Houlihan Lokey, Inc. · NYSE:HLI
Houlihan Lokey — Investor Presentation (July 2017)
24 slides from Houlihan Lokey's investor presentation, July 2017
Slide 1: Investor Presentation July 2017
Investor Presentation JULY 2017
Slide 2: Disclaimer
Disclaimer Forward-Looking Information This presentation contains forward-looking statements. All statements other than statements of historical facts contained in this presentation may be forward-looking statements. The words “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “int
Slide 3: Our Culture
Our Culture Analytically Driven Client Service and Solution Driven Employee DNA Entrepreneurial Desirous of a Winning Home Partnership Culture Not a “Star” Culture Firm’s DNA Consensual Decision Making Measured Risk Taking Ownership Broad-Based, Long-Term Employee Ownership and Con
Slide 4: A Leading Independent Global Investment Bank
A Leading Independent Global Investment Bank Expertise Global Integrated Platform Growth Mergers & Acquisitions Seamlessly Combining 2013–2017 Capital Markets Advisory Product and Industry Expertise Revenue CAGR1 of 14% Financial Restructuring worldwide Unadjusted2 Net Income CAGR1 of 16% Financial
Slide 5: Principal Investment Highlights
Principal Investment Highlights Strong Track Record of Growth and Profitability Low Revenue and Earnings Volatility Through Economic Cycles High Quality Earnings Long-Tenured Management Team Differentiated, Cyclically Balanced Business Model Strong Sector Fundamentals for Independent Adv
Slide 6: Our Three Primary Business Segments
Our Three Primary Business Segments Our business is diversified across clients, services, industries and geographies, as well as cyclically balanced, allowing us to succeed in both bull and bear markets. Corporate Financial Financial Finance Restructuring Advisory Services Financial Opinions M&A Out
Slide 7: Diversified Revenue Base
Diversified Revenue Base More than 1,000 clients served annually Balanced Client Mix1 For FY 2017: Public Private Equity Companies & & Other No single transaction fee represented more than 2% of our Government Institutional Owned 26% revenues 20% No individual banker was responsible for more
Slide 8: Market Leader in All Three Business Segments
Market Leader in All Three Business Segments Top U.S. M&A Advisor Top Global Restructuring Advisor Top Global Fairness Opinion Advisor CY 2016 Financial Advisors by Number CY 2016 Global Distressed Debt & Bankruptcy U.S. M&A Fairness Advisors: Announced or of U.S. M&A Deals Restructuring Deals Compl
Slide 9: Organic Growth Strengthened by Strategic Acquisitions
Organic Growth Strengthened by Strategic Acquisitions Technology and IP Continental European Consumer, Food & Retail Media-Focused Joint Venture Expanding Financial Advisory Firm Investment Banking Firm Focused Investment Investment Banking Firm Presence in Australia Banking Firm January 2017 Novemb
Slide 10: Comprehensive Coverage and Global Scale
Comprehensive Coverage and Global Scale Global 1,144 Employees1 24 Global Locations 1 385 Corporate Finance 19 Houlihan Lokey Offices 2010-Present 183 Financial Restructuring 5 Joint Venture Offices Mumbai 240 Financial Advisory Services Singapore 336 Corporate & Administrative Miami 2000-2009
Slide 11: Strong Partnership Culture with Experienced Leadership
Strong Partnership Culture with Experienced Leadership Deep and Experienced Management Team Long Tenure Results in Collaborative Culture Scott L. Beiser CEO 33 years with Houlihan Lokey Tenured Management High Banker Team Retention Irwin N. Gold 28-year average tenure of 12-year average tenure Execu
Slide 12: Overview of Product Lines
Overview of Product Lines
Slide 13: Corporate Finance Business
Corporate Finance Business Corporate Finance is a leader in the U.S. mid-cap space, which represented approximately 98% of M&A volume in CY 2016 Our market share in the U.S. mid-cap space is less than 2%, based on the number of M&A transactions we completed in CY 2016 The mid-cap space is mean
Slide 14: Corporate Finance Business
Corporate Finance Business Announced U.S. M&A volume has a 5-year (2011-2016) CAGR of 5.1% U.S. M&A revenues in our corporate finance business have a 5-year (2011-2016) CAGR in excess of 15%, reflecting continued market share gains during the measurement period We continue to increase market s
Slide 15: Financial Restructuring Business
Financial Restructuring Business Deepest bench in the industry, with 41 MDs and 183 total Top Global Restructuring Advisor finance professionals as of June 30, 2017 2016 Global Distressed Debt & Bankruptcy Restructuring Deals A true global player, having closed transactions in more Houlihan than
Slide 16: Financial Advisory Services Business
Financial Advisory Services Business Transaction Opinions Financial Reporting Opinions Dispute Resolution Services Offered Portfolio Valuations Strategic and Financial Consulting IP Valuation and Monetization Advisory More than 1,200 fee events each year Diversified Approximately one
Slide 17: Robust Growth Opportunities
Robust Growth Opportunities In order to effectuate our growth drivers: Corporate Finance Continued market share gains Increasing deal size and deal fees We will continue to grow Expansion into Europe and Asia-Pacific (replicating the U.S. model) our talent pool through: Complementary product
Slide 18: Financial Overview
Financial Overview
Slide 19: Strong Top-Line Growth and Disciplined Expense Management
Strong Top-Line Growth and Disciplined Expense Management Long history of revenue growth through various market Revenue cycles 14% CAGR 4-year (FY 2013 to FY 2017) Revenue CAGR of 14% $872 20% Growth $681 $694 $520 $592 15-year (FY 2002 to FY 2017) Revenue CAGR of 8% $181 $217 Resilient busi
Slide 20: Segment Financials
Segment Financials Total Revenue by Segment Segment Profit1,2 ’16-’17 ’16-’17 Growth Growth 14% CAGR $872 +26% 17% CAGR $241 +28% 12% -(5)% 15% +9% $681 $694 $189 $178 $592 15% 17% 16% $149 14% 38% +69% $520 35% +52% 17% $130 17% 18% 31% 29% 29% 29% 16% 20% Growth 30% Growth 39% 38% 41% 45% $217 $61
Slide 21: Our Mission
Our Mission We help our clients achieve superior outcomes by providing thoughtful, caring advice while acting with honor and integrity. We are strategic in our approach to growth and are committed to creating lasting value for our shareholders. We maintain an intellectually stimulating, fair, and fu
Slide 22: Appendix
Appendix
Slide 23: Reconciliation of GAAP to Adjusted Financial Information
Reconciliation of GAAP to Adjusted Financial Information (Unaudited and in thousands, except share and per share data) For the Three-Months Ended 06/30/17 06/30/16 Fee revenue $217,491 $180,774 Employee Compensation and Benefits Employee Compensation and Benefits (GAAP) $145,509 $121,804 Less/Plus:
Slide 24: HL.com
CORPORATEFINANCE FINANCIALRESTRUCTURING FINANCIALADVISORYSERVICES STRATEGICCONSULTING HL.com