Evercore Inc. (Parent Company Only) Financial Statements Evercore Inc. (Parent Company Only) Financial Statements

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Evercore Inc. (Parent Company Only) Financial Statements

EVERCORE INC.

(parent company only)

CONDENSED STATEMENTS OF FINANCIAL CONDITION

(dollars in thousands, except share data)



	December 31,
	2019			2018
ASSETS
Equity Investment in Subsidiary	$	1,066,398		$	824,239
Deferred Tax Assets	244,965			223,936
Goodwill	15,236			15,236
Other Assets	18,704			—
TOTAL ASSETS	$	1,345,303		$	1,063,411
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Current Liabilities
Payable to Related Party	$	9,570		$	9,161
Taxes Payable	—			30,749
Other Current Liabilities	6,003			2,358
Total Current Liabilities	15,573			42,268
Amounts Due Pursuant to Tax Receivable Agreements	84,952			94,411
Long-term Debt - Notes Payable	375,062			168,612
TOTAL LIABILITIES	475,587			305,291
Stockholders' Equity
Common Stock
Class A, par value $0.01 per share (1,000,000,000 shares authorized, 68,698,675 and 65,872,014 issued at December 31, 2019 and 2018, respectively, and 39,176,010 and 39,748,576 outstanding at December 31, 2019 and 2018, respectively)	687			659
Class B, par value $0.01 per share (1,000,000 shares authorized, 84 and 86 issued and outstanding at December 31, 2019 and 2018, respectively)	—			—
Additional Paid-In-Capital	2,016,524			1,818,100
Accumulated Other Comprehensive Income (Loss)	(27,596		)	(30,434		)
Retained Earnings	558,269			364,882
Treasury Stock at Cost (29,522,665 and 26,123,438 shares at December 31, 2019 and 2018, respectively)	(1,678,168		)	(1,395,087		)
TOTAL STOCKHOLDERS' EQUITY	869,716			758,120
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,345,303		$	1,063,411

See notes to parent company only financial statements.

EVERCORE INC.

(parent company only)

CONDENSED STATEMENTS OF OPERATIONS



	For the Years Ended December 31,
	2019		2018		2017
REVENUES
Other Revenue, Including Interest and Investments	$	12,915	$	9,202	$	86,784
TOTAL REVENUES	12,915		9,202		86,784
Interest Expense	12,915		9,202		9,249
NET REVENUES	—		—		77,535
EXPENSES
TOTAL EXPENSES	—		—		—
OPERATING INCOME	—		—		77,535
Equity in Income of Subsidiary	383,717		473,978		287,440
Provision for Income Taxes	86,281		96,738		239,521
NET INCOME	$	297,436	$	377,240	$	125,454

See notes to parent company only financial statements.

EVERCORE INC.

(parent company only)

CONDENSED STATEMENTS OF CASH FLOWS



	For the Years Ended December 31,
	2019			2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	297,436		$	377,240		$	125,454
Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities:
Undistributed Income of Subsidiary	(383,717		)	(473,978		)	(209,905		)
Adjustment to Tax Receivable Agreement	—			—			(77,535		)
Deferred Taxes	(3,966		)	(5,311		)	153,344
Accretion on Long-term Debt	336			265			250
(Increase) Decrease in Operating Assets:
Other Assets	(18,704		)	9,689			(9,689		)
Increase (Decrease) in Operating Liabilities:
Taxes Payable	(30,749		)	30,749			(21,341		)
Net Cash Provided by (Used in) Operating Activities	(139,364		)	(61,346		)	(39,422		)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in Subsidiary	30,449			138,648			95,943
Net Cash Provided by Investing Activities	30,449			138,648			95,943
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of Notes Payable	205,718			—			—
Dividends	(96,803		)	(77,302		)	(56,521		)
Net Cash Provided by (Used in) Financing Activities	108,915			(77,302		)	(56,521		)
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	$	14,642		$	12,288		$	9,815

See notes to parent company only financial statements.

EVERCORE INC.

(parent company only)

NOTES TO CONDENSED FINANCIAL STATEMENTS

Note A – Organization

Evercore Inc. (the "Company") was incorporated as a Delaware corporation on July 21, 2005. The Company did not begin meaningful operations until the reorganization discussed below. Pursuant to a reorganization into a holding company structure, the Company became a holding company and its sole asset is a controlling equity interest in Evercore LP. As the sole general partner of Evercore LP, the Company operates and controls all of the business and affairs of Evercore LP and, through Evercore LP and its subsidiaries, continues to conduct the business now conducted by these subsidiaries.

Note B – Significant Accounting Policies

Basis of Presentation. The Statements of Financial Condition, Operations and Cash Flows have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").

Equity Investment in Subsidiary and Equity in Income of Subsidiary. Equity Investment in Subsidiary includes the Company's receivable from Evercore LP for senior notes owed by Evercore LP to the Company having similar terms as described below in Note D – issuance of Notes Payable. The Equity in Income of Subsidiary represents the Company's share of income from Evercore LP.

Note C – Stockholders' Equity

The Company is authorized to issue 1,000,000 shares of Class A common stock ("Class A Shares"), par value $0.01 per share, and 1,000 shares of Class B common stock, par value $0.01 per share. All Class A Shares and shares of Class B common stock vote together as a single class. At December 31, 2019, the Company has issued 68,699 Class A Shares. The Company canceled one share of Class B common stock, which was held by a limited partner of Evercore LP during 2019. During 2019, the Company purchased 1,039 Class A Shares primarily from employees at market values ranging from $71.11 to $96.22 per share primarily for the net settlement of stock-based compensation awards and 2,360 Class A Shares at market values ranging from $73.18 to $92.33 per share pursuant to the Company's share repurchase program. The result of these purchases was an increase in Treasury Stock of $283,081 on the Company's Statement of Financial Condition as of December 31, 2019. During the year ended December 31, 2019, the Company declared and paid dividends of $2.24 per share, totaling $89,407, which were wholly funded by the Company's sole subsidiary, Evercore LP, and accrued deferred cash dividends on unvested RSUs, totaling $14,642. During the year ended December 31, 2019, the Company also paid deferred cash dividends of $7,396, which were wholly funded by the Company's sole subsidiary, Evercore LP. Dividends are paid and treasury shares are repurchased by a subsidiary of Evercore Inc.

As discussed in Note 19 to the consolidated financial statements, both the Evercore LP partnership units and restricted stock units are exchangeable into Class A Shares on a one-for-one basis once vested.

Note D – Issuance of Notes Payable

On March 30, 2016, the Company issued an aggregate of $170,000 of senior notes (the "2016 Private Placement Notes"), including: $38,000 aggregate principal amount of its 4.88% Series A senior notes due 2021, $67,000 aggregate principal amount of its 5.23% Series B senior notes due 2023, $48,000 aggregate principal amount of its 5.48% Series C senior notes due 2026 and $17,000 aggregate principal amount of its 5.58% Series D senior notes due 2028, pursuant to a note purchase agreement dated as of March 30, 2016, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.

On August 1, 2019, the Company issued $175,000 and £25,000 of senior unsecured notes (the "2019 Private Placement Notes"), through private placement. These notes reflect a weighted average life of 12 years and a weighted average stated interest rate of 4.26%. These notes include: $75,000 aggregate principal amount of its 4.34% Series E senior notes due 2029, $60,000 aggregate principal amount of its 4.44% Series F senior notes due 2031, $40,000 aggregate principal amount of its 4.54% Series G senior notes due 2033 and £25,000 aggregate principal amount of its 3.33% Series H senior notes due 2033, each of which were issued pursuant to a note purchase agreement dated as of August 1, 2019, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.

Note E – Commitments and Contingencies

As of December 31, 2019, as discussed in Note 14 to the consolidated financial statements, the Company estimates the contractual obligations related to the 2016 and 2019 Private Placement Notes to be $519,690. Pursuant to the 2016 and 2019 Private Placement Notes, the Company expects to make payments to the notes' holders of $19,871 within one year or less, $70,587 in one to three years, $93,404 in three to five years and $335,828 after five years.

As of December 31, 2019, as discussed in Note 20 to the consolidated financial statements, the Company estimates the contractual obligations related to the Tax Receivable Agreement to be $94,522. The company expects to pay to the counterparties to the Tax Receivable Agreement $9,570 within one year or less, $19,994 in one to three years, $19,863 in three to five years and $45,095 after five years.