BUSINESS WIRE<\/a>)–
\nGreenhill & Co., Inc. (NYSE: GHL) today reported revenues of $49.7 million, a net loss of $23.3 million and a loss per share of $1.27 for the quarter ended March 31, 2023.<\/p>\n\nThe Firm\u2019s first quarter 2023 revenues compare to revenues of $45.4 million in the first quarter of 2022, which represents an increase of $4.3 million. The Firm\u2019s first quarter 2023 net loss and net loss per share compare to a net loss of $12.1 million and a loss per share of $0.66 for the first quarter 2022.<\/p>\n
The Firm\u2019s revenues and net income can fluctuate materially depending on the number, size and timing of completed transactions on which it advised and other factors. Accordingly, the revenues and net income in any particular period may not be indicative of future results.<\/i><\/p>\n
\n\u201cOur first quarter revenue showed modest improvement from last year\u2019s level despite what was obviously a very challenging operating environment. But notwithstanding what was a relatively quiet revenue quarter, we are seeing a level of engagement, particularly with our corporate clients, that feels stronger than recent M&A market commentary has been suggesting. We are also seeing restructuring activity accelerate from last year\u2019s slow pace. Accordingly, we expect our year to date revenue improvement to grow significantly in the second quarter, leading to our best first half in recent years. On the cost side, our compensation costs were elevated for the quarter as a result of the timing of an accounting charge for incentive compensation. But already in the second quarter the absolute dollar level of compensation will fall to a more typical level, and our compensation ratio should do likewise as these costs decline and higher revenue materializes. Looking further ahead, we are well positioned to benefit as markets continue to stabilize, credit conditions improve, a more robust level of deal activity develops and costs normalize,\u201d Scott L. Bok, Chairman and Chief Executive Officer, commented.<\/p>\n
Revenues<\/b><\/p>\n
\nRevenues were $49.7 million in the first quarter of 2023 compared to $45.4 million in the first quarter of 2022, an increase of $4.3 million, or 9%. The increase principally resulted from a higher level of fees from financing advisory and restructuring retainers.<\/p>\n
Recruiting Update<\/b><\/p>\n
\nToday we are announcing the recruitment of Jakub Mleczko (most recently Managing Director at Perella Weinberg Partners) who will join our New York office as a Managing Director focused on Financing Advisory & Restructuring.<\/p>\n
\nThe Firm remains in dialogue with numerous other Managing Director candidates and continues to see opportunities to grow senior banker headcount.<\/p>\n
\nIncluding all Managing Directors whose recruitment we have announced to date, we have 78 client-facing Managing Directors. As of January 1, 2023, we had 79 such Managing Directors.<\/p>\n
Expenses<\/b><\/p>\n
Operating Expenses<\/b><\/p>\n
\nOur total operating expenses for the first quarter of 2023 were $75.5 million, which compared to $60.0 million of total operating expenses for the first quarter of 2022. The increase in total operating expenses of $15.5 million resulted from increases in both our compensation and benefits expenses and our non-compensation operating expenses, each as described in more detail below.<\/p>\n
\nThe following table sets forth information relating to our operating expenses.<\/p>\n
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