Moelis & Company (MC) 23 Apr 182018 Q1 Earnings call transcript

Company Profile

Participants

Michele Miyakawa	MD
Joseph Simon	CFO
Kenneth Moelis	Chairman and CEO
Kenneth Worthington	JPMorgan Chase & Co.
Devin Ryan	JMP Securities
Michael Needham	Bank of America Merrill Lynch
Conor Fitzgerald	Goldman Sachs Group
Jeffery Harte	Sandler O'Neill + Partners
Yian Dai	KBW
Betsy Graseck	Morgan Stanley
James Mitchell	The Buckingham Research Group

Call transcript

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Operator

Good day, and welcome to the Moelis & Company First Quarter 2018 Earnings Conference Call and Webcast. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Ms. Michele Miyakawa, Head of Investor Relations. ahead. go Please

Michele Miyakawa

and and joining you, financial everyone, Thank Moelis, today. Today, Financial Simon, Great. Officer. for good our for Chairman Ken is us the XXXX and company's you Joe on Chief Thank phone afternoon, CEO; first results. quarter

Factors I'd note and are which we from call various remarks risks this including that subject currently section statements. the obligation Risk Moelis made those firm to & performance, could begin, with the time any Before contain time no regarding certain future filings the of on uncertainties, identified SEC. differ may forward-looking like Company's to in forward-looking statements, undertakes update to including to materially anticipated. results Actual from those The

the certain believe of The measures. to and with several non-GAAP Our which these release, information investors.moelis.com. to turn investors presented provided useful over together across understand earnings adjusted include firm's adjusted website financial these measures Investor results. GAAP on when compare our in the Relations Joe. G the relevant comments We GAAP by reconciliation measures, are our now Reg required to to at periods better comparable to information be is references found other financial can I'll and measures, results financial call with or our today operating

Joseph Simon

then results, Thanks, additional Michele. the Good afternoon, through call, Ken will and provide I'll everyone. our On today's on business. go commentary

our of quarter achieved million prior We momentum revenues the record. represented strong Our over continued. on of up highest $XXX the first in business year. This revenues quarter, XX%

during same global M&A in market overall period. million of compares completions declined number Our $XXX the performance favorably the M&A to greater the than XX% which

in attributable strong M&A the growth was to very Our quarter. primarily activity

and across participating deal and transaction. higher earning are We average fees per we are sizes, also industries

expenses went on contra at income reimbursements to treatment Under continued statement an contributor. impact the of old changes adjustments effect, revenue the relative reduce new quarter, the noncompensation new reimbursements minimize recorded activity Beginning the revenues. In client to continue accounting had restructuring the accounting total expense in a reimbursements management time method, solid adjust to reporting, change. to a to client as this method, into significant we be client this client to been guidance did for effect whereby order GAAP used not addition, as In on have This in Under presentation. reimbursements made have invoicing. revenues. and we the we revenue. record not out Historically, no

of $X For expect the for current amount approximately quarter, should X% X% million. to reimbursements reimbursement to One add XXXX. revenues expense approximately revenues reflect an of

expense Moving to XX.X%. expenses. Adjusted compensation at accrued was

quarter the noncomp to XX%. noncomp increased X the solid client The to reimbursements, due offset also an explain absence increase. which to expenses primarily a development used business activities Our noncomp of was ratio Incremental expense. be

to Moving taxes.

corporate effective approximately corporate contributed vest. quarter, is quarter our impact of In rate talked benefit, quarter. this of Absent of to first rate $X.XX discrete quarter The discrete from new tax X, which element, rate impact tax the have about equity rate we the X% the equity year reduced to XX.X%. would deductions function Our of EPS. been last the effective declined prior the a related XX.X% the plus tax in

that reminder, income calculated are income of a all As firm's reflects corporate tax our adjusted net rate. the effective presentation tax

And last financial to a call I'll the with quarterly May May the share, strong X. turn on be liquid consistent dividend with to debt cash and XX a now record $X.XX with declared quarter, board of quarter We $XXX position to Ken. at over of stockholders paid our and no ended million Finally, per of investments.

Kenneth Moelis

restructuring coupled with activity. Quarter revenues I'd record, quarter to of meaningful on of was given touch points of finer few for quarter continued everyone. related these an afternoon, exceptional areas. to X each of Good like strongest on M&A, a Joe. level Thanks, the our a

increased volume is transact, our Clients which to M&A lead of M&A, fees, The highest and we client First, and came steady continued history. on to higher high. quarter experienced level that want cycles. M&A of conversations together and provide should to activity in our

default Managing is world our result approach in continues by is Chapter XX advising Directors dedicated very companies in our not distressed but far M&A Directors restructuring fault with be largest situations. collaborative an XXX-plus -- Managing a XX in the our contributor a with position low working market-leading restructuring types and even of our other just around of While business, important to in This low all environment.

significant together M&A earnings continued March focus with and we're we Managing traditional a amount since -- activity. provide Robert team, cover joined last our Glauerdt growth, restructuring growth. management the call. U.K. on continue To office franchise, alternative a our managers, powerful we where Our in institutions market-leading for support new enhance of Directors X to announced financial two business, our to asset seeing strong with forces and

Thompson Chairman and the and equity quarter. Group to in East. in teams the announced Houston Roberts coverage two our Furthering and to also will London the Europe. Middle U.S., of Houston, join will commitment we that our energy, Global recently significant We of appointed support Chris coverage Managing will our our expand med as our Joel Martin advisory enhance tech during IPO Directors Energy second companies in

Rick experience industrials profitable talent. as organic across with solid and added significant We an partner and focused on and growth, remain London the of we a also advisory in senior-level energy, expertise Haythornthwaite sectors. have technology pipeline We

I'm rest the ahead. As lies opportunity year, the the I about think excited that of about

significant We are momentum. experiencing

about questions. are busy, that, to with together network the optimistic demand. power increasing any exceptionally And of coming the meet and now teams our I'll welcome I'm Our global

Operator

[Operator Instructions].

Ken of Our first question today comes from JPMorgan. Worthington

Kenneth Worthington

guess, first, topical some So just two here. events. questions I

how Just, want impact they on M&A. Ken, corporate might impressions your

migrating right the to buyer trade. there? of global a now first, corporate having China be you negative, and impact, executive M&A? either And from or positive So do outlook assets. in a of or that seller threat on the trade wars then outlook impact interference more Any branch to seems for Any think

Kenneth Moelis

executive being outcome. Ken, of the two, trade think see effect. wars I'm the some wars. where by unusual to of first easy having even are the a by both might step-up sure think intrusions it on related it's there that And transactions gain leverage involved branch, environment sides leads. in distinguish executive either have they had in There to We'll not I branch are and a the steps regulatory, effects deal both or Look, there, out and trade be couple are taken I the those. in gain So both we've an between of to which and been

So about concerned forward, that I'm an would think going and that getting effect. I worse have

a of probably would The I traded big neutral. seller think I to those They think those Chinese different was probably on have buyer. have assets some I happened. a a the moving there anyway. to might M&A mean, end assets assets China but from many going bid of have types is buyer happened around back, would

I less process. involved see to being in than government predict governments that and So significant the the -- just inability outcomes getting the

Kenneth Worthington

comments spread just widening. Okay, And some on further seen We've your to fair then restructuring. enough.

of much We terms bankruptcies in haven't of break number seen or the movement in distressed. a

distressed seems this to Can not and here? well steady corporate the better sell are things for you the in -- were bankers, from bankers pretty the -- environment? a only and Can together? have this is work positive. firm the state maybe and guess my are able surprisingly sort guys I if mediocre, these the environment that for you bankers, persist Can comments lousy yours, get you Your words, of

Kenneth Moelis

But are for competitors better. environment been to -- Well, -- We're of using to restructuring for we and been edged can long be too. get for make or not. default group those I It years them, years. Street. crosses might low XXX and to might out think never to They've some expect in having the of and who integrate We that peers liability have been a while, think companies issues way bit. could X% things Ken. management. they're with and the issues, the X% edging almost now It a the amount a look, spread the opportunities of that years have the get on have time, it's stay it's be only sure MDs, leading to were over and rate talking kind a really we default And together restructuring we a

You can never tell. out amount of paper But large there's there. a

do. So hit it Look, you hit between market-leading I even worse. X% defaults, X% I X% we I get would and X% and stay X. we default. we X at could busy can X% group, But or X%, guess bet defaults could restructuring which nobody have think and before if you a

integrated downside. We've we happy part a think added business, together. of it to I'm it. a continues I team it. held solid be our more lot the It to upside than and We've has So

Operator

from JMP question comes The Devin with next Securities. Ryan

Devin Ryan

Maybe start picture with question a here. bigger

So Moelis Directors, have thought most XXX than when of has us faster public. to would I gotten you think, went Managing

now the getting And in be front how kind opportunistic maybe and you're trying where forward. a areas can recruiting Directors? room back. it? Or about hitting we think on going you Managing XX maybe to to how there that But recruiting, have going so without the XXX? over think do few of those might that we how be returns years I you're we time another you magnitude areas I understand relative be more to about pretty much that a thought we're to you when of about not about think, diminishing on at, high could think So go? orders to think it might Is it Is level been

Kenneth Moelis

hire think years compliment. I the since hope changed the kind I finance and large has environment. Devin, the me, front numbers the and bankers And the to the don't institutions of in career interest culture, between tripled bankers great model, its but tracks the from Remember, got share have time market last I again, changing boutique. a the of dramatically a it's great boutique started. in just XX Well, we the rapidly We've that's in ability

there's to So been grow. lot room a of

would of still are that make your I a we appreciate I success, on while deals in somebody turn room. several I Monday think Stunning me decision, on and a are they Stunning that that TV a involved -- statement our me. but still do. the there's but deal with. once about not there to there's tremendous to every morning, amount

made it's 'XXs. the pretty get very size The So I look, this But my one can high-quality better firms leading decision investment the around similar and large to diversified the significantly I didn't the very and people. is of years go world. some to and XX think market percentage that and conglomerates. great They the said firms I've in was major us like to law of were of feel, those of stayed ago, of their to And my gotten career, a gut beginnings great how group early to have M&A service knitting. as to now law to most still kept we be small back we big independent, have the themselves banks larger. firms because a people, The than they partnership, sell providers

in to to. And those not ability to gotten saying have firms not of size to a don't is, interrupted the some it the selling lawyers. by not I'm could law X,XXX is the large, look so -- I parameter often we -- firms -- in place but that we our out what these I if have whether I own late that's that's positive, of mid business. to global large just I'm natural not wonder the 'XXs, get banks -- the And extremely all high-quality

Devin Ryan

it. Got Yes.

I the Okay. Very that appreciate terms but backdrop. of And in just helpful. Yes, a perspective. the compliment, was

be quarter types blocked any you just about. or effect though it this reminder reactions clearly, Trump even know business a in of or chilling if high-profile the kind more externalities have more what friendly might a in the a maybe I'm that guys bit in their curious had high-profile of a situation? still is So administration, to is deals, factor that And that transaction a you administration pretty on

Kenneth Moelis

decision governments account to very you're as may But it transactions was that out that a a always I upon. the was still think the is of Yes. the to decisions very -- a rights what what of that Look, there's reason. suppose, and you of that actual And response based you what I it take just think understand responses global lurking that like the government result into it to the operators. see that that for that there. other some hard and independent -- sort legal shows action to that I have me seeing from transaction, in I and specific, mean, to

the intervention a say well. even yes, government to transaction, It in -- stage in confusing proposed a and -- hard a doing which agency that it a of was a early very in to actually was in was answer transaction. evaluate So going is I by but as hadn't it is

the short transactions what their is professionals heads, So people a made possible. it That, think, means are that industry I of for sure in scratch the wonder answer yes. has other and I'm lot

Devin Ryan

about thinking Okay, kind comp kind our of ratio should great. estimate A recognition. then and a of thought adjustment about we on XX% clear just making quick here. recognition ratio comp be core forward? revenue Or process? how for I be -- an change on we to going the Should detail the for revenue be the just Joe one want kind appreciate thinking the of

Joseph Simon

we on the I related comp. holding think we're the is to constant it way think philosophy about

I think year. the is best the ratio our for quarter comp current ratio of estimate the

it So the a impact to reimbursements, to rate, we of it we client and for monitor year. expect throughout and at recalibrate the slightly we're looking the to tax similar ratio reduced

Operator

Our of with Needham next America Lynch. question Merrill from Michael Bank comes

Michael Needham

to question have on year. is possibly continue the going you this recruiting. people first of like rest the on I It sounds So for to are adding focus

revenue and quite that a another a amount you on XXXX, was back 'XX, a in there people. added Then to net significant XXXX period few Looking where was basis, growth. of

are what for you achieve growth expectations organic a people what the to do flat can if guess you bringing of market? think you're hire people, in? So successful And you're quality your flattish and able I -- kind you are in M&A

Kenneth Moelis

a -- bankers easily bankers we into very I close -- now the brand the we're to Michael. ask guide bankers we're management believe Look, but believe with recognized and it, a today appreciate boardroom great dealing good conversation. quality which more better very than they're brand was we a in high don't you to or and it's but through to the then, we hired again, hiring getting more globe it that's easy me Look, so accepted a that extremely -- back do, year, a

the affect people with of And as hiring in expectation. we're really powerful other well. some So we we there's But growth-oriented. we're it would hope at every variables a more think that right, believe we the we have similarly you it hires, network, expectations to off also higher be itself, similarly company add to resonates. economic But as profitable of X,XXX and to time look the and the where Maybe and node the again, could network same if we of that's it. becomes environment, those integrate seeing the

Michael Needham

Okay. Got makes That it. sense.

good year, looked of like the was kind a the think, For that business, it I with this restructuring really quarter on first last quarter par quarter was, that business. for

that don't Is think quarter of fees the lumpier And XX%. just, it XX%, you're I is of I know, at think the in end like was don't maybe previous kind that what you guidance thinking? the low recur? still

Kenneth Moelis

-- think the revenue reason, So the the on still time at XX%, you thinking. should low some yes, we basis. this was default think Yes, timing of at And rate, restructuring XX% a think quarter given XX% be good. one that for should over a right XX-month long-term was rolling any period I the

this wrapping revenue a of continued think first restructurings. when It was really a be driver I first quarter. good were in the energy first last up wasn't restructuring quarter energy we of Interestingly, the round to of lumpy. lot

as happenstance, it and well. we lumpy transactions, had wouldn't the call team probably And of was diverse it as call some it much good great just the there a again, you were a diverse, would lumpy. team. more few it and timing But just I I stuff think job. as significant get By a closed. I so and effective, is it wouldn't call did was I

Michael Needham

just did still an plus the, to And the expense noncomp guidance? Or to Okay. is you more Joe. one Joe, expenses? give billable it like, XX update for XX

Joseph Simon

the the quarter. again a client Well, new increase the amount reimbursement large of accounting explains the current obviously, so for accounting, with

And account to the be XX the adjusted XX, in accounting. order noncomp would into so new our of taking

Michael Needham

Okay. guess just like, ex -- figure when trying the And quarter the out things travel run that's right I happen a rate to I'm and really strong. that the, is

Joseph Simon

an I'm looking XX at XX. underlying run to of rate about

Operator

Next question with Fitzgerald comes from Conor Goldman Sachs.

Conor Fitzgerald

if of any impacting conversations? comments to the appetite to you wondered willing do Just potentially on environment appreciate put your is engage but M&A, the XQ share impacting environment comments less volatility deals Has or made can the some of outlook corporates either delayed on I of market is some the how deals. political corporates for the how in

Kenneth Moelis

deal. reposition times, repositioning of need time I've me M&A the where don't is transactions. some from People of has still don't terms I the the exceptionally everything different. for The imperative to said X struck one Again, that had to competitive few the in that scratch. changing this you to can't you see Yes, see corporate it so but I as possibly. and have in you I I putting to Is world their shape. as strong. But reacting how in speak I -- every build fast really a assume years strategic are correct to quickly environment the is effect. last a of And XX% broad-based there be be say deal? X -- is It very competitive business effect. need it can X to don't

should X many that be, an in for sell need next or something -- and we or and need to react XX can by expensive. instances And we I today, And think are of they have compete cheap, high. where should our position need very something discuss the not can ago, asset your driving and have, in you're and I let's years to affect going driven back And should conversation something, significantly that it to like, You but M&A They that's much what buy about to through going must I given the level to do years, that doing just existential all a might having was that market I on. change conversation. can out it's don't add the M&A. it, we and the does that's have base should volatility think your fact everything philosophy to of this. conversations affect order but and the look that the trying concerns both figure regulatory the more Or what change we of -- what given you price,

Conor Fitzgerald

that color. that. you technology helpful ones just corporates a that Just product and up you M&A more than on And verticals different a think this for in scale maybe and need making from Or The and silos mainly M&A, is on That's cycle seeing their stream? past. revenue it bit do they're to curious a are remixing follow to is acquisition? what

Kenneth Moelis

call themselves a to to technology almost is future. you positioning it's would goes But that, majority I technology would every not of -- speaking ahead we all Do company as normally compete And is be to in a somewhere as but about to a that's not or technology technology. company Am themselves and driven vulnerable? I the want -- something? again, or technology product have So by say of I of a spread because get technology thinking company what sets, company. and the

think I said so this And before. I've

alongside almost on to called is software want have how so company is itself One we companies, sector bankers have software reasons -- used our almost company client who now going about every we a expanded on and about think software position to we in thinking will and the tech of much our have every the that board we that banker company forward because expertise every software it. just calling thinking banker every

Operator

Harte Jeff Sandler O'Neill with from Partners. comes question + next Our

Jeffery Harte

seeing Europe. data again. are guess I like, in kind levels touching the I'm do in strong been? kind mean, X secondarily, place to U.S. Europe ramp look have And ground? you in far guys can of we improvement from as of has pretty the standpoint, in this activity strong franchise on relative I a an on we're One, just wondering Environmentally, things. positioning the seeing, how franchise capitalize at, you as, to up a really the

Kenneth Moelis

very yes Europe, year a in both. seeing way. is on We're had Last by The we it. year, answer good the

and said And the to are I franchise. I I play. when at we we're underlying look did on very I our And mean, better participating we well. our XXXX, that, numbers you and it, European, If about say last in felt Europe never well, calls, set this think feel, with I think

are We in Europe. expanding

to have through the very mix. probably have and may steady, I'm I there, going you're around, yes, right build call same to Europe franchise think leadership total our it. close, where more we do. the about it'll is I comes think technology I'm Europe, it think I I going to the you'll be I think And Europe and I have it'll it, because people added be see in on U.S., XX think coming. spike, of they thinking a their that bullish months XXX what slow, it's a expansionary, behind long, we're -- so We a see but be from think presence bullish because And affecting to there, some steady going think steady. how very they're be about about now I our very We've Germany don't industries there. reckoning our And wave

Jeffery Harte

Okay.

higher XXXX? type couple a be years. if talking for Because XXXX strong we I'm quite mean, as of were thinking we Just you the it of a continuing call, growth year. in was last I MD kind about recall the X should think to there's pipeline, about bit an on expectations. as Should far expansion high-single-digit kind I last the a -- it again. of still accelerated potential I That's pace like -- year-to-date hires. from looking, touch on just announcements the seems MD we've last like had hiring

Kenneth Moelis

that going ability not Yes, look clear. hard great for know us possible. bonuses because do year Look, until a you it's very the hire to it's really to have into amount at your

So really it this -- fits. are of where part looking that, the what's you by call their us available prior received also bonuses a first and is so the know press And we way, their I have you're firm from if think, Europe and little bit. where people have, and is seeing who's

You could the or disciplined do X could to We're and and that answer year, want with things want a we off of hire think saw that us hire -- willing And Europe, know the IPO to -- of go did is few that be done year, and in how think year markets, way or seeing. extra -- again, head. top strong fall more definitely into we little we capital We've us. you last while. advisory. if we or this equity very But might everybody. is Europe for X X X format, for people to yes. we on bit complete some And a we being I hires it on I we're are the who what be Europe. X excess I'm we'll that into but see, the right maybe doing bank this don't willing I might my We

Jeffery Harte

Okay.

basis. a I Just guess, quick, accounting

something in first is the the little As at a the we more quarter was still we mean, expecting. I XQ see still expect we in a at the accounting rate share-based least Should should look tax normalizes? benefit? benefit second before half 'XX, comp I

Joseph Simon

so due reported Yes. incremental I the vesting to we EPS events of approximately $X.XX this mean, an quarter.

that on the EPS second I in something which And in year-end of comp. order to have to back We April, vest a of $X.XX an would goes we the expect 'XX think benefit smaller $X.XX quarter.

Operator

question next with today KBW. comes from The Dai Yian

Yian Dai

we to on question conversation do rates as become more to and I'm incrementally just tone having. I'm clients? begin gets And this? creep back the well, if of then conversations a that's here, up, we are longer ahead quick of if they starting start just curious with curious, to that does say, And any to changing it got see the rates. A you're look

Kenneth Moelis

little But as just very I rates that about discussion's transaction. little. think to you say M&A rates -- to a have about you feeling whether again, into think very the I'd the it your and is as companies Obviously, succeed. different entering you're bit, you talk why a really continue, had. It slightly, discussion about move is company, positioning

marginal So points And is think desire I to going XX is change or to competitiveness. changes XX if asset the to basis rates a it going on go-to-market your you not an fundamentally not sell or -- buy guess points rates a basis to rates, not XXX it, points, start if about basis But XXX about been could only that. think really do lot. everybody's you XX about it. basis we And have seen It's talking moving points.

Yian Dai

just on the piggyback wanted discussion Yes, okay. to Europe. around I good color. And also That's

hiring abroad. guess, I'm compatible build the I a like goal have try outside to within, maybe from foothold to and promote even does wondering doing Do look open and more as whether globally an historical existing, in being Europe growing and that's it bigger of you to your given from with -- just bias brand we to establish So elsewhere acquisition? a

Kenneth Moelis

take you easy and how when one Hire the teach their promotion you your it It curve, is people same impact but them the could company, do and like you want works. people-oriented it. on have for them you to better behind better Europe look, small have that same we for it culture, small, kind a part the something of, look that sound last -- we have from type what internal years a as would to have But clients, of you for of that's better no. acquisition. then might small think to the come, around wouldn't think would little you globe. but We people, be the client, approach -- only is a us. the XX-year-old that's a a to have first. And -- an The that with believe acquisition want We a them we exactly have want do look, bring few something the way teach interact people, I of to with I'll do the not product number a exact them transfer we is would firm, all a you would another all firm, to years way.

mix we up. Now it do

see, I hiring generate places in who some almost you'll teach where them the teachers, people. the actually we're Europe, As and the younger begin leaders in to call

accomplish it. to teach the Somebody group to how has

yes, term, So grow internal committed short you're promotion but well. the to to of that we going Europe see we're a in as pretty in little as

Operator

comes with question Stanley. Graseck Betsy from Morgan Next

Betsy Graseck

on on just the it's One, And get in follow-ups a fin So no quick I'm done basis two rates, get involved lev points, not the before I world that go as high. in much there's desire structure, something cetera, higher folks that increase, point, that rates things, et get guys, particular percentage more? up incremental just up much it's wondering, too to in but your here.

Kenneth Moelis

much. work, guys put money on be may good I it's to the for equity level. don't really there see some And but that to Look, private pressure it our

it. much get more bringing up, advisory so as around a I few you leverage on capital done, couple help and to to benefited to a have because think And finance. you seen who activity that rates it people you're do, markets from it the we advise we've makes deals of do gone experts world We and our tougher

just that I generating. So somebody see as rate don't factor. could beat see scenes, as the see racing dominant Behind it to don't way, that people well, thinking I hike. a don't a but we be yet

Betsy Graseck

what next you then mentioned there is me as XQ. couple where out last into And to recall, the your But pushed it Okay. been didn't not of the a revenue asking think I'm to you was of be. quarter have done, going get I I'm tell get I here, couple could deals might that quarters that thinking

going number off that's build lots the earlier So that is announced average lots forward. to really Or should your I increasing discussion, as that's this see quarterly a here commentary is deal XQ? an of suggesting XQ, activity interest, of rate think about XQ a run of rev of we

Kenneth Moelis

it's business. not quarterly a Well,

tell even to than kind it the best to and if are And -- So I look how the more from at the a months that don't I analyze of X I I to the scratch? overall think that maybe probably good. the generation-ability way. even don't just then remember were that I try and can self-generation as opportunities firm, process look sense creation but it's creating would and well of you building to sense you of XX I you you could was know that rolling, revenues of we business, was that, I up, quarters new replicating as at started tell -- ago even do, -- you just the the calls

tell at those I fall. are cannot So that we point. will you where transactions

get are call, to transactions the almost the out As impossible large quarterly line, finish would on somebody try and pointed guide stopped there you that phone at to to sometimes right basis. be it a

a as quarters two that. don't kind do it going is a get know I I'm I'd at were if like, I if you, feel to it, XX-month. try not for so of So I to look enough really to

Betsy Graseck

be lastly, just to MD here. years the I fair then that appreciation statement? conversation as should around and brand And than ramp new able ago. revs maybe faster and Sure. awareness that brand net Is three a would translate improving

Kenneth Moelis

that We're firms our to newest we that's can. were -- the only block. everybody one Well, Remember, what the year. XXth of on going we're we're hoping,

X is But We beginnings, are. is around would where depending names And the firms, in I could One the which know the way, Who think the in transactions with have you different several point, largest of think because I of things this people, by have on been we've you ask, is Moelis? think at world, involved we X so people them Moelis? Moelis? especially people -- And leverage for that's world, times, the that. X the all. we're that -- is who And call, moving where Well, or X ago, think together of people countries I tell non-U.S. the happened. happens is you the so Who Moelis. I if today, who I couple -- really last years, the XX whole And and they they're the get a should to I I that, management thing the it would call out if a space. Moelis and And second, getting call. only more world an chances. the leverageable in adviser, we and needs tremendous call gets think, think board system, that very into outgoing years few is

So improves it everyone the whole that's productivity a I of long answer in to your hope question, which organization. is the

Operator

Mitchell with Research. question Next Buckingham from Jim comes

James Mitchell

name of they're still working on that plenty mispronounce investors firm, I I it. of your guess get the still so Ken,

Kenneth Moelis

a mispronunciation. no right... wrong only the they If number. phone There's get is phone number There

James Mitchell

a tax question Exactly. on the Maybe cut. just

the Now have it how one putting or people seen you other? it's about way to work? surprises implemented, flow thinking get are that do what reflected been you starting in talking Do the on you think cut to trying cash through the and think it's been on that's in could and impact the potentially think of with corporate be come? tax what has customers, to And -- Just M&A. your any

Kenneth Moelis

of I bottom how know more strong onto think figuring flow figured flow had trouble -- surprisingly I our cash out U.S.-based it cash not results I Jim, think it's did international systems amount use And of we it surprisingly a starting I powerful believe is, to in tax what flow. to able line. it for power the the have own -- after-tax mean, your literally to out. of not tax was that just a still after-tax was strong. get company cash the is I reason defer normal significant

do that paying are know drive much, I -- people are drive straight think bottom having just the surprised It are again, might still do who going U.S. effective their at And come to still don't I how grips have now at think drive flow that will is tax without I stock line. U.S. it. cash if dividends. are people and I think, are M&A. still, profitability XX%, at -- increasing with so to repurchases. It And might But to to to

working way through think So a the system it's its still I little bit.

James Mitchell

Right. that there's they a tax might Do you people located? want think it be spurs anymore that major regime make cross-border of now change to where think flow

Kenneth Moelis

week. -- last in do Look, Asia, Yes. Japan I think think I was I

continue U.S. both could could more you actively -- see think very I assets. they I at think activity cross-border looking directions. to I be in And

see U.S. Europe, companies in I XX mentioning Somebody I because valuations of to think kind the acquire again, was maybe months even economy. in they're Europe. And looking behind you think could the rally and in

a way And may so be to run there. there long

I see think you that, can yes.

James Mitchell

helpful. maybe a on great. policy. Okay, dividend the just And then question That's

Is saw a dividends to are think we of that similar should -- were we consistently I last of we kind year? is reason wouldn't pattern have they similar -- it that think given to pretty to special should where as year. there levels to last kind think we commitment cash your returning shareholders, to any

Kenneth Moelis

Please Joe. Joe. Yes, go ahead,

Joseph Simon

our philosophy the return Directors our quarter, to gave when We're all significant the going review last with $X.XX capital, special, we returning why going $X.XX. remains new a from tax rise more if best to a to be the of to which not our to way each And Board capital shareholders. same. I'm commit law capital. is the special, raised But yes, done. excess dividend excess the we excess Look, Certainly, to quarter the was reason to

Kenneth Moelis

didn't last that's just year, you not We last look, X. general felt we we when Well, excess want had back I like just leaning. was point to say we did our year, capital the giving on no plan as there and capital,

talk you. it feeling when we it's capital, that your to our back again, about have to to give is we but board and our So should is,

Operator

This the conference over closing today. I'd to session question-and-answer remarks. turn to will like any back Ken conclude the Moelis for for

Kenneth Moelis

to XX XX-year-olds. an what everybody I everybody. coming I'm just But age want so years and everybody they're at. you, thank you was about Well, getting really I joining Okay. know to bracket. I XX, as call, I the young to be a industry support. down for I'm old your be I appreciate the used know not little I just thought on is thank putting

Operator

conference The very today's you presentation. for attending Thank has now much concluded.

You may disconnect. now

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