HLI - Earnings call transcript Q1 2021

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Operator

Good day, ladies and gentlemen, thank you for standing by. Welcome to Houlihan Lokey’s First Quarter Fiscal Year 2021 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 July 28, 2020. the to turn Lokey’s Crain, now Counsel. General will call Christopher over Houlihan I you. Thank

begin. may You

Christopher Crain

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

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

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

of Christopher. been of Also few keep all We your safe our for suffered yourself by to and like horrible people to to affected and to we’re times. injustices fiscal greater treatments understand others feel The sincere in fellow part ahead. and in beings. need have the true to understands everyone appreciation our months months to you, first clarity COVID-XX of to to I’d positive and be and around human XXXX earnings unusual abroad. last come millions frontlines doing you compassion call. world at can hopeful Thank disease solution. our the Welcome the America many part we’re change vaccine of are by this who successful offer for and those healthy. we our battle on we’re the coming with hopeful But the quarter working firm about Everyone the a

our signs tough near-term business the opportunity of to turn of very now but and citizens I a exhibit local diversity, involvement our mid affecting environment long-term. our and all. and issues within fellow inclusion we’re current shows life the of the from in society in vital significant improve quality making will our business to and concerted to opportunities effort our improve our to The continues challenges, a results. increasing quality We’re for also continually organization communities

million versus revenues were XXXX fiscal last our first $XXX quarter first down Our year. quarter XX%

long-term quarter, performance last in our and is the Our outlook adjusted financial short-term first in year. continued mid-term Notwithstanding share with earnings the position and our compared the XX% quarter per recognizing down headwinds, strong remains also were our positive. $X.XX same

earnings in quarterly caused our M&A impacted financial last was revenues mentioned is call, opportunities the for negatively business the abrupt designed. by and business I dislocation has as significantly. on have model in our downturns. restructuring us The pandemic expanded balanced time, the our it not severe working As other same At unlike

been to in down of has challenges our M&A near-term M&A currently as the work cap we and However, the to through or the has deal case in overtime opportunities. the significant summarizing our as more growth measure, strategic a revenues revenues. is faster exists result start opportunities that anticipated financial and down and restructuring financial, will We restructuring the as globally change the business periods count large on believe impact other of The disruption. evident by expand lot. any become and this in occurred midcap, pandemic. analyzed and in through by by financial By then growth facing continue on US will we’re move I’ll and and volume our

put slower During much a business our and deals number M&A, on first were quarter died experienced we number had case large we and that a that activity. new hold even of in

experienced This market recessions, our Today never and up quarter capital quarter the activity strong we compared heads versus in are new in have quarter stock But the year. held M&A In the well. experienced one declines last fewer one first previous as transactions corporate we dramatic finance levels as the year we down quarter were same XX% and markets abrupt during the business same activity. quarter. last closed XX% to almost

versus deals this past the on rather a over downturns. versus continued disruption, US prolonged of in and a pause M&A election believe of is the a home, risk reflects than temporary that of the stay over dramatic We the fact notwithstanding to previous second M&A Mitigating view favorable market’s an these the of M&A number However in the activity few pressure market. in activity uncertain died months. concerns that the the shutdown reduction loom deals outcome hold at is more number the

trading their calendar financial debt and year corporate market markets US is M&A in have Equity The is race individual are generally pitches recovery regained the lending XX the the starting days rates number in activity. remain markets are see from to Interest greenshoots participating levels. and low place. last effectively some Over The flat and tax end. at historically higher levels sponsor value we’ve of begin to we’re for to returning. of in prospects are positively M&A pre-COVID liquid and buyouts nearing influence gradually lost

the valuation role in holding has as the industries plentiful this conditions with sponsors to capital which Although financial mandate advisory capital earlier capital well, the the more pre-COVID. highly are for and to capital decline in to our who in the down in our of across somewhat flexible the less quarter were bodes year. in capital this average stabilized a advisor market companies corporate experienced companies we’ve number more period M&A future of business long-term business use revenues environment. the first new our trough be capital markets markets expected same stock and businesses Overall, activity, up last intend average current closed transactions in year, the busy. of well while and fee larger seeking the and We’ve valuing for of than has Furthermore, market our opportunistic size Overall market versus this been since is financial business. activity

has lines transaction service during in valuation valuation valuation, transaction are business are our Historically, single-digit business segment and revenues year-over-year its our experienced advisory up opinion advisory lower. lines annual and while corporate a declines Our service portfolio fund downturn.

crisis business into restructuring firms At outset industries COVID the plunged substantially new mode. multiple were increased from has immediately the current many financial business conditions. benefitted Our across of market activity crisis, as

As government intervention in and situation. the bond market stabilize new

But than we’re need of longer days we overall take firms Our term. shorter timeframe. outlook worse in a changed a to engagements has last over relative place anticipated. many much before ever would more believe over over that bankruptcies maybe ago than have translate the we earning’s their restructure that first ultimate pipeline we working have Today, environment expect of and situations near for but anticipated Currently, XX a assignments the restructuring into business on for since steeper period developing call. we rise our a will time. may

several and it monthly have a a assignments. assignment quarter restructuring considerable years can component first fee the As to in increase or a while consequently quarters had we reminder, record of revenues seen take restructuring financial we have restructuring complete and

fees fiscal year this majority the financial recognized our expect of of the in years. current transaction be as to subsequent we restructuring We and part move latter towards

the to pandemic and activity. firms. has acquisition as In the during MVP investment of to has ever. Turning services Capital. MVP our June, acquisition infrastructure, banking provides as we stable remained business important is telecom Their announced telecommunication investment

serve our in of important firms’ XG sit world. As client Zoom that benefitting technological during technology. two base here from clear a of combination are we us all fairly better positions to seems It transition. our connected the of rollout us The this collective all

any the transaction don’t several in August promising speaking, and firms acquisitions. while new on may larger Consistent number expand close sector than dialogs close of are expertise the in US expect overall welcoming on our provide most expect business with equity pleased we’re quite of looking We the industry partners the them. close in this more historically performance Generally active are the we’re we in with But We economy model, business most active quality with our the and of verticals. US In every with and Certain coverage opportunities firm. dialog and previous not our underweighted we of Europe. our in To-date strong would exquisite clarity short-term upcoming interested firms our offering, excited to to get with recent closing, in current elections. about uncertainty until we’re in and financial more companies firms we’re of we and COVID at to a a and we’re we’re combining talking expect resolution the other firm. where transaction to. the firms, results our

this with However, believe giving of business the of the we in The confident of of and clients. ever previous we’re severity the and cycles. model. talent our our employees the Regardless length balanced pandemic advice our or as aftermath, we’re as as perseverance

of over And went with and Lindsey. to better much will the when We this that, out than stronger a firm even call come turn we I’ll position in.

Lindsey Alley

closed pandemic. first an transactions. transaction a Thank for of in increase Lower in restructuring you, on a same average last restructuring the the number a transaction as a number from delivering quarter XX in compared Financial XX% result the quarter period year. XX% last fees had in revenues financial retainer Scott. increase of decline compared same uptick revenues, drove fees in a record million closed same and a the compared We period million of were quarter our Revenues volume by of year. last were year. increase $XX transactions this in the XX finance same quarter revenues the $XX transactions with retainer fee $XXX corporate driven period for current the the million result the closed engagements last in Higher higher increase and in offset to the to by year partially significant monthly

Although an we the same not activity. by revenues the were a as quarter affected affected retainer revenue volatility be realized $XX product lines saw fees M&A see years. period bulk associated caused million in advisory, and other couple have results subsequent by transaction with the lines compared by across uptick in and COVID-related the SBA pandemic restructuring for the negatively In in until decline the with quarters its increase several valuation will last mentioned other Scott closed million to mixed the in product steep started $XX for monthly is to lines the financial service for year. positively in

expenses, reminder, quarter had for $XXX We million same one quarter fiscal related to of for acquisitions fourth first period the as our year. no relating XXXX. this the tranche we and compensation adjustments for the adjusted the to our last grants expensed Turning were pre-IPO was as $XXX have deferred payments more million certain versus in adjustment a expenses to last will quarter

for ratio relative for on compensation to adjusted last XX.X% compensation Our quarter. quarter We primary year’s first the pressure reasons. our ratio was two experienced upward

its of continued uncertainty the of some compensation severity ratio. and there’s the applying First, which our pandemic upward is aftermath pressure on length around the

not direct lower materially component we’re are is our ratio which for in a the and expenses period XX%. last result experiencing pandemic. a operating compensation associated revenues expenses versus expenses reimbursable travel, revenues, and we’re is our recruiting of reduced and resulted and same home gross by This since our Second, a year, with employee upward orders of our the gross of which as XX.X% the adjusting compensation last ended year. revenues This and stay adjusted expenses. result driven account Offsetting the in same All an implemented the expense decline decrease versus this to reimbursable decline XX.X% entertainment $XX in is million in non-compensation $XX non-compensation at adjusted quarter quarter revenues events. to for a of meals related to decline expenses ratio other marketing million fee our at lower

We least through expenses expect non-compensation significantly these year. the the calendar balance categories in of see reduced continue to to at two

out $XXX,XXX costs in primary $X acquisition quarter we in items offering related our This in stock adjusted non-compensation two May to our million amortization. related expenses of and

We will continue of types adjust for expenses which in occur. quarters similar to in they

balances. quarter of same income $X.X income approximately year. period cash last interest lower million in other a of adjusted was decreased $X.X approximately Our and versus to on earned and of for invested the the expense primarily our result This million income

during quarter period rate Our for the XX.X% adjusted effective same to was XX.X% year. compared last tax the

of a vesting deferred effective our first our fiscal this more stock reminder the rate tax tax GAAP quarter. of order employees adjusted that for as which normalized effective vest on we a significant as in the issue to the year. This expected for a a we portion give during rate to quarter As effect compensation had quarter

effective lowered named are meals Non-deductible a expected as of they and expenses include expenses because compensation a with long-term likely this associated But our and XX.X% target repeat entertainment, that of and parking our also non-deductible quarters. XX% XX% of subsequent items between in year tax the below employee discrete is result crisis. rate certain driven by won’t Our adjusted executives. of COVID couple non-deductible certain

As a our to non-deductible fiscal be result closer tax for XXXX to expenses of expect we rate XX%. lower

balance uses the to and sheet Turning of cash.

the they in believe, arrive. our of We Scott’s securities to regarding capital million comments enough take cash we and attractive end, we of acquisition activity. and To of which $XXX investment million completed quarter May. the we As $XXX had as unrestricted in cash equity includes from advantage equivalence acquisition earlier have offering opportunities

our in In having to adequate addition cash business.

to dilution We revolver have years, fiscal first undrawn XXX,XXX we to to we as million. shares issued $XXX we as intend in of and part compensation offset employees fiscal In and approximately throughout share our effectively XXXX. of no debt this had bonus for new quarter, their XXXX previous net repurchases

at totaling program meeting addition repurchase In $XXX million. our repurchase we a month, replaced our previous share board program with this share new

shareholders that announce September with on our dividend and we’re of operator to can per of September $X.XX questions. payable as line record we’re open Finally, we that, X pleased increasing to share for XX to the

Operator

Brennan [Operator Instructions] the with first question comes from the UBS. line Hawken of

You may proceed question. with your

Brennan Hawken

put something. will noise ratio wanted you finer noise, that. versus a higher The for so and So expect it normally we you about be and comp just think to passing through to thinking that the just be is ratio to clarify maybe a about range sounded things this quarter. year that, elevated noise the is should like or just normal to comp revert was wanted will that compliments it is the on back little point message that it’s the some there sustain range to that the the

Lindsey Alley

offset briefly. in Yes, that reimbursable they and try change quick. I’ll the When expenses. our year we number for in to there’s dollar-for-dollar as our comp expenses that revenue had so know, our ago occurred accounting $XX a revenues non-compensation two in it make very and reimbursable increase you years Last number insisted we about in expenses. million to

compensation based $XX compensation of our revenue. upward had expectation our we of do expense our for as revenues revenues. are we’re expense and expense million much number on lose up reimbursable don’t to in tied revenues compensation and see so to, our only on expenses is that we based that year we’re we ratio think expenses. maybe ratio through essentially this that We going expenses so decline going may so to flipside to the expense pass lost pay we of reimbursable reimbursable adjusting fee And a put lower number normally that non-compensation dollar-for-dollar reimbursable we that half expenses it that The to much

change, offset higher see lower Does of expense may that result we non-compensation accounting by So sense? a make the compensation as slightly expense.

BrennanHawken

about I we then, so. think Okay, business. restructuring And the think when

think questions kicked of might the of too you come think expenses. that, accounting should that things opportunity for calibrate cycle? business some simple that be extended understanding expected could that fact the to is year questions what uncertainty Sorry into seeing the at to off views you the Do be longer upcoming and a revenue take off? you Should about thinking the changed? about you Pulling the on be early? adjust pushing to the Is to the thinking start considering with little still about we this about to up fruition. back should us touched Has guys just or that a that restructuring all we it geeky level Is set and and that to subsequent there an timeframe revenue the the years? stage? those enough ramp How now potential think you’re such

Scott Beiser

said once that will we XX some probably we what additional think XXXX We XX ago. our restructuring revenues restructuring thought. today less than But XXXX probably is, days XXXX, maybe ago. be days in think years conversely, compared revenues maybe higher our in we will thought What be than fiscal we what to

of period the a probably blip damaging going ultimately much that of the over pandemic thought So ago this and think time. and have more be to we hand to slowed has would down opportunities would We some as days there’s is government of have something intervention not the a more on the restructuring XX is think short-term the be we pace occurred but longer longer going economy. other to

Brennan Hawken

the about last clear. of on when it. that those in me. that deals times that as Normally that quarter. given are that happen how from think closing models? revenue the about When greenshoots focus about you we How we Excellent, the opportunity greenshoots same you to you you that translate adjust referred A in middle lot guys? I you Scott. we M&A. in you One can Thank real for think in for to very have market. appreciate one think the should announcements that’s our actually to should try

Scott Beiser

Couple things. of

a the we’re last we greenshoots. think severe in M&A in XX that, would quarter call been singular like has said the said anybody quarter I to say, some I totally these in marketplace starting albeit [indiscernible] probably of versus days seen. decline the Having last over

We’re usually whether confident uncertain. deals or some close when they We know much push on. is will that’s new changes in the business there’s turn because the potential into policy going more tax they’ll will close

starting plans. private even some meet equity management if we’ll on see have go look moment or forward of at said We’re the the can’t some to visit actually transactions we who physically firms with

So clearly, and what with that have starting order, things those have are to seeing probably thought XX anybody in some And ago. new would humans strong you been I buoyant evolve bond markets much are the this think than equity than markets we’re more so if day might. - or

those have when we to dialog they’ll into engagements XX more closed seeing getting too what turn probably early all new is saw ago. activity us are we’re will more deals or close to So us gaining said of they clearly than to I like whether days signs But tell. positive which have

Brennan Hawken

color. the all for thanks Okay,

Operator

next comes Devin Ryan the JMP line Securities. Our from with question of

question. your with proceed may You

Devin Ryan

the Will last the that when How least in still an one, if comfortable comfortable for doing technology? doing follow-up is process employees Brennan where finer traveling make question lasting US. transaction sitting to two, I’m kind deals of people a an in great team actually effect to the with without a but to with are become even it appetite much remotely a and have they where asset are to benefits something is of or seeing at some to people more M&A of reasonable Maybe critical comfortable they’re getting an historically market or backdrop actually aren’t to people M&A Has of ability some to the the may if, weren’t lasting point do this But just on the just talking ability with buy curios become management more that person things it’s parts evolution market? down the that kind back and do maybe an a people the just not that possible. maybe happening? become pandemic. that’s of

Scott Beiser

the think workforce, were evolving. there Clearly, working think Clearly, is there. Several professional remotely. I and we to. and we’re things they’re six I human service seeing other questions technology workforce behavior our point evolving organization would is

firms We’re offices. accounting the to seeing audits in the getting done having by remotely all without go

how without it’s to not factory, to physically need things. going meet videos it about general of so the or at a things travel get minimize actually can exists. seeing couple to was that done couple And actually travel the needs amount this with longer a want management also house when place you stay or physically the or physically still you of buyers and you we’re home, how it. lack they But the think go willing that People common We’re quarters buy which people to the I purchase think ultimately years of visit do buy doing factory. business ago. and remotely seeing are I XXX% is do to view

deals people did. of to to you I normal a you without do once will willing think kind procedure that know continue be

now So four we’re something, into tomorrow. would be think we process. I it immediately occur that did this traveling But if could months great

even of seeing willing borrowers to doing are year do buyers, contemplated they clearly ago. number things We’re have that a sellers, remotely lenders, more would never certain

Devin Ryan

it, Got interesting.

some commentary thank acquisitions you. obviously. here a then the Okay, And just follow-up on on of

nearly quarter the in $XXX,XXX You raising issued X million. million shares

which small. you last like It to having reasonably more compared or and in sized regular announced larger still some with what you’re this conversations deal done you’ve mentioned past MVP quarter sounds the the You appears maybe firms.

actually how to capital, to wanted that for raised like one quarter. the for of maybe it that larger kind get kind since is this do this you’re the you that a specific versus a Now that slight several like of there’s sounded something it try you’ve would are larger to like sufficient the more deals this you last think flavor more sounds or extent, last firms should like quarter. sounds it deals that we about funding moment, or nuanced think be sounds than talking to of about little extent from execute on with

Scott Beiser

Several capital We’ve and we’re we things. on enough to firms future out, lending we you our yes. it’s for cash if ago, still nothing said to needed or combination through numerous the cultural the of talked doing to able and There’s said sheet on a money of got as capabilities years the size that, than acquisitions. just have that. our larger the us where opportunities them versus wanted either and We a we right deals. of maybe I the general close we’ve today larger etc. from when announced with to foreseeable little the standpoint. talking do in to pointed always that think are to stock it due be we been balance capital that are much now couple It’s because raised tells a etc. to are Several of the past. firm five Not three Having different necessarily makes a tools

the is, answer do was, close enough question deals especially yes. I you’re if think So deals sizable and if on money they’re few to actually so more we

Devin Ryan

guys at terrific. it you leave okay thank there. questions. I’ll for the Well, taking Yes,

Operator

question. Matt from Coad with Autonomous of Research. Our the with comes line Please question next your proceed

Matt Coad

is So that team on addressable question kind restructuring commentary you say XX believed that to it cycle before. your of total based and market fair your days relative for cleanup say larger? Is restructuring ago to this now that

Scott Beiser

Yes.

Matt Coad

got. all That’s enough. I Simple

Scott Beiser

ask than to call potential was that think of of You we bigger quarter period take I time time just years. I addressable longer said, a the is come period to a But and all competitor’s and mean like our a it business it’s way put [indiscernible]. going for our market out ago. couple today didn’t way. our of didn’t for We

Matt Coad

Awesome, thanks guys.

Operator

Our comes Goldman of question Richard from with next Ramsden the line Sachs.

your with You question. may proceed

Unidentified Participant

This on dig taking Perhaps in some finance bit business. is of James for could trends Dera for Richard. we corporate the a filling Thanks questions. the my in little [ph] in

You quarter six MD’s the weaker in saw down obviously down transactions here. number and were of were number completed this environment. of They of a reduction by the given

the just forward, any that fact finance So the fallen going on the impact have have MD’s if maybe we could how on business any? could dig corporate in

Scott Beiser

I think departures typically it. some seasonality there’s part hiring, to our of

You’ve got is promotions our part with of come company our XX it March May. April and are in doing in employees a when are and reviews we since

some You’ll and turnover start voluntarily to see both involuntary.

So that’s looking MD’s time different. total not typical by quarter-over-quarter is year-over-year and a our period lines even get at materially or you kind of of all product

to. the the business at departures you’ve handful look has that not for to by all would I us alluded potential So get or business close at of been impacted

Unidentified Participant

bigger then ones. And two quick it. picture got Okay,

as prior opportunity other if is guess environment one slow the you I into XXXX simultaneously do year to of to XXXX outlook like restructuring both the maybe could perhaps calendar down on strong for cycles? be for or comment you there think to So in be in M&A just well strong the going there and as

Scott Beiser

to due each the own in grows the don’t of all is will putting is the downturn and finance those typically Each and of tell know. our it, of corporate quicker. projects the business on or that unique we’ve restructuring call our of quarters experienced cycle of last more up finance whether quickly the the But back its than to it I’ll you has either I more shrinks quarters what’s magnitude corporate regarding - duration restructuring would each and number itself repeat business is that dying couple that that hold, that story number downturns

exceed the You we’ve start catch get exceed, I restructuring business ultimately in for said the not does at downturn is restructuring yet in playing do does the there the stages the tend shrinkage like that of finance potential to the growth not to early up. in the business corporate typically restructuring seen past

Unidentified Participant

technology on this have have how comment impact your from how the of non-comp the faster you about ratio term, any? it. people could of the But more got adoption home one, to could in been permanent a near last course your over on And the see you if perhaps forced pandemic as talk appreciate Okay, work a over lower then term. cost the longer non-comp I

Lindsey Alley

talked we’ve this quite bit a When internally. about

for to like the we our technology. business likely items to some this all effectively, going real see reduced see information And incremental on cost manage estate. cost in you’ll You’re in firms if of

the You’ll see reduced over TM&E cost like long-term. in items

to hours don’t jump a two-hour anymore. realized for to or As you New six and meeting on a York Angeles fly people have Los plane

we’re we going years. So will changes real five that investors estate take honestly leases. unfortunately. see structural over expense to It next signed are to XX our We’ve to that attractive a non-comp while long to the in hope,

expect will of we that the what’s the are occurring that changes do all business. that to take So time, way and but as we happen a result

Unidentified Participant

lot. thanks Okay, a

Operator

next comes from Jeff Harte question Our the of Piper line with Sandler.

with may You questions. proceed your

Jeff Harte

historically Leonardo? or couple lot should even relative of in relative acquisitions than on looking about the average we a of small of before, from larger me. like transactions that at as to commentary some One historically of the your think larger A transaction maybe to kind because

Scott Beiser

sized in looking we’re of think the past. what where at change culture acquisitions larger normal nothing big if acquisitions I But tuck-in said the there deals be a is kind it I’ll call of of at that think we’re we’re Lokey at risk than Houlihan the some we’ve is I would looking some still for so I that kind puts more like organization. completed done are right-sized and

yes I mentioned. So or it’s I’ll that Leonardo deals call one would said the equal deals to a sized bigger be, like even that normal it than and of combination you

Jeff Harte

typically is mean Okay seasonal of quarters the the million non-comp. and really then quarter $XX I kind step and on of for year. low. We second up see fiscal to

like given COVID-wise, a again step should on quarter-over-quarter? to we Just what’s see going expect that up

Lindsey Alley

pretty a all tell way quarters next so in I that in the quarters million to midway hard we’re decline little thinking three because kind the a is significant $XX $XX through. to be we’re It’s expense. you’ll our that of non-comp sort million range think year-over-year But about of for couple

Jeff Harte

the be kind revenues extent market Okay the and the better compared dynamic, of peers kind pain seems and kind kind like saw to slowdown tend change. unique it perspective but day bulk of that up guys middle at their the of year-over-year. by XQ. finally you of what closing have to to of It because kind looking have have maybe don’t of middle the revenues or and I’m held Putting the the declines of a is corporate lot business pain of finance the same in guys overly in trying you optimistic market already of signings in that in felt to

So or to of I’m you already out there trying more most is know potentially the pain to whether you’ve get felt come?

Lindsey Alley

between will have because the Well the felt of I and be hard we’re most such pain into first in middle yet. end signing whether out. the we closing it’s windows to market already the sight we others small because we’ve Jeff, first don’t tell as the see and But said ones in the to recession

and to the So that number Having away us a had yes, XXXX revenues. had closed kind in fiscal that, and If were were - It market for March. an of of this September, closing almost was comes of said to baked for end by QX affected we go question. significant in transactions year We in of number a March in revenues on market we and of February. October had we of possible little the those end to you nothing March them we got the in is transactions. us earlier by very see sort back

So transactions, most companies majority the vast faster for much have we sign of just that shareholder a go public vote it’s close. we to do our don’t have - the just through because to

Scott Beiser

that might I we to we And of number hold quarters down. the number That are down questions have answer your The of deals early not. of add, deals of on of acceleration a clearly or hold in real I going we saw, think slowed go died more there in this crisis and and question has Jeff deals health pace and died. mentioned months

the I hold, slip in will is number hit or the on will marketplace pace they go fact, the into stay of dead projects let’s think what will on they category at category. to those will they hold

and there out a dead predict lot to big is the it’s go been probably timing sign there’s a bucket from there the that’s standpoint. So that ahead but giving is, not yet little that’s not hard a

Jeff Harte

thank Okay, you.

Operator

line question comes of the from Stanley. next Our Manan with Gosalia Morgan

may with question. your proceed You

Manan Gosalia

decide if was I dividend see strength when shareholders? return was the opportunities, reflection you increase was your capital you deploy or the in in the wondering, this that restructuring of deploy do your to that overall I would is you you have meant diminished. a upcoming raised any somewhat in had nice also and wondering opportunity May You revenues major timeframe don’t quarter. see would you if in you a mind a to that to capital it within if which

Lindsey Alley

one, This is Lindsey, first. I’ll the take second

of normal think May we companies think was shock fiscal increase it were our didn’t think our after middle what was prudent to reporting the I we which which our and that in rest all year. right in cadence, along on the of I were with dividend is the our, happening was

and I raised think to nothing of have we of it. back equity the more environment and a we have is in a stable has figured May it to better word dividend. spend lot we’re than was a felt with didn’t increasing heck so We lack anywhere the that out in. comfortable really It do for It our the more that fact

time the couple last what to pandemic we or weren’t the lot need like that was and sure in we going the had them not stars really to companies or measured they think the these quarters. align year long there believe together been for that and is I opportunities but a three decision be We’ve one, don’t could to can about way. process the of thinking years. do before years. it. sure with. dating years we’re question do to whether kind very conversations a We next your in spend before offering a for for could make wanted acquisitions. just that certainly rush out we’re in answer the one capital it enough really acquisitions how of I are it’s and that to get to wanted that make measured is in of the hard we enough At there it Regarding long to equity the we that did flexibility. come be our while that It we aftermath looked think We It We married like. as we we dating about decide came

Manan Gosalia

Fair of appreciate is the curious enough. I was wondering then, how they is environment I is But managing And how lot your policy, of much after now. much election the see just clients. otherwise into of the the was uptick there’s a in Are - right uncertainty are uncertainty will factoring the signing you this and holding conversations an back for reasons with to be maybe clients environment, I could election? one maybe

Scott Beiser

gain potentially to outcome close tax direction. business let’s elections capital to They’re some think holding there’s They’re actually it’s probably able one or of held see. they’re ourselves more to privately The company more is on optionality is held the back going other a in wait a probably changes the and industries it look I versus consideration. family of the outcome be about The policy. the at another. mixed. what change more Which the administration is give antitrust and the or larger issues probably and the to worried business will prior and tax

of So I size it think on private. versus the public company, varies probably

Manan Gosalia

it mid-sized maybe the and two, you’re that would be the your skew given slightly background that like cohort or Got positive looking at. smaller and for

Scott Beiser

remarks, its client net my to today. at Yes mentioned positive as probably here sit think in a base our we least we

Manan Gosalia

you. Thank Got it.

Operator

KBW. Michael Our Brown question next comes of from with the line

question. with You may your proceed

Michael Brown

restructuring. I with to start just wanted

be that that come trends which time So we this success plays have been those some play that fees we’re regions we just into for to about or public first see through. or Could types in success through insight that you’ve the at will about guess closed out with see of understanding take fees does restructuring of you of very things way of transactions, realm. types the that think can what kind could share out we you kind which clear better it I those as you come roles maybe or those could industries as at revenues, as deliver first to industries and those us look how a think deals and deals looking how as

Scott Beiser

pick much need to somewhat which structure months. get about industry you hurt I industry related devastated situation says you and but and mean reality of dynamics fact is answer. etc. this you have on [Indiscernible] probably company so been are, maybe know which But if have something the says the could not whether so industry the entertainment But all we couple stakeholder take downturn. those really structure then gas, is solve that troubled sheet two it’s industries takes actual solved have far the most years what a a and into of different in to you structure capital have easy to bad and it even it’s question capital and go balance in really the could and to travel, the next retail, pattern. if you oil industries the the okay,

answer and you can’t a it, transaction assignment. so unique each every unique So - it’s not on and it’s

Michael Brown

to it on kind above the that change a you one Okay color of guidance and a it’s But about the range this to way the is impact right on quarter. an year. year background just in explanation kind the think happened of to of quick historical comp it’s that that is expenses. ratio. or the just the meant all clarification it the that I full appreciate Was maybe of or truly think and what impact of going this do quarter next is be

Lindsey Alley

our expenses. are what reimbursable to be we stay significant Given at going and think home to orders the impact a

to is through year expect long stay at but going it’s probably have likely We place so year. as calendar change home Which we orders. certainly anyone’s the be that a guess that entire and through the is in

Michael Brown

Okay, That’s from me. thank you. it

Operator

Ken [Operator comes question Worthington from line JPMorgan. next Instructions] your with the of

your proceed may You with question.

Ken Worthington

anyway. disclosed ask sure but not I’ll I’m you

the sense how of retainers just a maybe or of either fees quarter past to success give building? you restructuring to us this In this average, quarter, and other quarters ago revenue of mix quarter last the and pipeline a this is compares or can year terms a sense between get in how

Lindsey Alley

We in alluded we as both don’t I to disclose comments. the retainers and closings. our mix think But between transaction

and to quarters. You’re of quarter in going to revenues just retainer of to as other restructuring transaction relative percentage overall this compared fees a have higher fees percentage

would, starting our in which ones the believe balance retainer exactly going related you’re you fees fees until starting transaction of the start so those our those we’re is is And place way a fiscal take up acting occurring incremental and year restructuring to it real intuitively that’s intuitively would COVID. through the see build to to

you see just to you You’re fees going last weight overall did in a heavier than than to certainly fees retainer relative year.

Ken Worthington

you thank very much. Great,

Operator

the end question-and-answer Beiser Ladies I like to closing have of reached the and for would turn to gentlemen, call we session. Mr. Scott back remarks.

Scott Beiser

and fall. in coming we participating quarter updating forward earnings first want we second to fiscal this quarter everyone thank I our progress for for our XXXX call on to all fiscal our results you discuss XXXX look when

Operator

This conference. today’s concludes

a time. for participation. Have day. this you your Thank great disconnect your may You lines at

Houlihan Lokey (HLI) 28 Jul 202021 Q1 Earnings call transcript