PJT Partners Inc. (NYSE:PJT) Q2 2020 Earnings Conference Call - Final Transcript

Jul 28, 2020 • 08:30 am ET

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PJT Partners Inc. (NYSE:PJT) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator Instructions] We will hear first from Devin Ryan with JMP Securities.

Analyst
Devin Ryan

Great. Good morning, everyone.

Executive
Paul J. Taubman

Good morning, Devin.

Executive
Helen T. Meates

Good morning.

Analyst
Devin Ryan

So, I guess, I want to start with the outlook. And maybe I didn't catch this, but I didn't hear any update around kind of expectations for revenue growth on the year. I apologize if I missed that, but I wanted to just make sure that's still the expectation here, I guess, first off.

And then, just more broadly on the M&A landscape. We've heard from several of the early earnings calls about some green shoots in activity just as the market -- if broader markets have recovered and financings started to stabilize a bit here but still a lot of uncertainty. So, I'm curious kind of what you guys are specifically seeing in the backdrop today and with the election coming and still some uncertainty, whether you think that could change.

Executive
Paul J. Taubman

Okay. Well, first of all, we do continue to expect to grow our revenues this year. I think these results just bear out everything that we have said about our prospects and our optimism. So, thank you for giving us that opportunity to clarify that point, Devin.

Second, with respect to the macro backdrop, I mean, clearly, we are in the early stages of fighting this global health crisis. And I think any initial hopes for just a very quick spring back to life as we knew it previously, increasingly looks more remote and more distant. And that really is consistent with what our view has been from day one, which is that this is, unfortunately, a long-term slog, and that there will be steps forward and steps back, and there will be all sorts of shifts and movements, where there will be companies who will benefit from the change in consumer and business behaviors, and others who will clearly be challenged for the long-term. And that has, I think, implications for restructuring activity.

We expect restructuring activity to persist at elevated levels for a considerable period of time. And I think at the same time, it will cause more and more companies to ask themselves whether or not they can continue to operate as independent stand-alone companies, those who have been weakened. I think those who have emerged stronger or with holes in their strategic core competencies will ask themselves whether or not there will be opportunities to strengthen their business through acquiring capabilities or creating efficiencies or economies of scale or scope.

And then I think most importantly, and to some extent, that's what we're seeing right now is the next wave where companies are asking themselves whether or not they're appropriately capitalized for this new world order. And as a result, we continue to believe that as companies embark upon a deleveraging process, while they will certainly avail themselves of the public capital markets, we also believe that for many companies, they will continue to shed non-core assets, attempt to repair and restore their balance