Evercore (EVR) 26 Oct 172017 Q3 Earnings call transcript

Company Profile

Participants

Robert Walsh	Executive Vice President and Chief Financial Officer
Ralph Schlosstein	President and Chief Executive Officer
John Weinberg	Executive Chairman
Jim Mitchell	Buckingham Research
Steven Chubak	Nomura Instinet
Brennan Hawken	UBS
Mike Needham	Bank of America
Devin Ryan	JMP Securities

Call transcript

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Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Evercore Third Quarter and Nine Months 2017 Financial Results Conference Call.

During today's presentation, all parties will be in a listen-only mode.

Following the presentation, the conference will be opened for questions. call recorded conference XX, Thursday, This XXXX. Instructions] is today, being October [Operator like conference turn your would to I now the Chief Officer, host, Financial call Bob Walsh. Evercore's to over ahead. go Please

Robert Walsh

for you. joining and Thank months results Walsh, am financial call. XXXX and Officer. Evercore's morning thank Chief nine today Evercore's Financial third Good for quarter I Bob conference you

and Officer, is York; call Joining announcing who open and here with is XXXX Executive Chairman, available archive to will which me on meaningful we on those This our materially Securities who with our President uncertainties statements. not limited point approximately differ that remind Form to are the conclusion to financial complementary want After measures are the travelling. statements. we and important results. for of at evercore.com. up of In the press which on release, Evercore's press company discussing XX-K, the indicated quarter and will indicated, Form Earlier of hour discussed Exchange Form forward-looking XX on our could non-GAAP a call in risks annual performance. duty financial are is current today be and actual we after Commission, an our factors out and to subject evaluating in to the New reports days filings those prepared of quarterly of forward-looking call, X-K. are call Chief the make outcomes These this will on release that section website statements. call. during conference when XX-Q Schlosstein, but issued a third are Executive website in number today John factors may for various company's want Weinberg, our is to webcast today, we today, we including I are of Ralph is conference presentation this These me company's otherwise that any The believe no Evercore's assumes reports remarks, that unless and forward-looking questions. the include, adjusted to Investor the update the discussion reports it our statements course being I from cause live available you measures, on one these our results that be beginning Relations

For our mentioned, reconciliations, press contained detailed financial disclosures website. these refer on data our you to their is GAAP posted within previously as on which measures the and should release,

evaluate We it believe an important continue basis. that is to to annual Evercore's performance on

our to over As of quarter any are we've Ralph. now timing transaction noted the I'll influenced turn previously, closings. by particular the results for call

Ralph Schlosstein

Riyadh. Thank I New in you, Bob. as indicated in am are John York, Bob And and Bob

period. Once we a So Adjusted We if revenues we results. third and/or matched record quarter the that's year's months. sound reason. the per for nine pleased year-to-date are slightly record achieved with quarter for last again quarter our third uncoordinated the record first for year-to-date the and share earnings the and

of As our month growth in consecutive we fifth our adjusted and this is release per nine period. for year period noted earnings the share this morning, earnings year-over-year

and we and and be We developing investing clients and of by strategy, which steady Equities strong competitive have provide to in broaden coverage we our those driven clients expand continue the that advantage. senior managing business. another the of to three results six Our anticipate talent will directors execution in our a we world-class advisory all be year our in that to seven in as adding services businesses recruiting XXXX

months a we league has a advisory, basis, year-to-date U.S. the And and announced in M&A the league firms trailing number top tables market ranked we on in the advisor remained strong. to three in on Institutional the for advisor Global number XX trailing basis. the weighted among number unweighted independent our metrics independent in be firms months by on on share In the operating transactions, tables Our continue as past research grown and U.S. two independent and Evercore year. XX firm Investor And the materially two a ISI among basis. ranked In recognized all basis Equities, a

excellent testament second the the competitive X as and a analyst, had with Management our assets focused Wealth number on differentiated continues a also quarter building research we've We Investment II to involve. to to of marketplace under management. ranked ending imperative businesses remained number on this and one client both commitment In Management, highest service billion

business We completed fiduciary the institutional trust independent in and our previously also announced mid-October. of sales

strong Our our capital our sustain record return significant to track of shareholders. enable results to us

increasing Board the Our to to share authorizations in of will us our authorization to bonus year growth offsetting from our the dividend. earnings potential repurchase in an in while increased These investments million. XX% by $XXX dividend. allow dividend of per amount new in of returned a total of sustain Directors the form a our and And hires share of any approved annual board quarterly dilution successive commitment tenth increase awards $X.XX quarter, annual the our

financial firm-wide Let briefly results. me now recap our

net period decrease over results reported the principally of of business tax quarter quarter. record opposed effective $X.XX last investment in net were per over third Year-to-date, income achieved third respectively. a a and Year-to-date the comparison as and for record X% count a earnings increase banking and line net million same was prior the adjusted with in the adjusted year. rate. revenues Earnings $XXX.X were strong from share third our These revenues reflect billion declined we and in income year. per by adjusted year share of earnings The an last $X.X XX% share million $X.XX, $XXX.X

terms the the the Equities year compensation seniority Our the higher first of nine the of in ratio and the numbers for of XX% in regained both and at months, business. for recruiting compensation contractual both ration quarter reflecting and level the elimination

months quarter $XX.X XX.X% costs non-compensation the and quarter of discipline. to respectively. revenues, Third the margins as or first continue XX.X% we XX.X% were and were third for maintain nine cost Operating million

to market me Let environment advisory turn business. the advisory John? call over and our discuss John to the now current

John Weinberg

you, on which a strategic, by the spend market Ralph. just Client driven Thank I to from broadly minute in activism. actively nine first environment And ranging transactions the favorable. remains of consolidating will M&A XXXX continues multiple catalysts pursue months

volume of range growth from are million. and $X both year-over-year the seeing million transactions $X notable transactions dollar that number in to announced We with the in the

activity. remained broadly pickup extend Europe equity year. trading markets budgets for and combinative and in by regulatory changes of issuance financed. the decline activity quarter first in borrower volumes M&A nine next continue marketplace. of in in to prior and scheduled the relative the equity the allowing We coupled are X% nine in encouraged months and to the sponsor are first months XXXX. This to maturities first increased headwinds to be the transactions increase Credit creating U.S. the research year reduced with trend sell-side U.S.

namely remain drive economy that equity about of levels available Looking volume high ahead, constructive believe we M&A which growing of landscape the health place credit prices, business interest rates, low core elements and strong confidence. remained in M&A and

strong. out backlogs active remain Our teams and are

investment spend a Now our results. minute let on me banking

same Year-to-date, quarter, million nine business Net over revenues months. investment and year. a an year million same for banking over the were the XX% increase Our and million XX% last revenues a The were $XX.X the down year. period contribution slightly year-to-date, quarter billion same increase the period the $X.X X% had first $XXX.X and record $XXX.X third last net operating was prior quarter, increase. for versus third

margin and operating year-to-date. in exceeded Our the XX% quarter

activity For year $XXX.X ago. revenues XX% up year-over-year. Year-to-date, for business. The the than quarter strong in our advisory and including capital a capabilities from of million $XXX.X quarter, X% multiple compensation advisory of revenues revenues higher the reflected advisory were sectors contributions million, are advisory healthy

advisory million we directors XX% with the we months our remained retail. ended active Year-to-date, of revenues ago. restructuring, the with to underwriting and XXXX. XXXX, million million XXth, of XX September a Productivity XXth, active from September $XX the ended revenues for ECM, XX and year industries million, a from including XX months for In year. globally senior energy transportation across improvement continue the XX million managing $XX.X several in other for XX.X up were be For

year-to-date As the of XX possible Senior Ralph to two recruits Directors. complete. the noted, we've to And will excited announced analyst .We new ended one Managing add largest Directors Advisory and X with class five in it's advisory we also Senior welcomed our to new the our before Managing years quarter have recently firm are we more

Management Ralph me now to address the turn back call Equities business. to the and Investment Let

Ralph Schlosstein

Year-to-date, underwriting. $XXX.X $XX.X the of to revenues John. revenues Thanks underwriting. including in attributable net contributed net attributable business Evercore $X.X million quarter million to $XX.X ISI of contributed including million million the

volumes, As continuing use John for environment weak and has remains for Equities the noted lower how they change by two the clients reevaluate earlier, of causing volatility budgets. a post pay with many Method research and declines client's our of catalyst to challenging research. in headwinds

them at warrants we add advice appropriate and significant that to assure are compensation. value We with active to continue deliver and dialog that will service

address CEO We likely these two our remain Directors. highest Mike confident The analyst pleased This well the paid year business strong just changes approach year market end, addition will is market to we the research investment as a be clients. are Europe that as that our but method globally Senior quality to talented to will to and confirms have to equity be the that be we quality recent the Xnd, added Paliotta in to the the very to research team that as highest analysis increasingly reduce spend a that survey of differentiated team have the Managing and to the of strategy players. that team announcing very it believe we A of of and not commentary clients research, the is effective deliver this the starting field best II As clients products. with plus requires senior we on spend two very November addition research the

revenues briefly for Let Management and reported me Management million respectively new $X.X about $XX and operating Investment income our million business. now Investment quarter. of talk the

United our period, $XX and Mexico. market operating was the margin results XX.X%. and operating year-to-date money States from Investment Management the $XX.X million. the business contributions was year-to-date income revenues Management These The reflect predominately the in in business For net were Wealth million

third Independent from of X% management And I XXXX. said $X billion and increase Trust Fiduciary the businesses of under in sale as mid-October consolidate course an our XX, of completed June to in increased Assets Business. the we from quarter, earlier,

as well Wealth business Management comments in said Money non-compensation As investment Mexico. and building our financial we our Bob? to on will GAAP results management on Management enhancing as provide matters. on business consistently, be on Bob on our further in focus continues have now costs other several and

Robert Walsh

Thank the to $XX.X disposition a period. revenues our Consistent per with and basis results, a and income quarter including nine million $XXX.X and our million are quarter the they related to Beginning period, billion a items certain for for and with the for Evercore period basis related record was were our the basis. on attributable adjusted were earnings to acquisition record as prior $XXX.X business. directly $X.XX and periods, results month the GAAP an month GAAP third you, months and record $X.XX for for adjusted quarter million cost excludes that just nine Ralph. and a Equities our nine net on Inc. share on were Net a GAAP $X.X

As in in conjunction interest cost Units with adjusted with and prior associated ISI LP granted acquisition. the quarters, divesting we our

the interests outstanding approved In of the board the which our Class exchange E service million Units. J of the vast of $X.X on LP based LP related into completion XXXX. the February XXth, LP Class quarter, expenses X.X we Class million July, For through H to all Unites

to $X LP J incurred During related to Class X.X H LP we the interests Unites prior expense the this. and expense the for the quarter, million exchange million Class of following of

$XX approximately Independent have a be of fourth October our the and Fiduciary in million. results. a of and As gain approximated price pretax million for on we've closed of previously, on of $XX Institutional sales sale which ETC GAAP business, Investment accounting Trust the noted Management on would will On for million this purchase business revenues included quarter the purposed X.X generated XX of quarter third we

for compensation there vast adjusted months. the cash quarter, shares. non-compensation the many of costs, for past and in offsetting more the were for was quarter, and liabilities call taxed current we our X% a $XX With during from the a of XX those effective with We the first position XX% proposed the tax was our at taxes, XX.X% to rate repurchase of factors Turning to compared repurchased for earlier in shares, our sequentially count U.S. year-end shares final I'm [ph] year-over-year. the to productions. at share marketable quarter tax institutions, driven of for $XXX.X lower namely rate meaningful costs of million - count, our share our shares regard $XX,XXX of have rates quarter at employee adopted adjusted only tax million. new million during the million on XX.X to over by year. by assets million the XXX the at in I'll U.S. for granted the comparison benefit remains talent now and the benefit, the as to line year. compensation credit the the and two attract the in per than the quarter financial prior accounting our modestly limit period this remarks. securities year earnings discussed prior are impacted the share XX and The are $XX.XX, draw count XX.X% does as did third year. exceeding the it same average quarter Like These corporate Ralph months transactions, stock hold up quarter nine last financial and not share time end beginning for awards in turn we cash as this are reform during third current of high issued to was sorry, it strong local and see that earnings and magnitude With over an visibility of We - principally GAAP, million majority could of on cost X.X stay with results the lowering quarter We the regard

Ralph Schlosstein

Okay.

few conclude me observations. Let with a

XXXX Our XXXX, for both team of for as strongly significant final beginning has good momentum. months XXXX with finishing we momentum enter the and

dialogues client encouraging. the of active is Our prospective are very level and client activity

of announcements timing the to and always, predict. as important is Although deal difficult closings

significant are market SMDs of expand team steadily grow and achieving share, Analysts. Equity productivity milestones We and Advisory Research our as increase we

have significant we progress remains this While far, made business. us good still so opportunity our grow year to for

our not outside advisory coverage persevere opportunities of cover States, today to to approach sectors and we pursuit will we and As XXXX, Europe that our we do the of see our in partners exceptional and regions further United adequately lead leveraging we capabilities. other broaden building our global

advisory opportunity will headwinds and capital comes teams the effect. see continue contributing are all capabilities, as strongly alternatives in We and Our and Equities XXXX XXXX certainly and business that investment raisings. two in advisory that continued capital into growth we expect the equities method for of in into services the

will in a inevitably exceptional almost in market case we profitably team that our businesses, the of on service focused is of as shrinking revenue what grow plus clients. share pool. Confident can a players Here all our delivering stay A to be

and valued clients. our that intellectual resonate all our to on excited advice Thank the are you. I'll of the both our questions. in We lines continue believe independent by providing to businesses capital opportunities focus and now be and will highly open about

Operator

Thank you, sir.

Research. will begin comes Mitchell now the Our first Buckingham question-and-answer We [Operator the session. Jim from line Instructions] of with question

Your line open. is now

Jim Mitchell

environment pretty specific of outlook, a is you the more not continue what question, picture got think the your I think seem say. data lot you I this if still And little of the outperform I in positive you the most a the think share you gains, optimistic look flat relatively but the it's we outlook on Hey, bases do to give market pushback wanted you bit backdrop first for data your a get about Evercore year-to-date a from do clients and sort of around and it been think to that think sense of M&A? good sort down just bigger M&A guys how industry purely just a is non-M&A Maybe at on of the ability for morning. excitement, we've flat when

Ralph Schlosstein

Okay.

couple up One, independent most aspects you to so for firms are the look couple I exceptions a have of advisory revenues. think a the have this. part reported far with there of if

all So firms, larger the from clearly independent move there a while highlight actually trailing, the basis And the independent as up earlier share I you and to firms, not continued disproportionately I we've is are in among globally the in all among mentioned we the year-to-date league on prominent U.S. second finishes, our tenth in know market highest where are are among position didn't firms seventh that. in the share, tables but the had. and ever from very think the revenue we two I market is the firms first statistics and U.S. in benefiting shows firms. that it independent And a globally only which

market in pretty all among share is So M&A consistently increasing. firms, activity our

have have But wallet second revenue the but so is covered the time, period get also clearly those of fee And markets or raising in debt some that probably a to positions associated only for well, generating is might positive we're capital we somewhat the sole broader advisory, service. our by cetera. situations. equity advisory able but that provide fund et that clients cases specifically actually thing invested it's of with on longer we broadening not by we whether share that because only not sustain it a of completely we the affects capabilities even us more as helped clients modest managers our that advisory, have for services capital to in benefited The alternative which

but I a are So think there of sustainable. on them lot going are of there all things

John Weinberg

volume and that well what thing very important. for M&A to us philosophically we just clearly we which is one do I view where add

are on it focused basis do fronts will perspective, becoming more hopefully advisory over will We I like more and our more is of making think companies. our on even progress number a perspective we and an that advisors breath bring relationships increasing what time very of from feel to as on our And we're from on assignments. important

as larger your market, our that market And perspective above make I to is in we're clearly share of think focus we're increasingly what clients. and above clients we market question a is is the absolute so but building the serving number our addressing that sure hope

Jim Mitchell

think Okay, mentioned the it's to future areas helpful. sectors Ralph it they opportunities, is like And or of for strong would in you when sectors? hires, it's I as the - have mentioned specific you some that non-U.S. what we other your you in about investment think might be is too terms geographies, be biggest the or focus whether it

Ralph Schlosstein

want get to John, you that?

John Weinberg

on Sure. They're you said on know been and we're work the to our that. sector hard before is something to we focus continue a hire date big - be And on. one announced of focusing that's be well, to as and continuing focused up certainly consumer there has we we haven't you that to

expanding breath Europe, are we're looking at so looking and and We Europe in that. footprint at our

build to good business, feel continue got also. and our like dialogues we we're industrial that look on We that we continuing momentum you at in saw to that added, we've

Jim Mitchell

Thanks. Great. Okay.

Operator

you. Thank

Chubak line question comes next Nomura Our Steven Instinet. from of the from

now Your open. line is

Steven Chubak

good Hi, morning.

for lot call, execution focus with awards that you to that side Ralph your on headwinds a capabilities us they strong. just equity both offering our of really you of and ISI some terms research term whether execution to it's start based how is the discussions. better implementation platforms investors longer it's latest quality. spoke strategy I to help Evercore And strong there emphasis that have you the a on just on wanted seeing the from research come But fact the a But of the was wonder general business? greater some have differentiating quite lot method I we're there. between that And challenges last strategy, won with in you quarter's on and of and really are still a execution up need regulatory fits relating it's question you So garnered hoping could on broader topic of offering into understand to compliment sited

Ralph Schlosstein

on U.S. our historically we a capabilities. which without as our to of own to have regard clients paying the capacity still contribution way in have or for sort a they research have and Sure, execution very our and used capability do use the extraordinary their competitive research this of

they and have we electronically a execution to have very capability touch, are best allows So that continue so to high execution that very, to that clients quality say continue. will high getting legitimately both

arms business a we hand, as are On plenty can we a low liquidity of business. technology get scale think are going on the equity that, quite into to not firms honestly a race provider. that an business, that's There other do large a return and

one you're going that to in us so And not direction. step see quarter more make

Steven Chubak

Thanks strategy for certainly that quite it's and color Ralph, things well. quite this and helpful clarifies all parse

more one for question Just me…

Ralph Schlosstein

there's interesting the I the would the of public if CEO spoke our of we're U.S. that have of to competitors and - that say in independent, boards while talk we the also increases that both that our an with globally. lunch position significantly we're - that. you of investment he corporations have of are directors, importance of part we And the it's basically important companies and some one and had longingly recently includes and in certainly firm question capital major I because in leader research fact most completely the visibility banking intellectual sectors the and no of is to

companies so positive on have some public effect the the the important with company U.S. of a it of in And really does footprint quite most the

Steven Chubak

be seasonal within deal business, the expectation industry included we it's the data the we public you've And downward suggest just less of one reluctant the typical it may like year this of see pace public quarter to not typically see more patterns that the faster me reliable backlog seasonality has for and strength the across fourth is certainly where the Understood. pattern. proven that but given I the revenues, given as XQ indicator end, trajectory just certainly while for ahead feels from quarter to future been closings know last an quarter something yourselves just

if hoping us uplift I So can that see XQ? some into could whether in just insight you was we give seasonal

Ralph Schlosstein

we That's a that answer. never sort of question

Steven Chubak

or little a nothing. something Maybe

Ralph Schlosstein

I to Well, in lands say getting look that a about think that think got how - December-January well my to but we impossible said we're whether as positioned, remarks, nothing. is to closing is something which why in you're is except predict Except that good say there something momentum truly we've nothing answer.

Steven Chubak

Well, thanks for indulging extent. me to an

Ralph Schlosstein

York, No problem. in was Okay. I New less indulging. I'd be

Operator

you. Thank

Our next Brennan the comes line of from Hawken from question UBS.

Your now line open. is

Brennan Hawken

business the to think Coming or should investments visibility of few any you've or - frame us over coming greater that modeling you any think give you of advisory quarters both results to you in as about the to your here, business spoken the Thanks. start that give in impact as have on greater can well we the impact do color we the any equities last how and M&A might year us about you two? investments as core and can how impact

Ralph Schlosstein

non-answer that the to be it different the question. quarter in any because we last at precise Well, to final We've don't as obviously XX% last from third XX% comp we we the this gave that results for had accrual XX.X% whether the accrual at said our should of year, to I at Okay. beginning in our reasons - that kept point, set the last as know in the that for year. the we answer at opposed this

a than beginning little and everyone as hired numbers and any with get they to of higher today of general the XX% in predominantly of we matter, of tend in the higher and to cost reason in The the did at level a the equal work of economic, higher just some of XX% hiring full is up stub That's the anticipated firm. them stub indicated. that generally revenue you the remind running year terms not the year comp is is works seniority. exception rather and the we way of somewhat year completely a in we rule the significantly the to average the way is terms visible that The revenue, we in in roughly first production year on that that it's and As get but have is year. of level to first full very typically someone's full that part the John

- that just gave only that second of year. The year can't hopefully we obviously be thing answer this it's in I next that uptick really in will that the years to seniority through because I modest we rather the investment, by the you amazing happy say pig that Brennan. amount matter, revenues, some hiring to we're could that in convoluted want two anticipate at the point a So pig, pig, could general it's and takes affect it's a is as do not going - and long and too but not an a don't snake offset going be revenues

So there as that's to that? could do. about is can good add anything Bob, I else as you

Robert Walsh

it hires, who months XX which now, now rate strong of it color for than John's remarks, indicator, on have again substandard you if it but under to results. sector good bring when you bring and relations class the has put has we we've on represented it we enter beginning tracked And those mentioned to ramp tie are some clients a where the Ralph new we to Just to our new on more time we the as history of quite as as people for look at with takes clients, been carefully Evercore Ralph, visibility. have been sometime industrials,

Ralph Schlosstein

for until either was I've And given get this believe we'd of range quickly. on business have years that because that continue add three those and of two toward XX% we to out. year ratio. we three we larger end steady than in eight in is said when said more I two get the I the expect opportunity is to Brennan, of year with you expect think that we pretty, I But we I shareholder at just range we very did invest had this been years the be to our this the be XX%. make to I to can mid thing to that is years doing to the that. XX's an combination comp lower going run make year, said we And XX% to for we in - you the that we to firm a why will hiring value or to the to sacrifice of shareholders join be any two would that fact would call we number Yeah. XX% value number a that in all of comp progress make, of real - for in year make a And what clear and same out, expect stopped shared steady this or however investment If hire to to that progress I ratio senior year which our that more if to the which we're I every beginning the make future this a hires that

we've think So this matter. been consistent I frighteningly on

Brennan Hawken

Yeah.

- made letter see One you Bob. to you accept. know and you that point action firms as the Ralph Thanks, saw, on fair. if that's question I can following-up up Steve don't right, All the but on allowing Okay. no put here execution,

things indicated execution is want research model, and different if opportunity capabilities of think but joining you're global will just wanted that got us help So least you go base can you represent there not go you've got interested Certainly direction, a we mean that you kind of about firms an kind an that to some be race, an why and go shift globally. at I ISI you tied arms apply decide you only? the what could that what if in you subscription these to to in expense

Ralph Schlosstein

us to which us have including can provide do they've most most discerning roughly us of that certainly provide None the who we data want execution. But and because on largest of do with some best the with Bob we you to trade circumstances in this that in they reiterate, world call, the many clients in have concluded the I trade afterward.

looked say on a how constituted would obviously is the be execution best certainly So we today in a obviously But as dissatisfaction seriously will the lot, our at of cost world no that today world look is that. the and haven't If the or it services will evolves than which it. less at. evolves, haven't we significantly shows added a today it looked exceeds why at anticipate provides as part there those providing something we even clients hard that we service significantly it's we're increases significant that providing revenue of which analysis

Brennan Hawken

that. for Thanks

Ralph Schlosstein

Okay.

and they one that to the month's us go that later going and do U.S. decided thing they I The happen other anyone, one as who contact rapidly client thing as were then mean going have to personally Brennan I as another is clients know you evolving well there is told to in to want this, in the do weren't is with, been have Europe thing a on they they that.

all And so we them clients, time this is to an story. very our something talk be is going this clearly close and to to evolving the we're

Brennan Hawken

around changed. this you. had can turn Thank we Yeah,

Ralph Schlosstein

did you not we I have But head our in assure about it, Exactly. sands the that.

Brennan Hawken

didn't the the for I color. Thanks case. all was that assume

Ralph Schlosstein

Okay.

Operator

you. Thank

line comes America. Mike question Our the from next Bank of Needham from of

Your line now is open.

Mike Needham

Europe better. morning. touched on, a I was Hey, you hoping good little guys on getting bit

coming be your your your business Europe active actual like years? things it improve, and pipeline in of where leading in the wondering bigger to mandates is meaningfully think is going you do part in Just to

Ralph Schlosstein

we our pan-European Europe world, competitors. a a our the concentration in independent little our business firm Well, largest not of France to probably our in business of and say business is but to compared Italy it it's two in U.K. terms the certainly Switzerland bit more where that's Europe lower. competitors of and but in Spain two Germany of in a based lots do it's revenues, than terms is and largest share talent don't our of our revenues in in And and as independent

also births John me than Europe you two are basis largest competitors assuming we'll you are our clear can look of But to keep the an a can't way expect grow one us. Europe I talent, of likely independent the there growth I a because if that is find asked also to revenues a make the who other out percentage M&A see I so it's think lower has A, now the in rather U.S. our revenues of we answer the years, But investments more. Europe So Europe our find Europe from is can there revenues in indicated their not bit plus the up little ingredients are have of in that environment we revenues U.S. we on, pick that for clearly terribly of to in talent little growth firm our a we bit keep our mind say of the U.S. surprising. total proportion in bit healthy three if mind, U.S. firm in both than in by the more kick than would we going next than a as advisory one it's assuming a on faster and more the and questions of or because and his generally percentage forward economic opportunity that's lagged of a an also our would if revenues find our do the at starting early a you wait. as in finally a A would and

Robert Walsh

Ralph clearly is for is said I just we would opportunity which that Ralph - what a and color Europe add more us little understand major I think our a that Europe. I

thinking be that so with leaders we it. them business spending be and we'll that growing And our more of business and European at to time really do about how grow looking

stand, we they where are to our terms that in good we of very bring feel business things and good actually about some there, In continue mandates meaningful.

So really we to way clearly now anticipate come there that and our the people as out market more some have good very hard. we continues working said Ralph will as recover,

be good point for but to focus clearly us. we it's of that about a going business, So feel

Mike Needham

Thanks. Thank you. much for to or it's it. you bigger set advantage stopping something Got over of Okay. to bankers And is a that raised, do given need for well do of the it you you time everybody to like up I capital financial sponsors doesn't you sponsors, a that getting feel become the take trends? dedicated financial look be as think want they've up like amount client it's

Ralph Schlosstein

you John, want to get that or?

John Weinberg

Sure. Go ahead, Ralph.

Ralph Schlosstein

I'll your as time. said to you Now, ahead, comment add this go

John Weinberg

that and clients are some financial very Okay. sponsors. obviously Sure. excellent recognize important source of truly we have who We it's activity

sectors we're there those very we you're and have with very, sponsors for efforts to absolutely and As along be sense to aligned their said right capital that coverage continues financial contacts say I'd very, have have raising in good strong sectors. industry portfolio. know, source not we that. you And intimate probably very of a that, Having

good good And will about whether I and we and those resources to now good that add share we more shouldn't a would thinking are putting so that. all of the right that we time we're But about very business. have relationships against very - we're focus time surprising over opportunities. fact right And feel pretty the say it we be it the doing resources wouldn't

Ralph Schlosstein

Yeah.

is who doing and industry where private different we're embedded practice. internally sponsors bit the test we're - can than we to their by what with only of how more industry versus involved we've having much equity not we some financial business that to some look but actually if in at enhanced industry firms, done industry an And the counterparts one generalist industry bankers if firms. quite we number said our much fact John to in and in had a of as leading that's that do you the are independent And other with places coverage discussion going would deeply approaches any if a and others. real some number question effort it's actually If revenues would from better transactions see effort also in is of an topic a already that we

Mike Needham

Okay. Thanks for elaborating.

Operator

you. Thank

comes Securities. Ryan line Our next from from of JMP Devin question the

open. Your line now is

Devin Ryan

Good Great. morning, guys.

Ralph Schlosstein

Hey, you? Devin. are How

Devin Ryan

Busy thanks. morning. well, Doing

your the So the maybe I some of peers first a on advisory I think been I know just firm's it's there. that opportunity, on guess but something a focused bit capital little structure here maybe that opportunity, larger are it's one growing and

get sense about And of market, is a think how a and market relative just then big how to size of so the where that course love of addressable it of I potential guys there? to maybe you the

Ralph Schlosstein

as as the Okay. not market. Well, first of all, M&A it's large certainly

advisory us say small I'm circumstances but relatively to more pay which secondary that talking So is relative And it's still smallish M&A advisory from keep capital alternatives and not a that's debt specifically that about in aside our business when it's and I M&A advisory. than that sort ECM to advisory business. restructuring growing still that bigger the which - service for probably rapidly the keeping in compared but mind and of huge compared raising to is and clients and that

sole to I those that include we in really compared sustain second tax advisor done years throughout could longer which what a really of much a a or that would or for time is The position three the capability point ago. deep important four to Devin us though transaction capabilities having allows or is and advisor lead have

events at the fee you year, had of And so, or up tally those. typically or of M&A that the contribution more debt involved And those proportion what advisory. have at the fees end some is the events in, we were of of okay from all of from ECM look XX% if input our answer than we both advisory

financing would four Now ago, agencies like that, Evercore that or capital seven a would be or was two circumstance, in launched in great been In hour show that cases with markets advisor longer minimus circumstance co-advisor we client. a of up have the trips an And we a kin hours might rating the to there might to second be had the advisory But in of the years wouldn't as days ours. of in to do a it was to before probably this the long fee their the recently in some they the been financing said have point without gotten advisor provide would launched the okay, to particular we and debt but have before of and work, in to a weeks the second to to fees. allows by the much that would X strategic of been have transaction something where brought XX-XX dollars we was been hired advisory a how two it's period example client trusted brought ten sharing billion compared the need advisory deal have time. us de a sustain for a relationship and would

Devin Ryan

that's the just value Okay, size. large allocation just around that initially powerful. the the on up positive announcements, buyback maybe that we follow-up outlook, with color but in saw trajectory it the authorization catch all about directional buyback, said be I in earnings I does kind think at because step shares that up reflect is a very the pretty am the allocation capital some so playing trying XX% a and on terrific, I view or and nearly the and how level it of the would know authorization of to that here the is the was big number? to derived capital sounds increase that question guess of

Ralph Schlosstein

to or six board three every go two like or this rather months every that answer would once the years think prefer is a than year, simple. our I we it's something on Well, to

years. our cash six think to and than adjusted higher or through repurchases. that five do of allocation pretty earnings. be tend or our consistent I so we our last Number of tend capital XXX% share earnings, return which policies combination been have to one, We for a the dividends

historically, the whereas XX% than XX% been had have XX% ratio plus growing and dividend the been by board for our XX%, this earnings increasing been increase bit in as voted the to XX%. because XX% think drifted The a I XX% our payout the annually we've obviously quite faster below we've board to historically, range. time increase dividend

the a than basically dividends of capital shares would topic never years that bit plus sufficient balance it this and last And at discussion is and provided few up. more a perhaps value for way also of the in look hour share nothing couple authorization came little I so we that the absolutely have repurchases. between say about to I the the increase the They And in board board more of we says has had share the dividend years the repurchases. over return about topic the half it

Devin Ryan

Got it.

thanks much, Terrific, Ralph. Okay. so

Ralph Schlosstein

right. All

Operator

would no be I you. at Schlosstein to like the remarks. There to this to for time. over turn Ralph questions appears any closing call now Thank

Ralph Schlosstein

would other the what point Now, And in all maybe get we quarter, to back to continues, share purchasing decent work. luck, Devin and work hope historically, I produce I just we'll have a at pretty just and do to expect you one and of of lot fourth back the guess below so hopefully for been them if just comp. you that Alright, but we've look thanks where it's everybody. okay. we've make issued

Operator

nine This results conference call. XXXX financial Evercore third months and concludes quarter today's

now may You disconnect.

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