Earnings Review and Free Research Report: Houlihan Lokey’s EPS Soared 61.2%

Research Desk Line-up: Leucadia National Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 9, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Houlihan Lokey, Inc. (NYSE: HLT), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=HLT, following the Company’s release of its financial results on October 24, 2017, for the second quarter fiscal 2018. The investment bank’s revenue increased 30% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Lodging industry. Pro-TD has currently selected Leucadia National Corporation (NYSE: LUK) for due-diligence and potential coverage as the Company announced on October 26, 2017, its financial results for Q3 2017 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Leucadia National when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on HLT; also brushing on LUK. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For three months ended September 30, 2017, Houlihan’s revenue increased 30% to $242.18 million from $186.54 million in Q2 FY17.

For the reported quarter, Houlihan’s employee compensation and benefits expenses decreased 40 basis points to 66.6% of revenue from 67.0% of revenue in Q2 FY17. For the reported quarter, Houlihan’s adjusted employee compensation and benefits expenses increased 50 basis points to 64.0% of revenue from 63.5% of revenue in Q2 FY17. During Q2 FY18, the Company’s non-compensation expenses decreased 290 basis points to 11.4% of revenue, from 14.3% of revenue in the same period last year. During Q2 FY18, Houlihan’s total operating expenses increased 25% to $188.86 million from $151.56 million in the same period last year.

During Q2 FY18, Houlihan’s operating income increased 52.4% to $53.33 million from $34.98 million in the same period last year. For the reported quarter, the Company’s operating margin increased 330 basis points to 22% of revenue from 18.7% of revenue in Q2 FY17. During Q2 FY18, the Company’s adjusted operating income increased 43.8% to $59.62 million from $41.45 million in the same period last year.

For the reported quarter, Houlihan’s net income increased 60% to $33.36 million on a y-o-y basis from $20.88 million in Q2 FY17. During Q2 FY18, the Company’s diluted EPS increased 61.2% to $0.50 on a y-o-y basis from $0.31 in the same period last year. For the reported quarter, the Company’s adjusted net income increased 50% to $37.18 million on a y-o-y basis from $24.80 million in Q2 FY17. During Q2 FY18, the Company’s adjusted diluted EPS increased 51.3% to $0.56 on a y-o-y basis from $0.37 in the same period last year. Adjusted diluted EPS surpassed analysts’ expectations of $0.41.

Houlihan’s Segment Details

Corporate Finance – During Q2 FY18, the Corporate Finance segment’s revenues increased 46% to $145.82 million from $100.21 million in the same period last year. The increase was due to an increase in the number of closed transactions and increase in average transaction fees on closed transactions. For the reported quarter, the segment’s profit increased 95.5% to $54.21 million from $27.72 million in Q2 FY17. The increase was primarily due to a decrease in employee compensation and benefits expenses as a percentage of revenues and a decrease in non-compensation expenses as a percentage of revenues.

Financial Restructuring – During Q2 FY18, the Financial Restructuring segment’s revenues increased 11.0% to $63.28 million from $56.86 million in the same period last year. The increase was due to increase in the number of closed transactions. For the reported quarter, the segment’s profit decreased 44.6% to $7.84 million from $14.17 million in Q2 FY17. The decrease was due to increase in employee compensation and benefits expenses as a percentage of revenues.

Financial Advisory Services – During Q2 FY18, the Financial Advisory Services segment’s revenues increased 12% to $33.08 million from $29.47 million in the same period last year. The increase was due to strong performance by transaction opinion, transaction advisory, and portfolio valuation businesses. For the reported quarter, the segment’s profit increased 2.9% to $6.73 million from $6.54 million in Q2 FY17.

Balance Sheet

As on September 30, 2017, Houlihan’s cash and cash equivalents decreased 18.3% to $245.36 million from $300.31 million on March 31, 2017. For the reported quarter, the Company’s loans payable to non-affiliate increased 0.8% to $12.18 million from $12.08 million in Q4 FY17.

During Q2 FY18, the Company’s net accounts receivables decreased 35.1% to $39.36 million from $60.72 million in the fourth quarter of last year. For the reported quarter, the Company’s accounts payable and accrued expenses decreased 4.6% to $39.74 million from $41.66 million in Q4 FY17.

On October 24, 2017, the Company’s Board of Directors declared a quarterly cash dividend of $0.20 per share of Class A and Class B common stock, payable on December 15, 2017, to stockholders of record as of the close of business on December 04, 2017.

During Q2 FY18, the Company repurchased 261,991 shares of its common stock at an average price of $35.75 per share, for a total of $9.4 million.

Stock Performance

On Wednesday, November 08, 2017, the stock closed the trading session at $41.68, advancing 1.91% from its previous closing price of $40.90. A total volume of 286.42 thousand shares have exchanged hands, which was higher than the 3-month average volume of 261.40 thousand shares. Houlihan Lokey’s stock price skyrocketed 19.50% in the last three months, 19.32% in the past six months, and 74.91% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have soared 33.93%. The stock is trading at a PE ratio of 19.73 and has a dividend yield of 1.92%. At Wednesday’s closing price, the stock’s net capitalization stands at $2.79 billion.

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