Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Shares of our Class A common stock began trading on the Nasdaq Global Select Market under the symbol “HLNE” on March 1, 2017. Prior to that date, there was no public trading market for shares of our Class A common stock.
There is no established public trading market for our Class B common stock. Class B common stock may not be transferred independently of the corresponding Class B units, which are subject to significant restrictions on transfer as set forth in the HLA Operating Agreement. Holders of Class B common stock are entitled to receive only the par value ($0.001) of the Class B common stock upon exchange of the corresponding Class B unit pursuant to the exchange agreement.
Holders of Record
As of May 25, 2021, there were four stockholders of record of our Class A common stock. The number of record holders does not include persons who held shares of our Class A common stock in nominee or “street name” accounts through brokers. As of May 25, 2021, there were 32 stockholders of record of our Class B common stock.
Dividend Policy
We declared a quarterly dividend of $0.3125 per share of Class A common stock to record holders in each quarter of fiscal 2021. On May 27, 2021, we declared a quarterly dividend of $0.35 per share of Class A common stock to record holders at the close of business on June 15, 2021. The payment date will be July 7, 2021. We do not pay dividends on our Class B common stock.
The declaration and payment by us of any future dividends to holders of our Class A common stock is at the sole discretion of our board of directors. Our board intends to cause us to continue to pay a comparable cash dividend on a quarterly basis. Subject to funds being legally available, we intend to cause HLA to make pro rata distributions to its members, including us, in an amount at least sufficient to allow us to pay all applicable taxes, to make payments under the tax receivable agreement, and to pay our corporate and other overhead expenses, including dividend payments to our stockholders.
Stock Performance Graph
The following graph and table depict the total return to stockholders from the closing price on March 1, 2017 (the date our Class A common stock began trading on Nasdaq) through March 31, 2021, relative to the performance of the S&P 500 Index and the Dow Jones U.S. Asset Managers Index. The graph and table assume $100 invested on March 1, 2017, and dividends reinvested in the security or index.
The performance graph and table are not intended to be indicative of future performance. The performance graph and table shall not be deemed “soliciting material” or to be “filed” with the SEC for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under that Section, and shall not be deemed to be incorporated by reference into any of the Company’s filings under the Securities Act or the Exchange Act.
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3/1/17 3/31/17 3/31/18 3/31/19 3/31/20 3/31/21
Hamilton Lane Incorporated $ 100.00 $ 103.61 $ 211.93 $ 253.14 $ 327.52 $ 533.89
S&P 500 100.00 98.75 112.54 123.22 114.62 179.19
Dow Jones US Asset Managers Index 100.00 96.85 120.71 101.29 86.49 150.63
Issuer Purchases of Equity Securities
The following table provides information about our repurchase activity with respect to shares of our Class A common stock for the quarter ended March 31, 2021:
Period Total
Number of
Shares
Purchased(1) Average Price
Paid per
Share Total Number of
Shares
Purchased as
Part of Publicly
Announced
Plans or
Programs Maximum Approximate
Dollar Value of
Shares
that May Yet Be
Purchased Under the
Plans or Programs(2)
January 1-31, 2021 48 $ 78.05 — $ 50,000,000
February 1-28, 2021 — $ — — $ 50,000,000
March 1-31, 2021 69,403 $ 87.09 — $ 50,000,000
Total 69,451 $ 87.08 — $ 50,000,000
(1) Represents shares of Class A common stock tendered by employees as payment of taxes withheld on the vesting of restricted stock granted under the Hamilton Lane Incorporated 2017 Equity Incentive Plan, as amended (the “2017 Equity Plan”).
(2) On November 6, 2018, we announced that our board of directors authorized a program to repurchase, in the aggregate, up to 6% of the outstanding shares of our Class A common stock as of the date of the authorization, not to exceed $50 million (the “Stock Repurchase Program”). The authorization provides us the flexibility to repurchase shares in the open market or in privately negotiated transactions from time to time, based on market conditions and other factors. We have not repurchased any of our Class A common stock under the Stock Repurchase Program, so the full purchase authority remains available under this program, which expires 12 months after the date of the first acquisition under the authorization.
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Item 6. Selected Financial Data
The following selected consolidated income statement data for the years ended March 31, 2021, 2020, and 2019 and the selected consolidated balance sheet data as of March 31, 2021 and 2020 are derived from our audited consolidated financial statements included elsewhere in this Form 10-K. The following selected consolidated income statement data for the years ended March 31, 2018 and 2017, and the selected consolidated balance sheet data as of March 31, 2019, 2018 and 2017 are derived from our audited consolidated financial statements not included in this Form 10-K. This information should be read in conjunction with, and is qualified by reference to, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 and the consolidated financial statements and notes thereto in Part II, Item 8 of this Form 10-K. The data presented below for periods before our IPO does not reflect the added costs we incur as a public company. Our historical results are not necessarily indicative of the results to be expected in the future.
Year Ended March 31,
2021 2020 2019 2018 2017
Income Statement Data (in thousands, except per share amounts)
Revenues
Management and advisory fees
$ 289,444 $ 244,920 $ 217,773 $ 195,030 $ 172,674
Incentive fees
52,191 29,128 34,406 49,003 7,146
Total revenues
341,635 274,048 252,179 244,033 179,820
Total expenses
185,907 157,619 147,955 121,080 103,705
Total other income (expense)
37,474 24,315 25,333 16,677 (1,361)
Income before income taxes
193,202 140,744 129,557 139,630 74,754
Income tax expense
24,417 13,968 30,560 33,333 316
Net income
168,785 126,776 98,997 106,297 74,438
Less: Income attributable to non-controlling interests
70,763 65,951 65,424 88,956 73,826
Net income attributable to Hamilton Lane Incorporated
$ 98,022 $ 60,825 $ 33,573 $ 17,341 $ 612
Earnings per share of Class A common stock:
Basic
$ 2.82 $ 2.17 $ 1.41 $ 0.94 $ 0.03
Diluted
$ 2.81 $ 2.15 $ 1.40 $ 0.93 $ 0.03
Dividends declared per share of Class A common stock
$ 1.25 $ 1.10 $ 0.85 $ 0.70 $ —
Non-GAAP Financial Measures
Fee Related Earnings (1)
130,039 100,978 89,901 81,223 72,252
Adjusted EBITDA (1)
168,239 127,292 117,736 132,586 83,031
Balance Sheet Data
Cash and cash equivalents
$ 87,025 $ 50,124 $ 49,357 $ 47,596 $ 32,286
Investments
373,623 207,747 154,491 137,253 120,147
Total assets
1,136,519 473,529 360,591 293,795 240,617
Deferred incentive fee revenue
— 3,704 3,704 6,245 45,166
Debt
163,175 74,524 70,954 84,162 84,310
Total liabilities
546,318 236,128 190,869 157,721 153,990
Total equity 314,201 237,401 169,722 136,074 86,627
Total liabilities and equity
1,136,519 473,529 360,591 293,795 240,617
(1) Adjusted EBITDA and Fee Related Earnings (“FRE”) are non-GAAP measures. For a further discussion of our non-GAAP measures and a reconciliation from GAAP financial measures to non-GAAP financial measures, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures” included in Part II, Item 7 of this Form 10-K.
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