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Investor Presentation Q4 2024
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This presentation 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 presentation 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 or annual reports on Form 10-K, 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 presentation. 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. Throughout this presentation certain information is presented on an Adjusted basis, which is a non-GAAP measure. Adjusted results begin with information prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), and then those results are adjusted to exclude certain items and reflect the conversion of vested and unvested Evercore LP Units and Interests 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. A reconciliation of each non-GAAP figure to the corresponding GAAP figure is available in the Appendix at the end of this presentation.
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Table of Contents Section Evercore Overview Evercore’s Breadth and Depth Opportunities for Future Growth Business Highlights Appendix I II III IV V
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I. Evercore Overview
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Evercore: Focused on Delivering for Our Clients, Our Shareholders and Our People To be the most respected and trusted independent investment bank in the world Our Priorities Our Goal Clients Shareholders People Long-term, trusted relationships, pro viding a breadth of capabilities to advise our clients on their most important strategic, financial and capital priorities Creating long-term shareholder value through revenue growth, strong margins, and consistent capital return A strong culture grounded in our Core Values Attracting, developing, mentoring and promoting a diverse group of highly talented professionals 1
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Track Record of Achieving Strong Results for Our Clients, Our Shareholders and Our People Source: M&A data sourced from Refinitiv; Fee data sourced from Company reports and SEC filings 1. Net Revenues, EPS and Operating Margins for all periods reflect Adjusted figures on a gross basis as described in the Q4 2024 earnings release. A reconciliation to the corresponding GAAP figures is available in Appendix at the end of this presentation 2. Q4 2024 Advisory revenues based on reported quarterly results for all firms that have reported through February 7, 2025, and estimates for firms that have not yet reported 3. Total fee pool includes Advisory revenues from BAC, BARC, C, CS, DB, EVR, JEF, GS, HLI, JPM, LAZ, MC, MS, PIPR, PJT, PWP, UBS . Independents’ fee pool includes Advisory revenues from EVR, HLI, LAZ, MC, PJT, PWP 4. Non-M&A businesses include Underwriting Fees, Commissions and Re lated Revenues, Asset Management and Administration Fees, which are publicly reported revenue line items. In addition, this includes components of Advisory Fees that are considered non-traditional M&A such as restructuring, private capital advisory, fundraising, etc. 5. Extel (previously Institutional Investor) survey released in October 2024 6. Assumes dividends are reinvested. Represents 12/31/2014 – 12/31/2024 7. Includes dividends to Class A shareholders and equivalent amounts distributed to holders of LP units #1 Research Provider among all firms in 2024 on a weighted basis, and most #1 ranked analysts for the second consecutive year5 #1 M&A league table ranking globally among all independent firms in 2024 #1 in Advisory Revenues among Independent Firms and #3 among All Firms in 2024 1,2,3 ~40% Investment Banking SMDs internally promoted (as of 4Q24) ~26% More Investment Banking Senior Managing Directors (SMDs) than the end of 2021 (as of 4Q24) Over 40% Of Total Revenue, on average, over the past five years is from non-M&A businesses 4 565% 10-Year Total Return compared to 243% for the S&P 5006 (as of 12/31/2024) ~$12.5Bn Market cap compared to ~$570mm at IPO in 2006 12% 10-Year Adjusted Net Revenue CAGR (2014 – 2024)1 16 years # of consecutive years of dividend increases 2.3mm Shares repurchased in 2024 $2.6Bn Capital Returned to Shareholders Since 20217 2
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Why Evercore? Broadest independent advisory capabilities Leading private capital advisory and fundraising business and growing in public and private capital markets Leading independent research platform Significant revenue growth opportunities related to enhanced capabilities, as well as recent hiring, promotions, and the number of partners in “ramp mode” #1 in Advisory Revenues among independent firms and #3 among all firms in 20241,2,3 ~26% more Investment Banking Senior Managing Directors than the end of 2021 (as of FY 2024) Best-in-class long-term operating margins Balance sheet light business model High ROE and ROIC Profitable every year since our IPO in 2006 Strong and liquid balance sheet with robust cash position Diversified revenue streams from a wide variety of businesses Expanded Revenue Opportunities Strong Earnings and EPS Growth Opportunity Strong Cash Flow Generation Low Risk Business Model Leading independent investment banking firm globally Diversified revenue stream Strong culture with an emphasis on talent development Sustainable Differentiated Business Model 1. See footnotes 1,2, and 3 on page 2 3
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27.5% 34.3% 25.9% 15.7% 18.6% 24.4% 19.4% 0% 7% 14% 21% 28% 35% 2020 2021 2022 2023 2024 EVR 5-Year Average (2020-2024) 5-Year Peer Average (2020-2024) $0.80 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Quarterly Dividend Per Share ($) Evercore Delivers Best-In-Class Performance And Is A Leader In Growth and Margins 1. Net Revenues and Operating Margins for all periods reflect Adjusted figures on a gross basis as described in the Q4 2024 earn ings release. A reconciliation to the corresponding GAAP figures is available in Appendix at the end of this presentation 2. Peer average includes HLI, LAZ, MC, PJT, and PWP. Reflects reported results for all peers that have reported through February 7, 2025, and consensus figures for those that have not yet reported 3. Includes dividends to Class A shareholders and equivalent amounts distributed to holders of LP units. Totals may not add due to rounding. Share repurchases include net settlement Consistent Dividend Growth Strong Revenue Growth and Operating Margins Relative to Peers1,2 Substantial Capital Return ($ in millions)3 $119 $132 $135 $136 $144 $147 $721 $520 $387 $447 $265 $852 $655 $524 $591 $0 $150 $300 $450 $600 $750 $900 2020 2021 2022 2023 2024 Dividends / Distributions Share Repurchases 12% 8% 0% 2% 4% 6% 8% 10% 12% 14% 10 Yr CAGR Evercore Peer Average 4
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$3.5 $3.3 $2.4 $2.4 $2.2 $1.8 $1.7 $1.7 $1.5 $1.2 $- $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 GS JPM EVR MS HLI JEF LAZ BAC PJT C ($ in billions) Third Largest Investment Bank Based on Advisory Fees in FY 20241,2 1. EVR’s Advisory revenue is to tal Advisory fees (excluding Underwriting revenue) and reflect Adjusted figures. A reconciliation to the corresponding GAAP figures is available in Appendix at the end of this presentation 2. Peer revenue reflects total Advisory fees as reported in public filings in Q4 2024 for all firms that have reported through February 7, 2025, and estimates for firms that have not yet reported 5
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II. Evercore’s Breadth and Depth
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Leading Independent Firm With A Global Presence Note: Bold text denotes Advisory office. * denotes Evercore Affiliate and Strategic Alliance offices 1. As of December 31, 2024 2. SMD count is as December 31, 2024, and includes committed new hires, and known departures/transitions 50+ Countries Where Clients are Served ~2,400 Employees Worldwide1 18 Advisory Offices Globally ~1,475 Advisory Bankers1 12 Countries with Evercore Offices 144 Investment Banking SMDs Globally 2 Americas Boston Chicago Dallas Houston Los Angeles Menlo Park Minneapolis New York San Francisco São Paulo* Tampa Toronto Washington DC West Palm Beach Wilmington Europe / Middle East Dubai Frankfurt London Madrid Paris Tel Aviv Asia/Australia Beijing Hong Kong Mumbai* Seoul* Singapore Sydney* Tokyo Significant expansion in Paris in 2024 Affiliate OfficesEvercore OfficesEvercore Reach 6
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Evercore Has Significantly Broadened And Deepened Sector Coverage, With Continued White Space 1. SMD count is as December 31, 2024, and includes committed new hires, known departures/transitions. Includes sector focused M&A SMDs and other product / specialist Investment Banking SMDs Sector Coverage Evercore in 2010 Evercore Today Energy Financial Institutions Tech, Media, Telecom Healthcare Generalists and Specialty Sectors 46 Investment Banking SMDs as of FY 2010 1441 Investment Banking SMDs as of Q4 2024 Infrastructure, Utilities & Renewables Energy Banking Insurance Investment Management FinTech Tech – Hardware Tech – Software Industrial Technology Media Telecom Medical Services & Technology Pharma Biotech Consumer / Retail General Industrial Aerospace / Defense Paper & Packaging Automotive Chemicals Shipping & Transportation Metals & Mining Financial Sponsors Real Estate Public Sector & Infrastructure Green Tech Other SectorsIndustrialsConsumer / Retail Financial InstitutionsEnergy Tech, Media, Telecom Healthcare 7
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Grown Investment Banking & Equities Business ~9x Since 2010 1. Investment Banking & Equities Revenues on an Adjusted basis reflect the reclassification of earnings related to our equity me thod investments in Luminis and Seneca Evercore of $1.1 million for FY 2024 and to our former equity method investment in G5 of $0.02 million for FY 2010 2. Non-M&A revenues include Underwriting Fees, Commissions and Rela ted Revenues, Asset Management and Administration Fees, and Other Revenue, which are publicly reported revenue line items. In addition, this includes components of Advisory Fees that are considered non-traditional M&A such as restructuring, private capital advisory and fundraising, etc. $0.3 Billion1 FY 2010 Adjusted Investment Banking Revenue $2.8 Billion1 FY 2024 Adjusted Investment Banking & Equities Revenue Capabilities Evercore in 2010 Evercore Today On average for the past five years, and in 2024, our non-M&A businesses accounted for more than 40% of our total revenue2 Strategic Corporate Advisory • Mergers and Acquisitions • Transaction Structuring • Restructuring Capital Markets Advisory Investment Banking & EquitiesInvestment Banking Capital Markets Advisory Private Capital Advisory and Fundraising Advises private asset managers on capitalizing or liquidating their assets through a privately negotiated transaction Strategic Advisory • Mergers and Acquisitions • Strategic Defense & Shareholder Advisory • Special Committee Assignments • Real Estate Strategic Advisory Liability Management & Restructuring Provides independent financial restructuring advice to companies, sponsors, creditors, shareholders and other stakeholders, both in- and out-of-court • Equity Capital Markets • Private Capital Markets and Debt Advisory • Market Risk Management and Hedging Equities • Research • Sales & Trading • Corporate Access & Conferences 8
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III. Opportunities for Future Growth
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Global Announced M&A as a Percent of Global Market Capitalization Remains Near All-Time Low, Presenting Opportunity for Evercore ($ in trillions) 1 Source: LSEG and FactSet, data as of December 31, 2024 1. Global Market Cap as of December 31, 2024 Announced M&A Relative to Market Cap 9 $26 $30 $35 $38 $21 $29 $34 $31 $35 $43 $44 $43 $45 $55 $48 $60 $70 $83 $66 $78 $89 5.3% 7.0% 7.0% 8.2% 9.4% 4.9% 6.2% 6.7% 5.6% 4.6% 5.8% 6.2% 5.7% 4.9% 6.2% 4.4% 3.8% 5.5% 4.1% 2.8% 2.6% 7.1% 8.8% 9.9% 10.5% 13.3% 6.7% 7.0% 8.0% 7.1% 5.3% 7.5% 9.7% 7.7% 6.0% 8.1% 6.3% 5.0% 6.8% 5.2% 3.6% 3.5% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% $ - $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total Global Market Cap Global Announced M&A (Sub $10b) / Global Market Cap Global Announced M&A / Global Market Cap 2024 2014 - 2024 Average 2004 - 2024 Average Global M&A (Sub $10b) as % of Total 2.6% 4.7% 5.6% Global M&A as % of Total 3.5% 6.3% 7.3% M&A activity as a percentage of total global market cap is at the lowest level in the past 20 years
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Global Expansion Be the top advisor to the fastest growing segments of the economy including, Biotech, Fintech, Green Tech / Infrastructure, Technology Further white space in other important sectors (e.g., Healthcare, Industrials, Business Services, Real Estate, Consumer Retail) Enhance focus on large, multinational firms and sellside transactions Client coverage also expanded to include mid- size and growth companies Continue build out of Financial Sponsor coverage team, in conjunction with private capital businesses, driven by our deep client relationships Sector White Space & Client Coverage Our Vision for the Future – Clear Path for Growth Underpinned by our premier talent management, development, collaboration and recruitment strategy Leverage dominant leadership position in Private Capital Advisory (PCA) and Private Funds Group (PFG) Growing continuation fund and LP activity; expand into securitization and retail Broaden fundraising client set Leader across other advisory businesses, including liability management and restructuring, activism/defense, debt advisory private capital markets, spins/splits, special committee Expansion of capabilities (sector & product) and leadership in Equity Capital Markets (ECM) Perennial leadership in Equity Research and remain focused on share gains in Sales and Trading businesses Maintain and expand premier position in EMEA with superior capabilities Focus on sector coverage / geographic build-out in core countries Strengthen global collaboration Top advisor to sovereign wealth funds Selectively build out position in parts of APAC over time 1 10 3 Evercore’s Next Chapter Product Capabilities 2
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Financial Sponsors are a Core and Growing Part of the Market and We are Well- Positioned to Provide 360-Degree Coverage Private Markets Expected to Almost Double in Size by 2029 # of Private Companies on the Rise Investors (e.g., SWF, Pension, E+F, Asset Manager, HNW, etc.) Investors (e.g., SWF, Pension, E+F, Asset Manager, HNW, etc.) Raising Capital Raising Capital Investing Fund Investing Fund Realizing Investments Realizing Investments 1 2 3 Cash Cash Private Markets Set For Continued Growth How Evercore Provides 360-Degree Coverage to Financial Sponsors 11 Evercore’s market leading financial sponsor-related businesses service sponsors comprehensively throughout the entire lifecycle. These businesses include: • Private Capital Advisory (“PCA”) and Private Funds Group (“PFG”) • Strategic Advisory (M&A) – Buy-Side and Sell-Side • Private Capital Markets & Debt Advisory • Equity Capital Markets • Real Estate Strategic Advisory Cumulative AUM ($ trillion) $9T $15T $17T $24T $29T $0T $5T $10T $15T $20T $25T $30T $35T 2018 2021 Q1 2024 2027 2029 Forecast 0 2,000 4,000 6,000 8,000 10,000 12,000 Number of US PE backed companies Number of US domestically listed companies Count Source: Hedge Fund Research, Preqin, iCapital Source: World Federation of Exchanges, World Bank, PitchBook, Haver Analytics, Apollo Chief Economist; as cited in "Outlook for private markets 2025", TorstenSlok, Apollo Global Management, January 2025 ~2x ~2x
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$18.1 $21.5 $17.9 $18.4 $28.3 $22.1 $16.2 $18.7 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 EVR Productivity Peer Average 87 98 112 107 114 130 136 144 40 60 80 100 120 140 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Sector Focused M&A Other Advisory Hiring and Promoting A+ Talent Leads To Additional Growth Opportunities from Ramping2 SMDs and Significant Productive Capacity in the Long-Term # of Investment Banking SMDs1 Investment Banking SMD Productivity3 ($ in millions) 1. FY 2019 onward reflects Pro Forma SMD count whereas FY 2014 - FY 2018 reflects standard end of period SMD count 2. “Ramping defined as SMDs with two years on the platform 3. Advisory revenue productivity figures are calculated using rolling 12 month revenues divided by SMD headc ount on a twelve month lag (e.g. the FY 2024 figures are based on SMD headcount as of FY 2023). New SMD hires and SMD promotions are included in the denominator after the 1 year anniversary of hire/promotion. SMD departures and conversions to Senior Advisor are excluded from the denominator 6 months post departure/conversion date 4. Peer average includes HLI, LAZ, MC, and PJT. Reflects reported results for all peers that have reported through February 7, 2025, and consensus figures for those that have not yet reported 5-year EVR median productivity: $18.7 30+ SMDs in ramp2 mode % Internally Promoted 40% 4 12 24% 27% 29% 35% 32% 40% 39%
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IV. Business Highlights
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Investment Banking and Underwriting Highlights #1 in Advisory Revenues Among Independent Firms in 2024 for the 6th year in a row, and #3 Among All Firms1,2,3 Significant portion of our business stems from deals in the $1 - $5 billion range Our Strategic, Defense and Shareholder Advisory team advised on some of the largest activist defenses in 2024, and Evercore has the largest team of dedicated activist defense professionals on Wall Street Restructuring business is a premier company and creditor advisor, as showcased by leading roles in 2024’s largest and most complex deals including AccentCare, Audacy, Brightspeed, City Brewing, ConvergeOne, Enviva, Eyecare Partners, Innophos, Lasership, Magenta, and Rite Aid Our Private Capital Advisory and Private Funds Group both achieved record years in 2024, and both teams continue to be industry-leading Our Private Capital Markets & Debt Advisory team continues to grow and is the advisor of choice for private capital solutions for corporates and financial sponsors Investment Banking In 2024, Evercore served as lead-left bookrunner on Diamondback Energy’s $2.6 billion follow-on, which was the largest E&P follow-on in history Evercore’s Underwriting business participated in 65 transactions in 2024 Evercore was a bookrunner on nearly all its equity and equity-linked underwritten transactions in 2024 Underwriting 1. Advisory Revenues reflect Adjusted figures on a gross basis as described in the Q4 2024 earnings release. A reconciliation to the corresponding GAAP figures is available in Appendix at the end of this presentation 2. FY 2024 Advisory revenues based on reported quarterly results for 2024 for all firms that have reported through February 7, 2 025. 3. Total fee pool includes Advisory revenues from BAC, BARC, C, CS, DB, EVR,, JEF, GS, HLI, JPM, LAZ, MC, MS, PIPR, PJT, PWP, UB S. Independents’ fee pool includes Advisory revenues from EVR, HLI, LAZ, MC, PJT, PWP 13
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Leading Independent Research and Trading Business 1. Extel (previously Institutional Investor) survey released in October 2024 Evercore ISI: Premier Equities Franchise Macro Focus Economics Surveys Fundamental Coverage In 2024, ranked #1 Firm on a weighted basis among all firms in Extel’s1 (previously Institutional Investor) All-America Equity Research Survey for Overall Research Firm for the 3 rd consecutive year Highest number of #1 ranked analysts for the second time ~45 industry sectors covered ~750 stocks under coverage High quality distribution and corporate access capabilities Complements market leading independent investment banking business (consistent with regulatory requirements) StrategyPolicy 14
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Commitment to Capital Return and A Strong Balance Sheet 1. Subject to our future earnings and our need to maintain a strong liquidity position 2. Includes cash and investment securities held to satisfy near-term compensation obligations We remain committed to our capital return objectives which include1: Growing the per share dividend as earnings increase over time, reflective in our most recent dividend increase in Q1 2024 to $0.80 per share ● 17 th consecutive year of dividend increase Offsetting dilution associated with annual bonus equity and new hire grants through share repurchases often front loaded earlier in the calendar year Returning excess cash not needed for current operations and investment in the business through share repurchases ~$2.4 Billion Cash, Cash Equivalents and Investment Securities as of December 31, 20242 2.3 Million Shares Repurchased in 2024 Strong and liquid balance sheet We hold cash and investments necessary to fund prior deferred cash bonus obligations that are to be paid in cash in the future, operate the business, and make strategic investments Continue to deliver low leverage and strong interest coverage, maintaining its ratios well in excess of amounts required Strong Balance SheetCapital Return 15
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80 130 180 230 280 330 EVR S&P 500 Index S&P Financial Index Peer Average Strong Shareholder Return and Outperformance Against Benchmarks 1. The Stock Performance graph and related table compares the per formance of an investment in our Class A common stock from January 1, 2023, through February 4, 2025, with the S&P 500 Index, the S&P Financial Index, and the peer average index. The graph assumes $100 was invested at the opening of business on January 1, 2023, in each of our Class A common stock, the S&P 500 Index, the S&P Financial Index, and the peer average index. It also assumes that dividends were reinvested on the date of payment without payment of any commissions. The performance shown in the graph represents past performance and should not be considered an indication of future performance 2. Equal weighted index methodology. Peer average includes HLI, LAZ, MC, PJT, and PWP Total Shareholder Return (through 2/4/2025)1 2 Evercore: +64% Peer Average2: +49% S&P 500: +25% S&P Financials: +31% One-Year Return (12/31/23 – 12/31/24) Evercore: +317% Peer Average2: +218% S&P 500: +97% S&P Financials:+74% Five-Year Return (12/31/19 – 12/31/24) Evercore: +565% Peer Average2: +214% S&P 500: +243% S&P Financials:+195% Ten-Year Return (12/31/14 – 12/31/24) 16
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U.S. GAAP Reconciliation to Adjusted Results (Unaudited) V. Appendix
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U.S. GAAP Reconciliation to Adjusted Results (Unaudited) Information in the following financial reconciliations presents the histo rical results of the Company and is presented on an Adjusted basis, which i s a non-generally accepted accounting principles (“non-GAAP”) measure. Adjusted results begin withinformation prepared in accordance with accounting principles generall y 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 other IPO related restricted stock unit awards, as well as Acquisition Related Share Issuances and Unvested Restricted Stock Units, into Class A shares. Evercore believes that the disclosed Adjusted measur es and any adjustments thereto, when presented in conjunctio n with comparable U.S. GAAP measures, are useful to inve stors to compare Evercore’s results across several per iods 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, m easures of financial performance prepared in accordance with U.S. GAAP. Th ese Adjusted amounts are allocated to the Company’s two business segments: Investment Banking & Equities and Investment Management. The differences between Adjusted an d U.S. GAAP results are as follows: Assumed Vesting of Evercore LP Units and Exchange into Class A Shares. In pri or periods, the Company incurred expenses, primarily in Employee Compensation and Benefits, resulting from the vesting of Class J LP Units. The Adjusted results assume substantially all of these LP Units have vested and have been exchanged for C lass A shares. Accordingly, any expense or reversal of expense associated with these units, and related awards, is excluded from Adjusted results, and the noncontr olling interest related to these units is converted to controlling interest. The Company’s Management believes that it is useful to provide the per-share effect associated wit h the assumed conversion of these previously granted equity interests and IPO related restricted stock units, and thus the Adjusted results reflect their exchange into Class A shares. Adjustments Associated with Business Combinations and Divestitures. The f ollowing charges resulting from bus iness combinations and divestiture s have been excluded from the Adjusted results because the Company’s Management believes that operatin g performance is more comparable across periods excluding the effects of these acquisition- related charges: Amortization of Intangible Assets and Other Purchase Accounting-related Amo rtization. Amortization of intangible assets and other purchase acco unting-related amortization from the acquisition of ISI, SFS and certain other acquisitions. Acquisition and Transition Costs. Primarily professional fees incurre d and costs related to transitioning acquisitions or divestitures. Gain on Transfer of Ownership of Mexican Private Equity Business. The gain res ulting from the transfer of ownership of the Mexican Private Equity busi ness in the third quarter of 2016. Gain on Sale of Institutional Trust and Independent Fi duciary business of ETC. The gain resulting from the sale of the Institutional Trust and Indepen dent Fiduciary business of ETC in the fourth quarter of 2017. Foreign Exchange Gains / (Losses). Release of cumulative foreign exchange lo sses resulting from the restructuring of our former equity method inves tment in G5 in the fourth quarter of 2017, the sale and wind-down of our businesses in Mexico in the fourth quarter of 2020 and the redemption of the Company’s interest in L uminis in the third quarter of 2024. Net Loss on Sale of ECB businesses. The net loss resulting from the gain on the sale of the ECB Trust business and the loss on the sale of the remaining ECB bu siness incurred in the third and fourth quarters of 2020, respectively. Gain on Redemption of G5 Debt Security. The gain on the redemption of the G5 debt security in the second quarter of 2021 is excluded from the Adjusted presentation. Gain on Sale of Interests in ABS. The gain on the sale of the Company’s interests in ABS in the first quarter of 2022 and the third quarter of 2024 is exclude df r o mt h e Adjusted Presentation. 17
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U.S. GAAP Reconciliation to Adjusted Results (Unaudited) Special Charges, Including Business Realignment Costs. Expenses asso ciated with impairments of Goodwill and Intangible Assets and other costs rel ated to business changes, including those associated with acquisitions and divestitures, are excluded from the Adjusted results. Income Taxes. Evercore is organized as a series of Limited Liability Companies , Partnerships, C-Corporations an d 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 cert ain other state and local taxes are levied. The assu mption 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 inter est holders is substantially elimi nated and is therefore subject to st atutory tax rates of a C- Corporation under a conventional tax structure in the U.S. and that certai n state and local taxes are reduced accordingly. Excluded from the Company’ s Adjusted results are adjustments related to the impact of the enactment of the Tax Cuts and Jobs Ac t that was signed into law on December 22, 2017, which resulted in a reductio ni ni n c o m et a x rates in the U.S. in 2018 and in future years. The enactment of this tax reform resulted in a charge to the Provision for Income Taxes for the fourth quarte r of 2017 of $143.3 million primarily resulting from the estimated re-measurement of net deferre d tax assets, which relates principally to temporary differences from the step-up in basis associated with the exchange of partnership units, deferred compensation, accumulated other comprehensive income and depreciation of fixed assets and leasehold improvements. The tax reform also resulted in an estimated adjustment to Other Revenue for th e fourth quarter of 2017 of $77.5 million related to the re-measurement of amoun ts due pursuant to our tax receivable agreement, which was reduced due to the lower enacted income tax rates in the U.S. in 2018 and in future years. Presentation of Interest Expense. The Adjusted results present Adjusted Operating Income before interest e xpense on debt, which is included in inte rest expense on a U.S. GAAP basis. In addition, in prior periods, interest expense on short-term repurchase agreements was presented in Other Revenue, net, as the Company's Management believes it is useful to present the spread on net interest resulting from the matched financial assets and liabilities. Presentation of Income (Loss) from Equity Method Investments. The Adjusted results present Income ( Loss) from Equity Method Investments within Revenue as the Company’s Management believes it is a useful presentation. During 2018, the Company’s Adjusted presentation for current and prior perio ds was revised to eliminate the netting of client related expenses, expe nses associated with revenue sharing engagements with third parties and provisions for uncollect ed receivables with their related revenue. The revised presentation re flects the expense and related revenue gross. The Company revised its presentat ion for these expenses in order to align with the tr eatment under U.S. GAAP. There was no impact on Adju sted Operating Income, Net Income or Earnings Per Share. 18
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U.S. GAAP Reconciliation to Adjusted Results (Unaudited) Advisory Revenue & Net Revenues (dollars in thousands) 2024 2023 2022 2021 2020 Advisory Revenue - U.S. GAAP 2,440,605$ 1,963,857 $ 2,392,990 $ 2,751,992 $ 1,755,273 $ Income from Equity Method Investments (1) 1,073 620 1,217 1,337 1,546 Advisory Revenue - Adjusted 2,441,678$ 1,964,477 $ 2,394,207 $ 2,753,329 $ 1,756,819 $ Twelve Months Ended December 31, 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Net Revenues - U.S. GAAP 2,979,593$ 2,425,949 $ 2,762,048 $ 3,289,499 $ 2,263,905 $ 2,008,698 $ 2,064,705 $ 1,704,349 $ 1,440,052 $ 1,223,273 $ 915,858 $ Income from Equity Method Investments (1) 6,231 6,655 7,999 14,161 14,398 10,996 9,294 8,838 6,641 6,050 5,180 Interest Expense on Debt (2) 16,768 16,717 16,850 17,586 18,197 12,917 9,201 9,960 10,248 9,617 8,430 Release of Foreign Exchange Losses from Luminis Redemption (3) 658 - - - - - - - - - - Gain on Sale of Interests in ABS (4) (615) - (1,294) - - - - - - - - Gain on Redemption of G5 Debt Security (5) - - - (4,374) - - - - - - - Mexico Transition - Net Loss on Sale of ECB Businesses (6) - - - - 3,441 - - - - - - Mexico Transition - Release of Foreign Exchange Losses (7) - - - - 27,365 - - - - - - Gain on Sale of Institutional Trust and Independent Fiduciary Business of ETC (8) - - - - - - - (7,808) - - - Foreign Exchange Losses from G5 Transaction (9) - - - - - - - 16,266 - - - Gain on Transfer of Ownership of Mexican Private Equity Business (10) - - - - - - - - (406) - - Other Purchase Accounting-related Amortization (11) - - - - - - - - - 106 211 Adjustment to Tax Receivable Agreement Liability (12) - - - - - - - (77,535) - - - Net Revenues - Adjusted 3,002,635$ 2,449,321 $ 2,785,603 $ 3,316,872 $ 2,327,306 $ 2,032,611 $ 2,083,200 $ 1,654,070 $ 1,456,535 $ 1,239,046 $ 929,679 $ Twelve Months Ended December 31, 19
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U.S. GAAP Reconciliation to Adjusted Results (Unaudited) Operating Income & Net Income (dollars in thousands) 2024 2023 2022 2021 2020 Operating Income - U.S. GAAP 526,914$ 359,135 $ 696,042 $ 1,102,438 $ 526,433 $ Income from Equity Method Investments (1) 6,231 6,655 7,999 14,161 14,398 Interest Expense on Debt (2) 16,768 16,717 16,850 17,586 18,197 Release of Foreign Exchange Losses from Luminis Redemption (3) 658 - - - - Gain on Sale of Interests in ABS (4) (615) - (1,294) - - Gain on Redemption of G5 Debt Security (5) - - - (4,374) - Mexico Transition - Net Loss on Sale of ECB Businesses (6) - - - - 3,441 Mexico Transition - Release of Foreign Exchange Losses (7) - - - - 27,365 Intangible Asset Amortization / Other Purchase Accounting-related Amortization (11) - - - - 1,183 Amortization of LP Units (13) - - - - 1,067 Special Charges, Including Business Realignment Costs (14) 7,305 2,921 3,126 8,554 46,645 Acquisition and Transition Costs (15) - - - 7 562 Operating Income - Adjusted 557,261$ 385,428 $ 722,723 $ 1,138,372 $ 639,291 $ Net Income Attributable to Evercore Inc. - U.S. GAAP 378,279$ 255,479 $ 476,520 $ 740,116 $ 350,574 $ Release of Foreign Exchange Losses from Luminis Redemption (3) 658 - - - - Gain on Sale of Interests in ABS (4) (615) - (1,294) - - Gain on Redemption of G5 Debt Security (5) - - - (4,374) - Mexico Transition - Net Loss on Sale of ECB Businesses (6) - - - - 3,441 Mexico Transition - Release of Foreign Exchange Losses (7) - - - - 27,365 Intangible Asset Amortization / Other Purchase Accounting-related Amortization (11) - - - - 1,183 Income Taxes (12) (2,312) (5,739) (108) (18,602) (29,731) Amortization of LP Units (13) - - - - 1,067 Special Charges, Including Business Realignment Costs (14) 7,305 2,921 3,126 8,554 46,645 Acquisition and Transition Costs (15) - - - 7 562 Noncontrolling Interest (16) 32,446 24,263 50,502 117,484 58,489 Net Income Attributable to Evercore Inc. - Adjusted 415,761$ 276,924 $ 528,746 $ 843,185 $ 459,595 $ Twelve Months Ended December 31, 20
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U.S. GAAP Reconciliation to Adjusted Results (Unaudited) Diluted shares outstanding & key metrics (share amounts in thousands) 2024 2023 2022 2021 2020 Diluted Shares Outstanding - U.S. GAAP 41,646 40,099 41,037 43,321 42,623 LP Units (17) 2,499 2,769 2,970 4,854 5,126 Unvested Restricted Stock Units - Event Based (17) 12 12 12 12 12 Diluted Shares Outstanding - Adjusted 44,157 42,880 44,019 48,187 47,761 Key Metrics: (a) Diluted Earnings Per Share - U.S. GAAP 9.08 $ 6.37 $ 11.61 $ 17.08 $ 8.22 $ Diluted Earnings Per Share - Adjusted 9.42 $ 6.46 $ 12.01 $ 17.50 $ 9.62 $ Operating Margin - U.S. GAAP 17.7% 14.8% 25.2% 33.5% 23.3% Operating Margin - Adjusted 18.6% 15.7% 25.9% 34.3% 27.5% (a) Reconciliations of the key metrics from U.S. GAAP to Adjusted results are a derivative of the reconciliations of their components on the prior pages. Twelve Months Ended December 31, 21
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U.S. GAAP Reconciliation to Adjusted Results (Unaudited) 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 Company’s interests in ABS in the first quarter of 2022 and the third quarter of 2024 is excluded from the Adjusted presentat ion. 5. The gain resulting from the redemption of the G5 debt security in the second quarter of 2021 is excluded from the Adjusted presentation. 6. The net loss resulting from the gain on the sale of the ECB Trust business and the loss on the sale of the remaining ECB business in the third and fourth quarters of 2020, respectively, is excluded from the Adjusted presentation. 7. Release of cumulative foreign exchange losses in the fourth quarter of 2020 resulting from the sale and wind-down of our businesses in Mexico are excluded from the Adjusted presentation. 8. 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 t he Adjusted presentation. 9. Release of cumulative foreign exchange losses resulting from the restructuring of our former equity method investment in G5 in the fourth quarter o f 2017 are excluded from the Adjusted presentation. 10. The gain resulting from the transfer of ownership of the Mexican Private Equity business in the third quarter of 2016 is excluded from the Adjusted presentation. 11. The exclusion from the Adjusted presentation of expenses associated with amortization of intangible assets and other purchase accounting-rela ted amortization from the acquisitions of ISI, SFS and certain other acquisitions. 12. Evercore is organized as a s eries of Limited Liability Companies, Partnerships, C-Corporations and a Public Corporation in the U.S. as the ultimate parent. Certain of the subsidiaries, particularly Everc ore LP, have noncontrolling interests held by manag ement or former members of management. As a resul t, 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 inter est is eliminated through the exchange of Evercore LP units into Class A c ommon 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. Excluded from the Company’s Adjusted results are adjustments, described below, related to th e impact of the enactment of the Tax Cuts and Jobs Act that was signed into law on December 22, 2017, which resulted in a reduction in income tax rates in the U.S. in 2018 and in future years. The enactment of this tax reform resulted in a charge to the Provision for Income Taxes for the fourth quarter of 2017 of $143.3 million primarily resulting from the estimated re-measurement of n et deferred tax assets, which relates principally to temporary differe nces from the step-up in basis associated with the exchange of partnership units, deferred compensation, accumulated other comprehensive income and depreciation of fixed assets and leasehold improvements. The tax reform also resulted in an estimated adjustment to Other Revenue for the fourth quarter of 2017 of $77.5 million related to the re-measurement of amounts due pursuant to our tax receivable agreement, which was reduced due to the lower enacted income tax rates in the U.S. in 2018 and in future years. Footnotes 22
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U.S. GAAP Reconciliation to Adjusted Results (Unaudited) 13. Expenses, or reversal of expenses, incurred from the vesting of Class J LP Units issued in conjunction with the acquisition of ISI are excluded from the Adjusted presentation. 14. 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. Expenses dur ing 2022 that are excluded from the Adjusted presentation relate to charges associated with the prepayment of the Company's Series B Notes during the second quarter, as well as certain professional fees, separation benefits and other charges related to the wind-down of the Company's operations in Mexico. Expenses during 2021 that are excluded from the Adjusted presentation relate to the write-down of certain assets associated with a legacy private equity investment relationship which, consistent with the Company’s inv estment strategy, the Company decided to wind down during the third quarter . Expenses during 2020 that are excluded from the Adjusted presentation relate to separation and transition benefits and related costs as a result of th e Company’s review of its operations and the acceleration of depreciation expense for leasehold improvements and certain other fixed assets in conjunction with the expansion of our headquarters in New York and our business realignment initiatives, as well as charges related to the impairment of assets resulting from the wind-down of our Mexico business. 15. The exclusion from the Adjusted presentation of professional fees in curred and costs related to transitioning acquisitions or divestitures. 16. Reflects an adjustment to eliminate noncontro lling interest related to substantially all Evercore LP partnership units which are assumed to be converted to Class A common stock in the Adjusted presentation. 17. Assumes the vesting, and 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. Footnotes 23