The following excerpt is from the company's SEC filing.
Second Quarter 2021 Revenues of $255.5 Million, Up 123% from the Same Period of 2020; First Half 2021 Revenues
of $425.3 Million, Up 105% from the Same Period of 2020
GAAP Operating Income Margin of 19.4% for the Second Quarter 2021 and 18.2% for the First Half 2021; Adjusted
Operating Income Margin of 24.5% for the Second Quarter 2021 and 23.2% for the First Half 2021
GAAP Net Income of $9.0 Million for the Second Quarter and $31.5 Million for the First Half 2021; Adjusted Net
Income of $61.7 Million for the Second Quarter 2021 and $93.2 Million for the First Half 2021
have Added Th ree
Partners from Internal Promotions and Another Six have Joined or Agreed to Join the Firm in 2021, Further Strengthening Client Coverage Across Industries and Geographies
Closed Business Combination with FinTech Acquisition Corp. IV (FTIV) on
24, 2021 (the Business Combination)
As of August
12, 2021, Firm Listing Upgraded to NASDAQ Global Select Market Tier
Firm Exercised Contractual Repurchase Right of 1 Million Shares of Class
A Common Stock
Owned by FTIVs Sponsor at $12 Per Share
No Outstanding Indebtedness; Maintains Strong Balance Sheet
Declared Quarterly Dividend of $0.07 Per Share
NEW YORK, NY, August 12, 2021 Perella Weinberg Partners (the Firm or PWP) (NASDAQ:PWP) today reported financial results
for the second quarter ended June 30, 2021. The Firm reported record quarterly revenues of $255.5 million for the three months ended June 30, 2021, compared with $114.6 million for the three months ended June 30, 2020. GAAP
net income and adjusted net income were $9.0 million and $61.7 million, respectively, for the three months ended June 30, 2021, compared with GAAP net loss of ($22.1) million and adjusted net income of $1.5 million for the three
months ended June 30, 2020. GAAP diluted earnings per Class A share was ($0.32) for the three months ended June 30, 2021.
First half 2021
revenues were a record $425.3 million, compared with $207.0 million for the first half of 2020. GAAP net income and adjusted net income were $31.5 million and $93.2 million for the six months ended June 30, 2021,
respectively, compared with GAAP net loss of ($26.2) million and adjusted net income of $6.2 million for the six months ended June 30, 2020, respectively. GAAP diluted earnings per Class A share was ($0.32) for the six months ended
June 30, 2021. All net income prior to the closing of the Business Combination on June 24, 2021 is allocated to GAAP net income attributable to
interests and excluded from the
earnings per share calculation.
PWP delivered record results in the second quarter of 2021 as demand for advisory services remains elevated across
our business. We continue to see high levels of activity across all service lines, sectors, and geographies driven by a further expansion of client coverage and a deepening of relationships, supported by our dedicated and collaborative team. In the
quarter, PWP completed its transition to a public company, an important milestone in our firms
history, and one which will help support future growth and development opportunities. We remain
committed to providing trusted and high quality strategic and financial advice to our clients and delivering long-term value to our shareholders, stated Peter Weinberg, Chief Executive Officer.
Throughout this release, adjusted figures represent non-GAAP information. See Non-GAAP Financial
Measures and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable GAAP numbers.
Selected Financial Data (Unaudited)
(Dollars in Thousands, Except Per Share Amounts)
Three Months Ended June 30,
Total compensation and benefits
Operating income (loss)
Income (loss) before provision for income taxes
Income tax benefit (expense)
Net income (loss)
Net income (loss) attributable to
Net income (loss) attributable to Perella Weinberg Partners
Net income (loss) per share attributable to Class A common shareholders (1)
Weighted-average shares Class A common stock outstanding (1)
Represents net income (loss) per share of Class A common stock and weighted-average shares of Class A
common stock outstanding for the period from June 24, 2021 through June 30, 2021, the period following the Business Combination.
Adjusted net income (loss) per share - diluted for the period ending June 30, 2021 is not meaningful or
comparative to GAAP diluted earnings per share which is only reflective of the six days of income after the Business Combination on June 24, 2021.
Six Months Ended June 30,
Net income (loss) per share attributable to Class A common shareholders (1)
Weighted-average shares Class A common stock outstanding (1)
For the second quarter 2021, revenues were a record $255.5 million, an increase of 123% from $114.6 million for the second quarter
2020. For the first half 2021, revenues were a record $425.3 million, an increase of 105% from $207.0 million for the first half 2020.
The year-over-year growth, for both the second quarter and first half 2021, reflects a
significant expansion of activity across substantially all industry groups, geographies, and product areas, particularly in mergers and acquisitions advice. The increase in revenues can be attributed to both an increase in the number of advisory
transaction completions and the average fee size per client as compared to the same periods in 2020.
(Dollars in thousands)
% of Revenues
GAAP total compensation and benefits were $171.5 million for the second quarter of 2021, compared
to $92.4 million for the second quarter of 2020. Adjusted total compensation and benefits were $162.9 million for the second quarter of 2021 as compared to $86.3 million for the same period a year ago. The increase in both the
GAAP total compensation and benefits and the adjusted total compensation and benefits in the second quarter of 2021 was due to a larger bonus accrual associated with the increase in revenues despite a lower compensation margin compared to 2020 when
we operated as a private partnership. Our GAAP compensation expense includes equity-based compensation expense related to amortization of certain partnership units which has no economic impact on PWP and therefore has been allocated to
expenses were $34.6
million for the second quarter of 2021, compared with $42.9 million for the prior year. Adjusted
expenses were $30.0 million for the second quarter of
2021, compared with $26.4 million for the same period a year ago. The decrease experienced in GAAP
expenses is a result of elevated professional fees in the second quarter of
2020 related to the
of previously deferred offering costs of $14.8 million that were expensed due to termination of an IPO process in May of 2020. The increase in
expenses on an adjusted basis was primarily driven by an increase in professional fees related to recruiting and
fees and technology expense
as well as some increase in travel and entertainment related expenses as business travel resumes.
The Firm incurred a
charge of $39.4 million associated with the extinguishment of its debt which related to the Business Combination capital structure and the Business Combination itself, respectively. This
expense was allocated to the
income line item in the GAAP financial statement, and it is not reflected in adjusted results.
GAAP total compensation and benefits were $287.1 million for the first half of 2021, compared to $157.1 million
for the first half of 2020. Adjusted total compensation and benefits were $272.2 million for the first half of 2021 as compared to $144.8 million for the same period a year ago. The increase in both the GAAP total compensation and benefits
and the adjusted total compensation and benefits in the first half of 2021 was due to a larger bonus accrual associated with the increase in revenues despite a lower compensation margin compared to 2020 when we operated as a private partnership.
expenses were $60.7 million for the first half of 2021, compared
with $74.2 million for the prior year. Adjusted
expenses were $54.5 million for the first half of 2021, compared with $56.0 million for the same period a
year ago. The decrease experienced in GAAP
expenses is a result of elevated professional fees in the second quarter of 2020 related to the
previously deferred offering costs of $14.8 million that were expensed due to termination of an IPO process in May of 2020. The decline in adjusted
expenses was primarily driven by lower
travel and entertainment and lower general, administrative and other expenses in the first half of 2021 relative to the first half of 2020 due mainly to the
pandemic and a related decrease in
conferences and seminars and office related expenses, partially offset by an increase in professional fees related to
fees and recruiting.
Provision for Income Taxes
Prior to the close of the
Business Combination on June 24, 2021, all of our operating income and taxes relating to income were derived from the predecessor PWP entity.
income has been allocated to
interest. Corporate taxes have been applied to PWPs GAAP financials post-transaction close and only with respect to the public companys share of allocated income from PWP Holdings LP
Balance Sheet and Capital Management
As of June 30, 2021, PWP had $349.7 million of cash and cash equivalents. In connection with the closing of the Business Combination with FTIV, the
Firm repaid all outstanding indebtedness and has an undrawn revolving credit facility.
The Board of Directors of PWP has declared a quarterly dividend of
$0.07 per share of Class A common stock. The dividend will be paid on September 21, 2021 to Class A common stockholders of record on September 3, 2021.
The Firm repurchased 1 million shares of Class A Common Stock pursuant to a contractual repurchase right with the sponsor of FTIV at $12.00 per
share for a total of $12 million.
Conference Call and Webcast
Management will host a webcast and conference call on Thursday, August 12, 2021 at 8:30 am ET to discuss PWPs financial results for the second
quarter ended June 30, 2021.
The conference call will be made available in the Investors section of PWPs website at
https://investors.pwpartners.com/. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register.
The conference call can also be accessed by the following
Conference ID: 10015937
A replay of the call will also be available on
PWPs website approximately two hours after the live call through August 26, 2021. To access the replay, dial
(United States) or
(international). The replay pin number is 10015937. The replay can also be accessed on the investors section of PWPs website at https://investors.pwpartners.com/.
In addition to financial measures presented in accordance with GAAP, we monitor certain
financial measures to
manage our business, make planning decisions, evaluate our performance and allocate resources. We believe that these
financial measures are key financial indicators of our business performance over
the long term and provide useful information regarding whether cash provided by operating activities is sufficient to maintain and grow our business. We believe that the methodology for determining these
financial measures can provide useful supplemental information to help investors better understand the economics of our platform.
financial measures have limitations as analytical tools and should not be considered in isolation from,
or as a substitute for, the analysis of other GAAP financial measures. These
financial measures are not universally consistent calculations, limiting their usefulness as comparative measures. Other
companies may calculate similarly titled financial measures differently. Additionally, these
financial measures are not measurements of financial performance or liquidity under GAAP. In order to
facilitate a clear understanding of our consolidated historical operating results, you should examine our
financial measures in conjunction with our historical consolidated financial statements and
notes thereto included elsewhere in this press release.
Management compensates for the inherent limitations associated with using these
financial measures through disclosure of such limitations, presentation of our financial statements in accordance with GAAP and reconciliation of such
financial measures to the most directly comparable GAAP financial measures. See
Financial Measures and the tables at the end of this release for an explanation of the adjustments and
reconciliations to the comparable GAAP numbers.
Perella Weinberg Partners is a leading global independent advisory firm, providing strategic and financial advice to a broad client base, including
corporations, institutional asset managers, governments, sovereign wealth funds and family offices. The firm offers a wide range of advisory services to clients in the most active industry sectors and global markets. With more than 580 employees,
PWP currently maintains offices in New York, Houston, London, Calgary, Chicago, Denver, Los Angeles, Paris, Munich, and San Francisco. The financial information of PWP herein refers to the business operations of PWP Holdings LP and Subsidiaries.
Cautionary Statement Regarding Forward Looking Statements
Certain statements made in this press release, and oral statements made from time to time by representatives of PWP are forward-looking statements
within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Statements regarding the expectations regarding the combined business are forward looking statements. In addition, words such as estimates, projected, expects, estimated,
anticipates, forecasts, plans, intends, believes, seeks, may, will, would, future, propose, target,
goal, objective, outlook and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking
statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the control of the parties, that could
cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include:
the projected financial information, anticipated growth rate, and market opportunity of the Firm;
the ability to maintain the listing of the Firms Class A common stock and warrants on Nasdaq following
the Business Combination;
our public securities potential liquidity and trading;
our success in retaining or recruiting partners and other employees, or changes related to, our officers, key
employees or directors following the completion of the Business Combination;
members of our management team allocating their time to other businesses and potentially having conflicts of
interest with our business;
factors relating to the business, operations and financial performance of the Firm, including:
whether the Firm realizes all or any of the anticipated benefits from the Business Combination;
whether the Business Combination results in any increased or unforeseen costs or has an impact on the Firms
ability to retain or compete for professional talent or investor capital;
global economic, business, market and geopolitical conditions, including the impact of public health crises, such
as the ongoing rapid, worldwide spread of a novel strain of coronavirus and the pandemic caused thereby (collectively,
the Firms dependence on and ability to retain working partners and other key employees;
the Firms ability to successfully identify, recruit and develop talent;
risks associated with strategic transactions, such as joint ventures, strategic investments, acquisitions and
conditions impacting the corporate advisory industry;
the Firms dependence on its
clients and fluctuating
revenues from its
the high volatility of the Firms revenues as a result of its reliance on advisory fees that are largely
contingent on the completion of events which may be out of its control;
the ability of the Firms clients to pay for its services, including its restructuring clients;
the Firms ability to appropriately manage conflicts of interest and tax and other regulatory factors
relevant to the Firms business, including actual, potential or perceived conflicts of interest and other factors that may damage its business and reputation;
strong competition from other financial advisory and investment banking firms;
potential impairment of goodwill and other intangible assets, which represent a significant portion of the
the Firms successful formulation and execution of its business and growth strategies;
the outcome of third-party litigation involving the Firm;
substantial litigation risks in the financial services industry;
cybersecurity and other operational risks;
the Firms ability to expand into new markets and lines of businesses for the advisory business;
exposure to fluctuations in foreign currency exchange rates;
assumptions relating to the Firms operations, financial results, financial condition, business prospects,
growth strategy and liquidity;
extensive regulation of the corporate advisory industry and U.S. and foreign regulatory developments relating to,
among other things, financial institutions and markets, government oversight, fiscal and tax policy and laws (including the treatment of carried interest); and
the impact of the global
pandemic on any of the foregoing risks.
The forward-looking statements in this press release and oral statements made from time to time by representatives of PWP are based on
current expectations and beliefs concerning future developments and their potential effects on the Firm. There can be no assurance that future developments affecting the Firm will be those that the Firm has anticipated. These forward-looking
statements involve a number of risks, uncertainties (some of which are beyond the Firms control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these
forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in the section entitled Risk Factors in our Current Report on Form
the SEC on June 30, 2021 and the other documents filed by the Company from time to time with the SEC. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in
material respects from those projected in these forward-looking statements. The Firm undertakes no obligation to update or revise any forward- looking statements, whether as a result of new information, future events or otherwise, except as may be
required under applicable securities laws.
For Perella Weinberg Partners Investor Relations:
For Perella Weinberg Partners Media:
Condensed Consolidated Statements of Operations (Unaudited)
Compensation and benefits
Technology and infrastructure
Rent and occupancy
Travel and related expenses
General, administrative and other expenses
Depreciation and amortization
Related party income
Other income (expense)
Change in fair value of warrant liabilities
Loss on debt extinguishment
Income (loss) before income taxes
Net income (loss) attributable to non-controlling interests
Net income (loss) attributable to Perella Weinberg
Net income (loss) per share attributable to Class A common
Weighted-average shares of Class A common stock outstanding (1)
U.S. GAAP Reconciliation of Adjusted Results (Unaudited)
(Dollars in Thousands)
Total compensation and benefits - GAAP
Equity-based compensation not dilutive to investors in PWP or PWP OpCo (1)
Public company transaction related incentives (2)
expense - GAAP
TPH business combination related expenses (3)
Delayed offering cost expense (4)
FTIV Business combination transaction expenses (5)
Operating income (loss) - GAAP
FTIV business combination transaction expenses (5)
Adjusted operating income (loss)
income/(expense) - GAAP
Change in fair value of warrant liabilities (7)
Loss on debt extinguishment (8)
Amortization of debt costs (9)
Income (loss) before income taxes - GAAP
Adjusted income (loss) before income taxes
Income tax benefit (expense) - GAAP
Tax impact of
Adjusted income tax benefit (expense)
Net income (loss) - GAAP
Less: Adjusted income tax benefit (expense) (11)
tax impact (11)
Adjusted net income (loss) per Class A share diluted (12)
Notes to U.S. GAAP Reconciliation of Adjusted Results:
Equity-based compensation not dilutive to investors in PWP or PWP OpCo includes amortization of legacy awards
granted to certain partners prior to the Business Combination and PWP Professional Partners LP (Professional Partners) ACU and VCU awards. The vesting of these awards does not dilute PWP shareholders relative to Professional Partners as
Professional Partners interest in PWP OpCo does not change as a result of granting those equity awards to its working partners.
Public company transaction related incentives represents discretionary bonus payments directly related to
milestone events that are part of the Business Combination process and reorganization. These payments were outside of PWPs normal and recurring bonus and compensation processes.
On November 30, 2016, we completed a business combination with Tudor, Pickering, Holt & Co., LLC
(TPH), an independent advisory firm focused on the energy industry. TPH business combination related expenses include intangible asset amortization associated with the acquisition.
Previously deferred offering costs that were expensed due to termination of a public company transaction
process in May of 2020.
Transaction costs that were expensed associated with the Business Combination.
See reconciliation below for the components of the consolidated statements of operations included in
expense - GAAP as well as Adjusted
Change in fair value of warrant liabilities is
and we believe
not indicative of our core performance.
Loss on debt extinguishment resulted from the pay off of the 7.0% Subordinated Unsecured Convertible Notes due
2026 in conjunction with the Business Combination
Amortization of debt costs is composed of the amortization of debt discounts and issuance costs which is
included in interest expense.
Represents income tax impact of the adjustments shown to these GAAP financial statement line items.
No tax adjustment was made to reflect the exchange of partnership units for shares of PWPs Class A
common stock for the period after the Business Combination as it is considered not meaningful for this six day period.
Adjusted net income (loss) per Class A share - diluted for the periods ended June 30, 2021 is not
meaningful or comparative to GAAP diluted earnings per share which is only reflective of the six days of income after the Business Combination on June 24, 2021.
Three Months Ended June 30, 2021
Three Months Ended June 30, 2020
Six Months Ended June 30, 2021
Six Months Ended June 30, 2020
Reflects an adjustment to exclude transaction costs associated with the FTIV Business Combination.
Reflects an adjustment to exclude the amortization of intangible assets related to the TPH business
Reflects an adjustment to exclude previously deferred offering costs that were expensed due to termination of
the public company transaction process in May of 2020.
The above information was disclosed in a filing to the SEC. To see the filing, click here.
To receive a free e-mail notification whenever FinTech Acquisition Corp. IV makes a similar move, sign up!
Other recent filings from the company include the following:
FinTech Acquisition Corp.: Andrew Bednar Appointed Ceo Of Perella Weinberg Partners; - Sept. 26, 2022
Unregistered Sales of Equity - Sept. 7, 2022
Notification filed by national security exchange to report the removal from listing and registration of matured, redeemed or retired securities - Sept. 7, 2022
FinTech Acquisition Corp. IV director just declared 0 restricted shares - Sept. 7, 2022
FinTech Acquisition Corp. IV director just disposed of 358 shares - Aug. 31, 2022