UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ______________ Commission File Number: 001-37537 th Houlihan Lokey, Inc. (Exact name of registrant as specified in its charter) Delaware 95-2770395 (State or ot ...

Mission We help our clients achieve superior outcomes by providing thoughtful, caring advice while acting with honor and integrity We are strategic in our approach to growth and are committed to creating lasting value for our shareholders We maintain an intellectually stimulating, fair, and fun place to work We seek to improve our local and global communities through the responsible and direct actions of our firm and its people Houlihan Lokey 32 HL.com We maintain a revolver of $100 million which has remain ...

Houlihan Lokey, Inc. (NYSE:HLI) Q1 2025 Earnings Conference Call July 30, 2024 5:00 PM ET Company Participants Christopher Crain - General Counsel and Secretary Scott Adelson - Chief Executive Officer Lindsey Alley - Chief Financial Officer Conference Call Participants Brennan Hawken - UBS James Yaro - Goldman Sachs Devin Ryan - JMP Securities Ken Worthington - JP Morgan Brendan O'Brien - Wolfe Research Ryan Kenny - Morgan Stanley Jim Mitchell - Seaport Global Aidan Hall - KBW Operator Good day, ladies and ...

Basic 65,031,216 63,806,156 Fully diluted 68,501,059 68,000,392 Earnings per share attributable to Houlihan Lokey, Inc. Basic $ 1.37 $ 0.96 Fully diluted $ 1.30 $ 0.90 Financial and Valuation Advisory FVA revenues increased 4% to $68 million for the first quarter ended June 30, 2024, compared with $65 million for the first quarter ended June 30, 2023. Revenues increased primarily due to a increase in the number of Fee Events. The increase in the number of Fee Events was driven by expanding our scope of work ...

Over the last four quarters, the company has surpassed consensus EPS estimates three times. Houlihan Lokey shares have added about 23.2% since the beginning of the year versus the S&P 500's gain of 14.5%. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings ...

The earnings report, which is expected to be released on July 30, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. This investment banking company is expected to post quarterly earnings of $1.22 per share in its upcoming report, which represents a year-over-year change of +37.1%. Estimate Revisions Trend Earnings Whisper The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimat ...

Global Operations and Workforce - As of March 31, 2024, the company had 1,853 financial professionals across 36 offices globally, serving over 2,000 clients annually[19] - The company employed 2,601, 2,610, and 2,257 people worldwide as of March 31, 2024, 2023, and 2022, respectively[39] - The company's European advisory business operates through subsidiaries in the UK, Germany, France, Spain, Italy, the Netherlands, Sweden, Belgium, and Switzerland, with regulated services provided by HL UK, HLA Ltd, and HLE GmbH[47] - HLE GmbH was established to mitigate Brexit impacts, allowing the company to continue regulated investment services in the EU under German regulatory authority BaFin[49] - HLE GmbH has exercised EU financial services passport rights to provide cross-border services and establish branches in France and Spain[50] - In the Middle East, the company operates through Houlihan Lokey (MEA Financial Advisory) Ltd., licensed by the Dubai Financial Services Authority (DFSA) to provide regulated financial services[51] - In Asia Pacific, the company operates through subsidiaries regulated by the Australian Securities & Investments Commission, Hong Kong's Securities and Futures Commission, and India's Securities and Exchange Board of India (SEBI)[53][54] Business Segments and Advisory Services - The Corporate Finance (CF) segment had 223 Managing Directors as of March 31, 2024, focusing on mid-cap transactions and global M&A advisory[21] - The Financial Restructuring (FR) segment had 54 Managing Directors globally, making it one of the largest restructuring groups in the investment banking industry[29] - The Financial and Valuation Advisory (FVA) segment had 39 Managing Directors, representing one of the largest valuation and financial opinion practices in the United States[34] - The company's M&A business is known for its sell-side advisory, consistently selling more companies under $1 billion than any competitor[24] - The company's Capital Markets Advisory leverages relationships with traditional and non-traditional capital providers, including institutional credit funds and private equity[27] - The company's revenues are generated from three business segments: Corporate Finance (CF), Financial Restructuring (FR), and Financial and Valuation Advisory (FVA)[248] - CF revenues primarily consist of Completion Fees, Retainer Fees, and Progress Fees, with Completion Fees recognized upon successful transaction closure[256] - FR revenues include Retainer Fees and Progress Fees recognized over time, and Completion Fees recognized upon transaction closure[257] - FVA revenues are primarily from valuation services and financial opinions, recognized at a point in time, with some advisory services recognized over time based on hourly rates[258] Financial Performance and Metrics - Total assets increased to $3,170.8 million in 2024 from $2,968.8 million in 2023, reflecting a growth of 6.8%[236] - Revenues for the year ended March 31, 2024, were $1,914.4 million, up 5.8% from $1,809.4 million in 2023[238] - Net income attributable to Houlihan Lokey, Inc. rose to $280.3 million in 2024, a 10.3% increase from $254.2 million in 2023[238] - Operating income grew to $362.9 million in 2024, up 6.2% from $341.7 million in 2023[238] - Employee compensation and benefits increased to $1,213.6 million in 2024, up 5.7% from $1,147.9 million in 2023[238] - Total stockholders' equity reached $1,836.8 million in 2024, a 13.8% increase from $1,613.3 million in 2023[236] - Cash and cash equivalents stood at $721.2 million in 2024, slightly up from $714.4 million in 2023[236] - Earnings per share (fully diluted) were $4.11 in 2024, compared to $3.76 in 2023, reflecting a 9.3% increase[238] - Goodwill increased to $1,127.5 million in 2024 from $1,087.8 million in 2023, a 3.7% rise[236] - Operating lease liabilities grew to $415.4 million in 2024, up 10.8% from $374.9 million in 2023[236] - Net income for the year ended March 31, 2024, was $280,301 thousand, compared to $254,223 thousand in 2023 and $438,324 thousand in 2022[244] - Net cash provided by operating activities in 2024 was $328,458 thousand, a significant increase from $136,273 thousand in 2023 and $736,604 thousand in 2022[244] - The company paid $148,454 thousand in dividends in 2024, up from $140,384 thousand in 2023 and $114,806 thousand in 2022[244] - Cash, cash equivalents, and restricted cash at the end of 2024 were $721,854 thousand, slightly higher than $714,812 thousand in 2023 but lower than $834,070 thousand in 2022[244] Regulatory Compliance and Risks - The company's broker-dealer subsidiary, Houlihan Lokey Capital, is regulated by the SEC and FINRA, with ongoing regulatory reorganization expected to be completed by the end of Q2 2024[42] - The company is subject to compliance with the USA PATRIOT Act and FinCEN regulations, requiring anti-money laundering programs and customer due diligence, including verifying beneficial ownership and maintaining internal controls[45] - Compliance with international regulations, including FCPA and anti-bribery laws, poses risks of penalties and reputational damage[77] - The company incurred a $15 million civil penalty to settle an SEC investigation regarding compliance with records preservation requirements[102] - The company's regulatory compliance costs have increased in recent years, including legal fees and payments to regulatory authorities[102] - The company's cybersecurity risk management program is integrated into its overall enterprise risk management program[124] - The company's cybersecurity risk management program has not identified any material risks from known cybersecurity threats that have affected or are likely to affect operations, business strategy, results of operations, or financial condition[125] - The company's cybersecurity governance includes regular reports to the Audit Committee and the full board of directors, with management updates on material cybersecurity incidents[126][127] - The cybersecurity team, with an average of 25 years of experience, leads monthly meetings and reviews key cybersecurity metrics, monitoring public threats and consulting with external experts[128] - The company's cybersecurity measures include risk assessment processes, security controls, incident response plans, and third-party risk management for service providers[129] Corporate Governance and Ownership - Approximately 1,000 present and former employee shareholders collectively owned 25% of the company's equity as of March 31, 2024[36] - The company's organizational structure includes a voting trust controlling approximately 77.1% of the total voting power as of March 31, 2024[59] - The company qualifies as a "controlled company" under NYSE rules, allowing exemptions from certain corporate governance requirements[60] - The HL Voting Trust controls 77.1% of the voting power of the company's outstanding capital stock as of March 31, 2024[105] - The HL Voting Trust beneficially owns 17,590,406 shares of common stock, representing approximately 25.1% of the economic interest[105] - 17,590,406 shares of Class A common stock are eligible for sale upon conversion of outstanding Class B common stock as of March 31, 2024[114] - The company's board of directors has the authority to issue preferred stock, which could affect the rights of Class A common stockholders[119] - The company's dividend policy may change, and future dividends are subject to various factors including financial condition and capital requirements[115] - The company's share price may be volatile due to factors such as limited shares outstanding and market fluctuations[117] - The company qualifies as a "controlled company" under NYSE listing standards, allowing exemptions from certain corporate governance requirements[107] Market and Economic Risks - The company's business is materially affected by global financial market conditions, including economic downturns, which can reduce transaction volumes and demand for M&A, capital raising, and advisory services[65] - Profitability may be adversely affected by rising interest rates and inflation, potentially impacting transaction volumes and financial condition[66] - Revenue from CF and FR business segments is highly volatile, with advisory fees contingent on transaction milestones, leading to unpredictable quarterly results[68] - Advisory fees are expected to remain a significant revenue source, but reliance on contingent fees may increase working capital volatility and stock price fluctuations[69] - Acquisitions and joint ventures pose risks, including integration challenges, increased costs, and potential failure to realize anticipated benefits[70][71] - Goodwill and intangible assets totaled $1.32 billion as of March 31, 2024, with potential impairment risks due to market conditions or operational performance[73] - International operations contributed 30% of revenue in fiscal 2024, with growth plans in new regions carrying risks such as currency fluctuations and regulatory challenges[74][76] - Foreign currency exchange rate fluctuations resulted in a net cash loss of $0.4 million in fiscal 2024, compared to $12.1 million in fiscal 2023[78] - Retention of senior professionals is critical, with potential adverse effects on business if key personnel depart[80] - Reputational and legal risks arise from employee misconduct, conflicts of interest, or failure to meet client expectations[81][82] - The company faces risks related to employee misconduct and potential reputational damage, which could lead to regulatory sanctions and legal liability[83] - The company's growth initiatives may not achieve expected benefits due to delays, increased costs, or inaccurate assumptions[84] - Sustaining growth requires additional resources, and failure to manage expansion effectively could impact revenue and expenses[85] - Operational risks, including reliance on third-party service providers, could impair the company's business and reputation[87] - The company is vulnerable to cyber-attacks and security breaches, which could disrupt operations and lead to financial losses[88] - Revenue is dependent on the number of fee-paying clients and transaction size, with a significant reduction potentially impacting operating results[90] - The company accrued net bad debt expense of $7.3 million in fiscal 2024 and $6.4 million in fiscal 2023 related to uncollectible accounts[92] - The company had $37.8 million of other liabilities as of March 31, 2024, and may face challenges servicing future indebtedness[93] - Inflation could increase costs and reduce client demand, adversely affecting the company's financial condition[94] - The company faces intense competition from larger financial institutions and independent advisory firms, which could lead to pricing pressures[97] Financial Instruments and Hedging - The company is not subject to significant market or credit risk, with cash and cash equivalents held in high-credit-rated financial institutions[206] - The company faces foreign currency risk due to cash balances and assets held in non-U.S. accounts, with a net impact of $(3.8) million, $(19.5) million, and $(23.2) million in other comprehensive income for the years ended March 31, 2024, 2023, and 2022, respectively[210] - The company uses foreign currency forward contracts to hedge exposure to currency fluctuations, with a notional value of $38.3 million and €6.5 million as of March 31, 2024, and 2023, respectively[212] - The company held a foreign currency forward contract between the U.S. dollar and pound sterling with a notional value of $38.3 million as of March 31, 2024[262] - The fair value of foreign currency forward contracts resulted in a gain of $55 included in Other operating expenses for the year ended March 31, 2024[262] Accounting and Financial Reporting - The company's internal control over financial reporting was deemed effective as of March 31, 2024, based on criteria established by the Committee of Sponsoring Organizations of the Treadway Commission[228] - The company's investment securities consist primarily of corporate debt and U.S. treasury securities, classified as trading and measured at fair value[270] - The allowance for credit losses on accounts receivable and unbilled work in progress is estimated using an internal current expected credit losses model[271] - The company's goodwill and intangible assets are reviewed annually for impairment, with no impairment identified as of March 31, 2024[282][283] - The company accounts for income taxes in accordance with ASC Topic 740, recognizing deferred tax assets and liabilities based on enacted tax laws and rates[274] - The company evaluates the potential impact of the OECD's Pillar Two minimum tax on future periods, with EU effective dates starting January 1, 2024[277] - The company recognizes lease liabilities and right-of-use assets based on the present value of future lease payments, utilizing a portfolio approach for similar leases[278] - The company records contract assets for costs incurred in fulfilling advisory contracts with point-in-time revenue recognition, amortizing these costs based on fee revenue recognition[288] - Receivables, net increased to $192,952 thousand as of March 31, 2024, compared to $175,023 thousand in the previous year[289] - Unbilled work in progress, net of allowance for credit losses, rose to $192,012 thousand from $115,045 thousand year-over-year[289] - Contract Assets decreased slightly to $6,678 thousand from $7,006 thousand[289] - Contract Liabilities reduced to $33,139 thousand from $40,695 thousand[289] - Revenues recognized from Deferred income were $28.4 million for the year ended March 31, 2024, up from $16.8 million in the previous year[290] - The Company provided financial advisory services to affiliates and related parties, generating fees of $9,044 thousand in 2024, compared to $284 thousand in 2023 and $0 in 2022[292] - Accounts receivable and Unbilled work in progress related to these services were $37 thousand and $7,191 thousand, respectively, as of March 31, 2024[292] Real Estate and Leasing - The company leases office space in multiple U.S. and international locations, with no owned real property, and considers these arrangements adequate for present and future needs[130][131]

Total revenues improved 16.9% year over year to $520 million in the quarter under review. The top line beat the Zacks Consensus Estimate by 3.7%. Q4 Performance Details Stable corporate finance and financial and valuation advisory segments and a growing financial restructuring business fueled the company's results. The company hired 11 managing directors and promoted 14 directors in the quarter. Total operating expenses increased 18% year over year to $417.8 million. The year-over-year rise was due to highe ...

Houlihan Lokey, Inc. (NYSE:HLI) Q4 2024 Earnings Conference Call May 8, 2024 5:00 PM ET Company Participants Scott Beiser - CEO Lindsey Alley - CFO Scott Adelson - Co-President and Co-Head of Corporate Finance Conference Call Participants Brennan Hawken - UBS Alex Jenkins - Citizen Brendan O'Brien - Wolfe Research Michael Cho - JP Morgan James Yaro - Goldman Sachs Ryan Kenny - Morgan Stanley Operator Good day, ladies and gentlemen. Thank you for standing by and welcome to Houlihan Lokey's Fourth Quarter and ...

Houlihan Lokey Reports Fiscal Year and Fourth Quarter 2024 Financial Results – Fiscal Year 2024 Revenues of $1.91 billion – – Fiscal Year 2024 Diluted EPS of $4.11 – – Adjusted Fiscal Year 2024 Diluted EPS of $4.49 – – Fourth Quarter Fiscal 2024 Revenues of $520 million – – Fourth Quarter Fiscal 2024 Diluted EPS of $1.18 – – Adjusted Fourth Quarter Fiscal 2024 Diluted EPS of $1.27 – – Announces an Increase in the Quarterly Dividend to $0.57 per Share – LOS ANGELES and NEW YORK - May 8, 2024 - Houlihan Lokey ...