PJT Partners Inc. Q4 FY2024 earnings call

• Record full-year 2024 results: revenues $1.49 billion (up 29% y-o-y), adjusted pre-tax income $278 million (up 52% y-o-y), adjusted EPS $5.02 per share (up 54% y-o-y).
• Substantial free cash flow enabled record $333 million in share repurchases and ended the year with a record cash balance of $547 million.
• Helen Meates discussed financial results, including adjusted compensation expense (full year 69%, fourth quarter 67.9%), adjusted non-compensation expense (up 12% full year, driven by higher occupancy, travel, and investment in tech), tax rate (20.6% full year, expected to be at or below in 2025), share count, balance sheet, and approved a $0.25 per share dividend.
• Paul Taubman discussed segment performance: restructuring as top in announced restructurings, PJT Park Hill with record revenues despite primary fundraising decline, Strategic Advisory with record results via market share gains, and strong recruiting efforts with 50% increase in partner count over 5 years.

For the full year 2024, total revenues were $1.493 billion, up 29% year-over-year. Adjusted pre-tax income was $278 million, up 52% year-over-year. Fourth quarter total revenues were $477 million, up 45% year-over-year. PJT Park Hill, restructuring, and strategic advisory all delivered record performance. PJT Park Hill had meaningful increases in capital raised and revenues realized despite global primary fundraising volumes declining. Restructuring was number one in announced restructurings globally and in the U.S. and delivered record results. Strategic Advisory also delivered record results with significant market share gains.

• Macro backdrop for primary fundraising to remain challenging in 2025.
• Private Capital Solutions business expected to continue secular growth.
• Restructuring expected to be an active year in 2025 with elevated activity and liability management.
• Strategic Advisory expecting higher levels of global M&A activity in 2025 as activity normalizes.

• Macro-economic conditions could impact performance.
• Interest rate fluctuations may affect corporates and sponsors.
• Regulatory changes could impact advisory and restructuring activities.
• Competitive landscape may pose challenges to market share gains.

Q: Hi, good morning, Paul. Good morning, Helen. How are you?

A: Very well. Good morning, Devin.

Q: I want to start with a question that touches on both the environment and productivity...

A: Well, you asked a question where I can give you some general guardrails...

Q: Hi, good morning, and thanks for taking my questions. Paul, I'd just like to touch on the economic growth dichotomy between the U.S. and Europe and the ramifications of that for M&A...

A: Well, I think clearly the U.S. economy is the envy of the world...

Q: Good morning and thanks for taking my questions. To start on the Advisory business, you had previously spoken about your expectation that 2024 would be more of a transition year for activity with a more significant acceleration in 2025...

A: Well, first of all, I'm optimistic about our business and I've always said we're a micro story more than we are a macro story...

Q: Great. Good morning, everyone. Thanks for taking my questions. Maybe just a follow-up on Brendan's question, but more on the kind of backlog of activity for restructuring...

A: I'd just say broadly consistent. I mean, we were quite active last year. We're quite active now...

Q: Great. Good morning, everyone. Thanks for taking my questions. Maybe just a follow-up on Brendan's question, but more on the kind of backlog of activity for restructuring...

A: I'd just say broadly consistent. I mean, we were quite active last year. We're quite active now...