Greenhill & Co. Inc. (GHL, Financial) filed Quarterly Report for the period ended 2009-06-30.
GREENHILL & CO. Inc. is a leading independent investment bank that provides financial advice on significant mergers acquisitions and restructurings; assists private funds in raising capital from investors; and manages merchant banking funds. It acts for clients located throughout the world from its offices in New York London Frankfurt Toronto Dallas and San Francisco. Greenhill & Co. Inc. has a market cap of $2.21 billion; its shares were traded at around $78.39 with a P/E ratio of 93.3 and P/S ratio of 9.9. The dividend yield of Greenhill & Co. Inc. stocks is 2.3%.
For the six months ended June 30, 2009, total operating expenses were $76.4 million, compared to $107.0 million of total operating expenses for the same period in 2008. The decrease of $30.6 million or 29% relates principally to a decrease in compensation expense described in more detail below. The pre-tax income margin for the six months ended June 30, 2009 was 34% compared to 42% for the comparable period in 2008.
Our employee compensation and benefits expenses in the second quarter of 2009 were $25.2 million, which reflects a 47% ratio of compensation to revenues. This amount compares to $49.8 million for the second quarter of 2008, which reflected a 46% ratio of compensation to revenues. The decrease of $24.6 million or 49% is due to the lower level of revenues in the second quarter of 2009 compared to the same period in the prior year. The increase in the ratio of compensation to revenues in the second quarter of 2009
For the six months ended June 30, 2009, our employee compensation and benefits expenses were $53.7 million, compared to $84.5 million of compensation and benefits expenses for the same period in the prior year. The decrease of $30.8 million or 36% is due to lower revenues in the first six months of 2009 compared to the same period in the prior year. For the six months ended June 30, 2009 and 2008, the ratio of compensation to revenues remained constant at 46%.
In the first six months of 2009, our cash and cash equivalents decreased by $7.8 million from December 31, 2008. We generated $20.0 million in operating activities, including $49.2 million from net income after giving effect to the non-cash items and a net decrease in working capital of $29.2 million (principally from the payments of year-end bonuses and taxes). We used $2.0 million in investing activities, including $8.2 million in new investments in our merchant banking funds and other investments and $1.7 million for the build-out of new office space, partially offset by distributions from investments of $7.9 million. We used $27.5 million for financing activities, including, $7.7 million for the repurchase of our common stock and $27.7 million for the payment of dividends partially offset by $6.9 million of net borrowing from our revolving loan facility.
In the first six months of 2008, our cash and cash equivalents decreased by $111.5 million from December 31, 2007. We used $54.9 million in operating activities, including $14.8 million from net income after giving effect to the non-cash items, offset by a net decrease in working capital of $69.7 million (principally from the payments of year-end bonuses and taxes). We used $0.8 million in investing activities, including $14.6 million for investments in our merchant banking funds and GHL Acquisition Corp. and $1.4 million which was used for equipment purchases and leasehold improvements partially, offset by $4.0 million of distributions received from our merchant banking investments and proceeds of $11.2 million from the sale of investments. We used $56.0 million for financing activities, including $8.5 million for the net repayment of our revolving loan facility, $21.0 million for the repurchase of our common stock, $26.0 million for the payment of dividends and $1.4 million for the repayment of prior undistributed earnings to GCIs U.K. members.
Read the The complete ReportGHL is in the portfolios of John Keeley of Keeley Fund Management, Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC.
GREENHILL & CO. Inc. is a leading independent investment bank that provides financial advice on significant mergers acquisitions and restructurings; assists private funds in raising capital from investors; and manages merchant banking funds. It acts for clients located throughout the world from its offices in New York London Frankfurt Toronto Dallas and San Francisco. Greenhill & Co. Inc. has a market cap of $2.21 billion; its shares were traded at around $78.39 with a P/E ratio of 93.3 and P/S ratio of 9.9. The dividend yield of Greenhill & Co. Inc. stocks is 2.3%.
Highlight of Business Operations:
In terms of new investment activity during the second quarter of 2009, our funds invested $0.2 million, 8% of which was firm capital. In the second quarter of 2008, our funds invested $14.4 million, 10% of which was firm capital. On a year-to-date basis, our funds invested in $9.5 million, 12% of which was firm capital. In the same period in 2008 our funds invested $28.1 million, 10% of which was firm capital.For the six months ended June 30, 2009, total operating expenses were $76.4 million, compared to $107.0 million of total operating expenses for the same period in 2008. The decrease of $30.6 million or 29% relates principally to a decrease in compensation expense described in more detail below. The pre-tax income margin for the six months ended June 30, 2009 was 34% compared to 42% for the comparable period in 2008.
Our employee compensation and benefits expenses in the second quarter of 2009 were $25.2 million, which reflects a 47% ratio of compensation to revenues. This amount compares to $49.8 million for the second quarter of 2008, which reflected a 46% ratio of compensation to revenues. The decrease of $24.6 million or 49% is due to the lower level of revenues in the second quarter of 2009 compared to the same period in the prior year. The increase in the ratio of compensation to revenues in the second quarter of 2009
For the six months ended June 30, 2009, our employee compensation and benefits expenses were $53.7 million, compared to $84.5 million of compensation and benefits expenses for the same period in the prior year. The decrease of $30.8 million or 36% is due to lower revenues in the first six months of 2009 compared to the same period in the prior year. For the six months ended June 30, 2009 and 2008, the ratio of compensation to revenues remained constant at 46%.
In the first six months of 2009, our cash and cash equivalents decreased by $7.8 million from December 31, 2008. We generated $20.0 million in operating activities, including $49.2 million from net income after giving effect to the non-cash items and a net decrease in working capital of $29.2 million (principally from the payments of year-end bonuses and taxes). We used $2.0 million in investing activities, including $8.2 million in new investments in our merchant banking funds and other investments and $1.7 million for the build-out of new office space, partially offset by distributions from investments of $7.9 million. We used $27.5 million for financing activities, including, $7.7 million for the repurchase of our common stock and $27.7 million for the payment of dividends partially offset by $6.9 million of net borrowing from our revolving loan facility.
In the first six months of 2008, our cash and cash equivalents decreased by $111.5 million from December 31, 2007. We used $54.9 million in operating activities, including $14.8 million from net income after giving effect to the non-cash items, offset by a net decrease in working capital of $69.7 million (principally from the payments of year-end bonuses and taxes). We used $0.8 million in investing activities, including $14.6 million for investments in our merchant banking funds and GHL Acquisition Corp. and $1.4 million which was used for equipment purchases and leasehold improvements partially, offset by $4.0 million of distributions received from our merchant banking investments and proceeds of $11.2 million from the sale of investments. We used $56.0 million for financing activities, including $8.5 million for the net repayment of our revolving loan facility, $21.0 million for the repurchase of our common stock, $26.0 million for the payment of dividends and $1.4 million for the repayment of prior undistributed earnings to GCIs U.K. members.
Read the The complete ReportGHL is in the portfolios of John Keeley of Keeley Fund Management, Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC.
