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Jun 30, 2020
Moelis Q2 2020 Earnings Report
Moelis & Company's financial performance in Q2 2020 reflected a 4% increase in revenues compared to the prior year period, driven by higher average fees per M&A transaction and increased Capital Markets activity.
Key Takeaways
Moelis & Company reported a 4% increase in revenues for the second quarter of 2020, reaching $159.9 million. However, the firm experienced a GAAP net loss of ($0.10) per share and an adjusted net loss of ($0.11) per share, compared to a net income of $0.54 and $0.56 respectively in the prior year period. The firm's strong balance sheet and strategic investments position it for future growth.
Second quarter revenues increased by 4% year-over-year to $159.9 million.
GAAP net loss was ($0.10) per share, while adjusted net loss was ($0.11) per share.
The revenue increase was driven by higher average fees per M&A transaction and increased Capital Markets activity.
The company maintained a strong balance sheet with $193.7 million in cash and short-term investments and no debt.
Moelis
Moelis
Forward Guidance
Moelis & Company is positioning itself for future growth by investing in the firm during a softer operating environment, aiming to capitalize when more normal deal activity resumes.
Positive Outlook
- Strong balance sheet with no debt.
- Liquid financial position.
- Collaborative culture allowing attraction and retention of exceptional talent.
- Focus on finding the right talent who will excel on our platform.
- Committed to returning all of our excess capital when normal business activity resumes.
Challenges Ahead
- Business, revenues, and operating results could continue to be adversely affected by COVID-19.
- Uncertain nature of the deal-making environment due to COVID-19.
- Revenues and net income can fluctuate materially depending on the number, size and timing of completed transactions.
- Financial results in any particular quarter may not be representative of future results over a longer period of time.
- 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.