Moelis & Company (NYSE:MC) Q3 2024 Results Conference Call October 24, 2024 5:00 PM ET

Company Participants

Matt Tsukroff - Investor Relations
Kenneth Moelis - Chairman and Chief Executive Officer
Joseph Simon - Chief Financial Officer

Conference Call Participants

James Yaro - Goldman Sachs
Ryan Kenny - Morgan Stanley
Aidan Hall - KBW
Mike Brown - Wells Fargo Securities
Brendan O'Brien - Wolfe Research
Brennan Hawken - UBS
Ken Worthington - JPMorgan
Devin Ryan - Citizens JMP

Operator

Good afternoon, and welcome to the Moelis & Company's Earnings Conference Call for the Third Quarter of 2024. To begin, I'll turn the call over to Mr. Matt Tsukroff. Please go ahead.

Matt Tsukroff

Good afternoon, and thank you for joining us for Moelis & Company's third quarter 2024 financial results conference call. On the phone today are Ken Moelis, Chairman and CEO; and Joe Simon, Chief Financial Officer.

Before we begin, I would like to note that, the remarks made on this call may contain certain forward-looking statements, which are subject to various risks and uncertainties, including those identified from time-to-time in the Risk Factors section of Moelis & Company's filings with the SEC. Actual results could differ materially from those currently anticipated. The firm undertakes no obligation to update any forward-looking statements. Our comments today include references to certain adjusted financial measures. We believe these measures, when presented together with comparable GAAP measures, are useful to investors to compare our results across several periods and to better understand our operating results. The reconciliation of these adjusted financial measures with the relevant GAAP financial information and other information required by Reg G is provided in the firm's earnings release, which can be found on our Investor Relations website at investors.moelis.com.

I'll now turn the call over to Joe to discuss our results.

Joseph Simon

Thanks, Matt. Good afternoon, everyone.

On today's call, I'll go through our financial results, and then Ken will comment further on the business. We reported We reported $281 million of adjusted revenues in the third quarter. Our adjusted revenues for the first nine months were $763 million, up 18% from the prior year period. The year-over-year increase in revenues for the first nine months of the year is driven by growth across all major product areas, and our year-to-date revenue distribution remains approximately 60% M&A, 40% non-M&A.

Moving to expenses. Our third quarter compensation expense was accrued at 75% consistent with the first two quarters. Our non-compensation expenses in the third quarter were $48 million and we expect a similar non-comp expense result in quarter four. Moving to taxes. Our underlying corporate tax rate was 34% consistent with the prior quarter. Regarding capital allocation, the Board declared a regular quarterly dividend of $0.60 per share consistent with the prior period. Lastly, we continue to maintain a strong balance sheet with $298 million of cash and no debt.