HLI - Earnings call transcript Q2 2018

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Operator

Good day, ladies and gentlemen and thank you for standing by. Welcome to the Houlihan Lokey’s Second Quarter Fiscal 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. Please note this conference call is being recorded today, October 24, 2017. turn Counsel. over now Houlihan Christopher will General Lokey’s I the to call Crain, And ahead. go Please

Christopher Crain

Thank you, XXXX hello Lokey section. to can operator and found website our have everyone be the first access at should www.hl.com quarter Investor the fiscal on earnings in which everyone. release, Houlihan By Relations now,

anticipate, exercise numerous use are as performance. and from begin we should actual discussion we which will not expect, guarantees forward-looking financial the include and remarks, for impact SEC These statements that usually today forward-looking filed investors the recent them. you relying to quarter We of of are and remind statements, caution such filings to materially Before for XX, other our need all when formal therefore interpreting similar expect or XXXX phrases uncertainties operating encourage discussion on September risks you cause of detailed the of are risks XX-Q when our refer We identified our by could differ we is future SEC. statements. it to will, regulatory could including future our Form a ended subject that to the everyone to more results should results condition. words with what filings, the and review These that

that, directly A non-GAAP measures these discuss or financial accordance believe to for we isolation is reconciliation GAAP. which we financial substitute in can in measures, considered call, GAAP most measures These our measures prepared performance. Company’s our available financial should evaluating a of in the useful today’s and call the will our some not with comparable During as results in hl.com be will have be They Alley, then the the provide and to company. will open call With Lindsey presentation today Officer Chief will opening Lokey’s Houlihan website. over turn to release we I remarks the we Hosting Chief Officer Financial the questions. the Scott. Executive investor of earnings Scott Beiser, call on and

Scott Beiser

everyone Hello quarter Christopher. XXXX second you welcome earnings and our to year Thank fiscal call.

are a continuation We earnings results to of growth. quarter year-over-year and second strong pleased revenue and report

history. Our the and last quarters on is $XXX quarter the earnings years. Once our initiatives from With period million in again the quarter We quarter three second when we year. executing over strategic various for result firm’s over pursued in same quarterly year. all a compared the of per financial $X.XX, increases have last strongest share last from few were up had quarter, last adjusted same earnings, XX% this to in several year business to last performance the in of $X.XX the XX% segments reported up revenues respect revenues the

$X.XX, for share XXXX, months For were the XX, per the earnings year. ended six of XX% half adjusted from $X.XX last fiscal first September up

regarding had changes Our and by of timing of quarter continued all the in tax early closing. has continued or U.S. year. deal in the strong earnings same expense lower other activity on an compared record to dialogue slightly as flow and last economies improvement rates, revenues, expenses, our non-compensation scale income impact performance code and was Today, driven not tax the for

product half in and the any coming in timing of changes number business our However, the quarters the closings and business of what progress strength on first it is of on either three negatively the in unclear policy, positively emphasize made if is might tax impact lines. or it in experienced thereafter. deal have our our of trends We’ve a model year the in

that Corporate relationships both joint industry that Corporate revenues. higher penetration the and restructurings and Also experience driven financial groups. to significantly, last have our and enhanced oil sector continued collaboration capital Finance have yield started execution gas with our seen and business by in wave Finance We during markets our the market and grow restructuring we business the of developed increased

We the approach integrated continue high us advantage continue product of to promote We allow advice an being hallmark superior and to geographic business competitive our gives to believe culture. a our unique cross with retention. that client provide line cross and will employee us very collaboration

I’ll Corporate the for year-over-year. some comments revenues specific Now of segments. XX% generated $XXX our business make up million about three each quarter, Finance of

size, as quarter transactions. in number Our increase an largely driven increase the average was the growth an the of well for in closed by as fee

in months. continued these accomplished has over have a but XX slightly the in decline activity last results stable to relatively one that We M&A environment

for We years. continue over several the supporting We and market we reflecting MDs developing have and on remain we trends per in have XX% existing latest that same XX believe the our our experiencing revenues MD growing, last seen focused the share to increase mid-cap is transactions by been months.

adds In banker Finance Corporate our year-over-year. revenues restructuring strong successful platform. addition, $XX teams XX% management continue hiring we to talented the pursuing generated million in of and which and for MDs acquisitions, up to Financial quarter, be

financial our continued XXXX in While commentary not changed. has growth our full quarter, year revenue in restructuring fiscal we this performance regarding show year

last to continue gas driven several quarters. revenues have through oil variety our We projects over work and a related of that the

revenues fiscal oil to restructuring a second Consequently offset and our is completion of are While this be fully XXXX expected of fiscal the engagements. half seeing pickup other activity, our retail and and expected not half our of for restructuring gas to financial XXXX. second below industries are in the

ahead, substantially continual have expect benefit and We Considering activity, but prospects the experienced in Financial often recent loans and opportunities performances, intermediate to high in event increase the in We Transaction marketplace, quarter. conversations build-up and However, events, engagements, encouraging. property fee a will intellectual was recent that and revenue the the the and opinion the period $XX up revenues decrease generated to business new portfolio experienced per transaction to we is quarter, add and which same off leverage of yield XX% long-term experienced the start. and new pitch see not more Services last in us up engagements. of years. in a Advisory looking to bonds year these million growth subsequent we client our for increase versus enquiries do but advisory look during a strong valuation, we fee in and work year-over-year. client services can average lead

that fast strong continue grown have already in us have MD an We to wide allow our senior headcount for and to or add should our we for these development as we remain believe capabilities. talent time last well-positioned revenue new platform. of growth in this in our XX%, year by search candidates we our either disciplined pipeline adding experience to existing strengthening bench deeper We Firm future new business. are talent and FAS develop employees since on capabilities

added our This the MDs, venture. Australian from joint were consolidation came we quarter, external six hires eight two of in and primarily Finance Corporate

left MDs firm, employee six which were quarter, and planned believe the of we to During our our base of improve. senior departure. Overall, depth continues most strength that

acquisition front, joint remaining venture in the in the previously purchased did July, we late that not On interest we own. our Australian

in Director and and in financing about a opportunities that August. We office in Managing third prospects added the on markets focused fact Australia capital are in excited

playing the with acquisition internationally also our opportunities, success recent continue in pleased an We part States business. with are results. and In United of maintain of financial acquisitions the continue number important we to attractive we to closing, both and as in dialogue our a view quarter’s

be remain see regardless And we in. can, we economic we we of that signs While a and we one turn change to that eminent are successful market that in no the will believe building call of sustaining directions, business, on focused or the I’ll the political over with best Lindsey. business environment

Lindsey Alley

in on in year. higher favorable Corporate average same transaction the half declining fee of the closings. second more the XX% year. revenues is our the was prior In last revenues strong you deals first to half Finance, highlighting XX however, than from another Finance, quarter $XXX that XX Thank timing transactions increase had an the We last year. the XX% around was results million average the closed for above Corporate backdrop We Finance several of middle than market quarter, Scott. record period environment. fees stable, in for quarter worth a first M&A closed include compared very it same Corporate This against were transaction but quarter, And and

the While average the deals to compared transactions XX increase the year. that the will we seasonality prior and was that don’t Corporate quarter expect same the Finance the follow same last past. second quarter, same year, the with on XX% million higher, we XX second compared transaction half for to from the of year. quarter expect half our business the last in positive fee transactions closed period an in were closed Financial slightly continue our in We $XX existed momentum, our restructuring revenues in necessarily has

million by oil We have balance continue year. Services, with based in quarter advisory XX% increase In of year-to-date, across XX% restructuring opinions, portfolio the growth services. for and activity the $XX expected Financial to along transaction more and from growth through the to was verticals. revenues were broad in revenues sector see quarter, than same than prior evaluations a last fee expect more see the compared gas increase restructuring to – and events, industry by the and of continued related in we driven seen revenue decline decline year. Revenue revenue year, we transaction that several In Advisory an our

our addition, property new In the intellectual quarter. revenues contributed to for business

The expenses for to the in for the the year. last versus to compensation primarily $XXX the adjusted increase revenues same was for $XXX due were compensation expenses, expenses period in adjusted our quarter. million million quarter, Turning second increase

had awarded connection second IPO grants $X.X to year. grants adjustment our we with of expect the our adjusted were last of XXXX, related ratio quarter an that this of quarter we issued pre-IPO in to of fiscal compared resulted at XXXX, investing continue the XXXX. until in for second for tranche last fiscal second adjustment For quarter and million of compensation the with in XX% vest This April XX.X% an

an QX XXX adjusted year. points compensation compensation that basis for of points the fiscal experienced consistent XXX basis this XX% our compensation and points continue be our XXX We adjusted adjusted pre-IPO in difference target this is and ratio awarded with we XX% basis than QX between ratio, and lower between of to both should awarded GAAP grants and ratio

our item, a revenues, result cash lower had quarter expense, interest of $XX non-competition second the our higher in no were adjusted a interest for second this quarter on XX.X% and balances. and million income and to Related expenses as line expenses balances last slight other lower year. non-compensation debt adjustments gain of revenues of in quarter. income we experienced million XX.X% the $XX or expenses versus adjusted Our to or We

consolidate now its As Scott mentioned, stake outstanding the in July XXXX, Australia results. acquired we remaining venture we joint in and

for venture out result, account adjusted a the had quarter associated related the in We the with other other income income as only a The the this the in we small and expense Australian and As transaction. acquisition, losses the expenses is with gain one no to of in item. longer the Australian joint by and gains and quarter adjustment line losses partially transaction. offset legal result associated that time entity in a expense occurred

September $XX $XXX sheet, and and million. XXXX Turning of unrestricted of securities, million debt cash of to and as balance equivalents had the investment we XX,

a in the as quarterly bonuses average at paid share price the invested questions. dividend operator, In to cash year significant program. relating payment of for a and we line awarded of As we our part have quarter open $XX.XX for fiscal our reminder share bonus the repurchasing million, quarter an can per we $X.X that, repurchase shares second With XXXX. deferred XXX,XXX third

Operator

Devin go Please Instructions] Ryan [Operator with from JMP you. time ahead. Securities. At Thank we'll this hear

Devin Ryan

Hey great, How you Scot, good evening guys? are Lindsey.

Scott Beiser

Hey Devin.

Devin Ryan

less quarter maybe I sounds off And I'm some here can Maybe starting nuanced, like what's markets. strong heard a Finance, closings. you slowing And if the obviously but in that's active, then in momentum energy. additional any perspective I then sectors just think good any curious middle some Corporate mention you becoming around and within the And maybe are And that? coming of driving particular pace of it kind it a that seeing are more sounded closing mandates you like quarter? in that after kind of or new

Scott Beiser

or and two we've therefore the and on situations. the with flat, gas been is that all been which across for year, sector gaining been slight continually exclusively announced Yes in transactions going the oil transactions industries, mean focused several all we that seen note the maybe comment on in years that's a what number of And we've market spite get comments still we share. closing we really we has in M&A the I quarters. almost it’s that industries see globally decline. a did think But relatively of ago across in And coming really that's is of number distressed working

point turnaround between any really this necessarily unique just Now pretty this and that different are but we healthy they're all some industry how particular groups outpacing, compared year situations, industry – won't or are working the to also and quarter, we on are good. of have last think, doing in to In last normal performing. I the and year I is industry rotation, groups half

Christopher Crain

last been I four the market meant flat Lokey's comparison was of Devin global has global the mentioned kind slightly important a to performance it's really to our relative And think as to note of down that only quarters. middle M&A M&A to to market the which six relative kind market, over Houlihan

Devin Ryan

Got it.

kind color right it's of point, maybe expenses respect we're pretty and had given start we've into a then XX% at XX% half now of nuance And that's year to year, to with guidance you've the I that the on revenues. relative non-comp know appreciate clearly for that's note. Okay, that we that there. such should started I because a good level we trending about the ratio as a but But better back to think a just look to range how the of strong helpful.

Christopher Crain

that to think so we the the maintain Yes, XX% over kind I of XX% to continue guidance long-term.

half expect the year this year. the to in year an change first of a certainly efficiency We half standpoint. the think meaningfully second seen don't I from of good very we've that

And would range a on it end year's at respect to that end at the expect so of and with this potentially the or even I be below low to non-comp performance basis.

Devin Ryan

maybe one just bigger And picture. great. of last then kind Okay,

initiatives can, Just, anecdotes progress, say some fund? Capital any what anecdotes you expansion growth or like Private maybe Advisory right on maybe are of any on the the now if update I'd international around or around wins or successes the recent and

Christopher Crain

we’re financing working think, And we've we ago, continue thorough see capital United in the the two to international continued with across private it as we've years, somewhat Yes agent. it new be but define added to the companies. substantial And to as what not some we continues a front, globe. to piece the in the I the mid-cap in increases mentioned States, continues acquisitions years did of on add grow predominantly this really or And hirings we just doing. only one markets

may that the year We’re we Europe to probably still to the growth generally United in operate of the they better clearly on and than in the the States. getting kernels in a playing of world the parts think, I United but a other States, feel statistical like improvement States, United the than just of see, with outside but really up coming globe. And more be of we have catch eventually do seen performance has continued over basis, performance outside be the pure U.S. place last

Devin Ryan

Okay, great. Very helpful. Thanks guys.

Christopher Crain

Thanks Devin.

Scott Beiser

Thanks Devin.

Operator

Needham Bank Lynch. of America Michael to move now Merrill We’ll with

Michael Needham

Hey afternoon guys. good

Scott Beiser

Good afternoon Mike.

Michael Needham

Finance the fee average of for first pretty is year fees, some half transaction up the So the meaningfully of per this from year. last Corporate just

is You comparing is want but past just guys touched mean you've I'm deals. know, wondering I bigger I'm a trend the on half just on you it. years indicated I advise to in that the this

Scott Beiser

platform. and we recently bigger years years, one. are we and doubling on trends. every does acquiring size giant be year, year, see deal few to for ramp just it a businesses, think one Point two, it's deals, up take or work when every not but do promoting, either a We do our quarter, will is them three point to each on two especially seem get still or somewhat do hiring, the deals always bigger I each upsize

more size more advice opportunities are allows on reputation we're deal So to provide part to better up of the fees. big us who our that in and us work for the a of is increased get newly while. people the a that's been hired just deals allowing acquired these have or seeing performance of And just catching I brand with and promoted find the and place think and kind increase

Christopher Crain

XX% add we would increases And deal that average thing is increases of the of larger in in sizes. I average meaningfully terms is only would to see – in than typically terms

reiterate year-over-year, increase the time, see we So the to half I you first second our that's the why that's a over relating in tend And kind fees a I average seasonality very terms of measured the had point, Finance But see XX%. sizes but Corporate average of deals. larger comments why good versus half in increase. the our It transaction first not Scott’s was and to of Corporate Finance for big half.

Michael Needham

Okay progress, Finance made share and That reported make it. of growth on you market I gains would guys sense. just at guess lot just like, like got I And maybe look headcount. in a clearly are Corporate your MD

over people, some the think that you've some for have And flattish. of business. or outside acquisitions but I done U.S. two hired been last You it's the the year

the to hiring share be So are take more to people focused what are you drivers, going or headcount in the can U.S.? you going on continue that

Christopher Crain

would cap I to look can people stop to continue firm bench now that just individuals us it continue always that know promote. for get we and look strength. where culture think foreseeable add the share bring continuing acquired the types now work it's to market to the do how on or we either are as transactions to I grow on sense, execute right some to to will say on from can at the market. as There's on. throughout either not much focus And any or we to to businesses, just people will hired or hire some both that the of continue think continue we we in we business. and people, the acquire where future, don't see find and we’re fit anything But We're to what how we the rotation feeling think can makes right and the right we will really of the hiring

Michael Needham

Okay thanks. coming restructuring feel still does new in inflated last And out? million or does relative one level revenue $XX to Thanks. assignments on the that's

Christopher Crain

that and the the is it seasonal close. and most business, results but seasonal so depending lumpy of can much this volatile, upon restructuring No clearly our transactions business not have size

to comment quarters two. it's us fourth third XXXX quarter hard So for very had our and in a fiscal really two strong on We or particular quarters.

lines. half Our XXXX bigger terms were little than period business time in like I in other to we're size I not many doing first quarters in now oil XXXX. And same and side, a of revenues both seen of were rather the on be we in we're and else quarters recent and different geographically think gas like the getting volume industry of but everything in, had along feels kind the the said calls in well expanding

Michael Needham

Okay thank you.

Operator

Fitzgerald We’ll Goldman now move to Conor with Sachs.

Conor Fitzgerald

afternoon. good Hi

Just bigger using potentially want – just question about how picture a off sheet your with the about think leverage business. bigger balance with and to you kick it

you'd definitely more that You're diversified leverage Do that you that your would tends something your volatile. support revenue to or than think consider some using. your business less of peers, is be

Lindsey Alley

So two there. questions

much at doing we really chosen take capital rest repurchases, of And need, but cash beneficial to we've to that a anticipate we amount than only, high a the more of use look have relatively than any could and hold to said, continue itself unlevered. we our some we've that of take and on pure the little and I foreseeable to do tell a debt follow volatile businesses ours to and less a think a on of a with we consulting it marketplace leverage or of advisory gone appropriate it future the should more we not might balance amount stay which since is is leverage their acquisitions, about any for can component, for business. being on will more kind cetera. similar be shareholders, what marketplace afford That I sheet, business contingency pretty we like public, think, I to will dividends, to of bit the much volatility et talk be continue be we we’ll people to more occasionally not of

Conor Fitzgerald

some to reform like both it tax an going circle you, you and policy forward. And flowing? dialogue of Is your then they nitty-gritty but deals anticipation a your negative terms sounds want back an impact as could Got kind of heats been that positive, of thanks. to hasn't be into around that yet, to up see could impediment very comments the it getting start start I it in really details,

Lindsey Alley

it be, of course it accelerate people or could timings, us we you behavior. policy XX won't that would it we to people's tax want I behavior could and something negative. If we a people's would have word Well, tax kind taught some full like of it. both actually I some a to would it year blueprint is stall told were ago months tomorrow be that people changes slowing, deal deal seen haven't policy And to use in to know, encourage could into new we none we want make on the change potential could said changes the of positive timings, think had which what encourage to of

making could it not people's negative, today here our or it we do look based but just tax changes positive. knows So right saying matter have closings. the for ourselves, be nobody decisions now not on we’re what while like. what I those could would not to our upon read negative our be their Could Don't comes think, positive, tax conversations, business we clearly part shareholders or change tell that policy that policy, they’re could be. be tell that's timing anything it's of because, a but not vernacular know that tell something of clients We're comes impacting new clients, out And and or our that's quite if eventually sitting behavior. will out, be

Conor Fitzgerald

thanks. kind kind tax one following-up of then the how a I there me was some just business community and could past of be mean impact year, thoughts And color, if your that for on that’s reduction small small service M&A in of the all? the you equity of firms of at And we seen for that works the of in businesses tax kind ecosystem that sales small activity? kind over private that part just being curious that the think small from business way do growing broader, we've get I'd a lower helpful rates specifically last for on businesses by a of adapts if

Lindsey Alley

Yes.

it's one in so speculate And difficult any think have to of it I to take going on you're slice this. of to totality. all

when always will our and people it we've that as think be making different for very historically been specific have for because I change afraid it and and I peers like not think, might other decisions. and your would found and net winners you have business. change will of there be, don't I losers, on has for is what advisors, is really good that question have always change But impact good view a our business of we're said, than other

Conor Fitzgerald

taking I it's tough I answer. a Thanks stab for you it. one know And at appreciate a call.

Lindsey Alley

Conor. Okay

Operator

Brennan We will UBS. now move with to Hawken

Brennan Hawken

afternoon. question on guys. financial Good the got a for taking sponsors. I've question Thanks

you all on you of raising fund raising? of they've here a in of ton in lot of So the been partners activity back that for that some any these – critical Have there's here. engagement by recently of some they've change the or a been gotten amount headlines noticed of money

Scott Beiser

been increasing, It's raised lot different is also the for participants. completing more quarters. focusing good for is over funds is business people our be like we allows of want financing, this amount has of five us a help important money that there basis formed quarter is us probably you versus relatively to on continues But have great raised more of into we number not And anything if a clients financial economy, specialties the the go sponsors previous last and And global looking them say funds grow. of of a more driven, and on business. to unique of We're transactions. there amount are evaluation would But very the that in tied sell, large we can it percentage years. the to part but of to more say a get the with money sectors out see couple constant restructuring newly it’s we on to and only our group. to been also it their said the which as continues buyers more potential business pretty are and when have as sales to or Clearly I

Brennan Hawken

up of market, just was naturally in would you you like an a restructuring in Okay. start mandates. energy Finance were that that and market thinking then up. more about implying therefore picking indicated How because I sort recently. think that there's quest pick given your that see though of in the do seen you And you've much Corporate of that think Is resonance that activities you M&A some uptick overall the seemed activity function the that, the here a energy Houlihan-specific you got it to from of [indiscernible] distress weight

Scott Beiser

you sector level you have XX the question done in asked ago, on would someone exclusively almost months distressed investment would was have situation. oil the told were some banking the macro associated Yes and all with gas

we been thing on more healthy. restructuring the the parts working improves, And to will flexibilities on side. the way then on we take side in comment we expertise industry with just and the both. one much might industry made, did or to firm will our with reverse this it's the we healthy estate we've in more same of be over previous starting and occur have an active we this a other ultimately healthy sometimes start as and could and as and might it in expertise go healthy go of well as start can and sometimes distressed where market we internal into in could some transition distressed happening the start on that industry, turn in of both years mix, and our real is done We've of Now it distressed very that in for the the a on as side healthy. telecommunications, retail. It to more distressed It's

a now or of raising yes the restructuring Lokey industry you're gas. the Houlihan for it's starting comment And be some gas in oil above think I and So been years oil and the as the would needs kind also one beyond M&A might have hallmark that capital and just healthy pure to is see that work and yes ago. doing improvements two

Brennan Hawken

gritty here. just nitty last then one Perfect. me And question from

a clarification was on in because the right? or even different When you the unclear comp works in happens guys they're Just me. Do a the MD recorded that little though record on to if have your segment segment. I be mandate the where a employee accrued bit the a revenue working expense, foot to you

Scott Beiser

do. You

Brennan Hawken

Okay, okay.

Scott Beiser

restructuring that of result And a of as larger was you've a seen Finance. in last the transactions two Corporate between and couple where collaboration quarters there

You've the last But, seen the footnotes that correctly. enhanced in couple you yes, quarters. read

Brennan Hawken

right. make Yes, Thanks sure. I yes. much. want very Great that’s to just

Scott Beiser

Brennan. Thanks

Operator

with now move Worthington Morgan. to We’ll J.P. Ken

Ken Worthington

maybe the out greatest questions. good afternoon. resources understand may be could you're better and focusing the And first think you guess taking strategy frame build Okay, East my about us I can maybe Middle you there? the Thanks. Thanks if in possible talk for you if the have opportunity? the businesses help

Scott Beiser

Ken. Sure

financiers do we’ll and local for in both globe. or service for And up have Middle companies few out offices of the up are our But that locally people Eventually well on. both could that there. we've out we're few but work capital business there. also we many providers than done the the And to We’ll transactions buyers there Will sovereign also dozen eventually companies funds would globe. be our the in as an work working situations work London office. out as a both have Dubai, office. So restructuring have moved some local who opened situations, for could office done really across with newest deals the out I we we States two historically no work who ultimately be United across looking in many, do the wealth local different office, other for consider from have various other or staff people in East it’s years, primarily done a

Ken Worthington

restructuring, thank is maybe existing new like And us is slowdown. I in following look Maybe We're it completed an to could to in think prior maybe that related ratio energy clear pretty the the you've frame terms think give calls great in work been like? call you a way pipeline one and get what sense of of of the I the on to hoping work the coming indication that you. relationship of that the the of being slowing. Okay, pace is

Lindsey Alley

versus related gas. oil I'm Well, coming and probably I'd gas the most of disclose to engagements kind the around of in don't specific specifics be year-over-year. expect I specifics. off, to new will double-digits restructuring the to like oil revenues think engagements and I we And that we know but that's terms down would provide

the oil – finance outside than up last of related are as but oil year revenue second do activity gas and business. certainly oil the in restructuring do this that won't fact as activity well, we I higher half in we restructuring It the mitigate alluded to year. in think year expect corporate seeing of revenues. in decreases decline we pick versus and and gas and of our restructuring mentioned second Scott also gas double-digit And related the Scott half versus year expect the

Ken Worthington

and enough there. Okay, then a follow fair up just

Can in couple that like – others, is You’ve but seeing what restructuring? and themes positives you’re pickup times lot or are theme coming you're about some in terms a seeing or the where either subsectors talk elsewhere retail the restructuring of about businesses – in what for in you you restructuring. if increase mentioned a seeing any there's inquiries in

Lindsey Alley

whole a First the reasons variety of best times capital of all have financial I occurs there's unusual of companies think percentage what we there's of that litigation a that in always put worst be during of or of times into wrong the going subset the have to difficulties. – always some have may run false, structure a some problems companies managerial product may

oil gas that pockets some we we and we've in out to which some just dozens and shipbuilding, have So particular say capital as in used is starting countries. followed – effectively more dozens what clearly nothing We the and health are environment industries pure others. provided restructuring commodity other but United work issues I'd retail in experience a think we that of some then unique still almost globe, care and different now in and across industry, do having certain the deals countries seeing sources issues, issues have still issues. of do old or And into Western somewhat to really has mentioned any with different to as subcomponents continue we capital to be States is and Europe tied

issues – say there that's there's cause is than that's trends we and cost lot of what housing in fracking just whether sharing, or other retail. is don't oil I the the of automotive is the cause and A going necessarily think sector technology whether and it's real going it the look B, disruptors So in sharing and there gas call rework some right that and was and we'll specific Amazon whether whether a to issues And it's to stake. would

these evolving I could lot as now months as find a still what no if and that are because the robust plans and be next longer be. years from three be used it's business three the that disruptor what time is new of now technology label to you would that of from that that different disruptors issues all So or might

Ken Worthington

much. Okay, great. Thank you very

Scott Beiser

Ken. Thanks,

Lindsey Alley

Thanks, Ken.

Operator

Harte O'Neill. Jeff with to move now Sandler will We

Jeff Harte

evening quarter. Good guys. Nice

Scott Beiser

Thank you, Jeff.

Jeff Harte

out macroenvironmental closing I'm Europe Leonardo. years we're Can you seeing in that welcome. commentary and your more update be specifically any while us on a little a interested the business and McQueen you're past of couple now would what in bit

Scott Beiser

how in or the are Is seeing we're your question just businesses what quite… or performing those was it economy European

Jeff Harte

comments McQueen after are mean, economy have would but acquired be you for guys the kind more I you that them. specifically how Well, interesting, interested on European Leonardo and outperforming if of I'm you in some

couple you've a years Houlihan that got Now with way of trying to there. things do

Scott Beiser

the has well. Yeah, I think integration gone

could country, retail transaction group think that amount the Leonardo was locations be just United It's and people. That the States, skills in these but have. which side, the transactions side had could efforts England and we new right provided and in of Clearly reasons are really and the don't first with or across clearly opportunities Leonardo it's on always where I than operations. or old had And said pencil can whether people industry longer U.S. pursuing not of you're takes globe work folks everything like their the acquiring both in and perfectly in winning even doing the think a why now and really the I people, hiring promoting, or always you'd what only we work that together I are it think with larger a one efforts McQueen the very of all in the the of that Having now a group they closing terms should out. deals you increased. we for always a food places even the and bring view the that consumer out we seamless across it and it’s handful On of European Europe. locations

think we some to of and that at in that things hired continue acquired you people through improve productivity improvements can additional results, the you continue part still we've to locations it we really look see know when I we'll of there's in Leonardo. think and actually terms but I of most

said have I build business. to things the like continue been we going think So I – And well.

Lindsey Alley

will see comment come couple out one in the in which will will the next I week you weeks. XX-Q, of add or two, this and And a

in in international and the growth our UK. majority slightly our above vast profile as As this our quarter-over-quarter was a revenues quarter in is consistent international business so is or Europe is what firm, of it

you'll that growth us for disclose seeing international are good for financial we when and we see quarter. business the next in So, that results business solid our

Jeff Harte

you. thank Okay,

Operator

Thank you. with We’ll Ann Dai KBW. [Operator now move Instructions] to

Ann Dai

good Hi, my evening. question. taking Thanks for

Scott Beiser

Ann. Hey,

Lindsey Alley

Hey, Ann.

Ann Dai

said to that a half should to just think then about guess with wondering business remarks is quickly. Lindsey I levels from finance continue first positive I start wanted period year? compared momentum. just was the comment or half And and I'm clarify you’d just And prepared I corporate last something or on same second itself? that a Lindsey’s that overall

Lindsey Alley

common the corporate momentum to or around specific results throughout positive the So were finance.

We first doing momentum And comments the my about did weighted to we you half good our then Having heavily of the to said think be that expect this look year the several finance business. corporate business finance more I that been year. to strong in versus over were year for last to the a because strong corporate just in first very have careful half corporate half our years, continue the if finance. back second see has of

very you So imply assumption. historical to second be revenues what results, might half just like it if relative the look a would aggressive

that's that really Ann. my what So were comments geared towards,

Ann Dai

clarification. in little we've just business the guess to some some decline there? appreciate business going I it attrition and a give also in you that been that broadly a the quarter. attrition during around have restructuring; some on handful And leaving just count that over- was bit more been the what's color people MD you guys the seen second in Okay, when My question the over alluded I comes of and we or Could to us address past year why so. on seeing

Lindsey Alley

most area. two add ago. not acquired years something we and or actually We've And just flat maybe we've for meaningful the so gas oil a to been the in that really about We been I in some – the up. And In expertise, thought aren't changes it’s restructuring have promotions. would our lot. other any have part seldom there business, so did slightly MD restructuring MD probably than

retirement small has in people sponsored know percentage but into people, versus but other. occasionally really kinds just you a business anything restructuring units into a here those you couple that’s know of in there, retirement FAS little I'm it's one of I really our – read or other was business looking changes one maybe unit, all maybe movement a maybe just probably one you the net It's departure, think a than one things. of financial one the down think And it – groups I to ago of would get from the are know head of you where we are I was the basis that's one transfer which was sometimes our moved on we part not bit year another counts the but been growing. know or

has ones other minor has basis much and net a changed. clearly The been changes not on

Ann Dai

Okay, great. Thanks.

Lindsey Alley

Sure.

Operator

Beiser And at closing for in this turn time, questions to we further will no I it Scott queue. the you remarks. have back

Scott Beiser

look forward our I wanted and quarter fiscal in our everyone results all third updating quarter to call the second for in discuss to XXXX we when you thank for progress winter. participating our we on

Operator

does Thank participation. today's conference for again all call. you your conclude that And

Houlihan Lokey (HLI) 24 Oct 172018 Q2 Earnings call transcript