PJT Partners Inc. Reports Third Quarter 2016 Results

PJT Partners Inc. (the "Company" or "PJT Partners") (NYSE:PJT) today reported its third quarter 2016 results. Total Revenues for the three months ended September 30, 2016 were $121.3 million compared with $147.3 million for the three months ended September 30, 2015. GAAP Pretax Loss was $2.0 million for the three months ended September 30, 2016 compared with GAAP Pretax Income of $43.9 million for the three months ended September 30, 2015. Adjusted Pretax Income was $21.0 million for the three months ended September 30, 2016 compared with $49.1 million for the three months ended September 30, 2015.

Total Revenues for the nine months ended September 30, 2016 were $325.9 million compared with $302.1 million for the nine months ended September 30, 2015. GAAP Pretax Loss was $9.5 million for the nine months ended September 30, 2016 compared with GAAP Pretax Income of $22.7 million for the nine months ended September 30, 2015. Adjusted Pretax Income was $50.4 million for the nine months ended September 30, 2016 compared with $52.6 million for the nine months ended September 30, 2015.

Paul J. Taubman, Chairman and Chief Executive Officer, said, "We continue to be pleased with the progress we have made since becoming an independent, public company. Clients around the globe are increasingly turning to PJT Partners for sophisticated financial advice and our year-to-date results reflect the positive momentum in our business. We remain confident in our near, intermediate and long term prospects."

The Company's revenues and net income can fluctuate materially depending on the number, size and timing of completed transactions on which it advises 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.

The financial information and results presented below for the periods prior to October 1, 2015 reflect the historical results of operations of the strategic advisory services, restructuring and reorganization advisory services and Park Hill Group businesses of The Blackstone Group L.P. ("Blackstone") prior to the formation of PJT Partners. The financial information for those periods discussed below and included in this earnings release may not necessarily reflect what our financial condition, results of operations or cash flows would have been had we been a stand-alone company during such periods or what our financial condition, results of operations and cash flows may be in the future.

Revenues

The following table presents revenues for the three and nine months ended September 30, 2016 and 2015 (dollars in thousands; unaudited):
     

Three Months Ended

September 30,
     

 
      Nine Months Ended

September 30,
     

 
2016       2015 Change 2016       2015 Change
Advisory $   100,728 $   116,205   -13 % $   241,360 $   221,471   9 %
Placement 18,327 27,776 -34 % 78,930 76,099 4 %
Interest Income and Other     2,291     3,341   -31 %     5,644     4,546   24 %
Total Revenues $   121,346 $   147,322   -18 % $   325,934 $   302,116   8 %

For the three months ended September 30, 2016, Total Revenues were $121.3 million compared with $147.3 million for the three months ended September 30, 2015, a decrease of 18%. Advisory Revenues were $100.7 million for the three months ended September 30, 2016 compared with $116.2 million for the three months ended September 30, 2015, a decrease of 13%. The decrease in Advisory Revenues was primarily driven by an overall decrease in the size of transactions that closed during the three months ended September 30, 2016. A decrease in strategic advisory activity was partially offset by an increase in restructuring and special situations activity. Placement Revenues were $18.3 million for the three months ended September 30, 2016 compared with $27.8 million for the three months ended September 30, 2015, a decrease of 34%. The decline in Placement Revenues was primarily due to a decrease in the number and size of fund placement transactions that closed during the quarter.

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