NEW YORK - Moelis & Company (NYSE:MC), a global independent investment bank, disclosed its first quarter financial results for 2024, with both GAAP and Adjusted revenues reaching $217.5 million, marking a 17% increase from the same period last year. The firm also announced a GAAP and Adjusted net income of $0.22 per share, inclusive of a $0.14 per share tax benefit related to share-based award settlements.
The firm's growth strategy included the promotion of seven advisory professionals to Managing Director and the hiring of four Managing Directors, three of whom specialize in the Energy sector and one in credit funds. Moelis & Company emphasized the strengthening of its pipeline following these strategic investments.
On the balance sheet, the company continues to demonstrate financial robustness with $124.9 million in cash and short-term investments and no debt or goodwill. In line with this strong position, a quarterly dividend of $0.60 per share has been declared, payable on June 20, 2024, to stockholders of record as of May 6, 2024.
The reported increase in revenues was primarily driven by heightened activity in the firm's non-M&A businesses compared to the previous year. Operating expenses for the first quarter on a GAAP basis were $211.7 million, with Adjusted operating expenses at $210.5 million.
The reported increase in expenses is attributed to expanded headcount and related compensation and benefits, which on an Adjusted basis amounted to $163.3 million. Non-compensation expenses also rose to $47.2 million.
Other income on a GAAP basis for the first quarter was reported as $4.2 million, a significant increase from the previous year's $1.7 million. The Adjusted other income was $3.3 million, compared to $4.3 million in the prior year period.
Regarding tax provisions, the corporate partner owns 92% of the operating partnership, with the remaining 8% owned by other partners, primarily subject to U.S. federal tax at the partner level. The Adjusted results assume that 100% of the firm's first quarter 2024 operating results were taxed at the corporate effective tax rate, resulting in a net tax benefit of approximately $8.0 million.
The company will host a conference call to discuss the first quarter 2024 financial results, led by Ken Moelis, Chairman and CEO, and Joe Simon, CFO. The information contained in this article is based on a press release statement from Moelis & Company.
InvestingPro Insights
Moelis & Company (NYSE:MC) has recently presented its first quarter financial results for 2024, with significant revenue growth and strategic hires aimed at bolstering its advisory services. As investors consider the firm's performance and future prospects, certain metrics and analyst insights from InvestingPro may offer a deeper understanding of its financial health and market position.
The company's market capitalization stands at a robust $3.94 billion, reflecting investor confidence in its business model and growth trajectory. Despite facing challenges in profitability over the last twelve months, with a reported P/E ratio of -145.54 and an adjusted P/E ratio for the same period of -159.41, analysts have revised their earnings upwards for the upcoming period.
This suggests an optimistic outlook for the company's ability to return to profitability, aligning with an InvestingPro Tip that predicts Moelis & Company will be profitable this year.
From a valuation standpoint, the firm is trading at a high Price / Book multiple of 11.19. While this may raise concerns about overvaluation, it is essential to consider the company's impressive gross profit margin of 90.29% in the last twelve months as of Q1 2023. This indicates that Moelis & Company has been highly effective at retaining a significant portion of its revenue as gross profit, which could justify a premium valuation to some extent.
Investors who value consistency in income streams may take note of the company's commitment to dividend payments, having maintained them for 11 consecutive years. The current dividend yield stands at 4.4%, a compelling figure for income-focused portfolios.
For those interested in exploring more about Moelis & Company's financial outlook, additional InvestingPro Tips are available, offering a comprehensive analysis and actionable insights. There are currently 6 more tips listed on InvestingPro for Moelis & Company, accessible at https://www.investing.com/pro/MC. For readers looking to gain full access to these exclusive tips, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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