Evercore(US:EVR)2025-02-21 21:38Revenue and Income - Total revenues from 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 [176]. - Net Revenues for 2024 were $2.98 billion, an increase of $553.6 million, or 23%, compared to $2.43 billion in 2023 [206]. - Net Income Attributable to Evercore Inc. was $378.3 million in 2024, a 48% increase from $255.5 million in 2023 [205]. - Total revenues for 2024 reached $2,996,361, an increase of 22.7% from $2,442,666 in 2023 [343]. - Net income attributable to Evercore Inc. for 2024 was $378,279, representing a 48.1% increase compared to $255,479 in 2023 [343]. - Comprehensive income attributable to Evercore Inc. was $368,760 in 2024, compared to $256,883 in 2023, reflecting a 43.5% increase [345]. Advisory and Underwriting Fees - 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 [178]. - Advisory Fees increased by $476.7 million, or 24%, to $2.44 billion in 2024, while Underwriting Fees rose by $46.1 million, or 41%, to $157.1 million [206]. - Advisory fees increased to $2,440,605 in 2024, up 24.3% from $1,963,857 in 2023 [343]. - Underwriting fees are recognized when public and private offerings of equity and debt securities are completed, reflecting the satisfaction of performance obligations [373]. Employee Compensation and Expenses - Employee compensation and benefits expenses include all payments for services rendered, with a focus on maintaining competitive compensation levels to retain key personnel [183]. - Employee Compensation and Benefits Expense was $1.97 billion in 2024, up $317.2 million, or 19%, from $1.66 billion in 2023, representing 66.3% of Net Revenues [208]. - The ratio of Employee Compensation and Benefits Expense to Net Revenues is a key measure for assessing compensation costs relative to performance [194]. - Non-Compensation expenses totaled $471.3 million in 2024, an increase of $64.3 million, or 16%, driven by higher professional fees and travel expenses [209]. - Employee Compensation and Benefits Expense was $46.1 million in 2024, an increase of $6.7 million or 17% compared to $39.4 million in 2023 [241]. Assets and Management - Assets Under Management (AUM) in Wealth Management increased to $13.9 billion at December 31, 2024, up $1.6 billion, or 13%, from $12.3 billion at December 31, 2023 [235]. - AUM for Wealth Management increased by 11% due to market appreciation and 2% due to client flows in 2024 [239]. - The Investment Management segment includes wealth management and private equity services, with interests in Atalanta Sosnoff and ABS Investment Management [354]. Cash Flow and Investments - Operating cash flows resulted in a net inflow of $988.2 million in 2024, primarily related to earnings [245]. - Cash, Cash Equivalents, and Restricted Cash increased to $882.1 million at December 31, 2024, up $276.6 million from $605.5 million at December 31, 2023 [245]. - The company repurchased 1,312,895 Class A Shares at an average cost of $203.84, totaling $267.6 million during 2024 [255]. - The company experienced a net loss on investments of $(33,682,000) in 2024, slightly improved from $(34,671,000) in 2023 [351]. Tax and Deferred Tax Assets - The provision for income taxes in 2024 was $115.4 million, reflecting an effective tax rate of 21.6%, compared to $80.6 million and 22.0% in 2023 [212]. - The Company estimates that it must generate approximately $1.7 billion of future taxable income to realize the gross deferred tax asset balance of $417.6 million [320]. - Management has concluded that it is more-likely-than-not that the deferred tax assets will be realized based on sufficient future taxable income [319]. Financial Position and Liabilities - Total current assets rose to $2,987,901 in 2024, a 14.7% increase from $2,605,217 in 2023 [341]. - Total liabilities increased to $2,232,163 in 2024, up 16.2% from $1,920,808 in 2023 [341]. - Total equity at December 31, 2024, reached $1,941,808,000, compared to $1,782,490,000 at the end of 2023, reflecting a growth of 8.9% [348]. Revenue Recognition and Accounting Policies - Revenue recognition follows ASC 606, with advisory fees recognized upon the completion of performance obligations [367]. - The Company applies significant judgment in determining the timing of revenue recognition, particularly for advisory services [370]. - The financial statements are prepared in accordance with U.S. GAAP, ensuring compliance with generally accepted accounting principles [355].