Q4 2020 Moelis & Co Earnings Call
[music].
Good afternoon, and welcome to the Moelis <unk> Company fourth quarter 2020 earnings Conference call. All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.
After today's presentation there'll be an opportunity to ask questions to ask a question you May Press Star then one on your telephone keypad to withdraw your question. Please press Star then two please.
Please note this event is being recorded.
I would now let's turn the conference over to chat Mandel head of Investor Relations. Please go ahead.
Thank you for joining us for Moelis <unk> company fourth quarter and full year 'twenty 'twenty financial results conference call on the phone today are Ken Moelis, Chairman and CEO and Joe Simon Chief Financial Officer before we begin I'd like to note that the remarks made on this call may contain certain forward looking statements, which are subject to various risks and on.
Uncertainties, including those identified from time to time in the risk factors section of Moelis <unk> company's filings with the SEC.
Actual results could differ materially from those currently anticipated.
The firm undertakes no obligation to update any forward looking statements.
Our comments today include references to certain adjusted financial measures. We believe these measures on <unk>.
Presented together with comparable GAAP measures are useful to investors to compare our results across several periods and to better understand our operating results. A reconciliation of these adjusted financial measures with the relevant.
GAAP financial information and other information required by Reg G is provided in the firm's earnings release, which can be found on our Investor Relations website at investors Moelis Dot Com I will now turn the call over to Ken to discuss our results Ken.
Thanks, Chad and good afternoon, everyone. Our fourth quarter revenues of 422 million were <unk> 89 per <unk> were up 89% from the prior year and represent our largest quarter of revenue since inception.
Full year revenues of $943 million were also a record and up 26% from the prior year.
Our strength during the quarter was driven by a significant increase in completed transactions with our M&A franchise recording its highest level of activity in firm history.
On our full year revenue growth was powered by year over year increases across all of our products and regions as well as higher average fees earned per completed transaction.
We produced record levels of capital markets and restructuring activity and near records in M&A. Despite the softer dealmaking landscape in the first half of 2020.
You folks just expense discipline, we brought this top line straight down to the bottom line exceeding our operating margin target, while returning a significant amount of capital on a very tax efficient manner to our shareholders.
I'll now turn the call over to Joe who will take you further through our financial results and I will discuss our business and outlook Joe.
Thanks, Ken starting with expenses, our adjusted comp ratio was 45% for the quarter at 59% per the full year, our fourth quarter non compensation expenses of $27 million translates to a non comp ratio of 6% from.
The full year, we reported a non comp ratio of 12% largely due to low levels of travel and related expenses as well as continued expense discipline.
We achieved our full year pre tax margin of 28% exceeding our 25% target.
Taxes are normalized corporate tax rate for the year was 26% inline with prior quarters of 2020 also consistent with prior years, we may recognize a tax benefit on the first quarter of 2021 related to the annual vesting of ours use later this month from.
Purposes of quantifying the excess tax benefit the breakeven share price for this fast as approximately $31 per share for each dollar difference between the vesting and breakeven price, we expect the impact to EPS to be approximately one cent.
Our board declared a regular dividend of <unk> 55 per cent per share representing an increase of 44% from the prior quarter and an 8% increase from a regular quarterly dividend amount pre COVID-19.
We've now increased our regular dividend and declared at least one special dividend in each year since becoming a public company.
In addition, we repurchased one 2 million shares during 2020, we remain committed to returning 100% of our excess capital and.
And lastly, we continue to maintain a fortress balance sheet with substantial liquidity and no debt. We ended the year with cash and liquid investments of $375 million and I'll now turn the call back to Ken.
Thanks, Joe.
The achievements of 2020 go beyond just our financial performance.
We invested in the future growth of the business by adding 13, managing directors during the year across important products regions and sectors.
We expanded our capital markets business, which has already become a more substantial contributor and then part important part of our advisory strategy.
Also we recently added a new head of private funds advisory combining our existing primary funds placement and secondary businesses to help us capitalize on the broad opportunities we see in private equity.
In addition earlier this year, we promoted eight individuals to managing director and our pipeline of external talent remains robust.
In conclusion, we believe that our platform is uniquely positioned to deliver innovative solutions for our clients. The resiliency of our people and the intense and focused effort of our bankers. During 2020 have led to the highest level of new business activity activity, we have ever seen which is why I'm. So confident about the firm's future growth outlook.
And with that let's open it up for questions.
We will now begin the question and answer session.
To ask a question you May press Star then one on your telephone keypad.
If you are using a speakerphone. Please pick up your handset before pressing the keys to withdraw your question. Please press Star then two at this time, we will pause momentarily to assemble our roster.
Our first question comes from Devin Ryan with JMP Securities. Please go ahead.
Okay, great good evening, Ken and Joe.
So yeah.
Yes. This is the first quarter north of $400 million in revenue on really the first quarter north of 300 million in revenue so.
Just given that you know it was just.
It's such a I guess outsized quarter, and I think above expectations as well it would be great. If you could just maybe unpack a bit of what drove the strength. It just seems like a lot of things came together very quickly so whether it's capital markets activity or <unk>.
Restructuring.
Deals that kind of close to quickly head of maybe potential thoughts around tax changes just love a little more flavor for what happened in the quarter to get to these numbers.
I think it was mostly driven by well every things were strong across all sectors and but it was really driven by M&A, primarily I think we started telling you at the end of the second quarter earnings report that we felt there was a tremendous resurgence of M&A some of it backlogged from.
Good good.
The backlog that we had going into the Covid environment and then it just started to come back quickly and then it builds from there stock market performance low interest rates.
Really the animal spirits in the market I think just kept the momentum going as M&A continue to accelerate by the way restructuring had a very good year too, but it was pretty much in line with our our percentages in all other years. So it was just that both both were having good years.
Fourth quarter is always seasonally.
Strong are usually seasonally strong for a company like ours, but I would say that the give and take at year end was nothing special meeting I didn't feel like there was anything rushed into the quarter, nor anything unusual pushed its the usual mix of given take at year end things that leak over and things that.
I didn't really see much differential there due to due to taxes.
Yeah.
Okay interesting.
Obviously, a big revenue quarter, maybe just to shift gears and talk a little bit about the recruiting backdrop clearly.
Six nine months ago, I think the expectation was that.
And maybe nine months ago is probably a better framework that it would be a difficult 2020, but that could create a book.
Creating opportunities as competitors.
Kind of inward focus I'm curious.
How the recruiting environment.
And just the level of conversations you're having and expectations.
For the coming year, obviously, you had a pretty nice step up in managing director head count.
From combination of recruits and internal promotes last year, but just love some color on kind of the conversations today, where youre looking to add on just expectations now that it does feel like both firms had a pretty good year and competition was likely pretty solid so just how that plays into it as well.
Yeah, I agree with you so nine months ago.
I thought there might be an opportunity to use the strength of our balance sheet our liquidity.
Like we did a really back in the last crisis and a 29 two O nine 2010.
We really took advantage of a pretty chaotic environment and banking to to substantially grow the firm and I think I did mention that.
That could be a possibility.
It really wasn't the federal reserve stepped in quickly and as I said by really our June quarter announcement, we were saying to the street we saw.
A pretty big in.
On certain build in M&A and activity.
I would say at this point recruiting is pretty good there are people who want to move I continue to believe the boutique environment in some of the dynamism around the innovations.
Debt, we're able to show, including our capital markets activity and some of the things we're doing.
Or are still leading people to search out our platform, but it's not unusual it's just I'd say, it's very similar to the prior years.
Got it okay.
I will leave it there I appreciate it Ken.
Thank you.
The next question is from Ken Worthington with Jpmorgan. Please go ahead.
Hi, good evening or good afternoon on.
In your deck you commented I believe that 25 per cent of the M. DS have had that title on moelis for less than three years.
So how do we think about the production of these newer M DS.
As they you know.
You know remain in that position for a four to six years from seven to 10 years and and I guess the real thing. We're after is what sort of revenue pick up on your sort of expecting from this group as they mature over the next you know I guess a handful of years.
Well I do think we continue to emphasize internal promotion 88.
Eight people this year, which is pretty substantial for us it might be our most.
And those people are on the way up they are developing franchises their quality relationships that are just going to get better by the way a lot of it is the world is changing.
So rapidly.
Net you.
You want to have these young up and coming in on managing directors, who are developing businesses in parts of the economy that almost didn't exist 10 years ago.
So it's very exciting to have that.
Training and an inward focus of where we're developing talent on our own and bringing them up they definitely do.
Improving productivity fairly rapidly between sort of the first and second year of promotion and even out to the fifth sixth and seventh year.
It's really hard to for me to delineate that it'll be.
Sporadic by person, but we definitely expect to see continued productivity and lastly, also the the integration of the whole franchise.
It's just getting better and better and when Covid hit I think the fact that we have a collaborative.
Culture.
It's one of the things you saw on our results as we didn't really have to reintroduce everybody people, we're passing off.
The the elements I mean different clients needed different things than they ever needed before some needed capital markets. Some needed restructuring advice some needed M&A advice that were never in that part of our firm before and our ability when somebody comes up through the system and they've been working here for 10 years they know everybody.
They know who to call people know, who they are and it's substantially more collaborative than bringing in somebody.
On your entire workforce over the transom, so Ken I expect to continue to see productivity improvement.
Like is it a stretch to think that three years from now if this group were exactly the same production would be up 50% or would it double or those numbers just outside the realm of reasonableness.
If you're talking about over that group that might have only been with US three years that group could be up 50%.
As a whole it'll be divided over the and then you have to divide it over.
The whole the denominator, but it's not.
Especially.
The new promotes that would not be a number I don't have a scientific way of saying, yes to that number but my gut feel is you wouldnt be wrong.
Okay, Awesome, and then maybe going to the more plain vanilla and restructuring.
You know have you been working through that pipeline at a more accelerated pace that would sort of make sense given the more constructive environment and then I guess, what I'm, maybe more more after is how does the replenishment on the restructuring pipeline match up these days with the pace that you're completing those.
Restructuring mandates.
Like a book to Bill ratio Youre trying to come out of a banking with a book to Bill I've I think our restructuring retainers and assignments are still at all time highs. We have we had a very good year, but it was in line with the percentage of the revenues that kind of they've always done.
Had a great year on M&A, and we had a great year on restructuring and our restructuring backlog and.
And retainers.
At their all time highs.
Awesome. Thank you very much.
The next question is from Brennan Hawken with UBS. Please go ahead.
Yeah.
Hey, Thanks for taking my questions.
Just wanted to follow up on that.
An interesting point Ken because.
And I wanted to dig in on the restructuring the mandates in the retainers being at all time highs do you think that it's reasonable to assume debt restructuring revenue will be stable or even up in 'twenty 'twenty, one or is it is that too optimistic and it'll be a tailwind.
In the first half more likely but unless we see more mandates coming into the pipe. Then we will start to see a slowdown maybe in the back half is that fair or what how should we think about the puts and takes there.
Well again without markets do an incredible job of humbling you when you try to predict them through a year I'd say it feels like.
You know stable plus or minus and depending on where the markets go there. The economy is improving but there's a lot of companies out there they've taken on a lot of leverage to get through Covid.
And some will continue if the economy doesn't really come roaring back you'll still have a significant amount and like I said as of right now our backlog is as high as it's ever been so again markets I don't like to try to become a visionary on markets because they always prove you.
They always humble you, but right now I.
Kind of a start with a stable environment and then keep an eye on it from there.
Okay, that's fair.
And tell me about it on the market tumbling Ya.
I hear you.
On the capital front so.
You had indicated when you guys. Initially had cut the dividend that you were being conservative and clearly you have put your money where your mouth is by bringing the regular dividend up back where it was above.
Where it was pre pandemic.
With the regular dividend now restored actually above its prior level. How are you thinking about weighing capital returns as far as the form buybacks versus specials.
Versus other forms of capital return.
We're flexible where we were in buying in during the year.
You have these blackout periods and the stock responded as I think you know Brendan stock responded very rapidly so.
With blackout periods and everything it's very hard to get a lot of capital. So we decided to do that $2 dividend in December which is our strategy is not to sit with your capital and we deferred a dividend.
Out of the Prudence of making sure our bankers were focused on their clients.
And just in case. This virus was something that was even worse than it was not that it was it was pretty bad but it.
Survive much better businesses did better than I than I, even expected so but I think our first choice was to protect and then to immediately give it back and so when we had $2 a share excess we immediately paid it.
We've now raised our dividend because we think our business is that it is strong enough to sustain a level above pre COVID-19 dividend and we are we I still think we're going to produce substantial excess capital.
And we're gonna be flexible between share repurchases and dividends and the ideas to get you back to your money as quick as we can know.
Okay. That's fair thanks for the color.
The next question is from Jeff Harte with Piper Sandler. Please go ahead.
Good morning, guys a.
Very strong quarter.
Along those lines as we look at how good it seems M&A activity levels are kind of across the products and really everywhere.
We've had a couple of ramp ups from like this since the great financial crisis, but each time, it's kind of stalled out before reaching new cyclical extremes understanding that there's not going to be a clear answer to this til tumor through it but do you think things will be different this time that we could actually see kind of new cyclical highs and a really robust frothy environment.
If so why would it be different than the last couple of head fakes by the way if you if youre going to try to get me out there on a quote like while the music is playing you gotta keep dancing I am not I am not giving you that one.
So again I'm going to say that markets are humbling day Ah Theres a lot of good things going on right now low interest rates recovery governments governments, putting a lot of money into the economy liquidity.
I, we retain a very unlevered balance sheet and we're very strong on the basis that tomorrow, something can happen, which we don't predict.
And then we have businesses that could take advantage of those movements as well.
So how about this for the permanence of never being recorded for the rest of my life predicting what Irving Fisher say that markets have reached an all time high I'm not going to say that I'm, just going to say that for right now.
There's a lot of interest in.
<unk>.
As I said I would say today on the call.
If you think your business on the first of January 2020, and the FERC and the first of January 2021 should.
Should be identical that's a very unusual thought process and our corporate board going through Covid something has changed in your go to market strategy, whether that's how high you want to run your leverage where you get liquidity.
Which businesses, you're keeping which businesses you want to be and I would just tell you that I've never seen.
The.
The.
Business community in that short of period rethink everything about what Theyre doing and look that's the business. We're in helping businesses rethink everything about their balance sheet and go to market strategy. So that's why I think there's a lot of activity out there right now.
Okay, Thanks, and I guess on the expense on kind of potential positive operating leverage side.
You talked about targeting a 25% operating margin, but I guess, just starting to look very conservative given that you did like six of the last seven years or so.
So as we look forward should we start is it time to start thinking about potentially a higher kind of run rate positive.
Operating margin going forward.
I'm going to give you a firm maybe and that will be a look some of this was a result of reduced travel and T&D expenses.
I think some of that's going to be permanent but I'd be guessing if I told you how much I I really do think we're going to have a permanent reduction in travel and entertainment.
Especially the commodity parts I think the part where we go visit clients. In fact, I think we're missing some of that I think revenues could be even better as.
As I was saying some of the revenues that we're generating in 2020 with a result of airplane flights we took in 2015.
So we need to be back out there there's nothing like looking at a client meeting them and having them know who you are but then again I think some of these expenses were you all on fly to a room just a draft document and do something pretty Commoditized will go away. So that's the answer I think some part of that that that that money that were say.
<unk> will stay.
And that might lead us to be able to permanently change, how we think about margin, but I wouldn't.
Let's see how that plays out.
And I guess just related and then I'm done.
How are you guys thinking about kind of non comp expenses at least a quarter or two out do you have any more insight as to how quickly you think those could come back or not come back in any any help for us there.
I think what we are seeing right now is that on.
Slight uptick in travel I think $30 million is still a good baseline to be focused on and I you know I I.
I don't know beyond a couple of quarters, where it's going to be I don't know if I can project out to the second quarter, but I think I think $30 million plus or minus is probably a good range to be working with in the next couple of quarters.
Interestingly I like to say, Joe you know all our other expenses like we don't have a lot of lease expenses that were about to step into almost everything else is as you see it.
And it'll just be I think the big one I mean, it'll fluctuate with the size of our personnel but.
Everything else is pretty much under control on the wildcard will be.
There's a third of travel just never come back.
Okay. Thank you.
The next question is from Jim Mitchell with Seaport Global. Please go ahead.
Hey, good afternoon.
Maybe just a question I don't know if you.
If you had the time to think about this the Senator club which are.
Is planning a bill to give antitrust enforcement a little more teeth.
Is that a worry for you if you had any conversations with Ceos that are concerned about it or is that just really on mega deal issue, that's not too concerning.
I'd put it in that category I mean, if you're involved at a specific large transaction I think you want to be very careful about this stuff I saw something on.
On early termination of a 30 day period, which could end up just.
Delaying some transactions.
Bye bye.
Slight margins.
I again, I think a lot of our business is.
In the in the size transaction, where I don't believe that bill that youre, referring to it would have a big effect, but yeah.
I haven't I haven't spent a lot of time being that worried about it I suspect there'll be a transaction in which it gets focus but that will be specific to the transaction.
Okay. That's helpful and maybe just on getting back to the margin discussion and maybe talking to the comp ratio given the the more positive environment, you talked about recruiting being sort of on average.
Year with revenue outlook pretty positive is there an opportunity or can we expect that you can get back to sort of your prior targets closer to 58% comp ratio or is there still you know.
Headwinds on that front.
Well two things first of all I don't I don't think it's an average year for hiring I, just said that theres not panic in the market. So it's it's the same environment that doesn't mean, we won't be aggressive into it given where we think our business is I just want to be clear on that.
Choose to be aggressive it's just not.
It's not a weak market for people like 2009, 2010, or a strong market for obtaining people number one.
Number two.
You know I don't understand the question of headwinds, we're returning 28% I think it's the industry leading margin of every revenue dollar on pre tax to our shareholders.
And and that's what I'm focused on I'm, a shareholder if I can return on that kind of margin to our shareholders. The mix of how we do it up top I think were right within our range and and I'm very happy with it.
You can get into those kind of pre tax margins, that's where I'm aiming for.
Okay fair enough. Thanks.
The next question is from Managua failure with Morgan Stanley. Please go ahead.
Hi, good afternoon.
Could you talk a little bit about the spec opportunity clearly a lot of capital being raised and that should help deal activity. So I mean, how are you thinking about that opportunity for the industry overall and for the phone.
Well you know one of the reason we've beefed up our capital markets is for this reason we've already underwritten book run for spec deals its a very institutional market.
Our unique relationships with sovereigns is actually leading us to be a sought after placement agent underwriter really for for these for for specs and then and then with that you get our M&A team.
And in our private placement team for the pipe in a day spend it's it's fairly exciting. It's one of the reasons. We stopped we stepped up and invested in capital markets. If you remember in the third quarter, we hired a whole team and it's really paying off.
I believe the spec market is real.
I think it's got a regulatory arbitrage to it that is much more efficient than traditional ipos in fact.
<unk> got seven or eight months off you can increase your certainty.
And lastly, I would just point out that the growth is this 50% from 20 years ago, there was 50% less common stocks by name the trade.
It did 20 years ago.
And the reason that happened was because I think between private equity late stage venture. They went and organized capital and said why would you go on to the public market, we get to see five year projections, we get to do due diligence we get to impose some governance, we get to do all the kinds of checks before we invest.
Yes.
And actually what specs are allowing the public to do some of the big investors. The mutual funds is to have that access to sit down in a room and have five year projections access to management and five days of due diligence and being an insider and crop wall crossing.
And.
Theres about a trillion on a half dollars of private equity and Nobody's asked whether that's too much money and there is about 300 billion or $3 50 billion of spec money now I think that.
If you think about returning the number of stocks back to where it was 20 years ago, you can see a pretty interesting market develop and we invested in our capital markets and our coverage model because we think it's real.
That's great color thanks for that.
And then separately.
If you can comment maybe on what activity is doing income outside the U S. Clearly, we're saying act.
Activity picking up pretty nicely in Europe. So maybe you can give some more color on what are you seeing outside the U S and how you'll share in those markets is tracking.
Yeah, I think we said in the lead in that we saw strength in really all regions and we did the U S is as usual and something like a COVID-19 environment Amazing how fast the U S.
Innovates and comes back.
But we're seeing in Europe are very steady.
Strength. We're also we're starting to see strength back in Asia for a while there.
We're.
Maybe it was the last part of the last administration, but China was not as active we're starting to see activity, China, Hong Kong more in Asia.
And in our Brazil office had a pretty good.
Fourth quarter insertion in backlog, so where we're seeing it.
Across the across regions.
As I always say when whenever there is a bit of turmoil. The U S is first to to aggressively start to move but I think everybody is is right in there with them.
Great. Thank you.
The next question is from Michael Brown with K B W. Please go ahead.
Hey, Ken and Joe.
So wanted to just start with a question on <unk>.
Additional M&A side of the business. So you've got your outlook comments on the restructuring business on the recruitment.
Activity, but.
But I guess just wanted it to complete the circle here word on traditional M&A. So.
Ken understanding the markets are humbling, but M&A activity has certainly been intense that attention. He seems to have continued certainly since the end of 'twenty 'twenty. So how are you feeling about M&A, because you kind of characterize your outlook for 'twenty one relative to prior.
Upswings in M&A activity and how would you characterize your backlog now relative to prior periods as well.
This is the strongest backlog we've ever had to start a year.
Again, I want to be careful.
You know somebody said to me should you annualize the fourth quarter and I said you only if you want to lose your job as an analyst.
The fourth quarter is always seasonally strong and this one it had more to it but this is the strongest.
Our backlog we've had there is there is a lot of activity out there and our work force is as good as it's ever been when I look through the the players we have in position and what we did in 2020 to move people and to expand in.
Sectors that we wanted to be in at the top I know you guys look at the gross numbers and sometimes the M. DS don't change as much as the ins and outs.
But.
It's the team you put on the field and whether you're in the right positions to win and I've never felt stronger about the team we have on the field and weather and whether we're covering the right places with the right people.
Collaborating to do it so it's it's a good backlog and it's a great team and the system is working as well as it ever has.
Okay, Great and just one clean up for me I think I think you alluded to it in your maybe your first answer but the fourth quarter did it include any material pull forward this quarter from activity that closed in the first quarter or was it a relatively clean fourth quarter.
So I'm going to let Joel get debt, but remember it.
I'd say it was clean but there are there's always stuff that you know even last year, there's stuff that in the third quarter gets pulled from the fourth and a third in there was there stuff in the first the fourth so.
Net net I didn't see anything unusual, but Joe given that the number on the.
What we'd call. It was on a couple of transactions and I think it added up to something around $30 million.
Okay, Great I appreciate the book.
And our final question comes from Steven <unk> with Wolfe Research. Please go ahead.
Hi, good afternoon.
Yeah. So on wanted to start off with a question on comp expense you know you've always provided a lot of transparency around the comp algorithm based on your previous guidance for 2020, I think you alluded to fixed comp somewhere in the range of $3 40 to 350 million and 20 per cent variable comp ratio and that would imply comp dollars of.
533, not to get too precise, but you came in at 5% above that I know you've invested this past year and external hires and have it in <unk>.
Kris and internal promotes I was just hoping you could provide updated guidance on what's a reasonable expectation for fixed comp dollars in 2021, given some of those additional hires and whether we need to contemplate any additional changes to this algorithm.
Look out for there.
During this year.
Well I think this year, we looked at it again, if we're generating 28% of our revenue to our shareholders that's the leading industry.
Margin I believe I don't believe there's anybody doing that.
And our comp ratio as debt in line with where we want to be.
And if we can pull those together that's the target and what will go through it with you in detail I'm not going on we're not going to give guidance on 2021, but if I could get to exactly where I was on 28 per cent pretax I would in this kind of a revenue world I would take it and I think that.
I I believe those are industry, leading margins and metrics the whole way.
So we will.
But I'm not going to give any guidance on 2021.
Okay fair enough.
I had to try Ken and then just I wanted to unpack some of the commentary on the restructuring side.
Notice that your expectation is for restructuring revenues to be stable plus or minus I know you don't want to make any bold predictions there, but certainly that's a more constructive message than what we've been hearing from some of your peers, especially given some of the tightening of credit spreads bankruptcies seem to be declining send messages.
Certainly encouraging I was hoping you could speak to maybe some of the idiosyncratic factors that could support a better restructuring outlook.
Debt that you're indicating and are there other parts of the business that we should think about that could be impacted just by top 'twenty 'twenty comps given the strong revenue year on that you just had.
Yeah. So I said stable remember that's all so we're gonna be you know I feel like we're stable and that's based on having more retainers and we had last year and more backlog to start the year. So.
You're asking me and I'm going to stay away from it to comment on other peoples.
Mix is coming into their quarter and how they they're mix from their quarter goes forward our mix was very high M&A.
And it was kind of stable as well in what it's the restructuring was as a participant.
In the you know in the overall.
And the overall revenue stream plus we've grown our revenues yeah, we add people and we've grown our restructuring revenues every year now for five years. So we I anticipate.
The percentage contribution to our overall business was not disproportionate going into it I'm not so on and we grow every year.
And so I, just feel like stable to plus or minus is a fairly.
I would call it a grounded view on where we think the world is.
No. Thanks for that perspective, Ken and just one final cleanup question was hoping you could provide just the MD count to close out the year and whether that includes the full number of an internal promotes are you outside of it.
As of right now we have 128 I think is if I ended the year. It was slightly last one on twenty-five but as of right now not counting the one announced I believe we have one announcements in transition everybody else is in there I'm pretty sure.
That's great Ken Thanks, so much for taking my questions.
This concludes our question and answer session I would like to turn the conference back over to Ken Moelis for any closing remarks.
Well thanks for all your attention during the year and we look forward to the next earning call on a few a few weeks. Thanks.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Yeah.
Okay.
[music].
Yeah.