NEW YORK--(BUSINESS WIRE)--Lazard Global Total Return and Income Fund, Inc. (the "Fund") (NYSE:LGI) is confirming today, pursuant to its Managed Distribution Policy, as previously authorized by its Board of Directors, a monthly distribution of $0.10459 per share on the Fund’s outstanding common stock. The distribution is payable on February 22, 2024 to shareholders of record on February 13, 2024. The ex-dividend date is February 12, 2024. The Fund will pay a previously declared distribution today, January ...

NEW YORK--(BUSINESS WIRE)--Lazard, Inc. (NYSE: LAZ) will announce its fourth quarter and full-year 2023 financial results in a press release to be issued Thursday morning, February 1, 2024. The press release will be available in the News & Announcements section of Lazard’s website at www.lazard.com. Lazard will host a conference call at 8:00 a.m. EST on February 1, 2024, to discuss the company’s financial results for the fourth quarter and full-year 2023. The conference call can be accessed via a live audi ...

NEW YORK--(BUSINESS WIRE)--Lazard, Inc. (NYSE: LAZ) reported today that its preliminary assets under management (“AUM”) as of December 31, 2023 totaled approximately $246.7 billion. The month’s AUM included market appreciation of $8.5 billion, foreign exchange appreciation of $2.0 billion and net inflows of $0.2 billion. Preliminary average assets under management for the quarter ended December 31, 2023 were $233.9 billion. LAZARD, INC. ASSETS UNDER MANAGEMENT (“AUM”) (unaudited) ($ in millions)     ...

Lazard Ltd’s (LAZ) high reliance on financial advisory fees for a substantial portion of its revenues is concerning. Continued net outflows will affect the company’s assets under management in the upcoming period. Further, its capital distribution activities seem unsustainable.Analysts are also not optimistic about the company’s earnings growth potential. Over the past week, the Zacks Consensus Estimate for LAZ’s 2023 earnings has been revised marginally lower. Thus, the company currently carries a Zacks Ra ...

NEW YORK--(BUSINESS WIRE)--Lazard Global Total Return and Income Fund, Inc. (the "Fund") (NYSE:LGI) is confirming today, as previously authorized by its Board of Directors pursuant to a Managed Distribution Policy, a monthly distribution of $0.10459, equivalent to 7% (annualized) of the Fund's net asset value per share as of the close of markets on December 31, 2023 on the Fund's outstanding common stock. The distribution is payable on January 22, 2024 to shareholders of record on January 11, 2024. The ex-d ...

Lazard LAZ, -0.51% said Tuesday it has officially changed its full formal name to Lazard Inc. from Lazard Ltd. as part of its conversion to a U.S. C-Corp. under Delaware law from a limited partnership. Starting in 2024, distributions will be paid as dividends for U.S. tax purposes with shareholders receiving 1099 income statements rather than K-1 partnership income statements. Lazard Chief Executive Peter R. Orszag said the new structure “will expand our shareholder base by simplifying tax reporting and en ...

NEW YORK--(BUSINESS WIRE)--Lazard Global Total Return and Income Fund, Inc. (the "Fund") (NYSE:LGI) is confirming today, pursuant to its Managed Distribution Policy, as previously authorized by its Board of Directors, a monthly distribution equal to, on an annualized basis, 7.0% of the Fund’s net asset value per share as of the close of markets on December 29, 2023 on the Fund's outstanding common stock. The distribution is payable on January 22, 2024 to shareholders of record on January 11, 2024. The ex-di ...

Financial Data and Key Metrics Changes - The company reported operating revenue of $532 million for Q3 2023, a 27% decrease from Q3 2022. For the first nine months, operating revenue was $1.7 billion compared to $2.1 billion in the same period last year [9][12] - The effective tax rate for Q3, as adjusted, was 8.4%, down from 25.1% in the prior year quarter. The full-year tax rate is projected to be in the low to mid-teens [14][60] Business Line Data and Key Metrics Changes - Financial Advisory revenue for Q3 was $261 million, with a total of $879 million for the first nine months, impacted by a slowdown in M&A activity [9][34] - Asset Management revenue was $794 million for the first nine months of 2023, reflecting a 5% decrease from the prior year, with average AUM for Q3 at $236 billion, an 11% increase year-over-year [12][13] - The Global Restructuring and Liability Management Group reported strong performance, with operating revenue increasing both sequentially and year-over-year [11] Market Data and Key Metrics Changes - AUM as of September 30 was $228 billion, down 5% from June 30, 2023, but up 15% from September 30, 2022, driven by market depreciation and net outflows [120] - The company noted increased interest in cross-border M&A activity, particularly among European companies seeking to acquire U.S. assets [22][34] Company Strategy and Development Direction - The company aims to double revenue firm-wide by 2030, with growth expected to be evenly split between Asset Management and Financial Advisory, targeting double-digit annual growth [21][37] - Lazard plans to convert its current structure to a U.S. corporation (C-Corp) to simplify tax reporting and enhance shareholder ownership [23][60] - The company is focusing on expanding its presence in sectors such as technology, industrials, power and energy, and healthcare, while also enhancing its geopolitical advisory services [22][39] Management's Comments on Operating Environment and Future Outlook - Management believes the M&A cycle is turning, with signs of stabilization and potential recovery in deal activity, particularly in financial institutions, healthcare, and energy transition sectors [10][34] - The company is optimistic about future growth, emphasizing the importance of geopolitical insights in business decisions [39][84] Other Important Information - The company is progressing on cost-saving initiatives, aiming for a 10% reduction in headcount by Q1 2024 [14][34] - A quarterly dividend of $0.50 per share was declared [33] Q&A Session Summary Question: Concerns about Asset Management growth - Management emphasized that growth is not just about AUM accumulation but enhancing shareholder value through high-return growth strategies [44][45] Question: C-Corp conversion details - Management discussed the benefits of conversion, including simplified tax reporting and potential increased liquidity for shares, with a projected low single-digit increase in effective tax rate post-conversion [48][69] Question: Milestones for 2030 goals - Management indicated that milestones will be shared when there are actionable proof points, focusing on revenue, earnings, and expansion in growth areas [50][51] Question: Impact of U.S. elections on business - Management noted that while the U.S. elections may generate demand for geopolitical insights, it is not expected to significantly impact the business trajectory [84][101] Question: Financing for potential acquisitions - Management highlighted the cash-generative nature of their businesses and various financing options available for acquisitions, including equity and earn-outs [65][102]

Financial Performance - Net revenue for Q3 2023 was $523.9 million, a decrease of $203 million or 28% compared to Q3 2022 [331]. - Operating revenue for Q3 2023 was $531.6 million, down $192 million or 27% from Q3 2022 [328]. - Net revenue decreased by $352 million, or 17%, with operating revenue decreasing by $419 million, or 20%, compared to the 2022 period [339]. - For the nine months ended September 30, 2023, the company reported a net loss attributable to Lazard Ltd of $139 million, compared to net income of $315 million in the same period of 2022 [338]. - The company reported an operating loss of $4.9 million for Q3 2023, compared to operating income of $158.1 million in Q3 2022 [335]. - Earnings from operations decreased by $131 million or 81% year-over-year, with a margin of 5.7% for Q3 2023 compared to 22.3% in Q3 2022 [335]. - For the nine months ended September 30, 2023, the company reported a net loss of $129 million compared to a net income of $335 million in the same period of 2022 [389]. - The effective tax rate for Q3 2023 was 239.5%, significantly higher than 22.4% in Q3 2022 [336]. Revenue Segments - Consolidated net revenue for the third quarter of 2023 was derived from Financial Advisory (51%), Asset Management (54%), and Corporate (-5%) segments, compared to 63%, 41%, and -4% respectively in the same quarter of 2022 [281]. - Financial Advisory revenues are primarily dependent on the successful completion of M&A and restructuring transactions, while Asset Management revenues are driven by levels of assets under management (AUM) [282]. - Lazard's Financial Advisory net revenue is primarily driven by M&A activity, capital raising, and restructuring, with significant fluctuations occurring due to the timing of transactions [296]. - The Asset Management segment's net revenue is influenced by the level and product mix of AUM, which is affected by global equity market performance and client asset flows [297]. - Net revenue for the Asset Management segment for the nine months ended September 30, 2023, was $857.212 million, a decrease of $69 million or 7% compared to the prior year [376]. M&A Activity - Total completed M&A transactions in the first nine months of 2023 decreased by 41% in value to $1,952 billion and by 24% in number to 24,843 deals compared to the same period in 2022 [291]. - The value of announced M&A transactions in the first nine months of 2023 decreased by 29% to $2,120 billion, with the number of transactions down by 20% to 26,820 compared to the same period in 2022 [291]. - Global restructuring activity saw a decrease in corporate defaults, with 119 defaults reported in the first nine months of 2023 compared to 128 in the same period of 2022 [292]. - The company is actively engaged in enhancing its Financial Advisory capabilities by selectively hiring senior professionals despite a lower level of M&A announcements in 2023 [284]. Asset Management - Total Assets Under Management (AUM) increased by $12 billion, or 6%, to $228 billion as of September 30, 2023, compared to $216 billion at December 31, 2022 [361]. - Approximately 84% of AUM was managed on behalf of institutional clients as of September 30, 2023, compared to 85% as of December 31, 2022 [362]. - Equity AUM reached $174.748 billion, with inflows of $17.751 billion and outflows of $21.299 billion, resulting in a net outflow of $3.548 billion [365]. - Fixed Income AUM increased to $45.178 billion, with inflows of $7.178 billion and outflows of $6.407 billion, resulting in a net inflow of $771 million [365]. Operating Expenses - Operating expenses are largely driven by compensation and benefits, with a goal to maintain a ratio of awarded compensation to operating revenue in the mid-to high-50s percentage range [308]. - Adjusted compensation and benefits expense for Q3 2023 was $364.6 million, a decrease of $71 million or 16% compared to Q3 2022 [333]. - Non-compensation expense increased by $16 million or 11% year-over-year, with adjusted non-compensation expense rising by $9 million or 7% [334]. - Non-compensation expense increased by $79 million, or 18%, primarily due to higher travel and business development expenses [342]. Cash Flow and Liquidity - Net cash used in operating activities was $(177) million, a significant decrease from $520 million provided in the same period of 2022 [389]. - The company anticipates cash payments for incentive compensation and other employee termination costs throughout the year, impacting liquidity [394]. - The company’s cash flow from operations is expected to be sufficient to meet its annual obligations for the next 12 months [401]. - As of September 30, 2023, the company had approximately $653 million in cash, including $382 million held outside the U.S. [396]. Shareholder Actions - The company declared a quarterly dividend of $0.50 per share on October 25, 2023, payable on November 17, 2023 [408]. - The company repurchased 2,782,662 shares at an average price of $36.67 during the nine months ended September 30, 2023, compared to 17,249,880 shares at $35.49 in the same period of 2022 [407]. - The company had $200 million of share repurchase authorization remaining as of September 30, 2023, which will expire on December 31, 2024 [407]. Tax and Deferred Assets - Lazard recorded gross deferred tax assets of approximately $598 million as of December 31, 2022, partially offset by a valuation allowance of approximately $88 million [420]. - The cumulative liability relating to Lazard's obligations under the Tax Receivable Agreement (TRA) was $119 million as of September 30, 2023, down from $191 million as of December 31, 2022 [432]. - The allowance for credit losses is determined based on historical charge-off experience and client creditworthiness assessments [415]. Market Conditions - The global macroeconomic environment is improving, with falling inflation and moderating expectations of interest rate hikes, which may stabilize the M&A market [283]. - The competitive landscape remains challenging, with new risks and uncertainties emerging continuously, impacting the company's ability to predict future performance [279].

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) This section presents the company's unaudited financial statements, management's analysis, market risk disclosures, and internal controls [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents Lazard Ltd's unaudited condensed consolidated financial statements for the periods ended June 30, 2023, including statements of financial condition, operations, cash flows, and notes [Condensed Consolidated Statements of Financial Condition](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) Lazard's total assets decreased to **$4.60 billion** from **$5.85 billion**, primarily due to reduced cash and deposits, while total liabilities and equity also declined Condensed Consolidated Statements of Financial Condition (in thousands) | | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$4,602,937** | **$5,852,561** | | Cash and cash equivalents | $697,756 | $1,234,773 | | Deposits with banks and short-term investments | $446,777 | $779,246 | | Restricted cash | $35,368 | $625,381 | | Receivables, net | $674,558 | $652,758 | | Investments | $690,199 | $698,977 | | **Total Liabilities** | **$4,103,469** | **$4,593,691** | | Deposits and other customer payables | $587,838 | $921,834 | | Accrued compensation and benefits | $601,689 | $735,576 | | Senior debt | $1,688,957 | $1,687,714 | | **Total Stockholders' Equity** | **$415,885** | **$675,399** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Lazard reported a **net loss of $124.0 million** in Q2 2023 and **$146.2 million** for H1 2023, driven by lower investment banking revenue and increased compensation expenses Condensed Consolidated Statements of Operations (in thousands) | | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net revenue** | **$643,114** | **$639,546** | **$1,185,550** | **$1,334,438** | | Investment banking and other advisory fees | $350,104 | $405,091 | $627,512 | $794,830 | | Asset management fees | $271,637 | $269,011 | $533,116 | $584,063 | | **Total operating expenses** | **$753,187** | **$513,708** | **$1,332,547** | **$1,048,872** | | Compensation and benefits | $572,231 | $363,830 | $1,022,198 | $760,671 | | **Operating Income (Loss)** | **($110,073)** | **$125,838** | **($146,997)** | **$285,566** | | **Net Income (Loss) Attributable to Lazard Ltd** | **($124,013)** | **$95,480** | **($146,185)** | **$209,356** | | **Diluted EPS** | **($1.41)** | **$0.92** | **($1.68)** | **$1.97** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$210.4 million** for H1 2023, a reversal from prior year, with financing activities using **$1.24 billion** due to LGAC redemption Summary of Cash Flows for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(210,422) | $85,101 | | Net cash used in investing activities | $(22,406) | $(19,484) | | Net cash used in financing activities | $(1,244,188) | $(62,174) | | **Net Decrease in Cash and Cash Equivalents and Restricted Cash** | **$(1,459,499)** | **$(204,524)** | - A significant use of cash in financing activities was the **$585.9 million** distribution to redeemable noncontrolling interests related to the LGAC redemption[28](index=28&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail Lazard's accounting policies, including revenue recognition, investments, debt, compensation, cost-saving initiatives, segment performance, and regulatory capital - The company's two primary business segments are Financial Advisory and Asset Management. The Corporate segment handles cash management, investments, and debt[49](index=49&type=chunk)[52](index=52&type=chunk) - On February 23, 2023, the company's sponsored SPAC, LGAC, was liquidated, resulting in a **$585.9 million** distribution to shareholders and a **$17.9 million** loss for Lazard[68](index=68&type=chunk) - Firm-wide cost-saving initiatives incurred **$167.4 million** in expenses during H1 2023, primarily for severance and technology asset impairments[223](index=223&type=chunk)[224](index=224&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=46&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's Q2 and H1 2023 performance, highlighting the impact of M&A slowdown, market volatility, and restructuring costs on net loss, alongside liquidity and critical accounting policies - The global M&A market is stabilizing, but completions remained low in H1 2023, with recovery expected to be slow despite increasing board confidence[276](index=276&type=chunk) - Firm-wide cost-saving initiatives, including office closures, incurred significant expenses in Q2 2023[304](index=304&type=chunk) Consolidated Operating Results Summary (in thousands) | | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Revenue | $643,114 | $639,546 | $1,185,550 | $1,334,438 | | Operating Income (Loss) | $(110,073) | $125,838 | $(146,997) | $285,566 | | Net Income (Loss) Attributable to Lazard Ltd | $(124,013) | $95,480 | $(146,185) | $209,356 | [Business Segments](index=58&type=section&id=Business%20Segments) Financial Advisory reported a **$138.1 million** operating loss in H1 2023 due to lower M&A revenue, while Asset Management's operating income fell **64%** to **$55.1 million** Segment Operating Income (Loss) - Six Months Ended June 30 (in thousands) | Segment | 2023 | 2022 | | :--- | :--- | :--- | | Financial Advisory | $(138,129) | $183,268 | | Asset Management | $55,087 | $153,590 | | Corporate | $(63,955) | $(51,292) | | **Total Operating Loss/Income** | **$(146,997)** | **$285,566** | [Liquidity and Capital Resources](index=66&type=section&id=Liquidity%20and%20Capital%20Resources) Lazard held **$698 million** in cash as of June 30, 2023, with **$209 million** in unused credit lines, and **$1.7 billion** in senior debt, maintaining sufficient liquidity for the next 12 months - Cash on hand generally declines at the beginning of the year due to incentive compensation payments and builds over the remainder of the year[383](index=383&type=chunk) - As of June 30, 2023, the company had approximately **$698 million** of cash and **$209 million** in unused lines of credit, including a **$200 million** revolving credit facility[385](index=385&type=chunk)[386](index=386&type=chunk) Senior Debt Outstanding (in millions) | Senior Debt | Maturity | Principal (June 30, 2023) | | :--- | :--- | :--- | | Lazard Group 2025 Senior Notes | 2025 | $400.0 | | Lazard Group 2027 Senior Notes | 2027 | $300.0 | | Lazard Group 2028 Senior Notes | 2028 | $500.0 | | Lazard Group 2029 Senior Notes | 2029 | $500.0 | | **Total** | | **$1,700.0** | [Critical Accounting Policies and Estimates](index=69&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Management identifies critical accounting policies requiring significant judgment, including revenue recognition, credit loss allowances, compensation accruals, income taxes, TRA liability valuation, and goodwill impairment testing - The allowance for credit losses is determined using historical charge-off rates, specific client creditworthiness analysis, and qualitative assessments of economic risks[407](index=407&type=chunk) - Significant judgment is required for income taxes, particularly in assessing deferred tax asset realizability and valuation allowance needs; an **$88 million** valuation allowance was recorded as of December 31, 2022[411](index=411&type=chunk)[412](index=412&type=chunk)[416](index=416&type=chunk) - The Tax Receivable Agreement (TRA) liability revaluation resulted in a **$40 million** benefit in H1 2023, with an outstanding liability of **$119 million** as of June 30, 2023[423](index=423&type=chunk)[424](index=424&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=75&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the 'Risk Management' discussion within the MD&A for quantitative and qualitative disclosures regarding market risk - Disclosures about market risk are located in the MD&A section under the 'Risk Management' heading[453](index=453&type=chunk) [Item 4. Controls and Procedures](index=75&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting - The CEO and CFO have certified that the company's disclosure controls and procedures are effective as of the end of the reporting period[454](index=454&type=chunk) - No changes occurred during the quarter that materially affected, or are likely to materially affect, internal control over financial reporting[456](index=456&type=chunk) [Part II. Other Information](index=77&type=section&id=Part%20II.%20Other%20Information) This section provides additional information including legal proceedings, risk factors, equity repurchases, and exhibits [Item 1. Legal Proceedings](index=77&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal and regulatory proceedings, but management does not anticipate a material adverse effect on its financial condition from their aggregate outcome - The company believes that the results of any pending legal matters, in aggregate, will not have a material effect on its business or financial condition[458](index=458&type=chunk) [Item 1A. Risk Factors](index=77&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022, were reported - No material changes to risk factors were reported for the period[459](index=459&type=chunk) [Issuer Repurchases of Equity Securities](index=77&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Lazard repurchased **5,466** common shares for **$0.2 million** in Q2 2023, with **$203.0 million** remaining under the repurchase authorization expiring December 31, 2024 Issuer Repurchases of Equity Securities (Q2 2023) | Period | Total Shares Purchased | Average Price Paid per Share | Purchased as Part of Publicly Announced Program | | :--- | :--- | :--- | :--- | | **Total Q2 2023** | | | | | Share Repurchase Program | 5,466 | $31.35 | 5,466 | | Employee Transactions (Tax Withholding) | 115,257 | $30.92 | - | - As of the end of Q2 2023, **$203.0 million** remained available under the company's share repurchase authorization, which is set to expire on December 31, 2024[462](index=462&type=chunk)[464](index=464&type=chunk) [Item 6. Exhibits](index=79&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, debt agreements, material contracts, incentive plans, and CEO/CFO certifications - Key exhibits filed include the Second Amended and Restated Credit Agreement dated June 6, 2023, and certifications from the CEO and CFO pursuant to Sarbanes-Oxley Sections 302 and 906[474](index=474&type=chunk)