NEW YORK--(BUSINESS WIRE)--Evercore (NYSE: EVR) announced today that Marcelo Pizzimbono has joined Evercore ISI as a senior managing director and head of sales. Mr. Pizzimbono has more than 30 years of experience in financial services. Most recently, he was managing partner at CrossRegional Management, where he helped build one of the leading alternative private credit/direct lending companies in Latin America. Prior to that, he was a managing director and head of U.S. institutional equity franchise sale ...

Evercore Inc.’s (EVR) quarterly adjusted earnings per share of $2.02 surpassed the Zacks Consensus Estimate of $1.63. However, the bottom line was down from the prior-year quarter’s $3.50.A decline in net revenues of the Investment Banking & Equities segment hampered the overall top line. Nonetheless, an improvement in assets under management (AUM) balance was a positive. A rise in Investment Management segment revenues also offered some support.Net income available to common shareholders (GAAP basis) was $ ...

Evercore (EVR) reported $784.17 million in revenue for the quarter ended December 2023, representing a year-over-year decline of 5.7%. EPS of $2.02 for the same period compares to $3.50 a year ago.The reported revenue represents a surprise of +11.97% over the Zacks Consensus Estimate of $700.37 million. With the consensus EPS estimate being $1.63, the EPS surprise was +23.93%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Stre ...

Evercore (EVR) came out with quarterly earnings of $2.02 per share, beating the Zacks Consensus Estimate of $1.63 per share. This compares to earnings of $3.50 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 23.93%. A quarter ago, it was expected that this investment bank would post earnings of $1.31 per share when it actually produced earnings of $1.30, delivering a surprise of -0.76%.Over the last four quarters, the company ...

NEW YORK--(BUSINESS WIRE)--Evercore Inc. (NYSE: EVR): Fourth Quarter Results   Full Year Results   U.S. GAAP   Adjusted   U.S. GAAP   Adjusted   Q4 2023 Q4 2022   Q4 2023 Q4 2022     2023     2022       2023     2022   Net Revenues ($ mm) $ 784.2   $ 831.3     $ 790.3   $ 836.7     $ 2,425.9   $ 2,762.0     ...

NEW YORK--(BUSINESS WIRE)--Evercore announced today (NYSE: EVR) that Neil Wolitzer has joined the firm as a senior managing director in the Real Estate Investment Banking group. Daniel Mendelow, co-head of U.S. Investment Banking, said, “Real estate is a priority growth area for our firm. We believe that Neil’s integrity and client-focused values align very well with our own, and we are looking forward to benefiting from his experience, creativity and vision to help grow this critical business over the n ...

NEW YORK--(BUSINESS WIRE)--Evercore announced today (NYSE: EVR) that Tammy Kiely has joined the firm as a senior managing director in the technology investment banking practice, focusing primarily on the semiconductor sector. Previously, Ms. Kiely was at Goldman Sachs for almost 25 years, where she most recently was partner and co-head of technology investment banking. She held a variety of roles at Goldman Sachs, including global head of the semiconductor and autotech investment banking practice and co-he ...

Revenue and Income - Total revenues for the Investment Banking & Equities and Investment Management segments include fees for services, transaction-related client reimbursements, and other revenue, with net revenues reflecting total revenues less interest expense[191]. - Revenue trends in the advisory business are correlated to M&A activity, restructuring activity, and capital advisory activity, with fluctuations based on market conditions and client transaction completions[194]. - The Investment Management segment generates revenue primarily from management fees, fiduciary fees, and gains or losses on investments, with management fees typically representing a percentage of assets under management (AUM)[195][196]. - Net Income Attributable to Evercore Inc. was $52.1 million for the three months ended September 30, 2023, a decrease of $30.3 million, or 37%, compared to $82.4 million for the same period in 2022[218]. - Net Revenues were $570.2 million for the three months ended September 30, 2023, a decrease of $6.7 million, or 1%, compared to $576.9 million for the same period in 2022[219]. - Net Income for the nine months ended September 30, 2023 was $172.7 million, a decrease of $163.4 million, or 49%, compared to $336.1 million for the same period in 2022[226]. - Net Revenues for the nine months ended September 30, 2023 were $1.64 billion, a decrease of $288.9 million, or 15%, compared to $1.93 billion for the same period in 2022[227]. - Other Revenue, Including Interest and Investments, increased by $86.7 million for the nine months ended September 30, 2023, reflecting a shift from losses to gains in the investment funds portfolio[228]. Operating Expenses - Operating expenses include employee compensation and benefits, which are critical for retaining key personnel, and are managed to remain competitive based on market conditions[199][200]. - Non-compensation expenses encompass costs for occupancy, professional fees, travel, and technology services, contributing to overall operating expenses[208]. - Total Operating Expenses were $493.4 million for the three months ended September 30, 2023, an increase of $46.9 million, or 10%, compared to $446.5 million for the same period in 2022[221]. - Employee Compensation and Benefits Expense was $391.7 million for the three months ended September 30, 2023, an increase of $35.9 million, or 10%[221]. - Total Operating Expenses for the nine months ended September 30, 2023 were $1.40 billion, a decrease of $46.8 million, or 3%, compared to $1.44 billion for the same period in 2022[230]. - Operating Expenses for the three months ended September 30, 2023, were $479.4 million, an increase of 11% from $433.6 million in the same period of 2022[245]. - Employee compensation and benefits expense increased by $34.8 million, or 10%, to $381.1 million for the three months ended September 30, 2023[245]. - Operating Expenses for the nine months ended September 30, 2023, were $40.6 million, reflecting a 3% increase from $39.5 million in the same period of 2022[263]. M&A Activity - The dollar value of North American announced M&A activity increased by 39% to $369 billion for the three months ended September 30, 2023, compared to $266 billion in the same period of 2022[243]. - The dollar value of global completed M&A activity decreased by 15% to $623 billion for the three months ended September 30, 2023, compared to $734 billion in the same period of 2022[243]. - The company is currently facing macroeconomic uncertainty, including high inflation and rising interest rates, which have slowed M&A activity and advisory transactions[272]. Assets Under Management (AUM) - Assets Under Management (AUM) in Wealth Management increased to $11.3 billion as of September 30, 2023, a rise of $0.7 billion or 7% from $10.5 billion at December 31, 2022[253]. - For the nine months ended September 30, 2023, AUM increased by 7%, driven by an 8% increase from market appreciation, partially offset by a 1% decrease due to client flows[258]. Share Repurchase and Capital Management - The company repurchased 2,032,453 Class A Shares at an average cost of $127.85, totaling $259.9 million during the nine months ended September 30, 2023[275]. - An additional 953,237 Class A Shares were repurchased at an average cost of $131.34, amounting to $125.2 million, primarily for tax withholding requirements[276]. - The total repurchased Class A Shares during the nine months ended September 30, 2023, amounted to 2,985,690 shares for $385.1 million, at an average cost of $128.97[277]. - The company issued $170.0 million in senior notes in 2016, with interest payable semi-annually, and was in compliance with all covenants as of September 30, 2023[283][284]. - The company issued $175.0 million and £25.0 million in senior unsecured notes in 2019, with a weighted average interest rate of 4.26% and compliance with covenants as of September 30, 2023[286][287]. - The company issued $67.0 million in Series J Notes on June 28, 2022, under a private placement agreement, with compliance to covenants as of September 30, 2023[290]. Liquidity and Cash Flow - Cash, Cash Equivalents, and Restricted Cash decreased to $501.5 million at September 30, 2023, down $170.7 million from $672.1 million at December 31, 2022[266]. - The company experienced a net inflow of $42.3 million from operating activities for the nine months ended September 30, 2023, primarily related to earnings[266]. - The company regularly monitors its liquidity position, which includes cash, working capital, current assets and liabilities, and long-term liabilities, to ensure compliance with capital requirements[270]. - Revenue from the Investment Banking & Equities segment is irregular and dependent on factors beyond the company's control, impacting liquidity and cash flow[270]. Investments and Fair Value - The fair value of investments in equity securities and exchange-traded funds was $148.9 million as of September 30, 2023, with net realized and unrealized gains of ($5.5) million for the three months ended[306]. - A hypothetical 10% adverse change in the market value of investments would have resulted in a decrease in pre-tax income of approximately $14.9 million for the three months ended September 30, 2023[307]. - The company had total commitments for future capital contributions to private equity funds of $2.6 million as of September 30, 2023[301]. - The net impact of foreign currency fluctuations for the nine months ended September 30, 2023, was a gain of $3.2 million, net of tax[310].

Financial Data and Key Metrics Changes - The third quarter adjusted net revenues were $576 million, a decline of 1% year-over-year but an increase of 14% sequentially [15] - Adjusted operating income and adjusted net income for the third quarter were $83 million and $55 million, representing decreases of 39% and 42% respectively compared to the same quarter in 2022 [15] - Adjusted earnings per share for the third quarter were $1.30, down 41% from the prior year period [15] - The adjusted operating margin for the third quarter was 14% [15] Business Line Data and Key Metrics Changes - In investment banking, third quarter adjusted advisory fees were $468 million, down 4% year-over-year but up 25% sequentially [16] - Adjusted asset management and administration fees for the third quarter were $19 million, an increase of 9% year-over-year, driven by an AUM of $11.3 billion, which is up 13% year-over-year [17] - Underwriting fees for the third quarter were $31 million, up 7% compared to the same quarter in 2022 [31] Market Data and Key Metrics Changes - The European advisory group experienced strong activity levels, particularly in debt advisory [12] - The IPO market opened in the third quarter, with the company serving as an active book runner on significant biotech IPOs [27] Company Strategy and Development Direction - The company is focused on executing strategic plans, investing in talent, and expanding coverage and geographic reach [28] - The hiring of senior managing directors (SMDs) is seen as a significant investment for future growth, with nine of eleven new SMD hires already working at the company [11] - The private capital advisory and fundraising businesses showed resilience, with elevated continuation fund activity and strong new business activity [26] Management's Comments on Operating Environment and Future Outlook - Management noted that market uncertainty is driven by geopolitical tensions and higher rates, with expectations for improved activity levels in 2024 [10] - There is optimism about the early signs of an improved market backdrop, with internal indicators showing elevated client activity levels [24] - The company does not expect a significant improvement in results in the near term but anticipates building activity levels in 2024 [10] Other Important Information - The adjusted compensation ratio for the third quarter was 68%, influenced by the revenue environment and onboarding of new senior hires [18] - Non-compensation expenses were $102 million, up 12% from a year ago, reflecting increased rent and information services fees [20] - The company returned $490 million to shareholders year-to-date through dividends and share repurchases [34] Q&A Session Summary Question: Advisory SMD count decline and expense inflation impact on normalized margins - Management explained that while the advisory SMD count declined, they are focused on hiring high-quality talent while managing headcount effectively [40] - Regarding expense inflation, management noted a modest impact and expressed optimism about returning to normal margins as revenues improve [42] Question: Elevated comp ratio expectations for 2024 - Management acknowledged the uncertainty in predicting comp ratios but indicated that elevated ratios may persist until revenues improve significantly [56] Question: M&A recovery timeline - Management stated that while the pace of recovery is hard to predict, internal indicators show strengthening backlogs and robust client dialogues [61] Question: Restructuring activity outlook - Management confirmed that restructuring activity is robust and expected to continue, even if the merger market picks up [87] Question: Non-M&A revenue and private capital advisory performance - Management indicated that non-M&A revenue has historically represented over a third of total advisory revenue and is expected to remain strong in the current environment [71]

50+ Countries Where Clients are Served ~2,245 Employees Worldwide1 17 Advisory Offices Globally ~1,365 Advisory Bankers1 11 Countries with Evercore Offices Boston Chicago Dallas Houston Los Angeles Menlo Park Minneapolis New York Tampa San Francisco São Paulo* Toronto Washington DC West Palm Beach Wilmington | --- | --- | |----------------------|------------------| | | | | Europe / Middle East | Asia / Australia | EVERCORE Provides corporate finance advisory services relating to private credit, growth equit ...