PJT Partners (PJT) - 2025 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION FINANCIAL STATEMENTS The company's Q1 2025 unaudited statements show higher net income due to a tax benefit and a declared dividend Condensed Consolidated Statements of Operations (Q1 2025 vs. Q1 2024) | | Three Months Ended March 31, | | :--- | :--- | :--- | | (In thousands) | 2025 | 2024 | | Total Revenues | $324,531 | $329,393 | | Total Expenses | $271,953 | $275,490 | | Income Before Provision (Benefit) for Taxes | $52,578 | $53,903 | | Provision (Benefit) for Taxes | $(21,585) | $531 | | Net Income | $74,163 | $53,372 | | Net Income Attributable to PJT Partners Inc. | $54,016 | $32,623 | | Diluted EPS | $1.99 | $1.22 | Condensed Consolidated Statements of Financial Condition | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | (In thousands) | | | | Cash and Cash Equivalents | $194,271 | $483,877 | | Accounts Receivable, Net | $338,628 | $320,783 | | Total Assets | $1,396,700 | $1,635,334 | | Accrued Compensation and Benefits | $72,579 | $299,255 | | Total Liabilities | $572,388 | $733,691 | | Total Equity | $824,312 | $901,643 | - Net cash used in operating activities was $75.9 million for Q1 2025, compared to $38.8 million in Q1 2024, primarily due to a larger decrease in accrued compensation and benefits after bonus payments[25] - The Board declared a quarterly dividend of $0.25 per share of Class A common stock, payable on June 18, 2025[88] - The company operates as a single reportable segment, providing advisory and placement services, with performance assessed on a consolidated basis by the CODM[84][85] MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Q1 2025 saw a slight revenue and expense decrease, with strong liquidity and a stable M&A environment Results of Operations Revenues and expenses both decreased 1%, while a significant tax benefit drove a 66% increase in net income Q1 2025 vs Q1 2024 Performance | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $324.5M | $329.4M | (1)% | | Advisory Fees | $282.2M | $288.7M | (2)% | | Placement Fees | $36.0M | $34.5M | 4% | | Total Expenses | $272.0M | $275.5M | (1)% | | Compensation & Benefits | $221.1M | $228.9M | (3)% | | Net Income Attributable to PJT | $54.0M | $32.6M | 66% | - The decrease in Advisory Fees was due to lower revenues from restructuring and private capital solutions, which was mostly offset by an increase in strategic advisory revenues[113] - The decrease in Compensation and Benefits was principally driven by a lower accrual rate compared to the prior year[115] - The effective tax rate was -41.1% for Q1 2025 compared to 1.0% for Q1 2024, primarily due to an increased tax benefit related to the delivery of vested shares[116] Liquidity and Capital Resources The company maintains strong liquidity with $226.8 million in cash and investments to fund operations and returns - As of March 31, 2025, the company had cash, cash equivalents, and short-term investments of $226.8 million[121] - The company has a $100 million syndicated revolving credit facility maturing in July 2026, which was undrawn as of March 31, 2025[120][71] - During Q1 2025, the company repurchased 0.8 million shares for $127.1 million, with $150.5 million remaining under the share repurchase program[130][55] - In Q1 2025, certain holders exchanged 0.3 million Partnership Units for $57.3 million in cash[128][65] QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Market risk exposures remain materially unchanged from the previous fiscal year-end - The company's exposures to market risk have not changed materially since December 31, 2024[140] CONTROLS AND PROCEDURES Disclosure controls and procedures were deemed effective with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by this report[141] - No material changes occurred in the company's internal control over financial reporting during the most recent quarter[142] PART II. OTHER INFORMATION LEGAL PROCEEDINGS The company faces no pending legal proceedings expected to materially impact its financial condition - The company is not currently party to any material pending legal proceedings that would have a material effect on its financial state[144] RISK FACTORS Risk factors remain materially unchanged from the previous Annual Report on Form 10-K - There were no material changes from the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[146] UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS The company repurchased $127.1 million of shares in Q1 2025, with $150.5 million remaining in its authorization Issuer Purchases of Equity Securities in Q1 2025 | Period | Total Shares Repurchased | Average Price Paid Per Share | Remaining Authorization | | :--- | :--- | :--- | :--- | | Jan 1 - Jan 31 | 198,547 | $160.82 | $245.7M | | Feb 1 - Feb 28 | 305,071 | $169.45 | $194.0M | | Mar 1 - Mar 31 | 298,298 | $145.79 | $150.5M | | Total | 801,916 | $158.51 | $150.5M | - The company issued eight corresponding shares of its Class B common stock in connection with the issuance or transfer of Partnership Units during Q1 2025[149] DEFAULTS UPON SENIOR SECURITIES This item is not applicable for the reporting period - Not applicable[150] MINE SAFETY DISCLOSURES This item is not applicable for the reporting period - Not applicable[151] OTHER INFORMATION No directors or officers adopted, terminated, or modified Rule 10b5-1 trading arrangements in Q1 2025 - During the three months ended March 31, 2025, none of the Company's directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement[152] EXHIBITS This section lists all exhibits filed with the Form 10-Q, including certifications and XBRL data - Lists exhibits filed with the report, including CEO and CFO certifications pursuant to Rule 13a-14(a) and Section 906 of the Sarbanes-Oxley Act, and Inline XBRL documents[154]