HLI - Earnings call 3 2024 | Houlihan Lokey, Inc.

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Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to Houlihan Lokey's Third Quarter Fiscal Year 2024 Earnings Conference Call. [Operator Instructions] Please note that this conference call is being recorded today, February 1, 2024.

I'll now turn the call over to the company.

Charles Yamarone

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

performance. These expect, we similar by and when Before future therefore, to that such are subject use include statements. cause of remind are results will phrases, which risks statements, of not will, need These exercise materially we words interpreting today formal forward-looking discussion anticipate, are everyone and statements other to our numerous on them. we uncertainties actual caution guarantees forward-looking begin relying you should should expect, remarks, could that and from or the to differ usually as identified what

We review regulatory financial is to of detailed operating ended of recent filed the for our when the for filings SEC. We that with condition. December the you encourage results discussion XX, quarter it SEC our future a XXXX, could filings, to impact including more risks Form XX-Q and the refer all our investors

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

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

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

Scott Beiser

XXXX We up share and were adjusted to million earnings X% of you, the Welcome, the same fiscal earnings per with revenues year. third per $XXX quarter were earnings adjusted Revenues up everyone, to ended XX%, and of quarter last call. Christopher. share quarter Thank our $X.XX. compared

quarter our quarter consecutive revenue in fiscal in when their third revenue X fiscal businesses the We've $XXX increases, years. continued million fiscal our X% third of X X and Our with a quarter increase for now produced quarterly year, reported fiscal enter reported business our highest momentum. quarter fiscal first X results segments all our to compared All second fourth quarter. quarters with

This Corporate to firm, announced we banking MDs acquisition Advisors, X IT new adding previously closed our of Finance Mile our an business services X business. quarter, investment

also our directs the funds We acquisition, Triago, with completion group few Upon basis. integrated we on offering clients and platforms fully a acquisition advisory one GP primary, will of global secondary, this announced investment private the pending the services banking a a of business, firm. believe of private advisory funds be

our hired we Finance and these acquisitions, and managing directors In addition in quarter. Advisory Financial Valuation to Corporate new X business this

business Our $XXX Finance for in million revenues quarter. produced Corporate the

activity as continues overall closing while a and new year. we business in of directors calendar business enter managing our New new attracting strong, engagements confidence to remains active improve the

below steady throughout still year. same steady continued to the be of we in several improvements when shown are for periods believe Corporate improvement M&A the While signs previous Finance our that expect to calendar see in what market market normal we well we Consequently, has business compared year months, conditions. considered would the the

has Two leading to been in markets capital in of strength year-to-date positive are recent a M&A market Historically, business our capital our the markets results of strength conditions. business indicator improved technology and sector. conditions improving signs the market

backlog and last industry X is transaction business result in years across of experienced Additionally, declines calendar closings new of leading the our XXXX. and technology revenue of weak a very increase component a business, into which largest experienced has geographies the fundamentals, one meaningful a as significant over

Our very COVID remains the for crisis. quarterly Restructuring business restructuring The produced $XXX Financial environment since of strong. highest revenues the million, business

activity business has all U.S. in since quarter, geographies. in strength the Restructuring New are last improved Financial across and now seeing we

expect to Financial the when we elevated be our remain at the everyone that timing based results we future, remind quarterly for levels Restructuring restructuring close. While on lumpy business our transactions certain can of foreseeable

year. Financial trend only to similar a in last in quarterly the Advisory and is shows quarterly Valuation results, above produced improvements This $XX consistent Finance, but revenues. million Corporate slightly over quarter's fiscal

service market-neutral our results to we us new expand as lines globally, Our strong enabling add new business geographies. clients show continue FVA to into

our the tied M&A lag markets business, M&A to eventually expect service catch slightly we to Our but to them continue lines up.

today's I would M&A I've with of calendar celebrating X those on Houlihan transactions last Lokey ranked accolades success was announced investment the all volume. for for similar X by like segments to #X banking In comments the the based end our firm years. to business globally transaction XXXX,

financial all last terms again both active measured And we as are in as years. #X when We volume. banking XX and value opinion restructuring firm ranked the investment most ranked the of over fairness globally finally, globally transactions, for provider the

become every a our and thank achieve trusted worldwide. banking continued you who adviser support accolades, cycles, our all at employee a in clients these Lokey to to leader and to investors the who, have investment Houlihan Congratulations worked to to our efforts throughout hard to

Lindsey. call And with turn over to that, the I'll

J. Alley

for you, quarter, XXX transactions were to $XXX in same XXX this quarter X% closed year. same period year. the Corporate last to Scott. We million in the Thank Finance compared when the Revenues last quarter up compared

quarter Although our transaction the year. the our for decreased, higher count transaction fee average same was versus quarter last

Valuation last period during from last In the for XXX year, We transactions period same to Financial the deals quarter year. the same compared $XXX in quarter, compared We versus last a XX were average XXX X% revenues the same our XX in on Restructuring million the in quarter, the same and to period increased. had increase fee closed revenues year. fee million and $XX last the period a for the were XX% transaction year. Advisory, increase events quarter Financial closed

expenses. to Turning

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

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

for ratio XXXX fiscal long-term XX.X%. expense expense XXXX the our We of adjusted maintain compensation adjusted quarter do ratio. in was XX.X% third compensation both and target for expect fiscal to Our our

On ratio our million $XX,XXX with compared expense noncompensation adjusted last the last the for We second year. quarter, expenses over resulted were expenses XX.X% of quarter adjusted in noncompensation seasonality adjusted adjusted the for per period quarter our of to Our increase this expense $XX,XXX see first employee modestly some noncompensation This an noncompensation the than half $XX in the year. noncompensation same XX.X% for same last the same $XX for versus an quarter million adjusted year. basis, an expense of quarter higher the a was half. typically ratio

that expect continue in trend our We final to quarter fiscal this year.

million of structure, to fiscal expenses associated amortization acquisition, pertaining our Solo. the $X.X first close noncash quarter during and million $X.X expected $X.X Project primarily we noncompensation related out we to in which For quarter, acquisition-related the XXXX, Triago of streamlining our global organizational with our million acquisition-related fees for costs, as adjusted refer to which is to professional

we multiple with acquisitions enough Regarding our XXXX. become public the we most to entities has acquired acquisition legal reduce we August and GCA, to since globally we entities. legal XX Project decided have number burdensome our have simplify went and of that Since of structure of And costly the streamline Solo, these our costs. acquisitions, completed operations legal in

as adjust this XXXX which out tax and project we last year in expect to expense, result to fiscal to plan We through nonrecurring. charges will and both noncompensation

Our of increase by adjusted other income the the and for versus was quarter generated same $X.X income approximately million in an this expense category of interest year. period income improvement investment income last to in to million our due increased The $X primarily approximately securities. in

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

are federal the and a for tax as Our April and rate to XX% in effective our and and operations. up increased tax in XX%. of between to Overall, increased XX%, taxes tax in year-over-year Due also effective increase state for the X, taxes XX% due year-to-date our foreign rate mix of between filed XXXX. range returns we effective U.K. to and U.K. increasing long-term to increased the from rate, from has slightly corporate result increasing foreign tax the XX% during quarter increase tax period for the our to due corporate our XX% revenues adjustments the

Turning to sheet. the balance

shares. the of past end, quarter $XXX any and of did In securities. unrestricted cash As we million investment had equivalents repurchase not quarter, we approximately this and

in repurchases a able take to take to prioritizing hiring balance continue conservative advantage and share to strength this of be and we as market. flexibility sheet approach acquisition We to opportunities are

open with the And operator, line that, can questions. we for

Operator

first line our And of Worthington Ken with the comes [Operator from Instructions] JPMorgan. question

Kenneth Worthington

And I MD been this think, the It's to my quarter. since we've think, restructuring, sort you've correct, happened here? seen count, a not on Maybe first is public XX data assuming from decline, fell company. of XX I what a

Scott Beiser

We our our that built today, number through the we far environment. doing and restructuring historically healthy oil had through industry in work group that and were that the more people, distressed over distress environment believe, are what think took of than call was And and I'll doing oil a people of sector, gas the which the gas on back on years.

those moved of Corporate the Finance. we category people So into

on was really these shift people at people, firm. internal not was juncture It more than of focusing categorizing activities. Restructuring Corporate Finance Financial activities it So this departures leaving the just of an

J. Alley

of And the be the just performed. revenue will just of forward profile change. were follow to work X total which versus personnel. areas This MDs, in of going up revenues and is a movement there don't that, in Corporate the a is The booked Finance on restructuring

Kenneth Worthington

Awesome. Okay.

there. You even got the question follow-up

Okay.

different least of companies are has loan both my for smaller U.S., financings, in terms hearing up. an of deals? other What larger versus so follow-up, I'm and or sort I you non-U.S. talk seeing in of market, at For guess, is improving smaller particular we like the it sounds and in it U.S. sort to syndicated less more the financing, of opened Or back deals are deal or terms right throughout If financing, improvement then so region? it in proportional is any And geographies? in and

Scott Beiser

open questions. transactions So a of than larger we've to your sized seen, deals. responses mid-market think, several syndicated for more One, for the of market couple least quarters, an I at

U.S. has issue. is So It the Asia. much or part that of the leading healthier way. probably think still do parts than of a economy, in is environment broader-based size capital a a Europe it also I

but quarter, U.S. quarter So at the by at I'd least strength and some month slowly increased I'd versus things But do see some of opening up the an month surely XXXX. Europe by say, calendar or are we places. in pace, say during increased other

Operator

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

Alexander Jenkins

They've sponsors. Scott really for been calendar the Devin. on Jenkins last in guess their think, since and stepping of Lindsey, to this just is had the XXXX. I for year, slowest Alex absent I share from announcements, start market

And from So what is now? comparing that from tone the clients? getting the sponsors tone that to how is your you're corporate right

Scott Beiser

correct, period. this tougher has during total towards of You're importance financials, the obviously, or number percentage the weighed sponsors more versus end strategics, strategic in time

We bit. say bit. are financial a are seeing happening. One rates more down things tightened activity is Spreads I'd come of couple a a in have have sponsors. interest up

every variety them we has quarter for will to you of time and month do transactions. I doing get a run been activity. some, each see might, continue think I more equity start private if that into dialogue. And guess, there that eventual considering They reasons, hibernation to or lines,

getting conversations from last say closed sponsor still several but increasing over we are the frame normal We last been time has to is quarters. over decade, to the still been what getting might business longer financial the the environment has hired, than finding

Alexander Jenkins

Okay. Great. then follow-up. And just one

on your touched remarks. in this You of prepared kind

see as side, are the theory, activity build which move do M&A you more a conditions you starting in Or create lot like coil recovery pent-up the business? spring slow of On of could, even to if a a favorable? seeing forward, remain for a

Scott Beiser

is But think think pace. still then variety demand once I'd than we're probably increasing more is swing and say some at, of we gets answer as I somewhere downwards things robust would back needed history do level, there's short-term a a that, at at are pent-up an between. in eventually, accomplished not normal building you reasons, again. that level. of you'll in normal show it, in a a where don't something we're a go We The basis. -- for lot coiled And described spring to

through I calendar then of sure from it's have slow, things word way saw summer the I'm so coiled the not And been probably not a exactly XXXX. improving. XXXX all to spring we to expect see would ready pounce. use don't we what but And

Operator

Our UBS. of next Brennan question comes from the Hawken line with

Brennan Hawken

guys of Corporate like you to been looks range million it as this million. $XXX about So as in $XXX goes, of revenue sort have far Finance

in to the -- This we the little quarter seems around be And that. a though commentary improving. better came it as than outlook seems

we about how it we Finance? long would as where early are a calling place environment thinking within that? to to in is trajectory a too as remains look So what be like start we Or growth can constructive, -- to at the Corporate begin grow

Scott Beiser

headwinds What we're say is step normal and deals We time is than there think per to make is the close of that back we'd to are which shrink in net to percentage close. that of happen. banker, increase which that X, to number levels, increase the tailwinds get the opportunities more to

environment. we in So think do escalating growing and it's a

does take it would trajectory get we're or like, operating look to year what buoyant have but really we level question and the at that more will couple we speed the than were to do last of normal X. think a last think quarters I that is we

Brennan Hawken

And that about Fin. it. then Corporate X stable fiscal Got Corp expectation exclusive guys in within into stability had that believe, is those expectation be that energy Did you the when for recategorization? MD indicated Or of I to include the the headcount, we expected bankers pretty -- was previously, Finance? that year moving -- oil of think

Scott Beiser

And some Corporate maybe I'm we think we we we we ago. we the mentioned bankers way do control sure quarters that to not couple said Finance that plan sliced don't specific approximately count in what mean acquisitions it. always when I of XXX of client-facing we the is this in have timing I a those.

believe been we environment. think normal we've I in a hiring

and small about massively slowed amount nor I a change didn't going not increased hiring, we relatively there our out. that's fiscal hiring would But that, least pan to for all departures then variety think be I upon call at percentage but kind our our that still been normal the oil We totality of a, through down a based we of Finance's said, in of 'XX, like for reasons. And while, a of when couple Finance, headcount much specific in it, not we and Corporate X have we quarters or a have while the mentioned is I where talking out of and percentage I'd stuff a of don't team included just the penciled I'd have internally ago really the I have a potential gas thought move Lindsey including, rounding some Corporate people size. we say, in still ultimately, of said think

Brennan Hawken

wasn't Okay. I there. to trying nitpick

Just curious.

Operator

comes of Research. Chubak question next Steven Our with Wolfe from the line

Brendan O'Brien

O'Brien This in Brendan for Steven. filling is

was the to rate more also, So to if from just some levels. activity whether hearing not some I any great. And I at seeing The your activity guess similar restructuring or on of traditional you're restructuring side as be to sense the would start on a impact commentary the want you that whether there been management on just liability we've outlook. on get moment, to expect color provide have would peers. material what you could to cuts or

Scott Beiser

still lot be at some a fix the going to opening rates, refinancings, and to many EBITDA. we in the some see and I'll playing are refinancing due probably years. And balance we cetera, level business. and take over much marketplaces are think some to in solve that it's these a financing go elevated for we're where of so difference said more can substantial about it people for you take run of at you think intervention sheet an completely, doesn't several and catch-up companies still then the of Having slowdown a shrinkage This not and the being about the time today be did in mode necessarily interest part, governmental less while is up better why that's bit some equal, distress that, second. still All while last things companies. able more is deteriorating not their to of we are the economy into have gets companies' as first et and the higher Lindsey, is And better do as things will it kind interest down, restructuring rates level take this will to period, financial that's problem for call crisis some it, going performance a typical, problem. financial

J. Alley

a that liability walls enough since I continues have have there an what management, been in versus early expect to our foreseeable of it time think liability have was It's the companies future. characteristics on role And discussions for Recession place business that maturity crisis the where runway. with resulted a economy Great XXXX, early that we the the respect management a to play in to The those saw in restructuring an COVID in relatively and the important out or are impact of continue long to economy. in long and like in scenario sort immediate given

just has will continue role. characteristics, to an important these So given liability and management play

Brendan O'Brien

That's color. my wanted I touch to the Triago follow-up, for acquisition. on And great guess I just

Given on the like a it for materiality feel revenues it it didn't have meet near doesn't the term. significant disclosure, in impact the threshold will

However, platform. into plugged synergies your once coverage realize it it's like could sponsor seem you significant does

quickly you is your opportunity the to So get just believe revenues could become sense meaningful to a I growth to what want and this as there. how a contributor business

Scott Beiser

certain cetera. not And enough et those advising we and in we it, them. for recognize recognize of times, the global components it's think LPs different what private part times at finance of We We at can a felt an GPs we as side, but of business. always do are We our call had we there it's that, we'll some directs, strengths call important in categories, them, and clients.

with really, I'd we And connecting and over some for and decent and continue years. of there's you've that already be what it, think to say will in and hundreds to a will good do work we We a some larger have much adding acquisitions different we've a coverage provisioning part growing of Since point our we as that of capital and so think call LPs, the efforts. hundreds can reasons, done. coming platform very had, GPs know clients whole, really the sponsor amount will really a hirings mentioned, we we we be financial

Operator

with Our next the from of line Sachs. comes Goldman James question Yaro

James Yaro

what this to just the just perspective Maybe would for key given to you here you it on be see good could the quickly news recovery useful as speak so much M&A risks I to that. your at point XXXX. thought get there's

Scott Beiser

So negative news point with forward. news that I'll might the that a potential what positive be. see But that we comment I'd I'd control out impact the have more couple on than we start do it, call going over no

just about and economy talk on point they would expand Europe where the going and the X what I'd would geopolitical could they Middle be and parts in and X other out impact environment go specifically they if wars I on have of First, the there and the East mention.

the will I that's elections, we suspect to things. think closer regardless business are down I or at get client regarding thing is impacting base, we expecting, is yet. for always of they're do I it closer some get that we that to at head and X. And the before mention see it. And not their U.S. summertime, close outcome might the have don't third closer our a moment, have is I'd and think peak uncertainty are point likely there's going some feel X how goes, they the do to wait we better while X interest to level, we'll you'll want and as downward back neither as clientele just to to going elections. rates, to believe hit get least for

probably but Those rate who've us years, we seen will more XX of business it, mention. interest So couple what might an for to for it's would argue akin a things be environment higher XX, it's rate the I XX, over, in we've of you years, the living those interest would XX a been environment be that, seen. call last in we've than

James Yaro

helpful. really That's Okay.

the Just one for you, noncomp Lindsey, on just expenses.

You of should in higher did fiscal Should expect second year. talk outlook could the fiscal we half those. into you continue years? about the remain them Maybe longer-term to just subsequent to to the for speak how rise they

J. Alley

mean answer yes. quick I the is

across We have measured think did rent, categories, don't inflation the fees. next believe a TM&E, continue experience major We more I bit year. that's do professional see might I going of increase there. you bit quite to away. in so a little in storm think bit in a rent had calls. previous pressure rent, you of year, we've I investments of offices on terms significant mentioned as this movement and saw a of increases We and perfect

on what significant on probably to year. return growth. see But insight of And bit see 'XX expect yes, some hangover to expect to COVID. you a inflation might as should more we But next I'd continue increases think from probably work I You closer pressure noncomp on like. a little TM&E little in kind fiscal to say, of see it, a next the quarter, to look do bit give our I'll versus

Operator

with from of next question Our the Kenny Morgan Stanley. Ryan comes line

Ryan Kenny

So about to group. close, to close volumes I shrinking been hearing levers time the the of we've interesting one the from was being lags normalize and earlier around time to M&A thought comment the peer and

all? you color there. could at seeing So And those wondering time lags are the that How to more you you are mitigating do close? if shrink signs give any

Scott Beiser

time It than have Ultimately, of forces may that what so a you don't that structure, taken if of don't talked than opportunity more we've to I kind think to more the robust the get potential bid you right most concern think has this or do bankers don't more buyers the from close you I or have days than it in the, a gogo I of more in more and calendar seller's XXXX, and market much a XXXX flipped balanced, to market. XXXX, more lender's a seller see borrower that necessarily shrink do. or much buyer's borrowers sellers winning it's frames a the guess, once auction of happens, with time about provide you you side but again. away say you an I'd to and the outside was where some competitor. And some to not that And then truly has moment a frame flipped at when time market market. inside or and borrower's not lenders and can gotten point start It a is, of fear more that clearly capital the will quite for probably side.

Ryan Kenny

you And feel more a of do that's like deal midsized phenomenon?

Scott Beiser

mean have regulations of I into both. the run we deals et issue that cap cetera. mega don't antitrust, some very It's large also and

So in that governmental I it's not our wouldn't slowing call down. it issues case, things are --

bid-ask just call more it's kind time had frames to we of mindsets, it, decade. buyer-seller than think longer that's over seen what get the little a last, caused the I spreads,

Operator

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

Michael Brown

the on Okay. restructuring side to of little business. put Great. point I guess a finer just I'd the like

And about the potential an assume I business? mentioned, floor to next here sounds said, third episodic, kind fair term? So time. it for but you the think, to that think year that over I that you was, restructuring that, there's right versus quarter of will the a way it since as fiscal is on as elevated reasons COVID. guess think near But be is the about revenue so, that opportunity the the guess of for fiscal quarter, the some I like I strongest Obviously, or be second can activity number third it's a average the as

Scott Beiser

of comments. couple A

for we where in cycle much on but higher but revenues I at year, this we side, least new business of increase that said watch think substantially quarter, as the going the probably relative restructuring them for period had decrease and modest a quarter we've then last that last no something this staying look did is substantially don't we're where softness to longer a noticed the increase case. as comment view more today some at probably longer U.S. to a time. We were ago,

will new seems of the while. really on the last globe kind the businesses that a expect be side, continue So -- across for heavy, to it to and robust still

at business level running up of we down number that to feels it been the volatility in transactions size expected like certain particular has this couple at more where we've think the or of we've I So that can for quarters quarterly and a several levels kind the more for recognizing been look go is due at quarters. quarter. cause last But to

J. Alley

Yes.

way recognizing it so kind said it's divide X proxy. our that and think say and this to But another business. of And lumpy before, is a it take a year-to-date of we've quarters that, and by as

you -- a have one to that's quarters number But some going it. where this You're quarters about think like to where below exceed way pretty that a good how you're to last and one some like good pretty that's it. model

Michael Brown

too mentioned way early benefit potential the the Solo. of expense know to it's it size little Lindsey, you but this to Any once probably Great. Okay. for know, side. on just completed? maybe is a a you I quick that question Project

J. Alley

just are. more of to walk couple on I moving XX. than obvious internal some you give I'm of from We're sort savings ones. done Yes. number, entities, I'll obviously a legal you what XX a work mean we've of the that, through kind not cost to but roughly going roughly

So we're have cutting our and legal entities accounting tax entity, we And half. had with costs. We every legal in costs. almost

all it number. you become add just up, compliance decent starts and that costs. And have third-party a to We

some are thinking. of our there there. into real They're So built kind savings

to them? No. they certainly the for are think enough justify to material are enough to But material expense. you be they going I model

probably And about the think best so to it. that's way

Scott Beiser

mindset when We that we employees that go streamline different business and amount you segments, marketplace, and existing And some with we're that et just people as to think albeit legal our the -- doing as core our industry we in be I'd the add, not you accounting with Lindsey of a deal described department, in all our HR kind these of department third-party our also groups, cetera. costs geographies, incur. that working well. to efforts about X time entities, of have There's department and to we'll compliance we're think decent department have to able

into time I of especially So more made always acquisition down. years, be we've entity It just the States. the start ultimately a of we we point to able make and a more cognizant every United another thinking over another it's be entity we'll to an already carry acquisitions if probably just have. need And that little many and we acquisition, to that we consolidate we'd seems so like got whittling it to to outside think about that an rationalizing

Michael Brown

task Okay. Great. Well, onerous very good luck. it a and sounds like

Scott Beiser

our it ultimate objective. one. down But never we to Could get Solo one? Maybe to was get it we'll

Operator

question of Seaport line with from Global. comes next Jim Our Mitchell the

James Mitchell

you should hire seems a in you have made -- Multiple. Credit called But the it of credit, Stanley. Maybe private Private like Head significant maybe Project it Morgan pretty

how set is you're there, capabilities do given doing -- how space? what growth? you in that the bringing more And in just just on maybe are new that broadly, the So opportunity of of thinking totality

Scott Beiser

recognition X attract certain years XX So first to of and that never attract a it's would brand broad quality all, and just Lokey, us retain ongoing I and we growth success have and people need and allows to probably X years to think ago, years been ago, able ago. our retain of take perspective Houlihan we

Lokey able area. certain talking been of financing capital can components a on along is to we Houlihan structure, recognition what very going along the geographies it what in on multifaceted markets who going their we've various in being our and It's views different help we is in your you're that clients bullish in always growth in of terms the do industry part So think of today. Specific just needs. individual lines, of capital about, the within and

markets, just hire's which a I actually adviser, continue raise the staying yes, seeking that think that continue are deploying capital build we we in have, within variety that another others reasons. who a capital one meeting our leading the And is around -- to individual will advising this to capabilities that for to but expand capital so of true be one of to is not

James Mitchell

the it's Relative a revenue? helpful. what double do I today, guess investment opportunity think of or to size to private and any of your That's think just in set triple trying growth. Any Okay. think -- terms credit you is? way through in materiality the you I'm to maybe the

Scott Beiser

your wouldn't answer specifically necessarily I direct question.

in in inning, have how think of define at almost I Maybe we're baseball industry maturity is M&A the capital we much we're the think in second terms. Maybe inning. where in we along. markets the looked the third I further

don't everything along growth And a private think of I credit, is with of a think have is especially think participate do equity So that secular are to that only over firms, earlier mid-cap especially bit some being any done, companies, for with whether with tell XXX% private industry there substantial market, do growth. I XX% increase a us the especially therefore, crystal you times. increase private is for a that's quite others these next we we the years. there ourselves not think these decent or ball lines. XX But in the but especially

James Mitchell

kind on quarter, component across in definitely noted That's that of you fiscal helpful. you How the then seasonality your think down lot of X that across But revenue little the I step Do is all you typically have about you this less seasonality see thinking cadence a just know year? fourth businesses. a And are momentum industry. follow-up, side? you a as

Scott Beiser

the the for quarter quarter been almost service for for have. accounting the a ever I've an but last December abnormally always It's reasons, providers than better still the bonus reasons, every was year there industry. hasn't normal, been minus that firm X, tax So classical rush just the great reasons at

we just December XXXX. seen haven't And so I of since, guess, really, that

have our December much first our a in ways. in March decline see is March. just we heading I our used softening some be And don't than had typically There as really guess think half. so we quarter. half that I When into have. the cooking, December is uptick industry, better we an the into felt second of, And always we industry go both quarter therefore, classical it could the like to could still

year-end, fiscal some our do On have push in the it we things. greater to wanting so hand, is other

line, and called that's still I I improve believe things I And it then. been month, I but since to really trough. straight XXXX like a business month and by And rather our trough, the And backlog April and as said, we it's about our the guess of feel good I our think not increasing opportunities. have continues since

Operator

of I'll we Beiser, question-and-answer the for the session. Scott turn remarks. this the to back have end reached now And call CEO, -- over does closing

Scott Beiser

thank for our on this forward for full everybody to quarter and progress I want look all fiscal we fiscal year Thank XXXX results when coming third fourth you, our you discuss year to and quarter participating in Bye-bye. spring. our XXXX call. updating we earnings And

Operator

at disconnect and your This may Thank conference, concludes you you lines today's this participation. time. for your

Houlihan Lokey (HLI) 1 Feb 242024 Q3 Earnings call transcript