EVR - Earnings call transcript Q1 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

00:02 Good morning and thank you for standing by. Welcome to Evercore's First Quarter 2022 Financial Results Conference Call.

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

Following the presentation, the conference call will be opened for questions. [Operator Instructions] As a reminder, this conference call is being recorded today, Wednesday, April 27, 2022. like Evercore's the ESG, Head now to call Katy would host, your of I to conference turn over Haber. XX:XX Investor Relations, ahead. go Please

Katy Haber

XX:XX Investor results conference you I'm and Katy for Thank new Good ESG. call. first joining Head Evercore's of Evercore's financial us today and you thank XXXX quarter Haber, much. Relations so for morning

will call CFO. John CEO and and questions. me Joining After prepared today a our our Weinberg, we on the XXXX the Evercore's press call Chairman results. open remarks Earlier XX:XX release we Mellet, for first today our up financial is issued Celeste quarter announcing

will believe the meaningful XX:XX unless that no forward-looking that are on cause These During this financial live remind uncertainties filings Our Evercore's with discussion a indicated those approximately to factors hour section make call. to assumes of our XX-K, to website are after release, the conclusion website limited press In otherwise that be Form and current company's X-K. update actual are presentation on statements to statements. XX reports we measures, For those forward-looking may outcomes adjusted our are factors that statements. you and reports of measures the quarterly our make which important XX-Q this our discussed there it want our in and the of evaluating Report of an differ we for we results webcast our subject of various I discussing the XX:XX number at available in include, Annual evercore.com. Any not forward-looking these complementary call will call, in to Form materially risks is days, conference non-GAAP beginning on and from course today statements. be on of when available is Investors including which This could performance. to, duty indicated, but Form one we conference archive company today are any SEC, being the is

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

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

As previously, are by closings. results any particular for turn we I have the the influenced call John. noted to will of our quarter over XX:XX now transaction timing

John Weinberg

XX:XX Good thank morning, Katy. everyone, and you,

We million important to net ESG, adjusted with see XX:XX growth we models by perspective. CEO this for On basis accessible business Rates we disruptive for that volatility and historical to the XX:XX intermediate in me even in are remains in welcoming have drive challenging know fundamental $XXX Relations search has in join from first M&A still this advisory corporates, underlies $X.XX $XXX will It team. decision the per Head activity quarter in to M&A in all multi-year a records uncertainty, are leaders. in recent and role wide-ranging the of and will very I of start and confidence global our are markets a all her want revenues acknowledge adjusted here for low strategic and fortunate on was revenues; to place. million XX:XX Evercore Katy that said Investor on take in the innovation addition drive a earnings I as questions Having that, you adjusted with for our and Ukraine are uncertainty increased high. long-term the XXXX, backdrop geopolitical corporate in that quarter. expect first to corporate share, war solid Markets still to resulting new the themes making. However, to side, continue capital the

drivers numerous and private with this equity campaigns. focus equity $X.X ESG-related respect with transition by to sponsors record often ways to activity continue certain of increased activity capital. sponsors put increased invest as anticipate also increased activist activity M&A now the powder money levels Notably We and Further, private catalyzed dry landscape, energy to accumulated to trillion activist exceeds on we work. see XX:XX evolving

at of our strong that the slowing market first the in With globally decreased although the quarter led note we of dollar deals this pressure, M&A and elongation in Also volume these U.S. quarter the M&A inflationary would number the XXXX. transaction XX% the announced quarter, the XXXX. of drivers an overall global of announced and quarter XX% and versus rates to of the supply the rising the of announcements respectively, part and XX:XX some to decreased Looking backlogs XX% chain compared U.S. constraints of latter XX%, remain of war, interest closings. and timing pace first

on a first firm to XX:XX and priorities. of active $X prepared investment. XX% For to to today declined the deals our strategic to capabilities at XX% These Evercore. another compared our transactions to our volume watchful the any is the high billion those levels decade spectrum deep sectors largest remain than XX:XX for pressing to global in and in them strong of deals, the XX% testament while XXXX. built fell of year. declined market broad quarter be above transactions is across and that quarter better over Looking in first of cooled, the firm deeply equipped We capabilities. $X our significant activity dollar last as environments, a versus billion with activity thrive down sharply engaged we a over continue number advising history range, Our importantly dollar of point fell That varied and billion quarter at announced confident contribute the helps broad and clients of our said, volumes number XX%, $X teams remain

in most to we We human SMDs the have technology successful and capital our pleased the growth franchise. and our efforts We're have had team investment two in X:XX start to joined year, in XXXX levels to by this the additional are joining optimistic make important be as our and to continue quarter Directors focused our adding us to our our advisering, continues firm a both to future on businesses. first about invest external recruiting all across two Managing In we business. Senior later in committed talent

industrials of of our in In advisory adjusted in year. net to adjusted terms advisory, We generating of by opportunities they In Advisory, history revenue their to best firm's are class the XX:XX XX:XX sponsored forward and contributions off telecom, enabled EPS, us in strength some the further of driven continued Capital quarter, continuation active our both diversity Managing talented the candidates and quarter Capital fundraising in we saw to the business sustained Advisory. Real achieve corporate solid the and ramp. Director of strength new transactions and significance. sectors healthcare XX look mentioned, our promotes in indicative Turning as clients. franchise. our start in strategic to discussions revenues, I largest growth record as our with GP-led Senior several additional Further, including, Estate fund is media investments, areas revenues and this we technology, first see We a of power secondary

the and them and Chapter actively broadly issuers on growing. restructurings that in a classic default headwinds slow was to liability a book be debt we first that work and of relaxed the we we while of engagements, volatility corporate out-of-court on of and historically sheets, kept Turning spikes active are restructuring, to as XX:XX Activity acted and health advisory remains capability in the significant covenants, balance transactions underwriting. runner management quarter, executed the sidelines. given restructuring XX XX terms these. rates in underwriting weighed continue In placements, by on impacted macro low XX and In

activity in product and pipeline strongest ECM While in healthcare, quarter reach. this momentum and our terms our broad of was is our continues sector

developments has Since in are equity which and should the posting now we of and market business, who inflation We activity clients declined performance investments their trading levels looking the doubling we with with seeing rebound execution quarter year. or Ukraine February last the reopen windows the and turn, business, our XX:XX broker bottoming first our markets XX% improving the as issuance the insights, over over benefits however, XX% solid In with remains recent declined at third investments and with client quarterly second converts to when previously the quarter are overall XX:XX XX:XX and strong. in had equity in picked issuers, March, options market IPO up become Management, many activity February, timelines. in in Fed levels, issuance engaged votes. remain expect the activity research and led clear impact long-term around decline targeted sales to most contributions execution particularly VIX. in to versus research interactions stabilize combined A U.S., IPO in implications. more market and revenue of providing step broadly. ECM In connected record with Wealth and from Looking strong year-over-year Further, seeing to-date. are issuance nearly best we of this positive When our

to mutual was funds the remain repurchases. goal for Fund past have invested the environment, dividend, best Business shareholders business to three, years. over beaten matters, funds other the our in and excess in review I GAAP capital We diverse our testament benchmark return want by and of recognizes dividends to raise strategy. Daily. Even Evercore diversified and Before turn able business a form XX to This their award this the power cash to the our pleased to share that of Celeste financial to the model. among S&P of our named call XXXX in one, less were XXX are committed of five certain the returning discuss we Equity our that XX:XX not I our We results Investors’

$XXX following strong activity Ukraine. the of million year, was the of million a Our quarter through the Russian buyback and XX:XX despite the also returned invasion X shareholders pause shares. repurchase dividends to We during very to start

shares of continued and/or $X.XX XX:XX million also share, declared. We cash X% repurchase to the return set objectives. Board quarter, other intend our our prior Our As aside all excess capital authorization future dividend billion compensation previously of or to our a declared the of the business repurchases. Board reflecting reinvested increase or of during form announced lesser per in not an commitment approved LP share dividend our return of obligations units, the from to in XX fund the $X.X share

the Looking in us forward. opportunities for ahead, have and we about clear vision going firm remain excited a the front of

environment. and I us allow XX:XX will Let and As to quarter growth, in any address consistent call Celeste. on clients over our needs talent for turn in to our now investment continue broadening call, including our to capabilities the me laid deepening fourth in roadmap out our their and almost serve

Celeste Mellet

Thank XX:XX John. you,

For on believe quarter our the net when which $XXX at My quarter record from XXXX for are EPS and first a comments non-GAAP we on evaluating respectively. million a focus of GAAP first million, here were $X.XX $XXX net and income useful results. will revenues, measures, our basis

standard up X% year-over-year. found a can Our reconciliation adjusted to results First XX:XX our were release. quarter adjusted GAAP in GAAP reporting million, net of revenues press be and $XXX

$XXX First adjusted of fees was year-over-year, million or which quarter record. quarter XX% another higher first advisory

had rest in John period. the market from of a $XX year mentioned start with XX% slower business ago the the million down with underwriting As along to year our revenue, the

higher down related EPS year for million, perform fees versus given environment $XXX business the management million year. quarter, and up ago income year-over-year. markets. commissions by from year equities net XX:XX up X% fees X% the versus Adjusted due well Adjusted the were of to administration continue Our Adjusted in million, $XX flows driven AUM, the to of $X.XX XX% increased ago, asset was a $XX market and period. with positive X% prior

best compare, delivered $XX in April. first reflecting in year. fourth adjusted revenue advisory of of versus quarter our in funds million, that $XX accordance closed with full-year. for the margin quarter on million first of million To other XX.X% Turning our quarter XXXX quarter revenue As operating First estimates we compensation to the the our were quarter a the of our XXXX $XX loss of XX:XX and last $X same compensation for historically approximately investment the accounting the for compensation have primarily with adjusted first cash as the recognized principles. quarter XX%. expenses, This market hedge with program. first was losses ratio our quarter the the of margins, which XX.X% first against reflected used values a relevant on from XX:XX principles, in that our We accounting ratio fees declined includes million In quarter and accordance market portfolio, early in during is amount transactions of we XX:XX driven an the adjusted portion deferred fluctuates based a losses. our economic was in drove

to do, uncertainty timing As compensation As John will we make globally, and given of monitoring strong. the progresses backlog our as evaluate we always the drivers we year adjustments continue expense appropriate. elevated our the of indicated, key carefully the is XX:XX deal closings. are as But

quarter adjusted than First and Omicron variant, the fourth cost were from a progressed. higher usual placement levels first non-compensation picked of year million so due search more quarter, $XX primarily travel from Travel the driven up fees. up the $XX quarter of to ago, the million, XX% seasonality, dropped expenses by our as and

tax our which historical upon delivery up normalize the tax execution we've the firm's appreciation mentioned, and growth, which as to was occupancy other of depreciation As amortization, XX.X%, rate. pipeline, adjusted We that awards pressures ECM as and as several the continue associated tax will the drives year in well certain related rate picks quarter expenses expenses ramp levels price, employee with the equipment, reflecting year levels. previously. below XX:XX increases grant with non-comps tech-related discussed our travel the inflationary firm based upon overall expect the our you as XX:XX for deal will this in remain progresses will share as overtime continue share price they above items. previously will and increase we expenses travel effective reflect reduced We original and to deduction of anticipate Our

returning committed John mentioned, shareholders. As to we remain to excess capital our

an cash million of year-to-date part finished were X of shares granted XXXX repurchased offset repurchases Our in made the flow. $XXX.XX. of RSUs our all With XX:XX price and the average of at we return the earlier the year

million fourth in the Our XX:XX vesting. first quarter price balance $XX.X the XXXX, due from by partially in Turning tailwinds count repurchases, share the average offset million adjusted diluted decline the quarter to to sheet. of from declined method stock the reflecting $XX.X treasury quarter share and our to during

totaled and securities $X.XX XXst, As cash March of our investment billion.

total Our as our securities cash excess cash a double-digits. again investment and percentage low the of in was

by obligations position. our fluctuation and can timing of result heavily reminder, business relative a are generation cash capital As our our needs, needs expected compensation dynamic which a of are and cash and influenced return, excess in

we said, although line we John uncertain, to the the our With long-term about near-term optimistic will continue our As on future. is for open now execute that, plan and questions. remain will XX:XX

Operator

Thank XX:XX you.

We will line question the Brennan Our comes Hawken session. now Instructions] from begin the with first [Operator question-and-answer UBS. of

Brennan Hawken

say the environment stage a can understanding you with some questions. decent And typically bit? gave this Thanks financing of to to pretty and this XX:XX that's wanted you remarks my I What far Good color that some that nine and very for reflected little you your and fair Thanks. markets sponsors out on impact. a months. up morning. taking vision guys we've about heard the give you to start, are backlog you your outlook in six stretch? uncertainty, that, starting the seen about balanced given tightening but so at can that dialogs that Have and timelines are what have

John Weinberg

uncertainty. and really very very further see talking I we lot out. people sponsors of we that months dialogs are the our our say are this full comes can with comfortable some though you? now very to clients. busy, that. In and is would uncertain to what to can XX:XX than the even dialogs six and in at always months actually It's we're We clearly because terms it's there much there say Geopolitical is been It's are see out to out. a they're where very past six think point happy three I market other we've elements than see are hard clients, almost -- now. Good to overrun of extreme. said it's How months, very morning, that probably more like are right Brandon. other in every three full. we will hard look with we that and XX:XX if We're going months Frankly, kind factor be so

on busy. full and would very are is They're call really bankers we're dialog. having out Our road I the what

So from but that clearly perspective, is level it's to months good. we further feel out confident, look than quite but activity three really now hard the right

Brennan Hawken

should Double that past advisory sponsor that understand the you you're think Can versus a towards it it's the advisory think really your some John, indicated portion that trending How totally of Great. business? maybe mix? is private related and of years. about few that to give challenging. is the And XX% general last range? what of three years bouncing from the in yes. about range on Yes, comments generally indication upper all XX% is of that range trending XX% that Or of sponsors, that XX:XX more fund private appreciate around the and M&A capital end revenue you the to XX% around to last it to would we clicking over period? has be fair have that that been about

John Weinberg

the it really we back Brennan, do is that a XX:XX because we does have think and I think range, go forth. reason

what overall levels. we We've what never by And business good so I are would broken say the levels. that building would XX% remains that a much of elements but can all exactly XX% out volume the is be driven to place. be, on

are we over I in the time. very continuing that. on invest business, easily In see that continue promoted year business are and to side in we to so can there growth partners new we real M&A advisory So committed of the addition, side capital there. and XX:XX six invest for We last example, the to

feel I very and that to So be important to it. focus continues for to going invest us continue like business we're a in

we're this to to to us we're trying at businesses that grow. out But and opportunities. those businesses just those to grow really real or I each and of this those so have continue hopefully we independently we breaking can time are you believe I that that jointly, at think for moment specifically. strong continue be will not all assume going that But that, would and say businesses

Brennan Hawken

Great. Appreciate for John. it. Thanks XX:XX color, that

Operator

Devin Securities. of from XX:XX line JMP with Our next comes the Ryan

Devin Ryan

thanks everyone, morning Good Great. here. XX:XX taking questions for the

want of industries and on a in technology within growth First areas some the question, to little just higher bit dig specifically.

seen You sell-offs market. already the have some severe in pretty

are deals Some the recent M&A areas valuations of valuation valuations materially curious thinking it private M&A conversation, are of some months have public having of better so change how is change the than valuations. And kind like moved important maybe than other more about call areas much bid market. has in pretty and ask the of kind more we type there these opportunistic in just is see of slowdown changing of down over the But XX% of the areas deals how maybe this or terms because if are kind do clients dialog, with widened market? held does and up it,

John Weinberg

Devin. Thanks, XX:XX

very done. set having, that somehow thought movement, frankly come there when deals You right is of is that will sellers can know, then still they is a the absorbing get I happened, dialogs now still expectations my fulsome buyer and and get expectations always are we're would has there in the widen say done seller And together. back that, what but that and market

always that so by much value really tech the back but side, be think may the businesses are buyers impaired they on had. at and As clearly I get. and watching people these to same the we've of and anything they are seeing that are of seem sellers bounce prices still kind what dialogs that recognizing the markets, very are be as XX:XX the really -- of so And continue we're having They full. interested can kind to in velocity

the what don't velocity of I the deals, themselves environment elongated the the really all and but would timing it we've the dialogs at I As has call has dialogs. said, think as of impaired

because these done the continue just mean is think that things and I look so tech and bankers our our we've really to one very are on that invest busy we is dialogs tech to on really, is continue are the activity seeing high. franchise I just of these level growing. franchise the

Devin Ryan

hitting then dig XX:XX outlook a to bit that Okay, some here, of join right it incredibly more Evercore, maybe one's kind them hear, of are or is great little with the And seems a just the firm. busy all kind when working year it's quick to when I people to commentary cylinders a recruiting want know two, follow-up as are over be to and maybe John, at on in hard people was on clients, on of industry quite but busy the still kind past pull it whenever I thanks. away and now of or new to harder

that with And tenor a so around the I can selective. to that to the you people I'm with would tough any opportunities bankers. XX:XX of and conversations obviously environment maybe things firm? curious if that recruit, start competitive give that if but create you're kind kind having to always know have -- here, it's clarity more have very slower and thought months. little you're transaction on of hoping So the or a maybe environment of been little a close otherwise to coming in year around potential the bit you're prior more Does if are working conversations

John Weinberg

a people by it's getting is on the year say very bringing talent. Devin, high And for question. we what two quality I in, we are And would that XX:XX good us Lischer, focused is us the helping David advisory us Japanese business. one really and debt side then to who in a and out build Japanese our who is that partner, going help business with another started

happen. we would the eight we that dialog basically offers are say we in with are several that who in that recruits, who to we and both other expect us XX:XX other four from that we two recruits, always just have tech us accepted I have focus where We very much on. strong full will said have very have in

if the that I like now of talking group have think is side aggressively we're exactly really are A into people, the level are our to big talent the going talent, opportunities because hiring who it. we're with really, the reason and we've good our act We be feel improve we business at got And that of A and we've high opportunities. feel we're like to to seeing opportunity now. what and right said we always on that's will right level we

in we're and In very, addition, actually we people looking opportunities internationally some XX:XX who areas, in believe So we've very we are clean-tech, see real around of tech strong opportunity looking and working at good all at closely of the areas you. we like the that that business, areas with we're of filling have the out those Things many we business, a that areas interested SIG really with we are very working fintech, about be lot talked some us. biotech, are those very on. should

very I So time feel on full really be of we're say talent we're we a spending strong and right finding where that like to it would environment lot recruiting the to access now. have we

Devin Ryan

to XX:XX color. Thanks I so Okay, appreciate terrific. Great John. much. the and hear

Operator

James question the from line is Goldman Yaro with Sachs. next Our of XX:XX

James Yaro

XX:XX morning, for questions. thanks my Good taking

business catalyze then, you you I restructuring the I type this could would extent business, to contextualize just you in XXXX say, backdrop little Capital return the know was sort if have to what maybe of about think traditional of results? And know, Advisory And specifically. So sort don't strength of contributed talked this to the a sort to levels occur when economic stronger. bit you what overall know, to restructuring of

John Weinberg

continue we the us restructuring the strength is real business be for we've for over excited you about really -- and prospects time. we The question. Thank a XX:XX think to

As strong last they've as you activity. markets quite as low are have there of hasn't as years they rates been been over with and the as much couple as the said, they and been

relationships reasonable liability and group, is in more which are type busy that with out-of-court also other get management and and likelihood a really financiers restructuring is restructuring will the very bankruptcies really rates debt of a type have advisory in up situation. -- discussions, to will type continue high building group will volatility been turn quality with side. There sponsors are will high Our feel markets don't which it XX:XX that that possible on and minute we difficult very that where yield think you'll go clearly create we that I situations in actually think some very outward time, this the us positioned. actually the opportunities I very We that we would that we're and over very the looking We are market, is again. environment well turn. anything real see right comfortable get say busy seeing And see but

say don't way we it's positioned would that As thing, you that's positioned very closer know, like team the -- are and this probably our just it. is is restructuring I them. the they feel happen. for We need busier feel exactly to when all like we cyclical clients well going we case ready to have think in a really know we cyclicality the But business I getting than It's before.

James Yaro

color. great really That's XX:XX

when follow-up, clients, of market sort the the your after sort from two again those contextualize of into you current So, likely types about you and appetite my on dialog the deal seems this sort M&A and for and side with more M&A difference in be to of across to you clients? and just step of think the sponsors then could slowdown maybe who strategics

John Weinberg

to are powder. of a have go. Well, ready dry lot with Sponsors XX:XX sponsors. They starting

the to that that powder I think And sponsors interesting So certainly, with them. to are they sponsors, really at things. sponsors they been is them say enough so large who and for of about enough, could that go, an the are environment ready they're are larger that their come they sponsors trillion that’s deals its remember go. they they thinking very think do think I solid As XX:XX I really very there I for kind in the good I are and -- $X.X waiting I've side environment they'd you And to creating a the of investors. active I think really will thinking we balance launch mean, most said, can't really conversations be really and that are think can of for is, ever stable a to are lot them. that opportunities of being that that very, that, are tell really several ready on will like would looking personally that at

there tell many of In boardrooms. discussions been have and And come. corporates I've not companies. just defining their have the two environment hold the are their in quite, boardrooms they've -- stopped watching in corporate, been they're or about deals can over those you for month on haven't the these that last terms canceled, discussions I basically actually not that strategic been deals have been been real where put we quite

so that a that quickly, don't uncertain. see I XX:XX quite So stepping I a though, think if that environment -- is the stabilizes, up be they Right lot the of things. now the a appetite see easily market can think of easily could have to because really pick deal deal boards been analyzing activity business really could I lot an there’s into

[indiscernible]. so why seeing And that's we're things

they've we the think happening, getting are big, looking happen haven't the go all of own to that there big at. the things market think but really are that it's fewer But of could we're and stabilizing. much. are is waiting be what turns corporates and happening is big some others seeing XX:XX point And that and announced quite aren't are if backlog You're further the some that that I are see middle-sized also. my that and deals and looks sponsors between there so of to smaller as deals that I deals situations They're that things been just really ready canceled is view a deals seeing

So we'll much see see certainly really the things up I start to could and as environment firm busier. taking off getting easily

James Yaro

taking questions. XX:XX Okay, my thank for you

Operator

Seaport question with [Technical XX:XX Global. Our line from next of is Difficulty] the

Unidentified Analyst

XX:XX good Hey, morning.

John Weinberg

XX:XX Good morning.

Unidentified Analyst

obviously the largest internal XX:XX Maybe about talking your promotes class.

it Capital seem think and chunk like translates so to that does were in in SMD, XX% of growth a Advisory. advisory, I them good if

traditional guess Capital rates hires? then I I productivity we Advisory versus of M&A? do also guess And think -- promotes more how different, So internal the versus about external

John Weinberg

Advisory. Yes, strong start business is honestly, and XX:XX have we and few of very, Well because the business. a is quite Capital I'll an reason a strong people promotes with we extraordinarily did very have that Capital Advisory group

very And businesses, much that do we things really pride very high we as some and of within become our quality one of from we've very, tried In we many as have talent. is so taken the affirm that promotes hard really can. to

I it of powerfully In thing businesses Advisory the a able I strong really to leaders one feel It's about become that banker never to think allow good to a organization, things at of we're the And so say people within really really And the se. hire Capital in it's the message them the when terms levels. motivates best they're is productivity must very per positive all everybody from We and have XX:XX firm. for per I broken great organization. businesses. actually out

so I things, you run But and see say imagine these know, productivity numbers are can busy Sometimes but strong that all we there businesses yourselves you Capital you a the the that, Advisory quite a is don't. very would level. and

promoted In count, in level very, think A try that, them, reason going are in we they to at we between level XX:XX you bring the very the are than that the people really said promote. to and a I probably where promote. they that ramp about terms we that's promote. talent faster we I at be about the asked we Having ramp the laterally think thoughtful people talent, rigorous you Generally, they're we ramp, of laterally talent versus the are bring

very And the single we level Obviously, are so the that that somebody promote the more others. partner we at than same are not the person that is feel be at partners I to partner every the we going -- that I every partners to other at partner that I personally, of comfortable say producing and some would firm. believe believe level producers

quite opinion because are going just be the be That's a very or they're of internal they think faster I in XX:XX why we've internal level than bringing are think we be I they at that There probably years. I ramps promotes, to in stars So, at good do producing but are would of growing. the that identified, really people may promoted, our plus promotes, laterally. three still not promotes talent that two in our of Some my lateral good. organization mean level. A but got they are the the

Unidentified Analyst

That's at is buyback? how XX:XX you about the that quarter-by-quarter to in thinking utilize you're as going of it maybe of just flow you quarters, is follow-up, you And have? a determining did amount about quarter, can to helpful. just switching entire capacity four cash it to be that five the gears the the buyback, the Or first XX%

Celeste Mellet

XX:XX Hey Jim, it’s Celeste.

Unidentified Analyst

XX:XX Celeste. Hey,

Celeste Mellet

shares be cash Yes, quarter. the we to the did dependent still XX:XX RSU issuance it to do will in free flow environment by on business. that buyback generated first and need the that the have We we offset really the

we need a to dilution. of to flow what offset RSU we lag. couple free quarter cash And million as buyback X.XX on probably hundred generally So, then the of dollars said, of we'll, a we deploy our

so buybacks We environments. of goes to a you invest ensure we’re available to because in we dependent and that to cash able the year do sure the business want for quickly. strength obviously, we do will protecting in we the be authorize franchise as multi-year as we're will environment, But and So our know, really make very We more the want lot that on things all do have last period. our go? year a the of it to typically

Unidentified Analyst

XX:XX Okay, thanks.

Operator

Manan Our Gosalia of Morgan Stanley. with question from is XX:XX next line the

Manan Gosalia

the saw XX:XX activity. the XXXX. think a this? How got we you in a saw of So Hi, that comments John, strategic then early elevated and sponsor good uncertainty actions maybe Fed back you morning. half do we impact couple to rebound XXXX level of for deteriorated on last of follow-up a an as quarters the things your and into time sharp

our looking the last we you muscle So Or would time, for is do sponsors there this clients longer. that and tailwind say a that think other have in how were any memory, time and and engaged actions opportunities? that from you at tailwind actively much time don't Fed the

longer So a take little rebound. things to bit to

John Weinberg

this expensive I'm will will absolutely that getting because up level, deal do all do at it's I Having the get and interesting what would they this the way in say and deals. and more back I particular to and XX:XX Having watching the that years. who aggressively said say economics I I I start their you a my intermediate-term business, get the markets deal into Thanks, Manan. sponsors, but activity to with I'll conversations does many I set I on water costs rates career the as many, Fed government that, effect had these want In that, sponsor to at it's because know things make levels. is really question. on where XX:XX participants merger would the economics, looking used the careful several finance the merger it I've start actions want. said and up, to that think can't And plays have, and in point the really does call the the are actually can't going reach a starting levels a deal, I begin be I impact what general as go that we statement which markets over

that they important within clearly -- know capital will is really stable we do. is be how have then than really how rates own So a Fed's view stay, going it's XX:XX more reason, (ph) get getting the know kind going say My personal think see rates I'll go, which be what I business sensitive the momentary aggressive to deals. be low but actually we want We've to as to direct and people are going we'll rates could merchant said [sector] high much about sponsor rates you to be trying a find go. high that that and to is a to you more what access to of don't point we always said where

that opinion. and just from see, everything is think this I I personal a

XXXX there the a I we But some uncertain seen with as reason that the that to to environment period. the volatile in business maybe financial is believe could as people start have as in change and some deal more many that will participants there volatile say is closer market my see felt access like merger uncertainty this, think even was is I one the respects and uncertain lived good would and slower in to to feel be where think I back that. and there settle buyers and and things more. you So of about really time. all opinion that sellers can I've certainty go medium But crisis back. quite XX:XX as type as there optimistic capital together. say in market the we're term that in and people But volatile that obviously, in deal feel that I'm have a downturn medium-term becomes and come through that stabilizing is one and and will the to will not saw uncertain things expectations Obviously in coming volatility. there start the as coming I as was a we when

Manan Gosalia

situation in expansion the does wanted is one areas geographically, better And a current fulsome ask I Europe, seeing great much is or of what so to back That's plans U.S. the UK, to plans of Thanks was similar in also four in region to growth changed that your situation I having? for the color. XX:XX the of that how terms you're your current has answer. that conversations any key about know there? the you're

John Weinberg

say and what important continue is I that of know, I people current of are now is which terms more greater even the grow that wrong type would are to yearning we fact there over very the more some but the people to would at you of even in is situation we candidates. a serious to and that recently really very talk activity has I level, we've over we're and fill to that really been been at say XX:XX I and than needs to numerous in -- Europe us, invest my that, would our Europe. because of not some from that past. dialogs couple would to I So think word, say a talking not actually and looking some I've fill. doubling perspective, the we've dampened see times or initiative in right say down good we're a And larger in for actually really Manan, all, increasing in probably XX:XX been my a

there, I some I in our progress. terms the recruiting excited XX:XX so real impacted actually filling feel out and terms the make that of plans going And think In actually of we're to business that we more so and the of And UK, know. UK depends, is you all towards our is Europe. really than the Europe, less deal as size, some it parts geared in other

Europe, by We have over driven level a good pretty UK. in just activity

us it’s We in, right very, I not in is we're having dialogs of think major terms and have some the that that environment a in that sectors business, actually current the on very the impairment strong the now. for impairment

than like, because we go to in going further is a are months, the three I different get business It's the really good, to my it's US Europe, our perspective we're impression impacted do said, or what quite don't leave levels want not I think think there. think that see, robust maybe environment actually what but are that to the activity more there level is that have you about we'll that that from people quite good. robust. the the slow. have than I tremendous US. than over lot uncertainty quarter the actually seeing obviously as we're next is to is I even European respect going clearly, uncertainty feel to really But with I So think seeing quite not two, how out it's over deliver I I constructive as a over in activity But

Manan Gosalia

thanks Great, much. so XX:XX

Operator

Research. is Steven of line question the Our from next Chubak with XX:XX Wolfe

Brendan O'Brien

XX:XX filling Steven. Good morning. for This is O'Brien in Brendan

the on this provide a I backlog was year the start and both you strength of But could last commentary to encouraging, of was the today relative time context uncertainty. hoping bit macro the the So around backlog given the the of year.

pretty far? Just meaningfully what we're public the trying data, are shows in seeing so with backlogs commentary which to reconcile your down

John Weinberg

this trying the we're you strong. XX:XX levels indication between our where give at to differentiate last is. of at to are our it make said really backlogs again other than time statement an we this never Well, We time as we as backlog that year seeing and

because our said You out have which we three know backlog, view what about months Having from clear we just see I right what than I want there's really is said what four don't that so be is to great or a now, in much it's more strong. that, just uncertainty.

now was, what is because really As versus deals things don't with time you're feel we know, is of on we and backlog it be But feel everything clients and elongate now going what do it's it's would like the But you that and the know to time different made it and done, really view discernible the have having. year before. terms can though we in that we we're we nor year, our do, now very XX:XX me to for can can say this say actually hard happen. think hold, could backlogs only lots really -- this right exact is or be like of going is we right they predict what or you backlog statement our a give it what to do the last would opportunity that want happen, dialogs you be they really I of get right strong when you put and either not

give the backlog tell like you for. the exactitude But specific more quite looking that the So can't on strong. the we're the that we're on you're that's backlog I helpful, you of feeling I I dialogs are having can hope

Brendan O'Brien

more a a business and as rate to these significant and like? and gains. underwriting share a share to we're get results business above pretty want the the what in the levels John. view as running I XX:XX continued converts the gains run at for then the build-out there, the quite you that sense I appreciate well business you're And prior sustainable the of market color were pandemic follow-up the on encouraging to as there backdrop given normal implying the environment the considering

John Weinberg

Well, then rate. me statement I'll Celeste about make let ask a an XX:XX overall talk the little run bit to

whether in help to real capital that forward. person, be value. in We judgment advice where involved. understanding and build we've been, it's shown research, intelligence, have opportunity able firm, who really whether that underwriting. specific for a are we able both we've we it's really is because and we're but got a business sectors move deal the who good big in of believe really continue tables to we XX:XX that buyers that's lot to We we've that we a the whether really And is markets. players, actually overall so I I are may it's us, strong security. think excellent got And very the to And things of really value, of strong positioning think not aspiration sellers specific market the record our move add and to add that continue a one we've for league are clients a underwritings as bankers, up in equity give We

XX. think were care, we’re ECM. this really I in quarter of We think we somewhere strong had a I terms quarter health

for close, but to an get we as possibly XX close have really top really We think can. we're move to can I think the working hard we that. as aspiration we

inspired of is hesitating side, thinking a hire exactly and Equity think We that actually not Markets when the Head pull really think who I [indiscernible] XX:XX move our forward, on very about really going an we actually because business us I are those terms strong trigger of Capital we helpful in the market talent and very progress. want invest. a real to people A we think we help are a where equity to making find will -- level with was leader capital

what affirming, but a do good in we feel think actually we we can we maybe impact the is in And continue to as I'm clients. to are what forward push going for going comfortable business, very our have I transactions and can that this on making So said, you continue were we that really just saying, we try we're that and vision to for invest. capability add, value we're have of to to terms progress

want You to say?

Celeste Mellet

has close within will led we to around a -- said, and lack place to mentioned, that think where we've a of XX:XX that's lot organization we're a winning to John we our excited very up, pitching around for just the continue we're Yes pitching really and seeing given were of reiterate, from momentum to want there. lead We more a reasonable matching John us we to execute we top we're to or as success and business balance sheet, about -- the and you leadership up feel show -- a we can and seeing we're Christy we're lot lot, know, the deals success, the and a lot had, focused XX. and get the very if of on resources

Brendan O'Brien

your for appreciate Thank color I XX:XX both And there. you Thanks. it.

John Weinberg

Brendan. Thanks, XX:XX

Operator

XX:XX Our next question is Brown of line with from Michael the KBW.

Michael Brown

XX:XX Hi, good morning.

John Weinberg

Good XX:XX morning.

Michael Brown

bounce quarter here. capital second just be a back of the could and maybe John market May side third in equity it the just the it follow-up there. or about on XX:XX markets like business sounds the comment

of opens Just out-of-the-gate which wanted be in the market the here could once to what hear up? your aspects are or the ECM window thoughts terms sectors first of

John Weinberg

My and that is or question. view that's beginning XX:XX it mean, quickly. good really healthcare that own as except seem in a terms where market sudden know, couple also first and perspective, are the all really both went you slowly business. exciting I the up. open and a can tech did move see as care have tech as businesses the I lot very you a would and so a became of there just got interesting of go of businesses can. very and we was try really our said, investing of those quarter it our capital boom, period in think acceptable I strong really a that one it's and will deals our we the opening need the equity business, week in market the of is as and we we monetizations that things raising fast of actually point to first are From things it Well be sectors health they number quarter XX:XX was to quite money say quickly start is that do what happened then

and As companies those on you need a know, basis. need especially in regular cash it biotech, pretty they

also consumer that you're the ready that the a minute and and up. I ready fintech mean, to I I hit new to sectors sectors number say open move. And that where hit opportunity that [indiscernible] lined loading the margins really cleantech on those of are and go see lot a of and lining up and when companies our is it actually software, But so market it sectors to up and to think biotech, sectors opens. they'll fintech, XX:XX I'd think number going try And be centers there like there market. of And and could a so see are you the

Michael Brown

great. Okay, XX:XX

and into quarters, of just recent challenged side. didn't it’s terms the element that those like Advisory the the deals more sounds base as up the balance check it the and and SPAC it and activity there. out is on So regulatory that in what look lot XXX still from like on advisory months SPAC contribute a broad the the looks to pulse in for to on get certainly here But are wanted there of expectations is of there been XXXX? demand there we more a so of market, market Market another in hunting get market guess has I touch for part pent than you that how particularly your SPACs market, out Yes, check

John Weinberg

to XX:XX set which de-SPAC. de- large in companies companies have basically in SPAC number you are robust of was of mentioned buy a Well, we quite very a that opportunities the process looking

is say is I I'm believe don't slow force you of And a change is that the and is the we're diligence the call is As easy to do of traditional play versus going actually of in But going required I to advantage or going would to say know overlay also out. is to the that scrutiny level SPACs. there stay, is SPAC I be of so will of would that advantage are to as -- you the here IPOs M&A. the I continue SPACs a some of we methods SPAC that from and you to the SPACs, see the and I how activity, structure new what you know, of think a sure what XX:XX would lot a it down regs, SPAC monetizations And are that coming changes because SPACs. much relevant regulatory

a are active. going less effect. in smaller going somewhat a market XX:XX is that of I that I for going think said and hard it have those that have you be the was of a But SPACs many, be SPAC was number. I try SPACs And XXX place great I they're going SPACs I beyond it's for put more of deal But think want to going and it's is was going is be is going market. are that the to they de-SPAC, and to in big I it's you -- -- participants the itself think to these is if said give down going lot And of higher do so the And XXX, there to who I hard of just in things even a to on to regulatory market. to out because structure it's up that slow in thought there XXX. a think effect standard find the that until to overlay going to actually and that, the But lot take a such it's all think not didn't structure of and find know do it to they a works to, I think to there and it's places to going a away, not all and the people it's become that SPAC. for dampening

Michael Brown

XX:XX color Okay, Thanks great. for the John. all there,

Operator

is next XX:XX Our Harte line with [Operator Instructions] question Jeff the of from Sandler. Piper

Celeste Mellet

Jeff, you. Hey, can't we hear XX:XX

line. If you're the on

Operator

please your check mute open, XX:XX is Jeff your line button.

Jeff Harte

strong from and into watching tone mute step of you outlook, had fairly what I market may this volatility? you despite One of macro up positive headwinds this on of, that pushed, those and sorry downturn, tough be near-term the concerned become should cyclical in more, turn sustain kind quarter. of, When Yes, kind that kind uncertainty Couple XX:XX to more there? be me. about for we do another that. on a left really but M&A questions answer, Congratulations the sounded a

John Weinberg

XX think XX:XX all six you irresponsibly the trying want to we're get buoyant evaluate like environment next months, am don't the impression about I I because Well exactly we’re looking means. the to and to happening and I watching I what that you at for what's carefully, all it

it lot cyclical downturn confidence that kind all trying In markets. of what economy clear as good I right in uncertain. you people's lot a like in There drive to feel like a clearly that there is to we're like could that, we I'm well feel assess loss make And in things the am position -- a is cyclical we're downturn, are that much watching positioned. that are that terms XX:XX as that I sure now. So of of just of I'm want a means, the

thinking I cyclicality. see that back I to it recovered of from not CEOs and could extent rate going So been really don't corporates respond could a have that the I'm how it's far confidence possibility COVID. is recession well have and we an investing that a going as real really think to are pulling that quite lack I the think about interest or to at and happen. have driven a goes But create think by really by XX:XX and from it's continue what real we've And up. that To moment. increases we've have seen happens maybe a impact some it, that there the economies seen So is people I possibility. is market this definitely enthusiastic respond

exactly be right think to that, I is and the we talk to what that about we want that in on right comfortable But can lot of understand want so solid reasonable, on this uncertainty can do some I'm make anything together there's we and about think just now, back seeing whereas feel we're we're uncertainty now, fact will that a it's get make much together clear now. will I just all solid, sure I sure footing I that recovery. months I think see continue we really all call, but that will three So happen, the let's right to there markets next.

Jeff Harte

Okay, companies you to markets, the and more talk And I'm you XX:XX guess thinking about thanks. capital a current thinking you're the the finally, and exposures about financing the side, capital? financing as and there, willing the know, capital to with advisory advisory in side seeing like trends your of bit I about try -- can underwriting opposed markets demand most kind availability of the raise issuer business

John Weinberg

immediate to think I there do buy very the therefore really buy go much make volatile places it hard carefully, where the where big to side market Well, is a last putting is and show watching be immediately together so is that loss portfolios into weakness wants that XX:XX thing, could and back. volatility there to very market in because side a with be the

a to and of want actually So other my really funds been point sectors this big their right view by about making the own that they bouncing in wanted and they is we've what some is week-to-week going personal go and would sector day-to-day decisions basically Difficulty] happens. really has a see, the especially tech to they think in there's with as a There just -- portfolios you're is now, you're opinion, lot with time that watch you're was the of everybody where that are investors, that be see the of to being seen a back I been look careful XX:XX lot to along when And and see into they're and fang there some now, like pulled around. big uncertainty to because going right to smart see going and of don't the is want I is into volatility to uncertain. all people market think more and all there going what [Technical their long who

that So thought. is be you'll if a carefully restrained, opinion side own go see buy more my my little more that I bit and think that's

Celeste Mellet

everybody, Thank you see three months. we’ll you XX:XX in

Operator

approaching the Weinberg comments. to floor a like turn for I closing lot end time, XX:XX John of would We're of to

John Weinberg

you Thank really your three much. XX:XX appreciate all or the you in in very of you you for speak We Thank months. We'll time plugging to in. see us. spending

Operator

call. XX:XX quarter first conference results Evercore's This financial concludes XXXX

You disconnect. may now

Evercore (EVR) 27 Apr 222022 Q1 Earnings call transcript