Greenhill & Co. Inc. (GHL, Financial) filed Annual Report for the period ended 2010-12-31.
Greenhill & Co. Inc. has a market cap of $2.14 billion; its shares were traded at around $72.91 with a P/E ratio of 65.1 and P/S ratio of 7.68. The dividend yield of Greenhill & Co. Inc. stocks is 2.47%. Greenhill & Co. Inc. had an annual average earning growth of 11.8% over the past 5 years.Hedge Fund Gurus that owns GHL: Manning & Napier Advisors, Inc. Mutual Fund and Other Gurus that owns GHL: John Keeley of Keeley Fund Management, Kenneth Fisher of Fisher Asset Management, LLC, Murray Stahl of Horizon Asset Management.
2009 versus 2008. For the year ended December 31, 2009, the firm earned $82.6 million in merchant banking and other revenues compared to $3.7 million in 2008, an increase of $78.9 million. The increase in merchant banking and other investment revenue resulted primarily from the $42.2 million unrealized gain on the firms investment in Iridium and the $21.8 million gain related to the sale of certain merchant banking assets in connection with the separation of the merchant banking business. In 2009 there was a slight increase in the fair market value of our investments in the merchant banking funds as compared to a decline in the fair market value of the merchant banking funds in 2008. The decrease in management fees in 2009 as compared to 2008 related to the payment of a transaction fee by a merchant banking portfolio company in 2008, which offset management fees payable in 2009.
2010 versus 2009. For the year ended December 31, 2010, our non-compensation expenses were $59.5 million, compared to $46.5 million for the same period in 2009, reflecting an increase of $13 million or 28%. The increase in non-compensation expenses includes costs from our recently acquired Australian business of $6.7 million, including $2.4 million related to the amortization of acquired intangible assets. As compared to 2009 the remainder of the increase in costs related to higher occupancy, travel, and other costs related to the increase in personnel and transaction costs incurred for the Australian acquisition. Interest expense increased due to higher average borrowings outstanding in 2010 as compared to 2009.
2010 versus 2009. For the year ended December 31, 2010, net income allocated to common stockholders was $34.5 million, or $1.12 per diluted share, as compared to net income allocated to common stockholders of $71.2 million, or $2.39 per diluted share, in 2009. The decrease in earnings per share principally resulted from the increase in both compensation and non-compensation costs as described above as well as the decrease in total revenues.
At December 31, 2010 we had unfunded commitments to the existing merchant banking funds of approximately $34.6 million, of which we expect up to $28.2 million will be drawn down in the next few years. We expect that approximately $1.5 million of the firms unfunded commitment to GCP II of $7.9 million may be drawn down for follow-on investments through June 2012, the termination date of the funds extended commitment period, with the remaining commitment to be undrawn. Our unfunded commitments to GSAVP, GCP Europe, Greenhill Capital Partners III were $3.4 million, $19.0 million (£12.2 million), and $4.3 million, respectively, as of December 31, 2010 and may be drawn on through September 2011, December 2012, and November 2015, respectively. See Managements Discussion and Analysis of Financial Condition and Results of Operations Contractual Obligations.
During the year ended December 31, 2010 the firm repurchased 181,550 shares of its common stock in open market purchases at an average price of $68.21. As of February 23, 2011 we had remaining authorization to repurchase up to $87.6 million. Additionally, during the year ended December 31, 2010, the firm is deemed to have repurchased 317,554 shares of its common stock at an average price of $78.18 per share (for a total cost of $24.8 million) in conjunction with the payment of tax liabilities in respect of stock delivered to its employees in settlement of restricted stock units. Based upon the number of restricted stock unit grants outstanding at December 31, 2010, we expect to fund repurchases of our common stock from our employees in conjunction with the cash settlement of tax liabilities incurred on vesting of restricted stock units of approximately $91.5 million (as calculated based upon the closing share price as of February 7, 2011) over the next five years, of which approximately $22.6 million will be payable in 2011, $14.3 million will be payable in 2012, $14.7 million will be payable in 2013, $27.8 million will be payable in 2014, and $12.1 million will be payable in 2015 (assuming tax rates remain at the current levels). We will realize a corporate income tax benefit concurrently with the cash settlement payments.
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Greenhill & Co. Inc. has a market cap of $2.14 billion; its shares were traded at around $72.91 with a P/E ratio of 65.1 and P/S ratio of 7.68. The dividend yield of Greenhill & Co. Inc. stocks is 2.47%. Greenhill & Co. Inc. had an annual average earning growth of 11.8% over the past 5 years.Hedge Fund Gurus that owns GHL: Manning & Napier Advisors, Inc. Mutual Fund and Other Gurus that owns GHL: John Keeley of Keeley Fund Management, Kenneth Fisher of Fisher Asset Management, LLC, Murray Stahl of Horizon Asset Management.
Highlight of Business Operations:
In 2009, we recognized a gain of $21.8 million from the sale of certain assets relating to our merchant banking business to GCP Capital in exchange for 289,050 shares of the firms common stock. In addition, approximately $2.6 million of additional gain on the sale was deferred and is being recognized principally over the two years following the sale. In 2010 we recognized $1.1 million of the $2.6 million deferred gain.2009 versus 2008. For the year ended December 31, 2009, the firm earned $82.6 million in merchant banking and other revenues compared to $3.7 million in 2008, an increase of $78.9 million. The increase in merchant banking and other investment revenue resulted primarily from the $42.2 million unrealized gain on the firms investment in Iridium and the $21.8 million gain related to the sale of certain merchant banking assets in connection with the separation of the merchant banking business. In 2009 there was a slight increase in the fair market value of our investments in the merchant banking funds as compared to a decline in the fair market value of the merchant banking funds in 2008. The decrease in management fees in 2009 as compared to 2008 related to the payment of a transaction fee by a merchant banking portfolio company in 2008, which offset management fees payable in 2009.
2010 versus 2009. For the year ended December 31, 2010, our non-compensation expenses were $59.5 million, compared to $46.5 million for the same period in 2009, reflecting an increase of $13 million or 28%. The increase in non-compensation expenses includes costs from our recently acquired Australian business of $6.7 million, including $2.4 million related to the amortization of acquired intangible assets. As compared to 2009 the remainder of the increase in costs related to higher occupancy, travel, and other costs related to the increase in personnel and transaction costs incurred for the Australian acquisition. Interest expense increased due to higher average borrowings outstanding in 2010 as compared to 2009.
2010 versus 2009. For the year ended December 31, 2010, net income allocated to common stockholders was $34.5 million, or $1.12 per diluted share, as compared to net income allocated to common stockholders of $71.2 million, or $2.39 per diluted share, in 2009. The decrease in earnings per share principally resulted from the increase in both compensation and non-compensation costs as described above as well as the decrease in total revenues.
At December 31, 2010 we had unfunded commitments to the existing merchant banking funds of approximately $34.6 million, of which we expect up to $28.2 million will be drawn down in the next few years. We expect that approximately $1.5 million of the firms unfunded commitment to GCP II of $7.9 million may be drawn down for follow-on investments through June 2012, the termination date of the funds extended commitment period, with the remaining commitment to be undrawn. Our unfunded commitments to GSAVP, GCP Europe, Greenhill Capital Partners III were $3.4 million, $19.0 million (£12.2 million), and $4.3 million, respectively, as of December 31, 2010 and may be drawn on through September 2011, December 2012, and November 2015, respectively. See Managements Discussion and Analysis of Financial Condition and Results of Operations Contractual Obligations.
During the year ended December 31, 2010 the firm repurchased 181,550 shares of its common stock in open market purchases at an average price of $68.21. As of February 23, 2011 we had remaining authorization to repurchase up to $87.6 million. Additionally, during the year ended December 31, 2010, the firm is deemed to have repurchased 317,554 shares of its common stock at an average price of $78.18 per share (for a total cost of $24.8 million) in conjunction with the payment of tax liabilities in respect of stock delivered to its employees in settlement of restricted stock units. Based upon the number of restricted stock unit grants outstanding at December 31, 2010, we expect to fund repurchases of our common stock from our employees in conjunction with the cash settlement of tax liabilities incurred on vesting of restricted stock units of approximately $91.5 million (as calculated based upon the closing share price as of February 7, 2011) over the next five years, of which approximately $22.6 million will be payable in 2011, $14.3 million will be payable in 2012, $14.7 million will be payable in 2013, $27.8 million will be payable in 2014, and $12.1 million will be payable in 2015 (assuming tax rates remain at the current levels). We will realize a corporate income tax benefit concurrently with the cash settlement payments.
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