Evercore Reports Second Quarter 2013 Results Quarterly Dividend of $0.22 Per Share

Evercore Reports Second Quarter 2013 Results Quarterly Dividend of $0.22 Per Share

Highlights

• Second Quarter Financial Summary

  • U.S. GAAP Net Revenues of $207.4 million, up 20% and 37% compared to Q2 2012 and Q1 2013, respectively

  • U.S. GAAP Net Income of $16.4 million, or $0.44 per share, up 107% and 175% compared to Q2 2012 and Q1 2013, respectively

  • Adjusted Pro Forma Net Revenues of $206.8 million, up 20% and 35% compared to Q2 2012 and Q1 2013, respectively

  • Adjusted Pro Forma Net Income of $29.5 million, or $0.65 per share, up 39% and 75% compared to Q2 2012 and Q1 2013, respectively

• Year-to-Date Financial Summary

  • U.S. GAAP Net Revenues of $358.9 million, up 30% compared to the same period in 2012

  • U.S. GAAP Net Income of $22.4 million, or $0.59 per share, up 390% compared to the same period in 2012

  • Adjusted Pro Forma Net Revenues of $360.1 million, up 30% compared to the same period in 2012

  • Adjusted Pro Forma Net Income of $46.4 million, or $1.01 per share, up 82% compared to the same period in 2012

• Investment Banking

  • Announced the hiring of three new Senior Managing Directors

  • Continue to advise on many of the leading transactions in the marketplace, including:

    • Advised McMoRan Exploration on its merger with Freeport-McMoRan Copper & Gold

    • Advised Clearwire on Sprint's acquisition of the ~50% of Clearwire that it does not already own

    • Advised R.L. Polk on its sale to IHS

    • Advising EP Energy on its sale of assets to Atlas Energy and Atlas Resource Partners and on its sale of Arklatex properties to WildHorse Resources II

• Investment Management

  • Raised $201 million Private Equity Fund in Mexico

  • Assets Under Management in consolidated businesses were $13.6 billion

• Repurchased 1,543,000 shares/units during the quarter at an average price of $37.11

• Quarterly dividend of $0.22 per share

NEW YORK--(BUSINESS WIRE)-- Evercore Partners Inc. (NYS: EVR) today announced that its U.S. GAAP Net Revenues were $207.4 million for the quarter ended June 30, 2013, compared to $172.5 million and $151.4 million for the quarters ended June 30, 2012 and March 31, 2013, respectively. U.S. GAAP Net Revenues were $358.9 million for the six months ended June 30, 2013, compared to $275.3 million for the six months ended June 30, 2012. U.S. GAAP Net Income Attributable to Evercore Partners Inc. was $16.4 million, or $0.44 per share, for the second quarter, compared to $7.9 million, or $0.25 per share, a year ago and $6.0 million, or $0.16 per share, last quarter. U.S. GAAP Net Income Attributable to Evercore Partners Inc. was $22.4 million, or $0.59 per share, for the six months ended June 30, 2013, compared to $4.6 million, or $0.14 per share, for the same period last year.

Adjusted Pro Forma Net Revenues were $206.8 million for the quarter ended June 30, 2013, compared with $172.1 million and $153.4 million for the quarters ended June 30, 2012 and March 31, 2013, respectively. Adjusted Pro Forma Net Revenues were $360.1 million for the six months ended June 30, 2013, compared with $277.6 million for the six months ended June 30, 2012. Adjusted Pro Forma Net Income Attributable to Evercore Partners Inc. was $29.5 million, or $0.65 per share, for the second quarter, compared to $21.2 million, or $0.49 per share, a year ago and $16.8 million, or $0.37 per share, last quarter. Adjusted Pro Forma Net Income Attributable to Evercore Partners Inc. was $46.4 million, or $1.01 per share, for the six months ended June 30, 2013, compared to $25.5 million, or $0.58 per share, for the same period last year.

The U.S. GAAP compensation ratio for the three months ended June 30, 2013, June 30, 2012 and March 31, 2013 was 63.5%, 66.3% and 67.4%, respectively. The U.S. GAAP trailing twelve-month compensation ratio of 64.6% compares to 69.6% for the twelve months ended June 30, 2012 and 65.4% for the twelve months ended March 31, 2013. The Adjusted Pro Forma compensation ratio for the current quarter was 58.9%, compared to 59.7% for the quarters ended June 30, 2012 and March 31, 2013. The Adjusted Pro Forma compensation ratio for the trailing twelve months was 59.0%, compared to 60.1% for the same period in 2012 and 59.2% for the twelve months ended March 31, 2013.

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.

"Our quarterly results reflect the continuing market share gains by our firm, as our independent advisory model is increasingly embraced by corporate leaders, private equity firms, Boards of Directors and large institutional investors. Our net revenues exceeded $200 million for the second time in our history, and this was the second strongest quarter in our history by most important measures," said Ralph Schlosstein, President and Chief Executive Officer. "Each of our businesses performed well in the second quarter. Completed M&A assignments and capital markets advisory assignments contributed to our strong second quarter Investment Banking results, reflecting both the large number of assignments completed and the return of transactions generating larger fees. Investment Management benefited significantly from the closing of a $201 million private equity fund in Mexico and investment performance continued to be solid at each of our key platforms. We delivered strong shareholder performance as operating margins were 24.7%, and we returned more than $65.5 million to shareholders, repurchasing more than 1.5 million shares and units and paying dividends of $8.3 million in the quarter."

"Evercore delivered strong Investment Banking results in this quarter. Our revenues of $180 million represent the second best quarterly results in our history, earning fees of $1 million or more from 38 clients and completing 18 underwriting transactions. We are consistently adding new talent to the firm, and did so again this quarter. We launched a Private Capital Advisory business, to be led by Nigel Dawn, and announced the addition of Scott Kamran to our Technology team and Keith Magnus, who will join us to open an office in Singapore, serving clients in Singapore and Southern Asia. Finally, overall, we expect Evercore's investment banking market share to increase again," said Roger Altman, Executive Chairman.

Throughout the discussion of Evercore's business segments, information is presented on an Adjusted Pro Forma basis, which is an unaudited non-generally accepted accounting principles ("non-GAAP") measure. Adjusted Pro Forma results begin with information prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), and then those results are adjusted to exclude certain items and reflect the conversion of vested and unvested Evercore LP Units into Class A shares. Evercore believes that the disclosed Adjusted Pro Forma 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.For more information about the Adjusted Pro Forma basis of reporting used by management to evaluate the performance of Evercore and each line of business, including reconciliations of U.S. GAAP results to an Adjusted Pro Forma basis, see pages A-2 through A-11 included in Annex I.These Adjusted Pro Forma amounts are allocated to the Company's two business segments: Investment Banking and Investment Management.

Business Line Reporting

A discussion of Adjusted Pro Forma revenues and expenses is presented below for the Investment Banking and Investment Management segments. Unless otherwise stated, all of the financial measures presented in this discussion are Adjusted Pro Forma measures. For a reconciliation of the Adjusted Pro Forma segment data to U.S. GAAP results, see pages A-2 to A-11 in Annex I.