Moelis & pany(US:MC)2022-02-22 16:00Financial Performance - For the year ended December 31, 2021, the company earned GAAP revenues of $1,540.6 million, an increase of 63% from $943.3 million in 2020[193]. - The company reported a net income of $422.978 million for the year ended December 31, 2021, an increase of 93.5% from $218.438 million in 2020[236]. - Total operating activities generated cash inflow of $936.980 million in 2021, significantly higher than $429.215 million in 2020[236]. - Other income for 2021 was $40.4 million, significantly up from $4.4 million in 2020, driven by gains on investments[215]. Client Growth - The number of fee-paying clients increased from 316 in 2020 to 404 in 2021, with clients paying fees of $1 million or more rising from 205 to 282[205]. - The fourth quarter of 2021 marked six consecutive quarters with over 1,000 global announced transactions greater than $100 million, totaling over $1 trillion in deal values[194]. Operating Expenses - Operating expenses for 2021 were $1,044.7 million, representing 68% of revenues, down from 72% in 2020[207]. - Compensation and benefits expenses were $913.9 million, accounting for 59% of revenues, consistent with the prior year[210]. - Non-compensation expenses increased to $130.8 million, representing 8% of revenues, compared to 12% in 2020[213]. Cash and Investments - As of December 31, 2021, the company had cash equivalents of $385.0 million and cash of $135.2 million, compared to $119.0 million and $83.5 million, respectively, as of December 31, 2020[220]. - Cash, cash equivalents, and restricted cash increased to $521.0 million as of December 31, 2021, up from $203.3 million in 2020[237]. - The company maintains a $65.0 million revolving credit facility, with no borrowings under the facility as of December 31, 2021[224]. Shareholder Returns - The company repurchased 1,914,097 shares in 2021, with an additional $100 million authorized for share repurchase in July 2021[228]. - The company declared a dividend of $0.60 per share to be paid on March 28, 2022, following total dividends of $6.80 per share in 2021[227]. Taxation - The company's provision for income taxes was $113.3 million for 2021, with an effective tax rate of 21%, compared to $51.7 million and 19% in 2020[217]. - No unrecognized tax benefits were recorded for the years ended December 31, 2021, and 2020[257]. - Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion will not be realized[256]. Revenue Recognition - The Company earns most of its revenues from advisory services related to mergers and acquisitions, recapitalizations, restructurings, and capital markets transactions[247]. - The majority of advisory services revenue is recognized over time, with performance obligations fulfilled and collection reasonably assured[248]. - Transaction fees are variable and recognized only when substantially all services are provided and conditions are met, ensuring no significant revenue reversal occurs[249]. - Fairness opinion fees are fixed and recognized at a point in time upon formal completion of the engagement[250]. - Incremental costs of obtaining contracts are expensed as incurred, with typical advisory contracts lasting less than one year[251]. Risk Management - The Company maintains an allowance for credit losses based on the aging of receivables and current economic conditions[254]. - The net impact of foreign currency fluctuations resulted in a loss of $0.4 million in 2021, compared to a loss of $2.0 million in 2020[244]. Accounting Developments - Recent accounting developments may impact the consolidated financial statements, as discussed in Note 3 of the consolidated financial statements[258].