E V E R C O R E

			Second Quarter Results																		Year to Date Results
			U.S. GAAP									Adjusted									U.S. GAAP									Adjusted
			Q2 2022			Q2 2021						Q2 2022			Q2 2021						YTD 2022			YTD 2021						YTD 2022			YTD 2021
Net Revenues ($ mm)			$	630.9		$	687.9					$	637.4		$	691.2					$	1,353.8		$	1,350.2					$	1,365.8		$	1,361.1
Operating Income ($ mm)			$	146.2		$	207.0					$	153.2		$	210.3					$	355.5		$	401.2					$	368.1		$	412.1
Net Income Attributable to Evercore Inc. ($ mm)			$	95.6		$	140.4					$	107.8		$	154.0					$	253.6		$	284.7					$	281.1		$	316.5
Diluted Earnings Per Share			$	2.33		$	3.21					$	2.46		$	3.17					$	6.13		$	6.46					$	6.29		$	6.47
Compensation Ratio			61.7		%	59.3		%				61.0		%	59.0		%				60.5		%	59.5		%				59.9		%	59.0		%
Operating Margin			23.2		%	30.1		%				24.0		%	30.4		%				26.3		%	29.7		%				27.0		%	30.3		%
Effective Tax Rate			26.0		%	22.1		%				27.0		%	24.7		%				20.4		%	19.2		%				21.2		%	21.0		%

NEW YORK, July 27, 2022 – Evercore Inc. (NYSE: EVR) today announced its results for the second quarter ended June 30, 2022.

John S. Weinberg, Chairman and Chief Executive Officer, "Despite today’s uncertain environment, we accomplished a solid second quarter and first half of 2022. While our backlogs remain strong, we recognize the increased risk associated with the current geopolitical, economic, and market headwinds. We remain confident in our growth strategy and believe that the investments in our business will allow us to continue to achieve success for our clients, firm, and shareholders. As it relates to talent, we are pleased to have seven Advisory Senior Managing Directors join this year. Further, we remain committed to our capital return strategy and will continue to return capital to shareholders while maintaining a durable balance sheet."

Roger C. Altman, Founder and Senior Chairman, "Evercore has continued to execute very well. And, historically, during complex environments like this, we improve our market share. That is our goal again here."

Evercore's Adjusted Diluted Shares Outstanding for the three and six months ended June 30, 2022 were higher than U.S. GAAP, as a result of the inclusion of certain Evercore LP Units and Unvested Restricted Stock Units.

Advisory Fees – Second quarter Advisory Fees increased $15.4 million, or 3%, year-over-year, reflecting growth in average fee size during the second quarter of 2022. Year-to-date Advisory Fees increased $128.1 million, or 12%, year-over-year, reflecting growth in average fee size during 2022.

Commissions and Related Revenue – Second quarter Commissions and Related Revenue increased $1.8 million, or 3%, year-over-year, primarily reflecting higher trading volumes. Year-to-date Commissions and Related Revenue decreased $0.9 million, or 1%, year-over-year, primarily reflecting lower trading volumes, partially offset by increased revenues from research subscriptions.

Asset Management and Administration Fees – Second quarter Asset Management and Administration Fees decreased $0.2 million, or 1%, year-over-year, driven by a decrease in fees from Wealth Management clients as associated AUM decreased 6%, primarily from market depreciation. Year-to-date Asset Management and Administration Fees increased $2.0 million, or 6%, year-over-year, driven by an increase in fees from Wealth Management clients.

Other Revenue – Second quarter Other Revenue, net, decreased $39.4 million year-over-year, primarily reflecting a shift from gains of $9.8 million to losses of $26.4 million on our investment funds portfolio due to the overall market decline. The portfolio is used as an economic hedge against our deferred cash compensation program. The decrease was also driven by a $4.4 million gain on the redemption of the G5 debt security in the second quarter of 2021. Year-to-date Other Revenue, net, decreased $48.1 million year-over-year, primarily reflecting a shift from gains of $16.0 million to losses of $31.5 million on our investment funds portfolio due to the overall market decline. The decrease was also driven by a $4.4 million gain on the redemption of the G5 debt security in the second quarter of 2021. This was partially offset by a $1.3 million gain on the sale of a portion of our interests in ABS during the first quarter of 2022.

Employee Compensation and Benefits – Second quarter Employee Compensation and Benefits decreased $18.8 million, or 5%, year-over-year, reflecting a compensation ratio of 61.7% for the quarter versus 59.3% for the prior year period. The decrease in Employee Compensation and Benefits compared to the prior year period principally reflects a lower accrual for incentive compensation, partially offset by higher base salaries, costs associated with investments in new hires and an increase in the amortization of prior period deferred compensation awards. Year-to-date Employee Compensation and Benefits increased $15.5 million, or 2%, year-over-year, reflecting a year-to-date compensation ratio of 60.5% versus 59.5% for the prior year period. The increase in Employee Compensation and Benefits compared to the prior year period principally reflects higher base salaries and costs associated with investments in new hires, as well as an increase in the amortization of prior period deferred compensation awards, partially offset by a lower accrual for incentive compensation. The Compensation Ratio was also impacted by the lower performance of our investment funds portfolio during the current year period. See "Deferred Compensation" for more information.

Non-Compensation Costs – Second quarter Non-Compensation Costs increased $22.2 million, or 30%, year-over-year, primarily driven by an increase in travel and related expenses, as travel began to resume during the fourth quarter of 2021, higher professional fees, including fee sharing agreements with sub advisors, as well as an increase in bad debt expense compared to a reversal of bad debt expense in the prior year period.

The second quarter Non-Compensation ratio of 15.1% increased from 10.6% for the prior year period. Year-to-date Non-Compensation Costs increased $33.2 million, or 23%, year-over-year, primarily driven by an increase in travel and related expenses, as travel began to resume during the fourth quarter of 2021, higher professional fees, including fee sharing agreements with sub advisors, as well as an increase in bad debt expense compared to a reversal of bad debt expense in the prior year period. The year-to-date Non-Compensation ratio of 13.2% increased from 10.8% for the prior year period.

Special Charges, Including Business Realignment Costs – Second quarter and year-to-date 2022 Special Charges, Including Business Realignment Costs, relate to charges associated with the prepayment of the Company's Series B Notes during the second quarter, as well as certain professional fees related to the ongoing liquidation of the Company's operations in Mexico.

The second quarter effective tax rate was 26.0% versus 22.1% for the prior year period. The year-to-date effective tax rate was 20.4% versus 19.2% for the prior year period. The effective tax rate is principally impacted by the deduction associated with the appreciation in the Firm's share price upon vesting of employee share-based awards above the original grant price. The year-to-date provision for income taxes reflects an additional tax benefit of $19.8 million versus $17.0 million for the prior year period, due to the net impact associated with the appreciation in our share price upon vesting of employee share-based awards above the original grant price.

Advisory Fees – Second quarter adjusted Advisory Fees increased $15.0 million, or 3%, year-over-year, reflecting growth in average fee size during the second quarter of 2022. Year-to-date adjusted Advisory Fees increased $127.9 million, or 12%, year-over-year, reflecting growth in average fee size during 2022.

Commissions and Related Revenue – Second quarter Commissions and Related Revenue increased $1.8 million, or 3%, year-over-year, primarily reflecting higher trading volumes. Year-to-date Commissions and Related Revenue decreased $0.9 million, or 1%, year-over-year, primarily reflecting lower trading volumes, partially offset by increased revenues from research subscriptions.

Asset Management and Administration Fees – Second quarter adjusted Asset Management and Administration Fees decreased $1.0 million, or 5%, year-over-year, primarily attributed to a 26% decrease in equity in earnings of affiliates, driven by lower income earned by ABS, principally reflecting a decrease in our ownership following the sale of a portion of our interests during the first quarter. The decrease was also driven by a decrease in fees from Wealth Management clients, as associated AUM decreased 6%, primarily from market depreciation. Year-to-date adjusted Asset Management and Administration Fees increased $0.5 million, or 1%, year-over-year, primarily driven by an increase in fees from Wealth Management clients. This was partially offset by a 25% decrease in equity in earnings of affiliates, driven by lower income earned by ABS, principally reflecting a decrease in our ownership following the sale of a portion of our interests during the first quarter.

Other Revenue – Second quarter adjusted Other Revenue, net, decreased $35.1 million year-over-year, primarily reflecting a shift from gains of $9.8 million to losses of $26.4 million on our investment funds portfolio due to the overall market decline. The portfolio is used as an economic hedge against our deferred cash compensation program. Year-to-date adjusted Other Revenue, net, decreased $45.4 million year-over-year, primarily reflecting a shift from gains of $16.0 million to losses of $31.5 million on our investment funds portfolio due to the overall market decline.

Employee Compensation and Benefits – Second quarter adjusted Employee Compensation and Benefits decreased $18.8 million, or 5%, year-over-year, reflecting a compensation ratio of 61.0% for the quarter versus 59.0% for the prior year period. The decrease in Employee Compensation and Benefits compared to the prior year period principally reflects a lower accrual for incentive compensation, partially offset by higher base salaries, costs associated with investments in new hires and an increase in the amortization of prior period deferred compensation awards. Year-to-date adjusted Employee Compensation and Benefits increased $15.5 million, or 2%, year-over-year, reflecting a year-to-date adjusted compensation ratio of 59.9% versus 59.0% for the prior year period. The increase in Employee Compensation and Benefits compared to the prior year period principally reflects higher base salaries and costs associated with investments in new hires, as well as an increase in the amortization of prior period deferred compensation awards, partially offset by a lower accrual for incentive compensation. The adjusted Compensation Ratio was also impacted by the lower performance of our investment funds portfolio during the current year period. See "Deferred Compensation" for more information.

Non-Compensation Costs – Second quarter adjusted Non-Compensation Costs increased $22.2 million, or 30%, year-over-year, primarily driven by an increase in travel and related expenses, as travel began to resume during the fourth quarter of 2021, higher professional fees, including fee sharing agreements with sub advisors, as well as an increase in bad debt expense compared to a reversal of bad debt expense in the prior year period. The second quarter adjusted Non-Compensation ratio of 14.9% increased from 10.6% for the prior year period. Year-to-date adjusted Non-Compensation Costs increased $33.2 million, or 23%, year-over-year, primarily driven by an increase in travel and related expenses, as travel began to resume during the fourth quarter of 2021, higher professional fees, including fee sharing agreements with sub advisors, as well as an increase in bad debt expense compared to a reversal of bad debt expense in the prior year period. The year-to-date adjusted Non-Compensation ratio of 13.1% increased from 10.7% for the prior year period.

The second quarter adjusted effective tax rate was 27.0% versus 24.7% for the prior year period. The year-to-date adjusted effective tax rate was 21.2% versus 21.0% for the prior year period. The adjusted effective tax rate is principally impacted by the deduction associated with the appreciation in the Firm's share price upon vesting of employee share-based awards above the original grant price. The year-to-date adjusted provision for income taxes for 2022 reflects an additional tax benefit of $20.3 million versus $18.1 million for the prior year period, due to the net impact associated with the appreciation in our share price upon vesting of employee share-based awards above the original grant price.

 

The Company continues to maintain a strong balance sheet. As of June 30, 2022, cash and cash equivalents were $444.3 million, investment securities and certificates of deposit were $1.1 billion and current assets exceeded current liabilities by $1.4 billion. Amounts due related to the Notes Payable were $371.7 million at June 30, 2022.

On June 28, 2022, the Company refinanced its Series B Notes through the issuance of $67 million aggregate principal amount of 4.61% Series J senior notes due November 15, 2028 through private placement. The Company incurred charges during the quarter related to the prepayment and acceleration of the remaining debt issuance costs related to the Series B Notes, which has been recorded as Special Charges, Including Business Realignment Costs, and are excluded from our Adjusted results.

As of June 30, 2022 and 2021, the Company employed approximately 2,135 and 1,900 people, respectively, worldwide.

As of June 30, 2022 and 2021, the Company employed 174(1) and 149(2) total Senior Managing Directors, respectively, in its Investment Banking business, of which 134(1) and 109(2), respectively, were Advisory Senior Managing Directors.

(1) Senior Managing Director headcount as of June 30, 2022, adjusted to include two Advisory Senior Managing Directors that joined in July 2022 and two additional Advisory Senior Managing Directors committed to join in 2022.

(2) Senior Managing Director headcount as of June 30, 2021, adjusted for three additional Advisory Senior Managing Directors committed to join in 2021.

Year-to-date, the Company granted to certain employees approximately 2.9 million unvested restricted stock units ("RSUs") (including 2.5 million granted in conjunction with the 2021 bonus awards) with a grant date fair value of approximately $359.5 million.

In addition, during the first quarter of 2022, the Company granted approximately $124 million of deferred cash awards to certain employees, related to our deferred cash compensation program, principally pursuant to 2021 bonus awards.

The Company recognized compensation expense related to RSUs and our deferred cash compensation program of $96.3 million and $187.5 million for the three and six months ended June 30, 2022, respectively, and $94.6 million and $177.5 million for the three and six months ended June 30, 2021, respectively.

As of June 30, 2022, the Company has approximately 5.8 million unvested RSUs with an aggregate grant date fair value of $660.5 million. RSUs are expensed over the service period of the award, subject to retirement eligibility, and generally vest over four years.

As of June 30, 2022, the Company expects to pay an aggregate of $302.3 million related to our deferred cash compensation program at various dates through 2026, subject to certain vesting events. Amounts due pursuant to this program are expensed over the service period of the award, subject to retirement eligibility, and are reflected in Accrued Compensation and Benefits, a component of current liabilities.

On July 26, 2022, the Board of Directors of Evercore declared a quarterly dividend of $0.72 per share to be paid on September 9, 2022 to common stockholders of record on August 26, 2022.

During the second quarter, the Company repurchased approximately 0.1 million shares from employees for the net settlement of stock-based compensation awards at an average price per share of $110.92, and approximately 1.5 million shares at an average price per share of $109.92 in open market transactions pursuant to the Company's share repurchase program. The aggregate approximately 1.6 million shares were acquired at an average price per share of $109.96. Year-to-date, the Company repurchased approximately 1.0 million shares from employees for the net settlement of stock-based compensation awards at an average price per share of $127.99, and approximately 2.6 million shares at an average price per share of $117.18 in open market transactions pursuant to the Company's share repurchase program. The aggregate approximately 3.6 million shares were acquired at an average price per share of $120.13.

Evercore will host a related conference call beginning at 8:00 a.m. Eastern Time, Wednesday, July 27, 2022, accessible via telephone and the Internet. Investors and analysts may participate in the live conference call by registering for the call to receive the dial-in numbers and unique PIN to access the call. Please register at least 10 minutes before the conference call begins. The registration page can be accessed through the following link: https://register.vevent.com/register/BI9220b62372a34bd5ac01d3c9b244879f

A live audio webcast of the conference call will be available on the For Investors section of Evercore’s website at www.evercore.com. The webcast will be archived on Evercore’s website for 30 days after the call.

Evercore (NYSE: EVR) is a premier global independent investment banking advisory firm. We are dedicated to helping our clients achieve superior results through trusted independent and innovative advice on matters of strategic significance to boards of directors, management teams and shareholders, including mergers and acquisitions, strategic shareholder advisory, restructurings, and capital structure. Evercore also assists clients in raising public and private capital and delivers equity research and equity sales and agency trading execution, in addition to providing wealth and investment management services to high net worth and institutional investors. Founded in 1995, the Firm is headquartered in New York and maintains offices and affiliate offices in major financial centers in the Americas, Europe, the Middle East and Asia. For more information, please visit www.evercore.com.

Investor Contact:    Katy Haber

Head of Investor Relations and ESG Our Adjusted results are a non-GAAP measure.

212-822-7554

Media Contact:    Dana Gorman

    Abernathy MacGregor, for Evercore

    212-371-5999

As discussed further under "Non-GAAP Measures", Evercore believes that the disclosed Adjusted measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare Evercore's results across several periods and better reflects how management views its operating results. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. A reconciliation of our U.S. GAAP results to Adjusted results is presented in the tables included in the following pages.

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which reflect our current views with respect to, among other things, Evercore's operations and financial performance. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "backlog," "believes," "expects," "potential," "probable," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. All statements, other than statements of historical fact, included in this release are forward-looking statements and are based on various underlying assumptions and expectations and are subject to known and unknown risks, uncertainties and assumptions, and may include projections of our future financial performance based on our growth strategies and anticipated trends in Evercore's business. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Evercore believes these factors include, but are not limited to, those described under "Risk Factors" discussed in Evercore's Annual Report on Form 10-K for the year ended December 31, 2021, subsequent quarterly reports on Form 10-Q, current reports on Form 8-K and Registration Statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release. In addition, new risks and uncertainties emerge from time to time, and it is not possible for Evercore to predict all risks and uncertainties, nor can Evercore assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results and Evercore does not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. Evercore undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

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

1.Assumed Exchange of Evercore LP Units into Class A Shares. The Adjusted results assume substantially all Evercore LP Units have been exchanged for Class A shares. Accordingly, the noncontrolling interest related to these units is converted to a controlling interest. The Company's management believes that it is useful to provide the per-share effect associated with the assumed conversion of substantially all of these previously granted equity interests and IPO related restricted stock units, and thus the Adjusted results reflect their exchange into Class A shares.

2.Adjustments Associated with Business Combinations and Divestitures. The following charges resulting from business combinations and divestitures have been excluded from the Adjusted results because the Company's Management believes that operating performance is more comparable across periods excluding the effects of these acquisition-related charges:

a.Acquisition and Transition Costs. Primarily professional fees incurred and costs related to transitioning acquisitions or divestitures.

b.Gain on Sale of Interests in ABS. The gain on the sale of a portion of the Company's interests in ABS in the first quarter of 2022 is excluded from the Adjusted presentation.

c.Gain on Redemption of G5 Debt Security. The gain on the redemption of the G5 debt security in the second quarter of 2021 is excluded from the Adjusted presentation.

3.Special Charges, Including Business Realignment Costs. Expenses during 2022 that are excluded from the Adjusted presentation relate to charges associated with the prepayment of the Company's Series B Notes during the second quarter, as well as certain professional fees related to the ongoing liquidation of the Company's operations in Mexico.

4.Income Taxes. Evercore is organized as a series of Limited Liability Companies, Partnerships, C-Corporations and a Public Corporation in the U.S. as the ultimate parent. Certain of the subsidiaries, particularly Evercore LP, have noncontrolling interests held by management or former members of management. As a result, not all of the Company’s income is subject to corporate level taxes and certain other state and local taxes are levied. The assumption in the Adjusted earnings presentation is that substantially all of the noncontrolling interest is eliminated through the exchange of Evercore LP units into Class A common stock of the ultimate parent. As a result, the Adjusted earnings presentation assumes that the allocation of earnings to Evercore LP’s noncontrolling interest holders is substantially eliminated and is therefore subject to statutory tax rates of a C-Corporation under a conventional tax structure in the U.S. and that certain state and local taxes are reduced accordingly.

5.Presentation of Interest Expense. The Adjusted results present Adjusted Investment Banking Operating Income before interest expense on debt, which is included in interest expense on a U.S. GAAP basis.

6.Presentation of Income from Equity Method Investments. The Adjusted results present Income from Equity Method Investments within Revenue as the Company's Management believes it is a useful presentation.

EVERCORE INC.
U.S. GAAP RECONCILIATION TO ADJUSTED NON-COMPENSATION COSTS
(dollars in thousands)
(UNAUDITED)
			Three Months Ended June 30, 2022
			U.S. GAAP						Adjustments						Adjusted
			(dollars in thousands)
Occupancy and Equipment Rental			$	19,608					$	—					$	19,608
Professional Fees			27,767						—						27,767
Travel and Related Expenses			14,786						—						14,786
Communications and Information Services			14,384						—						14,384
Depreciation and Amortization			6,597						—						6,597
Execution, Clearing and Custody Fees			2,631						—						2,631
Other Operating Expenses			9,459						—						9,459
Total Non-Compensation Costs			$	95,232					$	—					$	95,232
			Three Months Ended June 30, 2021
			U.S. GAAP						Adjustments						Adjusted
			(dollars in thousands)
Occupancy and Equipment Rental			$	17,513					$	—					$	17,513
Professional Fees			21,401						—						21,401
Travel and Related Expenses			3,715						—						3,715
Communications and Information Services			14,080						—						14,080
Depreciation and Amortization			7,151						—						7,151
Execution, Clearing and Custody Fees			2,913						—						2,913
Other Operating Expenses			6,281						—						6,281
Total Non-Compensation Costs			$	73,054					$	—					$	73,054
			Six Months Ended June 30, 2022
			U.S. GAAP						Adjustments						Adjusted
			(dollars in thousands)
Occupancy and Equipment Rental			$	38,785					$	—					$	38,785
Professional Fees			51,913						—						51,913
Travel and Related Expenses			22,612						—						22,612
Communications and Information Services			30,412						—						30,412
Depreciation and Amortization			13,707						—						13,707
Execution, Clearing and Custody Fees			5,428						—						5,428
Other Operating Expenses			16,130						—						16,130
Total Non-Compensation Costs			$	178,987					$	—					$	178,987
			Six Months Ended June 30, 2021
			U.S. GAAP						Adjustments						Adjusted
			(dollars in thousands)
Occupancy and Equipment Rental			$	36,222					$	—					$	36,222
Professional Fees			43,008						—						43,008
Travel and Related Expenses			6,007						—						6,007
Communications and Information Services			28,109						—						28,109
Depreciation and Amortization			13,792						—						13,792
Execution, Clearing and Custody Fees			6,465						—						6,465
Acquisition and Transition Costs			7						(7)			(6)			—
Other Operating Expenses			12,156						—						12,156
Total Non-Compensation Costs			$	145,766					$	(7)					$	145,759