE:HLI), the global investment bank, announced today that Rafael Pereira has been appointed as a Senior Advisor to assist the firm with its expansion in Brazil. Mr. Pereira has more than two decades of experience as a tech entrepreneur and executive, building and growing technology-based businesses from spearheading startups to publicly listed companies. Mr. Pereira co-founded Open Co, Brazil’s leading consumer financing FinTech that democratizes acces ...

CHICAGO--(BUSINESS WIRE)--Houlihan Lokey, Inc. (NYSE:HLI), the global investment bank, announced today that Brent Shepherd has joined as a Managing Director in its Capital Markets Group. Based in Chicago, Mr. Shepherd will co-lead the firm’s Healthcare Capital Markets efforts alongside Managing Director Neha Shah. Mr. Shepherd joins following 24 years at Capital One’s Healthcare Banking and Lending unit (formerly GE Capital Healthcare Financial Services prior to its sale to Capital One in 2015), where he ...

LOS ANGELES--(BUSINESS WIRE)--Houlihan Lokey, Inc. (NYSE:HLI), the global investment bank, today announced that Scott Beiser will step down as Chief Executive Officer, a role he has held since 2003. Scott Adelson, Co-President and Global Co-Head of Corporate Finance, will succeed Mr. Beiser as Chief Executive Officer. Mr. Beiser will remain an executive officer of the firm as a Co-Chairman of Houlihan Lokey. In addition to these changes, Eric Siegert, Global Co-Head of Financial Restructuring, will assume ...

Revenue and Financial Performance - Total revenues for the three months ended December 31, 2023, were $511.1 million, a 12% increase compared to $456.5 million in the same period in 2022[131][132] - Revenues for the nine months ended December 31, 2023 were $1.39 billion, a 2% increase compared to $1.36 billion in the same period in 2022[136] - Corporate Finance revenues for the three months ended December 31, 2023 were $310.5 million, a 6% increase from $291.7 million in the same period in 2022, driven by higher average transaction fees[144] - Financial Restructuring revenues for the three months ended December 31, 2023 were $128.6 million, a 30% increase from $98.8 million in the same period in 2022, driven by higher average transaction fees[148] - Financial and Valuation Advisory revenues for the three months ended December 31, 2023 were $72.1 million, a 9% increase from $65.9 million in the same period in 2022, driven by an increase in the number of Fee Events[152] Operating Expenses and Compensation - Operating expenses for the three months ended December 31, 2023, were $414.6 million, up 11% from $372.3 million in the same period in 2022[131][133] - Employee compensation and benefits expense increased by 12% to $324.0 million for the three months ended December 31, 2023, compared to $289.3 million in the same period in 2022[131][133] - Non-compensation expenses rose by 9% to $90.6 million for the three months ended December 31, 2023, compared to $83.0 million in the same period in 2022[131][133] - Operating expenses for the nine months ended December 31, 2023 were $1.13 billion, a 2% increase from $1.11 billion in the same period in 2022, with employee compensation and benefits expense rising to $884.1 million, also a 2% increase[137] - Corporate expenses for the three months ended December 31, 2023 were $54.3 million, a 4% increase from $52.2 million in the same period in 2022, driven by higher compensation expenses[156] Income and Taxes - Income before provision for income taxes increased by 23% to $102.6 million for the three months ended December 31, 2023, compared to $83.6 million in the same period in 2022[131] - Net income attributable to Houlihan Lokey, Inc. was $70.8 million for the three months ended December 31, 2023, a 12% increase from $63.1 million in the same period in 2022[131] - Provision for income taxes for the three months ended December 31, 2023 was $31.8 million, reflecting an effective tax rate of 31.0%, up from $20.6 million and 24.6% in the same period in 2022 due to increased state and foreign taxes[135] - Provision for income taxes for the nine months ended December 31, 2023 was $73.3 million, reflecting an effective tax rate of 26.9%, up from $49.1 million and 20.2% in the same period in 2022 due to increased state and foreign taxes[139] Assets and Liabilities - Total assets as of December 31, 2023, were $2.96 billion, slightly down from $2.97 billion as of March 31, 2023[115][117] - Corporate Finance segment assets increased to $1.09 billion as of December 31, 2023, up from $1.02 billion as of March 31, 2023[115] - Financial and Valuation Advisory segment assets rose to $179.0 million as of December 31, 2023, compared to $165.4 million as of March 31, 2023[115] - As of December 31, 2023, the company had $464.8 million of cash in foreign subsidiaries, down from $475.0 million as of March 31, 2023[160] Cash Flow and Financing - Operating cash flows for the nine months ended December 31, 2023, resulted in a net inflow of $103.1 million, driven by net income of $199.2 million, a 2% increase from the previous year[167][168] - Investing activities for the nine months ended December 31, 2023, resulted in a net outflow of $55.7 million, primarily due to purchases of property and equipment[168] - Financing activities for the nine months ended December 31, 2023, resulted in a net outflow of $214.4 million, mainly due to dividends paid and employee tax obligations on share-based awards[168] - The company's cash, cash equivalents, and restricted cash decreased by $158.9 million to $555.9 million as of December 31, 2023, a 1% increase from the previous year[167] - The company has a syndicated revolving line of credit allowing borrowings of up to $100.0 million, with an uncommitted expansion option to increase the total credit facility to $200.0 million, maturing on August 23, 2025[163] - As of December 31, 2023, the company had no principal outstanding under the HLI Line of Credit and expects to continue compliance with loan covenants, including maintaining a minimum consolidated EBITDA of $150 million and a consolidated leverage ratio of less than 2.00 to 1.00[163] Other Income and Expenses - Other (income)/expense, net was $(6.0) million for the three months ended December 31, 2023, compared to $0.6 million in the same period in 2022[131][134] - Other (income)/expense, net was $(12.3) million for the nine months ended December 31, 2023, compared to $7.4 million in the same period in 2022, primarily due to increased interest and dividend income[138] Legal and Compliance - The company agreed to pay a civil monetary penalty of $15.0 million to the SEC as part of a settlement related to compliance with records preservation requirements[166] Foreign Currency and International Exposure - The net impact of foreign currency fluctuations on other comprehensive income was $25,574 for the three months ended December 31, 2023, and $8,665 for the nine months ended December 31, 2023[179] - The company had one foreign currency forward contract outstanding as of December 31, 2023, with a notional value of $2.0 million, resulting in a net gain of $11 during the three months ended December 31, 2023[181] - The company's international expansion increases exposure to foreign currency risks, with potential impacts on revenues, expenses, and the value of assets and liabilities in foreign subsidiaries[182]

Houlihan Lokey, Inc. (HLI) is scheduled to release third-quarter fiscal 2024 results on Feb 1, 2024, after market close. Q3 EstimatesThe Zacks Consensus Estimate for Houlihan Lokey’s third-quarter fiscal 2024 earnings per share is pegged at $1.12, which indicates a 1.8% decline from the prior-year quarter’s reported figure.The consensus mark for revenues is pegged at $484 million, suggesting 6.1% growth from the year-ago quarter’s reported number.Earnings Surprise HistoryHoulihan Lokey’s bottom line beat es ...

Bankruptcies have continued rising in the past few years as companies struggle in this high-interest rate environment. Data by S&P shows that there were almost 600 major bankruptcies during the year, with the most notable ones being WeWork, Lordstown Motors, Rite Aid, and Bed Bath and Beyond being the top ones.Bankruptcies trend to continue in 2024Copy link to sectionThe situation, unfortunately, will continue this year as many companies that borrowed in a low-interest rate environment hit a wall of maturit ...

NEW YORK--(BUSINESS WIRE)--Houlihan Lokey, Inc. (NYSE:HLI), the global investment bank, announced today that Michael Hommeyer has joined as a Managing Director in its Capital Markets Group. Based in New York, Mr. Hommeyer will spearhead a new syndicate function that focuses on expanding the firm’s investor coverage, distribution capabilities, and market insights as they pertain to U.S. private credit placements. Mr. Hommeyer joins the firm after spending 25 years at Morgan Stanley. Most recently, he serv ...

LOS ANGELES & NEW YORK--(BUSINESS WIRE)--Houlihan Lokey, Inc. (NYSE:HLI), the global investment bank, today announced that it will release its third quarter results for the 2024 fiscal year on Thursday, February 1, 2024, after the close of trading on the New York Stock Exchange. Houlihan Lokey will host a conference call at 5:00 p.m. (ET) that same day to review the results. On the call, Scott Beiser, Chief Executive Officer, and Lindsey Alley, Chief Financial Officer, will discuss the fiscal 2024 third qu ...