Moelis & Company Reports Third Quarter and First Nine Months 2024 Financial Results; Declares Regular Quarterly Dividend of $0.60 Per Share

NEW YORK--(BUSINESS WIRE)--Moelis & Company (NYSE:MC) today reported financial results for the quarter ended September 30, 2024. The Firm's third quarter GAAP revenues were $273.8 million as compared with $272.2 million in the prior year period. On an Adjusted basis, the Firm's third quarter revenues of $280.7 million increased 1% from the prior year period. The Firm reported third quarter GAAP net income of $19.2 million, or $0.22 per share (diluted). On an Adjusted basis, the Firm reported net income of $18.6 million and $0.22 per share (diluted) for the third quarter of 2024, which compares with a net loss of $11.3 million, or ($0.15) per share, in the prior year period. GAAP and Adjusted net income in the third quarter of 2024 include net tax benefits of approximately $0.01 per share (diluted) related to the settlement of share-based awards.

GAAP revenues for the first nine months of 2024 were $755.8 million. On an Adjusted basis, the Firm's first nine months revenues of $762.8 million increased 18% from the prior year period. The Firm reported GAAP net income of $51.6 million, or $0.61 per share (diluted) for the first nine months of 2024. On an Adjusted basis, the Firm reported net income of $51.4 million, or $0.63 per share (diluted) in the first nine months of 2024, as compared with a net loss of $10.1 million, or $(0.14) per share (diluted), in the prior year period. GAAP and Adjusted net income in the first nine months of 2024 include net tax benefits of approximately $0.15 per share (diluted) related to the settlement of share-based awards.

"I believe our franchise, talent and breadth of expertise has never been stronger. We are well-positioned to drive long-term growth," said Ken Moelis, Chairman and Chief Executive Officer.

The Firm's revenues and net income can fluctuate materially depending on the number, size and timing of completed transactions as well as other factors. Accordingly, financial results in any particular quarter may not be representative of future results over a longer period of time.

Currently 92% of the operating partnership (Moelis & Company Group LP) is owned by the corporate partner (Moelis & Company) and is subject to corporate U.S. federal and state income tax. The remaining 8% is owned by other partners of Moelis & Company Group LP and is primarily subject to U.S. federal tax at the partner level (certain state, local and foreign income taxes are incurred at the company level). The Adjusted results included herein apply certain adjustments from our GAAP results, including the assumption that 100% of the Firm's operating result was taxed at our corporate effective tax rate. We believe the Adjusted results, when presented together with comparable GAAP results, are useful to investors to compare our performance across periods and to better understand our operating results. A reconciliation between our GAAP results and our Adjusted results is presented in the Appendix to this press release.

GAAP and Adjusted (non-GAAP) Selected Financial Data (Unaudited)

		GAAP									Adjusted (non-GAAP)*
		Three Months Ended September 30,
($ in thousands except per share data)		2024			2023			Variance			2024			2023			Variance
Revenues		$	273,755		$	272,179		1	%		$	280,730		$	277,665		1	%
Income (loss) before income taxes			26,659			(10,083)		N/M				26,659			(9,799)		N/M
Provision (benefit) for income taxes			7,419			1,286		477	%			8,018			1,518		428	%
Net income (loss)			19,240			(11,369)		N/M				18,641			(11,317)		N/M
Net income (loss) attributable to noncontrolling interests			2,346			(637)		N/M				-			-		N/M
Net income (loss) attributable to Moelis & Company		$	16,894		$	(10,732)		N/M			$	18,641		$	(11,317)		N/M
Diluted earnings (loss) per share		$	0.22		$	(0.16)		N/M			$	0.22		$	(0.15)		N/M
N/M = not meaningful
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)
		GAAP									Adjusted (non-GAAP)*
		Nine Months Ended September 30,
($ in thousands except per share data)		2024			2023			Variance			2024			2023			Variance
Revenues		$	755,826		$	639,870		18	%		$	762,801		$	645,207		18	%
Income (loss) before income taxes			58,466			(24,943)		N/M				58,843			(14,018)		N/M
Provision (benefit) for income taxes			6,820			(3,891)		N/M				7,411			(3,890)		N/M
Net income (loss)			51,646			(21,052)		N/M				51,432			(10,128)		N/M
Net income (loss) attributable to noncontrolling interests			5,025			(2,012)		N/M				-			-		N/M
Net income (loss) attributable to Moelis & Company		$	46,621		$	(19,040)		N/M			$	51,432		$	(10,128)		N/M
Diluted earnings (loss) per share		$	0.61		$	(0.28)		N/M			$	0.63		$	(0.14)		N/M
N/M = not meaningful
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)

Revenues

We earned GAAP revenues of $273.8 million in the third quarter of 2024, as compared with $272.2 million in the prior year period. On an Adjusted basis, we earned revenues of $280.7 million in the third quarter of 2024, as compared with $277.7 million in the prior year period, representing an increase of 1%. The increase in third quarter revenues is attributable to an increase in M&A revenues, partially offset by a modest decline in non-M&A revenues as compared with the prior year period.

For the first nine months of 2024, we earned GAAP revenues of $755.8 million, as compared with $639.9 million in the prior year period. On an Adjusted basis, we earned revenues of $762.8 million, in the first nine months of 2024, as compared with $645.2 million in the prior year period, or an increase of 18%. The increase in revenues during the first nine months of 2024 is attributable to an increase in revenues and transaction completions across all major product areas.

We continued to execute on our strategy of organic growth, and since our last earnings release, we hired a Biotech Managing Director who will join the firm next month.

Expenses

The following tables set forth information relating to the Firm's operating expenses.

	GAAP											Adjusted (non-GAAP)*
	Three Months Ended September 30,
($ in thousands)	2024				2023				Variance			2024				2023				Variance
Expenses:
Compensation and benefits	$	210,658			$	242,231			-13	%		$	210,576			$	241,489			-13	%
% of revenues		77.0	%			89.0	%						75.0	%			87.0	%
Non-compensation expenses	$	47,533			$	49,974			-5	%		$	47,533			$	49,974			-5	%
% of revenues		17.4	%			18.4	%						16.9	%			18.0	%
Total operating expenses	$	258,191			$	292,205			-12	%		$	258,109			$	291,463			-11	%
% of revenues		94.3	%			107.4	%						91.9	%			105.0	%
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)

	GAAP											Adjusted (non-GAAP)*
	Nine Months Ended September 30,
($ in thousands)	2024				2023				Variance			2024				2023				Variance
Expenses:
Compensation and benefits	$	573,006			$	536,264			7	%		$	572,612			$	535,522			7	%
% of revenues		75.8	%			83.8	%						75.1	%			83.0	%
Non-compensation expenses	$	141,386			$	134,609			5	%		$	141,386			$	134,189			5	%
% of revenues		18.7	%			21.0	%						18.5	%			20.8	%
Total operating expenses	$	714,392			$	670,873			6	%		$	713,998			$	669,711			7	%
% of revenues		94.5	%			104.8	%						93.6	%			103.8	%
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)

Total operating expenses on a GAAP basis were $258.2 million for the third quarter of 2024, as compared with $292.2 million in the prior year period. On an Adjusted basis, operating expenses were $258.1 million for the third quarter of 2024, as compared with $291.5 million in the prior year period. For the first nine months of 2024, total operating expenses on a GAAP basis were $714.4 million. On an Adjusted basis, operating expenses were $714.0 million for the first nine months of 2024 as compared with $669.7 million in the prior year period. The increase in operating expenses in both current year periods is attributable to increased compensation and benefits and non-compensation expenses, as compared with the prior year periods.

Compensation and benefits expenses on a GAAP basis were $210.7 million for the third quarter of 2024, as compared with $242.2 million in the prior year period. Adjusted compensation and benefits expenses were $210.6 million for the third quarter of 2024, as compared with $241.5 million in the prior year period. The decline in compensation and benefits expenses in the third quarter of 2024 is attributable to a lower bonus accrual as compared with the prior year period. For the first nine months of 2024, compensation and benefits expenses on a GAAP basis were $573.0 million, as compared with $536.3 million in the prior year period. On an Adjusted basis, compensation and benefits expenses for the first nine months of 2024 were $572.6 million, as compared with $535.5 million in the prior year period. The increase in compensation and benefits expenses during the first nine months of 2024 is primarily attributable to increased headcount and a higher bonus accrual, as a result of higher revenues earned, as compared with the prior year period.

Non-compensation expenses on a GAAP and Adjusted basis were $47.5 million for the third quarter of 2024, as compared with GAAP and Adjusted non-compensation expenses of $50.0 million in the prior year period. The decline in non-compensation expenses in the third quarter of 2024 is attributable to lower professional fees directly connected to specific completed transactions as compared with the prior year period. For the first nine months of 2024, GAAP and Adjusted non-compensation expenses were $141.4 million as compared with GAAP non-compensation expenses of $134.6 million and Adjusted non-compensation expenses of $134.2 million in the prior year period. The increase in non-compensation expenses in the first nine months of 2024 is primarily attributable to increased headcount as compared to the prior year period.

Other Income (Expenses)

		GAAP												Adjusted (non-GAAP)*
		Three Months Ended September 30,
($ in thousands)		2024				2023				Variance				2024				2023				Variance
Other income (expenses)		$	11,095			$	9,943			12		%		$	4,038			$	3,999			1	%
N/M = not meaningful
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)
		GAAP												Adjusted (non-GAAP)*
		Nine Months Ended September 30,
($ in thousands)		2024				2023				Variance				2024					2023			Variance
Other income (expenses)		$	17,032			$	6,060			181		%		$10,040					$10,486			-4	%
N/M = not meaningful
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)

Other income (expenses) on a GAAP basis was income of $11.1 million for the third quarter of 2024, as compared with $9.9 million in the prior year period. On an Adjusted basis, other income for the third quarter of 2024 was income of $4.0 million, as compared with $4.0 million in the prior year period. In the third quarter of 2024, we recorded a gain to other income of $7.0 million related to the sale of 5.0 million shares of our investment in MA Financial Group Limited. The gains of $7.0 million are included within Adjusted revenues and the adjustment did not impact our GAAP or Adjusted earnings per share.

For the first nine months of 2024, other income (expenses) on a GAAP basis was $17.0 million as compared with income of $6.1 million in the prior year period. On an Adjusted basis, other income for the first nine months of 2024 was $10.0 million as compared with $10.5 million in the prior year period.

Provision for Income Taxes

The corporate partner (Moelis & Company) currently owns 92% of the operating partnership (Moelis & Company Group LP) and is subject to corporate U.S. federal and state income tax on its allocable share of earnings. The remaining 8% of activity is subject to certain state, local and foreign income taxes (including New York City Unincorporated Business Tax), which is accounted for at the partner level through the noncontrolling interests. For Adjusted purposes, we have assumed that 100% of the Firm's third quarter 2024 operating results were taxed at our corporate effective tax rate and together with the excess tax benefit of approximately $1.1 million related to the delivery of equity-based compensation, we have a net tax expense of $8.0 million.

Capital Management and Balance Sheet

Moelis & Company continues to maintain a strong financial position, and as of September 30, 2024, we held cash and liquid investments of $297.7 million and had no debt or goodwill on our balance sheet.

The Board of Directors of Moelis & Company declared a regular quarterly dividend of $0.60 per share. The $0.60 per share will be paid on December 2, 2024 to common stockholders of record on November 4, 2024.

Earnings Call

We will host a conference call beginning at 5:00pm ET on Wednesday, October 23, 2024, accessible via telephone and the internet. Ken Moelis, Chairman and Chief Executive Officer, and Joe Simon, Chief Financial Officer, will review our third quarter 2024 financial results. Following the review, there will be a question and answer session.

Investors and analysts may participate in the live conference call by dialing 1-888-300-4150 (domestic) or 1-646-970-1530 (international) and using access code 8014191. Please dial in 15 minutes before the conference call begins. The conference call will also be accessible as a listen-only audio webcast through the Investor Relations section of the Moelis & Company website at www.moelis.com.

For those unable to listen to the live broadcast, a replay of the call will be available for one month via telephone starting approximately one hour after the live call ends. The replay can be accessed at 1-800-770-2030 (domestic) or 1-609-800-9909 (international); the conference number is 8014191.

About Moelis & Company

Moelis & Company is a leading global independent investment bank that provides innovative strategic advice and solutions to a diverse client base, including corporations, governments and financial sponsors. The Firm assists its clients in achieving their strategic goals by offering comprehensive integrated financial advisory services across all major industry sectors. Moelis & Company's experienced professionals advise clients on their most critical decisions, including mergers and acquisitions, recapitalizations and restructurings, capital markets transactions, private fund raisings and secondary transactions and other corporate finance matters. The Firm serves its clients from 23 locations in North and South America, Europe, the Middle East, Asia and Australia. For further information, please visit: www.moelis.com.

Forward-Looking Statements

This press release contains forward-looking statements, which reflect the Firm's current views with respect to, among other things, its operations and financial performance. You can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "target," "approximately," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are based on certain assumptions and estimates and subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include, but are not limited to, those described under "Risk Factors" discussed in our Annual Report on Form 10-K for the year ended December 31, 2023, subsequent reports filed on Form 10-Q and our other filings with the SEC. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release. In addition, new risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results. The Firm undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

Non-GAAP Financial Measures

The Company prepares its consolidated financial statements using accounting principles generally accepted in the United States (GAAP). From time to time, the Company may disclose certain "non-GAAP financial measures" in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. The Securities and Exchange Commission defines a "non-GAAP financial measure" as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that effectively exclude, or include amounts from the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures disclosed by the Company are provided as additional information to analysts, investors and other stakeholders in order to provide them with greater transparency about, or an alternative method for assessing our financial condition, operating results, or capital adequacy. Adjusted results are a non-GAAP financial measure which provide additional information on management's view of operating results. These measures are not in accordance with, or a substitute for GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, we will also generally define it or present the most directly comparable financial measure calculated and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable GAAP financial measure.

The Company's Adjusted revenues includes amounts reflected within other income (expenses) which are considered the equivalent of revenues for compensation. Such adjustments may include gains on founder investments where our employees and the Moelis advisory platform contributed meaningfully to the value creation; or the mark-to-market impact of equity instruments held by the Company that were originally received as payment for our banking services and included in revenues. We believe these adjustments are useful to allow comparability of period-to-period operating performance and compensation levels.

The Company's Adjusted compensation and benefits expenses may include adjustments reflected within other income (expenses) associated with compensation awards forfeited or returned to the Company by former employees. Management views the credits associated with such forfeitures as an offset to compensation and benefits expenses since the Firm will utilize the forfeited economics to recruit and or retain talent. We believe the netted presentation of forfeiture credits and compensation expenses is useful to allow comparability of period-to-period operating performance.

The Company's Adjusted non-compensation expenses and other income (expenses) may exclude certain one-time items that reduce the comparability of our operating performance as well as the amounts related to revenues and compensation and benefits expenses discussed above and adjustments to our provision for income taxes discussed below. Such adjustments increase the comparability of our financial performance across reporting periods and versus our peers.

The Company's Adjusted provision (benefit) for income taxes is adjusted to illustrate the result as if 100% of the Firm's income is being taxed at our corporate effective tax rates for the periods presented. Adjusted provision (benefit) for income taxes periodically includes the tax impact related to the settlement of share-based awards, the reclassification of TRA liability adjustments, or adjustments to our deferred tax assets and liabilities that occur in connection with new tax legislation. Such adjustments increase the comparability of our financial performance across reporting periods and versus our peers.

The Company's Adjusted basic and diluted shares of Class A common stock outstanding is presented for each period as if all outstanding Class A partnership units have been exchanged into Class A common stock. The Adjusted presentation helps analysts, investors, and other stakeholders understand the effect of the Firm's ownership structure on its results, including the impact of all the Firm's income becoming subject to corporate-level tax.

Appendix

GAAP Consolidated Statement of Operations (Unaudited)

Reconciliation of GAAP to Adjusted (non-GAAP) Financial Information (Unaudited)

Moelis & Company
GAAP Consolidated Statement of Operations
Unaudited
(dollars in thousands, except for share and per share data)

		Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023
Revenues		$	273,755		$	272,179		$	755,826		$	639,870
Expenses
Compensation and benefits			210,658			242,231			573,006			536,264
Occupancy			7,409			7,181			21,571			19,887
Professional fees			8,445			13,525			20,571			25,378
Communication, technology and information services			12,874			11,709			37,108			33,758
Travel and related expenses			8,781			8,394			29,255			28,575
Depreciation and amortization			2,802			2,014			7,611			6,023
Other expenses			7,222			7,151			25,270			20,988
Total Expenses			258,191			292,205			714,392			670,873
Operating income (loss)			15,564			(20,026)			41,434			(31,003)
Other income (expenses)			11,095			9,943			17,032			6,060
Income (loss) before income taxes			26,659			(10,083)			58,466			(24,943)
Provision (benefit) for income taxes			7,419			1,286			6,820			(3,891)
Net income (loss)			19,240			(11,369)			51,646			(21,052)
Net income (loss) attributable to noncontrolling interests			2,346			(637)			5,025			(2,012)
Net income (loss) attributable to Moelis & Company		$	16,894		$	(10,732)		$	46,621		$	(19,040)
Weighted-average shares of Class A common stock outstanding
Basic			72,325,050			68,752,061			71,612,206			68,260,558
Diluted			76,906,271			68,752,061			76,147,357			68,260,558
Net income (loss) attributable to holders of shares of Class A common stock per share
Basic		$	0.23		$	(0.16)		$	0.65		$	(0.28)
Diluted		$	0.22		$	(0.16)		$	0.61		$	(0.28)

Moelis & Company
Reconciliation of GAAP to Adjusted (non-GAAP) Financial Information
Unaudited
(dollars in thousands, except share and per share data)

			Three Months Ended September 30, 2024
Adjusted items			GAAP					Adjustments						Adjusted (non-GAAP)
Revenues			$		273,755			$		6,975			(a)	$		280,730
Compensation and benefits					210,658					(82	)		(b)			210,576
Non-compensation expenses					47,533					-						47,533
Other income (expenses)					11,095					(7,057	)		(a)(b)			4,038
Income (loss) before income taxes					26,659					-						26,659
Provision (benefit) for income taxes					7,419					599			(c)			8,018
Net income (loss)					19,240					(599	)					18,641
Net income (loss) attributable to noncontrolling interests					2,346					(2,346	)		(d)			-
Net income (loss) attributable to Moelis & Company			$		16,894			$		1,747				$		18,641
Weighted-average shares of Class A common stock outstanding
Basic					72,325,050					6,060,135			(d)			78,385,185
Diluted					76,906,271					6,060,135			(d)			82,966,406
Net income (loss) attributable to holders of shares of Class A common stock per share
Basic			$		0.23									$		0.24
Diluted			$		0.22									$		0.22
(a)	Reflects a reclassification of $7.0 million of other income to revenues related to a gain associated with the Firm's sale of 5.0 million shares of MA Financial Group Limited.
(b)	Reflects a reclassification of $0.1 million of other income (expenses) to compensation and benefits associated with the forfeiture or return of compensation by former employees.
(c)	An adjustment has been made to illustrate the result as if 100% of the Firm's income is being taxed at our corporate effective tax rate for the period stated; together with the tax benefit related to the settlement of share-based awards of $1.1 million, we have a net tax expense of $8.0 million.
(d)	Assumes all outstanding Class A partnership units have been exchanged into Class A common stock.

Moelis & Company
Reconciliation of GAAP to Adjusted (non-GAAP) Financial Information
Unaudited
(dollars in thousands, except share and per share data)

			Three Months Ended September 30, 2023
Adjusted items			GAAP				Adjustments					Adjusted (non-GAAP)
Revenues			$	272,179			$	5,486			(a)	$	277,665
Compensation and benefits				242,231				(742	)		(b)		241,489
Non-compensation expenses				49,974				-					49,974
Other income (expenses)				9,943				(5,944	)		(a)(b)(c)		3,999
Income (loss) before income taxes				(10,083	)			284					(9,799	)
Provision (benefit) for income taxes				1,286				232			(c)(d)		1,518
Net income (loss)				(11,369	)			52					(11,317	)
Net income (loss) attributable to noncontrolling interests				(637	)			637			(e)		-
Net income (loss) attributable to Moelis & Company			$	(10,732	)		$	(585	)			$	(11,317	)
Weighted-average shares of Class A common stock outstanding
Basic				68,752,061				6,286,214			(e)		75,038,275
Diluted				68,752,061				6,286,214			(e)		75,038,275
Net income (loss) attributable to holders of shares of Class A common stock per share
Basic			$	(0.16	)							$	(0.15	)
Diluted			$	(0.16	)							$	(0.15	)
(a)	Reflects a reclassification of $5.5 million of other income to revenues related to shares received as partial payment for advisory services provided on certain transactions.
(b)	Reflects a reclassification of $0.7 million of other income to compensation and benefits expense associated with the forfeiture or return of compensation by former employees.
(c)	Tax Receivable Agreement liability related adjustments are made to other income (expenses) for GAAP purposes. The adjustment of $0.3 million is reclassified to the provision for income taxes line.
(d)	An adjustment has been made to illustrate the result as if 100% of the Firm's income is being taxed at our corporate effective tax rate. Our adjusted tax provision excludes any benefits or costs related to the adjustment to the TRA liability originated from past partnership unit exchanges; such adjustment for this period was a net expense of $0.3 million, which is not included in the corporate tax provision for the period presented.
(e)	Assumes all outstanding Class A partnership units have been exchanged into Class A common stock.

Moelis & Company
Reconciliation of GAAP to Adjusted (non-GAAP) Financial Information
Unaudited
(dollars in thousands, except share and per share data)

			Nine Months Ended September 30, 2024
Adjusted items			GAAP			Adjustments				Adjusted (non-GAAP)
Revenues			$	755,826		$	6,975		(a)	$	762,801
Compensation and benefits				573,006			(394)		(b)		572,612
Non-compensation expenses				141,386			-				141,386
Other income (expenses)				17,032			(6,992)		(a)(b)(c)		10,040
Income (loss) before income taxes				58,466			377				58,843
Provision (benefit) for income taxes				6,820			591		(c)(d)		7,411
Net income (loss)				51,646			(214)				51,432
Net income (loss) attributable to noncontrolling interests				5,025			(5,025)		(e)		-
Net income (loss) attributable to Moelis & Company			$	46,621		$	4,811			$	51,432
Weighted-average shares of Class A common stock outstanding
Basic				71,612,206			6,121,966		(e)		77,734,172
Diluted				76,147,357			6,121,966		(e)		82,269,323
Net income (loss) attributable to holders of shares of Class A common stock per share
Basic			$	0.65						$	0.66
Diluted			$	0.61						$	0.63
(a)	Reflects a reclassification of $7.0 million of other income to revenues related to a gain associated with the Firm's sale of 5.0 million shares of MA Financial Group Limited.
(b)	Reflects a reclassification of $0.4 million of other income (expenses) to compensation and benefits associated with the forfeiture or return of compensation by former employees.
(c)	Tax Receivable Agreement liability related adjustments are made to other income (expenses) for GAAP purposes. The adjustment of $0.4 million is reclassified to the provision for income taxes line.
(d)	An adjustment has been made to illustrate the result as if 100% of the Firm's income is being taxed at our corporate effective tax rate for the period stated, together with the tax benefit related to the settlement of share-based awards of $12.7 million, we have a net tax expense of $7.4 million. Our Adjusted tax provision excludes any benefits or costs related to the adjustment to the step-up in tax basis in Group LP assets and TRA liabilities in connection with past partnership unit exchanges; such adjustment for this period was a net expense of $0.4 million, which is not included in the corporate tax provision for the period presented.
(e)	Assumes all outstanding Class A partnership units have been exchanged into Class A common stock.

Moelis & Company
Reconciliation of GAAP to Adjusted (non-GAAP) Financial Information
Unaudited
(dollars in thousands, except share and per share data)

			Nine Months Ended September 30, 2023
Adjusted items			GAAP			Adjustments				Adjusted (non-GAAP)
Revenues			$	639,870		$	5,337		(a)	$	645,207
Compensation and benefits				536,264			(742)		(b)		535,522
Non-compensation expenses				134,609			(420)		(c)		134,189
Other income (expenses)				6,060			4,426		(a)(b)(c)(d)		10,486
Income (loss) before income taxes				(24,943)			10,925				(14,018)
Provision (benefit) for income taxes				(3,891)			1		(d)(e)		(3,890)
Net income (loss)				(21,052)			10,924				(10,128)
Net income (loss) attributable to noncontrolling interests				(2,012)			2,012		(f)		-
Net income (loss) attributable to Moelis & Company			$	(19,040)		$	8,912			$	(10,128)
Weighted-average shares of Class A common stock outstanding
Basic				68,260,558			6,222,685		(f)		74,483,243
Diluted				68,260,558			6,222,685		(f)		74,483,243
Net income (loss) attributable to holders of shares of Class A common stock per share
Basic			$	(0.28)						$	(0.14)
Diluted			$	(0.28)						$	(0.14)
(a)	Reflects a reclassification of $5.3 million of other income to revenues related to shares received as partial payment for advisory services provided on certain transactions.
(b)	Reflects a reclassification of $0.7 million of other income to compensation and benefits expense associated with the forfeiture or return of compensation by former employees.
(c)	Reflects adjustments of $10.4 million for expenses related to a regulatory settlement with the U.S. Securities and Exchange Commission.
(d)	Tax Receivable Agreement liability related adjustments are made to other income (expenses) for GAAP purposes. The adjustment of $0.5 million is reclassified to the provision for income taxes line.
(e)	An adjustment has been made to illustrate the result as if 100% of the Firm's income is being taxed at our corporate effective tax rate for the period stated; together with the tax benefit related to the settlement of share-based awards of $3.6 million, we have a net tax benefit of $3.9 million. Our adjusted tax provision excludes any benefits or costs related to the adjustment to the TRA liability originated from past partnership unit exchanges; such adjustment for this period was a net expense of $0.5 million, which is not included in the corporate tax provision for the period presented.

Contacts

Investor Contact:
Matt Tsukroff
Moelis & Company
t: + 1 212 883 3800
m: [phone]
[e-mail]

Media Contact:
Alyssa Castelli
Moelis & Company
t: + 1 212 883 3802
m: [phone]
[e-mail]