Company Quick10K Filing
Lazard Group
Price1.00 EPS-360,038,000
Shares-0 P/E-0
MCap-0 P/FCF-0
Net Debt-558 EBIT464
TEV-558 TEV/EBIT-1
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-03-31 Filed 2020-05-04
10-K 2019-12-31 Filed 2020-02-25
10-Q 2019-09-30 Filed 2019-11-05
10-Q 2019-06-30 Filed 2019-07-29
10-Q 2019-03-31 Filed 2019-04-30
10-K 2018-12-31 Filed 2019-02-26
10-Q 2018-09-30 Filed 2018-10-29
10-Q 2018-06-30 Filed 2018-07-31
10-Q 2018-03-31 Filed 2018-04-30
10-K 2017-12-31 Filed 2018-02-27
10-Q 2017-09-30 Filed 2017-10-31
10-Q 2017-06-30 Filed 2017-08-01
10-Q 2017-03-31 Filed 2017-05-01
10-K 2016-12-31 Filed 2017-02-27
10-Q 2016-09-30 Filed 2016-10-28
10-Q 2016-06-30 Filed 2016-08-01
10-Q 2016-03-31 Filed 2016-04-27
10-K 2015-12-31 Filed 2016-02-25
10-Q 2015-09-30 Filed 2015-10-28
10-Q 2015-06-30 Filed 2015-07-27
10-Q 2015-03-31 Filed 2015-04-28
10-K 2014-12-31 Filed 2015-02-27
10-Q 2014-09-30 Filed 2014-10-28
10-Q 2014-06-30 Filed 2014-07-28
10-Q 2014-03-31 Filed 2014-05-06
10-K 2013-12-31 Filed 2014-02-27
10-Q 2013-09-30 Filed 2013-10-29
10-Q 2013-06-30 Filed 2013-07-30
10-Q 2013-03-31 Filed 2013-05-01
10-K 2012-12-31 Filed 2013-02-28
10-Q 2012-09-30 Filed 2012-11-01
10-Q 2012-06-30 Filed 2012-08-01
10-Q 2012-03-31 Filed 2012-05-03
10-K 2011-12-31 Filed 2012-02-29
10-Q 2011-09-30 Filed 2011-11-02
10-Q 2011-06-30 Filed 2011-08-04
10-Q 2011-03-31 Filed 2011-04-29
10-K 2010-12-31 Filed 2011-02-28
10-Q 2010-09-30 Filed 2010-10-29
10-Q 2010-06-30 Filed 2010-07-30
10-Q 2010-03-31 Filed 2010-04-30
10-K 2009-12-31 Filed 2010-03-01
8-K 2019-03-29
8-K 2019-03-12
8-K 2019-03-05
8-K 2019-03-05
8-K 2019-02-04
8-K 2018-09-26
8-K 2018-09-19
8-K 2018-09-12
8-K 2018-09-12

LZD 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements (Unaudited)
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Part IV
Item 6. Exhibits
EX-31.1 lzd-ex311_7.htm
EX-31.2 lzd-ex312_9.htm
EX-32.1 lzd-ex321_8.htm
EX-32.2 lzd-ex322_6.htm

Lazard Group Earnings 2020-03-31

Balance SheetIncome StatementCash Flow
5.04.03.02.01.00.02012201420172020
Assets, Equity
0.80.40.0-0.3-0.7-1.12012201420172020
Rev, G Profit, Net Income
0.40.20.0-0.2-0.4-0.62012201420172020
Ops, Inv, Fin

lzd-10q_20200331.htm
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2020

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

333-126751

(Commission File Number)

 

LAZARD GROUP LLC

(Exact name of registrant as specified in its charter)

 

 

Delaware

51-0278097

(State or Other Jurisdiction of Incorporation

(I.R.S. Employer Identification No.)

or Organization)

 

30 Rockefeller Plaza

New York, NY 10112

(Address of principal executive offices)

Registrant’s telephone number: (212632-6000

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

None

None

None

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

 

 

Emerging growth company

If the Registrant is an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

As of April 24, 2020, in addition to profit participation interests, there were two managing member interests outstanding.

 

 

 


 

TABLE OF CONTENTS

When we use the terms “Lazard Group”,”Lazard”, “we”, “us”, “our” and “the Company”, we mean Lazard Group LLC, a Delaware limited liability company, that is the current holding company for the subsidiaries that conduct our businesses. Lazard Ltd is a Bermuda exempt company whose shares of Class A common stock (“common stock”) are publicly traded on the New York Stock Exchange under the symbol “LAZ”. Lazard Ltd’s subsidiaries include Lazard Group and their respective subsidiaries. Lazard Ltd’s primary operating asset is its indirect ownership as of March 31, 2020 of all of the common membership interests in Lazard Group. Lazard Ltd controls Lazard Group through two of its indirect wholly-owned subsidiaries that are co-managing members of Lazard Group.

Lazard Group has granted profit participation interests in Lazard Group to certain of its managing directors. The profit participation interests are discretionary profits interests that are intended to enable Lazard Group to compensate its managing directors in a manner consistent with historical practices. Lazard Group has also granted profits interest participation rights to certain of its managing directors. See Note 13 of Notes to Consolidated Financial Statements.

 

 

 

Page

Part I. Financial Information

 

 

 

 

 

Item 1. Financial Statements (Unaudited)

 

1

 

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

36

 

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

61

 

 

 

Item 4. Controls and Procedures

 

61

 

 

 

Part II. Other Information

 

 

 

 

 

Item 1. Legal Proceedings

 

62

 

 

 

Item 1A. Risk Factors

 

62

 

 

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

63

 

 

 

Item 3. Defaults Upon Senior Securities

 

63

 

 

 

Item 4. Mine Safety Disclosures

 

63

 

 

 

Item 5. Other Information

 

63

 

 

 

Item 6. Exhibits

 

64

 

 

 

Signatures

 

66

 

 

 

i


 

PART I. FINANCIAL INFORMATION

Item 1.

Financial Statements (Unaudited)

 

 

 

Page

 

 

 

Condensed Consolidated Statements of Financial Condition as of March 31, 2020 and December 31, 2019

 

2

 

 

 

Condensed Consolidated Statements of Operations for the three month periods ended March 31, 2020 and 2019

 

4

 

 

 

Condensed Consolidated Statements of Comprehensive Income for the three month periods ended March 31, 2020 and 2019

 

5

 

 

 

Condensed Consolidated Statements of Cash Flows for the three month periods ended March 31, 2020 and 2019

 

6

 

 

 

Condensed Consolidated Statements of Changes in Members’ Equity for the three month periods ended March 31, 2020 and 2019

 

7

 

 

 

Notes to Condensed Consolidated Financial Statements

 

9

 

 

 

1


 

LAZARD GROUP LLC

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

MARCH 31, 2020 AND DECEMBER 31, 2019

(UNAUDITED)

(dollars in thousands)

 

 

 

March 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

780,529

 

 

$

1,164,135

 

Deposits with banks and short-term investments

 

 

1,080,737

 

 

 

1,180,686

 

Cash deposited with clearing organizations and other segregated cash

 

 

41,398

 

 

 

43,280

 

Receivables (net of allowance for doubtful accounts of $31,284 and $27,130

    at March 31, 2020 and December 31, 2019, respectively):

 

 

 

 

 

 

 

 

Fees

 

 

478,847

 

 

 

537,342

 

Customers and other

 

 

109,710

 

 

 

125,697

 

Lazard Ltd subsidiaries

 

 

68,107

 

 

 

34,612

 

 

 

 

656,664

 

 

 

697,651

 

Investments

 

 

505,753

 

 

 

531,995

 

Property (net of accumulated amortization and depreciation of $369,568 and $366,880

   at March 31, 2020 and December 31, 2019, respectively)

 

 

219,491

 

 

 

218,871

 

Operating lease right-of-use assets

 

 

532,873

 

 

 

551,050

 

Goodwill and other intangible assets (net of accumulated amortization

   of $66,185 and $65,757 at March 31, 2020 and December 31, 2019, respectively)

 

 

337,391

 

 

 

351,797

 

Deferred tax assets

 

 

46,732

 

 

 

55,728

 

Other assets

 

 

403,226

 

 

 

256,435

 

Total Assets

 

$

4,604,794

 

 

$

5,051,628

 

 

See notes to condensed consolidated financial statements.

 

2


 

LAZARD GROUP LLC

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

MARCH 31, 2020 AND DECEMBER 31, 2019

(UNAUDITED)

(dollars in thousands)

 

 

 

March 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

LIABILITIES AND MEMBERS’ EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Deposits and other customer payables

 

$

1,144,992

 

 

$

1,246,200

 

Accrued compensation and benefits

 

 

338,161

 

 

 

599,910

 

Operating lease liabilities

 

 

623,477

 

 

 

643,808

 

Payable to Lazard Ltd subsidiaries

 

 

9,378

 

 

 

63,399

 

Senior debt

 

 

1,680,204

 

 

 

1,679,562

 

Deferred tax liabilities

 

 

955

 

 

 

3,497

 

Other liabilities

 

 

522,768

 

 

 

527,926

 

Total Liabilities

 

 

4,319,935

 

 

 

4,764,302

 

Commitments and contingencies

 

 

 

 

 

 

 

 

MEMBERS’ EQUITY

 

 

 

 

 

 

 

 

Members' equity (net of 7,418,177 and 7,675,688 shares of Lazard Ltd Class A

   common stock, at a cost of $273,040 and $304,083 at March 31, 2020 and

   December 31, 2019, respectively)

 

 

501,490

 

 

 

469,324

 

Accumulated other comprehensive loss, net of tax

 

 

(286,387

)

 

 

(250,404

)

Total Lazard Group LLC Members' Equity

 

 

215,103

 

 

 

218,920

 

Noncontrolling interests

 

 

69,756

 

 

 

68,406

 

Total Members’ Equity

 

 

284,859

 

 

 

287,326

 

Total Liabilities and Members’ Equity

 

$

4,604,794

 

 

$

5,051,628

 

 

See notes to condensed consolidated financial statements.

 

3


 

LAZARD GROUP LLC

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2020 AND 2019

(UNAUDITED)

(dollars in thousands)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2020

 

 

2019

 

REVENUE

 

 

 

 

 

 

 

 

Investment banking and other advisory fees

 

$

297,673

 

 

$

319,355

 

Asset management fees

 

 

269,218

 

 

 

292,438

 

Interest income

 

 

2,252

 

 

 

3,564

 

Other

 

 

(11,488

)

 

 

29,534

 

Total revenue

 

 

557,655

 

 

 

644,891

 

Interest expense

 

 

20,075

 

 

 

18,889

 

Net revenue

 

 

537,580

 

 

 

626,002

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

318,283

 

 

 

370,248

 

Occupancy and equipment

 

 

32,045

 

 

 

28,118

 

Marketing and business development

 

 

20,136

 

 

 

27,925

 

Technology and information services

 

 

31,316

 

 

 

32,025

 

Professional services

 

 

14,236

 

 

 

13,801

 

Fund administration and outsourced services

 

 

26,390

 

 

 

28,930

 

Amortization and other acquisition-related costs (benefits)

 

 

428

 

 

 

(684

)

Other

 

 

9,016

 

 

 

16,776

 

Total operating expenses

 

 

451,850

 

 

 

517,139

 

OPERATING INCOME

 

 

85,730

 

 

 

108,863

 

Provision for income taxes

 

 

15,995

 

 

 

15,988

 

NET INCOME

 

 

69,735

 

 

 

92,875

 

LESS - NET LOSS ATTRIBUTABLE

   TO NONCONTROLLING INTERESTS

 

 

(5,691

)

 

 

(566

)

NET INCOME ATTRIBUTABLE TO LAZARD GROUP LLC

 

$

75,426

 

 

$

93,441

 

 

 

See notes to condensed consolidated financial statements.

 

4


 

LAZARD GROUP LLC

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2020 AND 2019

(UNAUDITED)

(dollars in thousands)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2020

 

 

2019

 

NET INCOME

 

$

69,735

 

 

$

92,875

 

OTHER COMPREHENSIVE INCOME (LOSS), NET OF

   TAX:

 

 

 

 

 

 

 

 

Currency translation adjustments

 

 

(46,966

)

 

 

2,929

 

Employee benefit plans:

 

 

 

 

 

 

 

 

Prior service costs (net of tax expense of $36 for the

    three months ended March 31, 2020)

 

 

175

 

 

 

-

 

Actuarial gain (net of tax expense

   of $1,790 and $300 for the three months ended

   March 31, 2020 and 2019, respectively)

 

 

8,913

 

 

 

49

 

Adjustment for items reclassified to earnings (net of

   tax expense of $338 and $178 for the three months

   ended March 31, 2020 and 2019, respectively)

 

 

1,895

 

 

 

1,132

 

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX

 

 

(35,983

)

 

 

4,110

 

COMPREHENSIVE INCOME

 

 

33,752

 

 

 

96,985

 

LESS - COMPREHENSIVE LOSS ATTRIBUTABLE TO

   NONCONTROLLING INTERESTS

 

 

(5,691

)

 

 

(565

)

COMPREHENSIVE INCOME ATTRIBUTABLE TO

   LAZARD GROUP LLC

 

$

39,443

 

 

$

97,550

 

 

 

See notes to condensed consolidated financial statements.

 

5


 

LAZARD GROUP LLC

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2020 AND 2019

(UNAUDITED)

(dollars in thousands)

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2020

 

 

2019

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net income

 

$

69,735

 

 

$

92,875

 

Adjustments to reconcile net income to net cash provided by (used in)

   operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization of property

 

 

8,908

 

 

 

8,108

 

Noncash lease expense

 

 

15,453

 

 

 

11,938

 

Amortization of deferred expenses and share-based incentive

   compensation

 

 

100,952

 

 

 

104,809

 

Amortization and other acquisition-related costs (benefits)

 

 

428

 

 

 

(684

)

Deferred tax provision (benefit)

 

 

3,034

 

 

 

(2,326

)

Loss on extinguishment of debt

 

 

-

 

 

 

4,243

 

(Increase) decrease in operating assets and increase (decrease) in

   operating liabilities:

 

 

 

 

 

 

 

 

Receivables-net

 

 

26,477

 

 

 

(21,886

)

Investments

 

 

23,325

 

 

 

(40,160

)

Other assets

 

 

(171,365

)

 

 

(84,911

)

Accrued compensation and benefits and other liabilities

 

 

(253,157

)

 

 

(254,708

)

Net cash used in operating activities

 

 

(176,210

)

 

 

(182,702

)

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Additions to property

 

 

(11,994

)

 

 

(5,867

)

Disposals of property

 

 

69

 

 

 

70

 

Net cash used in investing activities

 

 

(11,925

)

 

 

(5,797

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Proceeds from:

 

 

 

 

 

 

 

 

Issuance of senior debt, net of expenses

 

 

-

 

 

 

491,875

 

Customer deposits

 

 

-

 

 

 

185,871

 

Contributions from noncontrolling interests

 

 

-

 

 

 

72

 

Other financing activities

 

 

25

 

 

 

925

 

Payments for:

 

 

 

 

 

 

 

 

Senior debt

 

 

-

 

 

 

(171,668

)

Customer deposits

 

 

(70,652

)

 

 

-

 

Distributions to noncontrolling interests

 

 

(1,411

)

 

 

(591

)

Purchase of Class A common stock

 

 

(95,227

)

 

 

(192,097

)

Distributions to members

 

 

-

 

 

 

(52,210

)

Settlement of share-based incentive compensation

 

 

(66,728

)

 

 

(90,657

)

Other financing activities

 

 

(1,869

)

 

 

(3,082

)

Net cash provided by (used in) financing activities

 

 

(235,862

)

 

 

168,438

 

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND

   CASH EQUIVALENTS AND RESTRICTED CASH

 

 

(61,440

)

 

 

(29,814

)

NET DECREASE IN CASH AND

   CASH EQUIVALENTS AND RESTRICTED CASH

 

 

(485,437

)

 

 

(49,875

)

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—

   January 1

 

 

2,388,101

 

 

 

2,230,388

 

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—

   March 31

 

$

1,902,664

 

 

$

2,180,513

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

   WITHIN THE CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL

   CONDITION:

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Cash and cash equivalents

 

$

780,529

 

 

$

1,164,135

 

Deposits with banks and short-term investments

 

 

1,080,737

 

 

 

1,180,686

 

Cash deposited with clearing organizations and other segregated cash

 

 

41,398

 

 

 

43,280

 

TOTAL CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

 

$

1,902,664

 

 

$

2,388,101

 

 

 

See notes to condensed consolidated financial statements.

 

6


 

LAZARD GROUP LLC

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS’ EQUITY

FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2019

(UNAUDITED)

(dollars in thousands)

 

 

 

 

 

 

 

Accumulated

Other

Comprehensive

 

 

Total

Lazard Group

 

 

 

 

 

 

Total

 

 

 

Members'

 

 

Income (Loss),

 

 

Members'

 

 

Noncontrolling

 

 

Members'

 

 

 

Equity

 

 

Net of Tax

 

 

Equity

 

 

Interests

 

 

Equity

 

Balance - January 1, 2019 (*)

 

$

758,705

 

 

$

(228,660

)

 

$

530,045

 

 

$

52,707

 

 

$

582,752

 

Comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

93,441

 

 

 

 

 

 

 

93,441

 

 

 

(566

)

 

 

92,875

 

Other comprehensive income - net of tax

 

 

 

 

 

 

4,109

 

 

 

4,109

 

 

 

1

 

 

 

4,110

 

Amortization of share-based incentive

   compensation

 

 

84,681

 

 

 

 

 

 

 

84,681

 

 

 

 

 

 

 

84,681

 

Distributions to members and noncontrolling interests, net

 

 

(52,210

)

 

 

 

 

 

 

(52,210

)

 

 

(519

)

 

 

(52,729

)

Purchase of Class A common stock

 

 

(192,097

)

 

 

 

 

 

 

(192,097

)

 

 

 

 

 

 

(192,097

)

Delivery of Class A common stock in

   connection with share-based incentive

   compensation and related tax benefit

   of $88

 

 

(90,569

)

 

 

 

 

 

 

(90,569

)

 

 

 

 

 

 

(90,569

)

Business acquisitions and related equity

   transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A common stock issuable

   (including related amortization)

 

 

53

 

 

 

 

 

 

 

53

 

 

 

 

 

 

 

53

 

Other

 

 

(2,231

)

 

 

 

 

 

 

(2,231

)

 

 

 

 

 

 

(2,231

)