PJT Partners Inc. Reports Third Quarter and Nine Months 2023 Results

Third Quarter Overview

  • Quarterly Revenues of $278 million, an increase of 5% from a year ago
  • GAAP Pretax Income of $43 million and Adjusted Pretax Income of $44 million
  • GAAP Diluted EPS of $0.68 and Adjusted EPS of $0.78

Nine Months Overview

  • Record Nine Months Revenues of $825 million, an increase of 11% from a year ago
  • GAAP Pretax Income of $126 million and Adjusted Pretax Income of $130 million
  • GAAP Diluted EPS of $2.20 and Adjusted EPS of $2.30

Capital Management and Balance Sheet

  • 2.0 million share and share equivalents repurchased year-to-date
  • $355 million of cash, cash equivalents and short-term investments and no funded debt

Paul J. Taubman, Chairman and Chief Executive Officer, said, “In these difficult market conditions, our firm delivered strong performance. For the first nine months of the year, we generated record revenues as our unique combination of businesses and collaborative team approach delivered superior outcomes for clients and differentiated performance for our firm. We will continue to invest to enhance our franchise and we remain highly confident in our future growth prospects.”

NEW YORK--(BUSINESS WIRE)-- PJT Partners Inc. (the “Company” or “PJT Partners”) (NYSE: PJT) today announced its financial results for the third quarter and nine months ended September 30, 2023.

Revenues

The following table sets forth revenues for the three and nine months ended September 30, 2023 and 2022:

 

 

Three Months Ended
September 30,

 

 

 

 

 

Nine Months Ended
September 30,

 

 

 

 

 

2023

 

 

2022

 

 

% Change

 

 

2023

 

 

2022

 

 

% Change

 

 

(Dollars in Millions)

Revenues

 

 

Advisory

 

$

244.1

 

 

$

224.4

 

 

9%

 

 

$

736.0

 

 

$

592.7

 

 

24%

Placement

 

 

26.7

 

 

 

39.7

 

 

(33%)

 

 

 

74.3

 

 

 

149.5

 

 

(50%)

Interest Income & Other

 

 

7.6

 

 

 

2.0

 

 

272%

 

 

 

14.3

 

 

 

3.4

 

 

327%

Total Revenues

 

$

278.4

 

 

$

266.1

 

 

5%

 

 

$

824.6

 

 

$

745.6

 

 

11%

Three Months Ended

Total Revenues of $278 million in the current quarter, up 5% from $266 million in the prior year.

Advisory Revenues of $244 million, up 9% from $224 million in the prior year, due to an increase in restructuring revenues, which was partially offset by decreases in strategic advisory and private capital solutions revenues.

Placement Revenues of $27 million, down 33% from $40 million in the prior year, principally due to a decrease in fund placement revenues.

Interest Income & Other of $7.6 million, up from $2.0 million in the prior year, principally due to higher interest income.

Nine Months Ended

Total Revenues of $825 million in the nine months ended September 30, 2023, up 11% from $746 million in the prior year.

Advisory Revenues of $736 million, up 24% from $593 million in the prior year, due to an increase in restructuring revenues, which was partially offset by decreases in strategic advisory and private capital solutions revenues.

Placement Revenues of $74 million, down 50% from $149 million in the prior year, principally due to a decrease in fund placement revenues.

Interest Income & Other of $14.3 million, up from $3.4 million in the prior year, principally due to higher interest income.

Expenses

The following tables set forth information relating to the Company’s expenses for the three and nine months ended September 30, 2023 and 2022:

 

 

Three Months Ended September 30,

 

 

 

2023

 

 

2022

 

 

 

GAAP

 

 

As Adjusted

 

 

GAAP

 

 

As Adjusted

 

 

 

(Dollars in Millions)

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and Benefits

 

$

193.5

 

 

$

193.5

 

 

$

179.1

 

 

$

175.1

 

% of Revenues

 

 

69.5

%

 

 

69.5

%

 

 

67.3

%

 

 

65.8

%

Non-Compensation

 

$

42.4

 

 

$

41.1

 

 

$

39.4

 

 

$

37.0

 

% of Revenues

 

 

15.2

%

 

 

14.8

%

 

 

14.8

%

 

 

13.9

%

Total Expenses

 

$

235.8

 

 

$

234.6

 

 

$

218.5

 

 

$

212.1

 

% of Revenues

 

 

84.7

%

 

 

84.3

%

 

 

82.1

%

 

 

79.7

%

Pretax Income

 

$

42.6

 

 

$

43.8

 

 

$

47.6

 

 

$

54.0

 

% of Revenues

 

 

15.3

%

 

 

15.7

%

 

 

17.9

%

 

 

20.3

%

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

 

 

GAAP

 

 

As Adjusted

 

 

GAAP

 

 

As Adjusted

 

 

 

(Dollars in Millions)

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and Benefits

 

$

573.1

 

 

$

573.1

 

 

$

488.9

 

 

$

477.2

 

% of Revenues

 

 

69.5

%

 

 

69.5

%

 

 

65.6

%

 

 

64.0

%

Non-Compensation

 

$

125.6

 

 

$

121.8

 

 

$

115.2

 

 

$

109.1

 

% of Revenues

 

 

15.2

%

 

 

14.8

%

 

 

15.4

%

 

 

14.6

%

Total Expenses

 

$

698.7

 

 

$

694.9

 

 

$

604.1

 

 

$

586.3

 

% of Revenues

 

 

84.7

%

 

 

84.3

%

 

 

81.0

%

 

 

78.6

%

Pretax Income

 

$

125.9

 

 

$

129.7

 

 

$

141.5

 

 

$

159.3

 

% of Revenues

 

 

15.3

%

 

 

15.7

%

 

 

19.0

%

 

 

21.4

%

Compensation and Benefits Expense

Three Months Ended

GAAP Compensation and Benefits Expense was $193 million compared with $179 million in the prior year. Adjusted Compensation and Benefits Expense was $193 million compared with $175 million in the prior year. The increase in Compensation and Benefits Expense was both the result of higher revenues and a higher accrual rate compared with prior year quarter.

Nine Months Ended

GAAP Compensation and Benefits Expense was $573 million compared with $489 million in the prior year. Adjusted Compensation and Benefits Expense was $573 million compared with $477 million in the prior year. The adjusted compensation accrual rate of 69.5% compared with 64.0% in the prior year.

Non-Compensation Expense

Three Months Ended

GAAP Non-Compensation Expense was $42 million compared with $39 million in the prior year. Adjusted Non-Compensation Expense was $41 million compared with $37 million in the prior year.

The increase in GAAP and Adjusted Non-Compensation Expense compared with the prior year was principally due to increases in Professional Fees and Occupancy and Related expenses. Professional Fees increased principally due to higher consulting and legal expenses relating to the firm's business activities. Occupancy and Related increased principally due to the further expansion of our New York headquarters, which commenced in the fourth quarter of 2022.

Nine Months Ended

GAAP Non-Compensation Expense was $126 million compared with $115 million in the prior year. Adjusted Non-Compensation Expense was $122 million compared with $109 million in the prior year.

The increase in GAAP and Adjusted Non-Compensation Expense compared with the prior year was principally due to increases in Professional Fees, Occupancy and Related, and Travel and Related expenses. Professional Fees increased principally due to higher consulting and legal expenses relating to the firm's business activities. Occupancy and Related increased principally due to the further expansion of our New York headquarters, which commenced in the fourth quarter of 2022. Travel and Related increased due to increased levels of business travel.

Provision for Taxes

As of September 30, 2023, PJT Partners Inc. owned 62.2% of PJT Partners Holdings LP. PJT Partners Inc. is subject to corporate U.S. federal and state income tax while PJT Partners Holdings LP is subject to New York City unincorporated business tax and other entity-level taxes imposed by certain state and foreign jurisdictions. Please refer to Note 11. “Stockholders’ Equity” in the “Notes to Consolidated Financial Statements” in “Part II. Item 8. Financial Statements and Supplementary Data” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 for further information about the corporate ownership structure. The effective tax rate for GAAP Net Income for the three months ended September 30, 2023 and 2022 was 26.8% and 18.1%, respectively. The effective tax rate for GAAP Net Income for the nine months ended September 30, 2023 and 2022 was 20.4% and 16.1%, respectively.

In calculating Adjusted Net Income, If-Converted, the Company has assumed that all outstanding Class A partnership units in PJT Partners Holdings LP (“Partnership Units”) (excluding the unvested partnership units that have yet to satisfy certain market conditions) have been exchanged into shares of the Company’s Class A common stock, subjecting all of the Company’s income to corporate-level tax.

The effective tax rate for Adjusted Net Income, If-Converted for the nine months ended September 30, 2023 was 26.7% compared with 26.0% for full year 2022.

Capital Management and Balance Sheet

As of September 30, 2023, the Company held cash, cash equivalents and short-term investments of $355 million and no funded debt.

In total during the third quarter 2023, the Company repurchased 47 thousand share equivalents at an average price of $74.06 per share. During the nine months ended September 30, 2023, the Company repurchased 2.0 million share equivalents at an average price of $72.09 per share.

As of September 30, 2023, the Company’s remaining repurchase authorization was $68 million.

The Company intends to repurchase 33 thousand Partnership Units for cash on November 7, 2023 at a price to be determined by the volume-weighted average price per share of the Company’s Class A common stock on November 2, 2023.

Dividend

The Board of Directors of PJT Partners Inc. has declared a quarterly dividend of $0.25 per share of Class A common stock. The dividend will be paid on December 20, 2023 to Class A common stockholders of record as of December 6, 2023.

Quarterly Investor Call Details

PJT Partners will host a conference call on October 31, 2023 at 8:30 a.m. ET to discuss its third quarter 2023 results. The conference call can be accessed via the internet at www.pjtpartners.com or by dialing +1 (800) 579- 2543 (U.S. domestic) or +1 (785) 424-1789 (international), passcode PJTP3Q23. For those unable to listen to the live broadcast, a replay will be available following the call at www.pjtpartners.com.

About PJT Partners

PJT Partners is a premier, global, advisory-focused investment bank that was built from the ground up to be different. Our highly experienced, collaborative teams provide independent advice coupled with old-world, high-touch client service. This ethos has allowed us to attract some of the very best talent in the markets in which we operate. We deliver leading advice to many of the world's most consequential companies, effect some of the most transformative transactions and restructurings and raise billions of dollars of capital around the globe to support startups and more established companies. To learn more about PJT Partners, please visit our website at www.pjtpartners.com.

Forward-Looking Statements

Certain material presented herein contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include certain information concerning future results of operations, business strategies, acquisitions, financing plans, competitive position, potential growth opportunities, potential operating performance improvements, the effects of competition and the effects of future legislation or regulations. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words “believe,” “expect,” “opportunity,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “continue,” “may,” “might,” “should,” “could” or the negative of these terms or similar expressions.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict, many of which are outside our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not place undue reliance upon any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (a) changes in governmental regulations and policies; (b) cyberattacks, security vulnerabilities, and internet disruptions, including breaches of data security and privacy leaks, data loss, and business interruptions; (c) failures of our computer systems or communication systems, including as a result of a catastrophic event and the use of remote work environments and virtual platforms; (d) the impact of catastrophic events, including business disruptions, pandemics, reductions in employment and an increase in business failures on (1) the U.S. and the global economy, and (2) our employees and our ability to provide services to our clients and respond to their needs; (e) the failure of third-party service providers to perform their functions; and (f) volatility in the political and economic environment, including as a result of inflation, rising interest rates, and geopolitical conflict.

Any of these factors, as well as such other factors discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the United States Securities and Exchange Commission (“SEC”), as such factors may be updated from time to time in the Company’s periodic filings with the SEC, accessible on the SEC’s website at www.sec.gov, could cause the Company’s results to differ materially from those expressed in forward-looking statements. There may be other risks and uncertainties that the Company is unable to predict at this time or that are not currently expected to have a material adverse effect on its business. Any such risks could cause the Company’s results to differ materially from those expressed in forward-looking statements.

Non-GAAP Financial Measures

The following represent key performance measures that management uses in making resource allocation and/or compensation decisions. These measures should not be considered substitutes for, or superior to, financial measures prepared in accordance with GAAP.

Management believes the following non-GAAP measures, when presented together with comparable GAAP measures, are useful to investors in understanding the Company’s operating results: Adjusted Pretax Income; Adjusted Net Income; Adjusted Net Income, If-Converted, in total and on a per-share basis (referred to as “Adjusted EPS”); Adjusted Compensation and Benefits Expense and Adjusted Non-Compensation Expense. These non-GAAP measures, presented and discussed in this earnings release, remove the significant accounting impact of: (a) transaction-related compensation expense, including expense related to Partnership Units with both time-based vesting and market conditions as well as equity-based and cash awards granted in connection with the acquisition of CamberView Partners Holdings, LLC (“CamberView”); (b) intangible asset amortization associated with Blackstone Inc.'s ("Blackstone") initial public offering ("IPO"), the acquisition of PJT Capital LP, and the acquisition of CamberView; and (c) the net change to the amount the Company has agreed to pay Blackstone related to the net realized cash benefit from certain compensation-related tax deductions. Reconciliations of the non-GAAP measures to their most directly comparable GAAP measures and further detail regarding the adjustments are provided in the Appendix.

To help investors understand the effect of the Company’s ownership structure on its Adjusted Net Income, the Company has presented Adjusted Net Income, If-Converted. This measure illustrates the impact of taxes on Adjusted Pretax Income, assuming all Partnership Units (excluding the unvested Partnership Units that have yet to satisfy certain market conditions) have been exchanged for shares of the Company’s Class A common stock, resulting in all of the Company’s income becoming subject to corporate-level tax, considering both current and deferred income tax effects. This tax rate excludes a number of adjustments, including the tax benefits of the adjustments for transaction-related compensation expense and amortization expense.

Appendix

GAAP Condensed Consolidated Statements of Operations (unaudited)

Reconciliations of GAAP to Non-GAAP Financial Data (unaudited)

Summary of Shares Outstanding (unaudited)

Footnotes

PJT Partners Inc.
GAAP Condensed Consolidated Statements of Operations (unaudited)
(Dollars in Thousands, Except Share and Per Share Data)

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Advisory

 

$

244,129

 

 

$

224,405

 

 

$

736,013

 

 

$

592,712

 

Placement

 

 

26,660

 

 

 

39,652

 

 

 

74,273

 

 

 

149,485

 

Interest Income and Other

 

 

7,574

 

 

 

2,035

 

 

 

14,342

 

 

 

3,355

 

Total Revenues

 

 

278,363

 

 

 

266,092

 

 

 

824,628

 

 

 

745,552

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and Benefits

 

 

193,457

 

 

 

179,080

 

 

 

573,114

 

 

 

488,899

 

Occupancy and Related

 

 

9,768

 

 

 

8,231

 

 

 

29,699

 

 

 

25,831

 

Travel and Related(1)

 

 

7,177

 

 

 

7,893

 

 

 

22,463

 

 

 

20,923

 

Professional Fees

 

 

10,344

 

 

 

7,375

 

 

 

28,725

 

 

 

21,652

 

Communications and Information Services

 

 

4,479

 

 

 

4,155

 

 

 

12,317

 

 

 

12,819

 

Depreciation and Amortization

 

 

3,547

 

 

 

3,755

 

 

 

10,587

 

 

 

12,156

 

Other Expenses(1)

 

 

7,037

 

 

 

7,961

 

 

 

21,807

 

 

 

21,794

 

Total Expenses

 

 

235,809

 

 

 

218,450

 

 

 

698,712

 

 

 

604,074

 

Income Before Provision for Taxes

 

 

42,554

 

 

 

47,642

 

 

 

125,916

 

 

 

141,478

 

Provision for Taxes

 

 

11,401

 

 

 

8,601

 

 

 

25,725

 

 

 

22,776

 

Net Income

 

 

31,153

 

 

 

39,041

 

 

 

100,191

 

 

 

118,702

 

Net Income Attributable to Non-Controlling Interests

 

 

13,743

 

 

 

17,953

 

 

 

43,304

 

 

 

52,742

 

Net Income Attributable to PJT Partners Inc.

 

$

17,410

 

 

$

21,088

 

 

$

56,887

 

 

$

65,960

 

Net Income Per Share of Class A Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.69

 

 

$

0.84

 

 

$

2.26

 

 

$

2.63

 

Diluted

 

$

0.68

 

 

$

0.82

 

 

$

2.20

 

 

$

2.56

 

Weighted-Average Shares of Class A Common
Stock Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

25,193,359

 

 

 

24,966,527

 

 

 

25,220,031

 

 

 

25,032,151

 

Diluted

 

 

26,644,324

 

 

 

26,519,173

 

 

 

26,630,957

 

 

 

26,497,177

 

PJT Partners Inc.
Reconciliations of GAAP to Non-GAAP Financial Data (unaudited)
(Dollars in Thousands, Except Share and Per Share Data)

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

GAAP Net Income

 

$

31,153

 

 

$

39,041

 

 

$

100,191

 

 

$

118,702

 

Less: GAAP Provision for Taxes

 

 

11,401

 

 

 

8,601

 

 

 

25,725

 

 

 

22,776

 

GAAP Pretax Income

 

 

42,554

 

 

 

47,642

 

 

 

125,916

 

 

 

141,478

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to GAAP Pretax Income

 

 

 

 

 

 

 

 

 

 

 

 

Transaction-Related Compensation Expense(2)

 

 

 

 

 

3,987

 

 

 

 

 

 

11,746

 

Amortization of Intangible Assets(3)

 

 

1,230

 

 

 

1,486

 

 

 

3,690

 

 

 

5,276

 

Spin-Off-Related Payable Due to Blackstone(4)

 

 

21

 

 

 

836

 

 

 

100

 

 

 

771

 

Adjusted Pretax Income

 

 

43,805

 

 

 

53,951

 

 

 

129,706

 

 

 

159,271

 

Adjusted Taxes(5)

 

 

11,162

 

 

 

10,142

 

 

 

26,068

 

 

 

26,206

 

Adjusted Net Income

 

 

32,643

 

 

 

43,809

 

 

 

103,638

 

 

 

133,065

 

 

 

 

 

 

 

 

 

 

 

 

 

 

If-Converted Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

Less: Adjusted Taxes(5)

 

 

(11,162

)

 

 

(10,142

)

 

 

(26,068

)

 

 

(26,206

)

Add: If-Converted Taxes(6)

 

 

11,691

 

 

 

13,970

 

 

 

34,631

 

 

 

41,143

 

Adjusted Net Income, If-Converted

 

$

32,114

 

 

$

39,981

 

 

$

95,075

 

 

$

118,128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Net Income Per Share of Class A Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.69

 

 

$

0.84

 

 

$

2.26

 

 

$

2.63

 

Diluted

 

$

0.68

 

 

$

0.82

 

 

$

2.20

 

 

$

2.56

 

GAAP Weighted-Average Shares of Class A
Common Stock Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

25,193,359

 

 

 

24,966,527

 

 

 

25,220,031

 

 

 

25,032,151

 

Diluted

 

 

26,644,324

 

 

 

26,519,173

 

 

 

26,630,957

 

 

 

26,497,177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income, If-Converted Per Share

 

$

0.78

 

 

$

0.96

 

 

$

2.30

 

 

$

2.84

 

Weighted-Average Shares Outstanding, If-Converted

 

 

41,409,625

 

 

 

41,540,815

 

 

 

41,351,599

 

 

 

41,614,791

 

PJT Partners Inc.
Reconciliations of GAAP to Non-GAAP Financial Data – continued (unaudited)
(Dollars in Thousands)

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

GAAP Compensation and Benefits Expense

 

$

193,457

 

 

$

179,080

 

 

$

573,114

 

 

$

488,899

 

Transaction-Related Compensation Expense(2)

(3,987

)

(11,746

)

Adjusted Compensation and Benefits Expense

 

$

193,457

 

 

$

175,093

 

 

$

573,114

 

 

$

477,153

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Compensation Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Occupancy and Related

 

$

9,768

 

 

$

8,231

 

 

$

29,699

 

 

$

25,831

 

Travel and Related(1)

 

 

7,177

 

 

 

7,893

 

 

 

22,463

 

 

 

20,923

 

Professional Fees

 

 

10,344

 

 

 

7,375

 

 

 

28,725

 

 

 

21,652

 

Communications and Information Services

 

 

4,479

 

 

 

4,155

 

 

 

12,317

 

 

 

12,819

 

Depreciation and Amortization

 

 

3,547

 

 

 

3,755

 

 

 

10,587

 

 

 

12,156

 

Other Expenses(1)

 

 

7,037

 

 

 

7,961

 

 

 

21,807

 

 

 

21,794

 

GAAP Non-Compensation Expense

 

 

42,352

 

 

 

39,370

 

 

 

125,598

 

 

 

115,175

 

Amortization of Intangible Assets(3)

 

 

(1,230

)

 

 

(1,486

)

 

 

(3,690

)

 

 

(5,276

)

Spin-Off-Related Payable Due to Blackstone(4)

(21

)

(836

)

(100

)

(771

)

Adjusted Non-Compensation Expense

 

$

41,101

 

 

$

37,048

 

 

$

121,808

 

 

$

109,128

 

PJT Partners Inc.
Summary of Shares Outstanding (unaudited)

The following table provides a summary of weighted-average shares outstanding for the three and nine months ended September 30, 2023 and 2022 for both basic and diluted shares. The table also provides a reconciliation to If-Converted Shares Outstanding assuming that all Partnership Units and unvested PJT Partners Inc. restricted stock units (“RSUs”) were converted to shares of the Company’s Class A common stock:

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Weighted-Average Shares Outstanding - GAAP

 

 

 

 

 

 

 

 

 

 

 

 

Basic Shares Outstanding, GAAP

 

 

25,193,359

 

 

 

24,966,527

 

 

 

25,220,031

 

 

 

25,032,151

 

Dilutive Impact of Unvested RSUs(7)

 

 

1,450,965

 

 

 

1,552,646

 

 

 

1,410,926

 

 

 

1,465,026

 

Diluted Shares Outstanding, GAAP

 

 

26,644,324

 

 

 

26,519,173

 

 

 

26,630,957

 

 

 

26,497,177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-Average Shares Outstanding - If-Converted

 

 

 

 

 

 

 

 

 

 

 

 

Basic Shares Outstanding, GAAP

 

 

25,193,359

 

 

 

24,966,527

 

 

 

25,220,031

 

 

 

25,032,151

 

Unvested RSUs(8)

 

 

1,450,965

 

 

 

1,555,239

 

 

 

1,410,926

 

 

 

1,467,619

 

Partnership Units(9)

 

 

14,765,301

 

 

 

15,019,049

 

 

 

14,720,642

 

 

 

15,115,021

 

If-Converted Shares Outstanding

 

 

41,409,625

 

 

 

41,540,815

 

 

 

41,351,599

 

 

 

41,614,791

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30,

 

 

 

 

 

 

2023

 

 

2022

 

 

 

 

 

 

 

Fully-Diluted Shares Outstanding(10)

 

 

44,457,247

 

 

 

43,761,678

 

 

 

 

 

 

 

As of September 30, 2023, 1.1 million Partnership Units and 1.6 million RSUs that have yet to satisfy certain market conditions were excluded from any share count calculations.

Footnotes

(1)

 

Certain balances in the prior period have been reclassified to conform to their current presentation. For the three and nine months ended September 30, 2022, this resulted in a reclassification of $1.6 million and $3.5 million, respectively, from Other Expenses to Travel and Related. There was no impact on either U.S. GAAP EPS or Adjusted EPS as a result of the reclassification.

(2)

 

This adjustment adds back to GAAP Pretax Income transaction-related compensation expense for Partnership Units with both time-based vesting and market conditions as well as equity-based and cash awards granted in connection with the acquisition of CamberView.

(3)

 

This adjustment adds back to GAAP Pretax Income amounts for the amortization of intangible assets that are associated with Blackstone's IPO, the acquisition of PJT Capital LP on October 1, 2015 and the acquisition of CamberView on October 1, 2018.

(4)

 

This adjustment adds back to GAAP Pretax Income the net change to the amount the Company has agreed to pay Blackstone related to the net realized cash benefit from certain compensation-related tax deductions. Such amounts are reflected in Other Expenses in the Condensed Consolidated Statements of Operations.

(5)

 

Represents taxes on Adjusted Pretax Income, considering both current and deferred income tax effects for the current ownership structure.

(6)

 

Represents taxes on Adjusted Pretax Income, assuming all Partnership Units (excluding the unvested Partnership Units that have yet to satisfy market conditions) have been exchanged for shares of the Company’s Class A common stock, resulting in all of the Company’s income becoming subject to corporate-level tax, considering both current and deferred income tax effects. This tax rate excludes a number of adjustments, including the tax benefits of the adjustments for transaction-related compensation expense and amortization expense.

(7)

 

Represents the dilutive impact under the treasury method of unvested RSUs that have a remaining service requirement.

(8)

 

Represents the dilutive impact of unvested RSUs that have a remaining service requirement.

(9)

 

Represents the number of shares assuming the conversion of all Partnership Units, excluding Partnership Units that have yet to satisfy certain market conditions.

(10)

 

Assumes all Partnership Units and unvested RSUs have been converted to shares of the Company’s Class A common stock. As of September 30, 2023, 1.1 million Partnership Units and 1.6 million RSUs that have yet to satisfy certain market conditions were excluded from any share count calculations.

Note: Amounts presented in tables above may not add or recalculate due to rounding.

 

Media Relations:
Jon Keehner
Joele Frank, Wilkinson Brimmer Katcher
Tel: +1 212.355.4449
PJT-JF@joelefrank.com

Investor Relations:
Sharon Pearson
PJT Partners Inc.
Tel: +1 212.364.7120
pearson@pjtpartners.com

Source: PJT Partners Inc.