Evercore Inc. (NYSE: EVR):
Third Quarter Results
Year to Date Results
U.S. GAAP
Adjusted
U.S. GAAP
Adjusted
Q3 2022
Q3 2021
Q3 2022
Q3 2021
YTD 2022
YTD 2021
YTD 2022
YTD 2021
Net Revenues ($ mm)
$
576.9
$
823.6
$
583.2
$
831.6
$
1,930.7
$
2,173.7
$
1,948.9
$
2,192.7
Operating Income ($ mm)
$
130.4
$
245.2
$
136.6
$
261.8
$
485.9
$
646.4
$
504.7
$
673.9
Net Income Attributable to Evercore Inc.
($ mm)
$
82.4
$
159.5
$
95.2
$
188.3
$
336.1
$
444.3
$
376.3
$
504.9
Diluted Earnings Per Share
$
2.03
$
3.74
$
2.20
$
3.96
$
8.18
$
10.19
$
8.52
$
10.41
Compensation Ratio
61.7
%
59.1
%
61.0
%
58.5
%
60.8
%
59.3
%
60.3
%
58.8
%
Operating Margin
22.6
%
29.8
%
23.4
%
31.5
%
25.2
%
29.7
%
25.9
%
30.7
%
Effective Tax Rate
30.8
%
24.0
%
27.4
%
25.6
%
23.2
%
21.0
%
22.8
%
22.8
%
Business and Financial
Highlights
■
Third Quarter and Year-to-Date Net
Revenues were $576.9 million and $1.9 billion, respectively, on a
U.S. GAAP basis and $583.2 million and $1.9 billion, respectively,
on an Adjusted basis, decreasing on both a U.S. GAAP and an
Adjusted basis versus 2021; our results represent the second best
Third Quarter and September Year-to-Date Net Revenues on both a
U.S. GAAP and an Adjusted basis
■
Evercore advised STORE Capital on its $14
billion sale to GIC and Oak Street, which was one of the top 10
largest M&A deals in the U.S. and the second largest REIT deal
year-to-date
■
Evercore was a bookrunner on the largest
IPO year-to-date, Corebridge Financial, for $1.7 billion
■
Evercore Private Funds Group ranked #1 in
multiple categories in Preqin's 2022 Service Providers Report for
its fundraising efforts in the private equity, private debt, and
infrastructure space
■
We added several senior bankers to our
U.S. Financial Sponsors Group, which provides resources and
capabilities to enhance our sponsor coverage
■
Evercore ISI recognized as the top
independent research firm in the Institutional Investor All-America
Equity Research team rankings for the ninth straight year and
ranked #1 among all firms for analysts on a weighted basis
Talent
■
We have hired seven Advisory Senior
Managing Directors in 2022, most recently announcing Alexander
Krolick in the Private Capital Markets Group to lead and expand our
Infrastructure and Energy debt advisory activities. Of the seven,
one Advisory Senior Managing Director is committed to join later in
2022, contributing to our European business
■
In addition, a Senior Advisor is committed
to join later in 2022, who will bring new expertise and
capabilities to the franchise
Capital Return
■
Quarterly dividend of $0.72 per share
■
Returned $565.3 million to shareholders
during the first nine months of 2022 through dividends and
repurchases of 3.9 million shares at an average price of
$118.28
Evercore Inc. (NYSE: EVR) today announced its results for the
third quarter ended September 30, 2022.
LEADERSHIP COMMENTARY
John S. Weinberg, Chairman and Chief Executive Officer,
"Evercore continues to perform well in the current, challenging
environment. Our diverse capabilities allow us to advise and assist
our clients throughout the cycle. We remain steadfast in our
commitment to providing the highest level of client service."
Roger C. Altman, Founder and Senior Chairman, "Evercore
continues to expand, adding talented newcomers and broadening our
platform, as we consistently do. Business conditions may be softer
than they were last year at this time, but our performance is still
solid. And, our medium and long term growth outlook, and our
competitive position, remain strong."
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.
Special Charges, Including Business Realignment Costs, have been
excluded from Adjusted Net Income Attributable to Evercore Inc.
These charges 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
nine months ended September 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 nine months ended September
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
Nine Months Ended
September 30, 2022
September 30, 2021
% Change
September 30, 2022
September 30, 2021
%
Change
(dollars in thousands)
Investment Banking:
Advisory Fees
$
488,224
$
708,333
(31
%)
$
1,689,033
$
1,781,065
(5
%)
Underwriting Fees
28,697
54,381
(47
%)
78,519
181,686
(57
%)
Commissions and Related Revenue
49,200
46,763
5
%
152,583
151,014
1
%
Investment Management:
Asset Management and Administration
Fees
15,641
16,960
(8
%)
48,724
48,092
1
%
Other Revenue, net
(4,825
)
(2,882
)
(67
%)
(38,151
)
11,873
NM
Net Revenues
$
576,937
$
823,555
(30
%)
$
1,930,708
$
2,173,730
(11
%)
Three Months Ended
Nine Months Ended
September 30, 2022
September 30, 2021
% Change
September 30, 2022
September 30, 2021
%
Change
Total Number of Fees from Advisory Client
Transactions(1)
229
257
(11
%)
494
586
(16
%)
Total Number of Fees of at Least $1
million from Advisory Client Transactions(1)
99
130
(24
%)
285
349
(18
%)
Total Number of Underwriting
Transactions
11
28
(61
%)
34
98
(65
%)
Total Number of Underwriting Transactions
as a Bookrunner
11
26
(58
%)
29
82
(65
%)
1. Includes Advisory and Underwriting Transactions.
As of September 30,
2022
2021
% Change
Assets Under Management ($ mm)(1)
Wealth Management(2)
$
9,986
$
11,316
(12
%)
Total Assets Under Management
$
9,986
$
11,316
(12
%)
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 September
30, 2022 and 2021, respectively.
Advisory Fees – Third quarter Advisory Fees decreased
$220.1 million, or 31%, year-over-year, reflecting a decrease in
the number of Advisory fees earned and a decline in revenue earned
from large transactions during the third quarter of 2022.
Year-to-date Advisory Fees decreased $92.0 million, or 5%,
year-over-year, reflecting a decrease in the number of Advisory
fees earned.
Underwriting Fees – Third quarter Underwriting Fees
decreased $25.7 million, or 47%, year-over-year, and year-to-date
Underwriting Fees decreased $103.2 million, or 57%, 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 – Third quarter
Commissions and Related Revenue increased $2.4 million, or 5%,
year-over-year, primarily reflecting higher trading volumes and
increased revenues from research subscriptions. Year-to-date
Commissions and Related Revenue increased $1.6 million, or 1%,
year-over-year, primarily reflecting increased revenues from
research subscriptions.
Asset Management and Administration Fees – Third quarter
Asset Management and Administration Fees decreased $1.3 million, or
8%, year-over-year, driven by a decrease in fees from Wealth
Management clients as associated AUM decreased 12%, primarily from
market depreciation. Year-to-date Asset Management and
Administration Fees increased $0.6 million, or 1%, year-over-year,
driven by an increase in fees from Wealth Management clients.
Other Revenue – Third quarter Other Revenue, net,
decreased $1.9 million, or 67%, year-over-year, primarily
reflecting lower performance of 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
Other Revenue, net, decreased $50.0 million, year-over-year,
primarily reflecting a shift from gains of $15.8 million to losses
of $39.0 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
Nine Months Ended
September 30, 2022
September 30, 2021
% Change
September 30, 2022
September 30, 2021
%
Change
(dollars in thousands)
Employee Compensation and Benefits
$
355,794
$
486,471
(27
%)
$
1,174,500
$
1,289,659
(9
%)
Compensation Ratio
61.7
%
59.1
%
60.8
%
59.3
%
Non-Compensation Costs
$
90,744
$
83,377
9
%
$
269,731
$
229,143
18
%
Non-Compensation Ratio
15.7
%
10.1
%
14.0
%
10.5
%
Special Charges, Including Business
Realignment Costs
$
—
$
8,554
NM
$
532
$
8,554
(94
%)
Employee Compensation and Benefits – Third quarter
Employee Compensation and Benefits decreased $130.7 million, or
27%, year-over-year, reflecting a compensation ratio of 61.7% for
the quarter versus 59.1% 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 tied to lower revenue, partially offset by higher base
salaries and higher amortization of prior period deferred
compensation awards. Year-to-date Employee Compensation and
Benefits decreased $115.2 million, or 9%, year-over-year,
reflecting a year-to-date compensation ratio of 60.8% 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 tied to lower revenue,
partially offset by higher base salaries and higher amortization of
prior period deferred compensation awards. 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 – Third quarter Non-Compensation
Costs increased $7.4 million, or 9%, year-over-year, primarily
driven by an increase in travel and related expenses, as travel
began to resume during the fourth quarter of 2021, as well as
higher professional fees. The third quarter Non-Compensation ratio
of 15.7% increased from 10.1% for the prior year period.
Year-to-date Non-Compensation Costs increased $40.6 million, or
18%, year-over-year, primarily driven by an increase in travel and
related expenses, as travel began to resume during the fourth
quarter of 2021, as well as higher professional fees. The
year-to-date Non-Compensation ratio of 14.0% increased from 10.5%
for the prior year period.
Special Charges, Including Business Realignment Costs –
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.
Third quarter and year-to-date 2021 Special Charges, Including
Business Realignment Costs, relate to the write-down of certain
assets associated with a legacy private equity investment
relationship which, consistent with the Company's investment
strategy, the Company decided to wind down during the third quarter
of 2021.
Effective Tax Rate
The third quarter effective tax rate was 30.8% versus 24.0% for
the prior year period. The year-to-date effective tax rate was
23.2% versus 21.0% 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
$19.7 million versus $17.4 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
Nine Months Ended
September 30, 2022
September 30, 2021
% Change
September 30, 2022
September 30, 2021
%
Change
(dollars in thousands)
Investment Banking:
Advisory Fees(1)
$
488,675
$
708,897
(31
%)
$
1,690,022
$
1,782,347
(5
%)
Underwriting Fees
28,697
54,381
(47
%)
78,519
181,686
(57
%)
Commissions and Related Revenue
49,200
46,763
5
%
152,583
151,014
1
%
Investment Management:
Asset Management and Administration
Fees(2)
17,217
20,077
(14
%)
54,548
56,909
(4
%)
Other Revenue, net
(637
)
1,511
NM
(26,749
)
20,768
NM
Net Revenues
$
583,152
$
831,629
(30
%)
$
1,948,923
$
2,192,724
(11
%)
1.
Advisory Fees on an Adjusted basis reflect the reclassification of
earnings related to our equity method investments in Luminis and
Seneca Evercore of $0.5 million and $1.0 million for the three and
nine months ended September 30, 2022, respectively, and $0.6
million and $1.3 million for the three and nine months ended
September 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 $1.6 million and
$5.8 million for the three and nine months ended September 30,
2022, respectively, and $3.1 million and $8.8 million for the three
and nine months ended September 30, 2021, respectively.
See page 4 for additional business metrics.
Advisory Fees – Third quarter adjusted Advisory Fees
decreased $220.2 million, or 31%, year-over-year, reflecting a
decrease in the number of Advisory fees earned and a decline in
revenue earned from large transactions during the third quarter of
2022. Year-to-date adjusted Advisory Fees decreased $92.3 million,
or 5%, year-over-year, reflecting a decrease in the number of
Advisory fees earned.
Underwriting Fees – Third quarter Underwriting Fees
decreased $25.7 million, or 47%, year-over-year, and year-to-date
Underwriting Fees decreased $103.2 million, or 57%, 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 – Third quarter
Commissions and Related Revenue increased $2.4 million, or 5%,
year-over-year, primarily reflecting higher trading volumes and
increased revenues from research subscriptions. Year-to-date
Commissions and Related Revenue increased $1.6 million, or 1%,
year-over-year, primarily reflecting increased revenues from
research subscriptions.
Asset Management and Administration Fees – Third quarter
adjusted Asset Management and Administration Fees decreased $2.9
million, or 14%, year-over-year, primarily attributed to a 49%
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
12%, primarily from market depreciation. Year-to-date adjusted
Asset Management and Administration Fees decreased $2.4 million, or
4%, year-over-year, primarily attributed to a 34% 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.
This was partially offset by an increase in fees from Wealth
Management clients.
Other Revenue – Third quarter adjusted Other Revenue,
net, decreased $2.1 million, year-over-year, primarily reflecting
lower performance of 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 $47.5 million,
year-over-year, primarily reflecting a shift from gains of $15.8
million to losses of $39.0 million on our investment funds
portfolio due to the overall market decline.
Adjusted Expenses
Adjusted
Three Months Ended
Nine Months Ended
September 30, 2022
September 30, 2021
% Change
September 30, 2022
September 30, 2021
%
Change
(dollars in thousands)
Employee Compensation and Benefits
$
355,794
$
486,471
(27
%)
$
1,174,500
$
1,289,659
(9
%)
Compensation Ratio
61.0
%
58.5
%
60.3
%
58.8
%
Non-Compensation Costs
$
90,744
$
83,377
9
%
$
269,731
$
229,136
18
%
Non-Compensation Ratio
15.6
%
10.0
%
13.8
%
10.4
%
Employee Compensation and Benefits – Third quarter
adjusted Employee Compensation and Benefits decreased $130.7
million, or 27%, year-over-year, reflecting a compensation ratio of
61.0% for the quarter versus 58.5% 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 tied to lower revenue, partially offset by
higher base salaries and higher amortization of prior period
deferred compensation awards. Year-to-date adjusted Employee
Compensation and Benefits decreased $115.2 million, or 9%,
year-over-year, reflecting a year-to-date adjusted compensation
ratio of 60.3% versus 58.8% 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 tied to lower revenue, partially offset by higher base
salaries and higher amortization of prior period deferred
compensation awards. 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 – Third quarter adjusted
Non-Compensation Costs increased $7.4 million, or 9%,
year-over-year, primarily driven by an increase in travel and
related expenses, as travel began to resume during the fourth
quarter of 2021, as well as higher professional fees. The third
quarter adjusted Non-Compensation ratio of 15.6% increased from
10.0% for the prior year period. Year-to-date adjusted
Non-Compensation Costs increased $40.6 million, or 18%,
year-over-year, primarily driven by an increase in travel and
related expenses, as travel began to resume during the fourth
quarter of 2021, as well as higher professional fees. The
year-to-date adjusted Non-Compensation ratio of 13.8% increased
from 10.4% for the prior year period.
Adjusted Effective Tax Rate
The third quarter adjusted effective tax rate was 27.4% versus
25.6% for the prior year period. The year-to-date adjusted
effective tax rate was 22.8%, flat versus 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 $20.2
million versus $18.5 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
September 30, 2022, cash and cash equivalents were $473.1 million,
investment securities and certificates of deposit were $1.3 billion
and current assets exceeded current liabilities by $1.5 billion.
Amounts due related to the Notes Payable were $369.3 million at
September 30, 2022.
Headcount
As of September 30, 2022 and 2021, the Company employed
approximately 2,160 and 1,950 people, respectively, worldwide.
As of September 30, 2022 and 2021, the Company employed 169(1)
and 152(2) total Senior Managing Directors, respectively, in its
Investment Banking business, of which 130(1) and 112(2),
respectively, were Advisory Senior Managing Directors.
(1)
Senior Managing Director headcount as of September 30, 2022,
adjusted to include one additional Advisory Senior Managing
Director committed to join in the fourth quarter of 2022.
(2)
Senior Managing Director headcount as of September 30, 2021,
adjusted to include one Advisory Senior Managing Director that
joined in October 2021 and three additional Advisory Senior
Managing Directors that joined in the fourth quarter of 2021.
Deferred Compensation
Year-to-date, the Company granted to certain employees
approximately 3.0 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 $365.9
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 $94.1 million and $281.6
million for the three and nine months ended September 30, 2022,
respectively, and $84.6 million and $262.1 million for the three
and nine months ended September 30, 2021, respectively.
As of September 30, 2022, the Company had approximately 5.8
million unvested RSUs with an aggregate grant date fair value of
$652.5 million. RSUs are expensed over the service period of the
award, subject to retirement eligibility, and generally vest over
four years.
As of September 30, 2022, the Company expects to pay an
aggregate of $292.1 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 October 25, 2022, the Board of Directors of Evercore declared
a quarterly dividend of $0.72 per share to be paid on December 9,
2022 to common stockholders of record on November 25, 2022.
During the third quarter, the Company repurchased approximately
17 thousand shares from employees for the net settlement of
stock-based compensation awards at an average price per share of
$93.64, and approximately 0.3 million shares at an average price
per share of $98.98 in open market transactions pursuant to the
Company's share repurchase program. The aggregate approximately 0.3
million shares were acquired at an average price per share of
$98.71. 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 $127.41, and
approximately 2.9 million shares at an average price per share of
$115.18 in open market transactions pursuant to the Company's share
repurchase program. The aggregate approximately 3.9 million shares
were acquired at an average price per share of $118.28.
Conference Call
Evercore will host a related conference call beginning at 8:00
a.m. Eastern Time, Wednesday, October 26, 2022, accessible via
telephone and the Internet. Investors and analysts may participate
in the live conference call by dialing (800) 343-4849 (toll-free
domestic) or (203) 518-9856 (international); passcode: EVRQ322.
Please register at least 10 minutes before the conference call
begins.
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 NINE MONTHS ENDED
SEPTEMBER 30, 2022 AND 2021
(dollars in thousands, except per
share data)
(UNAUDITED)
Three Months Ended September
30,
Nine Months Ended September
30,
2022
2021
2022
2021
Revenues
Investment Banking:
Advisory Fees
$
488,224
$
708,333
$
1,689,033
$
1,781,065
Underwriting Fees
28,697
54,381
78,519
181,686
Commissions and Related Revenue
49,200
46,763
152,583
151,014
Asset Management and Administration
Fees
15,641
16,960
48,724
48,092
Other Revenue, Including Interest and
Investments
(637
)
1,511
(25,455
)
25,142
Total Revenues
581,125
827,948
1,943,404
2,186,999
Interest Expense(1)
4,188
4,393
12,696
13,269
Net Revenues
576,937
823,555
1,930,708
2,173,730
Expenses
Employee Compensation and Benefits
355,794
486,471
1,174,500
1,289,659
Occupancy and Equipment Rental
19,680
19,191
58,465
55,413
Professional Fees
29,294
24,851
81,207
67,859
Travel and Related Expenses
12,862
5,895
35,474
11,902
Communications and Information
Services
15,333
14,082
45,745
42,191
Depreciation and Amortization
7,065
7,122
20,772
20,914
Execution, Clearing and Custody Fees
2,378
2,484
7,806
8,949
Special Charges, Including Business
Realignment Costs
—
8,554
532
8,554
Acquisition and Transition Costs
—
—
—
7
Other Operating Expenses
4,132
9,752
20,262
21,908
Total Expenses
446,538
578,402
1,444,763
1,527,356
Income Before Income from Equity Method
Investments and Income Taxes
130,399
245,153
485,945
646,374
Income from Equity Method Investments
2,027
3,681
6,813
10,099
Income Before Income Taxes
132,426
248,834
492,758
656,473
Provision for Income Taxes
40,790
59,712
114,134
137,871
Net Income
91,636
189,122
378,624
518,602
Net Income Attributable to Noncontrolling
Interest
9,198
29,577
42,543
74,346
Net Income Attributable to Evercore
Inc.
$
82,438
$
159,545
$
336,081
$
444,256
Net Income Attributable to Evercore
Inc. Common Shareholders
$
82,438
$
159,545
$
336,081
$
444,256
Weighted Average Shares of Class A
Common Stock Outstanding:
Basic
39,114
39,467
39,375
40,492
Diluted
40,527
42,697
41,104
43,597
Net Income Per Share Attributable to
Evercore Inc. Common Shareholders:
Basic
$
2.11
$
4.04
$
8.54
$
10.97
Diluted
$
2.03
$
3.74
$
8.18
$
10.19
(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:
a. Acquisition and Transition Costs.
Primarily professional fees incurred and costs related to
transitioning acquisitions or divestitures. b. 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. c.
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. Expenses
during 2021 that are excluded from the Adjusted presentation relate
to the write-down of certain assets associated with a legacy
private equity investment relationship which, consistent with the
Company's investment strategy, the Company decided to wind down
during the third quarter.
- 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
Nine Months Ended
September 30, 2022
September 30, 2021
September 30, 2022
September 30, 2021
Net Revenues - U.S. GAAP
$
576,937
$
823,555
$
1,930,708
$
2,173,730
Income from Equity Method Investments
(1)
2,027
3,681
6,813
10,099
Interest Expense on Debt (2)
4,188
4,393
12,696
13,269
Gain on Sale of Interests in ABS (3)
—
—
(1,294
)
—
Gain on Redemption of G5 Debt Security
(4)
—
—
—
(4,374
)
Net Revenues - Adjusted
$
583,152
$
831,629
$
1,948,923
$
2,192,724
Other Revenue, net - U.S. GAAP
$
(4,825
)
$
(2,882
)
$
(38,151
)
$
11,873
Interest Expense on Debt (2)
4,188
4,393
12,696
13,269
Gain on Sale of Interests in ABS (3)
—
—
(1,294
)
—
Gain on Redemption of G5 Debt Security
(4)
—
—
—
(4,374
)
Other Revenue, net - Adjusted
$
(637
)
$
1,511
$
(26,749
)
$
20,768
Operating Income - U.S. GAAP
$
130,399
$
245,153
$
485,945
$
646,374
Income from Equity Method Investments
(1)
2,027
3,681
6,813
10,099
Pre-Tax Income - U.S. GAAP
132,426
248,834
492,758
656,473
Gain on Sale of Interests in ABS (3)
—
—
(1,294
)
—
Gain on Redemption of G5 Debt Security
(4)
—
—
—
(4,374
)
Special Charges, Including Business
Realignment Costs (5)
—
8,554
532
8,554
Acquisition and Transition Costs (6)
—
—
—
7
Pre-Tax Income - Adjusted
132,426
257,388
491,996
660,660
Interest Expense on Debt (2)
4,188
4,393
12,696
13,269
Operating Income - Adjusted
$
136,614
$
261,781
$
504,692
$
673,929
Provision for Income Taxes - U.S.
GAAP
$
40,790
$
59,712
$
114,134
$
137,871
Income Taxes (7)
(4,545
)
6,155
(1,805
)
12,684
Provision for Income Taxes -
Adjusted
$
36,245
$
65,867
$
112,329
$
150,555
Net Income Attributable to Evercore
Inc. - U.S. GAAP
$
82,438
$
159,545
$
336,081
$
444,256
Gain on Sale of Interests in ABS (3)
—
—
(1,294
)
—
Gain on Redemption of G5 Debt Security
(4)
—
—
—
(4,374
)
Special Charges, Including Business
Realignment Costs (5)
—
8,554
532
8,554
Acquisition and Transition Costs (6)
—
—
—
7
Income Taxes (7)
4,545
(6,155
)
1,805
(12,684
)
Noncontrolling Interest (8)
8,199
26,399
39,195
69,111
Net Income Attributable to Evercore
Inc. - Adjusted
$
95,182
$
188,343
$
376,319
$
504,870
Diluted Shares Outstanding - U.S.
GAAP
40,527
42,697
41,104
43,597
LP Units (9)
2,650
4,840
3,078
4,871
Unvested Restricted Stock Units - Event
Based (9)
12
12
12
12
Diluted Shares Outstanding -
Adjusted
43,189
47,549
44,194
48,480
Key Metrics: (a)
Diluted Earnings Per Share - U.S. GAAP
$
2.03
$
3.74
$
8.18
$
10.19
Diluted Earnings Per Share - Adjusted
$
2.20
$
3.96
$
8.52
$
10.41
Operating Margin - U.S. GAAP
22.6
%
29.8
%
25.2
%
29.7
%
Operating Margin - Adjusted
23.4
%
31.5
%
25.9
%
30.7
%
Effective Tax Rate - U.S. GAAP
30.8
%
24.0
%
23.2
%
21.0
%
Effective Tax Rate - Adjusted
27.4
%
25.6
%
22.8
%
22.8
%
(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 NINE MONTHS
ENDED SEPTEMBER 30, 2022
(dollars in thousands)
(UNAUDITED)
Investment Banking
Segment
Three Months Ended September
30, 2022
Nine Months Ended September
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
$
488,224
$
451
(1
)
$
488,675
$
1,689,033
$
989
(1
)
$
1,690,022
Underwriting Fees
28,697
—
28,697
78,519
—
78,519
Commissions and Related Revenue
49,200
—
49,200
152,583
—
152,583
Other Revenue, net
(5,603
)
4,188
(2
)
(1,415
)
(40,066
)
12,696
(2
)
(27,370
)
Net Revenues
560,518
4,639
565,157
1,880,069
13,685
1,893,754
Expenses:
Employee Compensation and Benefits
346,280
—
346,280
1,145,006
—
1,145,006
Non-Compensation Costs
87,319
—
87,319
259,705
—
259,705
Special Charges, Including Business
Realignment Costs
—
—
—
532
(532
)
(5
)
—
Total Expenses
433,599
—
433,599
1,405,243
(532
)
1,404,711
Operating Income (a)
$
126,919
$
4,639
$
131,558
$
474,826
$
14,217
$
489,043
Compensation Ratio (b)
61.8
%
61.3
%
60.9
%
60.5
%
Operating Margin (b)
22.6
%
23.3
%
25.3
%
25.8
%
Investment Management
Segment
Three Months Ended September
30, 2022
Nine Months Ended September
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
$
15,641
$
1,576
(1
)
$
17,217
$
48,724
$
5,824
(1
)
$
54,548
Other Revenue, net
778
—
778
1,915
(1,294
)
(3
)
621
Net Revenues
16,419
1,576
17,995
50,639
4,530
55,169
Expenses:
Employee Compensation and Benefits
9,514
—
9,514
29,494
—
29,494
Non-Compensation Costs
3,425
—
3,425
10,026
—
10,026
Total Expenses
12,939
—
12,939
39,520
—
39,520
Operating Income (a)
$
3,480
$
1,576
$
5,056
$
11,119
$
4,530
$
15,649
Compensation Ratio (b)
57.9
%
52.9
%
58.2
%
53.5
%
Operating Margin (b)
21.2
%
28.1
%
22.0
%
28.4
%
(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 NINE MONTHS
ENDED SEPTEMBER 30, 2021
(dollars in thousands)
(UNAUDITED)
Investment Banking
Segment
Three Months Ended September
30, 2021
Nine Months Ended September
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
$
708,333
$
564
(1)
$
708,897
$
1,781,065
$
1,282
(1)
$
1,782,347
Underwriting Fees
54,381
—
54,381
181,686
—
181,686
Commissions and Related Revenue
46,763
—
46,763
151,014
—
151,014
Other Revenue, net
(2,559
)
4,393
(2)
1,834
11,258
8,895
(2)(4)
20,153
Net Revenues
806,918
4,957
811,875
2,125,023
10,177
2,135,200
Expenses:
Employee Compensation and Benefits
476,217
—
476,217
1,261,063
—
1,261,063
Non-Compensation Costs
80,060
—
80,060
219,907
(7
)
(6)
219,900
Total Expenses
556,277
—
556,277
1,480,970
(7
)
1,480,963
Operating Income (a)
$
250,641
$
4,957
$
255,598
$
644,053
$
10,184
$
654,237
Compensation Ratio (b)
59.0
%
58.7
%
59.3
%
59.1
%
Operating Margin (b)
31.1
%
31.5
%
30.3
%
30.6
%
Investment Management
Segment
Three Months Ended September
30, 2021
Nine Months Ended September
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
$
16,960
$
3,117
(1)
$
20,077
$
48,092
$
8,817
(1)
$
56,909
Other Revenue, net
(323
)
—
(323
)
615
—
615
Net Revenues
16,637
3,117
19,754
48,707
8,817
57,524
Expenses:
Employee Compensation and Benefits
10,254
—
10,254
28,596
—
28,596
Non-Compensation Costs
3,317
—
3,317
9,236
—
9,236
Special Charges, Including Business
Realignment Costs
8,554
(8,554
)
(5)
—
8,554
(8,554
)
(5)
—
Total Expenses
22,125
(8,554
)
13,571
46,386
(8,554
)
37,832
Operating Income (Loss) (a)
$
(5,488
)
$
11,671
$
6,183
$
2,321
$
17,371
$
19,692
Compensation Ratio (b)
61.6
%
51.9
%
58.7
%
49.7
%
Operating Margin (b)
(33.0
%)
31.3
%
4.8
%
34.2
%
(a) Operating Income (Loss) 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 September
30,
Nine Months Ended September
30,
2022
2021
2022
2021
Investment Banking
Net Revenues:
Investment Banking:
Advisory Fees
$
488,224
$
708,333
$
1,689,033
$
1,781,065
Underwriting Fees
28,697
54,381
78,519
181,686
Commissions and Related Revenue
49,200
46,763
152,583
151,014
Other Revenue, net
(5,603
)
(2,559
)
(40,066
)
11,258
Net Revenues
560,518
806,918
1,880,069
2,125,023
Expenses:
Employee Compensation and Benefits
346,280
476,217
1,145,006
1,261,063
Non-Compensation Costs
87,319
80,060
259,705
219,907
Special Charges, Including Business
Realignment Costs
—
—
532
—
Total Expenses
433,599
556,277
1,405,243
1,480,970
Operating Income (a)
$
126,919
$
250,641
$
474,826
$
644,053
Investment Management
Net Revenues:
Asset Management and Administration
Fees
$
15,641
$
16,960
$
48,724
$
48,092
Other Revenue, net
778
(323
)
1,915
615
Net Revenues
16,419
16,637
50,639
48,707
Expenses:
Employee Compensation and Benefits
9,514
10,254
29,494
28,596
Non-Compensation Costs
3,425
3,317
10,026
9,236
Special Charges, Including Business
Realignment Costs
—
8,554
—
8,554
Total Expenses
12,939
22,125
39,520
46,386
Operating Income (Loss) (a)
$
3,480
$
(5,488
)
$
11,119
$
2,321
Total
Net Revenues:
Investment Banking:
Advisory Fees
$
488,224
$
708,333
$
1,689,033
$
1,781,065
Underwriting Fees
28,697
54,381
78,519
181,686
Commissions and Related Revenue
49,200
46,763
152,583
151,014
Asset Management and Administration
Fees
15,641
16,960
48,724
48,092
Other Revenue, net
(4,825
)
(2,882
)
(38,151
)
11,873
Net Revenues
576,937
823,555
1,930,708
2,173,730
Expenses:
Employee Compensation and Benefits
355,794
486,471
1,174,500
1,289,659
Non-Compensation Costs
90,744
83,377
269,731
229,143
Special Charges, Including Business
Realignment Costs
—
8,554
532
8,554
Total Expenses
446,538
578,402
1,444,763
1,527,356
Operating Income (a)
$
130,399
$
245,153
$
485,945
$
646,374
(a) Operating Income (Loss) 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 September
30, 2022
U.S. GAAP
Adjustments
Adjusted
(dollars in thousands)
Occupancy and Equipment Rental
$
19,680
$
—
$
19,680
Professional Fees
29,294
—
29,294
Travel and Related Expenses
12,862
—
12,862
Communications and Information
Services
15,333
—
15,333
Depreciation and Amortization
7,065
—
7,065
Execution, Clearing and Custody Fees
2,378
—
2,378
Other Operating Expenses
4,132
—
4,132
Total Non-Compensation Costs
$
90,744
$
—
$
90,744
Three Months Ended September
30, 2021
U.S. GAAP
Adjustments
Adjusted
(dollars in thousands)
Occupancy and Equipment Rental
$
19,191
$
—
$
19,191
Professional Fees
24,851
—
24,851
Travel and Related Expenses
5,895
—
5,895
Communications and Information
Services
14,082
—
14,082
Depreciation and Amortization
7,122
—
7,122
Execution, Clearing and Custody Fees
2,484
—
2,484
Other Operating Expenses
9,752
—
9,752
Total Non-Compensation Costs
$
83,377
$
—
$
83,377
Nine Months Ended September
30, 2022
U.S. GAAP
Adjustments
Adjusted
(dollars in thousands)
Occupancy and Equipment Rental
$
58,465
$
—
$
58,465
Professional Fees
81,207
—
81,207
Travel and Related Expenses
35,474
—
35,474
Communications and Information
Services
45,745
—
45,745
Depreciation and Amortization
20,772
—
20,772
Execution, Clearing and Custody Fees
7,806
—
7,806
Other Operating Expenses
20,262
—
20,262
Total Non-Compensation Costs
$
269,731
$
—
$
269,731
Nine Months Ended September
30, 2021
U.S. GAAP
Adjustments
Adjusted
(dollars in thousands)
Occupancy and Equipment Rental
$
55,413
$
—
$
55,413
Professional Fees
67,859
—
67,859
Travel and Related Expenses
11,902
—
11,902
Communications and Information
Services
42,191
—
42,191
Depreciation and Amortization
20,914
—
20,914
Execution, Clearing and Custody Fees
8,949
—
8,949
Acquisition and Transition Costs
7
(7
)
(6
)
—
Other Operating Expenses
21,908
—
21,908
Total Non-Compensation Costs
$
229,143
$
(7
)
$
229,136
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. Expenses during 2021 that are
excluded from the Adjusted presentation relate to the write-down of
certain assets associated with a legacy private equity investment
relationship which, consistent with the Company's investment
strategy, the Company decided to wind down during the third
quarter.
(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/20221025005940/en/
Investor Contact: Katy Haber Head of Investor Relations
& ESG InvestorRelations@Evercore.com
Media Contact: Jamie Easton Head of Communications &
External Affairs Communications@Evercore.com
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