Evercore Reports Third Quarter 2024 Results; Quarterly Dividend of $0.80 Per Share
Evercore (NYSE: EVR) reported strong Q3 2024 results with net revenues of $734.2 million on a U.S. GAAP basis, up 29% year-over-year. Operating income increased 59% to $122.0 million, with operating margins expanding to 16.6%. Advisory fees grew 27% to $593 million, while underwriting fees rose 43% to $44.1 million. The company maintained a quarterly dividend of $0.80 per share and returned $528.8 million to shareholders through dividends and share repurchases in the first nine months of 2024. Notable achievements include leading several major transactions and expanding their team with new senior managing directors.
Evercore (NYSE: EVR) ha riportato risultati solidi per il terzo trimestre del 2024, con ricavi netti di 734,2 milioni di dollari secondo i principi contabili GAAP statunitensi, un aumento del 29% rispetto all'anno precedente. L'utile operativo è aumentato del 59% a 122,0 milioni di dollari, con un margine operativo che si è espanso al 16,6%. Le commissioni di consulenza sono cresciute del 27% a 593 milioni di dollari, mentre le commissioni di sottoscrizione sono aumentate del 43% a 44,1 milioni di dollari. L'azienda ha mantenuto un dividendo trimestrale di 0,80 dollari per azione e ha restituito 528,8 milioni di dollari agli azionisti attraverso dividendi e riacquisti di azioni nei primi nove mesi del 2024. Tra i risultati notevoli ci sono la guida di diverse transazioni importanti e l'espansione del proprio team con nuovi direttori gerenti senior.
Evercore (NYSE: EVR) reportó sólidos resultados en el tercer trimestre de 2024, con ingresos netos de 734,2 millones de dólares según los principios contables GAAP de EE. UU., un aumento del 29% en comparación con el año anterior. El ingreso operativo aumentó un 59% a 122,0 millones de dólares, y el margen operativo se expandió al 16,6%. Las comisiones de asesoría crecieron un 27% a 593 millones de dólares, mientras que las comisiones por suscripción aumentaron un 43% a 44,1 millones de dólares. La compañía mantuvo un dividendo trimestral de 0,80 dólares por acción y devolvió 528,8 millones de dólares a los accionistas a través de dividendos y recompra de acciones en los primeros nueve meses de 2024. Entre los logros notables se incluyen liderar varias transacciones importantes y expandir su equipo con nuevos directores generales.
Evercore (NYSE: EVR)는 2024년 3분기 실적을 발표했으며, 미국 GAAP 기준으로 순수익이 7억 3420만 달러로 전년 대비 29% 증가했습니다. 운영 수익은 59% 증가하여 1억 2200만 달러에 달했으며, 운영 마진은 16.6%로 확대되었습니다. 자문 수수료는 27% 증가하여 5억 9300만 달러에 달했으며, 인수 수수료는 43% 상승하여 4410만 달러로 늘어났습니다. 회사는 주당 0.80달러의 분기 배당금을 유지했으며, 2024년 첫 9개월 동안 배당금 및 자사주 매입을 통해 주주에게 5억 2880만 달러를 환원했습니다. 주목할 만한 성과로는 여러 주요 거래를 주도하고 새로운 수석 관리 이사와 함께 팀을 확장한 것이 포함됩니다.
Evercore (NYSE: EVR) a annoncé de solides résultats pour le troisième trimestre 2024, avec des revenus nets de 734,2 millions de dollars selon les principes comptables GAAP américains, soit une augmentation de 29 % par rapport à l’année précédente. Le bénéfice d’exploitation a augmenté de 59 % pour atteindre 122,0 millions de dollars, avec une marge opérationnelle qui s'est élargie à 16,6 %. Les frais de conseil ont augmenté de 27 % pour atteindre 593 millions de dollars, tandis que les frais de souscription ont progressé de 43 % pour atteindre 44,1 millions de dollars. L'entreprise a maintenu un dividende trimestriel de 0,80 USD par action et a retourné 528,8 millions de dollars aux actionnaires par le biais de dividendes et de rachats d’actions au cours des neuf premiers mois de 2024. Parmi les réalisations notables figurent la direction de plusieurs transactions majeures et l'expansion de son équipe avec de nouveaux directeurs généraux seniors.
Evercore (NYSE: EVR) berichtete über starke Ergebnisse im 3. Quartal 2024 mit Nettoerlösen von 734,2 Millionen Dollar auf Basis der US-GAAP, was einem Anstieg von 29% im Vergleich zum Vorjahr entspricht. Das Betriebsergebnis stieg um 59% auf 122,0 Millionen Dollar, und die Betriebsmarge erweiterte sich auf 16,6%. Die Beratungsgebühren wuchsen um 27% auf 593 Millionen Dollar, während die Emissionsgebühren um 43% auf 44,1 Millionen Dollar anstiegen. Das Unternehmen behielt eine vierteljährliche Dividende von 0,80 Dollar pro Aktie bei und gab in den ersten neun Monaten 2024 528,8 Millionen Dollar an die Aktionäre durch Dividenden und Aktienrückkäufe zurück. Zu den bemerkenswerten Erfolgen zählt die Leitung mehrerer großer Transaktionen und die Erweiterung ihres Teams mit neuen Senior Managing Directors.
- Net revenues increased 29% YoY to $734.2 million
- Operating income grew 59% to $122.0 million
- Advisory fees up 27% to $593 million
- Underwriting fees increased 43% to $44.1 million
- Operating margins expanded 314 basis points to 16.6%
- Assets Under Management grew 23% to $13.9 billion
- None.
Insights
Evercore delivered strong Q3 2024 results with significant growth across key metrics. Net revenues increased 29% to
The operational leverage is impressive, with operating income surging
Strong capital return continues with
|
Third Quarter Results |
|
Year to Date Results |
|||||||||||||||||||||||||||||
|
|
|
Adjusted |
|
|
|
Adjusted |
|||||||||||||||||||||||||
|
Q3 2024 |
Q3 2023 |
|
Q3 2024 |
Q3 2023 |
|
YTD 2024 |
YTD 2023 |
|
YTD 2024 |
YTD 2023 |
|||||||||||||||||||||
Net Revenues ($ mm) |
$ |
734.2 |
|
$ |
570.2 |
|
|
$ |
739.5 |
|
$ |
576.1 |
|
|
$ |
2,004.3 |
|
$ |
1,641.8 |
|
|
$ |
2,022.1 |
|
$ |
1,659.0 |
|
|||||
Operating Income ($ mm) |
$ |
122.0 |
|
$ |
76.8 |
|
|
$ |
134.6 |
|
$ |
82.7 |
|
|
$ |
314.4 |
|
$ |
241.4 |
|
|
$ |
339.5 |
|
$ |
261.6 |
|
|||||
Net Income Attributable to Evercore Inc. ($ mm) |
$ |
78.4 |
|
$ |
52.1 |
|
|
$ |
90.9 |
|
$ |
55.5 |
|
|
$ |
237.8 |
|
$ |
172.7 |
|
|
$ |
262.5 |
|
$ |
189.1 |
|
|||||
Diluted Earnings Per Share |
$ |
1.86 |
|
$ |
1.30 |
|
|
$ |
2.04 |
|
$ |
1.30 |
|
|
$ |
5.76 |
|
$ |
4.33 |
|
|
$ |
5.98 |
|
$ |
4.43 |
|
|||||
Compensation |
|
66.5 |
% |
|
68.7 |
% |
|
|
66.0 |
% |
|
68.0 |
% |
|
|
66.6 |
% |
|
66.8 |
% |
|
|
66.0 |
% |
|
66.1 |
% |
|||||
Operating Margin |
|
16.6 |
% |
|
13.5 |
% |
|
|
18.2 |
% |
|
14.4 |
% |
|
|
15.7 |
% |
|
14.7 |
% |
|
|
16.8 |
% |
|
15.8 |
% |
Business and Financial Highlights |
◼ |
Third Quarter and Year-to-Date Net Revenues were |
||
◼ |
Third Quarter Operating Income of |
|||
◼ |
In Advisory, Evercore advised on some notable and complex transactions representative of areas in which we have been investing, including financial services, energy transition and sponsors. The transactions include: |
|||
|
◼ |
TIH on the |
||
|
◼ |
Avenue Capital Group and Nuveen Asset Management on their |
||
|
◼ |
CVC on its acquisition of a significant ownership position in Epicor, from Clayton, Dubilier & Rice |
||
◼ |
In Equity Capital Markets, Evercore was lead-left bookrunner on Diamondback Energy’s |
|||
◼ |
Evercore Wealth Management was again named to the Barron’s annual ranking of the Top 100 Independent |
|||
|
|
|
|
|
|
|
|
|
|
Talent |
◼ |
Two Investment Banking Senior Managing Directors and one Senior Advisor joined Evercore in September; Andrea Bozzi, Charles Andrez and Charles-Henri Filippi, in our |
||
◼ |
In addition, three Investment Banking Senior Managing Directors have committed, since our last earnings call, to join Evercore focusing on structured finance, financial institutions and sponsors |
|||
◼ |
One Equities Senior Managing Director joined Evercore in the third quarter; Adam Frisch, to lead research coverage of the financial technology and IT services sectors |
|||
|
|
|
|
|
|
|
|
|
|
Capital Return |
◼ |
Quarterly dividend of |
||
◼ |
Returned |
|||
|
|
|
|
Evercore Inc. (NYSE: EVR) today announced its results for the third quarter ended September 30, 2024.
LEADERSHIP COMMENTARY
John S. Weinberg, Chairman and Chief Executive Officer, "We believe we are in the midst of a gradual recovery, with strong activity levels across nearly all of our businesses, and that Evercore is positioned for success as the market continues to improve."
Roger C. Altman, Founder and Senior Chairman, "Our continued, aggressive investments in both talent and in broadening our platform are bearing fruit."
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 & Equities and Investment Management. Investment Banking & Equities 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-8 for further information and reconciliations of these segment results to our
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
In the third quarter of 2024, the Company sold its remaining ownership interest in ABS. The gain on the sale has been excluded from Adjusted Net Revenues.
In the third quarter of 2024, the Company agreed to the redemption of its interest in Luminis, such that it will no longer have an equity interest in Luminis following the redemption. The Company will receive no consideration in respect of the redemption. As a result, the Company incurred a loss in the third quarter of 2024 associated with the write-off of the remaining carrying value of its investment, included within Special Charges, Including Business Realignment Costs, as well as the release of cumulative foreign exchange losses, included within Other Revenue, net. These charges have been excluded from Adjusted Net Income Attributable to Evercore Inc.
Evercore's Adjusted Diluted Shares Outstanding for the three and nine months ended September 30, 2024 were higher than
Further details of these adjustments, as well as an explanation of similar amounts for the three and nine months ended September 30, 2023 are included in pages A-2 to A-8.
Selected Financial Data –
The following is a discussion of Evercore's consolidated results on a
Net Revenues
|
|
|||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||
|
September 30, 2024 |
|
September 30, 2023 |
|
% Change |
|
September 30, 2024 |
|
September 30, 2023 |
|
% Change |
|||||||
|
(dollars in thousands) |
|||||||||||||||||
Investment Banking & Equities: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Advisory Fees |
$ |
592,980 |
|
$ |
467,401 |
|
27 |
% |
|
$ |
1,591,049 |
|
$ |
1,304,519 |
|
22 |
% |
|
Underwriting Fees |
|
44,132 |
|
|
30,814 |
|
43 |
% |
|
|
130,666 |
|
|
91,897 |
|
42 |
% |
|
Commissions and Related Revenue |
|
54,559 |
|
|
48,697 |
|
12 |
% |
|
|
155,996 |
|
|
146,810 |
|
6 |
% |
|
Investment Management: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Asset Management and Administration Fees |
|
20,555 |
|
|
17,304 |
|
19 |
% |
|
|
58,454 |
|
|
49,837 |
|
17 |
% |
|
Other Revenue, net |
|
21,996 |
|
|
6,004 |
|
266 |
% |
|
|
68,096 |
|
|
48,719 |
|
40 |
% |
|
Net Revenues |
$ |
734,222 |
|
$ |
570,220 |
|
29 |
% |
|
$ |
2,004,261 |
|
$ |
1,641,782 |
|
22 |
% |
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||
|
September 30, 2024 |
|
September 30, 2023 |
|
% Change |
|
September 30, 2024 |
|
September 30, 2023 |
|
% Change |
|||
Total Number of Fees from Advisory and Underwriting Client Transactions(1) |
259 |
|
225 |
|
15 |
% |
|
544 |
|
484 |
|
12 |
% |
|
Total Number of Fees of at Least |
112 |
|
86 |
|
30 |
% |
|
298 |
|
241 |
|
24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total Number of Underwriting Transactions(1) |
17 |
|
11 |
|
55 |
% |
|
53 |
|
40 |
|
33 |
% |
|
Total Number of Underwriting Transactions as a Bookrunner(1) |
15 |
|
10 |
|
50 |
% |
|
45 |
|
36 |
|
25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
1. Includes Equity and Debt Underwriting Transactions. |
|
As of September 30, |
||||||||
|
2024 |
|
2023 |
|
% Change |
||||
Assets Under Management ($ mm)(1) |
$ |
13,887 |
|
$ |
11,273 |
|
23 |
% |
|
|
|
|
|
|
|
||||
1. Assets Under Management reflect end of period amounts from our consolidated Wealth Management business. |
Advisory Fees – Third quarter Advisory Fees increased
Underwriting Fees – Third quarter Underwriting Fees increased
Commissions and Related Revenue – Third quarter Commissions and Related Revenue increased
Asset Management and Administration Fees – Third quarter Asset Management and Administration Fees increased
Other Revenue – Third quarter Other Revenue, net, increased
Expenses
|
|
|||||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||||||
|
September 30, 2024 |
|
September 30, 2023 |
|
% Change |
|
September 30, 2024 |
|
September 30, 2023 |
|
% Change |
|||||||||||
|
(dollars in thousands) |
|||||||||||||||||||||
Employee Compensation and Benefits |
$ |
488,010 |
|
|
$ |
391,730 |
|
|
25 |
% |
|
$ |
1,334,650 |
|
|
$ |
1,096,976 |
|
|
22 |
% |
|
Compensation |
|
66.5 |
% |
|
|
68.7 |
% |
|
|
|
|
66.6 |
% |
|
|
66.8 |
% |
|
|
|||
Non-Compensation Costs |
$ |
116,914 |
|
|
$ |
101,664 |
|
|
15 |
% |
|
$ |
347,950 |
|
|
$ |
300,439 |
|
|
16 |
% |
|
Non-Compensation Ratio |
|
15.9 |
% |
|
|
17.8 |
% |
|
|
|
|
17.4 |
% |
|
|
18.3 |
% |
|
|
|||
Special Charges, Including Business Realignment Costs |
$ |
7,305 |
|
|
$ |
— |
|
|
NM |
|
|
$ |
7,305 |
|
|
$ |
2,921 |
|
|
150 |
% |
Employee Compensation and Benefits – Third quarter Employee Compensation and Benefits increased
Non-Compensation Costs – Third quarter Non-Compensation Costs increased
Special Charges, Including Business Realignment Costs – Third quarter and year-to-date 2024 Special Charges, Including Business Realignment Costs, relate to the write-off of the remaining carrying value of the Company's investment in Luminis in connection with the redemption of the Company's interest. See page 3 for further information.
Year-to-date 2023 Special Charges, Including Business Realignment Costs, relate to the write-off of non-recoverable assets in connection with the wind-down of the Company's operations in
Effective Tax Rate
The third quarter effective tax rate was
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-8 for further information and reconciliations of these metrics to our
Adjusted Net Revenues
|
Adjusted |
|||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||
|
September 30, 2024 |
|
September 30, 2023 |
|
% Change |
|
September 30, 2024 |
|
September 30, 2023 |
|
% Change |
|||||||
|
(dollars in thousands) |
|||||||||||||||||
Investment Banking & Equities: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Advisory Fees(1) |
$ |
593,187 |
|
$ |
467,581 |
|
27 |
% |
|
$ |
1,592,091 |
|
$ |
1,304,913 |
|
22 |
% |
|
Underwriting Fees |
|
44,132 |
|
|
30,814 |
|
43 |
% |
|
|
130,666 |
|
|
91,897 |
|
42 |
% |
|
Commissions and Related Revenue |
|
54,559 |
|
|
48,697 |
|
12 |
% |
|
|
155,996 |
|
|
146,810 |
|
6 |
% |
|
Investment Management: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Asset Management and Administration Fees(2) |
|
21,420 |
|
|
18,788 |
|
14 |
% |
|
|
62,666 |
|
|
54,117 |
|
16 |
% |
|
Other Revenue, net |
|
26,237 |
|
|
10,188 |
|
158 |
% |
|
|
80,714 |
|
|
61,255 |
|
32 |
% |
|
Net Revenues |
$ |
739,535 |
|
$ |
576,068 |
|
28 |
% |
|
$ |
2,022,133 |
|
$ |
1,658,992 |
|
22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
See page 4 for additional business metrics.
Advisory Fees – Third quarter adjusted Advisory Fees increased
Underwriting Fees – Third quarter Underwriting Fees increased
Commissions and Related Revenue – Third quarter Commissions and Related Revenue increased
Asset Management and Administration Fees – Third quarter adjusted Asset Management and Administration Fees increased
Other Revenue – Third quarter adjusted Other Revenue, net, increased
Adjusted Expenses
|
Adjusted |
|||||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||||||
|
September 30, 2024 |
|
September 30, 2023 |
|
% Change |
|
September 30, 2024 |
|
September 30, 2023 |
|
% Change |
|||||||||||
|
(dollars in thousands) |
|||||||||||||||||||||
Employee Compensation and Benefits |
$ |
488,010 |
|
|
$ |
391,730 |
|
|
25 |
% |
|
$ |
1,334,650 |
|
|
$ |
1,096,976 |
|
|
22 |
% |
|
Compensation |
|
66.0 |
% |
|
|
68.0 |
% |
|
|
|
|
66.0 |
% |
|
|
66.1 |
% |
|
|
|||
Non-Compensation Costs |
$ |
116,914 |
|
|
$ |
101,664 |
|
|
15 |
% |
|
$ |
347,950 |
|
|
$ |
300,439 |
|
|
16 |
% |
|
Non-Compensation Ratio |
|
15.8 |
% |
|
|
17.6 |
% |
|
|
|
|
17.2 |
% |
|
|
18.1 |
% |
|
|
Employee Compensation and Benefits – Third quarter adjusted Employee Compensation and Benefits increased
Non-Compensation Costs – Third quarter adjusted Non-Compensation Costs increased
Adjusted Effective Tax Rate
The third quarter adjusted effective tax rate was
Liquidity
The Company continues to maintain a strong balance sheet. As of September 30, 2024, cash and cash equivalents were
Headcount
As of September 30, 2024 and 2023, the Company employed approximately 2,395 and 2,230 people, respectively, worldwide.
As of September 30, 2024 and 2023, the Company employed 186(1) and 175(2) total Investment Banking & Equities Senior Managing Directors, respectively, of which 145(1) and 137(2), respectively, were Investment Banking Senior Managing Directors.
(1) |
|
Senior Managing Director headcount as of September 30, 2024, adjusted to include four additional Investment Banking Senior Managing Directors committed to join in the fourth quarter of 2024 and in 2025. |
(2) |
|
Senior Managing Director headcount as of September 30, 2023, adjusted to include two additional Investment Banking Senior Managing Directors that joined in the fourth quarter of 2023 and the first quarter of 2024 and to exclude for known departures of three Investment Banking Senior Managing Directors. |
Deferred Compensation
Year-to-date, the Company granted to certain employees 1.8 million unvested restricted stock units ("RSUs") (which were primarily granted in conjunction with the 2023 bonus awards) with a grant date fair value of
In addition, year-to-date, the Company granted
The Company recognized compensation expense related to RSUs and our deferred cash compensation program of
As of September 30, 2024, the Company had 5.1 million unvested RSUs with an aggregate grant date fair value of
As of September 30, 2024, the Company expects to pay an aggregate of
In addition, from time to time, the Company also grants cash and equity-based performance awards to certain employees, the settlement of which is dependent on the performance criteria being achieved.
Capital Return Transactions
On October 22, 2024, the Board of Directors of Evercore declared a quarterly dividend of
During the third quarter, the Company repurchased 29 thousand shares from employees for the net settlement of stock-based compensation awards at an average price per share of
Conference Call
Evercore will host a related conference call beginning at 8:00 a.m. Eastern Time, Wednesday, October 23, 2024, accessible via telephone and webcast. Investors and analysts may participate in the live conference call by dialing (800) 225-9448 (toll-free domestic) or (203) 518-9708 (international); passcode: EVRQ324. Please register at least 10 minutes before the conference call begins.
A live audio webcast of the conference call will be available on the Investor Relations section of Evercore’s website at www.evercore.com. The webcast will be archived on Evercore’s website for 30 days.
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
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
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, 2023, 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, 2024 AND 2023 |
||||||||||||
(dollars in thousands, except per share data) |
||||||||||||
(UNAUDITED) |
||||||||||||
|
|
|
|
|
|
|
|
|||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||
|
|
|
|
|
|
|
|
|||||
Revenues |
|
|
|
|
|
|
|
|||||
Investment Banking & Equities: |
|
|
|
|
|
|
|
|||||
Advisory Fees |
$ |
592,980 |
|
$ |
467,401 |
|
$ |
1,591,049 |
|
$ |
1,304,519 |
|
Underwriting Fees |
|
44,132 |
|
|
30,814 |
|
|
130,666 |
|
|
91,897 |
|
Commissions and Related Revenue |
|
54,559 |
|
|
48,697 |
|
|
155,996 |
|
|
146,810 |
|
Asset Management and Administration Fees |
|
20,555 |
|
|
17,304 |
|
|
58,454 |
|
|
49,837 |
|
Other Revenue, Including Interest and Investments |
|
26,194 |
|
|
10,188 |
|
|
80,671 |
|
|
61,255 |
|
Total Revenues |
|
738,420 |
|
|
574,404 |
|
|
2,016,836 |
|
|
1,654,318 |
|
Interest Expense(1) |
|
4,198 |
|
|
4,184 |
|
|
12,575 |
|
|
12,536 |
|
Net Revenues |
|
734,222 |
|
|
570,220 |
|
|
2,004,261 |
|
|
1,641,782 |
|
|
|
|
|
|
|
|
|
|||||
Expenses |
|
|
|
|
|
|
|
|||||
Employee Compensation and Benefits |
|
488,010 |
|
|
391,730 |
|
|
1,334,650 |
|
|
1,096,976 |
|
Occupancy and Equipment Rental |
|
23,087 |
|
|
22,094 |
|
|
66,832 |
|
|
63,994 |
|
Professional Fees |
|
32,313 |
|
|
28,390 |
|
|
97,820 |
|
|
79,992 |
|
Travel and Related Expenses |
|
18,278 |
|
|
13,465 |
|
|
58,884 |
|
|
46,090 |
|
Communications and Information Services |
|
21,242 |
|
|
18,435 |
|
|
59,995 |
|
|
52,006 |
|
Depreciation and Amortization |
|
5,896 |
|
|
5,848 |
|
|
18,628 |
|
|
18,373 |
|
Execution, Clearing and Custody Fees |
|
3,346 |
|
|
3,115 |
|
|
9,738 |
|
|
8,845 |
|
Special Charges, Including Business Realignment Costs |
|
7,305 |
|
|
— |
|
|
7,305 |
|
|
2,921 |
|
Other Operating Expenses |
|
12,752 |
|
|
10,317 |
|
|
36,053 |
|
|
31,139 |
|
Total Expenses |
|
612,229 |
|
|
493,394 |
|
|
1,689,905 |
|
|
1,400,336 |
|
|
|
|
|
|
|
|
|
|||||
Income Before Income from Equity Method Investments and Income Taxes |
|
121,993 |
|
|
76,826 |
|
|
314,356 |
|
|
241,446 |
|
Income from Equity Method Investments |
|
1,072 |
|
|
1,664 |
|
|
5,254 |
|
|
4,674 |
|
Income Before Income Taxes |
|
123,065 |
|
|
78,490 |
|
|
319,610 |
|
|
246,120 |
|
Provision for Income Taxes |
|
34,971 |
|
|
19,717 |
|
|
56,659 |
|
|
52,945 |
|
Net Income |
|
88,094 |
|
|
58,773 |
|
|
262,951 |
|
|
193,175 |
|
Net Income Attributable to Noncontrolling Interest |
|
9,701 |
|
|
6,625 |
|
|
25,107 |
|
|
20,444 |
|
Net Income Attributable to Evercore Inc. |
$ |
78,393 |
|
$ |
52,148 |
|
$ |
237,844 |
|
$ |
172,731 |
|
|
|
|
|
|
|
|
|
|||||
Net Income Attributable to Evercore Inc. Common Shareholders |
$ |
78,393 |
|
$ |
52,148 |
|
$ |
237,844 |
|
$ |
172,731 |
|
|
|
|
|
|
|
|
|
|||||
Weighted Average Shares of Class A Common Stock Outstanding: |
|
|
|
|
|
|
|
|||||
Basic |
|
38,294 |
|
|
37,823 |
|
|
38,411 |
|
|
38,179 |
|
Diluted |
|
42,038 |
|
|
40,000 |
|
|
41,325 |
|
|
39,907 |
|
|
|
|
|
|
|
|
|
|||||
Net Income Per Share Attributable to Evercore Inc. Common Shareholders: |
|
|
|
|
|
|
|
|||||
Basic |
$ |
2.05 |
|
$ |
1.38 |
|
$ |
6.19 |
|
$ |
4.52 |
|
Diluted |
$ |
1.86 |
|
$ |
1.30 |
|
$ |
5.76 |
|
$ |
4.33 |
|
|
|
|
|
|
|
|
|
|||||
(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
- 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:
- Foreign Exchange Gains / (Losses). The release of cumulative foreign exchange losses in the third quarter of 2024 resulting from the redemption of the Company's interest in Luminis is excluded from the Adjusted presentation.
- Gain on Sale of Interests in ABS. The gain on the sale of the remaining portion of the Company's interest in ABS in the third quarter of 2024 is excluded from the Adjusted presentation.
-
Special Charges, Including Business Realignment Costs. Expenses during 2024 that are excluded from the Adjusted presentation relate to the write-off of the remaining carrying value of the Company's investment in Luminis in connection with the redemption of the Company's interest. Expenses during 2023 that are excluded from the Adjusted presentation relate to the write-off of non-recoverable assets in connection with the wind-down of the Company's operations in
Mexico . -
Income Taxes. Evercore is organized as a series of Limited Liability Companies, Partnerships, C-Corporations and a Public Corporation in the
U.S. as the ultimate parent. Certain of the subsidiaries, particularly Evercore LP, have noncontrolling interests held by management or former members of management. As a result, not all of the Company’s income is subject to corporate level taxes and certain other state and local taxes are levied. The assumption in the Adjusted earnings presentation is that substantially all of the noncontrolling interest is eliminated through the exchange of Evercore LP units into Class A common stock of the ultimate parent. As a result, the Adjusted earnings presentation assumes that the allocation of earnings to Evercore LP’s noncontrolling interest holders is substantially eliminated and is therefore subject to statutory tax rates of a C-Corporation under a conventional tax structure in theU.S. and that certain state and local taxes are reduced accordingly. -
Presentation of Interest Expense. The Adjusted results present Adjusted Investment Banking & Equities 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. |
||||||||||||||||
|
||||||||||||||||
(dollars in thousands, except per share data) |
||||||||||||||||
(UNAUDITED) |
||||||||||||||||
|
|
|
|
|||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||
|
September 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
|||||||||
Net Revenues - |
$ |
734,222 |
|
|
$ |
570,220 |
|
|
$ |
2,004,261 |
|
|
$ |
1,641,782 |
|
|
Income from Equity Method Investments (1) |
|
1,072 |
|
|
|
1,664 |
|
|
|
5,254 |
|
|
|
4,674 |
|
|
Interest Expense on Debt (2) |
|
4,198 |
|
|
|
4,184 |
|
|
|
12,575 |
|
|
|
12,536 |
|
|
Release of Foreign Exchange Losses from Luminis Redemption (3) |
|
658 |
|
|
|
— |
|
|
|
658 |
|
|
|
— |
|
|
Gain on Sale of Interests in ABS (4) |
|
(615 |
) |
|
|
— |
|
|
|
(615 |
) |
|
|
— |
|
|
Net Revenues - Adjusted |
$ |
739,535 |
|
|
$ |
576,068 |
|
|
$ |
2,022,133 |
|
|
$ |
1,658,992 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Other Revenue, net - |
$ |
21,996 |
|
|
$ |
6,004 |
|
|
$ |
68,096 |
|
|
$ |
48,719 |
|
|
Interest Expense on Debt (2) |
|
4,198 |
|
|
|
4,184 |
|
|
|
12,575 |
|
|
|
12,536 |
|
|
Release of Foreign Exchange Losses from Luminis Redemption (3) |
|
658 |
|
|
|
— |
|
|
|
658 |
|
|
|
— |
|
|
Gain on Sale of Interests in ABS (4) |
|
(615 |
) |
|
|
— |
|
|
|
(615 |
) |
|
|
— |
|
|
Other Revenue, net - Adjusted |
$ |
26,237 |
|
|
$ |
10,188 |
|
|
$ |
80,714 |
|
|
$ |
61,255 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating Income - |
$ |
121,993 |
|
|
$ |
76,826 |
|
|
$ |
314,356 |
|
|
$ |
241,446 |
|
|
Income from Equity Method Investments (1) |
|
1,072 |
|
|
|
1,664 |
|
|
|
5,254 |
|
|
|
4,674 |
|
|
Pre-Tax Income - |
|
123,065 |
|
|
|
78,490 |
|
|
|
319,610 |
|
|
|
246,120 |
|
|
Release of Foreign Exchange Losses from Luminis Redemption (3) |
|
658 |
|
|
|
— |
|
|
|
658 |
|
|
|
— |
|
|
Gain on Sale of Interests in ABS (4) |
|
(615 |
) |
|
|
— |
|
|
|
(615 |
) |
|
|
— |
|
|
Special Charges, Including Business Realignment Costs (5) |
|
7,305 |
|
|
|
— |
|
|
|
7,305 |
|
|
|
2,921 |
|
|
Pre-Tax Income - Adjusted |
|
130,413 |
|
|
|
78,490 |
|
|
|
326,958 |
|
|
|
249,041 |
|
|
Interest Expense on Debt (2) |
|
4,198 |
|
|
|
4,184 |
|
|
|
12,575 |
|
|
|
12,536 |
|
|
Operating Income - Adjusted |
$ |
134,611 |
|
|
$ |
82,674 |
|
|
$ |
339,533 |
|
|
$ |
261,577 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Provision for Income Taxes - |
$ |
34,971 |
|
|
$ |
19,717 |
|
|
$ |
56,659 |
|
|
$ |
52,945 |
|
|
Income Taxes (6) |
|
2,771 |
|
|
|
1,915 |
|
|
|
2,702 |
|
|
|
3,115 |
|
|
Provision for Income Taxes - Adjusted |
$ |
37,742 |
|
|
$ |
21,632 |
|
|
$ |
59,361 |
|
|
$ |
56,060 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net Income Attributable to Evercore Inc. - |
$ |
78,393 |
|
|
$ |
52,148 |
|
|
$ |
237,844 |
|
|
$ |
172,731 |
|
|
Release of Foreign Exchange Losses from Luminis Redemption (3) |
|
658 |
|
|
|
— |
|
|
|
658 |
|
|
|
— |
|
|
Gain on Sale of Interests in ABS (4) |
|
(615 |
) |
|
|
— |
|
|
|
(615 |
) |
|
|
— |
|
|
Special Charges, Including Business Realignment Costs (5) |
|
7,305 |
|
|
|
— |
|
|
|
7,305 |
|
|
|
2,921 |
|
|
Income Taxes (6) |
|
(2,771 |
) |
|
|
(1,915 |
) |
|
|
(2,702 |
) |
|
|
(3,115 |
) |
|
Noncontrolling Interest (7) |
|
7,955 |
|
|
|
5,254 |
|
|
|
20,035 |
|
|
|
16,563 |
|
|
Net Income Attributable to Evercore Inc. - Adjusted |
$ |
90,925 |
|
|
$ |
55,487 |
|
|
$ |
262,525 |
|
|
$ |
189,100 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Diluted Shares Outstanding - |
|
42,038 |
|
|
|
40,000 |
|
|
|
41,325 |
|
|
|
39,907 |
|
|
LP Units (8) |
|
2,476 |
|
|
|
2,790 |
|
|
|
2,549 |
|
|
|
2,787 |
|
|
Unvested Restricted Stock Units - Event Based (8) |
|
12 |
|
|
|
12 |
|
|
|
12 |
|
|
|
12 |
|
|
Diluted Shares Outstanding - Adjusted |
|
44,526 |
|
|
|
42,802 |
|
|
|
43,886 |
|
|
|
42,706 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Key Metrics: (a) |
|
|
|
|
|
|
|
|||||||||
Diluted Earnings Per Share - |
$ |
1.86 |
|
|
$ |
1.30 |
|
|
$ |
5.76 |
|
|
$ |
4.33 |
|
|
Diluted Earnings Per Share - Adjusted |
$ |
2.04 |
|
|
$ |
1.30 |
|
|
$ |
5.98 |
|
|
$ |
4.43 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating Margin - |
|
16.6 |
% |
|
|
13.5 |
% |
|
|
15.7 |
% |
|
|
14.7 |
% |
|
Operating Margin - Adjusted |
|
18.2 |
% |
|
|
14.4 |
% |
|
|
16.8 |
% |
|
|
15.8 |
% |
|
|
|
|
|
|
|
|
|
|||||||||
Effective Tax Rate - |
|
28.4 |
% |
|
|
25.1 |
% |
|
|
17.7 |
% |
|
|
21.5 |
% |
|
Effective Tax Rate - Adjusted |
|
28.9 |
% |
|
|
27.6 |
% |
|
|
18.2 |
% |
|
|
22.5 |
% |
|
|
|
|
|
|
|
|
|
|||||||||
(a) Reconciliations of the key metrics from |
EVERCORE INC. |
||||||||||||||||||||||||
|
||||||||||||||||||||||||
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 |
||||||||||||||||||||||||
(dollars in thousands) |
||||||||||||||||||||||||
(UNAUDITED) |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Investment Banking & Equities Segment |
|||||||||||||||||||||||
|
Three Months Ended September 30, 2024 |
|
Nine Months Ended September 30, 2024 |
|||||||||||||||||||||
|
Basis |
|
Adjustments |
|
Non-GAAP Adjusted Basis |
|
Basis |
|
Adjustments |
|
Non-GAAP Adjusted Basis |
|||||||||||||
Net Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Investment Banking & Equities: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Advisory Fees |
$ |
592,980 |
|
|
$ |
207 |
|
(1) |
$ |
593,187 |
|
|
$ |
1,591,049 |
|
|
$ |
1,042 |
|
(1) |
$ |
1,592,091 |
|
|
Underwriting Fees |
|
44,132 |
|
|
|
— |
|
|
|
44,132 |
|
|
|
130,666 |
|
|
|
— |
|
|
|
130,666 |
|
|
Commissions and Related Revenue |
|
54,559 |
|
|
|
— |
|
|
|
54,559 |
|
|
|
155,996 |
|
|
|
— |
|
|
|
155,996 |
|
|
Other Revenue, net |
|
21,104 |
|
|
|
4,856 |
|
(2)(3) |
|
25,960 |
|
|
|
66,802 |
|
|
|
13,233 |
|
(2)(3) |
|
80,035 |
|
|
Net Revenues |
|
712,775 |
|
|
|
5,063 |
|
|
|
717,838 |
|
|
|
1,944,513 |
|
|
|
14,275 |
|
|
|
1,958,788 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Employee Compensation and Benefits |
|
475,990 |
|
|
|
— |
|
|
|
475,990 |
|
|
|
1,301,341 |
|
|
|
— |
|
|
|
1,301,341 |
|
|
Non-Compensation Costs |
|
113,093 |
|
|
|
— |
|
|
|
113,093 |
|
|
|
336,948 |
|
|
|
— |
|
|
|
336,948 |
|
|
Special Charges, Including Business Realignment Costs |
|
7,305 |
|
|
|
(7,305 |
) |
(5) |
|
— |
|
|
|
7,305 |
|
|
|
(7,305 |
) |
(5) |
|
— |
|
|
Total Expenses |
|
596,388 |
|
|
|
(7,305 |
) |
|
|
589,083 |
|
|
|
1,645,594 |
|
|
|
(7,305 |
) |
|
|
1,638,289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating Income (a) |
$ |
116,387 |
|
|
$ |
12,368 |
|
|
$ |
128,755 |
|
|
$ |
298,919 |
|
|
$ |
21,580 |
|
|
$ |
320,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Compensation |
|
66.8 |
% |
|
|
|
|
66.3 |
% |
|
|
66.9 |
% |
|
|
|
|
66.4 |
% |
|||||
Operating Margin (b) |
|
16.3 |
% |
|
|
|
|
17.9 |
% |
|
|
15.4 |
% |
|
|
|
|
16.4 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Investment Management Segment |
|||||||||||||||||||||||
|
Three Months Ended September 30, 2024 |
|
Nine Months Ended September 30, 2024 |
|||||||||||||||||||||
|
Basis |
|
Adjustments |
|
Non-GAAP Adjusted Basis |
|
Basis |
|
Adjustments |
|
Non-GAAP Adjusted Basis |
|||||||||||||
Net Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Asset Management and Administration Fees |
$ |
20,555 |
|
|
$ |
865 |
|
(1) |
$ |
21,420 |
|
|
$ |
58,454 |
|
|
$ |
4,212 |
|
(1) |
$ |
62,666 |
|
|
Other Revenue, net |
|
892 |
|
|
|
(615 |
) |
(4) |
|
277 |
|
|
|
1,294 |
|
|
|
(615 |
) |
(4) |
|
679 |
|
|
Net Revenues |
|
21,447 |
|
|
|
250 |
|
|
|
21,697 |
|
|
|
59,748 |
|
|
|
3,597 |
|
|
|
63,345 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Employee Compensation and Benefits |
|
12,020 |
|
|
|
— |
|
|
|
12,020 |
|
|
|
33,309 |
|
|
|
— |
|
|
|
33,309 |
|
|
Non-Compensation Costs |
|
3,821 |
|
|
|
— |
|
|
|
3,821 |
|
|
|
11,002 |
|
|
|
— |
|
|
|
11,002 |
|
|
Total Expenses |
|
15,841 |
|
|
|
— |
|
|
|
15,841 |
|
|
|
44,311 |
|
|
|
— |
|
|
|
44,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating Income (a) |
$ |
5,606 |
|
|
$ |
250 |
|
|
$ |
5,856 |
|
|
$ |
15,437 |
|
|
$ |
3,597 |
|
|
$ |
19,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Compensation |
|
56.0 |
% |
|
|
|
|
55.4 |
% |
|
|
55.7 |
% |
|
|
|
|
52.6 |
% |
|||||
Operating Margin (b) |
|
26.1 |
% |
|
|
|
|
27.0 |
% |
|
|
25.8 |
% |
|
|
|
|
30.0 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
(a) Operating Income for |
||||||||||||||||||||||||
(b) Reconciliations of the key metrics from |
EVERCORE INC. |
|||||||||||||||||||||||
|
|||||||||||||||||||||||
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 |
|||||||||||||||||||||||
(dollars in thousands) |
|||||||||||||||||||||||
(UNAUDITED) |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Investment Banking & Equities Segment |
||||||||||||||||||||||
|
Three Months Ended September 30, 2023 |
|
Nine Months Ended September 30, 2023 |
||||||||||||||||||||
|
Basis |
|
Adjustments |
|
Non-GAAP Adjusted Basis |
|
Basis |
|
Adjustments |
|
Non-GAAP Adjusted Basis |
||||||||||||
Net Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment Banking & Equities: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Advisory Fees |
$ |
467,401 |
|
|
$ |
180 |
(1) |
$ |
467,581 |
|
|
$ |
1,304,519 |
|
|
$ |
394 |
|
(1) |
$ |
1,304,913 |
|
|
Underwriting Fees |
|
30,814 |
|
|
|
— |
|
|
30,814 |
|
|
|
91,897 |
|
|
|
— |
|
|
|
91,897 |
|
|
Commissions and Related Revenue |
|
48,697 |
|
|
|
— |
|
|
48,697 |
|
|
|
146,810 |
|
|
|
— |
|
|
|
146,810 |
|
|
Other Revenue, net |
|
5,729 |
|
|
|
4,184 |
(2) |
|
9,913 |
|
|
|
46,472 |
|
|
|
12,536 |
|
(2) |
|
59,008 |
|
|
Net Revenues |
|
552,641 |
|
|
|
4,364 |
|
|
557,005 |
|
|
|
1,589,698 |
|
|
|
12,930 |
|
|
|
1,602,628 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Employee Compensation and Benefits |
|
381,117 |
|
|
|
— |
|
|
381,117 |
|
|
|
1,066,686 |
|
|
|
— |
|
|
|
1,066,686 |
|
|
Non-Compensation Costs |
|
98,312 |
|
|
|
— |
|
|
98,312 |
|
|
|
290,167 |
|
|
|
— |
|
|
|
290,167 |
|
|
Special Charges, Including Business Realignment Costs |
|
— |
|
|
|
— |
|
|
— |
|
|
|
2,921 |
|
|
|
(2,921 |
) |
(5) |
|
— |
|
|
Total Expenses |
|
479,429 |
|
|
|
— |
|
|
479,429 |
|
|
|
1,359,774 |
|
|
|
(2,921 |
) |
|
|
1,356,853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Income (a) |
$ |
73,212 |
|
|
$ |
4,364 |
|
$ |
77,576 |
|
|
$ |
229,924 |
|
|
$ |
15,851 |
|
|
$ |
245,775 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Compensation |
|
69.0 |
% |
|
|
|
|
68.4 |
% |
|
|
67.1 |
% |
|
|
|
|
66.6 |
% |
||||
Operating Margin (b) |
|
13.2 |
% |
|
|
|
|
13.9 |
% |
|
|
14.5 |
% |
|
|
|
|
15.3 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Investment Management Segment |
||||||||||||||||||||||
|
Three Months Ended September 30, 2023 |
|
Nine Months Ended September 30, 2023 |
||||||||||||||||||||
|
Basis |
|
Adjustments |
|
Non-GAAP Adjusted Basis |
|
Basis |
|
Adjustments |
|
Non-GAAP Adjusted Basis |
||||||||||||
Net Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset Management and Administration Fees |
$ |
17,304 |
|
|
$ |
1,484 |
(1) |
$ |
18,788 |
|
|
$ |
49,837 |
|
|
$ |
4,280 |
|
(1) |
$ |
54,117 |
|
|
Other Revenue, net |
|
275 |
|
|
|
— |
|
|
275 |
|
|
|
2,247 |
|
|
|
— |
|
|
|
2,247 |
|
|
Net Revenues |
|
17,579 |
|
|
|
1,484 |
|
|
19,063 |
|
|
|
52,084 |
|
|
|
4,280 |
|
|
|
56,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Employee Compensation and Benefits |
|
10,613 |
|
|
|
— |
|
|
10,613 |
|
|
|
30,290 |
|
|
|
— |
|
|
|
30,290 |
|
|
Non-Compensation Costs |
|
3,352 |
|
|
|
— |
|
|
3,352 |
|
|
|
10,272 |
|
|
|
— |
|
|
|
10,272 |
|
|
Total Expenses |
|
13,965 |
|
|
|
— |
|
|
13,965 |
|
|
|
40,562 |
|
|
|
— |
|
|
|
40,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Income (a) |
$ |
3,614 |
|
|
$ |
1,484 |
|
$ |
5,098 |
|
|
$ |
11,522 |
|
|
$ |
4,280 |
|
|
$ |
15,802 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Compensation |
|
60.4 |
% |
|
|
|
|
55.7 |
% |
|
|
58.2 |
% |
|
|
|
|
53.7 |
% |
||||
Operating Margin (b) |
|
20.6 |
% |
|
|
|
|
26.7 |
% |
|
|
22.1 |
% |
|
|
|
|
28.0 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(a) Operating Income for |
|||||||||||||||||||||||
(b) Reconciliations of the key metrics from |
EVERCORE INC. |
||||||||||||
|
||||||||||||
(dollars in thousands) |
||||||||||||
(UNAUDITED) |
||||||||||||
|
|
|
|
|
|
|
|
|||||
|
|
|||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||
Investment Banking & Equities |
|
|
|
|
|
|
|
|||||
Net Revenues: |
|
|
|
|
|
|
|
|||||
Investment Banking & Equities: |
|
|
|
|
|
|
|
|||||
Advisory Fees |
$ |
592,980 |
|
$ |
467,401 |
|
$ |
1,591,049 |
|
$ |
1,304,519 |
|
Underwriting Fees |
|
44,132 |
|
|
30,814 |
|
|
130,666 |
|
|
91,897 |
|
Commissions and Related Revenue |
|
54,559 |
|
|
48,697 |
|
|
155,996 |
|
|
146,810 |
|
Other Revenue, net |
|
21,104 |
|
|
5,729 |
|
|
66,802 |
|
|
46,472 |
|
Net Revenues |
|
712,775 |
|
|
552,641 |
|
|
1,944,513 |
|
|
1,589,698 |
|
|
|
|
|
|
|
|
|
|||||
Expenses: |
|
|
|
|
|
|
|
|||||
Employee Compensation and Benefits |
|
475,990 |
|
|
381,117 |
|
|
1,301,341 |
|
|
1,066,686 |
|
Non-Compensation Costs |
|
113,093 |
|
|
98,312 |
|
|
336,948 |
|
|
290,167 |
|
Special Charges, Including Business Realignment Costs |
|
7,305 |
|
|
— |
|
|
7,305 |
|
|
2,921 |
|
Total Expenses |
|
596,388 |
|
|
479,429 |
|
|
1,645,594 |
|
|
1,359,774 |
|
|
|
|
|
|
|
|
|
|||||
Operating Income (a) |
$ |
116,387 |
|
$ |
73,212 |
|
$ |
298,919 |
|
$ |
229,924 |
|
|
|
|
|
|
|
|
|
|||||
Investment Management |
|
|
|
|
|
|
|
|||||
Net Revenues: |
|
|
|
|
|
|
|
|||||
Asset Management and Administration Fees |
$ |
20,555 |
|
$ |
17,304 |
|
$ |
58,454 |
|
$ |
49,837 |
|
Other Revenue, net |
|
892 |
|
|
275 |
|
|
1,294 |
|
|
2,247 |
|
Net Revenues |
|
21,447 |
|
|
17,579 |
|
|
59,748 |
|
|
52,084 |
|
|
|
|
|
|
|
|
|
|||||
Expenses: |
|
|
|
|
|
|
|
|||||
Employee Compensation and Benefits |
|
12,020 |
|
|
10,613 |
|
|
33,309 |
|
|
30,290 |
|
Non-Compensation Costs |
|
3,821 |
|
|
3,352 |
|
|
11,002 |
|
|
10,272 |
|
Total Expenses |
|
15,841 |
|
|
13,965 |
|
|
44,311 |
|
|
40,562 |
|
|
|
|
|
|
|
|
|
|||||
Operating Income (a) |
$ |
5,606 |
|
$ |
3,614 |
|
$ |
15,437 |
|
$ |
11,522 |
|
|
|
|
|
|
|
|
|
|||||
Total |
|
|
|
|
|
|
|
|||||
Net Revenues: |
|
|
|
|
|
|
|
|||||
Investment Banking & Equities: |
|
|
|
|
|
|
|
|||||
Advisory Fees |
$ |
592,980 |
|
$ |
467,401 |
|
$ |
1,591,049 |
|
$ |
1,304,519 |
|
Underwriting Fees |
|
44,132 |
|
|
30,814 |
|
|
130,666 |
|
|
91,897 |
|
Commissions and Related Revenue |
|
54,559 |
|
|
48,697 |
|
|
155,996 |
|
|
146,810 |
|
Asset Management and Administration Fees |
|
20,555 |
|
|
17,304 |
|
|
58,454 |
|
|
49,837 |
|
Other Revenue, net |
|
21,996 |
|
|
6,004 |
|
|
68,096 |
|
|
48,719 |
|
Net Revenues |
|
734,222 |
|
|
570,220 |
|
|
2,004,261 |
|
|
1,641,782 |
|
|
|
|
|
|
|
|
|
|||||
Expenses: |
|
|
|
|
|
|
|
|||||
Employee Compensation and Benefits |
|
488,010 |
|
|
391,730 |
|
|
1,334,650 |
|
|
1,096,976 |
|
Non-Compensation Costs |
|
116,914 |
|
|
101,664 |
|
|
347,950 |
|
|
300,439 |
|
Special Charges, Including Business Realignment Costs |
|
7,305 |
|
|
— |
|
|
7,305 |
|
|
2,921 |
|
Total Expenses |
|
612,229 |
|
|
493,394 |
|
|
1,689,905 |
|
|
1,400,336 |
|
|
|
|
|
|
|
|
|
|||||
Operating Income (a) |
$ |
121,993 |
|
$ |
76,826 |
|
$ |
314,356 |
|
$ |
241,446 |
|
|
|
|
|
|
|
|
|
|||||
(a) Operating Income excludes Income (Loss) from Equity Method Investments. |
Notes to Unaudited Condensed Consolidated Adjusted Financial Data |
||
|
|
|
For further information on these adjustments, see page A-2. |
||
|
|
|
(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 |
|
(3) |
The release of cumulative foreign exchange losses in the third quarter of 2024 resulting from the redemption of the Company's interest in Luminis is excluded from the Adjusted presentation. |
|
(4) |
The gain on the sale of the remaining portion of the Company's interest in ABS in the third quarter of 2024 is excluded from the Adjusted presentation. |
|
(5) |
Expenses during 2024 that are excluded from the Adjusted presentation relate to the write-off of the remaining carrying value of the Company's investment in Luminis in connection with the redemption of the Company's interest. Expenses during 2023 that are excluded from the Adjusted presentation relate to the write-off of non-recoverable assets in connection with the wind-down of the Company's operations in |
|
(6) |
Evercore is organized as a series of Limited Liability Companies, Partnerships, C-Corporations and a Public Corporation in the |
|
(7) |
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. |
|
(8) |
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 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241022941067/en/
Investor Contact:
Katy Haber
Head of Investor Relations & ESG
InvestorRelations@Evercore.com
Media Contacts:
Jamie Easton
Head of Communications & External Affairs
Communications@Evercore.com
Shree Dhond / Zach Kouwe
Dukas Linden Public Relations
Evercore@DLPR.com
(646) 722-6531
Source: Evercore Inc.
FAQ
What were Evercore's (EVR) Q3 2024 revenue and earnings?
How much did Evercore's (EVR) advisory fees grow in Q3 2024?
What was Evercore's (EVR) Q3 2024 dividend?