EVR - Earnings call transcript Q2 2022

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Operator

Good morning, and thank you for standing by. Welcome to Evercore's Second Quarter 2022 Financial Results Conference Call.

During today's call, all parties will be in a 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, July 27, 2022. to Head conference ESG, of like your over Katy now Evercore's host, Investor would turn call the to Haber. I Relations and ahead. go Please

Katy Haber

Thank ESG. call. I'm joining Haber, you Evercore's second you, Investor and Katy XXXX today Relations of and quarter conference for Evercore's operator. for results financial Head morning Good us thank

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

Our complementary approximately is our one will an of archive which at release discussion beginning For webcast results be of our this conclusion call. This website and available evercore.com. our the today of being to the website section it on days, available is hour of live press XX call the for conference after in is Investors

we update adjusted when X-K. performance. that non-GAAP presentation to will be including Form duty we Any to of that want I are risks from which factors that the financial and in of actual to indicated may believe various are today statements. our SEC, Annual and current company's we course evaluating Report this are differ assumes to the but unless outcomes measures, are on with you no These Form make cause subject these those XX-K, remind we statements. filings quarterly not indicated, and reports factors important in forward-looking include, forward-looking reports on call, on limited the those there to, discussing meaningful In measures discussed the otherwise During statements. conference are company a forward-looking Form could uncertainties make that any XX-Q, materially our Evercore's number statements

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

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

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

John Weinberg

inflation, Katy, market from Thank last on supply and macro intensified. chain we backdrop, good spoke interest The this tensions, in too regulatory the volatility uncertainty continue worst With our morning, decline half high a geopolitical remains years. ago constraints, to its equity markets have rising call, The instability. challenges earnings the Since and clouded given over rates, experience macroeconomic outlook XXX you, XX quarter historically here including environment. suffered first S&P current numerous and everyone.

In as addition, credit financing impacted businesses uncertainty higher and This generated few and we solid markets factors have were macro-economic at wider never harder capital all spreads. raising; to or also and for all second continued market it notable change these rates ago, from to have our where a tighten, M&A months just a is said is capital now making a Evercore quarter. with good however, of that access

earnings continuation per generated firm advisory risk These announcements pace net headwinds last coupled strong adjusted noted. our underscore as backlogs the led of of the with was term. face elongation depth the just have an timing the transaction of These of focus and million closings. I remain share. but $XXX revenues, we of headwinds Consistent for adjusted our quarter, more long in and second the a $X.XX managing continue and adjusted the quarter, For our results revenues, breadth on that $XXX the slowing we of in with to in franchise, to

versus globally the respectively, announced and number volume half decreased Also decreased U.S. U.S. half deals and of the the XX% and M&A of Looking compared to overall at the XXXX. M&A XXXX. the first market first XX% dollar XX% global of XX% year-to-date in announced

For and of levels X% first announced record a year volume last number in the above That volumes quite said, with deals down of XXXX largest is last global solid. those normalized year. comparing dollar the still the compared billion M&A the half to below to when year's X remains and down more activity activity deals, not XX% as record

to made the valued. plan support are to critical of to interaction, and with in investments place the have need our broad we We environment intact. of and this clients. continue one remain dynamics we've for that when the as This long-term some are M&A they a although deeply significant strong dialog of the in intermediate in is high our that of not and needed the we It highlighting connectivity, across fundamental over our advice conditions for clients. address and remain in short thoughtful time. believe activity advice well-positioned seen environment them activity is need client's such to environment, M&A that sectors spectrum term this And the We a It levels most. drive most is is This the when engaged and are help themes capabilities.

industry Turning revenues. banking previously impacted to quarter, the the mentioned forces macroeconomic and investment

and sponsor advisory, diversity both the by achieve in some largest beginnings an our we the indicative sectors Media saw and business us firm enabled for solid improved Technology, to results industrials, clients. of revenue-generating and Healthcare of power However, energy this the franchise. of environment continued Telecom, our corporate of the for including In strength driven

and in our sector investments Capital saw Advisory, a our over continued of and investments, from continuation white made Real we GP-led activity quarter very fill Capital strong addition, Estate result and team in European advisory fund opportunities, a we a In both continued perspective region. to secondary transactions, fundraising, In Advisory. as time that the we've had spaces, geographically

it debt to see increase we public for is In the terms restructuring, as of becoming are starting harder to companies in access markets. dialogs an

the We a XXXX. as in low seen and clients positioned to and rates a has to versus that cycle we sidelines. and as extremely strong sector uptick by to across of as well our significant them in said, in volatility platform differently impacted and difficult continued perspective. offerings, ATMs our which headwinds ECM are is IPO and issuers picks corporate rising historically still Activity placements. the advise In healthy, well our follow-on kept from macro restructuring averages, generally balance more activity, believe from the also as diverse quarter. we've seen is be Away are aftermarket Overall, on activity weighed quiet, Underwriting cost spikes becoming known been experienced a private product the on business remain traditional up. environment addition debt the That than materially. setting up sheet default

more team was despite is service. well continues that Summit engaged and in quarter, performance Evercore's new continue successfully deeply remains all-in are businesses our pipeline on firm teams talent about targeted the continue conversion linked into we energy Director see identified hosted TMT, through and market-leading businesses shrinkage In clients, markets as growth. build our quarter, would pleased XX when to to conferences our strategic to the key our some franchise for our also We including business Advisory we clients. and Energy Across areas We invest including to in cornerstone by guiding stabilize strong and and performance. long-term to symposiums in them this received Europe. with in advisory in differentiated lastly, which and and opportunistically generate volatility. was Management, expect placement, and efforts equities year, our the in our Senior while by and year-end the sectors varied have Global in clients our client Managing pipeline, debt some our market inaugural business The become far market a remain deliver transition Wealth The seven advisory ISI areas, to future we of and event needs Clean impacts to volatility the adding optimistic of ECM AUM research had the have And acute in financing continue added has the consistently our A-plus previously second so

of the are that long-term Celeste environment shortly. metrics on more our and we compensation detail As it we building focused to areas will our mindful medium continue invest to financial relates prudently franchise strategy. key in growth compensation, the are discuss as the to in support of

capital to a opportunistically of our committed dividends goal form the balance to in as share returning business return share of a buyback durable the certain and in strategy. back our we'll less our stock We of in repurchases remain well we've invested this excess Lastly, significant amount bought sheet. Even cash and maintaining not shareholders. environment,

clients our achieving we team will all we we goals. look our ahead, optimistic a continue firm. and our are Despite remain have strategy long-term the drive that As we clear towards future the and and environments have about to to today's capabilities uncertain serve environment, for confident we we throughout

turn Now let the me to call over Celeste.

Celeste Mellet

you, Thank John.

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

of a our Our release, website. which on found standard can reconciliation GAAP is to GAAP reporting results be in and press adjusted our

net revenue was adjusted million, down year-over-year. X% $XXX Second quarter

resulting drove advisory our by adjusted volatility to $XX million in fee an adversely decline XX% average by affected in of underwriting down were Consistent trends in primarily continued fees period. in year-over-year, significant with business a year driven market quarter from issuance increase million market Second ago $XXX the that higher size. revenue, be X% the broad

volumes. well driven related fees revenue million, year-over-year, primarily driven year were market trading higher million, continued adjusted on and up versus ago, equities In down primarily management X% commissions administration with perform to asset depreciation by Wealth Management, Our a AUM. X% and $XX business by of $XX

compare, million accordance largely same has $X.XX in Adjusted million have hedge $XXX program. a our prior amount does accounting of is driven our Second with with impact accounting $XX the the in our In the In an first in decreased market deferred fees, used million XXXX cash a during the while value change decline $XX on $XX as This the portfolio, the on versus hedge principles. in primarily fluctuates an expenses. loss relevant $XX quarter an To closed that of Adjusted of corresponding against the principles, on quarter, impact EPS any with which immediate net, July. net includes reflecting XX% recognized compensation significant market of values and quarter revenue given we advisory million and adjusted XX% ago other market economic the early million, the for quarter period. in the was income not quarter XXXX drove losses. losses transactions quarter, year. year investment accordance down approximately from revenue, from the second portion funds of was of revenue

the in XX.X% Our second margin versus quarter quarter year. operating adjusted of last second XX% was

Turning to our for environment expenses, our ratio was a will second XX%. of revenue. quarter this function In compensation the adjusted compensation be

of the year The compensation our estimate balance Difficulty] as change second to of quarter subject for full ratio [Technical is but today, depending the on is how the year progresses.

expense continue compensation we As do, drivers key always including the our will hiring to levels. we of evaluate

mindful with our long-term are balancing and We by ahead thoughtful to half environment year look and of the the goals. and the we as term prudent the short of being second medium

compensation Second factors. non quarter ago, XX% year were costs of up driven $XX several from million adjusted by a

travel well as pressures higher travel normalized return as teams to expenses First, costs. on travel, as more our inflationary

hosted conferences events in also we addition, In the in-person quarter. and large some

including And as to expenses advisers, fees as with have a return agreement and the to in there search in employees related episodic operating reversal recruiting the Second, items as sharing operating larger bad of placement well firm expense driven third, our prior real a efforts by costs including estate and headcount, were quarter, year versus fee as footprint that space, we other well a as in to increase the an grown of sub period. higher a increased couple office. continue as debt

as entertainment relates Going continued forward, businesses. and as and non-comp activity inflationary business it to will our as are business as of in investment expenses pressures to reflective levels, be travel usual well returned

consistently reviewing are practices. our expense We

quarter the non-deductible as including part for XX%, well have Our as affected by was the has picked as in adjusted rate activity increased benefit, stock entertainment, and compensation which was tax up. which meals expenses

sheet. Turning balance to our

cash our investment totaled $X.X billion. XX, over June of As securities and

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

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

X.XX% with of senior of in notes $XX XXXX successfully a due addition, quarter, the In Notes the quarter first that November B we completed in XXXX. the our of refinancing due issuance million. were Series in

[Technical Our diluted second quarter adjusted Difficulty]

Operator

room. on still will Hello. Yes, an in still Please open stand We're by, your by. the stand main you're line. Please conference momentarily. begin

John Weinberg

Hello? Can you hear me?

Operator

Yes.

in you You're and loud clear. well. participants hear can coming as The

John Weinberg

Okay. Good.

Celeste Mellet

Sorry about Josh. that,

Okay.

time switching it's we're now. to Q&A I think for

Operator

Q&A Okay. I'll go you. ahead and instructions give the Thank

now [Operator first Our session. will Q&A from the question Richard We with Goldman Ramsden Instructions] begin comes Sachs.

may You proceed.

Richard Ramsden

morning. me? Good Can hear you Okay.

John Weinberg

can. I Yes,

Richard Ramsden

great. Okay,

So as impressive at obviously, by particularly just given if strength this was driven the look in quarter advisory M&A, can on volume least what the business doesn't based see was levels. it we it and

talk about as you products the quarter through we the of could second and this those So non-traditional help the Thanks. into us that head strength the the perhaps, half advisory drove year? sustainability think of

John Weinberg

thing, weight of Richard. I'd have in the performance this terms Well, in Sure. is some you, first the Thank did say advisory that quarter.

recognize to important so think And it's I that.

as income, geographically sector sources of diversity well driven a have driven. as product which are and both driven We of

so always, had an important us, but strong U. for we had performance example, obviously, very good it's And Europe also in the for driver as quarter. S. a

things some to past, the very Capital businesses generate we've And done returns. of solid. really were Advisory added Spain amount the talent a like, started into that of in significant

business sponsors to our seen produce. continues have We

our move to activism quite been forward. the active as addition, In continued have activists has business

in so have our we the is number and business our of try we for, generally, that and capabilities. striven to of think out which revenues one kick that's have And a that sources balance and things I

shocks is inflation. And that it's sustainability, are the there frankly, whether geopolitical to think is business I I felt (ph) uncertain view respect of macroeconomic, that have don't to we are with terms what rates. the think, in concern system, very that In being what's the any think And happening environment. interest about it's a a immune I on

in think feel there we think that is volatility in I the uncertainty So we and real system. but a are place, I that decent

is are that remains conversion say of backlog. strong, hard to these guarantee of that give it's backlog for elevated I me sustainable. but So our very you will that any there It strong. is risk

Richard Ramsden

very That's much. Okay. helpful. you Thank very

Operator

questions. Thank moment for you. One

(ph). Our next PSC question comes from with Jeff Harte

proceed. may You

Jeff Harte

Good everyone. morning, Hey. [indiscernible] guys.

expectations. to -- John, can't the current kind So shake of plummeting you've and level, just historically not see I macro you is the It's if spiking this, recessionary dialogue and through costs of strong but it recession more I financing of a number confidence, face unusual feel. shoe a so strategic mean, in glad a see thinking of to I'm prior been How kind when cycles. matter versus the of next do view the drops. times? environment

John Weinberg

a when capitalized large cash. as thinking companies they could is your why place companies we a companies really and question a been really about past, time. had it be and of technology still number long-term prospects. still leverage talking see sense boards of a I would their and are that together this will fact we a it that with of some Well, factors very this And there is get businesses also result, And what Companies expand which as the could over that disruption, going there be could I clean they bit there when cash. things energy, is that are think believe and driven into be think well are really board think the There just a the good that change the in could in teams. dialogues have that one we've and I in rooms management on speak, number say it's that are have still by strong corporate good -- growth the market, that would that and quite levels certain while a say have out are lot we've future. are in I look a about the I

in that I M&A slowdown And board a slowdown think but in a at that that in out out dialogue, that I is last activity. slowdown is the the weeks a an view But view necessarily acceptance is addition, in think the I transaction, in is seen market a not is that seen there acceptable several is in that board topic. corporate is meetings turns not if think ready may the merger corporate level, had to so is that a think an companies really slowdown want two it's in conversation, the across where I because there we've I've is the in set a And in we've companies actual definitely which you've there something this been volatile. into being smart. stats, market

And so real dialogue. seeing I think you're

don't just point. just is is I this a at people there that that there think much know that uncertainty so view

So shoe know. see see of We which the the will definitely volatility. us definitely We None your the question is when drop? uncertainty.

and occur to of and know about it. can't that are watching. all a Geopolitical and the this this that actually just recession, also risk, is, And some into as smart I that. boards M&A we're and to are is way, go by about because know be the all predict advisory not generally. any And think their activity just going evaluating will interesting we CEOs all we we corporates impact going thing just and we're to as this we significant of hard really activity if it's

Jeff Harte

you. Thank Okay.

Operator

moment One you. for Thank questions.

from Chubak comes Wolfe with Research. question next Steven Our

may You proceed.

Brendan O'Brien

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

key would their belief a So stabilizing the downturn. that on M&A next sponsors, in in the COVID during dynamic this crisis, after repeat activity is there

what response near until felt Based the is term? in PE conversations, change your is peer a likely firms deployment in [indiscernible] and for you However, remain to your commentary suggest to and your sponsor talent medium have from as slow reactivity there's year. early to larger like on some of that your transact outlook a next

John Weinberg

question, Thanks Brendan. the for

bit actually the that question sitting some markets no and less market, and loan it's the sponsor deals. I sidelines finance to to obviously think have hung that there's those -- watching. now is are a whether easy large because There the yield leverage levels think bridges a I extent right sponsors markets themselves, activity on market, have that actually high been of there. there is And it's -- chilled out are

you're buy on a look So and sponsors the side, taking seeing watching.

view, people of to at going where thematic going sponsors thematic of a lot There's see you're don't a watching terms looking activity believe at purchase going prices for whether side activity to dialogues. being sellers' they to sponsors a you're things churn [Technical to I what in the sell-side a that see that a down. activity also buyers of going are the about come are down the lot and We're going say of come investments expectations is really could of There's the that of very those have whether to that right of lot happening to going specific. what of there's a to whether buy slowing they're price, which now. a price. be really be definition Difficulty] think the quickly I carefully talking are is looked carefully I and on looking are sponsor is possible who sponsors there and point at of matching think true. But prices whether that especially lot premise, to until is having come they're do is actually see would then that the down. of prices is

going be say really the happen to to would often faster. and turn the I them. moderate. be is difficult They agile move sponsor activity call for now So It's to that more right

just watch. we're to And to so going have

to and that going know don't a your we're that slowing So having I say would is right premise exactly turn true. we that's when now

Brendan O'Brien

question. you Thank Great. my taking for

Operator

you. One moment for Thank questions.

from next UBS. Brennan comes Our with Hawken question

proceed. may You

Brennan Hawken

taking you Thank for question. morning. Good my

limited guess on Just -- sorry, to do one -- question. wanted to start I I

So comp. for on mine, wanted focus to

XX% So the for about course, the reasonably of last, expect guys both on denominator. had side rest informed indicated you year. numerator visibility out six the revenue I you comp Typically, good the believe of and and the by you'd that ratios comp ratio months the have

some case. the helped from upward attractive, Thank recruiting? pressure the thinking Do comp in you run of it's that Is your in pressure, it even can stay that ratio? So right now? would is -- active long market recruiting How would what any to recruiting? Evercore around sometimes be the want add the would prior components just about are And And about some expect And continued the has considering so active confirm be in helpful. though underpin half downturns how that, the of is you it back gotten assumption near the and to definitely color year? you.

John Weinberg

recruiting to intend in turn with let and that question how recruiting, comp I'm set speak Brennan, the start going stay Celeste But of active. we then, ratio. Sure. specifically me terms about to we to

so hires far As you seven senior year. this heard, we've made the in level

continuing always talent. we market to there the need to it's to going when lull in because that have -- do there A fit is do who hire are is to we is talent, really what if We talk whether opportunity see we're continue to (ph) plus really to we the over. And talent plus opportunity A to believe an bring who a that

stay always more the will are see for we in talent. to active what you the market set get in active A plus given less the We but us is, market. going or opportunity may So

earnings in then you it see comment I'll Celeste, to make and just to of then which there's carefully and see what could terms as watch We the more levels. continue one in outcomes the past. Frankly, in is, the for volatility activity uncertainty we turn other

than months I So say, uncertainty with look most that more to dealing that we've our spoken is times now you just we when it in earnings there out, we that six calls. we're think

Celeste Mellet

progress. a less the is depending ratio than today of comp year estimate how year with have there The for the based our business. change you're We full Brennan, visibility extent, is will on a we XQ John. be lot it going by a for It's we associated significant things stronger the function reverse really periods. have look, risk really do last year. revenue. that. said, some the And is task, given strong ratio of and the had this of to backlog, of leverage on outlook Thanks, that we operating environment, a as And amount driven but to as do John versus seeing

years obviously accrued able reduce when for pay So And of year, our we're performance, a we comp and have to ratio. that excellent we reverse. but really you're really, the seeing this bit

really driven this revenue it's So by in environment.

John Weinberg

is guess the think a I'll have that way reemphasize say I is, there it reemphasizing what one is to I -- which risk now thing and thinking bears we're be is just about we because strong that's right an backlog, of elevated but needs the evaluated. conversion around to really

Brennan Hawken

for fair. the a Thanks really That's color. lot

Operator

Thank moment questions. you. One for

with from comes Our question next Michael Brown KBW.

may You proceed.

Michael Brown

Good morning. Hi.

John Weinberg

morning. Good

Michael Brown

Celeste, statement. prepared you a in remarks, covering were your you expenses, when made

expense reviewing which of statement, hear but in a course, are this we said consistently surprising like practices, not our backdrop. seems to You purposeful challenge

relative expense that of So on backdrop? in help this to the does levers Can you challenged the assuming kind margins the that the see here. you remain revenue expand to base manage environment

Celeste Mellet

We're not for told what so you. expenses out, think everybody on to the we Sure. to give dropped call sure more than going just same I'm you're is on asking these page answer with detail we that where the

that the of normal just to at were people will at year, that talked are of but number to reduced about we there And So much said year other factors because including ones the run drove which doing this not all XXXX factors was beginning we've quarter. they by the non-comps very continue home. things levels, a

post-COVID, to to Clean And And great increase us -- really that. important as event sort to for So are as increases to John out see also like in are the which are us really increase there, the usual other said, an conferences for we that, people seeing we're events. get as encourage it's a our getting seeing bankers going big as to road We're clients. Energy as of Summit, the was business well travel continue person in back the seeing clients. on

level. we it and the XX%. trips as XX% shortly, pre-COVID, to pre-COVID trips of around about in We including a probably same a quarter then about get of were you percentage think trips. as to global time, sort XX% talked we've all our XX% so of the good So still to travel, over that's look we XXXX was sort Domestically

So you're a of international stuff yet. seeing lot less the domestic more trips

So everybody be are getting back of course, given some still ramp has to but inflation really room and little And his out read may of there. travel increase about the the bit up, experience, costs, room, there. it a just people in

of bigger episodic. by call search like seeing but then up saw to and minute also more placement. And footprint. our drives We increase was There's driven legal like because costs down. you are in the -- that They or typically fees. generally, driven you're one a related professional would a ones movement and the I'll increase thing Those is expect footprint in quarter-to-quarter bigger out that our move us associated with by growth and things that, the time from for over

to building. run as costs then, So the to people space. more more frankly, we past, more in need money people And back have we the the building, come it

York New quarter. end the We the in some June. at some So space in added in we earlier London space of added

a want So it's that some items quarter. third they're they're those, huge we don't of were estimate. big tends have the our you quarter, the small. very sort bad but you'll saw flowed that I through. they they a than balance In see larger lumpy. this quarter, to -- usually then -- the to you that very like you services, advisory flow not that some flow normal sheet share And past but flow debt in have We where out see fee add up. We not call had through professional of numbers, -- through much typically some company of sub consistent in be very episodic

debt in reversal based debt. the quarter. deal one bad year Last of see on did was or a very increase we So just bad

looking would reminder, spend So expenses really say we're compensation can business. of move at the But excluding as do need going where at back you and Street a will and and areas and these Bob very we we up you your bulk the items, at this environment, what tight ran to our (ph) looking beyond policies our non-comps To are a data and of see the are But invest was. in ship. and in all I our would our sort with question, in statement, be they always always revenue. closer expenses. income down in look your of it to

we to we're need really of as and So things lot differently, or there non-comps, defer bigger. get we focused -- a reduce spend them can fixed and are on do or just we especially we that don't or we ones where can have the

So that a focused even continuous is and improvement on generally in we're periods. what better it's

Michael Brown

Celeste. you, last. colleagues all Thank full answer. some Appreciate the Very

Operator

you. moment for questions. One Thank

Our James next Seaport Research Partners. question Mitchell with comes from

proceed. may You

James Mitchell

Hey. Good morning.

maybe You you have a large buybacks, program. just -- buyback have on

the your On But down hand, hand, uncertain on environment. the one it's stock an is other cheaper. and

ability of sort second how So about of reward buybacks about the I the you guess, position think risk do in cash we have your, thinking you're how the half? excess and you and

Celeste Mellet

Thanks for question. James. the Hi,

James Mitchell

Sure.

Celeste Mellet

repurchases. as $XXX in of to first So the run We've quarter. bought increased back shares. a we know our million excess all bonuses then the the million that offset committed We dividend shareholders. the we We've issued were dividends X.X of another all remain returned capital RSUs of that as part business over you about to to and year-to-date share between returning don't need and

in The and -- our the time. sheet we we in the ensure at terms do we right price really focus and thing do We want half of a the we'll we're total. look stock, but over to on balance thinking opportunistic way of of to given buying back franchise X.X million our can the about as uncertainty invest the share year in want for So back durable environment. franchise maintaining that be the

to to of But with making return trying get we will -- emphasis opportunistically we're sure a to our forward So balance go from invest those things all again, need perspective. here uncertain this what through we from have capital over we shareholders buyback we enough time, we will on as period. excess

James Mitchell

Okay. Thanks.

Operator

you. One moment for Thank questions.

Securities. with from Devin JMP comes Our next question Ryan

You may proceed.

Devin Ryan

have Most little outlook record more I of Celeste. just think the but year hearing last asked, I M&A from year. announced, and down Great. of here a lot commentary, deals. want a bit as But volumes on been mean, dig I elongation some Good but morning, to about the in XX% you John a

it's absolute, pretty still number. good actually in So a

backlog, were of you close a kind to uncertainty. still in a your but there's if So lot it's of what's on able I'm pretty good assuming year,

question is, break-off the falling pushed actually being my are just timing there. So deals where apart and versus seeing you yet uncertainty are anything

the the XXXX moment? the uncertainty a the of actually within falls XXXX environment creating so and fee And kind is has maybe follow-up at is, what's that's that so it just into then it's it So still level feel slowing that's now and lower here? at kind you. we like of a kind to So what's does real gauge just relatively Thank slowed or stable? hard time of to slowed

John Weinberg

Thanks, Devin.

terms flow In the backlog. the the of the in way of go deals

deals your is which come elongation, this that period. are the think is And longer a and being in that's that a on there I pushed whole is discussion much deals observation then out reality.

seen terminate what pushed seen things in haven't out. things We we've get basically as really

when allow you unless whether legitimately certainly our wouldn't these way manage we out, in get the stay pushed thought backlog, backlog go a don't see we It Now activity. whether know still away. things eventually we live something they we the to it -- honestly, I was will

way so activities taking this things might not at hard, long if point, scrub things -- looking that think away. out. view really would we see be of that. that, we that, said Having don't that a the backlog them that that, believe we go it is is if there to anything so I and like sound. and our this And are said we're things are having but At think unrealistic And moving some

have your that view whether now. down whether a we're constant of I kind In is recession. terms go I rate of things still -- are are of think significant still they're view at unless, a My own slowing a at constant just to rate. if we things don't going right -- or kind we're

you from from have come deteriorating call higher And here of we've right go I that from of little then much big a the I at problem, I come it now. as in I think we uncertainty articulate said, this place could of into then that and right Then a of think tried companies number recession, any are is the on markets unless ways. shock could level risk the come, could don't and it I happening a the one reevaluate distressed geopolitical and there things is to see the and really the bit another a sponsors situation. more what's think now, it constant to is shock. a because But

about businesses, inflation to rates that's way there's risk. to and something interest going go going impact basically geopolitical these of will a things volatility the feel people always So market their reflection the are higher be and the is

which risk all does in have scenarios, to it difficult more you think just it, more of I really So into predict. to these make put

Devin Ryan

Thank fluid, Yes. Appreciate the thanks but for it's you. all context.

Operator

Thank you. One moment for questions.

Manan Our Gosalia question with comes Morgan next from Stanley.

proceed. may You

Manan Gosalia

a with just that think and the trend to just headwinds there deals attribute macro that the morning. John, like have business how do gain than Europe performance that white has looked what and up how the stronger you that to you is that just whether based? would pretty do broad this expected? share constructive quarter, contributed this to was deal much been Good out. Hey. revenues to limited delivered it pretty and spread on been you've share And relative or called entirely given this quarter levels Europe was, to better in the activity few was Can historical you holding

John Weinberg

was was market. of can't activity that real in of terms we I for you. out And did the First we reason because level emphasized there break market we apologize, productivity from Europe. but all, in -- share it versus the really But

they activity that really and some because our the landed some anchors that probably results. that very levels the lower have it's to show allowed think business situations are fact I of really talented what are pretty has interesting

market I early too that share think a it's from say that so to win it's any respect. real And

put going talented you're to interesting against for for situations, by to firm it And being people what's here. I you if value the deliver though think real create say some I is really happening clients. really think safe that able value that's to be to able

very are challenges evidencing applying clients people and for some in and is actually itself themselves who that talented We some towards have problems results.

Manan Gosalia

That's helpful. Thank you. that. Appreciate

Operator

next question UBS. comes One moment you. Brennan Hawken Thank with questions. for from Instructions] [Operator Our

proceed. You may

Brennan Hawken

again. for Thanks morning, the Good follow-up.

talk So, curious, about you often I non-M&A portion was the guys of your revenue. advisory

to deal drivers in are As they revenue of these those us any Is way in run up, this? idea help different different have proportionally increasingly to like keep outlook behave a how and important about sources which timeframes you think because we enter might they different give Thank different of sources or least where environment there cyclicality. where could in these elongating, and an levels how closing sources about is picking frame and think about different at mind of revenue to an restructuring us try period you.

John Weinberg

Sure, Brennan.

start because the Let firm. me period place think one been this a restructuring performers that's business to a just a really us for It's long over start. at of with I good has important and time of stellar

that, active right a is very, that now. I assignments there the is Having restructuring wave said down very do business restructuring coming big Our pipe. time of think

been not right eventually and there I that not date. has but to will think certainly now wave be there

in -- active very in we're restructurings. We're actually court and discussions are active out We're active. of liability management. bankruptcy We

a activity, really but said and our we creditor right We -- we're and giving debtor relatively thinking rate and active comments groups them advice. now, well both we the bankruptcy of really in in are But and serving low. is, positioned. lot There's just as think

so change businesses in Obviously, generate And it's really we're what uncertainty us. a market feel right waiting our so happens. businesses. And important very to They're think the much there's said are now, They well positioned as very and to excellent we to but business see for there important going I activity. for over there we're and very time, continue us. advisory a private capital we

And have so are I good think a we to important are those businesses and that sense us for.

if get Our the although of scenarios. necessarily that now. activity But really of in believe activism business, up business for equity market have there's opens that quite we up, active a And a that us. very is business assignments markets and different is we number in right capital market our to bit there cyclical, activists that's activity not then, that backlog a real good have going in business lined

us It's the happened sponsors that that We're sponsors has could are predicting past. out But that that corporates of those building to the we're the just to is important a also. but for big be. the think, business. extent I So to are very non-M&A. effort in series building of start some markets that, help not it Obviously, our businesses us business going begin than turn may sooner

sure very is is of we the the places helps, “non-traditional M&A number and that about for a obviously, I at think a that for I that thing, one us day, So I'm hope oriented clear very But impactful to it's I business have us. businesses”. business do Brennan. which end of the are merger want make important

Brennan Hawken

proportion of I understand these. advisory in avoided does. It the of past you helping come us know have revenue all some the that from might

was wanted another case to that shot? question the it in part to on click just it I back missed So of give

John Weinberg

can't sorry we and it that. like it point, on wasn't at that to No, do myself. But missed. unfortunately I'd view I'm I'm And not responsive this try that.

Brennan Hawken

worth All you. shot. right. That was Thank a

Operator

comments. I would like the to Thank Weinberg John now over turn floor you. for closing to any

John Weinberg

of in I thank want earnings you all forward for in tuning speaking next our you and to today look call. to to

Operator

conference concludes quarter This you. financial results Thank second today's Evercore call. XXXX

You may now disconnect.

Evercore (EVR) 27 Jul 222022 Q2 Earnings call transcript