EVR - Earnings call transcript Q1 2019

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Operator

Good morning, ladies and gentlemen, thank you for standing by. Welcome to Evercore First Quarter 2019 Financial Results Conference Call.

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

Following the presentation, the conference call will be opened for questions. [Operator Instructions] This conference call is being recorded today, Wednesday, April 24, 2019. to Head conference Easton. of like your over now Evercore’s host, Investor would turn call the to I Relations, Jamie go ahead Please ma’am.

Jamie Easton

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

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

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

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

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

Ralph Schlosstein

here are also Thanks landscape our everyone. European John, business you Europe good regulatory I and the our today. morning, here changing to meeting to on on political Jamie, profitably. We joining and yesterday our strategies focusing London Bob, hosted part in and from and continue Board in grow

U.S. Stanley, And course of announced and all measure of advisory one, Morgan the the lead global value number advisory we in JP globally Morgan among revenues Before and greater detail, all are tables the strong fourth me were in ended globally Goldman revenues an Sachs, firms currently and in environment transactions. behind and among which extraordinarily position and Evercore which highest We independent operating. we on in both number competitive dollar let in the one we broadly comment XXXX. review XXXX in with the firms quarter

our best a basis know, observed of not all but business to basis. a believe quarterly on consistently is we judge you on way that As trailing we have the XX-month

a globally advisory both number one our tables basis. trailing first of [ph] independent U.S. on maintain XX-month maintain our the we basis reported, XX-month both among firms quarter year-to-date on have end position same the the and and fully our on revenues in and expect at lead competitors a independent trailing and While large to in not basis in number to a all the

the first best of history earnings in terms firm's The first in exceptional quarter while of and last quarter XXXX adjusted year's revenues our results per second below is share.

continue seen publicly both a has and positive have current may backlogs available activity suggest you from to that This me announcements. As April for month the Evercore active information, our quite for our been completions balanced and out XXXX of advisory our backlog we quarter from In businesses capital had momentum and continue. of of advisory markets contributions and the strategic first underwriting we coming to our all [indiscernible]. will build

largest announced to in the of the and far some quarter advised the most have fortunate globally. on year, transactions So three announced the assignments and largest year-to-date. first six we complex of Including of this are transactions largest four

talented our In in long-term business, the another we our in adding history. the the have Managing and advisory having announced firm professionals significant to our our position added this seven year, with addition, on have three exceptional year senior external capabilities year focus well. talent, very we the we our and Earlier Director to well for Senior growth Research internal expect advisory Senior and developing of our as broadening continues largest of This already new steady product Directors Managing to promoted ongoing and us class business coupled success. geographic to talent recruiting joining promotions in Equity strong are

in materially to growth. continue we our invest future So

Let results. the me for financial quarterly now turn

quarter The related Commissions that last versus X% the advisory the year. was for the the of year X% ago versus Underwriting $XX.X year. earnings quarter the Asset net in first quarter XX% million XX% fees were million quarter banking had In first year. XX% were were $XXX.X were period first administration the share year Investment down Management, fees ago. was Net versus $XX.X period. fees $XX.X quarter were the the up million $XX.X down $XX.X ago versus and million operating income down per down last versus investment and were and ago quarter we fees last Management year versus In for The year $X.XX the down $XX.X $XXX.X versus first XX% period. year revenues million period. XX% million record ago versus margin down the

ratio also Our for last related quarter these presentation transaction for adjusting XX% period, the Recall to in $XX.X primarily increase higher the versus expense. to certain expenses. headcount year that fourth the on I've quarter. the due were validating fees a nominal and changed after with advisory with increased [ph] expenses. of just costs per respect the transaction reclassification primarily was costs million non-comp said fee but The to what due the basis issues our client the in professional and consistent we related was quarter year employee headcount, increased responsible ago XX.X% compensation growth or for Non-compensation was for increase

earlier, businesses. advisory investment remain and As the our we I our confident backlogs strong in management very positive momentum are said banking and investment of

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

John Weinberg

These Thank where M&A you, levels unchanged for environment In activity advisory both largely strong Ralph of engagement remain few continue from on level capital markets The companies high and sectors strategic broadly. XXXX. most services at our There market our and headwinds. activity morning. more are overall focusing and and a assignments and facing are financial good a are remained high level.

us. Here model. of strategic our favored restructuring, other for and debt business This more environment diversity advisory the advisory assignments are prevalent

discipline. have sectors to strong most continue dialogues We and across

for are seeing retail strategic capital For and and in example, public in sectors for we energy markets. consumer for consolidation both restructuring healthcare the private opportunities like and and raising and

of environment be The healthy continue to pay research of see addition, as differentiator. equities of they research refined XXXX in for again activity. to the and level levels important In volume having continued and reduced sponsor continues an the received Quality trend up we to payments. both clients

briefly investment on banking Now comment me our let results.

has Our XXXX carried to momentum XXXX. in over

largest the We of advised including are billion we Bristol-Myers deal five quarter $XX Celgene. in Squibb's deals pleased acquisition in to of top date, that first the the three

advised on Group. which to UK also the deal RPC's sale Berry is the We deal, Global of quarter largest UK the

XX we momentum and underwriting activity continues sectors telecommunications, for was participated we media, earned. technology, strongest quarter sector than was capital and [ph] year earned ECM in [ph] is our XX capabilities reach. broadening reflected multiple of short, is XX little period. $X equity financial, with as advisory. XXXX XX Advisory in very contributions quarter. the have remained timing comparison distribution in noted in activism diverse size including being while our our terms transactions, role which runner. that revenues the We Ralph healthcare, in and greater In the of strong In book fees from influence fees healthcare, quarter of Our but million QX and different the this pipeline by fees remained in ago over the momentum of

we offered advisory the as productive they expand and Our teams on continue also and debt liability capital to very to sponsor and refinancing, debt management, restructuring breadth the remained advisory of capabilities continue community. focus to financial globally

Our are [indiscernible] recruiting active quarter managing ended also banking. investment the directors. with We advisory senior XXX efforts

we our join lead Richard & in will in joined to XXXX, Startin, real later and Materials to Technology mentioned, Group; Practice John Mining July Ralph SMD who estate. who will April advisory announced so As Kajani, hires join Andy far Zaheed three our on who in January; focus in Metals,

join in one to We year. also later have additional firm the committed SMD this

also and the build Melich, discussions our start in XXXX class. come Daryanani additional retailers. both spring. up the active and with ISI Greg and the IT talented the Hardware enhancing in Palmer who of is is candidates recruiting also we of senior and year Consumer with The growing building busy David and additions teams. research us to rejoined in are at who join Evercore We cover the hope further will this Restaurants, will Amit franchise make team Food

development research Evercore in a to Larry which independent remain Evercore providing continue our leadership addition our team role of with capital Sales, strengthens a transitions new research enhancing serve our We investing Chairman we globally. In Vice and into forward best June of and clients Head the welcoming ability intellectual ISI. of as look Bill to clients Foley Sibley team. world-class committed to We to our to ISI's

our the Bob matters. express to call other let Now me turn and to financial results GAAP over

Robert Walsh

principally with those morning. and quarter. a the million that results, respectively to full Consistent net earnings include certain $X.XX revenues, count Good per acquisitions dispositions for Beginning with quarter with share were acquisitions. periods the on and income GAAP share adjusted and excludes relate and our basis the prior our million, items for associated $XXX.X net also results $XX.X GAAP

LP we million the associated the divesting J adjusted Units the for of $X.X Units. costs J conjunction with related Class expensed we of with in the to quarter granted LP Specifically acquisition Class for ISI

gains $X in our improvements up excludes leasehold reflects primarily the headquarters. depreciation exchange obligations. traded hedge significantly for our volatile for increase special adjusted we a revenues the Our for quarter around This XXXX. million funds cash results on New compensation program charges move the related This deferred are of of a also first the York bit accelerated markets. from as use will amount to in quarter Other

to a X% higher prior calls. quarter and firm from reflecting employee Turning per were occupancy on been our non-compensation non-compensation wide costs basis, as the down we $XX,XXX X% costs discussing for quarter the prior elevated costs, on year-over-year principally have

earnings in presentation parties operating associated note adjustment adjusted income, uncollected eliminate presentation XX.X adjusted our expenses of tax and and of the effective with with Similarly, tax and decrease XXXX of This to impacted U.S. engagements our respectively. each compensation in sharing peers to XX.X of prior related XX.X% in rates the percentage expenses. the for impact year. U.S. share. of in our GAAP the in Just in percentage in X.X% rate presentation related with GAAP and the non-compensation and revenue netting the quarter on receivables. first tax the a XX.X X.X% rates or resulted and was adjusted to by rate no again, to the treatment brought the had compared which results third for last our more U.S. With net for The effective was GAAP decrease quarter and resulted same Expenses on accounting client points quarter quarter regard income the taxes, the the period as the for fourth GAAP of points. we line revised stock provisions quarter to in impact in per our revenue

share per prior XX.X GAAP principally count count the with for On adjusted million the lower share quarter. shares Our earnings the in by shares, XX.X was repurchases. million comparison quarter for share a driven QX was basis share

new the $XXX marketable by accounting Our lease guidance adopt approximately cash approximately strong balance which result to $XXX no the current of $XXX the million There remained a sheet assets. million. guidance. recognition as XX, lease cash current with this the of liabilities accounting quarter meaningful position of XXXX during March liabilities This with assets associated of on was of income the in at along use million exceeding of right securities of did and the resulted on We the quarter impact with statement at our existing replaced leases adoption end standard.

Let for closing to me Ralph now the back turn call remarks.

Ralph Schlosstein

I comments on management a call with sheet more capital few and wanted the broadly. to close management balance

Let's the start our business. consistent the quarter increase per earnings the the we dividend dividend good with of with news. XX% increased average and in very our $X.XX increase Board went Yesterday our with since in power public a line increased to

in at on and to repurchase the associated focus for has will to of this capital the board repurchase settlement future distributed principal offsetting means are want level through things annual in grants both return higher double-digit declined in in that year early observed equity also in returning reflect to A voted with invested as remain dilution of you couple not market use our a that not for assure return last to business. and our the minimum the of I dividend capital XXXX. While at our we work continue you earnings of have to or annual both aggregate our repurchases transactions, strategy. growth and net year. way increases, this any open shareholders the dividends We share and of committed to were that bonus steady does a our new the share transactions shareholders. Rather couple we change will

office additional one-time our cash First, Capital a Wealth we main New to interest need Advisory in expand for purchase our to put aside business and York City. cash business Management Private and in our

aside At referring restricted or deferred we programs. on to we our a in our awards we cash These to the Instead you warrants in cash incentive we of how our this be set plan have deferred RSUs in of reduced for we deferred settlement issuing set with as investment of and Second, or the RSUs of are deferred That programs accounts case first reliance balance. both quarter put, This plans. shares that the declined have investing year as is annual employees. and are effectively it compensation associated cash has and hire of amount them always deferred of these our equity hedged our in end programs. large saw in portion future balance a simply new on deferred by compensation then exposure require and cash bonuses cash extent. compensation similar been compensation, greater invested relying cash Very paid form deferred include mix instead and as changing a and change repurchasing market a use aside selected cash.

the company a meaningful fully basis of senior material not ownership in has requirements with hold all ownership in Evercore change share change as our our positions senior diluted professionals for by directors. in we managing the any this Importantly, consistent resulted on

exclusively These invest moment in continue which team investments As we I business for is and the This a to have for noted can recently now new almost growing in date expanding technology. team. ago, through by growing funded in earnings. beyond more facilities recruiting talent include work people been our our investment our to to our

debt not as balanced summary, to changed supports these principles cash earning our the it into some this more think progresses. and year In more capital return. mix I throughout at we investments our note, core all expect our of to we look further regarding scale current fair is efficiently clearly have and of a funding

we we both drive sheet have adapting how However, to our and have manage Thanks invest how much. uses cash one-time growth as cash flows. in we balance experienced grown some of and and future very business are our we

take any now and prepared we're you that have. long may explanation about to Sorry questions

Operator

you, Ryan And Securities. from first Devin comes sir. with Thank JMP question Instructions] [Operator our

You may proceed.

Devin Ryan

how are you Bob, and Ralph guys?

Ralph Schlosstein

good We're morning. thank great, you,

Devin Ryan

good Great, morning.

just So get been there, little what to the over could today, recruiting? slow and just, backdrop seeing how perspective Europe then of there is kind the slower to you guess maybe year to expectations at the the what it's around, intermediate I in with I'm what current terms of curious announcements a bit it's And since would backdrop a just we environment, and the you're over are love then all are starting of if just change of your may be term? helpful kind backdrop start

Ralph Schlosstein

with you quarter what, dollar at consistent high teens interesting the if certainly looks that be this down share is I first transactions announced bit in little We is – the the really good the see a to first transactions about we that pronounced. we blunt in it you dialogues announced be would to won't was volume don't And the our activities they're completely M&A it's announced down and generally a positively. clients could would we're know - seeing suggests our our of with also actually that Sure, environment globally in and pretty expect Europe look to progress mid if of there quarter the year number expect market at anything The think in more continue XXs. was In not backlogs was the see be. thing year. one

It So second is have the first activity up we're quarter. the to that in seeing seems the for was slower. phenomena quarter picked

were discussion the even bit suggest and slowdown. modest activity that little clients we had year remotely out it gain two pool how our in research, decline equities But our clearly is there a dialogues those factored It anything Our of our it a market is morning. tried to I but with suggest shrank and a effect available of like for the would last that predict backlog if the don’t business. this dollars about share

John Weinberg

that to our Europe about we I with right dialogue our that will and very saying backlogs at we remain now. levels just board a quite the and interactions strong remaining really are where add more are in just so across and high feel level constructive our by clients and broadly

about dialogues to Second we fun. it approach look much those on people we those and which start constructive those think – standpoint, A business. the broadly. to to going we keep who constructive very around to part and are our recruiting world be the for We look consistent have dialogues and who we and add Often us. a years like for was are player continues environment question people is very level we opportunities a recruiting is, from in to we're for and more And of recruiting before feel our us your to we bring in very continue frame continue venture very for high Europe a be consistent

Devin Ryan

I of like really effects equity there side underwriting other is the the all slow some it seeing to of you business And commissions thank just Okay, And contribution, if of feels guys the start, still strong I'm some normal point here the to pressure you're a relatively feel important be looking for then in curious well. line, at lingering know or know seasonality plan the followup that's may does as it meaning you another color. there as kind like equity evolve? an that businesses just in the continue

work recover, underwriting seems more you broadly? still that to all are you to equity think other lot and in expand as it Banking just businesses if Investment benefits of even having like would given Evercore the the equities look you that overall and about commissions success the the So to footprint,

Ralph Schlosstein

because than economy the talent this quite And underwriting in year first no significant we – the comparative it made we it's in equity additions underwriting senior saw to a year. Mexico first a we and participated revenues pretty last you quarter, to a in from off a as some as that the quarter bit given first pools transaction had a better to and business. and little got Mexico there start quarter as in the basis on you quarter good we looks consequential way detailed, noted Yes in John

well. I a equity are were in defining So revenues million Evercore-ISI year business I it is which doing a we are without occur, thought our underwriting I and the did think, for the that our of business be business a up the I in up said nicely cited million very U.S. underwriting in thought nicely healthy actually that, that as backlogs When $XX as we build we could reasons we a would would us. one $XXX year that and that to transaction,

the success goal I having, we Given for now would set much that are us. a higher

Devin Ryan

I very Great. much, appreciate it guys. Thanks

Operator

question next And Lynch. with of Michael America-Merrill comes Needham Bank our from

You may proceed.

Michael Needham

Hi. Good morning.

first So, get on, to is my in question ways other paid advisory.

what year last revenue M&A have traditional growing outside contributors what so been or the Over have advice, and biggest fastest? to of the the contributors been

Ralph Schlosstein

that noted, large increase We our up our were reflects year, Asia. entire team firm of and the Last any largest in the Europe And had increases advisory, capital everyone advisory in We XX%, as the interestingly U.S., significant increases in I I'm had strength markets not businesses. and increase industry. restructuring, revenues M&A, across of significant think raising capital in if think, was firm wrong, or which I the independent board. in

a XXXX% been that from you're the provide. strategic the company. think that forms considered may of identifying part of don't of advisory, much in pretty we are the distinguish how blurred. terms precisely never advisory of options when various I How we've, working was And is, when lines from do So markets reason those do capital we advisory, restructuring consistent in all services you revenue be with

the - strategic really growth all our and reality but So shareholder including we're the defense. experiencing activists strengthened in is, practices

John Weinberg

areas built And build multiple really able to elements base is, to able client can don't revenue to and been existing revenue we for is new base said, and and areas. like that out, out of what break that to debt defense our we we've we've bring with to been Ralph firm. clients, provide the client the advisory really respect growth specifically in possibility the grow raising capabilities do but we've relationships capital as activism things things really for are and relationships all and As

so, strategy, advisory any that's and increasingly. our important to which bring more to And now clients. been of that is we with elements can And work be really to ways we have number assist clients the able

Ralph Schlosstein

that apologize your we that tight And our deal makes links prior because periods. been harder job as between they as aren't revenues have in and the logic

Robert Walsh

I say we would rather acknowledge.

Michael Needham

Okay, fair enough.

investment on the hiring, one Second or investment retaining banks changed it? cases, commented large and in their have competition areas just all? teams is curious banking heard has businesses. at just your from growing that little recently to talent competition Some And on focused comp bit, of I've on certain management get the some they're that like a for Thanks. increasing view levels

Ralph Schlosstein

said course, the to and us most to And really people of M&A strategy, their centered equity. working four in strategy, and their the joins the Evercore they business consider three think activism, may about execute the to each a that stronger us, XXX% in matters and there of I I've in undertake of would of gotten they pull - and say, this to The your with has that dialogues everyone past desire with combination reflected of argue spend the who of around last I would pull certainly that of important, and clients the or on is talk model. is the the years I some markets push. intensity willingness number almost structure, capital and that's pull time dialogues our

the you to on CEO, two your a you implement M&A and directly. strategy you're focus If are and execute that might things strategy the

we or four and of collegial would environment three the in has going than each years I direction. sustained pretty here So that in and last the culture work pull and is the rather have the intensified other say

would a for from to less that's comp the make who gotten say and a larger that really in us. accessible who added better what identifying hasn't but the So firms who would these do have would as I be most that firms seen at ones changed us value high general interest at to activities, a the focus the materially we've way certainly matter on good are people of us. thing bankers large not

John Weinberg

they personal at positive and My that, candidates looking we is I own experience the is are the anything come. I quality place to that when are are in generally people talking we've looking recruiting the than think what and a at is the we view what found many have is firm. they is that and to of experiences And coming that that evident. Evercore going able a to work have to when think more been practice to craft. and really for to we I talking in are is favorable highly think good there's people a demonstrate And be of that to people talk of that what to And very your

constructive. been have very the environment feels constructive very conversations So and our

In firms terms some big big know. the hiring good people. There out hard to also really are there it's of are firms who

conversations currently and We want to our people have seem good and found in well. growing to come be that quite past very the

Michael Needham

was any deals there material closed that for and one and question, quarter? modeling April maybe ask in deal forward pull during Okay just first more thanks, Thanks. just the

Ralph Schlosstein

inconsequential, bit little was it more $X than Yes million.

Michael Needham

right, All thank you.

Operator

next question from And comes Hawken our Brennan UBS. with

You many proceed.

Brent Thill

on Hey good morning. Brent This is for Thill Brennan.

we M&A year lumpy good talk you a just a with where a year. little are bit business, comps? that understanding mean, I Just about was could is last

given about optimistic seems the you're So how be should we backlog. mean pretty it like I comps? still thinking

that just expectations think the if comps levels and anything are around just you compare? So

Ralph Schlosstein

expect a exited advisory And that business. the see to continue. our go in much make Well, him commented saying opening I of in announced strong in backlogs momentum we and as commented with the XX%? Do that we are our call. continued certainly XXXX will on from No. strong volume everything my transactions But without the missed end the that they or can't first our I revenues we we strong see are can number how I momentum quarter. we not up dollar which consistent knows with sure And remarks Brennan

Brent Thill

do. Will

Robert Walsh

in opportunities the The as of Ralph other of terms view they to point the recruiting and the indicated, equally would in I in John terms constructive both have an business is, add opportunity. addition view constructive

the we as some some will we'll of the of which we've we'll how beginning judgment year the at sit happens year at recruit, exactly and the to what effectively with we last successfully and year many judgment of to here ultimately to uncertainty revenue see. degree the as So picture the uncertainty best degree be as beginning had begun our with candidates be same of

Ralph Schlosstein

about downturn in more value in those if have Bob areas. do grow some out we in to have are at would to point likely geographic have I And long-term some our absolutely more the and as time still if talking we through be obviously we We best as got said some full I share the the in market will you at of certain to we before times past, that of which we're the at are to in in all have deepening certain enter happen it do to and the we that would business. last investing out. of a filling when number but going industries And a an stronger toward to decades, I'm or and two I've end period the the year. of year say we would enter whether we But John will did we point what modify year. our you information even to we intermediate comp point the year capabilities the we in create we opportunities see past as also our come that giving be product for of at cycle when as point, that confident the ratio I continue judgment year beginning significant invest next

Brent Thill

that. or expenses any Okay. hiring I a there's in appreciate this expenses you're think about similar there a like it in hike hiring just And is downturn. still thinking dividend downturn? the on if mean downturn keep I to investing? dividend how that should does be given we quarter, and you may change But how if down settled the versus the the a especially in downturn about in you sounds topic reflect just opportunities want the where

Ralph Schlosstein

goal modestly in people regardless who of would make their grow can't lot are categorical maintain to the 'XX I XXXX and XXXX I that. But we to to a be in to environment. made words statement. a dividend think want categorical or statements our always of the There don't do

John Weinberg

from We able don't people us available to cycle. when in highly the dividend talented policy restrict being they're intent to for the recruit

to be to strategy that to continue we recruit so, to cash sheet we level become the the the of to fire from And good whenever power sure they our have people grow because flow able of of available firm. provision is talent will make balance the the continue

Brent Thill

Okay, guys. thanks

Ralph Schlosstein

you. Thank

Operator

Jim question next comes from with Research. Mitchell Buckingham And our

may You proceed.

James Mitchell

of could SMDs these this Hey, accelerated XX%, net It's that good talk that been all headcount And hires SMD pipeline morning. promotes years? becoming growth? that. level basis really new from both you've to generating Maybe over a just I year few you close productivity Is the of about the generating pace? confident internal years, little gross how given like of part sustainable bit this the year, the to last in three the be and same a guess close bigger last for seems last are at internal

Ralph Schlosstein

external going just a are. always to are promotes little be Internal lumpy like hires

internal year is flow how this is almost last it know That to I self-sustaining thing. I at of was see SMDs XX% ultimately now and up eight it healthy years I promotions. you a if a look stock the our XX% nine that or from agrees that's And we a ago. is think create as very advisory look roughly promoted XX% you at or internally matter, the enterprise. third a John if general happen

fewer our sorted model our a I'm The a recent for business that won't have of three the how identical one terrific those is eligible that And of weren't will more of that now would fortunately a and and I over after year that's who X, virtually fewer have hired our two X, there as externally. backlog talent have and perfect is that productivity from some through I We point fit to years. we who next have internal promotion be many also group sure would which since we those next we a add, late have that John idea know well, make with observations it. of decide no promotions or X been we promotes the people committee in years. until

very we rigorous a have us served So process rigorous and process has that extraordinarily well.

John Weinberg

come are to that more about the good to continued who a you have for a outside continue promote My firm continue respect way Ralph And in to people that want we way increase we people perspective said, real highly them. clients what to And accomplish our to is through you can us tremendous with to develop those growth. and build group. SMD because need advising continue we with and fill of which there's drive continue to promotion to wide But is really really to And to and about it to great the realize the do to that capabilities to looking that's space trying opportunities relevant increase think if level on you desirable actually to think to also this join we've way, people can people. the as really talent good it, talented if come talent is that, for have we're more tried things team. and add if

become at adding really and that available So continue we limitation keep as will we to I and good anticipate people time. think this the don't that see I Ralph people to

Robert Walsh

Jim, it's Bob.

Ralph's that internal on matched evolved has a have over productivity ramped we they promotes on in up of the Just for they've those as look noted, productivity, and externally as point comments clearly hired we Ralph our to time. put when time back

a the expectations Ralph class your the same. productivity too are very performance As the before, It's articulate we've noted, the to year year as said so question watching them, do. carefully had soon but those and for we're this and the always as we standard classes two large of ramp

James Mitchell

on promotes is imagine internal I too. good pretty ROI the would Right,

there's take Okay, maybe just hires. a Europe done an opportunity of kind Is followup, you it guys have to laid kind out set wide Is priority? that's it's space are these of advantage rebound the you some it, fill restructuring? to the investing out hey want we to there it for lead is maybe Is it next, to most? staff of on that back, the build kind focus grow any there has with where of on just or or is

John Weinberg

that to very grow across board plus put we can places been on have on model We've are here. where here. talent have to tremendous We to like from business opportunities us. business plan going grow. who have really identified investment about A for areas we And Europe, specifically we only And as here room it. we've we is us. business been the But work in talking in said we're the really think need there And people much our driving There like the our and we here. for are think we we've

which we're kind actually for consistently as We're responsibly. whole of A things a with to are that Now at look uneconomic. in we've or bring bodies grow do of not is going we talent. going done and going to huge it. to crash to look number continue in We on grow virtually that We're we places the that A and opportunity we match to path reality definitely There businesses But we've and our where discussing is opportunities. been of Europe and there we're is we talent have also think the in whitespace all here. into number

that is and - to resonance I have big and are growing we're not continuing clients. our we're with brand We think

opportunities So board. really I increasing think are across the there

to going think to to is we're really that so, us. way. I look it now there continue a at don't limit And right

slow careful, one for person we at because a constraint real the So is, time. hire we very we're us go

James Mitchell

Okay, thanks for the help.

Operator

Brown question KBW. And comes our next from with Michael

proceed. may You

Michael Brown

guys. morning good Hi,

Ralph Schlosstein

morning. Good

Michael Brown

slightly would banks fees? a that they're kind hearing angle, of about investing focusing cap smaller different kind So and what talk also on about actually talked so question is of companies. as of to that first working just the we're from coverage largest expand the lower so really your fee broadening coverage down of on more, past or deals $X that cap generate moving deals kind could a about you include generate that would million In the into kind looking just of you've way

Ralph Schlosstein

No.

more We largest this think think anything bit other deals year. I cap we obviously a the four model in while if and six Yes, have good little market John of across as announced direction. we're so welcome indicated balance the the very business competition. in a we far

what if million I at average $X mean in our $XXX at it $XXX the meaningful you it's size meaning we a median in But if have obviously transactions you deal, And any we typically billion is year $X year. presence companies. it's this large-cap look billion. the of historically So But million look announced if look, no year-to-date. to idea have given you

among think also of presence one the our the strong So is pretty we of things do but I firms that have about lot independent we transactions, that's unique in franchise large-cap a transactions. a

Robert Walsh

was what quality than focused And size. was here found firm more on when this rather I came that I

And willing be not very may that so, to business were with companies big. we high-quality do

in large-cap if in think to do strong is business just the build middle a what the have we the strong very business market a all through so, that and to markets. And in we're And anything levels. on middle that, Having I also at Evercore. said upper continue trying

we middle some companies of service their companies in levels. that for provide done services involved all market well to while. that's to important strategy them and things. large-cap it I the are think quite we get we we've very know building in real because said different out and serve business as to most But really And a the also maintain of the

Michael Brown

conversely you of far then the being for kind year. Which been healthcare guys? this also of a had oil verticals pickup in closer kind expect for to space? M&A really large year saw of of energy You're in have conversations week so the and do related in space really just a you drifting verticals pickup in seeing quiter the environment, on this touched you consumer And kind a last deal we and the kind so And strong the Great. a barrel, $XX energy energy M&A?

Ralph Schlosstein

running Our busy very very, right They hard. are energy people very now. are

be say we terms board see terms and would now for to our we the there's a hard our be think intensified, provide of different levels have a volume because now. that to level, is couldn't working much vertical, high, right of the in business the say that situations seem clients. but in And bankers across activity pretty really value lot for area continues that's it quiet the I respect with set discussions the activity obviously that maybe So really in healthy in right level to of to I of I are group energy any us. pretty

Michael Brown

Okay that's great. Thank you for taking my questions.

Ralph Schlosstein

thank Yep, you.

Operator

next our Research. Wolfe question And Chubak with comes Steven from

may You proceed.

Unidentified Analyst

to is you on you should up in just how per uptick employee fixed had Steven. a some [ph] If that trajectory of so going related this sense to non-comps that investments expect non-comp going wanted about get ask could in the for we some kind forward, forward that expenses, of cited traject the of a had cited and to like think if uptick just of facilities, non-comp do looks of you the filling the [indiscernible] just should is bit Hi I was little also how year-on-year, just that continue?

Ralph Schlosstein

primary a us. employee more of The the investing in expenses we've for year average than the up in significantly rather that the is per for is my non-compensation had with headcount I fact growth said a facilities. driver quarter consistent little remarks we're the So bit for the that as discussion remains

square than at probably a of will people. we've added So That couple normalize, years. footage over, a on we've but added faster rate

So heads are the driver.

expenses is As our a the going But the introduce business and in and related the the bit the clients growth transaction first but it from change been I had underwriting of be quarter. did impact certainly a it of [indiscernible]. our has as advisory engagements, mention in modest of to little presentation will driver variability,

Unidentified Analyst

wanted a forward sense quick of just just had looks then the what followup moment? energy know you get restructuring going the the business on is retail I great, strengthen what like sectors. a to outlook I to and outlook, at and that Okay backlog your for cited the and

Ralph Schlosstein

default including if are the as lows. to fact the that time in advisory answer every all up at year I in our said were last category know, another restructuring levels question, You revenues notwithstanding almost

years think We on inevitably other able than So two we've point to three the at positioned no ago, happens. But we've broad sector activity – scale saw activity retail a been are pickup added talent or in capitalize this I that energy think we like we restructuring of is when certainly in there isolated companies in or relatively up pick well in time. distressed area. like

John Weinberg

business to to added in lead other that we've And we may the is business done the thing so think that, we debtor we've with way the to cover we I our have an and velocity, what increasingly the would add element time traditionally that creditor more really strong to is clients engaged over business more on side, clients generally. restructuring

Unidentified Analyst

Okay great, thanks for taking my questions.

Ralph Schlosstein

you. Thank

Operator

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

Ralph Schlosstein

to talking much forward time Thank look we Take very you and in for care. three to you your months.

Operator

first conference and results Ladies today's XXXX financial concludes call. Evercore's quarter this gentlemen,

a disconnect. may have day. now great Everyone You

Evercore (EVR) 24 Apr 192019 Q1 Earnings call transcript