Before the coronavirus pandemic slowed business, large Texas firms posted solid financials in 2019, with 17 high-grossing firms bringing in a total of $5.361 billion in revenue, up 3.6% from $5.174 billion for the same group of firms in 2018.

This year's Annual Report on Firm Finance includes 17 firms based in Texas, including nine firms on the Am Law 200, and other firms contending for that ranking.

The fact that  total revenue for the 17 firms grew in 2019 is an indication that the Texas firms were well-positioned to take advantage of Texas economic strength, as well as opportunities elsewhere.

Ten of the firms brought in more revenue in 2019 than the prior year, with Baker Botts, Chamberlain, Hrdlicka, White, Williams & Martin and Munsch Hardt Kopf & Harr each posting double-digit percentage increases in revenue.

Most of the revenue declines were small, except at Kane Russell Coleman Logan, which lost 18% of its lawyers at the end of 2018—a group split off to form Mayer LLP—but the firm did improve its revenue per lawyer and profits per partner in 2019.

The mostly rosy financials for the Texas firms come in a year when out-of-state firms continued to open offices in the Lone Star state, luring lawyers—and clients—away from those founded in the state. 2019 was the third year in a row of robust activity for new office openings in the Texas market, which has affected the Texas firms' hold on business.

Managing partners of some large Texas firms said energy deals, particularly capital markets work, slowed down in 2019, but restructuring work started to pick up by the end of the year. Some practice areas were exceedingly busy during the year, including real estate, tax, infrastructure, finance, renewables, and cybersecurity and privacy, and some litigation, according to firm leaders. Many of the firms focused on hiring lateral partners in busy practice areas.

Texas Lawyer's Annual Report on Firm Finance includes financials from 17 large and high-grossing firms in Texas that also appeared on the list last year.

Like gross revenue, net income also improved for the group of firms. The combined net income was $2.258 billion, up 4.1.% when compared with $2.169 billion for the firms last year.

Munsch Hardt's net income increased by 20.7%, the largest increase among the firms. Net increased by 16.1% at trial firm Susman Godfrey, by 15% at Chamberlain Hrdlicka and by 10.9% at Vinson & Elkins. Net income fell at eight of the firms, when compared with 2018, but largely by small margins.

RPL and PEP improved overall at the firms in 2019. RPL averaged $847,000, up by 0.8% when compared with $840,000 on average in 2018. PEP also inched up at $1,347 million, up 1.3% when compared with $1,330 million the prior year.

PEP exceeded $1 million at 10 of the firms.

Those four measures in the Texas Lawyer Annual Report on Firm Finance—gross revenue, net income, RPL and PEP—help describe each firm's financial performance and provide a means for comparison. Gross revenue is used to rank the firms and serves as the master list for the report.

Akin Gump Strauss Hauer & Feld again tops the gross revenue chart with $1.135 billion, up 5.9% when compared with 2018. Revenue at eight of the firms was higher in 2019 than in 2018, and it was lower at nine.

Akin Gump also topped the net income chart, with $464 million, up 4.3% from the year before. Net income was higher at nine of the 17 firms, and lower at eight of them.

Susman Godfrey posted the highest RPL of $1.709 million, although it was down 11.3% from 2018, since the firm added lawyers in 2019. Thirteen of the firms improved RPL in 2019, and four saw it decline.

Vinson & Elkins topped the PEP chart, with $2.798 million, up 11.2% when compared with 2018.  PEP improved at 10 of the firms in 2019, but it dropped at seven.

The report also includes a firm-by-firm analysis that helps explain financial results at each of the firms.

The inclusion of comments by firm leaders in this report does not indicate that a particular firm cooperated with the gathering of financial information. Lawyers simply responded to questions about work and developments at their firms in 2019. Texas Lawyer does not identify which firms provide financial information to ALM and which do not.

Click Here to View Gross Revenue by Firm

Click Here to View Revenue Per Lawyer by Firm

Click Here to View Profits Per Partner by Firm