HLI - Earnings call transcript Q3 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen and thank you for standing by. Welcome to Houlihan Lokey’s Third Quarter Fiscal 2019 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 that this conference call is being recorded today, January 29, 2019. the to turn now will call Mr. over I Counsel. Crain, Houlihan General Lokey’s Christopher Please go ahead.

Christopher Crain

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

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

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

Scott Beiser

Christopher. welcome and third earnings everyone, you, to quarter fiscal call. XXXX Thank Hello, our

results million, quarter. per our achieved a the XX% to to ended months over up adjusted pleased highest period XX% on report latest revenues share XX XX produced our the last was We for same of $X earnings in $XXX December third over These year. another are of last strong from quarter same quarter This increased We increase revenues $X.XX, quarterly revenues year our ever. billion.

milestone successful the firm. Another in the evolution of

Our results results this and and in strong solid Financial quarter businesses. from Finance our with achieved Corporate Advisory growth revenue Financial Restructuring were

growth we XXXX. business these has completed I businesses. note Advisory stock third quarter, growth associated by would part trade not Corporate that Corporate of highest partial that rates quarter our our Financial corporate market of fiscal Finance issues Brexit, of acquisitions During reported this both revenues macroeconomic uncertainty earnings. and units and To uncertainty the one Finance these shutdown, the year-to-date, history. most in drivers government our the amount policy, volatility in continued exhibited of this or and materially In in driven volatility fiscal the large significant has and the an around regarding stock the market in impacted their last business quarter, unusual expectations with quarterly two recent interest this date, future experienced are early

showed in XXXX. activity business strong growth as begin in In Corporate the we addition, quarter fiscal building backlog Finance new for

sponsors Finance grow M&A access or translated remains businesses. have for remains to to and strategic dry softness Corporate into plenty market market the So of recent robust, positive, capital financial CEO stock conversations far, not the Advisory volatility Financial powder. has in revenues confidence continue

M&A to more XXXX. brand. market completed share in the our deals billion XXXX, Consequently, Lokey deals a Once a transactions continue the based completed total deals XXXX. in billion. of advisor mid-cap of U.S. on by we U.S. in again a as on In mid-cap named year rose was $X We and advisor Houlihan row of Thomson $X contrast, in of calendar M&A grow did in XXth than the stable number our number XXXX number U.S. M&A calendar the we and in U.S. Reuters as number we the relatively for under U.S. market declined under under M&A capitalize year-over-year. $X transactions billion on recently one one based number believe

with associated mentioned market a macroeconomic that Restructuring the Financial stimulating uncertainty environment our for effect has the of had on issues earlier I Some business. the also

During the across we new of quarter, experienced and wide acceleration of third business an variety activity a geographies. industries

few the Financial this our for fact, best business years our new down this In Drilling restructuring the business are in by breadth experiencing first gas oil and encouraged business year. was our activity, Restructuring nine we months a of in the peak quarter of new ago. we period the mandates geographical into the since are fiscal

success see continue markets our new size still is reputation that a to to in activity are relatively restructuring and in we Lokey both in the general. We believe and result product the marketplace. Houlihan increased our of

proud Advisor, were an Financial Restructuring we are that named the receive. XXXX, calendar in very one we Global fact, to In accolade number

coverage the we’ve financial in Furthermore, this front, On one Europe. one we quarter Europe. in in and Corporate hiring group Corporate in added three the additional January, and Finance in one in U.S. in MDs, MDs Finance already added our business, our sponsor two two

On high are that platform dialogue advisory smaller Lokey offers believe remain for quality with Houlihan active interested firms the an we we several their accelerating that as excellent growth. in firms in acquisition front,

new of stable enough operate. of what in will sync pleased are that are business out be we know this we which with last current stock are year the we markets activity, While Recent in with volatility we market appears with areas our to experienced forever. the to M&A results not and experiencing

of generally stable a the that, not and influencers in be resulting call over for growing trends continue heading, business will will we the closely our we volatility to environment the on stock or are an turn that watch or remind quarters over maintaining environment. firm very are tune, a profess where across to any will is we to expert like And do markets and sentiment. building Lindsey. but bullish, negative in the globe change to whether more I potential shareholders can the the that focused their coming One would economy on business the business with I’ll succeed market running remain

Lindsey Alley

Corporate We million year the year. same compared for XX% and quarter up $XXX XX when in the Revenues our Scott. in quarter last same compared to in Finance record quarter, Corporate you. to the XX transactions business. closed a were for period Finance Thank quarter last the

last XXXX closed for transaction closed but year. compared this last I revenues ended with the was quarter quarter lower quarter exceptionally transactions our same slightly the from transactions last the Restructuring. everyone deals Financial last close XX% versus year. the fee on $XX average was were want XX We fee third million average to XX year, Financial XX, December on for to transaction strong remind lower year. period in was same quarter this compared that deals our an Although Restructuring quarter, a decline quarter

affected the fee and of events. Restructuring events often quarter’s by the may has business performance large timing Financial those Our be

quarter third of affected Our fee was fiscal handful by events. large XXXX

fiscal of Our versus same expectations this than the year. million increase better the were in completed at last Restructuring revenues the We for Advisory events to flat last period $XX last in the revenues beginning a our from fee period compared Financial quarter essentially which the year-to-date were XXX in Services, quarter, XXX quarter Financial year. X% year. year, same same the is slightly In

business last managing we remained activity in New in several improvements over some steady, director seen has quarters. the productivity FAS have and

to Turning expenses.

were adjusted XX.X% XX.X%. the range year-to-date, in quarter versus our for the ratio and same period quarter of for of within $XXX compensation between $XXX expenses for the This resulted targeted last million and both XX.X% adjusted compensation Our year. XX.X% an million

third quarter due in in global expense the when increase accounting with in pronouncement million, the be increase included in reimbursements non-compensation in expenses. that number up requires $XX the an non-compensation that for Our an adjusted third million. That expense, the were increase $X.X was to year. expenses The Also was in in new quarter non-compensation partially an in third revenues, rent is headcount resulting technology. expenses non-compensation investment quarter increase higher driving last and compared significantly expenses

a in higher experienced target the in We couple the result we than what XX% our of will that of which be long-term expenses non-compensation have between quarters, non-compensation expect and XX%. to ratio fourth similar will that last is our in quarter

non-compensation expenses our of we of quarter, related $X.X adjusted amortization. acquisition This out approximately million

of and expenses continue other for in they to adjust will in quarter types the which We this similar occur.

line for interest year cash $XXX,XXX. in was on for of approximately the period resulted adjusted result the same $XXX,XXX Most gain last Our during a a income our line and expense quarter item other quarter. of item in balance of gain the income this income a versus of quarter throughout our the

we and our tax a fiscal between taxes of targeted effective of to XX.X%, an had that to was the XX% fiscal adjusted rate $X.X the charge of true-up the XX% Our adjustment We million quarter range year. in XXXX. relating within for our for toll recognize

don’t estimates rate expect made Tax tax XXX. additional SAB provisional finalized now a we any have Act. material impacts of under as our such, And result as the XXXX to We

of balance the cash for and quarter. uses to Turning sheet the

and of quarter end, As of million cash securities. $XXX had we and equivalents unrestricted the marketable

our capital the at price XX the excess our And cash that quarter, of return operator, with shareholders dividend maintained million we $XX.XX to open repurchasing by our can again quarterly shareholders. line questions. we paid additional returned During and approach average for our an of third to stock once share. to per We

Operator

our first Ryan Instructions] Devin ahead. from take JMP question Thank you. go [Operator Please We’ll Securities. with

Devin Ryan

are you Great. Scott, Good Lindsey. guys? afternoon, How

Scott Beiser

Devin. Hey,

Devin Ryan

the and almost restructuring chugging here, you and if story. right, kind stress outlook if is perked of months, is it because following I sounds along kind better few is like maybe a M&A question I mean up the of the market sounds hear First better still kind of past then perversely

trying the business? curious to restructuring still kind just companies specific of of wiser or outlook. Why more Is are dynamics I’m if just Corporate of restructuring, your the are your on something improving or So just idiosyncratic outlook really stress is Finance it ahead about get bullish is for in clients it pockets activity? their

Scott Beiser

minority are it, and companies with that and coming I’d majority have percentage the distress, some disruptors, technology shape the enough of we cetera, kind still interest the to increased companies. it’s it of scales the it’s describe positively call volatility, I’ll rates, whether deal of – in But good of from harm level trade of enough financial companies. et uncertainty tip haven’t vast smaller a the majority and on to performing been been vast it’s

right So Corporate restructuring kind harmful helpful of now Finance has FAS. and has been or to the to been environment not

Devin Ryan

the Okay, sponsor model business of is sponsors then on here follow financial have of up client and dry selling. and financial powder great. a mean, just both today your And group. transactions their on record level buying based doing I a kind

the shift because curious powerful there. would momentum it to with in so one some of middle seems it And group, see activity, that of take client remained that have reason derail lot are seem And it kind strong? drive tailwinds what outlook just is what you there markets a group? for would So would like a I’m why maybe secular as so that your which terms

if favor? So because curious maybe there’s financing, what of market’s a they’d I’m decline, could you do it think just seems think active their still you be lot that the would it like on things in would that derail be

Scott Beiser

Yes.

come debt the if can significant in derail public mind that which come a as capital as two think disconnect you and expectations. price if access second specifically the anytime is up. thing between be a perspectives, And to had would that and meaningfully private think you is I buyers things dried well capital that, sellers I have major change could to

Devin Ryan

it. Got

the do expenses. is right think Can that’ll from affecting rent So it Okay. just XXXX on here hear or I and higher on when any that’s Munro, maybe sense roll Lindsey, quantify expectation the you was transitory, magnitude expenses expense, of in know If rent then you the fiscal of because quick of non-comp model. off? the now? higher Last kind roll Quayle off still you that’ll what that more the possible that, one but

Lindsey Alley

think bit the want building I new think I – Devin, I’d that facilities of prefer occupying we handful you’re well. as our process of number is into And little last two in don’t expenses, overemphasize do XX as It things non-compensation that up that more XX the a one time. you out we’re to of in There’s we’re we probably I’ll pretty give and seeing currently have this a a to it. detail driven the technology out. significant that the I made the investment move around that of a to over component show increase months

but provide that everyone when we a the detail consolidate So non-comp I’ll in into terms affects the where get facility, I of more point single for a think to how little bit expenses. we

Devin Ryan

Got it, there. I’ll leave Thank okay. it you.

Operator

Thank you. of from question America move next Lynch. Needham on Bank then And to our Merrill with Michael

Michael Needham

evening. Good Hey.

intermediate the So on your one near firm. I’ve first the you’d kind the headcount hiring is and of to at got expect plans term growth

geographies longer some you’re things companies as like specialist with, these plans incremental for awards you’ve think attractive sense. able If enter industry looking what the but the for talent, growth you follow Year that to to segments hires, being you dialogue like in winning ideal are? to I positives the are are New want there make key lateral at, in and are seems factoring you It been kind most industry see of you your but of that I were mentioned an path public

Scott Beiser

they think been don’t quarters. they different the I couple are than meaningfully have last

looking some set these on time. that due to number people we’re take a And of not all We’re senior of particular hire. hires

that either who some hadn’t looking So additional necessarily the the necessarily hire, constantly we’ve past. It’s we’re available we talking And always not bench and start could and we by we acquisitions. probably a our at some do target. – we’ve in as and deploying sometimes said, opportunistically add they’re with trying talent. promoting we’re or will announce us MD as We we think where people laterally constantly at contemplated need will where a I strength but to And we it geographies. month, it think to seem described via both looking hire approximately people do determine become new we’ll just to products sub-industries or we’ll and that’s internally and once

Michael Needham

know – attractive? are any And I that industries areas any particularly Okay. don’t or

Scott Beiser

on the at kind in almost sector side, look We Corporate at of it Finance it’s sub-industry a standpoint. really

at And sectors wouldn’t while a So in there particular those all industry we’ve industry different dozen looking or the or we’re are we over two, scattered the point always industries. last of two, made year necessarily and they of if probably you that groups, major industry to been participate for. look half have sub components announcements I really the through a dozen or you a

Michael Needham

Yes.

what’s apart Thanks. a I so closed just other in And that year-over-year, good right. Okay. – for The of on going year. has this Finance was from enclosed, All it’s it Finance on that And a thing, really tracking Is at transactions high. reason lot number the are like FAS, then any the business things got in seems notice quarter then Corporate it track just full Corporate quarter in been of lower there particular seasonality? there? the looking

Lindsey Alley

I mean, be first the hit strong Finance, on head. two think mean, I Corporate tends the I it third think to relative Yes, I to very the certainly quarter quarters. you

And is in some number. there that so seasonality

I also that some we quarter in number think had a there’s in Finance. very just Corporate strong and timing

it are – And it’s combination was of – I fee because of the bit think completion I We we doing for event, – a that for little revenues we fewer use that, year. what then FAS, think this we FAS, of there’s there FAS, of policy. we’re fee the XX percentage whenever for no recognition is think as to drove events no included probably new the used longer since the longer apples-to-oranges I two completion percentage revenue So transactions. accrue a used

to the our accounting you’ll events accounting, less mean policy. just doesn’t to So there’s I fee FAS because see to going that year, for them see better this a think change this you’re new It business volume. year of year necessarily compared in of we’re differently fewer means year. counting comparison next But FAS because just last relative in the

Michael Needham

It Got seemed it. the Yeah. revenue wasn’t hurt. trends really like

that you. sense. So Thank makes

Operator

We’ll from Worthington our Ken with next question now take JPMorgan.

Ken Worthington

questions. And afternoon. you thank my good Hi, for taking

deals the So prepared of be sort Based on expanded the that the remarks. the close that the winning, generally or is there deals might business, this my pipeline business in next look winning you’re does this same to guys and wide these do Like just enclose they a of closed? Or assignments duration of business, pipeline? would three they talked in and the on these in so tends long restructuring you spread here restructuring over first you’re did that about the typical business are years? pipeline, expanded is when type more one of maybe business type this you’re winning a they And year? understanding

Lindsey Alley

one Houlihan did the of and throughout calendar in XXXX think assignment We XXXX history have normal. the somewhere I recession. restructuring, and during years to an Lokey is close three between

Some deals occurred in did and couple to quicker needs getting the what business seen that And your question, we’re within looking I’d expectation that kind done than at due unusual get to of closed what liquidity marketplace. the of types today the probably pipeline we’re much structure the closing, say of that nothing of and the terms assignment towards above of years. and in get highly the last deals we’ve

Ken Worthington

Okay. And you. Great. expenses. Thank then on

you good next is and that into out would elevated? the the last the For for is expenses the see the future? really Or two rate the that quarter, run quarters are non-comp, here outlook

Lindsey Alley

give the quarter of might think what last fourth a certainly the assume like. take of for average look couple maybe can of last to quarters sense the I you you the quarter,

our grow they will non-compensation they grow. expect going I near will think forward, don’t think anywhere year. that you expenses did this I can still what

around we our there to to Having we think are are that, our expenses, grow that I grow. not items non-recurring some continue that non-compensation our business, expectations in repeat. rent, particularly expenses said continue will non-compensation will –

So...

Ken Worthington

Okay.

noise? there, fast can so to the it. out in out, you. then is? weed did quarter and answered the excluding accounting you growth But reporting hard what recognition just of how And this of sort underlying parse grow It’s Thank maybe revenue us maybe finally You year? far some help or FAS, true FAS this through and

Lindsey Alley

you of whether When look can’t in accounting or mean, I So, don’t out just negative the standpoint, – just year-over-year. fee affected to flat the that fee fee remove not and done the is positive if affected you versus its significant has I take in have revenues, number. that at But how revenue certainly revenue. a a I revenue year-over-year. FAS out, I think answer significant a FAS the think essentially you accounting, it FAS’s expenses regarding pocket a if it’s flat relatively change that. question answer also way. from way I largest then in the It’s not I know analysis. change in from

Ken Worthington

That’s another stick to one – that in. why growing sorry isn’t Why Okay. faster? I’m the [ph] question. it isn’t

Scott Beiser

There’s a of couple things.

work at the of how necessarily task personnel FAS book said dictates Some is the not the Corporate getting on. components in restructuring, and we’ve Finance with of working we always or we are what do people that booked the

it. part that’s So of

Lindsey Alley

fairness would A good be example opinion. a

Scott Beiser

contract going the completion certain lagged kind Lindsey of thing percentage some of recognition. a of from as areas think has second revenue I more the – to the in completed the do product And mentioned, a of

be will to XXXX we’d it compare go fiscal to XXXX. from So when it better

that’s – than Whenever tends to as our adjust of take whatever the it digit. least the look it’s growing the is, the other some growing ones, all times. you Finance. business of amount you grow all a probably it’s for the so the – mid-single to of growing tends most probably of kind as in the during a that businesses. of cycle it worst and shrink smaller of kind It’s fast Corporate stable been And And not just once

Ken Worthington

you very Awesome. Thank much.

Scott Beiser

Ken. Okay,

Operator

Thank Sachs. you. Richard Ramsden question with from We our next take Goldman

James Yaro

in for is Hey, Yaro This Richard. Scott, James filling Lindsey.

the year quarter. in mandates should have the So did forward end we it impact back near the and that volatility think in restructuring like the going come have sounds business largely your end spreads recovered? market markets the about of How now

Scott Beiser

pretty a of three Yes, ago, has month similar. I’d is that today, even restructuring or say pace the inquiries months two probably exhibiting ago, been

that wasn’t month was So a December volatile helped January. things business don’t come a the it have down little I that’s think highly a and unique, case. in really the

there whether has I last time, or services in it’s uncertainty there, moment just subset today from quarters. of of this for out in to which that causing firm said at clientele is need for our think couple of them it restructuring the more is I others more than like

if the think not, So in hold, an I to continues increase to that than market continue foreseeable dynamic more we’ll activity future. see likely over

Lindsey Alley

reminder, a amount Financial overseas. as And decent business our of Restructuring a occurs

quarter so in of And fee was Asia. our one this largest events

And you have volatility do so U.S. this not markets. effect, in just it’s the

markets back like like work. Middle the done never where going I mean As when I say China, historically, in years restructuring historically, we XX East, places five, mature and have

seeing We’re own markets, us and in increasing of on their amount that we activity have volatility, margins come those affect that say to need they help. companies restructuring the where an

James Yaro

government on Finance there the In quarter, – of any timing but shutdown of did ahead? words, Corporate seasonality impact the Got then sort other strong during the it. any looking And deal be so completions? have is obviously, will M&A

Scott Beiser

much juncture impact with those work companies tend that as who to potentially at be issues, some material on deals folks, that Hart-Scott mean, to are would of going would think filing maybe Nothing of dealing not we be bigger more things public, contemplating a the likely this we issue. impacted. going I some

probably or meaningfully. things, another margins, the business. it’s is impact it’s think not far, I but a we’re shutdown longer, if so last I obviously, think But slowed few it our will if it. of it aware there And around

James Yaro

Got it. Thanks.

Operator

Hawken now from Brennan with Thank hear And you. UBS. will

Brennan Hawken

Hey. Good afternoon, guys. questions. Thanks my for taking

lending we thought be HL that recently but here. Financing, interesting I coincidence be fourth and launched Finance quarter, in having was one strong [ph] some wonder just is early for an – quick of hasn’t got might might it in just I I a whether this it? you’ve it here a been And this that, significant in Corporate revenue. contributing would to the going what then just early It markets. on combined with have that that had too an these factor Just your – market pretty bond that volatility quarter, business impact, wonder too and

Scott Beiser

Yes. latter, But closed happy had a working this be be the success deal juncture. I few impacted or the with new More hardly strong needle the we’re and moving by the not it’s a attribute on business to would matters. or year we to just at the strong HL all full at of quarter to Finance, that a too

Brennan Hawken

And Okay, we today. a thanks. on file had then utility fairly large restructuring,

your been creditors seen? you guys mandates? Could things be on the potentially have that you have that that the I’d creditor might contributing backlog such in Given to assume orientation, side approached as of side some strength

Scott Beiser

our just than I biggest it was a been. of been there’s just there couple some there for as and But more really pursuing far contacting out the the reasons for come or probably note and opportunities of than variety in across new announcement we’ve of business Lindsey bankruptcy really numerous in And PG&E, it’s from companies. U.S., but that’s largest mentioned as a not only filings. an that’s been of think us more their quarter company said, I activity have out time, the globe has And years. it’s

Brennan Hawken

Terrific.

me. Thanks. Just up clean those for

Scott Beiser

Okay. Brennan. Thanks,

Operator

Sandler take I’ll Jeff with question next And Harte O’Neill. from our you. Thank

Jeff Harte

afternoon guys. Good Hey.

expenses. a for Just couple One non-comp left me. on

XX As or should invest its above non-comp way to continuing % you you guys hire and XX% or we for keep to comp should be maybe kind like do back as acquire time guys the while. to ratio to investing, range things going in ratio range expect of to over be are turn that, targeted and over the we that time that a

Lindsey Alley

to point, us. XX% believe that the long-term I target good a we, think to at this is XX% continue for

on an that predict project reimbursables a reimbursable and effect to expenses has I to think not to hard it’s it our are little be. it’s and going what obviously easy our

at over an core impact expense. on to the run, still expenses, sort long does right – non-comp the XX% non-comp were that the percentages. of the, XX% has So the think long-term right that But I have stage, unfortunately our this believe

Jeff Harte

then we year-to-date, at your were range. that which Okay, mean, any of differently suggested is range forward in thanks. guidance to kind And about before? looking of end Should running of still you’re schools it we tax prior kind the I the kind the or of close think XX%, going rate. upper of is

Lindsey Alley

feels full end us. think range underneath I once we’ll a have think XX% tax tax year year the I year under now and I to in come this still us. mean that readdress to it first the still our the XX% Yes, comfortable at good with of we I XX%, the out I is certainly new – we’re But think we’re law, for that think to likely to XX%

Jeff Harte

Okay.

restructuring markets mentioned business, there recognized. in kind kind Houlihan say markets see feat the Asia, there of that of big was you on Financial I of you Finally for is guess a restructuring I’m wondering material strengthen, new that far relevant and and as mix is general, kind U.S. highlight else international anything or the as to how revenues? portion then you as the what Restructuring Lokey portion and of versus

Lindsey Alley

previous a States, it’s the as U.S. a area seen outside the the noted of just even of the in to this of that international came always into. a a U.S. us, growing even telecom isn’t from last to This not really it’s the a but it much had seen percentage A or had quarters, what the it. ago, versus larger board United United few would this as we real yes, multitude the shrinkage of we’re an cycles unique really is activity nothing how that kind in statistically maybe estate. just two, Increase in been oil necessarily industries in we we States of we’ve the and on quarter is we’ve restructuring that’s what international a and or Well, of from and sector outside you there’s oh increase important side, not saying, business gas particular industry driving like across point that or in in

Scott Beiser

new not and the Countries gotten really the years know, cases, we you didn’t our think but kind been get would to into in the and been market, that have have Middle those I increasing because we��ve be as countries the presence are some reasonably activity the in we’ve the China, there, market Southeast several into slow exist. restructuring of last a Australia. in just market Asia, because East, India,

Jeff Harte

how of just guys revenues the U.S. is of you versus disclose portion restructuring? revenues the big on non-U.S. Can portion

Scott Beiser

do our revenues, We by segments. sub-business total No. but for not it

Jeff Harte

Okay. Thank you.

Scott Beiser

Jeff. Thanks,

Operator

Thank to Buckingham you. Research. move Jim Mitchell And then on with

Jim Mitchell

Hey. and thoughts afternoon, what – kind stock guys. kind thoughts your think off. your like to July. minimum about buybacks you what of sells think the Any flexibility, just new how Maybe think have announced when should you – $XXX for level of in you a what just you million, program I as million did cash we a dry is on powder a of on buyback Good $XX given sort question

think set? Just thoughts about opportunity get that on some trying to how you

Scott Beiser

minimum a standpoint, small number. I So question. cash From understand it’s I think very a your

of bonuses, of the are we require a There May. the some but don’t are on that in you sheet cash. anticipation So, we minimums, pay minimum not Most lot we paying accumulating which is number. it’s a just significant regulatory in cash see of balance

a in that We of the do our cash little have keep balance we repurchases. make sheet. if pay tend go of of excess them. cash in to keep And cash some anticipation out bit we anticipation of excess you’ll see as share sheet employees We on balance the bonuses. most also So, we acquisitions, in to

think worth an on shares so buy about you quarter. we of basis. this as did suggested, We $XX did I million opportunistic

like cash to to price standpoint, We leave for compensation, undervalues have, of shares for enough think last company. for I cover stock flexibility executives fundamental year the of I associated cash shareholders think purchased the think or year, believe the share dilution is share the – is be intent But that is all the I’d retained with repurchases the we excess if and to not in to opportunistic, our to May were that quarter from of the we the already and shareholders they part what we as used did return the granted this I and opportunistic with a board additional acquisitions. the

Jim Mitchell

seems it Okay. like, But it’s…

Lindsey Alley

dividend, And obviously the yes…

Jim Mitchell

Right.

as like it a of dry still So, acquisitions reduction potential it’s kind for material powder holding seems in the count. opposed share to

Lindsey Alley

correct. That’s

Jim Mitchell

how something in Okay. in a where follow-up area like bankruptcies. pickup briefly, in you’ve sounds it restructuring, that a seems significant an China in a And there is then has bit business that Is – quite a pipeline, maybe just been have of mentioned that pretty it be that one it is do as we think amount company non-Chinese pickup there you or sizable that longer-term, do difficulties of something a seen to just is still could the there? about

Scott Beiser

mature, particular driving it or investing like we’ve country an as by particular or It’s American been the way them project, kind specific across quarters. – And of or of any activity at and at find of that’s is work. least from kind for kind sector rules industry creditor of to industry not I the different But countries. board Once countries really people, in difficult no geography to any last trend work standpoint, of said always would more this continued are these again, point the point. that’s any several those to do you who with I it’s that follow multitude rights, particular law,

Jim Mitchell

Thanks. Okay.

Operator

We’ll from Instructions]. Brown KBW. hear Michael now [Operator with

Michael Brown

guys. afternoon, Good Hi.

Scott Beiser

Michael. Hey,

Lindsey Alley

Hey, Michael.

Michael Brown

it’s sounds it of Finance, credit come may Corporate quarter, you is dialogues in quarter spreads And during any kind back for earlier, that the just saw then speak it impacted dramatic outlook move move optimistic. on impact that and move can any the too of really have But in since. or the during noted spreads yes, that how really have kind still as of you brief So a measurable dialogues? to like to

Scott Beiser

in market said, and more latter in market in saw, recovered we October, mean January. we of not worse we bond kind got – like see Probably recovered saw November, tough stock I what the do in I did a December so,

longer long So I’ll than business. in access completed. a Corporate deal to a deep it’s not seem describe enough take more been conversations disturb, the would we’ve a capital And widen, of we’re much and when it call exactly, it going. or can been takes before spreads little – it where get a definitive longer fundamentals to the to enough I And and volatility Finance trend little

expect here’s little side stretching see the always So, of several get sitting business. yes, Corporate we’d brand we’re you but the think bit for here today, of a I that quarters the to going new enough a out next and of there’s deals, least on what at trend haven’t we just and noticed Finance say

Michael Brown

you in the noted average the in Okay. lower was Finance restructuring Corporate year-over-year. that the both quarter press In and transaction release, fee

competitive So more? of we’re that just expand you general was that what seeing, there decrease, just mix the that on drove that closing the pressure little could deals you’re some or is a it

Lindsey Alley

I Restructuring Corporate on we It’s if where is was they’re average to and in transaction we just certainly have that just continue. it’s quarters XX our to cycle. this long-term trend back lower higher our quarters. XX, quarters really Finance that lower a based in we there fee average more Corporate you over mean mix, but because are than the is mean, are continued is are the fees increase think cyclical, years, some and Finance in general that look there the no, But are quarters higher, general that expect trend I little I different, transaction a this

Michael Brown

Okay.

one guys the last one below under classes ORIX’s collapsing would share that’s any Just ownership something longer-term? thought share be that a consideration in with you me class XX%. down given just to eventually into down Have now one for

Scott Beiser

juncture that anything not this That’s discussed. we’ve Yes.

Michael Brown

Okay. Thanks. for That’s it now.

Scott Beiser

Michael. Thanks, Okay.

Operator

queue at for it the to to over are further to in Mr. like any turn And conference I’d this Beiser, – there the time. appears or over back no remarks. questions closing additional

Scott Beiser

our quarter spring. Well, in you. our we fiscal Thank XXXX results for third call, look and in to fourth thank our earnings the discuss to updating I when we everybody quarter progress in want you forward on participating all

Operator

participation. does That conclude today’s your conference. Thank you all for

disconnect. You now may

Houlihan Lokey (HLI) 29 Jan 192019 Q3 Earnings call transcript