Toggle SGML Header (+)


Section 1: 8-K (8-K)

Document
false0001302215 0001302215 2020-02-03 2020-02-03


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934


Date of report (Date of earliest event reported):
February 3, 2020

Houlihan Lokey, Inc.
(Exact Name of Registrant as Specified in Charter)
Delaware
 
001-37537
 
95-2770395
(State or Other Jurisdiction of
Incorporation)
 
(Commission File Number)
 
(IRS Employer
Identification No.)
10250 Constellation Blvd.
5th Floor
Los Angeles, California 90067
(Address of principal executive offices) (Zip Code)

310-788-5200
Registrant’s telephone number, including area code:

N/A
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Class A Common Stock, par value $0.001
 
HLI
 
New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨





Item 2.02.    Results of Operations and Financial Condition.

On February 3, 2020, Houlihan Lokey, Inc. issued a press release announcing its financial results for the third fiscal quarter ended December 31, 2019. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.

The information in Item 2.02 of this Current Report on Form 8-K, including the information contained in Exhibit 99.1, is being furnished to the Securities and Exchange Commission pursuant to Item 2.02, and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by a specific reference in such filing.

Item 9.01.    Financial Statements and Exhibits.

(d)  Exhibits

99.1    Press Release dated February 3, 2020.






SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Date:
February 3, 2020
Houlihan Lokey, Inc.
 
 
 
 
 
 
 
 
By:
/s/ J. Lindsey Alley
 
 
 
 
Name: J. Lindsey Alley
 
 
 
 
Position: Chief Financial Officer
 






EXHIBIT INDEX
Exhibit No.
 
Description
 
 
 
99.1
 



(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
402627060_hl2019logoa01.jpg

Houlihan Lokey Reports Third Quarter Fiscal 2020 Financial Results

Third Quarter Fiscal 2020 Revenues of $334 million
Third Quarter Fiscal 2020 Diluted EPS of $0.75
Adjusted Third Quarter Fiscal 2020 Diluted EPS of $0.88
Announces Dividend of $0.31 per Share for Fourth Quarter Fiscal 2020

LOS ANGELES and NEW YORK - February 3, 2020 - Houlihan Lokey, Inc. (NYSE:HLI) (“Houlihan Lokey” or the “Company”) today reported financial results for its third quarter ended December 31, 2019. For the third quarter ended December 31, 2019, revenues increased 11.9% to $334 million, compared with $298 million for the third quarter ended December 31, 2018.
Net income was $49 million, or $0.75 per diluted share, for the third quarter ended December 31, 2019, compared with $44 million, or $0.67 per diluted share, for the third quarter ended December 31, 2018. Adjusted net income for the third quarter ended December 31, 2019 was $58 million, or $0.88 per diluted share, compared with $51 million, or $0.77 per diluted share, for the third quarter ended December 31, 2018.
"Houlihan Lokey had a strong fiscal third quarter and we enter the new decade with good momentum across all three of our product lines. 2019 was not without its macro-economic challenges, but our firm performed well in light of those challenges as a result of our balanced revenue model, strong diversification across clients, industries and products, and most importantly, an exceptional group of employees. Now that calendar 2019 is behind us, I am proud to report that we have maintained our leadership rankings. Houlihan Lokey is the No. 1 M&A advisor for the last five consecutive years in the U.S., the No. 1 global restructuring advisor for the last six consecutive years, and the No. 1 global M&A fairness opinion advisor over the past 20 years, all based on number of transactions, according to Refinitiv.” stated Scott Beiser, Chief Executive Officer of Houlihan Lokey.

Selected Financial Data
(In thousands, except per share data)
U.S. GAAP
Three Months Ended December 31,
 
Nine Months Ended December 31,
2019
 
2018
 
2019
 
2018
Revenues
$
333,515

 
$
298,013

 
$
856,674

 
$
793,007

Operating expenses:

 

 

 

Employee compensation and benefits
213,107

 
187,180

 
551,056

 
501,682

Non-compensation expenses
52,392

 
48,590

 
144,672

 
132,779

Operating income
68,016

 
62,243

 
160,946

 
158,546

Other (income)/expense, net
(1,039
)
 
(688
)
 
(3,787
)
 
(3,301
)
Income before provision for income taxes
69,055

 
62,931

 
164,733

 
161,847

Provision for income taxes
20,161

 
18,974

 
39,954

 
48,089

Net income attributable to Houlihan Lokey, Inc.
$
48,894

 
$
43,957

 
$
124,779

 
$
113,758

 
 
 
 
 
 
 
 
Diluted earnings per share
$
0.75

 
$
0.67

 
$
1.90

 
$
1.72


Revenues

For the third quarter ended December 31, 2019, Corporate Finance ("CF") revenues increased 9%, Financial Restructuring ("FR") revenues increased 24%, and Financial and Valuation Advisory ("FVA"), formerly known as Financial Advisory Services, revenues increased 1% when compared with the third quarter ended December 31, 2018.


1

402627060_hl2019logoa01.jpg

Expenses

The Company’s employee compensation and benefits, non-compensation expenses, and provision for income taxes during the periods presented and described below are on a GAAP and an adjusted basis.
 
U.S. GAAP
 
Adjusted (Non-GAAP) *
 
Three Months Ended December 31,
(Dollars in thousands)
2019
 
2018
 
2019
 
2018
Expenses:
 
 
 
 
 
 
 
Employee compensation and benefits
$
213,107

 
$
187,180

 
$
203,430

 
$
181,042

% of Revenues
63.9
%
 
62.8
%
 
61.0
%
 
60.7
%
Non-compensation expenses
$
52,392

 
$
48,590

 
$
49,894

 
$
47,040

% of Revenues
15.7
%
 
16.3
%
 
15.0
%
 
15.8
%
Provision for Income Taxes
$
20,161

 
$
18,974

 
$
23,719

 
$
19,819

% of Pre-Tax Income
29.2
%
 
30.2
%
 
29.2
%
 
28.1
%
*
Adjusted figures represent non-GAAP information. See “Non-GAAP Financial Measures” and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable GAAP numbers.
 
U.S. GAAP
 
Adjusted (Non-GAAP) *
 
Nine Months Ended December 31,
(Dollars in thousands)
2019
 
2018
 
2019
 
2018
Expenses:
 
 
 
 
 
 
 
Employee compensation and benefits
$
551,056

 
$
501,682

 
$
521,604

 
$
483,266

% of Revenues
64.3
%
 
63.3
%
 
60.9
%
 
60.9
%
Non-compensation expenses
$
144,672

 
$
132,779

 
$
131,413

 
$
125,272

% of Revenues
16.9
%
 
16.7
%
 
15.3
%
 
15.8
%
Provision for Income Taxes
$
39,954

 
$
48,089

 
$
59,848

 
$
54,073

% of Pre-Tax Income
24.3
%
 
29.7
%
 
28.9
%
 
28.9
%
*
Adjusted figures represent non-GAAP information. See “Non-GAAP Financial Measures” and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable GAAP numbers.
Employee compensation and benefits expenses were $213 million for the third quarter ended December 31, 2019, compared with $187 million for the third quarter ended December 31, 2018. Adjusted employee compensation and benefits expenses were $203 million for the third quarter ended December 31, 2019, compared with $181 million for the third quarter ended December 31, 2018. This resulted in an adjusted compensation ratio of 61.0% for the third quarter ended December 31, 2019, versus 60.7% for the third quarter ended December 31, 2018. The increase in both employee compensation and benefits expenses and adjusted employee compensation and benefits expenses was primarily a result of an increase in revenues for the quarter when compared with the same quarter last year.

Non-compensation expenses were $52 million for the third quarter ended December 31, 2019, compared with $49 million for the third quarter ended December 31, 2018. Adjusted non-compensation expenses were $50 million for the quarter ended December 31, 2019, compared with $47 million for the third quarter ended December 31, 2018. The increase in both non-compensation expenses and adjusted non-compensation expenses was primarily driven by an increase in information technology and communication expenses and other operating expenses.

The provision for income taxes was $20 million, representing an effective tax rate of 29.2% for the third quarter ended December 31, 2019, compared with $19 million, representing an effective tax rate of 30.2% for the third quarter ended December 31, 2018. The adjusted provision for income taxes was $24 million, representing an adjusted effective tax rate of 29.2% for the third quarter ended December 31, 2019, compared with $20 million, representing an adjusted effective tax rate of 28.1% for the third quarter ended December 31, 2018.

2

402627060_hl2019logoa01.jpg

Segment Reporting for the Third Quarter

Corporate Finance
CF revenues increased 9% to $201 million for the third quarter ended December 31, 2019, compared with $184 million for the third quarter ended December 31, 2018. Revenues increased primarily due to an increase in the number of closed transactions and an increase in the average transaction fee on closed transactions.
 
Three Months Ended December 31,
 
Nine Months Ended December 31,
(Dollars in thousands)
2019
 
2018
 
2019
 
2018
Corporate Finance
 
 
 
 
 
 
 
Revenues
$
201,137

 
$
183,965

 
$
490,707

 
$
462,893

# of Managing Directors
122

 
108

 
122

 
108

# of Closed transactions (1)
95

 
89

 
225

 
220


Financial Restructuring
FR revenues increased 24% to $93 million for the third quarter ended December 31, 2019, compared with $75 million for the third quarter ended December 31, 2018. Revenues increased primarily due to an increase in the number of closed transactions.
 
Three Months Ended December 31,
 
Nine Months Ended December 31,
(Dollars in thousands)
2019
 
2018
 
2019
 
2018
Financial Restructuring
 
 
 
 
 
 
 
Revenues
$
92,808

 
$
75,013

 
$
249,438

 
$
218,173

# of Managing Directors
45

 
44

 
45

 
44

# of Closed transactions (1)
28

 
21

 
70

 
54

Financial and Valuation Advisory
FVA revenues increased 1% to $40 million for the quarter ended December 31, 2019, compared with $39 million for the third quarter ended December 31, 2018. Revenues increased as a result of a higher number of Fee Events in the quarter, among other things.
 
Three Months Ended December 31,
 
Nine Months Ended December 31,
(Dollars in thousands)
2019
 
2018
 
2019
 
2018
Financial and Valuation Advisory
 
 
 
 
 
 
 
Revenues
$
39,570

 
$
39,035

 
$
116,529

 
$
111,941

# of Managing Directors
32

 
35

 
32

 
35

# of Fee Events (1)
530

 
502

 
1,086

 
1,046

(1)
A Fee Event includes any engagement that involves revenue activity during the measurement period based on a revenue minimum of $1,000. References in this press release to closed transactions should be understood to be the same as transactions that are “effectively closed” as described in our Quarterly Report on Form 10-Q for the quarter ended December 31, 2019.
Balance Sheet and Capital Allocation

The Board of Directors of the Company declared a regular quarterly cash dividend of $0.31 per share of Class A and Class B common stock. The dividend will be payable on March 16, 2020 to stockholders of record as of the close of business on March 5, 2020.

As of December 31, 2019, the Company had $368 million of cash and cash equivalents and investment securities, and $41 million of loans payable and other liabilities.

Investor Conference Call and Webcast

The Company will host a conference call and live webcast at 5:00 p.m. Eastern Time on Monday, February 3, 2020, to discuss its third quarter fiscal 2020 results. The number to call is 1-877-407-4018 (domestic) or 1-201-689-8471 (international). A live webcast will be available in the Investor Relations section of the Company’s website. A replay of the conference call will be available from February 3, 2020 through February 10, 2020, by dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and entering the passcode 13698114#. A replay of the webcast will be archived and available on the Company’s website.

3

402627060_hl2019logoa01.jpg


Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects,” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors which are, in some cases, beyond the Company’s control and could materially affect actual results, performance, or achievements. For a further description of such factors, you should read the Company’s filings with the Securities and Exchange Commission. The Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Non-GAAP Financial Measures

Adjusted net income, total and on a per share basis, and certain adjusted items used to determine adjusted net income, are presented and discussed in this earnings press release and are non-GAAP measures that management believes, when presented together with comparable GAAP measures, are useful to investors in understanding the Company’s operating results. These adjusted items remove the significant accounting impact of one-time or non-recurring charges associated with the Company’s one-time/non-recurring matters, as set forth in the tables at the end of this release.

The adjusted items included in this earnings press release as calculated by the Company are not necessarily comparable to similarly titled measures reported by other companies. Additionally, these adjusted amounts are not a measurement of financial performance or liquidity under GAAP and should not be considered as an alternative to the Company’s financial information determined under GAAP. For a description of the Company’s use of these adjusted items and a reconciliation with comparable GAAP items, see the section of this press release titled “Reconciliation of GAAP to Adjusted Financial Information.” Please refer to our Quarterly Report on Form 10-Q for the quarter ended December 31, 2019, prepared in accordance with GAAP, for purposes of evaluating our financial condition, results of operations, and cash flows.

About Houlihan Lokey

Houlihan Lokey (NYSE:HLI) is a global investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, and valuation. The firm serves corporations, institutions, and governments worldwide with offices in the United States, Europe, the Middle East, and the Asia-Pacific region. Independent advice and intellectual rigor are hallmarks of the firm’s commitment to client success across its advisory services. Houlihan Lokey is the No. 1 M&A advisor for the last five consecutive years in the U.S., the No. 1 global restructuring advisor for the last six consecutive years, and the No. 1 global M&A fairness opinion advisor over the past 20 years, all based on number of transactions and according to data provided by Refinitiv (formerly Thomson Reuters).

For more information, please visit www.HL.com.




4

402627060_hl2019logoa01.jpg

Contact Information
Investor Relations
212.331.8225
OR
Public Relations
212.331.8223

Appendix

Condensed Consolidated Balance Sheet (Unaudited)
Condensed Consolidated Statement of Income (Unaudited)
Reconciliation of GAAP to Adjusted Financial Information (Unaudited)


5

402627060_hl2019logoa01.jpg

HOULIHAN LOKEY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In thousands, except share data and par value)
December 31, 2019
 
March 31,
2019
Assets
 
 
 
Cash and cash equivalents
$
276,735

 
$
285,746

Restricted cash
373

 
369

Investment securities
91,195

 
125,258

Accounts receivable, net of allowance for doubtful accounts
62,412

 
70,830

Unbilled work in process, net of allowance for doubtful accounts
67,957

 
71,891

Receivable from affiliates

 
8,631

Deferred income taxes
7,610

 
2,854

Property and equipment, net
41,556

 
31,034

Operating lease right-of-use asset
129,403

 

Goodwill and other intangibles, net
822,732

 
794,604

Other assets
38,657

 
34,695

Total assets
$
1,538,630

 
$
1,425,912

 
 
 
 
Liabilities and Stockholders' Equity
 
 
 
Liabilities:
 
 
 
Accrued salaries and bonuses
$
322,156

 
$
404,717

Accounts payable and accrued expenses
45,391

 
55,048

Deferred income
27,896

 
27,812

Income taxes payable
3,758

 
7,759

Deferred income taxes
1,686

 
8,058

Loans payable to former shareholders
1,602

 
2,047

Loan payable to non-affiliate
3,342

 
6,610

Operating lease liabilities
150,157

 

Other liabilities
35,949

 
22,532

Total liabilities
591,937

 
534,583

 
 
 
 
Stockholders' equity:
 
 
 
Class A common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 43,569,993 and 38,200,802 shares, respectively
44

 
38

Class B common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 21,998,937 and 27,197,734 shares, respectively
22

 
27

Additional paid-in capital
636,123

 
645,090

Retained earnings
339,821

 
276,468

Accumulated other comprehensive (loss)
(29,317
)
 
(30,294
)
Total stockholders' equity
946,693

 
891,329

Total liabilities and stockholders' equity
$
1,538,630

 
$
1,425,912


6

402627060_hl2019logoa01.jpg

HOULIHAN LOKEY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
 
Three Months Ended December 31,
 
Nine Months Ended December 31,
(In thousands, except share and per share data)
2019
 
2018
 
2019
 
2018
Revenues
$
333,515

 
$
298,013

 
$
856,674

 
$
793,007

Operating expenses:
 
 
 
 
 
 
 
Employee compensation and benefits
213,107

 
187,180

 
551,056

 
501,682

Travel, meals, and entertainment
12,943

 
12,991

 
32,760

 
32,689

Rent
9,531

 
9,987

 
34,454

 
28,612

Depreciation and amortization
4,336

 
3,635

 
12,280

 
10,809

Information technology and communications
7,225

 
5,775

 
19,477

 
16,073

Professional fees
6,204

 
6,087

 
16,494

 
18,148

Other operating expenses
12,153

 
10,115

 
29,207

 
26,448

Total operating expenses
265,499

 
235,770

 
695,728

 
634,461

Operating income
68,016

 
62,243

 
160,946

 
158,546

Other (income)/expense, net
(1,039
)
 
(688
)
 
(3,787
)
 
(3,301
)
Income before provision for income taxes
69,055

 
62,931

 
164,733

 
161,847

Provision for income taxes
20,161

 
18,974

 
39,954

 
48,089

Net income attributable to Houlihan Lokey, Inc.
$
48,894

 
$
43,957

 
$
124,779

 
$
113,758

 
 
 
 
 
 
 
 
  Weighted average shares of common stock outstanding:
 
 
 
 
 
 
 
    Basic
62,014,564

 
61,972,027

 
62,199,716

 
62,399,221

    Fully diluted
65,608,026

 
65,758,679

 
65,770,056

 
65,985,660

Earnings per share
 
 
 
 
 
 
 
    Basic
$
0.79

 
$
0.71

 
$
2.01

 
$
1.82

    Fully diluted
$
0.75

 
$
0.67

 
$
1.90

 
$
1.72



7

402627060_hl2019logoa01.jpg

HOULIHAN LOKEY, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO ADJUSTED FINANCIAL INFORMATION
(UNAUDITED)
 
Three Months Ended December 31,
 
Nine Months Ended December 31,
(In thousands, except per share data)
2019
 
2018
 
2019
 
2018
Revenues
$
333,515

 
$
298,013

 
$
856,674

 
$
793,007

 
 
 
 
 
 
 
 
Employee compensation and benefits
 
 
 
 
 
 
 
Employee compensation and benefits (GAAP)
$
213,107

 
$
187,180

 
$
551,056

 
$
501,682

Less/plus: adjustments (1)
(9,677
)
 
(6,138
)
 
(29,452
)
 
(18,417
)
Employee compensation and benefits (adjusted)
203,430

 
181,042

 
521,604

 
483,266

 


 


 
 
 
 
Non-compensation expenses
 
 
 
 
 
 
 
Non-compensation expenses (GAAP)
$
52,392

 
$
48,590

 
$
144,672

 
$
132,779

Less/plus: adjustments (2)
(2,498
)
 
(1,550
)
 
(13,259
)
 
(7,507
)
Non-compensation expenses (adjusted)
49,894

 
47,040

 
131,413

 
125,272

 
 
 
 
 
 
 
 
Operating income
 
 
 
 
 
 
 
Operating income (GAAP)
$
68,016

 
$
62,243

 
$
160,946

 
$
158,546

Less/plus: adjustments (3)
12,175

 
7,688

 
42,711

 
25,924

Operating income (adjusted)
80,191

 
69,931

 
203,657

 
184,469

 
 
 
 
 
 
 
 
Other (income)/expense, net
 
 
 
 
 
 
 
Other (income)/expense, net (GAAP)
$
(1,039
)
 
$
(688
)
 
$
(3,787
)
 
$
(3,301
)
Less/plus: adjustments (4)

 

 

 
719

Other (income)/expense, net (adjusted)
(1,039
)
 
(688
)
 
(3,787
)
 
(2,582
)
 
 
 
 
 
 
 
 
Provision for income taxes
 
 
 
 
 
 
 
Provision for income taxes (GAAP)
$
20,161

 
$
18,974

 
$
39,954

 
$
48,089

Less/plus: adjustments (5)
3,558

 
845

 
19,894

 
5,984

Provision for income taxes (adjusted)
23,719

 
19,819

 
59,848

 
54,073

 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
Net income (GAAP)
$
48,894

 
$
43,957

 
$
124,779

 
$
113,758

Less/plus: adjustments (6)
8,617

 
6,843

 
22,817

 
19,221

Net income (adjusted)
57,511

 
50,799

 
147,596

 
132,979

 
 
 
 
 
 
 
 
Diluted EPS (GAAP)
$
0.75

 
$
0.67

 
$
1.90

 
$
1.72

Diluted adjusted EPS
$
0.88

 
$
0.77

 
$
2.24

 
$
2.02

Note: Figures may not sum due to rounding.
(1)
Consists of pre-IPO grant vesting, including grants re-awarded following forfeiture, if any ($(6,193) in Q3 FY20 and $(6,138) in Q3 FY19; $(18,269) in YTD Q3 FY20 and $(18,417) in YTD Q3 FY19), and acquisition-related retention pools ($(3,484) in Q3 FY20 and $0 in Q3 FY19; $(11,183) in YTD Q3 FY20 and $0 in YTD Q3 FY19).
(2)
Includes costs associated with Houlihan Lokey, Inc.'s secondary offering of stock ($0 in Q3 FY20 and $0 in Q3 FY19; $(665) in YTD Q3 FY20 and $(498) in YTD Q3 FY19), acquisition related costs ($(579) in Q3 FY20 and $0 Q3 FY19; $(579) YTD Q3 FY20 and $(1,929) in YTD Q3 FY19), acquisition-related amortization ($(1,919) in Q3 FY20 and $(1,550) in Q3 FY19; $(5,184) YTD Q3 FY20 and $(4,461) YTD Q3 FY19), HL Finance setup costs ($0 in Q3 FY20 and $0 in Q3 FY19; $0 in YTD Q3 FY20 and $(619) in YTD Q3 FY19), and costs associated with our London office consolidation and move ($0 in Q3 FY20 and $0 in Q3 FY19; $(6,831) YTD Q3 FY20 and $0 YTD Q3 FY19).
(3)
Includes adjustments from (1) and (2) above.
(4)
Includes the reduction of an earnout liability ($0 in Q3 FY20 and $0 in Q3 FY19; $0 YTD Q3 FY20 and $719 YTD Q3 FY19).
(5)
Includes adjustments to determine the adjusted effective tax rate, which are: the Tax Act ($0 in Q3 FY20 and $(1,313) in Q3 FY19; $0 in YTD Q3 FY20 and $(1,313) in YTD Q3 FY19) and a YTD Q3 FY20 adjustment of $7,605 relating to shares vested during the first quarter of the fiscal year. The resulting tax impact using the adjusted effective tax rate, of the adjustments described in footnotes 1, 2, and 4 above is ($3,558 in Q3 FY20 and $2,158 in Q3 FY19; $12,289 YTD Q3 FY20 and $7,297 YTD Q3 FY19).
(6)
Consists of the adjustments described above net of the tax impact of described adjustments.

8
(Back To Top)