(Exact name of registrant as specified in its charter) |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
NOT APPLICABLE |
(Former name or former address, if changed since last report) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol | Name of each exchange on which registered |
Item 2.02 | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and Exhibits |
EVERCORE INC. | ||||||
Date: October 23, 2019 | /s/ Robert B. Walsh | |||||
By: | Robert B. Walsh | |||||
Title: | Chief Financial Officer |
Third Quarter 2019 Results | 2019 Year to Date Results | ||||||||||||||||||
U.S. GAAP | Adjusted | U.S. GAAP | Adjusted | ||||||||||||||||
vs. Q3 2018 | vs. Q3 2018 | vs. YTD 2018 | vs. YTD 2018 | ||||||||||||||||
Net Revenues ($ millions) | $ | 402.2 | 5% | $ | 408.5 | 6% | $ | 1,348.6 | 4% | $ | 1,364.2 | 4% | |||||||
Operating Income ($ millions) | $ | 70.3 | (6%) | $ | 84.8 | (3%) | $ | 281.0 | (4%) | $ | 319.0 | (3%) | |||||||
Net Income Attributable to Evercore Inc. ($ millions) | $ | 43.3 | (13%) | $ | 60.5 | (4%) | $ | 192.3 | (10%) | $ | 243.2 | (6%) | |||||||
Diluted Earnings Per Share | $ | 1.01 | (6%) | $ | 1.26 | 2% | $ | 4.43 | (6%) | $ | 4.99 | (3%) | |||||||
Operating Margin | 17.5 | % | (206) bps | 20.8 | % | (180) bps | 20.8 | % | (173) bps | 23.4 | % | (167) bps |
Business and Financial Highlights | g | Record first nine months Net Revenues on both a U.S. GAAP and an Adjusted basis | |
g | Advisory Revenues increased 5% for the third quarter and 4% for the first nine months on both a U.S. GAAP and an Adjusted basis versus the prior year | ||
g | Advised on four of the five largest transactions to date in 2019 | ||
g | Evercore ISI ranked as the top independent research firm (#2 on a weighted basis and #4 overall among all firms) in the Institutional Investor All-America Equity Research team rankings for the sixth consecutive year | ||
g | Announced opening of Israel office | ||
Talent | g | Four Advisory Senior Managing Directors joined Evercore in the third quarter, expanding our coverage of Financial Sponsors and the Retail sector and strengthening our global presence in Canada and Israel. Seven Advisory Senior Managing Directors have joined during 2019, increasing the Advisory SMD team to 111 | |
g | Evercore ISI added a Senior Managing Director focused on U.S. Public Policy and Political Strategy Research | ||
Capital Structure | g | Completed private placement offering of approximately $206 million aggregate principal amount of unsecured Senior Notes, the proceeds of which will be used to fund investments in our business, including facilities and technology, and for other general corporate purposes | |
Capital Return | g | Quarterly dividend of $0.58 per share | |
g | $336.5 million returned to shareholders for the first nine months through dividends and repurchases of 3.0 million shares at an average price of $84.22 | ||
U.S. GAAP | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, 2019 | September 30, 2018 | % Change | September 30, 2019 | September 30, 2018 | % Change | ||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||||
Net Revenues | $ | 402,198 | $ | 381,259 | 5 | % | $ | 1,348,571 | $ | 1,293,299 | 4 | % | |||||||||
Operating Income(1) | $ | 70,344 | $ | 74,540 | (6 | %) | $ | 280,988 | $ | 291,871 | (4 | %) | |||||||||
Net Income Attributable to Evercore Inc. | $ | 43,278 | $ | 49,461 | (13 | %) | $ | 192,252 | $ | 213,935 | (10 | %) | |||||||||
Diluted Earnings Per Share | $ | 1.01 | $ | 1.08 | (6 | %) | $ | 4.43 | $ | 4.70 | (6 | %) | |||||||||
Compensation Ratio | 60.1 | % | 59.1 | % | 59.6 | % | 59.3 | % | |||||||||||||
Operating Margin | 17.5 | % | 19.6 | % | 20.8 | % | 22.6 | % | |||||||||||||
Effective Tax Rate | 28.0 | % | 22.8 | % | 20.9 | % | 16.1 | % | |||||||||||||
Trailing Twelve Month Compensation Ratio | 58.2 | % | 56.7 | % | |||||||||||||||||
(1) Operating Income for the three and nine months ended September 30, 2019 includes Special Charges of $1.0 million and $3.1 million, respectively, recognized in the Investment Banking segment. Operating Income for the three and nine months ended September 30, 2018 includes Special Charges of $2.0 million and $3.9 million, respectively, recognized in the Investment Banking segment. |
Adjusted | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, 2019 | September 30, 2018 | % Change | September 30, 2019 | September 30, 2018 | % Change | ||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||||
Net Revenues | $ | 408,546 | $ | 385,857 | 6 | % | $ | 1,364,151 | $ | 1,307,002 | 4 | % | |||||||||
Operating Income | $ | 84,809 | $ | 87,026 | (3 | %) | $ | 318,960 | $ | 327,400 | (3 | %) | |||||||||
Net Income Attributable to Evercore Inc. | $ | 60,473 | $ | 62,768 | (4 | %) | $ | 243,169 | $ | 259,749 | (6 | %) | |||||||||
Diluted Earnings Per Share | $ | 1.26 | $ | 1.23 | 2 | % | $ | 4.99 | $ | 5.13 | (3 | %) | |||||||||
Compensation Ratio | 58.0 | % | 57.5 | % | 58.0 | % | 57.8 | % | |||||||||||||
Operating Margin | 20.8 | % | 22.6 | % | 23.4 | % | 25.0 | % | |||||||||||||
Effective Tax Rate | 24.9 | % | 24.2 | % | 20.9 | % | 17.6 | % | |||||||||||||
Trailing Twelve Month Compensation Ratio | 56.9 | % | 57.3 | % | |||||||||||||||||
U.S. GAAP | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, 2019 | September 30, 2018 | % Change | September 30, 2019 | September 30, 2018 | % Change | ||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Net Revenues: | |||||||||||||||||||||
Investment Banking: | |||||||||||||||||||||
Advisory Fees | $ | 320,885 | $ | 305,949 | 5 | % | $ | 1,090,309 | $ | 1,047,259 | 4 | % | |||||||||
Underwriting Fees | 17,598 | 11,440 | 54 | % | 61,428 | 62,784 | (2 | %) | |||||||||||||
Commissions and Related Fees | 46,820 | 45,337 | 3 | % | 137,417 | 139,447 | (1 | %) | |||||||||||||
Other Revenue, net | 2,709 | 4,108 | (34 | %) | 16,432 | 3,219 | 410 | % | |||||||||||||
Net Revenues | 388,012 | 366,834 | 6 | % | 1,305,586 | 1,252,709 | 4 | % | |||||||||||||
Expenses: | |||||||||||||||||||||
Employee Compensation and Benefits | 233,078 | 217,471 | 7 | % | 778,078 | 743,152 | 5 | % | |||||||||||||
Non-compensation Costs | 85,507 | 76,259 | 12 | % | 249,904 | 221,418 | 13 | % | |||||||||||||
Special Charges | 1,029 | 1,967 | (48 | %) | 3,087 | 3,864 | (20 | %) | |||||||||||||
Total Expenses | 319,614 | 295,697 | 8 | % | 1,031,069 | 968,434 | 6 | % | |||||||||||||
Operating Income | $ | 68,398 | $ | 71,137 | (4 | %) | $ | 274,517 | $ | 284,275 | (3 | %) | |||||||||
Compensation Ratio | 60.1 | % | 59.3 | % | 59.6 | % | 59.3 | % | |||||||||||||
Non-compensation Ratio | 22.0 | % | 20.8 | % | 19.1 | % | 17.7 | % | |||||||||||||
Operating Margin | 17.6 | % | 19.4 | % | 21.0 | % | 22.7 | % | |||||||||||||
Total Number of Fees from Advisory Client Transactions(1) | 213 | 196 | 9 | % | 489 | 458 | 7 | % | |||||||||||||
Investment Banking Fees of at Least $1 million from Advisory Client Transactions(1) | 74 | 62 | 19 | % | 223 | 210 | 6 | % | |||||||||||||
(1) Includes Advisory and Underwriting Transactions. | |||||||||||||||||||||
U.S. GAAP | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, 2019 | September 30, 2018 | % Change | September 30, 2019 | September 30, 2018 | % Change | ||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Net Revenues: | |||||||||||||||||||||
Asset Management and Administration Fees | $ | 12,650 | $ | 12,678 | — | % | $ | 37,452 | $ | 36,603 | 2 | % | |||||||||
Other Revenue, net | 1,536 | 1,747 | (12 | %) | 5,533 | 3,987 | 39 | % | |||||||||||||
Net Revenues | 14,186 | 14,425 | (2 | %) | 42,985 | 40,590 | 6 | % | |||||||||||||
Expenses: | |||||||||||||||||||||
Employee Compensation and Benefits | 8,624 | 7,981 | 8 | % | 25,579 | 23,385 | 9 | % | |||||||||||||
Non-compensation costs | 3,616 | 3,041 | 19 | % | 10,935 | 9,609 | 14 | % | |||||||||||||
Total Expenses | 12,240 | 11,022 | 11 | % | 36,514 | 32,994 | 11 | % | |||||||||||||
Operating Income | $ | 1,946 | $ | 3,403 | (43 | %) | $ | 6,471 | $ | 7,596 | (15 | %) | |||||||||
Compensation Ratio | 60.8 | % | 55.3 | % | 59.5 | % | 57.6 | % | |||||||||||||
Non-compensation Ratio | 25.5 | % | 21.1 | % | 25.4 | % | 23.7 | % | |||||||||||||
Operating Margin | 13.7 | % | 23.6 | % | 15.1 | % | 18.7 | % | |||||||||||||
Assets Under Management (in millions)(1)(2) | $ | 10,256 | $ | 9,896 | 4 | % | $ | 10,256 | $ | 9,896 | 4 | % | |||||||||
(1) Assets Under Management reflect end of period amounts from our consolidated subsidiaries. | |||||||||||||||||||||
(2) Assets Under Management includes Evercore assets which are managed by Evercore Wealth Management of $318.5 million and $171.2 million as of September 30, 2019 and 2018, respectively. |
U.S. GAAP | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, 2019 | September 30, 2018 | % Change | September 30, 2019 | September 30, 2018 | % Change | ||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Asset Management and Administration Fees: | |||||||||||||||||||||
Wealth Management | $ | 12,155 | $ | 11,560 | 5 | % | $ | 35,408 | $ | 33,826 | 5 | % | |||||||||
Institutional Asset Management | 495 | 1,118 | (56 | %) | 2,044 | 2,777 | (26 | %) | |||||||||||||
Total Asset Management and Administration Fees | $ | 12,650 | $ | 12,678 | — | % | $ | 37,452 | $ | 36,603 | 2 | % | |||||||||
Adjusted | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, 2019 | September 30, 2018 | % Change | September 30, 2019 | September 30, 2018 | % Change | ||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Net Revenues: | |||||||||||||||||||||
Investment Banking: | |||||||||||||||||||||
Advisory Fees(1) | $ | 321,167 | $ | 305,949 | 5 | % | $ | 1,091,065 | $ | 1,047,556 | 4 | % | |||||||||
Underwriting Fees | 17,598 | 11,440 | 54 | % | 61,428 | 62,784 | (2 | %) | |||||||||||||
Commissions and Related Fees | 46,820 | 45,337 | 3 | % | 137,417 | 139,447 | (1 | %) | |||||||||||||
Other Revenue, net | 6,495 | 6,408 | 1 | % | 24,786 | 10,080 | 146 | % | |||||||||||||
Net Revenues | 392,080 | 369,134 | 6 | % | 1,314,696 | 1,259,867 | 4 | % | |||||||||||||
Expenses: | |||||||||||||||||||||
Employee Compensation and Benefits | 228,527 | 213,707 | 7 | % | 765,732 | 731,682 | 5 | % | |||||||||||||
Non-compensation Costs | 83,170 | 74,102 | 12 | % | 243,253 | 214,947 | 13 | % | |||||||||||||
Total Expenses | 311,697 | 287,809 | 8 | % | 1,008,985 | 946,629 | 7 | % | |||||||||||||
Operating Income | $ | 80,383 | $ | 81,325 | (1 | %) | $ | 305,711 | $ | 313,238 | (2 | %) | |||||||||
Compensation Ratio | 58.3 | % | 57.9 | % | 58.2 | % | 58.1 | % | |||||||||||||
Non-compensation Ratio | 21.2 | % | 20.1 | % | 18.5 | % | 17.1 | % | |||||||||||||
Operating Margin | 20.5 | % | 22.0 | % | 23.3 | % | 24.9 | % | |||||||||||||
Total Number of Fees from Advisory Client Transactions(2) | 213 | 196 | 9 | % | 489 | 458 | 7 | % | |||||||||||||
Investment Banking Fees of at Least $1 million from Advisory Client Transactions(2) | 74 | 62 | 19 | % | 223 | 210 | 6 | % | |||||||||||||
(1) Advisory Fees on an Adjusted basis reflect the reclassification of earnings related to our equity investment in Luminis of $282 and $756 for the three and nine months ended September 30, 2019, respectively, and $297 for the nine months ended September 30, 2018. | |||||||||||||||||||||
(2) Includes Advisory and Underwriting Transactions. |
Adjusted | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, 2019 | September 30, 2018 | % Change | September 30, 2019 | September 30, 2018 | % Change | ||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Net Revenues: | |||||||||||||||||||||
Asset Management and Administration Fees | $ | 14,930 | $ | 14,976 | — | % | $ | 43,922 | $ | 43,148 | 2 | % | |||||||||
Other Revenue, net | 1,536 | 1,747 | (12 | %) | 5,533 | 3,987 | 39 | % | |||||||||||||
Net Revenues | 16,466 | 16,723 | (2 | %) | 49,455 | 47,135 | 5 | % | |||||||||||||
Expenses: | |||||||||||||||||||||
Employee Compensation and Benefits | 8,624 | 7,981 | 8 | % | 25,579 | 23,385 | 9 | % | |||||||||||||
Non-compensation Costs | 3,416 | 3,041 | 12 | % | 10,627 | 9,588 | 11 | % | |||||||||||||
Total Expenses | 12,040 | 11,022 | 9 | % | 36,206 | 32,973 | 10 | % | |||||||||||||
Operating Income | $ | 4,426 | $ | 5,701 | (22 | %) | $ | 13,249 | $ | 14,162 | (6 | %) | |||||||||
Compensation Ratio | 52.4 | % | 47.7 | % | 51.7 | % | 49.6 | % | |||||||||||||
Non-compensation Ratio | 20.7 | % | 18.2 | % | 21.5 | % | 20.3 | % | |||||||||||||
Operating Margin | 26.9 | % | 34.1 | % | 26.8 | % | 30.0 | % | |||||||||||||
Assets Under Management (in millions)(1)(2) | $ | 10,256 | $ | 9,896 | 4 | % | $ | 10,256 | $ | 9,896 | 4 | % | |||||||||
(1) Assets Under Management reflect end of period amounts from our consolidated subsidiaries. | |||||||||||||||||||||
(2) Assets Under Management includes Evercore assets which are managed by Evercore Wealth Management of $318.5 million and $171.2 million as of September 30, 2019 and 2018, respectively. |
Adjusted | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, 2019 | September 30, 2018 | % Change | September 30, 2019 | September 30, 2018 | % Change | ||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Asset Management and Administration Fees: | |||||||||||||||||||||
Wealth Management | $ | 12,155 | $ | 11,560 | 5 | % | $ | 35,408 | $ | 33,826 | 5 | % | |||||||||
Institutional Asset Management | 495 | 1,118 | (56 | %) | 2,044 | 2,777 | (26 | %) | |||||||||||||
Equity in Earnings of Affiliates(1) | 2,280 | 2,298 | (1 | %) | 6,470 | 6,545 | (1 | %) | |||||||||||||
Total Asset Management and Administration Fees | $ | 14,930 | $ | 14,976 | — | % | $ | 43,922 | $ | 43,148 | 2 | % | |||||||||
(1) Equity in ABS and Atalanta Sosnoff on a U.S. GAAP basis are reclassified from Asset Management and Administration Fees to Income from Equity Method Investments. |
Schedule | Page Number |
Unaudited Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2019 and 2018 | A-1 |
Adjusted: | |
Adjusted Results (Unaudited) | A-2 |
U.S. GAAP Reconciliation to Adjusted Results (Unaudited) | A-4 |
U.S. GAAP Reconciliation to Adjusted Results for the Trailing Twelve Months (Unaudited) | A-5 |
U.S. GAAP Segment Reconciliation to Adjusted Results for the Three and Nine Months ended September 30, 2019 (Unaudited) | A-6 |
U.S. GAAP Segment Reconciliation to Adjusted Results for the Three and Nine Months ended September 30, 2018 (Unaudited) | A-7 |
U.S. GAAP Segment Reconciliation to Consolidated Results (Unaudited) | A-8 |
Notes to Unaudited Condensed Consolidated Adjusted Financial Data | A-9 |
EVERCORE INC. | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018 | |||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||
(UNAUDITED) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues | |||||||||||||||
Investment Banking: | |||||||||||||||
Advisory Fees | $ | 320,885 | $ | 305,949 | $ | 1,090,309 | $ | 1,047,259 | |||||||
Underwriting Fees | 17,598 | 11,440 | 61,428 | 62,784 | |||||||||||
Commissions and Related Fees | 46,820 | 45,337 | 137,417 | 139,447 | |||||||||||
Asset Management and Administration Fees | 12,650 | 12,678 | 37,452 | 36,603 | |||||||||||
Other Revenue, Including Interest and Investments | 9,911 | 10,058 | 35,886 | 20,826 | |||||||||||
Total Revenues | 407,864 | 385,462 | 1,362,492 | 1,306,919 | |||||||||||
Interest Expense(1) | 5,666 | 4,203 | 13,921 | 13,620 | |||||||||||
Net Revenues | 402,198 | 381,259 | 1,348,571 | 1,293,299 | |||||||||||
Expenses | |||||||||||||||
Employee Compensation and Benefits | 241,702 | 225,452 | 803,657 | 766,537 | |||||||||||
Occupancy and Equipment Rental | 16,946 | 15,367 | 51,225 | 43,249 | |||||||||||
Professional Fees | 21,577 | 19,698 | 60,912 | 56,581 | |||||||||||
Travel and Related Expenses | 17,589 | 16,880 | 54,650 | 50,858 | |||||||||||
Communications and Information Services | 12,146 | 10,590 | 34,773 | 31,634 | |||||||||||
Depreciation and Amortization | 8,419 | 6,815 | 23,123 | 20,209 | |||||||||||
Execution, Clearing and Custody Fees | 3,265 | 3,068 | 9,483 | 7,818 | |||||||||||
Special Charges | 1,029 | 1,967 | 3,087 | 3,864 | |||||||||||
Acquisition and Transition Costs | 380 | — | 488 | 21 | |||||||||||
Other Operating Expenses | 8,801 | 6,882 | 26,185 | 20,657 | |||||||||||
Total Expenses | 331,854 | 306,719 | 1,067,583 | 1,001,428 | |||||||||||
Income Before Income from Equity Method Investments and Income Taxes | 70,344 | 74,540 | 280,988 | 291,871 | |||||||||||
Income from Equity Method Investments | 2,562 | 2,298 | 7,226 | 6,842 | |||||||||||
Income Before Income Taxes | 72,906 | 76,838 | 288,214 | 298,713 | |||||||||||
Provision for Income Taxes | 20,402 | 17,539 | 60,253 | 48,018 | |||||||||||
Net Income | 52,504 | 59,299 | 227,961 | 250,695 | |||||||||||
Net Income Attributable to Noncontrolling Interest | 9,226 | 9,838 | 35,709 | 36,760 | |||||||||||
Net Income Attributable to Evercore Inc. | $ | 43,278 | $ | 49,461 | $ | 192,252 | $ | 213,935 | |||||||
Net Income Attributable to Evercore Inc. Common Shareholders | $ | 43,278 | $ | 49,461 | $ | 192,252 | $ | 213,935 | |||||||
Weighted Average Shares of Class A Common Stock Outstanding: | |||||||||||||||
Basic | 39,704 | 40,966 | 40,246 | 40,762 | |||||||||||
Diluted | 42,789 | 45,858 | 43,437 | 45,542 | |||||||||||
Net Income Per Share Attributable to Evercore Inc. Common Shareholders: | |||||||||||||||
Basic | $ | 1.09 | $ | 1.21 | $ | 4.78 | $ | 5.25 | |||||||
Diluted | $ | 1.01 | $ | 1.08 | $ | 4.43 | $ | 4.70 | |||||||
(1) Includes interest expense on long-term debt and interest expense on short-term repurchase agreements. | |||||||||||||||
1. | Assumed Vesting of Evercore LP Units and Exchange into Class A Shares. The Company incurred expenses, in Employee Compensation and Benefits, resulting from the vesting of Class E and Class J Evercore LP Units issued in conjunction with the acquisition of ISI. The Adjusted results assume these LP Units have vested and have been exchanged for Class A shares. Accordingly, any expense associated with these units, and related awards, is excluded from the Adjusted results, and 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 these previously granted equity interests, and thus the Adjusted results reflect the exchange of vested and unvested Class A and E Evercore LP Units and IPO related restricted stock unit awards 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: |
a. | Amortization of Intangible Assets and Other Purchase Accounting-related Amortization. Amortization of intangible assets and other purchase accounting-related amortization from the acquisition of ISI and certain other acquisitions. |
b. | Acquisition and Transition Costs. Primarily professional fees incurred and costs related to transitioning acquisitions or divestitures. |
3. | Special Charges. Expenses during 2019 that are excluded from the Adjusted presentation relate to the acceleration of depreciation expense for leasehold improvements in conjunction with the previously announced expansion of our headquarters in New York. Expenses during 2018 that are excluded from the Adjusted presentation relate to separation benefits and costs of terminating certain contracts associated with closing the agency trading platform in the U.K. and separation benefits and related charges associated with the Company's businesses in Mexico, as well as the acceleration of depreciation expense for leasehold improvements in conjunction with the announced expansion of our headquarters in New York. |
4. | Income Taxes. Evercore is organized as a series of Limited Liability Companies, Partnerships, C-Corporations and a Public Corporation and therefore, not all of the Company's income is subject to corporate-level taxes. As a result, adjustments have been made to the Adjusted earnings to assume that the Company is subject to the statutory tax rates of a C-Corporation under a conventional corporate tax structure in the U.S. at the prevailing corporate rates and that all deferred tax assets relating to foreign |
5. | Presentation of Interest Expense. The Adjusted results present interest expense on short-term repurchase agreements, within the Investment Management segment, in Other Revenues, net, as the Company's Management believes it is more meaningful to present the spread on net interest resulting from the matched financial assets and liabilities. In addition, Adjusted Investment Banking and Investment Management Operating Income are presented 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 more meaningful 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, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | ||||||||||||
Net Revenues - U.S. GAAP | $ | 402,198 | $ | 381,259 | $ | 1,348,571 | $ | 1,293,299 | |||||||
Income from Equity Method Investments (1) | 2,562 | 2,298 | 7,226 | 6,842 | |||||||||||
Interest Expense on Debt (2) | 3,786 | 2,300 | 8,354 | 6,861 | |||||||||||
Net Revenues - Adjusted | $ | 408,546 | $ | 385,857 | $ | 1,364,151 | $ | 1,307,002 | |||||||
Compensation Expense - U.S. GAAP | $ | 241,702 | $ | 225,452 | $ | 803,657 | $ | 766,537 | |||||||
Amortization of LP Units and Certain Other Awards (3) | (4,551 | ) | (3,764 | ) | (12,346 | ) | (11,470 | ) | |||||||
Compensation Expense - Adjusted | $ | 237,151 | $ | 221,688 | $ | 791,311 | $ | 755,067 | |||||||
Operating Income - U.S. GAAP | $ | 70,344 | $ | 74,540 | $ | 280,988 | $ | 291,871 | |||||||
Income from Equity Method Investments (1) | 2,562 | 2,298 | 7,226 | 6,842 | |||||||||||
Pre-Tax Income - U.S. GAAP | 72,906 | 76,838 | 288,214 | 298,713 | |||||||||||
Amortization of LP Units and Certain Other Awards (3) | 4,551 | 3,764 | 12,346 | 11,470 | |||||||||||
Special Charges (4) | 1,029 | 1,967 | 3,087 | 3,864 | |||||||||||
Intangible Asset Amortization / Other Purchase Accounting-related Amortization (5a) | 2,157 | 2,157 | 6,471 | 6,471 | |||||||||||
Acquisition and Transition Costs (5b) | 380 | — | 488 | 21 | |||||||||||
Pre-Tax Income - Adjusted | 81,023 | 84,726 | 310,606 | 320,539 | |||||||||||
Interest Expense on Debt (2) | 3,786 | 2,300 | 8,354 | 6,861 | |||||||||||
Operating Income - Adjusted | $ | 84,809 | $ | 87,026 | $ | 318,960 | $ | 327,400 | |||||||
Provision for Income Taxes - U.S. GAAP | $ | 20,402 | $ | 17,539 | $ | 60,253 | $ | 48,018 | |||||||
Income Taxes (6) | (235 | ) | 2,989 | 4,555 | 8,450 | ||||||||||
Provision for Income Taxes - Adjusted | $ | 20,167 | $ | 20,528 | $ | 64,808 | $ | 56,468 | |||||||
Net Income Attributable to Evercore Inc. - U.S. GAAP | $ | 43,278 | $ | 49,461 | $ | 192,252 | $ | 213,935 | |||||||
Amortization of LP Units and Certain Other Awards (3) | 4,551 | 3,764 | 12,346 | 11,470 | |||||||||||
Special Charges (4) | 1,029 | 1,967 | 3,087 | 3,864 | |||||||||||
Intangible Asset Amortization / Other Purchase Accounting-related Amortization (5a) | 2,157 | 2,157 | 6,471 | 6,471 | |||||||||||
Acquisition and Transition Costs (5b) | 380 | — | 488 | 21 | |||||||||||
Income Taxes (6) | 235 | (2,989 | ) | (4,555 | ) | (8,450 | ) | ||||||||
Noncontrolling Interest (7) | 8,843 | 8,408 | 33,080 | 32,438 | |||||||||||
Net Income Attributable to Evercore Inc. - Adjusted | $ | 60,473 | $ | 62,768 | $ | 243,169 | $ | 259,749 | |||||||
Diluted Shares Outstanding - U.S. GAAP | 42,789 | 45,858 | 43,437 | 45,542 | |||||||||||
LP Units (8) | 5,310 | 5,017 | 5,237 | 5,124 | |||||||||||
Unvested Restricted Stock Units - Event Based (8) | 12 | 12 | 12 | 12 | |||||||||||
Diluted Shares Outstanding - Adjusted | 48,111 | 50,887 | 48,686 | 50,678 | |||||||||||
Key Metrics: (a) | |||||||||||||||
Diluted Earnings Per Share - U.S. GAAP | $ | 1.01 | $ | 1.08 | $ | 4.43 | $ | 4.70 | |||||||
Diluted Earnings Per Share - Adjusted | $ | 1.26 | $ | 1.23 | $ | 4.99 | $ | 5.13 | |||||||
Compensation Ratio - U.S. GAAP | 60.1 | % | 59.1 | % | 59.6 | % | 59.3 | % | |||||||
Compensation Ratio - Adjusted | 58.0 | % | 57.5 | % | 58.0 | % | 57.8 | % | |||||||
Operating Margin - U.S. GAAP | 17.5 | % | 19.6 | % | 20.8 | % | 22.6 | % | |||||||
Operating Margin - Adjusted | 20.8 | % | 22.6 | % | 23.4 | % | 25.0 | % | |||||||
Effective Tax Rate - U.S. GAAP | 28.0 | % | 22.8 | % | 20.9 | % | 16.1 | % | |||||||
Effective Tax Rate - Adjusted | 24.9 | % | 24.2 | % | 20.9 | % | 17.6 | % | |||||||
(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 RECONCILIATION TO ADJUSTED RESULTS | |||||||
TRAILING TWELVE MONTHS | |||||||
(dollars in thousands) | |||||||
(UNAUDITED) | |||||||
Consolidated | |||||||
Twelve Months Ended | |||||||
September 30, 2019 | September 30, 2018 | ||||||
Net Revenues - U.S. GAAP | $ | 2,119,977 | $ | 1,833,330 | |||
Income from Equity Method Investments (1) | 9,678 | 10,173 | |||||
Interest Expense on Debt (2) | 10,694 | 9,327 | |||||
Adjustment to Tax Receivable Agreement Liability (6) | — | (77,535 | ) | ||||
Gain on Sale of Institutional Trust and Independent Fiduciary business of ETC (9) | — | (7,808 | ) | ||||
Foreign Exchange Losses from G5 Transaction (10) | — | 16,266 | |||||
Net Revenues - Adjusted | $ | 2,140,349 | $ | 1,783,753 | |||
Compensation Expense - U.S. GAAP | $ | 1,234,293 | $ | 1,039,863 | |||
Amortization of LP Units and Certain Other Awards (3) | (16,117 | ) | (17,934 | ) | |||
Compensation Expense - Adjusted | $ | 1,218,176 | $ | 1,021,929 | |||
Compensation Ratio - U.S. GAAP (a) | 58.2 | % | 56.7 | % | |||
Compensation Ratio - Adjusted (a) | 56.9 | % | 57.3 | % | |||
Investment Banking | |||||||
Twelve Months Ended | |||||||
September 30, 2019 | September 30, 2018 | ||||||
Net Revenues - U.S. GAAP | $ | 2,064,900 | $ | 1,771,499 | |||
Income from Equity Method Investments (1) | 977 | 685 | |||||
Interest Expense on Debt (2) | 10,694 | 9,327 | |||||
Adjustment to Tax Receivable Agreement Liability (6) | — | (77,535 | ) | ||||
Foreign Exchange Losses from G5 Transaction (10) | — | 16,266 | |||||
Net Revenues - Adjusted | $ | 2,076,571 | $ | 1,720,242 | |||
Compensation Expense - U.S. GAAP | $ | 1,201,095 | $ | 1,009,413 | |||
Amortization of LP Units and Certain Other Awards (3) | (16,117 | ) | (17,934 | ) | |||
Compensation Expense - Adjusted | $ | 1,184,978 | $ | 991,479 | |||
Compensation Ratio - U.S. GAAP (a) | 58.2 | % | 57.0 | % | |||
Compensation Ratio - Adjusted (a) | 57.1 | % | 57.6 | % | |||
(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, 2019 | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||
Investment Banking Segment | |||||||||||||||||||||||
Three Months Ended September 30, 2019 | Nine Months Ended September 30, 2019 | ||||||||||||||||||||||
U.S. GAAP Basis | Adjustments | Non-GAAP Adjusted Basis | U.S. GAAP Basis | Adjustments | Non-GAAP Adjusted Basis | ||||||||||||||||||
Net Revenues: | |||||||||||||||||||||||
Investment Banking: | |||||||||||||||||||||||
Advisory Fees | $ | 320,885 | $ | 282 | (1) | $ | 321,167 | $ | 1,090,309 | $ | 756 | (1) | $ | 1,091,065 | |||||||||
Underwriting Fees | 17,598 | — | 17,598 | 61,428 | — | 61,428 | |||||||||||||||||
Commissions and Related Fees | 46,820 | — | 46,820 | 137,417 | — | 137,417 | |||||||||||||||||
Other Revenue, net | 2,709 | 3,786 | (2) | 6,495 | 16,432 | 8,354 | (2) | 24,786 | |||||||||||||||
Net Revenues | 388,012 | 4,068 | 392,080 | 1,305,586 | 9,110 | 1,314,696 | |||||||||||||||||
Expenses: | |||||||||||||||||||||||
Employee Compensation and Benefits | 233,078 | (4,551 | ) | (3) | 228,527 | 778,078 | (12,346 | ) | (3) | 765,732 | |||||||||||||
Non-compensation Costs | 85,507 | (2,337 | ) | (5) | 83,170 | 249,904 | (6,651 | ) | (5) | 243,253 | |||||||||||||
Special Charges | 1,029 | (1,029 | ) | (4) | — | 3,087 | (3,087 | ) | (4) | — | |||||||||||||
Total Expenses | 319,614 | (7,917 | ) | 311,697 | 1,031,069 | (22,084 | ) | 1,008,985 | |||||||||||||||
Operating Income (a) | $ | 68,398 | $ | 11,985 | $ | 80,383 | $ | 274,517 | $ | 31,194 | $ | 305,711 | |||||||||||
Compensation Ratio (b) | 60.1 | % | 58.3 | % | 59.6 | % | 58.2 | % | |||||||||||||||
Operating Margin (b) | 17.6 | % | 20.5 | % | 21.0 | % | 23.3 | % | |||||||||||||||
Investment Management Segment | |||||||||||||||||||||||
Three Months Ended September 30, 2019 | Nine Months Ended September 30, 2019 | ||||||||||||||||||||||
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 | $ | 12,650 | $ | 2,280 | (1) | $ | 14,930 | $ | 37,452 | $ | 6,470 | (1) | $ | 43,922 | |||||||||
Other Revenue, net | 1,536 | — | 1,536 | 5,533 | — | 5,533 | |||||||||||||||||
Net Revenues | 14,186 | 2,280 | 16,466 | 42,985 | 6,470 | 49,455 | |||||||||||||||||
Expenses: | |||||||||||||||||||||||
Employee Compensation and Benefits | 8,624 | — | 8,624 | 25,579 | — | 25,579 | |||||||||||||||||
Non-compensation Costs | 3,616 | (200 | ) | (5) | 3,416 | 10,935 | (308 | ) | (5) | 10,627 | |||||||||||||
Total Expenses | 12,240 | (200 | ) | 12,040 | 36,514 | (308 | ) | 36,206 | |||||||||||||||
Operating Income (a) | $ | 1,946 | $ | 2,480 | $ | 4,426 | $ | 6,471 | $ | 6,778 | $ | 13,249 | |||||||||||
Compensation Ratio (b) | 60.8 | % | 52.4 | % | 59.5 | % | 51.7 | % | |||||||||||||||
Operating Margin (b) | 13.7 | % | 26.9 | % | 15.1 | % | 26.8 | % | |||||||||||||||
(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, 2018 | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||
Investment Banking Segment | |||||||||||||||||||||||
Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2018 | ||||||||||||||||||||||
U.S. GAAP Basis | Adjustments | Non-GAAP Adjusted Basis | U.S. GAAP Basis | Adjustments | Non-GAAP Adjusted Basis | ||||||||||||||||||
Net Revenues: | |||||||||||||||||||||||
Investment Banking: | |||||||||||||||||||||||
Advisory Fees | $ | 305,949 | $ | — | $ | 305,949 | $ | 1,047,259 | $ | 297 | (1) | $ | 1,047,556 | ||||||||||
Underwriting Fees | 11,440 | — | 11,440 | 62,784 | — | 62,784 | |||||||||||||||||
Commissions and Related Fees | 45,337 | — | 45,337 | 139,447 | — | 139,447 | |||||||||||||||||
Other Revenue, net | 4,108 | 2,300 | (2) | 6,408 | 3,219 | 6,861 | (2) | 10,080 | |||||||||||||||
Net Revenues | 366,834 | 2,300 | 369,134 | 1,252,709 | 7,158 | 1,259,867 | |||||||||||||||||
Expenses: | |||||||||||||||||||||||
Employee Compensation and Benefits | 217,471 | (3,764 | ) | (3) | 213,707 | 743,152 | (11,470 | ) | (3) | 731,682 | |||||||||||||
Non-compensation Costs | 76,259 | (2,157 | ) | (5) | 74,102 | 221,418 | (6,471 | ) | (5) | 214,947 | |||||||||||||
Special Charges | 1,967 | (1,967 | ) | (4) | — | 3,864 | (3,864 | ) | (4) | — | |||||||||||||
Total Expenses | 295,697 | (7,888 | ) | 287,809 | 968,434 | (21,805 | ) | 946,629 | |||||||||||||||
Operating Income (a) | $ | 71,137 | $ | 10,188 | $ | 81,325 | $ | 284,275 | $ | 28,963 | $ | 313,238 | |||||||||||
Compensation Ratio (b) | 59.3 | % | 57.9 | % | 59.3 | % | 58.1 | % | |||||||||||||||
Operating Margin (b) | 19.4 | % | 22.0 | % | 22.7 | % | 24.9 | % | |||||||||||||||
Investment Management Segment | |||||||||||||||||||||||
Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2018 | ||||||||||||||||||||||
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 | $ | 12,678 | $ | 2,298 | (1) | $ | 14,976 | $ | 36,603 | $ | 6,545 | (1) | $ | 43,148 | |||||||||
Other Revenue, net | 1,747 | — | 1,747 | 3,987 | — | 3,987 | |||||||||||||||||
Net Revenues | 14,425 | 2,298 | 16,723 | 40,590 | 6,545 | 47,135 | |||||||||||||||||
Expenses: | |||||||||||||||||||||||
Employee Compensation and Benefits | 7,981 | — | 7,981 | 23,385 | — | 23,385 | |||||||||||||||||
Non-compensation Costs | 3,041 | — | 3,041 | 9,609 | (21 | ) | (5) | 9,588 | |||||||||||||||
Total Expenses | 11,022 | — | 11,022 | 32,994 | (21 | ) | 32,973 | ||||||||||||||||
Operating Income (a) | $ | 3,403 | $ | 2,298 | $ | 5,701 | $ | 7,596 | $ | 6,566 | $ | 14,162 | |||||||||||
Compensation Ratio (b) | 55.3 | % | 47.7 | % | 57.6 | % | 49.6 | % | |||||||||||||||
Operating Margin (b) | 23.6 | % | 34.1 | % | 18.7 | % | 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 CONSOLIDATED RESULTS | |||||||||||||||
(dollars in thousands) | |||||||||||||||
(UNAUDITED) | |||||||||||||||
U.S. GAAP | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | ||||||||||||
Investment Banking | |||||||||||||||
Net Revenues: | |||||||||||||||
Investment Banking: | |||||||||||||||
Advisory Fees | $ | 320,885 | $ | 305,949 | $ | 1,090,309 | $ | 1,047,259 | |||||||
Underwriting Fees | 17,598 | 11,440 | 61,428 | 62,784 | |||||||||||
Commissions and Related Fees | 46,820 | 45,337 | 137,417 | 139,447 | |||||||||||
Other Revenue, net | 2,709 | 4,108 | 16,432 | 3,219 | |||||||||||
Net Revenues | 388,012 | 366,834 | 1,305,586 | 1,252,709 | |||||||||||
Expenses: | |||||||||||||||
Employee Compensation and Benefits | 233,078 | 217,471 | 778,078 | 743,152 | |||||||||||
Non-compensation Costs | 85,507 | 76,259 | 249,904 | 221,418 | |||||||||||
Special Charges | 1,029 | 1,967 | 3,087 | 3,864 | |||||||||||
Total Expenses | 319,614 | 295,697 | 1,031,069 | 968,434 | |||||||||||
Operating Income (a) | $ | 68,398 | $ | 71,137 | $ | 274,517 | $ | 284,275 | |||||||
Investment Management | |||||||||||||||
Net Revenues: | |||||||||||||||
Asset Management and Administration Fees | $ | 12,650 | $ | 12,678 | $ | 37,452 | $ | 36,603 | |||||||
Other Revenue, net | 1,536 | 1,747 | 5,533 | 3,987 | |||||||||||
Net Revenues | 14,186 | 14,425 | 42,985 | 40,590 | |||||||||||
Expenses: | |||||||||||||||
Employee Compensation and Benefits | 8,624 | 7,981 | 25,579 | 23,385 | |||||||||||
Non-compensation Costs | 3,616 | 3,041 | 10,935 | 9,609 | |||||||||||
Total Expenses | 12,240 | 11,022 | 36,514 | 32,994 | |||||||||||
Operating Income (a) | $ | 1,946 | $ | 3,403 | $ | 6,471 | $ | 7,596 | |||||||
Total | |||||||||||||||
Net Revenues: | |||||||||||||||
Investment Banking: | |||||||||||||||
Advisory Fees | $ | 320,885 | $ | 305,949 | $ | 1,090,309 | $ | 1,047,259 | |||||||
Underwriting Fees | 17,598 | 11,440 | 61,428 | 62,784 | |||||||||||
Commissions and Related Fees | 46,820 | 45,337 | 137,417 | 139,447 | |||||||||||
Asset Management and Administration Fees | 12,650 | 12,678 | 37,452 | 36,603 | |||||||||||
Other Revenue, net | 4,245 | 5,855 | 21,965 | 7,206 | |||||||||||
Net Revenues | 402,198 | 381,259 | 1,348,571 | 1,293,299 | |||||||||||
Expenses: | |||||||||||||||
Employee Compensation and Benefits | 241,702 | 225,452 | 803,657 | 766,537 | |||||||||||
Non-compensation Costs | 89,123 | 79,300 | 260,839 | 231,027 | |||||||||||
Special Charges | 1,029 | 1,967 | 3,087 | 3,864 | |||||||||||
Total Expenses | 331,854 | 306,719 | 1,067,583 | 1,001,428 | |||||||||||
Operating Income (a) | $ | 70,344 | $ | 74,540 | $ | 280,988 | $ | 291,871 | |||||||
(a) Operating Income excludes Income (Loss) from Equity Method Investments. |
(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) | Expenses incurred from the assumed vesting of Class E and Class J Evercore LP Units issued in conjunction with the acquisition of ISI are excluded from the Adjusted presentation. |
(4) | Expenses during 2019 that are excluded from the Adjusted presentation relate to the acceleration of depreciation expense for leasehold improvements in conjunction with the previously announced expansion of our headquarters in New York. Expenses during 2018 that are excluded from the Adjusted presentation relate to separation benefits and costs of terminating certain contracts associated with closing the agency trading platform in the U.K. and separation benefits and related charges associated with the Company's businesses in Mexico, as well as the acceleration of depreciation expense for leasehold improvements in conjunction with the previously announced expansion of our headquarters in New York. |
(5) | Non-compensation Costs on an Adjusted basis reflect the following adjustments: |
Three Months Ended September 30, 2019 | |||||||||||
U.S. GAAP | Adjustments | Adjusted | |||||||||
(dollars in thousands) | |||||||||||
Occupancy and Equipment Rental | $ | 16,946 | $ | — | $ | 16,946 | |||||
Professional Fees | 21,577 | — | 21,577 | ||||||||
Travel and Related Expenses | 17,589 | — | 17,589 | ||||||||
Communications and Information Services | 12,146 | — | 12,146 | ||||||||
Depreciation and Amortization | 8,419 | (2,157 | ) | (5a) | 6,262 | ||||||
Execution, Clearing and Custody Fees | 3,265 | — | 3,265 | ||||||||
Acquisition and Transition Costs | 380 | (380 | ) | (5b) | — | ||||||
Other Operating Expenses | 8,801 | — | 8,801 | ||||||||
Total Non-compensation Costs | $ | 89,123 | $ | (2,537 | ) | $ | 86,586 | ||||
Three Months Ended September 30, 2018 | |||||||||||
U.S. GAAP | Adjustments | Adjusted | |||||||||
(dollars in thousands) | |||||||||||
Occupancy and Equipment Rental | $ | 15,367 | $ | — | $ | 15,367 | |||||
Professional Fees | 19,698 | — | 19,698 | ||||||||
Travel and Related Expenses | 16,880 | — | 16,880 | ||||||||
Communications and Information Services | 10,590 | — | 10,590 | ||||||||
Depreciation and Amortization | 6,815 | (2,157 | ) | (5a) | 4,658 | ||||||
Execution, Clearing and Custody Fees | 3,068 | — | 3,068 | ||||||||
Other Operating Expenses | 6,882 | — | 6,882 | ||||||||
Total Non-compensation Costs | $ | 79,300 | $ | (2,157 | ) | $ | 77,143 | ||||
Nine Months Ended September 30, 2019 | |||||||||||
U.S. GAAP | Adjustments | Adjusted | |||||||||
(dollars in thousands) | |||||||||||
Occupancy and Equipment Rental | $ | 51,225 | $ | — | $ | 51,225 | |||||
Professional Fees | 60,912 | — | 60,912 | ||||||||
Travel and Related Expenses | 54,650 | — | 54,650 | ||||||||
Communications and Information Services | 34,773 | — | 34,773 | ||||||||
Depreciation and Amortization | 23,123 | (6,471 | ) | (5a) | 16,652 | ||||||
Execution, Clearing and Custody Fees | 9,483 | — | 9,483 | ||||||||
Acquisition and Transition Costs | 488 | (488 | ) | (5b) | — | ||||||
Other Operating Expenses | 26,185 | — | 26,185 | ||||||||
Total Non-compensation Costs | $ | 260,839 | $ | (6,959 | ) | $ | 253,880 | ||||
Nine Months Ended September 30, 2018 | |||||||||||
U.S. GAAP | Adjustments | Adjusted | |||||||||
(dollars in thousands) | |||||||||||
Occupancy and Equipment Rental | $ | 43,249 | $ | — | $ | 43,249 | |||||
Professional Fees | 56,581 | — | 56,581 | ||||||||
Travel and Related Expenses | 50,858 | — | 50,858 | ||||||||
Communications and Information Services | 31,634 | — | 31,634 | ||||||||
Depreciation and Amortization | 20,209 | (6,471 | ) | (5a) | 13,738 | ||||||
Execution, Clearing and Custody Fees | 7,818 | — | 7,818 | ||||||||
Acquisition and Transition Costs | 21 | (21 | ) | (5b) | — | ||||||
Other Operating Expenses | 20,657 | — | 20,657 | ||||||||
Total Non-compensation Costs | $ | 231,027 | $ | (6,492 | ) | $ | 224,535 |
(5a) | The exclusion from the Adjusted presentation of expenses associated with amortization of intangible assets and other purchase accounting-related amortization from the acquisition of ISI and certain other acquisitions. |
(5b) | Primarily the exclusion from the Adjusted presentation of professional fees incurred and costs related to transitioning acquisitions or divestitures. |
(6) | Evercore is organized as a series of Limited Liability Companies, Partnerships, C-Corporations and a Public Corporation and therefore, not all of the Company's income is subject to corporate-level taxes. As a result, adjustments have been made to the Adjusted earnings to assume that the Company is subject to the statutory tax rates of a C-Corporation under a conventional corporate tax structure in the U.S. at the prevailing corporate rates and that all deferred tax assets relating to foreign operations are fully realizable within the structure on a consolidated basis. This assumption is consistent with the assumption that certain Evercore LP Units are vested and exchanged into Class A shares, as the assumed exchange would change the tax structure of the Company. |
(7) | Reflects an adjustment to eliminate noncontrolling interest related to all Evercore LP partnership units which are assumed to be converted to Class A common stock in the Adjusted presentation. |
(8) | Assumes the vesting, and exchange into Class A shares, of Class A and E 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. |
(9) | The gain resulting from the sale of the Institutional Trust and Independent Fiduciary business of ETC in the fourth quarter of 2017 is excluded from the Adjusted presentation. |
(10) | Release of cumulative foreign exchange losses resulting from the restructuring of our equity method investment in G5 in the fourth quarter of 2017 are excluded from the Adjusted presentation. |
M>P)#78!W#&*B*GCR"'K.![,>=%#(\='E\Q4??TEUG/7H(PK8>_R43]-<#JUV5?
M4$L#!!0 ( &@Q5T\+C]@#(0$ %<$ 3 6T-O;G1E;G1?5'EP97-=
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M2_#0#28A3#,*BNQ&CB>65H*2ZA,O>43H6\>"/4E
M0!LK:/>,3J?*,=9H!1I8P1:QU-8\!M%O$/+QHLT?8BN5.[@3VO7(4>@[
M+=+MA0.! =59GDC =:S\KL74%E&NUWEU'@$%7K5A=[?: .#5GLVZP&8V
MND@$U59!91N]?A5V0U"ABUQ8(*75,;O-6-GU>.IY'DTFOMQ;DLM-'R]9($_L
MT#@+;7>-OHT)@U)L6']0=0S'P3D62H&JED!R=/*PS<1=[
^<^)W#O?7[-W?K99+'@+T/ET
MM1?E-?H4W!>9F.W9^K
MU%^41^&&M)P%$+[1BL^K7
?@L19TZT0K>*P^K5KR>-$PSR? ]'8P QMQ M$_?#7\B3Y"K[/AA-ARR;)UL_)5GV"[E.DS'I_S6-\@?RF>6WR9!_X8YEN3CJ M,3M<-WF_YB'WL.9_ES\7R!I%,3N8<=,R?MZ,DR5_R+\^7CXWB(7)'G#J6+KX M$NO-PRKNZ)(#,AO6FV_^,:J4/V_3V3,FX0T[N$I9^.T@O.;C_1".[L.';*^D M-21Q..9?RSJN[YGF1_?XV#]VN_;'CFV81[9O.QW^;_\XX#?\&E:9I@TZR&LX M6&54U5@G+^^+-UPEH^%O8EMYS@4D3\C7.)P.(W&X?"^)AZ(>5_XF2S3DF?/= MX9_33!X^'\5A++=&'8=Y^ 2?VR-GC8!L
/>U'I>ER?+M A'AY=/RPK:GO^I4AP,O]P
M(/^R,'CSS>2::^9;*D4R8*-1.81_[!E[\IJ;F,'L>B[
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
Document and Entity Information Document |
Oct. 23, 2019 |
---|---|
Document and Entity Information [Abstract] | |
Document Type | 8-K |
Document Period End Date | Oct. 23, 2019 |
Entity Registrant Name | EVERCORE INC. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-32975 |
Entity Tax Identification Number | 20-4748747 |
Entity Address, Address Line One | 55 East 52nd Street |
Entity Address, City or Town | New York, |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10055 |
City Area Code | 212 |
Local Phone Number | 857-3100 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Class A Common Stock, par value $0.01 per share |
Trading Symbol | EVR |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001360901 |
Amendment Flag | false |