Moelis & Company · NYSE:MC
Moelis & — Q1 2020 Earnings Presentation
18 slides from Moelis &'s earnings presentation, Apr 22, 2020
Slide 1: Moelis & Company April 2020
MOELIS & COM PANY April 2020
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements, which reflect the Firm’s current views with respect to, among other things, its operations and financial performance. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,”
Slide 3: Premier Global Independent Investment Bank
Premier Global Independent Investment Bank Global footprint — 20 geographic locations in the Americas, Europe, the Middle East, Asia and Australia Trusted advisor — Focus on M&A, Restructuring, Capital Solutions, Capital Markets and Private Funds Advisory — Expertise across all major industries
Slide 4: Moelis & Company Milestones
Moelis & Company Milestones Founded and Raised Growth Capital from Global Institutional Investors 2007 – 2008 Hired Restructuring Team Established European Business 2009 – 2010 Formed Joint Venture in Australia Japan Alliance with SMBC/SMBC Nikko & $93 Million Investment Entered Hong Kon
Slide 5: Our Business: Relationships, Judgment and Experience
Our Business: Relationships, Judgment and Experience Global footprint to serve client needs with approximately 875 bankers ¹ Amsterdam, NL London, UK Frankfurt, DE Chicago, US Boston, US Paris, FR San Francisco, US New York, US Beijing, CN Washington, DC, US Japan Los Angeles, US Strategic Alliance
Slide 6: Recent Transactions with Marquee Clients
Recent Transactions with Marquee Clients $500bn $29.4bn $21.7bn Advisors to select $85.1bn $48bn Exchange of Cash and Class (Incl. Greenshoe) non-litigating pref. Acquisition of Twenty-First CBS and Viacom C Common Stock for Class stockholders Century Fox, Inc. All-Stock Merger Initial Public Offeri
Slide 7: Fully Integrated Advisory Platform
Fully Integrated Advisory Platform Consumer & Retail Mergers & Acquisitions Energy, Power & Recapitalization & Infrastructure Restructuring Financial Institutions Capital Structure Advisory Financial Sponsors Capital Markets Product Industry General Industrials Financial Institut
Slide 8: Compelling Investment Opportunity
Compelling Investment Opportunity Differentiated model — Strong partnership culture — One-Firm philosophy with one global P&L — Focus on internal development Strong, asset light balance sheet with no debt and no goodwill Durable model with premier restructuring and m&a franchises Longer term
Slide 9: Differentiated Model
Differentiated Model Global partnership approach One firm P&L (non commission-based compensation) Global Collaboration Optimal structure for client advice and talent development Ability to quickly pivot resources to new business opportunities related to the market uncertainty caused by COVID
Slide 10: Fortress Balance Sheet and Disciplined Capital Management
Fortress Balance Sheet and Disciplined Capital Management Strong financial position — Cash and liquid investments of $145 million 1 — Undrawn revolver — No debt — No goodwill — Virtually no cash compensation obligations arising from prior years Minimal capital requirements Commitment to return
Slide 11: Leader in Recapitalization & Restructuring Advisory
Leader in Recapitalization & Restructuring Advisory 2019 GLOBAL COMPLETED KEY HIGHLIGHTS RESTRUCTURINGS 1 Advised on over $1 trillion of restructuring NO. VALUE transactions across more than 400 assignments RANK ADVISOR DEALS ($MM) since 2008 1 Moelis 36 $93,015 Approximately 60% of Company-side
Slide 12: Strong Record of Organic Growth
Strong Record of Organic Growth MOELIS & COMPANY REVENUES ($MM) $886 $747 $762 $685 $613 $552 $519 $386 $411 $268 Market 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM Q1 Metrics 2020 M&A Y-o-Y Change 1 13.7% (3.0%) (4.0%) 11.9% (4.5%) (6.9%) (1.2%) (3.4%) (8.0%) (23.3%) Default Rates 2 1.9% 2.6%
Slide 13: Long-Term Growth Drivers
Long-Term Growth Drivers Leading Restructuring Premier M&A Franchise Differentiated Model Business Strong dialogue levels but Tremendous increase in Maturation of MDs: ~ 25% of currently experiencing a mandates since the middle of MDs have been MDs at the firm hiatus in M&A due to March for th
Slide 14: Appendix
Appendix
Slide 15: Reconciliation of GAAP to Adjusted (non-GAAP) Financials
Reconciliation of GAAP to Adjusted (non-GAAP) Financials Three Months Ended March 31, 2020 Adjusted ($ in thousands) U.S. GAAP Adjustments (non-GAAP) Revenues $153,706 - $153,706 Expenses Compensation and Benefits $95,120 $(95)¹ $95,025 Non Compensation Expenses $34,144 - $34,144 Total Operating Exp
Slide 16: Quarterly Revenue Summary
Quarterly Revenue Summary QUARTERLY REVENUE (Q1 2013 – Q1 2020) ($MM) $238 $232 $224 $219 $220 $205 $208 $175 $173 $172 $170 $169 $154 $152 $151 $154 $154 $144 $138 $132 $129 $132 $126 $126 $115 $99 $99 $99 $60 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 20
Slide 17: Share Count Breakdown
Share Count Breakdown For the Three Months ended March 31, 2020 (shares in millions) 80.0 4.4 70.1 70.0 10.4 2.6 60.0 52.7 50.0 40.0 30.0 20.0 Basic Class A Class A Partnership Class A Partnership Unvested RSUs and Diluted Class A Common Shares 1 Units Held by EOs & Units Held by Pre-IPO Options 4 S
Slide 18: Historical Deal Distribution by Transaction Size
Historical Deal Distribution by Transaction Size 100% 5% 7% 7% 11% 10% 15% 16% 80% 27% 24% % of Total Deal Count 29% 33% 28% 23% 60% 20% 23% 16% 18% 21% 40% 56% 49% 20% 43% 41% 41% 36% 0% Moelis Evercore Greenhill Houlihan Lazard PJT $100mm - $500mm $500mm - $1.0bn $1.0bn - $5.0bn > $5.0bn Source: D