May 03, 2018 • 04:30 pm ET

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Presentation
Operator
Operator

Good afternoon, and welcome to the Greenhill First Quarter 2018 Earnings Results. All participants will be in listen-only mode. (Operator Instructions) Please note, this event is being recorded.

I would now like to turn the conference over to Patrick Suehnholz. Please go ahead.

Executive
Patrick Suehnholz

Thank you. Good afternoon, and thank you all for joining us today for Greenhill's First Quarter 2018 Financial Results Conference Call. I am Patrick Suehnholz, Greenhill's Head of Investor Relations; and joining me on the call today is Scott Bok, our Chief Executive Officer.

Today's call may include forward-looking statements. These statements are based on our current expectations regarding future events that, by their nature, are outside of the firm's control and are subject to known and unknown risks, uncertainties and assumptions. The firm's actual results and financial condition may differ, possibly materially, from what is indicated in those forward-looking statements. For a discussion of some of the risks and factors that could affect the firm's future results, please see our filings with the Securities and Exchange Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. Neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. We are under no duty to update any of these forward-looking statements after the date on which they are made.

I would now like to turn the call over to Scott Bok.

Executive
Scott Bok

Thank you, Patrick. We reported first quarter revenue of $87.5 million and operating profit margin of 22% and earnings per share of $0.21. Adjusting for a tax charge on the vesting of restricted stock awards pursuant to new economy rules that took effect at the beginning of last year, our earnings per share was $0.34. In addition to highlighting on this call the key drivers of our performance, we will provide an update on our progress in relation to the recapitalization plan we announced last September.

Focusing first on our top line, this was our best first quarter ever in terms of advisory revenue. The primary driver for the quarter was the very strong performance by our European M&A franchise. This obviously reflects a dramatic improvement from last year and supports our often stated view that, despite what was a quiet year for us in that region in 2017, we continue to have a very strong advisory franchise in Europe.

It was also another strong quarter for us in capital advisory, driven entirely by a high level of activity in secondary transactions. Partially offsetting these areas of strength was the fact that we had a less robust start to the year in US M&A and restructuring advisory and in Australia, Japan, and Latin America. It continues to be our view that conditions are generally favorable for M&A activity globally, particularly for the larger transactions that have historically been our primary focus. Meanwhile, we continue to see strong momentum in