EVR - Earnings call 2 2023

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Operator

Good morning, and welcome to the Evercore Second Quarter 2023 Earnings Conference Call. Today's call is scheduled to last about 1 hour, including remarks by Evercore management and the question-and-answer session. [Operator Instructions]

I will now turn the call over to Katy Haber, Managing Director of Investor Relations and ESG at Evercore. Please go ahead.

Katy Haber

operator. you, Thank thank Second and joining today us Good XXXX you Financial Evercore's Quarter Results for morning, for Conference Call. Evercore's I'm Haber, Head Relations Investor Katy and of ESG.

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

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

of uncertainties, we are important we there that these a the may forward-looking statements. indicated those and this make factors statements. forward-looking differ could During actual call, in risks make and Any various conference outcomes of number to cause materially statements from that are subject to course

X-K. and remind Evercore's to reports but assumes update quarterly These in those reports discussed statements. Form including with Form duty report the limited you SEC, on that XX-Q to, the include, are our Form XX-K, to not on annual factors I no filings want on current company any forward-looking

meaningful we are we discussing financial adjusted believe are evaluating performance. be measures otherwise will our presentation today, that indicated, unless In measures, which the non-GAAP when company's

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

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

transaction any results our particular timing by are previously, the quarter noted we've closing. influenced for As of

to will I turn the over John. call now

John Weinberg

on entrepreneurial strengthening of Thank you, capitalized to everyone. seen our to firm's our execute senior on are in presented morning, the good initiatives. current strongest platform, our history. one The We've by talent Katy, who this hiring attracted strategic opportunities has hiring the we've exceptional environment and ability

XX announce our call, new both to to pleased year-to-date, since business services, such managing talent in estate TMT, have U.S. advisory in SMDs XXXX, Evercore. coverage, have This earnings and the of senior We're joined Europe, and areas or as in committed directors, real that X so group advisory. new represents sponsor capital far last

service strategic These are believe the significant long-term market the this this even drive sectors and part long We these positions recent earlier from over to will to our plan. our new medium recovers, have clients. as success come, coupled of term. year, we our identified Evercore those with and for additions promotes capacity productive Once the greater

through times for ourselves cyclical As successfully today like investing operating before, our recovery. business, in operate strength we've periods that comes to we experienced from We've emerge are in we many we so must can repeatedly shown a position stronger.

Our reflect second we call. will discuss challenging conditions, this market length greater quarter in which results at

of signs it markets, first in is to recovery in interest recently improving markets. days, equity see levels the uptick still dialogue client in capital of and a rates begun an conjunction stabilization Although we've early with the

mandates. on Anecdotally, transactions what we're we reflected backlog, which increased that we're hearing from based well some include seeing encouraged our of bankers, as and in as are announced

However, there is still and which transaction uncertainty impact closings. in timelines the has an market, on

the timing lag of a revenue and recognition. is closings, there between Additionally, announcements impacts which

higher macro dollar of uncertainty to basis XX% revenues, markets, the ago. in continue global Evercore on M&A year net in announced and income in quarter. $XXX a half to almost XXXX, in a on the transactions versus achieved adjusted resulting earnings adjusted weigh than per million greater down costs million share. $X.XX in $XXX $XX Broadly, turning net financing adjusted and Now million first

to see transactions, in PDC to including $X.X started M&A while slow, acquisition and quarter, client worked business, several In Energy Advisory the activity. global a our increased $X.X billion Arconic continues on we the important Apollo. of In momentum Chevron we sale be of activity on to billion

well, down achieved Europe a market relative in conditions, the team record given quarter was the but performed to challenging year Advisory Our ago.

to see strengthen We significant in our continue as progress coverage sector business and European our both capabilities. we

defense advisory strategic remain leading pace. Our strong business and an continues activist see to as elevated at campaigns shareholder activity

market-leading quarters, activity what creditor practices. remains to last by of well strong, the as similar couple management driven In we've our over seen debtor as liability restructuring, and

we equity advisory which businesses, capital while particularly experiencing private with areas market and challenges, and respect active, fundraising, fundraising leaders. remain funds some private Our are in continuation to

Technologies show a measured capital were as by since as had business May dollar X secondary $X.X any largest in strengthening Underwriting than better the on signs the equity and quarter quarter runner the billion issuance XXXX. Notably, of better quarter. was In lead value book follow-on of which greater second $X we than HealthCare X. months to Our GE of deal, which that offering left markets on the started were offerings billion, November a were June, book runner were in we the

on our to focus coverage. continue sector broadening We

In and and our opportunities robust, Equities increasing clients. sales to talk business, platform client remain with interactions across trading to our research

Long-term Wealth in remains strong. AUM from and year-end, client prior driven retention increased and Lastly, by quarter appreciation. Management, market performance

upward a on hiring approach disciplined put coupled we yet with this to managing overall more of challenging Tim to headcount backdrop, our on as shortly. base. know, details But additional a senior compensation you our significant pressure remain expense revenue talent, ratio, committed will provide

be invested business share on of over dividends durable a time. form shareholders and cash our While maintaining we continue the in sheet, to repurchases the we committed to balance to not remain excess focused in returning

the market, shift the cautiously are we forward, recent are recovery preparing and in we Looking about optimistic eventual the sentiment. in for

believe positioned in the As we term. strategy, we medium sustained execute on we and our growth success and for well long are

that, to review the financial Tim over our With me and call financial other now turn let to matters. results

Timothy LaLonde

Thank you, John.

several factors. impacted quarter are by results this and year Our for this

a financing environment. the the and M&A with a the along fees, resulted of is uncertainty significant revenues. several which This, environment, reduced period reflected and first significant deferral The challenging second in economic quarter during of

made the the number through quarter next relates addition is of very investment and will is cost in which this to remainder continue year. of more partially of larger-than-normal have through the we The forward-looking, significant in year reflected into high-quality a of the SMDs, business that and and our the second

investment course, The The cost, prior future elevated and of be meaningful our lower that to an year the in revenues combination compensation of incremental is likely realization will this ratio. absorbed increased contribute revenue. to of

the to impact of is expenses. contributed travel, have non-comp which third higher The and inflation increased

the Now here results. are

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

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

net revenues $XXX quarter XX% versus adjusted the ago. second year Our of declined quarter a million

Second quarter adjusted million per second decreased decreased operating income period. income prior-year quarter versus $X.XX $XX and share of $XX the net of respectively, and XX%, XX% the of and XX% XXXX. versus adjusted million Adjusted earnings

for adjusted Our was XX% margin the second quarter. operating

businesses. the to Turning

XXXX the Advisory declined quarter quarter Fees adjusted revenue a quarter compared million XX% XX principles, our year-over-year with To XXXX otherwise for at in of $XX of of quarter June Fees In contingent Second million first transactions, record was million compare, same closed $XXX quarter includes million with principles. and for which $XXX the second of second relevant $XX us. recognized of in second accordance to $XX or quarter, the accordance June in we subsequent Advisory had last year's million from accounting second to elements which the XXXX XX. in accounting

in quarter this XXXX year, increased the of to the significantly, down as a compared X% year-over-year, quarter in and the result second was volatility. reflecting revenue $XX quarter of of Commissions $XX Second meaningfully underwriting up and lower ECM million activity volumes of revenues quarter first weaker particularly May second of related as June. and trading were industry-wide million

and Second $XX X%. decreased of Administration million Asset Management quarter Fees adjusted

increase increased AUM reflecting primarily $X approximately year-over-year marketing appreciation. However, billion, an from

approximately used our $XX commitments. other the million of investment a million, Second of which for revenue which as value quarter gain a DCCP in of our net portfolio, funds reflected was is approximately hedge $XX adjusted increase

generate cash higher year. the due In prior balance short-term versus to to interest our addition, income on continued rates we

non-SMD on Turning that to hiring level ratio. is have an the ratio the quarter and first amortization are, until also environment. The relates as we XX%. ratio will The compensation, compensation of our for of the our bankers, level closer to have second also impact, primarily adjusted to foremost, won't and The clarity expenses. impact the The compensation impact awards year-end. further market factors revenue that but prior-year senior it for comp

plan to hiring significantly excited about these we investment our is date candidates. costs, the execution and, quality particular, upfront to be to partner our of exceptional time. There these expect We in strategic new over SMDs revenues an on although accretive are

Considering do when hires expense expect until will revenue year. remain lag compensation initiation not closing, we this between start compensation and our when our new to typically exists the elevated throughout accruing we ratio time Advisory and is that the is many which that transaction for of later year recognized, begin them,

adjust of As change. we of year, enter should the of the accordingly ratio our half either compensation in we will determinants the back the underlying direction estimates

where approach using to headcount, a see senior hire We strategic manage we our in and a are additional overall continuing bankers to areas judiciously are disciplined opportunity. we

past driven and to team which lease quarters, inflationary part expenses. travel year expenses Shifting the the a for flat million, in an second impacts to After is relocating primarily services to and quarter, from meetings, to by occupancy-related up to holding expenses related costs of increase a by our $XXX our our increase information level driven X.X% expenses essentially This both in for and is and expenses, a higher travel-related X non-compensation ago. due different increased non-comp of arrangements the non-comp corporate location. higher on face-to-face communication

this monitoring environment. increase in remain The our expenses is had rate seen seen year-to-date We to non-comp tightly continually and year. prior on in we the we managing what similar have focused in of expenses this them

the quarter Our compared last of the year. adjusted tax second was XX.X% quarter to in XX% rate for

Turning to our balance sheet.

our June have XX, current strategy, totaled assure to to have plans, all environment, capitalize and our and securities implement stakeholders manage stability. position prudently approximately we to to we with the financial including our to review business liquidity respect our We and significant on opportunities cash hiring investment billion. of cash As that $X.X it ensure we regularly

shareholders a $XXX have we through total at an of average Year-to-date, to X.X dividends $XXX.XX. returned million of repurchases and of shares price million

offset our million X.X nearly that the shares were from average X.X issued fully And quarter. We the weighted declined to in the compared dilution RSU quarterly by first has share have million quarter. grants count last

million XX.X year to share Our second diluted more than count X.X shares XX.X adjusted million by from a quarter decreased million ago.

forward, needs. influenced Looking of environment be the capital our by operating will and return business

We of have strong the capital share X/X cap past over repurchases position of years. our and market about the X.X dividends returned have and form in

As we History consistently, from stronger have to remain entered. stated our challenging that our phases than we business through of emerges we all has the environments when shown economic firm cycle. building committed

We markets our of more are signs with of increased in seeing capital clients, and, an level backlogs. discussions improved reflected early broadly, increased

and SMDs additions expanded internally, SMD footprint, than at in which better have history. new the our our are have we significantly any we promoted point positioned we our believe With

will line we for that, now questions. With open the

Operator

comes from Wolfe first with Our Chubak question Research. Instructions] [Operator Steven

Steven Chubak

queue. Capital was question the on start a with Equity back to hoping I off in Markets just before getting So

was to for the prior a result pandemic, pretty per quarter Just business. million strong $XX that considered quarterly

you hit to a where overall proxy. think do at below the the look a we normalized in speak still runs operating backdrop? enter this XXXX as industry share I or quarter. just a more where fee And gains pool tracking what you just as could $XX normalized is people business contributed hoping the to what You quarter was million more baseline in

John Weinberg

continue Capital build we Markets Equity gaining business, our are to We momentum. and

pick connectivity is objective our As capabilities. Equity clients, communicated the top And continued positions and a tables as is And to with #XX, we're really making. Capital up. our you the probably result, success be are business happening What we we're know, just financings in in at our is and right have have and and league that having to improving, pitches more in XX. our much we're Markets in actually more our now, clearly more more we've

that. offer lot think these of think a transactions, are a have embracing capital and to I markets lot I we in clients

terms I up So quite what in we're seeing is of our And a marketing we what how far the goes think expectation bankers potential. effectively. revenue do. hard higher to are of our out it It's predict product can

far up. good. We is cry very the a we're from where that to end I we think going are think momentum we think

Timothy LaLonde

certainly, that, two depressed John. agree was seen of -- things. half I is of I throughout a the might XXXX add XXXX we've would that's most first One, And what and Yes, with relatively market. what

we we've seen So to market -- when or number to what over levels last quarters. it does be one, X than somewhat X meaningfully at the expect return higher the

market. businesses. I these companies we'll to hope issuance to capital are would implement and when because see last in we quarters, is And the been more their normal, number a a these normal are the expectation levels over the the lot and a have of strategic markets that point market to make of plans X of and have companies looking equity grow more that levels coming sidelines the that on return there issuance Second that are earlier-stage X or sitting for that conditions

John Weinberg

one our strategy we to parts different Equity of that are out are thing, with just building our add that is of we Markets reach I'd the group. sectors, which our is expanding more one respect and Capital

so a diversification and our think basically think also, to we're where And over be revenues And more I time you we're reaching of equity. I clients. see will going getting

Operator

question next Stanley. Ryan our Morgan with take Kenny from We'll

Ryan Kenny

around Wanted is you increased? more larger any how the follow the smaller improved backlog. increased difference there conversations any deals? metrics versus to could has And much on and comments backlog or on up an deals share the you midsized Do on M&A have the there side on client

John Weinberg

it's firm seeing I of pick that almost much single comparing year, It's our say if would levels give really, high. activity can't very to the activity the now the we're this real activity and and product, strengthening The any just that. you -- pretty the beginning diverse. every market every its backlog inside sector and up. single is metrics are on right really -- running levels We

think So across it's it there's really it perspective, it's from like I our -- looks a really real board. -- build. And the

our of size a quite actually conversations definitely terms now. market, say are those right are robust I'd of as know, activities having you business, deals, of large part we In deals. middle with is and big

there is are which that the terms we we that is sell activity of of and are looking in that sell companies for side significant question of I are transactions growing, no in working have process the think the number to a opportunities on with.

you'll time, over I what balance. think see is a

is we'll the middle be of the be of one market deals. deals, I Although all over on impact larger time things will antitrust think watching which certainly than more impacted

Timothy LaLonde

Yes. at -- have And But of what hiring. last add that is announced John XX the about I did would XX. in and year-to-date, we, that's I we length know some remarks X partner year, to touched course, his

significantly working will XX and coverage promoted broadens and have some beginning and hard capacity. at also partners XX add that 'XX. didn't over And up We beginning XXXX our to years. our that, we're last we internally That's that the the at partners X the hopeful firepower that here of of and be deepens

Operator

next UBS. Brennan We'll with from take question Hawken our

Brennan Hawken

comp XX%. number, on ratio. the up in the I So year-to-date uncertainty just a you which questions But if color, to certainly remarks, around ticked handful clear. Tim, know, you prepared talked could your is ratios add comp the that little a of about

year? the year-to-date expectations say that So, accurate to this reflects your for the best reflects is -- it

from last a And know I we different heard competitor I yesterday. but a quarter, asked this yours answer of

back hires just today the year. confirm you any just not in I expectations and of to that know So would outlook want that, your include half the of what

Timothy LaLonde

thanks Sure. And Yes. Brennan. question, for the

they do is start. you XX.X%, we for the comp accrue hires as and so new ratio correctly not half stated, first until And

more are that since this latter half year upward their expect new expected number. not XX.X% start reflect And the of that would imply half of so to is this our some to What year, the would the ratio hires first in comp than would you drift from compensation. see half

quarter, not have that bring be, the we people in accrual is, first not be would XX.X% initial comp up noticed get be number and number XX%, you the XX.X% helped area, does reflect people comp to ratio up. which around of quarter. books, an When quarter which second who shown What again the our relatively booked final us the there's what though would saw similar you would expect I to new second do what hit they booked to it arrive uncertainty those the in the

Operator

from Instructions] [Operator Our next comes Ryan Securities. JMP with question Devin

Devin Ryan

right recruiting we're up on Just that want in the market follow to just now. and

of joined So that than lot a SMDs or more a obviously, have joining, normal. bit

expect of guess could you X just do number kind based And grow conversations One, year, we that so this I that, just sit? on based things. where on

Just does is Or to window seen next maybe window look love sense into like could do year or the what improving, window push see environment to remaining kind you harder? and and starting year-to-date think is here. active shut open already so market then we've that it want of beyond? the as remain here? long as And do this If you recruiting even you how to then a get of that

John Weinberg

for the question. Thanks Sure.

are in that to of to to available process us. the We talk continuing is talent

we come prospects it's on, the you excited people, have our have in hire that a we're to firm. Advisory we and several across able people. is businesses, advisory-related about we time. are the all about really unique but unique talking we're and not excited it. more of -- are that we're those The that some XX about really It's have indicated, And been really As

respect may are or with very over. the we something at conversations, come finding the But people very people. may our of about to be where we prospects people. year, talented into some good optimistic with not dialogue as crystallize know, what we're for In balance terms continue in to of Those you looking

don't window, thing. of feeling it closing. the and It's been market-related, see also somewhat model -- wanting it we people we others looking is really the certainly people business the and over opportunity are work in to same the know us. but at hire I strong In the with come terms is think to

certainly it a we've tone. so been to may not And like be But it's unique very positive us. felt really

us. continue as We people strong to are they will available hire to

honestly joining going really we've willing for talent, looking As us, what pleased have with we A+, and don't hiring we stopping. those the have are level great A-level excited get will we same we really we're I and I always we're know -- who very to talent. be people and don't year us to A But conversations. have about been really preceding said, to continue always and the this whether talk clearly, will see to looking to of that years. in

As Tim we within, years. have promotes from focused the very on we all promoting internal XX-plus over XX have partners at said, We're also this and ramping last point. X

part big think to I so that. is our productive drive really to be And and we're potential, revenue that's what capacity of going going and a with will continue

I summarizing, year. we're market stay as think in the to of -- fertile this be to terms and continues I it to continue going in quite but said,

Timothy LaLonde

within, company. ROIs, value number I forward. And transition absolutely evolution if because that really internally we're one and XX% add in very partners our from pleased at we can of been have about that promote And case now And that's been with build Yes. key also promoted the they've sustaining one going comment. high are how number to was successful. earn more one. the our -- And was organization point two, that It's to internal our

Operator

Goldman James Our comes from Yaro next with question Sachs.

James Yaro

to M&A could Tim, and turn again. maybe we John just

dig little Just a a then I'll bigger down bit. and picture,

do your could to bigger-picture logjam the and do that back what transacting? when estimate? are think On companies we And the M&A in you and today? occur brings best What question, think missing breaks you sponsors

that structurally it'd and debate you medium a down, strategic sponsors, in And we market then think continued whether dig least M&A, whether term just of have M&A first could if represent years. sponsors lower the given to fundraising the sponsors be helpful get terms seen we just the to at level weakness perspective among recent for return the of on your in

John Weinberg

stability financial the of required said what underpinnings is and outlook, what interest this macro and an get more rates of the things again, going breaks always funds. accessible and terms where markets In the think we've improving relative -- really -- is that really there's clarity market, I accessibility to for for

view activity finance there's leveraged ECM up do stock we Frankly, is market. some rates beginning to signs stabilizing And is Interest show life. to a in beginning of they beginning, that have the -- warming and effective. been market The stability. the actions beginning ease. interest Fed's at of rates, very the of are some to see then the has is least

we So think is there as activity. result, a

said to stability, is is, at activity. is And down shop, exactly think really I it we what real lot clarity I seeing our Internally and which this, take? is a question it And comes beginning we're and to the of think happen. going to

just And look all but are we time. exactly to for it's recovery, think a when, now forward, so really of and place we as difficult the matter in it's that predict elements

our sponsors, In financial in dry and all $X.X have very the the in I is get And to actually What go, are very seen they terms ready that of when dialogue signal. powder. much market. to they are they're back they they're in do focused deals. that think much the business looking of on They trillion terms for can we've frankly, of just

us, But feel are in can't do funding the any we're by the Clearly, business as and that sponsors impacted like accessibility conversations interest right doesn't to they having, as it appear rates. now. that well of they

going to be seems in their interest think that. when going to it's the to think to be I moving that because holding start to see So be back in sponsors really market again, think I I do think I don't many you'll moving. they're don't best respects,

Operator

next our with UBS. Brennan question Hawken take We'll from

Brennan Hawken

road think going conversations. and lag green last a drill green I to But point lot you just what be until -- the you about on little indications activity? bit a down and a sort and shoots the and now into uptick do some these in then we're We be actually Because rubber to that see in hits to of shoots. in early seems sort back, is to a about the turn the activity. trouble about beginning think of of here, it to started shoots lot that do actually see green hear when starting year meaningful set the wanted again. hear we March of where the We us

And are true these going with I think know investors Do you are to with what it's happen? start any or we fake tough that's just that I a here when struggling head question. leading dealing another most announcements lead is, the and sense that? is there conviction does to have really of to

Timothy LaLonde

Sure. Board it step and takes transactions number then that to the have -- categories, just But are We period then to -- Yes. Brennan, it those close. the the hold for to when -- that have deal are that time of do deal bear segregate once negotiating Tim. it's in activity the is absolutely the ringing the takes is want we announced, mind once you announced. that I back analysis, a that a just happens, a case take sessions one get another to months and it meetings, tables. into levels, this Look, talk again some coming And of people different about to then needs few sense. do phones might those

occurring, analyst then announcements, in you'll, And coming for revenues takes I that to the kind pickup that's step, activity picking the going community I something a see following comments in transaction from these discussion in make a second announcements thing. from or the we're revenue the typically would not probably course, that once little those that's the up, see pickup the early going an That And when investor research from of be investors. is to quarter and X while. the of on see and closings, activity then X indicator good think increase community, actual you so a that. And in is

where, Now we've positive some quarter's a where this you is on already can something seen market do that's equity from And the as time the side results, see much is frame. something shorter you pickup. see

John Weinberg

In business of our very accrue. immediate terms addition, restructuring busy. revenues that is way is really the much a us in firm, as more for And

and also. In defense is our think an has addition, I which activism think I business acceleration fee-generating fees a business, of

in I which really we there because your it streams So can a that coming question, be, in, lag kind is a -- see of will is have but what that think relevant there's lag we are terms between that we're there's hits, once to activity inside there when then some of to the be leading going feeling revenue clearly that each then of those. announcements, actually time announcements. And

Brennan Hawken

there, But I shoots now at right clear, are green and Okay. trying dialogue, is that's somewhat sort seeing of the was but -- shoots to what you're get what also in green are fragile.

go the are therefore, and we are green strengthening? of we and definitely So cause what you feel to durable more again? lack lot sort it shoots all Or you hold at a a like on and period right now where at could conviction, still March are I'm do fragility like a of is to get trying in setback saw -- there's of

John Weinberg

we which the my now seeing were right tentative. are you give bankers more in activity activity in of in is what activity now was But much January we're right saw conversations forward. ones I February, kind it we're that I'll the January, having felt levels many building. judgment, which and more the is pushing we respects, were foundational Clearly, and than saw

forward. is driven, like that really reason happening, feel why there for things are are real these these really foundational I it's and Now, much I market feel more moving that comfortable

Operator

from question our JMP We'll with Ryan Devin take next Securities.

Devin Ryan

restructuring. on on of has commentary my just follow acceleration very well, this some and tracking Evercore I Yes, wanted that. in to active up we've Obviously, been been as

and mandates want much of talk that revenue, impacting about timing so bit already and of trajectory then little And acceleration what just I like. looks a has that maybe to how been

just see Is this long then, in in revenues already if especially some to healthy, through maybe been ramp business, system? just the what's this legs So has story yet. there based big Is which back-end but weighted about does XXXX, XXXX lasting, revenue that into very how guys the do the terms start to here? get on M&A come And you think trying market recognition? of a haven't

Timothy LaLonde

have Yes. restructuring. some Sure. year-to-date for great last pandemic And business. of year during than activity kind so which of management year. call, the significant this cases. right, peak in liability seen seen what the that then it's of a XX kind a us we've financial calls, we've previous the of, what would by or been, business kind said And was activity seen of a as that's flurry levels way, pretty would the -- I It more oriented crisis, Restructuring, question, the is we've hasn't Chapter been is days large one on but good during increase that's early

existing credits, is And rising. There that's wait extent, that's the been management, and period maturity 'XX And markets of refinanced. see. to what additional restructuring creates so 'XX, but it of kind which the needs leveraged And that kind of that including extent some of to a -- are function It's extent open a wall where will, time a to be coming liability been business, finance renegotiation that in be distressed has during frame. good. the to

there's historically, you have current situation what a M&A improving restructuring then and it's out, could an reasons. as that restructuring and possible you activity for correlation between market. see And you a Yet environment, both point inverse in where strong this also, some been is market obvious M&A activity

John Weinberg

is And the is diversity our that also restructuring which very I say would those as of on liability creditor that to build. backlog would will business I business think the over given in say businesses, I that our coupled it which much Yes. the together, management, for less really, be and term. mean us a debtor think cyclical the -- I basis, advisory as businesses, well medium continues

lot going really, you're businesses And and at next said was look the these you happening activity -- the high X see over think with low X, rising the when I years. to facing wall, interest Tim maturity a what's of what rates credit

could business time, at busier could same the merger think that even easily the restructuring as said, get I same and to we've So improve, market all time. the at begin our

Operator

next Stanley. We'll take Morgan question with Kenny Ryan our from

Ryan Kenny

comments non-comp in just there to travel pick was and also expenses, on professional pickup dig the we lease and that saw the in up. wanted heard I side. prepared I remarks in fees a the

the non-comp? we increase base non-comp in as $XXX dollars forward? going think is And sticky the how right about should million So that

Timothy LaLonde

Right.

look, them really of impact And combination areas, in so the one in of you X that saw was from and travel. numbers the different -- a what non-comp was increase

pardon me, partners thing, travel increase getting the -- clients as meetings want said which is is getting Now out having that good face-to-face we've and clients. or our we with before, in a our out

of our where number XX% levels. was If you about now about we're travel is compare in of trips, -- to pre-pandemic of terms it pre-pandemic, where at

were would per down to If from XXXX, you that person. drop for to adjust that headcount increase about in XX% the

And so bit we if expect steady, at that upward least to of hold have not little pressure. a

also, little of inflation bit costs. course, experienced a We of travel on

in staff we've of a building. critical of another we're and know data cost bit corporate services clients. that, that of as thirdly, bit And and that's a well to was to little the The as we information then the all communication number a escalation in call, it. as been there's in in second of our and And we the we're little portion last had mentioned our I read provide in our this endlessly, relocating to and age people using the area occupancy, data and expansion of services

new on the pay While process to doing having site, work we're lease the double of we're in rent. construction

So a that come little bit. will down portion

expense, If a little primarily think travel. basis, remarkably it's head about flat actually bit, -- years. you per our And several you on was this look straight at there's really will to slight is for expense a non-comp just help the been been that slight this the this and to -- our a due non-comp uptick uptick,

bit little where And pandemic. travel, on pandemic, due is where a we were we the prior slightly so are a were increased basis during below but per above, just today where again still to head to the to we

me gives And expect to feels kind and be, of some with that like a we we're should it about balance probably that's I and out. will would minor where of long takes so to saying us where way be

Operator

Financial Conference Evercore Quarter conclude Thank today's you. This Results Second XXXX Call. will

You may wonderful and at disconnect day. have a any time,

Evercore (EVR) 26 Jul 232023 Q2 Earnings call transcript