Century City-based Houlihan Lokey reported a slight drop in fiscal second-quarter earnings despite a relatively strong overall performance for the first six months of 2019.
The investment bank reported revenue of $273 million for the quarter ended Sept. 30 compared with $275 million over the same period a year earlier. Net income was $33 million, or 50 cents per diluted share, down from $40 million the year prior.
Despite the second-quarter slowdown, Houlihan Lokey posted a record $523 million in revenue for the first six months of 2019, a 6% gain year over year.
Houlihan Lokey said lower revenue in its financial restructuring business as well as increased noncompensation expenses pulled down an otherwise strong quarter.
While the company’s corporate finance and financial advisory businesses were up 7% and 9% year over year, respectively, financial restructuring revenue dropped 17% to $77 million from $93 million in the same period in 2019.
The company attributed lower revenue in its restructuring division to an “exceptionally strong” second-quarter performance in same period in 2018 as well a “lumpiness” of its restructuring business due to the timing of large-fee events.
Higher noncompensation expenses, $53 million versus $43 million the year prior, were attributed to the company’s move to a new London office, which is now the company’s largest outside of U.S.
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- Houlihan Announces Strong Second Quarter Earnings
- Houlihan Reports Earnings of $0.51 a Share
- Houlihan Cuts Jobs Amid Slowdown in Dealmaking
- L.A. Real Estate Companies Post Solid Quarterly Earnings
- Image Entertainment Narrows Loss
- East West Posts Record 2019 Revenue
- SCOTT BEISER
- ADS---L.A. Times' Advertising Slump May Have Bottomed