Third Quarter Overview
- Total Revenues of $266 million, up 15% from a year ago
- GAAP Pretax Income of $48 million and Adjusted Pretax Income of
$54 million
- GAAP Diluted EPS of $0.82 and Adjusted EPS of $0.96
Nine Months Overview
- Total Revenues of $746 million, up 10% from a year ago
- GAAP Pretax Income of $141 million and Adjusted Pretax Income
of $159 million
- GAAP Diluted EPS of $2.56 and Adjusted EPS of $2.84
Capital Management and Balance Sheet
- Repurchased 2 million share equivalents in the first nine
months with record open market repurchases of 1.5 million
shares
- Strong balance sheet with $290 million in cash, cash
equivalents and short-term investments
Paul J. Taubman, Chairman and Chief Executive Officer, said,
“Our record nine-month revenue performance was achieved against a
backdrop of significant market dislocation as our clients continue
to recognize the benefits of our integrated, holistic approach to
advice. We view this environment as an opportune time to increase
the investment in our business and we remain optimistic about our
future prospects.”
PJT Partners Inc. (the “Company” or “PJT Partners”) (NYSE: PJT)
today announced its financial results for the third quarter and
nine months ended September 30, 2022.
Revenues
The following table sets forth revenues for the three and nine
months ended September 30, 2022 and 2021:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
% Change
2022
2021
% Change
(Dollars in Millions)
Revenues
Advisory
$
224.4
$
179.9
25
%
$
592.7
$
530.1
12
%
Placement
39.7
46.9
(15
%)
149.5
137.6
9
%
Interest Income & Other
2.0
4.5
(55
%)
3.4
10.9
(69
%)
Total Revenues
$
266.1
$
231.3
15
%
$
745.6
$
678.7
10
%
Three Months Ended
Total Revenues increased 15% to $266 million for third quarter
2022 from $231 million for the prior year quarter.
Advisory Revenues increased 25% to $224 million for the current
quarter from $180 million for the prior year quarter. The increase
was driven by increases in strategic advisory, restructuring and
secondary advisory revenues.
Placement Revenues decreased 15% to $40 million for the current
quarter from $47 million for the prior year quarter. The decrease
in Placement Revenues was driven by a decrease in fund placement
revenues, which was partially offset by an increase in corporate
placement revenues.
Interest Income & Other decreased $2.5 million for the
current quarter compared with the prior year quarter.
Nine Months Ended
Total Revenues increased 10% to $746 million for the nine months
ended September 30, 2022 from $679 million for the same period a
year ago.
Advisory Revenues increased 12% to $593 million for the nine
months from $530 million for the same period a year ago. The
increase was driven by increases in strategic advisory,
restructuring and secondary advisory revenues.
Placement Revenues increased 9% to $149 million for the nine
months from $138 million for the same period a year ago. The
increase in Placement Revenues was driven by an increase in fund
placement revenues, which was partially offset by a decline in
corporate placement revenues.
Interest Income & Other decreased $7.6 million for the nine
months compared with the same period a year ago. The decrease in
Interest Income & Other was primarily driven by a reduction in
fair market value on certain equity securities received as part of
transaction compensation.
Expenses
The following tables set forth information relating to the
Company’s expenses for the three and nine months ended September
30, 2022 and 2021:
Three Months Ended September
30,
2022
2021
GAAP
As Adjusted
GAAP
As Adjusted
(Dollars in Millions)
Expenses
Compensation and Benefits
$
179.1
$
175.1
$
148.1
$
144.5
% of Revenues
67.3
%
65.8
%
64.1
%
62.5
%
Non-Compensation
$
39.4
$
37.0
$
34.9
$
32.9
% of Revenues
14.8
%
13.9
%
15.1
%
14.2
%
Total Expenses
$
218.5
$
212.1
$
183.0
$
177.4
% of Revenues
82.1
%
79.7
%
79.1
%
76.7
%
Pretax Income
$
47.6
$
54.0
$
48.3
$
53.9
% of Revenues
17.9
%
20.3
%
20.9
%
23.3
%
Nine Months Ended September
30,
2022
2021
GAAP
As Adjusted
GAAP
As Adjusted
(Dollars in Millions)
Expenses
Compensation and Benefits
$
488.9
$
477.2
$
434.9
$
424.1
% of Revenues
65.6
%
64.0
%
64.1
%
62.5
%
Non-Compensation
$
115.2
$
109.1
$
99.2
$
93.2
% of Revenues
15.4
%
14.6
%
14.6
%
13.7
%
Total Expenses
$
604.1
$
586.3
$
534.1
$
517.4
% of Revenues
81.0
%
78.6
%
78.7
%
76.2
%
Pretax Income
$
141.5
$
159.3
$
144.6
$
161.3
% of Revenues
19.0
%
21.4
%
21.3
%
23.8
%
Compensation and Benefits
Expense
Three Months Ended
GAAP Compensation and Benefits Expense was $179 million for
third quarter 2022 compared with $148 million for the prior year
quarter. Adjusted Compensation and Benefits Expense was $175
million for the current quarter compared with $145 million for the
prior year quarter. The Company accrued at a higher rate during the
current quarter compared with the prior year quarter driven by a
higher nine month accrual rate.
Nine Months Ended
GAAP Compensation and Benefits Expense was $489 million for the
nine months ended September 30, 2022 compared with $435 million for
the same period a year ago. Adjusted Compensation and Benefits
Expense was $477 million for the nine months compared with $424
million for the same period a year ago. The nine month adjusted
compensation accrual rate increased to 64.0% compared with 63.0%
for the full year 2021.
Non-Compensation Expense
Three Months Ended
GAAP Non-Compensation Expense was $39 million for third quarter
2022 compared with $35 million for the prior year quarter. Adjusted
Non-Compensation Expense was $37 million for the current quarter
compared with $33 million for the prior year quarter.
GAAP and Adjusted Non-Compensation Expense increased during the
current quarter compared with the prior year quarter, primarily
driven by Travel and Related, which increased $4 million due to
increased levels of business travel. Excluding Travel and Related,
GAAP and Adjusted Non-Compensation Expense increased 3% and 2%,
respectively, during the current quarter compared with the prior
year quarter.
Nine Months Ended
GAAP Non-Compensation Expense was $115 million for the nine
months ended September 30, 2022 compared with $99 million for the
same period a year ago. Adjusted Non-Compensation Expense was $109
million for the nine months compared with $93 million for the same
period a year ago.
GAAP and Adjusted Non-Compensation Expense increased during the
nine months compared with the same period a year ago, primarily
driven by Travel and Related, which increased $12 million due to
increased levels of business travel. Excluding Travel and Related,
GAAP and Adjusted Non-Compensation Expense increased 4% during the
nine months compared with the same period a year ago.
Provision for Taxes
As of September 30, 2022, PJT Partners Inc. owned 62.3% of PJT
Partners Holdings LP. PJT Partners Inc. is subject to corporate
U.S. federal and state income tax while PJT Partners Holdings LP is
subject to New York City unincorporated business tax and other
entity-level taxes imposed by certain state and foreign
jurisdictions. Please refer to Note 11. “Stockholders’ Equity” in
the “Notes to Consolidated Financial Statements” in “Part II. Item
8. Financial Statements and Supplementary Data” of the Company’s
Annual Report on Form 10-K for the year ended December 31, 2021 for
further information about the corporate ownership structure. The
effective tax rate for GAAP Net Income for the three months ended
September 30, 2022 and 2021 was 18.1% and 18.8%, respectively. The
effective tax rate for GAAP Net Income for the nine months ended
September 30, 2022 and 2021 was 16.1% and 13.0%, respectively.
In calculating Adjusted Net Income, If-Converted, the Company
has assumed that all outstanding Class A partnership units in PJT
Partners Holdings LP (“Partnership Units”) (excluding the unvested
partnership units that have yet to satisfy certain market
conditions) have been exchanged into shares of the Company’s Class
A common stock, subjecting all of the Company’s income to
corporate-level tax.
The effective tax rate for Adjusted Net Income, If-Converted for
the nine months ended September 30, 2022 was 25.8% compared with
22.3% for full year 2021. The tax rate increase was primarily due
to a lesser tax benefit received from the delivery of vested shares
at values in excess of the original grant prices.
Capital Management and Balance Sheet
As of September 30, 2022, the Company held cash, cash
equivalents and short-term investments of $290 million and had no
funded debt.
During the third quarter 2022, the Company repurchased 240
thousand shares of Class A common stock in the open market,
repurchased 20 thousand Partnership Units for cash and exchanged
250 thousand Partnership Units for shares of Class A common stock
as a result of Partnership Unit exchanges and net share settled 19
thousand shares to satisfy employee tax obligations.
In total during the third quarter 2022, the Company repurchased
279 thousand share equivalents at an average price of $68.26 per
share. During the nine months ended September 30, 2022, the Company
repurchased 2 million share equivalents at an average price of
$65.33 per share.
As of September 30, 2022, the Company’s remaining repurchase
authorization was $183 million.
The Company intends to repurchase 38 thousand Partnership Units
for cash on November 1, 2022 at a price to be determined by the
volume-weighted average price per share of the Company’s Class A
common stock on October 27, 2022.
Dividend
The Board of Directors of PJT Partners Inc. has declared a
quarterly dividend of $0.25 per share of Class A common stock. The
dividend will be paid on December 21, 2022 to Class A common
stockholders of record as of December 7, 2022.
Quarterly Investor Call Details
PJT Partners will host a conference call on October 25, 2022 at
8:30 a.m. ET to discuss its third quarter 2022 results. The
conference call can be accessed via the internet at
www.pjtpartners.com or by dialing +1 (888) 204-4368 (U.S. domestic)
or +1 (720) 543-0214 (international), passcode 9880072. For those
unable to listen to the live broadcast, a replay will be available
following the call at www.pjtpartners.com.
About PJT Partners
PJT Partners is a premier global advisory-focused investment
bank. We offer a unique portfolio of advisory services designed to
help our clients achieve their strategic objectives. Our team of
senior professionals delivers a range of strategic advisory,
capital markets advisory, restructuring and special situations and
shareholder advisory services to corporations, financial sponsors,
institutional investors and governments around the world. We also
provide private fund advisory and fundraising services for
alternative investment strategies, including private equity, real
estate, hedge funds and private credit. To learn more about PJT
Partners, please visit our website at www.pjtpartners.com.
Forward-Looking Statements
Certain material presented herein contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”). Forward-looking
statements include certain information concerning future results of
operations, business strategies, acquisitions, financing plans,
competitive position, potential growth opportunities, potential
operating performance improvements, the effects of competition and
the effects of future legislation or regulations. Forward-looking
statements include all statements that are not historical facts and
can be identified by the use of forward-looking terminology such as
the words “believe,” “expect,” “opportunity,” “plan,” “intend,”
“anticipate,” “estimate,” “predict,” “potential,” “continue,”
“may,” “might,” “should,” “could” or the negative of these terms or
similar expressions.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
our current beliefs, expectations, and assumptions regarding the
future of our business, future plans and strategies, projections,
anticipated events and trends, the economy, and other future
conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks, and
changes in circumstances that are difficult to predict, many of
which are outside our control. Our actual results and financial
condition may differ materially from those indicated in the
forward-looking statements. Therefore, you should not place undue
reliance upon any of these forward-looking statements. Important
factors that could cause our actual results and financial condition
to differ materially from those indicated in the forward-looking
statements include, among others, the following: (a) changes in
governmental regulations and policies; (b) cyberattacks, security
vulnerabilities, and internet disruptions, including breaches of
data security and privacy leaks, data loss, and business
interruptions; (c) failure of our computer systems or communication
systems during a catastrophic event, including as a result of the
increased use of remote work environments and virtual platforms;
(d) the impact of catastrophic events, such as COVID-19 or other
pandemics, on the U.S. and the global economy, including business
disruptions, reductions in employment and an increase in business
failures; (e) the impact of catastrophic events, such as COVID-19
or other pandemics, on our employees and our ability to provide
services to our clients and respond to their needs; (f) the failure
of third-party service providers to perform their functions; and
(g) volatility in the political and economic environment, including
as a result of inflation and rising interest rates.
Any of these factors, as well as such other factors discussed in
the “Risk Factors” section of the Company’s Annual Report on Form
10-K for the year ended December 31, 2021, filed with the United
States Securities and Exchange Commission (“SEC”), as such factors
may be updated from time to time in the Company’s periodic filings
with the SEC, accessible on the SEC’s website at www.sec.gov, could
cause the Company’s results to differ materially from those
expressed in forward-looking statements. There may be other risks
and uncertainties that the Company is unable to predict at this
time or that are not currently expected to have a material adverse
effect on its business. Any such risks could cause the Company’s
results to differ materially from those expressed in
forward-looking statements.
Non-GAAP Financial Measures
The following represent key performance measures that management
uses in making resource allocation and/or compensation decisions.
These measures should not be considered substitutes for, or
superior to, financial measures prepared in accordance with
GAAP.
Management believes the following non-GAAP measures, when
presented together with comparable GAAP measures, are useful to
investors in understanding the Company’s operating results:
Adjusted Pretax Income; Adjusted Net Income; Adjusted Net Income,
If-Converted, in total and on a per-share basis (referred to as
“Adjusted EPS”); Adjusted Compensation and Benefits Expense and
Adjusted Non-Compensation Expense. These non-GAAP measures,
presented and discussed in this earnings release, remove the
significant accounting impact of: (a) transaction-related
compensation expense, including expense related to Partnership
Units with both time-based vesting and market conditions as well as
equity-based and cash awards granted in connection with the
acquisition of CamberView Partners Holdings, LLC (“CamberView”);
(b) intangible asset amortization associated with Blackstone Inc.’s
(“Blackstone”) initial public offering (“IPO”), the acquisition of
PJT Capital LP, and the acquisition of CamberView; and (c) the net
change to the amount the Company has agreed to pay Blackstone
related to the net realized cash benefit from certain
compensation-related tax deductions. Reconciliations of the
non-GAAP measures to their most directly comparable GAAP measures
and further detail regarding the adjustments are provided in the
Appendix.
To help investors understand the effect of the Company’s
ownership structure on its Adjusted Net Income, the Company has
presented Adjusted Net Income, If-Converted. This measure
illustrates the impact of taxes on Adjusted Pretax Income, assuming
all Partnership Units (excluding the unvested Partnership Units
that have yet to satisfy certain market conditions) were exchanged
for shares of the Company’s Class A common stock, resulting in all
of the Company’s income becoming subject to corporate-level tax,
considering both current and deferred income tax effects. This tax
rate excludes a number of adjustments, including the tax benefits
of the adjustments for transaction-related compensation expense and
amortization expense.
Appendix
GAAP Condensed Consolidated Statements of Operations
(unaudited)
Reconciliations of GAAP to Non-GAAP Financial Data
(unaudited)
Summary of Shares Outstanding (unaudited)
Footnotes
PJT Partners Inc.
GAAP Condensed Consolidated Statements
of Operations (unaudited)
(Dollars in Thousands, Except Share and
Per Share Data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
Revenues
Advisory
$
224,405
$
179,900
$
592,712
$
530,124
Placement
39,652
46,891
149,485
137,611
Interest Income and Other
2,035
4,507
3,355
10,944
Total Revenues
266,092
231,298
745,552
678,679
Expenses
Compensation and Benefits
179,080
148,149
488,899
434,866
Occupancy and Related
8,231
8,569
25,831
25,788
Travel and Related
6,336
2,765
17,471
4,979
Professional Fees
7,375
8,066
21,652
24,016
Communications and Information
Services
4,155
4,341
12,819
13,548
Depreciation and Amortization
3,755
3,892
12,156
11,535
Other Expenses
9,518
7,241
25,246
19,337
Total Expenses
218,450
183,023
604,074
534,069
Income Before Provision for Taxes
47,642
48,275
141,478
144,610
Provision for Taxes
8,601
9,090
22,776
18,773
Net Income
39,041
39,185
118,702
125,837
Net Income Attributable to Non-Controlling
Interests
17,953
17,740
52,742
54,565
Net Income Attributable to PJT Partners
Inc.
$
21,088
$
21,445
$
65,960
$
71,272
Net Income Per Share of Class A Common
Stock
Basic
$
0.84
$
0.86
$
2.63
$
2.85
Diluted
$
0.82
$
0.82
$
2.56
$
2.72
Weighted-Average Shares of Class A Common
Stock Outstanding
Basic
24,966,527
24,908,606
25,032,151
24,979,925
Diluted
26,519,173
42,010,543
26,497,177
42,414,461
PJT Partners Inc.
Reconciliations of GAAP to Non-GAAP
Financial Data (unaudited)
(Dollars in Thousands, Except Share and
Per Share Data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
GAAP Net Income
$
39,041
$
39,185
$
118,702
$
125,837
Less: GAAP Provision for Taxes
8,601
9,090
22,776
18,773
GAAP Pretax Income
47,642
48,275
141,478
144,610
Adjustments to GAAP Pretax
Income
Transaction-Related Compensation
Expense(1)
3,987
3,622
11,746
10,726
Amortization of Intangible Assets(2)
1,486
1,928
5,276
5,850
Spin-Off-Related Payable Due to
Blackstone(3)
836
79
771
135
Adjusted Pretax Income
53,951
53,904
159,271
161,321
Adjusted Taxes(4)
10,142
9,951
26,206
20,988
Adjusted Net Income
43,809
43,953
133,065
140,333
If-Converted Adjustments
Less: Adjusted Taxes(4)
(10,142
)
(9,951
)
(26,206
)
(20,988
)
Add: If-Converted Taxes(5)
13,970
12,627
41,143
37,066
Adjusted Net Income, If-Converted
$
39,981
$
41,277
$
118,128
$
124,255
GAAP Net Income Per Share of Class A
Common Stock
Basic
$
0.84
$
0.86
$
2.63
$
2.85
Diluted
$
0.82
$
0.82
$
2.56
$
2.72
GAAP Weighted-Average Shares of Class A
Common Stock Outstanding
Basic
24,966,527
24,908,606
25,032,151
24,979,925
Diluted
26,519,173
42,010,543
26,497,177
42,414,461
Adjusted Net Income, If-Converted Per
Share
$
0.96
$
0.98
$
2.84
$
2.93
Weighted-Average Shares Outstanding,
If-Converted
41,540,815
42,015,728
41,614,791
42,419,646
PJT Partners Inc.
Reconciliations of GAAP to Non-GAAP
Financial Data – continued (unaudited)
(Dollars in Thousands)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
GAAP Compensation and Benefits Expense
$
179,080
$
148,149
$
488,899
$
434,866
Transaction-Related Compensation
Expense(1)
(3,987
)
(3,622
)
(11,746
)
(10,726
)
Adjusted Compensation and Benefits
Expense
$
175,093
$
144,527
$
477,153
$
424,140
Non-Compensation Expenses
Occupancy and Related
$
8,231
$
8,569
$
25,831
$
25,788
Travel and Related
6,336
2,765
17,471
4,979
Professional Fees
7,375
8,066
21,652
24,016
Communications and Information
Services
4,155
4,341
12,819
13,548
Depreciation and Amortization
3,755
3,892
12,156
11,535
Other Expenses
9,518
7,241
25,246
19,337
GAAP Non-Compensation Expense
39,370
34,874
115,175
99,203
Amortization of Intangible Assets(2)
(1,486
)
(1,928
)
(5,276
)
(5,850
)
Spin-Off-Related Payable Due to
Blackstone(3)
(836
)
(79
)
(771
)
(135
)
Adjusted Non-Compensation Expense
$
37,048
$
32,867
$
109,128
$
93,218
PJT Partners Inc.
Summary of Shares Outstanding (unaudited)
The following table provides a summary of weighted-average
shares outstanding for the three and nine months ended September
30, 2022 and 2021 for both basic and diluted shares. The table also
provides a reconciliation to If-Converted Shares Outstanding
assuming that all Partnership Units and unvested PJT Partners Inc.
restricted stock units (“RSUs”) were converted to shares of the
Company’s Class A common stock:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
Weighted-Average Shares Outstanding -
GAAP
Basic Shares Outstanding, GAAP
24,966,527
24,908,606
25,032,151
24,979,925
Dilutive Impact of Unvested RSUs(6)
1,552,646
1,575,341
1,465,026
1,567,341
Dilutive Impact of Partnership
Units(7)
—
15,526,596
—
15,867,195
Diluted Shares Outstanding, GAAP
26,519,173
42,010,543
26,497,177
42,414,461
Weighted-Average Shares Outstanding -
If-Converted
Basic Shares Outstanding, GAAP
24,966,527
24,908,606
25,032,151
24,979,925
Unvested RSUs(8)
1,555,239
1,580,526
1,467,619
1,572,526
Partnership Units(7)
15,019,049
15,526,596
15,115,021
15,867,195
If-Converted Shares Outstanding
41,540,815
42,015,728
41,614,791
42,419,646
As of September 30,
2022
2021
Fully-Diluted Shares Outstanding(9)
43,761,678
43,948,954
As of September 30, 2022, 1.1 million Partnership Units and 1.5
million RSUs that have yet to satisfy certain market conditions
were excluded from any share count calculations.
Of the total 2.6 million share equivalents subject to market
conditions, 1.3 million require the Company to achieve a
volume-weighted average share price over any consecutive 20-day
trading period (“20-day VWAP”) of $100 prior to February 26, 2027.
The remaining 1.3 million vest ratably upon the Company achieving a
20-day VWAP between $100 and $130 prior to February 26, 2027. The
awards are also subject to a five year service based vesting
requirement, with 20% vesting per annum.
Footnotes
(1)
This adjustment adds back to GAAP Pretax
Income transaction-related compensation expense for Partnership
Units with both time-based vesting and market conditions as well as
equity-based and cash awards granted in connection with the
acquisition of CamberView.
(2)
This adjustment adds back to GAAP Pretax
Income amounts for the amortization of intangible assets that are
associated with Blackstone’s IPO, the acquisition of PJT Capital LP
on October 1, 2015 and the acquisition of CamberView on October 1,
2018.
(3)
This adjustment adds back to GAAP Pretax
Income the net change to the amount the Company has agreed to pay
Blackstone related to the net realized cash benefit from certain
compensation-related tax deductions. Such amounts are reflected in
Other Expenses in the Condensed Consolidated Statements of
Operations.
(4)
Represents taxes on Adjusted Pretax
Income, considering both current and deferred income tax effects
for the current ownership structure.
(5)
Represents taxes on Adjusted Pretax
Income, assuming all Partnership Units (excluding the unvested
Partnership Units that have yet to satisfy market conditions) were
exchanged for shares of the Company’s Class A common stock,
resulting in all of the Company’s income becoming subject to
corporate-level tax, considering both current and deferred income
tax effects. This tax rate excludes a number of adjustments,
including the tax benefits of the adjustments for
transaction-related compensation expense and amortization
expense.
(6)
Represents the dilutive impact under the
treasury method of unvested, non-participating RSUs that have a
remaining service requirement.
(7)
Represents the number of shares assuming
the conversion of vested Partnership Units and Partnership Units
that achieved certain market conditions.
(8)
Represents the dilutive impact of unvested
RSUs that have a remaining service requirement.
(9)
Assumes all Partnership Units and unvested
participating RSUs have been converted to shares of the Company’s
Class A common stock. As of September 30, 2022, 1.1 million
Partnership Units and 1.5 million RSUs that have yet to satisfy
certain market conditions were excluded from any share count
calculations.
Note:
Amounts presented in tables above may not
add or recalculate due to rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221024005956/en/
Media Relations: Jon Keehner Joele Frank, Wilkinson
Brimmer Katcher Tel: +1 212.355.4449 PJT-JF@joelefrank.com
Investor Relations: Sharon Pearson PJT Partners Inc. Tel:
+1 212.364.7120 pearson@pjtpartners.com
PJT Partners (NYSE:PJT)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
PJT Partners (NYSE:PJT)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024