Price Graph
Price
Yield
These terms and conditions govern your use of the website alphaminr.com and its related services.
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2018
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO .
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Delaware
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20-4748747
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(State or Other Jurisdiction of
Incorporation or Organization)
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(I.R.S. Employer
Identification No.)
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55 East 52nd Street, New York, New York
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10055
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(Address of Principal Executive Offices)
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(Zip Code)
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Title of each class
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Name of each exchange on which registered
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Class A Common Stock, $0.01 par value
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New York Stock Exchange
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Large accelerated filer
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ý
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Accelerated filer
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o
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Non-accelerated filer
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o
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Smaller reporting company
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o
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Emerging growth company
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o
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Page
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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Item 15.
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Item 16.
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Item 1.
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Business
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•
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Investment Banking; and
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•
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Investment Management.
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•
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Mergers and Acquisitions
. In advising companies on an acquisition, merger or sale, we evaluate potential targets, provide valuation analyses, and evaluate and propose financial and strategic alternatives. We provide boards and management teams with independent judgment and deep expertise as they navigate their most important transactions and strategic decisions. We also advise as to the timing, structure, financing and pricing of a proposed transaction, as well as assist in negotiating and closing the deal.
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•
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Strategic Shareholder Advisory
. Our extensive experience, insights into activist tactics, expertise in helping companies with shareholder communications and innovative defense strategies are instrumental in helping clients prepare for, avoid, and, if required, defend against activist investors and hostile takeover attempts. In public company situations, Evercore’s strategic shareholder advice is an integral part of our practice and is a decisive edge for clients seeking to obtain shareholder support for their transactions.
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•
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Special Committee Assignments
. Evercore has a leading special committee practice which is driven by, and exemplifies, our overall commitment to independence, discretion, objectivity, and the delivery of unconflicted advice. Our team has a long history of providing impartial advice to special committees and assisting them to meet fiduciary duties and obligations in significant situations.
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•
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Transaction Structuring.
Evercore provides integrated advice in connection with the structuring of public and private transactions - including mergers, spin-offs, sales, joint ventures, and capital markets offerings - intended to optimize tax, accounting, and other objectives of the deal.
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•
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Equity Capital Markets
. Evercore provides equity and equity-linked capital markets advice and execution designed to complement our firm's formidable corporate advisory platform. Our team provides its clients with independent advice, experienced judgment, and key insights on all aspects of capital formation and capital markets transactions. Our ECM team has the flexibility to engage with our corporate clients as an underwriter or an independent advisor.
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•
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Debt Advisory
. Evercore provides independent advice to corporate clients on all debt capital markets products globally and, in conjunction with our Market Risk Management and Hedging team, on associated market related risks and hedging.
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•
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Private Placement Advisory
. Evercore structures and executes private market transactions for public and private corporate clients who require direct private equity, credit or hybrid financing solutions.
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•
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Market Risk Management and Hedging
. Evercore advises clients on all aspects of market-related risks arising from foreign exchange, interest rates, inflation and commodity prices in connection with cross-border M&A and financing transactions.
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•
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Private Capital Advisory
. Evercore advises managers of private assets – private equity, private debt, real estate, infrastructure and others – seeking to recapitalize or liquidate their assets through a privately negotiated transaction (e.g. fund sales, asset refinancing and fund recapitalizations). In addition, Evercore provides advisory services focused on primary and secondary transactions for real estate oriented financial sponsors and private equity interests.
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•
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Private Funds
. Evercore provides comprehensive global advisory services on capital raising for select private fund sponsors, including private equity, infrastructure and real estate, advising and executing on all aspects of the fundraising process, including competitive positioning and market assessment, preparation of marketing materials, investor development and documentation.
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•
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Restructuring.
Evercore provides independent financial restructuring advice to companies, creditors, shareholders, and other stakeholders, both in-and out-of-court. We specialize in providing critical and unbiased advice to clients on complex balance sheet issues and transformational situations.
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•
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Research
. Evercore ISI has some of the best analysts in sell-side research and was recognized as the top ranked independent firm by Institutional Investor in 2018. We also ranked #2 on a weighted basis and #4 in overall positions.
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•
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Sales
. Our sales team offers research-driven equity products to more than 1,300 institutional clients in the U.S. and abroad. Our dedicated specialists provide access to our macro and fundamental research products and provide tailored solutions through conferences, roadshows and one-on-one meetings.
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•
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Trading
. Evercore ISI’s trading professionals engage primarily in agency-only transactions, free of the potential conflicts of interest created by proprietary trading. Our team provides seamless execution, placing our clients’ interests first and executing transactions with efficiency, objectivity and discretion.
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•
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Corporate Access
. Our corporate access team provides strategic and customized analyses to determine targeted investors and regional strengths. We provide planning and execution of non-deal roadshows, field trips, sector and macro conferences.
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•
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Evercore Wealth and Trust.
Evercore's U.S.-based Evercore Wealth Management serves high-net-worth individuals, foundations and endowments. Clients at EWM and our affiliated trust company, Evercore Trust Company, N.A. ("ETC"), work directly with dedicated teams of independent thinkers to manage complex wealth and focus on delivering tangible results. In 2018, Evercore Trust Company of Delaware ("ETCDE") was merged with and into ETC. As of
December 31, 2018
, EWM had
$7.6 billion
of assets under management ("AUM").
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•
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Evercore Casa de Bolsa.
Evercore Casa de Bolsa is a Mexico-based asset management firm that provides specialized advice and portfolio management services focused on international, peso-denominated money market, fixed income and equity securities for institutional investors and high-net-worth individuals. ECB also focuses on raising capital in national and international markets for companies and entities with high growth potential. As of
December 31, 2018
, ECB had
$1.6 billion
of AUM.
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•
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Investments in Affiliates.
We also hold interests in ABS Investment Management Holdings LP and ABS Investment Management GP LLC (collectively, "ABS") and Atalanta Sosnoff Capital, LLC ("Atalanta Sosnoff") that are accounted for under the equity method of accounting. ABS is an institutionally focused hedge fund-of-funds manager and Atalanta Sosnoff manages large-capitalization U.S. equity and balanced products.
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•
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P
rivate Equity.
Private equity includes our interests in entities that manage private equity funds.
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–
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Glisco.
We maintain a limited partner's interest in the value-oriented, middle-market private equity funds in Mexico, Glisco Partners II, L.P. ("Glisco II"), Glisco Partners III, L.P. ("Glisco III") and Glisco Capital Partners IV, L.P. ("Glisco IV" and, together with Glisco II and Glisco III, the "Glisco Funds"), as well as Glisco Manager Holdings LP and the general partners of the Glisco Funds. We receive our portion of the management fees earned by Glisco Partners Inc. ("Glisco") from Glisco Manager Holdings LP. We are passive investors and do not participate in the management of any Glisco sponsored funds.
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–
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Trilantic.
While we do not intend to raise any Evercore-sponsored funds, we maintain a strategic alliance to pursue private equity investment opportunities with Trilantic Capital Partners ("Trilantic"). In connection with the issuance of certain limited partnership interests in Trilantic, we became a limited partner of Trilantic and are entitled to receive 10% of the aggregate amount of carried interest in respect to all of the portfolio investments made by Trilantic Capital Partners Associates IV, L.P. ("Trilantic IV"), up to $15.0 million. As part of the strategic alliance, we committed $5.0 million of the total capital commitments of Trilantic Capital Partners V L.P. ("Trilantic V") and $12.0 million of the total capital commitments of Trilantic Capital Partners VI (North America) L.P. ("Trilantic VI"). We and our affiliates are passive investors and do not participate in the management of any Trilantic sponsored funds. We previously raised and managed Evercore-sponsored funds, but do not currently have specific plans to continue to do so.
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•
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The Investment Management segment also includes the results of the following businesses that were deconsolidated prior to December 31, 2018:
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–
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On October 18, 2017, we sold the Institutional Trust and Independent Fiduciary business of ETC. Following the sale, the remaining operations of ETC were combined within the EWM operating segment.
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–
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On September 30, 2016, we entered into an agreement to transfer ownership of the Mexican Private Equity business and related entities to Glisco.
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•
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Add Highly Qualified Investment Banking Professionals
. We hired ten new Senior Managing Directors in 2018, expanding our capabilities in the U.S. and Europe and increasing our presence in Industrials and Consumer/Retail, as well as launching our real estate capital advisory team and expanding our equity research capabilities. We intend to continue to recruit and promote high-caliber strategic corporate, strategic and capital markets advisory, as well as equity research, professionals to add depth in industry sectors and products and services in areas that we believe we already have strength, and to extend our reach to sectors or new business lines and geographies that we have identified as particularly attractive. On occasion, these additions result from the acquisition of boutique independent advisory firms with leading professionals in a market or sector. Of equal importance, following our long-term strategy of developing internal talent, we also promoted six internal candidates to Senior Managing Director in our Advisory business in 2018 and intend to continue to promote our most talented professionals in the future.
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•
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Achieve Organic Growth and Improved Profitability in Investment Management
. We are focused on managing our current Investment Management business towards growth and improved profitability. We also continue to selectively evaluate opportunities to expand Wealth Management.
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Item 1A.
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Risk Factors
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•
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the availability of suitable opportunities and capital resources to effect our strategy;
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•
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the level of competition from other companies that may have greater financial resources than we do or may not require the same level of disclosure of these activities;
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•
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our ability to value acquisition and investment candidates accurately and negotiate acceptable terms for those acquisitions and investments; and
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•
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our ability to identify and enter into mutually beneficial relationships with joint venture partners.
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•
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loss of key employees or customers;
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•
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possible inconsistencies in or conflicts between standards, controls, procedures and policies and the need to implement company-wide financial, accounting, information technology and other systems;
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•
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failure to maintain the quality of services that have historically been provided;
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•
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failure to coordinate geographically diverse organizations;
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•
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disagreements between us and our partners;
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•
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compliance with regulatory requirements in regions in which new businesses and ventures are located; and
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•
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the diversion of management's attention from our day-to-day business as a result of the need to manage any disruptions and difficulties and the need to add management resources to do so.
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•
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greater difficulties managing and staffing foreign operations;
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•
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language and cultural differences;
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•
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fluctuations in foreign currency exchange rates that could adversely affect our results;
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•
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unexpected and costly changes in trading policies, regulatory requirements, tariffs and other barriers;
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•
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restrictions on travel;
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•
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greater difficulties in collecting accounts receivable;
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•
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longer transaction cycles;
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•
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higher operating costs;
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•
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local labor conditions and regulations;
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•
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adverse consequences or restrictions on the repatriation of earnings;
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•
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potentially adverse tax consequences, such as trapped foreign losses;
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•
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less stable political and economic environments;
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•
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civil disturbances or other catastrophic events that reduce business activity;
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•
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international trade issues; and
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•
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a U.K. exit from the EU.
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•
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economic and business conditions;
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•
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our financial condition and operating results;
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•
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our available cash and current and anticipated cash needs;
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•
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our capital requirements;
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•
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applicable contractual, legal, tax and regulatory restrictions;
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•
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implications of the payment of dividends by us to our stockholders or by our subsidiaries (including Evercore LP) to us; and
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•
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such other factors as our board of directors may deem relevant.
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Item 1B.
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Unresolved Staff Comments
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Item 2.
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Properties
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Item 3.
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Legal Proceedings
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Item 4.
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Mine Safety Disclosures
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Item 5.
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Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities
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2018
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Total Number of
Shares (or Units) Purchased(1) |
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Average Price
Paid Per Share |
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Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs(2)
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Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs(2)
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|||||
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January 1 to January 31
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4,125
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$
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91.33
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—
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8,500,000
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February 1 to February 28
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1,089,499
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99.33
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132,602
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8,367,398
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March 1 to March 31
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328,027
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93.40
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265,378
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|
8,102,020
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Total January 1 to March 31
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1,421,651
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$
|
97.94
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|
|
397,980
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|
8,102,020
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|||||
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April 1 to April 30
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227,347
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$
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87.98
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227,347
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7,874,673
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May 1 to May 31
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2,853
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|
101.08
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—
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7,874,673
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June 1 to June 30
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9,391
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|
105.93
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|
—
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|
|
7,874,673
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Total April 1 to June 30
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239,591
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$
|
88.84
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227,347
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7,874,673
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|||||
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July 1 to July 31
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4,729
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$
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107.16
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—
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7,874,673
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August 1 to August 31
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186,848
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109.60
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172,830
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7,701,843
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September 1 to September 30
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55,670
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106.00
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50,000
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7,651,843
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Total July 1 to September 30
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247,247
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$
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108.74
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222,830
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7,651,843
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|||||
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October 1 to October 31
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746,473
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$
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87.16
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738,644
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6,913,199
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November 1 to November 30
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449,027
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82.36
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433,781
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6,479,418
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December 1 to December 31
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1,699
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82.26
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—
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|
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6,479,418
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Total October 1 to December 31
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1,197,199
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$
|
85.35
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|
1,172,425
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6,479,418
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|||||
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Total January 1 to December 31
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|
3,105,688
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$
|
93.24
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|
2,020,582
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|
6,479,418
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(1)
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Includes the repurchase of 1,023,671, 12,244, 24,417 and 24,774 shares in treasury transactions arising from net settlement of equity awards to satisfy minimum tax obligations during the three months ended March 31, 2018, June 30, 2018, September 30, 2018 and December 31, 2018, respectively.
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(2)
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In October 2017, our Board of Directors authorized (in addition to the net settlement of equity awards) the repurchase of Class A Shares and/or LP Units so that from that date forward, Evercore is able to repurchase an aggregate of the lesser of $750.0 million worth of Class A Shares and/or LP Units and 8.5 million Class A Shares and/or LP Units. Under this share repurchase program, shares may be repurchased from time to time in open market transactions, in privately-negotiated transactions or otherwise. The timing and the actual amount of shares repurchased will depend on a variety of factors, including legal requirements, price and economic and market conditions. This program may be suspended or discontinued at any time and does not have a specified expiration date.
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Item 6.
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Selected Financial Data
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2018
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2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
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(dollars in thousands, except per share data)
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STATEMENT OF OPERATIONS DATA
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||||||||||
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Revenues
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||||||||||
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Investment Banking:
(1)
|
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||||||||||
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Advisory Fees
|
$
|
1,743,473
|
|
|
$
|
1,324,412
|
|
|
$
|
1,096,829
|
|
|
$
|
865,494
|
|
|
$
|
727,678
|
|
|
Underwriting Fees
|
71,691
|
|
|
45,827
|
|
|
36,264
|
|
|
40,137
|
|
|
28,101
|
|
|||||
|
Commissions and Related Fees
|
200,015
|
|
|
205,630
|
|
|
230,913
|
|
|
228,834
|
|
|
65,632
|
|
|||||
|
Asset Management and Administration Fees
(1)
|
48,246
|
|
|
59,648
|
|
|
63,404
|
|
|
85,121
|
|
|
82,029
|
|
|||||
|
Other Revenue, Including Interest and Investments
(1)
|
19,051
|
|
|
88,828
|
|
|
29,380
|
|
|
20,662
|
|
|
27,962
|
|
|||||
|
Total Revenues
|
2,082,476
|
|
|
1,724,345
|
|
|
1,456,790
|
|
|
1,240,248
|
|
|
931,402
|
|
|||||
|
Interest Expense
|
17,771
|
|
|
19,996
|
|
|
16,738
|
|
|
16,975
|
|
|
15,544
|
|
|||||
|
Net Revenues
|
2,064,705
|
|
|
1,704,349
|
|
|
1,440,052
|
|
|
1,223,273
|
|
|
915,858
|
|
|||||
|
Expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Operating Expenses
|
1,492,241
|
|
|
1,227,573
|
|
|
1,077,706
|
|
|
946,532
|
|
|
719,474
|
|
|||||
|
Other Expenses
|
30,387
|
|
|
47,965
|
|
|
101,172
|
|
|
148,071
|
|
|
25,437
|
|
|||||
|
Total Expenses
|
1,522,628
|
|
|
1,275,538
|
|
|
1,178,878
|
|
|
1,094,603
|
|
|
744,911
|
|
|||||
|
Income before Income from Equity Method Investments and Income Taxes
|
542,077
|
|
|
428,811
|
|
|
261,174
|
|
|
128,670
|
|
|
170,947
|
|
|||||
|
Income from Equity Method Investments
|
9,294
|
|
|
8,838
|
|
|
6,641
|
|
|
6,050
|
|
|
5,180
|
|
|||||
|
Income before Income Taxes
|
551,371
|
|
|
437,649
|
|
|
267,815
|
|
|
134,720
|
|
|
176,127
|
|
|||||
|
Provision for Income Taxes
|
108,520
|
|
|
258,442
|
|
|
119,303
|
|
|
77,030
|
|
|
68,756
|
|
|||||
|
Net Income
|
442,851
|
|
|
179,207
|
|
|
148,512
|
|
|
57,690
|
|
|
107,371
|
|
|||||
|
Net Income Attributable to Noncontrolling Interest
|
65,611
|
|
|
53,753
|
|
|
40,984
|
|
|
14,827
|
|
|
20,497
|
|
|||||
|
Net Income Attributable to Evercore Inc.
|
$
|
377,240
|
|
|
$
|
125,454
|
|
|
$
|
107,528
|
|
|
$
|
42,863
|
|
|
$
|
86,874
|
|
|
Dividends Declared per Share
|
$
|
1.90
|
|
|
$
|
1.42
|
|
|
$
|
1.27
|
|
|
$
|
1.15
|
|
|
$
|
1.03
|
|
|
Diluted Net Income Per Share Attributable to Evercore Inc. Common Shareholders
|
$
|
8.33
|
|
|
$
|
2.80
|
|
|
$
|
2.43
|
|
|
$
|
0.98
|
|
|
$
|
2.08
|
|
|
STATEMENT OF FINANCIAL CONDITION DATA
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total Assets
|
$
|
2,125,667
|
|
|
$
|
1,584,886
|
|
|
$
|
1,662,346
|
|
|
$
|
1,479,171
|
|
|
$
|
1,446,556
|
|
|
Long-term Liabilities
|
$
|
368,037
|
|
|
$
|
324,466
|
|
|
$
|
415,594
|
|
|
$
|
363,906
|
|
|
$
|
345,229
|
|
|
Total Long-term Debt
|
$
|
168,612
|
|
|
$
|
175,146
|
|
|
$
|
184,647
|
|
|
$
|
141,800
|
|
|
$
|
127,776
|
|
|
Total Liabilities
|
$
|
1,117,728
|
|
|
$
|
788,518
|
|
|
$
|
879,015
|
|
|
$
|
771,955
|
|
|
$
|
730,309
|
|
|
Noncontrolling Interest
|
$
|
249,819
|
|
|
$
|
252,404
|
|
|
$
|
256,033
|
|
|
$
|
202,664
|
|
|
$
|
164,966
|
|
|
Total Equity
|
$
|
1,007,939
|
|
|
$
|
796,368
|
|
|
$
|
783,331
|
|
|
$
|
707,216
|
|
|
$
|
712,233
|
|
|
(1)
|
Certain balances in prior periods were reclassified to conform to their current presentation. See Note 2 for further information.
|
|
Item 7.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
|
•
|
Amortization of LP Units/Interests and Certain Other Awards
- Includes amortization costs or the reversal of expenses associated with the vesting of Class E LP Units, Class G and H limited partnership interests of Evercore LP ("Class G and H LP Interests") and Class J LP Units issued in conjunction with the acquisition of ISI and certain other related awards.
|
|
•
|
Special Charges
- Includes expenses in 2018 related to separation benefits and costs for the termination of certain contracts associated with closing our agency trading platform in the U.K. and separation benefits and related charges associated with our businesses in Mexico, as well as the acceleration of depreciation expense for leasehold improvements in conjunction with the expansion of our headquarters in New York. Expenses in 2017 related to the impairment of goodwill in our Institutional Asset Management reporting unit, the impairment of our former equity method investment in G5 and the transition of certain employees in conjunction with the sale of the Institutional Trust and Independent Fiduciary business of ETC. Expenses in 2016 related to an impairment charge associated with our investment in Atalanta Sosnoff.
|
|
•
|
Acquisition and Transition Costs
- Includes costs incurred in connection with acquisitions, divestitures and other ongoing business development initiatives, primarily comprised of professional fees for legal and other services, as well as the reversal of a provision for certain settlements in 2016 which was previously established in the fourth quarter of 2015.
|
|
•
|
Fair Value of Contingent Consideration
- Includes expense, or the reversal of expense, associated with changes in the fair value of contingent consideration issued to the sellers of certain of our acquisitions.
|
|
•
|
Intangible Asset and Other Amortization
- Includes amortization of intangible assets and other purchase accounting-related amortization associated with certain acquisitions.
|
|
|
For the Years Ended December 31,
|
|
Change
|
||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018 v. 2017
|
|
2017 v. 2016
|
||||||||
|
|
(dollars in thousands, except per share data)
|
||||||||||||||||
|
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||
|
Investment Banking:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Advisory Fees
(1)
|
$
|
1,743,473
|
|
|
$
|
1,324,412
|
|
|
$
|
1,096,829
|
|
|
32
|
%
|
|
21
|
%
|
|
Underwriting Fees
(2)
|
71,691
|
|
|
45,827
|
|
|
36,264
|
|
|
56
|
%
|
|
26
|
%
|
|||
|
Commissions and Related Fees
|
200,015
|
|
|
205,630
|
|
|
230,913
|
|
|
(3
|
%)
|
|
(11
|
%)
|
|||
|
Asset Management and Administration Fees
|
48,246
|
|
|
59,648
|
|
|
63,404
|
|
|
(19
|
%)
|
|
(6
|
%)
|
|||
|
Other Revenue, Including Interest and Investments
(3)
|
19,051
|
|
|
88,828
|
|
|
29,380
|
|
|
(79
|
%)
|
|
202
|
%
|
|||
|
Total Revenues
|
2,082,476
|
|
|
1,724,345
|
|
|
1,456,790
|
|
|
21
|
%
|
|
18
|
%
|
|||
|
Interest Expense
|
17,771
|
|
|
19,996
|
|
|
16,738
|
|
|
(11
|
%)
|
|
19
|
%
|
|||
|
Net Revenues
|
2,064,705
|
|
|
1,704,349
|
|
|
1,440,052
|
|
|
21
|
%
|
|
18
|
%
|
|||
|
Expenses
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating Expenses
|
1,492,241
|
|
|
1,227,573
|
|
|
1,077,706
|
|
|
22
|
%
|
|
14
|
%
|
|||
|
Other Expenses
|
30,387
|
|
|
47,965
|
|
|
101,172
|
|
|
(37
|
%)
|
|
(53
|
%)
|
|||
|
Total Expenses
|
1,522,628
|
|
|
1,275,538
|
|
|
1,178,878
|
|
|
19
|
%
|
|
8
|
%
|
|||
|
Income Before Income from Equity Method Investments and Income Taxes
|
542,077
|
|
|
428,811
|
|
|
261,174
|
|
|
26
|
%
|
|
64
|
%
|
|||
|
Income from Equity Method Investments
|
9,294
|
|
|
8,838
|
|
|
6,641
|
|
|
5
|
%
|
|
33
|
%
|
|||
|
Income Before Income Taxes
|
551,371
|
|
|
437,649
|
|
|
267,815
|
|
|
26
|
%
|
|
63
|
%
|
|||
|
Provision for Income Taxes
|
108,520
|
|
|
258,442
|
|
|
119,303
|
|
|
(58
|
%)
|
|
117
|
%
|
|||
|
Net Income
|
442,851
|
|
|
179,207
|
|
|
148,512
|
|
|
147
|
%
|
|
21
|
%
|
|||
|
Net Income Attributable to Noncontrolling Interest
|
65,611
|
|
|
53,753
|
|
|
40,984
|
|
|
22
|
%
|
|
31
|
%
|
|||
|
Net Income Attributable to Evercore Inc.
|
$
|
377,240
|
|
|
$
|
125,454
|
|
|
$
|
107,528
|
|
|
201
|
%
|
|
17
|
%
|
|
Diluted Net Income Per Share Attributable to Evercore Inc. Common Shareholders
|
$
|
8.33
|
|
|
$
|
2.80
|
|
|
$
|
2.43
|
|
|
198
|
%
|
|
15
|
%
|
|
(1)
|
The application of ASC 606 resulted in advisory revenue of
$3.4 million
being recognized in 2018, representing variable consideration under the standard for which it is probable that a significant reversal of revenue will not occur, substantially all of which would have been recognized in the first quarter of 2019 under the legacy accounting standard.
|
|
(2)
|
The application of ASC 606 resulted in client related expenses for underwriting transactions being presented gross (previously presented net) in related revenues and expenses for
the year ended December 31, 2018
. Underwriting Fees reflect revenues for client related expenses of $4.7 million for
the year ended December 31, 2018
.
|
|
(3)
|
Includes
($0.7)
million and
$0.1
million of principal trading gains (losses) for the years ended December 31, 2017 and 2016, respectively, and
$2.0 million
and
$12.4 million
of net realized and unrealized gains on private equity investments for the years ended December 31, 2017 and 2016, respectively, in order to conform to the current period's presentation.
|
|
|
For the Years Ended December 31,
|
|
Change
|
||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018 v. 2017
|
|
2017 v. 2016
|
||||||||
|
|
(dollars in thousands)
|
|
|
||||||||||||||
|
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||
|
Investment Banking:
|
|
|
|
|
|
|
|
|
|
||||||||
|
Advisory Fees
(1)(2)
|
$
|
1,743,473
|
|
|
$
|
1,324,412
|
|
|
$
|
1,096,829
|
|
|
32
|
%
|
|
21
|
%
|
|
Underwriting Fees
(3)(4)
|
71,691
|
|
|
45,827
|
|
|
36,264
|
|
|
56
|
%
|
|
26
|
%
|
|||
|
Commissions and Related Fees
|
200,015
|
|
|
205,630
|
|
|
230,913
|
|
|
(3
|
%)
|
|
(11
|
%)
|
|||
|
Other Revenue, net
(5)
|
(3,156
|
)
|
|
58,399
|
|
|
(147
|
)
|
|
NM
|
|
|
NM
|
|
|||
|
Net Revenues
|
2,012,023
|
|
|
1,634,268
|
|
|
1,363,859
|
|
|
23
|
%
|
|
20
|
%
|
|||
|
Expenses
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating Expenses
|
1,448,301
|
|
|
1,175,927
|
|
|
1,020,327
|
|
|
23
|
%
|
|
15
|
%
|
|||
|
Other Expenses
(6)
|
30,366
|
|
|
35,810
|
|
|
92,172
|
|
|
(15
|
%)
|
|
(61
|
%)
|
|||
|
Total Expenses
|
1,478,667
|
|
|
1,211,737
|
|
|
1,112,499
|
|
|
22
|
%
|
|
9
|
%
|
|||
|
Operating Income
(7)
|
533,356
|
|
|
422,531
|
|
|
251,360
|
|
|
26
|
%
|
|
68
|
%
|
|||
|
Income from Equity Method Investments
(8)
|
518
|
|
|
277
|
|
|
1,370
|
|
|
87
|
%
|
|
(80
|
%)
|
|||
|
Pre-Tax Income
|
$
|
533,874
|
|
|
$
|
422,808
|
|
|
$
|
252,730
|
|
|
26
|
%
|
|
67
|
%
|
|
(1)
|
The application of ASC 606 resulted in advisory revenue of
$3.4 million
being recognized in 2018, representing variable consideration under the standard for which it is probable that a significant reversal of revenue will not occur, substantially all of which would have been recognized in the first quarter of 2019 under the legacy accounting standard.
|
|
(2)
|
Includes client related expenses of $31.5 million, $27.0 million and $24.5 million
for the years ended December 31, 2018, 2017 and 2016
, respectively.
|
|
(3)
|
The application of ASC 606 resulted in client related expenses for underwriting transactions being presented gross (previously presented net) in related revenues and expenses for the year ended December 31, 2018. Underwriting Fees reflect revenues for client related expenses of $4.7 million for
the year ended December 31, 2018
.
|
|
(4)
|
Includes expenses associated with revenue sharing engagements with third parties of $1.1 million for the year ended December 31, 2017.
|
|
(5)
|
Includes interest expense on the Notes Payable, subordinated borrowings and lines of credit of $9.2 million, $10.0 million and $9.6 million
for the years ended December 31, 2018, 2017 and 2016
, respectively, and includes an estimated gain of $77.5 million related to a reduction in the liability for amounts due pursuant to the tax receivable agreement and a loss of $16.3 million related to the release of cumulative foreign exchange losses resulting from the restructuring of our former equity method investment in G5 for the year ended December 31, 2017. Also includes
($0.7)
million and
$0.1
million of principal trading gains (losses) that were previously included in Investment Banking Revenue for the years ended December 31, 2017 and 2016, respectively, to conform to the current presentation.
|
|
(6)
|
Includes an impairment charge related to our former equity method investment in G5 of $14.4 million for the year ended December 31, 2017.
|
|
(7)
|
Includes Noncontrolling Interest of $2.7 million, $6.6 million and $2.5 million
for the years ended December 31, 2018, 2017 and 2016
, respectively.
|
|
(8)
|
Equity in Luminis and G5 - Advisory (through December 31, 2017, the date we exchanged all of our outstanding equity interests for debentures of G5) is classified as Income from Equity Method Investments.
|
|
|
For the Years Ended December 31,
|
|
Change
|
||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018 v. 2017
|
|
2017 v. 2016
|
||||||||
|
Industry Statistics ($ in billions) *
|
|
|
|
|
|
|
|
|
|
||||||||
|
Value of North American M&A Deals Announced
|
$
|
1,768
|
|
|
$
|
1,396
|
|
|
$
|
1,705
|
|
|
27
|
%
|
|
(18
|
%)
|
|
Value of North American M&A Deals Announced between $1 - $5 billion
|
$
|
508
|
|
|
$
|
435
|
|
|
$
|
448
|
|
|
17
|
%
|
|
(3
|
%)
|
|
Value of North American M&A Deals Completed
|
$
|
1,775
|
|
|
$
|
1,508
|
|
|
$
|
1,614
|
|
|
18
|
%
|
|
(7
|
%)
|
|
Value of Global M&A Deals Announced
|
$
|
3,927
|
|
|
$
|
3,336
|
|
|
$
|
3,488
|
|
|
18
|
%
|
|
(4
|
%)
|
|
Value of Global M&A Deals Announced between $1 - $5 billion
|
$
|
1,124
|
|
|
$
|
994
|
|
|
$
|
932
|
|
|
13
|
%
|
|
7
|
%
|
|
Value of Global M&A Deals Completed
|
$
|
3,467
|
|
|
$
|
3,040
|
|
|
$
|
3,394
|
|
|
14
|
%
|
|
(10
|
%)
|
|
Evercore Statistics **
|
|
|
|
|
|
|
|
|
|
||||||||
|
Total Number of Fees From Advisory Client Transactions
|
663
|
|
|
574
|
|
|
568
|
|
|
16
|
%
|
|
1
|
%
|
|||
|
Investment Banking Fees of at Least $1 million from Advisory Client Transactions
|
345
|
|
|
255
|
|
|
246
|
|
|
35
|
%
|
|
4
|
%
|
|||
|
|
For the Years Ended December 31,
|
|
Change
|
||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018 v. 2017
|
|
2017 v. 2016
|
||||||||
|
|
(dollars in thousands)
|
|
|
||||||||||||||
|
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||
|
Asset Management and Administration Fees:
|
|
|
|
|
|
|
|
|
|
||||||||
|
Wealth Management
|
$
|
44,875
|
|
|
$
|
40,288
|
|
|
$
|
36,411
|
|
|
11
|
%
|
|
11
|
%
|
|
Institutional Asset Management
|
3,371
|
|
|
3,628
|
|
|
4,193
|
|
|
(7
|
%)
|
|
(13
|
%)
|
|||
|
Disposed and Restructured Businesses
(1)(2)
|
—
|
|
|
15,732
|
|
|
22,800
|
|
|
NM
|
|
|
(31
|
%)
|
|||
|
Asset Management and Administration Fees
|
48,246
|
|
|
59,648
|
|
|
63,404
|
|
|
(19
|
%)
|
|
(6
|
%)
|
|||
|
Other Revenue, net
(3)(4)
|
4,436
|
|
|
10,433
|
|
|
12,789
|
|
|
(57
|
%)
|
|
(18
|
%)
|
|||
|
Net Revenues
|
52,682
|
|
|
70,081
|
|
|
76,193
|
|
|
(25
|
%)
|
|
(8
|
%)
|
|||
|
Expenses
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating Expenses
|
43,940
|
|
|
51,646
|
|
|
57,379
|
|
|
(15
|
%)
|
|
(10
|
%)
|
|||
|
Other Expenses
(5)
|
21
|
|
|
12,155
|
|
|
9,000
|
|
|
(100
|
%)
|
|
35
|
%
|
|||
|
Total Expenses
|
43,961
|
|
|
63,801
|
|
|
66,379
|
|
|
(31
|
%)
|
|
(4
|
%)
|
|||
|
Operating Income
(6)
|
8,721
|
|
|
6,280
|
|
|
9,814
|
|
|
39
|
%
|
|
(36
|
%)
|
|||
|
Income from Equity Method Investments
(7)
|
8,776
|
|
|
8,561
|
|
|
5,271
|
|
|
3
|
%
|
|
62
|
%
|
|||
|
Pre-Tax Income
|
$
|
17,497
|
|
|
$
|
14,841
|
|
|
$
|
15,085
|
|
|
18
|
%
|
|
(2
|
%)
|
|
(1)
|
Includes the Institutional Trust and Independent Fiduciary business of ETC, which was sold in the fourth quarter of 2017, and Management Fees from the Glisco funds.
|
|
(2)
|
Includes client related expenses of $0.2 million and $0.9 million for the years ended December 31, 2017 and 2016, respectively.
|
|
(3)
|
$2.0 million
and
$12.4 million
of net realized and unrealized gains on private equity investments have been classified in Other Revenue, net, for the years ended December 31, 2017 and 2016, respectively, to conform to the current presentation.
|
|
(4)
|
Includes interest expense on the Notes Payable and lines of credit of $0.7 million for the year ended December 31, 2016. Also includes a gain of $7.8 million related to the sale of the Institutional Trust and Independent Fiduciary business of ETC for the year ended December 31, 2017.
|
|
(5)
|
Includes an impairment charge related to the impairment of goodwill in the Institutional Asset Management reporting unit of $7.1 million for the year ended December 31, 2017 and an impairment charge related to the impairment of our equity method investment in Atalanta Sosnoff of $8.1 million for the year ended December 31, 2016. Also includes $3.9 million related to the transition of certain employees in conjunction with the sale of the Institutional Trust and Independent Fiduciary business of ETC for the year ended December 31, 2017.
|
|
(6)
|
Includes Noncontrolling Interest of $4.3 million, $3.2 million and $2.9 million
for the years ended December 31, 2018, 2017 and 2016
, respectively.
|
|
(7)
|
Equity in ABS, Atalanta Sosnoff and G5 - Wealth Management (through December 31, 2017, the date we exchanged all of our outstanding equity interests for debentures of G5), is classified as Income from Equity Method Investments.
|
|
•
|
Wealth Management - conducted through EWM and ETC. In August 2018, ETCDE was combined within ETC. Fee-based revenues from EWM are primarily earned on a percentage of AUM, while ETC primarily earn fees from negotiated trust services and fiduciary consulting arrangements.
|
|
•
|
Institutional Asset Management - conducted through ECB. Fee-based revenues from ECB are primarily earned on a percentage of AUM.
|
|
•
|
Private Equity - conducted through our investment interests in private equity funds. We maintain a limited partner's interest in Glisco II, Glisco III and Glisco IV, as well as Glisco Manager Holdings LP and the general partners of the Glisco Funds. We receive our portion of the management fees earned by Glisco from Glisco Manager Holdings LP. We are passive investors and do not participate in the management of any Glisco sponsored funds. We are also passive investors in Trilantic IV and Trilantic V and we committed $12.0 million of the total capital commitments of Trilantic VI. In the event the private equity funds perform below certain thresholds we may be obligated to repay certain carried interest previously distributed. As of
December 31, 2018
, there was
no
previously distributed carried interest received from our managed funds that was subject to repayment.
|
|
•
|
We also hold interests in ABS and Atalanta Sosnoff that are accounted for under the equity method of accounting. The results of these investments are included within Income from Equity Method Investments.
|
|
•
|
On December 31, 2017, we exchanged all of our outstanding equity interests in G5 for debentures of G5. This investment is accounted for as a held-to-maturity security going forward.
|
|
•
|
On October 18, 2017, we sold the Institutional Trust and Independent Fiduciary business of ETC. Following the sale, the remaining operations of ETC were integrated into EWM.
|
|
•
|
On September 30, 2016, we entered into an agreement to transfer ownership of the Mexican Private Equity business and related entities to Glisco.
|
|
|
Wealth
Management
|
|
Institutional
Asset
Management
|
|
Total
|
||||||
|
|
(dollars in millions)
|
||||||||||
|
Balance at December 31, 2016
|
$
|
6,473
|
|
|
$
|
1,526
|
|
|
$
|
7,999
|
|
|
Inflows
|
1,125
|
|
|
1,704
|
|
|
2,829
|
|
|||
|
Outflows
|
(986
|
)
|
|
(1,740
|
)
|
|
(2,726
|
)
|
|||
|
Market Appreciation
|
718
|
|
|
143
|
|
|
861
|
|
|||
|
Balance at December 31, 2017
|
$
|
7,330
|
|
|
$
|
1,633
|
|
|
$
|
8,963
|
|
|
Inflows
|
1,208
|
|
|
1,536
|
|
|
2,744
|
|
|||
|
Outflows
|
(759
|
)
|
|
(1,657
|
)
|
|
(2,416
|
)
|
|||
|
Market Appreciation (Depreciation)
|
(219
|
)
|
|
63
|
|
|
(156
|
)
|
|||
|
Balance at December 31, 2018
|
$
|
7,560
|
|
|
$
|
1,575
|
|
|
$
|
9,135
|
|
|
|
|
|
|
|
|
||||||
|
Unconsolidated Affiliates - Balance at December 31, 2018:
|
|
|
|
|
|
||||||
|
Atalanta Sosnoff
|
$
|
—
|
|
|
$
|
5,654
|
|
|
$
|
5,654
|
|
|
ABS
|
$
|
—
|
|
|
$
|
5,215
|
|
|
$
|
5,215
|
|
|
|
Wealth Management
|
|
Institutional Asset Management
|
||
|
Equities
|
54
|
%
|
|
29
|
%
|
|
Fixed Income
|
31
|
%
|
|
71
|
%
|
|
Liquidity
(1)
|
10
|
%
|
|
—
|
%
|
|
Alternatives
|
5
|
%
|
|
—
|
%
|
|
Total
|
100
|
%
|
|
100
|
%
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(dollars in thousands)
|
||||||||||
|
Cash Provided By (Used In)
|
|
|
|
|
|
||||||
|
Operating activities:
|
|
|
|
|
|
||||||
|
Net income
|
$
|
442,851
|
|
|
$
|
179,207
|
|
|
$
|
148,512
|
|
|
Non-cash charges
|
334,335
|
|
|
359,084
|
|
|
307,648
|
|
|||
|
Other operating activities
|
72,388
|
|
|
(31,055
|
)
|
|
(34,274
|
)
|
|||
|
Operating activities
|
849,574
|
|
|
507,236
|
|
|
421,886
|
|
|||
|
Investing activities
|
(212,566
|
)
|
|
(54,641
|
)
|
|
(46,201
|
)
|
|||
|
Financing activities
|
(452,927
|
)
|
|
(419,230
|
)
|
|
(237,958
|
)
|
|||
|
Effect of exchange rate changes
|
(1,370
|
)
|
|
8,383
|
|
|
(25,347
|
)
|
|||
|
Net Increase in Cash, Cash Equivalents and Restricted Cash
|
182,711
|
|
|
41,748
|
|
|
112,380
|
|
|||
|
Cash, Cash Equivalents and Restricted Cash
|
|
|
|
|
|
||||||
|
Beginning of Period
|
617,385
|
|
|
575,637
|
|
|
463,257
|
|
|||
|
End of Period
|
$
|
800,096
|
|
|
$
|
617,385
|
|
|
$
|
575,637
|
|
|
|
December 31,
|
||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||
|
|
Amount
|
|
Market Value of Collateral Received or (Pledged)
|
|
Amount
|
|
Market Value of Collateral Received or (Pledged)
|
||||||||
|
|
(dollars in thousands)
|
||||||||||||||
|
Assets
|
|
|
|
|
|
|
|
||||||||
|
Financial Instruments Owned and Pledged as Collateral at Fair Value
|
$
|
22,349
|
|
|
|
|
$
|
19,374
|
|
|
|
||||
|
Securities Purchased Under Agreements to Resell
|
2,696
|
|
|
$
|
2,701
|
|
|
10,645
|
|
|
$
|
10,643
|
|
||
|
Total Assets
|
$
|
25,045
|
|
|
|
|
$
|
30,019
|
|
|
|
||||
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
|
Securities Sold Under Agreements to Repurchase
|
(25,075
|
)
|
|
$
|
(25,099
|
)
|
|
(30,027
|
)
|
|
$
|
(30,020
|
)
|
||
|
Net Liabilities
|
$
|
(30
|
)
|
|
|
|
$
|
(8
|
)
|
|
|
||||
|
Risk Measures
|
|
|
|
|
|
|
|
||||||||
|
VaR
|
$
|
6
|
|
|
|
|
$
|
1
|
|
|
|
||||
|
Stress Test:
|
|
|
|
|
|
|
|
||||||||
|
Portfolio sensitivity to a 100 basis point increase in the interest rate
|
$
|
(1
|
)
|
|
|
|
$
|
(1
|
)
|
|
|
||||
|
Portfolio sensitivity to a 100 basis point decrease in the interest rate
|
$
|
1
|
|
|
|
|
$
|
1
|
|
|
|
||||
|
|
Payment Due by Period
|
||||||||||||||||||
|
|
Total
|
|
Less than 1 year
|
|
1-3 years
|
|
3-5 years
|
|
More than
5 years |
||||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||
|
Operating Lease Obligations
|
$
|
585,756
|
|
|
$
|
36,537
|
|
|
$
|
78,620
|
|
|
$
|
67,149
|
|
|
$
|
403,450
|
|
|
Tax Receivable Agreements
|
103,572
|
|
|
9,161
|
|
|
19,304
|
|
|
20,002
|
|
|
55,105
|
|
|||||
|
Notes Payable
|
219,142
|
|
|
8,937
|
|
|
54,947
|
|
|
79,414
|
|
|
75,844
|
|
|||||
|
Investment Banking Commitments
|
88,772
|
|
|
20,116
|
|
|
24,846
|
|
|
43,810
|
|
|
—
|
|
|||||
|
Investment Management Commitments
|
15,244
|
|
|
15,244
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
Total
|
$
|
1,012,486
|
|
|
$
|
89,995
|
|
|
$
|
177,717
|
|
|
$
|
210,375
|
|
|
$
|
534,399
|
|
|
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk
|
|
Item 8.
|
Financial Statements and Supplemental Data
|
|
|
|
|
Index to Financial Statements
|
Page
|
|
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
Assets
|
|
|
|
||||
|
Current Assets
|
|
|
|
||||
|
Cash and Cash Equivalents
|
$
|
790,590
|
|
|
$
|
609,587
|
|
|
Marketable Securities and Certificates of Deposit
|
304,627
|
|
|
128,559
|
|
||
|
Financial Instruments Owned and Pledged as Collateral at Fair Value
|
22,349
|
|
|
19,374
|
|
||
|
Securities Purchased Under Agreements to Resell
|
2,696
|
|
|
10,645
|
|
||
|
Accounts Receivable (net of allowances of $6,037 and $2,772 at December 31, 2018 and 2017, respectively)
|
309,075
|
|
|
184,993
|
|
||
|
Receivable from Employees and Related Parties
|
23,836
|
|
|
17,030
|
|
||
|
Other Current Assets
|
28,444
|
|
|
30,017
|
|
||
|
Total Current Assets
|
1,481,617
|
|
|
1,000,205
|
|
||
|
Investments
|
90,644
|
|
|
98,313
|
|
||
|
Deferred Tax Assets
|
241,092
|
|
|
198,894
|
|
||
|
Furniture, Equipment and Leasehold Improvements (net of accumulated depreciation and amortization of $89,494 and $70,264 at December 31, 2018 and 2017, respectively)
|
81,069
|
|
|
68,593
|
|
||
|
Goodwill
|
131,387
|
|
|
134,231
|
|
||
|
Intangible Assets (net of accumulated amortization of $41,217 and $32,018 at December 31, 2018 and 2017, respectively)
|
10,378
|
|
|
19,577
|
|
||
|
Other Assets
|
89,480
|
|
|
65,073
|
|
||
|
Total Assets
|
$
|
2,125,667
|
|
|
$
|
1,584,886
|
|
|
Liabilities and Equity
|
|
|
|
||||
|
Current Liabilities
|
|
|
|
||||
|
Accrued Compensation and Benefits
|
$
|
602,122
|
|
|
$
|
340,165
|
|
|
Accounts Payable and Accrued Expenses
|
37,948
|
|
|
34,111
|
|
||
|
Securities Sold Under Agreements to Repurchase
|
25,075
|
|
|
30,027
|
|
||
|
Payable to Employees and Related Parties
|
31,894
|
|
|
31,167
|
|
||
|
Taxes Payable
|
33,621
|
|
|
16,494
|
|
||
|
Other Current Liabilities
|
19,031
|
|
|
12,088
|
|
||
|
Total Current Liabilities
|
749,691
|
|
|
464,052
|
|
||
|
Notes Payable
|
168,612
|
|
|
168,347
|
|
||
|
Subordinated Borrowings
|
—
|
|
|
6,799
|
|
||
|
Amounts Due Pursuant to Tax Receivable Agreements
|
94,411
|
|
|
90,375
|
|
||
|
Other Long-term Liabilities
|
105,014
|
|
|
58,945
|
|
||
|
Total Liabilities
|
1,117,728
|
|
|
788,518
|
|
||
|
Commitments and Contingencies (Note 19)
|
|
|
|
||||
|
Equity
|
|
|
|
||||
|
Evercore Inc. Stockholders' Equity
|
|
|
|
||||
|
Common Stock
|
|
|
|
||||
|
Class A, par value $0.01 per share (1,000,000,000 shares authorized, 65,872,014 and 62,119,904 issued at December 31, 2018 and 2017, respectively, and 39,748,576 and 39,102,154 outstanding at December 31, 2018 and 2017, respectively)
|
659
|
|
|
621
|
|
||
|
Class B, par value $0.01 per share (1,000,000 shares authorized, 86 and 82 issued and outstanding at December 31, 2018 and 2017, respectively)
|
—
|
|
|
—
|
|
||
|
Additional Paid-In-Capital
|
1,818,100
|
|
|
1,600,699
|
|
||
|
Accumulated Other Comprehensive Income (Loss)
|
(30,434
|
)
|
|
(31,411
|
)
|
||
|
Retained Earnings
|
364,882
|
|
|
79,461
|
|
||
|
Treasury Stock at Cost (26,123,438 and 23,017,750 shares at December 31, 2018 and 2017, respectively)
|
(1,395,087
|
)
|
|
(1,105,406
|
)
|
||
|
Total Evercore Inc. Stockholders' Equity
|
758,120
|
|
|
543,964
|
|
||
|
Noncontrolling Interest
|
249,819
|
|
|
252,404
|
|
||
|
Total Equity
|
1,007,939
|
|
|
796,368
|
|
||
|
Total Liabilities and Equity
|
$
|
2,125,667
|
|
|
$
|
1,584,886
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
Revenues
|
|
|
|
|
|
||||||
|
Investment Banking:
(1)
|
|
|
|
|
|
||||||
|
Advisory Fees
|
$
|
1,743,473
|
|
|
$
|
1,324,412
|
|
|
$
|
1,096,829
|
|
|
Underwriting Fees
|
71,691
|
|
|
45,827
|
|
|
36,264
|
|
|||
|
Commissions and Related Fees
|
200,015
|
|
|
205,630
|
|
|
230,913
|
|
|||
|
Asset Management and Administration Fees
(1)
|
48,246
|
|
|
59,648
|
|
|
63,404
|
|
|||
|
Other Revenue, Including Interest and Investments
(1)
|
19,051
|
|
|
88,828
|
|
|
29,380
|
|
|||
|
Total Revenues
|
2,082,476
|
|
|
1,724,345
|
|
|
1,456,790
|
|
|||
|
Interest Expense
|
17,771
|
|
|
19,996
|
|
|
16,738
|
|
|||
|
Net Revenues
|
2,064,705
|
|
|
1,704,349
|
|
|
1,440,052
|
|
|||
|
Expenses
|
|
|
|
|
|
||||||
|
Employee Compensation and Benefits
|
1,197,173
|
|
|
962,512
|
|
|
900,590
|
|
|||
|
Occupancy and Equipment Rental
|
58,971
|
|
|
53,448
|
|
|
45,304
|
|
|||
|
Professional Fees
(1)
|
82,393
|
|
|
63,857
|
|
|
56,401
|
|
|||
|
Travel and Related Expenses
|
68,754
|
|
|
64,179
|
|
|
57,465
|
|
|||
|
Communications and Information Services
|
41,319
|
|
|
41,393
|
|
|
40,277
|
|
|||
|
Depreciation and Amortization
|
27,054
|
|
|
24,819
|
|
|
24,800
|
|
|||
|
Execution, Clearing and Custody Fees
(1)
|
11,470
|
|
|
14,778
|
|
|
17,544
|
|
|||
|
Special Charges
|
5,012
|
|
|
25,437
|
|
|
8,100
|
|
|||
|
Acquisition and Transition Costs
|
21
|
|
|
1,673
|
|
|
99
|
|
|||
|
Other Operating Expenses
(1)
|
30,461
|
|
|
23,442
|
|
|
28,298
|
|
|||
|
Total Expenses
|
1,522,628
|
|
|
1,275,538
|
|
|
1,178,878
|
|
|||
|
Income Before Income from Equity Method Investments and Income Taxes
|
542,077
|
|
|
428,811
|
|
|
261,174
|
|
|||
|
Income from Equity Method Investments
|
9,294
|
|
|
8,838
|
|
|
6,641
|
|
|||
|
Income Before Income Taxes
|
551,371
|
|
|
437,649
|
|
|
267,815
|
|
|||
|
Provision for Income Taxes
|
108,520
|
|
|
258,442
|
|
|
119,303
|
|
|||
|
Net Income
|
442,851
|
|
|
179,207
|
|
|
148,512
|
|
|||
|
Net Income Attributable to Noncontrolling Interest
|
65,611
|
|
|
53,753
|
|
|
40,984
|
|
|||
|
Net Income Attributable to Evercore Inc.
|
$
|
377,240
|
|
|
$
|
125,454
|
|
|
$
|
107,528
|
|
|
Net Income Attributable to Evercore Inc. Common Shareholders
|
$
|
377,240
|
|
|
$
|
125,454
|
|
|
$
|
107,528
|
|
|
Weighted Average Shares of Class A Common Stock Outstanding
|
|
|
|
|
|
||||||
|
Basic
|
40,595
|
|
|
39,641
|
|
|
39,220
|
|
|||
|
Diluted
|
45,279
|
|
|
44,826
|
|
|
44,193
|
|
|||
|
Net Income Per Share Attributable to Evercore Inc. Common Shareholders:
|
|
|
|
|
|
||||||
|
Basic
|
$
|
9.29
|
|
|
$
|
3.16
|
|
|
$
|
2.74
|
|
|
Diluted
|
$
|
8.33
|
|
|
$
|
2.80
|
|
|
$
|
2.43
|
|
|
(1)
|
Certain balances in prior periods were reclassified to conform to their current presentation. See Note 2 for further information.
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
Net Income
|
$
|
442,851
|
|
|
$
|
179,207
|
|
|
$
|
148,512
|
|
|
Other Comprehensive Income (Loss), net of tax:
|
|
|
|
|
|
||||||
|
Unrealized Gain (Loss) on Marketable Securities and Investments, net
|
(275
|
)
|
|
381
|
|
|
(1,763
|
)
|
|||
|
Foreign Currency Translation Adjustment Gain (Loss), net
|
(1,180
|
)
|
|
21,679
|
|
|
(17,531
|
)
|
|||
|
Other Comprehensive Income (Loss)
|
(1,455
|
)
|
|
22,060
|
|
|
(19,294
|
)
|
|||
|
Comprehensive Income
|
441,396
|
|
|
201,267
|
|
|
129,218
|
|
|||
|
Comprehensive Income Attributable to Noncontrolling Interest
|
65,408
|
|
|
57,128
|
|
|
37,247
|
|
|||
|
Comprehensive Income Attributable to Evercore Inc.
|
$
|
375,988
|
|
|
$
|
144,139
|
|
|
$
|
91,971
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
Additional
|
|
Other
|
|
Retained
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
Class A Common Stock
|
|
Paid-In
|
|
Comprehensive
|
|
Earnings
|
|
Treasury Stock
|
|
Noncontrolling
|
|
Total
|
||||||||||||||||||||
|
|
Shares
|
|
Dollars
|
|
Capital
|
|
Income (Loss)
|
|
(Deficit)
|
|
Shares
|
|
Dollars
|
|
Interest
|
|
Equity
|
||||||||||||||||
|
Balance at December 31, 2015
|
55,249,559
|
|
|
$
|
552
|
|
|
$
|
1,210,742
|
|
|
$
|
(34,539
|
)
|
|
$
|
(27,791
|
)
|
|
(15,626,288
|
)
|
|
$
|
(644,412
|
)
|
|
$
|
202,664
|
|
|
$
|
707,216
|
|
|
Net Income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
107,528
|
|
|
—
|
|
|
—
|
|
|
40,984
|
|
|
148,512
|
|
|||||||
|
Other Comprehensive Income (Loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
(15,557
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,737
|
)
|
|
(19,294
|
)
|
|||||||
|
Treasury Stock Purchases, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,475,423
|
)
|
|
(167,241
|
)
|
|
—
|
|
|
(167,241
|
)
|
|||||||
|
Evercore LP Units Purchased or Converted into Class A Common Stock
|
532,175
|
|
|
5
|
|
|
23,095
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,480
|
)
|
|
6,620
|
|
|||||||
|
Equity-based Compensation Awards
|
2,510,833
|
|
|
25
|
|
|
127,706
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
81,392
|
|
|
209,123
|
|
|||||||
|
Dividends and Equivalents
|
—
|
|
|
—
|
|
|
7,836
|
|
|
—
|
|
|
(59,394
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(51,558
|
)
|
|||||||
|
Noncontrolling Interest (Note 16)
|
—
|
|
|
—
|
|
|
(1,257
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(48,790
|
)
|
|
(50,047
|
)
|
|||||||
|
Balance at December 31, 2016
|
58,292,567
|
|
|
582
|
|
|
1,368,122
|
|
|
(50,096
|
)
|
|
20,343
|
|
|
(19,101,711
|
)
|
|
(811,653
|
)
|
|
256,033
|
|
|
783,331
|
|
|||||||
|
Net Income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
125,454
|
|
|
—
|
|
|
—
|
|
|
53,753
|
|
|
179,207
|
|
|||||||
|
Other Comprehensive Income
|
—
|
|
|
—
|
|
|
—
|
|
|
18,685
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,375
|
|
|
22,060
|
|
|||||||
|
Treasury Stock Purchases
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,916,039
|
)
|
|
(293,753
|
)
|
|
—
|
|
|
(293,753
|
)
|
|||||||
|
Evercore LP Units Purchased or Converted into Class A Common Stock
|
1,212,641
|
|
|
12
|
|
|
84,214
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(47,263
|
)
|
|
36,963
|
|
|||||||
|
Equity-based Compensation Awards
|
2,614,696
|
|
|
27
|
|
|
156,826
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,922
|
|
|
171,775
|
|
|||||||
|
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(66,336
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(66,336
|
)
|
|||||||
|
Noncontrolling Interest (Note 16)
|
—
|
|
|
—
|
|
|
(8,463
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(28,416
|
)
|
|
(36,879
|
)
|
|||||||
|
Balance at December 31, 2017
|
62,119,904
|
|
|
621
|
|
|
1,600,699
|
|
|
(31,411
|
)
|
|
79,461
|
|
|
(23,017,750
|
)
|
|
(1,105,406
|
)
|
|
252,404
|
|
|
796,368
|
|
|||||||
|
Cumulative Effect of Accounting Change
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
2,229
|
|
|
(2,229
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Net Income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
377,240
|
|
|
—
|
|
|
—
|
|
|
65,611
|
|
|
442,851
|
|
|||||||
|
Other Comprehensive Income (Loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,252
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(203
|
)
|
|
(1,455
|
)
|
|||||||
|
Treasury Stock Purchases
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,105,688
|
)
|
|
(289,681
|
)
|
|
—
|
|
|
(289,681
|
)
|
|||||||
|
Evercore LP Units Purchased or Converted into Class A Common Stock
|
1,181,669
|
|
|
12
|
|
|
70,550
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(46,594
|
)
|
|
23,968
|
|
|||||||
|
Equity-based Compensation Awards
|
2,570,441
|
|
|
26
|
|
|
172,309
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,860
|
|
|
192,195
|
|
|||||||
|
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(89,590
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(89,590
|
)
|
|||||||
|
Noncontrolling Interest (Note 16)
|
—
|
|
|
—
|
|
|
(25,458
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(41,259
|
)
|
|
(66,717
|
)
|
|||||||
|
Balance at December 31, 2018
|
65,872,014
|
|
|
$
|
659
|
|
|
$
|
1,818,100
|
|
|
$
|
(30,434
|
)
|
|
$
|
364,882
|
|
|
(26,123,438
|
)
|
|
$
|
(1,395,087
|
)
|
|
$
|
249,819
|
|
|
$
|
1,007,939
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
Cash Flows From Operating Activities
|
|
|
|
|
|
||||||
|
Net Income
|
$
|
442,851
|
|
|
$
|
179,207
|
|
|
$
|
148,512
|
|
|
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
|
|
|
|
|
|
||||||
|
Net (Gains) Losses on Investments, Marketable Securities and Contingent Consideration
|
10,718
|
|
|
(32
|
)
|
|
1,124
|
|
|||
|
Equity Method Investments
|
1,352
|
|
|
(513
|
)
|
|
2,602
|
|
|||
|
Equity-Based and Other Deferred Compensation
|
293,507
|
|
|
230,268
|
|
|
258,295
|
|
|||
|
Impairment of Goodwill and Equity Method Investments
|
—
|
|
|
21,507
|
|
|
8,100
|
|
|||
|
Gain on Sale of Institutional Trust and Independent Fiduciary business of ETC
|
—
|
|
|
(7,808
|
)
|
|
—
|
|
|||
|
Depreciation, Amortization and Accretion
|
29,374
|
|
|
26,032
|
|
|
25,223
|
|
|||
|
Bad Debt Expense
|
3,365
|
|
|
2,579
|
|
|
2,261
|
|
|||
|
Adjustment to Tax Receivable Agreement
|
—
|
|
|
(77,535
|
)
|
|
—
|
|
|||
|
Release of Cumulative Foreign Exchange Losses
|
—
|
|
|
16,266
|
|
|
—
|
|
|||
|
Deferred Taxes
|
(3,981
|
)
|
|
148,320
|
|
|
10,043
|
|
|||
|
Decrease (Increase) in Operating Assets:
|
|
|
|
|
|
||||||
|
Marketable Securities
|
(546
|
)
|
|
865
|
|
|
937
|
|
|||
|
Financial Instruments Owned and Pledged as Collateral at Fair Value
|
(2,961
|
)
|
|
35
|
|
|
18,249
|
|
|||
|
Securities Purchased Under Agreements to Resell
|
8,166
|
|
|
2,642
|
|
|
(11,890
|
)
|
|||
|
Accounts Receivable
|
(130,956
|
)
|
|
47,120
|
|
|
(64,522
|
)
|
|||
|
Receivable from Employees and Related Parties
|
(6,849
|
)
|
|
(2,188
|
)
|
|
5,934
|
|
|||
|
Other Assets
|
(21,830
|
)
|
|
(10,982
|
)
|
|
(32,763
|
)
|
|||
|
(Decrease) Increase in Operating Liabilities:
|
|
|
|
|
|
||||||
|
Accrued Compensation and Benefits
|
208,088
|
|
|
(25,892
|
)
|
|
48,258
|
|
|||
|
Accounts Payable and Accrued Expenses
|
5,496
|
|
|
1,149
|
|
|
(10,030
|
)
|
|||
|
Securities Sold Under Agreements to Repurchase
|
(5,183
|
)
|
|
(2,701
|
)
|
|
(6,387
|
)
|
|||
|
Payables to Employees and Related Parties
|
4,387
|
|
|
3,217
|
|
|
(1,581
|
)
|
|||
|
Taxes Payable
|
16,099
|
|
|
(10,849
|
)
|
|
9,097
|
|
|||
|
Other Liabilities
|
(1,523
|
)
|
|
(33,471
|
)
|
|
10,424
|
|
|||
|
Net Cash Provided by Operating Activities
|
849,574
|
|
|
507,236
|
|
|
421,886
|
|
|||
|
Cash Flows From Investing Activities
|
|
|
|
|
|
||||||
|
Investments Purchased
|
(95
|
)
|
|
(997
|
)
|
|
(2,047
|
)
|
|||
|
Distributions of Private Equity Investments
|
2,143
|
|
|
2,072
|
|
|
183
|
|
|||
|
Marketable Securities:
|
|
|
|
|
|
||||||
|
Proceeds from Sales and Maturities
|
191,779
|
|
|
45,642
|
|
|
46,547
|
|
|||
|
Purchases
|
(336,596
|
)
|
|
(40,995
|
)
|
|
(69,568
|
)
|
|||
|
Maturity of Certificates of Deposit
|
63,527
|
|
|
—
|
|
|
—
|
|
|||
|
Purchase of Certificates of Deposit
|
(100,000
|
)
|
|
(63,417
|
)
|
|
—
|
|
|||
|
Cash Paid for Acquisitions and Deconsolidation of Cash, net of Cash Acquired
|
—
|
|
|
—
|
|
|
(2,877
|
)
|
|||
|
Purchase of Furniture, Equipment and Leasehold Improvements
|
(33,324
|
)
|
|
(31,300
|
)
|
|
(18,439
|
)
|
|||
|
Proceeds from Sale of Business
|
—
|
|
|
34,354
|
|
|
—
|
|
|||
|
Net Cash Provided by (Used in) Investing Activities
|
(212,566
|
)
|
|
(54,641
|
)
|
|
(46,201
|
)
|
|||
|
Cash Flows From Financing Activities
|
|
|
|
|
|
||||||
|
Issuance of Noncontrolling Interests
|
1,165
|
|
|
110
|
|
|
885
|
|
|||
|
Distributions to Noncontrolling Interests
|
(41,413
|
)
|
|
(36,374
|
)
|
|
(38,154
|
)
|
|||
|
Payments Under Tax Receivable Agreement
|
(13,345
|
)
|
|
(12,381
|
)
|
|
(12,039
|
)
|
|||
|
Cash Paid for Deferred and Contingent Consideration
|
—
|
|
|
—
|
|
|
(5,050
|
)
|
|||
|
Short-Term Borrowings
|
30,000
|
|
|
30,000
|
|
|
50,000
|
|
|||
|
Repayment of Short-Term Borrowings
|
(30,000
|
)
|
|
(30,000
|
)
|
|
(50,000
|
)
|
|||
|
Repayment of Subordinated Borrowings
|
(6,799
|
)
|
|
(9,751
|
)
|
|
(6,000
|
)
|
|||
|
Payment of Notes Payable - Mizuho
|
—
|
|
|
—
|
|
|
(120,000
|
)
|
|||
|
Issuance of Notes Payable
|
—
|
|
|
—
|
|
|
170,000
|
|
|||
|
Debt Issuance Costs
|
—
|
|
|
—
|
|
|
(2,084
|
)
|
|||
|
Purchase of Treasury Stock and Noncontrolling Interests
|
(315,233
|
)
|
|
(304,313
|
)
|
|
(173,958
|
)
|
|||
|
Dividends - Class A Stockholders
|
(77,302
|
)
|
|
(56,521
|
)
|
|
(51,558
|
)
|
|||
|
Net Cash Provided by (Used in) Financing Activities
|
(452,927
|
)
|
|
(419,230
|
)
|
|
(237,958
|
)
|
|||
|
Effect of Exchange Rate Changes on Cash
|
(1,370
|
)
|
|
8,383
|
|
|
(25,347
|
)
|
|||
|
Net Increase in Cash, Cash Equivalents and Restricted Cash
|
182,711
|
|
|
41,748
|
|
|
112,380
|
|
|||
|
Cash, Cash Equivalents and Restricted Cash-Beginning of Period
|
617,385
|
|
|
575,637
|
|
|
463,257
|
|
|||
|
Cash, Cash Equivalents and Restricted Cash-End of Period
|
$
|
800,096
|
|
|
$
|
617,385
|
|
|
$
|
575,637
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
|
SUPPLEMENTAL CASH FLOW DISCLOSURE
|
|
|
|
|
|
||||||
|
Payments for Interest
|
$
|
17,818
|
|
|
$
|
19,471
|
|
|
$
|
14,074
|
|
|
Payments for Income Taxes
|
$
|
86,232
|
|
|
$
|
128,689
|
|
|
$
|
106,126
|
|
|
Accrued Dividends
|
$
|
12,288
|
|
|
$
|
9,815
|
|
|
$
|
7,836
|
|
|
Settlement of Contingent Consideration
|
$
|
—
|
|
|
$
|
10,780
|
|
|
$
|
—
|
|
|
Institutional Trust and Independent Fiduciary business of ETC Assets Deconsolidated
|
$
|
—
|
|
|
$
|
81
|
|
|
$
|
—
|
|
|
Institutional Trust and Independent Fiduciary business of ETC Liabilities Deconsolidated
|
$
|
—
|
|
|
$
|
1,489
|
|
|
$
|
—
|
|
|
Decrease in Goodwill from sale of Institutional Trust and Independent Fiduciary business of ETC
|
$
|
—
|
|
|
$
|
28,442
|
|
|
$
|
—
|
|
|
Mexico Private Equity Assets Deconsolidated
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,302
|
|
|
Mexico Private Equity Liabilities Deconsolidated
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,343
|
|
|
Decrease in Noncontrolling Interest from Mexico Private Equity Deconsolidation
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,808
|
|
|
|
For the Year Ended
|
||
|
|
December 31, 2018
|
||
|
Investment Banking:
|
|
||
|
Advisory Fees
|
$
|
1,743,473
|
|
|
Underwriting Fees
|
71,691
|
|
|
|
Commissions and Related Fees
|
200,015
|
|
|
|
Total Investment Banking
|
$
|
2,015,179
|
|
|
|
|
||
|
Investment Management:
|
|
||
|
Asset Management and Administration Fees:
|
|
||
|
Wealth Management
|
$
|
44,875
|
|
|
Institutional Asset Management
|
3,371
|
|
|
|
Total Investment Management
|
$
|
48,246
|
|
|
|
Receivables
(Current)
(1)
|
|
Receivables
(Long-term)
(2)
|
|
Contract Assets (Current)
(3)
|
|
Contract Assets (Long-term)
(4)
|
|
Deferred Revenue
(Current Contract Liabilities)
(5)
|
|
Deferred Revenue
(Long-term Contract Liabilities)
(6)
|
||||||||||||
|
Balance at January 1, 2018
|
$
|
184,993
|
|
|
$
|
34,008
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,147
|
|
|
$
|
1,834
|
|
|
Increase (Decrease)
|
124,082
|
|
|
26,940
|
|
|
2,833
|
|
|
541
|
|
|
869
|
|
|
(103
|
)
|
||||||
|
Balance at December 31, 2018
|
$
|
309,075
|
|
|
$
|
60,948
|
|
|
$
|
2,833
|
|
|
$
|
541
|
|
|
$
|
4,016
|
|
|
$
|
1,731
|
|
|
(1)
|
Included in Accounts Receivable on the
Consolidated Statements of Financial Condition
.
|
|
(2)
|
Included in Other Assets on the
Consolidated Statements of Financial Condition
.
|
|
(3)
|
Included in Other Current Assets on the
Consolidated Statements of Financial Condition
.
|
|
(4)
|
Included in Other Assets on the
Consolidated Statements of Financial Condition
.
|
|
(5)
|
Included in Other Current Liabilities on the
Consolidated Statements of Financial Condition
.
|
|
(6)
|
Included in Other Long-term Liabilities on the
Consolidated Statements of Financial Condition
.
|
|
|
Investment
Banking |
|
Investment
Management |
|
Total
|
||||||
|
Balance at December 31, 2016
(1)
|
$
|
114,489
|
|
|
$
|
46,472
|
|
|
$
|
160,961
|
|
|
Impairment of Goodwill
|
—
|
|
|
(7,107
|
)
|
|
(7,107
|
)
|
|||
|
Sale of the Institutional Trust and Independent Fiduciary business of ETC
|
—
|
|
|
(28,442
|
)
|
|
(28,442
|
)
|
|||
|
Foreign Currency Translation and Other
|
8,819
|
|
|
—
|
|
|
8,819
|
|
|||
|
Balance at December 31, 2017
(2)
|
123,308
|
|
|
10,923
|
|
|
134,231
|
|
|||
|
Foreign Currency Translation and Other
|
(2,844
|
)
|
|
—
|
|
|
(2,844
|
)
|
|||
|
Balance at December 31, 2018
(2)
|
$
|
120,464
|
|
|
$
|
10,923
|
|
|
$
|
131,387
|
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
||||||||||||||||||||
|
|
Investment
Banking |
|
Investment
Management |
|
Total
|
|
Investment
Banking |
|
Investment
Management |
|
Total
|
||||||||||||
|
|
|||||||||||||||||||||||
|
Client Related
|
$
|
42,000
|
|
|
$
|
3,830
|
|
|
$
|
45,830
|
|
|
$
|
35,356
|
|
|
$
|
2,360
|
|
|
$
|
37,716
|
|
|
Other
|
5,320
|
|
|
445
|
|
|
5,765
|
|
|
3,167
|
|
|
334
|
|
|
3,501
|
|
||||||
|
Total
|
$
|
47,320
|
|
|
$
|
4,275
|
|
|
$
|
51,595
|
|
|
$
|
38,523
|
|
|
$
|
2,694
|
|
|
$
|
41,217
|
|
|
|
|
||||||||||||||||||||||
|
|
December 31, 2017
|
||||||||||||||||||||||
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
||||||||||||||||||||
|
|
Investment
Banking |
|
Investment
Management |
|
Total
|
|
Investment
Banking |
|
Investment
Management |
|
Total
|
||||||||||||
|
|
|||||||||||||||||||||||
|
Client Related
|
$
|
42,000
|
|
|
$
|
3,830
|
|
|
$
|
45,830
|
|
|
$
|
27,355
|
|
|
$
|
1,977
|
|
|
$
|
29,332
|
|
|
Other
|
5,320
|
|
|
445
|
|
|
5,765
|
|
|
2,407
|
|
|
279
|
|
|
2,686
|
|
||||||
|
Total
|
$
|
47,320
|
|
|
$
|
4,275
|
|
|
$
|
51,595
|
|
|
$
|
29,762
|
|
|
$
|
2,256
|
|
|
$
|
32,018
|
|
|
2019
|
$
|
7,866
|
|
|
2020
|
$
|
1,182
|
|
|
2021
|
$
|
996
|
|
|
2022
|
$
|
334
|
|
|
2023
|
$
|
—
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
Advances to Employees
|
$
|
22,889
|
|
|
$
|
15,930
|
|
|
Personal Expenses Paid on Behalf of Employees and Related Parties
|
692
|
|
|
766
|
|
||
|
Reimbursable Expenses Relating to the Private Equity Funds
|
255
|
|
|
334
|
|
||
|
Receivable from Employees and Related Parties
|
$
|
23,836
|
|
|
$
|
17,030
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
Board of Director Fees
|
$
|
566
|
|
|
$
|
350
|
|
|
Amounts Due to U.K. Members
|
22,167
|
|
|
17,996
|
|
||
|
Amounts Due Pursuant to Tax Receivable Agreements
(a)
|
9,161
|
|
|
12,821
|
|
||
|
Payable to Employees and Related Parties
|
$
|
31,894
|
|
|
$
|
31,167
|
|
|
(a)
|
Relates to the current portion of the Member exchange of Class A LP Units for Class A Shares. The long-term portion of
$94,411
and
$90,375
is disclosed in Amounts Due Pursuant to Tax Receivable Agreements on the Consolidated Statements of Financial Condition at December 31, 2018 and 2017, respectively.
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||||||||||
|
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
||||||||||||||||
|
Securities Investments - Debt Securities
|
$
|
1,622
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
1,632
|
|
|
$
|
1,806
|
|
|
$
|
—
|
|
|
$
|
11
|
|
|
$
|
1,795
|
|
|
Securities Investments - Equity Securities
|
666
|
|
|
—
|
|
|
410
|
|
|
256
|
|
|
5,388
|
|
|
—
|
|
|
4,144
|
|
|
1,244
|
|
||||||||
|
Debt Securities Carried by EGL
|
147,009
|
|
|
954
|
|
|
—
|
|
|
147,963
|
|
|
34,233
|
|
|
87
|
|
|
26
|
|
|
34,294
|
|
||||||||
|
Investment Funds
|
56,296
|
|
|
402
|
|
|
1,922
|
|
|
54,776
|
|
|
22,027
|
|
|
5,678
|
|
|
6
|
|
|
27,699
|
|
||||||||
|
Total
|
$
|
205,593
|
|
|
$
|
1,366
|
|
|
$
|
2,332
|
|
|
$
|
204,627
|
|
|
$
|
63,454
|
|
|
$
|
5,765
|
|
|
$
|
4,187
|
|
|
$
|
65,032
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
|
|
Amortized
Cost
|
|
Fair Value
|
|
Amortized
Cost
|
|
Fair Value
|
||||||||
|
Due within one year
|
$
|
391
|
|
|
$
|
391
|
|
|
$
|
204
|
|
|
$
|
204
|
|
|
Due after one year through five years
|
1,231
|
|
|
1,241
|
|
|
1,602
|
|
|
1,591
|
|
||||
|
Total
|
$
|
1,622
|
|
|
$
|
1,632
|
|
|
$
|
1,806
|
|
|
$
|
1,795
|
|
|
|
December 31,
|
||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||
|
|
Asset
(Liability)
Balance
|
|
Market Value of
Collateral Received
or (Pledged)
|
|
Asset
(Liability)
Balance
|
|
Market Value of
Collateral Received
or (Pledged)
|
||||||||
|
Assets
|
|
|
|
|
|
|
|
||||||||
|
Financial Instruments Owned and Pledged as Collateral at Fair Value
|
$
|
22,349
|
|
|
|
|
$
|
19,374
|
|
|
|
||||
|
Securities Purchased Under Agreements to Resell
|
2,696
|
|
|
$
|
2,701
|
|
|
10,645
|
|
|
$
|
10,643
|
|
||
|
Total Assets
|
$
|
25,045
|
|
|
|
|
$
|
30,019
|
|
|
|
||||
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
|
Securities Sold Under Agreements to Repurchase
|
$
|
(25,075
|
)
|
|
$
|
(25,099
|
)
|
|
$
|
(30,027
|
)
|
|
$
|
(30,020
|
)
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
ABS
|
$
|
38,699
|
|
|
$
|
39,894
|
|
|
Atalanta Sosnoff
|
13,291
|
|
|
13,963
|
|
||
|
Luminis
|
6,517
|
|
|
5,999
|
|
||
|
Total
|
$
|
58,507
|
|
|
$
|
59,856
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
ECP II
|
$
|
795
|
|
|
$
|
833
|
|
|
Glisco II, Glisco III and Glisco IV
|
3,880
|
|
|
6,558
|
|
||
|
Trilantic IV and Trilantic V
|
5,125
|
|
|
6,421
|
|
||
|
Total Private Equity Funds
|
$
|
9,800
|
|
|
$
|
13,812
|
|
|
|
December 31, 2018
|
||||||||||||||
|
|
Level I
|
|
Level II
|
|
Level III
|
|
Total
|
||||||||
|
Corporate Bonds, Municipal Bonds and Other Debt Securities
(1)
|
$
|
109,577
|
|
|
$
|
62,801
|
|
|
$
|
—
|
|
|
$
|
172,378
|
|
|
Securities Investments
(2)
|
6,232
|
|
|
1,982
|
|
|
—
|
|
|
8,214
|
|
||||
|
Investment Funds
|
54,776
|
|
|
—
|
|
|
—
|
|
|
54,776
|
|
||||
|
Financial Instruments Owned and Pledged as Collateral at Fair Value
|
22,349
|
|
|
—
|
|
|
—
|
|
|
22,349
|
|
||||
|
Total Assets Measured At Fair Value
|
$
|
192,934
|
|
|
$
|
64,783
|
|
|
$
|
—
|
|
|
$
|
257,717
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
December 31, 2017
|
||||||||||||||
|
|
Level I
|
|
Level II
|
|
Level III
|
|
Total
|
||||||||
|
Corporate Bonds, Municipal Bonds and Other Debt Securities
(1)
|
$
|
—
|
|
|
$
|
44,648
|
|
|
$
|
—
|
|
|
$
|
44,648
|
|
|
Securities Investments
(2)
|
4,336
|
|
|
1,795
|
|
|
—
|
|
|
6,131
|
|
||||
|
Investment Funds
|
27,699
|
|
|
—
|
|
|
—
|
|
|
27,699
|
|
||||
|
Financial Instruments Owned and Pledged as Collateral at Fair Value
|
19,374
|
|
|
—
|
|
|
—
|
|
|
19,374
|
|
||||
|
Total Assets Measured At Fair Value
|
$
|
51,409
|
|
|
$
|
46,443
|
|
|
$
|
—
|
|
|
$
|
97,852
|
|
|
(1)
|
Includes
$24,415
and
$10,354
of treasury bills, municipal bonds and commercial paper classified within Cash and Cash Equivalents on the
Consolidated Statements of Financial Condition
as of
December 31, 2018
and 2017, respectively.
|
|
(2)
|
Includes
$6,326
and
$3,092
of treasury bills and notes and municipal bonds classified within Cash and Cash Equivalents on the
Consolidated Statements of Financial Condition
as of
December 31, 2018
and 2017, respectively.
|
|
|
|
|
December 31, 2018
|
||||||||||||||||
|
|
Carrying
|
|
Estimated Fair Value
|
||||||||||||||||
|
|
Amount
|
|
Level I
|
|
Level II
|
|
Level III
|
|
Total
|
||||||||||
|
Financial Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cash and Cash Equivalents
|
$
|
759,849
|
|
|
$
|
759,849
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
759,849
|
|
|
Certificates of Deposit
|
100,000
|
|
|
—
|
|
|
100,000
|
|
|
—
|
|
|
100,000
|
|
|||||
|
Debt Security Investment
|
9,717
|
|
|
—
|
|
|
—
|
|
|
9,717
|
|
|
9,717
|
|
|||||
|
Securities Purchased Under Agreements to Resell
|
2,696
|
|
|
—
|
|
|
2,696
|
|
|
—
|
|
|
2,696
|
|
|||||
|
Receivables
(1)
|
370,023
|
|
|
—
|
|
|
369,636
|
|
|
—
|
|
|
369,636
|
|
|||||
|
Contract Assets
(2)
|
3,374
|
|
|
—
|
|
|
3,348
|
|
|
—
|
|
|
3,348
|
|
|||||
|
Receivable from Employees and Related Parties
|
23,836
|
|
|
—
|
|
|
23,836
|
|
|
—
|
|
|
23,836
|
|
|||||
|
Closely-held Equity Security
|
1,079
|
|
|
—
|
|
|
—
|
|
|
1,079
|
|
|
1,079
|
|
|||||
|
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Accounts Payable and Accrued Expenses
|
$
|
37,948
|
|
|
$
|
—
|
|
|
$
|
37,948
|
|
|
$
|
—
|
|
|
$
|
37,948
|
|
|
Securities Sold Under Agreements to Repurchase
|
25,075
|
|
|
—
|
|
|
25,075
|
|
|
—
|
|
|
25,075
|
|
|||||
|
Payable to Employees and Related Parties
|
31,894
|
|
|
—
|
|
|
31,894
|
|
|
—
|
|
|
31,894
|
|
|||||
|
Notes Payable
|
168,612
|
|
|
—
|
|
|
166,555
|
|
|
—
|
|
|
166,555
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
December 31, 2017
|
||||||||||||||||
|
|
Carrying
|
|
Estimated Fair Value
|
||||||||||||||||
|
|
Amount
|
|
Level I
|
|
Level II
|
|
Level III
|
|
Total
|
||||||||||
|
Financial Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cash and Cash Equivalents
|
$
|
596,141
|
|
|
$
|
596,141
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
596,141
|
|
|
Certificates of Deposit
|
63,527
|
|
|
—
|
|
|
63,527
|
|
|
—
|
|
|
63,527
|
|
|||||
|
Debt Security Investment
|
10,995
|
|
|
—
|
|
|
—
|
|
|
10,995
|
|
|
10,995
|
|
|||||
|
Securities Purchased Under Agreements to Resell
|
10,645
|
|
|
—
|
|
|
10,645
|
|
|
—
|
|
|
10,645
|
|
|||||
|
Accounts Receivable
|
184,993
|
|
|
—
|
|
|
184,993
|
|
|
—
|
|
|
184,993
|
|
|||||
|
Receivable from Employees and Related Parties
|
17,030
|
|
|
—
|
|
|
17,030
|
|
|
—
|
|
|
17,030
|
|
|||||
|
Closely-held Equity Security
|
1,079
|
|
|
—
|
|
|
—
|
|
|
1,079
|
|
|
1,079
|
|
|||||
|
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Accounts Payable and Accrued Expenses
|
$
|
34,111
|
|
|
$
|
—
|
|
|
$
|
34,111
|
|
|
$
|
—
|
|
|
$
|
34,111
|
|
|
Securities Sold Under Agreements to Repurchase
|
30,027
|
|
|
—
|
|
|
30,027
|
|
|
—
|
|
|
30,027
|
|
|||||
|
Payable to Employees and Related Parties
|
31,167
|
|
|
—
|
|
|
31,167
|
|
|
—
|
|
|
31,167
|
|
|||||
|
Notes Payable
|
168,347
|
|
|
—
|
|
|
171,929
|
|
|
—
|
|
|
171,929
|
|
|||||
|
Subordinated Borrowings
|
6,799
|
|
|
—
|
|
|
6,859
|
|
|
—
|
|
|
6,859
|
|
|||||
|
(1)
|
Includes Accounts Receivable and Long-term receivables included in Other Assets on the Consolidated Statements of Financial Condition. The adoption of ASU 2016-01 in 2018 resulted in the Company prospectively including the fair value of its receivables that are due in excess of one year in the above table.
|
|
(2)
|
Includes current and long-term contract assets included in Other Current Assets and Other Assets on the Consolidated Statements of Financial Condition.
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
Furniture and Equipment
|
$
|
39,349
|
|
|
$
|
31,715
|
|
|
Leasehold Improvements
|
91,597
|
|
|
72,199
|
|
||
|
Computer and Technology-related
|
39,617
|
|
|
34,943
|
|
||
|
Total
|
170,563
|
|
|
138,857
|
|
||
|
Less: Accumulated Depreciation and Amortization
|
(89,494
|
)
|
|
(70,264
|
)
|
||
|
Furniture, Equipment and Leasehold Improvements, Net
|
$
|
81,069
|
|
|
$
|
68,593
|
|
|
|
|
|
|
|
|
Carrying Value
(a)
|
|||||||
|
|
|
|
|
|
|
December 31,
|
|||||||
|
Note
|
|
Maturity Date
|
|
Effective Annual Interest Rate
|
|
2018
|
|
2017
|
|||||
|
Evercore Inc. 4.88% Series A Senior Notes
|
|
3/30/2021
|
|
5.16
|
%
|
|
$
|
37,776
|
|
|
$
|
37,684
|
|
|
Evercore Inc. 5.23% Series B Senior Notes
|
|
3/30/2023
|
|
5.44
|
%
|
|
66,466
|
|
|
66,356
|
|
||
|
Evercore Inc. 5.48% Series C Senior Notes
|
|
3/30/2026
|
|
5.64
|
%
|
|
47,542
|
|
|
47,493
|
|
||
|
Evercore Inc. 5.58% Series D Senior Notes
|
|
3/30/2028
|
|
5.72
|
%
|
|
16,828
|
|
|
16,814
|
|
||
|
Total
|
|
|
|
|
|
$
|
168,612
|
|
|
$
|
168,347
|
|
|
|
(a)
|
Carrying value has been adjusted to reflect the presentation of debt issuance costs as a direct reduction from the related liability.
|
|
2019
|
$
|
8,937
|
|
|
2020
|
8,937
|
|
|
|
2021
|
46,010
|
|
|
|
2022
|
7,083
|
|
|
|
2023
|
72,331
|
|
|
|
Thereafter
|
75,844
|
|
|
|
Total
|
$
|
219,142
|
|
|
|
December 31,
|
|||||||
|
|
2018
|
|
2017
|
|
2016
|
|||
|
Subsidiary:
|
|
|
|
|
|
|||
|
Evercore LP
|
11
|
%
|
|
12
|
%
|
|
14
|
%
|
|
EWM
(1)
|
43
|
%
|
|
42
|
%
|
|
42
|
%
|
|
PCA
(1)
|
24
|
%
|
|
25
|
%
|
|
39
|
%
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
Beginning balance
|
$
|
252,404
|
|
|
$
|
256,033
|
|
|
$
|
202,664
|
|
|
|
|
|
|
|
|
||||||
|
Comprehensive Income (Loss):
|
|
|
|
|
|
||||||
|
Net Income Attributable to Noncontrolling Interest
|
65,611
|
|
|
53,753
|
|
|
40,984
|
|
|||
|
Other Comprehensive Income (Loss)
|
(203
|
)
|
|
3,375
|
|
|
(3,737
|
)
|
|||
|
Total Comprehensive Income
|
65,408
|
|
|
57,128
|
|
|
37,247
|
|
|||
|
|
|
|
|
|
|
||||||
|
Evercore LP Units Purchased or Converted into Class A Shares
|
(46,594
|
)
|
|
(47,263
|
)
|
|
(16,480
|
)
|
|||
|
|
|
|
|
|
|
||||||
|
Amortization and Vesting of LP Units/Interests
|
19,860
|
|
|
14,922
|
|
|
81,392
|
|
|||
|
|
|
|
|
|
|
||||||
|
Other Items:
|
|
|
|
|
|
||||||
|
Distributions to Noncontrolling Interests
|
(41,413
|
)
|
|
(36,374
|
)
|
|
(38,154
|
)
|
|||
|
Issuance of Noncontrolling Interest
|
1,165
|
|
|
8,460
|
|
|
885
|
|
|||
|
Purchase of Noncontrolling Interest
|
(1,011
|
)
|
|
(281
|
)
|
|
(5,225
|
)
|
|||
|
Deconsolidation of GCP III
|
—
|
|
|
—
|
|
|
(5,808
|
)
|
|||
|
Other, net
|
—
|
|
|
(221
|
)
|
|
(488
|
)
|
|||
|
Total Other Items
|
(41,259
|
)
|
|
(28,416
|
)
|
|
(48,790
|
)
|
|||
|
|
|
|
|
|
|
||||||
|
Ending balance
|
$
|
249,819
|
|
|
$
|
252,404
|
|
|
$
|
256,033
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
Basic Net Income Per Share Attributable to Evercore Inc. Common Shareholders
|
|
|
|
|
|
||||||
|
Numerator:
|
|
|
|
|
|
||||||
|
Net income attributable to Evercore Inc. common shareholders
|
$
|
377,240
|
|
|
$
|
125,454
|
|
|
$
|
107,528
|
|
|
Denominator:
|
|
|
|
|
|
||||||
|
Weighted average Class A Shares outstanding, including vested RSUs
|
40,595
|
|
|
39,641
|
|
|
39,220
|
|
|||
|
Basic net income per share attributable to Evercore Inc. common shareholders
|
$
|
9.29
|
|
|
$
|
3.16
|
|
|
$
|
2.74
|
|
|
Diluted Net Income Per Share Attributable to Evercore Inc. Common Shareholders
|
|
|
|
|
|
||||||
|
Numerator:
|
|
|
|
|
|
||||||
|
Net income attributable to Evercore Inc. common shareholders
|
$
|
377,240
|
|
|
$
|
125,454
|
|
|
$
|
107,528
|
|
|
Noncontrolling interest related to the assumed exchange of LP Units for Class A Shares
|
(b)
|
|
|
(b)
|
|
|
(b)
|
|
|||
|
Associated corporate taxes related to the assumed elimination of Noncontrolling Interest described above
|
(b)
|
|
|
(b)
|
|
|
(b)
|
|
|||
|
Diluted net income attributable to Evercore Inc. common shareholders
|
$
|
377,240
|
|
|
$
|
125,454
|
|
|
$
|
107,528
|
|
|
Denominator:
|
|
|
|
|
|
||||||
|
Weighted average Class A Shares outstanding, including vested RSUs
|
40,595
|
|
|
39,641
|
|
|
39,220
|
|
|||
|
Assumed exchange of LP Units for Class A Shares
(a)(b)
|
1,378
|
|
|
842
|
|
|
—
|
|
|||
|
Additional shares of the Company's common stock assumed to be issued pursuant to non-vested RSUs and deferred consideration, as calculated using the Treasury Stock Method
|
2,906
|
|
|
2,719
|
|
|
2,065
|
|
|||
|
Shares that are contingently issuable
(c)
|
400
|
|
|
1,624
|
|
|
2,908
|
|
|||
|
Diluted weighted average Class A Shares outstanding
|
45,279
|
|
|
44,826
|
|
|
44,193
|
|
|||
|
Diluted net income per share attributable to Evercore Inc. common shareholders
|
$
|
8.33
|
|
|
$
|
2.80
|
|
|
$
|
2.43
|
|
|
(a)
|
The Company has outstanding Class J LP Units, which convert into Class E LP Units and ultimately become exchangeable into Class A Shares on a
one
-for-one basis. During the years ended
December 31, 2018
and 2017, the Class J LP Units were dilutive and consequently the effect of their exchange into Class A Shares has been included in the calculation of diluted net income per share attributable to Evercore Inc. common shareholders under the if-converted method. In computing this adjustment, the Company assumes that all Class J LP Units are converted into Class A Shares.
|
|
(b)
|
The Company also has outstanding Class A and E LP Units in Evercore LP, which give the holders the right to receive Class A Shares upon exchange on a
one
-for-one basis. During
the years ended December 31, 2018, 2017 and 2016
, the Class A and E LP Units were antidilutive and consequently the effect of their exchange into Class A Shares has been excluded from the calculation of diluted net income per share attributable to Evercore Inc. common shareholders. The units that would have been included in the denominator of the computation of diluted net income per share attributable to Evercore Inc. common shareholders if the effect would have been dilutive were
5,075
,
5,920
and
6,397
for the years ended December 31, 2018, 2017 and 2016
, respectively. The adjustment to the numerator, diluted net income attributable to Class A common shareholders, if the effect would have been dilutive, would have been
$46,060
,
$28,186
and
$18,196
for the years ended December 31, 2018, 2017 and 2016
, respectively. In computing this adjustment, the Company assumes that all vested Class A LP Units and all Class E LP Units are converted into Class A Shares, that all earnings attributable to those shares are attributed to Evercore Inc. and that the Company is subject to the statutory tax rates of a C-Corporation under a conventional corporate tax structure in the U.S. at prevailing corporate tax rates. The Company does not anticipate that the Class A and E LP Units will result in a dilutive computation in future periods.
|
|
(c)
|
The Company previously had outstanding Class G and H LP Interests which were contingently exchangeable into Class E LP Units, and ultimately Class A Shares, and has outstanding Class I-P Units which are contingently exchangeable into Class I LP Units, and ultimately Class A Shares, and outstanding Class K-P Units which are contingently exchangeable into Class K LP Units, and ultimately Class A Shares, as they are subject to certain performance thresholds being achieved. In July 2017, the Company exchanged all of the outstanding Class H LP Interests for a number of Class J LP Units. As of December 31, 2017, all of the Class G LP Interests either converted into Class E LP Units or were forfeited pursuant to their performance terms. See Note 18 for further discussion. For the purposes of calculating diluted net income per share attributable to Evercore Inc. common shareholders, the Company's Class G and H LP Interests and Class I-P and Class K-P Units are included in diluted weighted average Class A Shares outstanding as of the beginning of the period in which all necessary performance conditions have been satisfied. If all necessary performance conditions have not been satisfied by the end of the period, the number of shares that are included in diluted weighted average Class A Shares outstanding is based on the number of shares that would be issuable if the end of the reporting period were the end of the performance period. The Interests/Units that were assumed to be converted to an equal number of Class A Shares for purposes of computing diluted net income per share attributable to Evercore Inc. common shareholders were
400
,
1,624
and
2,908
for the years ended December 31, 2018, 2017 and 2016
, respectively.
|
|
|
Class J LP Units
|
|||||
|
|
Number of Units
|
|
Grant Date Weighted
Average Fair Value |
|||
|
Unvested Balance at January 1, 2018
|
1,897
|
|
|
$
|
36,272
|
|
|
Granted
|
—
|
|
|
—
|
|
|
|
Modified
|
—
|
|
|
—
|
|
|
|
Forfeited
|
—
|
|
|
—
|
|
|
|
Vested
|
(632
|
)
|
|
(12,091
|
)
|
|
|
Unvested Balance at December 31, 2018
|
1,265
|
|
|
$
|
24,181
|
|
|
|
Service-based Awards
|
|||||
|
|
Number of Shares
|
|
Grant Date Weighted
Average Fair Value |
|||
|
Unvested Balance at January 1, 2018
|
7,035
|
|
|
$
|
437,021
|
|
|
Granted
|
1,968
|
|
|
186,964
|
|
|
|
Modified
|
—
|
|
|
—
|
|
|
|
Forfeited
|
(70
|
)
|
|
(5,394
|
)
|
|
|
Vested
|
(2,523
|
)
|
|
(149,686
|
)
|
|
|
Unvested Balance at December 31, 2018
|
6,410
|
|
|
$
|
468,905
|
|
|
2019
|
$
|
36,537
|
|
|
2020
|
39,059
|
|
|
|
2021
|
39,561
|
|
|
|
2022
|
39,585
|
|
|
|
2023
|
27,564
|
|
|
|
Thereafter
|
403,450
|
|
|
|
Total
|
$
|
585,756
|
|
|
|
December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
Cash and Cash Equivalents
|
$
|
790,590
|
|
|
$
|
609,587
|
|
|
$
|
558,524
|
|
|
Restricted Cash included in Other Assets
|
9,506
|
|
|
7,798
|
|
|
17,113
|
|
|||
|
Total Cash, Cash Equivalents and Restricted Cash shown in the Statement of Cash Flows
|
$
|
800,096
|
|
|
$
|
617,385
|
|
|
$
|
575,637
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
U.S.
|
$
|
449,171
|
|
|
$
|
379,407
|
|
|
$
|
204,920
|
|
|
Non-U.S.
|
36,589
|
|
|
4,489
|
|
|
21,911
|
|
|||
|
Income before Income Tax Expense
(a)
|
$
|
485,760
|
|
|
$
|
383,896
|
|
|
$
|
226,831
|
|
|
(a)
|
Net of Noncontrolling Interest.
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
Current:
|
|
|
|
|
|
||||||
|
Federal
|
$
|
80,690
|
|
|
$
|
85,371
|
|
|
$
|
79,596
|
|
|
Foreign
|
7,360
|
|
|
9,796
|
|
|
10,832
|
|
|||
|
State and Local
|
24,451
|
|
|
14,955
|
|
|
18,832
|
|
|||
|
Total Current
|
112,501
|
|
|
110,122
|
|
|
109,260
|
|
|||
|
Deferred:
|
|
|
|
|
|
||||||
|
Federal
|
(4,771
|
)
|
|
150,800
|
|
|
11,510
|
|
|||
|
Foreign
|
(61
|
)
|
|
(3,464
|
)
|
|
(1,439
|
)
|
|||
|
State and Local
|
851
|
|
|
984
|
|
|
(28
|
)
|
|||
|
Total Deferred
|
(3,981
|
)
|
|
148,320
|
|
|
10,043
|
|
|||
|
Total
|
$
|
108,520
|
|
|
$
|
258,442
|
|
|
$
|
119,303
|
|
|
|
For the Years Ended December 31,
|
|||||||
|
|
2018
|
|
2017
|
|
2016
|
|||
|
Reconciliation of Federal Statutory Tax Rates:
|
|
|
|
|
|
|||
|
U.S. Statutory Tax Rate
|
21.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
|
Increase Due to State and Local Taxes
|
3.6
|
%
|
|
3.1
|
%
|
|
4.8
|
%
|
|
Rate Benefits as a Limited Liability Company/Flow Through
|
(2.6
|
)%
|
|
(2.3
|
)%
|
|
(5.9
|
)%
|
|
Foreign Taxes
|
0.2
|
%
|
|
(1.1
|
)%
|
|
0.7
|
%
|
|
Non-Deductible Expenses
(1)
|
1.2
|
%
|
|
1.6
|
%
|
|
9.9
|
%
|
|
ASU 2016-09 Benefit for Stock Compensation
|
(4.2
|
)%
|
|
(5.5
|
)%
|
|
—
|
%
|
|
Tax Cuts and Jobs Act - Reduction to Tax Receivable Agreement Liability
|
—
|
%
|
|
(5.6
|
)%
|
|
—
|
%
|
|
Tax Cuts and Jobs Act - Primarily Related to the
Re-measurement of Net Deferred Tax Assets
|
0.1
|
%
|
|
32.7
|
%
|
|
—
|
%
|
|
Valuation Allowances
|
0.3
|
%
|
|
1.1
|
%
|
|
—
|
%
|
|
Other Adjustments
|
0.1
|
%
|
|
0.1
|
%
|
|
—
|
%
|
|
Effective Income Tax Rate
|
19.7
|
%
|
|
59.1
|
%
|
|
44.5
|
%
|
|
(1)
|
Primarily related to non-deductible share-based compensation expense.
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
Deferred Tax Assets:
|
|
|
|
||||
|
Depreciation and Amortization
|
$
|
33,738
|
|
|
$
|
26,319
|
|
|
Compensation and Benefits
|
61,541
|
|
|
46,697
|
|
||
|
Step up in tax basis due to the exchange of LP Units for Class A Shares
(1)
|
111,108
|
|
|
106,360
|
|
||
|
Step up in tax basis due to the exchange of LP Units for Class A Shares
(2)
|
37,079
|
|
|
25,883
|
|
||
|
Other
|
24,720
|
|
|
20,282
|
|
||
|
Total Deferred Tax Assets
|
$
|
268,186
|
|
|
$
|
225,541
|
|
|
Deferred Tax Liabilities:
|
|
|
|
||||
|
Goodwill, Intangible Assets and Other
|
$
|
18,873
|
|
|
$
|
20,241
|
|
|
Total Deferred Tax Liabilities
|
$
|
18,873
|
|
|
$
|
20,241
|
|
|
Net Deferred Tax Assets Before Valuation Allowance
|
$
|
249,313
|
|
|
$
|
205,300
|
|
|
Valuation Allowance
|
(8,221
|
)
|
|
(6,406
|
)
|
||
|
Net Deferred Tax Assets
|
$
|
241,092
|
|
|
$
|
198,894
|
|
|
(1)
|
Step-up in the tax basis associated with the exchange of LP Units for holders which have a tax receivable agreement.
|
|
(2)
|
Step-up in the tax basis associated with the exchange of LP Units for holders which do not have a tax receivable agreement.
|
|
•
|
Revenue, expenses and income (loss) from equity method investments directly associated with each segment are included in determining pre-tax income.
|
|
•
|
Expenses not directly associated with specific segments are allocated based on the most relevant measures applicable, including headcount, square footage and other performance and time-based factors.
|
|
•
|
Segment assets are based on those directly associated with each segment, or for certain assets shared across segments, those assets are allocated based on the most relevant measures applicable, including headcount and other factors.
|
|
•
|
Investment gains and losses, interest income and interest expense are allocated between the segments based on the segment in which the underlying asset or liability is held.
|
|
•
|
Amortization of LP Units/Interests and Certain Other Awards
- Includes amortization costs or the reversal of expenses associated with the vesting of Class E LP Units, Class G and H LP Interests and Class J LP Units issued in conjunction with the acquisition of ISI and certain other related awards.
|
|
•
|
Special Charges
- Includes expenses in 2018 related to separation benefits and costs for the termination of certain contracts associated with closing the Company's agency trading platform in the U.K. and separation benefits and related charges associated with the Company's businesses in Mexico, as well as the acceleration of depreciation expense for leasehold improvements in conjunction with the expansion of the Company's headquarters in New York. Expenses in 2017 related to the impairment of goodwill in the Company's Institutional Asset Management reporting unit, the impairment of the Company's former equity method investment in G5, and the transition of certain employees in conjunction with the sale of the Institutional Trust and Independent Fiduciary business of ETC. Expenses in 2016 related to an impairment charge associated with the Company's investment in Atalanta Sosnoff.
|
|
•
|
Acquisition and Transition Costs
- Includes costs incurred in connection with acquisitions, divestitures and other ongoing business development initiatives, primarily comprised of professional fees for legal and other services. Expenses in 2016 also include the reversal of a provision for certain settlements in 2016, which was previously established in the fourth quarter of 2015.
|
|
•
|
Fair Value of Contingent Consideration
- Includes expense, or the reversal of expense, associated with changes in the fair value of contingent consideration issued to the sellers of certain of the Company's acquisitions.
|
|
•
|
Intangible Asset and Other Amortization
- Includes amortization of intangible assets and other purchase accounting-related amortization associated with certain acquisitions.
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
Investment Banking
|
|
|
|
|
|
||||||
|
Net Revenues
(1)
|
$
|
2,012,023
|
|
|
$
|
1,634,268
|
|
|
$
|
1,363,859
|
|
|
Operating Expenses
|
1,448,301
|
|
|
1,175,927
|
|
|
1,020,327
|
|
|||
|
Other Expenses
(2)
|
30,366
|
|
|
35,810
|
|
|
92,172
|
|
|||
|
Operating Income
|
533,356
|
|
|
422,531
|
|
|
251,360
|
|
|||
|
Income from Equity Method Investments
|
518
|
|
|
277
|
|
|
1,370
|
|
|||
|
Pre-Tax Income
|
$
|
533,874
|
|
|
$
|
422,808
|
|
|
$
|
252,730
|
|
|
Identifiable Segment Assets
|
$
|
1,923,783
|
|
|
$
|
1,294,103
|
|
|
$
|
1,302,351
|
|
|
Investment Management
|
|
|
|
|
|
||||||
|
Net Revenues
(1)
|
$
|
52,682
|
|
|
$
|
70,081
|
|
|
$
|
76,193
|
|
|
Operating Expenses
|
43,940
|
|
|
51,646
|
|
|
57,379
|
|
|||
|
Other Expenses
(2)
|
21
|
|
|
12,155
|
|
|
9,000
|
|
|||
|
Operating Income
|
8,721
|
|
|
6,280
|
|
|
9,814
|
|
|||
|
Income from Equity Method Investments
|
8,776
|
|
|
8,561
|
|
|
5,271
|
|
|||
|
Pre-Tax Income
|
$
|
17,497
|
|
|
$
|
14,841
|
|
|
$
|
15,085
|
|
|
Identifiable Segment Assets
|
$
|
201,884
|
|
|
$
|
290,783
|
|
|
$
|
359,995
|
|
|
Total
|
|
|
|
|
|
||||||
|
Net Revenues
(1)
|
$
|
2,064,705
|
|
|
$
|
1,704,349
|
|
|
$
|
1,440,052
|
|
|
Operating Expenses
|
1,492,241
|
|
|
1,227,573
|
|
|
1,077,706
|
|
|||
|
Other Expenses
(2)
|
30,387
|
|
|
47,965
|
|
|
101,172
|
|
|||
|
Operating Income
|
542,077
|
|
|
428,811
|
|
|
261,174
|
|
|||
|
Income from Equity Method Investments
|
9,294
|
|
|
8,838
|
|
|
6,641
|
|
|||
|
Pre-Tax Income
|
$
|
551,371
|
|
|
$
|
437,649
|
|
|
$
|
267,815
|
|
|
Identifiable Segment Assets
|
$
|
2,125,667
|
|
|
$
|
1,584,886
|
|
|
$
|
1,662,346
|
|
|
(1)
|
Net revenues include Other Revenue, net, allocated to the segments as follows:
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
Investment Banking
(A)
|
$
|
(3,156
|
)
|
|
$
|
58,399
|
|
|
$
|
(147
|
)
|
|
Investment Management
(B)
|
4,436
|
|
|
10,433
|
|
|
12,789
|
|
|||
|
Total Other Revenue, net
|
$
|
1,280
|
|
|
$
|
68,832
|
|
|
$
|
12,642
|
|
|
(A)
|
Investment Banking Other Revenue, net, includes interest expense on the Notes Payable, subordinated borrowings and lines of credit of
$9,201
,
$9,960
and
$9,578
for the years ended December 31, 2018, 2017 and 2016
, respectively, and includes an estimated gain of
$77,535
related to a reduction in the liability for amounts due pursuant to the tax receivable agreement and a loss of
$16,266
related to the release of cumulative foreign exchange losses resulting from the restructuring of the Company's former equity method investment in G5 for the year ended
December 31, 2017
. Also includes
($701)
and
$92
of principal trading gains (losses) for the years ended
December 31, 2017
and 2016, respectively, to conform to the current presentation.
|
|
(B)
|
Investment Management Other Revenue, net, includes interest expense on the Notes Payable and lines of credit of
$670
for the year ended December 31, 2016, and includes a gain of
$7,808
related to the sale of the Institutional Trust and Independent Fiduciary business of ETC for the year ended
December 31, 2017
. Also includes
$2,037
and
$12,403
of net realized and unrealized gains on private equity investments for the years ended December 31, 2017 and 2016, respectively, to conform to the current presentation.
|
|
(2)
|
Other Expenses are as follows:
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
Investment Banking
|
|
|
|
|
|
||||||
|
Amortization of LP Units / Interests and Certain Other Awards
|
$
|
15,241
|
|
|
$
|
11,444
|
|
|
$
|
80,846
|
|
|
Special Charges
|
5,012
|
|
|
14,400
|
|
|
—
|
|
|||
|
Acquisition and Transition Costs
|
—
|
|
|
555
|
|
|
(692
|
)
|
|||
|
Fair Value of Contingent Consideration
|
1,485
|
|
|
—
|
|
|
1,107
|
|
|||
|
Intangible Asset and Other Amortization
|
8,628
|
|
|
9,411
|
|
|
10,911
|
|
|||
|
Total Investment Banking
|
30,366
|
|
|
35,810
|
|
|
92,172
|
|
|||
|
Investment Management
|
|
|
|
|
|
||||||
|
Special Charges
|
—
|
|
|
11,037
|
|
|
8,100
|
|
|||
|
Acquisition and Transition Costs
|
21
|
|
|
1,118
|
|
|
791
|
|
|||
|
Intangible Asset and Other Amortization
|
—
|
|
|
—
|
|
|
109
|
|
|||
|
Total Investment Management
|
21
|
|
|
12,155
|
|
|
9,000
|
|
|||
|
Total Other Expenses
|
$
|
30,387
|
|
|
$
|
47,965
|
|
|
$
|
101,172
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
Net Revenues:
(1)
|
|
|
|
|
|
||||||
|
United States
|
$
|
1,591,883
|
|
|
$
|
1,199,231
|
|
|
$
|
1,057,633
|
|
|
Europe and Other
|
438,602
|
|
|
422,271
|
|
|
337,957
|
|
|||
|
Latin America
|
32,940
|
|
|
14,015
|
|
|
31,820
|
|
|||
|
Total
|
$
|
2,063,425
|
|
|
$
|
1,635,517
|
|
|
$
|
1,427,410
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
Total Assets:
|
|
|
|
||||
|
United States
|
$
|
1,757,589
|
|
|
$
|
1,284,163
|
|
|
Europe and Other
|
298,917
|
|
|
234,984
|
|
||
|
Latin America
|
69,161
|
|
|
65,739
|
|
||
|
Total
|
$
|
2,125,667
|
|
|
$
|
1,584,886
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
ASSETS
|
|
|
|
||||
|
Equity Investment in Subsidiary
|
$
|
824,239
|
|
|
$
|
612,453
|
|
|
Deferred Tax Assets
|
223,936
|
|
|
180,487
|
|
||
|
Goodwill
|
15,236
|
|
|
15,236
|
|
||
|
Other Assets
|
—
|
|
|
9,689
|
|
||
|
TOTAL ASSETS
|
$
|
1,063,411
|
|
|
$
|
817,865
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
||||
|
Liabilities
|
|
|
|
||||
|
Current Liabilities
|
|
|
|
||||
|
Payable to Related Party
|
$
|
9,161
|
|
|
$
|
12,821
|
|
|
Taxes Payable
|
30,749
|
|
|
—
|
|
||
|
Other Current Liabilities
|
2,358
|
|
|
2,358
|
|
||
|
Total Current Liabilities
|
42,268
|
|
|
15,179
|
|
||
|
Amounts Due Pursuant to Tax Receivable Agreements
|
94,411
|
|
|
90,375
|
|
||
|
Long-term Debt - Notes Payable
|
168,612
|
|
|
168,347
|
|
||
|
TOTAL LIABILITIES
|
305,291
|
|
|
273,901
|
|
||
|
Stockholders' Equity
|
|
|
|
||||
|
Common Stock
|
|
|
|
||||
|
Class A, par value $0.01 per share (1,000,000,000 shares authorized, 65,872,014 and 62,119,904 issued at December 31, 2018 and 2017, respectively, and 39,748,576 and 39,102,154 outstanding at December 31, 2018 and 2017, respectively)
|
659
|
|
|
621
|
|
||
|
Class B, par value $0.01 per share (1,000,000 shares authorized, 86 and 82 issued and outstanding at December 31, 2018 and 2017, respectively)
|
—
|
|
|
—
|
|
||
|
Additional Paid-In-Capital
|
1,818,100
|
|
|
1,600,699
|
|
||
|
Accumulated Other Comprehensive Income (Loss)
|
(30,434
|
)
|
|
(31,411
|
)
|
||
|
Retained Earnings
|
364,882
|
|
|
79,461
|
|
||
|
Treasury Stock at Cost (26,123,438 and 23,017,750 shares at December 31, 2018 and 2017, respectively)
|
(1,395,087
|
)
|
|
(1,105,406
|
)
|
||
|
TOTAL STOCKHOLDERS' EQUITY
|
758,120
|
|
|
543,964
|
|
||
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
1,063,411
|
|
|
$
|
817,865
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
REVENUES
|
|
|
|
|
|
||||||
|
Other Revenue, Including Interest and Investments
|
$
|
9,202
|
|
|
$
|
86,784
|
|
|
$
|
8,385
|
|
|
TOTAL REVENUES
|
9,202
|
|
|
86,784
|
|
|
8,385
|
|
|||
|
Interest Expense
|
9,202
|
|
|
9,249
|
|
|
8,385
|
|
|||
|
NET REVENUES
|
—
|
|
|
77,535
|
|
|
—
|
|
|||
|
EXPENSES
|
|
|
|
|
|
||||||
|
TOTAL EXPENSES
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
OPERATING INCOME
|
—
|
|
|
77,535
|
|
|
—
|
|
|||
|
Equity in Income of Subsidiary
|
473,978
|
|
|
287,440
|
|
|
209,841
|
|
|||
|
Provision for Income Taxes
|
96,738
|
|
|
239,521
|
|
|
102,313
|
|
|||
|
NET INCOME
|
$
|
377,240
|
|
|
$
|
125,454
|
|
|
$
|
107,528
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
||||||
|
Net Income
|
$
|
377,240
|
|
|
$
|
125,454
|
|
|
$
|
107,528
|
|
|
Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities:
|
|
|
|
|
|
||||||
|
Undistributed Income of Subsidiary
|
(473,978
|
)
|
|
(209,905
|
)
|
|
(209,841
|
)
|
|||
|
Adjustment to Tax Receivable Agreement
|
—
|
|
|
(77,535
|
)
|
|
—
|
|
|||
|
Deferred Taxes
|
(5,311
|
)
|
|
153,344
|
|
|
12,453
|
|
|||
|
Accretion on Long-term Debt
|
265
|
|
|
250
|
|
|
180
|
|
|||
|
(Increase) Decrease in Operating Assets:
|
|
|
|
|
|
||||||
|
Other Assets
|
9,689
|
|
|
(9,689
|
)
|
|
—
|
|
|||
|
Increase (Decrease) in Operating Liabilities:
|
|
|
|
|
|
||||||
|
Taxes Payable
|
30,749
|
|
|
(21,341
|
)
|
|
6,580
|
|
|||
|
Net Cash Provided by (Used in) Operating Activities
|
(61,346
|
)
|
|
(39,422
|
)
|
|
(83,100
|
)
|
|||
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
||||||
|
Investment in Subsidiary
|
138,648
|
|
|
95,943
|
|
|
84,658
|
|
|||
|
Net Cash Provided by Investing Activities
|
138,648
|
|
|
95,943
|
|
|
84,658
|
|
|||
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
||||||
|
Payment of Notes Payable - Mizuho
|
—
|
|
|
—
|
|
|
(120,000
|
)
|
|||
|
Issuance of Notes Payable
|
—
|
|
|
—
|
|
|
170,000
|
|
|||
|
Dividends
|
(77,302
|
)
|
|
(56,521
|
)
|
|
(51,558
|
)
|
|||
|
Net Cash Provided by (Used in) Financing Activities
|
(77,302
|
)
|
|
(56,521
|
)
|
|
(1,558
|
)
|
|||
|
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of Year
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—End of Year
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
||||||
|
SUPPLEMENTAL CASH FLOW DISCLOSURE
|
|
|
|
|
|
||||||
|
Accrued Dividends
|
$
|
12,288
|
|
|
$
|
9,815
|
|
|
$
|
7,836
|
|
|
|
For the Three Months Ended
|
||||||||||||||
|
|
December 31,
2018 |
|
September 30,
2018 |
|
June 30,
2018 |
|
March 31,
2018 |
||||||||
|
Net Revenues
|
$
|
771,406
|
|
|
$
|
381,259
|
|
|
$
|
448,477
|
|
|
$
|
463,563
|
|
|
Total Expenses
|
521,200
|
|
|
306,719
|
|
|
343,695
|
|
|
351,014
|
|
||||
|
Income Before Income from Equity Method Investments and Income Taxes
|
250,206
|
|
|
74,540
|
|
|
104,782
|
|
|
112,549
|
|
||||
|
Income from Equity Method Investments
|
2,452
|
|
|
2,298
|
|
|
2,419
|
|
|
2,125
|
|
||||
|
Income Before Income Taxes
|
252,658
|
|
|
76,838
|
|
|
107,201
|
|
|
114,674
|
|
||||
|
Provision for Income Taxes
|
60,502
|
|
|
17,539
|
|
|
25,541
|
|
|
4,938
|
|
||||
|
Net Income
|
192,156
|
|
|
59,299
|
|
|
81,660
|
|
|
109,736
|
|
||||
|
Net Income Attributable to Noncontrolling Interest
|
28,851
|
|
|
9,838
|
|
|
12,729
|
|
|
14,193
|
|
||||
|
Net Income Attributable to Evercore Inc.
|
$
|
163,305
|
|
|
$
|
49,461
|
|
|
$
|
68,931
|
|
|
$
|
95,543
|
|
|
Net Income Per Share Attributable to Evercore Inc. Common Shareholders
|
|
|
|
|
|
|
|
||||||||
|
Basic
|
$
|
4.07
|
|
|
$
|
1.21
|
|
|
$
|
1.69
|
|
|
$
|
2.36
|
|
|
Diluted
|
$
|
3.67
|
|
|
$
|
1.08
|
|
|
$
|
1.52
|
|
|
$
|
2.10
|
|
|
Dividends Declared Per Share of Class A Common Stock
|
$
|
0.50
|
|
|
$
|
0.50
|
|
|
$
|
0.50
|
|
|
$
|
0.40
|
|
|
|
For the Three Months Ended
|
||||||||||||||
|
|
December 31,
2017 |
|
September 30,
2017 |
|
June 30,
2017 |
|
March 31,
2017 |
||||||||
|
Net Revenues
|
$
|
540,031
|
|
|
$
|
406,601
|
|
|
$
|
370,470
|
|
|
$
|
387,247
|
|
|
Total Expenses
|
355,885
|
|
|
319,531
|
|
|
324,204
|
|
|
275,918
|
|
||||
|
Income Before Income from Equity Method Investments and Income Taxes
|
184,146
|
|
|
87,070
|
|
|
46,266
|
|
|
111,329
|
|
||||
|
Income from Equity Method Investments
|
3,331
|
|
|
1,827
|
|
|
2,070
|
|
|
1,610
|
|
||||
|
Income Before Income Taxes
|
187,477
|
|
|
88,897
|
|
|
48,336
|
|
|
112,939
|
|
||||
|
Provision for Income Taxes
|
188,876
|
|
|
28,815
|
|
|
22,459
|
|
|
18,292
|
|
||||
|
Net Income (Loss)
|
(1,399
|
)
|
|
60,082
|
|
|
25,877
|
|
|
94,647
|
|
||||
|
Net Income Attributable to Noncontrolling Interest
|
18,013
|
|
|
14,171
|
|
|
7,693
|
|
|
13,876
|
|
||||
|
Net Income (Loss) Attributable to Evercore Inc.
|
$
|
(19,412
|
)
|
|
$
|
45,911
|
|
|
$
|
18,184
|
|
|
$
|
80,771
|
|
|
Net Income (Loss) Per Share Attributable to Evercore Inc. Common Shareholders
|
|
|
|
|
|
|
|
||||||||
|
Basic
|
$
|
(0.50
|
)
|
|
$
|
1.18
|
|
|
$
|
0.45
|
|
|
$
|
2.00
|
|
|
Diluted
|
$
|
(0.50
|
)
|
|
$
|
1.04
|
|
|
$
|
0.41
|
|
|
$
|
1.76
|
|
|
Dividends Declared Per Share of Class A Common Stock
|
$
|
0.40
|
|
|
$
|
0.34
|
|
|
$
|
0.34
|
|
|
$
|
0.34
|
|
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
|
Item 9A.
|
Controls and Procedures
|
|
Item 9B.
|
Other Information
|
|
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
|
Item 11.
|
Executive Compensation
|
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
|
|
|
Number of Shares
to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (1) |
|
Weighted Average
Exercise Price of Outstanding Options, Warrants and Rights (2) |
|
Number of Shares
Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in First Column) |
|||
|
Equity compensation plans approved by shareholders
|
|
5,887,408
|
|
|
—
|
|
|
5,349,124
|
|
|
Equity compensation plans not approved by shareholders
(3)
|
|
612,000
|
|
|
—
|
|
|
—
|
|
|
Total
|
|
6,499,408
|
|
|
—
|
|
|
5,349,124
|
|
|
(1)
|
Includes shares that may be issued upon the vesting of RSUs and dividend equivalents accrued thereon.
|
|
(2)
|
To date, we have issued RSUs which by their nature have no exercise price.
|
|
(3)
|
Reflects 612,000 RSUs granted to John S. Weinberg in connection with his employment with the Company as its Executive Chairman. The RSUs were awarded in reliance on the employment inducement exception provided under Section 303A.08 of the New York Stock Exchange Listed Company Manual. See Note 18 to our consolidated financial statements for more information.
|
|
Item 13.
|
Certain Relationships and Related Transactions and Director Independence
|
|
Item 14.
|
Principal Accountant Fees and Services
|
|
Item 15.
|
Exhibits and Financial Statement Schedules
|
|
1.
|
Financial Statements
|
|
2.
|
Financial Data Schedules
|
|
3.
|
Exhibits
|
|
|
|
|
|
Exhibit
Number |
|
Description
|
|
|
|
|
|
3.1
|
|
|
|
|
|
|
|
3.2
|
|
|
|
|
|
|
|
10.1
|
|
|
|
|
|
|
|
10.2
|
|
|
|
|
|
|
|
10.3
|
|
|
|
|
|
|
|
10.4
|
|
|
|
|
|
|
|
10.5
|
|
|
|
|
|
|
|
10.6
|
|
|
|
|
|
|
|
10.7
|
|
|
|
|
|
|
|
10.8
|
|
|
|
|
|
|
|
10.9
|
|
|
|
|
|
|
|
10.10
|
|
|
|
|
|
|
|
10.11
|
|
|
|
|
|
|
|
10.12
|
|
|
|
|
|
|
|
10.13
|
|
|
|
|
|
|
|
10.14
|
|
|
|
|
|
|
|
10.15
|
|
|
|
|
|
|
|
10.16
|
|
|
|
|
|
|
|
10.17
|
|
|
|
|
|
|
|
10.18
|
|
|
|
|
|
|
|
10.19
|
|
|
|
|
|
|
|
10.20
|
|
|
|
|
|
|
|
10.21
|
|
|
|
|
|
|
|
10.22
|
|
|
|
|
|
|
|
10.23
|
|
|
|
|
|
|
|
10.24
|
|
|
|
|
|
|
|
10.25
|
|
|
|
|
|
|
|
10.26
|
|
|
|
|
|
|
|
10.27
|
|
|
|
|
|
|
|
10.28
|
|
|
|
|
|
|
|
10.29
|
|
|
|
|
|
|
|
10.30
|
|
|
|
|
|
|
|
10.31
|
|
|
|
|
|
|
|
10.32
|
|
|
|
|
|
|
|
10.33
|
|
|
|
|
|
|
|
10.34
|
|
|
|
|
|
|
|
10.35
|
|
|
|
|
|
|
|
10.36
|
|
|
|
|
|
|
|
10.37
|
|
|
|
|
|
|
|
10.38
|
|
|
|
|
|
|
|
10.39
|
|
|
|
|
|
|
|
10.40
|
|
|
|
|
|
|
|
10.41
|
|
|
|
|
|
|
|
11
|
|
|
|
|
|
|
|
21.1
|
|
|
|
|
|
|
|
23.1
|
|
|
|
|
|
|
|
24.1
|
|
|
|
|
|
|
|
31.1
|
|
|
|
|
|
|
|
31.2
|
|
|
|
|
|
|
|
32.1
|
|
|
|
|
|
|
|
32.2
|
|
|
|
|
|
|
|
101
|
|
The following materials from the Registrant's Annual Report on Form 10-K for the year ended December 31, 2018, are formatted in XBRL (eXtensible Business Reporting Language); (i) Consolidated Statements of Financial Condition as of December 31, 2018 and 2017, (ii) Consolidated Statements of Operations for the years ended December 31, 2018, 2017 and 2016, (iii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2018, 2017 and 2016, (iv) Consolidated Statements of Changes in Equity for the years ended December 31, 2018, 2017 and 2016, (v) Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017 and 2016, and (vi) Notes to Consolidated Financial Statements (filed herewith)
|
|
(1)
|
Incorporated by Reference to the Registrant's Registration Statement on Form S-1 (Registration No. 333-134087), as amended, originally filed with the SEC on May 12, 2006.
|
|
(2)
|
Incorporated by Reference to the Registrant's Quarterly Report on Form 10-Q (Commission File No. 001-32975), for the period ended June 30, 2006.
|
|
(3)
|
Incorporated by Reference to the Registrant's Current Report on Form 8-K (Commission File No. 001-32975), filed with the SEC on June 8, 2007.
|
|
(4)
|
Incorporated by Reference to the Registrant's Current Report on Form 8-K (Commission File No. 001-32975), filed with the SEC on February 12, 2008.
|
|
(5)
|
Incorporated by Reference to the Registrant's Current Report on Form 8-K (Commission File No. 001-32975), filed with the SEC on March 27, 2009.
|
|
(6)
|
Incorporated by Reference to the Registrant's Current Report on Form 8-K (Commission File No. 001-32975), filed with the SEC on May 22, 2009.
|
|
(7)
|
Incorporated by Reference to the Registrant's Current Report on Form 8-K (Commission File No. 001-32975), filed with the SEC on February 16, 2010.
|
|
(8)
|
Incorporated by Reference to the Registrant's Current Report on Form 8-K (Commission File No. 001-32975), filed with the SEC on March 5, 2010.
|
|
(9)
|
Incorporated by Reference to the Registrant's Registration Statement on Form S-3 (Registration No. 833-171487), as amended, originally filed with the SEC on December 30, 2010.
|
|
(10)
|
Incorporated by Reference to the Registrant's Current Report on Form 8-K (Commission File No. 001-32975), filed with the SEC on August 25, 2011.
|
|
(11)
|
Incorporated by Reference to the Registrant's Current Report on Form 8-K (Commission File No. 001-32975), filed with the SEC on November 14, 2011.
|
|
(12)
|
Incorporated by Reference to the Registrant's Annual Report on Form 10-K (Commission File No. 001-32975), filed with the SEC on February 29, 2012.
|
|
(13)
|
Incorporated by Reference to the Registrant's Current Report on Form 8-K (Commission File No. 001-32975), filed with the SEC on January 29, 2013.
|
|
(14)
|
Incorporated by Reference to the Registrant's Annual Report on Form 10-K (Commission File No. 001-32975), filed with the SEC on February 27, 2013.
|
|
(15)
|
Incorporated by Reference to the Registrant's Current Report on Form 8-K (Commission File No. 001-32975), filed with the SEC on June 20, 2013.
|
|
(16)
|
Incorporated by Reference to the Registrant's Annual Report on Form 10-K (Commission File No. 001-32975), filed with the SEC on February 28, 2014.
|
|
(17)
|
Incorporated by Reference to the Registrant's Current Report on Form 8-K (Commission File No. 001-32975), filed with the SEC on August 4, 2014.
|
|
(18)
|
Incorporated by Reference to the Registrant's Annual Report on Form 10-K (Commission File No. 001-32975), filed with the SEC on February 27, 2015.
|
|
(19)
|
Incorporated by Reference to the Registrant's Annual Report on Form 10-K (Commission File No. 001-32975), filed with the SEC on February 24, 2016.
|
|
(20)
|
Incorporated by Reference to the Registrant's Current Report on Form 8-K (Commission File No. 001-32975), filed with the SEC on March 31, 2016.
|
|
(21)
|
Incorporated by Reference to the Registrant's Current Report on Form 8-K (Commission File No. 001-32975), filed with the SEC on June 29, 2016.
|
|
(22)
|
Incorporated by Reference to Annex B to the Registrant's definitive proxy statement (Commission File No. 001-32975), filed with the SEC on April 28, 2016.
|
|
(23)
|
Incorporated by Reference to the Registrant's Current Report on Form 8-K (Commission File No. 001-32975), filed with the SEC on November 18, 2016.
|
|
(24)
|
Incorporated by Reference to the Registrant's Annual Report on Form 10-K (Commission File No. 001-32975), filed with the SEC on February 24, 2017.
|
|
(25)
|
Incorporated by Reference to the Registrant's Current Report on Form 8-K (Commission File No. 001-32975), filed with the SEC on June 20, 2017.
|
|
(26)
|
Incorporated by Reference to the Registrant's Current Report on Form 8-K (Commission File No. 001-32975), filed with the SEC on September 1, 2017.
|
|
(27)
|
Incorporated by Reference to the Registrant's Quarterly Report on Form 10-Q (Commission File No. 001-32975), for the period ended September 30, 2017.
|
|
(28)
|
Incorporated by Reference to the Registrant's Annual Report on Form 10-K (Commission File No. 001-32975), filed with the SEC on February 23, 2018.
|
|
*
|
Management contract or compensatory plan.
|
|
Item 16.
|
Form 10-K Summary
|
|
|
Evercore Inc.
|
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|
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|
|
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|
By:
|
/
S
/ R
OBERT
B. W
ALSH
|
|
|
Name:
|
Robert B. Walsh
|
|
|
Title:
|
Chief Financial Officer
|
|
Signature
|
|
Title
|
|
|
|
|
|
/s/ RALPH SCHLOSSTEIN
|
|
Chief Executive Officer (Principal Executive Officer) and Director
|
|
Ralph Schlosstein
|
|
|
|
|
|
|
|
/s/ JOHN S. WEINBERG
|
|
Chairman
|
|
John S. Weinberg
|
|
|
|
|
|
|
|
/s/ ROGER C. ALTMAN
|
|
Senior Chairman
|
|
Roger C. Altman
|
|
|
|
|
|
|
|
/s/ RICHARD I. BEATTIE
|
|
Director
|
|
Richard I. Beattie
|
|
|
|
|
|
|
|
/s/ ELLEN V. FUTTER
|
|
Director
|
|
Ellen V. Futter
|
|
|
|
|
|
|
|
/s/ GAIL BLOCK HARRIS
|
|
Director
|
|
Gail Block Harris
|
|
|
|
|
|
|
|
/s/ ROBERT B. MILLARD
|
|
Director
|
|
Robert B. Millard
|
|
|
|
|
|
|
|
/s/ WILLARD J. OVERLOCK, JR.
|
|
Director
|
|
Willard J. Overlock, Jr.
|
|
|
|
|
|
|
|
/s/ SIR SIMON M. ROBERTSON
|
|
Director
|
|
Sir Simon M. Robertson
|
|
|
|
|
|
|
|
/s/ WILLIAM J. WHEELER
|
|
Director
|
|
William J. Wheeler
|
|
|
|
|
|
|
|
/s/ SARAH K. WILLIAMSON
|
|
Director
|
|
Sarah K. Williamson
|
|
|
|
|
|
|
|
/s/ KENDRICK R. WILSON III
|
|
Director
|
|
Kendrick R. Wilson III
|
|
|
|
|
|
|
|
/s/ ROBERT B. WALSH
|
|
Chief Financial Officer (Principal Financial Officer)
|
|
Robert B. Walsh
|
|
|
|
|
|
|
|
/s/ PAUL PENSA
|
|
Controller (Principal Accounting Officer)
|
|
Paul Pensa
|
|
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
| FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
|---|
| DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
|---|
No information found
No Customers Found
No Suppliers Found
Price
Yield
| Owner | Position | Direct Shares | Indirect Shares |
|---|