Moelis Posts $22.1 Million Profit in First Report Since IPO

May 07, 2014 6:08 pm ET

(Updates with compensation ratio in sixth paragraph.)

May 7 (Bloomberg) -- Moelis & Co. posted profit of $22.1 million in the investment bank’s first quarterly report since raising $186.9 million in an initial public offering last month.

First-quarter net income climbed from $711,000 a year earlier, the New York-based firm said today in a statement. Adjusted earnings excluding some items were 37 cents a share.

Chief Executive Officer Ken Moelis, 55, a Wall Street veteran who founded the firm in 2007, took the company public amid an increase in mergers and acquisitions. The value of announced takeovers in 2014 hit $1 trillion April 28, reaching that level at the fastest pace in seven years after more than $300 billion in deals were announced last month.

“This was the strongest first quarter in our firm’s history,” the CEO said on a conference call after earnings were released.

Revenue increased 91 percent to $114.5 million from a year earlier, according to the statement. Moelis said it earned revenue from 110 clients in the quarter, up from 97 in the same period last year.

Expenses climbed 49 percent to $90.6 million, fueled by a 62 percent jump in compensation and benefits to $70.4 million. The firm’s compensation ratio dropped to 62 percent from 73 percent a year earlier.

The company promoted five people to managing director, ending the quarter with 317 bankers and 87 managing directors, the CEO said.

Moelis gained 6.9 percent since its April 15 IPO to $26.73 at 4:03 p.m. in New York.