FOCS - Earnings call transcript Q3 2018 | Focus Financial Partners Inc

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

Operator

Good day. At this time, I would like to welcome everyone to the Focus Financial Partners Third Quarter 2018 Earnings Teleconference.

Our host for today's call will be Chairman and Chief Executive Officer, Rudy Adolf; Chief Financial Officer, Jim Shanahan; and General Counsel, Rusty McGranahan. [Operator Instructions]. I would now like to turn the call over to Mr. McGranahan.

begin. may You

Rusty McGranahan

I'm Financial everyone. the Counsel General Good Rusty Focus Partners. of morning, McGranahan,

duty risks begin, Financial the turn you from statements. made its number results currently update Before course to me may, of with on it Rudy. to which let from we remind materially assumptions Focus' that Focus will These Partners, of call, Focus We your forward-looking could and such to cause that, cause to and founder, any results no I statements. may some available statements the to results materially over the statements. does With based fact of course, Focus differ uncertainties that these these information we make statements. that not the lists forward-looking our may finally, from filings undertake by a differ has involve and that to of statements. differ factors of made call Focus attention these And this SEC, assumes the during are

Rudy Adolf

good everyone, Rusty, and joining morning, you, and for thank us Thank today. you

remarks. I are from three away you my Here to the take like would that messages

environment. First, it we in highly Focus The of continue the a continues prudent advice megatrends value welcome supportive to fiduciary demonstrates macro towards as operate and volatility wealth management.

beyond XX.X%, well revenue net income adjusted respectively, and per stated you as tremendous of have, see, will XX.X% growth demonstrated Second, XXXX and again, we share goal. our

to unique has industry. position results such, As Focus' our in quarter demonstrate the of continue strength third our

on. that pleased quality we working currently of very quantity the opportunities by are we Third, are and

shift the planning advice and the continue confident that are Focus We financial to well positioned affecting taking of advantage tectonic is market.

that portfolio logical I receiving increased we in delighted in company. public industry, now consolidating the path we current planning with We been potential in We're was in business our of always Focus status been as our level most choice the an from and our that have very responsibility of and attractive partner firms. opportunities high-growth of that for financial provided number been by cycle billion partner earned of are life we've leader a market an a a reasons. advice in and Focus' a take and seriously. revenue market IPO believe confident partners, as pipeline partners my has this $XX the momentum As interest a

this a our and One this most of by industry benefits X and in successful to into enhance expertise Historically, entrepreneurs constantly the practice promise model unavailable we success we partner employee. of technology, is practices working is management, purchasing of limited attract HR to an entire levels has power been turn business we in bringing to has previously organized compliance offer had very and best our marketing, and adding successful by Constitution attractive are Focus our and this This Furthermore, access Article around operations, never entrepreneur industry. capital. the principle.

fair dedicated We unique the provides threat inadequate to value planning. of attractive as advisors this the entrepreneurs we transition generation. to succession of an the to into become solution the providing offer face only Focus founding a space. of is assisting alternative industry, largest true by next one have This while the generation conduits the capital leadership to

are and firm, in operational acquisition-oriented of inorganically achieve and our are scale. to strengths to we excellence and generated organically we committed have economies leveraging we While history growth our through both

very our that like economics we those continue, an manager. Before investors to remind are asset from of would different I

in Our personal financial their and lives. partner They firms deeply providing in are holistic to become clients. ingrained advice and intimately

portfolios life performance manage rather from provide are family. planning but advice positioned, on to typically not Our assets major Client conservatively firms equity against financial market a exposure. everything impacting benchmark, do of the partner particular reducing a events

As a markets. advice grow year. of need the the estimate XX% and continue lose multiple long Clients clients need partners hybrids revenues to any of year continue that banks, houses result, channel. The every independent, reason over another advice client-centric, third and continues market. independent after the for generations. the to and We volatility conflicted This are is RIAs to exposed via grow the approximately to and assets the significant holistic directly and our run, to they financial correlated given that for to fiduciary quarter less we were versus model which year not

than advice capitalize seeing on fiduciary and well We all expect in abroad. a U.S. partner partners these over more are these a us we has XXX alone, We as the fit as towards be targets join world. we could for that Focus movement and the could existing suitable firms time. X,XXX that trends to good the independent firms over are believe to trends our continue positioned U.S. In

of program, brokers model are date, houses. advice. independence our via a XX,XXX journey within of the support In there we towards fiduciary brokers To over addition, through

but So a of Focus transition highly the opportunity small, support has elite brokers. group a qualified to of terrific

Now growth highlights some XX.X% from we, adjusted per income growth the let's XX.X%. quarter, revenue review net demonstrated again, of quarter. of and In third of share our the third excellent business other

growth. organic, strong X.X%, both As in a at prior periods, mix inorganic and growth of reflected

slightly Advisors, firms; XX.X% net new onetime Edge impacted acquired strong point the XX.X% keep guidance. some growth our quarter At million inherently predict to and closings to at to more of that beginning mind combined difficult schedule base Management in and Capital of quarter, timing the in versus with were of XXXX next entrepreneurs year. of M&A $XX.X third share, it the respect beyond are inclined important Vista It's expectations with With per due our of closing we income added year, precision, is in exceeded had effects. with transactions. Group the usually earnings. of the Asset Wealth we timing and this to to performance, In partner While QX three the the revenues adjusted we

on access forward QX about strong company And or M&A third we $XX.X that adjusted firm, growing of growth accretive Family our of organic the foreseeable ahead. transaction. our one continue announced a transactions we Loring Financial our base the activity. to order The momentum the respectively. we and excellent driven have our strong This and the signed closed, we added seeing merger the Services. demonstrated capital Ward businesses The million. expertise Buckingham we revenue and and firms and eight they highly holding acquisition pipeline and represent of track and a per would business by partners. acquisition XX.X% end our able growth as quarter, growth. to to When Holdings the is Year-to-date, and experienced XX.X%, Buckingham be M&A with expected synergies are we to offer earnings year, client transaction Ward Loring to a total of net the is merger opportunities on through example perfect The to of future in of partners' a planned are is a partner existing income to this largest in combined have of transactions. at executing outstanding due prior of This will XXXX, in are to that transaction grow peers with new Buckingham expected their close is of contribute looking how to had this relationship year-end now, indications Importantly, with early history share partner while

to we to In provide the pursue to addition, our partner we opportunities will growth, value-added enhance through acquisitive services also firms. continue

of our As discussed during as road-show, our for the business. viewed our IPO we an momentum accelerator

are that can Focus primarily a with transactions We the reflected to excited and company. excited entrepreneurs. by particularly Loring remember. quality of with existing opportunities This is other very more are tremendous public driven set currency demonstrated partner current late-stage that see. industry number by our of a our now our that on in in working of our are access that the We're and the I and pipeline quantity we we is are of sees for many deals Ward the simultaneously of having quality We're any strong number transaction discussions public firms. mergers as we time Focus and in in than the credibility thrilled opportunities extremely

course, deal partner is Buckingham in potential. and from Loring size Of its with the unusual Ward

always Focus has to However, a preference as mergers. partner execute firm transactions

excellent that bring to capital. are value-add partners, expertise to and we an these M&A with mergers combined our including First, access discipline,

Second, a expense these highly deals synergistic the offer are strategic perspective. revenue from and and

in excellent to opportunity of our capital highly provide deploy Third, accretive these way. a an many deals

our of at existing of our these an ability by year-to-date, for come. of IPO to doors with as hope many our that our Given strong performance to continue Based XX XX, new financial to advise public we're a grow that excited opened company we transactions we has September on to for us. network the partner you more to facilitate have tremendous firms the business opportunity years now XXXX,

growth organic continues that that the come. We to many model our to volatility opposed attractive market lead advice opportunity unique supported to unique The by fiduciary value-add towards trends strengths years demonstrate be this other can we highly to gives industry to Our believe as and leverage and macro-environment driven underlying a market to advice. sectors. we continue a for have

financials. to review for Now quarter I'll third the a more call detailed Jim the hand of Jim?

Jim Shanahan

morning, Thank you, everybody. Rudy, good and

presentation. a in The on managing XX, Focus reorganization XX-Q of contained membership connection Inc. the a of statements the of offer series is July the First, those I'd few in of results which that our XXXX, press completed financial financial Partners were to transactions Partners Financial and include and became member other and like public Partners, the the Inc., which of of our the disclosures Focus our in Financial company format on interests release with and LLC outstanding Focus of majority in our IPO. GAAP owner comments Financial

the only the third consequence, July. to a non-GAAP fact information entire for share the attributable presentation, period quarter information through account our September We net quarter As XXXX. for common this the supplement XXXX our that IPO reported for despite loss in financial occurred the July reflects to which results provide XX, per shareholders XX, into GAAP from takes loss

million of fees our financial in the revenue year. Rudy last the third the an quarter million of or XX.X last third XX.X% to We total of or million XX.X% the quarter Wealth third strong third mentioned, As increased XXX.X to results quarter reported performance compared management company. year. XX.X represented increase compared of quarter, for

XX.X% the was XX.X XX.X operations in was connection from for expense compared down lien first a and in XXXX. of Interest XXXX. the lien the Additionally, year. second to revenues million after third of compared X.X% of the was million in recurring. of XX.X quarter the quarter the during continued result loan third with Loss quarter XX.X of fee-based million was XXX we the revenue of loss in partner IPO, last XXXX quarter to repaid completed XX.X our million the In was compared Organic new the our million the quarter million paid XX.X million acquisitions of million to in growth term firm loan of loss Net third quarter quarter we XX.X quarter Approximately in as XXX.X the XX% and outstanding term growth of the XXXX. be of third million. excess by of third to third XXXX. to net revenue compared

months per share per $X.XX net income For the September XX, ended share. XXXX, was three adjusted

sheet. Now to balance shifting QX reported the

equivalents XXXX, XX, to on All compared approximately we XXXX. XX, cash stated at million million XX, We outstanding had September XX, XXXX. $X.X facilities of XXXX. borrowings December September at of $XXX to our at loan $XXX million had December $XX.X value $XX.X XX, represents cash and XXXX term billion at September a million As compared credit

XXXX. acquisition under our we've be revolver XXXX, and of the July at to the loan were revolver increased $XXX outstanding rate activity. million. in margin will the on discussed The no used amendment became As primarily capacity interest credit and revolver with for amendment September revolver from to an our facility borrowings There borrowing IPO. This XX, $XXX term million reduced connection effective on our previously, XX, our closing

in mentioned, acquired X earnings base and of confident added continue Rudy ability As are through with we new partner to approximately growing have $XX.X both firms acquisitions. million combined we our and organically

income execute revenue we and earnings strategy not per of be ability specific remain net growing we time. our average, will to over confident long-term annual XX% on on our While guidance, and in on our revenue share adjusted providing

concluding Now I'll back to Rudy it provide turn over to remarks. some Rudy?

Rudy Adolf

and proposition Thank In strengths Jim. partnership the we you, fiduciary quarter unique third model value differentiated demonstrates summary, the to approach performance of management. of believe our our wealth

call track we'll we a is Operator? and bright now record company has future. as that, public very questions. believe a open Focus the Our With to start a off tremendous for

Operator

[Operator Sachs. line the Instructions] Goldman Our from of first question Alex of comes Blostein

now Your line is open.

Alex Blostein

question first for Rudy, So you.

From on could impacting comment Just the there's got the level. your how little like deal partner hoping trends the choppy your just the of the both a that I for you Focus bigger potential bit picture choppier recent fact and level little if a maybe could you comment in that banks more and a bit slowdown it obviously, pipeline? comments, on with seasonal market conversations impact so backdrop, QX, but thinking, on any how does targets, that's that have guess, sounds

Rudy Adolf

Alex. Thanks, Yes.

and worth ultrahigh show, yes, are Yes, in a in first value And the which in So in good as it's the business. because are in it when this we really the preservation wealth many net of we advice, are and fact, high ways operating primarily foremost, what actually we road partners the worth net our so segment. is prudent focusing is volatility, fiduciary what see on. thing shows I discussed

remarks, in the my so ways, like volatility. as many in I So said I

good what approach major some I excellent. constructing we a really that there's in ultimately towards client terms impact And remained see was the thing. if our don't in it's helped or portfolios. of our our think took prudent retention I the learned And one partners very their XXXX, flows thing

Alex Blostein

going question, the back again, then environment. And the of second kind to

other obviously, related not XX% but of is. the market revenues, XX% So

QX how impact organic you So that help revenue I weakness come us how an that's should fourth guys about how guess, of the the initiatives obviously, kind going base, the aside quarter, but market impact and in given just understand we to QX the think can should on on through, from results? inorganic

Rudy Adolf

this asset think you ultimately impact income. impact We a of an from what equity said markets. us And you is should balance, on will the balance believe management, perspective. from before, based non-correlated. perspective Yes, revenue that an that between are a is it's XX% about of I've correct. portfolio So or major EBITDA Yes, really balance no the there on course, fixed on and equities this prudent primarily be

Jim Shanahan

Just of model. we a model have management a couple is variable and P&L preference perspective, add XX-plus obviously, our the just from the there, are Alex. percent revenue fees to unique Remember, with things our XXX% and fee-based recurring in the

revenue you we recurring. bit fee-based the But It's flow beyond that preference. if year-to-date, for XXXX, closed obviously, we've million the to graduated the sensitivity preference or and have firms a on previously also X at is line number we on million. look $XX.X disclosed just to So earnings. new $XX.X not months, with there's that the model back the the XX-plus a go percent have of it's that model cash even obviously, target unique on in of $XX.X Obviously, 'XX, you million have

Operator

comes of of next Carrier the from Our Bank Lynch. Merrill America Mike question line of

Michael Carrier

Maybe first one.

revenues we quarter, that at M&A look impact there onetime I mentioned be if rate. in organic growth weighed items on Rudy, think some the the on was the organic, on may you maybe and timing Just the some

seems asset all So might been any just client market meaning just just look growth it limited from mix that? on think Because the more that around equities, have have balanced, in but it's granted impact, quarter? like tailwind I if benefit, a that organic of somewhat least at color a is the market the would the not the color any basis, year-over-year like at we it

Rudy Adolf

have XX% think, growth you revenue just me our organic. number. I half X.X% of about also context from excellent an in coming is of of same-store see to the guidance which the And state let First, is,

third you the look but the think yes, M&A second when Specifically, within months, impact close when timing, through is the first in the I month, the they month, the quarter, deal substantial. the in

or to help of big about for we a basically have going that close we fourth be expect very in end will the announced the on to year. number quarter. so And example, the transaction, Loring Ward It's at the as

close depends that's excellent The with final Focus that The two it However, when fit had partner retained. we within event, in onetime we piece the pieces. moment. an basically firm it split really one we really was

for small the that onetime Another this a separated retention ultimately what's in these times. are we affluent, net rule environment, that net X% you -- Because the strong difficult was is unique see thumb, issue be organic so ultrahigh really out always Yes, things. are again, before, said greater before, the -- in extraordinary of frankly, have In even of are going flows to the in there in is very, scheme beneficiary we space, affluent as and and of quarter, learned are as we yes? and recurring, mass there, event not is, from, worth we impacted. But to I the really part, we But worth small so we any us. was plus important but substantial distribution quite not about this probably XX% assets number, traditional is worried of very so would you of about partial client be high think we that that is very remember said market client even more that. Client new Jim have throughout, an course, players, retention. fee-based growth retention to

positioning. of quite is are about 'XX, front. a dust be settles, will importantly, it's we conservative quite XX% And post demonstrating side also advantage saw and impact momentum, non-correlated. of we very Yes, we the positioned with advantage once the merger not positioned talked particularly the deal the take to are there so be we and are of merger that that we worried frankly positioned partners market on attractive this. We And are uniquely very balanced that our and this the in take number opportunities will uniquely to that

yes, lower frankly seeing and we quite which strongest pipelines long the of X.X% have So when is was XX.X%, still one And that excellent. just than decompose but levels in X.X% an are you it, we activity is high number, a time. extraordinarily seen

feel about So we very are. where we good

Michael Carrier

And given an to how the one thinking for update outlook. just the in I leverage just model, deal on just about get you. wanted like, the Jim, you're maybe

Loring the it the pro market you volatility. of the update guys Some then an how maybe with deal? on and forma And calculate Ward

Jim Shanahan

So morning at the previously X.XXx X.Xx September. We and Loring well we this was as the guidance after gave filed you'll Ward and about we'd in on transaction see levered leverage this the Q that be closing quarter.

to So we're borrowings revolver Ward still use and perspective, pipeline, with deal leverage. with longer-term the to of with staying we'll Loring There And an estimate fund outstanding And X.Xx. no term from of guidance the then Xx at that was cash a Xx guidance long we're our aggregate a X/XX. as revolver staying transaction.

Rudy Adolf

you are about And Mike, gives appreciate, if opportunities that think if this firepower working us you the enormous also on. we

with and strength the really can continue tremendously. we sheet So the balance to flexibility, grow business the this of

Jim Shanahan

and And million on XXX at it's current LIBOR yes, level, leverage based is the the revolver XXX. plus

it's mentioned. the So to with Rudy that currency an deal attractive pipeline

Operator

line KBW. comes Our the of of next from question Voigt Kyle

line open. is Your

Kyle Voigt

think is partner more on background. split give some firm that and earlier? that assets were I onetime Rudy, you just follow firm you what that a just Like sorry, what some exactly I that happened can event there? there that, up or you Could left. said mentioned

Rudy Adolf

kind the to very own institutional the what of that ultimately is impact, of of had is what and the you the less two it's we and of it, net Focus but their doing. decided, Point small Point. we're firm create doing, with worth it partners it yes, institutional excellent a a was the part and was the worth umbrella. business of business outside on see separate good supported and a fit business a fit our And and But now smaller in part are website. high Overall, was Trinity firm net Trinity Yes, which very we a an an partner high business

Kyle Voigt

I on of non-GAAP adjustments for another Jim. one guess, just some the maybe

those X to added? needed another legal be there. a fees are to was or onetime cash of that that million And expenses the clarity there million of comp so headcount related think IPO. there's or some excluded. Just I then Were X.X

you were some those what they to expenses? more related just adjustments? clarity million were. or think some I guess, I that was aggregate give about of them of Ward different I around Loring think onetime or X.X Loring onetime Ward Could

Jim Shanahan

Right.

units the As we to LLC in had prospectus, shareholders disclosed downstairs have certain shareholders and non-accredited certain from company. the move we the public to had up

So adjustments within shares for non-accredited, other shareholders a XX% some had the we were on we there that then premium employees and for that other XX% non-employees and moved. had

went X.X connection recorded executive really purely aggregated So to the None that to just was with expense in onetime a million management was those cash the IPO. in and reorganization the connection that that IPO. with in of here, it's proceeds

basis. So those items forward aren't on recurring a go

So out. it we that's called why

and Regarding of other just regulatory the transaction bit of X the the little onetime charges, Loring million a on approvals or was thought forth. we based a Ward, size, so so unique

was have that We'll QX charges third are the primary this Those XXX,XXX through as quarter. the about quarter. in in of components So onetime well. some the

Kyle Voigt

guess, I guess, quantify of get... we'll one-timers that you're the you I size, the expecting can

Jim Shanahan

the we're but QX, maybe somewhat within range slightly an still it, as We're of working estimate, higher. probably through

Kyle Voigt

on when quarter? the when IPO that count -- at incentive XX hurdle they I units, last then rate. those share the X.X the the get into fourth the just -- million through fully And common full X.X are unit we fully one, Okay. to running were you're be quarter count. million in guess, of fourth -- equivalent Where The you're Or those included, when XQ kind in calculation? at going share the granted come

Jim Shanahan

Yes.

to income share the And the the that per have you're distribution hurdles, X, in adjusted all was units calculation. referencing. all XX-Q downstairs included yes, is filed that you you the if Footnote the into the of down shows this an that go net when morning, and which was pull million So opportunity X.X incentive it number

Operator

the of of And Blair. Chris our line from next William comes Shutler question

now open. is line Your

Chris Shutler

was said I said nonmarket revenue XX% that in correlated, of QX, earlier approximately In the prospectus, had you think. XX%. I you know

the has Or So rounding? just a difference in the change is business? there been

Rudy Adolf

the basically revenue importantly, It on be full us. of mix partner not going joining new is constant this partner our impact dynamics It's a within very quarter. of in firms course, No. firms This depends the to and number. the

joining for very healthy but such to NKSFB's we a where So that example, is very increase opportunities ultimately has these right to present of XX% was impact. want it's right type and number important clearly for It's be, therefore, the this opportunities We ratio. if kind further we think an acquisitions a are very number the open of themselves.

Chris Shutler

Okay. on that of just portion revenue -- at the market quarter, so remind can is And we the how market if one then the in -- the XX% that look in so the the you sensitive, or more your ask us has much intra-quarter? how strong a of I impacted of QX is on opposite. kind markets asset because that gets a -- -- QX quarter typically Just was billed Obviously, been ending for How prior much by the quarter markets. sensitivity, balance?

benefited to that action? So extent, quarter to trying just from the if market what revenue in your any, understand

Rudy Adolf

are and all Yes. equities the it's before, And fixed The equities. different it's touch of over methodologies not a billing all course, It's really said income. as then, firms. across I the very non-correlated balance, XX%

I such methodologies. guidance on billing different can't that. more you give as very really And it's So

Chris Shutler

and year, that on improve I made services I partner in just expand you smart firms. provide the asset bit Rudy, more? guess, a lastly, that maybe but that then, to the expand release, value- know added And the working little about investment to you comment you earlier Okay. press this talked

Rudy Adolf

we Yes, hand are join to join at very may of means services firms partner obviously, they what basically us, value years, value-added marketing -- with in Value-added partner fiduciary yes. when partner the Absolutely, a in of have the believe, Chris, model step X.X% on all you same X.X% every we an pretty about we they after the think entrepreneur system, obviously And add Clearly, all to and to way business our have do the yes, we, the want technology, time, excellent course, impressive as one growth-oriented X can join and the us services, is wealth in a their revenue are illustrated firmly they during is what -- we S-X, But competitive marketplace. to client you it from value-added. we because the where we growth operations firm the experience. firm remember, way Chris. management us, increase. our is in about the because is access

program coming our out to up firms we grew manage -- we with do this of program the there where experiencing the you think a training deal first spending and yes, I to this powerful kind we just year, of One will of revenues many Harvard are a will an much performance. to but partner think basically together very sustain need which And new out, are be across proprietary really one firms. us, partner we that's a program it's is to rolled frankly, reflection just good our But organization launched almost is how very -- are in hyper-growth. have hyper-growth, be week in to problem months that of our -- have, the of about growth businesses this don't XX.X%. quite I the going mind, some to there of this with level -- it's keep in you who this X XX partners, have growth

at forefront of value our to it's important continue And partners. to adding we be that really so really, the

Operator

question of from Sachs. of the Goldman Our line next Alex is Blostein

Alex Blostein

A follow-ups. couple of

guess, I first, on So Loring Ward.

should again, the a unique on was what's fact sort you've in side, revenue rate, your So from hoping the which synergies quite given this and I and first flesh expect, in once given revenues EBITDA? what it's guess, you more I quite a it's the quarter of sizable past. 'XX, on the fully it's transaction, help could then of can cause run would both understand, the what us on impact little you out you that be the transaction And versus be done

Rudy Adolf

Yes.

Buckingham, you the exciting this and is or of it but that ability are will the So the assets is is a is first the are and sense see technology, with yes, operations pieces have we did advantages, you're the sales to, TAMP for has on a largest overhead leadership very that Ward there investment firm, specific our executed TAMP. strategy. what's numbers, have. Adam marketing demonstrated And this partner And had this not overtime, most ultimately migrate have under it correct, disclose the that RIA team This unique but Loring did so that Ward over the it's merger the have We course, but traditional in Buckingham Buckingham deal Loring we been the capability and is in largest was when a there -- important, not deal quarter. highly virtually Ward don't Buckingham, Loring a was merger. to It Buckingham about flawlessly RIA. there savings, substantial in Birenbaum's in highly impact 'XX a synergistic is in synergistic. because, did

as about the an cycle strength technology, step-by-step, migrate benefiting beyond we strong we the time, outstanding a we'll mentioned, TAMP Buckingham excellent behind thesis with to where solution investment Ward. economics and transaction with of value TAMP with also Loring gradually, And Ultimately, highly RIA always single-digit what deal value-added see into this has. we that course, It's life this very the to similar just the is initial Loring ultimately Loring attractive Buckingham. was that have Buckingham from the so Ward from has proposition. And significant be experienced that assets advisor Ward able whole much the offering over accretion

have and So single-digit synergies then you closing, accretion meaningful at substantial said, subsequently. we believe, as both we

Alex Blostein

And is of as on rate it guys talk guys just current that the base by of Focus' When are accretion, 'XX, quarter, year run in clarification. EPS is about full you is one accretion, single-digit kind it current you what's using? 'XX,

Rudy Adolf

Accretion rate run the the basically run of Focus. It's rate. to

Alex Blostein

earnings? current So

Rudy Adolf

Correct.

Alex Blostein

Okay, one one, more, promise. last

of XQ, XQ quarter. understand in thinking million So of the $XX.X acquired this kind run in $XX.X already much us earnings, us in some we're about you the Can is base in? bridge how as comes million rate that just of helping as help guys

Rudy Adolf

rate. certainly new of acquired, So number is to $XX.X ability is the Asset the number and a the we is the And think strong don't what's it's Advisors, million to exact what's a what of acquired $XX.X quarter break of our again, But is Edge the the million attract group. preference I and what on on. within reflects business it We run firms, believe, and Vista -- reflection partner again out excellent model. we our strength

to close in that's usually, and the said next year. as As in prospects note, my QX, I remarks, said to deals referred Alex, I tax the our important

and activities, So that of remember can that of ultimately, normal QX have positive excellent That's, of I level helped that be strongest forward. otherwise, very very IPO frankly quite have pipeline, But course, in in next the the an January a itself very, us there's M&A. I the would think generate momentum, -- year. in we I but going lot

Operator

conference remarks. the turn Adolf session. question-and-answer closing this Rudy time, like conclude to this I'd at does to back Mr. over the for And the

Rudy Adolf

Well, all for thank you joining.

said, for we it's again, numbers very year-end are quarter all I -- to industry-leading talking and we you questions. the looking good demonstrating And are thank and we here. believe that call, certainly you, our forward had a at As to

Operator

conference. you Ladies now your great conclude a participation have day. and for the program, thank gentlemen, This does in you Everyone, may today's and disconnect.

Focus Financial Partners (FOCS) 14 Nov 182018 Q3 Earnings call transcript