PJT Partners Inc. Reports Full Year and Fourth Quarter 2023 Results; Announces $500 Million Repurchase Authorization
- Record revenues of $1.15 billion for 2023, up 12% from the previous year
- GAAP Pretax Income of $178 million and Adjusted Pretax Income of $183 million
- GAAP Diluted EPS of $3.12 and Adjusted EPS of $3.27
- Record fourth quarter revenues of $329 million, a 17% increase from the previous year
- 12% increase in company-wide headcount
- $500 million Class A common stock repurchase program authorized by the Board
- Confidence expressed by the Chairman and CEO in the company's future growth prospects
- None.
Insights
The reported record revenues of $1.15 billion signify a robust 12% year-over-year growth, highlighting the company's ability to generate increased income despite potential market challenges. The growth in Advisory Revenues by 25% is particularly noteworthy, as it suggests a strong demand for the company's services in restructuring, which may indicate a broader trend of market realignment or distress in certain sectors. However, the notable 47% decline in Placement Revenues could raise concerns about the company's diversification of revenue streams and the impact of market conditions on fund placement activities.
Investors should consider the implications of the reported increase in headcount, which, while contributing to the firm's expansion, also correlates with a higher compensation and benefits expense, reaching 69.8% of revenues. This metric surpasses the previous year's figure, potentially indicating an investment in human capital that could yield future returns but may also pressure short-term profitability. The authorization of a $500 million stock repurchase program suggests confidence in the company's valuation and a commitment to shareholder returns, which could be perceived positively by the market.
The increase in Interest Income & Other by 162% year-over-year, although a smaller component of the total revenue, reflects a favorable interest rate environment or improved cash management strategies. This could be an indicator of the company's financial health and its ability to capitalize on external economic conditions. The strategic emphasis on enhancing their Strategic Advisory industry footprint aligns with the observed revenue growth in this segment and may be a strategic move to solidify the company's market position amidst competitive pressures.
However, the increase in non-compensation expenses, particularly Professional Fees and Occupancy and Related expenses, could indicate rising operational costs that may not be fully offset by revenue growth. This trend warrants close monitoring as it could impact future margins and profitability. The company's no funded debt status and substantial cash reserves provide financial flexibility and resilience, which is a significant consideration for stakeholders evaluating the company's risk profile and investment potential.
From an economic perspective, the company's performance can be seen as a microcosm of the broader financial services industry. The growth in advisory revenues may reflect a larger demand for strategic financial services, possibly due to increased market volatility or economic uncertainty, prompting companies to seek expert guidance. The decline in Placement Revenues could be symptomatic of a challenging fundraising environment, possibly linked to investor caution in the face of economic headwinds.
The company's ability to outperform in a 'challenging environment', as stated by the CEO, may be indicative of its operational resilience and strategic positioning. However, the reported figures also suggest a careful balance between growth and cost management is necessary, as the increase in expenses correlates closely with revenue growth, potentially constraining net income growth. The long-term success of the company's strategy will likely hinge on its ability to manage costs effectively while continuing to grow revenue streams and maintaining competitive service offerings.
Full Year Overview
-
Record Revenues of
$1.15 billion 12% from a year ago -
GAAP Pretax Income of
$178 million $183 million -
GAAP Diluted EPS of
$3.12 $3.27
Fourth Quarter Overview
-
Record Fourth Quarter Revenues of
$329 million 17% from a year ago -
GAAP Pretax Income of
$52 million $53 million -
GAAP Diluted EPS of
$0.87 $0.96
2023 Investments and Capital Management
-
1,012 Company-wide headcount, an increase of
12% from a year ago - 2.2 million share and share equivalents repurchased
-
$437 million -
Board authorized a
$500 million
Paul J. Taubman, Chairman and Chief Executive Officer, said, “We reported revenues that were the highest in our firm’s history as our balanced business model enabled us to outperform in a challenging environment. 2023 was also a record year for senior recruiting as we took advantage of dislocated market conditions to accelerate our investment in senior talent, enabling us to expand our capabilities across the firm with particular emphasis on enhancing our Strategic Advisory industry footprint. Amidst continued market uncertainty, we remain highly confident in our future growth prospects.”
Revenues
The following table sets forth revenues for the three months and year ended December 31, 2023 and 2022:
|
|
Three Months Ended
|
|
|
|
|
|
Year Ended
|
|
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
% Change |
|
|
2023 |
|
|
2022 |
|
|
% Change |
||||
|
|
(Dollars in Millions) |
|||||||||||||||||||
Revenues |
|
|
|||||||||||||||||||
Advisory |
|
$ |
290.6 |
|
|
$ |
230.8 |
|
|
|
|
|
$ |
1,026.6 |
|
|
$ |
823.5 |
|
|
|
Placement |
|
|
28.3 |
|
|
|
43.4 |
|
|
( |
|
|
|
102.6 |
|
|
|
192.9 |
|
|
( |
Interest Income & Other |
|
|
9.6 |
|
|
|
5.8 |
|
|
|
|
|
|
23.9 |
|
|
|
9.1 |
|
|
|
Total Revenues |
|
$ |
328.6 |
|
|
$ |
280.0 |
|
|
|
|
|
$ |
1,153.2 |
|
|
$ |
1,025.5 |
|
|
|
Year Ended
Total Revenues of
Advisory Revenues of
Placement Revenues of
Interest Income & Other of
Three Months Ended
Total Revenues of
Advisory Revenues of
Placement Revenues of
Interest Income & Other of
Expenses
The following tables set forth information relating to the Company’s expenses for the three months and year ended December 31, 2023 and 2022:
|
|
Year Ended December 31, |
|
|||||||||||||
|
|
2023 |
|
|
2022 |
|
||||||||||
|
|
GAAP |
|
|
As Adjusted |
|
|
GAAP |
|
|
As Adjusted |
|
||||
|
|
(Dollars in Millions) |
|
|||||||||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation and Benefits |
|
$ |
805.4 |
|
|
$ |
805.4 |
|
|
$ |
669.1 |
|
|
$ |
657.4 |
|
% of Revenues |
|
|
69.8 |
% |
|
|
69.8 |
% |
|
|
65.2 |
% |
|
|
64.1 |
% |
Non-Compensation |
|
$ |
170.2 |
|
|
$ |
165.1 |
|
|
$ |
154.9 |
|
|
$ |
147.6 |
|
% of Revenues |
|
|
14.8 |
% |
|
|
14.3 |
% |
|
|
15.1 |
% |
|
|
14.4 |
% |
Total Expenses |
|
$ |
975.6 |
|
|
$ |
970.5 |
|
|
$ |
824.0 |
|
|
$ |
805.0 |
|
% of Revenues |
|
|
84.6 |
% |
|
|
84.2 |
% |
|
|
80.4 |
% |
|
|
78.5 |
% |
Pretax Income |
|
$ |
177.6 |
|
|
$ |
182.7 |
|
|
$ |
201.5 |
|
|
$ |
220.5 |
|
% of Revenues |
|
|
15.4 |
% |
|
|
15.8 |
% |
|
|
19.6 |
% |
|
|
21.5 |
% |
|
|
Three Months Ended December 31, |
|
|||||||||||||
|
|
2023 |
|
|
2022 |
|
||||||||||
|
|
GAAP |
|
As Adjusted |
|
|
GAAP |
|
As Adjusted |
|
||||||
|
|
(Dollars in Millions) |
|
|||||||||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation and Benefits |
|
$ |
232.3 |
|
|
$ |
232.3 |
|
|
$ |
180.2 |
|
|
$ |
180.2 |
|
% of Revenues |
|
|
70.7 |
% |
|
|
70.7 |
% |
|
|
64.4 |
% |
|
|
64.4 |
% |
Non-Compensation |
|
$ |
44.6 |
|
|
$ |
43.3 |
|
|
$ |
39.7 |
|
|
$ |
38.5 |
|
% of Revenues |
|
|
13.6 |
% |
|
|
13.2 |
% |
|
|
14.2 |
% |
|
|
13.7 |
% |
Total Expenses |
|
$ |
276.9 |
|
|
$ |
275.6 |
|
|
$ |
220.0 |
|
|
$ |
218.7 |
|
% of Revenues |
|
|
84.3 |
% |
|
|
83.9 |
% |
|
|
78.6 |
% |
|
|
78.1 |
% |
Pretax Income |
|
$ |
51.7 |
|
|
$ |
53.0 |
|
|
$ |
60.0 |
|
|
$ |
61.3 |
|
% of Revenues |
|
|
15.7 |
% |
|
|
16.1 |
% |
|
|
21.4 |
% |
|
|
21.9 |
% |
Compensation and Benefits Expense
Year Ended
GAAP Compensation and Benefits Expense was
Three Months Ended
GAAP Compensation and Benefits Expense was
Non-Compensation Expense
Year Ended
GAAP Non-Compensation Expense was
The increase in GAAP and Adjusted Non-Compensation Expense compared with the prior year was principally due to increases in Professional Fees and Occupancy and Related expenses. Professional Fees increased principally due to higher consulting and legal expenses relating to the firm's business activities. Occupancy and Related increased principally due to the further expansion of our
Three Months Ended
GAAP Non-Compensation Expense was
The increase in GAAP and Adjusted Non-Compensation Expense compared with the prior year was principally due to increases in Professional Fees and Occupancy and Related expenses. Professional Fees increased principally due to higher legal expenses relating to the firm's business activities. Occupancy and Related increased principally due to the further expansion of our
Provision for Taxes
As of December 31, 2023, PJT Partners Inc. owned
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 years ended December 31, 2023 and 2022 was
Capital Management and Balance Sheet
As of December 31, 2023, the Company held cash, cash equivalents and short-term investments of
On February 5, 2024, the Company's Board of Directors authorized a
During the year ended December 31, 2023, the Company repurchased 1.6 million shares of Class A common stock in the open market, exchanged 321 thousand Partnership Units for cash and net share settled 246 thousand shares of Class A common stock to satisfy employee tax obligations. During the fourth quarter 2023, the Company repurchased 113 thousand shares of Class A common stock in the open market, exchanged 33 thousand Partnership Units for cash and net share settled 18 thousand shares of Class A common stock to satisfy employee tax obligations.
In total during the year ended December 31, 2023, the Company repurchased 2.2 million share equivalents at an average price of
The Company intends to repurchase 198 thousand Partnership Units for cash on February 13, 2024 at a price to be determined by the volume-weighted average price per share of the Company’s Class A common stock on February 8, 2024.
Dividend
The Board of Directors of PJT Partners Inc. has declared a quarterly dividend of
Quarterly Investor Call Details
PJT Partners will host a conference call on February 6, 2024 at 8:30 a.m. ET to discuss its full year and fourth quarter 2023 results. The conference call can be accessed via the internet at www.pjtpartners.com or by dialing +1 (800) 245-3047 (
About PJT Partners
PJT Partners is a premier, global, advisory-focused investment bank that was built from the ground up to be different. Our highly experienced, collaborative teams provide independent advice coupled with old-world, high-touch client service. This ethos has allowed us to attract some of the very best talent in the markets in which we operate. We deliver leading advice to many of the world's most consequential companies, effect some of the most transformative transactions and restructurings and raise billions of dollars of capital around the globe to support startups and more established companies. 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) failures of our computer systems or communication systems, including as a result of a catastrophic event and the use of remote work environments and virtual platforms; (d) the impact of catastrophic events, including business disruptions, pandemics, reductions in employment and an increase in business failures on (1) the
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, 2022, 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) have been 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
|
|
Three Months Ended
|
|
|
Year Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Advisory |
|
$ |
290,633 |
|
|
$ |
230,784 |
|
|
$ |
1,026,646 |
|
|
$ |
823,496 |
|
Placement |
|
|
28,338 |
|
|
|
43,405 |
|
|
|
102,611 |
|
|
|
192,890 |
|
Interest Income and Other |
|
|
9,583 |
|
|
|
5,764 |
|
|
|
23,925 |
|
|
|
9,119 |
|
Total Revenues |
|
|
328,554 |
|
|
|
279,953 |
|
|
|
1,153,182 |
|
|
|
1,025,505 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation and Benefits |
|
|
232,271 |
|
|
|
180,242 |
|
|
|
805,385 |
|
|
|
669,141 |
|
Occupancy and Related |
|
|
10,721 |
|
|
|
9,422 |
|
|
|
40,420 |
|
|
|
35,253 |
|
Travel and Related(1) |
|
|
8,727 |
|
|
|
9,481 |
|
|
|
31,190 |
|
|
|
30,404 |
|
Professional Fees |
|
|
7,856 |
|
|
|
5,548 |
|
|
|
36,581 |
|
|
|
27,200 |
|
Communications and Information Services |
|
|
4,840 |
|
|
|
4,078 |
|
|
|
17,157 |
|
|
|
16,897 |
|
Depreciation and Amortization |
|
|
3,460 |
|
|
|
3,319 |
|
|
|
14,047 |
|
|
|
15,475 |
|
Other Expenses(1) |
|
|
8,986 |
|
|
|
7,870 |
|
|
|
30,793 |
|
|
|
29,664 |
|
Total Expenses |
|
|
276,861 |
|
|
|
219,960 |
|
|
|
975,573 |
|
|
|
824,034 |
|
Income Before Provision for Taxes |
|
|
51,693 |
|
|
|
59,993 |
|
|
|
177,609 |
|
|
|
201,471 |
|
Provision for Taxes |
|
|
6,202 |
|
|
|
13,923 |
|
|
|
31,927 |
|
|
|
36,699 |
|
Net Income |
|
|
45,491 |
|
|
|
46,070 |
|
|
|
145,682 |
|
|
|
164,772 |
|
Net Income Attributable to Non-Controlling Interests |
|
|
20,579 |
|
|
|
21,496 |
|
|
|
63,883 |
|
|
|
74,238 |
|
Net Income Attributable to PJT Partners Inc. |
|
$ |
24,912 |
|
|
$ |
24,574 |
|
|
$ |
81,799 |
|
|
$ |
90,534 |
|
Net Income Per Share of Class A Common Stock |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.98 |
|
|
$ |
0.97 |
|
|
$ |
3.24 |
|
|
$ |
3.61 |
|
Diluted |
|
$ |
0.87 |
|
|
$ |
0.95 |
|
|
$ |
3.12 |
|
|
$ |
3.51 |
|
Weighted-Average Shares of Class A Common Stock Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
25,362,576 |
|
|
|
25,213,986 |
|
|
|
25,255,327 |
|
|
|
25,077,835 |
|
Diluted |
|
|
43,472,884 |
|
|
|
26,974,129 |
|
|
|
41,882,034 |
|
|
|
26,616,640 |
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
GAAP Net Income |
|
$ |
45,491 |
|
|
$ |
46,070 |
|
|
$ |
145,682 |
|
|
$ |
164,772 |
|
Less: GAAP Provision for Taxes |
|
|
6,202 |
|
|
|
13,923 |
|
|
|
31,927 |
|
|
|
36,699 |
|
GAAP Pretax Income |
|
|
51,693 |
|
|
|
59,993 |
|
|
|
177,609 |
|
|
|
201,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustments to GAAP Pretax Income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Transaction-Related Compensation Expense(2) |
|
|
— |
|
|
|
19 |
|
|
|
— |
|
|
|
11,765 |
|
Amortization of Intangible Assets(3) |
|
|
1,230 |
|
|
|
1,230 |
|
|
|
4,920 |
|
|
|
6,506 |
|
Spin-Off-Related Payable Due to Blackstone(4) |
|
|
36 |
|
|
|
33 |
|
|
|
136 |
|
|
|
804 |
|
Adjusted Pretax Income |
|
|
52,959 |
|
|
|
61,275 |
|
|
|
182,665 |
|
|
|
220,546 |
|
Adjusted Taxes(5) |
|
|
6,700 |
|
|
|
13,814 |
|
|
|
32,768 |
|
|
|
40,020 |
|
Adjusted Net Income |
|
|
46,259 |
|
|
|
47,461 |
|
|
|
149,897 |
|
|
|
180,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
If-Converted Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: Adjusted Taxes(5) |
|
|
(6,700 |
) |
|
|
(13,814 |
) |
|
|
(32,768 |
) |
|
|
(40,020 |
) |
Add: If-Converted Taxes(6) |
|
|
11,666 |
|
|
|
16,121 |
|
|
|
46,297 |
|
|
|
57,264 |
|
Adjusted Net Income, If-Converted |
|
$ |
41,293 |
|
|
$ |
45,154 |
|
|
$ |
136,368 |
|
|
$ |
163,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP Net Income Per Share of Class A Common Stock |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.98 |
|
|
$ |
0.97 |
|
|
$ |
3.24 |
|
|
$ |
3.61 |
|
Diluted |
|
$ |
0.87 |
|
|
$ |
0.95 |
|
|
$ |
3.12 |
|
|
$ |
3.51 |
|
GAAP Weighted-Average Shares of Class A
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
25,362,576 |
|
|
|
25,213,986 |
|
|
|
25,255,327 |
|
|
|
25,077,835 |
|
Diluted |
|
|
43,472,884 |
|
|
|
26,974,129 |
|
|
|
41,882,034 |
|
|
|
26,616,640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted Net Income, If-Converted Per Share |
|
$ |
0.96 |
|
|
$ |
1.08 |
|
|
$ |
3.27 |
|
|
$ |
3.92 |
|
Weighted-Average Shares Outstanding, If-Converted |
|
|
42,943,082 |
|
|
|
41,812,119 |
|
|
|
41,749,633 |
|
|
|
41,663,773 |
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
GAAP Compensation and Benefits Expense |
|
$ |
232,271 |
|
|
$ |
180,242 |
|
|
$ |
805,385 |
|
|
$ |
669,141 |
|
Transaction-Related Compensation Expense(2) |
|
|
— |
|
|
|
(19 |
) |
|
|
— |
|
|
|
(11,765 |
) |
Adjusted Compensation and Benefits Expense |
|
$ |
232,271 |
|
|
$ |
180,223 |
|
|
$ |
805,385 |
|
|
$ |
657,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-Compensation Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Occupancy and Related |
|
$ |
10,721 |
|
|
$ |
9,422 |
|
|
$ |
40,420 |
|
|
$ |
35,253 |
|
Travel and Related(1) |
|
|
8,727 |
|
|
|
9,481 |
|
|
|
31,190 |
|
|
|
30,404 |
|
Professional Fees |
|
|
7,856 |
|
|
|
5,548 |
|
|
|
36,581 |
|
|
|
27,200 |
|
Communications and Information Services |
|
|
4,840 |
|
|
|
4,078 |
|
|
|
17,157 |
|
|
|
16,897 |
|
Depreciation and Amortization |
|
|
3,460 |
|
|
|
3,319 |
|
|
|
14,047 |
|
|
|
15,475 |
|
Other Expenses(1) |
|
|
8,986 |
|
|
|
7,870 |
|
|
|
30,793 |
|
|
|
29,664 |
|
GAAP Non-Compensation Expense |
|
|
44,590 |
|
|
|
39,718 |
|
|
|
170,188 |
|
|
|
154,893 |
|
Amortization of Intangible Assets(3) |
|
|
(1,230 |
) |
|
|
(1,230 |
) |
|
|
(4,920 |
) |
|
|
(6,506 |
) |
Spin-Off-Related Payable Due to Blackstone(4) |
|
|
(36 |
) |
|
|
(33 |
) |
|
|
(136 |
) |
|
|
(804 |
) |
Adjusted Non-Compensation Expense |
|
$ |
43,324 |
|
|
$ |
38,455 |
|
|
$ |
165,132 |
|
|
$ |
147,583 |
|
The following table provides a summary of weighted-average shares outstanding for the three months and year ended December 31, 2023 and 2022 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
|
|
|
Year Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Weighted-Average Shares Outstanding - GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic Shares Outstanding, GAAP |
|
|
25,362,576 |
|
|
|
25,213,986 |
|
|
|
25,255,327 |
|
|
|
25,077,835 |
|
Dilutive Impact of Unvested RSUs(7) |
|
|
2,614,537 |
|
|
|
1,760,143 |
|
|
|
1,711,829 |
|
|
|
1,538,805 |
|
Dilutive Impact of Partnership Units(8) |
|
|
15,495,771 |
|
|
|
— |
|
|
|
14,914,878 |
|
|
|
— |
|
Diluted Shares Outstanding, GAAP |
|
|
43,472,884 |
|
|
|
26,974,129 |
|
|
|
41,882,034 |
|
|
|
26,616,640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-Average Shares Outstanding - If-Converted |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic Shares Outstanding, GAAP |
|
|
25,362,576 |
|
|
|
25,213,986 |
|
|
|
25,255,327 |
|
|
|
25,077,835 |
|
Unvested RSUs(9) |
|
|
2,614,537 |
|
|
|
1,760,143 |
|
|
|
1,711,829 |
|
|
|
1,540,744 |
|
Partnership Units(10) |
|
|
14,965,969 |
|
|
|
14,837,990 |
|
|
|
14,782,477 |
|
|
|
15,045,194 |
|
If-Converted Shares Outstanding |
|
|
42,943,082 |
|
|
|
41,812,119 |
|
|
|
41,749,633 |
|
|
|
41,663,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
As of December 31, |
|
|
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
||||
Fully-Diluted Shares Outstanding(11) |
|
|
46,046,461 |
|
|
|
43,599,438 |
|
|
|
|
|
|
|
||
As of December 31, 2023, in relation to awards granted containing both service and market conditions, the Company achieved a dividend adjusted 20-day volume-weighted average share price in excess of
Footnotes
(1) |
Certain balances in the prior period have been reclassified to conform to their current presentation. For the three months and year ended December 31, 2022, this resulted in a reclassification of |
(2) |
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. |
(3) |
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. |
(4) |
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. |
(5) |
Represents taxes on Adjusted Pretax Income, considering both current and deferred income tax effects for the current ownership structure. |
(6) |
Represents taxes on Adjusted Pretax Income, assuming all Partnership Units (excluding the unvested Partnership Units that have yet to satisfy market conditions) have been 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. |
(7) |
Represents the dilutive impact under the treasury method of unvested, non-participating RSUs that have a remaining service requirement. |
(8) |
Represents the number of shares assuming the conversion of vested Partnership Units, the dilutive impact of unvested Partnership Units with a remaining service requirement, and the dilutive impact of Partnership Units that achieved certain market conditions as if those conditions were achieved as of the beginning of the reporting period. |
(9) |
Represents the dilutive impact of unvested RSUs that have a remaining service requirement. |
(10) |
Represents the number of shares assuming the conversion of all Partnership Units, including Partnership Units that achieved certain market conditions as of the date those conditions were achieved, and excludes Partnership Units that have yet to satisfy certain market conditions. |
(11) |
Assumes all Partnership Units and unvested RSUs have been converted to shares of the Company’s Class A common stock. As of December 31, 2023, 1.4 million share equivalents that had 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/20240205436389/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
Source: PJT Partners Inc.
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