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Sep 30, 2020

Moelis Q3 2020 Earnings Report

Moelis & Company's financial performance declined due to fewer M&A transaction completions and reported a decrease in revenues and net income compared to the prior year period.

Key Takeaways

Moelis & Company reported a 10% decrease in third quarter revenues to $207.6 million compared to a record third quarter in 2019. GAAP net income was $0.54 per share (diluted), compared to $0.73 per share (diluted) in the prior year period. The firm declared a quarterly dividend of $0.3825 per share, a 50% increase from the second quarter of 2020.

Third quarter revenues decreased by 10% to $207.6 million compared to the prior year period.

GAAP net income was $0.54 per share (diluted) for the third quarter.

The firm experienced the strongest quarter of Restructuring related activity in its history.

A quarterly dividend of $0.3825 per share was declared, representing a 50% increase from the second quarter of 2020.

Total Revenue
$208M
Previous year: $232M
-10.4%
EPS
$0.54
Previous year: $0.76
-28.9%
Cash and Equivalents
$266M

Moelis

Moelis

Forward Guidance

Moelis & Company's platform was built to be durable and flexible across differing economic landscapes.

Positive Outlook

  • The pace of transaction announcements and momentum in the business has only intensified since then.
  • Achieved the strongest quarter of Restructuring related activity in our Firm’s history during the third quarter.
  • Ongoing mandates continue to remain elevated.
  • Necessary ingredients for M&A, Restructuring and Capital Markets to all be active at the same time are present.
  • Tremendous confidence about the Firm’s growth prospects.

Challenges Ahead

  • 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.
  • Business, revenues, and operating results have been, and could continue to be adversely affected by COVID-19.
  • 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.
  • The actual impact of COVID-19 may differ, possibly materially, from what is currently estimated.