8-K

Exhibit 99.1

LAZARD LTD REPORTS FIRST-QUARTER 2022 RESULTS

Financial Advisory

operating revenue increase

driven by both Europe and

North America

Asset Management

investment performance

generated strong incentive

fees despite turbulent

markets

Returned $281 million in

capital to shareholders,

including significant

reduction in share count

NEW YORK, April 28, 2022 – Lazard Ltd (NYSE: LAZ) today reported operating revenue¹ of $699 million for the quarter ended March 31, 2022. Net income, as adjusted², was $115 million, or $1.05 per share (diluted) for the quarter.

First-quarter 2022 net income on a U.S. GAAP basis was $114 million, or $1.05 per share (diluted).

“Our first quarter results demonstrate strong performance by both of our businesses amid volatile markets, underscoring the strength and diversification of our franchise,” said Kenneth M. Jacobs, Chairman and Chief Executive Officer of Lazard. “The firm is well positioned for the year ahead, with continued momentum in M&A and an emerging shift in investor sentiment toward active asset management.”


($ in millions, except per share data and AUM)	Quarter Ended March 31,
	2022		2021		%’22-’21
Net Income
U.S. GAAP		$114	$	87		30	%
Per share, diluted	$	1.05	$	0.75		40	%
Adjusted²		$115	$	101		13	%
Per share, diluted	$	1.05	$	0.87		21	%
Operating Revenue¹
Total operating revenue	$	699	$	648		8	%
Financial Advisory	$	388	$	317		22	%
Asset Management	$	312	$	328		(5	)%
AUM ($ in billions)
Period End		$253	$	265		(5	)%
Average		$256	$	261		(2	)%


Media Contact:	Judi Frost Mackey	+1 212 632 1428	judi.mackey@lazard.com
Investor Contact:	Alexandra Deignan	+1 212 632 6886	alexandra.deignan@lazard.com

Note: Endnotes are on page 6 of this release. A reconciliation of adjusted GAAP to U.S. GAAP is on pages 11-12.

OPERATING REVENUE

Operating revenue was $699 million for the quarter ended March 31, 2022, 8% higher than the first quarter of 2021.

Financial Advisory

Our Financial Advisory results include M&A Advisory, Capital Advisory, Capital Raising, Restructuring, Shareholder Advisory, Sovereign Advisory, and other strategic advisory work for clients.

Financial Advisory operating revenue was $388 million for the first quarter of 2022, 22% higher than the first quarter of 2021.

During and since the first quarter of 2022, Lazard has been engaged in significant and complex M&A transactions and other advisory assignments globally, including the following (clients are in italics): M&T Bank’s $7.6 billion acquisition of People’s United Financial; 3G Capital’s acquisition of a controlling interest in Hunter Douglas, valuing the company at $7.1 billion; Faurecia’s €6.7 billion combination with Hella; Prudential Financial’s $3.55 billion sale of its full-service retirement business to Empower Retirement; Brewin Dolphin’s £1.6 billion sale to Royal Bank of Canada; UCB’s $1.9 billion acquisition of Zogenix; Syndesi Therapeutics’ $1.0 billion acquisition by AbbVie; Circet’s combination with KGPCo; and FNZ’s $1.4 billion capital raise from CPP Investments and Motive Partners, valuing the company at $20.0 billion.

Lazard has one of the world’s preeminent restructuring practices. During and since the first quarter of 2022, we have been engaged in a broad range of visible and complex restructuring and debt advisory assignments for debtors or creditors, including roles involving: Alto Maipo S.P.A.; Andrade Gutierrez; Assured Guaranty in connection with Puerto Rico’s restructuring; Brazos Electric Power Cooperative; Corp Grupo Banking S.A.; Grupo GICSA; Intelsat S.A.; NMC Health; Nordic Aviation Capital; Rockall Energy; Seadrill Limited; and Stoneway Capital.

Our Capital Advisory practice remains active globally, advising on a broad range of public and private assignments. Our Sovereign Advisory practice continues to be active advising governments, sovereign and sub-sovereign entities across developed and emerging markets.

For a list of publicly announced Financial Advisory transactions on which Lazard advised in the first quarter of 2022, continued to advise or completed since March 31, 2022, please visit our website at www.lazard.com/businesses/transactions.

Asset Management

In the text portion of this press release, we present our Asset Management results as 1) Management fees and other revenue, and 2) Incentive fees.

Asset Management operating revenue was $312 million for the first quarter of 2022, 5% lower than the first quarter of 2021.

Management fees and other revenue was $287 million, 3% lower than the first quarter of 2021, and 5% lower than the fourth quarter of 2021.

Average assets under management (AUM) for the first quarter of 2022 was $256 billion, 2% lower than the first quarter of 2021, and 6% lower than the fourth quarter of 2021.

AUM as of March 31, 2022, was $253 billion, down 8% from December 31, 2021, and down 5% from March 31, 2021. The sequential decrease from December 31, 2021 was driven by market depreciation of $12.4 billion, foreign exchange depreciation of $2.1 billion and net outflows of $6.5 billion.

Incentive fees during the period were $25 million, compared to $33 million for the first quarter of 2021.

OPERATING EXPENSES

Compensation and Benefits

In managing compensation and benefits expense, we focus on annual awarded compensation (cash compensation and benefits, plus deferred incentive compensation with respect to the applicable year, net of estimated future forfeitures and excluding charges). We believe annual awarded compensation reflects the actual annual compensation cost more accurately than the GAAP measure of compensation cost, which includes applicable-year cash compensation and the amortization of deferred incentive compensation principally attributable to previous years’ deferred compensation. We believe that by managing our business using awarded compensation with a consistent deferral policy, we can better manage our compensation costs, increase our flexibility in the future and build shareholder value over time.

For the first quarter of 2022, we accrued adjusted compensation and benefits expense¹at an adjusted compensation ratio of 58.5%, compared to the first-quarter 2021 ratio of 59.5%. This resulted in $409 million of compensation and benefits expense, compared to $385 million for the first quarter of 2021.

We manage our compensation and benefits expense based on awarded compensation with a consistent deferral policy. We take a disciplined approach to compensation, and our goal is to maintain a compensation-to-operating revenue ratio over the cycle in the mid- to high-50s percentage range on both an awarded and adjusted basis, with consistent deferral policies.

Non-Compensation Expense

For the first quarter of 2022, adjusted non-compensation expense¹ was $117 million, 14% higher than the first quarter of 2021, primarily reflecting higher travel and business development expenses, as well as continued investments in technology.

The ratio of adjusted non-compensation expense to operating revenue was 16.8% for the first quarter of 2022, compared to 15.8% for the first quarter of 2021.

Our goal is to achieve an adjusted non-compensation expense-to-operating revenue ratio over the cycle of 16% to 20%.

TAXES

The provision for taxes, on an adjusted basis¹, was $39 million for the first quarter of 2022. The effective tax rate, on an adjusted basis, was 25.4% for the first quarter of 2022, compared to 28.6% for the first quarter of 2021 and 23.9% for the full year of 2021.

CAPITAL MANAGEMENT AND BALANCE SHEET

Our primary capital management goals include managing debt and returning capital to shareholders through dividends and share repurchases.

In the first quarter of 2022, Lazard returned $281 million to shareholders, which included: $47 million in dividends; $176 million in share repurchases of our common stock; and $58 million in satisfaction of employee tax obligations in lieu of share issuances upon vesting of equity grants.

In the first quarter of 2022, we repurchased 4.7 million shares of our common stock at an average price of $37.26 per share.

As of March 31, 2022, our remaining share repurchase authorization was $318 million.

On April 27, 2022, Lazard declared a quarterly dividend of $0.47 per share on its outstanding common stock. The dividend is payable on May 20, 2022, to stockholders of record on May 9, 2022.

Lazard’s financial position remains strong. As of March 31, 2022, our cash and cash equivalents were $878 million, and stockholders’ equity related to Lazard’s interests was $850 million.

***

CONFERENCE CALL

Lazard will host a conference call at 8:00 a.m. EDT on Thursday, April 28, 2022, to discuss the company’s financial results for the first quarter of 2022. The conference call can be accessed via a live audio webcast available through Lazard’s Investor Relations website at www.lazard.com, or by dialing 1 800-289-0720 (U.S. and Canada) or +1 323-701-0160 (outside of the U.S. and Canada), 15 minutes prior to the start of the call.

A replay of the conference call will be available by 10:00 a.m. EDT, Thursday, April 28, 2022, via the Lazard Investor Relations website at www.lazard.com, or by dialing 1 (888) 203-1112 (U.S. and Canada) or +1 (719) 457-0820 (outside of the U.S. and Canada). The replay access code is 5371290.

ABOUT LAZARD

Lazard, one of the world’s preeminent financial advisory and asset management firms, operates from 40 cities across 25 countries in North and South America, Europe, Asia and Australia. With origins dating to 1848, the firm provides advice on mergers and acquisitions, strategic matters, restructuring and capital structure, capital raising and corporate finance, as well as asset management services to corporations, partnerships, institutions, governments and individuals. For more information on Lazard, please visit www.lazard.com. Follow Lazard at @Lazard.

***

Cautionary Note Regarding Forward-Looking Statements:

This press release contains forward-looking statements. In some cases, you can identify these statements by forward-looking words such as “may”, “might”, “will”, “should”, “could”, “would”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “target,” “goal”, or “continue”, and the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies, business plans and initiatives and anticipated trends in our business. These forward-looking statements, including with respect to the current COVID-19 pandemic, are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by these forward-looking statements.

These factors include, but are not limited to, those discussed in our Annual Report on Form 10-K under Item 1A “Risk Factors,” and also discussed from time to time in our reports on Forms 10-Q and 8-K, including the following:

•

A decline in general economic conditions or the global or regional financial markets;

•

A decline in our revenues, for example due to a decline in overall mergers and acquisitions (M&A) activity, our share of the M&A market or our assets under management (AUM);

•

Losses caused by financial or other problems experienced by third parties;

•

Losses due to unidentified or unanticipated risks;

•

A lack of liquidity, i.e., ready access to funds, for use in our businesses; and

•

Competitive pressure on our businesses and on our ability to retain and attract employees at current compensation levels.

Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. We are under no duty to update any of these forward-looking statements after the date of this release to conform our prior statements to actual results or revised expectations and we do not intend to do so.

Lazard Ltd is committed to providing timely and accurate information to the investing public, consistent with our legal and regulatory obligations. To that end, Lazard and its operating companies use their websites, Lazard’s Twitter account (twitter.com/Lazard) and other social media sites to convey information about their businesses, including the anticipated release of quarterly financial results, quarterly financial, statistical and business-related information, and the posting of updates of assets under management in various mutual funds, hedge funds and other investment products managed by Lazard Asset Management LLC and Lazard Frères Gestion SAS. Investors can link to Lazard and its operating company websites through www.lazard.com.

***

ENDNOTES

A non-U.S. GAAP measure. See attached financial schedules and related notes for a detailed explanation of adjustments to corresponding U.S. GAAP results. We believe that presenting our results on an adjusted basis, in addition to the U.S. GAAP results, is the most meaningful and useful way to compare our operating results across periods.

²	First-quarter 2022 adjusted results¹ exclude pre-tax charges of $1.1 million relating to office space reorganization. On a U.S. GAAP basis, this resulted in a net charge of $0.8 million, or $0.01 (diluted) per share, in the first quarter of 2022.

LAZ-EPE

###

LAZARD LTD

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(U.S. GAAP)


	Three Months Ended									% Change From
	March 31,			December 31,			March 31,			December 31,			March 31,
($ in thousands, except per share data)	2022			2021			2021			2021			2021
Total revenue	$	716,144		$	1,012,841		$	679,904			(29	%)		5	%
Interest expense		(21,252	)		(20,466	)		(19,797	)

Net revenue		694,892			992,375			660,107			(30	%)		5	%
Operating expenses:
Compensation and benefits		396,841			559,768			401,546			(29	%)		(1	%)
Occupancy and equipment		31,239			32,402			34,748
Marketing and business development		14,123			16,850			6,651
Technology and information services		37,931			39,762			33,670
Professional services		16,029			26,060			14,948
Fund administration and outsourced services		29,703			35,784			29,279
Amortization of intangible assets related to acquisitions		15			15			15
Other		9,283			11,197			4,960

Subtotal		138,323			162,070			124,271			(15	%)		11	%

Provision pursuant to tax receivable agreement		—			2,199			—

Operating expenses		535,164			724,037			525,817			(26	%)		2	%

Operating income		159,728			268,338			134,290			(40	%)		19	%
Provision for income taxes		38,753			57,048			43,464			(32	%)		(11	%)

Net income		120,975			211,290			90,826			(43	%)		33	%
Net income attributable to noncontrolling interests		7,099			913			3,526

Net income attributable to Lazard Ltd	$	113,876		$	210,377		$	87,300			(46	%)		30	%

Attributable to Lazard Ltd Common Stockholders:
Weighted average shares outstanding:
Basic		102,547,277			104,689,273			107,291,560			(2	%)		(4	%)
Diluted		108,186,642			112,278,982			115,822,294			(4	%)		(7	%)
Net income per share:
Basic	$	1.09		$	1.97		$	0.80			(46	%)		35	%
Diluted	$	1.05		$	1.86		$	0.75			(44	%)		40	%

LAZARD LTD

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(U.S. GAAP)


($ in thousands, except per share data)	December 31, 2021			September 30, 2021			December 31, 2020
Total revenue	$	1,012,841		$	737,807		$	898,326
Interest expense		(20,466	)		(20,378	)		(20,172	)

Net revenue		992,375			717,429			878,154
Operating expenses:
Compensation and benefits		559,768			419,627			524,736
Occupancy and equipment		32,402			31,015			33,592
Marketing and business development		16,850			9,922			8,161
Technology and information services		39,762			37,559			36,100
Professional services		26,060			16,698			20,330
Fund administration and outsourced services		35,784			34,137			26,431
Amortization of intangible assets related to acquisitions		15			15			436
Other		11,197			13,497			11,308

Subtotal		162,070			142,843			136,358

Provision pursuant to tax receivable agreement		2,199			—			(439	)

Operating expenses		724,037			562,470			660,655

Operating income		268,338			154,959			217,499
Provision for income taxes		57,048			39,446			22,729

Net income		211,290			115,513			194,770
Net income attributable to noncontrolling interests		913			8,304			4,881

Net income attributable to Lazard Ltd	$	210,377		$	107,209		$	189,889

Attributable to Lazard Ltd Common Stockholders:
Weighted average shares outstanding:
Basic		104,689,273			105,415,743			107,316,315
Diluted		112,278,982			112,994,037			115,144,030
Net income per share:
Basic	$	1.97		$	1.00		$	1.73
Diluted	$	1.86		$	0.94		$	1.64

LAZARD LTD

UNAUDITED CONDENSED CONSOLIDATED

STATEMENT OF FINANCIAL CONDITION

(U.S. GAAP)


($ in thousands)	March 31, 2022			December 31, 2021
ASSETS
Cash and cash equivalents	$	878,167		$	1,465,022
Deposits with banks and short-term investments		1,638,519			1,347,544
Restricted cash		615,225			617,448
Receivables		816,640			805,809
Investments		869,844			1,007,339
Property		249,406			250,005
Goodwill and other intangible assets		379,615			379,571
Operating lease right-of-use assets		452,192			466,054
Deferred tax assets		429,227			435,308
Other assets		519,511			373,081

Total Assets	$	6,848,346		$	7,147,181

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS & STOCKHOLDERS’ EQUITY
Liabilities
Deposits and other customer payables	$	1,748,858		$	1,442,701
Accrued compensation and benefits		501,325			972,303
Operating lease liabilities		536,910			552,522
Tax receivable agreement obligation		192,489			213,434
Senior debt		1,685,849			1,685,227
Other liabilities		638,287			628,030

Total liabilities		5,303,718			5,494,217
Commitments and contingencies
Redeemable noncontrolling interests		575,000			575,000
Stockholders’ equity
Preferred stock, par value $.01 per share		—			—
Common stock, par value $.01 per share		1,128			1,128
Additional paid-in capital		—			144,729
Retained earnings		1,583,005			1,560,636
Accumulated other comprehensive loss, net of tax		(237,626	)		(223,847	)

Subtotal		1,346,507			1,482,646
Class A common stock held by subsidiaries, at cost		(496,681	)		(507,426	)

Total Lazard Ltd stockholders’ equity		849,826			975,220
Noncontrolling interests		119,802			102,744

Total stockholders’ equity		969,628			1,077,964

Total liabilities, redeemable noncontrolling interests and stockholders’ equity	$	6,848,346		$	7,147,181

LAZARD LTD

SELECTED SUMMARY FINANCIAL INFORMATION (a)

(Non-GAAP - unaudited)


	Three Months Ended									% Change From
($ in thousands, except per share data)	March 31, 2022			December 31, 2021			March 31, 2021			December 31, 2021			March 31, 2021
Revenues:
Financial Advisory	$	388,130		$	608,178		$	317,300			(36	%)		22	%
Asset Management		311,781			346,607			327,914			(10	%)		(5	%)
Corporate		(1,276	)		13,160			2,648			NM			NM

Operating revenue (b)	$	698,635		$	967,945		$	647,862			(28	%)		8	%

Expenses:
Adjusted compensation and benefits expense (c)	$	408,702		$	544,510		$	385,478			(25	%)		6	%

Ratio of adjusted compensation to operating revenue		58.5	%		56.3	%		59.5	%
Non-compensation expense (d)	$	117,126		$	133,903		$	102,480			(13	%)		14	%

Ratio of non-compensation to operating revenue		16.8	%		13.8	%		15.8	%
Earnings:
Earnings from operations (e)	$	172,807		$	289,532		$	159,904			(40	%)		8	%

Operating margin (f)		24.7	%		29.9	%		24.7	%
Adjusted net income (g)	$	114,692		$	217,209		$	101,221			(47	%)		13	%

Diluted adjusted net income per share	$	1.05		$	1.92		$	0.87			(45	%)		21	%

Diluted weighted average shares (h)		109,178,143			113,294,302			115,857,922			(4	%)		(6	%)
Effective tax rate (i)		25.4	%		19.8	%		28.6	%

This presentation includes non-U.S. GAAP (“non-GAAP”) measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Reconciliation of U.S. GAAP to Selected Summary Financial Information and Notes to Financial Schedules.

LAZARD LTD

SELECTED SUMMARY FINANCIAL INFORMATION (a)

(Non-GAAP - unaudited)


($ in thousands, except per share data)	December 31, 2021			September 30, 2021			December 31, 2020
Revenues:
Financial Advisory	$	608,178		$	381,295		$	508,626
Asset Management		346,607			310,566			336,152
Corporate		13,160			9,783			3,990

Operating revenue (b)	$	967,945		$	701,644		$	848,768

Expenses:
Adjusted compensation and benefits expense (c)	$	544,510		$	417,479		$	497,260

Ratio of adjusted compensation to operating revenue		56.3	%		59.5	%		58.6	%
Non-compensation expense (d)	$	133,903		$	116,734		$	116,568

Ratio of non-compensation to operating revenue		13.8	%		16.6	%		13.7	%
Earnings:
Earnings from operations (e)	$	289,532		$	167,431		$	234,940

Operating margin (f)		29.9	%		23.9	%		27.7	%
Adjusted net income (g)	$	217,209		$	111,398		$	192,444

Diluted adjusted net income per share	$	1.92		$	0.98		$	1.66

Diluted weighted average shares (h)		113,294,302			113,781,092			115,831,033
Effective tax rate (i)		19.8	%		25.1	%		11.1	%

LAZARD LTD

ASSETS UNDER MANAGEMENT (“AUM”)

(unaudited)

($ in millions)


	As of						Variance
	March 31, 2022		December 31, 2021		March 31, 2021		Qtr to Qtr			1Q 2022 vs 1Q 2021
Equity:
Emerging Markets	$	26,575	$	31,227	$	32,700		(14.9	%)		(18.7	%)
Global		55,810		59,516		58,560		(6.2	%)		(4.7	%)
Local		53,832		56,310		51,246		(4.4	%)		5.0	%
Multi-Regional		64,810		73,953		72,953		(12.4	%)		(11.2	%)

Total Equity		201,027		221,006		215,459		(9.0	%)		(6.7	%)
Fixed Income:
Emerging Markets		11,997		12,231		12,708		(1.9	%)		(5.6	%)
Global		13,881		14,410		14,177		(3.7	%)		(2.1	%)
Local		5,652		6,022		5,556		(6.1	%)		1.7	%
Multi-Regional		13,454		13,623		11,808		(1.2	%)		13.9	%

Total Fixed Income		44,984		46,286		44,249		(2.8	%)		1.7	%
Alternative Investments		4,483		4,203		3,141		6.7	%		42.7	%
Private Equity		1,256		1,290		1,324		(2.6	%)		(5.1	%)
Cash Management		925		954		679		(3.0	%)		36.2	%

Total AUM	$	252,675	$	273,739	$	264,852		(7.7	%)		(4.6	%)


	Three Months Ended March 31,						Year Ended December 31,
	2022			2021			2021
AUM - Beginning of Period	$	273,739		$	258,642		$	258,642
Net Flows		(6,525	)		(1,679	)		(11,573	)
Market and foreign exchange appreciation (depreciation)		(14,539	)		7,889			26,670

AUM - End of Period	$	252,675		$	264,852		$	273,739

Average AUM	$	256,430		$	261,463		$	272,051

% Change in average AUM		(1.9	%)

Note: Average AUM generally represents the average of the monthly ending AUM balances for the period.

LAZARD LTD

RECONCILIATION OF U.S. GAAP TO SELECTED SUMMARY FINANCIAL INFORMATION (a)

(unaudited)


	Three Months Ended
($ in thousands, except per share data)	March 31, 2022			December 31, 2021			March 31, 2021
Operating Revenue
Net revenue - U.S. GAAP Basis	$	694,892		$	992,375		$	660,107
Adjustments:
Revenue related to noncontrolling interests (j)		(10,795	)		(7,515	)		(6,361	)
(Gains) losses related to Lazard Fund Interests (“LFI”) and other similar arrangements		14,323			(12,884	)		(7,487	)
Distribution fees, reimbursable deal costs, bad debt expense and other (k)		(18,822	)		(22,842	)		(16,710	)
Losses associated with restructuring and closing of certain offices (l)		—			15			—
Interest expense		19,037			18,796			18,313

Operating revenue, as adjusted (b)	$	698,635		$	967,945		$	647,862

Compensation and Benefits Expense
Compensation and benefits expense - U.S. GAAP Basis	$	396,841		$	559,768		$	401,546
Adjustments:
(Charges) credits pertaining to LFI and other similar arrangements		14,323			(12,884	)		(7,487	)
Expenses associated with restructuring and closing of certain offices (m)		—			—			(6,623	)
Compensation related to noncontrolling interests (j)		(2,462	)		(2,374	)		(1,958	)

Compensation and benefits expense, as adjusted (c)	$	408,702		$	544,510		$	385,478

Non-Compensation Expense
Non-compensation expense - Subtotal - U.S. GAAP Basis	$	138,323		$	162,070		$	124,271
Adjustments:
Expenses related to office space reorganization (n)		(1,124	)		(967	)		(1,416	)
Distribution fees, reimbursable deal costs, bad debt expense and other (k)		(18,822	)		(22,842	)		(16,710	)
Amortization of intangible assets related to acquisitions		(15	)		(15	)		(15	)
Expenses associated with restructuring and closing of certain offices (m)		—			(115	)		(2,971	)
Non-compensation expense related to noncontrolling interests (j)		(1,236	)		(4,228	)		(679	)

Non-compensation expense, as adjusted (d)	$	117,126		$	133,903		$	102,480

Pre-Tax Income and Earnings From Operations
Operating Income - U.S. GAAP Basis	$	159,728		$	268,338		$	134,290
Adjustments:
Provision pursuant to tax receivable agreement obligation		—			2,199			—
Losses associated with restructuring and closing of certain offices (l)		—			15			—
Expenses related to office space reorganization (n)		1,124			967			1,416
Expenses associated with restructuring and closing of certain offices (m)		—			115			9,594
Net income related to noncontrolling interests (j)		(7,099	)		(913	)		(3,526	)

Pre-tax income, as adjusted		153,753			270,721			141,774
Interest expense		19,037			18,796			18,313
Amortization of intangible assets related to acquisitions and other		17			15			(183	)

Earnings from operations, as adjusted (e)	$	172,807		$	289,532		$	159,904

Net Income attributable to Lazard Ltd
Net income attributable to Lazard Ltd - U.S. GAAP Basis	$	113,876		$	210,377		$	87,300
Adjustments:
Provision pursuant to tax receivable agreement obligation		—			2,199			—
Losses associated with restructuring and closing of certain offices (l)		—			15			—
Expenses related to office space reorganization (n)		1,124			967			1,416
Expenses associated with restructuring and closing of certain offices (m)		—			115			9,594
Tax expense (benefit) allocated to adjustments		(308	)		3,536			2,911

Net income, as adjusted (g)	$	114,692		$	217,209		$	101,221

Diluted Weighted Average Shares Outstanding
Diluted Weighted Average Shares Outstanding - U.S. GAAP Basis		108,186,642			112,278,982			115,822,294
Adjustment: participating securities including profits interest participation rights		991,501			1,015,320			35,628

Diluted Weighted Average Shares Outstanding, as adjusted (h)		109,178,143			113,294,302			115,857,922
Diluted net income per share:
U.S. GAAP Basis	$	1.05		$	1.86		$	0.75
Non-GAAP Basis, as adjusted	$	1.05		$	1.92		$	0.87

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Notes to Financial Schedules.

See Notes to Financial Schedules

LAZARD LTD

RECONCILIATION OF U.S. GAAP TO SELECTED SUMMARY FINANCIAL INFORMATION (a)

(unaudited)


	Three Months Ended									Three Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
($ in thousands, except per share data)	2021			2021			2020			2021			2020
Operating Revenue
Net revenue - U.S. GAAP Basis	$	992,375		$	717,429		$	878,154		$	3,193,048		$	2,566,138
Adjustments:
Revenue related to noncontrolling interests (j)		(7,515	)		(11,994	)		(8,054	)		(31,624	)		(11,497	)
(Gains) losses related to Lazard Fund Interests (“LFI”) and other similar arrangements		(12,884	)		1,368			(25,207	)		(35,494	)		(40,634	)
Distribution fees, reimbursable deal costs, bad debt expense and other (k)		(22,842	)		(23,876	)		(14,647	)		(85,053	)		(64,983	)
Losses associated with restructuring and closing of certain offices (l)		15			51			—			23,645			—
Interest expense		18,796			18,666			18,522			74,375			74,516

Operating revenue, as adjusted (b)	$	967,945		$	701,644		$	848,768		$	3,138,897		$	2,523,540

Compensation and Benefits Expense
Compensation and benefits expense - U.S. GAAP Basis	$	559,768		$	419,627		$	524,736		$	1,895,859		$	1,550,684
Adjustments:
(Charges) credits pertaining to LFI and other similar arrangements		(12,884	)		1,368			(25,207	)		(35,494	)		(40,634	)
Expenses associated with restructuring and closing of certain offices (m)		—			(1,012	)		—			(14,922	)		—
Compensation related to noncontrolling interests (j)		(2,374	)		(2,504	)		(2,269	)		(9,216	)		(7,927	)

Compensation and benefits expense, as adjusted (c)	$	544,510		$	417,479		$	497,260		$	1,836,227		$	1,502,123

Non-Compensation Expense
Non-compensation expense - Subtotal - U.S. GAAP Basis	$	162,070		$	142,843		$	136,358		$	571,142		$	513,752
Adjustments:
Expenses related to office space reorganization (n)		(967	)		(991	)		(4,184	)		(4,611	)		(12,646	)
Distribution fees, reimbursable deal costs, bad debt expense and other (k)		(22,842	)		(23,876	)		(14,647	)		(85,053	)		(64,983	)
Amortization of intangible assets related to acquisitions		(15	)		(15	)		(436	)		(60	)		(1,795	)
Expenses associated with restructuring and closing of certain offices (m)		(115	)		(39	)		—			(1,539	)		—
Non-compensation expense related to noncontrolling interests (j)		(4,228	)		(1,188	)		(523	)		(7,932	)		(2,430	)

Non-compensation expense, as adjusted (d)	$	133,903		$	116,734		$	116,568		$	471,947		$	431,898

Pre-Tax Income and Earnings From Operations
Operating Income - U.S. GAAP Basis	$	268,338		$	154,959		$	217,499		$	723,848		$	502,141
Adjustments:
Provision pursuant to tax receivable agreement obligation		2,199			—			(439	)		2,199			(439	)
Losses associated with restructuring and closing of certain offices (l)		15			51			—			23,645			—
Expenses related to office space reorganization (n)		967			991			4,184			4,611			12,646
Expenses associated with restructuring and closing of certain offices (m)		115			1,051			—			16,461			—
Net income related to noncontrolling interests (j)		(913	)		(8,304	)		(4,881	)		(14,481	)		(231	)

Pre-tax income, as adjusted		270,721			148,748			216,363			756,283			514,117
Interest expense		18,796			18,666			18,522			74,375			74,516
Amortization of intangible assets related to acquisitions and other		15			17			55			65			886

Earnings from operations, as adjusted (e)	$	289,532		$	167,431		$	234,940		$	830,723		$	589,519

Net Income attributable to Lazard Ltd
Net income attributable to Lazard Ltd - U.S. GAAP Basis	$	210,377		$	107,209		$	189,889		$	528,064		$	402,461
Adjustments:
Provision pursuant to tax receivable agreement obligation		2,199			—			(439	)		2,199			(439	)
Losses associated with restructuring and closing of certain offices (l)		15			51			—			23,645			—
Expenses related to office space reorganization (n)		967			991			4,184			4,611			12,646
Expenses associated with restructuring and closing of certain offices (m)		115			1,051			—			16,461			—
Tax expense (benefit) allocated to adjustments		3,536			2,096			(1,190	)		646			(4,419	)

Net income, as adjusted (g)	$	217,209		$	111,398		$	192,444		$	575,626		$	410,249

Diluted Weighted Average Shares Outstanding
Diluted Weighted Average Shares Outstanding - U.S. GAAP Basis		112,278,982			112,994,037			115,144,030			113,674,699			113,483,380
Adjustment: participating securities including profits interest participation rights		1,015,320			787,055			687,003			573,366			420,820

Diluted Weighted Average Shares Outstanding, as adjusted (h)		113,294,302			113,781,092			115,831,033			114,248,065			113,904,200
Diluted net income per share:
U.S. GAAP Basis	$	1.86		$	0.94		$	1.64		$	4.63		$	3.54
Non-GAAP Basis, as adjusted	$	1.92		$	0.98		$	1.66		$	5.04		$	3.60

See Notes to Financial Schedules

LAZARD LTD

RECONCILIATION OF NON-COMPENSATION U.S. GAAP TO ADJUSTED (a)

(unaudited)


	Three Months Ended
($ in thousands)	March 31, 2022			December 31, 2021			March 31, 2021
Non-compensation expense - U.S. GAAP Basis:
Occupancy and equipment	$	31,239		$	32,402		$	34,748
Marketing and business development		14,123			16,850			6,651
Technology and information services		37,931			39,762			33,670
Professional services		16,029			26,060			14,948
Fund administration and outsourced services		29,703			35,784			29,279
Amortization of intangible assets related to acquisitions		15			15			15
Other		9,283			11,197			4,960

Non-compensation expense - Subtotal - U.S. GAAP Basis	$	138,323		$	162,070		$	124,271

Non-compensation expense - Adjustments:
Occupancy and equipment (j) (m) (n)	($	1,183	)	($	892	)	($	4,185	)
Marketing and business development (j) (k) (m)		(1,225	)		(1,425	)		(205	)
Technology and information services (j) (k) (m)		(30	)		4			(14	)
Professional services (j) (k) (m) (n)		(738	)		(3,888	)		(1,461	)
Fund administration and outsourced services (j) (k)		(16,512	)		(21,661	)		(15,270	)
Amortization of intangible assets related to acquisitions		(15	)		(15	)		(15	)
Other (j) (k) (m) (n)		(1,494	)		(290	)		(641	)

Subtotal Non-compensation adjustments	($	21,197	)	($	28,167	)	($	21,791	)

Non-compensation expense, as adjusted:
Occupancy and equipment	$	30,056		$	31,510		$	30,563
Marketing and business development		12,898			15,425			6,446
Technology and information services		37,901			39,766			33,656
Professional services		15,291			22,172			13,487
Fund administration and outsourced services		13,191			14,123			14,009
Amortization of intangible assets related to acquisitions		—			—			—
Other		7,789			10,907			4,319

Non-compensation expense, as adjusted (d)	$	117,126		$	133,903		$	102,480

See Notes to Financial Schedules

LAZARD LTD

RECONCILIATION OF NON-COMPENSATION U.S. GAAP TO ADJUSTED (a)

(unaudited)


	Three Months Ended									Three Months Ended
($ in thousands)	December 31, 2021			September 30, 2021			December 31, 2020			December 31, 2021			December 31, 2020
Non-compensation expense - U.S. GAAP Basis:
Occupancy and equipment	$	32,402		$	31,015		$	33,592		$	128,040		$	127,682
Marketing and business development		16,850			9,922			8,161			42,755			42,426
Technology and information services		39,762			37,559			36,100			146,765			133,544
Professional services		26,060			16,698			20,330			77,702			66,304
Fund administration and outsourced services		35,784			34,137			26,431			130,502			103,070
Amortization of intangible assets related to acquisitions		15			15			436			60			1,795
Other		11,197			13,497			11,308			45,318			38,931

Non-compensation expense - Subtotal - U.S. GAAP Basis	$	162,070		$	142,843		$	136,358		$	571,142		$	513,752

Non-compensation expense - Adjustments:
Occupancy and equipment (j) (m) (n)	($	892	)	($	1,106	)	($	3,419	)	($	5,395	)	($	11,878	)
Marketing and business development (j) (k) (m)		(1,425	)		(1,261	)		(383	)		(4,138	)		(4,014	)
Technology and information services (j) (k) (m)		4			(72	)		155			(170	)		(616	)
Professional services (j) (k) (m) (n)		(3,888	)		(1,143	)		(4,101	)		(8,546	)		(9,806	)
Fund administration and outsourced services (j) (k)		(21,661	)		(19,669	)		(12,114	)		(73,426	)		(47,956	)
Amortization of intangible assets related to acquisitions		(15	)		(15	)		(436	)		(60	)		(1,795	)
Other (j) (k) (m) (n)		(290	)		(2,843	)		508			(7,460	)		(5,789	)

Subtotal Non-compensation adjustments	($	28,167	)	($	26,109	)	($	19,790	)	($	99,195	)	($	81,854	)

Non-compensation expense, as adjusted:
Occupancy and equipment	$	31,510		$	29,909		$	30,173		$	122,645		$	115,804
Marketing and business development		15,425			8,661			7,778			38,617			38,412
Technology and information services		39,766			37,487			36,255			146,595			132,928
Professional services		22,172			15,555			16,229			69,156			56,498
Fund administration and outsourced services		14,123			14,468			14,317			57,076			55,114
Amortization of intangible assets related to acquisitions		—			—			—			—			—
Other		10,907			10,654			11,816			37,858			33,142

Non-compensation expense, as adjusted (d)	$	133,903		$	116,734		$	116,568		$	471,947		$	431,898

See Notes to Financial Schedules

LAZARD LTD

Notes to Financial Schedules

(a)	Selected Summary Financial Information are non-GAAP measures. Lazard believes that presenting results and measures on an adjusted basis in conjunction with U.S. GAAP measures provides a meaningful and useful basis for comparison of its operating results across periods.

(b)

A non-GAAP measure which excludes (i) revenue related to noncontrolling interests (see (j) below), (ii) (gains) losses related to the changes in the fair value of investments held in connection with Lazard Fund Interests and other similar deferred compensation arrangements for which a corresponding equal amount is excluded from compensation & benefits expense, (iii) revenue related to distribution fees, reimbursable deal costs in accordance with the revenue recognition guidance, bad debt expense, and other (see (k) below), (iv) for the three month period ended December 31, 2021, losses associated with restructuring and closing of certain offices (see (l) below), and (v) interest expense primarily related to corporate financing activities.

(c)

A non-GAAP measure which excludes (i) (charges) credits related to the changes in the fair value of the compensation liability recorded in connection with Lazard Fund Interests and other similar deferred compensation arrangements, (ii) for the three month period ended March 31, 2021, expenses associated with restructuring and closing of certain offices (see (m) below), and (iii) compensation and benefits related to noncontrolling interests (see (j) below).

(d)

A non-GAAP measure which excludes (i) expenses related to office space reorganization (see (n) below), (ii) expenses related to distribution fees, reimbursable deal costs in accordance with the revenue recognition guidance, bad debt expense, and other (see (k) below), (iii) amortization of intangible assets related to acquisitions, (iv) for the three month periods ended December 31, 2021 and March 31, 2021, expenses associated with restructuring and closing of certain offices (see (m) below), and (v) expenses related to noncontrolling interests (see (j) below).

(e)

A non-GAAP measure which excludes (i) for the three month period ended December 31, 2021, a provision pursuant to our Tax Receivable Agreement obligation, (ii) for the three month period ended December 31, 2021, losses associated with restructuring and closing of certain offices (see (l) below), (iii) expenses related to office space reorganization (see (n) below), (iv) for the three month periods ended December 31, 2021 and March 31, 2021, expenses associated with restructuring and closing of certain offices (see (m) below), (v) net revenue and expenses related to noncontrolling interests (see (j) below), (vi) interest expense primarily related to corporate financing activities, and (vii) amortization of intangible assets related to acquisitions.

(f)	Represents earnings from operations as a percentage of operating revenue, and is a non-GAAP measure.

(g)

A non-GAAP measure which excludes (i) for the three month period ended December 31, 2021, a provision pursuant to our Tax Receivable Agreement obligation, (ii) for the three month period ended December 31, 2021, losses associated with restructuring and closing of certain offices (see (l) below), (iii) expenses related to office space reorganization (see (n) below), and (iv) for the three month periods ended December 31, 2021 and March 31, 2021, expenses associated with restructuring and closing of certain offices (see (m) below), net of tax expense (benefits).

(h)

A non-GAAP measure which includes units of the long-term incentive compensation program consisting of profits interest participation rights, which are equity incentive awards that, subject to certain conditions, may be exchanged for shares of our common stock. Certain profits interest participation rights and other participating securities may be excluded from the computation of outstanding stock equivalents for U.S. GAAP net income per share.

(i)

Effective tax rate is a non-GAAP measure based upon the U.S. GAAP rate with adjustments for the tax applicable to the non-GAAP adjustments to operating income, generally based upon the effective marginal tax rate in the applicable jurisdiction of the adjustments. The computation is based on a quotient, the numerator of which is the provision for income taxes of $39,061, $53,512, and $40,553 for the three month periods ended March 31, 2022, December 31, 2021, and March 31, 2021, respectively, and the denominator of which is pre-tax income of $153,753, $270,721 and $141,774 for the three month periods ended March 31, 2022, December 31, 2021, and March 31, 2021, respectively.

(j)	Noncontrolling interests include revenue and expenses principally related to Edgewater, ESC Funds and a Special Purpose Acquisition Company.

(k)

Represents certain distribution, introducer and management fees paid to third parties and reimbursable deal costs for which an equal amount is excluded from both non-GAAP operating revenue and non-compensation expense, respectively, and excludes bad debt expense, which represents fees that are deemed uncollectible.

(l)	Represents losses related to the reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss associated with restructuring and closing of certain of our offices.

(m)	Expenses associated with restructuring and closing of certain offices.

(n)	Represents building depreciation and other costs related to office space reorganization.

NM	Not meaningful


001-32492		98-0437848
(Commission File Number)		(IRS Employer Identification No.)


Clarendon House, 2 Church Street, Hamilton, Bermuda		HM 11
(Address of Principal Executive Offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock	LAZ	New York Stock Exchange


Exhibit Number		Description of Exhibit

99.1		Press Release issued on April 28, 2022

104		Cover Page Interactive Data File (embedded within the Inline XBRL document)


LAZARD LTD
(Registrant)

By:		/s/ Scott D. Hoffman
Name:		Scott D. Hoffman
Title:		Chief Administrative Officer and General Counsel