Focus Financial Partners Inc. (NASDAQ:FOCS) Q1 2023 Results Conference Call May 4, 2023 8:30 AM ET

Company Participants

John McGranahan - General Counsel & Corporate Secretary

Rudy Adolf - Founder and CEO

Jim Shanahan - CFO

John McGranahan

Good morning, everyone. Before we begin, let me remind you that during the course of this call, we may make a number of forward-looking statements. We call your attention to the fact that Focus' results may, of course, differ from these statements. These statements are based on assumptions made by and information currently available to Focus Financial Partners and involve risks and uncertainties that could cause the results of Focus to materially differ from these statements. Focus has made filings with the SEC, which lists some of the factors that may cause its results to differ materially from these statements. And finally, Focus assumes no duty and does not undertake to update any such forward-looking statements. In addition, due to our pending merger with Clayton, Dubilier & Rice, we will not be taking questions following Rudy and Jim's prepared remarks and will not be providing earnings guidance for the second quarter of 2023.

With that, I will turn it over to our Founder and CEO, Rudy Adolf. Rudy?

Rudy Adolf

Thanks, Rusty. Good morning, everyone, and thank you for joining us today. This morning, we announced our first quarter results with $557.5 million of revenues, adjusted net income, excluding tax adjustments per share of $0.69 and tax adjustments per share of $0.20. While slightly below our expectations, our financial performance continued to reflect the resiliency of our business despite the challenging backdrop during the quarter. Our partners continue to deliver excellent service to their clients and manage their business as well, remaining agile during the quarter. Providing highly personalized, integrated advice is extremely valuable to their clients, especially during periods of volatility. According to Echelon Partners, industry M&A transaction volumes rebounded in the first quarter from a slower fourth quarter last year. They noted that buyers' demand and seller supply is strong, and they anticipate activity to increase as the year progresses. Year-to-date, our M&A activity has been strong with 16 closed transactions, including two new partner firms and 14 mergers on behalf of our partners. Our differentiated ability to source, structure and execute these transactions remains a core element of our value proposition to growth-oriented firms. With the largest M&A team in the independent wealth management space, we continue to bring industry-leading scale to benefit our partner firms and their clients through acquisition.