STOCK TITAN

Evercore Reports Third Quarter 2024 Results; Quarterly Dividend of $0.80 Per Share

Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Very Positive)
Tags
dividends earnings

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.

Positive
  • 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
Negative
  • None.

Insights

Evercore delivered strong Q3 2024 results with significant growth across key metrics. Net revenues increased 29% to $734.2 million, driven by a 27% jump in advisory fees to $593 million and 43% growth in underwriting fees to $44.1 million.

The operational leverage is impressive, with operating income surging 59% to $122 million and operating margins expanding 314 basis points to 16.6%. The firm's strategic focus on large transactions is paying off, with notable deals in financial services and energy transition sectors.

Strong capital return continues with $528.8 million returned to shareholders through dividends and share repurchases YTD. The gradual market recovery and continued investments in talent position Evercore well for sustained growth.

NEW YORK--(BUSINESS WIRE)-- Evercore Inc. (NYSE: EVR):

 

Third Quarter Results

 

Year to Date Results

 

U.S. GAAP

 

Adjusted

 

U.S. GAAP

 

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 Ratio

 

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 $734.2 million and $2.0 billion, respectively, on a U.S. GAAP basis and $739.5 million and $2.0 billion, respectively, on an Adjusted basis. Third Quarter and Year-to-Date Net Revenues increased 29% and 22%, respectively, on a U.S. GAAP basis and 28% and 22%, respectively, on an Adjusted basis versus 2023

Third Quarter Operating Income of $122.0 million and $134.6 million on a U.S. GAAP and an Adjusted basis, respectively, increased 59% and 63%, respectively versus 2023; Third Quarter Operating Margins of 16.6% and 18.2% on a U.S. GAAP basis and an Adjusted basis, respectively, increased 314 and 385 basis points, respectively, versus 2023

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 $7.8 billion sale of its retail insurance broking division, McGriff Insurance Services, to Marsh McLennan

 

Avenue Capital Group and Nuveen Asset Management on their $3.4 billion sale of minority equity interest in Vistra Vision to Vistra Corp

 

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 $2.6 billion follow-on offering, and year-to-date, Evercore has participated as a bookrunner on 5 of the 8 Tech IPOs in the U.S.

Evercore Wealth Management was again named to the Barron’s annual ranking of the Top 100 Independent U.S. Registered Investment Advisors for 2024 as well as ranked among the leading Registered Investment Advisors for 2024 by Financial Advisor

 

 

 

 

 

 

 

 

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 Paris office

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 $0.80 per share

Returned $528.8 million to shareholders during the first nine months of 2024 through dividends and repurchases of 2.2 million shares at an average price of $189.69

 

 

 

 

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 U.S. GAAP consolidated results.

Non-GAAP Measures:

Throughout this release certain information is presented on an adjusted basis, which is a non-GAAP measure. Adjusted results begin with information prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), and then those results are adjusted to exclude certain items and reflect the conversion of certain Evercore LP Units into Class A shares. Evercore believes that the disclosed adjusted measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare Evercore's results across several periods and facilitate an understanding of Evercore's operating results. Evercore uses these measures to evaluate its operating performance, as well as the performance of individual employees. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP.

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 U.S. GAAP as a result of the inclusion of certain Evercore LP Units and Unvested Restricted Stock Units.

Further details of these adjustments, as well as an explanation of similar amounts for the three and nine months ended September 30, 2023 are included in pages A-2 to A-8.

Selected Financial Data – U.S. GAAP Results

The following is a discussion of Evercore's consolidated results on a U.S. GAAP basis. See pages A-5 to A-7 for our business segment results.

Net Revenues

 

U.S. GAAP

 

Three Months Ended

 

Nine Months Ended

 

September 30,

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 $1 million from Advisory and Underwriting Client Transactions(1)

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 $125.6 million, or 27%, year-over-year, and year-to-date Advisory Fees increased $286.5 million, or 22%, year-over-year, reflecting an increase in revenue earned from large transactions and an increase in the number of advisory fees earned during 2024.

Underwriting Fees Third quarter Underwriting Fees increased $13.3 million, or 43%, year-over-year, and year-to-date Underwriting Fees increased $38.8 million, or 42%, year-over-year, reflecting an increase in the number of transactions we participated in during 2024.

Commissions and Related Revenue Third quarter Commissions and Related Revenue increased $5.9 million, or 12%, year-over-year, and year-to-date Commissions and Related Revenue increased $9.2 million, or 6%, year-over-year, primarily reflecting higher trading commissions and subscription fees.

Asset Management and Administration Fees Third quarter Asset Management and Administration Fees increased $3.3 million, or 19%, year-over-year, and year-to-date Asset Management and Administration Fees increased $8.6 million, or 17%, year-over-year, driven by an increase in fees from Wealth Management clients, as associated AUM increased 23%, primarily from market appreciation.

Other Revenue Third quarter Other Revenue, net, increased $16.0 million, or 266%, year-over-year, and year-to-date Other Revenue, net, increased $19.4 million, or 40%, year-over-year, primarily reflecting higher performance of our investment funds portfolio, as well as higher interest income. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Expenses

 

U.S. GAAP

 

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 Ratio

 

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 $96.3 million, or 25%, year-over-year, reflecting a compensation ratio of 66.5% for the third quarter of 2024 versus 68.7% for the prior year period. The increase in Employee Compensation and Benefits compared to the prior year period principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation awards. The Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period. Year-to-date Employee Compensation and Benefits increased $237.7 million, or 22%, year-over-year, reflecting a year-to-date compensation ratio of 66.6% versus 66.8% for the prior year period. The increase in Employee Compensation and Benefits compared to the prior year period principally reflects a higher accrual for incentive compensation, higher base salaries and higher compensation expense related to senior new hires. The Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period. See "Deferred Compensation" for more information.

Non-Compensation Costs Third quarter Non-Compensation Costs increased $15.3 million, or 15%, year-over-year, primarily driven by an increase in travel and related expenses, largely due to higher levels of business activity and increased headcount, as well as an increase in professional fees and communications and information services, principally reflecting higher expenses associated with license fees and research services. The third quarter Non-Compensation ratio of 15.9% decreased from 17.8% for the prior year period. The Non-Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period. Year-to-date Non-Compensation Costs increased $47.5 million, or 16%, year-over-year, primarily driven by an increase in professional fees and travel and related expenses, largely due to higher levels of business activity and increased headcount, as well as an increase in communications and information services, principally reflecting higher expenses associated with license fees and research services in 2024. The year-to-date Non-Compensation ratio of 17.4% decreased from 18.3% for the prior year period. The Non-Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period.

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 Mexico.

Effective Tax Rate

The third quarter effective tax rate was 28.4% versus 25.1% for the prior year period. The year-to-date effective tax rate was 17.7% versus 21.5% for the prior year period. The effective tax rate is principally impacted by an increase in non-deductible expenses, state and local apportionment adjustments and the deduction associated with the appreciation in the Firm's share price upon vesting of employee share-based awards above the original grant price. The year-to-date provision for income taxes for 2024 reflects an additional tax benefit of $32.0 million versus $14.1 million for the prior year period, due to the net impact associated with the appreciation in our share price upon vesting of employee share-based awards above the original grant price.

Selected Financial Data – Adjusted Results

The following is a discussion of Evercore's consolidated results on an Adjusted basis. See pages 3 and A-2 to A-8 for further information and reconciliations of these metrics to our U.S. GAAP results. See pages A-5 to A-7 for our business segment results.

Adjusted Net Revenues

 

Adjusted

 

Three Months Ended

 

Nine Months Ended

 

September 30,

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

%

 

 

 

 

 

 

 

 

 

 

 

 

  1. Advisory Fees on an Adjusted basis reflect the reclassification of earnings related to our equity method investments in Luminis and Seneca Evercore of $0.2 million and $1.0 million for the three and nine months ended September 30, 2024, respectively, and $0.2 million and $0.4 million for the three and nine months ended September 30, 2023, respectively.
  2. Asset Management and Administration Fees on an Adjusted basis reflect the reclassification of earnings related to our equity method investments in Atalanta Sosnoff and ABS (through July 2024) of $0.9 million and $4.2 million for the three and nine months ended September 30, 2024, respectively, and $1.5 million and $4.3 million for the three and nine months ended September 30, 2023, respectively.

See page 4 for additional business metrics.

Advisory Fees Third quarter adjusted Advisory Fees increased $125.6 million, or 27%, year-over-year, and year-to-date adjusted Advisory Fees increased $287.2 million, or 22%, year-over-year, reflecting an increase in revenue earned from large transactions and an increase the number of advisory fees earned during 2024.

Underwriting Fees Third quarter Underwriting Fees increased $13.3 million, or 43%, year-over-year, and year-to-date Underwriting Fees increased $38.8 million, or 42%, year-over-year, reflecting an increase in the number of transactions we participated in during 2024.

Commissions and Related Revenue Third quarter Commissions and Related Revenue increased $5.9 million, or 12%, year-over-year, and year-to-date Commissions and Related Revenue increased $9.2 million, or 6%, year-over-year, primarily reflecting higher trading commissions and subscription fees.

Asset Management and Administration Fees Third quarter adjusted Asset Management and Administration Fees increased $2.6 million, or 14%, year-over-year, driven by an increase in fees from Wealth Management clients, as associated AUM increased 23%, primarily from market appreciation. The increase was partially offset by a 42% decrease in equity in earnings of affiliates, reflecting the sale of the remaining portion of our interest in ABS during the third quarter of 2024. Year-to-date adjusted Asset Management and Administration Fees increased $8.5 million, or 16%, year-over-year, driven by an increase in fees from Wealth Management clients, as associated AUM increased 23%, primarily from market appreciation. The increase was partially offset by a 2% decrease in equity in earnings of affiliates.

Other Revenue Third quarter adjusted Other Revenue, net, increased $16.0 million, or 158%, year-over-year, and year-to-date adjusted Other Revenue, net, increased $19.5 million, or 32%, year-over-year, primarily reflecting higher performance of our investment funds portfolio, as well as higher interest income. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

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 Ratio

 

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 $96.3 million, or 25%, year-over-year, reflecting an adjusted compensation ratio of 66.0% for the third quarter of 2024 versus 68.0% for the prior year period. The increase in adjusted Employee Compensation and Benefits compared to the prior year period principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation awards. The adjusted Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period. Year-to-date adjusted Employee Compensation and Benefits increased $237.7 million, or 22%, year-over-year, reflecting a year-to-date adjusted compensation ratio of 66.0% versus 66.1% for the prior year period. The increase in adjusted Employee Compensation and Benefits compared to the prior year period principally reflects a higher accrual for incentive compensation, higher base salaries and higher compensation expense related to senior new hires. The adjusted Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period. See "Deferred Compensation" for more information.

Non-Compensation Costs Third quarter adjusted Non-Compensation Costs increased $15.3 million, or 15%, year-over-year, primarily driven by an increase in travel and related expenses, largely due to higher levels of business activity and increased headcount, as well as an increase in professional fees and communications and information services, principally reflecting higher expenses associated with license fees and research services. The third quarter adjusted Non-Compensation ratio of 15.8% decreased from 17.6% for the prior year period. The adjusted Non-Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period. Year-to-date adjusted Non-Compensation Costs increased $47.5 million, or 16%, year-over-year, primarily driven by an increase in professional fees and travel and related expenses, largely due to higher levels of business activity and increased headcount, as well as an increase in communications and information services, principally reflecting higher expenses associated with license fees and research services in 2024. The year-to-date adjusted Non-Compensation ratio of 17.2% decreased from 18.1% for the prior year period. The adjusted Non-Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period.

Adjusted Effective Tax Rate

The third quarter adjusted effective tax rate was 28.9% versus 27.6% for the prior year period. The year-to-date adjusted effective tax rate was 18.2% versus 22.5% for the prior year period. The adjusted effective tax rate is principally impacted by an increase in non-deductible expenses, state and local apportionment adjustments and the deduction associated with the appreciation in the Firm's share price upon vesting of employee share-based awards above the original grant price. The year-to-date adjusted provision for income taxes for 2024 reflects an additional tax benefit of $34.3 million versus $15.0 million for the prior year period, due to the net impact associated with the appreciation in our share price upon vesting of employee share-based awards above the original grant price.

Liquidity

The Company continues to maintain a strong balance sheet. As of September 30, 2024, cash and cash equivalents were $533.1 million, investment securities and certificates of deposit were $1.3 billion and current assets exceeded current liabilities by $1.6 billion. Amounts due related to the Notes Payable were $375.9 million at September 30, 2024.

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 $323.0 million.

In addition, year-to-date, the Company granted $143.2 million of deferred cash awards to certain employees, related to our deferred cash compensation program, principally pursuant to 2023 bonus awards.

The Company recognized compensation expense related to RSUs and our deferred cash compensation program of $115.9 million and $362.3 million for the three and nine months ended September 30, 2024, respectively, and $104.8 million and $335.5 million for the three and nine months ended September 30, 2023, respectively.

As of September 30, 2024, the Company had 5.1 million unvested RSUs with an aggregate grant date fair value of $753.9 million. RSUs are expensed over the service period of the award, subject to retirement eligibility, and generally vest over four years.

As of September 30, 2024, the Company expects to pay an aggregate of $393.3 million related to our deferred cash compensation program at various dates through 2028, subject to certain vesting events. Amounts due pursuant to this program are expensed over the service period of the award, subject to retirement eligibility, and are reflected in Accrued Compensation and Benefits, a component of current liabilities.

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 $0.80 per share to be paid on December 13, 2024 to common stockholders of record on November 29, 2024.

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 $222.92, and 0.4 million shares at an average price per share of $236.91 in open market transactions pursuant to the Company's share repurchase program. The aggregate 0.4 million shares were acquired at an average price per share of $235.96. Year-to-date, the Company repurchased 1.0 million shares from employees for the net settlement of stock-based compensation awards at an average price per share of $178.02, and 1.2 million shares at an average price per share of $199.11 in open market transactions pursuant to the Company's share repurchase program. The aggregate 2.2 million shares were acquired at an average price per share of $189.69.

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 New York and maintains offices and affiliate offices in major financial centers in the Americas, Europe, the Middle East and Asia. For more information, please visit www.evercore.com.

Basis of Alternative Financial Statement Presentation

Our Adjusted results are a non-GAAP measure. As discussed further under "Non-GAAP Measures", Evercore believes that the disclosed Adjusted measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare Evercore's results across several periods and better reflects how management views its operating results. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. A reconciliation of our U.S. GAAP results to Adjusted results is presented in the tables included in the following pages.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which reflect our current views with respect to, among other things, Evercore's operations and financial performance. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "backlog," "believes," "expects," "potential," "probable," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. All statements, other than statements of historical fact, included in this release are forward-looking statements and are based on various underlying assumptions and expectations and are subject to known and unknown risks, uncertainties and assumptions, and may include projections of our future financial performance based on our growth strategies and anticipated trends in Evercore's business. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Evercore believes these factors include, but are not limited to, those described under "Risk Factors" discussed in Evercore's Annual Report on Form 10-K for the year ended December 31, 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 the United States of America ("U.S. GAAP"), adjusted to exclude certain items and reflect the conversion of certain Evercore LP Units and Unvested Restricted Stock Units into Class A shares. Evercore believes that the disclosed Adjusted measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare Evercore's results across several periods and facilitate an understanding of Evercore's operating results. The Company uses these measures to evaluate its operating performance, as well as the performance of individual employees. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. These Adjusted amounts are allocated to the Company's two business segments: Investment Banking & Equities and Investment Management. The differences between the Adjusted and U.S. GAAP results are as follows:

  1. 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.
  2. 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:
    1. 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.
    2. 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.
  3. 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.
  4. Income Taxes. Evercore is organized as a series of Limited Liability Companies, Partnerships, C-Corporations and a Public Corporation in the U.S. as the ultimate parent. Certain of the subsidiaries, particularly Evercore LP, have noncontrolling interests held by management or former members of management. As a result, not all of the Company’s income is subject to corporate level taxes and certain other state and local taxes are levied. The assumption in the Adjusted earnings presentation is that substantially all of the noncontrolling interest is eliminated through the exchange of Evercore LP units into Class A common stock of the ultimate parent. As a result, the Adjusted earnings presentation assumes that the allocation of earnings to Evercore LP’s noncontrolling interest holders is substantially eliminated and is therefore subject to statutory tax rates of a C-Corporation under a conventional tax structure in the U.S. and that certain state and local taxes are reduced accordingly.
  5. 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.
  6. Presentation of Income from Equity Method Investments. The Adjusted results present Income from Equity Method Investments within Revenue as the Company's Management believes it is a useful presentation.

EVERCORE INC.

U.S. GAAP RECONCILIATION TO ADJUSTED RESULTS

(dollars in thousands, except per share data)

(UNAUDITED)

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

2024

 

September 30,

2023

 

September 30,

2024

 

September 30,

2023

Net Revenues - U.S. GAAP

$

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 - U.S. GAAP

$

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 - U.S. GAAP

$

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 - U.S. GAAP

 

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 - U.S. GAAP

$

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. - U.S. GAAP

$

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 - U.S. GAAP

 

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 - U.S. GAAP

$

1.86

 

 

$

1.30

 

 

$

5.76

 

 

$

4.33

 

Diluted Earnings Per Share - Adjusted

$

2.04

 

 

$

1.30

 

 

$

5.98

 

 

$

4.43

 

 

 

 

 

 

 

 

 

Operating Margin - U.S. GAAP

 

16.6

%

 

 

13.5

%

 

 

15.7

%

 

 

14.7

%

Operating Margin - Adjusted

 

18.2

%

 

 

14.4

%

 

 

16.8

%

 

 

15.8

%

 

 

 

 

 

 

 

 

Effective Tax Rate - U.S. GAAP

 

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 U.S. GAAP to Adjusted results are a derivative of the reconciliations of their components above.

EVERCORE INC.

U.S. GAAP SEGMENT RECONCILIATION TO ADJUSTED RESULTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024

(dollars in thousands)

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Banking & Equities Segment

 

Three Months Ended September 30, 2024

 

Nine Months Ended September 30, 2024

 

U.S. GAAP

Basis

 

Adjustments

 

Non-GAAP

Adjusted Basis

 

U.S. GAAP

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 Ratio (b)

 

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

 

U.S. GAAP

Basis

 

Adjustments

 

Non-GAAP

Adjusted Basis

 

U.S. GAAP

Basis

 

Adjustments

 

Non-GAAP

Adjusted Basis

Net Revenues:

 

 

 

 

 

 

 

 

 

 

 

Asset Management and Administration Fees

$

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 Ratio (b)

 

56.0

%

 

 

 

 

55.4

%

 

 

55.7

%

 

 

 

 

52.6

%

Operating Margin (b)

 

26.1

%

 

 

 

 

27.0

%

 

 

25.8

%

 

 

 

 

30.0

%

 

 

 

 

 

 

 

 

 

 

 

 

(a) Operating Income for U.S. GAAP excludes Income (Loss) from Equity Method Investments.

(b) Reconciliations of the key metrics from U.S. GAAP to Adjusted results are a derivative of the reconciliations of their components above.

EVERCORE INC.

U.S. GAAP SEGMENT RECONCILIATION TO ADJUSTED RESULTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023

(dollars in thousands)

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Banking & Equities Segment

 

Three Months Ended September 30, 2023

 

Nine Months Ended September 30, 2023

 

U.S. GAAP

Basis

 

Adjustments

 

Non-GAAP

Adjusted Basis

 

U.S. GAAP

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 Ratio (b)

 

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

 

U.S. GAAP

Basis

 

Adjustments

 

Non-GAAP

Adjusted Basis

 

U.S. GAAP

Basis

 

Adjustments

 

Non-GAAP

Adjusted Basis

Net Revenues:

 

 

 

 

 

 

 

 

 

 

 

Asset Management and Administration Fees

$

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 Ratio (b)

 

60.4

%

 

 

 

 

55.7

%

 

 

58.2

%

 

 

 

 

53.7

%

Operating Margin (b)

 

20.6

%

 

 

 

 

26.7

%

 

 

22.1

%

 

 

 

 

28.0

%

 

 

 

 

 

 

 

 

 

 

 

 

(a) Operating Income for U.S. GAAP excludes Income (Loss) from Equity Method Investments.

(b) Reconciliations of the key metrics from U.S. GAAP to Adjusted results are a derivative of the reconciliations of their components above.

EVERCORE INC.

U.S. GAAP SEGMENT AND CONSOLIDATED RESULTS

(dollars in thousands)

(UNAUDITED)

 

 

 

 

 

 

 

 

 

U.S. GAAP

 

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 U.S. GAAP basis.

(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 Mexico.

(6)

Evercore is organized as a series of Limited Liability Companies, Partnerships, C-Corporations and a Public Corporation in the U.S. as the ultimate parent. Certain of the subsidiaries, particularly Evercore LP, have noncontrolling interests held by management or former members of management. As a result, not all of the Company’s income is subject to corporate level taxes and certain other state and local taxes are levied. The assumption in the Adjusted earnings presentation is that substantially all of the noncontrolling interest is eliminated through the exchange of Evercore LP units into Class A common stock of the ultimate parent. As a result, the Adjusted earnings presentation assumes that the allocation of earnings to Evercore LP’s noncontrolling interest holders is substantially eliminated and is therefore subject to statutory tax rates of a C-Corporation under a conventional tax structure in the U.S. and that certain state and local taxes are reduced accordingly.

(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 U.S. GAAP net income per share, the Evercore LP Units are anti-dilutive.

 

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?

Evercore reported Q3 2024 net revenues of $734.2 million and earnings per share of $1.86 on a U.S. GAAP basis.

How much did Evercore's (EVR) advisory fees grow in Q3 2024?

Evercore's advisory fees increased 27% year-over-year to $593 million in Q3 2024.

What was Evercore's (EVR) Q3 2024 dividend?

Evercore declared a quarterly dividend of $0.80 per share for Q3 2024.

How much capital did Evercore (EVR) return to shareholders in 2024?

Evercore returned $528.8 million to shareholders through dividends and share repurchases in the first nine months of 2024.

Evercore Inc.

NYSE:EVR

EVR Rankings

EVR Latest News

EVR Stock Data

9.92B
38.34M
7.43%
90.09%
2.42%
Capital Markets
Investment Advice
Link
United States of America
NEW YORK