PJT Partners Inc. (NYSE:PJT) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 08:30 am ET


PJT Partners Inc. (NYSE:PJT) Q4 2018 Earnings Conference Call Transcript


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Good day, everyone, and welcome to the PJT Partners Full Year and Fourth Quarter Earnings Call. My name is Sue. I'm your event manager. During the presentation, your lines will remain on listen-only. (Operator Instructions) I'd like to advise all parties the conference is being recorded.

And now I'd like to hand over to your host, Sharon Pearson, Head of Investor Relations. Please go ahead.

Sharon Pearson

Thanks very much, Sue. Good morning and welcome to the PJT Partners' full year and fourth quarter 2018 conference call.

Joining me today is Paul Taubman, our Chairman and Chief Executive Officer; Helen Meates, our Chief Financial Officer.

Before I turn the call over to Paul, I want to point out that during the course of this conference call, we may make a number of forward-looking statements. These forward-looking statements are subject to various risks and uncertainties, and there are important factors that could cause the actual outcomes to differ materially from those indicated in these statements. We believe that these factors are described in the Risk Factors section contained in PJT Partners' 2017 Form 10-K, which is available on our website at pjtpartners.com.

I want to remind you that the Company assumes no duty to update any forward-looking statements and that the presentation we make today contains non-GAAP financial measures, which we believe are meaningful in evaluating the Company's performance. For detailed disclosure on these non-GAAP metrics and their GAAP reconciliations, you should refer to the financial data contained within the press release we issued this morning, also available on our website.

And with that I'll turn the call over to Paul.

Paul J. Taubman

Thank you, Sharon. Good morning, and thank you all for joining us. Earlier today we reported our full-year results for 2018, which are consistent with the goals we articulated at the beginning of the year and reflect the significant progress we are making across all of our businesses.

Firm wide revenues grew 16% year over year to $580 million. Strategic Advisory revenues grew more than 40% as we began to realize the financial benefits of our sustained investments. Park Hill achieved record results led by strong performance within real estate and secondary advisory and our leading Restructuring business performed well on a relative basis but experienced a modest decline in revenues given the backdrop of a benign credit environment.

Now turning to each of our businesses in more detail. Turning to Park Hill. Park Hill delivered record results in 2018. Of note, this performance was achieved without any individual Park Hill business having a record year. This growth was driven by a substantial increase in real estate revenues and continued strength in secondary advisory. The growth trajectory for Park Hill in 2019 is accelerating, underpinned by a substantial increase in our mandated backlog.

Turning to Strategic Advisory. The hard work and consistent investment we have made in our Strategic Advisory business has now begun to show through in our financial results. Our substantial revenue growth in Strategic Advisory was principally driven by our