Moelis & pany(MC)2025-02-27 21:15Financial Performance - For the year ended December 31, 2024, the company earned GAAP revenues of 854.7 million in 2023[201]. - The company reported a net income of 27.5 million in 2023[243]. - Total operating activities generated cash inflows of 158.5 million in 2023[243]. - Cash, cash equivalents, and restricted cash increased to 187.2 million in 2023, marking a 1 million or more rising from 175 to 241[212]. Operating Expenses - Operating expenses for 2024 were 895.1 million or 105% of revenues in 2023[214]. - Compensation and benefits expenses were 191.4 million in 2024, representing 16% of revenues, compared to 21% in the prior year[220]. Tax and Other Income - The provision for income taxes was 196.0 million, compared to a benefit of 23.1 million, up from 350.9 million, up from 61.5 million, compared to 50.0 million, with no borrowings under the 290.8 million due under the tax receivable agreement as of December 31, 2024, with no payments due in less than one year[245]. Shareholder Returns - A regular quarterly dividend of 2.40 per share paid in 2024[234]. - The company repurchased 196,416 shares in 2024, down from 1,107,683 shares in 2023, with 62.5 million remaining under the share repurchase program as of December 31, 2024[235]. Market Conditions - The M&A market showed gradual improvement throughout 2024, with expectations for continued growth in client engagement and transaction activity[202]. - The company anticipates a prolonged restructuring cycle driven by elevated borrowing costs, providing opportunities for liability management[202]. - The company operates in a highly competitive environment, with revenues primarily generated from advisory engagements that are not predictable[206]. Revenue Recognition - The company earns the majority of its revenues from advisory services related to mergers and acquisitions, capital markets transactions, and corporate finance matters[255]. - Revenue from advisory services is recognized over time as performance obligations are fulfilled, with upfront fees recognized systematically over the service period[256][257]. - Fixed fees for fairness opinions are recognized at a point in time upon completion of the engagement, while underwriting fees are recognized when the offering is completed[258]. - Deferred revenues are recorded when fees are received but not yet earned, reflecting the company's right to consideration before all performance obligations are complete[259]. Accounts Receivable and Credit Losses - Accounts receivable as of December 31, 2024, were 51.4 million, slightly up from 1.7 million and $1.3 million, respectively[230]. - The company maintains an allowance for credit losses based on the aging of accounts receivable, with reserves adjusted according to historical charge-offs and current economic conditions[261]. Tax Positions - No unrecognized tax benefits were recorded for the years ended December 31, 2024 and 2023, and no income tax-related interest or penalties were recorded for the same periods[265]. - The company evaluates uncertain tax positions regularly, with potential adjustments recorded in the period of determination[265]. Accounting Developments - Recent accounting developments and their potential impact on financial statements are discussed in Note 3 of the consolidated financial statements[266]. - Quantitative and qualitative disclosures about market risk are provided in the management's discussion and analysis section[267].