Houlihan Lokey Q4 2020 Earnings Report
Key Takeaways
Houlihan Lokey reported a 4% increase in revenues for the fourth quarter of fiscal year 2020, reaching $303 million compared to $291 million in the same period of the previous year. Diluted EPS stood at $0.90, while adjusted diluted EPS reached $0.96. The company's performance was impacted by the onset of the COVID-19 crisis towards the end of the quarter.
Revenues for Q4 2020 increased by 4% to $303 million compared to $291 million in Q4 2019.
Diluted EPS for Q4 2020 was $0.90, compared to $0.69 for Q4 2019.
Adjusted diluted EPS for Q4 2020 was $0.96, compared to $0.86 for Q4 2019.
The company announced a dividend of $0.31 per share for the first quarter of fiscal year 2021.
Houlihan Lokey
Houlihan Lokey
Houlihan Lokey Revenue by Segment
Forward Guidance
The COVID-19 pandemic is expected to have an adverse effect on the business, revenues, and operating results in the short term, while CF revenues will be adversely impacted for an indeterminable period. However, there has been an increase in demand for services in the FR business.
Positive Outlook
- Increase in demand for services in Financial Restructuring (FR) business due to the COVID-19 pandemic.
- Company built to perform during all cycles.
- Company confident that business will emerge from this crisis stronger than ever.
- 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.
- As of March 31, 2020, no principal was outstanding under the 2019 Line of Credit.
Challenges Ahead
- The COVID-19 pandemic has had a substantial negative effect on the global markets.
- 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.
- 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.
- CF revenues will be adversely impacted for an indeterminable period of time by the economic effects of COVID-19.
- The COVID-19 pandemic has created uncertainty, volatility and dislocation among a wide variety of sectors.
Revenue & Expenses
Visualization of income flow from segment revenue to net income