LAZ Lazard Inc

• Firm-wide adjusted net revenue increased 18% in 2024
• Financial Advisory adjusted net revenue increased 28% in 2024
• Asset Management adjusted net revenue increased 3% in 2024

Lazard, Inc. (NYSE: LAZ) today reported net revenue of $817 million and adjusted net revenue1 of $812 million for the quarter ended December 31, 2024. For the full year of 2024, Lazard reported net revenue of $3,052 million and adjusted net revenue1 of $2,890 million.

On a U.S. GAAP basis, Lazard reported fourth-quarter 2024 net income of $86 million or $0.80 per share, diluted. For the full year of 2024, net income was $280 million or $2.68 per share, diluted. For the fourth quarter of 2024, adjusted net income1 was $85 million or $0.78 per share, diluted. For the full year of 2024, adjusted net income1 was $244 million or $2.34 per share, diluted.

“2024 demonstrated Lazard’s inflection towards growth, as business conditions improve and the momentum of our long-term strategy delivers strong results,” said Peter R. Orszag, CEO and Chairman. “In Financial Advisory, we captured market share while increasing revenue by 28 percent during the year. Our Asset Management revenue remained resilient, up 3 percent from the prior year, and we continue to make enhancements in the business. We anticipate an even more constructive environment for both of our businesses in 2025, as we remain focused on helping our clients successfully navigate complex business and investment decisions.”

(Selected results, $ in millions,

Three Months Ended

 

Year Ended

except per share data and AUM)

December 31,

 

December 31,

U.S. GAAP Financial Measures

2024

 

2023

 

% ’24-’23

 

2024

 

2023

 

% ’24-’23

Net Revenue

$817

 

$806

 

1%

 

$3,052

 

$2,515

 

21%

Financial Advisory

$520

 

$489

 

6%

 

$1,756

 

$1,385

 

27%

Asset Management

$312

 

$294

 

6%

 

$1,187

 

$1,151

 

3%

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

$86

 

$64

 

36%

 

$280

 

($75)

 

NM

Per share, diluted

$0.80

 

$0.65

 

23%

 

$2.68

 

($0.90)

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Financial Measures1

 

 

 

 

 

 

 

 

 

 

 

Net Revenue

$812

 

$761

 

7%

 

$2,890

 

$2,440

 

18%

Financial Advisory

$508

 

$477

 

6%

 

$1,731

 

$1,357

 

28%

Asset Management

$287

 

$274

 

5%

 

$1,100

 

$1,068

 

3%

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$85

 

$65

 

31%

 

$244

 

$75

 

NM

Per share, diluted

$0.78

 

$0.66

 

18%

 

$2.34

 

$0.77

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

Assets Under Management (AUM)

($ in billions)

 

 

 

 

 

 

 

 

 

 

 

Ending AUM

$226

 

$247

 

(8%)

 

 

 

 

 

 

Average AUM

$234

 

$234

 

–%

 

$243

 

$233

 

4%

 

 

 

 

 

 

 

 

 

 

 

 

Note: Reconciliations of U.S. GAAP to Adjusted results are shown on pages 14-16. Endnotes are on page 5 of this release.

NET REVENUE

Financial Advisory

For the fourth quarter of 2024, Financial Advisory reported net revenue and adjusted net revenue1 of $520 million and $508 million, respectively, both 6% higher than the fourth quarter of 2023.

For the full year of 2024, Financial Advisory reported net revenue and adjusted net revenue1 of $1,756 million and $1,731 million, 27% and 28% higher than 2023, respectively.

Lazard is one of the world’s leading independent financial advisors, serving as a trusted partner to clients on significant and complex M&A transactions. During and since the fourth quarter of 2024, selected highlights include (clients are in italics): Constellation Energy’s $26.6 billion acquisition of Calpine; Berry Global’s $15.0 billion combination with Amcor; Vivendi’s €9.5 billion spin-off of Canal+, Havas and Louis Hachette Group; Renault’s creation of HORSE Powertrain Limited with Geely and the sale of a 10% equity interest to Saudi Aramco, valuing the new company at €7.4 billion; Pactiv Evergreen’s $6.7 billion acquisition by Novolex, a portfolio company of Apollo; Encavis’ €4.7 billion acquisition by KKR and the Viessmann Group; Cencora’s $4.6 billion acquisition of Retina Consultants of America; KPS Capital Partners’ €3.5 billion acquisition of Innomotics from Siemens; Auren Energia’s $3.2 billion combination with AES Brasil; Carlyle’s $3.0 billion sale of Cogentrix to Quantum Capital; Neiman Marcus Group’s $2.7 billion sale to HBC, parent of Saks Fifth Avenue; ABC Technologies’, majority owned by Apollo, £1.8 billion acquisition of TI Fluid Systems; Special Committee of the Board of Directors of Thoughtworks’ $1.8 billion acquisition by Apax Partners; TotalEnergies’ €1.6 billion acquisition of VSB; Tritax EuroBox’s acquisition by Brookfield for an enterprise value of £1.1 billion; Sofidel’s $1.1 billion acquisition of Clearwater Paper’s tissue business; Mallinckrodt’s $925 million sale of its Therakos business to CVC Capital Partners; Motivair Corporation’s $850 million sale of a controlling interest in the company to Schneider Electric; United Trust Bank on an investment from Warburg Pincus valuing the business at £520 million; Willis Towers Watson’s $632 million sale of its TRANZACT business to GTCR and Recognize; Orange on agreement between its Spanish unit, MASORANGE, and Vodafone Spain to create a national fiber network company and Parker Hannifin’s sale of its North America Composites and Fuel Containment Division to SK Capital Partners.

Lazard’s premier Restructuring and Liability Management practice, which provides broad coverage across debtor and creditor activities along with innovative solutions for clients, has been engaged in a number of complex assignments that include company roles involving Assured Guaranty, Consolis, Enviva, Grupo Casas Bahia, LivePerson, Petrofac and Zachry Group and creditor and/or related party roles involving Accuride, Franchise Group and SVB Financial Group.

Lazard provides tailored advice, expertise and access to a broad universe of capital providers through our Private Capital Advisory and Capital Solutions practices. Highlighted assignments include advising Ambienta’s €528 million continuation fund for Wateralia; Ardian’s single asset continuation fund for Syclef; Centana’s $600 million close of its Growth Partners III fund; Godspeed Capital Management’s $675 million close of Fund III; EQT on its fund-to-fund liquidity solution and capital raise for Nord Anglia Education; TowerBrook Capital Partners’ GP-led single asset continuation fund for R1 RCM and Dropbox’s $2.0 billion secured term loan led by Blackstone Credit & Insurance.

Lazard is a sought-after financial advisor for governments and public sector entities across developed and emerging markets worldwide, with assignments for the governments of Ghana and Sri Lanka.

For a list of publicly announced transactions please visit our website or follow Lazard on LinkedIn.

Asset Management

For the fourth quarter of 2024, Asset Management net revenue and adjusted net revenue1 were $312 million and $287 million, 6% and 5% higher than the fourth quarter of 2023, respectively.

Management fees and other revenue, on an adjusted basis1, were $258 million for the fourth quarter of 2024, in line with the fourth quarter of 2023, and 4% lower than the third quarter of 2024.

Incentive fees on an adjusted basis1 were $29 million for the fourth quarter of 2024, compared to $16 million for the fourth quarter of 2023.

Average assets under management (AUM) was $234 billion for the fourth quarter of 2024, in line with the fourth quarter of 2023, and 5% lower than the third quarter of 2024.

For the full year of 2024, Asset Management net revenue and adjusted net revenue1 were $1,187 million and $1,100 million, respectively, both 3% higher than 2023.

Management fees and other revenue, on an adjusted basis1, were $1,057 million for the full year of 2024, 2% higher than 2023.

Incentive fees on an adjusted basis1 were $43 million for the full year of 2024, compared to $30 million for 2023.

Average AUM for the full year of 2024 was $243 billion, 4% higher than 2023. AUM as of December 31, 2024 was $226 billion, 9% and 8% lower than September 30, 2024 and December 31, 2023, respectively. The sequential change from September 30, 2024 was driven by market depreciation of $2.4 billion, foreign exchange depreciation of $8.8 billion and net outflows of $10.1 billion.

Corporate

For the full year of 2024, Corporate net revenue and adjusted net revenue1 were $109 million and $59 million, respectively. On a U.S. GAAP basis, revenue for the full year of 2024 included $114 million related to the sale of an office building no longer occupied by Lazard, which resulted in net income of $70 million or $0.68 per share, diluted2.

OPERATING EXPENSES

Compensation and Benefits Expense

For the fourth quarter of 2024, compensation and benefits expense on a U.S. GAAP and adjusted basis1 were $534 million and $533 million, compared to $559 million and $516 million, respectively, for the fourth quarter of 2023. The adjusted compensation ratio3 for the fourth quarter of 2024 was 65.6%, compared to the fourth-quarter 2023 ratio of 67.8%.

For the full year of 2024, compensation and benefits expense on a U.S. GAAP and adjusted basis1 were $2,003 million and $1,903 million, compared to $1,946 million and $1,703 million, respectively, for 2023. The adjusted compensation ratio3 for the full year of 2024 was 65.9%, compared to 69.8% for 2023.

We focus on the adjusted compensation ratio to manage costs, balancing a view of current conditions in the market for talent alongside our objective to drive long-term shareholder value. We aim to deliver an adjusted compensation ratio of 60% in 2025, with further improvements in subsequent years, while targeting a consistent deferral policy.

Non-Compensation Expenses

For the fourth quarter of 2024, non-compensation expenses on a U.S. GAAP basis were $184 million, 3% higher than the fourth quarter of 2023. On an adjusted basis1, non-compensation expenses were $154 million, 4% higher than the fourth quarter of 2023.

The adjusted non-compensation ratio4 was 19.0% for the fourth quarter of 2024, compared to 19.5% for the fourth quarter of 2023.

For the full year of 2024, non-compensation expenses on a U.S. GAAP and adjusted basis1 were $670 million and $575 million, 3% lower than 2023 and in line with 2023, respectively.

The adjusted non-compensation ratio4 was 19.9% for the full year of 2024, compared to 23.4% for 2023.

Our goal remains to deliver an adjusted non-compensation ratio between 16% to 20%.

TAXES

The provisions for income taxes on a U.S. GAAP and adjusted basis1 were $29 million and $19 million, respectively, for the fourth quarter of 2024. The effective tax rate on an adjusted basis1 was 18.1% for the fourth quarter of 2024, compared to 16.0% for the fourth quarter of 2023.

The provisions for income taxes on a U.S. GAAP and adjusted basis1 were $100 million and $79 million, respectively, for the full year of 2024. The effective tax rate on an adjusted basis1 was 24.4% for the full year of 2024, compared to 14.5% for 2023.

CAPITAL MANAGEMENT AND BALANCE SHEET

In the fourth quarter of 2024, Lazard returned $61 million to shareholders, which included $45 million in dividends and $16 million in share repurchases of our common stock.

In 2024, Lazard returned $303 million to shareholders, which included: $179 million in dividends; $60 million in share repurchases of our common stock; and $64 million in satisfaction of employee tax obligations in lieu of share issuances upon vesting of equity grants.

During 2024, we repurchased 1.4 million shares at an average price of $42.20. As of January 24, 2025, our total outstanding share repurchase authorization was approximately $180 million.

On January 29, 2025, Lazard declared a quarterly dividend of $0.50 per share on its outstanding common stock. The dividend is payable on February 21, 2025, to stockholders of record on February 10, 2025.

Lazard’s financial position remains strong. As of December 31, 2024, our cash and cash equivalents were $1,308 million.

ENDNOTES

Beginning in the first quarter of 2024, Lazard has updated the names of certain non-U.S. GAAP (“non-GAAP”) measures and metrics. The nomenclature change did not result in any change to the components of our non-GAAP measures and metrics compared to prior periods. Reconciliations of U.S. GAAP to Adjusted results are shown on pages 14-16.

1

A non-GAAP measure. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. See attached financial schedules and related notes for a detailed explanation of adjustments to corresponding U.S. GAAP results. We believe that presenting our results on an adjusted basis, in addition to the U.S. GAAP results, is a meaningful and useful way to compare our operating results across periods.

2

Such amount is calculated using a numerator of U.S. GAAP net income arising from the sale of the office building of $70 million for the twelve month period ended December 31, 2024, and dividing by a denominator consisting of U.S. GAAP weighted average shares of 102,392,171 for the twelve month period ended December 31, 2024.

3

A non-GAAP measure which represents adjusted compensation and benefits expense as a percentage of adjusted net revenue.

4

A non-GAAP measure which represents adjusted non-compensation expenses as a percentage of adjusted net revenue.

CONFERENCE CALL

Lazard will host a conference call at 8:00 a.m. ET on January 30, 2025, to discuss the company’s financial results for the fourth-quarter and full-year 2024. The conference call can be accessed via a live audio webcast available through Lazard’s Investor Relations website at www.lazard.com, or by dialing +1 800-445-7795 (toll-free, U.S. and Canada) or +1 785-424-1699 (outside of the U.S. and Canada), 15 minutes prior to the start of the call. Conference ID: LAZQ424.

A replay of the conference call will be available by 10:00 a.m. ET, January 30, 2025, via the Lazard Investor Relations website at www.lazard.com, or by dialing +1 800-677-7320 (toll-free, U.S. and Canada) or +1 402-220-0666 (outside of the U.S. and Canada).

ABOUT LAZARD

Founded in 1848, Lazard is one of the world’s preeminent financial advisory and asset management firms, with operations in North and South America, Europe, Middle East, Asia, and Australia. Lazard provides advice on mergers and acquisitions, capital markets and capital solutions, restructuring and liability management, geopolitics, and other strategic matters, as well as asset management and investment solutions to institutions, corporations, governments, partnerships, family offices, and high net worth individuals. For more information, please visit www.lazard.com.

Cautionary Note Regarding Forward-Looking Statements:

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as “may,” “might,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “target,” “goal,” or “continue,” and the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies, business plans and initiatives and anticipated trends in our business. These forward-looking statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements.

These factors include, but are not limited to, those discussed in our Annual Report on Form 10-K under Item 1A “Risk Factors,” and also discussed from time to time in our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including the following:

• Adverse general economic conditions or adverse conditions in global or regional financial markets;
• A decline in our revenues, for example due to a decline in overall mergers and acquisitions (M&A) activity, our share of the M&A market or our assets under management (AUM);
• Losses caused by financial or other problems experienced by third parties;
• Losses due to unidentified or unanticipated risks;
• A lack of liquidity, i.e., ready access to funds, for use in our businesses;
• Competitive pressure on our businesses and on our ability to retain and attract employees at current compensation levels; and
• Changes in relevant tax laws, regulations or treaties or an adverse interpretation of those items.

These risks and uncertainties are not exhaustive. Our SEC reports describe additional factors that could adversely affect our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for our management to predict all risks and uncertainties, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

As a result, there can be no assurance that the forward-looking statements included in this release will prove to be accurate or correct. Although we believe the statements reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, achievements or events. Moreover, neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. We are under no duty to update any of these forward-looking statements after the date of this release to conform our prior statements to actual results or revised expectations and we do not intend to do so.

Lazard, Inc. is committed to providing timely and accurate information to the investing public, consistent with our legal and regulatory obligations. To that end, Lazard and its operating companies use their websites, and other social media sites to convey information about their businesses, including the anticipated release of quarterly financial results, quarterly financial, statistical and business-related information, and the posting of updates of assets under management in various mutual funds, hedge funds and other investment products managed by Lazard Asset Management LLC and Lazard Frères Gestion SAS. Investors can link to Lazard and its operating company websites through www.lazard.com.

LAZ-EPE

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(U.S. GAAP - unaudited)

 

 

Three Months Ended

 

% Change From

 

December 31,

 

September 30,

 

December 31,

 

September 30,

 

December 31,

($ in thousands, except per share data)

2024

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

Total revenue

$839,018

 

 

$807,414

 

 

$825,763

 

 

4

%

 

2

%

Interest expense

(22,149

)

 

(22,548

)

 

(19,742

)

 

 

 

 

Net revenue

816,869

 

 

784,866

 

 

806,021

 

 

4

%

 

1

%

Operating expenses:

 

 

 

 

 

 

 

 

 

Compensation and benefits

534,423

 

 

465,405

 

 

559,207

 

 

15

%

 

(4

%)

 

 

 

 

 

 

 

 

 

 

Occupancy and equipment

33,798

 

 

34,249

 

 

33,436

 

 

 

 

 

Marketing and business development

28,572

 

 

21,782

 

 

27,259

 

 

 

 

 

Technology and information services

47,573

 

 

44,628

 

 

47,363

 

 

 

 

 

Professional services

23,954

 

 

19,541

 

 

23,129

 

 

 

 

 

Fund administration and outsourced services

25,923

 

 

27,996

 

 

27,450

 

 

 

 

 

Other

23,779

 

 

10,078

 

 

19,739

 

 

 

 

 

Non-compensation expenses

183,599

 

 

158,274

 

 

178,376

 

 

16

%

 

3

%

Benefit pursuant to tax receivable agreement

(8,237

)

 

–

 

 

(3,459

)

 

 

 

 

Operating expenses

709,785

 

 

623,679

 

 

734,124

 

 

14

%

 

(3

%)

 

 

 

 

 

 

 

 

 

 

Operating income

107,084

 

 

161,187

 

 

71,897

 

 

(34

%)

 

49

%

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

28,788

 

 

45,052

 

 

403

 

 

(36

%)

 

NM

 

Net income

78,296

 

 

116,135

 

 

71,494

 

 

(33

%)

 

10

%

Net income (loss) attributable to noncontrolling interests

(8,014

)

 

8,197

 

 

7,927

 

 

 

 

 

Net income attributable to Lazard, Inc.

$86,310

 

 

$107,938

 

 

$63,567

 

 

(20

%)

 

36

%

 

 

 

 

 

 

 

 

 

 

Attributable to Lazard, Inc. Common Stockholders:

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

94,783,104

 

 

93,627,476

 

 

90,228,532

 

 

1

%

 

5

%

Diluted

106,113,813

 

 

103,475,234

 

 

94,989,330

 

 

3

%

 

12

%

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

Basic

$0.89

 

 

$1.13

 

 

$0.69

 

 

(21

%)

 

29

%

Diluted

$0.80

 

 

$1.02

 

 

$0.65

 

 

(22

%)

 

23

%

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(U.S. GAAP - unaudited)

 

Year Ended

 

December 31,

 

December 31,

 

 

($ in thousands, except per share data)

2024

 

2023

 

% Change

 

 

 

 

 

 

Total revenue

$3,139,904

 

 

$2,593,162

 

 

21

%

Interest expense

(88,067

)

 

(77,673

)

 

 

Net revenue

3,051,837

 

 

2,515,489

 

 

21

%

Operating expenses:

 

 

 

 

 

Compensation and benefits

2,003,212

 

 

1,946,010

 

 

3

%

 

 

 

 

 

 

Occupancy and equipment

132,935

 

 

131,117

 

 

 

Marketing and business development

99,446

 

 

99,357

 

 

 

Technology and information services

183,524

 

 

189,670

 

 

 

Professional services

87,109

 

 

89,308

 

 

 

Fund administration and outsourced services

107,173

 

 

110,878

 

 

 

Other

60,203

 

 

73,000

 

 

 

Non-compensation expenses

670,390

 

 

693,330

 

 

(3

%)

Benefit pursuant to tax receivable agreement

(8,237

)

 

(43,894

)

 

 

Operating expenses

2,665,365

 

 

2,595,446

 

 

3

%

 

 

 

 

 

 

Operating income (loss)

386,472

 

 

(79,957

)

 

NM

 

 

 

 

 

 

 

Provision (benefit) for income taxes

99,764

 

 

(22,650

)

 

NM

 

Net income (loss)

286,708

 

 

(57,307

)

 

NM

 

Net income attributable to noncontrolling interests

6,796

 

 

18,172

 

 

 

Net income (loss) attributable to Lazard, Inc.

$279,912

 

 

($75,479

)

 

NM

 

 

 

 

 

 

 

Attributable to Lazard, Inc. Common Stockholders:

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

Basic

93,139,352

 

 

88,993,985

 

 

5

%

Diluted

102,392,171

 

 

88,993,985

 

 

15

%

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

Basic

$2.93

 

 

($0.90

)

 

NM

 

Diluted

$2.68

 

 

($0.90

)

 

NM

 

CONDENSED CONSOLIDATED

STATEMENT OF FINANCIAL CONDITION

(U.S. GAAP - unaudited)

 

As of

 

December 31,

 

December 31,

($ in thousands)

2024

 

2023

 

 

 

 

ASSETS

 

 

 

 

Cash and cash equivalents

$1,308,218

 

 

$971,316

 

Deposits with banks and short-term investments

268,684

 

 

219,576

 

Restricted cash

32,466

 

 

34,091

 

Receivables

753,623

 

 

762,319

 

Investments

614,947

 

 

701,964

 

Property

160,402

 

 

232,516

 

Operating lease right-of-use assets

434,938

 

 

407,213

 

Goodwill and other intangible assets

393,575

 

 

394,928

 

Deferred tax assets

479,582

 

 

497,340

 

Other assets

347,558

 

 

414,518

 

 

 

 

 

Total Assets

$4,793,993

 

 

$4,635,781

 

 

 

 

 

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS & STOCKHOLDERS’ EQUITY

 

 

 

 

Liabilities

 

 

 

 

 

 

 

Deposits and other customer payables

$308,213

 

 

$443,262

 

Accrued compensation and benefits

844,953

 

 

781,375

 

Operating lease liabilities

505,483

 

 

485,191

 

Tax receivable agreement obligation

75,899

 

 

115,087

 

Senior debt

1,687,052

 

 

1,690,200

 

Other liabilities

607,610

 

 

550,804

 

Total liabilities

4,029,210

 

 

4,065,919

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Redeemable noncontrolling interests

79,629

 

 

87,675

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

Preferred stock, par value $.01 per share

–

 

 

–

 

Common stock, par value $.01 per share

1,128

 

 

1,128

 

Additional paid-in capital

327,810

 

 

247,204

 

Retained earnings

1,472,113

 

 

1,402,636

 

Accumulated other comprehensive loss, net of tax

(326,742

)

 

(289,950

)

Subtotal

1,474,309

 

 

1,361,018

 

Common stock held by subsidiaries, at cost

(838,069

)

 

(937,259

)

Total Lazard, Inc. stockholders’ equity

636,240

 

 

423,759

 

Noncontrolling interests

48,914

 

 

58,428

 

Total stockholders’ equity

685,154

 

 

482,187

 

 

 

 

 

Total liabilities, redeemable noncontrolling interests and stockholders’ equity

$4,793,993

 

 

$4,635,781

 

 

Note: “Property” includes $73 million of property held for sale at December 31, 2023 which was sold in July 2024.

SELECTED SUMMARY FINANCIAL INFORMATION (a)

(Adjusted Basis - Non-GAAP - unaudited)

 

 

Three Months Ended

 

% Change From

 

December 31,

 

September 30,

 

December 31,

 

September 30,

 

December 31,

($ in thousands, except per share data)

2024

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

Net Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Advisory

$507,672

 

 

$368,807

 

 

$477,366

 

 

38

%

 

6

%

Asset Management

287,211

 

 

271,510

 

 

273,694

 

 

6

%

 

5

%

Corporate

17,550

 

 

5,597

 

 

9,898

 

 

NM

 

 

77

%

 

 

 

 

 

 

 

 

 

 

Adjusted net revenue

$812,433

 

 

$645,914

 

 

$760,958

 

 

26

%

 

7

%

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted compensation and benefits expense

$532,563

 

 

$426,303

 

 

$515,724

 

 

25

%

 

3

%

Adjusted compensation ratio (b)

65.6

%

 

66.0

%

 

67.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted non-compensation expenses

$154,002

 

 

$138,239

 

 

$148,119

 

 

11

%

 

4

%

Adjusted non-compensation ratio (c)

19.0

%

 

21.4

%

 

19.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income

$125,868

 

 

$81,372

 

 

$97,115

 

 

55

%

 

30

%

Adjusted operating margin (d)

15.5

%

 

12.6

%

 

12.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income

$84,929

 

 

$39,706

 

 

$65,011

 

 

114

%

 

31

%

 

 

 

 

 

 

 

 

 

 

Adjusted diluted net income per share

$0.78

 

 

$0.38

 

 

$0.66

 

 

105

%

 

18

%

 

 

 

 

 

 

 

 

 

 

Adjusted diluted weighted average shares (e)

108,357,556

 

 

105,514,236

 

 

99,154,021

 

 

3

%

 

9

%

 

 

 

 

 

 

 

 

 

 

Adjusted effective tax rate (f)

18.1

%

 

32.5

%

 

16.0

%

 

 

 

 

 

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Reconciliation of U.S. GAAP to Selected Summary Financial Information and Notes to Financial Schedules.

See Notes to Financial Schedules

SELECTED SUMMARY FINANCIAL INFORMATION (a)

(Adjusted Basis - Non-GAAP - unaudited)

 

 

Year Ended

 

December 31,

 

December 31,

 

 

($ in thousands, except per share data)

2024

 

2023

 

% Change

 

 

 

 

 

 

Net Revenue:

 

 

 

 

 

 

 

 

 

 

 

Financial Advisory

$1,731,049

 

 

$1,356,835

 

 

28

%

Asset Management

1,099,874

 

 

1,067,559

 

 

3

%

Corporate

58,631

 

 

15,225

 

 

NM

 

 

 

 

 

 

 

Adjusted net revenue

$2,889,554

 

 

$2,439,619

 

 

18

%

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

Adjusted compensation and benefits expense

$1,903,463

 

 

$1,702,537

 

 

12

%

Adjusted compensation ratio (b)

65.9

%

 

69.8

%

 

 

 

 

 

 

 

 

Adjusted non-compensation expenses

$575,146

 

 

$571,504

 

 

1

%

Adjusted non-compensation ratio (c)

19.9

%

 

23.4

%

 

 

 

 

 

 

 

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income

$410,945

 

 

$165,578

 

 

148

%

Adjusted operating margin (d)

14.2

%

 

6.8

%

 

 

 

 

 

 

 

 

Adjusted net income

$244,110

 

 

$75,023

 

 

NM

 

 

 

 

 

 

 

Adjusted diluted net income per share

$2.34

 

 

$0.77

 

 

NM

 

 

 

 

 

 

 

Adjusted diluted weighted average shares (e)

104,398,248

 

 

97,450,393

 

 

7

%

 

 

 

 

 

 

Adjusted effective tax rate (f)

24.4

%

 

14.5

%

 

 

 

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Reconciliation of U.S. GAAP to Selected Summary Financial Information and Notes to Financial Schedules.

See Notes to Financial Schedules

COMPENSATION AND BENEFITS EXPENSE - ANALYSIS

(Adjusted Basis - Non-GAAP - unaudited)

 

 

 

 

Year Ended

 

 

 

 

December 31,

($ in millions)

2024

 

2023

 

2022

 

2021

 

2020

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Base salary

$547

 

$558

 

$535

 

$487

 

$455

 

$447

 

$432

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and other

345

 

291

 

293

 

287

 

228

 

258

 

264

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current cash incentive compensation (g)

587

 

365

 

458

 

662

 

435

 

391

 

446

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total cash compensation, benefits and other

1,479

 

1,213

 

1,286

 

1,436

 

1,118

 

1,096

 

1,141

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred incentive awards

424

 

489

 

371

 

400

 

384

 

368

 

376

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted compensation and benefits expense

$1,903

 

$1,703

 

$1,657

 

$1,836

 

$1,502

 

$1,464

 

$1,517

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted compensation ratio (b)

65.9%

 

69.8%

 

59.8%

 

58.5%

 

59.5%

 

57.5%

 

55.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Memo:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net revenue

$2,890

 

$2,440

 

$2,769

 

$3,139

 

$2,524

 

$2,546

 

$2,755

 

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Reconciliation of U.S. GAAP to Selected Summary Financial Information and Notes to Financial Schedules.

See Notes to Financial Schedules

ASSETS UNDER MANAGEMENT

(unaudited)

 

As of

 

% Change From

 

December 31,

 

September 30,

 

December 31,

 

September 30,

 

December 31,

($ in millions)

2024

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

 

Emerging Markets

$27,926

 

 

$29,449

 

 

$25,288

 

 

(5.2

%)

 

10.4

%

Global

49,058

 

 

50,441

 

 

53,528

 

 

(2.7

%)

 

(8.4

%)

Local

49,750

 

 

54,380

 

 

52,208

 

 

(8.5

%)

 

(4.7

%)

Multi-Regional

48,204

 

 

57,262

 

 

59,114

 

 

(15.8

%)

 

(18.5

%)

Total Equity

174,938

 

 

191,532

 

 

190,138

 

 

(8.7

%)

 

(8.0

%)

Fixed Income:

 

 

 

 

 

 

 

 

 

Emerging Markets

6,919

 

 

8,372

 

 

9,525

 

 

(17.4

%)

 

(27.4

%)

Global

11,138

 

 

12,474

 

 

10,762

 

 

(10.7

%)

 

3.5

%

Local

5,617

 

 

5,931

 

 

6,080

 

 

(5.3

%)

 

(7.6

%)

Multi-Regional

19,612

 

 

21,156

 

 

21,740

 

 

(7.3

%)

 

(9.8

%)

Total Fixed Income

43,286

 

 

47,933

 

 

48,107

 

 

(9.7

%)

 

(10.0

%)

Alternative Investments

2,917

 

 

3,011

 

 

3,330

 

 

(3.1

%)

 

(12.4

%)

Private Wealth Alternative Investments

3,097

 

 

3,044

 

 

2,799

 

 

1.7

%

 

10.6

%

Private Equity

1,514

 

 

1,514

 

 

1,623

 

 

–

%

 

(6.7

%)

Cash Management

569

 

 

623

 

 

654

 

 

(8.7

%)

 

(13.0

%)

Total AUM

$226,321

 

 

$247,657

 

 

$246,651

 

 

(8.6

%)

 

(8.2

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

 

2024

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

AUM - Beginning of Period

$247,657

 

 

$244,670

 

 

$228,264

 

 

$246,651

 

 

$216,125

 

 

 

 

 

 

 

 

 

 

 

Net Flows

(10,068

)

 

(12,379

)

 

(3,550

)

 

(35,676

)

 

(3,542

)

Market and foreign exchange

 

 

 

 

 

 

 

 

 

appreciation (depreciation)

(11,268

)

 

15,366

 

 

21,937

 

 

15,346

 

 

34,068

 

 

 

 

 

 

 

 

 

 

 

AUM - End of Period

$226,321

 

 

$247,657

 

 

$246,651

 

 

$226,321

 

 

$246,651

 

 

 

 

 

 

 

 

 

 

 

Average AUM

$233,813

 

 

$245,958

 

 

$233,949

 

 

$243,003

 

 

$233,098

 

 

 

 

 

 

 

 

 

 

 

% Change in Average AUM

 

 

(4.9

%)

 

(0.1

%)

 

 

 

4.2

%

 

Note: Average AUM generally represents the average of the monthly ending AUM balances for the period.

RECONCILIATION OF U.S. GAAP TO ADJUSTED RESULTS (a)

(unaudited)

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

($ in thousands)

2024

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

 

Net Revenue

Financial Advisory net revenue - U.S. GAAP Basis

$520,451

 

 

$370,917

 

 

$489,258

 

 

$1,756,183

 

 

$1,385,357

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

Reimbursable deal costs, provision for credit losses and other (h)

(12,780

)

 

(2,111

)

 

(11,581

)

 

(25,764

)

 

(30,565

)

 

Interest expense (i)

1

 

 

1

 

 

29

 

 

43

 

 

219

 

 

(Gains) losses associated with cost-saving initiatives (j)

–

 

 

–

 

 

(340

)

 

587

 

 

1,824

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Financial Advisory net revenue

$507,672

 

 

$368,807

 

 

$477,366

 

 

$1,731,049

 

 

$1,356,835

 

 

 

 

 

 

 

 

 

 

 

 

Asset Management net revenue - U.S. GAAP Basis

$312,136

 

 

$293,878

 

 

$294,284

 

 

$1,186,977

 

 

$1,151,496

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

Revenue related to noncontrolling interests and similar arrangements (k)

(8,893

)

 

(5,170

)

 

(3,392

)

 

(22,214

)

 

(16,332

)

 

Distribution fees and other (h)

(16,038

)

 

(17,199

)

 

(17,201

)

 

(64,901

)

 

(67,616

)

 

Interest expense (i)

6

 

 

1

 

 

3

 

 

12

 

 

11

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Asset Management net revenue

$287,211

 

 

$271,510

 

 

$273,694

 

 

$1,099,874

 

 

$1,067,559

 

 

 

 

 

 

 

 

 

 

 

 

Corporate net revenue - U.S. GAAP Basis

($15,718

)

 

$120,071

 

 

$22,479

 

 

$108,677

 

 

($21,364

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

(Revenue) loss related to noncontrolling interests and similar arrangements (k)

2,476

 

 

(5,943

)

 

(6,843

)

 

(7,339

)

 

(13,858

)

 

(Gains) losses related to Lazard Fund Interests (“LFI”) and other similar arrangements (l)

8,728

 

 

(16,732

)

 

(25,933

)

 

(16,176

)

 

(41,463

)

 

Provision for credit losses (h)

–

 

 

–

 

 

–

 

 

–

 

 

(7,500

)

 

Interest expense (i)

22,064

 

 

22,472

 

 

19,624

 

 

87,740

 

 

77,227

 

 

Asset impairment charges

–

 

 

–

 

 

–

 

 

–

 

 

19,129

 

 

Losses associated with cost-saving initiatives (j)

–

 

 

–

 

 

571

 

 

–

 

 

3,054

 

 

Gain on sale of property (m)

–

 

 

(114,271

)

 

–

 

 

(114,271

)

 

–

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Corporate net revenue

$17,550

 

 

$5,597

 

 

$9,898

 

 

$58,631

 

 

$15,225

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue - U.S. GAAP Basis

$816,869

 

 

$784,866

 

 

$806,021

 

 

$3,051,837

 

 

$2,515,489

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

Revenue related to noncontrolling interests and similar arrangements (k)

(6,417

)

 

(11,113

)

 

(10,235

)

 

(29,553

)

 

(30,190

)

 

(Gains) losses related to Lazard Fund Interests (“LFI”) and other similar arrangements (l)

8,728

 

 

(16,732

)

 

(25,933

)

 

(16,176

)

 

(41,463

)

 

Distribution fees, reimbursable deal costs, provision for credit losses and other (h)

(28,818

)

 

(19,310

)

 

(28,782

)

 

(90,665

)

 

(105,681

)

 

Interest expense (i)

22,071

 

 

22,474

 

 

19,656

 

 

87,795

 

 

77,457

 

 

Asset impairment charges

–

 

 

–

 

 

–

 

 

–

 

 

19,129

 

 

Losses associated with cost-saving initiatives (j)

–

 

 

–

 

 

231

 

 

587

 

 

4,878

 

 

Gain on sale of property (m)

–

 

 

(114,271

)

 

–

 

 

(114,271

)

 

–

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net revenue

$812,433

 

 

$645,914

 

 

$760,958

 

 

$2,889,554

 

 

$2,439,619

 

 

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Notes to Financial Schedules.

See Notes to Financial Schedules

RECONCILIATION OF U.S. GAAP TO ADJUSTED RESULTS (a)

(unaudited)

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

($ in thousands, except per share data)

2024

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

 

Compensation and Benefits Expense

Compensation and benefits expense - U.S. GAAP Basis

$534,423

 

 

$465,405

 

 

$559,207

 

 

$2,003,212

 

 

$1,946,010

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

Compensation and benefits expense related to noncontrolling interests and similar arrangements (k)

(13,707

)

 

(2,249

)

 

(1,736

)

 

(19,961

)

 

(9,233

)

 

(Charges) credits pertaining to LFI and other similar arrangements (n)

8,728

 

 

(16,732

)

 

(25,933

)

 

(16,176

)

 

(41,463

)

 

Expenses associated with cost-saving initiatives

–

 

 

–

 

 

(15,814

)

 

(46,610

)

 

(182,103

)

 

Expenses associated with sale of property (o)

3,119

 

 

(20,121

)

 

–

 

 

(17,002

)

 

–

 

 

Expenses associated with senior management transition (p)

–

 

 

–

 

 

–

 

 

–

 

 

(10,674

)

 

 

 

 

 

 

 

 

 

 

 

Adjusted compensation and benefits expense

$532,563

 

 

$426,303

 

 

$515,724

 

 

$1,903,463

 

 

$1,702,537

 

 

 

 

 

 

 

 

 

 

 

 

Non-Compensation Expenses

Non-compensation expenses - U.S. GAAP Basis

$183,599

 

 

$158,274

 

 

$178,376

 

 

$670,390

 

 

$693,330

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

Non-compensation expenses related to noncontrolling interests and similar arrangements (k)

(726

)

 

(672

)

 

(573

)

 

(2,805

)

 

(2,788

)

 

Distribution fees, reimbursable deal costs, provision for credit losses and other (h)

(28,818

)

 

(19,310

)

 

(28,782

)

 

(90,665

)

 

(105,681

)

 

Amortization and other acquisition-related costs

(53

)

 

(53

)

 

(95

)

 

(242

)

 

(334

)

 

Expenses associated with cost-saving initiatives

–

 

 

–

 

 

(807

)

 

(1,532

)

 

(13,023

)

 

 

 

 

 

 

 

 

 

 

 

Adjusted non-compensation expenses

$154,002

 

 

$138,239

 

 

$148,119

 

 

$575,146

 

 

$571,504

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

Operating income (loss) - U.S. GAAP Basis

$107,084

 

 

$161,187

 

 

$71,897

 

 

$386,472

 

 

($79,957

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

Operating income (loss) related to noncontrolling interests and similar arrangements (k)

8,016

 

 

(8,192

)

 

(7,926

)

 

(6,787

)

 

(18,169

)

 

Interest expense (i)

22,071

 

 

22,474

 

 

19,656

 

 

87,795

 

 

77,457

 

 

Amortization and other acquisition-related costs

53

 

 

53

 

 

95

 

 

242

 

 

334

 

 

Asset impairment charges

–

 

 

–

 

 

–

 

 

–

 

 

19,129

 

 

Losses associated with cost-saving initiatives (j)

–

 

 

–

 

 

231

 

 

587

 

 

4,878

 

 

Expenses associated with cost-saving initiatives

–

 

 

–

 

 

16,621

 

 

48,142

 

 

195,126

 

 

Gain on sale of property (m)

–

 

 

(114,271

)

 

–

 

 

(114,271

)

 

–

 

 

Expenses associated with sale of property (o)

(3,119

)

 

20,121

 

 

–

 

 

17,002

 

 

–

 

 

Expenses associated with senior management transition (p)

–

 

 

–

 

 

–

 

 

–

 

 

10,674

 

 

Benefit pursuant to tax receivable agreement obligation (“TRA”) (q)

(8,237

)

 

–

 

 

(3,459

)

 

(8,237

)

 

(43,894

)

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income

$125,868

 

 

$81,372

 

 

$97,115

 

 

$410,945

 

 

$165,578

 

 

 

 

 

 

 

 

 

 

 

 

Provision (Benefit) for Income Taxes

Provision (benefit) for income taxes - U.S. GAAP Basis

$28,788

 

 

$45,052

 

 

$403

 

 

$99,764

 

 

($22,650

)

Adjustment:

 

 

 

 

 

 

 

 

 

 

Tax effect of adjustments

(9,975

)

 

(25,915

)

 

11,949

 

 

(20,972

)

 

35,411

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted provision for income taxes

$18,813

 

 

$19,137

 

 

$12,352

 

 

$78,792

 

 

$12,761

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) attributable to Lazard, Inc.

Net income (loss) attributable to Lazard, Inc. - U.S. GAAP Basis

$86,310

 

 

$107,938

 

 

$63,567

 

 

$279,912

 

 

($75,479

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

Asset impairment charges

–

 

 

–

 

 

–

 

 

–

 

 

19,129

 

 

Losses associated with cost-saving initiatives (j)

–

 

 

–

 

 

231

 

 

587

 

 

4,878

 

 

Expenses associated with cost-saving initiatives

–

 

 

–

 

 

16,621

 

 

48,142

 

 

195,126

 

 

Gain on sale of property (m)

–

 

 

(114,271

)

 

–

 

 

(114,271

)

 

–

 

 

Expenses associated with sale of property (o)

(3,119

)

 

20,121

 

 

–

 

 

17,002

 

 

–

 

 

Expenses associated with senior management transition (p)

–

 

 

–

 

 

–

 

 

–

 

 

10,674

 

 

Benefit pursuant to tax receivable agreement obligation (“TRA”) (q)

(8,237

)

 

–

 

 

(3,459

)

 

(8,237

)

 

(43,894

)

 

Noncontrolling interests effect of adjustments

–

 

 

3

 

 

–

 

 

3

 

 

–

 

 

Tax effect of adjustments

9,975

 

 

25,915

 

 

(11,949

)

 

20,972

 

 

(35,411

)

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income

$84,929

 

 

$39,706

 

 

$65,011

 

 

$244,110

 

 

$75,023

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Weighted Average Shares Outstanding

Diluted Weighted Average Shares Outstanding - U.S. GAAP Basis

106,113,813

 

 

103,475,234

 

 

94,989,330

 

 

102,392,171

 

 

88,993,985

 

Adjustment: participating securities including profits interest participation rights and other

2,243,743

 

 

2,039,002

 

 

4,164,691

 

 

2,006,077

 

 

8,456,408

 

Adjusted Diluted Weighted Average Shares Outstanding (e)

108,357,556

 

 

105,514,236

 

 

99,154,021

 

 

104,398,248

 

 

97,450,393

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income (loss) per share:

 

 

 

 

 

 

 

 

 

U.S. GAAP Basis

$0.80

 

 

$1.02

 

 

$0.65

 

 

$2.68

 

 

($0.90

)

Diluted net income (loss) effect of adjustments

(0.02

)

 

(0.64

)

 

0.01

 

 

(0.34

)

 

1.67

 

Adjusted Basis

$0.78

 

 

$0.38

 

 

$0.66

 

 

$2.34

 

 

$0.77

 

 

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Notes to Financial Schedules.

See Notes to Financial Schedules

RECONCILIATION OF NON-COMPENSATION EXPENSES U.S. GAAP TO ADJUSTED (a)

(unaudited)

 

Three Months Ended

 

Year Ended

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

($ in thousands)

2024

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

Non-compensation expenses - U.S. GAAP Basis:

 

 

 

 

 

 

 

 

 

Occupancy and equipment

$33,798

 

 

$34,249

 

 

$33,436

 

 

$132,935

 

 

$131,117

 

Marketing and business development

28,572

 

 

21,782

 

 

27,259

 

 

99,446

 

 

99,357

 

Technology and information services

47,573

 

 

44,628

 

 

47,363

 

 

183,524

 

 

189,670

 

Professional services

23,954

 

 

19,541

 

 

23,129

 

 

87,109

 

 

89,308

 

Fund administration and outsourced services

25,923

 

 

27,996

 

 

27,450

 

 

107,173

 

 

110,878

 

Other

23,779

 

 

10,078

 

 

19,739

 

 

60,203

 

 

73,000

 

Non-compensation expenses - U.S. GAAP Basis

$183,599

 

 

$158,274

 

 

$178,376

 

 

$670,390

 

 

$693,330

 

 

 

 

 

 

 

 

 

 

 

Non-compensation expenses - Adjustments:

 

 

 

 

 

 

 

 

 

Occupancy and equipment (h)

($93

)

 

($88

)

 

($197

)

 

($1,849

)

 

($1,898

)

Marketing and business development (h) (k)

(4,501

)

 

(3,064

)

 

(3,748

)

 

(12,588

)

 

(15,299

)

Technology and information services (h) (k)

(30

)

 

(66

)

 

(149

)

 

(180

)

 

(8,270

)

Professional services (h) (k)

(1,368

)

 

(1,270

)

 

(1,306

)

 

(4,596

)

 

(6,408

)

Fund administration and outsourced services (h) (k)

(14,942

)

 

(16,660

)

 

(16,546

)

 

(62,226

)

 

(65,239

)

Other (h) (k)

(8,662

)

 

1,113

 

 

(8,311

)

 

(13,805

)

 

(24,712

)

Subtotal non-compensation expenses adjustments

($29,596

)

 

($20,035

)

 

($30,257

)

 

($95,244

)

 

($121,826

)

 

 

 

 

 

 

 

 

 

 

Adjusted non-compensation expenses:

 

 

 

 

 

 

 

 

 

Occupancy and equipment

$33,705

 

 

$34,161

 

 

$33,239

 

 

$131,086

 

 

$129,219

 

Marketing and business development

24,071

 

 

18,718

 

 

23,511

 

 

86,858

 

 

84,058

 

Technology and information services

47,543

 

 

44,562

 

 

47,214

 

 

183,344

 

 

181,400

 

Professional services

22,586

 

 

18,271

 

 

21,823

 

 

82,513

 

 

82,900

 

Fund administration and outsourced services

10,980

 

 

11,336

 

 

10,904

 

 

44,947

 

 

45,639

 

Other

15,117

 

 

11,191

 

 

11,428

 

 

46,398

 

 

48,288

 

Adjusted non-compensation expenses

$154,002

 

 

$138,239

 

 

$148,119

 

 

$575,146

 

 

$571,504

 

 

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Notes to Financial Schedules.

See Notes to Financial Schedules

LAZARD, Inc.

Notes to Financial Schedules

(a)

Selected Summary Financial Information are non-GAAP measures. Lazard believes that presenting results and measures on an adjusted basis in conjunction with U.S. GAAP measures provides a meaningful and useful basis for comparison of its operating results across periods.

Beginning in the first quarter of 2024, Lazard has updated the names of certain non-GAAP measures and metrics. The nomenclature change did not result in any change to the components of our non-GAAP measures and metrics compared to prior periods.

 

 

 

 

 

 

 

 

 

 

 

(b)

A non-GAAP measure which represents adjusted compensation and benefits expense as a percentage of adjusted net revenue.

 

 

 

 

 

 

 

 

 

 

 

(c)

A non-GAAP measure which represents adjusted non-compensation expenses as a percentage of adjusted net revenue.

 

 

 

 

 

 

 

 

 

 

 

(d)

A non-GAAP measure which represents adjusted operating income as a percentage of adjusted net revenue.

 

 

 

 

 

 

 

 

 

 

 

(e)

A non-GAAP measure which includes units of the long-term incentive compensation program consisting of profits interest participation rights, which are equity incentive awards that, subject to certain conditions, may be exchanged for shares of our common stock. Certain profits interest participation rights may be excluded from the computation of outstanding stock equivalents for U.S. GAAP net income per share. In addition, this measure includes the dilutive effect of the weighted average number of shares of common stock issuable from share-based compensation programs.

 

 

 

 

 

 

 

 

 

 

 

(f)

A non-GAAP measure which represents the adjusted provision for income taxes as a percentage of adjusted operating income less interest expense, amortization and other acquisition-related costs.

 

 

Three Months Ended

 

Year Ended

 

($ in thousands)

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

 

 

2024

 

2024

 

2023

 

2024

 

2023

 

Adjusted provision for income taxes

$18,813

 

$19,137

 

$12,352

 

$78,792

 

$12,761

 

Adjusted operating income less interest expense, amortization and other acquisition-related costs

103,744

 

58,845

 

77,364

 

322,908

 

87,787

 

Adjusted effective tax rate

18.1%

 

32.5%

 

16.0%

 

24.4%

 

14.5%

 

 

 

 

 

 

 

 

 

 

 

(g)

Current cash incentive compensation is composed of cash bonuses for a given year which are paid early in the following year, and for which no future service is required.

 

 

 

 

 

 

 

 

 

 

 

(h)

Represents certain distribution, introducer and management fees paid to third parties and reimbursable deal and other costs, for which an equal amount is excluded from both adjusted net revenue and adjusted non-compensation expenses, respectively, and excludes provision for credit losses, which represents fees and other receivables that are deemed uncollectible.

 

 

 

 

 

 

 

 

 

 

 

(i)

Interest expense, excluding interest expense incurred by Lazard Frères Banque SA (“LFB”), is added back in determining adjusted net revenue because such expense relates to corporate financing activities and is not considered to be a cost directly related to the revenue of our business.

 

 

 

 

 

 

 

 

 

 

 

(j)

Represents (gains) losses associated with the closing of certain offices as part of the cost-saving initiatives, including the reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss and transactions related to foreign currency exchange.

 

 

 

 

 

 

 

 

 

 

 

(k)

(Revenue) loss and expenses related to the consolidation of noncontrolling interests and similar arrangements are excluded because the Company has no economic interest in such amounts.

 

 

 

 

 

 

 

 

 

 

 

(l)

Represents changes in the fair value of investments held in connection with LFI and other similar deferred compensation arrangements, for which a corresponding equal amount is excluded from compensation and benefits expense.

 

 

 

 

 

 

 

 

 

 

 

(m)

Represents gain on the sale of an owned office building.

 

 

 

 

 

 

 

 

 

 

 

(n)

Represents changes in the fair value of the compensation liability recorded in connection with LFI and other similar deferred incentive compensation awards, for which a corresponding equal amount is excluded from adjusted net revenue.

 

 

 

 

 

 

 

 

 

 

 

(o)

Represents estimated statutory profit-sharing expenses associated with the sale of an owned office building.

 

 

 

 

 

 

 

 

 

 

 

(p)

Represents expenses associated with senior management transition reflecting the departure of certain executive officers.

 

 

 

 

 

 

 

 

 

 

 

(q)

Represents the effect of the periodic revaluation of the TRA liability.

 

 

 

 

 

 

 

 

 

 

 

NM

Not meaningful

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250130953086/en/

Media: Shannon Houston +1 212 632 6880 shannon.houston@lazard.com Investor: Alexandra Deignan +1 212 632 6886 alexandra.deignan@lazard.com