Houlihan Lokey(HLI) - 2025 Q3 - Quarterly Results

Financial Performance - Third Quarter Fiscal 2025 revenues were $634 million, a 24% increase from $511 million in the same quarter of the previous year[2] - Net income for the third quarter was $95 million, or $1.39 per diluted share, compared to $71 million, or $1.04 per diluted share, in the prior year[2] - Adjusted net income for the third quarter was $114 million, or $1.64 per diluted share, up from $84 million, or $1.22 per diluted share, year-over-year[2] - Revenues for the three months ended December 31, 2024, were $634.4 million, a 24.1% increase from $511.1 million in the same period of 2023[32] - Net income for the three months ended December 31, 2024, was $95.3 million, up 34.7% from $70.8 million in the prior year[32] - Adjusted net income for the same period was $113.5 million, representing a 34.9% increase compared to $84.1 million in 2023[33] - Operating income for the three months ended December 31, 2024, was $136.1 million, a 41.1% increase from $96.5 million in the same quarter of 2023[32] - The company reported a fully diluted EPS of $1.39 for the three months ended December 31, 2024, compared to $1.04 in the same period of 2023, marking a 33.7% increase[33] Revenue Breakdown - Corporate Finance revenues increased by 36% to $422 million, driven by a higher number of closed transactions[16] - Financial Restructuring revenues rose by 2% to $131 million, attributed to favorable market conditions for restructuring transactions[18] - Financial and Valuation Advisory revenues grew by 14% to $82 million, supported by an increase in Fee Events and average fees[20] Expenses and Liabilities - Employee compensation and benefits expenses were $403 million, up from $324 million in the same quarter last year, maintaining a compensation ratio of 61.5%[12] - Employee compensation and benefits expenses for the three months ended December 31, 2024, were $390.2 million, up 24.1% from $314.3 million in 2023[32] - The company’s total liabilities increased to $1.40 billion as of December 31, 2024, from $1.33 billion as of March 31, 2024, reflecting a growth of 5.0%[30] Taxation - The provision for income taxes was $50 million, with an effective tax rate of 34.3%, compared to $32 million and 31.0% in the prior year[14] - The adjusted effective tax rate reflects a tax impact on non-tax adjustments identified[34] - All adjustments identified are net of the associated tax impact[34] Assets and Cash Position - Total assets increased to $3.48 billion as of December 31, 2024, from $3.17 billion as of March 31, 2024, reflecting a growth of 9.6%[30] - Goodwill rose to $1.28 billion, up from $1.13 billion, indicating an increase of 13.5%[30] - As of December 31, 2024, the company had $903 million in cash and cash equivalents[22] Dividends - The Board declared a quarterly cash dividend of $0.57 per share, payable on March 15, 2025[22] Share Information - The weighted average shares of common stock outstanding increased to 68.8 million for the three months ended December 31, 2024, from 67.9 million in the same period of 2023[32]