The following is a summary of the PJT Partners, Inc. (PJT) Q1 2024 Earnings Call Transcript:
Financial Performance:
PJT Partners reported Q1 2024 revenues of $329 million, a record for the first quarter and a 65% increase year-over-year.
Adjusted Earnings Per Share (EPS) reached $0.98, showing an 81% increase compared to the same period the previous year.
The compensation expense was accrued at 69.5% of revenues for the first quarter, compared with 69.8% for the entire year of 2023.
The effective tax rate for this first quarter stands at 22%, a decrease compared with 2023's rate of 25.3%.
They ended the quarter with a strong liquidity position, possessing $236 million in cash and short-term investments, no funded debt, and $408 million in net working capital.
Business Progress:
The PJT Park Hill and restructuring businesses exhibited a significant increase in revenues, contributing to a strong first quarter.
Hiring has been increased with a focus on adding skilled professionals to boost their Strategic Advisory footprint.
The company successfully fulfilled its highest open market repurchases this quarter, and plans to exchange 116,000 partnership units for cash by May 2024.
2024's restructuring revenues are expected to remain high and approach the levels of record performance set in 2023.
Growth is predicted in the Strategic Advisory business for 2024, with a record pre-announced pipeline indicating strong momentum.
PJT will leverage the long-term trend of growing demand for secondary continuation funds, while avoiding equity dilution via share repurchases.
The company has bolstered its partner count via new external hires and promotions from within, and will continue recruiting efforts.
Although the upcoming election is causing some transaction freezing due to volatility, this is expected to be temporary with more activity projected post-election.
More details: PJT Partners IR
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