Ralph Schlosstein, president and chief executive officer

Evercore Partners reports record Q4 and full year 2012 results

Evercore Partners’ adjusted pro forma net revenues were a record USD638.9m for the 12 months ended 31 December 2012, compared to USD520.4m for the 12 months ended 31 December 2011.

Adjusted pro forma net revenues were USD212.0m for the quarter ended 31 December 2012, compared with USD111.6m and USD149.2m for the quarters ended 31 December 2011 and 30 September 2012, respectively.

Adjusted pro forma net income from continuing operations attributable to Evercore Partners was USD78.1m, or USD1.78 per share, for the 12 months ended 31 December 2012, compared to USD63.1m, or USD1.48 per share, for the 12 months ended 31 December 2011. Adjusted pro forma net income from continuing operations attributable to Evercore Partners was USD35.3m, or USD0.81 per share, for the fourth quarter, compared to USD14.1m, or USD0.32 per share, a year ago and USD17.3m, or USD0.40 per share, last quarter.

US GAAP net revenues were USD642.4m for the 12 months ended 31 December 2012, compared to USD524.3m for the 12 months ended 31 December 2011. US GAAP net revenues were USD214.0m for the quarter ended 31 December 2012, compared to USD112.8m and USD153.0m for the quarters ended 31 December 2011 and 30 September 2012, respectively.

US GAAP net income from continuing operations attributable to Evercore Partners was USD28.9m, or USD0.89 per share, for the 12 months ended 31 December 2012, compared to USD7.9m, or USD0.27 per share, for the same period last year. US GAAP net income from continuing operations attributable to Evercore Partners was USD19m, or USD0.56 per share, for the fourth quarter, compared to USD3,000 a year ago and USD5.3m, or USD0.17 per share, last quarter.

The adjusted pro forma compensation ratio for the year was 59.7 per cent, compared to 59.2 per cent in 2011 and 59.5 per cent for the trailing 12 months ended 30 September 2012. The adjusted pro forma compensation ratio for the current quarter was 58.0 per cent, compared to 55.6 per cent and 59.9 per cent for the quarters ended 31 December 2011 and 30 September 2012, respectively. The US GAAP trailing 12-month compensation ratio of 67.0 per cent compares to 68.2 per cent for the 12 months ended 31 December 2011 and 68.6 per cent for the 12 months ended 30 September 2012. The US GAAP compensation ratio for the three months ended 31 December 2012, 31 December 2011 and 30 September 2012 was 62.6 per cent, 66.4 per cent and 66.2 per cent, respectively.

“The fourth quarter was a record for Evercore in every respect and 2012 was another record year, our fourth consecutive year of significantly increased net revenues and earnings. Our success has been driven first and foremost by continued market share gains in our investment banking businesses, particularly our advisory business,” says Ralph Schlosstein (pictured), president and chief executive officer.

“Our record results, both for the quarter and the year, demonstrate the strength of our independent investment banking advisory model, and the receptivity of business leaders and boards of directors to our approach. Our wealth management business continued its strategy of organic and inorganic growth ending the year with USD4.5bn of AUM, while our institutional asset management affiliates continued to improve investment performance. I am most proud of the fact that we achieved these results while continuing to make meaningful investments in our business. We recruited six senior managing directors to our advisory business and promoted three internally, and continued to invest in our institutional equities and private funds businesses. Notwithstanding these investments, we maintained our focus on our shareholders, returning USD96.5m through dividends and share repurchases, more than offsetting the effect of equity awards to employees, and we were able to improve our operating margins and keep the compensation ratio almost flat, despite these investments and higher cash payouts in bonuses this year.”
 

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