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Houlihan Lokey (HLI)

Houlihan Lokey is a global investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, and valuation. The firm serves corporations, institutions, and governments worldwide with offices in the United States, Europe, the Middle East, and the Asia-Pacific region. Independent advice and intellectual rigor are hallmarks of the firm's commitment to client success across its advisory services. Houlihan Lokey is the No. 1 M&A advisor for the past six consecutive years in the U.S., the No. 1 global restructuring advisor for the past seven consecutive years, and the No. 1 global M&A fairness opinion advisor over the past 20 years, all based on number of transactions and according to data provided by Refinitiv (formerly Thomson Reuters).

Company profile

Ticker
HLI
Exchange
Website
CEO
Scott Beiser
Employees
Location
Fiscal year end
Industry (SIC)
Former names
HOULIHAN LOKEY HOWARD & ZUKIN INC
SEC CIK
Subsidiaries
Houlihan Lokey Capital (Holdings) Limited • Houlihan Lokey Capital, Inc. • Houlihan Lokey Financial Advisors, Inc. • Houlihan Lokey (Europe) GmbH • Houlihan Lokey Corporation • Houlihan Lokey Advisors, LLC • Houlihan Lokey (UK Holdings) Limited ...

HLI stock data

Analyst ratings and price targets

Last 3 months

Calendar

4 Aug 22
24 Sep 22
31 Mar 23
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Mar 22 Mar 21 Mar 20 Mar 19
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 489.32M 489.32M 489.32M 489.32M 489.32M 489.32M
Cash burn (monthly) 114.92M 24.44M (no burn) (no burn) 92.67M (no burn)
Cash used (since last report) 326.71M 69.48M n/a n/a 263.48M n/a
Cash remaining 162.61M 419.85M n/a n/a 225.85M n/a
Runway (months of cash) 1.4 17.2 n/a n/a 2.4 n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
16 Jun 22 Schriesheim Robert A CLASS A COMMON STOCK Buy Acquire P No No 77.43 192 14.87K 29,678
27 May 22 Gold Irwin CLASS B COMMON STOCK CLASS A COMMON STOCK Dispose Z Yes No 0 13,764 0 1,154,703
27 May 22 Gold Irwin CLASS B COMMON STOCK CLASS A COMMON STOCK Grant Acquire A No No 0 13,764 0 13,764
27 May 22 Beiser Scott L CLASS B COMMON STOCK CLASS A COMMON STOCK Dispose Z Yes No 0 21,008 0 900,143
27 May 22 Beiser Scott L CLASS B COMMON STOCK CLASS A COMMON STOCK Grant Acquire A No No 0 21,008 0 21,008
27 May 22 Adelson Scott Joseph CLASS B COMMON STOCK CLASS A COMMON STOCK Dispose Z Yes No 0 50,502 0 890,690
27 May 22 Adelson Scott Joseph CLASS B COMMON STOCK CLASS A COMMON STOCK Grant Acquire A No No 0 50,502 0 50,502
48.4% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 316 336 -6.0%
Opened positions 42 45 -6.7%
Closed positions 62 51 +21.6%
Increased positions 105 134 -21.6%
Reduced positions 137 116 +18.1%
13F shares Current Prev Q Change
Total value 5.46B 5.51B -0.9%
Total shares 68.49M 67.68M +1.2%
Total puts 9.7K 16.3K -40.5%
Total calls 25K 30.8K -18.8%
Total put/call ratio 0.4 0.5 -26.7%
Largest owners Shares Value Change
HL Voting Trust 20.24M $1.65B +13.6%
Vanguard 5.03M $397.01M -0.3%
BLK Blackrock 3.72M $293.86M +0.4%
Earnest Partners 3.66M $288.87M +4.0%
Kayne Anderson Rudnick Investment Management 2.83M $223.55M -2.8%
Alliancebernstein 2.41M $190.56M -3.5%
Burgundy Asset Management 1.63M $128.3M +2.4%
BAC Bank Of America 1.44M $113.67M +1.8%
TROW T. Rowe Price 1.38M $108.94M -1.3%
Bamco 1.3M $102.68M -0.0%
Largest transactions Shares Bought/sold Change
HL Voting Trust 20.24M +2.42M +13.6%
Jacobs Levy Equity Management 592.96K +441.2K +290.7%
Robeco Institutional Asset Management B.V. 834 -268.27K -99.7%
GWM Advisors 40.42K -262.51K -86.7%
Acadian Asset Management 4.73K -219.8K -97.9%
Parametric Portfolio Associates 0 -208.97K EXIT
Schroder Investment Management 367.6K -178.6K -32.7%
Offit Capital Advisors 0 -161.72K EXIT
FHI Federated Hermes 304.26K -141.59K -31.8%
Earnest Partners 3.66M +140.07K +4.0%

Financial report summary

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Risks
  • Risks Related to Our Business
  • Our acquisitions, joint ventures, and strategic investments may result in additional risks and uncertainties in our businesses.
  • Goodwill and other intangible assets represent a significant portion of our assets, and an impairment of these assets could have a material adverse effect on our financial condition and results of operations.
  • Our international operations are subject to certain risks, which may affect our revenue.
  • Fluctuations in foreign currency exchange rates could adversely affect our results.
  • The cost of compliance with international broker-dealer, employment, labor, benefits, and tax regulations may adversely affect our business and hamper our ability to expand internationally.
  • Our ability to retain our Managing Directors and our other senior professionals, as well as our ability to successfully identify, recruit and develop talent, is critical to the success of our business.
  • Changing market conditions can adversely affect our business in many ways, including by reducing the volume of the transactions involving our business, which could materially reduce our revenue.
  • We are subject to reputational and legal risk arising from, among other things, actual or alleged employee misconduct, conflicts of interest, failure to meet client expectations or other operational failures.
  • We may be unable to execute on our growth initiatives, business strategies, or operating plans.
  • We may enter into new lines of business, which may result in additional risks and uncertainties in our business.
  • We are subject to risks relating to our operations, including our information and technology, which could harm our business.
  • Our revenue in any given period is dependent on the number of fee-paying clients in such period and the size of transactions on which we are advising, and a significant reduction in the number of fee-paying clients in any given period could reduce our revenue and adversely affect our operating results in such period.
  • Our clients may be unable to pay us for our services.
  • We may not be able to generate sufficient cash in the future to service any future indebtedness.
  • We face strong competition from other financial advisory firms, many of which have the ability to offer clients a wider range of products and services than those we offer, which could cause us to lose engagements to competitors and subject us to pricing pressures that could materially adversely affect our revenue and profitability.
  • We face substantial litigation risks.
  • Extensive and evolving regulation of our business and the businesses of our clients exposes us to the potential for significant penalties and fines due to compliance failures, increases our costs and may result in limitations on the manner in which our business is conducted.
  • The dual class structure of our common stock and the ownership of our Class B common stock by the HL Holders through the HL Voting Trust have the effect of concentrating voting control with the HL Voting Trust for the foreseeable future, which limits the ability of our Class A common stockholders to influence corporate matters. We are controlled by the HL Voting Trust, whose interests may differ from those of our Class A common stockholders.
  • We are a “controlled company” within the meaning of the New York Stock Exchange listing standards and, as a result, qualify for, and rely on, exemptions from certain corporate governance requirements. Holders of Class A common stock do not have the same protections afforded to stockholders of companies that are subject to such requirements.
  • Our anti-takeover provisions could prevent or delay a change in control of our Company, even if such change in control would be beneficial to our stockholders.
  • The provision of our amended and restated certificate of incorporation requiring exclusive venue in the Court of Chancery in the State of Delaware for certain types of lawsuits may have the effect of discouraging lawsuits against our directors, officers and stockholders.
  • Our share price may decline due to the large number of shares eligible for future sale.
  • While we currently pay a quarterly cash dividend to our stockholders, we may change our dividend policy at any time and we may not continue to declare cash dividends.
  • The trading price of our Class A common stock may be volatile or may decline regardless of our operating performance, which could cause the value of our Class A common stock to decline.
  • We may issue shares of preferred stock in the future, which could make it difficult for another company to acquire us or could otherwise adversely affect holders of our Class A common stock, which could depress the price of our Class A common stock.
  • The scale, scope, and duration of the impact of the COVID-19 pandemic on our business are unpredictable and depend on a number of factors outside of our control.
Management Discussion
  • Item 7.    Management’s Discussion and Analysis of Financial Condition and Results of Operations
  • This Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read together with our historical financial statements and related notes included elsewhere in this Form 10-K. Actual results and the timing of events may differ significantly from those expressed or implied in any forward-looking statements due to a number of factors, including those set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” and elsewhere in this Form 10-K. For discussion related to changes in financial condition and the results of operations for fiscal year 2020-related items, refer to Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for fiscal year 2021, which was filed with the Securities and Exchange Commission on May 21, 2021.
  • Established in 1972, Houlihan Lokey is a leading global independent investment bank with expertise in mergers and acquisitions, capital markets, financial restructurings, and financial and valuation advisory. With offices the United States, Europe, the Middle East, and the Asia-Pacific region, the Company serves a diverse set of clients including corporations, financial sponsors and government agencies worldwide. Houlihan Lokey’s financial professionals deliver meaningful and differentiated advice to clients on strategy and financial decisions employing a rigorous analytical approach coupled with deep product and industry expertise.

Content analysis

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Positive
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Uncertain
Constraining
Legalese
Litigous
Readability
H.S. freshman Avg
New words: agent, closure, covenant, description, difficult, Entry, Exhibit, extinguished, Field, foregoing, hereto, lieu, qualified, release, revaluation, SOFR, spread, technical, text, warrant
Removed: lower, modified, reduced, registration, relied, retained, retrospective, transition