Evercore Inc. (NYSE: EVR):
Second Quarter Results
Year to Date Results
U.S. GAAP
Adjusted
U.S. GAAP
Adjusted
Q2 2022
Q2 2021
Q2 2022
Q2 2021
YTD 2022
YTD 2021
YTD 2022
YTD 2021
Net Revenues ($ mm)
$
630.9
$
687.9
$
637.4
$
691.2
$
1,353.8
$
1,350.2
$
1,365.8
$
1,361.1
Operating Income ($ mm)
$
146.2
$
207.0
$
153.2
$
210.3
$
355.5
$
401.2
$
368.1
$
412.1
Net Income Attributable to Evercore Inc.
($ mm)
$
95.6
$
140.4
$
107.8
$
154.0
$
253.6
$
284.7
$
281.1
$
316.5
Diluted Earnings Per Share
$
2.33
$
3.21
$
2.46
$
3.17
$
6.13
$
6.46
$
6.29
$
6.47
Compensation Ratio
61.7
%
59.3
%
61.0
%
59.0
%
60.5
%
59.5
%
59.9
%
59.0
%
Operating Margin
23.2
%
30.1
%
24.0
%
30.4
%
26.3
%
29.7
%
27.0
%
30.3
%
Effective Tax Rate
26.0
%
22.1
%
27.0
%
24.7
%
20.4
%
19.2
%
21.2
%
21.0
%
Business and Financial
Highlights
■
Second Quarter and First Half Net Revenues
were $630.9 million and $1.4 billion, respectively, on a U.S. GAAP
basis and $637.4 million and $1.4 billion, respectively, on an
Adjusted basis. First Half 2022 Net Revenues were flat on both a
U.S. GAAP and an Adjusted basis versus 2021
■
Advisory Revenues of $1.2 billion on both
a U.S. GAAP basis and an Adjusted basis for the first half of 2022
were records, increasing 12% on both a U.S. GAAP and an Adjusted
basis versus the same period in 2021
■
European fees were a strong contributor to
second quarter Advisory Fees as we continue to build our brand and
presence globally
■
Evercore hosted its inaugural Global Clean
Energy Summit which was a cornerstone event for Evercore ISI and
Advisory energy transition efforts
■
Evercore was awarded M&A Deal of the
Year by The Banker
Talent
■
Five Advisory Senior Managing Directors
have already joined Evercore in 2022, three of whom joined in the
second quarter and July, all in areas of strategic significance;
Herb Yeh and Chris Buddin have built on the momentum in our
Technology coverage team, and Jason Fournier has strengthened our
coverage in Consumer/Retail ECM
■
Two additional Advisory Senior Managing
Directors have committed to join in 2022, contributing to our Debt
Advisory & Placement and European businesses, respectively
Financial Transactions
■
Refinanced $67 million of Senior Unsecured
Notes through the issuance of an equivalent amount of 4.61% Senior
Unsecured Notes due November 15, 2028
Capital Return
■
Quarterly dividend of $0.72 per share
■
Returned $502.0 million to shareholders
during the first six months of 2022 through dividends and
repurchases of 3.6 million shares at an average price of
$120.13
Evercore Inc. (NYSE: EVR) today announced its results for the
second quarter ended June 30, 2022.
LEADERSHIP COMMENTARY
John S. Weinberg, Chairman and Chief Executive Officer,
"Despite today’s uncertain environment, we accomplished a solid
second quarter and first half of 2022. While our backlogs remain
strong, we recognize the increased risk associated with the current
geopolitical, economic, and market headwinds. We remain confident
in our growth strategy and believe that the investments in our
business will allow us to continue to achieve success for our
clients, firm, and shareholders. As it relates to talent, we are
pleased to have seven Advisory Senior Managing Directors join this
year. Further, we remain committed to our capital return strategy
and will continue to return capital to shareholders while
maintaining a durable balance sheet."
Roger C. Altman, Founder and Senior Chairman, "Evercore
has continued to execute very well. And, historically, during
complex environments like this, we improve our market share. That
is our goal again here."
Evercore's quarterly results may fluctuate significantly due to
the timing and amount of transaction fees earned, as well as other
factors. Accordingly, financial results in any particular quarter
may not be representative of future results over a longer period of
time.
Business Segments:
Evercore's business results are categorized into two segments:
Investment Banking and Investment Management. Investment Banking
includes providing advice to clients on mergers, acquisitions,
divestitures and other strategic corporate transactions, as well as
services related to securities underwriting, private placement
services and commissions for agency-based equity trading services
and equity research. Investment Management includes Wealth
Management and interests in private equity funds which are not
managed by the Company, as well as advising third-party investors
through affiliates. See pages A-2 to A-9 for further information
and reconciliations of these segment results to our U.S. GAAP
consolidated results.
Non-GAAP Measures:
Throughout this release certain information is presented on an
adjusted basis, which is a non-GAAP measure. Adjusted results begin
with information prepared in accordance with accounting principles
generally accepted in the United States of America ("U.S. GAAP"),
and then those results are adjusted to exclude certain items and
reflect the conversion of certain Evercore LP Units into Class A
shares. Evercore believes that the disclosed adjusted measures and
any adjustments thereto, when presented in conjunction with
comparable U.S. GAAP measures, are useful to investors to compare
Evercore's results across several periods and facilitate an
understanding of Evercore's operating results. Evercore uses these
measures to evaluate its operating performance, as well as the
performance of individual employees. These measures should not be
considered a substitute for, or superior to, measures of financial
performance prepared in accordance with U.S. GAAP.
Evercore's Adjusted Net Income Attributable to Evercore Inc. for
the three and six months ended June 30, 2022 was higher than U.S.
GAAP as a result of Special Charges, Including Business Realignment
Costs. Special Charges, Including Business Realignment Costs, in
2022 relate to charges associated with the prepayment of the
Company's $67 million aggregate principal amount of its 5.23%
Series B senior notes, originally due March 30, 2023 (the "Series B
Notes"), during the second quarter, as well as certain professional
fees related to the ongoing liquidation of the Company's operations
in Mexico.
The gain on the sale of a portion of the Company's interests in
ABS in the first quarter of 2022 has been excluded from Adjusted
Net Revenues.
Evercore's Adjusted Diluted Shares Outstanding for the three and
six months ended June 30, 2022 were higher than U.S. GAAP, as a
result of the inclusion of certain Evercore LP Units and Unvested
Restricted Stock Units.
Further details of these adjustments, as well as an explanation
of similar amounts for the three and six months ended June 30, 2021
are included in pages A-2 to A-9.
Selected Financial Data – U.S. GAAP
Results
The following is a discussion of Evercore's consolidated results
on a U.S. GAAP basis. See pages A-5 to A-7 for our business segment
results.
Net Revenues
U.S. GAAP
Three Months Ended
Six Months Ended
June 30, 2022
June 30, 2021
% Change
June 30, 2022
June 30, 2021
% Change
(dollars in thousands)
Investment Banking:
Advisory Fees
$
576,245
$
560,814
3%
$
1,200,809
$
1,072,732
12%
Underwriting Fees
13,516
48,048
(72%)
49,822
127,305
(61%)
Commissions and Related Revenue
52,485
50,725
3%
103,383
104,251
(1%)
Investment Management:
Asset Management and Administration
Fees
15,968
16,183
(1%)
33,083
31,132
6%
Other Revenue, net
(27,297
)
12,095
NM
(33,326
)
14,755
NM
Net Revenues
$
630,917
$
687,865
(8%)
$
1,353,771
$
1,350,175
—%
Three Months Ended
Six Months Ended
June 30, 2022
June 30, 2021
% Change
June 30, 2022
June 30, 2021
% Change
Total Number of Fees from Advisory Client
Transactions(1)
217
255
(15%)
354
418
(15%)
Total Number of Fees of at Least $1
million from Advisory Client Transactions(1)
100
115
(13%)
186
218
(15%)
Total Number of Underwriting
Transactions
7
31
(77%)
21
70
(70%)
Total Number of Underwriting Transactions
as a Bookrunner
5
25
(80%)
18
56
(68%)
1. Includes Advisory and Underwriting Transactions.
As of June 30,
2022
2021
% Change
Assets Under Management ($ mm)(1)
Wealth Management(2)
$
10,462
$
11,134
(6%)
Total Assets Under Management
$
10,462
$
11,134
(6%)
1.
Assets Under Management reflect end of
period amounts from our consolidated Wealth Management
business.
2.
Assets Under Management includes Evercore
assets which are managed by Evercore Wealth Management of $0.3
million and $76.3 million as of June 30, 2022 and 2021,
respectively.
Advisory Fees – Second quarter Advisory Fees increased
$15.4 million, or 3%, year-over-year, reflecting growth in average
fee size during the second quarter of 2022. Year-to-date Advisory
Fees increased $128.1 million, or 12%, year-over-year, reflecting
growth in average fee size during 2022.
Underwriting Fees – Second quarter Underwriting Fees
decreased $34.5 million, or 72%, year-over-year, and year-to-date
Underwriting Fees decreased $77.5 million, or 61%, year-over-year.
The decrease principally reflects a decrease in the number of
transactions we participated in due to the decline in overall
market issuances.
Commissions and Related Revenue – Second quarter
Commissions and Related Revenue increased $1.8 million, or 3%,
year-over-year, primarily reflecting higher trading volumes.
Year-to-date Commissions and Related Revenue decreased $0.9
million, or 1%, year-over-year, primarily reflecting lower trading
volumes, partially offset by increased revenues from research
subscriptions.
Asset Management and Administration Fees – Second quarter
Asset Management and Administration Fees decreased $0.2 million, or
1%, year-over-year, driven by a decrease in fees from Wealth
Management clients as associated AUM decreased 6%, primarily from
market depreciation. Year-to-date Asset Management and
Administration Fees increased $2.0 million, or 6%, year-over-year,
driven by an increase in fees from Wealth Management clients.
Other Revenue – Second quarter Other Revenue, net,
decreased $39.4 million year-over-year, primarily reflecting a
shift from gains of $9.8 million to losses of $26.4 million on our
investment funds portfolio due to the overall market decline. The
portfolio is used as an economic hedge against our deferred cash
compensation program. The decrease was also driven by a $4.4
million gain on the redemption of the G5 debt security in the
second quarter of 2021. Year-to-date Other Revenue, net, decreased
$48.1 million year-over-year, primarily reflecting a shift from
gains of $16.0 million to losses of $31.5 million on our investment
funds portfolio due to the overall market decline. The decrease was
also driven by a $4.4 million gain on the redemption of the G5 debt
security in the second quarter of 2021. This was partially offset
by a $1.3 million gain on the sale of a portion of our interests in
ABS during the first quarter of 2022.
Expenses
U.S. GAAP
Three Months Ended
Six Months Ended
June 30, 2022
June 30, 2021
% Change
June 30, 2022
June 30, 2021
% Change
(dollars in thousands)
Employee Compensation and Benefits
$
388,971
$
407,798
(5%)
$
818,706
$
803,188
2%
Compensation Ratio
61.7
%
59.3
%
60.5
%
59.5
%
Non-Compensation Costs
$
95,232
$
73,054
30%
$
178,987
$
145,766
23%
Non-Compensation Ratio
15.1
%
10.6
%
13.2
%
10.8
%
Special Charges, Including Business
Realignment Costs
$
532
$
—
NM
$
532
$
—
NM
Employee Compensation and Benefits – Second quarter
Employee Compensation and Benefits decreased $18.8 million, or 5%,
year-over-year, reflecting a compensation ratio of 61.7% for the
quarter versus 59.3% for the prior year period. The decrease in
Employee Compensation and Benefits compared to the prior year
period principally reflects a lower accrual for incentive
compensation, partially offset by higher base salaries, costs
associated with investments in new hires and an increase in the
amortization of prior period deferred compensation awards.
Year-to-date Employee Compensation and Benefits increased $15.5
million, or 2%, year-over-year, reflecting a year-to-date
compensation ratio of 60.5% versus 59.5% for the prior year period.
The increase in Employee Compensation and Benefits compared to the
prior year period principally reflects higher base salaries and
costs associated with investments in new hires, as well as an
increase in the amortization of prior period deferred compensation
awards, partially offset by a lower accrual for incentive
compensation. The Compensation Ratio was also impacted by the lower
performance of our investment funds portfolio during the current
year period. See "Deferred Compensation" for more information.
Non-Compensation Costs – Second quarter Non-Compensation
Costs increased $22.2 million, or 30%, year-over-year, primarily
driven by an increase in travel and related expenses, as travel
began to resume during the fourth quarter of 2021, higher
professional fees, including fee sharing agreements with sub
advisors, as well as an increase in bad debt expense compared to a
reversal of bad debt expense in the prior year period. The second
quarter Non-Compensation ratio of 15.1% increased from 10.6% for
the prior year period. Year-to-date Non-Compensation Costs
increased $33.2 million, or 23%, year-over-year, primarily driven
by an increase in travel and related expenses, as travel began to
resume during the fourth quarter of 2021, higher professional fees,
including fee sharing agreements with sub advisors, as well as an
increase in bad debt expense compared to a reversal of bad debt
expense in the prior year period. The year-to-date Non-Compensation
ratio of 13.2% increased from 10.8% for the prior year period.
Special Charges, Including Business Realignment Costs –
Second quarter and year-to-date 2022 Special Charges, Including
Business Realignment Costs, relate to charges associated with the
prepayment of the Company's Series B Notes during the second
quarter, as well as certain professional fees related to the
ongoing liquidation of the Company's operations in Mexico.
Effective Tax Rate
The second quarter effective tax rate was 26.0% versus 22.1% for
the prior year period. The year-to-date effective tax rate was
20.4% versus 19.2% for the prior year period. The effective tax
rate is principally impacted by the deduction associated with the
appreciation in the Firm's share price upon vesting of employee
share-based awards above the original grant price. The year-to-date
provision for income taxes reflects an additional tax benefit of
$19.8 million versus $17.0 million for the prior year period, due
to the net impact associated with the appreciation in our share
price upon vesting of employee share-based awards above the
original grant price.
Selected Financial Data – Adjusted
Results
The following is a discussion of Evercore's consolidated results
on an Adjusted basis. See pages 3 and A-2 to A-9 for further
information and reconciliations of these metrics to our U.S. GAAP
results. See pages A-5 to A-7 for our business segment results.
Adjusted Net Revenues
Adjusted
Three Months Ended
Six Months Ended
June 30, 2022
June 30, 2021
% Change
June 30, 2022
June 30, 2021
% Change
(dollars in thousands)
Investment Banking:
Advisory Fees(1)
$
576,409
$
561,363
3%
$
1,201,347
$
1,073,450
12%
Underwriting Fees
13,516
48,048
(72%)
49,822
127,305
(61%)
Commissions and Related Revenue
52,485
50,725
3%
103,383
104,251
(1%)
Investment Management:
Asset Management and Administration
Fees(2)
18,078
19,028
(5%)
37,331
36,832
1%
Other Revenue, net
(23,039
)
12,027
NM
(26,112
)
19,257
NM
Net Revenues
$
637,449
$
691,191
(8%)
$
1,365,771
$
1,361,095
—%
1.
Advisory Fees on an Adjusted basis reflect
the reclassification of earnings related to our equity method
investments in Luminis and Seneca Evercore of $0.2 million and $0.5
million for the three and six months ended June 30, 2022,
respectively, and $0.5 million and $0.7 million for the three and
six months ended June 30, 2021, respectively.
2.
Asset Management and Administration Fees
on an Adjusted basis reflect the reclassification of earnings
related to our equity method investments in Atalanta Sosnoff and
ABS of $2.1 million and $4.2 million for the three and six months
ended June 30, 2022, respectively, and $2.8 million and $5.7
million for the three and six months ended June 30, 2021,
respectively.
See page 4 for additional business metrics.
Advisory Fees – Second quarter adjusted Advisory Fees
increased $15.0 million, or 3%, year-over-year, reflecting growth
in average fee size during the second quarter of 2022. Year-to-date
adjusted Advisory Fees increased $127.9 million, or 12%,
year-over-year, reflecting growth in average fee size during
2022.
Underwriting Fees – Second quarter Underwriting Fees
decreased $34.5 million, or 72%, year-over-year, and year-to-date
Underwriting Fees decreased $77.5 million, or 61%, year-over-year.
The decrease principally reflects a decrease in the number of
transactions we participated in due to the decline in overall
market issuances.
Commissions and Related Revenue – Second quarter
Commissions and Related Revenue increased $1.8 million, or 3%,
year-over-year, primarily reflecting higher trading volumes.
Year-to-date Commissions and Related Revenue decreased $0.9
million, or 1%, year-over-year, primarily reflecting lower trading
volumes, partially offset by increased revenues from research
subscriptions.
Asset Management and Administration Fees – Second quarter
adjusted Asset Management and Administration Fees decreased $1.0
million, or 5%, year-over-year, primarily attributed to a 26%
decrease in equity in earnings of affiliates, driven by lower
income earned by ABS, principally reflecting a decrease in our
ownership following the sale of a portion of our interests during
the first quarter. The decrease was also driven by a decrease in
fees from Wealth Management clients, as associated AUM decreased
6%, primarily from market depreciation. Year-to-date adjusted Asset
Management and Administration Fees increased $0.5 million, or 1%,
year-over-year, primarily driven by an increase in fees from Wealth
Management clients. This was partially offset by a 25% decrease in
equity in earnings of affiliates, driven by lower income earned by
ABS, principally reflecting a decrease in our ownership following
the sale of a portion of our interests during the first
quarter.
Other Revenue – Second quarter adjusted Other Revenue,
net, decreased $35.1 million year-over-year, primarily reflecting a
shift from gains of $9.8 million to losses of $26.4 million on our
investment funds portfolio due to the overall market decline. The
portfolio is used as an economic hedge against our deferred cash
compensation program. Year-to-date adjusted Other Revenue, net,
decreased $45.4 million year-over-year, primarily reflecting a
shift from gains of $16.0 million to losses of $31.5 million on our
investment funds portfolio due to the overall market decline.
Adjusted Expenses
Adjusted
Three Months Ended
Six Months Ended
June 30, 2022
June 30, 2021
% Change
June 30, 2022
June 30, 2021
% Change
(dollars in thousands)
Employee Compensation and Benefits
$
388,971
$
407,798
(5%)
$
818,706
$
803,188
2%
Compensation Ratio
61.0 %
59.0 %
59.9 %
59.0 %
Non-Compensation Costs
$
95,232
$
73,054
30%
$
178,987
$
145,759
23%
Non-Compensation Ratio
14.9 %
10.6 %
13.1 %
10.7 %
Employee Compensation and Benefits – Second quarter
adjusted Employee Compensation and Benefits decreased $18.8
million, or 5%, year-over-year, reflecting a compensation ratio of
61.0% for the quarter versus 59.0% for the prior year period. The
decrease in Employee Compensation and Benefits compared to the
prior year period principally reflects a lower accrual for
incentive compensation, partially offset by higher base salaries,
costs associated with investments in new hires and an increase in
the amortization of prior period deferred compensation awards.
Year-to-date adjusted Employee Compensation and Benefits increased
$15.5 million, or 2%, year-over-year, reflecting a year-to-date
adjusted compensation ratio of 59.9% versus 59.0% for the prior
year period. The increase in Employee Compensation and Benefits
compared to the prior year period principally reflects higher base
salaries and costs associated with investments in new hires, as
well as an increase in the amortization of prior period deferred
compensation awards, partially offset by a lower accrual for
incentive compensation. The adjusted Compensation Ratio was also
impacted by the lower performance of our investment funds portfolio
during the current year period. See "Deferred Compensation" for
more information.
Non-Compensation Costs – Second quarter adjusted
Non-Compensation Costs increased $22.2 million, or 30%,
year-over-year, primarily driven by an increase in travel and
related expenses, as travel began to resume during the fourth
quarter of 2021, higher professional fees, including fee sharing
agreements with sub advisors, as well as an increase in bad debt
expense compared to a reversal of bad debt expense in the prior
year period. The second quarter adjusted Non-Compensation ratio of
14.9% increased from 10.6% for the prior year period. Year-to-date
adjusted Non-Compensation Costs increased $33.2 million, or 23%,
year-over-year, primarily driven by an increase in travel and
related expenses, as travel began to resume during the fourth
quarter of 2021, higher professional fees, including fee sharing
agreements with sub advisors, as well as an increase in bad debt
expense compared to a reversal of bad debt expense in the prior
year period. The year-to-date adjusted Non-Compensation ratio of
13.1% increased from 10.7% for the prior year period.
Adjusted Effective Tax Rate
The second quarter adjusted effective tax rate was 27.0% versus
24.7% for the prior year period. The year-to-date adjusted
effective tax rate was 21.2% versus 21.0% for the prior year
period. The adjusted effective tax rate is principally impacted by
the deduction associated with the appreciation in the Firm's share
price upon vesting of employee share-based awards above the
original grant price. The year-to-date adjusted provision for
income taxes for 2022 reflects an additional tax benefit of $20.3
million versus $18.1 million for the prior year period, due to the
net impact associated with the appreciation in our share price upon
vesting of employee share-based awards above the original grant
price.
Liquidity
The Company continues to maintain a strong balance sheet. As of
June 30, 2022, cash and cash equivalents were $444.3 million,
investment securities and certificates of deposit were $1.1 billion
and current assets exceeded current liabilities by $1.4 billion.
Amounts due related to the Notes Payable were $371.7 million at
June 30, 2022.
On June 28, 2022, the Company refinanced its Series B Notes
through the issuance of $67 million aggregate principal amount of
4.61% Series J senior notes due November 15, 2028 through private
placement. The Company incurred charges during the quarter related
to the prepayment and acceleration of the remaining debt issuance
costs related to the Series B Notes, which has been recorded as
Special Charges, Including Business Realignment Costs, and are
excluded from our Adjusted results.
Headcount
As of June 30, 2022 and 2021, the Company employed approximately
2,135 and 1,900 people, respectively, worldwide.
As of June 30, 2022 and 2021, the Company employed 174(1) and
149(2) total Senior Managing Directors, respectively, in its
Investment Banking business, of which 134(1) and 109(2),
respectively, were Advisory Senior Managing Directors.
(1) Senior Managing Director headcount as of June 30, 2022,
adjusted to include two Advisory Senior Managing Directors that
joined in July 2022 and two additional Advisory Senior Managing
Directors committed to join in 2022. (2) Senior Managing Director
headcount as of June 30, 2021, adjusted for three additional
Advisory Senior Managing Directors committed to join in 2021.
Deferred Compensation
Year-to-date, the Company granted to certain employees
approximately 2.9 million unvested restricted stock units ("RSUs")
(including 2.5 million granted in conjunction with the 2021 bonus
awards) with a grant date fair value of approximately $359.5
million.
In addition, during the first quarter of 2022, the Company
granted approximately $124 million of deferred cash awards to
certain employees, related to our deferred cash compensation
program, principally pursuant to 2021 bonus awards.
The Company recognized compensation expense related to RSUs and
our deferred cash compensation program of $96.3 million and $187.5
million for the three and six months ended June 30, 2022,
respectively, and $94.6 million and $177.5 million for the three
and six months ended June 30, 2021, respectively.
As of June 30, 2022, the Company has approximately 5.8 million
unvested RSUs with an aggregate grant date fair value of $660.5
million. RSUs are expensed over the service period of the award,
subject to retirement eligibility, and generally vest over four
years.
As of June 30, 2022, the Company expects to pay an aggregate of
$302.3 million related to our deferred cash compensation program at
various dates through 2026, subject to certain vesting events.
Amounts due pursuant to this program are expensed over the service
period of the award, subject to retirement eligibility, and are
reflected in Accrued Compensation and Benefits, a component of
current liabilities.
Capital Return
Transactions
On July 26, 2022, the Board of Directors of Evercore declared a
quarterly dividend of $0.72 per share to be paid on September 9,
2022 to common stockholders of record on August 26, 2022.
During the second quarter, the Company repurchased approximately
0.1 million shares from employees for the net settlement of
stock-based compensation awards at an average price per share of
$110.92, and approximately 1.5 million shares at an average price
per share of $109.92 in open market transactions pursuant to the
Company's share repurchase program. The aggregate approximately 1.6
million shares were acquired at an average price per share of
$109.96. Year-to-date, the Company repurchased approximately 1.0
million shares from employees for the net settlement of stock-based
compensation awards at an average price per share of $127.99, and
approximately 2.6 million shares at an average price per share of
$117.18 in open market transactions pursuant to the Company's share
repurchase program. The aggregate approximately 3.6 million shares
were acquired at an average price per share of $120.13.
Conference Call
Evercore will host a related conference call beginning at 8:00
a.m. Eastern Time, Wednesday, July 27, 2022, accessible via
telephone and the Internet. Investors and analysts may participate
in the live conference call by registering for the call to receive
the dial-in numbers and unique PIN to access the call. Please
register at least 10 minutes before the conference call begins. The
registration page can be accessed through the following link:
https://register.vevent.com/register/BI9220b62372a34bd5ac01d3c9b244879f
A live audio webcast of the conference call will be available on
the For Investors section of Evercore’s website at
www.evercore.com. The webcast will be archived on Evercore’s
website for 30 days after the call.
About Evercore
Evercore (NYSE: EVR) is a premier global independent investment
banking advisory firm. We are dedicated to helping our clients
achieve superior results through trusted independent and innovative
advice on matters of strategic significance to boards of directors,
management teams and shareholders, including mergers and
acquisitions, strategic shareholder advisory, restructurings, and
capital structure. Evercore also assists clients in raising public
and private capital and delivers equity research and equity sales
and agency trading execution, in addition to providing wealth and
investment management services to high net worth and institutional
investors. Founded in 1995, the Firm is headquartered in New York
and maintains offices and affiliate offices in major financial
centers in the Americas, Europe, the Middle East and Asia. For more
information, please visit www.evercore.com.
Basis of Alternative Financial
Statement Presentation
Our Adjusted results are a non-GAAP measure. As discussed
further under "Non-GAAP Measures", Evercore believes that the
disclosed Adjusted measures and any adjustments thereto, when
presented in conjunction with comparable U.S. GAAP measures, are
useful to investors to compare Evercore's results across several
periods and better reflects how management views its operating
results. These measures should not be considered a substitute for,
or superior to, measures of financial performance prepared in
accordance with U.S. GAAP. A reconciliation of our U.S. GAAP
results to Adjusted results is presented in the tables included in
the following pages.
Forward-Looking
Statements
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, which reflect our
current views with respect to, among other things, Evercore's
operations and financial performance. In some cases, you can
identify these forward-looking statements by the use of words such
as "outlook," "backlog," "believes," "expects," "potential,"
"probable," "continues," "may," "will," "should," "seeks,"
"approximately," "predicts," "intends," "plans," "estimates,"
"anticipates" or the negative version of these words or other
comparable words. All statements, other than statements of
historical fact, included in this release are forward-looking
statements and are based on various underlying assumptions and
expectations and are subject to known and unknown risks,
uncertainties and assumptions, and may include projections of our
future financial performance based on our growth strategies and
anticipated trends in Evercore's business. Accordingly, there are
or will be important factors that could cause actual outcomes or
results to differ materially from those indicated in these
statements. Evercore believes these factors include, but are not
limited to, those described under "Risk Factors" discussed in
Evercore's Annual Report on Form 10-K for the year ended December
31, 2021, subsequent quarterly reports on Form 10-Q, current
reports on Form 8-K and Registration Statements. These factors
should not be construed as exhaustive and should be read in
conjunction with the other cautionary statements that are included
in this release. In addition, new risks and uncertainties emerge
from time to time, and it is not possible for Evercore to predict
all risks and uncertainties, nor can Evercore assess the impact of
all factors on our business or the extent to which any factor, or
combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements.
Accordingly, you should not rely upon forward-looking statements as
a prediction of actual results and Evercore does not assume any
responsibility for the accuracy or completeness of any of these
forward-looking statements. Evercore undertakes no obligation to
publicly update or review any forward-looking statement, whether as
a result of new information, future developments or otherwise.
EVERCORE INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
THREE AND SIX MONTHS ENDED
JUNE 30, 2022 AND 2021
(dollars in thousands, except per
share data)
(UNAUDITED)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Revenues
Investment Banking:
Advisory Fees
$
576,245
$
560,814
$
1,200,809
$
1,072,732
Underwriting Fees
13,516
48,048
49,822
127,305
Commissions and Related Revenue
52,485
50,725
103,383
104,251
Asset Management and Administration
Fees
15,968
16,183
33,083
31,132
Other Revenue, Including Interest and
Investments
(23,039
)
16,401
(24,818
)
23,631
Total Revenues
635,175
692,171
1,362,279
1,359,051
Interest Expense(1)
4,258
4,306
8,508
8,876
Net Revenues
630,917
687,865
1,353,771
1,350,175
Expenses
Employee Compensation and Benefits
388,971
407,798
818,706
803,188
Occupancy and Equipment Rental
19,608
17,513
38,785
36,222
Professional Fees
27,767
21,401
51,913
43,008
Travel and Related Expenses
14,786
3,715
22,612
6,007
Communications and Information
Services
14,384
14,080
30,412
28,109
Depreciation and Amortization
6,597
7,151
13,707
13,792
Execution, Clearing and Custody Fees
2,631
2,913
5,428
6,465
Special Charges, Including Business
Realignment Costs
532
—
532
—
Acquisition and Transition Costs
—
—
—
7
Other Operating Expenses
9,459
6,281
16,130
12,156
Total Expenses
484,735
480,852
998,225
948,954
Income Before Income from Equity Method
Investments and Income Taxes
146,182
207,013
355,546
401,221
Income from Equity Method Investments
2,274
3,394
4,786
6,418
Income Before Income Taxes
148,456
210,407
360,332
407,639
Provision for Income Taxes
38,562
46,478
73,344
78,159
Net Income
109,894
163,929
286,988
329,480
Net Income Attributable to Noncontrolling
Interest
14,267
23,570
33,345
44,769
Net Income Attributable to Evercore
Inc.
$
95,627
$
140,359
$
253,643
$
284,711
Net Income Attributable to Evercore
Inc. Common Shareholders
$
95,627
$
140,359
$
253,643
$
284,711
Weighted Average Shares of Class A
Common Stock Outstanding:
Basic
39,834
40,667
39,507
41,010
Diluted
41,108
43,661
41,395
44,053
Net Income Per Share Attributable to
Evercore Inc. Common Shareholders:
Basic
$
2.40
$
3.45
$
6.42
$
6.94
Diluted
$
2.33
$
3.21
$
6.13
$
6.46
1. Includes interest expense on long-term debt.
Adjusted Results
Throughout the discussion of Evercore's business and elsewhere
in this release, information is presented on an Adjusted basis,
which is a non-generally accepted accounting principles
("non-GAAP") measure. Adjusted results begin with information
prepared in accordance with accounting principles generally
accepted in the United States of America ("U.S. GAAP"), adjusted to
exclude certain items and reflect the conversion of certain
Evercore LP Units, as well as Unvested Restricted Stock Units, into
Class A shares. Evercore believes that the disclosed Adjusted
measures and any adjustments thereto, when presented in conjunction
with comparable U.S. GAAP measures, are useful to investors to
compare Evercore's results across several periods and facilitate an
understanding of Evercore's operating results. The Company uses
these measures to evaluate its operating performance, as well as
the performance of individual employees. These measures should not
be considered a substitute for, or superior to, measures of
financial performance prepared in accordance with U.S. GAAP. These
Adjusted amounts are allocated to the Company's two business
segments: Investment Banking and Investment Management. The
differences between the Adjusted and U.S. GAAP results are as
follows:
- Assumed Exchange of Evercore LP Units
into Class A Shares. The Adjusted results assume
substantially all Evercore LP Units have been exchanged for Class A
shares. Accordingly, the noncontrolling interest related to these
units is converted to a controlling interest. The Company's
management believes that it is useful to provide the per-share
effect associated with the assumed conversion of substantially all
of these previously granted equity interests and IPO related
restricted stock units, and thus the Adjusted results reflect their
exchange into Class A shares.
- Adjustments Associated with Business
Combinations and Divestitures. The following charges
resulting from business combinations and divestitures have been
excluded from the Adjusted results because the Company's Management
believes that operating performance is more comparable across
periods excluding the effects of these acquisition-related charges:
- Acquisition and Transition Costs.
Primarily professional fees incurred and costs related to
transitioning acquisitions or divestitures.
- Gain on Sale of Interests in ABS.
The gain on the sale of a portion of the Company's interests in ABS
in the first quarter of 2022 is excluded from the Adjusted
presentation.
- Gain on Redemption of G5 Debt
Security. The gain on the redemption of the G5 debt security
in the second quarter of 2021 is excluded from the Adjusted
presentation.
- Special Charges, Including Business
Realignment Costs. Expenses during 2022 that are excluded
from the Adjusted presentation relate to charges associated with
the prepayment of the Company's Series B Notes during the second
quarter, as well as certain professional fees related to the
ongoing liquidation of the Company's operations in Mexico.
- Income Taxes. Evercore is
organized as a series of Limited Liability Companies, Partnerships,
C-Corporations and a Public Corporation in the U.S. as the ultimate
parent. Certain of the subsidiaries, particularly Evercore LP, have
noncontrolling interests held by management or former members of
management. As a result, not all of the Company’s income is subject
to corporate level taxes and certain other state and local taxes
are levied. The assumption in the Adjusted earnings presentation is
that substantially all of the noncontrolling interest is eliminated
through the exchange of Evercore LP units into Class A common stock
of the ultimate parent. As a result, the Adjusted earnings
presentation assumes that the allocation of earnings to Evercore
LP’s noncontrolling interest holders is substantially eliminated
and is therefore subject to statutory tax rates of a C-Corporation
under a conventional tax structure in the U.S. and that certain
state and local taxes are reduced accordingly.
- Presentation of Interest Expense.
The Adjusted results present Adjusted Investment Banking Operating
Income before interest expense on debt, which is included in
interest expense on a U.S. GAAP basis.
- Presentation of Income from Equity Method
Investments. The Adjusted results present Income from Equity
Method Investments within Revenue as the Company's Management
believes it is a useful presentation.
EVERCORE INC.
U.S. GAAP RECONCILIATION TO
ADJUSTED RESULTS
(dollars in thousands, except per
share data)
(UNAUDITED)
Three Months Ended
Six Months Ended
June 30, 2022
June 30, 2021
June 30, 2022
June 30, 2021
Net Revenues - U.S. GAAP
$
630,917
$
687,865
$
1,353,771
$
1,350,175
Income from Equity Method Investments
(1)
2,274
3,394
4,786
6,418
Interest Expense on Debt (2)
4,258
4,306
8,508
8,876
Gain on Sale of Interests in ABS (3)
—
—
(1,294
)
—
Gain on Redemption of G5 Debt Security
(4)
—
(4,374
)
—
(4,374
)
Net Revenues - Adjusted
$
637,449
$
691,191
$
1,365,771
$
1,361,095
Other Revenue, net - U.S. GAAP
$
(27,297
)
$
12,095
$
(33,326
)
$
14,755
Interest Expense on Debt (2)
4,258
4,306
8,508
8,876
Gain on Sale of Interests in ABS (3)
—
—
(1,294
)
—
Gain on Redemption of G5 Debt Security
(4)
—
(4,374
)
—
(4,374
)
Other Revenue, net - Adjusted
$
(23,039
)
$
12,027
$
(26,112
)
$
19,257
Operating Income - U.S. GAAP
$
146,182
$
207,013
$
355,546
$
401,221
Income from Equity Method Investments
(1)
2,274
3,394
4,786
6,418
Pre-Tax Income - U.S. GAAP
148,456
210,407
360,332
407,639
Gain on Sale of Interests in ABS (3)
—
—
(1,294
)
—
Gain on Redemption of G5 Debt Security
(4)
—
(4,374
)
—
(4,374
)
Special Charges, Including Business
Realignment Costs (5)
532
—
532
—
Acquisition and Transition Costs (6)
—
—
—
7
Pre-Tax Income - Adjusted
148,988
206,033
359,570
403,272
Interest Expense on Debt (2)
4,258
4,306
8,508
8,876
Operating Income - Adjusted
$
153,246
$
210,339
$
368,078
$
412,148
Provision for Income Taxes - U.S.
GAAP
$
38,562
$
46,478
$
73,344
$
78,159
Income Taxes (7)
1,597
4,403
2,740
6,529
Provision for Income Taxes -
Adjusted
$
40,159
$
50,881
$
76,084
$
84,688
Net Income Attributable to Evercore
Inc. - U.S. GAAP
$
95,627
$
140,359
$
253,643
$
284,711
Gain on Sale of Interests in ABS (3)
—
—
(1,294
)
—
Gain on Redemption of G5 Debt Security
(4)
—
(4,374
)
—
(4,374
)
Special Charges, Including Business
Realignment Costs (5)
532
—
532
—
Acquisition and Transition Costs (6)
—
—
—
7
Income Taxes (7)
(1,597
)
(4,403
)
(2,740
)
(6,529
)
Noncontrolling Interest (8)
13,264
22,428
30,996
42,712
Net Income Attributable to Evercore
Inc. - Adjusted
$
107,826
$
154,010
$
281,137
$
316,527
Diluted Shares Outstanding - U.S.
GAAP
41,108
43,661
41,395
44,053
LP Units (9)
2,656
4,847
3,296
4,887
Unvested Restricted Stock Units - Event
Based (9)
12
12
12
12
Diluted Shares Outstanding -
Adjusted
43,776
48,520
44,703
48,952
Key Metrics: (a)
Diluted Earnings Per Share - U.S. GAAP
$
2.33
$
3.21
$
6.13
$
6.46
Diluted Earnings Per Share - Adjusted
$
2.46
$
3.17
$
6.29
$
6.47
Operating Margin - U.S. GAAP
23.2
%
30.1
%
26.3
%
29.7
%
Operating Margin - Adjusted
24.0
%
30.4
%
27.0
%
30.3
%
Effective Tax Rate - U.S. GAAP
26.0
%
22.1
%
20.4
%
19.2
%
Effective Tax Rate - Adjusted
27.0
%
24.7
%
21.2
%
21.0
%
(a) Reconciliations of the key metrics
from U.S. GAAP to Adjusted results are a derivative of the
reconciliations of their components above.
EVERCORE INC.
U.S. GAAP SEGMENT
RECONCILIATION TO ADJUSTED RESULTS
FOR THE THREE AND SIX MONTHS
ENDED JUNE 30, 2022
(dollars in thousands)
(UNAUDITED)
Investment Banking
Segment
Three Months Ended June 30,
2022
Six Months Ended June 30,
2022
U.S. GAAP Basis
Adjustments
Non-GAAP Adjusted
Basis
U.S. GAAP Basis
Adjustments
Non-GAAP Adjusted
Basis
Net Revenues:
Investment Banking:
Advisory Fees
$
576,245
$
164
(1)
$
576,409
$
1,200,809
$
538
(1)
$
1,201,347
Underwriting Fees
13,516
—
13,516
49,822
—
49,822
Commissions and Related Revenue
52,485
—
52,485
103,383
—
103,383
Other Revenue, net
(26,996
)
4,258
(2)
(22,738
)
(34,463
)
8,508
(2)
(25,955
)
Net Revenues
615,250
4,422
619,672
1,319,551
9,046
1,328,597
Expenses:
Employee Compensation and Benefits
378,797
—
378,797
798,726
—
798,726
Non-Compensation Costs
91,743
—
91,743
172,386
—
172,386
Special Charges, Including Business
Realignment Costs
532
(532
)
(5)
—
532
(532
)
(5)
—
Total Expenses
471,072
(532
)
470,540
971,644
(532
)
971,112
Operating Income (a)
$
144,178
$
4,954
$
149,132
$
347,907
$
9,578
$
357,485
Compensation Ratio (b)
61.6
%
61.1
%
60.5
%
60.1
%
Operating Margin (b)
23.4
%
24.1
%
26.4
%
26.9
%
Investment Management
Segment
Three Months Ended June 30,
2022
Six Months Ended June 30,
2022
U.S. GAAP Basis
Adjustments
Non-GAAP Adjusted
Basis
U.S. GAAP Basis
Adjustments
Non-GAAP Adjusted
Basis
Net Revenues:
Asset Management and Administration
Fees
$
15,968
$
2,110
(1)
$
18,078
$
33,083
$
4,248
(1)
$
37,331
Other Revenue, net
(301
)
—
(301
)
1,137
(1,294
)
(3)
(157
)
Net Revenues
15,667
2,110
17,777
34,220
2,954
37,174
Expenses:
Employee Compensation and Benefits
10,174
—
10,174
19,980
—
19,980
Non-Compensation Costs
3,489
—
3,489
6,601
—
6,601
Total Expenses
13,663
—
13,663
26,581
—
26,581
Operating Income (a)
$
2,004
$
2,110
$
4,114
$
7,639
$
2,954
$
10,593
Compensation Ratio (b)
64.9
%
57.2
%
58.4
%
53.7
%
Operating Margin (b)
12.8
%
23.1
%
22.3
%
28.5
%
(a) Operating Income for U.S. GAAP
excludes Income (Loss) from Equity Method Investments.
(b) Reconciliations of the key metrics
from U.S. GAAP to Adjusted results are a derivative of the
reconciliations of their components above.
EVERCORE INC.
U.S. GAAP SEGMENT
RECONCILIATION TO ADJUSTED RESULTS
FOR THE THREE AND SIX MONTHS
ENDED JUNE 30, 2021
(dollars in thousands)
(UNAUDITED)
Investment Banking
Segment
Three Months Ended June 30,
2021
Six Months Ended June 30,
2021
U.S. GAAP Basis
Adjustments
Non-GAAP Adjusted
Basis
U.S. GAAP Basis
Adjustments
Non-GAAP Adjusted
Basis
Net Revenues:
Investment Banking:
Advisory Fees
$
560,814
$
549
(1)
$
561,363
$
1,072,732
$
718
(1)
$
1,073,450
Underwriting Fees
48,048
—
48,048
127,305
—
127,305
Commissions and Related Revenue
50,725
—
50,725
104,251
—
104,251
Other Revenue, net
11,233
(68
)
(2)(4)
11,165
13,817
4,502
(2)(4)
18,319
Net Revenues
670,820
481
671,301
1,318,105
5,220
1,323,325
Expenses:
Employee Compensation and Benefits
398,164
—
398,164
784,846
—
784,846
Non-Compensation Costs
69,996
—
69,996
139,847
(7
)
(6)
139,840
Total Expenses
468,160
—
468,160
924,693
(7
)
924,686
Operating Income (a)
$
202,660
$
481
$
203,141
$
393,412
$
5,227
$
398,639
Compensation Ratio (b)
59.4
%
59.3
%
59.5
%
59.3
%
Operating Margin (b)
30.2
%
30.3
%
29.8
%
30.1
%
Investment Management
Segment
Three Months Ended June 30,
2021
Six Months Ended June 30,
2021
U.S. GAAP Basis
Adjustments
Non-GAAP Adjusted
Basis
U.S. GAAP Basis
Adjustments
Non-GAAP Adjusted
Basis
Net Revenues:
Asset Management and Administration
Fees
$
16,183
$
2,845
(1)
$
19,028
$
31,132
$
5,700
(1)
$
36,832
Other Revenue, net
862
—
862
938
—
938
Net Revenues
17,045
2,845
19,890
32,070
5,700
37,770
Expenses:
Employee Compensation and Benefits
9,634
—
9,634
18,342
—
18,342
Non-Compensation Costs
3,058
—
3,058
5,919
—
5,919
Total Expenses
12,692
—
12,692
24,261
—
24,261
Operating Income (a)
$
4,353
$
2,845
$
7,198
$
7,809
$
5,700
$
13,509
Compensation Ratio (b)
56.5
%
48.4
%
57.2
%
48.6
%
Operating Margin (b)
25.5
%
36.2
%
24.3
%
35.8
%
(a) Operating Income for U.S. GAAP
excludes Income (Loss) from Equity Method Investments.
(b) Reconciliations of the key metrics
from U.S. GAAP to Adjusted results are a derivative of the
reconciliations of their components above.
EVERCORE INC.
U.S. GAAP SEGMENT AND
CONSOLIDATED RESULTS
(dollars in thousands)
(UNAUDITED)
U.S. GAAP
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Investment Banking
Net Revenues:
Investment Banking:
Advisory Fees
$
576,245
$
560,814
$
1,200,809
$
1,072,732
Underwriting Fees
13,516
48,048
49,822
127,305
Commissions and Related Revenue
52,485
50,725
103,383
104,251
Other Revenue, net
(26,996
)
11,233
(34,463
)
13,817
Net Revenues
615,250
670,820
1,319,551
1,318,105
Expenses:
Employee Compensation and Benefits
378,797
398,164
798,726
784,846
Non-Compensation Costs
91,743
69,996
172,386
139,847
Special Charges, Including Business
Realignment Costs
532
—
532
—
Total Expenses
471,072
468,160
971,644
924,693
Operating Income (a)
$
144,178
$
202,660
$
347,907
$
393,412
Investment Management
Net Revenues:
Asset Management and Administration
Fees
$
15,968
$
16,183
$
33,083
$
31,132
Other Revenue, net
(301
)
862
1,137
938
Net Revenues
15,667
17,045
34,220
32,070
Expenses:
Employee Compensation and Benefits
10,174
9,634
19,980
18,342
Non-Compensation Costs
3,489
3,058
6,601
5,919
Total Expenses
13,663
12,692
26,581
24,261
Operating Income (a)
$
2,004
$
4,353
$
7,639
$
7,809
Total
Net Revenues:
Investment Banking:
Advisory Fees
$
576,245
$
560,814
$
1,200,809
$
1,072,732
Underwriting Fees
13,516
48,048
49,822
127,305
Commissions and Related Revenue
52,485
50,725
103,383
104,251
Asset Management and Administration
Fees
15,968
16,183
33,083
31,132
Other Revenue, net
(27,297
)
12,095
(33,326
)
14,755
Net Revenues
630,917
687,865
1,353,771
1,350,175
Expenses:
Employee Compensation and Benefits
388,971
407,798
818,706
803,188
Non-Compensation Costs
95,232
73,054
178,987
145,766
Special Charges, Including Business
Realignment Costs
532
—
532
—
Total Expenses
484,735
480,852
998,225
948,954
Operating Income (a)
$
146,182
$
207,013
$
355,546
$
401,221
(a) Operating Income excludes Income
(Loss) from Equity Method Investments.
EVERCORE INC.
U.S. GAAP RECONCILIATION TO
ADJUSTED NON-COMPENSATION COSTS
(dollars in thousands)
(UNAUDITED)
Three Months Ended June 30,
2022
U.S. GAAP
Adjustments
Adjusted
(dollars in thousands)
Occupancy and Equipment Rental
$
19,608
$
—
$
19,608
Professional Fees
27,767
—
27,767
Travel and Related Expenses
14,786
—
14,786
Communications and Information
Services
14,384
—
14,384
Depreciation and Amortization
6,597
—
6,597
Execution, Clearing and Custody Fees
2,631
—
2,631
Other Operating Expenses
9,459
—
9,459
Total Non-Compensation Costs
$
95,232
$
—
$
95,232
Three Months Ended June 30,
2021
U.S. GAAP
Adjustments
Adjusted
(dollars in thousands)
Occupancy and Equipment Rental
$
17,513
$
—
$
17,513
Professional Fees
21,401
—
21,401
Travel and Related Expenses
3,715
—
3,715
Communications and Information
Services
14,080
—
14,080
Depreciation and Amortization
7,151
—
7,151
Execution, Clearing and Custody Fees
2,913
—
2,913
Other Operating Expenses
6,281
—
6,281
Total Non-Compensation Costs
$
73,054
$
—
$
73,054
Six Months Ended June 30,
2022
U.S. GAAP
Adjustments
Adjusted
(dollars in thousands)
Occupancy and Equipment Rental
$
38,785
$
—
$
38,785
Professional Fees
51,913
—
51,913
Travel and Related Expenses
22,612
—
22,612
Communications and Information
Services
30,412
—
30,412
Depreciation and Amortization
13,707
—
13,707
Execution, Clearing and Custody Fees
5,428
—
5,428
Other Operating Expenses
16,130
—
16,130
Total Non-Compensation Costs
$
178,987
$
—
$
178,987
Six Months Ended June 30,
2021
U.S. GAAP
Adjustments
Adjusted
(dollars in thousands)
Occupancy and Equipment Rental
$
36,222
$
—
$
36,222
Professional Fees
43,008
—
43,008
Travel and Related Expenses
6,007
—
6,007
Communications and Information
Services
28,109
—
28,109
Depreciation and Amortization
13,792
—
13,792
Execution, Clearing and Custody Fees
6,465
—
6,465
Acquisition and Transition Costs
7
(7
)
(6
)
—
Other Operating Expenses
12,156
—
12,156
Total Non-Compensation Costs
$
145,766
$
(7
)
$
145,759
Notes to Unaudited Condensed Consolidated Adjusted Financial
Data
For further information on these adjustments, see pages A-2 to
A-3.
(1)
Income (Loss) from Equity Method Investments has been
reclassified to Revenue in the Adjusted presentation.
(2)
Interest Expense on Debt is excluded from Net Revenues and
presented below Operating Income in the Adjusted results and is
included in Interest Expense on a U.S. GAAP basis.
(3)
The gain on the sale of a portion of the Company's interests in
ABS in the first quarter of 2022 is excluded from the Adjusted
presentation.
(4)
The gain resulting from the redemption of the G5 debt security
in the second quarter of 2021 is excluded from the Adjusted
presentation.
(5)
Expenses during 2022 that are excluded from the Adjusted
presentation relate to charges associated with the prepayment of
the Company's Series B Notes during the second quarter, as well as
certain professional fees related to the ongoing liquidation of the
Company's operations in Mexico.
(6)
Professional fees incurred and costs related to transitioning
acquisitions or divestitures are excluded from the Adjusted
presentation.
(7)
Evercore is organized as a series of Limited Liability
Companies, Partnerships, C-Corporations and a Public Corporation in
the U.S. as the ultimate parent. Certain of the subsidiaries,
particularly Evercore LP, have noncontrolling interests held by
management or former members of management. As a result, not all of
the Company’s income is subject to corporate level taxes and
certain other state and local taxes are levied. The assumption in
the Adjusted earnings presentation is that substantially all of the
noncontrolling interest is eliminated through the exchange of
Evercore LP units into Class A common stock of the ultimate parent.
As a result, the Adjusted earnings presentation assumes that the
allocation of earnings to Evercore LP’s noncontrolling interest
holders is substantially eliminated and is therefore subject to
statutory tax rates of a C-Corporation under a conventional tax
structure in the U.S. and that certain state and local taxes are
reduced accordingly.
(8)
Reflects an adjustment to eliminate noncontrolling interest
related to substantially all Evercore LP partnership units which
are assumed to be converted to Class A common stock in the Adjusted
presentation.
(9)
Assumes the exchange into Class A shares of substantially all
Evercore LP Units and IPO related restricted stock unit awards in
the Adjusted presentation. In the computation of outstanding common
stock equivalents for U.S. GAAP net income per share, the Evercore
LP Units are anti-dilutive.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220726005954/en/
Investors: Katy Haber Head of Investor Relations and ESG
212-822-7554
Media: Dana Gorman Abernathy MacGregor, for
Evercore 212-371-5999
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