Global Mid-Cap M&A Market Share Insights
(In thousands, except per share data)
Revenues
Three Months Ended December 31,
Nine Months Ended December 31,
2023
2022
2023
2022
$
511,130 $
456,499
$
1,393,948 $
1,364,680
Reconciliation
of GAAP to
Adjusted Financials
Employee compensation and benefits expenses
Employee compensation and benefits expenses (GAAP)
Less: Acquisition related retention payments
$
324,039 $
289,348
$
884,064 $
(9,694)
Employee compensation and benefits expenses (adjusted)
314,345
(8,599)
280,749
(26,786)
857,278
864,942
(25,663)
839,279
Non-compensation expenses
Non-compensation expenses (GAAP)
90,551 $
82,978
$
249,720
$
248,624
Less: Acquisition related legal structure reorganization
$
(2,603)
$
(2,603)
(4,259).
(5,724)
(1,560)
82,129
(10,367)
72,611
(8,275)
233,118
(2,325)
(41,756)
204,543
Less: Integration and acquisition related costs.
Less: Acquisition amortization
Non-compensation expenses (adjusted)
Operating income
Operating income (GAAP)
Plus: Adjustments (1)
Operating income (adjusted)
Other (income)/expense, net
Other (income)/expense, net (GAAP)
Less: Warrant revaluation
$
96,540
$
18,116
114,656
84,173
18,966
103,139
$
260,164
43,388
303,552
$
251,114
69,744
320,858
Less: SPAC wind-down write-off
Plus/(less): Change in acquisition earnout liability fair value
Other (income), net (adjusted)
$
(6,035)
$
563 $
(12,336)
$
7,416
(2,264)
(2,742)
(2,742)
816
(2,841)
(6,035)
(2,179)
(11,520)
(431)
Provision for income taxes
Provision for income taxes (GAAP)
31,772
20,559
Plus: Impact of the excess tax benefit for stock vesting
73,276
7,299
$
49,135
8,102
Plus: Release of the provision for an uncertain tax position as a result
5,762
of the successful closure of a state audit
Less: Non-deductible acquisition related costs
(679)
(679)
Adjusted provision for income taxes
31,093
20,559
79,896
62,999
5,491
5,338
12,516
20,187
36,584
25,897
92,412
83,186
Plus: Resulting tax impact (2)
Provision for income taxes (adjusted)
Net income
Net income (GAAP)
Plus: Adjustments (3)
Net income (adjusted)
$
70,803
$
13,304
63,051
16,370
$
199,224 $
194,563
23,436
43,540
84,107
79,421
222,660
238,103
Fully diluted shares outstanding
Fully diluted shares outstanding (GAAP)
Plus: Impact of unvested GCA retention and deferred share awards
Fully diluted shares outstanding (adjusted)
67,886,301
968,515
68,854,816
69,725,692
69,725,692
67,896,302
1,148,657
69,044,959
69,453,588
69,453,588
Diluted EPS attributable to Houlihan Lokey, Inc, (GAAP)
$
1.04
$
0.90
$
2.93
$
2.80
Diluted EPS attributable to Houlihan Lokey, Inc, (adjusted)
$
1.22
$
1.14
$
3.22
$
3.43
1. The aggregate of adjustments from employee compensation and benefits and non-compensation expenses.
2. Reflects the tax impact of utilizing the adjusted effective tax rate on the non-tax adjustments identified above.
3. Consists of all adjustments identified above net of the associated tax impact.
Houlihan Lokey | 30View entire presentation