- Financial Advisory reports record first-half adjusted net
revenue of $855 million
- Asset Management reports quarter-end AUM of $245
billion
- Investing in talent firm-wide to support long-term growth
strategy
Lazard, Inc. (NYSE: LAZ) today reported both net revenue and
adjusted net revenue1 of $685 million for the quarter ended June
30, 2024, and net revenue of $1,450 million and adjusted net
revenue1 of $1,431 million for the first half of 2024.
On a U.S. GAAP basis, second-quarter and first-half 2024 net
income were $50 million or $0.49 per share, diluted, and $86
million or $0.84 per share, diluted, respectively. Adjusted net
income1 was $53 million or $0.52 per share, diluted, for the second
quarter of 2024, and $119 million or $1.17 per share, diluted, for
the first half of 2024.
"Lazard’s record revenue in Financial Advisory for the
first-half of 2024 demonstrates the ongoing, successful execution
of our long-term growth strategy,” said Peter R. Orszag, Chief
Executive Officer, Lazard. “Our Asset Management business continues
to produce solid results as we effectively serve clients while
evolving to meet their investment priorities. Overall, our
performance reflects an unwavering focus on delivering excellence
in advisory and investment solutions for our clients, our renewed
ambition for growth, and our increasingly commercial and collegial
culture.”
(Selected results, $ in millions,
Three Months Ended
Six Months Ended
except per share data and AUM)
June 30,
June 30,
U.S. GAAP
Financial Measures
2024
2023
%'24-'23
2024
2023
% '24-'23
Net Revenue
$685
$643
7%
$1,450
$1,186
22%
Financial Advisory
$411
$352
17%
$865
$630
37%
Asset Management
$285
$288
(1)%
$581
$572
2%
Net Income (Loss)
$50
($124
)
NM
$86
($146
)
NM
Per share, diluted
$0.49
($1.41
)
NM
$0.84
($1.68
)
NM
Adjusted
Financial Measures1
Net Revenue
$685
$620
10%
$1,431
$1,147
25%
Financial Advisory
$408
$344
19%
$855
$618
38%
Asset Management
$265
$267
(1)%
$541
$532
2%
Net Income
$53
$23
133%
$119
$–
NM
Per share, diluted
$0.52
$0.24
117%
$1.17
$–
NM
Assets Under
Management ("AUM")
($ in billions)
Ending AUM
$245
$239
2%
Average AUM
$245
$235
4%
$246
$231
6%
Note: Endnotes are on page 5 of this
release. Reconciliations of U.S. GAAP to Adjusted results are shown
on pages 13-15.
NET REVENUE
Financial Advisory
Financial Advisory net revenue and adjusted net revenue1 were
$411 million and $408 million for the second quarter of 2024, 17%
and 19% higher than the second quarter of 2023, respectively.
Financial Advisory net revenue and adjusted net revenue1 were
$865 million and $855 million for the first half of 2024, 37% and
38% higher than the first half of 2023, respectively.
During and since the second quarter of 2024, Lazard has been
engaged in significant and complex M&A transactions globally,
including the following (clients are in italics): WestRock's $33.5
billion combination with Smurfit Kappa; Renault’s creation of HORSE
Powertrain Limited with Geely and the sale of a 10% equity interest
to Saudi Aramco, valuing the new company at €7.4 billion; Rivian’s
$5 billion strategic investment from Volkswagen Group; Vertex
Pharmaceuticals' $4.9 billion acquisition of Alpine Immune
Sciences; Synlab's $4.3 billion acquisition by Cinven; KPS Capital
Partners’ €3.5 acquisition of Innomotics from Siemens AG; Roquette
Freres’ $2.9 billion agreement to acquire IFF Pharma Solutions;
Neiman Marcus Group’s $2.7 billion sale to HBC, parent of Saks
Fifth Avenue; Sanofi's $2.4 billion acquisition of Inhibrx; HASI's
$2 billion strategic partnership with KKR to invest in sustainable
infrastructure projects; Elecnor Group’s sale of its Spanish based
renewables business Enerfin to Statkraft for €1.8 billion; Air
Products & Chemicals' $1.8 billion sale of its LNG business to
Honeywell International Inc.; Thales’ sale of its Ground
Transportation Systems business to Hitachi Rail, for an enterprise
value of €1.7 billion; Bpost’s $1.3 billion acquisition of Staci;
CVC Capital Partners' €600 million acquisition of La Piadineria;
Ultra Maritime's $550 million sale of its Signature Management
& Power Business to ESCO Technologies, Inc.; EIG and West
Burton Energy’s £450 million sale of is operational CCGT and BESS
to TotalEnergies; Allen & Overy LLP's combination with Shearman
& Sterling and CVC Capital Partners’ investment in Hempel.
Lazard's preeminent restructuring and liability management
practice has been engaged in a broad range of complex restructuring
and debt advisory assignments, including company roles involving
Belk, Enviva and LivePerson and creditor and/or related party roles
involving Endo Pharmaceuticals, Hilding Anders, JOANN, KLDiscovery,
Rite Aid and SVB Financial Group.
Our capital advisory and solutions practices remain active and
engaged in assignments, including Ceva Sante Animale’s €2.4 billion
Term Loan B repricing and resizing; CVC Capital Partners on a
single asset continuation fund; Eir Partners’ closing of $496
million Investment Program II; Exosens’ initial public offer on
Euronext Paris valuing the company at $1.1 billion; Kingswood
Capital's closing of $1.5 billion Kingswood Capital Opportunities
Fund III; Morrisons, a portfolio company of CD&R, on its £1.1
billion debt reduction exercise; and UL Standards & Engagement
on the IPO of UL Solutions. Our sovereign advisory practice
continues to be active in advising governments and sovereign
entities across developed and emerging markets.
For a list of publicly announced transactions please visit our
website.
Asset Management
For the second quarter of 2024, Asset Management net revenue and
adjusted net revenue1 were $285 million and $265 million,
respectively, both 1% lower than the second quarter of 2023.
Management fees and other revenue, on an adjusted basis1, were
$263 million for the second quarter of 2024, 1% higher and 2% lower
than the second quarter of 2023 and first quarter of 2024,
respectively.
Incentive fees, on an adjusted basis1, were $3 million for the
second quarter of 2024, compared to $6 million for the second
quarter of 2023.
Average assets under management (AUM) were $245 billion for the
second quarter of 2024, 4% higher than the second quarter of 2023,
and 1% lower than the first quarter of 2024, respectively.
For the first half of 2024, Asset Management net revenue and
adjusted net revenue1 were $581 million and $541 million,
respectively, both 2% higher than the first half of 2023.
Management fees and other revenue, on an adjusted basis1, were
$531 million for the first half of 2024, 2% higher than the first
half of 2023.
Incentive fees, on an adjusted basis1, were $10 million for the
first half of 2024, compared to $11 million for the first half of
2023.
Average AUM for the first half of 2024 was $246 billion, 6%
higher than the first half of 2023. AUM as of June 30, 2024, was
$245 billion, 2% lower than March 31, 2024, and 2% higher than June
30, 2023, respectively. The sequential change from March 31, 2024
was driven by market appreciation of $2.5 billion, foreign exchange
depreciation of $1.7 billion and net outflows of $6.6 billion.
OPERATING EXPENSES
Compensation and Benefits
Expense
For the second quarter of 2024, compensation and benefits
expense on a U.S. GAAP and adjusted basis1 were $453 million and
$452 million, respectively, compared to $572 million and $424
million, respectively, for the second quarter of 2023. The adjusted
compensation ratio2 for the second quarter of 2024 was 66.0%,
compared to the second-quarter 2023 ratio of 68.4%.
For the first half of 2024, compensation and benefits expense on
a U.S. GAAP and adjusted basis1 were $1,003 million and $945
million, respectively, compared to $1,022 million and $823 million,
respectively, for the first half of 2023.
We focus on the adjusted compensation ratio to manage costs,
balancing a view of current conditions in the market for talent
alongside our objective to drive long-term shareholder value. Our
goal remains to deliver an adjusted compensation ratio over the
cycle in the mid- to high-50s percentage range, while targeting a
consistent deferral policy.
Non-Compensation
Expenses
For the second quarter of 2024, non-compensation expenses on a
U.S. GAAP basis were $169 million, 7% lower than the second quarter
of 2023 which included charges associated with our cost-saving
initiatives. On an adjusted basis1, non-compensation expenses were
$149 million, 3% higher than the second quarter of 2023, primarily
reflecting higher professional services and technology
spending.
The adjusted non-compensation ratio3 was 21.7% for the second
quarter of 2024, compared to 23.2% for the second quarter of
2023.
For the first half of 2024, non-compensation expenses on a U.S.
GAAP and adjusted basis1 were $329 million and $283 million,
respectively, 6% and 1% lower than the first half of 2023,
respectively.
The adjusted non-compensation ratio3 was 19.8% for the first
half of 2024, compared to 24.9% for the first half of 2023.
Our goal remains to deliver an adjusted non-compensation ratio
between 16% to 20% over the cycle.
TAXES
The provisions for income taxes, on a U.S. GAAP and adjusted
basis1 were $12 million and $9 million, respectively, for the
second quarter of 2024. The effective tax rate on an adjusted
basis1 was 14.0% for the second quarter of 2024, compared to 31.2%
for the second quarter of 2023.
The provisions for income taxes, on a U.S. GAAP and adjusted
basis1 were $26 million and $41 million, respectively, for the
first half of 2024. The effective tax rate on an adjusted basis1
was 25.5% for the first half of 2024, compared to 67.8% for the
first half of 2023.
CAPITAL MANAGEMENT AND BALANCE SHEET
In the second quarter of 2024, Lazard returned $70 million to
shareholders, which included: $45 million in dividends; $19 million
in share repurchases of our common stock; and $6 million in
satisfaction of employee tax obligations in lieu of share issuances
upon vesting of equity grants.
In the first half of 2024, Lazard returned $192 million to
shareholders, which included: $89 million in dividends; $41 million
in share repurchases of our common stock; and $62 million in
satisfaction of employee tax obligations in lieu of share issuances
upon vesting of equity grants.
During the first half of 2024, we repurchased 1.1 million shares
at an average price of $38.66. On July 24, 2024, our Board of
Directors authorized additional share repurchase of $200 million,
which expires as of December 31, 2026, bringing our total
outstanding share repurchase authorization to approximately $360
million.
On July 24, 2024, Lazard declared a quarterly dividend of $0.50
per share on its outstanding common stock. The dividend is payable
on August 16, 2024, to stockholders of record on August 5,
2024.
Lazard’s financial position remains strong. As of June 30, 2024,
our cash and cash equivalents were $848 million.
ENDNOTES
Beginning in the first quarter of 2024, Lazard has updated the
names of certain non-U.S. GAAP ("non-GAAP") measures and metrics.
The nomenclature change did not result in any change to the
components of our non-GAAP measures and metrics compared to prior
periods. Reconciliations of U.S. GAAP to Adjusted results are shown
on pages 13-15.
1
A non-GAAP measure. Our non-GAAP
measures are not meant to be considered in isolation or as a
substitute for the corresponding U.S. GAAP measures and should be
read only in conjunction with our consolidated financial statements
prepared in accordance with U.S. GAAP. See attached financial
schedules and related notes for a detailed explanation of
adjustments to corresponding U.S. GAAP results. We believe that
presenting our results on an adjusted basis, in addition to the
U.S. GAAP results, is a meaningful and useful way to compare our
operating results across periods.
2
A non-GAAP measure which
represents adjusted compensation and benefits expense as a
percentage of adjusted net revenue.
3
A non-GAAP measure which
represents adjusted non-compensation expenses as a percentage of
adjusted net revenue.
CONFERENCE CALL
Lazard will host a conference call at 8:00 a.m. ET on July 25,
2024, to discuss the company’s financial results for the second
quarter and first-half of 2024. The conference call can be accessed
via a live audio webcast available through Lazard’s Investor
Relations website at www.lazard.com, or by dialing 1 800-343-4136
(toll-free, U.S. and Canada) or +1 203-518-9843 (outside of the
U.S. and Canada), 15 minutes prior to the start of the call.
Conference ID: LAZQ224.
A replay of the conference call will be available by 10:00 a.m.
ET, July 25, 2024, via the Lazard Investor Relations website at
www.lazard.com, or by dialing +1 800-839-5637 (toll-free, U.S. and
Canada) or +1 402-220-2562 (outside of the U.S. and Canada).
ABOUT LAZARD
Founded in 1848, Lazard is one of the world's preeminent
financial advisory and asset management firms, with operations in
North and South America, Europe, the Middle East, Asia, and
Australia. Lazard provides advice on mergers and acquisitions,
capital markets and capital solutions, restructuring and liability
management, geopolitics, and other strategic matters, as well as
asset management and investment solutions to institutions,
corporations, governments, partnerships, family offices, and high
net worth individuals. For more information, please visit
www.lazard.com.
Cautionary Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements. In some
cases, you can identify these statements by forward-looking words
such as “may,” “might,” “will,” “should,” “could,” “would,”
“expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,”
“potential,” “target,” “goal,” or “continue,” and the negative of
these terms and other comparable terminology. These forward-looking
statements, which are subject to known and unknown risks,
uncertainties and assumptions about us, may include projections of
our future financial performance based on our strategies, business
plans and initiatives and anticipated trends in our business. These
forward-looking statements are only predictions based on our
current expectations and projections about future events. There are
important factors that could cause our actual results, level of
activity, performance or achievements to differ materially from the
results, level of activity, performance or achievements expressed
or implied by these forward-looking statements.
These factors include, but are not limited to, those discussed
in our Annual Report on Form 10-K under Item 1A “Risk Factors,” and
also discussed from time to time in our reports on Forms 10-Q and
8-K, including the following:
- Adverse general economic conditions or adverse conditions in
global or regional financial markets;
- A decline in our revenues, for example due to a decline in
overall mergers and acquisitions (M&A) activity, our share of
the M&A market or our assets under management (AUM);
- Losses caused by financial or other problems experienced by
third parties;
- Losses due to unidentified or unanticipated risks;
- A lack of liquidity, i.e., ready access to funds, for use in
our businesses; and
- Competitive pressure on our businesses and on our ability to
retain and attract employees at current compensation levels
- In the event of a change or adverse interpretation of relevant
income tax law, regulation or treaty, or a failure to qualify for
treaty benefits, or in the event tax authorities challenge our tax
computations or classifications.
Although we believe the statements reflected in the
forward-looking statements are reasonable, we cannot guarantee
future results, level of activity, performance, achievements or
events. Neither we nor any other person assumes responsibility for
the accuracy or completeness of any of these forward-looking
statements. You should not rely upon forward-looking statements as
predictions of future events. We are under no duty to update any of
these forward-looking statements after the date of this release to
conform our prior statements to actual results or revised
expectations and we do not intend to do so.
Lazard, Inc. is committed to providing timely and accurate
information to the investing public, consistent with our legal and
regulatory obligations. To that end, Lazard and its operating
companies use their websites, and other social media sites to
convey information about their businesses, including the
anticipated release of quarterly financial results, quarterly
financial, statistical and business-related information, and the
posting of updates of assets under management in various mutual
funds, hedge funds and other investment products managed by Lazard
Asset Management LLC and Lazard Frères Gestion SAS. Investors can
link to Lazard and its operating company websites through
www.lazard.com.
***
LAZ-EPE
CONDENSED CONSOLIDATED
STATEMENT OF OPERATIONS
(U.S. GAAP -
unaudited)
Three Months Ended
% Change From
June 30,
March 31,
June 30,
March 31,
June 30,
($ in thousands, except per share
data)
2024
2024
2023
2024
2023
Total revenue
$707,991
$785,481
$662,318
(10%)
7%
Interest expense
(22,642
)
(20,728
)
(19,204
)
Net revenue
685,349
764,753
643,114
(10%)
7%
Operating expenses:
Compensation and benefits
452,560
550,824
572,231
(18%)
(21%)
Occupancy and equipment
32,031
32,857
32,800
Marketing and business development
25,493
23,599
28,582
Technology and information services
46,406
44,917
51,370
Professional services
23,734
19,880
21,402
Fund administration and outsourced
services
27,114
26,140
28,968
Amortization and other acquisition-related
costs
68
68
95
Other
14,303
11,907
17,739
Non-compensation expenses
169,149
159,368
180,956
6%
(7%)
Operating expenses
621,709
710,192
753,187
(12%)
(17%)
Operating income (loss)
63,640
54,561
(110,073
)
17%
NM
Provision for income taxes
11,587
14,337
10,303
(19%)
12%
Net income (loss)
52,053
40,224
(120,376
)
29%
NM
Net income attributable to noncontrolling
interests
2,144
4,469
3,637
Net income (loss) attributable to Lazard,
Inc.
$49,909
$35,755
($124,013
)
40%
NM
Attributable to Lazard, Inc. Common
Stockholders:
Weighted average shares
outstanding:
Basic
92,886,364
91,260,465
88,729,654
2%
5%
Diluted
100,627,867
99,351,769
88,729,654
1%
13%
Net income (loss) per share:
Basic
$0.53
$0.38
($1.41
)
39%
NM
Diluted
$0.49
$0.35
($1.41
)
40%
NM
Note: For the three month periods ended
June 30, 2024, March 31, 2024 and June 30, 2023, Financial Advisory
net revenue was $411,308, $453,507 and $352,477, respectively;
Asset Management net revenue was $285,487, $295,476 and $288,313,
respectively; Corporate net revenue (loss) was ($11,446), $15,770
and $2,324, respectively.
CONDENSED CONSOLIDATED
STATEMENT OF OPERATIONS
(U.S. GAAP -
unaudited)
Six Months Ended
June 30,
June 30,
($ in thousands, except per share
data)
2024
2023
% Change
Total revenue
$1,493,472
$1,224,229
22%
Interest expense
(43,370
)
(38,679
)
Net revenue
1,450,102
1,185,550
22%
Operating expenses:
Compensation and benefits
1,003,384
1,022,198
(2%)
Occupancy and equipment
64,888
64,573
Marketing and business development
49,092
51,344
Technology and information services
91,323
95,410
Professional services
43,614
45,728
Fund administration and outsourced
services
53,254
55,544
Amortization and other acquisition-related
costs
136
143
Other
26,210
38,042
Non-compensation expenses
328,517
350,784
(6%)
Benefit pursuant to tax receivable
agreement
–
(40,435
)
Operating expenses
1,331,901
1,332,547
–%
Operating income (loss)
118,201
(146,997
)
NM
Provision (benefit) for income taxes
25,924
(11,422
)
NM
Net income (loss)
92,277
(135,575
)
NM
Net income attributable to noncontrolling
interests
6,613
10,610
Net income (loss) attributable to Lazard,
Inc.
$85,664
($146,185
)
NM
Attributable to Lazard, Inc. Common
Stockholders:
Weighted average shares
outstanding:
Basic
92,073,414
88,160,753
4%
Diluted
99,989,817
88,160,753
13%
Net income (loss) per share:
Basic
$0.91
($1.68
)
NM
Diluted
$0.84
($1.68
)
NM
Note: For the six month periods ended June
30, 2024 and June 30, 2023, Financial Advisory net revenue was
$864,815 and $630,051, respectively; Asset Management net revenue
was $580,963 and $572,357, respectively; Corporate net revenue
(loss) was $4,324 and ($16,858), respectively.
CONDENSED CONSOLIDATED
STATEMENT OF FINANCIAL
CONDITION
(U.S. GAAP -
unaudited)
As of
June 30,
December 31,
($ in thousands)
2024
2023
ASSETS
Cash and cash equivalents
$847,555
$971,316
Deposits with banks and short-term
investments
203,809
219,576
Restricted cash
33,089
34,091
Receivables
725,488
762,319
Investments
687,507
701,964
Property
220,663
232,516
Operating lease right-of-use assets
451,707
407,213
Goodwill and other intangible assets
393,967
394,928
Deferred tax assets
507,572
497,340
Other assets
455,837
414,518
Total Assets
$4,527,194
$4,635,781
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS &
STOCKHOLDERS' EQUITY
Liabilities
Deposits and other customer payables
$382,115
$443,262
Accrued compensation and benefits
550,189
781,375
Operating lease liabilities
522,864
485,191
Tax receivable agreement obligation
84,137
115,087
Senior debt
1,852,149
1,690,200
Other liabilities
540,619
550,804
Total liabilities
3,932,073
4,065,919
Commitments and contingencies
Redeemable noncontrolling interests
80,931
87,675
Stockholders' equity
Preferred stock, par value $.01 per
share
–
–
Common stock, par value $.01 per share
1,128
1,128
Additional paid-in capital
218,455
247,204
Retained earnings
1,382,703
1,402,636
Accumulated other comprehensive loss, net
of tax
(306,293
)
(289,950
)
Subtotal
1,295,993
1,361,018
Class A common stock held by subsidiaries,
at cost
(837,338
)
(937,259
)
Total Lazard, Inc. stockholders'
equity
458,655
423,759
Noncontrolling interests
55,535
58,428
Total stockholders' equity
514,190
482,187
Total liabilities, redeemable
noncontrolling interests and stockholders' equity
$4,527,194
$4,635,781
Note: "Property" includes $70 million and
$73 million of property held for sale at June 30, 2024 and December
31, 2023, respectively.
SELECTED SUMMARY FINANCIAL
INFORMATION (a)
(Adjusted Basis - Non-GAAP -
unaudited)
Three Months Ended
% Change From
June 30,
March 31,
June 30,
March 31,
June 30,
($ in thousands, except per share
data)
2024
2024
2023
2024
2023
Net Revenue:
Financial Advisory
$407,936
$446,634
$344,167
(9%)
19%
Asset Management
265,219
275,934
267,058
(4%)
(1%)
Corporate
11,487
23,997
8,801
(52%)
31%
Adjusted net revenue
$684,642
$746,565
$620,026
(8%)
10%
Expenses:
Adjusted compensation and benefits
expense
$451,864
$492,733
$424,097
(8%)
7%
Adjusted compensation ratio (b)
66.0
%
66.0
%
68.4
%
Adjusted non-compensation expenses
$148,612
$134,293
$143,677
11%
3%
Adjusted non-compensation ratio (c)
21.7
%
18.0
%
23.2
%
Earnings:
Adjusted operating income
$84,166
$119,539
$52,252
(30%)
61%
Adjusted operating margin (d)
12.3
%
16.0
%
8.4
%
Adjusted net income
$52,869
$66,606
$22,692
(21%)
133%
Adjusted diluted net income per share
$0.52
$0.66
$0.24
(21%)
117%
Adjusted diluted weighted average shares
(e)
102,188,981
101,532,219
95,620,902
1%
7%
Adjusted effective tax rate (f)
14.0
%
32.6
%
31.2
%
This presentation includes
non-GAAP measures. Our non-GAAP measures are not meant to be
considered in isolation or as a substitute for the corresponding
U.S. GAAP measures and should be read only in conjunction with our
consolidated financial statements prepared in accordance with U.S.
GAAP. For a detailed explanation of the adjustments made to the
corresponding U.S. GAAP measures, see Reconciliation of U.S. GAAP
to Selected Summary Financial Information and Notes to Financial
Schedules.
See Notes to Financial
Schedules
SELECTED SUMMARY FINANCIAL
INFORMATION (a)
(Adjusted Basis - Non-GAAP -
unaudited)
Six Months Ended
June 30,
June 30,
($ in thousands, except per share
data)
2024
2023
% Change
Net Revenue:
Financial Advisory
$854,570
$618,028
38%
Asset Management
541,153
531,703
2%
Corporate
35,484
(2,687
)
NM
Adjusted net revenue
$1,431,207
$1,147,044
25%
Expenses:
Adjusted compensation and benefits
expense
$944,597
$823,187
15%
Adjusted compensation ratio (b)
66.0
%
71.8
%
Adjusted non-compensation expenses
$282,905
$285,935
(1%)
Adjusted non-compensation ratio (c)
19.8
%
24.9
%
Earnings:
Adjusted operating income
$203,705
$37,922
NM
Adjusted operating margin (d)
14.2
%
3.3
%
Adjusted net income (loss)
$119,475
($256
)
NM
Adjusted diluted net income per share
$1.17
$–
NM
Adjusted diluted weighted average shares
(e)
101,860,599
88,160,753
NM
Adjusted effective tax rate (f)
25.5
%
67.8
%
This presentation includes
non-GAAP measures. Our non-GAAP measures are not meant to be
considered in isolation or as a substitute for the corresponding
U.S. GAAP measures and should be read only in conjunction with our
consolidated financial statements prepared in accordance with U.S.
GAAP. For a detailed explanation of the adjustments made to the
corresponding U.S. GAAP measures, see Reconciliation of U.S. GAAP
to Selected Summary Financial Information and Notes to Financial
Schedules.
See Notes to Financial
Schedules
ASSETS UNDER
MANAGEMENT
(unaudited)
As of
% Change From
June 30,
March 31,
December 31,
March 31,
December 31,
($ in millions)
2024
2024
2023
2024
2023
Equity:
Emerging Markets
$27,044
$24,779
$25,288
9.1
%
6.9
%
Global
54,026
55,544
53,528
(2.7
%)
0.9
%
Local
52,738
54,841
52,208
(3.8
%)
1.0
%
Multi-Regional
56,618
60,089
59,114
(5.8
%)
(4.2
%)
Total Equity
190,426
195,253
190,138
(2.5
%)
0.2
%
Fixed Income:
Emerging Markets
9,250
9,080
9,525
1.9
%
(2.9
%)
Global
11,167
10,664
10,762
4.7
%
3.8
%
Local
5,729
6,378
6,080
(10.2
%)
(5.8
%)
Multi-Regional
19,965
21,098
21,740
(5.4
%)
(8.2
%)
Total Fixed Income
46,111
47,220
48,107
(2.3
%)
(4.1
%)
Alternative Investments
2,897
3,201
3,330
(9.5
%)
(13.0
%)
Private Wealth Alternative Investments
3,033
2,643
2,799
14.8
%
8.4
%
Private Equity
1,501
1,486
1,623
1.0
%
(7.5
%)
Cash Management
702
629
654
11.6
%
7.3
%
Total AUM
$244,670
$250,432
$246,651
(2.3
%)
(0.8
%)
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
June 30,
2024
2024
2023
2024
2023
AUM - Beginning of Period
$250,432
$246,651
$232,140
$246,651
$216,125
Net Flows
(6,599
)
(6,630
)
(997
)
(13,229
)
2,002
Market and foreign exchange
appreciation
837
10,411
8,197
11,248
21,213
AUM - End of Period
$244,670
$250,432
$239,340
$244,670
$239,340
Average AUM
$245,302
$246,950
$235,352
$246,126
$231,110
% Change in Average AUM
(0.7
%)
4.2
%
6.5
%
Note: Average AUM generally represents the
average of the monthly ending AUM balances for the period.
RECONCILIATION OF U.S. GAAP TO
ADJUSTED RESULTS (a)
(unaudited)
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
June 30,
($ in thousands)
2024
2024
2023
2024
2023
Net Revenue
Financial Advisory net revenue - U.S. GAAP
Basis
$411,308
$453,507
$352,477
$864,815
$630,051
Adjustments:
Reimbursable deal costs, provision for
credit losses and other (g)
(3,372
)
(7,501
)
(8,310
)
(10,873
)
(12,091
)
Interest expense (h)
–
41
–
41
68
Losses associated with cost-saving
initiatives (i)
–
587
–
587
–
Adjusted Financial Advisory net
revenue
$407,936
$446,634
$344,167
$854,570
$618,028
Asset Management net revenue - U.S. GAAP
Basis
$285,487
$295,476
$288,313
$580,963
$572,357
Adjustments:
Revenue related to noncontrolling
interests (j)
(4,054
)
(4,097
)
(3,227
)
(8,151
)
(7,229
)
Distribution fees and other (g)
(16,216
)
(15,448
)
(18,028
)
(31,664
)
(33,428
)
Interest expense (h)
2
3
–
5
3
Adjusted Asset Management net revenue
$265,219
$275,934
$267,058
$541,153
$531,703
Corporate net revenue (loss) - U.S. GAAP
Basis
($11,446
)
$15,770
$2,324
$4,324
($16,858
)
Adjustments:
Revenue related to noncontrolling
interests (j)
(866
)
(3,006
)
(3,010
)
(3,872
)
(9,831
)
(Gains) losses related to Lazard Fund
Interests ("LFI") and other similar arrangements (k)
1,201
(9,373
)
(9,675
)
(8,172
)
(26,128
)
Provision for credit losses (g)
–
–
–
–
(7,500
)
Interest expense (h)
22,598
20,606
19,162
43,204
38,501
Asset impairment charges
–
–
–
–
19,129
Adjusted Corporate net revenue (loss)
$11,487
$23,997
$8,801
$35,484
($2,687
)
Net revenue - U.S. GAAP Basis
$685,349
$764,753
$643,114
$1,450,102
$1,185,550
Adjustments:
Revenue related to noncontrolling
interests (j)
(4,920
)
(7,103
)
(6,237
)
(12,023
)
(17,060
)
(Gains) losses related to Lazard Fund
Interests ("LFI") and other similar arrangements (k)
1,201
(9,373
)
(9,675
)
(8,172
)
(26,128
)
Distribution fees, reimbursable deal
costs, provision for credit losses and other (g)
(19,588
)
(22,949
)
(26,338
)
(42,537
)
(53,019
)
Interest expense (h)
22,600
20,650
19,162
43,250
38,572
Asset impairment charges
–
–
–
–
19,129
Losses associated with cost-saving
initiatives (i)
–
587
–
587
–
Adjusted net revenue
$684,642
$746,565
$620,026
$1,431,207
$1,147,044
This presentation includes
non-GAAP measures. Our non-GAAP measures are not meant to be
considered in isolation or as a substitute for the corresponding
U.S. GAAP measures and should be read only in conjunction with our
consolidated financial statements prepared in accordance with U.S.
GAAP. For a detailed explanation of the adjustments made to the
corresponding U.S. GAAP measures, see Notes to Financial
Schedules.
See Notes to Financial
Schedules
RECONCILIATION OF U.S. GAAP TO
ADJUSTED RESULTS (a)
(unaudited)
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
June 30,
($ in thousands, except per share
data)
2024
2024
2023
2024
2023
Compensation and Benefits
Expense
Compensation and benefits expense - U.S.
GAAP Basis
$452,560
$550,824
$572,231
$1,003,384
$1,022,198
Adjustments:
Compensation and benefits expense related
to noncontrolling interests (j)
(1,897
)
(2,108
)
(1,851
)
(4,005
)
(4,861
)
(Charges) credits pertaining to LFI and
other similar arrangements (l)
1,201
(9,373
)
(9,675
)
(8,172
)
(26,128
)
Expenses associated with cost-saving
initiatives
–
(46,610
)
(136,608
)
(46,610
)
(157,348
)
Expenses associated with senior management
transition (m)
–
–
–
–
(10,674
)
Adjusted compensation and benefits
expense
$451,864
$492,733
$424,097
$944,597
$823,187
Non-Compensation
Expenses
Non-compensation expenses - U.S. GAAP
Basis
$169,149
$159,368
$180,956
$328,517
$350,784
Adjustments:
Non-compensation expenses related to
noncontrolling interests (j)
(881
)
(526
)
(749
)
(1,407
)
(1,590
)
Distribution fees, reimbursable deal
costs, provision for credit losses and other (g)
(19,588
)
(22,949
)
(26,338
)
(42,537
)
(53,019
)
Amortization and other acquisition-related
costs
(68
)
(68
)
(95
)
(136
)
(143
)
Expenses associated with cost-saving
initiatives
–
(1,532
)
(10,097
)
(1,532
)
(10,097
)
Adjusted non-compensation expenses
$148,612
$134,293
$143,677
$282,905
$285,935
Operating Income
(Loss)
Operating income (loss) - U.S. GAAP
Basis
$63,640
$54,561
($110,073
)
$118,201
($146,997
)
Adjustments:
Operating income related to noncontrolling
interests (j)
(2,142
)
(4,469
)
(3,637
)
(6,611
)
(10,610
)
Interest expense (h)
22,600
20,650
19,162
43,250
38,572
Amortization and other acquisition-related
costs
68
68
95
136
144
Asset impairment charges
–
–
–
–
19,129
Losses associated with cost-saving
initiatives (i)
–
587
–
587
–
Expenses associated with cost-saving
initiatives
–
48,142
146,705
48,142
167,445
Expenses associated with senior management
transition (m)
–
–
–
–
10,674
Benefit pursuant to tax receivable
agreement obligation ("TRA") (n)
–
–
–
–
(40,435
)
Adjusted operating income
$84,166
$119,539
$52,252
$203,705
$37,922
Provision (Benefit) for Income
Taxes
Provision (benefit) for income taxes -
U.S. GAAP Basis
$11,587
$14,337
$10,303
$25,924
($11,422
)
Adjustment:
Tax effect of adjustments
(2,960
)
17,878
–
14,918
10,884
Adjusted provision (benefit) for income
taxes
$8,627
$32,215
$10,303
$40,842
($538
)
Net Income (Loss) attributable
to Lazard, Inc.
Net income (loss) attributable to Lazard,
Inc. - U.S. GAAP Basis
$49,909
$35,755
($124,013
)
$85,664
($146,185
)
Adjustments:
Asset impairment charges
–
–
–
–
19,129
Losses associated with cost-saving
initiatives (i)
–
587
–
587
–
Expenses associated with cost-saving
initiatives
–
48,142
146,705
48,142
167,445
Expenses associated with senior management
transition (m)
–
–
–
–
10,674
Benefit pursuant to tax receivable
agreement obligation ("TRA") (n)
–
–
–
–
(40,435
)
Tax effect of adjustments
2,960
(17,878
)
–
(14,918
)
(10,884
)
Adjusted net income (loss)
$52,869
$66,606
$22,692
$119,475
($256
)
Diluted Weighted Average
Shares Outstanding
Diluted Weighted Average Shares
Outstanding - U.S. GAAP Basis
100,627,867
99,351,769
88,729,654
99,989,817
88,160,753
Adjustment: participating securities
including profits interest participation rights and other
1,561,114
2,180,450
6,891,248
1,870,782
–
Adjusted Diluted Weighted Average Shares
Outstanding (e)
102,188,981
101,532,219
95,620,902
101,860,599
88,160,753
Diluted net income (loss) per
share:
U.S. GAAP Basis
$0.49
$0.35
($1.41
)
$0.84
($1.68
)
Diluted net income (loss) effect of
adjustments
0.03
0.31
1.65
0.33
1.68
Adjusted Basis
$0.52
$0.66
$0.24
$1.17
$–
This presentation includes
non-GAAP measures. Our non-GAAP measures are not meant to be
considered in isolation or as a substitute for the corresponding
U.S. GAAP measures and should be read only in conjunction with our
consolidated financial statements prepared in accordance with U.S.
GAAP. For a detailed explanation of the adjustments made to the
corresponding U.S. GAAP measures, see Notes to Financial
Schedules.
See Notes to Financial
Schedules
RECONCILIATION OF
NON-COMPENSATION EXPENSES U.S. GAAP TO ADJUSTED (a)
(unaudited)
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
June 30,
($ in thousands)
2024
2024
2023
2024
2023
Non-compensation expenses - U.S. GAAP
Basis:
Occupancy and equipment
$32,031
$32,857
$32,800
$64,888
$64,573
Marketing and business development
25,493
23,599
28,582
49,092
51,344
Technology and information services
46,406
44,917
51,370
91,323
95,410
Professional services
23,734
19,880
21,402
43,614
45,728
Fund administration and outsourced
services
27,114
26,140
28,968
53,254
55,544
Amortization and other acquisition-related
costs
68
68
95
136
143
Other
14,303
11,907
17,739
26,210
38,042
Non-compensation expenses - U.S. GAAP
Basis
$169,149
$159,368
$180,956
$328,517
$350,784
Non-compensation expenses -
Adjustments:
Occupancy and equipment (j)
($95
)
($1,573
)
($878
)
($1,668
)
($939
)
Marketing and business development (g)
(j)
(2,944
)
(2,079
)
(5,164
)
(5,023
)
(7,892
)
Technology and information services (g)
(j)
(49
)
(35
)
(7,436
)
(84
)
(7,509
)
Professional services (g) (j)
(1,085
)
(873
)
(1,989
)
(1,958
)
(3,391
)
Fund administration and outsourced
services (g) (j)
(15,588
)
(15,035
)
(17,282
)
(30,623
)
(32,261
)
Amortization and other acquisition-related
costs
(68
)
(68
)
(95
)
(136
)
(143
)
Other (g) (j)
(708
)
(5,412
)
(4,435
)
(6,120
)
(12,714
)
Subtotal non-compensation expenses
adjustments
($20,537
)
($25,075
)
($37,279
)
($45,612
)
($64,849
)
Adjusted non-compensation expenses:
Occupancy and equipment
$31,936
$31,284
$31,922
$63,220
$63,634
Marketing and business development
22,549
21,520
23,418
44,069
43,452
Technology and information services
46,357
44,882
43,934
91,239
87,901
Professional services
22,649
19,007
19,413
41,656
42,337
Fund administration and outsourced
services
11,526
11,105
11,686
22,631
23,283
Amortization and other acquisition-related
costs
–
–
–
–
–
Other
13,595
6,495
13,304
20,090
25,328
Adjusted non-compensation expenses
$148,612
$134,293
$143,677
$282,905
$285,935
This presentation includes
non-GAAP measures. Our non-GAAP measures are not meant to be
considered in isolation or as a substitute for the corresponding
U.S. GAAP measures and should be read only in conjunction with our
consolidated financial statements prepared in accordance with U.S.
GAAP. For a detailed explanation of the adjustments made to the
corresponding U.S. GAAP measures, see Notes to Financial
Schedules.
See Notes to Financial
Schedules
LAZARD, Inc.
Notes to Financial
Schedules
(a)
Selected Summary Financial
Information are non-GAAP measures. Lazard believes that presenting
results and measures on an adjusted basis in conjunction with U.S.
GAAP measures provides a meaningful and useful basis for comparison
of its operating results across periods.
Beginning in the first quarter of
2024, Lazard has updated the names of certain non-GAAP measures and
metrics. The nomenclature change did not result in any change to
the components of our non-GAAP measures and metrics compared to
prior periods.
(b)
A non-GAAP measure which
represents adjusted compensation and benefits expense as a
percentage of adjusted net revenue.
(c)
A non-GAAP measure which
represents adjusted non-compensation expenses as a percentage of
adjusted net revenue.
(d)
A non-GAAP measure which
represents adjusted operating income as a percentage of adjusted
net revenue.
(e)
A non-GAAP measure which includes
units of the long-term incentive compensation program consisting of
profits interest participation rights, which are equity incentive
awards that, subject to certain conditions, may be exchanged for
shares of our common stock. Certain profits interest participation
rights may be excluded from the computation of outstanding stock
equivalents for U.S. GAAP net income per share. In addition, this
measure includes the dilutive effect of the weighted average number
of shares of common stock issuable from share-based compensation
programs. However, for the six month period ended June 30, 2023,
this measure excluded such shares as the effect would have been
anti-dilutive.
(f)
A non-GAAP measure which
represents the adjusted provision (benefit) for income taxes as a
percentage of adjusted operating income (loss) less interest
expense and amortization and other acquisition-related costs.
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
June 30,
2024
2024
2023
2024
2023
Adjusted provision (benefit) for
income taxes
$8,627
$32,215
$10,303
$40,842
($538)
Adjusted operating income (loss)
less interest expense and amortization and other
acquisition-related costs
61,496
98,821
32,995
160,317
(794)
Adjusted effective tax rate
14.0%
32.6%
31.2%
25.5%
67.8%
(g)
Represents certain distribution,
introducer and management fees paid to third parties and
reimbursable deal costs, for which an equal amount is excluded from
both adjusted net revenue and adjusted non-compensation expenses,
respectively, and excludes provision for credit losses, which
represents fees and other receivables that are deemed
uncollectible.
(h)
Interest expense, excluding
interest expense incurred by Lazard Frères Banque SA ("LFB"), is
added back in determining adjusted net revenue because such expense
relates to corporate financing activities and is not considered to
be a cost directly related to the revenue of our business.
(i)
Represents losses associated with
the closing of certain offices as part of the cost-saving
initiatives, including the reclassification of currency translation
adjustments to earnings from accumulated other comprehensive
loss.
(j)
Noncontrolling interests include
revenue and expenses principally related to Edgewater, ESC Funds
and a Special Purpose Acquisition Company.
(k)
Represents changes in the fair
value of investments held in connection with LFI and other similar
deferred compensation arrangements, for which a corresponding equal
amount is excluded from compensation and benefits expense.
(l)
Represents changes in the fair
value of the compensation liability recorded in connection with LFI
and other similar deferred incentive compensation awards, for which
a corresponding equal amount is excluded from adjusted net
revenue.
(m)
Represents expenses associated
with senior management transition reflecting the departure of
certain executive officers.
(n)
Pursuant to the periodic
revaluation of the TRA liability and the assumptions reflected in
the estimate, the revaluation had the effect of reducing the
estimated liability under the TRA.
NM
Not meaningful
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240725645603/en/
Media Contact: Shannon Houston +1 212 632 6880
shannon.houston@lazard.com
Investor Contact: Alexandra Deignan +1 212 632 6886
alexandra.deignan@lazard.com
Grafico Azioni Lazard (NYSE:LAZ)
Storico
Da Mar 2025 a Mar 2025
Grafico Azioni Lazard (NYSE:LAZ)
Storico
Da Mar 2024 a Mar 2025
