Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Houlihan Lokey, with a focus on how actual results compare to estimates impacting stock price movements [1] Earnings Expectations - Houlihan Lokey is expected to report quarterly earnings of $1.31 per share, reflecting an 18% increase year-over-year [2] - Revenues are projected to be $529.66 million, which is a 13.4% increase from the same quarter last year [2] Estimate Revisions - The consensus EPS estimate has been revised down by 1.53% over the last 30 days, indicating a reassessment by analysts [3] - The Most Accurate Estimate for Houlihan Lokey is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.43% [6] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a favorable Zacks Rank [5] - Houlihan Lokey currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat [6] Historical Performance - In the last reported quarter, Houlihan Lokey met the expected earnings of $1.22 per share, showing no surprise [7] - Over the past four quarters, the company has beaten consensus EPS estimates three times [7] Conclusion - An earnings beat or miss may not solely dictate stock price movements, as other factors can influence investor sentiment [8] - Houlihan Lokey does not appear to be a compelling earnings-beat candidate, and investors should consider additional factors before making decisions [8]

Houlihan Lokey, Inc. (HLI) has signed an agreement to acquire Waller Helms Advisors ("Waller Helms"). The deal, expected to be completed by Dec 31, 2024, aligns with the company's inorganic expansion strategy. The financial terms of the deal were not revealed. Chicago-based Waller Helms, founded in 2014, offers advisory services associated with mergers and acquisitions (M&A), private capital raising and valuation services, advising clients mainly in the insurance and wealth management sectors. Since its inc ...

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 ...

Financial Data and Key Metrics Changes - The company reported revenues of $514 million for the first quarter, a 24% increase compared to the same quarter last year, with adjusted earnings per share rising 37% to $1.22 [17] - The adjusted compensation expense ratio remained stable at 61.5% for both fiscal 2025 and 2024 [26] - Adjusted other income and expense produced income of approximately $5.1 million, up from $3 million in the same period last year, primarily due to a net increase in interest income [27] - The adjusted effective tax rate for the quarter was 31.2%, compared to 29.2% for the same quarter last year, driven by increased non-deductible expenses [44] Business Line Data and Key Metrics Changes - Corporate Finance generated $328 million in revenues, a 45% increase year-over-year, with 116 transactions closed compared to 95 in the same period last year [41] - Financial Restructuring revenues were $117 million, a 5% decrease from the previous year, with 33 transactions closed, up from 30 [21] - Financial and Valuation Advisory (FVA) produced $68 million in revenues, a 4% increase year-over-year, with 847 fee events compared to 786 in the same period last year [42] Market Data and Key Metrics Changes - The capital markets business is experiencing strong demand, particularly in the middle market, as capital providers seek to deploy capital [3] - The company noted that the European market is picking up, albeit at a slower pace than the U.S. market, following recent rate cuts by the ECB [63] Company Strategy and Development Direction - The company is optimistic about fiscal 2025, anticipating improved M&A and capital markets activity, and is well-positioned to capitalize on the recovery [23] - The acquisition of Triago has expanded the company's private funds capabilities, adding seven managing directors and enhancing its market presence [18] - The company continues to focus on filling underweighted sectors in the industry through both organic hires and acquisitions [116] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the current market conditions driving improved M&A activity, despite macro uncertainties such as interest rates and political factors [1] - The restructuring business is expected to see fluctuations, with potential for increased activity if M&A picks up significantly [64] - Management indicated that the credit markets remain healthy, and they do not view recent restructuring events as indicative of broader market stress [32] Other Important Information - The company added 27 new managing directors in the quarter and promoted 14 from director to managing director [19] - The company has approximately $485 million in unrestricted cash and equivalents, with a decline in cash position due to bonus payments [28] Q&A Session Summary Question: What is the outlook for Corporate Finance? - Management noted continued improvement in Corporate Finance, with a focus on transaction size and close rates, benefiting from a stronger reputation in Europe [48][49] Question: How is the restructuring business performing? - Management indicated that the restructuring business can be lumpy, but they do not see recent restructuring events as a sign of broader market issues [32] Question: What are the growth opportunities in private funds? - Management highlighted the evolving nature of the private funds market, particularly in secondaries and directs, as areas of growth potential [36] Question: How is the company positioned for capital markets activity? - Management stated that the capital markets business is growing due to increased private capital market activity and is well-positioned for future opportunities [55] Question: What is the trajectory for restructuring in the coming years? - Management expects the distressed business to continue growing, with a stable percentage of defaults anticipated [64] Question: What is the outlook for non-compensation expenses? - Management expects non-compensation expenses to normalize, with a trajectory dependent on revenue growth [97]

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 ...

Company Performance - Houlihan Lokey has surpassed consensus EPS estimates three times over the last four quarters [1] - The company reported quarterly earnings of $1.22 per share, matching the Zacks Consensus Estimate, compared to $0.89 per share a year ago [11] - Revenues for the quarter ended June 2024 were $513.61 million, exceeding the Zacks Consensus Estimate by 0.97% and up from $415.83 million year-over-year [12] Industry Context - The Financial - Miscellaneous Services industry, to which Houlihan Lokey belongs, is currently ranked in the bottom 42% of over 250 Zacks industries [4] - The top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.32 on revenues of $535.17 million, and for the current fiscal year, it is $5.63 on revenues of $2.23 billion [9] - The estimate revisions trend for Houlihan Lokey is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [14]

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 ...

[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 ...