Moelis & Company Reports Second Quarter and First Half 2022 Financial Results; Repurchased 2.8 Million Shares During the First Half of 2022; Declared Regular Quarterly Dividend of $0.60 Per Share

• Second quarter GAAP revenues of $242.5 million; second quarter Adjusted revenues of $237.4 million, down 34% from the prior year period
• First half GAAP revenues of $544.6 million; first half Adjusted revenues of $535.7 million, down 14% from the first half of 2021
• GAAP net income of $0.56 per share (diluted) for the second quarter of 2022 and $1.49 per share (diluted) for the first half of 2022; Adjusted net income of $0.57 per share (diluted) for the second quarter of 2022 and $1.52 per share (diluted) for the first half of 2022
• Second quarter 2022 Adjusted pre-tax margin of 24.9%; first half of 2022 Adjusted pre-tax margin of 27.3%
• Continued to execute on organic growth strategy:
  • Added 19 Managing Directors year-to-date through internal development and key external hires
  • Includes two Managing Directors hired in the United States since our last earnings release; one with a focus on the Food & Beverage sector and the other to expand our M&A capabilities
• Fortress balance sheet with cash and short term investments of $276.6 million and no debt or goodwill
  • During the second quarter, we repurchased 0.8 million shares of our common stock for a total cost of $34.9 million; during the first half of 2022, we repurchased 2.8 million shares for a total cost of $132.8 million
  • Year-to-date, through July 26, we have repurchased 3.0 million shares
  • Declared quarterly dividend of $0.60 per share

NEW YORK--(BUSINESS WIRE)--Moelis & Company (NYSE: MC) today reported financial results for the second quarter ended June 30, 2022. The Firm's second quarter 2022 GAAP revenues were $242.5 million as compared with $360.9 million in the prior year period. On an Adjusted basis, the Firm’s second quarter revenues of $237.4 million decreased 34% from a record in the prior year period. The Firm reported second quarter 2022 GAAP net income of $39.0 million, or $0.56 per share (diluted). On an Adjusted basis, the Firm reported net income of $43.2 million or $0.57 per share (diluted) for the second quarter of 2022, which compares with net income of $90.0 million or $1.19 per share (diluted) in the prior year period.

GAAP revenues for the first half of 2022 were $544.6 million. Adjusted revenues for the first half of 2022 were $535.6 million and represented a decrease of 14% from a record in the prior year period. GAAP net income for the period was $104.7 million, or $1.49 per share (diluted), as compared with $145.9 million, or $2.17 per share (diluted), in the first half of 2021. On an Adjusted basis, the Firm reported net income of $116.2 million, or $1.52 per share (diluted), in the first half of 2022, as compared with $166.1 million, or $2.21 per share (diluted), in the prior year period. GAAP and Adjusted net income in the first half of 2022 include net tax benefits of approximately $0.12 per share related to the settlement of share based awards.

"The second quarter marked another period of solid results for our firm. We continued to execute for our clients in a challenging operating environment as they turn to us for advice in these volatile and uncertain times. Looking ahead, I remain excited about our people, our market position and our ability to provide exceptional results for our clients and shareholders," said Ken Moelis, Chairman and Chief Executive Officer.

The Firm’s revenues and net income can fluctuate materially depending on the number, size and timing of completed transactions as well as other factors. Accordingly, financial results in any particular quarter may not be representative of future results over a longer period of time.

Currently 92% of the operating partnership (Moelis & Company Group LP) is owned by the corporate partner (Moelis & Company) and is subject to corporate U.S. federal and state income tax. The remaining 8% is owned by other partners of Moelis & Company Group LP and is primarily subject to U.S. federal tax at the partner level (certain state and local and foreign income taxes are incurred at the company level). The Adjusted results included herein apply certain adjustments from our GAAP results, including the assumption that 100% of the Firm’s second quarter 2022 operating result was taxed at our corporate effective tax rate. We believe the Adjusted results, when presented together with comparable GAAP results, are useful to investors to compare our performance across periods and to better understand our operating results. A reconciliation between our GAAP results and our Adjusted results is presented in the Appendix to this press release.

GAAP and Adjusted (non-GAAP) Selected Financial Data (Unaudited)

	GAAP							Adjusted (non-GAAP)*
	Three Months Ended June 30,
($ in thousands except per share data)	2022		2021		2022 vs. 2021 Variance			2022		2021		2022 vs. 2021 Variance
Revenues	$	242,520	$	360,907		-33	%	$	237,444	$	360,907		-34	%
Income (loss) before income taxes		59,153		120,980		-51	%		59,153		120,980		-51	%
Provision (benefit) for income taxes		15,296		27,778		-45	%		15,926		31,022		-49	%
Net income (loss)		43,857		93,202		-53	%		43,227		89,958		-52	%
Net income (loss) attributable to noncontrolling interests		4,894		13,861		-65	%		—		—	N/M
Net income (loss) attributable to Moelis & Company	$	38,963	$	79,341		-51	%	$	43,227	$	89,958		-52	%
Diluted earnings (loss) per share	$	0.56	$	1.17		-52	%	$	0.57	$	1.19		-52	%
N/M = not meaningful
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)

	GAAP							Adjusted (non-GAAP)*
	Six Months Ended June 30,
($ in thousands except per share data)	2022		2021		2022 vs. 2021 Variance			2022		2021		2022 vs. 2021 Variance
Revenues	$	544,608	$	624,773		-13	%	$	535,652	$	624,773		-14	%
Income (loss) before income taxes		146,345		196,602		-26	%		146,345		196,602		-26	%
Provision (benefit) for income taxes		28,894		27,602		5	%		30,102		30,485		-1	%
Net income (loss)		117,451		169,000		-31	%		116,243		166,117		-30	%
Net income (loss) attributable to noncontrolling interests		12,773		23,130		-45	%		—		—	N/M
Net income (loss) attributable to Moelis & Company	$	104,678	$	145,870		-28	%	$	116,243	$	166,117		-30	%
Diluted earnings (loss) per share	$	1.49	$	2.17		-31	%	$	1.52	$	2.21		-31	%
N/M = not meaningful
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)

Revenues

We earned GAAP revenues of $242.5 million in the second quarter of 2022, as compared with $360.9 million in the prior year period. On an Adjusted basis, we earned revenues of $237.4 million in the second quarter of 2022, as compared with a record $360.9 million in the second quarter of 2021, representing a decrease of 34%. The decrease was primarily driven by fewer transaction completions as compared to the second quarter of 2021. This compares with a 22%¹ decrease in the number of global completed M&A transactions in the same period.

For the first half of 2022, we earned GAAP revenues of $544.6 million, as compared with $624.8 million in the prior year period. On an Adjusted basis, we earned revenues of $535.7 million in the first half of 2022, as compared with a record $624.8 million in the first half of 2021, or a decrease of 14%.

We continued to execute on our strategy of organic growth and hiring senior talent. Since our last earnings release, we added two Managing Directors in the United States. One is focused on coverage of the Food & Beverage sector, and the second Managing Director will enhance our core M&A capabilities. We continue to identify bankers who will excel on our platform and have a robust pipeline of Managing Director hires.

¹ Source: Refinitiv as of July 13, 2022; includes all globally completed transactions greater than $100mm

Expenses

The following tables set forth information relating to the Firm’s operating expenses.

	GAAP									Adjusted (non-GAAP)*
	Three Months Ended June 30,
($ in thousands)	2022			2021			2022 vs. 2021 Variance			2022			2021			2022 vs. 2021 Variance
Expenses:
Compensation and benefits	$	140,092		$	214,017			-35	%	$	140,092		$	214,017			-35	%
% of revenues		57.8	%		59.3	%					59.0	%		59.3	%
Non-compensation expenses	$	40,229		$	28,672			40	%	$	40,229		$	28,672			40	%
% of revenues		16.6	%		7.9	%					16.9	%		7.9	%
Total operating expenses	$	180,321		$	242,689			-26	%	$	180,321		$	242,689			-26	%
% of revenues		74.4	%		67.2	%					75.9	%		67.2	%
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)

	GAAP									Adjusted (non-GAAP)*
	Six Months Ended June 30,
($ in thousands)	2022			2021			2022 vs. 2021 Variance			2022			2021			2022 vs. 2021 Variance
Expenses:
Compensation and benefits	$	316,729		$	370,516			-15	%	$	316,035		$	370,491			-15	%
% of revenues		58.2	%		59.3	%					59.0	%		59.3	%
Non-compensation expenses	$	76,253		$	63,596			20	%	$	76,253		$	63,596			20	%
% of revenues		14.0	%		10.2	%					14.2	%		10.2	%
Total operating expenses	$	392,982		$	434,112			-9	%	$	392,288		$	434,087			-10	%
% of revenues		72.2	%		69.5	%					73.2	%		69.5	%
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)

Total operating expenses on a GAAP basis were $180.3 million for the second quarter and $393.0 million for the first half of 2022, respectively. On an Adjusted basis, operating expenses were $180.3 million for the second quarter of 2022, as compared with $242.7 million in the prior year period, and $392.3 million for the first half of 2022 as compared with $434.1 million in the prior year period. The decrease in operating expenses for both current year periods was primarily associated with lower compensation and benefits expenses as a result of lower revenues earned, partially offset by an increase in non-compensation expenses in both current year periods.

Compensation and benefits expenses on a GAAP basis were $140.1 million in the second quarter and $316.7 million in the first half of 2022, respectively. Adjusted compensation and benefits expenses were $140.1 million in the second quarter of 2022 as compared with $214.0 million in the prior year period, and $316.0 million in the first half of 2022 as compared with $370.5 million in the prior year period. The decrease in Adjusted compensation and benefits expenses is attributable to lower compensation and benefits expenses in 2022, associated with lower revenues earned as compared with the prior year period.

Non-compensation expenses on a GAAP and Adjusted basis were $40.2 million for the second quarter of 2022 as compared with $28.7 million for the prior year period. For the first half of 2022, GAAP and Adjusted non-compensation expenses were $76.3 million as compared with $63.6 million in the prior year period. The increase in non-compensation expenses is primarily attributed to increased client travel and transaction related expenses.

Other Income (Expenses)

	GAAP						Adjusted (non-GAAP)*
	Three Months Ended June 30,
($ in thousands)	2022			2021		2022 vs. 2021 Variance	2022		2021		2022 vs. 2021 Variance
Other income (expenses)	$	(3,046	)	$	2,762	N/M	$	2,030	$	2,762		-27	%
N/M = not meaningful
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)

	GAAP						Adjusted (non-GAAP)*
	Six Months Ended June 30,
($ in thousands)	2022			2021		2022 vs. 2021 Variance	2022		2021		2022 vs. 2021 Variance
Other income (expenses)	$	(5,281	)	$	5,941	N/M	$	2,981	$	5,916		-50	%
N/M = not meaningful
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)

Other income (expenses) on a GAAP basis was expense of $3.0 million for the second quarter of 2022, as compared with income of $2.8 million in the prior year period. On an Adjusted basis, other income was $2.0 million, as compared with $2.8 million in the prior year period. In the second quarter of 2022, we recorded unrealized losses of $5.1 million from the mark-to-market impact on certain shares held. The economics of the $5.1 million in unrealized losses are included within Adjusted revenues. The adjustment did not impact our GAAP or Adjusted earnings per share.

For the first half of 2022, other income (expenses) on a GAAP basis was expense of $5.3 million as compared with income of $5.9 million in the prior year period. On an Adjusted basis, other income for the first half of 2022 was $3.0 million as compared with $5.9 million in the first half of 2021. For the first half of 2022, we recorded unrealized losses of $9.0 million from the mark-to-market impact on certain shares held. The economics of the $9.0 million in unrealized losses are included within Adjusted revenues and did not impact our GAAP or Adjusted earnings per share.

Provision for Income Taxes

The corporate partner (Moelis & Company) currently owns 92% of the operating partnership (Moelis & Company Group LP) and is subject to corporate U.S. federal and state income tax on its allocable share of earnings. The remaining 8% of income is subject to certain state, local and foreign income taxes (including New York City Unincorporated Business Tax), which is accounted for at the partner level through the non-controlling interests. For Adjusted purposes, we have assumed that 100% of the Firm’s second quarter 2022 operating result was taxed at our corporate effective tax rate of 26.9%, resulting in a net tax expense of $15.9 million.

Capital Management and Balance Sheet

Moelis & Company continues to maintain a strong financial position, and as of June 30, 2022, we held cash and liquid investments of $276.6 million and had no debt or goodwill on our balance sheet.

We remain committed to returning 100% of our excess capital to shareholders. The Board of Directors of Moelis & Company declared a regular quarterly dividend of $0.60 per share. The $0.60 per share will be paid on August 23, 2022 to common stockholders of record on August 8, 2022. In addition, during the quarter ended June 30, 2022, we repurchased 0.8 million shares of our common stock for a total cost of $34.9 million. During the first half of 2022, we repurchased 2.8 million shares for a total cost of $132.8 million. Following the end of the quarter through July 26, we have repurchased approximately 0.2 million additional shares for a total cost of $7.0 million.

Earnings Call

We will host a conference call beginning at 5:00pm ET on Wednesday, July 27, 2022, accessible via telephone and the internet. Ken Moelis, Chairman and Chief Executive Officer, and Joe Simon, Chief Financial Officer, will review our second quarter 2022 financial results. Following the review, there will be a question and answer session.

Investors and analysts may participate in the live conference call by dialing 1-844-200-6205 (domestic) or 1-929-526-1599 (international) and using access code 512015. Please dial in 15 minutes before the conference call begins. The conference call will also be accessible as a listen-only audio webcast through the Investor Relations section of the Moelis & Company website at www.moelis.com.

For those unable to listen to the live broadcast, a replay of the call will be available for one month via telephone starting approximately one hour after the live call ends. The replay can be accessed at 1-866-813-9403 (domestic) or + 44 204-525-0658 (international); the conference number is 086051.

About Moelis & Company

Moelis & Company is a leading global independent investment bank that provides innovative strategic advice and solutions to a diverse client base, including corporations, governments and financial sponsors. The Firm assists its clients in achieving their strategic goals by offering comprehensive integrated financial advisory services across all major industry sectors. Moelis & Company’s experienced professionals advise clients on their most critical decisions, including mergers and acquisitions, recapitalizations and restructurings, capital markets transactions, and other corporate finance matters. The Firm serves its clients from 21 locations in North and South America, Europe, the Middle East, Asia and Australia. For further information, please visit: www.moelis.com or follow us on Twitter @Moelis.

Forward-Looking Statements

This press release contains forward-looking statements, which reflect the Firm’s current views with respect to, among other things, its operations and financial performance. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “target,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are based on certain assumptions and estimates and subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include, but are not limited to, those described under "Risk Factors" discussed in our Annual Report on Form 10-K for the year ended December 31, 2021, subsequent reports filed on Form 10-Q and our other filings with the SEC. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release. In addition, new risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results. The Firm undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

Non-GAAP Financial Measures

The Company prepares its Consolidated Financial Statements using accounting principles generally accepted in the United States (GAAP). From time to time, the Company may disclose certain “non-GAAP financial measures” in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. The Securities and Exchange Commission defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that effectively exclude, or include amounts from the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures disclosed by the Company are provided as additional information to analysts, investors and other stakeholders in order to provide them with greater transparency about, or an alternative method for assessing our financial condition, operating results, or capital adequacy. Adjusted results are a non-GAAP financial measure which provide additional information on management’s view of operating results. These measures are not in accordance with, or a substitute for GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, we will also generally define it or present the most directly comparable financial measure calculated and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable GAAP financial measure.

The Company’s Adjusted revenues includes amounts reflected within other income (expenses) which are considered the equivalent of revenues for compensation. Such adjustments may include gains on founder investments where our employees and the Moelis advisory platform contributed meaningfully to the value creation; or the mark-to-market impact of equity instruments held by the Company that were originally received as payment for our banking services and included in revenues. We believe these adjustments are useful to allow comparability of period-to-period operating performance and compensation levels.

The Company’s Adjusted compensation and benefits expenses may include adjustments reflected within other income (expenses) associated with compensation awards forfeited due to the enforcement of non-compete provisions. Management views the credits associated with such forfeitures as an offset to compensation and benefits expenses since the Firm will utilize the forfeited economics to recruit and or retain talent. We believe the netted presentation of forfeiture credits and compensation expenses are useful to allow comparability of period-to-period operating performance.

The Company’s Adjusted other income (expenses) may exclude amounts related to revenues and compensation and benefits expenses discussed above and adjustments to our provision for income taxes, which are discussed below.

The Company’s Adjusted provision (benefit) for income taxes is adjusted to illustrate the result as if 100% of the Firm’s income is being taxed at our corporate effective tax rates for the periods presented. Adjusted provision (benefit) for income taxes periodically includes the tax impact related to the settlement of share-based awards, the reclassification of TRA liability adjustments, or adjustments to our deferred tax assets and liabilities that occur in connection with new tax legislation. Such adjustments increase the comparability of our financial performance across reporting periods and versus our peers.

The Company’s Adjusted basic and diluted shares of Class A common stock outstanding is presented for each period as if all outstanding Class A partnership units have been exchanged into Class A common stock. The Adjusted presentation helps analysts, investors, and other stakeholders understand the effect of the Firm’s ownership structure on its results, including the impact of all the Firm’s income becoming subject to corporate-level tax.

Appendix

GAAP Consolidated Statement of Operations (Unaudited)

Reconciliation of GAAP to Adjusted (non-GAAP) Financial Information (Unaudited)

Moelis & Company
GAAP Consolidated Statement of Operations
Unaudited
(dollars in thousands, except for share and per share data)
	Three Months Ended June 30,					Six Months Ended June 30,
	2022			2021		2022			2021
Revenues	$	242,520		$	360,907	$	544,608		$	624,773
Expenses
Compensation and benefits		140,092			214,017		316,729			370,516
Occupancy		6,267			6,689		12,077			14,384
Professional fees		5,570			5,802		9,885			11,801
Communication, technology and information services		10,108			8,216		18,887			16,875
Travel and related expenses		9,366			2,870		17,009			4,480
Depreciation and amortization		1,841			1,637		3,880			3,086
Other expenses		7,077			3,458		14,515			12,970
Total Expenses		180,321			242,689		392,982			434,112
Operating income (loss)		62,199			118,218		151,626			190,661
Other income (expenses)		(3,046	)		2,762		(5,281	)		5,941
Income (loss) before income taxes		59,153			120,980		146,345			196,602
Provision (benefit) for income taxes		15,296			27,778		28,894			27,602
Net income (loss)		43,857			93,202		117,451			169,000
Net income (loss) attributable to noncontrolling interests		4,894			13,861		12,773			23,130
Net income (loss) attributable to Moelis & Company	$	38,963		$	79,341	$	104,678		$	145,870
Weighted-average shares of Class A common stock outstanding
Basic		66,290,442			63,150,538		65,572,013			62,102,403
Diluted		69,811,979			67,554,777		70,171,256			67,147,825
Net income (loss) attributable to holders of shares of Class A common stock per share
Basic	$	0.59		$	1.26	$	1.60		$	2.35
Diluted	$	0.56		$	1.17	$	1.49		$	2.17

Moelis & Company
Reconciliation of GAAP to Adjusted (non-GAAP) Financial Information
Unaudited
(dollars in thousands, except share and per share data)
	Three Months Ended June 30, 2022
Adjusted items	GAAP			Adjustments				Adjusted (non-GAAP)
Revenues	$	242,520		$	(5,076	)	(a)	$	237,444
Compensation and benefits		140,092			—				140,092
Other income (expenses)		(3,046	)		5,076		(a)		2,030
Income (loss) before income taxes		59,153			—				59,153
Provision (benefit) for income taxes		15,296			630		(b)		15,926
Net income (loss)		43,857			(630	)			43,227
Net income (loss) attributable to noncontrolling interests		4,894			(4,894	)	(c)		—
Net income (loss) attributable to Moelis & Company	$	38,963		$	4,264			$	43,227
Weighted-average shares of Class A common stock outstanding
Basic		66,290,442			5,940,806		(c)		72,231,248
Diluted		69,811,979			5,940,806		(c)		75,752,785
Net income (loss) attributable to holders of shares of Class A common stock per share
Basic	$	0.59						$	0.60
Diluted	$	0.56						$	0.57

(a)	Reflects a reclassification of $5.1 million of other income to revenues related to unrealized losses from the mark-to-market impact on shares received in lieu of cash as partial payment for advisory services provided on certain transactions.
(b)	An adjustment has been made to illustrate the result as if 100% of the Firm’s income is being taxed at our corporate effective tax rate of approximately 26.9% for the period stated.
(c)	Assumes all outstanding Class A partnership units have been exchanged into Class A common stock.

	Three Months Ended June 30, 2021
Adjusted items	GAAP		Adjustments				Adjusted (non-GAAP)
Compensation and benefits	$	214,017	$	—			$	214,017
Other income (expenses)		2,762		—				2,762
Income (loss) before income taxes		120,980		—				120,980
Provision (benefit) for income taxes		27,778		3,244		(a)		31,022
Net income (loss)		93,202		(3,244	)			89,958
Net income (loss) attributable to noncontrolling interests		13,861		(13,861	)	(b)		—
Net income (loss) attributable to Moelis & Company	$	79,341	$	10,617			$	89,958
Weighted-average shares of Class A common stock outstanding
Basic		63,150,538		7,823,733		(b)		70,974,271
Diluted		67,554,777		7,823,733		(b)		75,378,510
Net income (loss) attributable to holders of shares of Class A common stock per share
Basic	$	1.26					$	1.27
Diluted	$	1.17					$	1.19

(a)	An adjustment has been made to illustrate the result as if 100% of the Firm’s income is being taxed at our corporate effective tax rate for the period stated. Our tax provision includes a tax benefit related to the settlement of share-based awards of $0.2 million; excluding such discrete benefit, our effective tax rate for the period presented would have been 25.8%.
(b)	Assumes all outstanding Class A partnership units have been exchanged into Class A common stock.

	Six Months Ended June 30, 2022
Adjusted items	GAAP			Adjustments				Adjusted (non-GAAP)
Revenues	$	544,608		$	(8,956	)	(a)	$	535,652
Compensation and benefits		316,729			(694	)	(b)		316,035
Other income (expenses)		(5,281	)		8,262		(a)(b)		2,981
Income (loss) before income taxes		146,345			—				146,345
Provision (benefit) for income taxes		28,894			1,208		(c)		30,102
Net income (loss)		117,451			(1,208	)			116,243
Net income (loss) attributable to noncontrolling interests		12,773			(12,773	)	(d)		—
Net income (loss) attributable to Moelis & Company	$	104,678		$	11,565			$	116,243
Weighted-average shares of Class A common stock outstanding
Basic		65,572,013			6,203,531		(d)		71,775,544
Diluted		70,171,256			6,203,531		(d)		76,374,787
Net income (loss) attributable to holders of shares of Class A common stock per share
Basic	$	1.60						$	1.62
Diluted	$	1.49						$	1.52

(a)	Reflects a reclassification of $9.0 million of other income to revenues related to unrealized losses from the mark-to-market impact on shares received in lieu of cash as partial payment for advisory services provided on certain transactions.
(b)	Reflects a reclassification of $0.7 million of other income to compensation and benefits expense associated with the enforcement of non-compete provisions.
(c)	An adjustment has been made to illustrate the result as if 100% of the Firm’s income is being taxed at our corporate effective tax rate of 20.6% for the period stated. Our tax provision includes a tax benefit related to the settlement of share-based awards of $9.6 million; excluding such discrete benefit, our effective tax rate for the period presented would have been 27.1%.
(d)	Assumes all outstanding Class A partnership units have been exchanged into Class A common stock.

	Six Months Ended June 30, 2021
Adjusted items	GAAP		Adjustments				Adjusted (non-GAAP)
Compensation and benefits	$	370,516	$	(25	)	(a)	$	370,491
Other income (expenses)		5,941		(25	)	(a)		5,916
Income (loss) before income taxes		196,602		—				196,602
Provision (benefit) for income taxes		27,602		2,883		(b)		30,485
Net income (loss)		169,000		(2,883	)			166,117
Net income (loss) attributable to noncontrolling interests		23,130		(23,130	)	(c)		—
Net income (loss) attributable to Moelis & Company	$	145,870	$	20,247			$	166,117
Weighted-average shares of Class A common stock outstanding
Basic		62,102,403		8,047,568		(c)		70,149,971
Diluted		67,147,825		8,047,568		(c)		75,195,393
Net income (loss) attributable to holders of shares of Class A common stock per share
Basic	$	2.35					$	2.37
Diluted	$	2.17					$	2.21

(a)	Reflects a de minimis reclassification of other income to compensation and benefits expense associated with the forfeiture of fully-vested awards from the enforcement of non-compete provisions.
(b)	An adjustment has been made to illustrate the result as if 100% of the Firm’s income is being taxed at our corporate effective tax rate for the period stated. Our tax provision includes a tax benefit related to the settlement of share-based awards of $20.2 million; excluding such discrete benefit, our effective tax rate for the period presented would have been 25.8%.
(c)	Assumes all outstanding Class A partnership units have been exchanged into Class A common stock.