Evercore (EVR) 28 Apr 212021 Q1 Earnings call transcript

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Evercore First Quarter 2021 Financial Results Conference Call.

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

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

morning, everyone, Evercore's Hallie for XXXX Miller, Thank you, Head quarter Crystal. and you Investor us first call. for conference results of thank financial Evercore's today joining I'm Good Relations.

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

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

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

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

the over you as months. and gaining the economic about momentum What in and economy Hallie, Vaccine and distribution next Monetary progress. fiscal our working were recovery our difference uncertainty year and good to This outlook, a global a of weak and financial The well forward paused. the activity predominantly and and remainder restructuring are an the us operational time a was liquidity pandemic. and I one and while was stabilize in made With weak trajectory restructuring, and science tremendous activity there year no think of return actively the the is pace the several vaccines. planning clients There and and portion environment don't a everyone. to we on to virus and a we've good was From of and most is firm last uncertainty XXXX much stimulus early for morning recovery we many markets an strategic focus of Fast of perspective, cases makes. and on remotely. gradual underway. was the any helped spend stages was year expected XXXX offices of unclear. the Thank environment of inward so turned operations, economic shape visibility economic

Ralph, fact, financial Bob continue investment advisor in is the act to today quarter. as half clients to I capital the business are on continued year the as momentum In an call has experienced office and into initiatives. and robust, we for first The and of our last first throughout this strategic we

we in and not capital key have M&A convertibles the follow-ons, slowed to GP and the levels $XX In and IPOs We've have the it in has ever, best classic months. benefited a completion for closed client we we transactions and XX the and quickly has quarter recovery some billion which favorable transactions total capital and the several activity. and in strong way raised needs. in SPAC offer half over our to announced that first in In a XXXX and concentrated nearly face capabilities, others strong activist in market than led Transactions the results, In past more for and second Capital capital reflect and public the during has can raising, private advisory, us from of issuance. of proceeds. towards demand rebounded breadth the represent increased Our sectors capital and and markets revenues recovery economic activity public strong as participated quarter realized some remained strong The advice from have. that earlier, capital translated during announced within restructuring our and private moved including the capabilities volumes both as its also issuers quarter environment first enabled teams' meaningful contribution. continued of new focus, equity advisory breadth sustained revenues. and first that quarter defense market quarter the M&A of is continued raising in our even strength seen of participate of among transactions

solid our business. trading drove Evercore for provided our management sales connected and performance valuable engaged growth and and business, continued execution clients in has to equities Our insight stay ISI and has AUM research and wealth

Pedro Head and Advisory on welcomed focus We joined industries and Internet Pérez Cózar expanding in Evercore key building Madrid new our We business earlier from ISI other ECM month. earlier of us our as adds year of capabilities. our Head this Mahaney made out of on our Head we as continue Juan this as as well we've benefiting as Kristy Mark March ECM to strategic in Research of Grippi joining coverage new And to are team. our Iberia

the our underwriting several underwriting SPAC and from in XX% strong. and well continued our in a activity, are compared strong. desire new the raising accelerated participation the a for and and the credit, desire backlogs the continues, positioned markets, economic The the XX% capital investment markets off our the of U.S. persists. quarter over XXXX selective a have XXX% key respectively we Though outlook, equity fourth for have merger remained to first us respectively SPAC market momentum Several strategic past quarter. and opportunities. ingredients in busy strong ECM, weeks, activity private key With dollar In to the raising to place, remain in Global for strategic CEO M&A in available high capabilities confidence and increased continue X% activity increased quarter. we first of market for in M&A strong many clients volume and though serve and positive capital cooling be seen our equity announced

activist in advisory on shareholder in new activity see the in to positions level number of end U.S. highest two reached and activist continue The activists targets. more years defense. of larger XXXX focusing the than and We at its are

secondary are in by we feel front things, seeing of On In we capital new us. GP for and capital business raising we are prospects excited accelerating we well advisory momentum of and the as see side as continuing private activities. in both in short, the our level activity funds

well broad more as us capabilities to they priorities. execute services to their Our clients have positioned on offer

first to adjusted leverage. operating We Let share, our net adjusted results. driven operating revenue income me good solid record now adjusted growth income, quarter financial and adjusted per turn margin, earnings operating and by achieved

net grew First million of XX% $XXX.X quarter year-over-year. revenues adjusted

expect consensus grow market ranking the maintain quarter among Advisory actual share $XXX.X traded Based firms. same XX% to First to fees and relative to #X current our XX grew of all on these and for on firms banking advisory results, months million estimates investment our we last year-over-year. publicly Fees

also the between the and XX-month ranked latest our us share to on We firm Advisory gap continued Revenue #X basis. narrow and market

million of Our than year-over-year. $XX.X Underwriting more Fees quarter tripled first

us As we raising in capital said a step-up diverse to experienced substantially increased of enabled quarter, our this last expansion demand the enhanced business on assignments clients. work coverage XXXX sector for the capabilities and and for as

which We our our have broaden participation believe helping we to across grow continued sectors, business. us is

revenues quarter their in revenues, largest healthcare TMT and compared industrials full year to represents XXXX. portion the While more combined of first the of still than tripled portion

first levels million $XX.X of to revenue related quarter of as and XXXX. declined elevated X% commissions the relative the volumes quarter First decreased year-over-year in

on asset was quarter fees year-over-year year-over-year. management administration First of quarter at higher XX% and AUM, $XX.X increased which XX% $XX.X an of a increase end, billion million

Turning adjusted compensation to first is quarter the for revenue expenses, XX%. our

million non-comp year-over-year. XX% quarter of First costs $XX.X declined

first for expenses his will quarter on Bob XX.X%. comments. is the in non-compensation more ratio non-comp Our comment our

First net quarter respectively. increased a XXX% and and quarter EPS year-over-year. a and increase delivered $X.XX margin XXX% $XXX.X and We income of XXX% million quarter adjusted first adjusted first adjusted operating operating adjusted income XX.X% of million of $XXX.X

shares. the in annual dividends million to to repurchase and return our with through returned share our X.X bonus on through $XXX.X grants our associated million Finally, the we quarter. offset to we RSU the And first commitment the achieved capital continued of execute We during strategy. shareholders quarter delusion repurchase

of of an Board Our dividend increase declared a $X.XX, XX.X%.

dividend We expect the each our reassessment to of April. annual continue

a repurchase also share approved of to Our million. Board $XXX refresh our authority

in repurchases. We needed additional historical returning business not investment through shareholders cash to policy of will our our our resume share for

over on some highlights the to turn XXXX to let and first our our discuss Now business quarter in update call me the priorities. Ralph of

Thank you very much, John.

at than level Advisory. income, results have as level share, net measured operating quarter financial any income, margins we operating revenues, and and managing operated metric, a we demonstrate are first which higher director operating by productivity of per historically, clearly Our earnings senior that the

benefiting from the pandemic, metrics travel business. into other the due margins our the financial While strength are our operating entertainment real clearly indicative decline uptick in modestly of is the to in a and

full first independent in mix the history transactions and of the in top transactions, two M&A advised to in first M&A league best largest among the year. our announced year quarter XXXX. our Our quarter March last the U.S. diverse fourth quarter results, capabilities, our and of quarter and first sustained both and the XX of third table the #X results globally in to On the our on we announced financial the ranking business our more XX, volume record last as performance, balanced firms ending of for the dollar quarter. And we months, record as well in contributed strong firm's

at we our tech merger two are this events, advisor April. quarter $X the capabilities merger a in billion. sale first billion conjunction the have prominent not the and via as which announced also the as of the were for for and $XX.X pending Nuance the transactions while reflective announcements of of this merger SPAC it year, roles billion strength largest breadth served year. a to and tech Grab's SPAC are year, across with These $XX largest advisor served of we the the Additionally, defining lead little issued largest to firm. both a merger, And tech pipe Microsoft, franchise merger teamwork on on the our biggest in sole and and clients largest Evercore IPO SPAC over collaboration second on history, in this the We

unquestionably million increase year revenue but bit we real have revenue in opportunities get over little and expected identified initially business annually, we It $XX ago, ever. underwriting underwriting perform that When to one ISI to ensuing of business. step to million first the by a revenues few to produced continues perhaps $XXX transaction that Our longer to increase definitely of this function important to seven than created we to almost a quarter years. the best of its be per level a acquired ability took our third most years well we seen our

the the past XXXX, quarter to within including set needs business that balance Activity of the of for three in backlogs remain without million any $XX million just that strategically out where first and a revenue can strong target $XXX continued Needless quarter fact, in we aspirations to use have to that to say, four year. full materially. building we business In this this the focused clients of serve we grown and be underwriting quarters, continue so one of our had our our sheet. on for

in and offering transactions position third the indicative The book-runner and we These capacity also number of of to first XXXX, convertible significant our breadth in diverse biotech the our a sole increasingly convert. convertible of on meet including book-run diversity and needs. an the saw a launched first debt quarter are our active client space, which of platform transactions quarter

in ECM for Dealogic deals by XX earned top in the as investments place are Our estimated have us underwriting a excluded. when revenue bot

on balance increased [indiscernible] our continue runway our have volumes PCA, believe to have which fundraising sheet as our our to to real into focused during primary call we currently breaking share are businesses, call business systematically advisory quarter. block we strong fundraising in We which secondaries we call in be that we advisory done secondaries approach. Activity estate and in trades meaningfully as here private capital we business like and PFG, historically. our and the challenging advisory given seems continues our business independent we which aversion gaining the top-XX The

have fundamental team is our and restructuring management, new by as private solely on the stressed activity towards our level to client The execution success in XXXX be to market continue pandemic. relationships are the and through institutional to remote track economy the footprint communication. transactions connectivity insights and strength is macroeconomic superb the levels improved. back restructuring through In focused continue our executing work started by Our debt resetting In and this strong unique area driven success done as liquidity equities, also historical to provide analysts liability financing in client are conventional assignments engagement that including of team’s clients. our and valuable sectors and and in still continues record, meaningfully assignments

that as we continue earlier analyst impactful Our to franchise Mark performed and coverage team And a serve to platforms ECM webinars meet stocks senior corporate are investments demand contribute in our for will continued sector natural to who we extension the internet to capability our events. always also our high growth we a including The access clients made with virtual for client and robust well conferences, during said, support of to we've has for quarter convertibles expand and And launch month. our us. on this continue the Mahaney’s will look this our business.

remained we grow to to continued as to AUM performance very as provide soft continued clients. business management and wealth long-term advice has our our Finally, have important

of me priorities our the year. turn for now of Let discuss the some remainder to

important As we the we think items. about the rest of year, are focused on several

capabilities. and for intensely capabilities continuing Evercore two, our financial First, business number we focused by groups, to financial to certain most enhance broaden by significant sustaining for coverage including growth sponsors. three, one, our to client on the are investing deepen advice position product our decisions. on industry their of continue outstanding and groups, geographies out Number important Number around XXX to as initiatives and by build the and them continuing we further long-term advise to providing most strategic, clients execution continuing our and capital

our paramount are for return with employees safety the we globally, our our on we execute develop focused and offices Second, as and and their plans. to our of health families planning

Third, to to not excess returns while finally, focused our and our and strong and focused sheet. on delivering and cash integrating and inclusion we hire, sustainability discipline And more strong repurchases, financial we dividends we for maintaining business highly our on mentor equity are needed share balance growth and with completely conduct and talent. train our liquid are a into how diversity, investments operating shareholders. through we Returning how shareholders

why mentoring, individuals continue [ph]. Advisory in our on are development team biopharma, model. together culture talented geographies, fintech, recruiting Managing and important we many we the months. focused strongly and TMT, promoting most Senior contribute crucial them actively have when our sectors future office to with and several Europe promoting we to key next over financial Director including mentorship are of to A-talent + to are apprenticeship commitment and These our to and conversations experiences which recruiting, our and long-term effective healthcare, professionals and leaders, We believe to sponsors, return in to are consumer, We from talented that so in-person training is collaboration, A our is Equally and attracting, the are and our within.

to We Managing Advisory higher be that long-term Director Senior average. are sustaining at productivity pleased materially a than our is level

new longer, Directors However, a Managing reach we full are a to productivity. internally probably that due promoted finding, new hires or is and little longer so taking pandemic perhaps year Senior the it to

we more growth. ramp longer have future means contribute this our Fortunately, who to partners will that time

Bob, and to exceptional each I team. the of member over call Before our want thank I turn to every

quarter collaboration our without the the the teams results there that very employees results of strengthen to one and first teamwork, past soon, summarized plus that such John year over in back I past forward of We much challenges so could achievements and to team. our has have have dedication, our challenges. the been our together can single happened has and The commitment look that success. and entire our been and bring many up the year stepped build have not and continue really Every to culture foundation the person of we of

to the call turn over Bob. now me Let

related and morning. you, from few $XXX on per GAAP share Ralph, earnings with $X.XX and million, respectively. and Beginning net quarter the items and income net me revenues, just a million metrics, first $XXX Thank were some of a this basis for GAAP XXXX,

GAAP the original XX.X% compared The the upon for our prior awards period. grant share of GAAP affected share above price price the first positively tax rate year firm's the Our quarter. shares the was vesting The in per XX.X% million on was appreciation for quarter $XX.X was effective based to adjusted employee for basis. for our basis, earnings adjusted $XX.X GAAP share for share both and first quarter. the count count tax On the a rate share million

non-compensation John generate per the X% to continued $XX,XXX reflects for The approximately were costs, on Focusing for non-compensation significant non-compensation we costs. employee last wide down Firm travel costs in operating employee and noted, related moment expenses. to year, quarter, year-over-year lower versus leverage, costs lower a on primarily per non-compensation first as part due basis. decrease in a

to other eight briefly to been renamed earned entertainment, including made other and other in we riskless in with towards in-person during operations, change that to this of income reclassified be statement our principal recruiting, Fees, your revenue investments. costs has transactions like to evolve are Revenues, our principal I'd expenses which Related in Commissions The release. more and expected press modest for from engaging includes offices in and our to revenue, and convertibles normal and income securities. with Commissions going call fixed and attention As a previously represents returning back profits, and our income presentation including the interest clients, found continue associated to quarters in the riskless travel, Related were increase. spread can quarter. now change The amounts principally reclassification we

and refinance March and return if balance on year We On the from over a equivalents we coupon of due compensation two the principal quarter, issued a in cash capital. on senior the call Operator turn related the at focusing now sheet could questions. strong XX. to placement. XX, end X.XX% Finally line. amount Securities, cash of of held to Investment million in of private We'd million points. finally, for notes like you a from $XXX the matured open end $XX proceeds that with we And and down $XXX payments, the to notes million use March notes the through senior aggregate unsecured

with [Operator line Brown Instructions] KBW. the first from question of Michael Our is

operator. good you thank guys. Great, morning Hi,

morning. Good

morning. Good

COVID, work of live or wanted Yes, lot just start and a way the the that growth top and digital a sectors. bit. impact the we some about and -- technology guess shifts we've across in all in talked of priorities you forward alongside tremendous I on for little major narrow seen that of long-term with pull secular a to and I

promotion? of you where you mix, to things that the do that to not made something think internal shifts I AI, a you major about forefront or these you and talent these hot coverage sure via continue area that's can address of really exist curious, EV, need more hiring as sector So the today, of may obviously, the at of Is ongoing lot a where was like Mahaney Mark sub trends? invest software, you're with lot that address you'll and an Cloud, think you hire these to and just is will fact you make development

growth is technology on areas around a We business one. of are focused and one our very them the and clearly major

in aggressively our tech investing tech sectors. the talent for are looking throughout business. We're We

to strategy that about. you've many a have the We in of populate effect areas talked

bankers very are good tech already and We areas on have in working we're some very, who them. those

As in sectors whether looking very we've focus our other are it's whether think at grow also we're you to built capital are sector We we several out but it's high and continuing equity there growth energy the tech healthcare area transformation. know, tech, in. also, that markets besides and biotech, sectors really

In area, we for very whitespace, capital other whether high and think or grow on that where a whether runway area respect it's focused we there. fact generally gas, real in have oil us Ralph to we the it's looking and much which we're very is, to and it's equity are in articulated telecom markets we growth our Europe, addition, have with we're,

technology, in So direct are very focused. question answer in your we to

And now. for in feel talent. have place good good think aggressively dialogues I looking are some we we like right very We ongoing

the of in last and market is years underwriting. But markets XX benefited both of lines only statement, a we're underwriting. to in Advisory continue income opportunity is at for thing years would and and last we And in of the let's in and robust Advisory our us take add would to that, you two five-year growth right underwriting. believe obviously now, by I if those, come handful Advisory take over The as expect that both have the statement, income The on over look we to forward. share, pretty we look

Okay, topic. a great. up on follow And that just quick same

But from some at to and so Now seat, their worked that down made, market XXXX. environment could time. was in I the historical current a Thanks. little just on to industry, as you and if really things hesitant could move, if maybe slower trends the are environment M&A bankers at really be a across relative the of look agree hear I I'd hiring periods? see hiring the could have with pipelines the that here their be interested of bit Evercore you my wondering could be least you firm hiring we just over at I seeing for are strong been to expand what some it that to seems being of in keeping assertions the until those some how make trend and

from prior resolve itself do think because that were fourth as environment about this slow right we've hiring until our there's think is on we today, said And new XX sit eight last March quarter. be X, in which relatively the we for of years business. last and I year, why don't each Advisory didn't here we the was the from years. reason the year expect see an phenomenon all early industry-wide for uncertain that the now, SMDs would we any really I higher, different

flattish. up lot and headcount versus a have about are or just in you pickup even year firms a last underwriting in activity every and and not So M&A, other most

we expect talent So our that that intense right will from is doing but prevent hiring. don't now, for pretty normal the us fight

are are In fact, that ongoing to many are us. many I'd dialogues say and with interested people there people there in who talking

of that we of I think moving seek out forward. Ralph career things think is who their a that have as large found number have us I and they about the one people

And really so, we offering feel on them broad now. like and working right we of we're have a opportunities,

talent. our absolutely what top think are aggressively environment to we're we we're seeing but that and find who Ralph and level acting is competitive, very think opportunities trying said I So is people actually right

Okay, great.

environment, a but my it's thank So it nothing can't sounds you the challenging in that hop you for like Great, questions. back queue. overcome. I’ll taking

the line from Manan comes question Gosalia next Morgan with Stanley. Your of

I can of you started that Hi, year? to can where replenishment of on the how You backlogs analyst rest of and maybe you mean expect know, talk your pipeline unpack was the if comments you your relative are also evolve about activity. know, year? good morning. how the I and wondering you for your M&A the trending we rate rest

They're strong.

are are strong activity much Yes, ongoing. and is they -- backlogs very

As we many dialogues and place, economic, the in is the activity And outlook, said, private in are we ingredients whether our counts, in markets, are like are equity CEO just strong. things activity, positive those equity all place. it's sectors feeling throughout the level

So feel said. as we optimistic, I think we

activity that. you is and remarks, outlined of his with look if in of which And at the opening dollar just level consistent John the volume that are M&A activity, our backlogs

what de-SPAC We've how talk there out SPACs a and activity opportunity remainder of that of looking for opportunity still can presents slower deal. Evercore know, plus seen the with year great. you you XXX that a specifically? a little the that, sense the Okay, for us activity about give Can here? bit And you there's trend for think will you then

in sides we've to mergers lead or steep Yes, good sell that participation pretty transactions. particularly had SPACs de-SPAC-ing to

So is normally you when new to our a is, backlog you strong. area pipes that think pool in the that equal cash essentially about private almost have at look and it's equity And the we way this obviously a or time not in SPAC to dry powder they in and have that almost investments. make of which have SPACs a in their trillion de-SPAC-ed a transaction, the yet have accompany $X they there's de-SPAC

of M&A course, So market private alongside equity they in power are and significant purchasing firms a of the source strategics.

you. thank Great,

with Ryan from of Devin line Your next the question comes JMP Securities.

great. Hey Good everyone. morning,

Devin. Hi,

deeper kind the I'd Advisory feels opportunity But or an I past just to deals kind trying market. Evercore companies the expanding in love of some Clearly just in get ways maybe layer just bigger about experienced bigger of they that of culmination are to are market, and in now before, kind year maybe Advisory this of there's then Advisory as I'm like step is market haven't a around happening whether it but and maybe question the of and share, something a function the we people just we're place. done strategically haven't it to and as in has within secular here just think past? if a the of take ingredients the that the are the that growth been picture in thinking activity Another drivers that on unique appreciate urgency new

we that would I think Well, don't a necessarily. see step function

as up looking started is consider that talked quarter, a and continuing they're there and and process to where now. on CEO at is the at the in of begin in, They're the we go dialogues right grow. as a good really looking together of pick in strategically, money people's a be have and the mergers their to are where know, as strong of executives economy I the confidence that, I weakness is ramp really people's you And to part boards And very way they lot some they of put that many, cessation to don't that them people overnight. which up money and in and lift looking and think about saw as just are we They're culminated happen so dialogue is them a to are fact is do really right dialogues has the looking are and of a as many growth third continuing really started I COVID access of and what to what think in now availability their that really we fourth terms of at think is momentum go inorganic could of the that looking economy what from what we see deals led views growth. up at to thinking activity, to growth seeing given shareholders the economy. the many plan what these respects think strategic lot really ramp I is, they

from our and perspective, companies. And activities that there of -- we I continue addition, in a And there's so, a on big growing see momentum. we its' that on focus we focus think lot to just in that the just so have, is

progress, companies, we on able We build I making some in prolific that focus think business. momentum our that I progress to continue and in showing think to it's we're and aggressive are

And historically cycle down XXXX to and crisis probably only by long up-cycle probably cycle I had look the was was long. up-cycles caused through financial to years X is, XX X-year we've you over the if pandemic today, The X and add the of X months out the thing long would X-year from coming cycles. the Devin down

M&A strong historical now of recovery and we've cap GDP. or period global volumes had we're we're notwithstanding the or below over so, last And the quarters, M&A either still in that market of the trend versus a global two again, volume average

I way look the at it. that's So,

year line great just was flexibility about perspective, Yes, for ratio Bob that's with moving parts, here, throughout thinking it. near XXXX I but in year, full appreciate one there's then the comp number XX% the maybe approximately the quarter I appreciate comp first level. And the the a in of

bigger all to get comp a some now? kind puts the record just, leverage metrics given I want levels commentary some leverage maybe kind think operating are of about right especially the takes as the So around how, of kind the picture at perspective of little of we you and about more and XXXX operating in, know, of

positive not I'm kind we comp successful as a negative basis I out the art, year, part me figure on always we that right pressure year side comp have you some early as trying of the of asked the this in mean, think the has is requires a lot the that to we a away. anytime goes pointed tell judgment to statement History of investment would It expect it's Yes, full accomplished quarter. days. generate Devin, if income successfully first that and putting against with to during level would to performance. through cost year us side, Ralph is very but leverage out, perhaps I the he's say

puts big the two of early So, What's line? What's it and I are takes. days. investment, top level the and those the think is

I you you. to Bob, figured I appreciate give color, okay. I'd Yes, some it tell thank

question next Brennan UBS. the Hawken with Your from comes of line

a it pandemic prepared and given longer think you're that recruits Good might promotes. that? be ice before is between morning. made of just back unusual of from were Ralph a deals color the questions. seeing the of has just understand that they discussion is you Is was on could the you, for There last the environment new the whether banker seeing basically ramp – comment around there therefore years it engagement corporates. something moved, If how a put specifically, the in then I to and my the was lot come remarks. or of you in Thanks and believe not taking a tied or a time and maybe bit few this and a trying term? dislocation I'm the in better Does do context a to we're little promotes difference there's more recruits? the to after environmental? [ph] lack it for provide And new this for some apply the just vintages, and with if

okay. Sure,

the comment. we've genesis data So, XX got this. to let we've you going of give me XX back that Historically on years all,

at look first year, you the is assumption stub external minimus the If promotes, revenue. best the

third we're full And the it's normalized year, not in really year been or full but what because the their third that hiring last full be, has that get line rate would this second finding is to to to second run normalized productivity. second get little and year revenue they're couple generation, promoted being they they it's after it normalized some promoted full that and because is as ultimate well. different year XX% already generally level promotes, years first getting where full And to would you're promotion, what historically year that. they of a internal the the XX% of The have they're

function Our hypothesis, can't enhanced challenges this human years hypothesis but interact we're when in we or from client four that of the answer are to a base the you a period now, is not an of building know three our a basis. is going until on with people

younger corollary a The person relationships we promoted, from to the are to year, on needed their trusted a you we've been who about the to relationship and they platform for ability lot to got capacity the when of that benefited to if senior a things term trusted banker is companies turning of I for establish So, advisors. person things, in do harder. long is who is, last or a banker think that internally a have bankers contact has that new one just think or kind of

rather that year that's does we so, we relatively that reason going here And last year on fundamental. it's nothing hiring really is out hypothesis and even is a what's bottom 'XX our number range. who and than in in or top have at of up eight the still in to 'XX of a at four 'XX are were fair We that people was SMD we our mean called though it that it The were ramp 'XX were who phase. promoted -- light and for that because the have hired

Bob. it's Brennan,

The would due the seven other than been capabilities deliver normalized part know, the to have broader the is, you And of them that client, clients the firm to is all that followed to the SMD can would or higher point certainly it to or clients might as years five that add materially firm. in I the much any productivity ago. today

we, of Ralph joins clients, of there's it his as in bad that those plugging more in made a made connecting view news takes us this his, in as longer, note the capabilities and sort bit upside someone a while in as all comments, it. little in them our all into So, to isn't

ramp they're as that place have stream people the that quality. or three I the going good it, going we're high and to but say in people to years we've both really good contribution and really anyway making, right feel I'm in well up ramp it as would commercially, last very making terms the just say feeling progress I that about you but are the really really to team And coming so, The of now. it. are this, just add We I'm say they're about probably expect would I'd and because the and who their about believe in we culturally. with our added

much all for appreciate color, that, Thanks I thorough it.

quarters Just you think a hedges for revenue probably of, time know, the since so would cash was $X all spread same period, that it through a think in few you. up items, And and the over Where vesting is the is handful when X.X. component, that the about on was to as instead Can comp remind, then kind you or you Bob fully there where today flow I at comp the be to million of flagged we SMD gain or quarter. headcount? follow offset we -- tied next over stand do were this of you from this

amortized over a easy one all generally period. the our vesting Well, over is rata I’ll the XXX do statement and of is four-year comps income the first. deferred here into on which pro period,

tied but right? period? shorter vesting shorter a which So, over cash wouldn't vest the to it Right, period a is is this

whether vesting. is same program the it comp stock of the deferred All restricted the cash has units or deferred

fine. Okay,

the know and you comp was ratio? that So than flattered, offset do that flattered therefore, comp the benefitted much so bit how more revenue like a probably the

a say has comp Ryan’s deferred -- and ratio cash is work. to going multitude I’m back into them none down puts takes, Brennan to Devin and this the factors, question of translate comp It amortization how go of does

Yes, shot. it was a

Your comes next question line Ramsden from Sachs. Goldman of Richard the of

in Thanks. is for This Yaro filling James Richard.

help that could the up and have that M&A? do opportunity then, you the you of situation any perhaps ended to year? companies So ended cadence And the expect do otherwise restructuring the of to the the doing what up from this understand over recovery be us business economic restructuring meant here idea of lend the has credence in would the speed you that course

returning its Last in there historical usually, isn’t white And what to line past, levels. bright and It's other my advisory. which a bump was black. the of really said of grey said reiterate M&A I in I’ve first and between would forms sort restructuring to to of and is, historical a year and restructuring we’re opening upward to is levels. as back I question is returning a that The activity remarks, bit

amounts in debt advisor we incredibly on And we were of financings. raising important capabilities so, some companies year who an the last example, were for were restructuring to that large had CAP large those to and them

activity debt market in level companies world there one, number very environments. most though kind in And a economic of or today even that in market recovery. and we’re liquid sectors that the and economic even very restructuring there of environments we’re -- are robust So, always is particular the liquid challenges where healthy most a have some debt

to kind terrific is, we last this year, capabilities and our as way capabilities back help -- I and I have group, not say year privately, then to are, restructurings, think companies we about the or we in raise in did these traditional some sectors utilizing are some given debt there that but management, did always that liability and also in do we’re some obviously of levels individual some So, my any restructuring in have as to normalized stress. remarks, companies

more and companies they what with may portfolio to some seeing that add that, time that creditor done group distress. have sponsor would extensively only and what debtor is, are The that and is have also expanded that thing has be opportunity they done they have I in we our set, their spent

So result, opportunities, there those are there more see them, more targets through. for we as are and some a of coming

to continue and with. over really create that’s time, we're own group that So I something see happy you'll think that its momentum

it. Got

this M&A such this seen continue. strong and clear you expect backdrop to do [indiscernible] so it’s a year far we've and So, in

derail So perhaps that geographies this in is not there M&A year? anything COVID have so shutdowns of improvement, could to this be and as far any of think such you really seen negative, the any but this related you further

that back. it's there it, happen, that. international disruption. whether seeing see to strengthening don't see, We We that really we see happen, an political what won't could and is drive is there’s but we you issue really that say the could but be really issue know, haven't we're some anything a even That come that momentum. the momentum seen obviously There really could a does not dialogues flagging don’t of it if continuing things any be more, can

think is. disruptor optimistic, the overly don’t three I that continue months not any to to that the our on as it So We see think be horizon. view six next momentum we that real the will is certainly over

this That’s came into you And returning once but again expected had environment, new ratio and are better then a great. know, you in office. year than focusing now to you non-comp the your on

costs could your expectation you COVID permanence related on non-comp of here? maybe update So some lower from for us the these of

return changes remote inevitably sort using or the perhaps be We -- or used flexibility they the it there is the is, are expectation to communication execution engagement But not and I at can of levels. and or I et bankers, face is and travel cetera. in the John technologies senior a looking and some won’t difficult at recovers, think research if our will rate ask to pace efficiency of that like that Yes, Many with achieve you which travel in entertainment Ralph to historic it clients think expense they’ve to. analysts, will any the step forward in require We levels. function learned. engage face

do. optimistic recruiting it there’s And to go but is it that to hard on going comp just to I today. lower success The from is it hard will the to function judge. we’re of will down imagine up. pace question, So that a made the up, levels will It’s comment I of and work extremely revert go the

congrats on right, All the results. thanks and a lot

Thank you.

next Research. of with Your the comes Wolfe question Steven Chubak from line

to we non-comps that at was normal base up that as watermark view the look prepare metric, of know XXXX XXXX the was Bob, I which watermark about for per non-comps new or for for X,XX,XXX, normal T&E some metric curious think I and following earlier historical I'm to now at to employee, how point trajectory reverts non-comp some at from by more just that should I just off new your on if just So, line high normal? like T&E low underwrite on I of is about the budget say, question wanted once start as X,XX,XXX. should reversion non-comps, maybe you just your favourite we

significant you'll technology watermark, high. proportionately estate you I just about of we investments you high recall and as that time think should, that empathized some talk the real at sort

behind So, are Those costs that now model Steven. our much into of us. accelerations is of operating

high But So, an from focused benefits travel, entertainment, The benefits below new XXXX talent. low that the to is us. for more that high uncertainty on in watermark the far I of don't of we're case that again, of see the something watermark. investing and benefits

way, on us in and disciplined because line. a a So growth positive drive and further it it that’s goes top should up the for

normal hoping the TAMs stellar begin was at new levels new [ph] normal such $XXX excellent activity the time to as to business few underwriting the breaking admittedly And to acquired for just the Evercore the that has rate is for a I maybe bit run Activity how industry-wide time target be the maybe run converts the a thinking above the of that new going million a million Bob. the just outlook. same you bit? for rate $XX well you the industry, into following it's the could And slow ISI. even given last pace speak to one neck follow-up quarters. at you're normalize clear color to in on for also Thanks expansion about started as

Evercore's share of is things; the I two level function have we one, don't activity and number that think market because underwriting within a activity. answer underwriting of to really that, revenue level an of the total underwriting

not which and is that know, for quite source when out that in of the block you I'm business, you this. and that second, underwriting best revenue The at you Dealogic confident strip we're look trades,

XX break going the top-XX opening given we broke into in Advisory the last through advancing were we opportunity do question, and the same answer easy us in would you have Advisory and but the sitting said would pretty think than I my go thing me the revenues. you I do, as in certainly that to harder probably into know, about the yes, know moving into now the Advisory from we the on in to -- break up breaking into to seems teens I would top-XX? ask XX continue say in years reasonable seems basis. world XX-month I to beyond that remarks, toward the And teens. when that's gains in to but You have top-XX for from we're the move an over that, we it trailing probably is, to harder we to in and broke be And XX, that here same top-XX ago and share market from XX #X you only if a

we're to like going And and maybe what to ways that existing business. increase of are least I'd to base is, our with more add that our revenues two at that there

are is and we we in the seen think we work and that's feel more fees we in role edge further left become respect one. those The trying go, we're left, a really was more a that, we capital We the our get continuing fields more to we with contribution. active on, those and and deals that little more we markets. the active to in the the and and the Number chance the march to like two, contributing are leading are equities you've healthcare the do like number are first in involved more, that higher meaning equity

other is invest transportation. for expanding evolution that see and will us to We industrial don't And sectors, be to and also really really will we whether to what we continue that. that to business. going types, in, in of into and that's is beginning that -- other are see develop technology, But that restriction think continue we there momentum a

evolving to. we're we scale beginning think the with any So, seeing expect and that sector get is to get to would just growing, can as and we you really, sector that we increasing opportunities by are business

things those that exogenous growth. maybe think two I So factors are to

very given just number at capital admittedly they competitors a the your just your free position, the just relative that, strength I'm similar you perspective, given trading profiles. debt And to are color. your despite since for Thanks growth small in it within have they earnings to structure liquidity on capital how also helpful of especially why capital your of stack, debt need curious sheet count that of that one squeeze more pinging overall look on did any buybacks me, basis? to wanted maybe touted little very appetite fact accelerate do just giving see the just I a fact bit to you balance get of multiples as clients share and I speak on the a Bob could liquidity, quickly PE higher the share at some to if a maybe year-on-year and have a have lot creep is structure,

in significantly. see the the the that unvested quarter number when little about a good you mechanics that as increases go So, you is of think a increases news of of the share company share count problem, such share is significantly price creep which RSUs shares into bit share that the the your is count

back negative in if perhaps the decision we leaving increasing a a tactical that corporate refinancing a the the was count buybacks simple a so And of X.XX%, problem. cash in finance outcome you and improvement to in the me even just a contributing the bring which that million $XX the corporate very good for to Steven, in Borrowing a is no about all accountant analysis, a at sort quarter return the remarks price, my a so I shareholders. this to to the me, basically major that function mature down end debt of of on talked brainer of the available was to factor like bit at terms let quarter, onion share of way finance the a quarter. share decision peel have direct for

my for questions. taking much so thanks enough, Fair

comes Piper Sandler. question from Jeff Harte line The of next with the

roles you much will peers. think move we SPAC Great conversation A of on in once earlier, independent to you at that of One, versus help couple from up morning, the somewhat of business least. guys. as underwriting years? couple quarter through Good do SPAC the unique landing you de-SPAC-ing some again. left How IPO the is me the advisory next questions following other

creating a like are lower in underwriting vehicles, on participant We've vehicles investment First very of all, that much SPAC of modest we're we fees, cutting promotes and are been with vast aligned what more new blind selective. we've very the as pool SPAC market, underwriting investors. with as majority a the of can a And traditional done the promotes hot for are couple opting you in more and issuance generous imagine, sponsors institutional of we've SPAC than SPACs well. edge done

among underwriter, industry this merger as firms it are by here. but driven having an independent only not real that Our we've not though capabilities. but capability fact SPAC -- even business is not invested unique the capabilities, heavily in It's we driven in that is strength by very

a companies for backlog be are only completely in transactions robust to the piped participant modest de-SPAC-ing we with be are we unrelated And public They through of to kinds underwriting well. independent of us the fact do that assignments. capability opportunity They is firm so, that a have. happen a provide as amount of the independent a opportunity to adviser the transaction. an merger those to advisory us got as and And private going we've view pretty

Grab in transaction point lead we the adviser of M&A the example into plus an we on in as Grab a the well. merger for were $X pipe view billion that were SPAC, So, from participant to and Altimeter

material is are that in and terms are of have thing partner. to XXX the out for revenues, raised So, SPACs most so capital us the future there looking that a or is who

that business our really And effect the not it, quarter back now, apologize answer, in it's I to where it's that's first the what but a right slowdown this, ramp up a on so the for activity way the honest. that's long be major either

that group opportunities advice a who to are can who our have that, from they've really could be we of the our we've we Advisory clients and I them really there doing and we give And have where giving who through translated whole done would actually different -- talking capability good out seen what those think experts. clients appreciation of that actually SPACs things what strong SPAC that one actually other the offer and I really is, this -- is benefit they is interesting are very do thing respect get can an a a from companies appreciation doing SPAC business SPACs. can say and people And for have Yes. advice expertise all with that. good And there's and to what

we on are of knowledge our have that us of to for So, a M&A that opportunity high is that participate SPACs side to and and think it. to we de-SPAC-ing level really I the think applying in marketing capabilities bigger of a we we set and leading the

And of outlook a one kind productivity. Okay. then on the final for

unusual, is much that businesses what but rather are we a which [ph] for So, of close are had well broader the little a peaks a given is trajectory relative now historically of How XX lot the you've thinking first got the below is high, I about simultaneously say more you million you which didn't to service product SMD right forward quarter, to some also XX something such in there but seen. offering strong have years ago.

I'll let don't comment Bob then general I'll a Yes, -- why math. through the go and I make so

to look quarter's feel numbers we all as one that always thing have think I do. crazy to is at a we

basis, a XX-month so, And basis. productivity, rolling full SMD XX-month basis, always look on when year we it's at

And line all we because denominator a identified week -- that the are not earlier joined bottom the those is in so, don't Bob count Bob let that, I'll not but that calculate we denominator through, the XXX in go way the SMDs ago.

really we to that people many for that you ramp doesn’t in period a the as what different put for internal It's think you long the it Ralph productivity do which earlier. really our year as the the denominator account matter. consistently described trend. What I is Ralph ways. referring in for denominator external hires really calculate to them, don't metric Jeff, put is,

ago that the comment or be a of impact this of, on the year looking not I potential I'm the profile operated, on productivity. think individuals you're going in at either we're looking had think moved going productivity, positive to which asking platform I do about, of their take a that stance on have at People, to based the personal out. productive on has focused company just markets they taken, to the the completed actions trajectory really numerator. actions on

the So, will be. I everyone positive think push, what for help we've I the that future on do view without upside going think continued to are got sure right that's and the taking revenues that on productivity on a team, to focus making will

question how that end I Had on have same at the the call, remember would question year, earlier received and and had? some He a was don't been it you that asked number SMDs XXX. I hired answered that some we was this Put been another and of a many it SMDs that externally Bob, last don't of than way, promoted asked remember if Advisory Notwithstanding XXX. a we fact higher last the we would the year ago. have year answered

XXX.

Yes.

Okay. you. Thank

comes line the of question next Global. Jim from Seaport Mitchell Our with

Good morning.

morning, Jim. Good

longer fixed including Maybe about even converts, just and principal you in talked in question, term, in strategy a convertible support capabilities underwriting, to income. Hey. investing riskless new trading trading

an is pool, So, pure another term? the here security eventual sort into in there you hybrid another debt assuming underwriting, converts, success towards eventual, of maybe longer fee that test expand and a is start like vertical, to step I mean that could

we're At that. doing this thinking not time of

are in that, place at business and really to debt thinking we're getting a the light much because know, with as you a perspective. consistent a of have we're that you And balance and We from side are time sheet very that be said balance this we've but need we go, business firm. advisory robust not into financial we debt have we to more is as sheet a thinking advisory,

I as the So, that place chart on not us for currently it for think to a growth. use is

lot as think but the one we that on places that's a other of them. several here, not call of we've mentioned have We them

simple. of line bought the is we're businesses. going to either risk, in never really business, or here the think bright Yes, just requires the equities those form in trades be I If deals it block capital in

sole very for a feel example, And is, are first loss, the a to earn when activity, not. it's of those high at the wind de you in offering we stabilization earnings, the doing totality aftermarket. high and when it, look risk revenue, one we, underwriter of we we we up fee really be have trades could what quarter minimus in here the a agent is of So, with very, debt a convertible very low big are the but

So we to a aspire that's in. that not be business

fair thank you. enough, Right,

thank placements? Public Yes. No, underwritings? debt you. Private

Okay, want the from share the the there, on price or of count And fair buyback, return neutral, I sort mean I maybe assumption to you net that the Bob, to expectation environment? guess just here given stock reduction holding as is enough. is

I think that's that's expected with caveat the if the share prices. outcome, outcome, again of

which increased flow to investment drive not that's in return future principles, we our first in always our and is of quarter grants, a restate of dilution the ought the with intent offset that been kind count. annual associated to on the to through here just first to Board not out, the [indiscernible] From has principle. for the the the cash bonus So, our share needed buybacks. The which needed growth, in reduced business, dividends consequence be

that mean absent if the I count from comes Yes. price the you stock shrink our the held every stock share would noise year. price, constant

Okay, great. you. Thank

comes Your of Hawken the from Brennan UBS. last with line question

related the thanks from that actually question It's last up. Hey Jim. taking to follow guys, for

as of denominator have a Bob, as have return capital you returns when capital buyback. don’t as the binding seems goes? we any know capital as depend in normal but or return it’s far that in constraints is you is, as generation as could fair what far it a say Obviously, going earnings approach as the to the well it upon to exceeding to though result both the return whatnot, they as earnings dividend totality take So, more prior years,

That’s fair.

much. Thank very you,

like no There appear for closing floor would the at Schlosstein to this to now John to comments. questions further Ralph I turn Weinberg and time. be

us all very you today. joining much Thank for

you our Hallie to If don’t occur all. any investor you, other out have and relations Thank additional reach to Elizabeth. that hesitate questions you team, please to

first Evercore results conference quarter financial call. today’s XXXX concludes This

You may now disconnect.