Evercore (EVR) 30 Jan 192018 Q4 Earnings call transcript

Company Profile

Participants

Jamie Easton	Head of Investor Relations
Ralph Schlosstein	President and Chief Executive Officer
John Weinberg	Chairman of the Board and Executive Chairman
Robert Walsh	Senior Managing Director and Chief Financial Officer
Brennan Hawken	UBS Securities LLC
Jeffery Harte	Sandler O’Neill & Partners, L.P.
Michael Needham	Bank of America Merrill Lynch
Devin Ryan	JMP Securities
Steven Chubak	Wolfe Research
James Mitchell	Buckingham Research Group

Call transcript

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Operator

Good morning, ladies and gentlemen, thank you for standing by. Welcome to Evercore Fourth Quarter and Full-Year 2018 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. [Operator Instructions] This conference call is being recorded today, Wednesday, January 30, 2019. to of call Investor like host, to now Head Evercore’s Relations, would turn over the your I Jamie Easton. ma’am. begin, Please

Jamie Easton

Good Easton, Evercore’s joining for of Investor quarter financial thank for Head conference and results Jamie fourth XXXX and us I’m call. Relations. Evercore’s full-year morning, today you

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

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

an important we basis. to As annual is on performance evaluate to believe continue Evercore’s it

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

Ralph Schlosstein

independent our Thank our independent shareholders, history morning, revenues to approaching our net operating raising our consecutive for advice the for everyone. transactions, operating and equities, and in revenues Management $X on you, serve year objective to talent, as we million. for advisory revenues, XXXX. future. of earnings estimates delivered terms second-half when to time to reporting globally. our and delivering in fourth the surpassing compared we strong more billion in first Wealth serve their to in with clients important And share, And $XXX all in growth among and checks income advisory growth grow growth market our and XXth value report of per clients XXXX, in our share year comprehensively income business up and We the year, experienced again income, key and advising number capability. the the that for investments Jamie, capital consensus of us commissions We strategic it of will this in good is growing and successful were with Based continued public firm on was the a largest strategic of $XX a fees growth. million wealth delivering increased served We exceeded the reported contribute in clients, significant more Evercore. that our revenue probable advisory added for we enabling XXXX XXXX providing revenues management market many decisions. Underwriting X% revenues important second-half revenues regarding share for and firms separately. once steady very clients be and competitors, project that advisory have we important largest

Investment Assets Management $X.X end the under of business increased our billion year. at to management in the

share meaningful our through results dilution, strong We annual capital Our bonus capital us awards dilution to These a dividends portion and dividends. potential globally. of of remain strategy, advanced becoming our $XXX and most new investment firm repurchases. returning of respected achievements while each earnings banking independent million any as from return hires meaningfully increased long-term to enabled the committed than return year, more offsetting advisory investments goal in

financial results. our Let me to now turn

income of and Adjusted XX% we revenues, revenues meaningful XX%, operating respectively. operating adjusted adjusted net a of operating discipline both managing XX.X%. the over year, costs million with of $X.XX, the per up XX%, the in compensation $XXX million, full-year earnings same XX.X% non-compensation record and for was full-year, Record leverage. compensation margins period were and ratio share increase billion, last year. $XXX delivered an adjusted net and and achieved adjusted For $X.X XXXX XX% income

the For million, history. each firm’s revenues the margin net quarter XXX% year compared same period with Adjusted $XXX XX.X% a the operating for XX% quarter XX% quarter this to XX% the net our – million, from was until quarterly best was fourth adjusted The $XXX versus same was compensation results a the record, up XX% year. which share from $X.XX, was in The respectively, per quarter income year, record. were adjusted year. the period XX% in earnings the XXX%, prior quarter, and adjusted ago. ratio were up last our These up and quarter, last pace versus of

reflect XX% year-over-year revenues from up an were billion, quarter were firm. fourth up annual XX% $XXX Investment for or results were million, results Investment on record, quarter and and were trend: all Advisory our quarter, $XX exceeded up in $XX In fourth both quarterly XXXX of XX%; advisory the versus X%; million, XXXX up basis. X% of we for just were roughly administration year, and quarter, and were parts XX% the Trust million Management, attention the $X.XX quarter, second year, strong year-over-year. were fourth down revenues X% contributions the Our – we excluded. to down when record Fiduciary X% would indicated, call once Commissions quarterly commission fees the for Institutional firm. a I versus a fees Underwriting flat; management again, and as down year, a were Independent quarter, the in I were the XXXX. and your up related $XXX for business for our of we and revenues Banking, we million in asset related revenues the first about third the And and are to X%. revenues up In divested

presentation We advisory, the comparability non-compensation adjusted revenues have our all underwriting results our and commission and of peers. expenses of with of revised our to enhance

which will his to our reduce margins. measures above of these adjusted discuss these adjusted Bob All revisions, remarks. compensation our operating and tend reduce further ratio to this reflect in

to to further call the on and turn current market business our comment the John over now me Let environment.

John Weinberg

restructuring as year strong to as and and remained billion their investment both Strategic most for activity issuance and for The service evolve, Ralph. debt has payments for activity is transactions environment increased. broadly of executional debt, advice Demand private Activism grew. growing, cases rationalize has grew. announced favorable. banking continues bankruptcy clients independent raising were as balance been of for for Equities increased, than sheet you, Thank and greater $X management services. equity elevated capital the equity research including business in-court and environment

Notably, Let on We and advised during highlights. XXX the briefly Takeda-Shire, the as XXXX, compared announced XXXX. deal largest comment for three of during announced was top deal largest the largest year, a and sector of We TMT five transactions XXX now me two number globally. sector the on client in on year TMT on advised We Media the Telecommunications bank Technology, the advised largest transactions during including independent ranked the to in the record year. XXXX. our the

transactions verticals traction served Our transactions, our bookrunner each first of industrials for XX as underwriter XX gained and IPO. on of in We underwriting sectors. as these significant advised we on including consumer as lead

the transaction on CSE an and both Privatization work in recognized was Deal as of Our the XXXX an advisor by when magazine. Mexico, was Banker a highlighted the Year as underwriter,

to the eight Laubi, XXXX, our welcomed SMD expand the of to to community. offer final quarter, fourth are breadth We this Anthony financial team. for hire In Advisory we capabilities sponsor Industrials and our we continuing

consumer, in restructuring on our XXXX capital recruited global year, unquestionably overall expand to to will contribute six from in and our added reach. elevating our his and we will adding strengths presence building continue and the eight For investments and These promoted in other to closing SMDs, internally, start opportunity add industrials, firms advisory Ralph future remarks. private to large for our XX talent the talent our additions growth.

financial advise the were and continue fee from including XXX ability in billion. diverse breadth revenues to more multiple to of our than the services, compared XXXX contributions deeply. as and $X.XX of $X capital greater As Ralph and depth sectors clients reflect events our our had which year We energy, capabilities, noted, XXXX. advisory advisory. to activism exemplifies revenues composition million, advisory XXX capabilities, for for remained The TMT, and XXXX differentiated enhance

of revenues of in of or levels a to default with and capital approximately finished highlighting outside from business ranges liability productivity very Managing advisory individually our debt creditor productivity M&A. a Chapter advice from overall our this this refinancing balanced capital Senior central SMDs to year. range and capabilities, focused firm. capabilities the advisory diversification company XX% with to growing business productive. management of broad of healthy are our Despite effort, mix to with restructuring we These Further Our footprint The remains Directors, and spans globally. on create the XX of assignments contribute year again together XX strategic and of advisory investments rapidly the rates, industries

environment a continue firsthand clients. active M&A seeing and our have constructive to we dialogues with We’re for

discuss Let to GAAP Bob to results me matters. and our now turn financial other

Robert Walsh

Thank you, John.

Let briefly of revenues. change in our me begin presentation adjusted the by our discussing

to presentation GAAP client-related XXXX to the in earlier, and our parties through of in the provisions advised quarter, but results non-compensation presentation our uncollected brings A of expenses, XXXX For our for has U.S. share. our per historical the for quarterly supplement presentation and operating earnings on Investors updated posted our website. or competitors, section our with been reflecting engagements expenses impact results expenses revenue and the net This income income, has noted fourth more related we presentation the third to no receivables. of with eliminate line associated with netting for adjusted adjustment sharing revenue Ralph As

Moving they for were a billion, year, GAAP adjusted Net income to $X.XX, earnings net results. share a per and $XXX the were of just million record as revenues, $X.X our basis respectively, on record basis. a on an GAAP and

quarter, $XXX million For GAAP revenues, per net share on and fourth also $X.XX, income basis million, the records. and a $XXX were net were earnings respectively,

noted we recognition new the of the January on adopted – As Xst earnings under revenue in year. this release, year guidance GAAP last

open at review to anticipate any have now whether, for for would significant closing period. would recognized revenue met not are occur material which it of we transactions reversal determine transactions adoption, all a a probable near that period-end, closing have been as we future been in conditions those period-end, and of Following

fees we quarter, would Consistent relate the XXXX recognized primarily the advisory revenue those include acquisitions. our consideration that quarter guidance. of adjusted full count share quarter periods, as first also items fourth certain the associated to fourth with with our and under been $X.X in have recognition variable results acquisitions million of for dispositions exclude included the and prior During that prior

J for associated ISI conjunction LP vesting adjusted the costs in granted we with acquisition. with the Class of Specifically, Units

we For the these to expensed LP million quarter, Class Units. $X.X related J

amounts charges headquarters in due for results for York and expense adjusted exclude the an million accelerated increase depreciation an our earn-out. improvements also quarter related $X.X leasehold to $X.X million, to special of Our in of New for primarily related

Turning non-compensation costs. to

the $XXX,XXX and the quarter Our approximately firm-wide With full-year. employee non-compensation taxes. $XX,XXX costs fourth for per were regard for to

responding quarter in quarter, tax XXXX, of Act same rate resulted but was which year GAAP decrease of prior for for and in by years. fourth quarter December Jobs income Tax for our for and decrease enactment the This the of the U.S. charge fourth a from quarter than was the adjusted well the the – rate the the in a XX.X%, points relating tax The the effective tax to enacted prior in $XXX The the revenues the XX the to quarter XXX.X% by in fourth rate impacted lower rates in liability versus and receivable included the the resulted the of as Our under up last rates lower XXXX, year. period of GAAP other U.S. approximately a in agreement in gain of rates. XXXX of as percentage XX.X% in Cuts basis in are resulting quarter. a XXXX future XXXX tax million in rates. on the XX did our newly related tax a of tax reduction tax our million, Likewise, assets reflect percentage caused of points for remeasurement deferred GAAP $XX

average driven lower the by million share quarter, shares On for XX.X share Our for share in the count a to and quarter, basis, the GAAP comparison price. repurchases shares share count was adjusted quarter. was a million for prior both the down share per earnings $XX.X

noted, million of average Ralph dividends and of and $XXX returned of repurchases, $XX.XX. we X.X price units quarterly shareholders through repurchases per or $X.XX our to including share As at an million share shares dividend

for Finally, strong it for improvements, overall remains the this position back facilities as earmarked now cash and current cash we closing assets with million. regard of to requirements. cash end call future to have bonuses. our regulatory also funds to time by hold have operating account liabilities compliance remarks. the for securities And financial $X.X at I’ll year at current does of Ralph and also the We we $XXX billion exceeding and approximately expansion turn cash – marketable year, with position, of our customarily

Ralph Schlosstein

XXXX our begin with We Bob. respect business especially Thanks, very positioned, well to talent and pipelines.

advisory business. announcements showcase in started with coverage to announcements First, deals of transaction U.S. UK and the our geographies. on and capabilities the the of two several We notable year These with the our in the XXXX. regard sectors, diversity largest largest advising

internally strong We With Our have we we our that backlog Director. recently quarter population. Directors continues over SMD reported. XX a our promoted Senior to when group developed have be of we seven since strong now three. to and just firm promoted talent, notwithstanding to just Managing XX% the now Talent had at of XXXX SMDs Advisory advisory Managing the XX-fold increase represents respect

terms that and from announced new hires, us join Internet John is in Goldman external reached Startin and hires, Materials And an from practice We leading Zaheed Kajani as off We a XXX we globally. joined SMD our media. us a Senior Metals, recently In we Directors. announced Sachs, yesterday Mining April also will of to now on & Between new milestone. Advisory SMD XXXX have Citigroup these have solid start. that focusing digital promotions Managing

capabilities to still this opportunities almost significant While is advisory talent impressive have to an sector every we add in enhance our globally. number,

In team, in addition, XXXX invest leadership and Research. ISI, in we continue our to to already an Marc Evercore as Director of addition Harris announced

Moreover, we to Mehrotra research research we who our our Healthcare. shortly expect in analysts, also will have join of Ravi other senior We a platform. commit senior with strengthened team couple

for we’ve XXXX. of Thanks I X, foundation in we And a we’ll clients it continued to shareholders. our our open create have built and much for very say, path very coming best set success confident January the a very build start globally the our are that up revenues must every and value to XXXX we we had clients, support for we We to while now and strong begin serve questions. and years. and excellence much, ever in the position strong With successful our the appreciated

Operator

comes first with from question-and-answer Thank you, [Operator UBS. Hawken Brennan the session. sir. Instructions] We’ll question now Our begin

Your open. line is

Brennan Hawken

Thanks for taking guys. morning, the question. Good

Ralph Schlosstein

morning. Good

Brennan Hawken

why worried that the results were here about the quarter. you here back too timing guys from not saw we held clearly, last So

backlog that So pretty come that solid And strong. to you know despite see commented the the through. Ralph, I that strength remained

So do of you’ve you quarters. last just and base crosscurrents we’ve full-year seeing? feeling that couple XXXX announced some that, given how we’re the of for given How about the about high guys that light of set curious M&A this slowed of off in feel that bar the that volume growing seen you are

Ralph Schlosstein

thought the three some I Brennan, the actually, retiring Well, over months markets so. had we’ve last after year. look, in volatility this But, or of

independent most said date, I had expect you activity or would volatility or it all if at to And that any said we as see independent we continued evidence publicly function conferences tell broadly couple dialogue the remain point, said, to backlogs. impact to more whether no is, see in or continued, that and/or, volatility I of that the Evercore backlogs strong. we John can of whether – a M&A some really what a is the think, that our investor I to that. of affect firms the of is that firms. date, To at don’t markets in unique or we it But our of

John Weinberg

off. Yes. to And bankers, fall are could impact dialogue we things are CEO terms this now are we’re our what in terms look say, into you levels unfold year add there we it recognize like of we financeability. dealing that client just right and enter also that we at risk and would and activities in Having seen confidence I a could just, that, Brennan, of factors just that that as haven’t and with I and said watching really there for

about so right whereas now, feel are. where And we we very good

as watching We’re this year you are unfolds. like

Brennan Hawken

all fair. that’s really Yes,

you fact the Ralph, expected What hires no joining could feel about for competition highlighted great. progresses? be as be And yet, now talent How hiring soon. beyond adding watching. coming all of be folks the few that think, in who do you, about the a feel right some year? here then out might gave it good about preview I the it’s on but there the you the do you announced you think street? folks? That’s that might is So always signs XXXX know a but carefully are that case-by-case you How in us basis, soon I or would it on feeling here you you

Ralph Schlosstein

be at think The upper-end of and of I to say same year. this eight at to the from would years, the we’ve beginning four we the to Well, the we of or new always thing to exactly at think, say the I that seven outside, of hires five couple range. that expect tended year beginning last we add

but And a unique so shot the little a culture the proposition we of terms our And advisory again early there’s too both for would reasonably certainly good have of pretty always that, a that think I the to independent think it’s I year. be do competition this talent, the firms, believe terms breadth We fierce. within case of say, capabilities in view in can I sit on at capabilities. base don’t client of And we say can with breadth people senior the that. considering because know are I my generally that them, moving, And get pushback when than their that Evercore firm really at of any down independent with other and business more do any to it’s they our have. I I who they

and talk a we there’s to hear our who terms we’re of people we out healthy think say hire that willing are really people to that what not Right we to that, of responsibly, we we’re not want dialogues we’re when And because an And have just which opportunities by really to for to I hire what us number what very rule, philosophy. don’t grow who is, seeing come to going had with now, people is competitive we keep have recruiting, fill get good are not we’re have that So to going need try to kind overstretch to have our to good like to going we area. of are people. hire mean overreach but to to wanting in really respect we and and people going we With position. in going that But a people, we’re to is good to growth. us.

it us over to are with continues actually hopefully, dialogues well there. and few to so. has respect the so, the And years, out worked do But for last we’re people healthy quite that hoping

Brennan Hawken

Terrific. Thanks for all the color.

Operator

Thank you.

Our of Harte next O’Neill. from question Sandler Jeff comes

open. is Your line

Jeffery Harte

good guys. Hey, morning,

Ralph Schlosstein

Jeff. morning, Good

Jeffery Harte

quarter. nice Really

quite prior a we revenue quantify to it? strong You backlog quarter, fourth talked in know about closing qualify kind a from can of versus strength periods, I all at the it But Can kind of pipeline won’t the seems so little the the was visibly you bit? declined it’s bit. see you just have

Ralph Schlosstein

you exactly remains quarter, is the predictor the what in And repeat pipeline, notwithstanding at I think, opening our strong. doing. we’re weak how in recognize visible I I’ll of said Yes, a point strong this pipeline rather as remarks that the all

Jeffery Harte

coming you you on What Okay. different or would landing, over Brexit And your also the a with little really a about if soft hard have What don’t from Europe Brexit a presence expecting? guys scenarios off, strong landing know given historically M&A is in are of activity levels impact we UK. a it had expected kind there? that the

Ralph Schlosstein

I any as what between a they for at on firm competitors, the European not due a us have I for yet real And But principal itself. don’t we than negative have we represents we’re you And with our for global M&A look configuration – compared in Europe. to material we independent quite would activity us, what us. uncertainty a to reconfiguration from footprint Europe Brexit do, we a in seen which every advisory as if impact uncertain if associated bit whatever perspective basically opportunity obviously, two eventuality, general UK – think have to a we certainly smaller we Brexit. the position almost as matter, really ready or say, operate a be and will aren’t it’s actually in happens occurs prepared Well, – in the

John Weinberg

think borders lot execute terms of what the of bit strategic really clients, every and in thinking in very dialogues we that we We our to way strong. we of for things. real is a be able we clients to continue sense be for across terms a of activity about And the will do did In have before. there found though that

could anticipate of number with them think any scenario. And in strategic way that, our the be we’re Brexit it clients want to go, to go any But in help they does that so able do any transactions we going advise we to and obviously, really different ways.

Jeffery Harte

a kind finally, being it actually of well? situation, indicated then new was market competitor you that activities, and leading as of Goldilocks Are And the volatility traditional kind business that somewhat up a weighing and you carried of wasn’t new a uncertainty Okay. to and business. on strong where at both pick macro M&A but of kind situation restructuring kind of seeing

Ralph Schlosstein

firm, Our backlog hugely real in last a at the a does a reflects not capabilities point which in that and reflection anticipating X%, accompany that year environment the this to default that But restructuring backlogs economy, that of those is as roughly we downturn strong honestly, restructuring. both remain strength at of and real broad said tends as not prevent that seeing is Obviously quite our with before, we’re robust we’re that a something for including either. areas. I something XXXX rates have

know, And a very added we year, the bank weren’t saw restructuring you you year despite up to fact dramatically. we’ve – good – As restructuring. that bankruptcies had as this resources that also

healthy. business so is And that like we very feel

in as really to it’s any as far scenario see. we do can well economic So going

well-positioned tremendously. hires we’re And new clearly we’re capability those of really and broad actually of I to side have any up, at if point. business seeing We the this so complement degree restructuring a our think, starts business pick

Jeffery Harte

Thank Okay. you.

Operator

Our America of of question Mike comes from next Bank Merrill Lynch. Needham

Your line open. is

Michael Needham

Hey, good morning, everyone.

got I’ve the question balance. on is first the So cash

up same rate. you grown current think year I what view the for, means You just near-term And there if holding I’m a as not, you’re $XXX ended minus $X.X the excess? year cash liabilities to has assets million cash that’s with would that from are ago. more close wondering, that billion,

Robert Walsh

talked Well, it for. cash top noted, planning sort now, most as of obviously, about from are are that we are needs, of other on notably, mind cash a expansions. calls there near-term facilities there couple I comes me. We’ve needs And of bonuses

build we’re but Mike, we net to cash can mentioned, and position settlement in So, capital buyback a a normally do flexibility, the have we of Ralph because strategy first want return we very purposes, period. deliberately is operating execute the for to some that buybacks fairly quarter large also where

Michael Needham

if Managing time All discussing And hiring, Senior got right, expanding Director Okay. a bit it. guys below headcount level. the remind you spending then growth for little

perception labor to I market more junior pretty think strong, at has with as the hoping the inevitably firm’s on you’re touch then talent grown seeing more on from the be can time? you over what senior generate you levels,

Ralph Schlosstein

sustains the mentoring input statistics and primarily hired itself. hiring Managing websites Senior – talent at the number one firm. is on Directors at can’t people having grows XXXX that that I developing, you these We of because the and younger high-quality the today. extraordinarily if that that, without itself that. of is X.X beginning, achieve And think say a from we highly years would when our evidence look extraordinarily promoted focus of It’s are me the being focus something that the by people the that’s talent are leaving young that that XX-fold a by I on I go ago you of in gave to at major to we’re the people’s by the joined, internally that XX that of training, past to that And itself I heard you’ve outset filching and in say sustains known increase other work where the that or places extraordinarily do – places others either grows going the I pool said journey XX-year those firm a school. promoting experiences widely school well. rank they And the that that or work, business undergraduate their friends we versus work SMDs

in leaving either are are high who business extraordinarily the reflected we offers make undergraduate that we analysts for who that’s and rate associates have school. acceptance or school leaving So,

John Weinberg

strategic realizing is a And programs both a at Ralph of human we but imperative, Talent time, lower the level developing have later important what the spend also most and a hiring, we self-sustain. for the that do Ralph the I on spend us and to also development of lot one lot things senior our a level. is just lot with can talent time capital of our of said not

I to so say about and talented about we and people, development, think it’s hiring at really you retaining think worry and levels. people look the time, that it on if fair the it’s both And things all look that all at we

Michael Needham

thank Okay, modeling Was on loss? like the drove trading revenues and other question. you. more a that What One Thanks. loss?

Robert Walsh

legacy years to by. but that, akin don’t We some gone we investments business still our of equity have trade, from private

those other associated marks there. revenue a bit go and do of with there’s investments in So through FX little

Michael Needham

Thanks.

Operator

you. Thank

comes next Securities. question Devin Ryan Our of from JMP

open. is line Your

Devin Ryan

great. Good you? and morning, Ralph, Bob, Hey, how John are

Ralph Schlosstein

Good morning.

Devin Ryan

quarter. Great

of talk sense kind is signposts of about here. the first you’re not begin just to My guess So kind of the a question normal to cycle. M&A peak prior cycle. I where seeing love

a that model asking the you two kind plus is, that one added one of here? bit reluctant firm, from reporting just to so you’re big as get a senior think, get So to numbers over love I just that, a being the bank- would you’re underachieving? overachieving think capabilities the are a you that is perspective try numbers than some are of And of to to really, connected you productivity to sense more And just and so average deep just of some And reason people years. I’m on expansion as then advisory where more managing kind attribute further little huge

John Weinberg

most Well, and of is and very any we with always cycle, with transactions CEOs All the on of what’s number sectors, to in sizes. are all dialogues seeing predict how can seeing we’re and frankly, and And looks. what business now our we say cycle. we’re and right of of merger us Boards of types in in front different activity terms our do it’s busy hard healthy the

I it’s so than of think right healthy us to M&A And the characterize just, for it’s safe say that hard it’s say it’s this very world other to that now. cycle to

were to Ralph we’re activity little see going going to. themselves the what a strong let you seeing numbers We’re about I’ll talk it on bit referring and forward.

Ralph Schlosstein

defense have. we’ve I or measure And capabilities way capabilities quantitative have, are of and to those capabilities and some the opportunities. from to to think underwriting around. to breadth two Look, the to quantitatively, have premier revolve equity activist advisory ability I of sat – Number it the a the provides that things. we one, there which revenue gamut to experienced the And some those I’ve number we things practice. the here run incremental in breadth linkage tax Number explain tried – of equity growth think does those one, what debt that advisory a really why

compensated get many we’re some So, revenue our the with for debt of we actually by, assisting mergers negotiating on in the provided with, additional larger with cases, that of involved co-advisor.

the advisory in. opportunities share are think, actually advisor lead co-advisor we for affects a incremental of prevent also, revenue. have they circumstances, the there allow that of a might the where So very or I fees longer period the co-advisor or be us sole earn which time, to we for importantly first But a when the in advisor

going on. that’s thing So that’s one clearly

our Second thing population. Senior we is regularly are evaluating that, Managing Director pretty

point, have there has past weren’t always always chosen this in back business larger model. or firm. a at for – really battle whatever to they’ve And go who three with there’s like team so, reason with. our years, been go successful typically a to that into of couple to And you’d And a we four,

as And been. a a maybe is third and bit hard think the on add bit. higher. thing, more I of little is, backs the is maybe So, course more few the consequence hard it’s we average ever year, that the little to bit, business little its get the measure certainly, our averages improving our batting during brand a which And quality that, then a than as measure and effect is our is of high to our definitely SMDs of

same the we’re on the with little So just bit team field, maybe more business. a doing

measurement We’re choosing report precise SMD quite of the high. for that is it not to the reason productivity

Devin Ryan

Got it.

today in And that, be the seem helpful. just looks in more everybody to with added. mean, my enough that well is play gets every value think the a for least, at sources that follow-up it a to Okay, very potential thing some in to one commentary. of the reflected opinion I that conversation, dollar capabilities that be just And like data I very at. seem has of getting all deal does firm don’t you’ve that that maybe productive doesn’t those

of to or longer, the financing. on can you M&A so, advise mentioned hedging equity you you advisor kind solution be on get the And debt can advise raise

possible, would to quantification can but any it from have size. higher or been fees know are the that if know fees it don’t I any would more detail us? don’t I on deal if you seems get that I information give but point per it’s So you any there’s be great obvious it’s like to mean, of trending average kind outside, how

Ralph Schlosstein

information advisory Not mean, give events I you we revenues. really. fee on and

Robert Walsh

it’s and not Devin, quarter’s of at and by $X million, if the events over far will you away the results you, average arithmetic a number driver, is simply fee this tell fees big fee. look

Devin Ryan

Okay.

Robert Walsh

over current clients what’s well. the is if had really more But grown time, driven quarter that serving

Devin Ryan

leave Okay, there. great a quarter. it great. on Congrats I’ll

Ralph Schlosstein

Thank you.

John Weinberg

Thank you.

Operator

you. Thank

of Our next question comes Chubak Wolfe from Research. Steven

open. is Your line

Steven Chubak

Hi, good morning.

Ralph Schlosstein

morning. Good

Steven Chubak

slowdown? bit revenue more light drawdown severe about discussions was economic event for with in maybe and to it’s little earnings garden question often know this the quarter levers concerns it’s earnings I being your what I wanted on comp percolating. of but you So downside you certainly the Evercore to a the on can really whether should are you and dig were start you I this some revenue how was specifically, flex in And that ratio we offsets, can touched about a And some earnings impressive, resiliency? of to deeper. more to – bit revenue off pull but earnings you of is revenue think are that $XX,XXX of and our remarks, quite ensure bit shed something called how and risk in on a hoping [late deliver investors. hoping able tackle] question a think prepared a or variety a quite with risk recession that’s maybe to the the resiliency. result can This in

Ralph Schlosstein

good a precisely Well, downturn and of firm. we you this business some the are aren’t. accompanies about as you a The revenues. are, We thing as others that the we are within in in do is on and a will done at our we and on leaders lot thinking of firm are M&A, recessionary can predicting socializing as respond predicting effect future the lot a which how we’ve the cyclical call typically only them And of tell period. to a know, economic of that, broadly work inside firm, the as I we events

that’s our going that depending We an you few of I look no kind obviously, happen we have to of a have and significant today. last evidence pancake. of as gainers. say that of severity no see the things. all a been the XXXX when seen decline. to revenue idea will upon we’ve was time severity as recession, have the And XXXX, on share would back couple I the flat of the from years, M&A One, would period activity when of at market in impact of

we billion was seems years And period, the firms tide a not our were think, four in bit But to than a think today view successfully are taking for be $XXX useful larger grow slowly our Obviously, the give all our bigger quite our share during that tautologically take brethren take it roughly from we’re because then. to we successfully or I who back trillion of were lifting billion or half we less than note of grew be that a competitors. or actually size. independent because more $X.X rising would was for it you I but roughly ship, take row. the one of share $XXX that to things going are is, there quite

the case. years, I back the few think, if that last over you look has not been

actually quarters relatively which the over if pool that. will opening four year a to result to revenue quarters and going I period same the a aggregate the II to and those – our of going to very consistently our been said what’s think asked, both which four – clearly, happening. last happen declining And the always very net on II we’ve to my – of to clearly, increase we of that the for phenomenon us in I true we available But – share the that in you like limited about little at the been course during decline. year, the there’s have. And the – downturn the remarks, is business think, of market of and I that next as the effect the over MiFID be bit talked during grow. the things are the I I – share So, we’ve honestly, the of business. will look MiFID research has it’s market going that it high-quality of reasonably shrink last to roughly shrink But a continue will research, proportion quarter of will severity in chance pool advisory that economic year. for good the think And research. trend shrink revenue last I it’s believe think

John Weinberg

the I Yes. Ralph know I that into do want for with is that to keep from share things these we to are business if downturns, because that out would downturn, go different as perspective, the and at we same market But be a and are we’re we a also say we we it’s you priorities what more went inevitable. the should money shareholders. said, to with. our our can time, recession, downturn to to if that in important all you think there want going always of at make looking than assume the healthy that emphasize But come

where business strategy be we situation, pick hard because how is to be our our allocate up resources So continue long-term overall in down, invest to to about market and a smart even we’ll volumes working share. go in

Steven Chubak

analogy And well. MiFID for Thanks I helpful all as like II Ralph, did the color.

you thank insights. So for those

deal of financial powder? the increased of deployment you some some do advantage your equity for Just sponsor activity. one relating private me expectations of How position to dry take to the follow-up for think competitively of

Ralph Schlosstein

of the to actually lot we And with us We give, have extremely advice with activities. of as a think is M&A actually those relationships special right strategic lot now. quite have our market it’s strong lot equity equity that across private knowledge a involved complexes We of involvement a dialogues. the good and industry as relationships. well-positioned portfolios our private very we that something many is helping very that think – firms, be well in groups our the that with feel about really we’re We

Steven Chubak

very you Thank much.

Operator

you. Thank

from Mitchell Our Jim Research. comes next question of Buckingham

Your line open. is

James Mitchell

Hey, push little bit good maybe capital a can Bob, on and morning. return. you cash

– over three the the in needs years than cash over have three last of – last you seems incremental offices. bonuses, But the higher needing over really three about cash ago. the out new has You the double years. incremental the terms more doubled guys your needed of more and it than higher bonuses – years earnings, appreciate cash of the build grown I

what You’ve do dividend you incremental year. been every enough produce special like, cash can we cetera. to returned feel point be At buybacks, net hey, have every net and growing cash cash it’s shareholders, et whether we

much? in didn’t a guys fourth had of sense deploy opportunity a you at low Just you where multiple is, that quarter endpoint your do really trying good pretty and to to certainly stock, get on because a the pretty cash too

Robert Walsh

bought plans is because certainly we’ve to enough of big quarter Ralph been endpoint nimble and fourth not, had certainly return – can buyback uptick. or want growth all have that we we speaking about, be to to the but bluntly. John whether that in shares we unpredictable If debate a the And

the growing business. We’re

new which are are entering markets of regulated. some We

flexibility we So to to support the have that. want all of

John Weinberg

But mean… I

Ralph Schlosstein

have last policy I with have time, of leap we quarter. although, we would typically do always up we and needs, that past, then, to a From a we’ve what be doing checked XXX% some you And grow, something we have you’re quantum paid But look, We as have New cash. of as portion first in York. point – don’t that of in And we relatively own space. business view, in the where I like in call, landlords one-time businesses here the business. we the buy done a contractors unique, and

meaningful appearance bit our environments, those – then much capital is policy third year. of business need create a is, little in some the point another one to because returning an the really in that as altered. together from of for the is or And grows that do unregulated all But use growing. we’re the view. things our the So, that, coming And more our we’re business being there of historical of we cash It’s that not and needs going form regulatory cash. pretty are it’s obviously, another may past do in the shareholders year a obviously, earnings – to

James Mitchell

very think year, strong of myself, feel or good ahead outsized don’t head sort XX.X%. that’s want an Okay, year fair enough. had And maybe if just on ratio, year? do it for of row the that of to Is Obviously, revenue, get for sustainable? second point so a to that my next just down a you’ve I question comp – you you like the good came a jumping was off

Ralph Schlosstein

Look, the our quite as to we’re in, clear somewhat the quarter then foggy think, what notwithstanding foggy next quarter backlogs. said, our it and often I gets and visibility said forward, that about is to I’ve I pretty

first of be the thing quarter, our get when So we tend the I to careful probably do suspect end initial accruals. we’ll And again. we to the in same

James Mitchell

thanks. Okay,

Operator

appeared to There you. for would Thank no questions to I floor Schlosstein be now to any like time. closing Ralph turn at the this comments.

Ralph Schlosstein

no year sitting be can No, thank but guys. exciting And from promising. time. care, you result, we equally hope we Take very your much with an now for that a here

Operator

quarter and This XXXX conference fourth full-year financial results concludes call. Evercore today’s

a You may disconnect. now great this day. Everyone, have

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