Evercore Reports Record First Quarter 2021 Results; Increases Quarterly Dividend to $0.68 Per Share
Evercore Inc. (NYSE: EVR) reported record results for Q1 2021, achieving net revenues of $662.3 million, a 55% increase year-over-year. Operating income soared by 294% to $194.2 million, with net income attributable to Evercore up 363% at $144.4 million. Diluted EPS reached $3.25. The firm retained its #1 league table ranking in M&A, advising on the largest U.S. transactions. In capital return, a quarterly dividend of $0.68 was announced, up 11.5%, and $275.3 million was returned to shareholders through buybacks and dividends.
- Net revenues increased 55% year-over-year to $662.3 million.
- Operating income surged by 294% to $194.2 million.
- Net income attributable to Evercore rose 363% to $144.4 million.
- Quarterly diluted EPS jumped 339% to $3.25.
- Evercore secured its #1 position in M&A advisory among independent firms.
- Quarterly dividend increased by 11.5% to $0.68 per share.
- Returned $275.3 million to shareholders through dividends and share buybacks.
- Compensation costs rose 46% to $395.4 million.
Evercore Inc. (NYSE: EVR):
|
First Quarter 2021 Results |
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U.S. GAAP |
|
Adjusted |
||||||
|
|
vs. Q1 2020 |
|
|
vs. Q1 2020 |
||||
Net Revenues ($ millions) |
$ |
662.3 |
|
|
|
$ |
669.9 |
|
|
Operating Income ($ millions) |
$ |
194.2 |
|
|
|
$ |
201.8 |
|
|
Net Income Attributable to Evercore Inc. ($ millions) |
$ |
144.4 |
|
|
|
$ |
162.5 |
|
|
Diluted Earnings Per Share |
$ |
3.25 |
|
|
|
$ |
3.29 |
|
|
Operating Margin |
29.3 |
% |
1,778 bps |
|
30.1 |
% |
1,115 bps |
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Business and Financial Highlights |
■ |
Net Revenues on a U.S. GAAP and an Adjusted basis increased |
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■ |
#1 league table ranking among independents and ranked #6 in the U.S. among all firms for announced M&A volumes over the last twelve months as of quarter-end |
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■ |
Advising on the two largest announced M&A transactions of the first quarter |
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■ |
Sustained ECM momentum generated |
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■ |
U.S. GAAP and Adjusted Operating Margins of |
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Talent |
■ |
Mark Mahaney joined Evercore ISI as a Senior Managing Director and Head of Internet Research in March |
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■ |
Juan Pedro Pérez Cózar joined Evercore in April as a Senior Managing Director and Head of the Advisory business in Iberia and will focus on advising clients in Spain and Portugal on M&A and capital advisory transactions across a range of sectors |
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■ |
Ongoing investment in ECM business with focus on both further sector and capability expansion and penetration
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■ |
Pace of dialogue with potential senior level talent additions continues to be strong given the breadth and diversity of Evercore’s platform |
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Financial Transactions |
■ |
Issued |
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Capital Return |
■ |
Quarterly dividend of |
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■ |
Board approved share repurchase authorization of
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■ |
Offset
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■ |
Returned |
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Evercore Inc. (NYSE: EVR) today announced its results for the first quarter ended March 31, 2021.
LEADERSHIP COMMENTARY
John S. Weinberg, Co-Chairman and Co-Chief Executive Officer, "Our first quarter results reflect our team’s intense client focus, the breadth of our business and the favorable environment for M&A and capital raising activity. In Advisory, transactions announced in 2020 amid the recovery in M&A moved towards completion and activity levels remained strong during the quarter. We maintained our #1 league table ranking for announced M&A volumes among independent firms and we are advising on the two largest announced U.S. transactions of the quarter. Our Underwriting business extended its momentum as our breadth of capabilities – including IPOs, follow-ons, convertibles and SPACs – enables us to help our clients implement capital raising strategies that best meet their needs. Our investments in convertibles and SPACs and our expanded sector coverage continue to pay off with a more balanced revenue mix for the business and further opportunities for growth. In Equities, our strong research and sales and trading capabilities continued to serve our institutional clients and our results reflect larger contributions from newer capabilities that we have invested in recently. In summary, our exceptional team continued to serve our clients with distinction by exemplifying our Core Values every day. We are proud of the way our firm is emerging from the pandemic-induced downturn and we will continue to help our clients achieve their strategic, financial and capital needs throughout the recovery and beyond."
Ralph Schlosstein, Co-Chairman and Co-Chief Executive Officer, "We started the year with a lot of momentum, which translated to the strongest first quarter in our history by many measures. We are delivering for our clients across sectors, geographies and capabilities. We continue to see robust announced M&A volumes and a desire for capital raising, both of which are contributing to our strong backlogs. We are pleased to be returning to our pre-pandemic approach to capital return for our shareholders, including an annual increase to our dividend consistent with historical levels and significant return of capital through share buybacks. In the first quarter, we returned
Roger C. Altman, Founder and Senior Chairman, "This first quarter saw Evercore perform exceptionally well amidst very strong, overall global levels of transactions. For many years, clients have responded favorably to our commitments on excellence and integrity, which is why our market share also grew again."
Selected Financial Data - U.S. GAAP Results:
The following is a discussion of Evercore's results on a U.S. GAAP basis.
U.S. GAAP |
||||||||||
|
Three Months Ended |
|||||||||
|
March 31, 2021 |
|
March 31, 2020 |
|
%
|
|||||
|
(dollars in thousands, except per share data) |
|||||||||
Net Revenues |
$ |
662,310 |
|
|
$ |
427,007 |
|
|
55 |
% |
Operating Income(1) |
$ |
194,208 |
|
|
$ |
49,303 |
|
|
294 |
% |
Net Income Attributable to Evercore Inc. |
$ |
144,352 |
|
|
$ |
31,175 |
|
|
363 |
% |
Diluted Earnings Per Share |
$ |
3.25 |
|
|
$ |
0.74 |
|
|
339 |
% |
Compensation Ratio |
59.7 |
% |
|
63.4 |
% |
|
|
|||
Operating Margin |
29.3 |
% |
|
11.5 |
% |
|
|
|||
Effective Tax Rate |
16.1 |
% |
|
25.8 |
% |
|
|
|||
Trailing Twelve Month Compensation Ratio |
59.9 |
% |
|
60.6 |
% |
|
|
|||
|
|
|
|
|
|
|||||
|
||||||||||
Net Revenues
For the three months ended March 31, 2021, Net Revenues of
Compensation
For the three months ended March 31, 2021, compensation costs of
Non-Compensation Costs
For the three months ended March 31, 2021, Non-Compensation Costs of
Special Charges, Including Business Realignment Costs
In 2020, the Company completed a review of operations focused on markets, sectors and people which delivered lower levels of productivity in an effort to attain greater flexibility of operations and better position itself for future growth. This review generated reductions of approximately
In conjunction with the employment reductions, the Company incurred separation and transition benefits and related costs of
Special Charges, Including Business Realignment Costs, for the three months ended March 31, 2020 also reflect the acceleration of depreciation expense for leasehold improvements and certain other fixed assets in conjunction with the previously announced expansion of our headquarters in New York and our business realignment initiatives of
Effective Tax Rate
For the three months ended March 31, 2021, the effective tax rate was
Selected Financial Data - Adjusted Results:
The following is a discussion of Evercore's results on an Adjusted basis. See pages 6 and A-2 to A-10 for further information and reconciliations of these non-GAAP metrics to our U.S. GAAP results.
|
Adjusted |
|||||||||
|
Three Months Ended |
|||||||||
|
March 31, 2021 |
|
March 31, 2020 |
|
%
|
|||||
|
(dollars in thousands, except per share data) |
|||||||||
Net Revenues |
$ |
669,904 |
|
|
$ |
434,977 |
|
|
54 |
% |
Operating Income |
$ |
201,809 |
|
|
$ |
82,531 |
|
|
145 |
% |
Net Income Attributable to Evercore Inc. |
$ |
162,517 |
|
|
$ |
57,818 |
|
|
181 |
% |
Diluted Earnings Per Share |
$ |
3.29 |
|
|
$ |
1.21 |
|
|
172 |
% |
Compensation Ratio |
59.0 |
% |
|
62.0 |
% |
|
|
|||
Operating Margin |
30.1 |
% |
|
19.0 |
% |
|
|
|||
Effective Tax Rate |
17.1 |
% |
|
24.9 |
% |
|
|
|||
Trailing Twelve Month Compensation Ratio |
58.4 |
% |
|
59.0 |
% |
|
|
|||
Adjusted Net Revenues
For the three months ended March 31, 2021, Adjusted Net Revenues of
Adjusted Compensation
For the three months ended March 31, 2021, Adjusted compensation costs of
Adjusted Non-Compensation Costs
For the three months ended March 31, 2021, Adjusted Non-Compensation Costs of
Adjusted Effective Tax Rate
For the three months ended March 31, 2021, the Adjusted effective tax rate was
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.
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 vested and certain unvested 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 months ended March 31, 2021 was higher than U.S. GAAP as a result of certain business acquisition-related and disposition-related charges.
Acquisition-related charges for 2021 include professional fees incurred.
Evercore's Adjusted Diluted Shares Outstanding for the three months ended March 31, 2021 were higher than U.S. GAAP, as a result of the inclusion of certain Evercore LP Units.
Further details of these adjustments, as well as an explanation of similar amounts for the three months ended March 31, 2020 are included in Annex I, pages A-2 to A-10.
Reclassifications:
Certain balances in the prior period were reclassified to conform to their current presentation in this release. "Commissions and Related Fees" has been renamed to "Commissions and Related Revenue" and principal trading gains and losses from our institutional equities business have been reclassified from "Other Revenue, Including Interest and Investments" to "Commissions and Related Revenue." For the three months ended March 31, 2020, this resulted in a reclassification of
The prior period reclassifications from "Other Revenue, Including Interest and Investments" to "Commissions and Related Revenue" are as follows: Q1 2020:
Business Line Reporting - Discussion of U.S. GAAP Results
The following is a discussion of Evercore's segment results on a U.S. GAAP basis.
Investment Banking
|
U.S. GAAP |
|||||||||
|
Three Months Ended |
|||||||||
|
March 31, 2021 |
|
March 31, 2020 |
|
%
|
|||||
|
(dollars in thousands) |
|||||||||
Net Revenues: |
|
|
|
|
|
|||||
Investment Banking: |
|
|
|
|
|
|||||
Advisory Fees |
$ |
511,918 |
|
|
$ |
358,564 |
|
|
43 |
% |
Underwriting Fees |
79,257 |
|
|
21,118 |
|
|
275 |
% |
||
Commissions and Related Revenue |
53,526 |
|
|
55,566 |
|
|
(4 |
%) |
||
Other Revenue, net |
2,584 |
|
|
(21,592) |
|
|
NM |
|||
Net Revenues |
647,285 |
|
|
413,656 |
|
|
56 |
% |
||
|
|
|
|
|
|
|||||
Expenses: |
|
|
|
|
|
|||||
Employee Compensation and Benefits |
386,682 |
|
|
261,991 |
|
|
48 |
% |
||
Non-Compensation Costs |
69,851 |
|
|
79,386 |
|
|
(12 |
%) |
||
Special Charges, Including Business Realignment Costs |
— |
|
|
23,644 |
|
|
NM |
|||
Total Expenses |
456,533 |
|
|
365,021 |
|
|
25 |
% |
||
|
|
|
|
|
|
|||||
Operating Income |
$ |
190,752 |
|
|
$ |
48,635 |
|
|
292 |
% |
|
|
|
|
|
|
|||||
Compensation Ratio |
59.7 |
% |
|
63.3 |
% |
|
|
|||
Non-Compensation Ratio |
10.8 |
% |
|
19.2 |
% |
|
|
|||
Operating Margin |
29.5 |
% |
|
11.8 |
% |
|
|
|||
|
|
|
|
|
|
|||||
Total Number of Fees from Advisory Client Transactions(1) |
248 |
|
222 |
|
|
12 |
% |
|||
Investment Banking Fees of at Least |
103 |
|
73 |
|
|
41 |
% |
|||
|
|
|
|
|
|
|||||
Total Number of Underwriting Transactions |
39 |
|
12 |
|
|
225 |
% |
|||
Total Number of Underwriting Transactions as a Bookrunner |
31 |
|
8 |
|
|
288 |
% |
|||
|
|
|
|
|
|
|||||
|
||||||||||
Revenues
During the three months ended March 31, 2021, fees from Advisory services increased
Other Revenue, net, for the three months ended March 31, 2021 increased versus the three months ended March 31, 2020, primarily reflecting a shift from losses of
Expenses
Compensation costs were
Non-Compensation Costs for the three months ended March 31, 2021 were
Special Charges, Including Business Realignment Costs, for the three months ended March 31, 2020 reflect
Investment Management
|
U.S. GAAP |
|||||||||
|
Three Months Ended |
|||||||||
|
March 31, 2021 |
|
March 31, 2020 |
|
%
|
|||||
(dollars in thousands) |
||||||||||
Net Revenues: |
|
|
|
|
|
|||||
Asset Management and Administration Fees |
$ |
14,949 |
|
|
$ |
12,747 |
|
|
17 |
% |
Other Revenue, net |
76 |
|
|
604 |
|
|
(87 |
%) |
||
Net Revenues |
15,025 |
|
|
13,351 |
|
|
13 |
% |
||
|
|
|
|
|
|
|||||
Expenses: |
|
|
|
|
|
|||||
Employee Compensation and Benefits |
8,708 |
|
|
8,751 |
|
|
— |
% |
||
Non-Compensation Costs |
2,861 |
|
|
3,900 |
|
|
(27 |
%) |
||
Special Charges, Including Business Realignment Costs |
— |
|
|
32 |
|
|
NM |
|||
Total Expenses |
11,569 |
|
|
12,683 |
|
|
(9 |
%) |
||
|
|
|
|
|
|
|||||
Operating Income |
$ |
3,456 |
|
|
$ |
668 |
|
|
417 |
% |
|
|
|
|
|
|
|||||
Compensation Ratio |
58.0 |
% |
|
65.5 |
% |
|
|
|||
Non-Compensation Ratio |
19.0 |
% |
|
29.2 |
% |
|
|
|||
Operating Margin |
23.0 |
% |
|
5.0 |
% |
|
|
|||
|
|
|
|
|
|
|||||
Assets Under Management (in millions)(1) |
|
|
|
|
|
|||||
Wealth Management(2) |
$ |
10,555 |
|
|
$ |
8,273 |
|
|
28 |
% |
Institutional Asset Management |
— |
|
|
1,250 |
|
|
NM |
|||
Total Assets Under Management |
$ |
10,555 |
|
|
$ |
9,523 |
|
|
11 |
% |
|
|
|
|
|
|
|||||
|
||||||||||
Revenues
|
U.S. GAAP |
|||||||||
|
Three Months Ended |
|||||||||
|
March 31, 2021 |
|
March 31, 2020 |
|
%
|
|||||
|
(dollars in thousands) |
|||||||||
Asset Management and Administration Fees: |
|
|
|
|
|
|||||
Wealth Management |
$ |
14,949 |
|
|
$ |
12,328 |
|
|
21 |
% |
Institutional Asset Management |
— |
|
|
419 |
|
|
NM |
|||
Total Asset Management and Administration Fees |
$ |
14,949 |
|
|
$ |
12,747 |
|
|
17 |
% |
|
|
|
|
|
|
|||||
Our historical Investment Management results include the following businesses, which were previously included in Institutional Asset Management above. These businesses were deconsolidated in 2020:
- On July 2, 2020, we sold the trust business of Evercore Casa de Bolsa, S.A. de C.V. ("ECB").
- On December 16, 2020, we sold the remaining ECB business to certain former employees.
Following these transactions, there are no remaining consolidated businesses in Institutional Asset Management.
Asset Management and Administration Fees of
Other Revenue, net, which includes income from our legacy private equity investments, decreased
Expenses
Investment Management's expenses for the three months ended March 31, 2021 were
Special Charges, Including Business Realignment Costs, for the three months ended March 31, 2020 primarily reflect separation and transition benefits and related costs. See page 4 for further information.
Business Line Reporting - Discussion of Adjusted Results
The following is a discussion of Evercore's segment results on an Adjusted basis. See pages 6 and A-2 to A-10 for further information and reconciliations of these metrics to our U.S. GAAP results.
Investment Banking
|
Adjusted |
|||||||||
|
Three Months Ended |
|||||||||
|
March 31, 2021 |
|
March 31, 2020 |
|
%
|
|||||
(dollars in thousands) |
||||||||||
Net Revenues: |
|
|
|
|
|
|||||
Investment Banking: |
|
|
|
|
|
|||||
Advisory Fees(1) |
$ |
512,087 |
|
|
$ |
359,100 |
|
|
43 |
% |
Underwriting Fees |
79,257 |
|
|
21,118 |
|
|
275 |
% |
||
Commissions and Related Revenue |
53,526 |
|
|
55,566 |
|
|
(4 |
%) |
||
Other Revenue, net |
7,154 |
|
|
(16,750) |
|
|
NM |
|||
Net Revenues |
652,024 |
|
|
419,034 |
|
|
56 |
% |
||
|
|
|
|
|
|
|||||
Expenses: |
|
|
|
|
|
|||||
Employee Compensation and Benefits |
386,682 |
|
|
260,924 |
|
|
48 |
% |
||
Non-Compensation Costs |
69,844 |
|
|
78,871 |
|
|
(11 |
%) |
||
Total Expenses |
456,526 |
|
|
339,795 |
|
|
34 |
% |
||
|
|
|
|
|
|
|||||
Operating Income |
$ |
195,498 |
|
|
$ |
79,239 |
|
|
147 |
% |
|
|
|
|
|
|
|||||
Compensation Ratio |
59.3 |
% |
|
62.3 |
% |
|
|
|||
Non-Compensation Ratio |
10.7 |
% |
|
18.8 |
% |
|
|
|||
Operating Margin |
30.0 |
% |
|
18.9 |
% |
|
|
|||
|
|
|
|
|
|
|||||
Total Number of Fees from Advisory Client Transactions(2) |
248 |
|
222 |
|
|
12 |
% |
|||
Investment Banking Fees of at Least |
103 |
|
73 |
|
|
41 |
% |
|||
|
|
|
|
|
|
|||||
Total Number of Underwriting Transactions |
39 |
|
12 |
|
|
225 |
% |
|||
Total Number of Underwriting Transactions as a Bookrunner |
31 |
|
8 |
|
|
288 |
% |
|||
|
|
|
|
|
|
|||||
|
||||||||||
Adjusted Revenues
During the three months ended March 31, 2021, fees from Advisory services on an Adjusted basis increased
Other Revenue, net, for the three months ended March 31, 2021 increased versus the three months ended March 31, 2020, primarily reflecting a shift from losses of
Adjusted Expenses
Adjusted compensation costs were
Adjusted Non-Compensation Costs for the three months ended March 31, 2021 were
Investment Management
|
Adjusted |
|||||||||
|
Three Months Ended |
|||||||||
|
March 31, 2021 |
|
March 31, 2020 |
|
%
|
|||||
(dollars in thousands) |
||||||||||
Net Revenues: |
|
|
|
|
|
|||||
Asset Management and Administration Fees |
$ |
17,804 |
|
|
$ |
15,339 |
|
|
16 |
% |
Other Revenue, net |
76 |
|
|
604 |
|
|
(87 |
%) |
||
Net Revenues |
17,880 |
|
|
15,943 |
|
|
12 |
% |
||
|
|
|
|
|
|
|||||
Expenses: |
|
|
|
|
|
|||||
Employee Compensation and Benefits |
8,708 |
|
|
8,751 |
|
|
— |
% |
||
Non-Compensation Costs |
2,861 |
|
|
3,900 |
|
|
(27 |
%) |
||
Total Expenses |
11,569 |
|
|
12,651 |
|
|
(9 |
%) |
||
|
|
|
|
|
|
|||||
Operating Income |
$ |
6,311 |
|
|
$ |
3,292 |
|
|
92 |
% |
|
|
|
|
|
|
|||||
Compensation Ratio |
48.7 |
% |
|
54.9 |
% |
|
|
|||
Non-Compensation Ratio |
16.0 |
% |
|
24.5 |
% |
|
|
|||
Operating Margin |
35.3 |
% |
|
20.6 |
% |
|
|
|||
|
|
|
|
|
|
|||||
Assets Under Management (in millions)(1) |
|
|
|
|
|
|||||
Wealth Management(2) |
$ |
10,555 |
|
|
$ |
8,273 |
|
|
28 |
% |
Institutional Asset Management |
— |
|
|
1,250 |
|
|
NM |
|||
Total Assets Under Management |
$ |
10,555 |
|
|
$ |
9,523 |
|
|
11 |
% |
|
|
|
|
|
|
|||||
|
||||||||||
Adjusted Revenues
|
Adjusted |
|||||||||
|
Three Months Ended |
|||||||||
|
March 31, 2021 |
|
March 31, 2020 |
|
%
|
|||||
|
(dollars in thousands) |
|||||||||
Asset Management and Administration Fees: |
|
|
|
|
|
|||||
Wealth Management |
$ |
14,949 |
|
|
$ |
12,328 |
|
|
21 |
% |
Institutional Asset Management |
— |
|
|
419 |
|
|
NM |
|||
Equity in Earnings of Affiliates(1) |
2,855 |
|
|
2,592 |
|
|
10 |
% |
||
Total Asset Management and Administration Fees |
$ |
17,804 |
|
|
$ |
15,339 |
|
|
16 |
% |
|
|
|
|
|
|
|||||
|
||||||||||
Our historical Investment Management results include the following businesses, which were previously included in Institutional Asset Management above. These businesses were deconsolidated in 2020:
- On July 2, 2020, we sold the trust business of ECB.
- On December 16, 2020, we sold the remaining ECB business to certain former employees.
Following these transactions, there are no remaining consolidated businesses in Institutional Asset Management.
Adjusted Asset Management and Administration Fees of
Other Revenue, net, which includes income from our legacy private equity investments, decreased
Adjusted Expenses
Investment Management's Adjusted expenses for the three months ended March 31, 2021 were
Liquidity
The Company continues to maintain a strong balance sheet, holding cash and cash equivalents of
Deferred Compensation
During the first quarter of 2021, the Company granted to certain employees approximately 2.0 million unvested restricted stock units ("RSUs") (including 1.9 million granted in conjunction with the 2020 bonus awards) with a grant date fair value of approximately
In addition, during the first quarter of 2021, as part of the 2020 bonus awards, the Company granted approximately
The Company recognized compensation expense related to RSUs and our deferred cash compensation program of
As of March 31, 2021, the Company expects to pay an aggregate of
Capital Return Transactions
On April 27, 2021, the Board of Directors of Evercore declared a quarterly dividend of
During the three months ended March 31, 2021, the Company repurchased approximately 0.9 million shares from employees for the net settlement of stock-based compensation awards at an average price per share of
On March 29, 2021, the Company issued
Conference Call
Evercore will host a related conference call beginning at 8:00 a.m. Eastern Time, Wednesday, April 28, 2021, accessible via telephone and the Internet. Investors and analysts may participate in the live conference call by dialing (877) 359-9508 (toll-free domestic) or (224) 357-2393 (international); passcode: 1985025. Please register at least 10 minutes before the conference call begins. A replay of the call will be available for one week via telephone starting approximately one hour after the call ends. The replay can be accessed at (855) 859-2056 (toll-free domestic) or (404) 537-3406 (international); passcode: 1985025. 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 North America, 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 reflect management's view of 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 Annex I.
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, 2020, 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.
With respect to any securities offered by any private equity fund referenced herein, such securities have not been, and will not be registered, under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
ANNEX I
Schedule |
Page Number |
Unaudited Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2021 and 2020 |
A-1 |
Adjusted: |
|
Adjusted Results (Unaudited) |
A-2 |
U.S. GAAP Reconciliation to Adjusted Results (Unaudited) |
A-4 |
U.S. GAAP Reconciliation to Adjusted Results for the Trailing Twelve Months (Unaudited) |
A-5 |
U.S. GAAP Segment Reconciliation to Adjusted Results for the Three Months ended March 31, 2021 (Unaudited) |
A-6 |
U.S. GAAP Segment Reconciliation to Adjusted Results for the Three Months ended March 31, 2020 (Unaudited) |
A-7 |
U.S. GAAP Segment Reconciliation to Consolidated Results (Unaudited) |
A-8 |
Notes to Unaudited Condensed Consolidated Adjusted Financial Data |
A-9 |
EVERCORE INC. |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
THREE MONTHS ENDED MARCH 31, 2021 AND 2020 |
|||||||
(dollars in thousands, except per share data) |
|||||||
(UNAUDITED) |
|||||||
|
|
|
|
||||
|
Three Months Ended March 31, |
||||||
|
2021 |
|
2020 |
||||
|
|
|
|
||||
Revenues |
|
|
|
||||
Investment Banking: |
|
|
|
||||
Advisory Fees |
$ |
511,918 |
|
|
$ |
358,564 |
|
Underwriting Fees |
79,257 |
|
|
21,118 |
|
||
Commissions and Related Revenue |
53,526 |
|
|
55,566 |
|
||
Asset Management and Administration Fees |
14,949 |
|
|
12,747 |
|
||
Other Revenue, Including Interest and Investments |
7,230 |
|
|
(14,948 |
) |
||
Total Revenues |
666,880 |
|
|
433,047 |
|
||
Interest Expense(1) |
4,570 |
|
|
6,040 |
|
||
Net Revenues |
662,310 |
|
|
427,007 |
|
||
|
|
|
|
||||
Expenses |
|
|
|
||||
Employee Compensation and Benefits |
395,390 |
|
|
270,742 |
|
||
Occupancy and Equipment Rental |
18,709 |
|
|
18,910 |
|
||
Professional Fees |
21,607 |
|
|
16,966 |
|
||
Travel and Related Expenses |
2,292 |
|
|
16,151 |
|
||
Communications and Information Services |
14,029 |
|
|
12,567 |
|
||
Depreciation and Amortization |
6,641 |
|
|
6,871 |
|
||
Execution, Clearing and Custody Fees |
3,552 |
|
|
4,186 |
|
||
Special Charges, Including Business Realignment Costs |
— |
|
|
23,676 |
|
||
Acquisition and Transition Costs |
7 |
|
|
8 |
|
||
Other Operating Expenses |
5,875 |
|
|
7,627 |
|
||
Total Expenses |
468,102 |
|
|
377,704 |
|
||
|
|
|
|
||||
Income Before Income from Equity Method Investments and Income Taxes |
194,208 |
|
|
49,303 |
|
||
Income from Equity Method Investments |
3,024 |
|
|
3,128 |
|
||
Income Before Income Taxes |
197,232 |
|
|
52,431 |
|
||
Provision for Income Taxes |
31,681 |
|
|
13,551 |
|
||
Net Income |
165,551 |
|
|
38,880 |
|
||
Net Income Attributable to Noncontrolling Interest |
21,199 |
|
|
7,705 |
|
||
Net Income Attributable to Evercore Inc. |
$ |
144,352 |
|
|
$ |
31,175 |
|
|
|
|
|
||||
Net Income Attributable to Evercore Inc. Common Shareholders |
$ |
144,352 |
|
|
$ |
31,175 |
|
|
|
|
|
||||
Weighted Average Shares of Class A Common Stock Outstanding: |
|
|
|
||||
Basic |
41,364 |
|
|
39,992 |
|
||
Diluted |
44,456 |
|
|
42,317 |
|
||
|
|
|
|
||||
Net Income Per Share Attributable to Evercore Inc. Common Shareholders: |
|
|
|
||||
Basic |
$ |
3.49 |
|
|
$ |
0.78 |
|
Diluted |
$ |
3.25 |
|
|
$ |
0.74 |
|
|
|
|
|
||||
| |||||||
FAQ
What were Evercore's Q1 2021 net revenues?
How much did Evercore increase its quarterly dividend in Q1 2021?
What is the diluted earnings per share for Evercore in Q1 2021?
How much capital did Evercore return to shareholders in Q1 2021?
What was Evercore's operating income growth in Q1 2021?
