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Jun 30, 2022
Moelis Q2 2022 Earnings Report
Moelis & Company's financial performance decreased in the second quarter of 2022.
Key Takeaways
Moelis & Company reported a decrease in financial results for the second quarter of 2022, with GAAP revenues of $242.5 million and adjusted revenues of $237.4 million, a 34% decrease from the prior year period. GAAP net income was $0.56 per share (diluted) and adjusted net income was $0.57 per share (diluted). The decrease was primarily driven by fewer transaction completions compared to the second quarter of 2021.
Second quarter GAAP revenues were $242.5 million, while adjusted revenues were $237.4 million, a 34% decrease year-over-year.
GAAP net income was $0.56 per share (diluted) for the second quarter of 2022; Adjusted net income was $0.57 per share (diluted).
Adjusted pre-tax margin for the second quarter of 2022 was 24.9%.
The company repurchased 0.8 million shares of common stock for a total cost of $34.9 million during the second quarter.
Moelis
Moelis
Forward Guidance
Moelis & Company remains focused on delivering exceptional results for clients and shareholders, with continued execution on their organic growth strategy.
Positive Outlook
- Continued to execute on organic growth strategy.
- Added 19 Managing Directors year-to-date through internal development and key external hires.
- Includes two Managing Directors hired in the United States since our last earnings release; one with a focus on the Food & Beverage sector and the other to expand our M&A capabilities
- Fortress balance sheet with cash and short term investments of $276.6 million and no debt or goodwill
- Declared quarterly dividend of $0.60 per share
Challenges Ahead
- Revenues decreased by 34% compared to the prior year period.
- Net income attributable to Moelis & Company decreased by 51% compared to the prior year period.
- Income before income taxes decreased by 51% compared to the prior year period.
- Non-compensation expenses increased by 40% compared to the prior year period.
- Other income (expenses) decreased by $5.808 million compared to the prior year period.