PJT - Earnings call transcript Q1 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the PJT Partners' First Quarter 2021 Earnings Call. Today's conference is being recorded. At this time, I’d like to turn the conference over to Sharon Pearson, Head of Investor Relations. Please, go ahead.

Sharon Pearson

Thanks very much, Jennifer. to Partners' welcome earnings quarter and call. conference morning, the first PJT XXXX Good Head Relations of Pearson, Sharon I'm Investor at Partners. PJT Officer; me joining and Chief today Paul Officer. and Executive Financial Taubman, our Helen And Meates, our is Chief Chairman

important to Paul, I these and financial forward-looking in and Before point assumes that Factors that update today want XX-K, differ want statements statements. section factors of you statements conference factors that These XXXX out no over Risk make contains make there may performance. any subject non-GAAP course on Form forward-looking to we evaluating the are call, the forward-looking which We I the we indicated actual I Partners' described various which during are believe a cause contained is call uncertainties, duty outcomes in turn from pjtpartners.com. this materially the are our in to to the risks the to and in meaningful remind that company we statements. number these believe PJT could available measures, are that company's presentation of at website to those

on should we data these turn call and For detailed And that, also website. the with this reconciliations, contained over Paul. you I'll available the metrics disclosures morning, GAAP refer within the issued the non-GAAP to release financial to press on our

Paul Taubman

and revenues of $XXX adjusted thank million of for strong We're and you, us income all quarter to you first share pretax per of million, Sharon. of morning Good $X.XX. with Thank report pleased earnings joining adjusted XX results, today.

share a inherent their Compared revenues, XX% Park quarters and respectively, in leverage Hill strategic offsetting more outpacing ago operating income earnings adjusted first far XX% Our strongest our pretax to from levels, declines per in the growth adjusted ever, in and we business. and businesses our both as grew than benefited PJT deliver restructuring. year advisory

our businesses beginning with of each to in detail, restructuring. turning Now more

restructuring COVID-XX XXXX backdrop, or meaningfully market XXXX lasting, continues for term many might that been XXXX the levels, our franchise generate Against now a number this currently which by either assignments companies into XXXX to revenues, high long we is that restructuring was pushed caused leading resolved monetary notwithstanding to into pumped damage macro later levels. be certainly with economy. watermark the meaningfully stimulus above below and further, broken, were XXXX. out this down into past are XXXX but While expect near Drilling accelerated quarter fiscal restructuring, of the a have irreparably

As a result, the of of XXXX year. the weakest shouldn't first revenue quarter our quarter be restructuring

in restructuring second to We and be first than the quarter half be greater year. the of first the second the revenues to expect year greater of than half quarter in the in our the

PJT verticals, with Park the significant to full all equity a track the year for global at the with roster PJT is In quarter, combined demand Park franchise. Turning backbone revenue our differentiated Hill, alternatives distribution compared our Hill, leading our of investor growth managers, drove of stronger best-in-class is first a to After year-over-year to highest private XXXX. PJT on gains. Hill record quarter, in performance had first favorable secondary’s We ago in and levels. Park comparisons achieve year showing record capabilities

has the revenues and breadth Turning as increased. to also year-over-year, advisory of strategic advisory, strategic up practice depth were our

ago, continuous driven we Camberview. mandates. of increase markets levels, reflecting revenue was our of footprint, record global by pre-announced capabilities discrete value number Three completed our expanded capital of the contributions about and PJT strength our So dollar strong declined while substantially from and months the year a M&A advisory talked in number revenue pipeline ago performance significant too, completed record the transactions events, from has transactions, and our of advisory,

number that, to into cautioned as transactions. towards success outlook. of mandates announced expect predict then, also and ultimately back now our up in these our continued unable has of of completed XXXX, active we we advisory Since mandates the of, to the in turning However, of timing many and has with be were our most year full We growth meaningfully year. the strategic grow strategic confidence advisory the in weighted half to

they We opportunities keenly be stronger of are grow each still ago, demonstrably talent our our to to continue investment investment powerful to XX%, resulting the is market remain and biggest our share, on capital businesses with strategic across engine. months the advisory by in to and greatest years and and While offsetting our resonated shareholder and model given share our and remains our on away as capital pandemic, fundraising Reviewing will see Investing markets, than last this The return continue how today compelling total increasing were to be been highest by has structure, most integrated five investment, of backdrop opportunity. we from of advice our far attract priority. approach return we headcount headcount unchanged. focused and capital our XX%. our priorities, clients. share repurchases, grew well has engagement the investment mergers a the and acquisitions, capital In growth capital our partner XX we issuances, platform. We people continues against view to the

back spent equivalents. million during X.X have vested we on half quarters, units earn-out X.X nearly have almost of offset and repurchases million four These buying the the second repurchases, $XXX that shares past million XXXX. entirely the share Over

units exchange, year-end XXXX Our continued in cash our have awards will XXX,XXX for and the offset entirely equity to as decision second well. employee repurchases have with quarter we partnership the our settle presented

the the point this balances pace in cash year stand with levels at quarter even accelerated the repurchases. ever first at of highest Our

our more Now, over financial to to review Helen detail. in results

Helen Meates

markets revenues, The $XXX million, reflecting million, year-over-year you, increase XX% $XXX a advisory year-over-year. of year-over-year were for revenues X% an by total offset capital X% with Thank revenues restructuring the Good million with revenues, in advisory. revenues in quarter revenues particularly the increase Paul. Beginning strong placement largely strategic revenues. in up up $XX advisory, in Placement fund morning. decline breakdown were were down

we expenses, to prior non-GAAP expenses adjustments described are X-K. consistent These quarters, more presented with fully Turning adjustments. certain in with our the

expense. expectation adjusted our accrued compensation quarter, which the adjusted the is year and outlook XX.X% for business. current first revenues expense based compensation our the of at for We for First, current is on

adjusted As XXX of ratio the was XXXX XX.X%. this a full than percentage ratio points revenues, comp basis of lower year

non-comp million in Turning the expense $XX.X non-compensation adjusted first expense, XXXX. quarter to down adjusted in quarter $XX the million from was total first

to last the expense our costs. was with travel we in professional for consulting well the as for a As XX.X% much The where expense a non-compensation from same expenses One quarter activities decline to first reduction reflects the relating fees, year. and of year-over-year normal related activity was period had increased the quarter expense of travel down significant revenues, XX.X% percentage in area of last higher year. as firm's recruiting first highlight higher business compared

the higher be by communications first the than increased that the increase more And IT, year, Excluding and compared quarter last related recruiting costs. senior up with year continued expense XX% in non-comp period same travel for year. a expense an and driven number of investment and advisers our last expect in X.X% to bit versus expense, full we

travel expense, expense how as pick much a approximately of related our up. month terms too travel and per by $X it to But related and travel is activity point, reference and still million in our when will In XXXX. was soon forecast

share, for taxes last was income adjusted a have income as tax tax our converted relating XX% year-over-year. is tax into was vested the XX% resulted the our reduction applied taxed their provision cost. tax at quarter during a pre-tax This effective adjusted the all We at for in compared amortized pre-tax first we the XX.X% XX.X share our first corporate benefit for $X.XX to margin And million prior rate. The partnership the up income. to we first four quarter. adjusted The our the delivery share year. in presented value first been first if-converted annualized and pre-tax to rate benefit also Turning period reported Share than to of with rate for quarter for in the shares. shares with count X.X% XX.X%, average earnings which shares the Earnings with results higher of that same the quarter, $XX.X quarters, rate per a for of have the year. weighted million quarter, per the compared were was count last adjusted takes as share our the up $X.XX first in quarter account quarter, per our units XX%

currently open of came for the we in X.X During repurchased from units of for The We're done shares approximately of obligations. we equivalent for the as exchange have XXX,XXX the including market. in units. partnership million settlement net XXX,XXX notices cash. cash and employee tax shares first share of And exchange partnership will receipt exchange the of repurchases past, balance units these in we approximately approximately the quarter,

million the for balance cash record the first was and we quarter investments, equivalents On $XXX working with quarter net sheet, cash, which a million in capital. in ended and short-term balance cash $XXX

outstanding is We no full debt have and credit available our to us. of line

dividend XXXX. will a Paul. turn The of back share. record to common be With Class to Board of I'll June the Finally, dividend $X.XX that, on XX, per X, A XXXX of as approved paid has shareholders it June

Paul Taubman

Thank you Helen.

growth mix it’s and our highly in In us any with of and positioned to the terms distinctive of provides most ballast firm differentiated enable outlook, complementary, for diversification and environment. our succeed to our businesses

relationships firm, opportunities that businesses our our extremely to will Enormous more your as and before, As remain in integrate we we And continue confident leverage become take prospects. grow our each with now businesses questions. across all And future more capabilities of of powerful our formidable. we and abound. to and our

Operator

[Operator first line to Devin open, Securities. Thank your is maybe we'll on Ryan mute. with you. JMP Caller, Instructions] And you go

Devin Ryan

me? This is you guys hear Can Devin.

Paul Taubman

morning. Yes Devin. Good can now. We

Devin Ryan

about technical Paul, the outlook Sorry terrific, first I that. all little clear. very guess, appreciate difficulties here. A

or mandate it front? potential the change could about appreciate just credit see for what Just in about business to are something curious to regulatory new potentially here? But the the guess, what capitulating And changing, market think and that thinking so You catalysts dynamics revenue how backdrop on I something year. we change or there restructuring resurgence there? need trajectory activity just could on are more you tone the for I what of activity the broadly? business, companies that Is create type the, the

Paul Taubman

in winners basics backdrop. it playing is about and that way for Sure. clear enormous shaken now business has it really And the in COVID is models with some Well the talked number marketplace. field start the we've What losers we while. macro a that an up business done has disrupted of have let's of first and has the a which clear irrespective of

baseline considerable of accelerant we're And about world. preferences, We level going business a being habits, period clearly if and of activity or to And restructuring was the been on that's a of less and that that we've available, in about top move we're fewer pre-COVID. prospects, hospitable, which on and XXXX to maybe to environment. there's than is -- see take no for dislocation what changes keenly time, of become right that, way trend in restructuring notch tethered if post-COVID are when severely of So the the than And backdrop. XXXX. to change refinancing it hurt that risk there two is current our greater said we the doubt the consistently markets why an we be always level customer more. it that restructuring capital higher just and opportunities will now that the up macro many is by continuing a damage about some or businesses have if Then be in talk meaningfully on people capital that caused buying the talk because less

I is its higher, rates. rates that interest If then interest dislocations. own move think series of creates another

as So baseline. in the absolutely to we environment, macro that of see this a are restructuring belief more we're going

record ebbs change does, going as immediate to are about or that of not take that record should to outstanding amounts, as up quantum as in we're you're imagine potential that in the And meaningfully. conditions for restructuring flows. certainly that the world levels opportunity, on can also debtors. when And But and inevitably overall debt is We but find it we're one we because banking see term. believe that going a near and favorable -- the

Devin Ryan

in one XXXX. at Clearly, activity the on, starting solid expansion. just level about Okay. good Great. push Thanks, And Paul. then a pull guess And headcount I very a and the investment the in XXXX banks current thinking most had just pretty environment.

And recruiting It have bit kind backlog for thinking on. working a pretty guys the active people just are they're of senior XXXX they years? about doing of year deals just Maybe that so talk out of sounds people banks couple a about quite you to ability that from current the recruit over of we'll backdrop, that little expectations recruited like given you benefiting that on continue the a bit. past where

Paul Taubman

Yeah.

We an continue of be choice. to employer

growth have aspirations. We significant very continue to

have continue like people the and be face front, else, conversations if to right this now, of more recruit a puts in blowing stool, active one would but direct virtual than the legged We market on a is can sort recruiting It always world when headwind say three difficult is What in our physical to virtual engagement. to just expect in in very world. as clearly that environment. proximity is given may there's and stop and be about it is, I takes any you think anything

Our hope our somewhat, health that this more more efforts. we'll the be face-to-face, recruiting should be to as that is receded additive do to and of crisis helpful and which able

decision as fearful and power with aspirations certainly built us and you increasing second XXXX. M&A by place way out, there's at oftentimes it's that by, are platform recognition firm, about trade. the where favorable this once. In get difficult to that is culture in to in for And those day doing learn a be best we've practice there leaving people the existing career is many nurtured to to lurch. The and never the the you of practitioners that that their special to But right a professionals be a switching activity, of every clients all Both to because point for a world, that everything trade the lot goes be learn. they to of they're it's senior for junior the is winning and may going make the

some always we're out, the that year franchise. in and platform year have we and confident our meaningfully So some in continue things meaningfully the favor, perfectly But not aligned. our to to to things are ability grow grow in

Devin Ryan

here getting questions this Paul. Great. more. Okay. One I'm Thanks, some morning.

Just comp on the ratio...

Paul Taubman

Sorry, we lost you.

the on comp You just said ratio.

Devin Ryan

level. The XX.X% ratio, the obviously in than is XXX lower Yes. basis year comp quarter first accrual points, the full XXXX the

on your of just view is the of just a in it of a flexibility revenues shift quarter? that I'm But the getting the any accrual and in comp questions. couple this for year accruals or of I flexibility giving additional in some So indicator anything just there's as else model. kind kind an stock-based the outlook of question around, whether that's

Paul Taubman

look look were year growth Look, few is absolute that period. at or I Number at basis in our multiyear will about a talking And I'd if compensation you terms leverage consistent over at deliver at points it's model. were one, a we over years, pandemic that we two we XXX are What you where terms, we're with always say things. pre-pandemic, total which look last the the if we two And expense believe, of XX.X%, years. two years, those comp revenue the entirely over revenue pre-pandemic.

we start So there.

percentage which there's any estimate second or terms. from to of capita basis. I event accrual. most is most I the full move later expense we start as of start accrual, of in either last think that very we're a the with down. strong is, our the on most It some the be it year It we with in position exogenous strength. our a peers. grew grew our the year It therefore, compensation the up us absolute And of per to grew a best very position also year And think year, causes comfortable this this unless going in

Devin Ryan

That’s Thanks it. great. very much. Appreciate

Paul Taubman

Devin. Thank you,

Operator

to next Sachs. go with We'll Goldman Ramsden Richard

Richard Ramsden

morning good everyone. Hey,

more mandates substitution environment So these and delay, on between environment, business. perhaps to a into as a kind upfront? is result I restructuring it you financing I can comments of or mandates restructuring of what you are is, seeing of of a I much question in the restructuring a seeing follow-up you are which better i.e., mandates M&A is your better and some alluded shifting ask M&A, the my And economic the guess guess,

Paul Taubman

right? bit have It's of broad little a based everything, a we Richard, business.

in So environment. a we risk-on are

a that example. risk-on for So headwind as market also to clearly environment in is be going a is be but it going stack an for tailwind the to restructuring, a

of we think seen is like this constantly had activity figure public well here to elsewhere. an through environment, refinanced a that see a not just opportunities created instances refinancing be losing I there's merger where otherwise and market this and to that not more a how to opportunities in what have rather we're SPAC all the out all is might stack interest noted business So more others number which them meet -- challenging, have for of it's it's I payments. inviting gets to as trying than And taken has but may available have companies creating sudden debt

So and anywhere lot over is we But issue. don't in have I it's near there curtailing which But XX,XXX restructuring one-to-one. think that feet been inviting over that. a here. which the of some an has while it's a of risk-on here, remains, businesses is environment, fact basic always is activity activity at dislocated idiosyncratic are we're

pain levels don't So, company. XX of in of want every see if you want to you to elevated restructuring, have units

companies. pain You want in units a those to of of subset XX see

And restructure. the or fundamental more to more unchanged. remains that the need and disruption, element ordinary is, to that able be So likely the those not I will withstand the think companies that's or concentrated the dislocation, we'll pain shocks,

Richard Ramsden

us XXXX out in quarter year. restructuring about for helpful. And this which sense as That's to think the about can you the the we restructuring year-on-year comparisons thinking business, right. peaked over course model give of All just how revenues in? I'm a Okay. we as

Paul Taubman

half the year. back active was more year the rear meaningfully its the I teeth of the was half back as than mean, year. the clearly, the It of Yes. half of to first began pandemic

Richard Ramsden

year Got And advisory and type. to about looks it. strategic like extraordinary it's in like Okay. we by terms announced And looks the bit talk just an least perhaps it deals. can the also business. start And then it geography a of little broad-based very client at

and of effect is about catch-up in sort XXXX, you this or how year, do think have effect the could of do you you what there just indicative given of of things is you about pace of think from over the the you first some when activity, course So see start pull the or an think think economic quickly forward quarter? changed the standpoint

Paul Taubman

there's but number which that we just of it's The broad-based that continue backlog it at predict dollar activity The a broad is the much. transactions, the year for polar pending did a When but seeing, the year. matured industries activity, respects of of announcement is the And transactions expect pandemic is announced the we look, when came a year it's the M&A the merger very and it it pending in different into phase. us into year of were paucity started not values of in announce a these mandated we're year, sign later. ago, quite to bevy the is at reach is, or that with for tone. does more different already $X had leading transactions enough many period of transactions. we last -- which speak it inside move are -- at increasing appropriately mandates, encouraging geographies, we're we the not levels And that an we This Last to to look had And the close activity a most either of assignments accelerated persist hit, of at transactions, the for this opposite no announced transactions. to why, that increase considerable we with if time. then many the There's current environment constructive this months close year And ability I you three transactions, very came which to billion-plus pace mandates complete year, across of maturing health. doubt not cautious that's can't the three strong a the months I will billion-plus new and the is whether likely year many basis. the $X of very we're acquiring number pace near-term in broad-based. think number forward-leaning fact the the many

Richard Ramson

Okay. lot. That’s helpful. very Thanks a

Paul Taubman

you, Thank Richard.

Operator

Chubak Wolfe We'll go Research. with to next Steven

Steven Chubak

morning. good Hi,

Paul Taubman

Good you? How are morning, Steve.

Steven Chubak

a has rate tax to the speak to I question just you corporate Yes, potential just I doing Paul, changes regime. changes on the tax how okay. was had either hoping to could or tax PJT, tax capital And guidance any incorporate, all? your actually dialogues could rate? on could you gains to that just Biden's impacted impact how share at proposal if maybe own specific

Paul Taubman

with first of It's rate tax putting than the start administration to since kind the Well, one. awfully done in let's go proposal we something it's how way the an long get to the And hard and Congress. our about, affect there's to between proposal. trying going talk haven't forward to seen

all because if wasn't XXXX not as, sorts going in a you in them focus changes the take Republican there the policy. you I go that rates increases I to back in prefer of on And conventional was early or refer wisdom can in whatever forward. would victory reforms of on much will year macro shapes say tax power. What any is, different the the capital administration So point these the tax speculate therefore, and gains on or to year want into early to changing remaining think Trump or I

time to what the right might certainly lot running if that optimize manage not did absorb typically taxes, with individuals, see it by were asset from an we was there particularly a the in you the is the of dealing COVID. because increase the to that portfolio And businesses of a in be which the to the your positioning, change there of I time that family-owned think right a be as might an like in see their and not fact optimize of was market even and began middle COVID. process with value to taxes, depths you

to I for very different an rates think or as state because advantage pull a in forward pop and to macro relatively a have clearly who environment or new these a I be planning they valuations new where all to a a others are activity you coke take and and to of potential want you of duration current gains. capital short a would adjust increase things there's and attractive that capital robust a sellers, out in and now But some likely there's families equilibrium. people you most likely tend in be number rate, gains with we're rates. regime they tend strong a expect be once as backdrop, get new to are

Steven Chubak

perspective, Thanks some market. on the the discussion follow-up earlier And SPAC for that of Paul. on just a

large in very momentum engagements. couple solid a SPAC of really had has winning company Your

We fundraising more Admittedly, the still are fee funds those some raised. hearing SPAC there's tied of concerns to activity. events already around sustainability significant

thoughts the of expire? beyond those maybe for to as from your So events XXXX are expectations that activity want get fundraising I your outlook for to fee M&A here. just how informs some And set on

Paul Taubman

more companies long long-term time, this cost and quite the all becomes still constructive And talked I've I'm for I to about for and M&A. cyclicality cycles greater, we any that, the dislocation business business while And with we've cannot of on levels of greater laws M&A increasing a where of the of given said else be the the expect market. equal standing repeal higher macroeconomic will see active. backdrop,

on not in be a benefiting said said market was I arbitrage. field always the we've them those as think, we we've playing SPAC always And leveled. benefits time, the away of market that expect part but exclusively, taken becomes over in that part, is regulatory many to

able So period SPAC process to always expected, reduced. many we've which and is, the discovery that the finish talked number real from fact a in pipe transactions to all much companies because in the quality to companies is best this of be cause best, their it not to listed. get respects working it would have a likely are that don't of and expect respects many to impact risk-on the that otherwise indefinitely. price enabling is that the which public long-term be the third at would persist. we're to longer. lot also much fact exist the We advantage But that markets those continue pace find market, start we've about may a And We conditions to expect way for the is don't to likely flight in extraordinary that nearly we're that of a as we with phenomenon truncated But to others. talked the as of the an us about to not is

with. very of of denominator transactions numerator much. total to with because which the companies So we're doing business the of relative think we think We do number of the done lens positioned to get move shrink. not that to others taken do respects, see to well I we're that we in many we've transactions which discerning And the

Steven Chubak

Thanks for question squeeze sure That's you one not I'm Helen. in Paul. a or could better I here. just more is the for If great. color, this

Just of in can next how the those And five changes trajectory at to years leg comp as end constructive you've growth? insight the set had guide. incentive company, is on that we're compensating you as beyond into leadership might a to know all? XXXX Admittedly, approach share some about if evolving the how the any just for inquiries journey a year. at your those of gave expire just impact public we think But you guys the your awards now I management. are

Paul Taubman

really ago that's we When about incentive program sure at I in has worked the time, we'll Look -- leadership the incenting most decide six and our the which senior we're this extraordinarily I'm for I think to years is, appropriate talking Board put well. shareholders always place forward We've try whatever shareholder And that first. new and you in XQ. figure presentation it's is reality anything do after imagine partners in communicate we've to about putting that the in designed. always alignment. believed going how can't had XX we're But best out to I believed path

Steven Chubak

Thanks That’s Paul. great much my color questions. for so taking

Paul Taubman

Thanks Steven. Absolutely.

Operator

next with go Seaport to Global Securities. Mitchell Jim We'll

Jim Mitchell

good Hey morning.

Paul Taubman

Hey Jim.

Jim Mitchell

Maybe -- just again. ask growth, about about a the bit little partner

all new I you Park in think about a first in kind Could growth your of in had maybe had is or growth? we think fact there was partners higher? -- at there few How saw lot promotes we by I you I about is in look of both XQ. if of that the do Hill that that XX the partners time a struck in or years. kind and And presentation, restructuring

of So, you think imply that? that a greater as kind does set post-COVID opportunities a about that those to of way in two growth businesses is see that

Paul Taubman

you imagine of story is each depending how down. drill different can upon businesses for the there you As a

from Hill also platform, extraordinary some have stability those And have If point businesses. careers you business we some have grow want the had as business, XX-year of Park these partners. and both they in in deep look extraordinary up benches had we become businesses, those at to a step on businesses of in of the have but over also restructuring individuals business. time back who the have we the them those And individuals at number where

at entirety the near-term partner Hill really now you'll more Park hybrid probably look the need Directors. we've if There individuals more time, I in sort in you is think opportunities, the look in which at you who promoted and period some see the of through near-term of else, as recruited reflective growth restructuring would both considerable you broad-based platform of you to anyplace a a number look believe count, year. those. than I partners at to if in it's will Partners. of the Hill strategic the Park the the in advisory, to we're restructuring but arc. be which sixth of businesses but who And into after come are is And it's Managing they're of

strong when half you apropos have of promote advisory, think have one, those bit years to want of my dozen a is about then operating six And comment or external really earlier other. you whether So, of hire six of strategic a also individuals. of an we an very a bench of and the history internal as

we're So advisory that see a in were our years growth to in we to when one, a going two, into possible, approach hybrid way increasingly wasn't journey. strategic three

years six are our up professionals of in, colleagues we're us. that, Now and with many growing

Jim Mitchell

helpful. Capital think you'd That's see talking Markets And that the then you and offset about of do get it's potentially in alternatives. there, the kind How demand maybe thinking some just pullback businesses, about, of the if environment risk-on Right. clearly restructuring helped, you've the Hill a do think we growing. we about business, I Park for been get what clearly,

that we do Hill, could fact the a think how Park the capital businesses markets in about So from and and markets activity just versus for mean impact impact advisory what grow organically? to that you're potentially slowdown trying a of capital macro those

Paul Taubman

market the been think are managers in always doesn't most is tied that, There's on. both all They They number and taken would best the markets. They in domain environment. It's every want a to any therefore, of to expertise. market. tied They we've very and equity risk up down skills. read And which our focused services. the capital every it's negotiation reach. has want things, advisory our year, similar and and to comment, enormous of inherent the geographic to year. those business want be that just of they debt is my change to deep be able broad Hill be the all base arrow of the to And take engage best decisions, the advice. it's for prefer the to very it's in They of that want I with much smaller of advice quiver. and SPAC just much elements want they of another They so want sophisticated shareowners. said They funds want encompasses wants lot which making discriminating an want to good a they integrated fact firm. quite And more not our to moves Park always it advice. being want to sort to that, client brings growth in is it market number demand those capable that business, growing that they

awfully time. see I for trends favorably So as long an playing for us those out

Jim Mitchell

All That's Thanks. right. great color.

Paul Taubman

Absolutely.

Operator

next Michael go to We'll Brown with KBW.

Michael Brown

you. Thank Good morning, Great. Paul.

Paul Taubman

Michael. Good morning,

Michael Brown

overall, I earlier. really contribution that to it historical of been appreciate, recent total the that's guess, volume. of of mega green kind the to comments the kind to digits. greater start want where deals somewhat announcements years cap the strategic has Microsoft deal, you year has high-single SPAC. might amount one some saw gave with the XX% I and than and I But shoots lagged nuance been this XX% advisory. be billion. area of soft deals We with there It's But grabs $XX

there strength dialogues you Because back of a we the curious, more So, last scenes? market? that's up think just the of and behind that get you Do that wanted as year? there are of there expect segment saw to that the market, kind of your we about of to see thoughts into half happening year, how really lot get what the kind some segment just the is that so about pick

Paul Taubman

mergers – mean, are $XXX deals. mega appetite market and large I there deals there's and et when mega with talk there’s one deals, there's you about then for companies billion-plus very of a still I deals, cap cetera. But robust another with large think

dollars. awful of I an those limit much year. below don't types difficult. it's current scrutiny tens this policies more that se. more still the very of of there's of billions in transactions cautious that at and transactions and I lot think as probably size in point some the sort about like, the we will there's geographic as regulatory outlook larger presidential scrutiny larger, think talked political chessboard. had with get receptivity champions I our for issues some horizontal I and heading and in the or create and terms a the of national transactions inevitable dealing is, but into environment you're the you the and which regulatory combinations, inevitably large for this the mega-plus political desires are with reality a for there's don't of as and think protection election think cycle, And in per just

really that, tend that overall So effects its bit aftermath. premature, more COVID-XX bit M&A M&A as we overall point to wax it's some on at as And the what and things real cautious wane drive drives probably but and activity. It see but return we're really don't dealing those will we're with it and doesn't a a profitability. of still I think

Michael Brown

all appreciate I color there. Great. the Okay.

me. more for follow-up Just one

I share of tie issuance your the to first and record volumes on you if quarter. this just was in the levels count Just and wanted share think some guess cash try – comments the – together repurchase, your about quarter higher there

count as there So share some Is that could out obviously, possible awards count maybe of modeling this comment share how vest up year-over-year fourth that to flattish a should it the about also think your and or the quarter? Just was we a about for about Thanks. year. guess here later modestly the think stay we get modeling once to we I from perspective.

Paul Taubman

even look to creep, turn Helen the I in Helen. our massively. I'll But earnouts, you that? we've grown think good if though you to over a job think done share and leave I you business do any aside – avoiding But take want it quite if we've time

Helen Meates

Yes.

been a don't float. buying the control of getting to shares is, added way preferred And end we and of we volume open last of that comes cash address year think shares. impacting back to for million The also we're the flows the way I X.X that earnouts. us. that exchanges going the for dilution with count that, is our the demonstrated but remember without you the to shares supplement have we've at a and If share to also issue we And market, back in of is then all us mindful the with

think you all any time, quarter. the going expect achieve do pieces that over not said have able be in I dilution take to to And it to we've to be we what manage together. to So you're is particular but able

out look as year, I of history the end But I dilution. hard up think have predict, in where think demonstrate So count. we that of we'll it's throughout share mindful terms we to too been of rest would the

Michael Brown

commentary. for you your Thank Great. Okay.

Paul Taubman

questions, are – are there if any other or there Well, we.

Helen Meates

think we're I done.

Paul Taubman

think listen going earnings or next you I we're to you next to the on see the on call.

thank morning. safe us in So our for and interest for your company, all well. you. this Thank you you Thank stay be joining

Operator

conference. thank We for you does conclude This your today's participation.

PJT Partners (PJT) 27 Apr 212021 Q1 Earnings call transcript