MC - Earnings call transcript Q1 2019

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Operator

Good day and welcome to the Moelis & Company First Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note that this event is being recorded. At this time, I would like to turn the conference over to Michele Miyakawa, Head of Investor Relations. Please go ahead ma’am.

Michele Miyakawa

thank quarter joining call. XXXX and & for you first Company’s financial thank you us for Moelis Great, results conference

the Officer. Ken Joe are phone and On and CEO Moelis, Simon, Chairman Financial Chief today

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

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

Joe Simon

driven in completions. overall decline greater market The will during the from was afternoon first same quarter, on will which than is Thanks, XX% today’s Michele. of to transaction declined XX% which then the in outlook. number million revenues revenues business go everyone. the through million the We and call, and provide Good of in fewer results prior This I year. M&A our our commentary On Ken additional primarily reported $XXX M&A the $XXX global completions down compares by period.

the was our slightly, On and during see the both business continue we were Europe period. U.S. overall disproportionately the in regional to steady transactions but of and worldwide of that part down a declined transactions softness the for closed M&A to quarter. ranked down was one be as world. in Our number a continues basis, activity part Restructuring during completed

compensation adjusted due expenses, lower XX.X% to was revenue expense at accrued our Moving to base.

expect level for We our compensation the to full fallback to our year. target ratio

non-compensation Our The increased in in our period the period due XX.X% ratio current the the period. prior non-compensation lower XX% was revenue year versus prior one quarter versus expenses year X% to base.

base our remain expect We million quarter. non-compensation rate next $XX to near

award our tax the corporate taxes, $X.X was quarter benefit is tax approximately benefit net tax tax produced to for in overall and discrete million Moving the equity quarter. before an XX.X% settlements. rate related benefit to the The our it

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

quarter the We another second award settlements. related benefit expect anticipated equity in to

EPS a two. the stock price be in should Assuming levels, benefit $X.XX near quarter or $X.XX about current

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

Ken Moelis

and everyone. disappointing. quarter for financial Joe Thanks, first results good The the afternoon were clearly

business from saw However, and the an reach increase active we our expanded with of client number qualitative our clients a we basis, new in remained activity.

As and a deal busy. result, our strong are is bankers our activity

unusual the overall out, us pointed did year situations was quarter completion. the come not for of significant As where an was start M&A quarter market just abnormal to an Joe one down number and to

be comparison. the of softness continue to our this in much half the second based expect expect year, into some of first indications, early but to on We half we revenues stronger

industry fundamentally started We that and MD we analytics, and X focused almost on promoted a new hired to in quarter is data every recently invest with talent. cover. continue which We the rapidly MDs changing

and continue promotes have ROIC is strategy. talent embedded active been key of development our of self-sustaining pool promotes external our culture The both create far internal always a highest creates to of in and growth internal of the by for hires. talent Internal our talent We shareholders. has an pipeline and a part

We the of in future. internal that additions the managing our expect director promotes near compromise will majority

Finally, we confidential on which and objective un-conflicted remain our outstanding to our is advice focused key to deliver results clients.

place. for is powerful and employees for strong. for remain company our is outlook clients, the model M&A The The our fundamentals shareholders. Our in

leading a organic to execute will have our it global we questions. With on continue I We franchise that, Thanks. growth plan. to and open up

Operator

question-and-answer Worthington begin of your Instructions] and be Ladies Please JPMorgan. questions the sir. gentlemen, will you, And go will we first [Operator Thank ahead. session. Ken now from

Ken Worthington

sort Hi, good question is about as more sense. Brexit Europe, does of we my explode Maybe Hopefully the to wasn’t some whimper guess around with we certainty question. M&A or afternoon. versus think pipeline those I activity just eliminated? Thank just when Brexit back has made, you extent delaying opportunities? come of it it are because just around truly truly my the makes as and first that sort opportunities what delayed, eliminated there So, for uncertainty a taking get just does decisions was eventually

Ken Moelis

look, Yes, to it’s a it tough sense, know answer really the to. but makes question

sizable the economy happen not whole Look, look, much, our I that it’s mechanics is size. of was it. bad. say impossible an mean to just obvious in don’t issues. is So causing uncertainty Europe Europe has going that There know say. Europe Ken, it’s deal economy. knowing quarter is capital is people not believe economy hard only is, And thing almost How that probably been natural it’s lot allocation of – and some what’s state the as this a first big will a to I causing activity. to in I a is with of was the taken a of

going major change this some you that those in know that but were there just would elections on will the So, of assume not I governances. if fundamentally have there the by of some don’t explode, it’s year that I it comments, several way Brexit, economies

And we it in place and said want economy, so a is explosion it’s And will there an world or be don’t be all slow of and feel I uncertainty. a is know I relevant. second after back my done. come to a means largest lot think gut that if large the

Ken Worthington

Okay, are great. spreads broadly, getting rate at are maybe for kind kind of you group? given the slowing changing also down quickly And of then broadly, on sense environment CEOs them, narrative in from uncertainty macro with Is sentiment C-suite M&A you sort more actually maybe all you temperature, there rates from of the the have or again. to deals the conversations the Is this maybe greater environment down? is leading take what tightened their the So, push that falling with and sort in them? just of urgency things the is and to are outlook any for what of as hearing

Ken Moelis

So, again, broad what hard October. activity it’s that by was but is kind of I deal November, you think to think I generalize, for that, shooked will in me that decline tell which middle-market, markets. we I see December, the

false be recession. that I buyers they on that were into rebound. was it a a think Obviously, would of they So, worried shook signal January, March December a early was side February, the buying was

a there both a were, And way sensitivity it’s sellers think to that the want into in I kind either. very price, to and buyer price market the is buyers area to by I to the am real. people I sensitivity where think is going while middle-market cash to of uncertain wait ways, big see and wait the this in a don’t hey, an if

margin, in to the we activity. and a execute and say are are a stock very do where think a had do well, This all of dialogues are price So, strategic uncertain look, companies, down In scale you this slowed slowly by and go think do statements the going the I and to the are say, imperatives, seeing still into I company market think is little come as come on volatility its of volatility in and the of October, to its held almost back rallied general market active that think about And November, it’s market. larger some by now market. is you has to not talk whole. way leading I the And a is I Fed want put active companies bunch December out on reversed position, it strategic issue. I on I you it the would but at in is. larger was to maybe to that Ken. when the December, people transact imperatives an don’t the think was I I there people guess trying my very where sellers less This is that back

Ken Worthington

Great. Thank you so much.

Operator

go of question Devin Please will from be next ahead. Ryan The Securities. JMP

Devin Ryan

Hey, afternoon, great. Good guys.

Ken Moelis

Devin. Hey,

Devin Ryan

activity you reacceleration online? are am here relative just that half kind kind So first And if high obviously the guess you half, I and anywhere about for or half seeing was coming revenue [indiscernible]? just just of second of the the back am something maybe that Does the you that based year at just XXXX now kind slower I based you back what on just revenues terms back of question a of the will things on guys or set broad-based to the cadence seeing. about it are curious if in specific it’s get the great curious it’s to are how least I bar if year. comments of could first level just expected on in think

Ken Moelis

clear Look, it’s X I not know. tell that from hard to – to can last don’t as you want it’s the months,

So say I we reaccelerated. have that would

abnormal a have X, row went where an regularly years came what situations. And don’t was complete us. didn’t some this into in up amount where we XX fairly of quarter-by-quarter. here in tails X, reason the for period I and was I don’t our have and felt said in it I period that beginning, I you come the you been you the and was the a are transactions – and said in of range covering statistically period are by and the I and X the of there when – One we of bunch a actually don’t clients like broad and this mentioned we X-month were public field, think of coin certain in a not completion. middle-market. too. that’s a a close move and that market resources market, of at is and the whatever significant want get I way game but they And I sometimes I especially But amount some Look, to now in flipping to of – think down have deals it script in a was we put and for I had things underplay we

on So when back our I you working market so period, over the reach think say happens, the think one then you in are first we half. completion. probably situation, that been go off we away can that to go powerful doesn’t down you to have that pretty sort have as XX%, And good. you pretty execute of about might think of you but are have seems on deals should it reacceleration, I on going things be combination sometime distribution, it to reaccelerate X-week normal a And because own completed

Devin Ryan

it. got Yes,

you the look appreciate was just contribution. ‘XX looking for to about could be had just still more, that’s little based upside better. respect big probably And but for the so on potentially a restructuring like XXXX, know then context. business in maybe even the doesn’t call I last the with talked a I as quarter, I outlook quarter Okay, the on record you And from restructuring or into a aggregate like revenues good the it good felt that.

a So broadly looked is of little or it note probably could about how the just there still slower big see contribution on a it that restructuring well? reacceleration curious if am maybe as just there well that we if given more you just slower I bit start as terms read like in think little should

Ken Moelis

had rock in one. our business. and to slower. could statistically We big a have restructuring It’s this probably raising, the plan number think that cycle. ranked I at was love solid. been Fed when The keep Yes, I will teams pretty a and are significantly I we X.X% say been And thought restructuring

I don’t continuous think because don’t economy have Fed I of I the to short expect sort to same it to last term. is issue. the if in rates the year, an the expect raise

So, will I think similar. it be

on I similar think being and you last of years. through couple can depend pretty it pretty stable the

Devin Ryan

correctly. comment one last here then understand I just sure And to it. got make Okay, the

understand year comments, obviously you’ve year So to in that comfortable to XX.X% just the the is call the that’s pretty your you still full be a of you’ll I able kind the the ratio based Ken, basis start year, comp feel full the but expectation back it dynamic current to on been get level where expectation? on

Ken Moelis

a at to stay we’ve we commitment have unusual made. XX.X%. was expect this do level. be think that want Yes. We I made at it’s we mean to and We quarter an

Devin Ryan

Thanks very much. great. Okay,

Operator

question The America/Merrill Lynch. be ahead. Michael with from will Needham Bank of Please next go

Michael Needham

hey, Yes, thanks.

So, the on have is question completed first trend. I transaction

developing. in So, better headcount I the that in really despite grown Can from there’s you that understand years trend that hasn’t help number just give look year, you’re just few if very at I’m difference? some that people it delay the strong much you sure every production me guys growth. last

is potential decently touched on ROI the just them. gap. large It You it a for

Ken Moelis

completions I average exact level that in me. up But fee our don’t an front have has number, pretty remember, time. in picked of dramatically but

So in or order far, of I XX% on fee. think an XX% the someone average

I’d So, to we’re to transactions number the I am get account – you. doing back on bigger But of them at have look, transactions like now. I of that hold larger right for a might looking fee and some it. to extent

Michael Needham

Yes. But number headcount’s years, up five period. XX%. looking kind over last I a the of the and the of XX% up long is transactions was over

Kenneth Moelis

time on back hard to our Look, we let average over me fee get it. that have increase I to pushed you period.

be just that. larger to maybe back to let exactly and less on you might doing just come and answer transactions we size. the larger But of transactions it deal smaller me So, and

Michael Needham

Sure.

Joe Simon

I’m It clients will help million. that between with we one which also total offline. differentiate over to sure versus be referring important to just can but not fee-paying $X you’re you clients paying certainly

Michael Needham

Yes. Yes.

a upmarket, conscious telling a potential brand? Just where below Or kind it move just is you’re general you’re certain minimum? firm is of of making really evolution after covering of your client fairly decision the bankers, worth the total going fee isn’t a that that where and the or more it the is and a

Ken Moelis

Okay. closed find transactions way over I number we think a don’t think there’s to go so in or I’m of know the just your like I transactions, our anywhere I And with trying don’t don’t that published closed that by that that published. published numbers. the I’d want just anybody you. to to call our are

than be might announced that. some or You other number at something other looking

don’t number So, looking number I want have to it. with just at. work I looking you clarify the to we’ll what your you’re at see you’re because don’t we

So.

Michael Needham

sorry the I’m Yes. from it’s K.

on. Just

Ken Moelis

one Yes, Okay. over our move definitely by means very up a getting that we years I’ll way decision transactions. marginal the definitive at over which last purposely. let the yes, a you very, that. Group size, average made on fees, up of to the the we as few fee did off-sites moving of rid Then usually

Michael Needham

business. on thing And the restructuring other is I great. the have Okay, only

team’s positioned firm you that gaining how of share of Can talk a like downturn about should of for your really terms think in market that pretty and a benign mix in done team team’s environment. perform? I at business job the potential how good

Ken Moelis

there seems Look, to have and because to stayed nothing we the promoted number larger all there within, that hard so That’s two. anymore, the believe Because we And think downturn. retained down a team team, is be we capable cycle secondly, we from It’s will together. team. sometimes happens. have but do whole think a they’ve turn a

have either we a specialties. has while. been a together their lastly, a each sector So, structure, does because or don’t own individual have team not And commission that for banker it’s

groups restructuring it, other exclusive paid the So, there some call restructuring coverage that. are that own from their on don’t think do We bankers bankers. are I

So, to in in that ‘XX-’XX except we on crisis, restructuring banker the account one move single downturn able last actively was last could time. we were working every literally the a during

rapid It’s a were give a them I to and into think that significant to us advantage So, able And pool, group. we we hire bonus help. in hard one in we move your of a talent big a downturn. amount because restructuring rapidly over to again have will move

that have So, you the resources you use have. to

Michael Needham

you. sense. Makes Thank

Operator

from Please go next The be ahead. will Michael question of KBW. Brown

Michael Brown

evening. good Hi,

I of just to one So, wanted Ken, China. on ask question kind

in for obviously on mean piece pent-up but it’s you the hear of smaller kind do your a you that see meaningful activity? yourself for what your demand be kind pickup maybe of resolution should I the if of on of I I of on China, a kind China? business, mean to kind trade but So, I industry for just of want activity for expectations know we would your not see thoughts with and guys, kind it’s of cross-border with again for

Ken Moelis

all, But of to for First I with a I large cross-border it line you’re would U.S., we XXXX. say good don’t item in trade do lot we the a actually deals for Look, allowed just think deal. allowed That when of was in meaningful was a did us, pretty is us. fashion. this closed had a

the think stop be, cross-border trade of allowing of deal American that well, there’s and it’s And probably will weariness for significant markets. if probably know the But good that. M&A don’t Chinese will a I trade companies. I ownership will continuing some underlying deal done look,

to CFIUS at and China war where don’t So really no, the it M&A go to expect I we point. with cold that technology started was this will back before ramp-up

will So all. no, back snap that I that don’t at know

Michael Brown

run is you just fair low that’s about in it? obviously down can rate, And the way a that right to some million quarter came this tough know think Okay, that follow-up comp you comp quarterly expense, essentially a Or the to interesting. down $XX about there’s kind and to then kind comp kind on dollars take helpful. saw the Thanks. of think is Very of seasonality dollars how revenue but not environment? to that way about of a we

Ken Moelis

a you follow-on Joe, that? on do have

Joe Simon

that’s of are go. the on you think fixed million of a accelerates. are quarter comp. because probably that slightly certainly retirement forward and I That basis it that’s that baseline. exaggerated It’s about the – amortization going right, think the But a I that so the probably so ultimately that’s is awards our new can lowest some it’s eligible, fixed that $XX

Michael Brown

me. Okay, thank That’s you. questions. it you for my Thank taking for

Operator

from be Please The Betsy next Morgan Stanley. Graseck of ahead. will question go

Betsy Graseck

Hi, on back environment like pull expense pull up if on expenses, thanks. not not the afternoon. expecting, you you’re Good the or that other there or pull manage revenue lines does question back One is any could really?

Ken Moelis

the – Obviously, table. Yes, and there a is the in could forward but probably and was looking activity We change. revenues lot now, on that saw that of expenses of look some a the We as didn’t – again associated are like reductions in lower. things, of don’t or right not probably up, were well usually complete first activity some come happened – of activity down, down this right that on a we like some goes slightly. quarter things none is you what down. do the was if they’d that’s go business are not was would with the we travel was could But this not just headcount non-comp think when permanent

the In fact, good we feel future. pretty about

we here world said, down had I and we go. didn’t XX% number that unusual I deals had the think – just As of an it

where that’s looking yes, right we’re but not now. is So, the answer

not into moving that We’re mode.

Betsy Graseck

okay, it. Yes, I got

you, hired. the professionals regarding other the around have comment then is I for your AI that So, you question Ken,

or a that brought is bringing on who anticipating Is something Is consultant that you the data how vertical you you’re data Just specialists wanted understand in going to of leveraging in plan is that be business in that specific more a vertical? to somebody role in? cross-industry? that’s the

Ken Moelis

we important. about the in affected be and space to and analytics we’re data happened wanted And we from AI we they’re M&A the acquiring for we and they Well, about And the the going up and data of do feel doing own in things them what and thinking that’s has world to think industries business own businesses with their things expect client industry we talk we been their of like have happen to data two their them. and world want in to secondly, get be us. One, business. own our to talk to to think wake facing are analytics things didn’t want help clients one in every early, many in by to we to day there’s thinking and –

clients. will to it M&A So, there’s out we’re to to organize you analytics benefit interestingly, and that how if our and plenty are information there environment. it – data own And could for out in us helpful starting be figure the things around get of there of the use our

looked as at internal. XX:XX, time So of XX% really and XX% we it the external

Betsy Graseck

February. Got cool. I the separately And $XXX approved Board it, on repurchases then okay, in think million

Ken Moelis

Yes.

Betsy Graseck

And did should you correct next all, wrong, looking of or how seem that just we how the any kind price for of kind I that of that kind share should what I’m about wanted it like thinking thing, maybe but thing? at me so, average about quarter over we it, doesn’t using – be count you’re think you to used understand

Ken Moelis

stock a in the have whether excess we we meaningful quarter. about the where trading, we enough And repurchase – be were you some aggressive we everybody’s in distributing December, our Dividend XXX,XXX, so dramatically in tell buy the will shares stock all – we could is, way as about is tell to capital changed look, we could Stock hands. a we into repurchase soon distribute you the distribution. very release make did was as price tried the XX,XXX did or our dividend. earlier, efficient our where pretty – it as to that’s very under get stock We in little versus time it was. We to has stock by press the that it we in like we think think should of market a as again, way do

personal what services we it stock as a in valued I they’re very company, you the If said the And don’t of like I And want belief gets proposition. field. of XX% to and as is in in but the that it, the a with red we’ll be repurchase. do way the the it’s that’s be of kept to at the cash it’s most the that is If might well. it got to continually zone, demonstrably so in but do look company un-levered kind market stock services become the that. call excess I big we’re I XX% think really leverage I we the the efficient aggressive, don’t reason well zone market. Our personal think within don’t that value red we’ll see I aggressive. it us that somewhat business. is use if field, fair, clearly under-priced, and in not the will more think football believers within that’s important we in I’ve think

Betsy Graseck

yes, Yes, get it. I

Thank Okay. you.

Operator

Buckingham question next from of Research. go Please ahead. Jim The will Mitchell be

Jim Mitchell

good Maybe like sort where the about know expanding, afternoon. capital growth it’s advisory, non-M&A little been non-restructurings, things advisory, bit a past. that I driver Hey, in fund of markets the you’ve just been talk a

in there? trajectory – seemed think like How also any do the that areas? It about that of kind slow Just might that been quarter. thoughts of a those we

Ken Moelis

very – growth Yes, business, everything business about financially, off the it is in quarter But was basis on path. it’s a on I a a bit. good funds funds the think little probably

really which a a fund has in to talking XX-week those about period close lumpy. just You’re are and

year, and – and that. So, while so back, close. back are just that’s into it to very but it been I doesn’t a Europe close, help We half if hired There’s they do a great many – year about successful. a we a doesn’t feel

that’s well. So, gone

our an the and of think – primarily some advisory non-American business. not going primarily really advisory, work a It’s but Americas, is we IPO IPO I well. it’s it’s in do extremely European more

in was them, what other And products look on look, capital so a and all the to that some things substantial quarter, hasn’t in quarter, all the they’re fund business. slightly markets, of hard first – just down, the deals. It’s were is it really was the like slowdown the as first helped advisory. at lumpiness some but quarterly just of And down

Jim Mitchell

Right, anything the overall Is for and else the And there down. fourth Joe, to usage the call cash earnings side? in buyback cash the were or maybe on I of noticed just lower levels that that out a okay. function is quarter

Joe Simon

is There call It combination share to of and out. was No. unusual nothing buybacks. earnings a the

Jim Mitchell

Okay. Thanks.

Joe Simon

Sure.

Operator

The next Ramsden Please from Goldman question be Sachs. of Richard will go ahead.

Richard Ramsden

Ken. Hi,

have are on to up So, the last at the was sidelines? I or people that activity sponsor year, panned were that the sponsors there financial of guess financial out year got sitting or way offset, was a optimism some even start has M&A late going pick strategic plateauing the side, kind expecting and prices the but of that on to level where

Ken Moelis

it it’s has think out and the volatility. not – kind It’s I of panned No.

to gone the I equity – private obviously swear dry of lot the private fund word So, alternative in hedge to allocation left a in of spectacular. raised the lot mean it’s is I to and world there these a always but capital I money sections. The is is money allocation powder, of hate equity. just

money be spent. is to there lot a So, of

the the Now what and based was think somebody, is, to say of thought had comeback But the cycle, I do you end what a somebody I It was happened cycle. last it October with between of the Fed, happened the you the and do markets again, move to end that cycle I the people indications ending. first gradually Richard, move had find the over had then what lots saw on that with well, when – they saw is of December in like, declaring get December, the had year a it’s could And February’s a it’s and just also valued go really an X price. private market don’t lower December. down then prices of when this to get sponsors, rebound sure And Everybody’s to difficult companies were they’re sell by price. the execute a and hard sort multiple asset equity of come volatility to points lot hey, not in who remember companies who pay much come they you to just saw the at own to person quarter.

I So, speed and the not quarter the reason. the agreed-upon there it economy. the of within was fourth were That was of lot the certainty think previewing and a in economic the market – that downturn was – more that the the

it’s the prices. So, not

prices trigger much more feels to the think I leveling stable, they are lead are fairly think stable. that when transactions. the more the fact volatile, that fairly – being now a able People price see I level off and and not pull are to will

Richard Ramsden

And the relative were for transactions or that market? we resistance how or is in there Have recovered to characterize credit some would LBO things X of you availability X fully where months ago? still say

Ken Moelis

again to lower think in I I’d XX% where I close say tested, they’re I most the to haven’t XX%, going below, that, bank it’s It’s people prevent a fully probably a than but it’s give almost deal. think are tad it or markets the active to think I XX%, tad don’t recovered. XX% was. gets trading credit and so it

issue I think transaction. executing not that an in a credit is

Richard Ramsden

Okay, alright. Thank you very much.

Operator

ahead. go Jeff question Harte Please be of next And Sandler will from O’Neill. the

Jeff Harte

guys. good couple me. Hey, afternoon, A for

near about being what efforts, as there future, lack a bit? can and in from the of recruitment year-to-date of a comments the have you I’m kind from announcements earlier of As your promotion thinking to kind coming of are to growth recruiting away kind your a bit you little far MD hiring backing heavy and talk appears been

Ken Moelis

out will we No, be there.

March and wait some is check industry, tricky then quarter late get a who kind quarter bonus to first the hard they’re that’s for you’re hiring always February, have of think because to in a a done. going people job it’s usually event, just to everything clear, I the their if

is tough of The if might you’re cycle you’re in them. that’s somebody hiring, you industry not first kind get if in of able to bonus quarter hiring the pool, be a

I we backlog. a think have healthy

in bonuses cycle, desire hold for somebody to is talking you not you’d really, Most have a Ken lot up I’m of know to decided, them desk week amazed talking wouldn’t We’re be, about. at the talking people. lots Moelis candidates call, and the we’re from get a before industry, a probably to not you show all are how we’re so of backlog high. interested on strong meaning a do people are in what it be we their of But and in

everybody people of caught, so to that at the dark and period function conversations. conduct And I few you those think for time we weeks case the a can of we just talking quarter hard and has job short and they we in at done. where So, very get bonuses get a to the I you’re active have go transaction think it’s answer this just point. a end only of first being are No, anticipate but – a almost – through is,

Jeff Harte

of first Okay. hitting completions earlier issues timing of And clarify to comments to not about and closing delays your kind or things you’re as the or opposed kind in just mistransactions to quarter, like referring terminations that?

Ken Moelis

I’m no, talking about everything. No,

deal come the told proceed Look, we’re over the would long price, of and doing timing we us regulatory, There those client is long-term you advice. to for you you business for XX economy, best were like tails on a to things there proceed, go weeks, not sometimes not during were the were that’s the if flip moves. better. the basis client row, that that just in your we we’re – the you or said not have let’s it absolute – possible by where on were reason those I that both We dozens is a devoted to say us you of sorts time, not do me why, the either way XX-week the numbers ask deals going forward deals were to to evaluate our thing of I’ve talking made the XX have question. close whatever lot that’s health resources a give on about was to this and think As do the transactions thought table and deals complete, there decided because to – feel a reason the there’s let that or now last out and a for the could this of us company all put we But reasons, I’m is right complete in. best

announcement, a percentage happened X,XXX the personally, that an thousand in we once than spots of in reasons all why while, and incurred a transaction completion. it me closure are it by like end felt And with of last where for there So, live months. It’s completion, a any might it the and larger happens our And not it’s didn’t but deals abnormal ways a the XX-week over up could completion, on does. normally period X the a just get fun through, you every say I firm reach compensated. when way, to

not makes if clients something So, no, good of have all use yes, in that off, some those road, sense. were most that based may but on are those down they that though, but clients. us the timing good stead they’re I might There were still we’re not and people know and just be deals of I put with happen to closure, news

Jeff Harte

Okay, thank you.

Operator

to back conclude And conference Moelis thoughts. ladies and closing gentlemen, question-and-answer I that like hand our over his to session. the will for would Ken

Ken Moelis

Well, call. everybody deliver you you. quarter and appreciate great it to the and Thank appreciate model we our a showing being on to was I And feel what and but still we understand, about all can listening know up I of difficult I explain discussion. and the

Operator

Thank has the At for may you, lines. today’s disconnect Ladies sir. attending you this gentlemen, your conference and Thank presentation. concluded. time, you

Moelis & Company (MC) 30 Apr 192019 Q1 Earnings call transcript