- Fourth quarter revenues of $438.7 million, up 104% from the
prior year period
- Full year 2024 GAAP revenues of $1,194.5 million; full year
2024 Adjusted revenues of $1,201.5 million, up 40% from the prior
year
- GAAP net income of $1.15 per share (diluted) for the fourth
quarter of 2024 and $1.78 per share (diluted) for the full year;
Adjusted net income of $1.18 per share (diluted) for the fourth
quarter and $1.82 per share (diluted) for the full year
- Fourth quarter Adjusted pre-tax margin of 31.4%; full year 2024
Adjusted pre-tax margin of 16.4%
- Continued to execute on our growth strategy:
- In 2024, we promoted seven advisory professionals to Managing
Director and hired eight Managing Directors
- In early 2025, we promoted 12 advisory professionals to
Managing Director and hired a Global Head of Private Funds
Advisory
- Strong balance sheet with cash and short-term investments of
$560.4 million and no debt or goodwill
- Increased regular quarterly dividend 8% to $0.65 per share
Moelis & Company (NYSE:MC) today reported financial results
for the fourth quarter and full year ended December 31, 2024. The
Firm's fourth quarter revenues were $438.7 million and represented
an increase of 104% from the prior year period. The Firm reported
fourth quarter GAAP net income of $99.8 million, or $1.15 per share
(diluted). On an Adjusted basis, the Firm reported net income of
$99.0 million and $1.18 per share (diluted) for the fourth quarter
of 2024, as compared with a net loss of $4.8 million, or ($0.06)
per share, in the prior year period.
The Firm's full year 2024 GAAP revenues were $1,194.5 million.
On an Adjusted basis, the Firm's full year 2024 revenues were
$1,201.5 million and represented an increase of 40% from the prior
year. The Firm reported full year 2024 GAAP net income of $151.5
million, or $1.78 per share (diluted). On an Adjusted basis, the
Firm reported net income of $150.4 million, or $1.82 per share
(diluted) for full year 2024, as compared with a net loss of $15.0
million, or ($0.20) per share (diluted), in the prior year. GAAP
and Adjusted net income in full year 2024 include net tax benefits
of approximately $0.16 per share (diluted) related to the
settlement of share-based awards.
"Our 2024 results reflect strong performance across our
business, fueled by the strength of our integrated global team. We
are encouraged by our momentum heading into 2025 and the Firm has
never been better positioned to continue delivering for our clients
and shareholders," said Ken Moelis, Chairman and Chief Executive
Officer.
The Firm’s revenues and net income can fluctuate materially
depending on the number, size and timing of completed transactions
as well as other factors. Accordingly, financial results in any
particular quarter may not be representative of future results over
a longer period of time.
Currently 92% of the operating partnership (Moelis & Company
Group LP) is owned by the corporate partner (Moelis & Company)
and is subject to corporate U.S. federal and state income tax. The
remaining 8% is owned by other partners of Moelis & Company
Group LP and is primarily subject to U.S. federal tax at the
partner level (certain state, local and foreign income taxes are
incurred at the company level). The Adjusted results included
herein apply certain adjustments from our GAAP results, including
the assumption that 100% of the Firm’s operating result was taxed
at our corporate effective tax rate. We believe the Adjusted
results, when presented together with comparable GAAP results, are
useful to investors to compare our performance across periods and
to better understand our operating results. A reconciliation
between our GAAP results and our Adjusted results is presented in
the Appendix to this press release.
GAAP and Adjusted (non-GAAP) Selected
Financial Data (Unaudited)
GAAP
Adjusted (non-GAAP)*
Three Months Ended December
31,
($ in thousands except per share
data)
2024
2023
Variance
2024
2023
Variance
Revenues
$
438,719
$
214,878
104
%
$
438,719
$
214,878
104
%
Income (loss) before income
taxes
137,546
(4,204
)
N/M
137,806
(3,215
)
N/M
Provision (benefit) for income taxes
37,701
2,260
1,568
%
38,836
1,608
2,315
%
Net income (loss)
99,845
(6,464
)
N/M
98,970
(4,823
)
N/M
Net income (loss) attributable to
noncontrolling interests
10,446
(804
)
N/M
—
—
N/M
Net income (loss) attributable to Moelis
& Company
$
89,399
$
(5,660
)
N/M
$
98,970
$
(4,823
)
N/M
Diluted earnings (loss) per share
$
1.15
$
(0.08
)
N/M
$
1.18
$
(0.06
)
N/M
N/M = not meaningful
* See Appendix for a reconciliation of
GAAP to Adjusted (non-GAAP)
GAAP
Adjusted (non-GAAP)*
Year Ended December
31,
($ in thousands except per share
data)
2024
2023
Variance
2024
2023
Variance
Revenues
$
1,194,545
$
854,748
40
%
$
1,201,520
$
860,085
40
%
Income (loss) before income
taxes
196,012
(29,147
)
N/M
196,649
(17,233
)
N/M
Provision (benefit) for income taxes
44,521
(1,631
)
N/M
46,247
(2,282
)
N/M
Net income (loss)
151,491
(27,516
)
N/M
150,402
(14,951
)
N/M
Net income (loss) attributable to
noncontrolling interests
15,471
(2,816
)
N/M
—
—
N/M
Net income (loss) attributable to Moelis
& Company
$
136,020
$
(24,700
)
N/M
$
150,402
$
(14,951
)
N/M
Diluted earnings (loss) per share
$
1.78
$
(0.36
)
N/M
$
1.82
$
(0.20
)
N/M
N/M = not meaningful
* See Appendix for a reconciliation of
GAAP to Adjusted (non-GAAP)
Revenues
We earned revenues of $438.7 million in the fourth quarter of
2024, as compared with $214.9 million in the prior year period,
representing an increase of 104%. The increase in fourth quarter
revenues is attributable to an increase in average fees earned per
completed transaction across all products, with particular strength
in M&A, as compared with the prior year period.
For the year ended December 31, 2024, we earned GAAP revenues of
$1,194.5 million, as compared with $854.7 million in the prior
year. On an Adjusted basis, we earned revenues of $1,201.5 million
in full year 2024, as compared with $860.1 million in the prior
year, representing an increase of 40%. The increase in revenues in
full year 2024 is attributable to an increase in transaction
completions across all products.
We continue to execute on our strategy of organic growth, and in
early 2025 we promoted 12 advisory professionals to Managing
Director and hired a Global Head of Private Funds Advisory who will
join the Firm in the near term. As of the date of this release, we
have 169 Managing Directors on our platform.
Expenses
The following tables set forth information relating to the
Firm’s operating expenses.
GAAP
Adjusted (non-GAAP)*
Three Months Ended December
31,
($ in thousands)
2024
2023
Variance
2024
2023
Variance
Expenses:
Compensation and benefits
$
257,145
$
178,485
44
%
$
256,433
$
175,636
46
%
% of revenues
58.6
%
83.1
%
58.5
%
81.7
%
Non-compensation expenses
$
50,063
$
45,742
9
%
$
50,063
$
44,593
12
%
% of revenues
11.4
%
21.3
%
11.4
%
20.8
%
Total operating expenses
$
307,208
$
224,227
37
%
$
306,496
$
220,229
39
%
% of revenues
70.0
%
104.4
%
69.9
%
102.5
%
* See Appendix for a reconciliation of
GAAP to Adjusted (non-GAAP)
GAAP
Adjusted (non-GAAP)*
Year Ended December
31,
($ in thousands)
2024
2023
Variance
2024
2023
Variance
Expenses:
Compensation and benefits
$
830,151
$
714,749
16
%
$
829,045
$
711,158
17
%
% of revenues
69.5
%
83.6
%
69.0
%
82.7
%
Non-compensation expenses
$
191,449
$
180,351
6
%
$
191,449
$
178,782
7
%
% of revenues
16.0
%
21.1
%
15.9
%
20.8
%
Total operating expenses
$
1,021,600
$
895,100
14
%
$
1,020,494
$
889,940
15
%
% of revenues
85.5
%
104.7
%
84.9
%
103.5
%
* See Appendix for a reconciliation of
GAAP to Adjusted (non-GAAP)
Total operating expenses on a GAAP basis were $307.2 million for
the fourth quarter of 2024 and $1,021.6 million for the year ended
December 31, 2024. On an Adjusted basis, operating expenses were
$306.5 million for the fourth quarter of 2024, as compared with
$220.2 million in the prior year period, and $1,020.5 million for
the full year, as compared with $889.9 million in the prior year.
The increase in operating expenses in the fourth quarter and full
year 2024 is primarily attributable to increased compensation and
benefits expenses as compared with the prior year periods.
Compensation and benefits expenses on a GAAP basis were $257.1
million for the fourth quarter of 2024 and $830.2 million for the
year ended December 31, 2024. On an Adjusted basis, compensation
and benefits expenses were $256.4 million for the fourth quarter of
2024, as compared with $175.6 million in the prior year period, and
$829.0 million for the full year, as compared with $711.2 million
in the prior year. The increase in Adjusted compensation and
benefits expenses in the fourth quarter and full year 2024 is
attributable to a higher bonus expense accrual, as a result of
higher revenues earned, as compared with the prior year
periods.
Non-compensation expenses on a GAAP basis were $50.1 million for
the fourth quarter of 2024 and $191.4 million for the year ended
December 31, 2024. On an Adjusted basis, non-compensation expenses
for the fourth quarter of 2024 were $50.1 million, as compared with
$44.6 million in the prior year period. The increase in
non-compensation expenses during the fourth quarter of 2024 is
primarily attributable to increased deal-related travel and
entertainment expenses. For full year 2024, Adjusted
non-compensation expenses were $191.4 million, as compared with
$178.8 million in the prior year. The increase in Adjusted
non-compensation expenses for full year 2024 is broad-based and
related to the expansion of our business during the year.
Other Income (Expenses)
GAAP
Adjusted (non-GAAP)*
Three Months Ended December
31,
($ in thousands)
2024
2023
Variance
2024
2023
Variance
Other income (expenses)
$
6,035
$
5,145
17
%
$
5,583
$
2,136
161
%
N/M = not meaningful
* See Appendix for a reconciliation of
GAAP to Adjusted (non-GAAP)
GAAP
Adjusted (non-GAAP)*
Year Ended December
31,
($ in thousands)
2024
2023
Variance
2024
2023
Variance
Other income (expenses)
$
23,067
$
11,205
106
%
$
15,623
$
12,622
24
%
N/M = not meaningful
* See Appendix for a reconciliation of
GAAP to Adjusted (non-GAAP)
Other income (expenses) on a GAAP basis was income of $6.0
million for the fourth quarter of 2024 and $23.1 million for the
year ended December 31, 2024. On an Adjusted basis, other income
was $5.6 million for the fourth quarter of 2024, as compared with
$2.1 million in the prior year period, and $15.6 million for the
full year, as compared with $12.6 million in the prior year. For
full year 2024, we recorded a gain of $7.0 million related to the
sale of 5.0 million shares of our investment in MA Financial Group
Limited during the third quarter of 2024. The gain of $7.0 million
is included within Adjusted revenues and the adjustment did not
impact our GAAP or Adjusted earnings per share.
Provision for Income Taxes
The corporate partner (Moelis & Company) currently owns 92%
of the operating partnership (Moelis & Company Group LP) and is
subject to corporate U.S. federal and state income tax on its
allocable share of earnings. The remaining 8% of activity is
subject to certain state, local and foreign income taxes (including
New York City Unincorporated Business Tax), which is accounted for
at the partner level through the noncontrolling interests. For
Adjusted purposes, we have assumed that 100% of the Firm’s fourth
quarter and full year 2024 operating results were taxed at our
corporate effective tax rate. Together with the excess tax benefit
related to the delivery of equity-based compensation of $0.4
million and $13.0 million for the fourth quarter and full year,
respectively, and the impact of certain non-deductible expenses
incurred in the ordinary course of business, our net tax expense
was $38.8 million for the fourth quarter and $46.2 million for the
full year.
Capital Management and Balance Sheet
Moelis & Company continues to maintain a strong financial
position, and as of December 31, 2024, we held cash and liquid
investments of $560.4 million and had no debt or goodwill on our
balance sheet.
The Board of Directors of Moelis & Company declared a
regular quarterly dividend of $0.65 per share, representing an
increase of 8% from the prior quarter. The $0.65 per share will be
paid on March 27, 2025 to common stockholders of record on February
18, 2025.
Earnings Call
We will host a conference call beginning at 5:00pm ET on
Wednesday, February 5, 2025, accessible via telephone and the
internet. Ken Moelis, Chairman and Chief Executive Officer, and Joe
Simon, Chief Financial Officer, will review our fourth quarter and
full year 2024 financial results. Following the review, there will
be a question and answer session.
Investors and analysts may participate in the live conference
call by dialing 1-888-300-4150 (domestic) or 1-646-970-1530
(international) and using access code 8014191. Please dial in 15
minutes before the conference call begins. The conference call will
also be accessible as a listen-only audio webcast through the
Investor Relations section of the Moelis & Company website at
www.moelis.com.
For those unable to listen to the live broadcast, a replay of
the call will be available for one month via telephone starting
approximately one hour after the live call ends. The replay can be
accessed at 1-800-770-2030 (domestic) or 1-609-800-9909
(international); the conference number is 8014191.
About Moelis &
Company
Moelis & Company is a leading global independent investment
bank that provides innovative strategic advice and solutions to a
diverse client base, including corporations, governments and
financial sponsors. The Firm assists its clients in achieving their
strategic goals by offering comprehensive integrated financial
advisory services across all major industry sectors. Moelis &
Company’s experienced professionals advise clients on their most
critical decisions, including mergers and acquisitions,
recapitalizations and restructurings, capital markets transactions,
private fund raisings and secondary transactions and other
corporate finance matters. The Firm serves its clients from 23
locations in North and South America, Europe, the Middle East, Asia
and Australia. For further information, please visit:
www.moelis.com.
Forward-Looking
Statements
This press release contains forward-looking statements, which
reflect the Firm’s current views with respect to, among other
things, its operations and financial performance. You can identify
these forward-looking statements by the use of words such as
“outlook,” “believes,” “expects,” “potential,” “continues,” “may,”
“will,” “should,” “seeks,” “target,” “approximately,” “predicts,”
“intends,” “plans,” “estimates,” “anticipates” or the negative
version of these words or other comparable words. Such
forward-looking statements are based on certain assumptions and
estimates and subject to various risks and uncertainties.
Accordingly, there are or will be important factors that could
cause actual outcomes or results to differ materially from those
indicated in these statements. We believe these factors include,
but are not limited to, those described under "Risk Factors"
discussed in our Annual Report on Form 10-K for the year ended
December 31, 2023, subsequent reports filed on Form 10-Q and our
other filings with the SEC. These factors should not be construed
as exhaustive and should be read in conjunction with the other
cautionary statements that are included in this release. In
addition, new risks and uncertainties emerge from time to time, and
it is not possible for us to predict all risks and uncertainties,
nor can we assess the impact of all factors on our business or the
extent to which any factor, or combination of factors, may cause
actual results to differ materially from those contained in any
forward-looking statements. Accordingly, you should not rely upon
forward-looking statements as a prediction of actual results. The
Firm undertakes no obligation to publicly update or review any
forward-looking statement, whether as a result of new information,
future developments or otherwise.
Non-GAAP Financial
Measures
The Company prepares its consolidated financial statements using
accounting principles generally accepted in the United States
(GAAP). From time to time, the Company may disclose certain
“non-GAAP financial measures” in the course of its earnings
releases, earnings conference calls, financial presentations and
otherwise. The Securities and Exchange Commission defines a
“non-GAAP financial measure” as a numerical measure of historical
or future financial performance, financial position, or cash flows
that is subject to adjustments that effectively exclude, or include
amounts from the most directly comparable measure calculated and
presented in accordance with GAAP. Non-GAAP financial measures
disclosed by the Company are provided as additional information to
analysts, investors and other stakeholders in order to provide them
with greater transparency about, or an alternative method for
assessing our financial condition, operating results, or capital
adequacy. Adjusted results are a non-GAAP financial measure which
provide additional information on management’s view of operating
results. These measures are not in accordance with, or a substitute
for GAAP, and may be different from or inconsistent with non-GAAP
financial measures used by other companies. Whenever we refer to a
non-GAAP financial measure, we will also generally define it or
present the most directly comparable financial measure calculated
and presented in accordance with GAAP, along with a reconciliation
of the differences between the non-GAAP financial measure we
reference and such comparable GAAP financial measure.
The Company’s Adjusted revenues includes amounts reflected
within other income (expenses) which are considered the equivalent
of revenues for compensation. Such adjustments may include gains on
founder investments where our employees and the Moelis advisory
platform contributed meaningfully to the value creation; or the
mark-to-market impact of equity instruments held by the Company
that were originally received as payment for our banking services
and included in revenues. We believe these adjustments are useful
to allow comparability of period-to-period operating performance
and compensation levels.
The Company’s Adjusted compensation and benefits expenses may
include adjustments reflected within other income (expenses)
associated with compensation awards forfeited or returned to the
Company by former employees. Management views the credits
associated with such forfeitures as an offset to compensation and
benefits expenses since the Firm will utilize the forfeited
economics to recruit and or retain talent. We believe the netted
presentation of forfeiture credits and compensation expenses is
useful to allow comparability of period-to-period operating
performance.
The Company’s Adjusted non-compensation expenses and other
income (expenses) may exclude certain one-time items that reduce
the comparability of our operating performance as well as the
amounts related to revenues and compensation and benefits expenses
discussed above and adjustments to our provision for income taxes
discussed below. Such adjustments increase the comparability of our
financial performance across reporting periods and versus our
peers.
The Company’s Adjusted provision (benefit) for income taxes is
adjusted to illustrate the result as if 100% of the Firm’s income
is being taxed at our corporate effective tax rates for the periods
presented. Adjusted provision (benefit) for income taxes
periodically includes the tax impact related to the settlement of
share-based awards, the reclassification of TRA liability
adjustments, or adjustments to our deferred tax assets and
liabilities that occur in connection with new tax legislation. Such
adjustments increase the comparability of our financial performance
across reporting periods and versus our peers.
The Company’s Adjusted basic and diluted shares of Class A
common stock outstanding is presented for each period as if all
outstanding Class A partnership units have been exchanged into
Class A common stock. The Adjusted presentation helps analysts,
investors, and other stakeholders understand the effect of the
Firm’s ownership structure on its results, including the impact of
all the Firm’s income becoming subject to corporate-level tax.
Appendix
GAAP Consolidated Statement of Operations (Unaudited)
Reconciliation of GAAP to Adjusted (non-GAAP) Financial
Information (Unaudited)
Moelis & Company
GAAP Consolidated Statement of
Operations
Unaudited
(dollars in thousands, except
for share and per share data)
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Revenues
$
438,719
$
214,878
$
1,194,545
$
854,748
Expenses
Compensation and benefits
257,145
178,485
830,151
714,749
Occupancy
8,337
8,721
29,908
28,608
Professional fees
6,485
7,418
27,056
32,796
Communication, technology and information
services
13,465
12,220
50,573
45,978
Travel and related expenses
10,799
8,430
40,054
37,005
Depreciation and amortization
2,833
2,294
10,444
8,317
Other expenses
8,144
6,659
33,414
27,647
Total Expenses
307,208
224,227
1,021,600
895,100
Operating income (loss)
131,511
(9,349)
172,945
(40,352)
Other income (expenses)
6,035
5,145
23,067
11,205
Income (loss) before income
taxes
137,546
(4,204)
196,012
(29,147)
Provision (benefit) for income taxes
37,701
2,260
44,521
(1,631)
Net income (loss)
99,845
(6,464)
151,491
(27,516)
Net income (loss) attributable to
noncontrolling interests
10,446
(804)
15,471
(2,816)
Net income (loss) attributable to Moelis
& Company
$
89,399
$
(5,660)
$
136,020
$
(24,700)
Weighted-average shares of Class A common
stock outstanding
Basic
72,467,399
68,880,740
71,876,838
68,501,018
Diluted
77,734,437
68,880,740
76,611,948
68,501,018
Net income (loss) attributable to holders
of shares of Class A common stock per share
Basic
$
1.23
$
(0.08)
$
1.89
$
(0.36)
Diluted
$
1.15
$
(0.08)
$
1.78
$
(0.36)
Moelis & Company
Reconciliation of GAAP to
Adjusted (non-GAAP) Financial Information
Unaudited
(dollars in thousands, except
share and per share data)
Three Months Ended December
31, 2024
Adjusted items
GAAP
Adjustments
Adjusted (non-GAAP)
Revenues
$
438,719
$
—
$
438,719
Compensation and benefits
257,145
(712
)
(a)
256,433
Other income (expenses)
6,035
(452
)
(a)(b)
5,583
Income (loss) before income taxes
137,546
260
137,806
Provision (benefit) for income taxes
37,701
1,135
(b)(c)
38,836
Net income (loss)
99,845
(875
)
98,970
Net income (loss) attributable to
noncontrolling interests
10,446
(10,446
)
(d)
—
Net income (loss) attributable to Moelis
& Company
$
89,399
$
9,571
$
98,970
Weighted-average shares of Class A common
stock outstanding
Basic
72,467,399
6,096,785
(d)
78,564,184
Diluted
77,734,437
6,096,785
(d)
83,831,222
Net income (loss) attributable to holders
of shares of Class A common stock per share
Basic
$
1.23
$
1.26
Diluted
$
1.15
$
1.18
(a)
Reflects a reclassification of $0.7
million of other income (expenses) to compensation and benefits
associated with the forfeiture or return of compensation by former
employees.
(b)
Tax Receivable Agreement liability related
adjustments are made to other income (expenses) for GAAP purposes.
The adjustment of $0.3 million is reclassified to the provision for
income taxes line.
(c)
An adjustment has been made to illustrate
the result as if 100% of the Firm’s income is being taxed at our
corporate effective tax rate for the period stated, together with
the tax benefit related to the settlement of share-based awards of
$0.4 million, we have a net tax expense of $38.8 million. Our
Adjusted tax provision excludes any benefits or costs related to
the adjustment to the step-up in tax basis in Group LP assets and
TRA liabilities in connection with past partnership unit exchanges;
such adjustment for this period was a net expense of $0.3 million,
which is not included in the corporate tax provision for the period
presented.
(d)
Assumes all outstanding Class A
partnership units have been exchanged into Class A common
stock.
Moelis & Company
Reconciliation of GAAP to
Adjusted (non-GAAP) Financial Information
Unaudited
(dollars in thousands, except
share and per share data)
Three Months Ended December
31, 2023
Adjusted items
GAAP
Adjustments
Adjusted (non-GAAP)
Revenues
$
214,878
$
—
$
214,878
Compensation and benefits
178,485
(2,849
)
(a)
175,636
Non-compensation expenses
45,742
(1,149
)
(b)
44,593
Other income (expenses)
5,145
(3,009
)
(a)(b)(c)
2,136
Income (loss) before income taxes
(4,204
)
989
(3,215
)
Provision (benefit) for income taxes
2,260
(652
)
(c)(d)
1,608
Net income (loss)
(6,464
)
1,641
(4,823
)
Net income (loss) attributable to
noncontrolling interests
(804
)
804
(e)
—
Net income (loss) attributable to Moelis
& Company
$
(5,660
)
$
837
$
(4,823
)
Weighted-average shares of Class A common
stock outstanding
Basic
68,880,740
6,286,001
(e)
75,166,741
Diluted
68,880,740
6,286,001
(e)
75,166,741
Net income (loss) attributable to holders
of shares of Class A common stock per share
Basic
$
(0.08
)
$
(0.06
)
Diluted
$
(0.08
)
$
(0.06
)
(a)
Reflects a reclassification of $2.8
million of other income to compensation and benefits expense
associated with the enforcement of non-compete provisions.
(b)
Reflects adjustments of $1.7 million
related to asset impairments associated with the Company's exit
from a duplicate U.S. office location.
(c)
Tax Receivable Agreement liability related
adjustments are made to other income (expenses) for GAAP purposes.
The adjustment of $0.7 million is reclassified to the provision for
income taxes line.
(d)
An adjustment has been made to illustrate
the result as if 100% of the Firm’s income is being taxed at our
corporate effective tax rate for the period stated. Our Adjusted
tax provision excludes any benefits or costs related to the
adjustment to the step-up in tax basis in Group LP assets and TRA
liabilities in connection with past partnership unit exchanges;
such adjustment for this period was a net expense of $0.1 million,
which is not included in the corporate tax provision for the period
presented.
(e)
Assumes all outstanding Class A
partnership units have been exchanged into Class A common
stock.
Moelis & Company
Reconciliation of GAAP to
Adjusted (non-GAAP) Financial Information
Unaudited
(dollars in thousands, except
share and per share data)
Year Ended December 31,
2024
Adjusted items
GAAP
Adjustments
Adjusted (non-GAAP)
Revenues
$
1,194,545
$
6,975
(a)
$
1,201,520
Compensation and benefits
830,151
(1,106)
(b)
829,045
Other income (expenses)
23,067
(7,444)
(a)(b)(c)
15,623
Income (loss) before income taxes
196,012
637
196,649
Provision (benefit) for income taxes
44,521
1,726
(c)(d)
46,247
Net income (loss)
151,491
(1,089)
150,402
Net income (loss) attributable to
noncontrolling interests
15,471
(15,471)
(e)
—
Net income (loss) attributable to Moelis
& Company
$
136,020
$
14,382
$
150,402
Weighted-average shares of Class A common
stock outstanding
Basic
71,876,838
6,098,730
(e)
77,975,568
Diluted
76,611,948
6,098,730
(e)
82,710,678
Net income (loss) attributable to holders
of shares of Class A common stock per share
Basic
$
1.89
$
1.93
Diluted
$
1.78
$
1.82
(a)
Reflects a reclassification of $7.0
million of other income to revenues related to a gain associated
with the Firm's sale of 5.0 million shares of MA Financial Group
Limited.
(b)
Reflects a reclassification of $1.1
million of other income (expenses) to compensation and benefits
associated with the forfeiture or return of compensation by former
employees.
(c)
Tax Receivable Agreement liability related
adjustments are made to other income (expenses) for GAAP purposes.
The adjustment of $0.6 million is reclassified to the provision for
income taxes line.
(d)
An adjustment has been made to illustrate
the result as if 100% of the Firm’s income is being taxed at our
corporate effective tax rate for the period stated, together with
the tax benefit related to the settlement of share-based awards of
$13.0 million, we have a net tax expense of $46.2 million. Our
Adjusted tax provision excludes any benefits or costs related to
the adjustment to the step-up in tax basis in Group LP assets and
TRA liabilities in connection with past partnership unit exchanges;
such adjustment for this period was a net expense of $0.6 million,
which is not included in the corporate tax provision for the period
presented.
(e)
Assumes all outstanding Class A
partnership units have been exchanged into Class A common
stock.
Moelis & Company
Reconciliation of GAAP to
Adjusted (non-GAAP) Financial Information
Unaudited
(dollars in thousands, except
share and per share data)
Year Ended December 31,
2023
Adjusted items
GAAP
Adjustments
Adjusted (non-GAAP)
Revenues
$
854,748
$
5,337
(a)
$
860,085
Compensation and benefits
714,749
(3,591
)
(b)
711,158
Non-compensation expenses
180,351
(1,569
)
(c)(d)
178,782
Other income (expenses)
11,205
1,417
(a)(b)(c)(d)(e)
12,622
Income (loss) before income taxes
(29,147
)
11,914
(17,233
)
Provision (benefit) for income taxes
(1,631
)
(651
)
(e)(f)
(2,282
)
Net income (loss)
(27,516
)
12,565
(14,951
)
Net income (loss) attributable to
noncontrolling interests
(2,816
)
2,816
(g)
—
Net income (loss) attributable to Moelis
& Company
$
(24,700
)
$
9,749
$
(14,951
)
Weighted-average shares of Class A common
stock outstanding
Basic
68,501,018
6,238,470
(g)
74,739,488
Diluted
68,501,018
6,238,470
(g)
74,739,488
Net income (loss) attributable to holders
of shares of Class A common stock per share
Basic
$
(0.36
)
$
(0.20
)
Diluted
$
(0.36
)
$
(0.20
)
(a)
Reflects a reclassification of $5.3
million of other income to revenues related to shares received as
partial payment for advisory services provided on certain
transactions.
(b)
Reflects a reclassification of $3.6
million of other income to compensation and benefits expense
associated with the enforcement of non-compete provisions.
(c)
Reflects adjustments of $10.4 million for
expenses resulting from a regulatory settlement with the SEC
relating to recordkeeping of business communications on messaging
applications.
(d)
Reflects adjustments of $1.7 million
related to asset impairments associated with the Company's exit
from a duplicate U.S. office location.
(e)
Tax Receivable Agreement liability related
adjustments are made to other income (expenses) for GAAP purposes.
The adjustment of $0.2 million is reclassified to the provision for
income taxes line.
(f)
An adjustment has been made to illustrate
the result as if 100% of the Firm’s income is being taxed at our
corporate effective tax rate for the period stated, together with
the tax benefit related to the settlement of share-based awards of
$3.9 million, we have a net tax benefit of $2.3 million. Our
Adjusted tax provision excludes any benefits or costs related to
the adjustment to the step-up in tax basis in Group LP assets and
TRA liabilities in connection with the past partnership unit
exchanges; such adjustment for this period was a net expense of
$0.6 million, which is not included in the corporate tax provision
for the period presented.
(g)
Assumes all outstanding Class A
partnership units have been exchanged into Class A common
stock.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250205497922/en/
Investor Contact: Matt Tsukroff Moelis & Company t: +
1 212 883 3800 m: +1 917 526 2340 matthew.tsukroff@moelis.com
Media Contact: Melissa Chiles Moelis & Company t: + 1
212 883 3583 press@moelis.com
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