Earnings call transcript Q4 2023

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Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to Houlihan Lokey's Fourth Quarter and Fiscal Year 2023 Earnings Conference Call [Operator Instructions]. A question-and-answer session will follow the formal presentation. Please note that this conference call is being recorded today, May 9, 2023.

turn Counsel. over now Houlihan Christopher will General Lokey's I the to call Crain, And ahead. go Please

Christopher Crain

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

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

useful in comparable hl.com presentation in measures considered company's as prepared GAAP GAAP. website. and will we be our call, the substitute to or the directly investor most of our discuss results non-GAAP can reconciliation financial evaluating today's release a with be these we accordance performance. in During should financial earnings isolation which our These measures measures, is financial available on in the A not measures for believe

Officer open call and have some we to we Lokey's will They the Alley, and Officer; Lindsey today, Chief the Chief then call provide opening Houlihan Beiser, remarks, Executive of Scott Financial company. the Hosting will questions.

turn I'll to that, call the over Scott. With

Scott Beiser

call. Christopher. Revenues the adjusted everyone, with quarter from per of fourth adjusted earnings were revenues for We ended to and were $X.XX. year XX% XXXX share ago, share from and down quarter year a year the you, Thank X% quarter down of million Welcome, a our earnings earnings per and earlier. fiscal $XXX

During fiscal typical and likely quarterly results. year, volatility identical to results due second first almost have not increase experience market we XXXX, half second our half little in in results conditions. revenues our to were our we This our half fiscal did current

to service platform our notwithstanding diversified second us industry revenues the in highest geographic market and achieve enabled the yearly However, history, our difficult environment. firm's

we Finance the quarter, recorded million versus revenues, last down year. $XXX in Corporate For X%

billion For best the the $X.XX the in Finance down but substantially year, fiscal year Corporate were year, second fiscal still of last history. firm's from revenues

be continues Our of a cities. tale Corporate business Finance two to

of this the On of new ever driven improve, remained continues size quarter than our year. engagements this geographic more time any fiscal more this the other any closed in year. the transactions in by of consistent quarters and investments hiring Europe, verticals to especially Overall, quality this talent, strong in us, previous expansion. and build-out with company's the and We than have geographies before. number in covering we positive side, fiscal history, sectors at and more industry quarter quarter managing The other firm's than directors industry

economic last leveraged second the fiscal period money this as performance. firm's we are outlook. find the restructuring business environment and XX% but same strong hired Fiscal in to the solutions. highest turning momentum or exist. very revenues hire strong no quarter history, in XXXX to as versus and revenues, companies we close uncertainty enter extended With that time something the easy achieved in global about and the in longer contributing and our year, the the resulted The financial rates million Restructuring Several markets current factors do companies to has restructuring debt challenging restructuring of lower pressure on government financial throughout previous companies but factors, hand, interest time maturity and markets up to Financial transactions and this up. to increasing business. were and a business tight low the management comments transaction. we in between liability The with $XXX last in quarter. are positively markets, are has us as versus letting pending conditions as million improving, are showing revenues financing to longer debt market time there walls in volatility include Similar On in time breadth down year is $XXX are These measured expected signs activity anticipation new our the continued in of markets, X% other in are complete XXXX year. headwinds results to combined to a the cautious close capital are of contribute companies putting my depth the quarters, with to of XXXX no

initial of quarterly engagements, pandemic. active are months of The new engagements engagements active transactions, and highs seen at associated not with closed the since potential number fees the Covad

long but is short-term will of able over some business our a of FVA, million for environment, the by banking a allow year extended diversified combination of an Fiscal current down restructuring experienced perform a segments factors a increased expressed quarterly should do likely, environment. The occurring having is same in term. most produced to impact environment $XX revenue segments to financial while grow negative banking million well, last fueled as quarter regulatory time. Financial FVA disruption believe previously, X% which business. challenging were other regional crisis, on as is FVA's but us in quite well However, Valuation service benefit segment were year year. this same a an FVA this Finance period offerings that for by the not the revenues, for headwinds record of and slightly $XXX they versus to enabled revenues Corporate the of Advisory as

strong experiencing new year is employee in first the the result is likely but decreasing to effort time and FVA will second complete engagements a having productivity. half FVA activity, of This half. overall than Finally, stronger business

Looking all the forward, XX April to continue managing new our to also favorable we X. X like by take a We for adding as advantage talent across of would promoted of congratulate this newly directors, effective hiring quarter market MDs globe.

acquisition continue On in ensuring we and be selective strategically. the fit front, culturally to both targets

employees support as us effort continue with our over I'll the that, we shareholders current to with like exceptional and market. X,XXX who turn I'd to year navigate in and confidence to our thank for an Finally, call a clients And the Lindsay. challenging

Lindsey Alley

were for below million for when to transactions Finance completed fiscal down Corporate the in but Revenues last this Scott. we compared the quarter, same quarter XXXX, the last a you, transactions X% XXX $XXX quarter, the closed high year. year. Thank in We period XXX same

fee fee last XX period transaction deals last strong and versus We Advisory, lower events a X% versus period year a to $XXX last slightly million We closed for quarter, last the revenues XXXX, the in same Valuation the quarter decrease revenues was the fiscal average quarter last same year, quarter for the Restructuring decrease were year quarter, to $XX lower. ended were year. quarter closed up had XX% the year. the In quarter ended transaction transactions compared performance quarter year on million XXX the versus slightly the in up business same Financial Our our XXXX. FR was the Financial environment. average a but XXX versus compared in during the slight a same challenging year. from fiscal fee the in for same

Turning to expenses.

quarter $XXX last million year. million for were for the expenses compensation the quarter versus adjusted fourth Our $XXX same

Our related certain deferred was adjustment $X.X only retention for million to acquisitions. payments

year ratio no XXXX Our quarter for the change target adjusted our expense to expense compensation fiscal compensation XX.X%. ratio. entered was fourth fiscal XX.X% for with of We our adjusted and

Our over year. period an increase million the the $X million for of quarter, adjusted were expenses same noncompensation last $XX

of for driven was by employee On than expenses. a the our timing noncompensation same fiscal of of employees Heading resulted continued Our This fourth on for pressure basis, which expense XXXX, last per upward rent in couple the versus faster $XX,XXX ratio non-compensation lower quarter. expense will likely the quarter result the for into quarter quarters, there expense was noncompensation this our expenses, technology last employee year. growing is noncompensation inflation. certain XX.X% $XX,XXX a quarter primarily expense ratio per information and in than

noncompensation we quarter, which of of amortization, adjusted in acquisition-related transaction. the was noncash the related our expenses, $X.X to GCA the out majority vast For million

benefit The expense globe. in cash significant an We $X.X of higher for income adjusted balances on $XXX,XXX quarter our the the income interest period income of expense, decreased in by last same adjusted year. and of versus other category to the million out one this Our $XXX,XXX a approximately an was related earnout of income of growth other acquisitions. approximately our for previous driven to our across and expense

of same the of one for adjusted million tax compared was benefit subsidiaries. out year. of effective release $X.X XX% to last tax rate, the rate in as foreign relating onetime for XX.X% adjusted quarter a allowance quarter Our to valuation of a the effective our We our GAAP

GAAP of in itself deferred Finally, the a the GAAP fiscal shares acquisition, reduction This adjustment X shares will relating XXXX reduced ratably GAAP over shares a diluted next with by quarter. our made policy years. the million $X.X fully fully diluted as approximately for shares retention accordance to in we and which GCA result issued the reverse

diluted same as presenting if diluted adjusting are shares fully not fully we we have. result, always way we a this As count and nonrecurring in the it share adjusted change our had out are occurred,

balance Turning to sheet. the

four count will take sheet diluted market. continue year share million in end, XXXX hiring issued. and part invest a of to conservative flexibility did significant securities. is this will approximately of cash of we to year November. as from cash balance approach fiscal in our compensation want bonuses month this repurchases portion as equivalents date we a had and As for investment not for cover to of acquisition into share quarter opportunities to We Shares period repurchase paid the A our accrued advantage and shares quarter, and but the $XXX the XXXX of fully we again unpaid issued over earmarked and be take fiscal the any that unrestricted

for an per June. paid Finally, increase open With approved line we $X.XX dividend will the the operator, share can the quarterly that, dividend The in from $X.XX. Board be questions. in to

Operator

[Operator Instructions] a We Brennan Hawken with UBS. the from question have do of line

Brennan Hawken

a an business for unchanged environment way challenging from if and while the wanted it's about what we a we end base, environment. can challenging of a I certainly, think we've improve? been living because remains environment what a different. we've -- quarter corporate been assume no obviously just revenue to that the And does finance really If to reasonable was not the March either XXXX So brought now, about do seeing if think finance is in fiscal environment corporate the

Scott Beiser

my been take we've new same continues least level been longer line little or I you much to we've quarterly for saying things think like. good we'd results, what to does across really, even comments And didn't level, the that, business look firm part, But similar activity year, pretty a seem variability. over environment. seen just market has at like in the considering have whether the it that thing the finish financial earlier or a at most getting fact, corporate than for the historically the just

And if 'XX I approximation the not similar your to a so markets likely bad way sitting that's yes, fair response having 'XX really think question, results fiscal change, don't versus and today. to a assume here in a

Brennan Hawken

that rates map. indicated expectation little be would year fiscal different your you are than believe kind all I Lindsay, over a faster inflation to of coming But grow And inflation. the

line to So a it as inflation or coming think upper single-digit the to in mid- should it just fair grower is that metric? we calibrate particular about fiscal a year, to like

Lindsey Alley

X% estate, continued going No, I I better I'll up bit a of going on based are quite or And investment mean you. to happen think think X% rest I the X% technology, continued this But I'd unclear do want sort think you purposely consider or consider to inflation and might investment is based items line grow in in this year. is those whether information what of year. to what than inflation. say our leave inflation on you it ambiguous, to Brennan. real It that

Brennan Hawken

I believe, one, manifest. could tailwind expect tougher then just a last regulatory you And explain that SBA. you environment for a indicated provide how Scott, Could that bank you'd to

Scott Beiser

that the probably going to of help more requires be in call FVA a society, generally society seem sheets the, depository more it on will some the of more be living. investors would what and taxing institution, different All And transparency. happened kind and things by being with regulations. some more FVA me generally that more from probably equal, do what's more a it, benefits those there There's long to I'll society regulated term, in things balance a does over what's requests for institutions, just

Operator

next Morgan Stanley. Kenny with Our is Ryan question from

Ryan Kenny

Wondering on financing M&A enough to out of financing impactful and is Tyler backlog? if deals the deals deal Are is the the you could expand a how take or pending outlook. conditions on headwind it majority, impacting few of a the

Scott Beiser

availability more capital. our really since private has throughout more think we in it, whole, time of mid-cap call period, I been deals this deals, I'll are the there tend space, to do year

Costs notwithstanding, There buyers, we boards, markets this complexities, we get truly it's can the fewer that's describe of longer that believe the a just for at little the So in questions open the of asking it's are questions believe we availability asking working capital. not deals participants on financing we're and no that different at as and get financing more higher. taking are not lenders, lack consultants, more probably for the to closing. marketplace, deals done a that to there causing things juncture. before that's they not whether are But is least do are volatility incremental but

Ryan Kenny

the planning time? deals fiscal on quarter volatility the on close up have in then to to impact we're then that end the quarter, closing failures closures those And fourth largely applied did to large and this related bank any or deal

Scott Beiser

rates make last what's in I the paralyzed month, weeks. think had I improvement little get little then until March, probably think then concerns. I a a February, and of could better And of got two did And at a just world interest if concerned number a marketplace. month more it be up industry January argue down could the people in of And ticked you perked you really look round at happening things a for people slightly. the about another weeks, by an things think, of least seemed then couple to deals and little. assessment we've an maybe got,

so closed. of And are think those out deals have and some some I are still that not yes, there gotten pushed

Operator

KBW. Our Matt line from the next question of is with Moon

Matt Moon

and the an that rather guys relatively a your publicly Several or extremely as well. currently. And profile kind but environment environment you recruiting guys and backdrop expect strong after you into describe a the should of of momentum assuming describe the traded understand I revenue peers to outlined same recruiting agree of aren't necessarily strong have kind appears the be the curious going you which of lean magnitude environment to we you strong Obviously, for how you the of crops, to with characterization today here? guys recurring

Scott Beiser

of people hire say behind internally x number that. posted in to or ahead we or that our never want targets We've way

always or some available. to of industry where expand by breadth we're you available think looking than skill it's sometimes an or more talent always people that looking whether geography and others. are We're our for the bench set or sector view subsector and I

hire, very conditions greater lot we've our we Houlihan think, yes, somewhat hire thinking would we've recruiting some about current place, terms that's I it's but And in lock MDs. added to hire tasteful It's what of in getting want effectively in of which I say else. We coming and many people leave to the we we a than new anywhere also people. probably But quarters still whether had, we it's challenges how timing. that recent I there's think to announced their been in environment. a X better or

Matt Moon

impacts those love of And maybe those Ryan's proportion evolved hear your down be what But also and on then implications for for maybe to assets to could business from views post the of those events your the on sector, of my be lines, pre higher of more comments and of cetera. perceive kind follow-up, that high-quality on well? the just restructuring specifically banks, post-CV banking the whether road, potential Kind kind off the and be on piggybacking environment. would when commercial curious et business thoughts that operating you kind just maybe a as how with liquid your help of for medium-term

Scott Beiser

Well, from restructuring side a -- I'll the take first.

of a There's over 'XX As a certain 'XX, will we've give just to situation. wouldn't said, or some of happening it unique believe the that fuel probably restructuring what's work crisis describe extra out, and we to little is do tail being different driven reasons is but by a COVID. some long recent banking business issues dramatically of and recent we exhibiting that not the just because fundamental bit depository situation we're what that the time like in the here today environment banking adds help think I

many that that probably to opportunistic the and the banks. some by in hole and for on may trend jolt XX you On going front, the think the mid a provide little things uncertainty uncertainty long towards the probably term, a with not, commercial left going not be capital another will think who going sized capital midsized might banking survive commercial lenders little deals, it's mid-market has regarding more raising I of you been again, of to skew seeing once the years associated fill be probably providers debt system, to be, have and of anyways, up whenever funds will start I for upward, loans or get a new who of in nontraditional freeze but it's some M&A

Operator

with Next from is question Securities. JMP Devin Ryan

Devin Ryan

are go the on and back levels back the at It sounds to you firm's restructuring commentary. experienced and to pandemic, want kind I of follow look engagements up the like So in over restructuring, period, had bit than million and there that revenues higher in that. the and rate were quite annualized was you of couple there actually quarters a well in a $XXX where

whether you you're I back restructuring out to take looks for that you So the a maybe today, if like pandemic. look of here, think that coming like in given and guys wall maturity those like if the plus slowdown pipeline to revenues already kind to you on think million about couple we're and were then back similar seeing that what an the what does just levels? get And step with just can bit kind pencil of $XXX that something us based further land a little economic to

Scott Beiser

So a that I all total you think tells leverage that. do least global size the size market, indebtedness, size time, previous the pandemic, peaks. potentially the of grow and of skill relatively said a their was The the frame total better set in couple of what total what we think a ways crisis. our than internal occurred short team, we've to truly of had maturity and period that, total at Having can size the I of which was of in total

restructuring be, to call gets shortened. effectuate average in normal peers business and into it just ourselves to I'll quickly, had time longer the to and rather so of of is get done and our versus coming a a our Today, we're the expecting basis. I to amount more business last it And very and in going peers it, think is a new period, crisis going lot came ourselves to on short-term a

maybe better quarter just and it's on we're the cycle, year, restructuring of than particular determine necessarily or probably to We And what duration really a record. whether the we seen what's new today to we'll trying we've total it's ever think past. at and marketplace really for look this think tend not been. it's we than in achieve bigger So a any bigger it

Devin Ryan

kind just finance market It get kind is getting to issue of sellers the state markets. flavor bit the Follow more a experience, in buyers your of the and more little and or the think corporate mandates of is buyers closer of you what whether high. the sounds of today M&A to long then start conviction and buyers forward? move get of of on just in love just or And around are like the hesitant incredibly takes to because still stability it uncertainty? number how for do

of have sellers have not potentially you getting just point that to asset an obviously, So we're completion. to but sell,

So love on I color just little get a that. to

Scott Beiser

a aligned. mean get and or to six I it find takes get XX-month what historically, might is more period sellers you anywhere to buyers in

expand this think you've new I and in they it the get a little started issue initially side. war it's what's US maybe effect staring limit couldn't or the debt then Probably the maybe rates ripple a time at particular with got is that Ukraine, And has. with. there. out more And got with some people in been all next rapid technology the grapple in to that time interest what on every measures the there's increase happen us or overvaluation while whether then not maybe period, going aligned, they

it there's close. I for and always will leeway more longer ask there of hiccup. few to to for questions, these deals with time or issues causes some be buyers are sellers And period slowly are issue take lenders more a There causing buyers new that the enough wait think are a but more feels aligned. that still new getting a little to So seems it that a surely and out to

Devin Ryan

need With there the Just on more that and some what's just become on here capital complicated with standards? environment with backdrop in more that one providers of capital last tighter going more is folks has capital markets capital connect help the capital traditional obviously obviously just or opportunities where an tightening one disintermediate that and in we're to Or today, quick capital are business. are providers, business? scarce

Scott Beiser

business, the the some long little Those and just business. providing capital headwinds lenders markets into we've comment anybody similar amount Short the a a who term, last absolute is on are given of the capital like think couple a that it think is that financing mid recession. are to everybody more a is get deal quarters. and a going are lenders potentials away tend to much funds, less shift over 'XX that to there of that. to out wealth more capital. sovereign cetera, cautious to I to and the offices, private because of work So I the be just traditional deploying positive for direct et placement and from If more of happened of term, use what in probably commercial family intermediaries 'XX, actually it's bank amount to this opportunity those find in difficult

the happen in So thing market in capital our else the markets that's long months, I think weeks, going will potentially this There's to companies business. agents haul, acting what's likely actually same capital. or business for quarters happened and assisting still and is over good activity probably rough be the finding some But ahead. debt anyone us as is in

Operator

Yaro from Goldman a have question with James Sachs. We

James Yaro

just they deploy reengaging? Maybe how base, dialogues that in we sponsor specifically How think client with the up to can you you're you close talk to having macro the And that Corporate maybe need challenging dry are about today weighing just are backdrop? business. powder do the Finance the

Scott Beiser

in regards, many sponsors we've many Well, in as relevant almost time financial had pitches from opportunities we've on had period. any

active. transactions, LPs, et the eventually focused return needing So they do eventually are capital on to to are cetera. They

best. run prepared decide wait until a of be, it situation a they Lindsay or pitch in they saying is who occurs. to As let's I lock happening, get the tomorrow, handle can a instead process to event still will some can our though, is of week want a what and of to hire, remarks, and mentioned or some want a well, think might they month that a But firm you quarter the started, up lot

not these tomorrow. hired the get to but statistics market So getting of you out get necessarily

closer So XX like ago. safe maybe feeling it it's and they out to or cooling deals, where think getting sponsor I do want months just go out to to financial it's was community need the closer to and

James Yaro

we speak the And opportunities versus, has months thinking versus relative to are as acquisition attractiveness the about let's this X point? the could you And at how ago? out how hiring think then evolved you buying about opportunity say, of set there,

Lindsey Alley

acquisition start and slightly with firms like in become it's let's little a say, general the heat environment period is whether more better where activity bit boutique or So got the weaker to an pricing acquisitions. Look, a "Enough up tends of you've time maybe markets bit, attractive, enough. an extended this,

I better happens. a larger under think it much umbrella next would be time this

tend it is the ago ago, do but type to activity. cautious say we do. or margin, higher X we it maybe I'd we was the of months a that terms see increased than So acquisitions on year in of remain

dating are an We it selective That change this. doesn't as in I've like environment a described long process.

it quickly as it think, a ramp up as doesn't environment. might -- we So but don't you is attractive more

As Scott there mentioned, an to front, this. on are like some the economy benefits hiring

I that reasons becomes some our both is flexibility sheet to down, berms, to to are On talent the firms of the is, think there we've through of And dislocation hiring advantage maintain of provide layoffs, opportunities front, balance there of is and some us. available does one with closing going out chosen those. take business, it whatever

or what said. see the of if acquisition these and a have we benefit I that's there so think benefit tend do in on hiring don't inconsistent some peers with types environments of silver to And lining a side to the side. our is

Operator

from Steven is question next Chubak Wolfe with Our Research.

Steven Chubak

one SCA. does is, half, point just first alluded second relative to year, to you the we year remarks, that ramp Maybe is just the starting off clarify to? think the understand with to kick off to off about to for last should weaker first trajectory relative your just jumping that how FVA that the what the half or trying on I half want earlier

Lindsey Alley

do a sort was this quarter that look of and Look as kind last of bet starting is I seasonality at in it use business. think best The this muted quarter seasonality year. some that your have to is point. and We

today, point off best based your to is So that couple look we're is a our take jumping or starting seeing sort I think the at off of commentary on quarters. point last what of

Steven Chubak

business. And nice provide Maybe the the how backdrop just earlier Scott, clarifying about question. follow-up FVA to just Brian's one a tailwind regulatory a just can for question to

of I likely that still regulatory bank-specific losses debt, bit the issues changes the like benefit banks and many a standards, further. might not things being are to more the unpack are in like tougher to hoping quite reflected securities sure are As was little liquidity specific very valuable very getting how introduced capital, are broadly FVA you business understand

Scott Beiser

as this institution, along as evolving. regulation. assisted of ways, agencies put an is all do different have, in So we those But governmental they

the institutions an have. possible and put the larger those financial others had old They preparing one work like at have institutions that's we components of increasing it's looked have We them in either back ourselves very times wills the group or together, to institutions will you that to wells depository So help firms go that angle that. do do of community to living with the it. at living to that

almost And benefit transparency seen ever we a and and call increased of any arena. financial could the valuation you and in the advisory portfolio near I valuation investments the place making by actually different or work. firms. as comments the on kind we've what's increased whether incremental more That kinds any behalf, do and say, institutions, and held some If stakeholders stakeholders does what's valuation in we and our desire in that's LPs is metrics the think be are of institutions of regulation their then on I should is really that some behalf could to want these of terms GP that have of LPs time and something almost frequency they

Operator

a Global. Jim Mitchell with Seaport from And question we have

Jim Mitchell

a pretty mentioned investments a I for think think you've the you Europe lot function Maybe being little that's you Lindsay, there market you that first, commentary than guys. payoff I Is want understand of on I maybe just been strong simply of a something sure market to around better Europe. make in or mentioned I bit the the middle US? making, the that is about

Lindsey Alley

Our comments really is were US cetera. versus stronger not et than Asia Europe Pacific, whether the

our of Europe training, and it recognition is is through and versus either think in comment the reputation hiring, a greatly of more we've brand ago. it acquisitions I where was growing of a enhanced et cetera, years today made where was our through couple investments historical as or

hired they community the was in it, financial get I'll comment have, really on reputation there, out our the what quality to just or in doing. we marketplace getting at firm we're that So meaningfully sponsor due the engagements the the of our better changes a handful of necessarily call of we quality than ago of than types importance Europe deals is of the, were that more our that the assignments firm years

Jim Mitchell

Is about you're are potentially however put of don't terms to like here? doubling or in the How we think do traction. your the US? innings from a you you you'd in How know size So it out if Europe? can gaining about build relative I there feel we it that, in think do to -- opportunity

Lindsey Alley

the put room Scott started out in Europe. your and building just debate that would industry extraordinary fourth a several grow. the while have inning. to I I question. are it an we're mean, having listening are to in areas verticals I we we There have

innings, part and the in in of getting so we're the the to we're first we really we're think payoff starting few tough really the started. past reputation, I see just and terms think was And We're in early stages. what

the about over both think our optimistic growth very So Europe decade. I next in we're

Jim Mitchell

in maybe stability into but And one the greater investing appreciate hiring, just you're revenue model, are leaning you've on got estate, inflation. the Certainly you tech, expenses. real of

if planned your a quite -- to do and flex comp off bit some don't more to some do fall we ability the is a -- ratio? commitment flex there revenues is in ability than there How bit go of your So to expenses expected? think things about sort as

Lindsey Alley

look, ability it on we comp flex to. I to want you unlimited So mean, if ratio, the know, as we have

we ratio for cycles been firm. compensation we've since through here. I've And a been as the been at long I I've tight maintained several as have think

elements the to way structured. how employees. which at to business the is stock to some our There's it structural it So is we hire with respect with we to employees provide respect much terms

have some so has. there we And flexibility think not everyone that we

do a I significant And model to the that We have to situation. flex it mean had it. we so we haven't do years. a need If we the to don't ratio in that have we flexibility live compensation just over by.

still we And ratio in feel done an maintain can tight like range because it our very we in we've a before. that so environment comp comfortable this,

Operator

Worthington question JPMorgan. have with a Ken we And from

Unidentified Analyst

Ken. Madeline on This is for

having businesses expectations would quarter. function one just a quick this indicative as clients had there of as into an color across of appreciated dislocations most you're or size? smaller Just of Is a fees per lower with your Like on well event that deal go pricing any any be environment. we as improving

Lindsey Alley

So it's not a trend.

the see transaction, result to and quarterly in closing. primarily Finance average I of of the the our Corporate our nature a transactions tends business restructuring fees think be on per this our we basis,

run, restructuring, when what has over average we trends. size of sizes economy, in read short-term might say, don't trends finance weaker versus will sizes But you it's dislocation in see a Restructuring, Corporate that I too on and have no in average tend you to fee tend we see We long average So to periods simply you're no when dynamic time fees our and increased. restructuring average corporate have steadily is measure. and decrease. do to Finance in increase because transaction the transaction average the in a to quarterly transaction basis a market, short but

Operator

And this at ahead. call there time. go to no further turn the Beiser. questions Please I'll back Scott are

Scott Beiser

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

Operator

that thank you participation, disconnect ask We the call please concludes lines. That today. for your your you for

Houlihan Lokey (HLI) 9 May 232023 Q4 Earnings call transcript