Evercore Inc 10-Q for FY2023 Q1

Evercore Inc. (EVR)

10-Q 2023-05-05 For: 2023-03-31

Added on April 04, 2026

About this 10-Q

Evercore Inc filed this 10-Q on May 5, 2023, covering the quarter ended March 31, 2023 (FY2023 Q1).

Headline figures

Quarter ended March 31, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $576.31M; down 20.7% from $727.1M a year earlier
Net income: $83.38M; down 47.2% from net income of $158.02M a year earlier
Diluted EPS: $2.06; down 45.6% from $3.79 a year earlier

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Delaware						20-4748747
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)


55 East 52nd Street
New York,	New York	10055


Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Common Stock, par value $0.01 per share	EVR	New York Stock Exchange


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐


		Page
Part I. Financial Information
Item 1.	Financial Statements	3
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	33
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	50
Item 4.	Controls and Procedures	51
Part II. Other Information
Item 1.	Legal Proceedings	52
Item 2.	Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities	52
Item 6.	Exhibits	53
Signatures


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



Condensed Consolidated Financial Statements (Unaudited)			Page
Condensed Consolidated Statements of Financial Condition as of March 31, 202 3 and December 31, 202 2			4
Condensed Consolidated Statements of Operations for the three months ended March 31, 202 3 and 202 2			5
Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 202 3 and 202 2			6
Condensed Consolidated Statements of Changes in Equity for the three months ended March 31, 202 3 and 202 2			7
Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 202 3 and 202 2			8
Notes to Unaudited Condensed Consolidated Financial Statements			9



	March 31, 2023		December 31, 2022
Assets
Current Assets
Cash and Cash Equivalents	$	579,190	$	663,400
Investment Securities and Certificates of Deposit (includes available-for-sale debt securities with an amortized cost of $117,508 and $802,652 at March 31, 2023 and December 31, 2022, respectively)	803,142		1,432,716



Accounts Receivable (net of allowances of $7,217 and $4,683 at March 31, 2023 and December 31, 2022, respectively)	299,157		385,131
Receivable from Employees and Related Parties	20,673		21,914

Other Current Assets	112,775		203,570
Total Current Assets	1,814,937		2,706,731

Investments	43,744		43,047
Deferred Tax Assets	259,830		257,166
Operating Lease Right-of-Use Assets	246,901		237,561
Furniture, Equipment and Leasehold Improvements (net of accumulated depreciation and amortization of $194,413 and $187,077 at March 31, 2023 and December 31, 2022, respectively)	141,905		143,268
Goodwill	124,116		123,285


Other Assets	119,039		109,865
Total Assets	$	2,750,472	$	3,620,923
Liabilities and Equity
Current Liabilities
Accrued Compensation and Benefits	$	196,299	$	918,489
Accounts Payable and Accrued Expenses	28,582		28,807

Payable to Employees and Related Parties	53,349		41,235

Operating Lease Liabilities	34,490		37,968
Taxes Payable	3,625		9,842


Other Current Liabilities	27,058		34,195
Total Current Liabilities	343,403		1,070,536
Operating Lease Liabilities	289,378		278,078
Notes Payable	372,494		371,774

Amounts Due Pursuant to Tax Receivable Agreements	60,814		61,169
Other Long-term Liabilities	115,172		112,948
Total Liabilities	1,181,261		1,894,505
Commitments and Contingencies (Note 15)

Equity
Evercore Inc. Stockholders' Equity
Common Stock
Class A, par value $0.01 per share (1,000,000,000 shares authorized, 81,836,929 and 79,686,375 issued at March 31, 2023 and December 31, 2022, respectively, and 38,345,235 and 38,347,262 outstanding at March 31, 2023 and December 31, 2022, respectively)	818		797
Class B, par value $0.01 per share (1,000,000 shares authorized, 51 and 50 issued and outstanding at March 31, 2023 and December 31, 2022, respectively)	—		—
Additional Paid-In-Capital	2,931,682		2,861,775
Accumulated Other Comprehensive Income (Loss)	(25,683)		(27,942)
Retained Earnings	1,819,599		1,768,098
Treasury Stock at Cost (43,491,694 and 41,339,113 shares at March 31, 2023 and December 31, 2022, respectively)	(3,350,483)		(3,065,917)
Total Evercore Inc. Stockholders' Equity	1,375,933		1,536,811
Noncontrolling Interest	193,278		189,607
Total Equity	1,569,211		1,726,418
Total Liabilities and Equity	$	2,750,472	$	3,620,923


	For the Three Months Ended March 31,
		2023		2022
Revenues
Investment Banking & Equities:
Advisory Fees		$	462,562	$	624,564
Underwriting Fees		22,883		36,306
Commissions and Related Revenue		48,065		50,898
Asset Management and Administration Fees		15,958		17,115
Other Revenue, Including Interest and Investments		26,846		(1,779)
Total Revenues		576,314		727,104
Interest Expense		4,171		4,250
Net Revenues		572,143		722,854
Expenses
Employee Compensation and Benefits		366,872		429,735
Occupancy and Equipment Rental		20,379		19,177
Professional Fees		24,137		24,146
Travel and Related Expenses		15,203		7,826
Communications and Information Services		15,735		16,028
Depreciation and Amortization		6,573		7,110
Execution, Clearing and Custody Fees		2,765		2,797
Special Charges, Including Business Realignment Costs		2,921		—

Other Operating Expenses		10,654		6,671
Total Expenses		465,239		513,490
Income Before Income from Equity Method Investments and Income Taxes		106,904		209,364
Income from Equity Method Investments		1,468		2,512
Income Before Income Taxes		108,372		211,876
Provision for Income Taxes		16,131		34,782





Net Income		92,241		177,094
Net Income Attributable to Noncontrolling Interest		8,863		19,078
Net Income Attributable to Evercore Inc.		$	83,378	$	158,016
Net Income Attributable to Evercore Inc. Common Shareholders		$	83,378	$	158,016




Weighted Average Shares of Class A Common Stock Outstanding
Basic		38,510		39,176
Diluted		40,439		41,708
Net Income Per Share Attributable to Evercore Inc. Common Shareholders:
Basic		$	2.17	$	4.03
Diluted		$	2.06	$	3.79


	For the Three Months Ended March 31, 2023
						Accumulated
				Additional		Other
	Class A Common Stock			Paid-In		Comprehensive		Retained		Treasury Stock			Noncontrolling		Total
	Shares	Dollars		Capital		Income (Loss)		Earnings		Shares	Dollars		Interest		Equity
Balance at December 31, 2022	79,686,375	$	797	$	2,861,775	$	(27,942)	$	1,768,098	(41,339,113)	$	(3,065,917)	$	189,607	$	1,726,418

Net Income	—	—		—		—		83,378		—	—		8,863		92,241
Other Comprehensive Income	—	—		—		2,259		—		—	—		216		2,475
Treasury Stock Purchases	—	—		—		—		—		(2,152,581)	(284,566)		—		(284,566)
Evercore LP Units Exchanged for Class A Common Stock	23,500	—		2,414		—		—		—	—		(1,478)		936
Equity-based Compensation Awards	2,127,054	21		67,493		—		—		—	—		6,460		73,974

Dividends	—	—		—		—		(31,877)		—	—		—		(31,877)
Noncontrolling Interest (Note 12)	—	—		—		—		—		—	—		(10,390)		(10,390)
Balance at March 31, 2023	81,836,929	$	818	$	2,931,682	$	(25,683)	$	1,819,599	(43,491,694)	$	(3,350,483)	$	193,278	$	1,569,211


























































	For the Three Months Ended March 31, 2022
						Accumulated
				Additional		Other
	Class A Common Stock			Paid-In		Comprehensive		Retained		Treasury Stock			Noncontrolling		Total
	Shares	Dollars		Capital		Income (Loss)		Earnings		Shares	Dollars		Interest		Equity
Balance at December 31, 2021	74,804,288	$	748	$	2,458,779	$	(12,086)	$	1,418,382	(36,900,858)	$	(2,545,452)	$	314,910	$	1,635,281

Net Income	—	—		—		—		158,016		—	—		19,078		177,094
Other Comprehensive Income (Loss)	—	—		—		(2,744)		—		—	—		(273)		(3,017)
Treasury Stock Purchases	—	—		—		—		—		(1,991,116)	(255,141)		—		(255,141)
Evercore LP Units Exchanged for Class A Common Stock	2,546,405	26		162,034		—		—		—	—		(157,777)		4,283
Equity-based Compensation Awards	2,109,757	21		60,448		—		—		—	—		6,221		66,690

Dividends	—	—		—		—		(31,633)		—	—		—		(31,633)
Noncontrolling Interest (Note 12)	—	—		(1,361)		—		—		—	—		(4,527)		(5,888)
Balance at March 31, 2022	79,460,450	$	795	$	2,679,900	$	(14,830)	$	1,544,765	(38,891,974)	$	(2,800,593)	$	177,632	$	1,587,669


	For the Three Months Ended March 31, 2023
	Receivables (Current)(1)		Receivables (Long-term)(2)		Contract Assets (Current)(3)		Contract Assets (Long-term)(2)		Deferred Revenue (Current Contract Liabilities)(4)		Deferred Revenue (Long-term Contract Liabilities)(5)
Balance at January 1, 2023	$	385,131	$	64,139	$	110,468	$	8,028	$	5,071	$	—
Increase (Decrease)	(85,974)		6,022		(96,505)		3,869		873		—
Balance at March 31, 2023	$	299,157	$	70,161	$	13,963	$	11,897	$	5,944	$	—

	For the Three Months Ended March 31, 2022
	Receivables (Current)(1)		Receivables (Long-term)(2)		Contract Assets (Current)(3)		Contract Assets (Long-term)(2)		Deferred Revenue (Current Contract Liabilities)(4)		Deferred Revenue (Long-term Contract Liabilities)(5)
Balance at January 1, 2022	$	351,668	$	87,764	$	14,092	$	12,945	$	9,257	$	147
Increase (Decrease)	(37,991)		(12,541)		30,493		(4,411)		1,827		—
Balance at March 31, 2022	$	313,677	$	75,223	$	44,585	$	8,534	$	11,084	$	147


	Amortized Carrying Value by Origination Year
	2023		2022		2021		2020		2019		Total



Long-term Accounts Receivable and Long-Term Contract Assets	$	13,537	$	40,369	$	20,781	$	5,816	$	1,555	$	82,058


	March 31, 2023								December 31, 2022
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt Securities	$	117,508	$	34	$	—	$	117,542	$	802,652	$	4,483	$	—	$	807,135
Equity Securities	558		—		60		498		558		—		223		335
Debt Securities Carried by EGL	494,113		1,437		—		495,550		363,824		1,814		—		365,638
Investment Funds	145,784		521		3,701		142,604		144,343		531		8,156		136,718
Total Investment Securities (carried at fair value)	$	757,963	$	1,992	$	3,761	$	756,194	$	1,311,377	$	6,828	$	8,379	$	1,309,826

Certificates of Deposit (carried at contract value)							46,948								122,890

Total Investment Securities and Certificates of Deposit							$	803,142							$	1,432,716


	March 31, 2023				December 31, 2022
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	116,538	$	116,565	$	800,710	$	805,190
Due after one year through five years	970		977		1,942		1,945


Total	$	117,508	$	117,542	$	802,652	$	807,135


	For the Three Months Ended March 31,
	2023		2022
Cash Flows From Operating Activities
Net Income	$	92,241	$	177,094
Adjustments to Reconcile Net Income to Net Cash Provided by (Used In) Operating Activities:
Net (Gains) Losses on Investments, Investment Securities and Contingent Consideration	(9,509)		4,456
Equity Method Investments, Including Gain on Sale	(890)		(786)
Equity-Based and Other Deferred Compensation	130,242		117,524


Noncash Lease Expense	11,045		10,094
Depreciation, Amortization and Accretion, net	5,287		7,219
Bad Debt Expense	3,734		(519)


Deferred Taxes	(2,514)		(1,942)
Decrease (Increase) in Operating Assets:
Investment Securities	1,676		(21)


Accounts Receivable	83,422		36,230
Receivable from Employees and Related Parties	1,268		1,460

Other Assets	82,271		(14,980)
(Decrease) Increase in Operating Liabilities:
Accrued Compensation and Benefits	(767,197)		(839,975)
Accounts Payable and Accrued Expenses	(1,132)		373

Payables to Employees and Related Parties	4,788		28,261

Taxes Payable	(6,217)		(4,462)
Other Liabilities	(13,252)		(6,246)
Net Cash Provided by (Used in) Operating Activities	(384,737)		(486,220)
Cash Flows From Investing Activities
Investments Purchased	(37)		—
Proceeds from Sale of Investments	—		18,300

Distributions of Private Equity Investments	72		20
Investment Securities:


	For the Three Months Ended March 31,
	2023		2022
Beginning Balance	$	4,683	$	2,704
Bad debt expense, net of reversals	3,734		(519)
Write-offs, foreign currency translation and other adjustments	(1,200)		(131)

Ending Balance	$	7,217	$	2,054



	March 31, 2023		December 31, 2022

ABS	$	20,047	$	19,387
Atalanta Sosnoff	10,876		10,717
Luminis	6,098		6,092
Seneca Evercore	601		706
Total	$	37,622	$	36,902



	March 31, 2023		December 31, 2022


Glisco II, Glisco III and Glisco IV	$	3,764	$	3,602


Trilantic IV and Trilantic V	1,742		1,939

Total Private Equity Funds	$	5,506	$	5,541


2023 (April 1 through December 31)	$	35,013
2024	44,595
2025	45,684
2026	42,049
2027	29,535
Thereafter	216,108
Total lease payments	412,984
Less: Tenant Improvement Allowances	(9,457)
Less: Imputed Interest	(79,659)
Present value of lease liabilities	323,868
Less: Current lease liabilities	(34,490)
Long-term lease liabilities	$	289,378


	March 31, 2023
	Level 1		Level 2		Level 3		Total
Debt Securities Carried by EGL	$	495,550	$	—	$	—	$	495,550
Other Debt and Equity Securities(1)	126,183		—		—		126,183
Investment Funds	142,604		—		—		142,604
Other	—		205		—		205

Total Assets Measured At Fair Value	$	764,337	$	205	$	—	$	764,542

	December 31, 2022
	Level 1		Level 2		Level 3		Total
Debt Securities Carried by EGL	$	365,638	$	—	$	—	$	365,638
Other Debt and Equity Securities(1)	815,409		—		—		815,409
Investment Funds	136,718		—		—		136,718

Total Assets Measured At Fair Value	$	1,317,765	$	—	$	—	$	1,317,765


			March 31, 2023
	Carrying		Estimated Fair Value
	Amount		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and Cash Equivalents	$	571,047	$	571,047	$	—	$	—	$	571,047
Certificates of Deposit	46,948		—		46,948		—		46,948


Receivables(1)	369,318		—		366,969		—		366,969
Contract Assets(2)	25,860		—		24,644		—		24,644
Receivable from Employees and Related Parties	20,673		—		20,673		—		20,673

Closely-held Equity Securities	616		—		—		616		616

Financial Liabilities:
Accounts Payable and Accrued Expenses	$	28,582	$	—	$	28,582	$	—	$	28,582

Payable to Employees and Related Parties	53,349		—		53,349		—		53,349

Notes Payable	372,494		—		355,719		—		355,719


			December 31, 2022
	Carrying		Estimated Fair Value
	Amount		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and Cash Equivalents	$	655,461	$	655,461	$	—	$	—	$	655,461
Certificates of Deposit	122,890		—		122,890		—		122,890


Receivables(1)	449,270		—		447,051		—		447,051
Contract Assets(2)	118,496		—		117,701		—		117,701
Receivable from Employees and Related Parties	21,914		—		21,914		—		21,914

Closely-held Equity Securities	604		—		—		604		604

Financial Liabilities:
Accounts Payable and Accrued Expenses	$	28,807	$	—	$	28,807	$	—	$	28,807

Payable to Employees and Related Parties	41,235		—		41,235		—		41,235
Notes Payable	371,774		—		349,955		—		349,955


				Carrying Value(1)

Note	Maturity Date	Effective Annual Interest Rate		March 31, 2023		December 31, 2022


Evercore Inc. 5.48% Series C Senior Notes	3/30/2026	5.64	%	$	47,788	$	47,772
Evercore Inc. 5.58% Series D Senior Notes	3/30/2028	5.72	%	16,896		16,891
Evercore Inc. 4.34% Series E Senior Notes	8/1/2029	4.46	%	74,493		74,470
Evercore Inc. 4.44% Series F Senior Notes	8/1/2031	4.55	%	59,555		59,545
Evercore Inc. 4.54% Series G Senior Notes	8/1/2033	4.64	%	39,685		39,679
Evercore Inc. 3.33% Series H Senior Notes	8/1/2033	3.42	%	30,593		30,003
Evercore Inc. 1.97% Series I Senior Notes	8/1/2025	2.20	%	37,805		37,785
Evercore Inc. 4.61% Series J Senior Notes	11/15/2028	5.02	%	65,679		65,629
Total				$	372,494	$	371,774


	As of March 31,
	2023		2022

Evercore LP(1)	7	%	6	%
Evercore Wealth Management ("EWM")(2)	25	%	25	%


	March 31,
	2023		2022
Cash and Cash Equivalents	$	579,190	$	454,768
Restricted Cash included in Other Assets	8,935		9,126
Total Cash, Cash Equivalents and Restricted Cash shown in the Statement of Cash Flows	$	588,125	$	463,894



	March 31, 2023		December 31, 2022
Total Assets:
United States	$	2,195,361	$	2,902,153
Europe and Other	555,111		718,770

Total	$	2,750,472	$	3,620,923




	(dollars in millions)
Balance at December 31, 2022	$	10,537
Inflows	213
Outflows	(258)
Market Appreciation	525

Balance at March 31, 2023	$	11,017






























Unconsolidated Affiliates - Balance at March 31, 2023:
Atalanta Sosnoff	$	6,815

ABS	$	6,752



Equities	62	%
Fixed Income	20	%
Liquidity(1)	13	%
Alternatives	5	%
Total	100	%


Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds


2023	Total Number of Shares (or Units) Purchased(1)	Average Price Paid Per Share		Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs(2)	Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs(2)
January 1 to January 31	26,255	$	114.36	23,868	7,583,754
February 1 to February 28	2,065,342	132.48		1,155,185	6,428,569
March 1 to March 31	60,984	130.37		58,331	6,370,238
Total January 1 to March 31	2,152,581	$	132.20	1,237,384	6,370,238



Exhibit Number						Description









































































































31.1						Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) (filed herewith)

31.2						Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) (filed herewith)

32.1						Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

32.2						Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

101.INS						The following materials from the Registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, are formatted in Inline XBRL: (i) Condensed Consolidated Statements of Financial Condition as of March 31, 2023 and December 31, 2022, (ii) Condensed Consolidated Statements of Operations for the three months ended March 31, 2023 and 2022, (iii) Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2023 and 2022, (iv) Condensed Consolidated Statements of Changes in Equity for the three months ended March 31, 2023 and 2022, (v) Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2023 and 2022, and (vi) Notes to Condensed Consolidated Financial Statements, tagged as blocks of text including detailed tags

101.SCH						Inline XBRL Taxonomy Extension Schema

101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase

101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase

101.LAB						Inline XBRL Taxonomy Extension Label Linkbase

101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase

104						Cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 is formatted in Inline XBRL (and contained in Exhibit 101)


			Evercore Inc.

			By:			/s/ JOHN S. WEINBERG
			Name:			John S. Weinberg
			Title:			Chief Executive Officer and Chairman

			By:			/s/ TIM LALONDE
			Name:			Tim LaLonde
			Title:			Chief Financial Officer


			/ s / JOHN S. WEINBERG
			John S. Weinberg Chief Executive Officer and Chairman


*			The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.