Investor Presentation April 26, 2022 Notices and Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include certain information concerning future results of operations, business strategies, acquisitions, financing plans, competitive position, potential growth opportunities, potential operating per ...

[PART I. Business and Risk Factors](index=5&type=section&id=PART%20I.) This part covers PJT Partners' business model, competitive strengths, growth strategies, human capital, regulatory environment, and significant risk factors [ITEM 1. Business Overview](index=5&type=section&id=ITEM%201.%20BUSINESS) PJT Partners is a global advisory investment bank offering strategic, capital markets, restructuring, and private fund advisory services, emphasizing experienced partners, market leadership, and a client-centric approach - PJT Partners is a premier global advisory-focused investment bank, providing strategic advisory, capital markets advisory, restructuring and special situations, and shareholder advisory services to a diverse client base globally. It also offers private fund advisory and fundraising services for alternative investment strategies[20](index=20&type=chunk)[21](index=21&type=chunk)[24](index=24&type=chunk) - Key competitive strengths include decades of partner experience and deep relationships, global market leadership in restructuring and PJT Park Hill, a rapidly growing Strategic Advisory business, a client-centric approach, and a culture of collaboration and talent development[25](index=25&type=chunk)[26](index=26&type=chunk) - The company's growth strategy involves strengthening and expanding client relationships, increasing the breadth and depth of its advisory franchise through talent acquisition and footprint expansion, deepening advisory capabilities in evolving areas, and further integrating its synergistic businesses[28](index=28&type=chunk)[33](index=33&type=chunk) - As of December 31, 2021, PJT Partners employed **833 individuals globally**, including **97 partners**, emphasizing a culture of attracting and retaining diverse top talent, with active Board oversight of human capital management[31](index=31&type=chunk)[32](index=32&type=chunk) - The financial services industry is intensely competitive, with PJT Partners competing on factors such as client relationships, industry knowledge, transaction execution skills, product range, innovation, reputation, and price[50](index=50&type=chunk) - PJT Partners is subject to extensive regulation in the U.S. (SEC, FINRA, CFTC) and internationally (UK's FCA, Hong Kong's SFC, Spain's CNMV), with new regulations like the U.K.'s IFPR taking effect in 2022, which will substantially increase capital requirements for its UK entity[52](index=52&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk) [ITEM 1A. Risk Factors](index=14&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company faces significant risks from catastrophic events, market volatility, cybersecurity threats, international operations, and its holding company structure - The ongoing COVID-19 pandemic poses risks to worldwide economic activity, potentially causing business disruptions, labor shortages, supply chain issues, and inflationary pressures, which could adversely impact the company's financial performance[78](index=78&type=chunk)[79](index=79&type=chunk)[81](index=81&type=chunk) - Revenue is highly volatile and dependent on market conditions, with a substantial portion derived from a limited number of engagements that generate significant fees upon transaction completion, making financial results susceptible to fluctuations[91](index=91&type=chunk)[92](index=92&type=chunk) - The company faces significant cybersecurity and operational risks, including potential system failures, data breaches, and the improper use or disclosure of confidential client information, which could lead to financial losses, regulatory sanctions, and reputational damage[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk) - International operations, which generated **11.9% of total revenues in 2021**, are subject to risks such as management difficulties, foreign currency fluctuations, unexpected regulatory changes, and political/economic instability[113](index=113&type=chunk) - PJT Partners Inc. is a holding company dependent on distributions from PJT Partners Holdings LP to pay taxes, make tax receivable agreement payments, and issue dividends, meaning its liquidity and financial condition are tied to the operating partnership's performance[148](index=148&type=chunk) - The company is obligated to make substantial payments under a tax receivable agreement, estimated at **$233.2 million** if terminated on December 31, 2021, which could materially affect liquidity if payments exceed actual cash tax savings or distributions are insufficient[158](index=158&type=chunk)[160](index=160&type=chunk) [ITEM 1B. Unresolved Staff Comments](index=29&type=section&id=ITEM%201B.%20UNRESOLVED%20STAFF%20COMMENTS) The company reported no unresolved staff comments from the SEC - No unresolved staff comments were reported[172](index=172&type=chunk) [ITEM 2. Properties](index=29&type=section&id=ITEM%202.%20PROPERTIES) PJT Partners' principal executive offices are located in leased space in New York, with additional leased offices globally, and the company owns no real property - The company's principal executive offices are located in leased space at 280 Park Avenue, New York, New York[173](index=173&type=chunk) - Additional offices are leased in Boston, Chicago, Frankfurt, Hong Kong, Houston, London, Los Angeles, Madrid, and San Francisco[173](index=173&type=chunk) - PJT Partners does not own any real property[173](index=173&type=chunk) [ITEM 3. Legal Proceedings](index=29&type=section&id=ITEM%203.%20LEGAL%20PROCEEDINGS) PJT Partners is subject to various legal proceedings in the ordinary course of business, but management believes no current matters would materially affect its financial statements - The company is subject to legal proceedings and claims in the ordinary course of business, including potential administrative proceedings by government agencies and self-regulatory organizations[174](index=174&type=chunk) - Management believes that no current pending proceedings, individually or in the aggregate, would have a material effect on the company's financial statements[174](index=174&type=chunk) - Specific ongoing litigation includes a fraud-based apparent authority claim in New York state court related to Andrew W.W. Caspersen, which was dismissed by an appellate court but is currently under appeal to the New York Court of Appeals[175](index=175&type=chunk) - Another case is a qui tam action in New Mexico state court alleging FATA violations, which was dismissed by the court and upheld on appeal, with a motion for rehearing currently filed with the New Mexico Supreme Court[176](index=176&type=chunk) [ITEM 4. Mine Safety Disclosures](index=30&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) The company has no disclosures related to mine safety - No mine safety disclosures are applicable to the company[178](index=178&type=chunk) [PART II. Financial Information](index=31&type=section&id=PART%20II.) This part details the company's market for common equity, financial condition, results of operations, market risk disclosures, and audited financial statements [ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=31&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT%27S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) PJT Partners' Class A common stock trades on the NYSE, with the company planning regular quarterly dividends and having an active share repurchase program - PJT Partners' Class A common stock is traded on the NYSE under the symbol "PJT". As of February 18, 2022, there were **103 holders of record** of Class A common stock[180](index=180&type=chunk)[181](index=181&type=chunk) - The company plans to regularly pay quarterly dividends, with declaration and payment at the sole discretion of the Board, considering various financial and market factors[182](index=182&type=chunk) - PJT Partners Inc. is a holding company, relying on pro rata cash distributions from PJT Partners Holdings LP to cover tax obligations, tax receivable agreement payments, and dividends[183](index=183&type=chunk) Share Repurchases in Q4 2021 | Period | Total Number of Shares Repurchased | Average Price Paid Per Share | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | | :------------------------ | :--------------------------------- | :--------------------------- | :--------------------------------------------------------------------------------- | | October 1 to October 31 | 52,500 | $82.99 | $87.5 million | | November 1 to November 30 | — | — | $87.5 million | | December 1 to December 31 | 60,277 | $72.36 | $83.1 million | | **Total** | **112,777** | **$77.31** | **$83.1 million** | - On February 1, 2021, the Board authorized a **$150 million increase** to the Class A common stock repurchase program, with **$83.1 million remaining** as of December 31, 2021[189](index=189&type=chunk) - Three shares of Class B common stock were issued in Q4 2021 in connection with LTIP Units and Partnership Unit transfers to certain personnel[190](index=190&type=chunk) [ITEM 6. [Reserved]](index=33&type=section&id=ITEM%206.%20%5BRESERVED%5D) This item is reserved and contains no information [ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=ITEM%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) PJT Partners' 2021 revenues decreased by 6% due to lower restructuring fees, offset by strong strategic advisory and placement fees, while expenses also decreased, maintaining a strong liquidity position - Worldwide M&A announced volumes significantly increased in 2021 compared to 2020, while global restructuring activity slowed due to a robust economic recovery and low interest rates, though long-term demand for restructuring services is expected to improve[197](index=197&type=chunk)[198](index=198&type=chunk) - Fund placement activity saw managers returning to market for larger fundraises in shorter periods, with increased secondary market activity through continuation vehicles[199](index=199&type=chunk) Consolidated Results of Operations (2021 vs. 2020) | Metric | 2021 (Thousands) | 2020 (Thousands) | Change ($ Thousands) | Change (%) | | :-------------------------- | :--------------- | :--------------- | :------------------- | :--------- | | **Revenues** | | | | | | Advisory Fees | $762,723 | $872,286 | $(109,563) | (13%) | | Placement Fees | $216,692 | $162,237 | $54,455 | 34% | | Interest Income and Other | $12,530 | $17,777 | $(5,247) | (30%) | | **Total Revenues** | **$991,945** | **$1,052,300** | **$(60,355)** | **(6%)** | | **Expenses** | | | | | | Compensation and Benefits | $640,040 | $683,393 | $(43,353) | (6%) | | Total Expenses | $772,496 | $804,339 | $(31,843) | (4%) | | Income Before Provision for Taxes | $219,449 | $247,961 | $(28,512) | (11%) | | Provision for Taxes | $29,494 | $35,535 | $(6,041) | (17%) | | Net Income | $189,955 | $212,426 | $(22,471) | (11%) | | Net Income Attributable to PJT Partners Inc. | $106,168 | $117,549 | $(11,381) | (10%) | - The decrease in total revenues was primarily driven by a significant decrease in restructuring revenues, largely offset by record-setting strategic advisory performance and increased corporate and fund placement activity[217](index=217&type=chunk)[218](index=218&type=chunk) - The decrease in total expenses was primarily due to a lower compensation accrual rate in 2021, partially offset by increases in professional fees (senior advisor and recruiting), communications and information services (technology infrastructure investments), and travel and related expenses[219](index=219&type=chunk) Effective Income Tax Rate | Year | Effective Income Tax Rate | | :--- | :------------------------ | | 2021 | 13.4% | | 2020 | 14.3% | - As of December 31, 2021, the company had **$200.5 million** in cash, cash equivalents, and investments, down from **$437.4 million** in 2020, after paying a **$73.0 million special dividend** in October 2021[227](index=227&type=chunk) - Total accounts receivable, net of allowance for credit losses, increased to **$289.3 million** in 2021 from **$233.2 million** in 2020, including long-term receivables of **$104.6 million** and **$83.5 million**, respectively[228](index=228&type=chunk) - The company's primary cash needs include working capital, operating expenses, cash redemption of Partnership Units, share repurchases, income taxes, dividends, capital expenditures, and payments under the tax receivable agreement[229](index=229&type=chunk) - PJT Partners Holdings LP renewed and modified its revolving credit facility in February 2021, increasing aggregate commitments to **$60.0 million** (with a temporary increase option to **$80.0 million**), maturing October 1, 2022. No borrowings were outstanding as of December 31, 2021 and 2020[225](index=225&type=chunk)[415](index=415&type=chunk)[420](index=420&type=chunk) - The company estimates **$31.1 million** is due under the tax receivable agreement as of December 31, 2021, with expected payments of **$1.4 million in 2022**, **$2.2 million annually from 2023-2026**, and **$20.9 million thereafter**[242](index=242&type=chunk)[412](index=412&type=chunk) [ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) PJT Partners faces minimal market or credit risk due to its asset-light model, but is exposed to foreign currency fluctuations, which resulted in a $1.4 million loss in 2021 - PJT Partners is not subject to significant market risk (interest rate, foreign currency, commodity price) or credit risk due to its non-capital-intensive business model and lack of derivative investments[255](index=255&type=chunk) - Cash, cash equivalents, and investments (including Treasury securities) are considered not subject to material interest rate, equity price, credit, or other market risks due to their short-term nature[257](index=257&type=chunk) Allowance for Credit Losses | Metric | December 31, 2021 (Thousands) | December 31, 2020 (Thousands) | | :------------------------ | :---------------------------- | :---------------------------- | | Allowance for Credit Losses | $1,900 | $1,300 | - The company is exposed to exchange rate risk from non-U.S. dollar denominated revenues and expenses, with a **$1.4 million loss** from currency translation adjustment in 2021[259](index=259&type=chunk) [ITEM 8. Financial Statements and Supplementary Data](index=44&type=section&id=ITEM%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section presents the audited consolidated financial statements for 2021, 2020, and 2019, along with the independent auditor's unqualified opinion and detailed notes on accounting policies - Deloitte & Touche LLP issued an unqualified opinion on the company's consolidated financial statements and internal control over financial reporting as of December 31, 2021[264](index=264&type=chunk)[265](index=265&type=chunk) Consolidated Statements of Financial Condition (Key Figures) | Metric | December 31, 2021 (Thousands) | December 31, 2020 (Thousands) | | :------------------------------------------ | :---------------------------- | :---------------------------- | | Cash and Cash Equivalents | $200,481 | $299,513 | | Investments | — | $137,889 | | Accounts Receivable, Net | $289,267 | $233,166 | | Total Assets | $987,625 | $1,171,607 | | Accrued Compensation and Benefits | $121,717 | $253,456 | | Total Liabilities | $350,053 | $483,761 | | Total Equity | $637,572 | $687,846 | Consolidated Statements of Operations (Key Figures) | Metric | 2021 (Thousands) | 2020 (Thousands) | 2019 (Thousands) | | :------------------------------------ | :--------------- | :--------------- | :--------------- | | Total Revenues | $991,945 | $1,052,300 | $717,639 | | Total Expenses | $772,496 | $804,339 | $635,449 | | Net Income Attributable to PJT Partners Inc. | $106,168 | $117,549 | $29,562 | | Diluted Net Income Per Share of Class A Common Stock | $3.99 | $4.40 | $1.21 | Consolidated Statements of Cash Flows (Key Figures) | Metric | 2021 (Thousands) | 2020 (Thousands) | 2019 (Thousands) | | :------------------------------------ | :--------------- | :--------------- | :--------------- | | Net Cash Provided by Operating Activities | $124,161 | $469,442 | $211,260 | | Net Cash Provided by (Used in) Investing Activities | $131,347 | $(145,752) | $(1,720) | | Net Cash Used in Financing Activities | $(353,383) | $(244,277) | $(101,146) | | Net Increase (Decrease) in Cash and Cash Equivalents | $(99,032) | $83,563 | $109,840 | | Cash and Cash Equivalents, End of Period | $200,481 | $299,513 | $215,950 | - The company's single reportable segment encompasses advisory and placement services, with performance assessed based on overall company results rather than separate product lines or geographic regions[433](index=433&type=chunk)[435](index=435&type=chunk)[436](index=436&type=chunk) [Notes to Consolidated Financial Statements](index=53&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on PJT Partners' accounting policies, financial statement components, and related party transactions [1. Organization](index=54&type=section&id=1.%20ORGANIZATION) PJT Partners Inc. is a holding company operating advisory and private fund services, formed through a 2015 spin-off from Blackstone Inc - PJT Partners Inc. is a holding company that operates and controls PJT Partners Holdings LP and its operating subsidiaries, offering strategic advisory, capital markets advisory, restructuring, special situations, shareholder advisory, and private fund advisory services[290](index=290&type=chunk)[291](index=291&type=chunk) - The company was formed through a spin-off from Blackstone Inc. on October 1, 2015, combining Blackstone's advisory businesses with PJT Capital LP[291](index=291&type=chunk) [2. Summary of Significant Accounting Policies](index=54&type=section&id=2.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) The financial statements adhere to GAAP, requiring management estimates for revenue, credit losses, taxes, and equity compensation, with specific policies for fair value, goodwill, leases, and income taxes - The consolidated financial statements are prepared in conformity with GAAP, requiring management to make estimates and assumptions, particularly for revenue recognition, credit loss allowance, income taxes, and equity-based compensation[292](index=292&type=chunk)[294](index=294&type=chunk) - Revenue from advisory and placement services is primarily recognized over time using a time-based measure of progress, with variable consideration excluded until uncertainty is resolved and a significant revenue reversal is improbable[298](index=298&type=chunk)[300](index=300&type=chunk) - The company classifies financial instruments measured at fair value into a three-level hierarchy based on market price observability: Level I (quoted prices in active markets), Level II (observable inputs other than quoted prices), and Level III (unobservable inputs requiring significant judgment)[312](index=312&type=chunk)[313](index=313&type=chunk) - Goodwill and intangible assets are reviewed for impairment annually or more frequently if circumstances indicate, with finite-lived intangible assets amortized on a straight-line basis over **4 to 15 years**[323](index=323&type=chunk)[324](index=324&type=chunk) - The company accounts for operating leases by recognizing Right-of-Use (ROU) assets and lease liabilities based on the present value of lease payments over the lease term, using an estimated incremental borrowing rate[327](index=327&type=chunk) - PJT Partners Inc. is subject to U.S. corporate federal, state, and local income taxes on its allocable share of operating partnership results, using the asset and liability method for deferred taxes and assessing valuation allowances[338](index=338&type=chunk)[339](index=339&type=chunk)[341](index=341&type=chunk) - The company adopted new FASB guidance on income taxes on January 1, 2021, with no material impact on its consolidated financial statements[354](index=354&type=chunk) [3. Revenues from Contracts with Customers](index=62&type=section&id=3.%20REVENUES%20FROM%20CONTRACTS%20WITH%20CUSTOMERS) Total revenues from contracts with customers were $986.4 million in 2021, with $35.6 million allocated to unsatisfied performance obligations expected to be recognized within twelve months Disaggregation of Revenues from Contracts with Customers (Thousands) | Revenue Type | 2021 | 2020 | 2019 | | :-------------------------------- | :------- | :------- | :------- | | Advisory Fees | $762,723 | $872,286 | $571,771 | | Placement Fees | $216,692 | $162,237 | $133,180 | | Interest Income from Placement Fees and Other | $7,001 | $10,485 | $11,800 | | **Total Revenues from Contracts with Customers** | **$986,416** | **$1,045,008** | **$716,751** | - As of December 31, 2021, the aggregate transaction price allocated to unsatisfied performance obligations is **$35.6 million**, expected to be recognized within the next twelve months[356](index=356&type=chunk) - The company recognized **$15.3 million in 2021** (vs. **$28.0 million in 2020**) from performance obligations fully satisfied in prior periods, primarily due to resolved variable consideration constraints[357](index=357&type=chunk) [4. Accounts Receivable and Allowance for Credit Losses](index=63&type=section&id=4.%20ACCOUNTS%20RECEIVABLE%20AND%20ALLOWANCE%20FOR%20CREDIT%20LOSSES) The allowance for credit losses increased to $1.85 million in 2021, with long-term receivables primarily from placement fees totaling $104.6 million Changes in Allowance for Credit Losses (Thousands) | Metric | 2021 | 2020 | | :-------------------------------- | :------- | :------- | | Balance, Beginning of Year | $1,330 | $0 | | Adoption of ASC 326 | — | $1,107 | | Provision for Credit Losses | $2,869 | $1,266 | | Write-offs | $(2,742) | $(1,368) | | Recoveries | $396 | $325 | | **Balance, End of Year** | **$1,853** | **$1,330** | - Long-term receivables, primarily from placement fees paid in installments over three to four years, totaled **$104.6 million** as of December 31, 2021 (vs. **$83.5 million in 2020**)[361](index=361&type=chunk) - The allowance for credit losses for long-term receivables was **$0.8 million** as of December 31, 2021 (vs. **$0.6 million in 2020**)[362](index=362&type=chunk) [5. Goodwill and Intangible Assets](index=63&type=section&id=5.%20GOODWILL%20AND%20INTANGIBLE%20ASSETS) No goodwill impairment was identified, and net intangible assets decreased to $24.4 million in 2021, with amortization expense of $7.6 million - No impairment of goodwill was identified as of December 31, 2021 and 2020[363](index=363&type=chunk) Intangible Assets, Net (Thousands) | Asset Type | December 31, 2021 | December 31, 2020 | | :----------------------- | :------------------ | :------------------ | | Customer Relationships | $61,276 | $61,276 | | Trade Name | $9,800 | $9,800 | | Total Intangible Assets | $71,076 | $71,076 | | Accumulated Amortization | $(46,690) | $(39,046) | | **Intangible Assets, Net** | **$24,386** | **$32,030** | - Amortization expense for intangible assets was **$7.6 million in 2021** (vs. **$7.8 million in 2020**)[365](index=365&type=chunk) - Expected amortization of intangible assets is **$6.5 million for 2022**, **$4.9 million for 2023 and 2024**, **$4.8 million for 2025**, and **$3.3 million for 2026**[366](index=366&type=chunk) [6. Furniture, Equipment and Leasehold Improvements](index=64&type=section&id=6.%20FURNITURE%2C%20EQUIPMENT%20AND%20LEASEHOLD%20IMPROVEMENTS) Net furniture, equipment, and leasehold improvements totaled $37.1 million in 2021, with depreciation expense increasing to $8.0 million Furniture, Equipment and Leasehold Improvements, Net (Thousands) | Asset Type | December 31, 2021 | December 31, 2020 | | :------------------------------------ | :------------------ | :------------------ | | Leasehold Improvements | $56,230 | $52,789 | | Furniture and Fixtures | $18,044 | $17,773 | | Office Equipment | $4,423 | $2,327 | | Total | $78,697 | $72,889 | | Accumulated Depreciation | $(41,550) | $(34,112) | | **Net** | **$37,147** | **$38,777** | - Depreciation expense was **$8.0 million in 2021**, an increase from **$7.3 million in 2020**[367](index=367&type=chunk) [7. Fair Value Measurements](index=64&type=section&id=7.%20FAIR%20VALUE%20MEASUREMENTS) Investments in Treasury securities, valued at $40.0 million in 2021, are classified as Level II in the fair value hierarchy using broker quotes Fair Value of Investments (Thousands) | Asset Type | December 31, 2021 (Level II) | December 31, 2020 (Level II) | | :---------------- | :--------------------------- | :--------------------------- | | Treasury Securities | $40,000 | $137,669 | | Other | — | $220 | | **Total** | **$40,000** | **$137,889** | - Investments in Treasury securities are recorded at fair value using broker quotes, reflecting inputs from auction yields, and are classified as Level II in the fair value hierarchy[314](index=314&type=chunk) [8. Income Taxes](index=65&type=section&id=8.%20INCOME%20TAXES) The effective income tax rate decreased to 13.4% in 2021, with a total provision for taxes of $29.5 million, and a net deferred tax asset of $63.8 million Income Before Provision for Taxes by Jurisdiction (Thousands) | Jurisdiction | 2021 | 2020 | 2019 | | :----------- | :------- | :------- | :------- | | Domestic | $235,453 | $260,361 | $110,012 | | International | $(16,004) | $(12,400) | $(27,822) | | **Total** | **$219,449** | **$247,961** | **$82,190** | Provision for Income Taxes (Thousands) | Tax Type | 2021 | 2020 | 2019 | | :----------------------- | :------- | :------- | :------- | | Current Federal Income Tax | $13,673 | $20,306 | $3,442 | | Current State and Local Income Tax | $6,096 | $7,747 | $3,142 | | Current Foreign Income Tax | $2,629 | $571 | $310 | | Deferred Federal Income Tax | $6,742 | $2,308 | $12,385 | | Deferred State and Local Income Tax | $345 | $300 | $3,365 | | Deferred Foreign Income Tax | $9 | $4,303 | $(4,241) | | **Total Provision for Taxes** | **$29,494** | **$35,535** | **$18,403** | Effective Income Tax Rate Reconciliation | Factor | 2021 | 2020 | 2019 | | :------------------------------------------ | :----- | :----- | :----- | | Expected Income Tax Expense at Federal Statutory Rate | 21.0% | 21.0% | 21.0% | | Permanent Differences for Compensation | -2.2% | -0.1% | 4.1% | | Income Not Subject to U.S. Corporate Income Taxes | -8.7% | -8.3% | -8.6% | | Foreign Income Taxes | 1.2% | 0.7% | -1.5% | | State and Local Income Taxes, Net of Federal Benefit | 2.5% | 2.9% | 5.7% | | Return to Provision | -0.1% | -0.4% | -0.2% | | Rate Change Impact | -0.5% | 0.0% | 1.3% | | Tax Benefit from NOL Carryback under CARES Act | — | -1.5% | — | | Other | 0.2% | 0.0% | 0.6% | | **Effective Income Tax Rate** | **13.4%** | **14.3%** | **22.4%** | Deferred Tax Assets and Liabilities, Net (Thousands) | Category | December 31, 2021 | December 31, 2020 | | :-------------------------------- | :------------------ | :------------------ | | Total Deferred Tax Assets | $92,484 | $80,473 | | Total Deferred Tax Liabilities | $28,702 | $27,143 | | **Deferred Tax Asset, Net** | **$63,782** | **$53,330** | - The company elected to carryback certain net operating losses under the CARES Act, resulting in a **$3.7 million decrease** in the Provision for Income Taxes for 2020[370](index=370&type=chunk) [9. Net Income Per Share of Class A Common Stock](index=67&type=section&id=9.%20NET%20INCOME%20PER%20SHARE%20OF%20CLASS%20A%20COMMON%20STOCK) Diluted net income per share of Class A common stock was $3.99 in 2021, reflecting the inclusion of exchangeable Partnership Units Net Income Per Share of Class A Common Stock | Metric | 2021 | 2020 | 2019 | | :------------------------------------ | :----- | :----- | :----- | | Net Income Attributable to PJT Partners Inc. | $106,168 | $117,549 | $29,562 | | Basic Net Income Per Share | $4.25 | $4.80 | $1.23 | | Diluted Net Income Per Share | $3.99 | $4.40 | $1.21 | | Basic Weighted-Average Shares Outstanding | 24,959,382 | 24,496,285 | 24,007,138 | | Diluted Weighted-Average Shares Outstanding | 42,358,705 | 43,127,166 | 25,014,569 | - Partnership Units are exchangeable for Class A common stock on a one-for-one basis, with **17,399,323 weighted-average incremental shares** from unvested RSUs and Partnership Units included in diluted EPS for 2021[377](index=377&type=chunk) [10. Equity-Based and Other Deferred Compensation](index=67&type=section&id=10.%20EQUITY-BASED%20AND%20OTHER%20DEFERRED%20COMPENSATION) Equity-based compensation expense was $108.9 million in 2021, with $128.8 million of unrecognized expense for RSUs and $8.4 million for Partnership Units Equity-Based Compensation Expense and Income Tax Benefit (Thousands) | Metric | 2021 | 2020 | 2019 | | :------------------------------ | :------- | :------- | :------- | | Equity-Based Compensation Expense | $108,913 | $120,912 | $111,568 | | Income Tax Benefit | $14,921 | $16,417 | $10,709 | Unvested Restricted Stock Units (RSUs) Activity (2021) | Metric | Number of Units | Weighted Average Grant Date Fair Value (in dollars) | | :-------------------------- | :-------------- | :------------------------------------------------ | | Balance, December 31, 2020 | 4,801,398 | $50.56 | | Granted | 1,451,588 | $73.45 | | Vested | (2,205,095) | $48.10 | | Forfeited | (77,457) | $60.52 | | Dividends Reinvested on RSUs | 128,237 | $61.30 | | **Balance, December 31, 2021** | **4,098,671** | **$60.14** | - As of December 31, 2021, there was **$128.8 million** of estimated unrecognized compensation expense for unvested RSU awards, expected to be recognized over a weighted-average period of **1.1 years**[381](index=381&type=chunk) - RSU awards with both service and market conditions had **282,497 units forfeited in 2021** because the specified market condition (Class A common stock achieving a **$79 volume-weighted average share price target**) was not met[390](index=390&type=chunk)[391](index=391&type=chunk) - As of December 31, 2021, there was **$8.4 million** of estimated unrecognized compensation expense related to unvested Partnership Units, expected to be recognized over a weighted-average period of **0.1 years**[389](index=389&type=chunk) - Deferred cash compensation expense was **$30.8 million in 2021**, with **$19.1 million** of unrecognized expense remaining, expected to be recognized over a weighted-average period of **1.0 years**[395](index=395&type=chunk) [11. Stockholders' Equity](index=71&type=section&id=11.%20STOCKHOLDERS%27%20EQUITY) Class A common stockholders have voting and dividend rights, while Class B common stock provides voting power to Partnership Unit holders, with non-controlling interest at 38.4% in 2021 - Holders of Class A common stock are entitled to one vote per share, dividends, and pro rata distribution of remaining assets upon liquidation[396](index=396&type=chunk) - Class B common stock, held by Partnership Unit holders, provides voting power commensurate with vested and unvested Partnership Units, without disproportionate or super-voting rights[397](index=397&type=chunk) - As of December 31, 2021, non-controlling interest was **38.4%** (vs. **41.0% in 2020**), representing the economic interest in PJT Partners Holdings LP not owned by PJT Partners Inc[400](index=400&type=chunk) - During 2021, the company repurchased **1.5 million shares** of Class A common stock for **$103.3 million** at an average price of **$71.13 per share**, increasing treasury stock[404](index=404&type=chunk) [12. Leases](index=72&type=section&id=12.%20LEASES) Total lease cost was $29.8 million in 2021, with a weighted-average remaining lease term of 7.6 years and total lease payments of $187.3 million Lease Expense (Thousands) | Expense Type | 2021 | 2020 | 2019 | | :--------------------- | :------- | :------- | :------- | | Operating Lease Cost | $27,519 | $27,492 | $25,473 | | Short-Term Lease Cost | $102 | — | $234 | | Variable Lease Cost | $3,090 | $3,101 | $2,900 | | Sublease Income | $(909) | $(2,757) | $(3,642) | | **Total Lease Cost** | **$29,802** | **$27,836** | **$24,965** | Operating Lease Liabilities Maturity Analysis (Thousands) | Year Ending December 31, | Amount | | :----------------------- | :------- | | 2022 | $29,709 | | 2023 | $30,028 | | 2024 | $28,507 | | 2025 | $24,741 | | 2026 | $19,470 | | Thereafter | $54,827 | | **Total Lease Payments** | **$187,282** | | Less: Imputed Interest | $(30,269) | | **Total** | **$157,013** | - The weighted-average remaining lease term was **7.6 years** as of December 31, 2021, with a weighted-average discount rate of **4.7%**[406](index=406&type=chunk) [13. Transactions with Related Parties](index=73&type=section&id=13.%20TRANSACTIONS%20WITH%20RELATED%20PARTIES) The company engaged in Partnership Unit exchanges totaling $109.6 million in cash in 2021 and has a tax receivable agreement with an estimated $31.1 million due - Partnership Unit holders have the right to exchange units for cash or Class A common stock, with **1.5 million units exchanged for $109.6 million cash in 2021** (vs. **1.7 million units for $101.9 million in 2020**)[407](index=407&type=chunk)[408](index=408&type=chunk) - The company has a tax receivable agreement to pay exchanging Partnership Unit holders **85% of the tax benefits** realized from increases in tax basis, with an estimated **$31.1 million due** as of December 31, 2021[412](index=412&type=chunk) - The company provides partners with personal use of a leased business aircraft, with partners paying full incremental costs[413](index=413&type=chunk) [14. Commitments and Contingencies](index=74&type=section&id=14.%20COMMITMENTS%20AND%20CONTINGENCIES) PJT Partners Holdings LP renewed its $60.0 million revolving credit facility, with no outstanding borrowings, and maintains a $4.1 million guarantee for employee loans - PJT Partners Holdings LP renewed its revolving credit facility in February 2021, increasing commitments to **$60.0 million** (up to **$80.0 million temporarily**), maturing October 1, 2022. No borrowings were outstanding as of December 31, 2021 and 2020[415](index=415&type=chunk)[420](index=420&type=chunk) - The company provides a guarantee of **$4.1 million** (vs. **$6.0 million in 2020**) to a lending institution for employee loans for investments in former Parent's funds, with an insignificant expected risk of loss[423](index=423&type=chunk) - Under an employee matters agreement with Blackstone, the company accrued **$2.6 million** (vs. **$2.4 million in 2020**) as of December 31, 2021, for net realized cash benefits from certain compensation-related tax deductions[427](index=427&type=chunk) [15. Regulated Entities](index=76&type=section&id=15.%20REGULATED%20ENTITIES) PJT Partners' U.S. broker-dealer and international entities were compliant with capital adequacy requirements, though new U.K. regulations will significantly increase capital requirements for its UK entity - PJT Partners LP, a U.S. registered broker-dealer, had net capital of **$79.4 million** as of December 31, 2021, exceeding its minimum requirement by **$77.6 million**[429](index=429&type=chunk) - International entities (PJT Partners (UK) Limited, PJT Partners (HK) Limited, PJT Partners Park Hill (Spain) A.V., S.A.U.) were in compliance with local capital adequacy requirements as of December 31, 2021[431](index=431&type=chunk) - The new U.K. prudential regime (IFPR) effective January 1, 2022, will substantially increase the capital PJT Partners (UK) Limited is required to maintain[432](index=432&type=chunk) [16. Business Information](index=76&type=section&id=16.%20BUSINESS%20INFORMATION) The company operates as a single reportable segment, with domestic revenues totaling $873.6 million and international revenues $118.4 million in 2021 - The company operates as a single reportable segment, managing its business based on overall operating results rather than by product line or geographic region[433](index=433&type=chunk)[435](index=435&type=chunk) Geographical Distribution of Revenues (Thousands) | Region | 2021 | 2020 | 2019 | | :--------- | :------- | :------- | :------- | | Domestic | $873,563 | $933,580 | $652,108 | | International | $118,382 | $118,720 | $65,531 | | **Total** | **$991,945** | **$1,052,300** | **$717,639** | Geographical Distribution of Assets (Thousands) | Region | December 31, 2021 | December 31, 2020 | | :--------- | :------------------ | :------------------ | | Domestic | $824,963 | $975,762 | | International | $162,662 | $195,845 | | **Total** | **$987,625** | **$1,171,607** | [17. Subsequent Events](index=77&type=section&id=17.%20SUBSEQUENT%20EVENTS) The Board declared a quarterly dividend of $0.25 per share of Class A common stock, payable on March 23, 2022 - The Board declared a quarterly dividend of **$0.25 per share** of Class A common stock, payable on March 23, 2022, to stockholders of record on March 9, 2022[438](index=438&type=chunk) - No other subsequent events requiring adjustment or further disclosure were identified, beyond those related to the Exchange Agreement[439](index=439&type=chunk) [Financial Statement Schedule: Schedule II – Valuation and Qualifying Accounts](index=78&type=section&id=Financial%20Statement%20Schedule%3A%20Schedule%20II%20%E2%80%93%20Valuation%20and%20Qualifying%20Accounts) This schedule details the changes in the allowance for credit losses, which ended at $1.85 million in 2021, following the adoption of ASC 326 Schedule II – Valuation and Qualifying Accounts (Thousands) | Metric | 2021 | 2020 | | :-------------------------------- | :------- | :------- | | Balance, Beginning of Period | $1,330 | $0 | | Additions: Provision for Credit Losses | $2,869 | $1,266 | | Additions: Recoveries | $396 | $325 | | Deductions: Charge-offs of Uncollectible Balances | $(2,742) | $(1,368) | | **Balance, End of Period** | **$1,853** | **$1,330** | - The company adopted new guidance for credit loss measurement (ASC 326) using the modified retrospective approach as of January 1, 2020, without restating comparative information[441](index=441&type=chunk) [ITEM 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure](index=79&type=section&id=ITEM%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) The company reported no changes in or disagreements with accountants on accounting and financial disclosure - No changes in or disagreements with accountants on accounting and financial disclosure were reported[443](index=443&type=chunk) [ITEM 9A. Controls and Procedures](index=79&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2021, with no material changes during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2021[444](index=444&type=chunk) - No material changes in internal control over financial reporting occurred during the most recent quarter[445](index=445&type=chunk) - Management assessed and determined that the company's internal control over financial reporting was effective as of December 31, 2021, based on the COSO framework[449](index=449&type=chunk) - Deloitte & Touche LLP issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2021[454](index=454&type=chunk)[455](index=455&type=chunk) [ITEM 9B. Other Information](index=81&type=section&id=ITEM%209B.%20OTHER%20INFORMATION) The company reported no other information for this item - No other information was reported for this item[461](index=461&type=chunk) [ITEM 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections](index=81&type=section&id=ITEM%209C.%20DISCLOSURE%20REGARDING%20FOREIGN%20JURISDICTIONS%20THAT%20PREVENT%20INSPECTIONS) This item is not applicable to the company - This item is not applicable[462](index=462&type=chunk) [PART III. Directors, Executive Officers, and Governance](index=82&type=section&id=PART%20III.) This part incorporates by reference information on the company's directors, executive officers, corporate governance, compensation, security ownership, and related party transactions from its Proxy Statement [ITEM 10. Directors, Executive Officers and Corporate Governance](index=82&type=section&id=ITEM%2010.%20DIRECTORS%2C%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2022 Annual Meeting of Shareholders Proxy Statement - Information on directors, executive officers, and corporate governance is incorporated by reference from the 2022 Annual Meeting of Shareholders Proxy Statement[464](index=464&type=chunk)[465](index=465&type=chunk) - The Code of Business Conduct and Ethics, applicable to all directors, officers, and employees, is available on the company's website[466](index=466&type=chunk) [ITEM 11. Executive Compensation](index=82&type=section&id=ITEM%2011.%20EXECUTIVE%20COMPENSATION) Information regarding executive and director compensation, along with the Compensation Committee report, is incorporated by reference from the company's Proxy Statement - Information on executive compensation, director compensation, and the Compensation Committee report is incorporated by reference from the Proxy Statement[467](index=467&type=chunk)[468](index=468&type=chunk) [ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=82&type=section&id=ITEM%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20STOCKHOLDER%20MATTERS) Details on equity compensation plans and security ownership of beneficial owners and management are incorporated by reference from the company's Proxy Statement - Information on equity compensation plan details and security ownership is incorporated by reference from the Proxy Statement[469](index=469&type=chunk) [ITEM 13. Certain Relationships and Related Transactions, and Director Independence](index=82&type=section&id=ITEM%2013.%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS%2C%20AND%20DIRECTOR%20INDEPENDENCE) Information concerning certain relationships, related person transactions, and director independence is incorporated by reference from the company's Proxy Statement - Information on certain relationships, related person transactions, and director independence is incorporated by reference from the Proxy Statement[470](index=470&type=chunk) [ITEM 14. Principal Accounting Fees and Services](index=82&type=section&id=ITEM%2014.%20PRINCIPAL%20ACCOUNTING%20FEES%20AND%20SERVICES) Information regarding the independent registered public accounting firm's fees and services is incorporated by reference from the company's Proxy Statement - Information on independent registered public accounting firm fees and services is incorporated by reference from the Proxy Statement[471](index=471&type=chunk) [PART IV. Exhibits and Form 10-K Summary](index=83&type=section&id=PART%20IV.) This part lists required financial statements, schedules, and a comprehensive set of exhibits, including key legal and operational agreements [ITEM 15. Exhibits, Financial Statement Schedules](index=83&type=section&id=ITEM%2015.%20EXHIBITS%2C%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists the financial statements, schedules, and a comprehensive set of exhibits, including various foundational legal and operational agreements - The consolidated financial statements and financial statement schedules are included in Item 8 of this Annual Report on Form 10-K[473](index=473&type=chunk)[474](index=474&type=chunk) - A comprehensive list of exhibits is provided, including key agreements such as the Separation and Distribution Agreement, Amended and Restated Loan Agreement, Tax Receivable Agreement, and various equity incentive plans[474](index=474&type=chunk)[475](index=475&type=chunk)[476](index=476&type=chunk) - Exhibits also include certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a) and 18 U.S.C. Section 1350, as well as Inline XBRL documents[477](index=477&type=chunk) [ITEM 16. Form 10-K Summary](index=86&type=section&id=ITEM%2016.%20FORM%2010-K%20SUMMARY) The company does not provide a Form 10-K summary in this report - No Form 10-K summary is provided[478](index=478&type=chunk) [SIGNATURES](index=87&type=section&id=SIGNATURES) The Annual Report on Form 10-K was duly signed by the Chairman, CEO, CFO, and other directors on February 25, 2022 [Signatures](index=87&type=section&id=SIGNATURES) The Annual Report on Form 10-K was duly signed on behalf of PJT Partners Inc. by Paul J. Taubman, Chairman and Chief Executive Officer, and Helen T. Meates, Chief Financial Officer, along with other directors, on February 25, 2022 - The report was signed by Paul J. Taubman, Chairman and Chief Executive Officer, and Helen T. Meates, Chief Financial Officer, on February 25, 2022[482](index=482&type=chunk)[483](index=483&type=chunk)

Investor Presentation February 1, 2022 Notices and Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include certain information concerning future results of operations, business strategies, acquisitions, financing plans, competitive position, potential growth opportunities, potential operating p ...

PJT Partners Inc. (NYSE:PJT) Q4 2021 Earnings Conference Call February 1, 2022 8:30 AM ET Company Participants Paul Taubman – Chairman and Chief Executive Officer Helen Meates – Chief Financial Officer Sharon Pearson – Head of Investor Relations Conference Call Participants Richard Ramsden – Goldman Sachs Steven Chubak – Wolfe Research Michael C. Brown – Keefe, Bruyette & Woods, Inc. Jeff Harte – Piper Sandler Devin Ryan – JMP Securities Operator Good day and welcome to the PJT Partners, Fourth Quarter 2021 ...

PART I. FINANCIAL INFORMATION [ITEM 1. FINANCIAL STATEMENTS](index=5&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements, including financial condition, operations, and cash flows, for PJT Partners Inc [Condensed Consolidated Statements of Financial Condition](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) The company's financial condition as of September 30, 2021, shows a decrease in total assets and equity compared to year-end 2020, while total liabilities remained stable Condensed Consolidated Statements of Financial Condition | Financial Metric | Sep 30, 2021 ($ in thousands) | Dec 31, 2020 ($ in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$1,078,066** | **$1,171,607** | | Cash and Cash Equivalents | $261,102 | $299,513 | | Investments | $72,696 | $137,889 | | Accounts Receivable, Net | $250,443 | $233,166 | | **Total Liabilities** | **$483,346** | **$483,761** | | Accrued Compensation and Benefits | $178,611 | $253,456 | | **Total Equity** | **$594,720** | **$687,846** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company's operations for Q3 and the nine months ended September 30, 2021, show a decrease in total revenues and net income, primarily due to lower Advisory Fees Condensed Consolidated Statements of Operations | Metric ($ in thousands) | Q3 2021 | Q3 2020 | YoY Change | 9 Months 2021 | 9 Months 2020 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$231,298** | **$297,563** | **-22%** | **$678,679** | **$730,297** | **-7%** | | Advisory Fees | $179,900 | $262,400 | -31% | $530,124 | $611,530 | -13% | | Placement Fees | $46,891 | $31,774 | +48% | $137,611 | $106,026 | +30% | | **Total Expenses** | **$183,023** | **$227,467** | **-20%** | **$534,069** | **$576,965** | **-7%** | | Compensation and Benefits | $148,149 | $196,896 | -25% | $434,866 | $485,650 | -10% | | **Net Income** | **$39,185** | **$58,107** | **-33%** | **$125,837** | **$131,033** | **-4%** | | **Diluted EPS** | **$0.82** | **$1.22** | **-33%** | **$2.72** | **$2.87** | **-5%** | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flow analysis for the nine months ended September 30, 2021, indicates a decrease in operating cash, a shift to positive investing cash, and increased cash usage in financing activities Condensed Consolidated Statements of Cash Flows | Cash Flow Activity ($ in thousands) | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $133,645 | $300,056 | | Net Cash Provided by (Used in) Investing Activities | $60,423 | $(235,465) | | Net Cash Used in Financing Activities | $(230,906) | $(140,018) | | **Net Decrease in Cash and Cash Equivalents** | **$(38,411)** | **$(77,489)** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes to the financial statements provide details on revenue recognition, equity compensation, related party transactions, and significant subsequent events including share repurchases and dividends - As of September 30, 2021, the company had **$33.2 million** in transaction price allocated to unsatisfied performance obligations, which is expected to be recognized as revenue within the next twelve months[39](index=39&type=chunk) - During the nine months ended September 30, 2021, the company repurchased **1.3 million shares** of Class A common stock for an aggregate of **$94.6 million**, with **$91.9 million** remaining available for repurchase under the program[55](index=55&type=chunk) - On October 18, 2021, the company paid a special dividend of **$3.00 per share**, totaling **$73.0 million**. A regular quarterly dividend of **$0.05 per share** was also declared, payable on December 22, 2021[97](index=97&type=chunk)[98](index=98&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=25&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the financial performance, attributing revenue declines to decreased restructuring activity and highlighting the company's strong liquidity position [Business Environment](index=25&type=section&id=Business%20Environment) The business environment in the first nine months of 2021 saw increased M&A volumes, slowed restructuring activity, and a focus on existing relationships in fundraising - Worldwide M&A announced volumes were up significantly in the first nine months of 2021 compared to the same period in 2020[104](index=104&type=chunk) - Global restructuring activity slowed from elevated 2020 levels through the first nine months of 2021, driven by economic recovery and stimulus[105](index=105&type=chunk) - In the fundraising market, investors are focused on existing relationships, and secondary market activity, particularly GP-led continuation vehicles, continues to increase[107](index=107&type=chunk) [Condensed Consolidated Results of Operations](index=28&type=section&id=Condensed%20Consolidated%20Results%20of%20Operations) The company's consolidated results show a decline in Q3 and nine-month revenues, primarily due to lower Advisory Fees, partially offset by increased Placement Fees, with expenses decreasing in line with revenues - Q3 2021 Advisory Fees decreased by **$82.5 million** YoY, as an increase in strategic advisory revenues was more than offset by a decline in restructuring revenues from 2020's record levels[124](index=124&type=chunk) - Q3 2021 Placement Fees increased by **$15.1 million** YoY, driven by an increase in fund placement activity[124](index=124&type=chunk) - The decrease in Compensation and Benefits expense for both the three and nine-month periods was principally the result of lower revenues[126](index=126&type=chunk)[127](index=127&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with substantial cash and an undrawn credit facility, despite significant cash usage for share repurchases and partnership unit redemptions - As of September 30, 2021, the company had cash, cash equivalents, and short-term investments of **$333.8 million**[135](index=135&type=chunk) - The company has a **$60 million** revolving credit facility which was undrawn as of September 30, 2021[79](index=79&type=chunk)[81](index=81&type=chunk) - For the nine months ended September 30, 2021, the company used **$95.9 million** for cash exchanges of Partnership Units and **$94.6 million** for share repurchases[145](index=145&type=chunk)[147](index=147&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=34&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company identifies primary market risks as credit risk from receivables and foreign currency exchange rate risk, noting minimal exposure to interest rate or commodity price fluctuations - The company's primary financial risks are credit risk from receivables and foreign currency exchange rate risk, particularly with the pound sterling, euro, Japanese yen, and Hong Kong dollar[160](index=160&type=chunk)[163](index=163&type=chunk) - For the nine months ended September 30, 2021, foreign currency fluctuations resulted in a loss of **$1.5 million** recorded in Other Comprehensive Income and a loss of **$1.4 million** in Interest Income and Other[163](index=163&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=34&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of September 30, 2021[164](index=164&type=chunk) - No material changes in internal control over financial reporting occurred during the third quarter of 2021[165](index=165&type=chunk) PART II. OTHER INFORMATION [ITEM 1. LEGAL PROCEEDINGS](index=35&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is subject to ordinary course legal and regulatory proceedings, with no material pending matters expected to significantly impact its financial condition - The company states that it is not currently party to any material pending legal proceedings that would have a material effect on its financial statements[167](index=167&type=chunk) [ITEM 1A. RISK FACTORS](index=35&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes were reported to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2020 - No material changes were reported from the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2020[168](index=168&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=35&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During Q3 2021, the company repurchased 187,754 shares of Class A common stock, with $91.9 million remaining available under the repurchase program Share Repurchases in Q3 2021 | Period | Total Shares Repurchased | Average Price Paid Per Share | | :--- | :--- | :--- | | July 2021 | 64,254 | $72.17 | | August 2021 | 71,000 | $78.93 | | September 2021 | 52,500 | $77.72 | | **Q3 2021 Total** | **187,754** | **$76.28** | - As of the end of Q3 2021, the approximate dollar value of shares that may yet be purchased under the repurchase program was **$91.9 million**[170](index=170&type=chunk) [ITEM 6. EXHIBITS](index=37&type=section&id=ITEM%206.%20EXHIBITS) This section provides a list of exhibits filed with the Form 10-Q, including governance documents and certifications

Investor Presentation October 26, 2021 Notices and Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include certain information concerning future results of operations, business strategies, acquisitions, financing plans, competitive position, potential growth opportunities, potential operating p ...

Financial Data and Key Metrics Changes - Total revenues for Q3 2021 were $231 million, down 22% year-over-year [10] - Advisory revenues were $180 million, down 31% year-over-year, primarily due to a decline in restructuring revenues [10] - Placement revenues increased by 48% year-over-year to $47 million, driven by strong fund placement activity [10] - For the nine months ended September 30, total revenues were $679 million, down 7% year-over-year [11] - Adjusted pre-tax income for Q3 was $54 million, with an adjusted pre-tax margin of 23.3% [12] Business Line Data and Key Metrics Changes - Strategic Advisory revenues continued to grow year-over-year, but overall growth was offset by a decline in restructuring revenues [10][11] - Restructuring revenues saw a nearly $100 million decline compared to last year's record levels [8] - PJT Park Hill is delivering record performance, benefiting from strong growth trends in the alternative asset investment market [19] - PJT CamberView is also expected to deliver record performance in 2021, entering 2022 with a strong backlog [21] Market Data and Key Metrics Changes - The restructuring environment is currently dampened due to benign credit markets and unprecedented monetary policy support, returning to 2019 levels [7][17] - Early signs of stress are building in the system, with rising labor costs and inflationary expectations [18] Company Strategy and Development Direction - The company remains focused on long-term growth, investing in its business despite current headwinds in restructuring [18] - There is a strong emphasis on building trusted relationships and long-term opportunities rather than chasing immediate gains [28] - The company is positioned to take advantage of expanded opportunities with financial sponsors and asset managers [19] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about the long-term outlook for restructuring, expecting increased demand due to the fallout from COVID-19 [17] - The company anticipates a significant increase in Strategic Advisory revenues in Q4 2021 and into 2022 [20] - Rising interest rates are expected to create a more favorable environment for restructuring activities [36] Other Important Information - The company ended the quarter with $334 million in cash and no funded debt outstanding [15] - A special dividend of $3.00 per share was paid, with a regular dividend of $0.05 per share approved for December [15] Q&A Session Summary Question: Outlook for Strategic Advisory and productivity of partners - Management noted that all partners are showing increased productivity, with a long-term view on building relationships [27] Question: Capital return priorities and future buybacks - The company plans to continue aggressive share repurchases, with potential for increased dividends in the future [31] Question: Impact of rising interest rates on business - Rising rates may create a more favorable environment for restructuring, but the Strategic Advisory business is less affected by macro trends [36][40] Question: Expectations for restructuring business in 2022 - Management is confident that restructuring revenues will return to 2019 levels, with a neutral outlook for 2022 [43] Question: Competitive positioning and growth expectations - The company views itself as still in the early stages of growth, with significant potential for future expansion [55]

PJT Partners Inc. (NYSE:PJT) Q2 2021 Earnings Conference Call July 29, 2021 8:30 AM ET Company Participants Sharon Pearson - IR Paul Taubman - Chairman and CEO Helen Meates - CFO Conference Call Participants Devin Ryan - JMP Securities Richard Ramsden - Goldman Sachs Brendan O'Brien - Wolfe Research Michael Brown - KBW Securities Operator Good day, and welcome to the PJT Partners Second Quarter 2021 Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Sh ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2021 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: 001-36869 PJT Partners Inc. (Exact name of registrant as specified in its charter) Delaware 36-4797143 (State or other jurisdiction ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2021 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: 001-36869 PJT Partners Inc. (Exact name of registrant as specified in its charter) Delaware 36-4797143 (State or other jurisdiction ...