Latest Earnings Release: Q2 2023 Earnings Press Release

E V E R C O R E

EVERCORE REPORTS SECOND QUARTER 2023 RESULTS;

QUARTERLY DIVIDEND OF $0.76 PER SHARE

						Second Quarter Results						Year to Date Results
					U.S. GAAP		Adjusted		U.S. GAAP		Adjusted
				Q2 2023	Q2 2022	Q2 2023	Q2 2022	YTD 2023	YTD 2022	YTD 2023	YTD 2022
Net Revenues ($ mm)		$ 499.4	$	630.9	$	505.1	$	637.4	$	1,071.6	$	1,353.8	$	1,082.9	$	1,365.8
Operating Income ($ mm)	$	57.7	$	146.2	$	63.4	$	153.2	$	164.6	$	355.5	$	178.9	$	368.1
Net Income Attributable to	$	37.2	$	95.6	$	40.4	$	107.8	$	120.6	$	253.6	$	133.6	$	281.1
Evercore Inc. ($ mm)
Diluted Earnings Per Share	$	0.95	$	2.33	$	0.96	$	2.46	$	3.02	$	6.13	$	3.13	$	6.29
Compensation Ratio				67.8 %		61.7 %		67.0 %		61.0 %		65.8 %		60.5 %		65.1 %		59.9 %
Operating Margin				11.6 %		23.2 %		12.6 %		24.0 %		15.4 %		26.3 %		16.5 %		27.0 %
Effective Tax Rate				28.9 %		26.0 %		29.6 %		27.0 %		19.8 %		20.4 %		20.2 %		21.2 %
		g	Second Quarter and First Half Net Revenues were $499.4 million and $1.1 billion, respectively, on a
			U.S. GAAP basis and $505.1 million and $1.1 billion, respectively, on an Adjusted basis. First Half
			2023 Net Revenues decreased 21% on both a U.S. GAAP and an Adjusted basis versus 2022
		g	Evercore participated in two of the top three largest follow-on offerings in the quarter, including lead-
Business and		left bookrunner on GE Healthcare Technologies, Inc.'s $2.2 billion follow-on offering and active
Financial		bookrunner on Mobileye Global Inc.'s $1.6 billion follow-on offering, a testament to the strength of
Highlights		our ECM franchise
		g	Evercore advised Chevron on its $7.6 billion acquisition of PDC Energy and Arconic on its $5.2
			billion sale to Apollo
		g	Our Private Capital Advisory and Fundraising business remained active among continuation funds, in
			which Evercore is the market leader
		g	Year-to-date, 11 Advisory Senior Managing Directors have joined or committed to join Evercore,
			seven since our prior earnings announcement
		g	One Advisory Senior Managing Director joined Evercore in June; Giuseppe Monarchi, in our
Talent		European Telecommunications group
g	In the second quarter, an additional six Advisory Senior Managing Directors committed to join our
			Firm, strengthening our coverage in European Telecommunications, Technology, Sponsors,
			Industrials, Business Services and Real Estate
		g	One Equities Senior Managing Director joined Evercore ISI in June; Michael Binetti, covering
			Department Stores and Specialty Retail
		g	Quarterly dividend of $0.76 per share
Capital Return	g	Returned $418.7 million to shareholders during the first six months of 2023 through dividends and
			repurchases of 2.7 million shares at an average price of $128.01

NEW YORK, July 26, 2023 - Evercore Inc. (NYSE: EVR) today announced its results for the second quarter ended June 30, 2023.

LEADERSHIP COMMENTARY

John S. Weinberg, Chairman and Chief Executive Officer, "We continue to focus on serving our clients. It has been an extraordinary time to recruit exceptional talent and we are proud of our hiring success so far this year, positioning the Firm for when the market recovers."

Roger C. Altman, Founder and Senior Chairman, "This year, taking advantage of our momentum, Evercore has done more external hiring at the Senior Managing Director level than at any time in the Firm's history. Together with the extraordinary talent we already had, this means that our productive capacity going forward will be considerably higher than ever before."

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Evercore's quarterly results may fluctuate significantly due to the timing and amount of transaction fees earned, as well as other factors. Accordingly, financial results in any particular quarter may not be representative of future results over a longer period of time.

Business Segments:

Evercore's business results are categorized into two segments: Investment Banking & Equities and Investment Management. Investment Banking & Equities includes providing advice to clients on mergers, acquisitions, divestitures and other strategic corporate transactions, as well as services related to securities underwriting, private placement services and commissions for agency-based equity trading services and equity research. Investment Management includes Wealth Management and interests in private equity funds which are not managed by the Company, as well as advising third-party investors through affiliates. See pages A-2 to A-7 for further information and reconciliations of these segment results to our U.S. GAAP consolidated results.

Non-GAAP Measures:

Throughout this release certain information is presented on an adjusted basis, which is a non-GAAP measure. Adjusted results begin with information prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), and then those results are adjusted to exclude certain items and reflect the conversion of certain Evercore LP Units into Class A shares. Evercore believes that the disclosed adjusted measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare Evercore's results across several periods and facilitate an understanding of Evercore's operating results. Evercore uses these measures to evaluate its operating performance, as well as the performance of individual employees. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP.

Special Charges, Including Business Realignment Costs, have been excluded from Adjusted Net Income Attributable to Evercore Inc. These charges in 2023 relate to the write-off of non-recoverable assets in connection with the wind-down of the Company's operations in Mexico.

Evercore's Adjusted Diluted Shares Outstanding for the three and six months ended June 30, 2023 were higher than U.S. GAAP as a result of the inclusion of certain Evercore LP Units and Unvested Restricted Stock Units.

Further details of these adjustments, as well as an explanation of similar amounts for the three and six months ended June 30, 2022 are included in pages A-2 to A-7.

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Selected Financial Data - U.S. GAAP Results

The following is a discussion of Evercore's consolidated results on a U.S. GAAP basis. See pages A-4 to A-6 for our business segment results.

Net Revenues

							U.S. GAAP
		Three Months Ended				Six Months Ended
	June 30, 2023		June 30, 2022	%		June 30, 2023		June 30, 2022	%
		Change				Change
							(dollars in		thousands)
Investment Banking & Equities:
Advisory Fees	$	374,556	$	576,245		(35%)	$	837,118	$	1,200,809	(30%)
Underwriting Fees		38,200			13,516		183%			61,083			49,822	23%
Commissions and Related Revenue		50,048			52,485		(5%)			98,113			103,383	(5%)
Investment Management:
Asset Management and Administration Fees		16,575			15,968		4%			32,533			33,083	(2%)
Other Revenue, net		20,040			(27,297)		NM			42,715			(33,326)		NM
Net Revenues	$	499,419		$	630,917		(21%)		$	1,071,562		$	1,353,771	(21%)
		Three Months Ended				Six Months Ended
	June 30, 2023		June 30, 2022		%		June 30, 2023		June 30, 2022	%
		Change				Change
Total Number of Fees from Advisory and		236			217		9%			360			354	2%
Underwriting Client Transactions(1)
Total Number of Fees of at Least $1 million
from Advisory and Underwriting Client		77			100		(23%)			155			186	(17%)
Transactions(1)
Total Number of Underwriting Transactions(1)		15			7		114%			29			21	38%
Total Number of Underwriting Transactions as		14			5		180%			26			18	44%
a Bookrunner(1)

1. Includes Equity and Debt Underwriting Transactions.

					As of June 30,
		2023			2022	%
					Change
Assets Under Management ($ mm)(1)	$	11,488	$	10,462	10%

1. Assets Under Management reflect end of period amounts from our consolidated Wealth Management business.

Advisory Fees - Second quarter Advisory Fees decreased $201.7 million, or 35%, year-over-year, and year-to-date Advisory Fees decreased $363.7 million, or 30%, year-over-year, primarily reflecting a decline in revenue earned from large transactions during 2023.

Underwriting Fees - Second quarter Underwriting Fees increased $24.7 million, or 183%, year-over-year, and year-to-date Underwriting Fees increased $11.3 million, or 23%, year-over-year, reflecting an increase in the number of transactions we participated in due to the increase in overall market issuances.

Commissions and Related Revenue - Second quarter Commissions and Related Revenue decreased $2.4 million, or 5%, year-over-year, and year-to-date Commissions and Related Revenue decreased $5.3 million, or 5%, year-over-year, primarily reflecting lower trading revenues.

Asset Management and Administration Fees - Second quarter Asset Management and Administration Fees increased $0.6 million, or 4%, year-over-year, driven by an increase in fees from Wealth Management clients, as associated AUM increased 10%, primarily from market appreciation. Year-to-date

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Asset Management and Administration Fees decreased $0.6 million, or 2%, year-over-year, driven by a decrease in fees from Wealth Management clients.

Other Revenue - Second quarter Other Revenue, net, increased $47.3 million year-over-year, primarily reflecting a shift from losses of $26.4 million in the second quarter of 2022 to gains of $12.2 million in the second quarter of 2023 on our investment funds portfolio due to overall market appreciation, as well as higher returns on our fixed income investment portfolios, which primarily consist of U.S. treasury bills. Year-to-date Other Revenue, net, increased $76.0 million year-over-year, primarily reflecting a shift from losses of $31.5 million in 2022 to gains of $22.3 million in 2023 on our investment funds portfolio due to overall market appreciation, as well as higher returns on our fixed income investment portfolios, which primarily consist of U.S. treasury bills. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Expenses

							U.S. GAAP
		Three Months Ended				Six Months Ended
	June 30, 2023		June 30, 2022	%		June 30, 2023		June 30, 2022	%
		Change				Change
							(dollars in		thousands)
Employee Compensation and Benefits	$	338,374	$	388,971		(13%)	$	705,246	$	818,706	(14%)
Compensation Ratio		67.8 %			61.7 %					65.8 %			60.5 %
Non-Compensation Costs	$	103,329	$	95,232		9%	$	198,775	$	178,987	11%
Non-Compensation Ratio		20.7 %			15.1 %					18.6 %			13.2 %
Special Charges, Including Business	$	-	$	532		NM	$	2,921	$	532	449%
Realignment Costs

Employee Compensation and Benefits - Second quarter Employee Compensation and Benefits decreased $50.6 million, or 13%, year-over-year, reflecting a compensation ratio of 67.8% for the second quarter of 2023 versus 61.7% for the prior year period. The Compensation Ratio was impacted by lower net revenues, as described above, during the current year period compared to the prior year period. The decrease in Employee Compensation and Benefits compared to the prior year period principally reflects a lower accrual for incentive compensation, partially offset by higher amortization of prior period deferred compensation awards and higher base salaries. Year-to-date Employee Compensation and Benefits decreased $113.5 million, or 14%, year-over-year, reflecting a year-to-date compensation ratio of 65.8% versus 60.5% for the prior year period. The Compensation Ratio was impacted by lower net revenues, as described above, during the current year period compared to the prior year period. The decrease in Employee Compensation and Benefits compared to the prior year period principally reflects a lower accrual for incentive compensation, partially offset by higher amortization of prior period deferred compensation awards and higher base salaries. See "Deferred Compensation" for more information.

Non-CompensationCosts - Second quarter Non-Compensation Costs increased $8.1 million, or 9%, year- over-year, primarily driven by an increase in communications and information services, reflecting higher license fees and research expenses, as well as an increase in travel and related expenses and charitable contributions made to the Evercore Foundation in the second quarter of 2023. The second quarter Non- Compensation ratio of 20.7% increased from 15.1% for the prior year period. Year-to-date Non- Compensation Costs increased $19.8 million, or 11%, year-over-year, primarily driven by increases in travel and related expenses and bad debt expense, as well as charitable contributions made to the Evercore Foundation in 2023. The year-to-dateNon-Compensation ratio of 18.6% increased from 13.2% for the prior year period. The Non-Compensation Ratio was also impacted by lower net revenues, as described above, during the current year period compared to the prior year period.

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