Q3--12-310001626115falsehttp://fasb.org/us-gaap/2024#AccountsReceivableNethttp://fasb.org/us-gaap/2024#AccountsReceivableNetP3YP1Yhttp://fasb.org/us-gaap/2024#SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember110001626115pjt:AdvisoryFeesMember2023-01-012023-09-300001626115pjt:AwardsSatisfyingMarketAndServiceConditionsMemberpjt:PartnershipUnitAwardsWithPerformanceConditionsMember2024-01-012024-09-300001626115pjt:AwardsSatisfyingMarketConditionsMemberpjt:PartnershipUnitAwardsWithPerformanceConditionsMember2024-01-012024-09-300001626115us-gaap:NoncontrollingInterestMember2023-07-012023-09-300001626115pjt:RestrictedStockUnitAwardsWithPerformanceConditionsMember2022-02-102022-02-100001626115pjt:PlacementFeesMember2023-01-012023-09-300001626115us-gaap:AdditionalPaidInCapitalMember2024-07-012024-09-300001626115us-gaap:RestrictedStockUnitsRSUMember2023-12-3100016261152023-09-300001626115us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-09-300001626115pjt:PlacementFeesMember2023-07-012023-09-300001626115us-gaap:NonUsMember2024-01-012024-09-300001626115pjt:DividendAdjustedPubliclyTradedSharesOfClassACommonStockMemberpjt:PartnershipUnitAwardsWithPerformanceConditionsMember2022-02-102022-02-100001626115pjt:AdvisoryFeesMember2023-07-012023-09-300001626115pjt:AdvisoryFeesMember2024-07-012024-09-300001626115pjt:PartnershipUnitAwardsWithPerformanceConditionsMember2023-12-310001626115us-gaap:CommonClassAMember2024-10-280001626115country:US2023-01-012023-09-300001626115us-gaap:CommonClassBMember2024-09-300001626115us-gaap:NoncontrollingInterestMember2024-07-012024-09-3000016261152024-07-012024-09-300001626115us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300001626115us-gaap:TreasuryStockCommonMember2024-06-300001626115us-gaap:RetainedEarningsMember2024-01-012024-09-300001626115pjt:AccountsPayableAccruedExpensesAndOtherLiabilitiesMember2023-12-310001626115us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300001626115us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-09-300001626115pjt:PartnershipUnitsMemberpjt:PJTPartnersHoldingsLPMember2024-01-012024-09-300001626115us-gaap:CommonStockMemberus-gaap:CommonClassAMember2022-12-310001626115us-gaap:RevolvingCreditFacilityMemberpjt:RenewalAgreementMember2023-12-310001626115pjt:RestrictedStockUnitAwardsWithPerformanceConditionsMembersrt:MinimumMember2024-01-012024-09-300001626115pjt:AdvisoryAndPlacementFeesMember2024-01-012024-09-300001626115us-gaap:CommonClassAMember2024-07-012024-09-300001626115us-gaap:AdditionalPaidInCapitalMember2023-01-012023-09-300001626115pjt:PJTPartnersHoldingsLPMemberus-gaap:CommonClassAMembersrt:ScenarioForecastMember2024-11-052024-11-050001626115us-gaap:AdditionalPaidInCapitalMember2024-06-300001626115us-gaap:NoncontrollingInterestMember2022-12-310001626115srt:MinimumMember2024-01-012024-09-300001626115us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001626115us-gaap:LeaseholdImprovementsMember2023-12-310001626115us-gaap:CommonStockMemberus-gaap:CommonClassBMember2023-01-012023-09-300001626115us-gaap:CommonStockMemberus-gaap:CommonClassBMember2022-12-310001626115us-gaap:CommonClassAMember2023-01-012023-09-300001626115us-gaap:RestrictedStockUnitsRSUMembersrt:MaximumMember2024-01-012024-09-300001626115us-gaap:NoncontrollingInterestMember2023-09-300001626115pjt:SubleaseAgreementMemberpjt:DynastyEquityPartnersManagementMember2023-01-012023-09-300001626115us-gaap:NoncontrollingInterestMember2024-09-300001626115srt:MinimumMemberpjt:PartnershipUnitAwardsWithPerformanceConditionsMember2022-02-102022-02-100001626115us-gaap:CommonClassAMemberpjt:ParticipatingRestrictedStockUnitsMember2024-01-012024-09-300001626115us-gaap:NoncontrollingInterestMember2023-06-300001626115us-gaap:TreasuryStockCommonMember2023-06-300001626115pjt:RestrictedStockUnitAwardsWithPerformanceConditionsMemberpjt:DividendAdjustedPubliclyTradedSharesOfClassACommonStockMember2022-02-102022-02-100001626115us-gaap:CommonStockMemberus-gaap:CommonClassAMember2023-06-300001626115pjt:AccountsPayableAccruedExpensesAndOtherLiabilitiesMember2024-09-300001626115us-gaap:CustomerRelationshipsMember2023-12-310001626115pjt:ParticipatingRestrictedStockUnitsMember2024-01-012024-09-300001626115us-gaap:RetainedEarningsMember2023-07-012023-09-300001626115pjt:InterestIncomeAndOtherMember2024-07-012024-09-300001626115us-gaap:TradeNamesMember2023-12-310001626115country:US2023-12-310001626115us-gaap:CustomerRelationshipsMember2024-09-300001626115pjt:PJTPartnersLPMember2024-09-300001626115us-gaap:AdditionalPaidInCapitalMember2024-01-012024-09-300001626115us-gaap:CommonStockMemberus-gaap:CommonClassBMember2023-07-012023-09-300001626115us-gaap:RetainedEarningsMember2023-06-3000016261152024-01-012024-09-300001626115us-gaap:TreasuryStockCommonMember2023-12-3100016261152023-06-300001626115us-gaap:USTreasurySecuritiesMember2024-09-300001626115pjt:PartnershipUnitsMember2024-07-012024-09-300001626115pjt:ParticipatingRestrictedStockUnitsMember2024-07-012024-09-300001626115pjt:PJTPartnersHoldingsLPMemberus-gaap:CommonClassAMember2024-01-012024-09-300001626115pjt:PlacementFeesMember2024-01-012024-09-300001626115us-gaap:RetainedEarningsMember2024-09-300001626115us-gaap:NoncontrollingInterestMember2023-01-012023-09-300001626115us-gaap:NonUsMember2024-07-012024-09-300001626115pjt:PartnershipUnitAwardsWithPerformanceConditionsMember2024-01-012024-09-3000016261152023-07-012023-09-300001626115country:US2024-01-012024-09-300001626115us-gaap:RetainedEarningsMember2023-09-300001626115us-gaap:TreasuryStockCommonMember2023-01-012023-09-300001626115us-gaap:CommonStockMemberus-gaap:CommonClassAMember2024-06-300001626115us-gaap:NoncontrollingInterestMember2024-06-300001626115pjt:RestrictedStockUnitAwardsWithPerformanceConditionsMemberpjt:DividendAdjustedPubliclyTradedSharesOfClassACommonStockMember2024-01-012024-09-300001626115us-gaap:TreasuryStockCommonMember2024-01-012024-09-300001626115pjt:PJTPartnersHoldingsLPMembersrt:MaximumMember2024-09-300001626115pjt:SubleaseAgreementMemberpjt:DynastyEquityPartnersManagementMember2024-01-012024-09-300001626115us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-09-300001626115us-gaap:CommonStockMemberus-gaap:CommonClassAMember2024-01-012024-09-300001626115pjt:AdvisoryFeesMember2024-01-012024-09-300001626115us-gaap:CommonStockMemberus-gaap:CommonClassBMember2024-09-300001626115us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-3000016261152024-06-300001626115pjt:RestrictedStockUnitAwardsWithPerformanceConditionsMember2024-01-012024-09-300001626115us-gaap:RestrictedStockUnitsRSUMember2024-09-300001626115us-gaap:OfficeEquipmentMember2023-12-3100016261152022-12-310001626115us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300001626115us-gaap:CommonClassBMember2023-12-310001626115us-gaap:AdditionalPaidInCapitalMember2023-09-300001626115us-gaap:CommonStockMemberus-gaap:CommonClassAMember2023-12-310001626115us-gaap:TreasuryStockCommonMember2024-09-300001626115us-gaap:CommonClassAMemberpjt:ParticipatingRestrictedStockUnitsMember2024-07-012024-09-300001626115us-gaap:CommonStockMemberus-gaap:CommonClassAMember2023-09-300001626115pjt:PartnershipUnitAwardsWithPerformanceConditionsMember2024-09-300001626115us-gaap:TreasuryStockCommonMember2023-09-300001626115us-gaap:TradeNamesMember2024-09-300001626115pjt:AdvisoryAndPlacementFeesMember2024-07-012024-09-300001626115us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMember2023-12-310001626115pjt:PlacementFeeReceivableMember2023-12-310001626115pjt:InterestIncomeFromPlacementFeesAndOtherMember2023-07-012023-09-300001626115us-gaap:RetainedEarningsMember2022-12-310001626115us-gaap:RetainedEarningsMember2024-07-012024-09-300001626115pjt:PJTPartnersHoldingsLPMember2024-01-012024-09-300001626115us-gaap:RestrictedStockUnitsRSUMember2024-07-012024-09-300001626115pjt:AdvisoryAndPlacementFeesMember2023-01-012023-09-300001626115us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-09-300001626115srt:MaximumMemberpjt:PartnershipUnitAwardsWithPerformanceConditionsMember2022-02-102022-02-1000016261152024-09-300001626115us-gaap:CommonStockMemberus-gaap:CommonClassBMember2023-12-310001626115us-gaap:AdditionalPaidInCapitalMember2023-06-300001626115us-gaap:FurnitureAndFixturesMember2023-12-310001626115us-gaap:RetainedEarningsMember2023-01-012023-09-300001626115pjt:PartnershipUnitAwardsWithPerformanceConditionsMember2022-02-102022-02-100001626115us-gaap:NonUsMember2023-07-012023-09-300001626115us-gaap:RetainedEarningsMember2023-12-310001626115us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-300001626115us-gaap:CommonClassAMember2023-12-310001626115pjt:BlackstoneMember2024-09-300001626115us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMember2024-09-300001626115us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300001626115pjt:InterestIncomeFromPlacementFeesAndOtherMember2024-01-012024-09-300001626115pjt:PartnershipUnitsMember2023-01-012023-09-300001626115us-gaap:USTreasurySecuritiesMember2023-12-3100016261152023-12-310001626115us-gaap:CommonStockMemberus-gaap:CommonClassBMember2023-09-300001626115pjt:RestrictedStockUnitAwardsWithPerformanceConditionsMember2023-12-310001626115us-gaap:CommonStockMemberus-gaap:CommonClassAMember2024-09-300001626115pjt:PartnershipUnitsMember2024-01-012024-09-3000016261152024-01-012024-06-300001626115pjt:InterestIncomeFromPlacementFeesAndOtherMember2023-01-012023-09-300001626115us-gaap:TreasuryStockCommonMember2023-07-012023-09-300001626115pjt:PartnershipUnitsMember2024-09-300001626115pjt:DividendAdjustedPubliclyTradedSharesOfClassACommonStockMemberpjt:PartnershipUnitAwardsWithPerformanceConditionsMember2024-01-012024-09-300001626115pjt:RestrictedStockUnitAwardsWithPerformanceConditionsMembersrt:MaximumMember2024-01-012024-09-300001626115us-gaap:CommonStockMemberus-gaap:CommonClassBMember2023-06-300001626115us-gaap:NoncontrollingInterestMember2023-12-310001626115pjt:RestrictedStockUnitAwardsWithPerformanceConditionsMemberpjt:AwardsSatisfyingMarketAndServiceConditionsMember2024-01-012024-09-300001626115pjt:PJTPartnersHoldingsLPMemberus-gaap:RevolvingCreditFacilityMember2024-07-292024-07-290001626115pjt:RestrictedStockUnitAwardsWithPerformanceConditionsMemberpjt:AwardsSatisfyingMarketConditionsMember2024-01-012024-09-300001626115pjt:RestrictedStockUnitAwardsWithPerformanceConditionsMembersrt:MaximumMember2022-02-102022-02-100001626115us-gaap:CommonStockMemberus-gaap:CommonClassBMember2024-07-012024-09-300001626115pjt:PJTPartnersHoldingsLPMemberus-gaap:RevolvingCreditFacilityMember2024-07-290001626115us-gaap:OfficeEquipmentMember2024-09-300001626115us-gaap:CommonClassAMemberpjt:ParticipatingRestrictedStockUnitsMember2023-01-012023-09-300001626115us-gaap:AdditionalPaidInCapitalMember2024-09-300001626115us-gaap:CommonStockMemberus-gaap:CommonClassBMember2024-06-3000016261152023-01-012023-09-300001626115us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001626115pjt:PJTPartnersHoldingsLPMember2024-09-300001626115pjt:PjtPartnersJapanKKMember2024-04-010001626115us-gaap:CommonStockMemberus-gaap:CommonClassAMember2023-07-012023-09-300001626115pjt:InterestIncomeAndOtherMember2023-07-012023-09-300001626115pjt:InterestIncomeAndOtherMember2024-01-012024-09-300001626115us-gaap:AdditionalPaidInCapitalMember2022-12-310001626115us-gaap:CommonClassAMember2022-04-2500016261152024-10-01pjt:AdvisoryAndPlacementFeesMember2024-09-300001626115us-gaap:CommonClassAMember2023-07-012023-09-300001626115us-gaap:NoncontrollingInterestMember2024-01-012024-09-300001626115pjt:PJTPartnersLPMember2023-12-310001626115pjt:PlacementFeeReceivableMember2024-09-300001626115us-gaap:RestrictedStockUnitsRSUMembersrt:MinimumMember2024-01-012024-09-300001626115pjt:RestrictedStockUnitAwardsWithPerformanceConditionsMembersrt:MinimumMember2022-02-102022-02-100001626115pjt:RestrictedStockUnitAwardsWithPerformanceConditionsMember2024-09-300001626115us-gaap:RestrictedStockUnitsRSUMember2023-07-012023-09-300001626115us-gaap:NonUsMember2024-09-300001626115us-gaap:CommonClassAMemberpjt:O2024Q4DividendsMemberus-gaap:SubsequentEventMember2024-10-312024-10-310001626115us-gaap:CommonClassAMember2024-09-300001626115country:US2024-09-300001626115us-gaap:CommonStockMemberus-gaap:CommonClassAMember2023-01-012023-09-300001626115pjt:SubleaseAgreementMemberpjt:DynastyEquityPartnersManagementMember2023-07-012023-09-300001626115us-gaap:CommonStockMemberus-gaap:CommonClassBMember2024-01-012024-09-300001626115us-gaap:TreasuryStockCommonMember2024-07-012024-09-300001626115us-gaap:CommonClassAMember2024-01-012024-09-300001626115pjt:PartnershipUnitsMember2023-12-310001626115us-gaap:CommonClassBMember2024-10-280001626115pjt:AdvisoryAndPlacementFeesMember2023-07-012023-09-300001626115us-gaap:NonUsMember2023-01-012023-09-300001626115us-gaap:TreasuryStockCommonMember2022-12-310001626115us-gaap:RevolvingCreditFacilityMemberpjt:RenewalAgreementMember2021-02-010001626115us-gaap:RevolvingCreditFacilityMember2024-09-300001626115us-gaap:CommonStockMemberus-gaap:CommonClassAMember2024-07-012024-09-300001626115us-gaap:AdditionalPaidInCapitalMember2023-12-310001626115us-gaap:NonUsMember2023-12-310001626115us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300001626115pjt:DenovoPartnersMemberus-gaap:SubsequentEventMember2024-10-012024-10-010001626115us-gaap:CommonClassAMemberpjt:ParticipatingRestrictedStockUnitsMember2023-07-012023-09-300001626115srt:MinimumMemberpjt:PartnershipUnitAwardsWithPerformanceConditionsMember2024-01-012024-09-300001626115pjt:InterestIncomeAndOtherMember2023-01-012023-09-300001626115us-gaap:CommonClassAMember2024-02-060001626115country:US2023-07-012023-09-300001626115srt:MaximumMember2024-01-012024-09-300001626115country:US2024-07-012024-09-300001626115pjt:PartnershipUnitsMemberpjt:PJTPartnersHoldingsLPMember2024-09-300001626115pjt:PlacementFeesMember2024-07-012024-09-300001626115us-gaap:RetainedEarningsMember2024-06-300001626115pjt:InterestIncomeFromPlacementFeesAndOtherMember2024-07-012024-09-300001626115pjt:BlackstoneMember2023-12-310001626115us-gaap:LeaseholdImprovementsMember2024-09-300001626115pjt:SubleaseAgreementMemberpjt:DynastyEquityPartnersManagementMember2024-07-012024-09-300001626115pjt:PJTPartnersHoldingsLPMember2023-01-012023-09-300001626115us-gaap:FurnitureAndFixturesMember2024-09-30xbrli:pureiso4217:JPYiso4217:USDxbrli:sharesxbrli:sharesiso4217:USDpjt:Segment

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2024

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO

Commission File Number: 001-36869

 

 

img52741593_0.jpg

PJT Partners Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware

36-4797143

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification No.)

 

280 Park Avenue

New York, New York 10017

(Address of principal executive offices)(Zip Code)

(212) 364-7800

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Class A common stock, par value $0.01 per share

 

PJT

 

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large Accelerated Filer

 

Accelerated Filer

Non-Accelerated Filer

 

Smaller Reporting Company

 

 

 

Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

As of October 28, 2024, there were 23,701,945 shares of Class A common stock, par value $0.01 per share, and 132 shares of Class B common stock, par value $0.01 per share, outstanding.

 

 

 


 

TABLE OF CONTENTS

 

 

Page

PART I.

FINANCIAL INFORMATION

 

 

 

 

 

ITEM 1.

FINANCIAL STATEMENTS

4

 

 

 

 

 

Unaudited Condensed Consolidated Financial Statements — September 30, 2024 and 2023:

 

 

 

 

 

Condensed Consolidated Statements of Financial Condition as of September 30, 2024 and December 31, 2023

4

 

 

 

 

 

Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023

5

 

 

 

 

 

Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2024 and 2023

6

 

 

 

 

 

Condensed Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2024 and 2023

7

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023

9

 

 

 

 

 

Notes to Condensed Consolidated Financial Statements

10

 

 

 

 

 

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

24

 

 

 

 

 

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

32

 

 

 

 

 

ITEM 4.

CONTROLS AND PROCEDURES

33

 

 

 

 

 

PART II.

OTHER INFORMATION

 

 

 

 

 

ITEM 1.

LEGAL PROCEEDINGS

34

 

 

 

 

 

ITEM 1A.

RISK FACTORS

34

 

 

 

 

 

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

34

 

 

 

 

 

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES

35

 

 

 

 

 

ITEM 4.

MINE SAFETY DISCLOSURES

35

 

 

 

 

 

ITEM 5.

OTHER INFORMATION

35

 

 

 

 

 

ITEM 6.

EXHIBITS

36

 

 

 

 

 

SIGNATURES

37

 

 

 

 


 

PJT Partners Inc. was formed in connection with certain merger and spin-off transactions whereby the financial and strategic advisory services, restructuring and reorganization advisory services and Park Hill Group businesses of Blackstone Inc. (“Blackstone” or our “former Parent”) were combined with PJT Capital LP, a financial advisory firm founded by Paul J. Taubman in 2013 (together with its then affiliates, “PJT Capital”), and the combined business was distributed to Blackstone’s unitholders to create PJT Partners Inc., a stand-alone, independent publicly traded company. Throughout this Quarterly Report on Form 10-Q, we refer to this transaction as the “spin-off.” PJT Partners Inc. is a holding company and its only material asset is its controlling equity interest in PJT Partners Holdings LP, a holding partnership that holds the Company’s operating subsidiaries, and certain cash and cash equivalents it may hold from time to time. As the sole general partner of PJT Partners Holdings LP, PJT Partners Inc. operates and controls all of the business and affairs and consolidates the financial results of PJT Partners Holdings LP and its operating subsidiaries.

In this Quarterly Report on Form 10-Q, unless the context requires otherwise, the words “PJT Partners Inc.” refers to PJT Partners Inc., and “PJT Partners,” the “Company,” “we,” “us” and “our” refer to PJT Partners Inc., together with its consolidated subsidiaries, including PJT Partners Holdings LP and its operating subsidiaries.

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) cyber attacks, 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, elevated interest rates and geopolitical and military conflicts.

2


 

Any of these factors, as well as such other factors discussed in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the United States Securities and Exchange Commission (“SEC”), as such factors may be updated from time to time in our periodic filings with the SEC, accessible on the SEC’s website at www.sec.gov, could cause our results to differ materially from those expressed in forward-looking statements. There may be other risks and uncertainties that we are unable to predict at this time or that are not currently expected to have a material adverse effect on our business. Any such risks could cause our results to differ materially from those expressed in forward-looking statements.

Website Disclosure

We use our website (www.pjtpartners.com) as a channel of distribution of Company information. The information we post may be deemed material. Accordingly, investors should monitor the website, in addition to following our press releases, SEC filings and public conference calls and webcasts. In addition, you may automatically receive e-mail alerts and other information about PJT Partners when you enroll your e-mail address by visiting the “Investor Relations” page of our website at ir.pjtpartners.com. Although we refer to our website in this report, the contents of our website are not included or incorporated by reference into this report. All references to our website in this report are intended to be inactive textual references only.

3


 

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

PJT Partners Inc.

Condensed Consolidated Statements of Financial Condition (Unaudited)

(Dollars in Thousands, Except Share and Per Share Data)

 

 

September 30,
2024

 

 

December 31,
2023

 

Assets

 

 

 

 

 

 

Cash and Cash Equivalents

 

$

148,836

 

 

$

355,543

 

Investments (at fair value)

 

 

328,206

 

 

 

81,382

 

Accounts Receivable (net of allowance for credit losses of $4,020 and
   $
2,391 at September 30, 2024 and December 31, 2023, respectively)

 

 

343,572

 

 

 

263,529

 

Intangible Assets, Net

 

 

9,270

 

 

 

12,960

 

Goodwill

 

 

172,725

 

 

 

172,725

 

Furniture, Equipment and Leasehold Improvements, Net

 

 

23,263

 

 

 

25,901

 

Operating Lease Right-of-Use Assets

 

 

313,857

 

 

 

299,200

 

Other Assets

 

 

145,902

 

 

 

151,278

 

Deferred Tax Asset, Net

 

 

73,892

 

 

 

72,460

 

Total Assets

 

$

1,559,523

 

 

$

1,434,978

 

Liabilities and Equity

 

 

 

 

 

 

Accrued Compensation and Benefits

 

$

242,155

 

 

$

174,402

 

Accounts Payable, Accrued Expenses and Other Liabilities

 

 

32,649

 

 

 

22,302

 

Operating Lease Liabilities

 

 

353,308

 

 

 

330,600

 

Amount Due Pursuant to Tax Receivable Agreement

 

 

30,703

 

 

 

29,672

 

Taxes Payable

 

 

6,618

 

 

 

6,573

 

Deferred Revenue

 

 

13,564

 

 

 

10,265

 

Total Liabilities

 

 

678,997

 

 

 

573,814

 

Commitments and Contingencies

 

 

 

 

 

 

Equity

 

 

 

 

 

 

Class A Common Stock, par value $0.01 per share (3,000,000,000
   shares authorized;
33,748,630 and 32,356,489 issued at
   September 30, 2024 and December 31, 2023, respectively;
   
23,723,755 and 24,185,439 outstanding at September 30, 2024
   and December 31, 2023, respectively)

 

 

338

 

 

 

324

 

Class B Common Stock, par value $0.01 per share (1,000,000
   shares authorized;
132 issued and outstanding at September 30, 2024;
   
144 issued and outstanding at December 31, 2023)

 

 

 

 

 

 

Additional Paid-In Capital

 

 

653,468

 

 

 

619,702

 

Retained Earnings

 

 

183,256

 

 

 

118,332

 

Accumulated Other Comprehensive Income (Loss)

 

 

1,012

 

 

 

(467

)

Treasury Stock at Cost (10,024,875 and 8,171,050 shares at
    September 30, 2024 and December 31, 2023, respectively)

 

 

(678,961

)

 

 

(493,222

)

Total PJT Partners Inc. Equity

 

 

159,113

 

 

 

244,669

 

Non-Controlling Interests

 

 

721,413

 

 

 

616,495

 

Total Equity

 

 

880,526

 

 

 

861,164

 

Total Liabilities and Equity

 

$

1,559,523

 

 

$

1,434,978

 

 

See notes to condensed consolidated financial statements.

4


 

PJT Partners Inc.

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,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Advisory Fees

 

$

283,787

 

 

$

244,129

 

 

$

879,550

 

 

$

736,013

 

Placement Fees

 

 

32,464

 

 

 

26,660

 

 

 

113,826

 

 

 

74,273

 

Interest Income and Other

 

 

10,071

 

 

 

7,574

 

 

 

22,520

 

 

 

14,342

 

Total Revenues

 

 

326,322

 

 

 

278,363

 

 

 

1,015,896

 

 

 

824,628

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and Benefits

 

 

226,794

 

 

 

193,457

 

 

 

706,048

 

 

 

573,114

 

Occupancy and Related

 

 

12,961

 

 

 

9,768

 

 

 

37,229

 

 

 

29,699

 

Travel and Related

 

 

8,314

 

 

 

7,177

 

 

 

26,470

 

 

 

22,463

 

Professional Fees

 

 

10,883

 

 

 

10,344

 

 

 

28,012

 

 

 

28,725

 

Communications and Information Services

 

 

4,889

 

 

 

4,479

 

 

 

14,963

 

 

 

12,317

 

Depreciation and Amortization

 

 

2,984

 

 

 

3,547

 

 

 

9,594

 

 

 

10,587

 

Other Expenses

 

 

10,110

 

 

 

7,037

 

 

 

25,891

 

 

 

21,807

 

Total Expenses

 

 

276,935

 

 

 

235,809

 

 

 

848,207

 

 

 

698,712

 

Income Before Provision for Taxes

 

 

49,387

 

 

 

42,554

 

 

 

167,689

 

 

 

125,916

 

Provision for Taxes

 

 

8,314

 

 

 

11,401

 

 

 

20,213

 

 

 

25,725

 

Net Income

 

 

41,073

 

 

 

31,153

 

 

 

147,476

 

 

 

100,191

 

Net Income Attributable to
   Non-Controlling Interests

 

 

18,923

 

 

 

13,743

 

 

 

64,387

 

 

 

43,304

 

Net Income Attributable to PJT Partners Inc.

 

$

22,150

 

 

$

17,410

 

 

$

83,089

 

 

$

56,887

 

Net Income Per Share of Class A Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.87

 

 

$

0.69

 

 

$

3.26

 

 

$

2.26

 

Diluted

 

$

0.79

 

 

$

0.68

 

 

$

3.08

 

 

$

2.20

 

Weighted-Average Shares of Class A Common
   Stock Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

25,372,621

 

 

 

25,193,359

 

 

 

25,479,195

 

 

 

25,220,031

 

Diluted

 

 

44,642,704

 

 

 

26,644,324

 

 

 

43,831,639

 

 

 

26,630,957

 

See notes to condensed consolidated financial statements.

5


 

PJT Partners Inc.

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

(Dollars in Thousands)

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net Income

 

$

41,073

 

 

$

31,153

 

 

$

147,476

 

 

$

100,191

 

Other Comprehensive Income (Loss), Net of Tax
   
Currency Translation Adjustment

 

 

3,721

 

 

 

(3,518

)

 

 

2,746

 

 

 

(453

)

Comprehensive Income

 

 

44,794

 

 

 

27,635

 

 

 

150,222

 

 

 

99,738

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive Income Attributable to Non-
   Controlling Interests

 

 

20,636

 

 

 

12,181

 

 

 

65,654

 

 

 

43,095

 

Comprehensive Income Attributable to PJT Partners Inc.

 

$

24,158

 

 

$

15,454

 

 

$

84,568

 

 

$

56,643

 

See notes to condensed consolidated financial statements.

6


 

PJT Partners Inc.

Condensed Consolidated Statements of Changes in Equity (Unaudited)

(Dollars in Thousands, Except Share Data)

 

 

Three Months Ended September 30, 2024

 

 

 

Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

Class A

 

 

Class B

 

 

 

 

 

Class A

 

 

Class B

 

 

Additional

 

 

 

 

 

Other

 

 

 

 

 

Non-

 

 

 

 

 

 

Common

 

 

Common

 

 

Treasury

 

 

Common

 

 

Common

 

 

Paid-In

 

 

Retained

 

 

Comprehensive

 

 

Treasury

 

 

Controlling

 

 

 

 

 

 

Stock

 

 

Stock

 

 

Stock

 

 

Stock

 

 

Stock

 

 

Capital

 

 

Earnings

 

 

Income (Loss)

 

 

Stock

 

 

Interests

 

 

Total

 

Balance at June 30, 2024

 

 

33,685,178

 

 

 

134

 

 

 

(9,835,875

)

 

$

337

 

 

$

 

 

$

623,308

 

 

$

167,060

 

 

$

(996

)

 

$

(655,912

)

 

$

713,973

 

 

$

847,770

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

22,150

 

 

 

 

 

 

 

 

 

18,923

 

 

 

41,073

 

Other Comprehensive Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,008

 

 

 

 

 

 

1,713

 

 

 

3,721

 

Dividends Declared ($0.25 Per Share of
   Class A Common Stock)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,954

)

 

 

 

 

 

 

 

 

 

 

 

(5,954

)

Tax Distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17,746

)

 

 

(17,746

)

Equity-Based Compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

44,856

 

 

 

 

 

 

 

 

 

 

 

 

6,144

 

 

 

51,000

 

Net Share Settlement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,458

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,458

)

Deliveries of Vested Shares of
   Class A Common Stock

 

 

63,452

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in Ownership Interest

 

 

 

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

(11,237

)

 

 

 

 

 

 

 

 

 

 

 

(1,594

)

 

 

(12,831

)

Treasury Stock Purchases

 

 

 

 

 

 

 

 

(189,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(23,049

)

 

 

 

 

 

(23,049

)

Balance at September 30, 2024

 

 

33,748,630

 

 

 

132

 

 

 

(10,024,875

)

 

$

338

 

 

$

 

 

$

653,468

 

 

$

183,256

 

 

$

1,012

 

 

$

(678,961

)

 

$

721,413

 

 

$

880,526

 

 

 

 

Nine Months Ended September 30, 2024

 

 

 

Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

Class A

 

 

Class B

 

 

 

 

 

Class A

 

 

Class B

 

 

Additional

 

 

 

 

 

Other

 

 

 

 

 

Non-

 

 

 

 

 

 

Common

 

 

Common

 

 

Treasury

 

 

Common

 

 

Common

 

 

Paid-In

 

 

Retained

 

 

Comprehensive

 

 

Treasury

 

 

Controlling

 

 

 

 

 

 

Stock

 

 

Stock

 

 

Stock

 

 

Stock

 

 

Stock

 

 

Capital

 

 

Earnings

 

 

Income (Loss)

 

 

Stock

 

 

Interests

 

 

Total

 

Balance at December 31, 2023

 

 

32,356,489

 

 

 

144

 

 

 

(8,171,050

)

 

$

324

 

 

$

 

 

$

619,702

 

 

$

118,332

 

 

$

(467

)

 

$

(493,222

)

 

$

616,495

 

 

$

861,164

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

83,089

 

 

 

 

 

 

 

 

 

64,387

 

 

 

147,476

 

Other Comprehensive Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,479

 

 

 

 

 

 

1,267

 

 

 

2,746

 

Dividends Declared ($0.75 Per Share of
   Class A Common Stock)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(18,165

)

 

 

 

 

 

 

 

 

 

 

 

(18,165

)

Tax Distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(23,133

)

 

 

(23,133

)

Equity-Based Compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

151,711

 

 

 

 

 

 

 

 

 

 

 

 

18,534

 

 

 

170,245

 

Net Share Settlement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(31,299

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(31,299

)

Deliveries of Vested Shares of
   Class A Common Stock

 

 

1,392,141

 

 

 

 

 

 

 

 

 

14

 

 

 

 

 

 

(14

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in Ownership Interest

 

 

 

 

 

(12

)

 

 

 

 

 

 

 

 

 

 

 

(86,632

)

 

 

 

 

 

 

 

 

 

 

 

43,863

 

 

 

(42,769

)

Treasury Stock Purchases

 

 

 

 

 

 

 

 

(1,853,825

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(185,739

)

 

 

 

 

 

(185,739

)

Balance at September 30, 2024

 

 

33,748,630

 

 

 

132

 

 

 

(10,024,875

)

 

$

338

 

 

$

 

 

$

653,468

 

 

$

183,256

 

 

$

1,012

 

 

$

(678,961

)

 

$

721,413

 

 

$

880,526

 

(continued)

See notes to condensed consolidated financial statements.

 

 

 

 

7


 

PJT Partners Inc.

Condensed Consolidated Statements of Changes in Equity (Unaudited)

(Dollars in Thousands, Except Share Data)

 

 

Three Months Ended September 30, 2023

 

 

 

Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

Class A

 

 

Class B

 

 

 

 

 

Class A

 

 

Class B

 

 

Additional

 

 

 

 

 

Other

 

 

 

 

 

Non-

 

 

 

 

 

 

Common

 

 

Common

 

 

Treasury

 

 

Common

 

 

Common

 

 

Paid-In

 

 

Retained

 

 

Comprehensive

 

 

Treasury

 

 

Controlling

 

 

 

 

 

 

Stock

 

 

Stock

 

 

Stock

 

 

Stock

 

 

Stock

 

 

Capital

 

 

Earnings

 

 

(Loss)

 

 

Stock

 

 

Interests

 

 

Total

 

Balance at June 30, 2023

 

 

32,251,216

 

 

 

140

 

 

 

(8,030,750

)

 

$

322

 

 

$

 

 

$

541,750

 

 

$

88,149

 

 

$

(562

)

 

$

(480,552

)

 

$

616,084

 

 

$

765,191

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17,410

 

 

 

 

 

 

 

 

 

13,743

 

 

 

31,153

 

Other Comprehensive Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,956

)

 

 

 

 

 

(1,562

)

 

 

(3,518

)

Dividends Declared ($0.25 Per Share of
   Class A Common Stock)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,070

)

 

 

 

 

 

 

 

 

 

 

 

(6,070

)

Tax Distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,832

)

 

 

(9,832

)

Equity-Based Compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

32,931

 

 

 

 

 

 

 

 

 

 

 

 

5,461

 

 

 

38,392

 

Net Share Settlement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,470

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,470

)

Deliveries of Vested Shares of
   Class A Common Stock

 

 

46,537

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in Ownership Interest

 

 

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

4,845

 

 

 

 

 

 

 

 

 

 

 

 

(5,107

)

 

 

(262

)

Treasury Stock Purchases

 

 

 

 

 

 

 

 

(26,815

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,857

)

 

 

 

 

 

(1,857

)

Balance at September 30, 2023

 

 

32,297,753

 

 

 

142

 

 

 

(8,057,565

)

 

$

323

 

 

$

 

 

$

578,055

 

 

$

99,489

 

 

$

(2,518

)

 

$

(482,409

)

 

$

618,787

 

 

$

811,727

 

 

 

 

Nine Months Ended September 30, 2023

 

 

 

Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

Class A

 

 

Class B

 

 

 

 

 

Class A

 

 

Class B

 

 

Additional

 

 

 

 

 

Other

 

 

 

 

 

Non-

 

 

 

 

 

 

Common

 

 

Common

 

 

Treasury

 

 

Common

 

 

Common

 

 

Paid-In

 

 

Retained

 

 

Comprehensive

 

 

Treasury

 

 

Controlling

 

 

 

 

 

 

Stock

 

 

Stock

 

 

Stock

 

 

Stock

 

 

Stock

 

 

Capital

 

 

Earnings

 

 

(Loss)

 

 

Stock

 

 

Interests

 

 

Total

 

Balance at December 31, 2022

 

 

31,062,575

 

 

 

158

 

 

 

(6,583,289

)

 

$

310

 

 

$

 

 

$

502,585