us-gaap:AccountingStandardsUpdate201613Memberus-gaap:AccountingStandardsUpdate201613Memberfalse--12-31P3YP4YP3Y0001596967Q20001596967mc:PrivateFundsAdvisoryReceivablesMember2021-01-012021-06-300001596967us-gaap:NoncontrollingInterestMember2020-01-012020-03-310001596967us-gaap:TreasuryStockCommonMember2021-03-310001596967mc:PrivateFundsAdvisoryReceivablesMember2020-01-012020-06-300001596967us-gaap:CommonClassBMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2019-12-310001596967mc:AtlasCrestInvestmentCorpMember2021-06-300001596967us-gaap:CommonClassAMember2020-03-310001596967srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001596967mc:MoelisAssetManagementLPMember2020-01-012020-06-300001596967mc:AtlasCrestInvestmentCorpMember2020-12-310001596967us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300001596967us-gaap:CommonClassBMember2020-03-310001596967us-gaap:RetainedEarningsMember2021-06-300001596967us-gaap:EmployeeStockOptionMember2014-04-012014-04-300001596967us-gaap:TreasuryStockCommonMember2020-12-310001596967mc:RestrictedStockUnitsRSUsAndOtherStockBasedAwardsMember2019-12-310001596967country:US2020-01-012020-06-300001596967mc:MoelisAndCompanyGroupLPMember2021-06-300001596967us-gaap:CommonClassAMember2020-06-300001596967srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:TreasuryStockCommonMember2019-12-310001596967mc:CommunicationTechnologyAndInformationServicesMember2020-04-012020-06-300001596967us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300001596967us-gaap:AdditionalPaidInCapitalMember2021-03-310001596967srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-01-012020-03-310001596967us-gaap:EmployeeStockOptionMember2020-04-012020-06-300001596967us-gaap:CommonClassAMembermc:MoelisAndCompanyGroupLPMember2020-12-310001596967mc:PreIPOPartnershipUnitsMember2021-04-012021-06-300001596967us-gaap:CommonClassAMembermc:MoelisAndCompanyGroupLPMember2021-06-300001596967us-gaap:StandbyLettersOfCreditMember2021-01-012021-06-300001596967us-gaap:TreasuryStockCommonMember2021-06-300001596967mc:MoelisAndCompanyManagerLLCMembermc:AircraftLeaseEnteredIntoDuringAugust2014Member2020-01-012020-06-300001596967us-gaap:SecuredDebtMember2021-06-300001596967us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300001596967us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001596967mc:PrivateFundsAdvisoryReceivablesMember2021-06-300001596967mc:RestrictedStockUnitsRSUsAndOtherStockBasedAwardsMember2020-12-310001596967mc:AtlasCrestInvestmentCorpMember2021-06-300001596967us-gaap:ConstructionInProgressMember2020-12-3100015969672021-03-310001596967us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001596967us-gaap:CommonClassBMember2014-11-012014-11-300001596967us-gaap:AdditionalPaidInCapitalMember2021-06-300001596967us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001596967srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310001596967us-gaap:CommonClassAMembermc:ShareRepurchasePlanMember2021-06-300001596967mc:ShortTermReceivablesMember2021-03-310001596967mc:EmployeesMembersrt:MaximumMemberus-gaap:NotesReceivableMember2021-01-012021-06-300001596967us-gaap:RetainedEarningsMember2019-12-310001596967srt:MinimumMembermc:OfficeEquipmentAndFurnitureAndFixturesMember2021-01-012021-06-300001596967us-gaap:AdditionalPaidInCapitalMember2019-12-310001596967us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001596967us-gaap:CorporateJointVentureMember2020-12-310001596967srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMember2019-12-310001596967us-gaap:AdditionalPaidInCapitalMember2020-03-310001596967us-gaap:CommonClassAMember2021-04-012021-06-300001596967srt:EuropeMember2021-01-012021-06-300001596967us-gaap:CommonClassBMember2021-01-012021-03-310001596967srt:EuropeMember2020-04-012020-06-300001596967srt:ScenarioPreviouslyReportedMember2020-12-310001596967mc:PrivateFundsAdvisoryReceivablesMemberus-gaap:AccountingStandardsUpdate201613Member2019-12-310001596967mc:RestOfWorldMember2020-04-012020-06-300001596967us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-3100015969672019-12-310001596967mc:EmployeesMemberus-gaap:NotesReceivableMember2021-01-012021-06-300001596967us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001596967srt:MinimumMember2021-01-012021-06-300001596967us-gaap:CorporateJointVentureMember2021-03-042021-03-040001596967us-gaap:LeaseholdImprovementsMember2021-06-300001596967mc:MoelisAndCompanyGroupLPMember2020-12-310001596967mc:PrivateFundsAdvisoryReceivablesMember2019-12-310001596967us-gaap:CorporateJointVentureMember2021-06-300001596967mc:RestrictedStockAndRestrictedStockUnitsMemberus-gaap:CommonClassAMember2021-01-012021-06-300001596967country:US2021-04-012021-06-300001596967srt:EuropeMember2020-12-310001596967us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001596967mc:ShortTermReceivablesMember2020-03-310001596967mc:RestOfWorldMember2020-01-012020-06-300001596967srt:EuropeMember2021-04-012021-06-300001596967us-gaap:CommonClassAMember2021-01-012021-06-300001596967us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300001596967us-gaap:CommonClassBMember2021-06-300001596967us-gaap:AccountingStandardsUpdate201613Member2019-12-310001596967us-gaap:NoncontrollingInterestMember2021-06-300001596967mc:RestrictedStockAndRestrictedStockUnitsMemberus-gaap:CommonClassAMember2020-04-012020-06-300001596967srt:ScenarioPreviouslyReportedMember2019-12-310001596967us-gaap:TreasuryStockCommonMember2021-04-012021-06-300001596967mc:EmployeesMember2021-06-3000015969672020-01-012020-03-310001596967us-gaap:OfficeEquipmentMember2021-06-300001596967us-gaap:NoncontrollingInterestMember2019-12-310001596967mc:RestOfWorldMember2021-06-300001596967mc:MoelisAndCompanyManagerLLCMembermc:AircraftLeaseEnteredIntoDuringAugust2014Member2020-04-012020-06-300001596967mc:RestrictedStockUnitsRSUsAndOtherStockBasedAwardsMember2020-06-300001596967us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2021-06-300001596967mc:RestOfWorldMember2020-12-310001596967us-gaap:CommonStockMember2020-01-012020-06-300001596967us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:RevolvingCreditFacilityMember2021-01-012021-06-300001596967us-gaap:NoncontrollingInterestMember2021-04-012021-06-300001596967us-gaap:EmployeeStockOptionMember2021-01-012021-06-300001596967us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300001596967us-gaap:OfficeEquipmentMember2020-12-310001596967us-gaap:CorporateJointVentureMember2020-03-042020-03-040001596967us-gaap:NoncontrollingInterestMember2020-12-310001596967mc:ShortTermReceivablesMember2021-01-012021-06-300001596967mc:RestOfWorldMember2021-01-012021-06-300001596967mc:RevolvingCreditFacilityDueAtMayTwentyFourTwoThousandAndTwentyTwoMember2021-01-012021-06-300001596967mc:PreIPOPartnershipUnitsMember2020-01-012020-06-300001596967us-gaap:CorporateJointVentureMember2020-02-192020-02-190001596967mc:EmployeesMember2020-12-310001596967us-gaap:NoncontrollingInterestMember2020-04-012020-06-300001596967mc:RevolvingCreditFacilityDueAtMayTwentyFourTwoThousandAndTwentyTwoMember2021-06-300001596967us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001596967mc:RevolvingCreditFacilityDueAtMayTwentyFourTwoThousandAndTwentyTwoMember2021-05-240001596967srt:EuropeMember2021-06-300001596967us-gaap:SubsequentEventMember2021-07-292021-07-290001596967us-gaap:RetainedEarningsMember2020-06-300001596967us-gaap:CommonStockMember2020-04-012020-06-300001596967srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:AdditionalPaidInCapitalMember2019-12-3100015969672020-01-012020-06-300001596967mc:PreIPOPartnershipUnitsMember2020-04-012020-06-300001596967country:US2021-01-012021-06-300001596967us-gaap:EmployeeStockOptionMember2021-04-012021-06-300001596967us-gaap:AdditionalPaidInCapitalMember2020-06-300001596967us-gaap:FairValueMeasurementsRecurringMember2021-06-300001596967mc:MoelisAndCompanyManagerLLCMembermc:AircraftLeaseEnteredIntoDuringAugust2014Member2021-04-012021-06-300001596967us-gaap:FairValueMeasurementsRecurringMember2020-12-310001596967us-gaap:TreasuryStockCommonMember2021-01-012021-03-310001596967us-gaap:CommonClassAMember2020-12-310001596967us-gaap:CommonClassBMember2020-04-012020-06-3000015969672021-01-012021-03-310001596967us-gaap:EmployeeStockOptionMember2014-11-090001596967us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001596967us-gaap:SecuredDebtMember2021-01-012021-06-300001596967us-gaap:TreasuryStockCommonMember2020-04-012020-06-300001596967us-gaap:CommonClassAMember2020-01-012020-03-310001596967mc:PrivateFundsAdvisoryReceivablesMember2020-06-300001596967us-gaap:CommonClassAMember2021-01-012021-03-310001596967us-gaap:TreasuryStockCommonMember2020-03-310001596967mc:ShortTermReceivablesMember2020-06-300001596967us-gaap:CommonClassAMember2020-01-012020-06-300001596967mc:RestrictedStockUnitsRSUsAndOtherStockBasedAwardsMember2021-01-012021-06-300001596967us-gaap:CommonClassAMember2021-03-310001596967mc:CumulativeEffectPeriodOfAdoptionAdjustmentBeforeTaxMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:RetainedEarningsMember2020-01-010001596967us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001596967us-gaap:RetainedEarningsMember2021-01-012021-03-310001596967us-gaap:CommonClassBMember2020-12-310001596967us-gaap:CommonClassBMember2019-12-310001596967us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-3000015969672021-04-012021-06-300001596967mc:AtlasCrestInvestmentCorpMember2020-12-310001596967us-gaap:NoncontrollingInterestMember2021-01-012021-03-310001596967mc:ShortTermReceivablesMember2019-12-310001596967mc:ShortTermReceivablesMember2020-04-012020-06-300001596967srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:RetainedEarningsMember2019-12-310001596967mc:AtlasCrestInvestmentCorpMember2021-04-012021-06-300001596967us-gaap:EmployeeStockOptionMember2020-12-310001596967us-gaap:NoncontrollingInterestMember2020-03-310001596967country:US2020-04-012020-06-300001596967us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001596967us-gaap:SubsequentEventMemberus-gaap:CommonClassAMembermc:ShareRepurchasePlanMember2021-07-280001596967us-gaap:CommonClassBMember2021-03-310001596967us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001596967country:US2021-06-300001596967mc:EmployeesMembersrt:MinimumMemberus-gaap:NotesReceivableMember2021-01-012021-06-300001596967country:US2020-12-310001596967mc:CommunicationTechnologyAndInformationServicesMember2021-01-012021-06-300001596967mc:PrivateFundsAdvisoryReceivablesMember2021-03-310001596967us-gaap:RetainedEarningsMember2020-04-012020-06-300001596967mc:MoelisAndCompanyLLCMember2020-12-310001596967mc:RestrictedStockUnitsRSUsAndOtherStockBasedAwardsMembersrt:MaximumMember2021-01-012021-06-300001596967us-gaap:EmployeeStockOptionMember2014-04-012021-06-300001596967us-gaap:CommonClassAMember2021-07-150001596967mc:MoelisAssetManagementLPMember2021-01-012021-06-300001596967us-gaap:CommonClassBMember2021-07-150001596967us-gaap:CommonClassAMember2021-06-300001596967us-gaap:NoncontrollingInterestMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2019-12-310001596967mc:RestOfWorldMember2021-04-012021-06-300001596967us-gaap:TreasuryStockCommonMember2020-06-300001596967us-gaap:FurnitureAndFixturesMember2020-12-310001596967us-gaap:FurnitureAndFixturesMember2021-06-300001596967srt:ScenarioPreviouslyReportedMembermc:ShortTermReceivablesMember2020-12-310001596967us-gaap:RetainedEarningsMember2020-03-310001596967mc:PreIPOPartnershipUnitsMember2021-01-012021-06-300001596967mc:CommunicationTechnologyAndInformationServicesMember2021-04-012021-06-300001596967us-gaap:StandbyLettersOfCreditMember2021-06-300001596967mc:EmployeesMemberus-gaap:NotesReceivableMember2020-01-012020-06-300001596967srt:MaximumMembermc:OfficeEquipmentAndFurnitureAndFixturesMember2021-01-012021-06-300001596967mc:RestrictedStockAndRestrictedStockUnitsMemberus-gaap:CommonClassAMember2020-01-012020-06-300001596967mc:MoelisAssetManagementLPMember2020-12-310001596967mc:MoelisAndCompanyLLCMember2021-06-300001596967mc:ShortTermReceivablesMember2021-04-012021-06-300001596967us-gaap:CommonClassBMember2020-06-300001596967us-gaap:RetainedEarningsMember2020-01-012020-03-310001596967us-gaap:EmployeeStockOptionMember2020-01-012020-06-300001596967us-gaap:RetainedEarningsMember2021-03-310001596967us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001596967us-gaap:EmployeeStockOptionMember2014-01-012014-12-310001596967us-gaap:TreasuryStockCommonMember2019-12-3100015969672021-01-012021-06-300001596967us-gaap:AdditionalPaidInCapitalMember2020-12-310001596967mc:PrivateFundsAdvisoryReceivablesMember2020-12-310001596967srt:ScenarioPreviouslyReportedMembermc:ShortTermReceivablesMember2019-12-310001596967us-gaap:CommonClassBMember2021-04-012021-06-300001596967us-gaap:RetainedEarningsMember2020-12-310001596967mc:PrivateFundsAdvisoryReceivablesMember2021-04-012021-06-300001596967us-gaap:NoncontrollingInterestMember2020-06-300001596967us-gaap:CorporateJointVentureMember2010-04-010001596967mc:ShortTermReceivablesMember2020-12-310001596967us-gaap:NoncontrollingInterestMember2021-03-3100015969672020-12-310001596967srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:CommonClassAMember2019-12-310001596967us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300001596967mc:RestrictedStockAndRestrictedStockUnitsMemberus-gaap:CommonClassAMember2021-04-012021-06-300001596967srt:EuropeMember2020-01-012020-06-300001596967mc:RestrictedStockUnitsRSUsAndOtherStockBasedAwardsMember2020-01-012020-06-300001596967us-gaap:PrimeRateMemberus-gaap:RevolvingCreditFacilityMember2021-01-012021-06-300001596967mc:MoelisAndCompanyManagerLLCMembermc:AircraftLeaseEnteredIntoDuringAugust2014Member2021-01-012021-06-300001596967mc:CommunicationTechnologyAndInformationServicesMember2020-01-012020-06-300001596967mc:AtlasCrestInvestmentCorpMember2021-01-012021-06-300001596967mc:MoelisAssetManagementLPMember2021-06-300001596967mc:RevolvingCreditFacilityDueAtMayTwentyFourTwoThousandAndTwentyTwoMember2021-05-242021-05-240001596967srt:ScenarioPreviouslyReportedMembermc:PrivateFundsAdvisoryReceivablesMember2020-12-310001596967srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2019-12-310001596967us-gaap:EmployeeStockOptionMember2020-04-3000015969672021-06-300001596967us-gaap:CommonClassBMember2021-01-012021-06-300001596967us-gaap:AccountingStandardsUpdate201613Membermc:ShortTermReceivablesMember2019-12-310001596967us-gaap:CommonClassAMembermc:ShareRepurchasePlanMember2019-02-280001596967us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001596967us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001596967us-gaap:EmployeeStockOptionMember2021-06-300001596967us-gaap:RevolvingCreditFacilityMember2021-06-300001596967mc:ShortTermReceivablesMember2021-06-300001596967mc:RestrictedStockUnitsRSUsAndOtherStockBasedAwardsMembersrt:MinimumMember2021-01-012021-06-300001596967mc:PrivateFundsAdvisoryReceivablesMember2020-03-310001596967mc:RestrictedStockUnitsRSUsAndOtherStockBasedAwardsMember2021-06-300001596967mc:MoelisAssetManagementLPMember2020-04-012020-06-300001596967us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001596967us-gaap:AccountingStandardsUpdate201613Membermc:CumulativeEffectPeriodOfAdoptionAdjustmentTaxMemberus-gaap:RetainedEarningsMember2020-01-010001596967us-gaap:CommonClassAMember2019-12-3100015969672020-04-012020-06-300001596967srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:RetainedEarningsMember2020-01-010001596967srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMember2020-01-012020-03-310001596967us-gaap:CommonClassAMember2020-04-012020-06-300001596967mc:MoelisAssetManagementLPMember2021-04-012021-06-300001596967us-gaap:RevolvingCreditFacilityMember2020-12-3100015969672020-03-310001596967us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001596967us-gaap:LeaseholdImprovementsMember2020-12-310001596967us-gaap:CommonClassAMember2014-04-012014-04-300001596967us-gaap:CorporateJointVentureMember2021-02-172021-02-170001596967us-gaap:RetainedEarningsMember2021-04-012021-06-300001596967us-gaap:CommonClassBMember2014-04-012014-04-3000015969672020-06-300001596967us-gaap:TreasuryStockCommonMember2020-01-012020-03-310001596967mc:ShortTermReceivablesMember2020-01-012020-06-300001596967mc:PrivateFundsAdvisoryReceivablesMember2020-04-012020-06-300001596967mc:UnvestedRestrictedStockUnitsRsusMemberus-gaap:CommonClassAMember2020-04-012020-06-300001596967srt:MaximumMember2021-01-012021-06-30xbrli:purexbrli:sharesiso4217:USDiso4217:USDxbrli:shares

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

Or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                    to                 

Commission File Number: 001-36418

 

 

Moelis & Company

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

46-4500216

(State or other jurisdiction

of incorporation or organization)

 

(I.R.S. Employer

Identification No.)

399 Park Avenue, 5th Floor, New York NY

 

10022

(Address of principal executive offices)

 

(Zip Code)

 

(212883-3800

(Registrant’s telephone number, including area code)

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title

Trading Symbol

Name of Exchange on which registered

Class A Common Stock

MC

New York Stock Exchange (NYSE)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities and Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes  ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:

 

Large accelerated filer 

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

Emerging growth company

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act  ☐

Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Exchange Act). ☐ Yes  No

As of July 15, 2021, there were 61,008,468 shares of Class A common stock, par value $0.01 per share, and 4,852,219 shares of Class B common stock, par value $0.01 per share, outstanding.

 

 


Table of Contents

 

TABLE OF CONTENTS

 

 

 

 

Page

 

 

 

 

Part I. Financial Information

 

 

Item 1.

Financial Statements

 

3

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

27

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

37

Item 4.

Controls and Procedures

 

37

Part II. Other Information

 

38

Item 1.

Legal Proceedings

 

38

Item 1A.

Risk Factors

 

38

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

38

Item 3.

Defaults Upon Senior Securities

 

38

Item 4.

Mine Safety Disclosures

 

38

Item 5.

Other Information

 

39

Item 6.

Exhibits

 

40

Signatures

 

 

41

 

 

 

2


Table of Contents

 

PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements

Condensed Consolidated Financial Statements (Unaudited)

 

 

 

Page

 

 

 

Condensed Consolidated Statements of Financial Condition as of June 30, 2021 and December 31, 2020

 

4

Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2021 and 2020

 

5

Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2021 and 2020

 

6

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2020

 

7

Condensed Consolidated Statements of Changes in Equity for the three and six months ended June 30, 2021 and 2020

 

8

Notes to Condensed Consolidated Financial Statements

 

10

 

3


Table of Contents

 

Moelis & Company

Condensed Consolidated Statements of Financial Condition

(Unaudited)

(dollars in thousands, except per share amounts)

 

 

 

June 30, 

 

December 31, 

 

 

2021

 

2020

Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

196,451

 

$

202,477

Restricted cash

 

 

1,077

 

 

807

Receivables:

 

 

 

 

 

 

Accounts receivable, net of allowance for credit losses of $4,354 and $3,775 as of June 30, 2021 and December 31, 2020, respectively

 

 

72,212

 

 

89,297

Accrued and other receivables

 

 

27,489

 

 

11,916

Total receivables

 

 

99,701

 

 

101,213

Deferred compensation

 

 

15,979

 

 

12,004

Investments

 

 

130,369

 

 

211,826

Right-of-use assets

 

 

167,865

 

 

177,069

Equipment and leasehold improvements, net

 

 

56,992

 

 

49,977

Deferred tax assets

 

 

421,384

 

 

424,345

Prepaid expenses and other assets

 

 

18,196

 

 

16,726

Total assets

 

$

1,108,014

 

$

1,196,444

Liabilities and Equity

 

 

 

 

 

 

Compensation payable

 

$

187,358

 

$

220,058

Accounts payable, accrued expenses and other liabilities

 

 

7,391

 

 

25,026

Amount due pursuant to tax receivable agreement

 

 

324,620

 

 

307,581

Deferred revenue

 

 

11,586

 

 

2,692

Lease liabilities

 

 

192,266

 

 

196,614

Total liabilities

 

 

723,221

 

 

751,971

Commitments and Contingencies (See Note 11)

 

 

 

 

 

 

Class A common stock, par value $0.01 per share (1,000,000,000 shares authorized, 66,740,855 issued and 61,008,468 outstanding at June 30, 2021; 1,000,000,000 authorized, 61,986,927 issued and 58,027,844 outstanding at December 31, 2020)

 

 

667

 

 

620

Class B common stock, par value $0.01 per share (1,000,000,000 shares authorized, 4,852,219 issued and outstanding at June 30, 2021; 1,000,000,000 authorized, 5,948,750 issued and outstanding at December 31, 2020)

 

 

49

 

 

59

Treasury stock, at cost; 5,732,387 and 3,959,083 shares as of June 30, 2021 and December 31, 2020, respectively

 

 

(248,093)

 

 

(152,170)

Additional paid-in-capital

 

 

1,152,104

 

 

1,052,322

Retained earnings (accumulated deficit)

 

 

(493,485)

 

 

(420,682)

Accumulated other comprehensive income (loss)

 

 

954

 

 

(201)

Total Moelis & Company equity

 

 

412,196

 

 

479,948

Noncontrolling interests

 

 

(27,403)

 

 

(35,475)

Total equity

 

 

384,793

 

 

444,473

Total liabilities and equity

 

$

1,108,014

 

$

1,196,444

 

See notes to the condensed consolidated financial statements (unaudited).

 

 

4


Table of Contents

 

Moelis & Company

Condensed Consolidated Statements of Operations

(Unaudited)

(dollars in thousands, except per share amounts)

 

 

 

Three Months Ended June 30, 

 

Six Months Ended June 30, 

 

 

2021

 

2020

 

2021

 

2020

Revenues

 

$

360,907

 

$

159,938

 

$

624,773

 

$

313,644

Expenses

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

214,017

 

 

149,616

 

 

370,516

 

 

244,736

Occupancy

 

 

6,689

 

 

7,673

 

 

14,384

 

 

14,904

Professional fees

 

 

5,802

 

 

5,195

 

 

11,801

 

 

9,431

Communication, technology and information services

 

 

8,216

 

 

7,563

 

 

16,875

 

 

15,955

Travel and related expenses

 

 

2,870

 

 

1,548

 

 

4,480

 

 

9,492

Depreciation and amortization

 

 

1,637

 

 

1,076

 

 

3,086

 

 

2,275

Other expenses

 

 

3,458

 

 

4,419

 

 

12,970

 

 

9,561

Total expenses

 

 

242,689

 

 

177,090

 

 

434,112

 

 

306,354

Operating income (loss)

 

 

118,218

 

 

(17,152)

 

 

190,661

 

 

7,290

Other income and (expenses)

 

 

2,762

 

 

(3,277)

 

 

5,941

 

 

(4,937)

Income (loss) before income taxes

 

 

120,980

 

 

(20,429)

 

 

196,602

 

 

2,353

Provision (benefit) for income taxes

 

 

27,778

 

 

(11,385)

 

 

27,602

 

 

(18,729)

Net income (loss)

 

 

93,202

 

 

(9,044)

 

 

169,000

 

 

21,082

Net income (loss) attributable to noncontrolling interests

 

 

13,861

 

 

(3,312)

 

 

23,130

 

 

1,684

Net income (loss) attributable to Moelis & Company

 

$

79,341

 

$

(5,732)

 

$

145,870

 

$

19,398

Weighted-average shares of Class A common stock outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

63,150,538

 

 

56,130,614

 

 

62,102,403

 

 

54,449,690

Diluted

 

 

67,554,777

 

 

56,130,614

 

 

67,147,825

 

 

58,362,500

Net income (loss) per share attributable to holders of shares of Class A common stock

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.26

 

$

(0.10)

 

$

2.35

 

$

0.36

Diluted

 

$

1.17

 

$

(0.10)

 

$

2.17

 

$

0.33

 

See notes to the condensed consolidated financial statements (unaudited).

5


Table of Contents

 

Moelis & Company

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

(dollars in thousands)

 

 

 

 

Three Months Ended June 30, 

 

Six Months Ended June 30, 

 

 

2021

 

2020

 

2021

 

2020

Net income (loss)

 

$

93,202

 

$

(9,044)

 

$

169,000

 

$

21,082

Foreign currency translation adjustment, net of tax

 

 

2,042

 

 

(95)

 

 

1,298

 

 

(1,725)

Other comprehensive income (loss)

 

 

2,042

 

 

(95)

 

 

1,298

 

 

(1,725)

Comprehensive income (loss)

 

 

95,244

 

 

(9,139)

 

 

170,298

 

 

19,357

Less: Comprehensive income (loss) attributable to noncontrolling interests

 

 

14,093

 

 

(3,329)

 

 

23,273

 

 

1,341

Comprehensive income (loss) attributable to Moelis & Company

 

$

81,151

 

$

(5,810)

 

$

147,025

 

$

18,016

 

See notes to the condensed consolidated financial statements (unaudited).

6


Table of Contents

 

Moelis & Company

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(dollars in thousands)

 

 

 

Six Months Ended June 30, 

 

 

2021

 

2020

Cash flows from operating activities

 

 

 

 

 

 

Net income (loss)

 

$

169,000

 

$

21,082

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

 

 

Bad debt expense

 

 

1,301

 

 

1,576

Depreciation and amortization

 

 

3,086

 

 

2,275

Equity-based compensation

 

 

80,004

 

 

67,634

Deferred tax provision

 

 

24,206

 

 

(16,266)

Other

 

 

(5,433)

 

 

5,819

Changes in assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

15,614

 

 

(2,733)

Accrued and other receivables

 

 

(14,679)

 

 

(151)

Prepaid expenses and other assets

 

 

(2,797)

 

 

(378)

Deferred compensation

 

 

(3,988)

 

 

(1,878)

Compensation payable

 

 

(32,221)

 

 

(77,887)

Accounts payable, accrued expenses and other liabilities

 

 

(13,411)

 

 

166

Deferred revenue

 

 

8,897

 

 

1,644

Dividends received

 

 

2,279

 

 

1,942

Net cash provided by (used in) operating activities

 

 

231,858

 

 

2,845

Cash flows from investing activities

 

 

 

 

 

 

Purchase of investments

 

 

(116,802)

 

 

(129,934)

Proceeds from sales of investments

 

 

201,834

 

 

202,478

Notes issued to employees

 

 

              —

 

 

(200)

Note payments received from employees

 

 

70

 

 

            —

Purchase of equipment and leasehold improvements

 

 

(10,101)

 

 

(21,658)

Net cash provided by (used in) investing activities

 

 

75,001

 

 

50,686

Cash flows from financing activities

 

 

 

 

 

 

Dividends and distributions

 

 

(218,334)

 

 

(105,770)

Proceeds from exercise of stock options

 

 

              —

 

 

11,923

Treasury stock purchases

 

 

(95,923)

 

 

(32,402)

Net cash provided by (used in) financing activities

 

 

(314,257)

 

 

(126,249)

Effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash

 

 

1,642

 

 

(2,183)

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

 

(5,756)

 

 

(74,901)

Cash, cash equivalents, and restricted cash, beginning of period

 

 

203,284

 

 

168,572

Cash, cash equivalents, and restricted cash, end of period

 

$

197,528

 

$

93,671

Supplemental cash flow disclosure:

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

 

Income taxes

 

$

24,464

 

$

1,628

Other non-cash activity

 

 

 

 

 

 

Cumulative effect adjustment upon adoption of ASU 2016-13

 

$

              —

 

$

364

Dividend equivalents issued

 

$

28,209

 

$

14,621

Class A Partnership Units or other equity converted into Class A Common Stock

 

$

4,109

 

$

5,725

Forfeiture of fully-vested Group LP units or other equity units

 

$

25

 

$

96

 

See notes to the condensed consolidated financial statements (unaudited).

7


Table of Contents

 

Moelis & Company

Condensed Consolidated Statements of Changes in Equity

(Unaudited)

(dollars in thousands, except share amounts)

 

Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

Retained

 

Accumulated

 

 

 

 

 

 

 

 

Class A

 

Class B

 

 

 

Class A

 

Class B

 

 

 

 

Additional

 

Earnings

 

Other

 

 

 

 

 

 

 

 

Common

 

Common

 

Treasury

 

Common

 

Common

 

Treasury

 

Paid-In

 

(Accumulated

 

Comprehensive

 

Noncontrolling

 

Total

 

 

Stock

 

Stock

 

Stock

 

Stock

 

Stock

 

Stock

 

Capital

 

Deficit)

 

Income (Loss)

 

Interests

 

 Equity

 

Balance as of January 1, 2021

 

61,986,927

 

 

5,948,750

 

 

(3,959,083

)

$

 

620

 

$

 

59

 

$

 

(152,170

)

$

 

1,052,322

 

$

 

(420,682

)

$

 

(201

)

$

 

(35,475

)

$

 

444,473

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

66,529

 

 

 

 

 

 

9,269

 

 

 

75,798

 

Equity-based compensation

 

3,612,341

 

 

 

 

 

 

 

36

 

 

 

 

 

 

 

 

 

41,508

 

 

 

 

 

 

 

 

 

9,419

 

 

 

50,963

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(655

)

 

 

(89

)

 

 

(744

)

Dividends declared ($0.55 per share of Class A common stock) and tax distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,131

 

 

 

(39,013

)

 

 

 

 

 

(5,803

)

 

 

(39,685

)

Treasury Stock Purchases

 

 

 

 

 

(1,363,934

)

 

 

 

 

 

 

 

 

(74,211

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(74,211

)

Equity-based payments to non-employees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

108

 

 

 

 

 

 

 

 

 

 

 

 

108

 

Issuance of Class A common stock and cancellation of Class B common stock in connection with offerings and other exchanges

 

1,049,293

 

 

(1,049,293

)

 

 

 

 

10

 

 

 

(10

)

 

 

 

 

 

2,161

 

 

 

 

 

 

 

 

 

1,742

 

 

 

3,903

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(25

)

 

 

 

 

 

 

 

 

 

 

 

(25

)

Balance as of March 31, 2021

 

66,648,561

 

 

4,899,457

 

 

(5,323,017

)

$

 

666

 

$

 

49

 

$

 

(226,381

)

$

 

1,101,205

 

$

 

(393,166

)

$

 

(856

)

$

 

(20,937

)

$

 

460,580

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

79,341

 

 

 

 

 

 

13,861

 

 

 

93,202

 

Equity-based compensation

 

45,056

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27,699

 

 

 

 

 

 

 

 

 

1,342

 

 

 

29,041

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,810

 

 

 

232

 

 

 

2,042

 

Dividends declared ($2.55 per share of Class A Common Stock) and tax distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23,078

 

 

 

(179,660

)

 

 

 

 

 

(22,067

)

 

 

(178,649

)

Treasury Stock Purchases

 

 

 

 

 

(409,370

)

 

 

 

 

 

 

 

 

(21,712

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(21,712

)

Equity-based payments to non-employees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

83

 

 

 

 

 

 

 

 

 

 

 

 

83

 

Issuance of Class A common stock and cancellation of Class B common stock in connection with offerings and other exchanges

 

47,238

 

 

(47,238

)

 

 

 

 

1

 

 

 

 

 

 

 

 

 

39

 

 

 

 

 

 

 

 

 

166

 

 

 

206

 

Balance as of June 30, 2021

 

66,740,855

 

 

4,852,219

 

 

(5,732,387

)

$

 

667

 

$

 

49

 

$

 

(248,093

)

$

 

1,152,104

 

$

 

(493,485

)

$

 

954

 

$

 

(27,403

)

$

 

384,793

 

 

See notes to the condensed consolidated financial statements (unaudited).

 

 

8


Table of Contents

 

Condensed Consolidated Statements of Changes in Equity

(Unaudited)

(dollars in thousands, except share amounts)

 

 

Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

Retained

 

Accumulated

 

 

 

 

 

 

 

 

Class A

 

Class B

 

 

 

Class A

 

Class B

 

 

 

 

Additional

 

Earnings

 

Other

 

 

 

 

 

 

 

 

Common

 

Common

 

Treasury

 

Common

 

Common

 

Treasury

 

Paid-In

 

(Accumulated

 

Comprehensive

 

Noncontrolling

 

Total

 

 

Stock

 

Stock

 

Stock

 

Stock

 

Stock

 

Stock

 

Capital

 

Deficit)

 

Income (Loss)

 

Interests

 

 Equity

 

Balance as of January 1, 2020

 

52,773,617

 

 

10,397,915

 

 

(2,757,558

)

$

 

528

 

$

 

104

 

$

 

(107,836

)

$

 

872,791

 

$

 

(324,192

)

$

 

1,432

 

$

 

(49,000

)

$

 

393,827

 

Cumulative effect adjustment upon adoption of ASU 2016-13