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Houlihan Lokey Reports Fiscal Year and Fourth Quarter 2020 Financial Results

Record Fiscal Year 2020 Revenues of $1,159 million
Fiscal Year 2020 Diluted EPS of $2.80
Adjusted Fiscal Year 2020 Diluted EPS of $3.20

Fourth Quarter Fiscal 2020 Revenues of $303 million
Fourth Quarter Fiscal 2020 Diluted EPS of $0.90
Adjusted Fourth Quarter Fiscal 2020 Diluted EPS of $0.96

Announces Dividend of $0.31 per Share for First Quarter Fiscal 2021

Houlihan Lokey, Inc. (NYSE:HLI) ("Houlihan Lokey" or the "Company") today reported financial results for its fiscal year and fourth quarter ended March 31, 2020. For the fiscal year, revenues grew 7% to a fiscal year record of $1,159 million, compared with $1,084 million for the fiscal year ended March 31, 2019. For the fourth quarter ended March 31, 2020, revenues increased 4% to $303 million, compared with $291 million for the fourth quarter ended March 31, 2019.

Net income increased 16% to $184 million, or $2.80 per diluted share, for the fiscal year ended March 31, 2020, compared with $159 million, or $2.42 per diluted share, for the fiscal year ended March 31, 2019. Adjusted net income for the fiscal year ended March 31, 2020 grew 11% to $211 million, or $3.20 per diluted share, compared with $189 million, or $2.87 per diluted share, for the fiscal year ended March 31, 2019.

Net income was $59 million, or $0.90 per diluted share, for the fourth quarter ended March 31, 2020, compared with $45 million, or $0.69 per diluted share, for the fourth quarter ended March 31, 2019. Adjusted net income for the fourth quarter ended March 31, 2020 was $63 million, or $0.96 per diluted share, compared with $56 million, or $0.86 per diluted share, for the fourth quarter ended March 31, 2019.

"Concluding a fiscal year of record performance is a point of pride for all within our organization. It remains a tremendous accomplishment, but needless to say, our attention quickly turned to the onset of the COVID-19 crisis and the pronounced drop-off in global economic activity. While we enter this period of uncertainty in as strong of a financial and strategic position as we have ever been, challenges, no doubt, lie ahead for us, the economy and the world as a whole. Notwithstanding this rapidly evolving and uncertain environment, we have an advantage in that we built our business to perform during all cycles. Though cyclical disruptions take time to work themselves through our reported results, we are confident that our business will emerge from this crisis stronger than ever," stated Scott Beiser, Chief Executive Officer of Houlihan Lokey.

Selected Financial Data

 

(In thousands, except per share data)

U.S. GAAP

Three Months Ended March 31,

 

Year Ended March 31,

2020

 

2019

 

2020

 

2019

Revenues

$

302,694

 

 

$

291,378

 

 

$

1,159,368

 

 

$

1,084,385

 

Operating expenses:

 

 

 

 

 

 

 

Employee compensation and benefits

186,706

 

 

190,391

 

 

737,762

 

 

692,073

 

Non-compensation expenses

47,333

 

 

40,436

 

 

192,005

 

 

173,215

 

Operating income

68,655

 

 

60,551

 

 

229,601

 

 

219,097

 

Other (income)/expense, net

(2,259

)

 

(1,922

)

 

(6,046

)

 

(5,223

)

Income before provision for income taxes

70,914

 

 

62,473

 

 

235,647

 

 

224,320

 

Provision for income taxes

11,900

 

 

17,125

 

 

51,854

 

 

65,214

 

Net income attributable to Houlihan Lokey, Inc.

$

59,014

 

 

$

45,348

 

 

$

183,793

 

 

$

159,106

 

 

 

 

 

 

 

 

 

Diluted earnings per share

$

0.90

 

 

$

0.69

 

 

$

2.80

 

 

$

2.42

 

Revenues

For the fiscal year ended March 31, 2020, revenues increased to $1,159 million, compared with $1,084 million for the fiscal year ended March 31, 2019. For the fiscal year, Corporate Finance ("CF") revenues increased 6%, Financial Restructuring ("FR") revenues increased 11%, and Financial and Valuation Advisory ("FVA"), revenues remained relatively flat when compared with the fiscal year ended March 31, 2019.

For the fourth quarter ended March 31, 2020, revenues increased to $303 million, compared with $291 million for the fourth quarter ended March 31, 2019. For the fourth quarter ended March 31, 2020, CF revenues increased 8%, FR revenues increased 3%, and FVA revenues decreased (8)% when compared with the fourth quarter ended March 31, 2019.

Expenses

The Company’s employee compensation and benefits, non-compensation expenses, and provision for income taxes during the periods presented and described below are on a GAAP and an adjusted basis.

 

U.S. GAAP

 

Adjusted (Non-GAAP) *

 

Year Ended March 31,

(Dollars in thousands)

2020

 

2019

 

2020

 

2019

Expenses:

 

 

 

 

 

 

 

Employee compensation and benefits

$

737,762

 

 

$

692,073

 

 

$

706,019

 

 

$

660,388

 

% of Revenues

63.6

%

 

63.8

%

 

60.9

%

 

60.9

%

Non-compensation expenses

$

192,005

 

 

$

173,215

 

 

$

176,476

 

 

$

164,136

 

% of Revenues

16.6

%

 

16.0

%

 

15.2

%

 

15.1

%

Provision for Income Taxes

$

51,854

 

 

$

65,214

 

 

$

71,078

 

 

$

75,310

 

% of Pre-Tax Income

22.0

%

 

29.1

%

 

25.2

%

 

28.5

%

*

 

Adjusted figures represent non-GAAP information. See "Non-GAAP Financial Measures" and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable GAAP numbers.

 

U.S. GAAP

 

Adjusted (Non-GAAP) *

 

Three Months Ended March 31,

(Dollars in thousands)

2020

 

2019

 

2020

 

2019

Expenses:

 

 

 

 

 

 

 

Employee compensation and benefits

$

186,706

 

 

$

190,391

 

 

$

184,415

 

 

$

177,123

 

% of Revenues

61.7

%

 

65.3

%

 

60.9

%

 

60.8

%

Non-compensation expenses

$

47,333

 

 

$

40,436

 

 

$

45,063

 

 

$

38,864

 

% of Revenues

15.6

%

 

13.9

%

 

14.9

%

 

13.3

%

Provision for Income Taxes

$

11,900

 

 

$

17,125

 

 

$

11,230

 

 

$

21,236

 

% of Pre-Tax Income

16.8

%

 

27.4

%

 

15.1

%

 

27.5

%

*

 

Adjusted figures represent non-GAAP information. See "Non-GAAP Financial Measures" and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable GAAP numbers.

Year Ended March 31, 2020 versus March 31, 2019

Employee compensation and benefits expenses were $738 million for the fiscal year ended March 31, 2020, compared with $692 million for the fiscal year ended March 31, 2019. Adjusted employee compensation and benefits expenses were $706 million for the fiscal year ended March 31, 2020, compared with $660 million for the fiscal year ended March 31, 2019. This resulted in an adjusted compensation ratio of 60.9% for both the fiscal years ended March 31, 2020 and 2019. The increase in GAAP and adjusted employee compensation and benefits expenses was primarily a result of an increase in revenues for the year when compared with last year.

Non-compensation expenses were $192 million for the fiscal year ended March 31, 2020, compared with $173 million for the fiscal year ended March 31, 2019. Adjusted non-compensation expenses were $176 million for the fiscal year ended March 31, 2020, compared with $164 million for the fiscal year ended March 31, 2019. The increase in GAAP and adjusted non-compensation expenses was primarily driven by higher operating expenses associated with the growth of the Company.

The provision for income taxes was $52 million, representing an effective tax rate of 22.0% for the fiscal year ended March 31, 2020, compared with $65 million, representing an effective tax rate of 29.1% for the fiscal year ended March 31, 2019. The decrease in the Company’s tax rate during the year ended March 31, 2020, relative to the year ended March 31, 2019, was primarily a result of the vesting of stock that occurred in April and May 2019, as well as decreased state tax expense. The adjusted provision for income taxes was $71 million, representing an adjusted effective tax rate of 25.2% for the fiscal year ended March 31, 2020, compared with $75 million, representing an adjusted effective tax rate of 28.5% for the fiscal year ended March 31, 2019. The decrease in the Company’s adjusted effective tax rate was primarily a result of decreased state tax expense. The decrease in state tax expense was the result of a favorable state apportionment true-up that occurred in the fourth quarter of fiscal 2020. Historically over the last several years, we have not experienced favorable true-ups of this magnitude and we do not expect to continue to receive them in the future.

Quarter Ended March 31, 2020 versus March 31, 2019

Employee compensation and benefits expenses were $187 million for the fourth quarter ended March 31, 2020, compared with $190 million for the fourth quarter ended March 31, 2019. The decrease in GAAP employee compensation and benefits expenses was due to a reduction in acquisition related retention bonus payments accrued during the quarter. Adjusted employee compensation and benefits expenses were $184 million for the fourth quarter ended March 31, 2020, compared with $177 million for the fourth quarter ended March 31, 2019. This resulted in an adjusted compensation ratio of 60.9% for the fourth quarter ended March 31, 2020, versus 60.8% for the fourth quarter ended March 31, 2019. The increase in adjusted employee compensation and benefits expenses was primarily a result of an increase in revenues.

Non-compensation expenses were $47 million for the fourth quarter ended March 31, 2020, compared with $40 million for the fourth quarter ended March 31, 2019. Adjusted non-compensation expenses were $45 million for the quarter ended March 31, 2020, compared with $39 million for the fourth quarter ended March 31, 2019. The increase in GAAP and adjusted non-compensation expenses was primarily driven by higher operating expenses associated with the growth of the Company.

The provision for income taxes was $12 million, representing an effective tax rate of 16.8% for the fourth quarter ended March 31, 2020, compared with $17 million, representing an effective tax rate of 27.4% for the fourth quarter ended March 31, 2019. The adjusted provision for income taxes was $11 million, representing an adjusted effective tax rate of 15.1% for the fourth quarter ended March 31, 2020, compared with $21 million, representing an adjusted effective tax rate of 27.5% for the fourth quarter ended March 31, 2019. The decrease in the effective tax rate and adjusted effective tax rate was a result of decreased state tax expense. The decrease in state tax expense was the result of a favorable state apportionment true-up that occurred this quarter. Historically over the last several years, we have not experienced favorable true-ups of this magnitude and we do not expect to continue to receive them in the future.

Segment Reporting for the Fourth Quarter

Corporate Finance

CF revenues increased 8% to $156 million for the fourth quarter ended March 31, 2020, compared with $144 million for the fourth quarter ended March 31, 2019. Revenues increased primarily due to an increase in the number of closed transactions, partially offset by a decrease in the average transaction fee on closed transactions. Notwithstanding the quarterly increase in CF revenues, toward the end of the quarter we experienced a reduction of transaction closings and decreased new business activity due to the COVID-19 pandemic, and we expect this slowdown to continue for some time.

 

Three Months Ended March 31,

 

Year Ended March 31,

(Dollars in thousands)

2020

 

2019

 

2020

 

2019

Corporate Finance

 

 

 

 

 

 

 

Revenues

$

156,081

 

 

$

144,440

 

 

$

646,788

 

 

$

607,333

 

# of Managing Directors

123

 

 

108

 

 

123

 

 

108

 

# of Closed transactions (1)

84

 

 

64

 

 

309

 

 

284

 

Financial Restructuring

FR revenues increased 3% to $103 million for the fourth quarter ended March 31, 2020, compared with $100 million for the fourth quarter ended March 31, 2019. Revenues increased primarily due to an increase in the number of closed transactions and a slight increase in the average transaction fee. As a result of the COVID-19 pandemic, we experienced an increase in FR new business activity in the last part of the fourth quarter ended March 31, 2020, and we expect such increased level of activity to continue for some time.

 

Three Months Ended March 31,

 

Year Ended March 31,

(Dollars in thousands)

2020

 

2019

 

2020

 

2019

Financial Restructuring

 

 

 

 

 

 

 

Revenues

$

103,079

 

 

$

99,601

 

 

$

352,517

 

 

$

317,774

 

# of Managing Directors

45

 

 

44

 

 

45

 

 

44

 

# of Closed transactions (1)

29

 

 

27

 

 

99

 

 

81

 

Financial and Valuation Advisory

FVA revenues decreased (8)% to $44 million for the quarter ended March 31, 2020, compared with $47 million for the fourth quarter ended March 31, 2019. Revenues decreased primarily as a result of a reduction in the average fee per fee event. As a result of the COVID-19 pandemic, we experienced a reduction in transaction closings and a decrease in new business activity toward the end of the fourth quarter, and we expect this slowdown to continue for some time.

 

Three Months Ended March 31,

 

Year Ended March 31,

(Dollars in thousands)

2020

 

2019

 

2020

 

2019

Financial and Valuation Advisory

 

 

 

 

 

 

 

Revenues

$

43,534

 

 

$

47,337

 

 

$

160,063

 

 

$

159,278

 

# of Managing Directors

30

 

 

33

 

 

30

 

 

33

 

# of Fee Events (1)

624

 

 

605

 

 

1,385

 

 

1,377

 

(1)

 

A Fee Event includes any engagement that involves revenue activity during the measurement period based on a revenue minimum of $1,000. References in this press release to closed transactions should be understood to be the same as transactions that are "effectively closed" as described in our periodic reports on Forms 10-K and 10-Q.

COVID-19 Update

The COVID-19 pandemic has had a substantial negative effect on the global markets, and has created uncertainty, volatility and dislocation among a wide variety of sectors. The scale, scope and duration of the impact of the COVID-19 pandemic on our business, revenues and operating results is unpredictable and depends on many factors outside of our control. We note that revenues during the fourth quarter ended March 31, 2020 were negatively impacted by the COVID-19 pandemic and we expect it to continue to have an adverse effect on our business, revenues and operating results in the short term. However, while our CF revenues will be adversely impacted for an indeterminable period of time by the economic effects of COVID-19, we have seen an increase in the demand for services in our FR business.

Balance Sheet and Capital Allocation

The Board of Directors of the Company declared a regular quarterly cash dividend of $0.31 per share of Class A and Class B common stock. The dividend will be payable on June 15, 2020 to stockholders of record as of the close of business on June 5, 2020.

As of March 31, 2020, the Company had $516 million of cash and cash equivalents and investment securities, and $37 million of loans payable and other liabilities.

The Company has a syndicated revolving line of credit with the Bank of America, N.A. and certain other financial institutions party thereto, which allows for borrowings of up to $100 million (the "2019 Line of Credit"). As of March 31, 2020, no principal was outstanding under the 2019 Line of Credit.

Investor Conference Call and Webcast

The Company will host a conference call and live webcast at 5:00 p.m. Eastern Time on Tuesday, May 12, 2020, to discuss its full year and fourth quarter fiscal 2020 results. The number to call is 1-877-407-4018 (domestic) or 1-201-689-8471 (international). A live webcast will be available in the Investor Relations section of the Company’s website. A replay of the conference call will be available from May 12, 2020 through May 19, 2020, by dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and entering the passcode 13702412#. A replay of the webcast will be archived and available on the Company’s website.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words "assumes," "believes," "estimates," "expects," "guidance," "intends," "plans," "projects," and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors (including the significant effect that the COVID-19 pandemic has had on our business and is expected to continue to have on our business) which are, in some cases, beyond the Company’s control and could materially affect actual results, performance, or achievements. For a further description of such factors, you should read the Company’s filings with the Securities and Exchange Commission. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. The Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Non-GAAP Financial Measures

Adjusted net income, total and on a per share basis, and certain adjusted items used to determine adjusted net income, are presented and discussed in this earnings press release and are non-GAAP measures that management believes, when presented together with comparable GAAP measures, are useful to investors in understanding the Company’s operating results. These adjusted items remove the significant accounting impact of one-time or non-recurring charges associated with the Company’s one-time/non-recurring matters, as set forth in the tables at the end of this release.

The adjusted items included in this earnings press release as calculated by the Company are not necessarily comparable to similarly titled measures reported by other companies. Additionally, these adjusted amounts are not a measurement of financial performance or liquidity under GAAP and should not be considered as an alternative to the Company’s financial information determined under GAAP. For a description of the Company’s use of these adjusted items and a reconciliation with comparable GAAP items, see the section of this press release titled "Reconciliation of GAAP to Adjusted Financial Information." Please refer to our financial statements, prepared in accordance with GAAP, for purposes of evaluating our financial condition, results of operations, and cash flows.

About Houlihan Lokey

Houlihan Lokey (NYSE:HLI) is a global investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, and valuation. The firm serves corporations, institutions, and governments worldwide with offices in the United States, Europe, the Middle East, and the Asia-Pacific region. Independent advice and intellectual rigor are hallmarks of the firm’s commitment to client success across its advisory services. Houlihan Lokey is the No. 1 M&A advisor for the past five consecutive years in the U.S., the No. 1 global restructuring advisor for the past six consecutive years, and the No. 1 global M&A fairness opinion advisor over the past 20 years, all based on number of transactions and according to data provided by Refinitiv (formerly Thomson Reuters).

For more information, please visit www.HL.com.

Appendix

Condensed Consolidated Balance Sheet (Unaudited)
Condensed Consolidated Statement of Income (Unaudited)
Reconciliation of GAAP to Adjusted Financial Information (Unaudited)

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

 

As of March 31,

(In thousands, except share data and par value)

2020

 

2019

Assets

 

 

 

Cash and cash equivalents

$

380,373

 

 

$

285,746

 

Restricted cash

373

 

 

369

 

Investment securities

135,389

 

 

125,258

 

Accounts receivable, net of allowance for doubtful accounts

80,912

 

 

70,830

 

Unbilled work in process, net of allowance for doubtful accounts

39,821

 

 

71,891

 

Receivable from affiliates

 

 

8,631

 

Income taxes receivable

4,282

 

 

 

Deferred income taxes

6,507

 

 

2,854

 

Property and equipment, net

42,372

 

 

31,034

 

Operating lease right-of-use asset

135,240

 

 

 

Goodwill and other intangibles, net

812,844

 

 

794,604

 

Other assets

38,890

 

 

34,695

 

Total assets

$

1,677,003

 

 

$

1,425,912

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

Liabilities:

 

 

 

Accrued salaries and bonuses

$

420,376

 

 

$

404,717

 

Accounts payable and accrued expenses

53,883

 

 

55,048

 

Deferred income

26,780

 

 

27,812

 

Income taxes payable

 

 

7,759

 

Deferred income taxes

664

 

 

8,058

 

Loans payable to former shareholders

1,393

 

 

2,047

 

Loan payable to non-affiliate

3,283

 

 

6,610

 

Operating lease liabilities

154,218

 

 

 

Other liabilities

32,024

 

 

22,532

 

Total liabilities

692,621

 

 

534,583

 

 

 

 

 

Stockholders' equity:

 

 

 

Class A common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 46,178,633 and 38,200,802 shares, respectively

46

 

 

38

 

Class B common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 19,345,277 and 27,197,734 shares, respectively

19

 

 

27

 

Additional paid-in capital

649,954

 

 

645,090

 

Retained earnings

377,471

 

 

276,468

 

Accumulated other comprehensive (loss)

(43,108

)

 

(30,294

)

Total stockholders' equity

984,382

 

 

891,329

 

Total liabilities and stockholders' equity

$

1,677,003

$

1,425,912

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

 

 

Three Months Ended March 31,

 

Year Ended March 31,

(In thousands, except share and per share data)

2020

 

2019

 

2020

 

2019

Revenues

$

302,694

 

 

$

291,378

 

 

$

1,159,368

 

 

$

1,084,385

 

Operating expenses:

 

 

 

 

 

 

 

Employee compensation and benefits

186,706

 

 

190,391

 

 

737,762

 

 

692,073

 

Travel, meals, and entertainment

9,185

 

 

10,173

 

 

41,945

 

 

42,862

 

Rent

10,239

 

 

10,060

 

 

44,693

 

 

38,672

 

Depreciation and amortization

5,011

 

 

3,666

 

 

17,291

 

 

14,475

 

Information technology and communications

7,427

 

 

5,439

 

 

26,904

 

 

21,512

 

Professional fees

5,210

 

 

4,887

 

 

21,704

 

 

23,035

 

Other operating expenses

10,261

 

 

6,211

 

 

39,468

 

 

32,659

 

Total operating expenses

234,039

 

 

230,827

 

 

929,767

 

 

865,288

 

Operating income

68,655

 

 

60,551

 

 

229,601

 

 

219,097

 

Other (income)/expense, net

(2,259

)

 

(1,922

)

 

(6,046

)

 

(5,223

)

Income before provision for income taxes

70,914

 

 

62,473

 

 

235,647

 

 

224,320

 

Provision for income taxes

11,900

 

 

17,125

 

 

51,854

 

 

65,214

 

Net income attributable to Houlihan Lokey, Inc.

$

59,014

 

 

$

45,348

 

 

$

183,793

 

 

$

159,106

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock outstanding:

 

 

 

 

 

 

 

Basic

62,011,301

 

 

61,645,670

 

 

62,152,870

 

 

62,213,414

 

Fully diluted

65,590,918

 

 

65,419,798

 

 

65,725,516

 

 

65,846,132

 

Earnings per share

 

 

 

 

 

 

 

Basic

$

0.95

 

 

$

0.74

 

 

$

2.96

 

 

$

2.56

 

Fully diluted

$

0.90

 

 

$

0.69

 

 

$

2.80

 

 

$

2.42

 

HOULIHAN LOKEY, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO ADJUSTED FINANCIAL INFORMATION

(UNAUDITED)

 

 

Three Months Ended March 31,

 

Year Ended March 31,

(In thousands, except per share data)

2020

 

2019

 

2020

 

2019

Revenues

$

302,694

 

 

$

291,378

 

 

$

1,159,368

 

 

$

1,084,385

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

 

 

 

 

 

 

Employee compensation and benefits (GAAP)

$

186,706

 

 

$

190,391

 

 

$

737,762

 

 

$

692,073

 

(Less)/plus: Pre-IPO grant vesting

(6,055

)

 

(5,902

)

 

(24,324

)

 

(24,319

)

(Less)/plus: Acquisition related retention payments

3,764

 

 

(7,366

)

 

(7,419

)

 

(7,366

)

Employee compensation and benefits (adjusted)

184,415

 

 

177,123

 

 

706,019

 

 

660,388

 

 

 

 

 

 

 

 

 

Non-compensation expenses

 

 

 

 

 

 

 

Non-compensation expenses (GAAP)

$

47,333

 

 

$

40,436

 

 

$

192,005

 

 

$

173,215

 

(Less)/plus: Secondary offering related costs

 

 

 

 

(665

)

 

(498

)

(Less)/plus: Acquisition related costs

 

 

 

 

(579

)

 

(1,929

)

(Less)/plus: Acquisition amortization

(2,270

)

 

(1,572

)

 

(7,454

)

 

(6,034

)

(Less)/plus: HL Finance setup costs

 

 

 

 

 

 

(619

)

(Less)/plus: London office buildout

 

 

 

 

(6,831

)

 

 

Non-compensation expenses (adjusted)

45,063

 

 

38,864

 

 

176,476

 

 

164,136

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

 

 

 

 

Operating income (GAAP)

$

68,655

 

 

$

60,551

 

 

$

229,601

 

 

$

219,097

 

(Less)/plus: Adjustments (1)

4,561

 

 

14,841

 

 

47,272

 

 

40,764

 

Operating income (adjusted)

73,216

 

 

75,392

 

 

276,873

 

 

259,861

 

 

 

 

 

 

 

 

 

Other (income)/expense, net

 

 

 

 

 

 

 

Other (income)/expense, net (GAAP)

$

(2,259

)

 

$

(1,922

)

 

$

(6,046

)

 

$

(5,223

)

Less/(plus): Reduction of acquisition earnout liabilities

1,220

 

 

 

 

1,220

 

 

719

 

Other (income)/expense, net (adjusted)

(1,039

)

 

(1,922

)

 

(4,826

)

 

(4,504

)

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

 

 

 

 

 

Provision for income taxes (GAAP)

$

11,900

 

 

$

17,125

 

 

$

51,854

 

 

$

65,214

 

(Less)/plus: Impact of the Tax Cuts and Jobs Act

 

 

(1

)

 

 

 

(1,313

)

(Less)/plus: Impact of the excess tax benefit for stock vesting

 

 

 

 

7,605

 

 

 

Normalized provision for income taxes

11,900

 

 

17,124

 

 

59,459

 

 

63,901

 

(Less)/plus: Resulting tax impact (2)

(670

)

 

4,112

 

 

11,619

 

 

11,409

 

Provision for income taxes (adjusted)

11,230

 

 

21,236

 

 

71,078

 

 

75,310

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

Net income (GAAP)

$

59,014

 

 

$

45,348

 

 

$

183,793

 

 

$

159,106

 

(Less)/plus: adjustments (3)

4,011

 

 

10,731

 

 

26,828

 

 

29,950

 

Net income (adjusted)

63,025

 

 

56,078

 

 

210,621

 

 

189,055

 

 

 

 

 

 

 

 

 

Diluted EPS (GAAP)

$

0.90

 

 

$

0.69

 

 

$

2.80

 

 

$

2.42

 

Diluted EPS (adjusted)

$

0.96

 

 

$

0.86

 

 

$

3.20

 

 

$

2.87

 

Note: Figures may not sum due to rounding.

(1)

 

The aggregate of adjustments from employee compensation and benefits and non-compensation expenses.

(2)

 

Reflects the tax impact of utilizing the normalized effective tax rate on the non-tax adjustments identified above.

(3)

 

Consists of all adjustments identified above net of the associated tax impact.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20200512005823/en/

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