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Press release from Business Wire

Evercore Partners Reports Second Quarter 2012 Results; Quarterly Dividend of $0.20 Per Share

<p> <span class='bwuline'><b>Highlights</b></span> </p> <ul> <li class='bwlistitemmargb'> <b>Second Quarter Financial Summary</b> <ul> <li class='bwlistitemmargb'> <b>Record Adjusted Pro Forma Net Revenues of $172.1 million, up 23% year-over-year and 63% in comparison to the prior quarter</b> </li> <li class='bwlistitemmargb'> <b>Record Adjusted Pro Forma Net Income from Continuing Operations of $21.2 million, or $0.49 per share, up 19% and 391% compared to Q2 2011 and Q1 2012, respectively </b> </li> <li class='bwlistitemmargb'> <b>U.S. GAAP Net Revenues of $172.5 million, up 22% and 68% compared to Q2 2011 and Q1 2012, respectively</b> </li> <li class='bwlistitemmargb'> <b>U.S. GAAP Net Income from Continuing Operations of $7.9 million, or $0.25 per share, up from $2.3 million or $0.08 per share in the same period last year</b> </li> </ul> </li> <li class='bwlistitemmargb'> <b>Year-to-Date Financial Summary</b> <ul> <li class='bwlistitemmargb'> <b>Record Adjusted Pro Forma Net Revenues of $277.6 million, up 13% compared to the same period in 2011</b> </li> <li class='bwlistitemmargb'> <b>Adjusted Pro Forma Net Income from Continuing Operations of $25.5 million, or $0.58 per share, down 13% compared to the same period in 2011</b> </li> <li class='bwlistitemmargb'> <b>U.S. GAAP Net Revenues of $275.3 million, up 11% compared to the same period in 2011</b> </li> <li class='bwlistitemmargb'> <b>U.S. GAAP Net Income from Continuing Operations of $4.6 million, or $0.14 per share, down from $6.0 million, or $0.22 per share, in the same period last year</b> </li> </ul> </li> <li class='bwlistitemmargb'> <b>Investment Banking</b> <ul> <li class='bwlistitemmargb'> <b>Announced the expansion of Evercore into Canada</b> <ul> <li class='bwlistitemmargb'> <b>George Estey will join as a Senior Managing Director and Head of Canada</b> </li> </ul> </li> <li class='bwlistitemmargb'> <b>Continued to advise on prominent Advisory transactions, including:</b> <ul> <li class='bwlistitemmargb'> <b>Bristol-Myers Squibb's announced $6.8 billion acquisition of Amylin Pharmaceuticals and the sale of 50% of its interest ($3.4 billion) in Amlyin to AstraZeneca</b> </li> <li class='bwlistitemmargb'> <b>Suburban Propane Partners LP's announced acquisition of Inergy Propane LLC for $1.8 billion</b> </li> <li class='bwlistitemmargb'> <b>AOL's sale of its patent portfolio to Microsoft for $1.1 billion</b> </li> </ul> </li> </ul> </li> <li class='bwlistitemmargb'> <b>Investment Management </b> <ul> <li class='bwlistitemmargb'> <b>Assets Under Management in consolidated businesses were down 8% to $11.8 billion</b> </li> </ul> </li> <li class='bwlistitemmargb'> <b>Repurchased 1,015,000 shares during the quarter </b> </li> <li class='bwlistitemmargb'> <b>Quarterly dividend of $0.20 per share</b> </li> </ul>

Thursday, July 26, 2012

Evercore Partners Reports Second Quarter 2012 Results; Quarterly Dividend of $0.20 Per Share06:00 EDT Thursday, July 26, 2012 NEW YORK (Business Wire) -- Evercore Partners Inc. (NYSE: EVR) today announced that its Adjusted Pro Forma Net Revenues were $172.1 million for the quarter ended June 30, 2012, compared with $140.2 million and $105.5 million for the quarters ended June 30, 2011 and March 31, 2012, respectively. Adjusted Pro Forma Net Revenues of $277.6 million were a record for the first six months of the year, compared to $245.6 million for the six months ended June 30, 2011. Adjusted Pro Forma Net Income from Continuing Operations Attributable to Evercore Partners Inc. was $21.2 million, or $0.49 per share, for the quarter ended June 30, 2012, compared to $17.8 million, or $0.43 per share, for the quarter ended June 30, 2011 and $4.3 million, or $0.10 per share, for the quarter ended March 31, 2012. Adjusted Pro Forma Net Income from Continuing Operations Attributable to Evercore Partners Inc. was $25.5 million, or $0.58 per share, for the six months ended June 30, 2012, compared to $29.3 million, or $0.71 per share, for the six months ended June 30, 2011. U.S. GAAP Net Revenues were $172.5 million for the quarter ended June 30, 2012, compared to $141.2 million and $102.8 million for the quarters ended June 30, 2011 and March 31, 2012, respectively. U.S. GAAP Net Revenues were $275.3 million for the six months ended June 30, 2012, compared to $248.3 million for the six months ended June 30, 2011. U.S. GAAP Net Income (Loss) from Continuing Operations Attributable to Evercore Partners Inc. was $7.9 million, or $0.25 per share for the quarter ended June 30, 2012, compared to $2.3 million, or $0.08 per share, for the quarter ended June 30, 2011 and ($3.4) million, or ($0.12) per share, for the quarter ended March 31, 2012. U.S. GAAP Net Income from Continuing Operations Attributable to Evercore Partners Inc. was $4.6 million, or $0.14 per share, for the six months ended June 30, 2012, compared to $6.0 million, or $0.22 per share, for the six months ended June 30, 2011. The Adjusted Pro Forma compensation ratio for the current quarter was 60%, compared to 59% for the same period in 2011 and 63% for the quarter ended March 31, 2012. The Adjusted Pro Forma compensation ratio for the trailing twelve months was 60%, flat from the same period in 2011 and for the twelve months ended March 31, 2012. The U.S. GAAP compensation ratio for the three months ended June 30, 2012, June 30, 2011 and March 31, 2012 was 66%, 71% and 79%, respectively. The U.S. GAAP trailing twelve-month compensation ratio of 70% compares to 67% for the same period in 2011 and 71% for the twelve months ended March 31, 2012. Evercore's quarterly results may fluctuate significantly due to the timing and amount of transaction fees earned, as well as other factors. Accordingly, financial results in any particular quarter may not be representative of future results over a longer period of time. “We are generally pleased with our results, reporting record revenues for both the second quarter and the first half of 2012, and record net income for the quarter,” said Ralph Schlosstein, President and Chief Executive Officer. “Our Advisory business delivered particularly strong results, earning fees in excess of $1 million dollars from 30 transactions, also a record. In addition, each of our early stage Investment Banking businesses contributed positively to Operating Income in the quarter. Our international Investment Banking efforts continued to strengthen, as 32% of our revenues were generated serving clients outside of the United States in the first half of the year. Our independent, advice based, operating model continues to perform extremely well despite the challenging market environment, as we build market share, add talent and deliver value to our clients. And, our significant share repurchase volumes during the quarter demonstrate our commitment to providing strong returns to shareholders.” “It's impressive that our Investment Banking revenues for the first half of 2012 grew 23% while the global, dollar volume of completed transactions fell 30%. That signifies that Evercore continues to grow and gain market share. And, in turn, it reflects our steady and scrupulous recruiting of additional Senior Managing Directors. We have now entered the important Canadian market, with the addition of George Estey and the commitment to open a Toronto office. And, we expect to announce three additional Senior Managing Directors in overall banking during the next three months,” said Roger Altman, Executive Chairman. "Yes, the financial market environment is a challenging one, but our own backlog is strong."                                   Consolidated U.S. GAAP and Adjusted Pro Forma Selected Financial Data (Unaudited)     U.S. GAAPThree Months Ended% Change vs.Six Months EndedJune 30,2012March 31,2012June 30,2011March 31,2012June 30,2011June 30,2012June 30,2011% Change (dollars in thousands) Net Revenues $ 172,497 $ 102,798 $ 141,204 68 % 22 % $ 275,295 $ 248,302 11 % Operating Income (Loss) $ 21,195 $ (12,143 ) $ 11,615 NM 82 % $ 9,052 $ 23,379 (61 %) Net Income (Loss) from Continuing Operations Attributable to Evercore Partners Inc. $ 7,934 $ (3,368 ) $ 2,346 NM 238 % $ 4,566 $ 5,964 (23 %) Diluted Earnings (Loss) Per Share from Continuing Operations $ 0.25 $ (0.12 ) $ 0.08 NM 213 % $ 0.14 $ 0.22 (36 %) Compensation Ratio 66 % 79 % 71 % 71 % 68 % Operating Margin 12 % (12 %) 8 % 3 % 9 %     Adjusted Pro FormaThree Months Ended% Change vs.Six Months EndedJune 30,2012March 31,2012June 30,2011March 31,2012June 30,2011June 30,2012June 30,2011% Change   (dollars in thousands) Net Revenues $ 172,115 $ 105,521 $ 140,164 63 % 23 % $ 277,636 $ 245,634 13 % Operating Income $ 36,452 $ 8,931 $ 31,495 308 % 16 % $ 45,383 $ 52,857 (14 %) Net Income from Continuing Operations Attributable to Evercore Partners Inc. $ 21,185 $ 4,317 $ 17,833 391 % 19 % $ 25,502 $ 29,270 (13 %) Diluted Earnings Per Share from Continuing Operations $ 0.49 $ 0.10 $ 0.43 390 % 14 % $ 0.58 $ 0.71 (18 %) Compensation Ratio 60 % 63 % 59 % 61 % 59 % Operating Margin 21 % 8 % 22 % 16 % 22 %     The U.S. GAAP and Adjusted Pro Forma results for June 30, 2011 present the continuing operations of the Company, which exclude amounts related to Evercore Asset Management (“EAM”), whose operations were discontinued during the fourth quarter of 2011. See page A-1 for the full financial results of the Company including its discontinued operations. Throughout the discussion of Evercore's business segments, information is presented on an Adjusted Pro Forma basis, which is an unaudited non-generally accepted accounting principles (“non-GAAP”) measure. Adjusted Pro Forma 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 vested and unvested Evercore LP Units into Class A shares. Evercore believes that the disclosed Adjusted Pro Forma 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. Evercore 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.For more information about the Adjusted Pro Forma basis of reporting used by management to evaluate the performance of Evercore and each line of business, including reconciliations of U.S. GAAP results to an Adjusted Pro Forma basis, see pages A-2 through A-11 included in Annex I.These Adjusted Pro Forma amounts are allocated to the Company's two business segments: Investment Banking and Investment Management. Business Line Reporting A discussion of Adjusted Pro Forma revenues and expenses from continuing operations is presented below for the Investment Banking and Investment Management segments. Unless otherwise stated, all of the financial measures presented in this discussion are Adjusted Pro Forma measures. For a reconciliation of the Adjusted Pro Forma segment data to U.S. GAAP results, see pages A-2 to A-11 in Annex I. Investment Banking For the quarter ended June 30, 2012, Evercore's Investment Banking segment reported net revenues of $151.2 million, which represents an increase of 35% year-over-year and 78% sequentially. Operating income of $35.5 million increased by 32% from the same quarter last year and 373% from the prior quarter. Operating margins decreased to 23% from 24% in the second quarter of 2011. The Company had 58 Investment Banking Senior Managing Directors as of June 30, 2012.                   Adjusted Pro FormaThree Months EndedSix Months Ended     June 30, 2012March 31, 2012June 30, 2011June 30, 2012June 30, 2011 (dollars in thousands) Net Revenues: Investment Banking $ 151,397 $ 84,620 $ 111,847 $ 236,017 $ 192,048 Other Revenue, net   (187 )   360     339     173     719   Net Revenues   151,210     84,980     112,186     236,190     192,767     Expenses: Employee Compensation and Benefits 89,829 54,462 67,303 144,291 114,778 Non-compensation Costs   25,858     23,011     18,054     48,869     32,267   Total Expenses   115,687     77,473     85,357     193,160     147,045     Operating Income $ 35,523   $ 7,507   $ 26,829   $ 43,030   $ 45,722     Compensation Ratio 59 % 64 % 60 % 61 % 60 % Operating Margin 23 % 9 % 24 % 18 % 24 %     U.S. GAAPThree Months EndedSix Months Ended   June 30, 2012March 31, 2012June 30, 2011June 30, 2012June 30, 2011 (dollars in thousands) Net Revenues: Investment Banking $ 154,426 $ 84,495 $ 114,696 $ 238,921 $ 197,748 Other Revenue, net   (1,262 )   (710 )   (720 )   (1,972 )   (1,393 ) Net Revenues   153,164     83,785     113,976     236,949     196,355     Expenses: Employee Compensation and Benefits 100,754 68,229 81,345 168,983 134,707 Non-compensation Costs 29,165 26,854 21,506 56,019 39,821 Special Charges   662     -     -     662     -   Total Expenses   130,581     95,083     102,851     225,664     174,528     Operating Income (Loss) $ 22,583   $ (11,298 ) $ 11,125   $ 11,285   $ 21,827     Compensation Ratio 66 % 81 % 71 % 71 % 69 % Operating Margin 15 % (13 %) 10 % 5 % 11 %     Revenues For the three months ended June 30, 2012, Investment Banking revenues were $151.4 million, an increase of 35% from the second quarter of last year and 79% from the previous quarter. Investment Banking earned advisory fees from 137 clients (vs. 77 in Q2 2011 and 104 in Q1 2012) and fees in excess of $1 million from 30 transactions (vs. 21 in Q2 2011 and 17 in Q1 2012). The Institutional Equities business contributed revenues of $6.7 million, a 29% increase over the prior quarter. The Private Funds Group closed two capital raises during the quarter. Both of these businesses contributed marginally to profitability in the quarter. Expenses For the quarter ended June 30, 2012, compensation costs were $89.8 million, an increase of 33% from the second quarter of last year and 65% from the previous quarter. The trailing twelve-month compensation ratio was 60%, down from 61% in Q2 2011 and flat from Q1 2012. For the three months ended June 30, 2012, Evercore's Investment Banking compensation ratio was 59%, versus the compensation ratio reported for the three months ended June 30, 2011 and March 31, 2012 of 60% and 64%, respectively. Non-compensation costs for the current quarter of $25.9 million increased 43% from the same period last year and 12% from last quarter. The year-over-year increase in costs reflects the Lexicon acquisition and continued growth of the Investment Banking business. The sequential quarter-over-quarter increase was driven principally by higher occupancy and business development costs. The ratio of non-compensation costs to revenue for the current quarter was 17%, compared to 16% in the same quarter last year and 27% in the previous quarter. Expenses in the Institutional Equities business were $6.6 million for the second quarter, in line with first quarter expenses. Investment Management For the quarter ended June 30, 2012, Investment Management reported net revenues and operating income of $20.9 million and $0.9 million, respectively. Investment Management reported an operating margin of 4% for the current quarter. As of June 30, 2012, Investment Management had $11.8 billion of AUM.                   Adjusted Pro FormaThree Months EndedSix Months Ended     June 30, 2012March 31, 2012June 30, 2011June 30, 2012June 30, 2011 Net Revenues: (dollars in thousands) Investment Management Revenues $ 20,699 $ 20,388 $ 27,843 $ 41,087 $ 52,567 Other Revenue, net   206     153     135     359     300   Net Revenues   20,905     20,541     27,978     41,446     52,867     Expenses: Employee Compensation and Benefits 12,962 11,972 15,460 24,934 30,379 Non-compensation Costs   7,014     7,145     7,852     14,159     15,353   Total Expenses   19,976     19,117     23,312     39,093     45,732     Operating Income $ 929   $ 1,424   $ 4,666   $ 2,353   $ 7,135     Compensation Ratio 62 % 58 % 55 % 60 % 57 % Operating Margin 4 % 7 % 17 % 6 % 13 %     U.S. GAAPThree Months EndedSix Months Ended   June 30, 2012March 31, 2012June 30, 2011June 30, 2012June 30, 2011 Net Revenues: (dollars in thousands) Investment Management Revenues $ 20,036 $ 19,764 $ 27,987 $ 39,800 $ 53,431 Other Revenue, net   (703 )   (751 )   (759 )   (1,454 )   (1,484 ) Net Revenues   19,333     19,013     27,228     38,346     51,947     Expenses: Employee Compensation and Benefits 13,536 12,498 18,724 26,034 34,459 Non-compensation Costs   7,185     7,360     8,014     14,545     15,936   Total Expenses   20,721     19,858     26,738     40,579     50,395     Operating Income (Loss) $ (1,388 ) $ (845 ) $ 490   $ (2,233 ) $ 1,552     Compensation Ratio 70 % 66 % 69 % 68 % 66 % Operating Margin (7 %) (4 %) 2 % (6 %) 3 %     Revenues For the quarter ended June 30, 2012, Investment Management reported revenue of $20.7 million, which reflects a decrease from the same period last year of 26% and an increase from the previous quarter of 2%. AUM of $11.8 billion declined 8% in comparison to the first quarter on net outflows of ($0.7) billion and market depreciation of ($0.4) billion. AUM decreased by 27% from the same period last year, due primarily to outflows in our institutional business.                 Investment Management Revenue ComponentsAdjusted Pro FormaThree Months EndedSix Months Ended   June 30, 2012March 31, 2012June 30, 2011June 30, 2012June 30, 2011 Investment Advisory and Management Fees (dollars in thousands) Wealth Management $ 4,906 $ 4,525 $ 3,764 $ 9,431 $ 7,232 Institutional Asset Management (1) 12,415 12,466 17,562 24,881 35,376 Private Equity 1,810 1,735 1,714 3,545 3,429 Total Investment Advisory and Management Fees 19,131 18,726 23,040 37,857 46,037   Realized and Unrealized Gains (Losses) Institutional Asset Management 1,117 1,212 990 2,329 2,157 Private Equity (301) (307) 3,878 (608) 4,820 Total Realized and Unrealized Gains 816 905 4,868 1,721 6,977   Equity in Earnings (Loss) of Affiliates (2) 752 757 (65) 1,509 (447) Investment Management Revenues $ 20,699 $ 20,388 $ 27,843 $ 41,087 $ 52,567   (1) Management fees from Institutional Asset Management were $12.5 million, $12.6 million and $25.1 million for the three months ended June 30, 2012, March 31, 2012 and six months ended June 30, 2012, respectively, on a U.S. GAAP basis, excluding the reduction of revenues for client-related expenses. (2) Equity in Pan, G5 and ABS on a U.S. GAAP basis are reclassified from Investment Management Revenue to Income from Equity Method Investments.     The decline in revenue relative to the prior year was due to a decrease in both Investment Advisory and Management Fees, and in Realized and Unrealized Gains on investments. Investment Advisory and Management Fees of $19.1 million for the quarter ended June 30, 2012 declined compared to the same period a year ago, as higher fees in Wealth Management were offset by declines in Institutional Asset Management. Fees earned in the current quarter increased in comparison to the previous quarter driven principally by increased AUM in Wealth Management. Realized and Unrealized Gains of $0.8 million in the quarter declined by $4.1 million relative to the prior year, when significant gains were recognized from investments in Trilantic, and were down moderately relative to the prior quarter. Equity in earnings of affiliates of $0.8 million in the quarter was in line with the first quarter, but increased relative to the prior year reflecting an increased contribution from ABS Investment Management. Expenses Expenses for the quarter ended June 30, 2012 of $20.0 million decreased 14% from the same period last year and increased 4% from the previous quarter. The year-over-year decrease primarily reflects lower performance-based compensation expense consistent with the year-over-year decline in revenue. The sequential quarterly increase in expenses primarily reflects an increase in compensation based on the performance of individual business lines. Other U.S. GAAP Expenses Evercore's Adjusted Pro Forma Net Income Attributable to Evercore Partners Inc. for the three months ended June 30, 2012 was higher than U.S. GAAP as a result of the exclusion of expenses associated with the vesting of IPO equity awards and awards granted in conjunction with the Lexicon acquisition and certain business acquisition-related costs, including Special Charges. In addition, for Adjusted Pro Forma purposes, client related expenses and expenses associated with revenue-sharing engagements with third parties have been presented as a reduction from Revenues and Non-compensation costs. Further details of these expenses, as well as an explanation of similar expenses for the three months ended June 30, 2011 and the three months ended March 31, 2012, are included in Annex I, pages A-2 to A-11. Non-controlling Interests Non-controlling Interests in certain subsidiaries are owned by the principals and strategic investors in these businesses. Evercore's equity ownership percentages in these businesses range from 51% to 86%. For the periods ended June 30, 2012 and 2011 and March 31, 2012 the gain (loss) allocated to non-controlling interests was as follows:           Net Gain (Loss) Allocated to Noncontrolling InterestsThree Months Ended     Six Months EndedJune 30, 2012     March 31, 2012   June 30, 2011June 30, 2012June 30, 2011Segment (dollars in thousands) Investment Banking (1) $ 15 $ (278 ) $ (973 ) $ (263 ) $ (1,687 ) Investment Management (1)   170   274     866     444     1,795   Total $ 185 $ (4 ) $ (107 ) $ 181   $ 108       (1) The difference between Adjusted Pro Forma and U.S. GAAP Noncontrolling Interests relates primarily to intangible amortization expense for certain acquisitions which we excluded from the Adjusted Pro Forma results.     Income Taxes For the three and six months ended June 30, 2012, Evercore's Adjusted Pro Forma effective tax rate was 38%, compared to 40% for the three and six months ended June 30, 2011. For the three and six months ended June 30, 2012, Evercore's U.S. GAAP effective tax rate was approximately 45% and 42%, respectively, compared to 52% and 44%, respectively, for the three and six months ended June 30, 2011. The effective tax rate for U.S. GAAP purposes reflects significant adjustments relating to the tax treatment of certain compensation transactions, valuation allowances on deferred tax assets of non-U.S. subsidiaries as well as the non-controlling interest associated with Evercore LP Units. Balance Sheet The Company continues to maintain a strong balance sheet, holding cash, cash equivalents and marketable securities of $197.7 million at June 30, 2012. Current assets exceed current liabilities by $188.8 million at June 30, 2012. Amounts due related to the Long-Term Notes Payable were $100.5 million at June 30, 2012. During the quarter the Company repurchased approximately 1,015,000 shares at an average cost of $25.12 per share. Dividend On July 24, 2012, the Board of Directors of Evercore declared a quarterly dividend of $0.20 per share to be paid on September 7, 2012 to common stockholders of record on August 31, 2012. Conference Call Investors and analysts may participate in the live conference call by dialing (877) 261-8990 (toll-free domestic) or (847) 619-6441 (international); passcode: 32913532. Please register at least 10 minutes before the conference call begins. A replay of the call will be available for one week via telephone starting approximately one hour after the call ends. The replay can be accessed at (888) 843-7419 (toll-free domestic) or (630) 652-3042 (international); passcode: 32913532. A live webcast of the conference call will be available on the Investor Relations section of Evercore's website at www.evercore.com. The webcast will be archived on Evercore's website for 30 days after the call. About Evercore Partners Evercore Partners is a leading independent investment banking advisory firm. Evercore's Investment Banking business advises its clients on mergers, acquisitions, divestitures, restructurings, financings, public offerings, private placements and other strategic transactions and also provides institutional investors with high quality research, sales and trading execution that is free of the conflicts created by proprietary activities; Evercore's Investment Management business comprises wealth management, institutional asset management and private equity investing. Evercore serves a diverse set of clients around the world from its offices in New York, Boston, Chicago, Houston, Los Angeles, Minneapolis, San Francisco, Washington D.C., London, Aberdeen, Scotland, Mexico City and Monterrey, Mexico, Hong Kong and Rio de Janeiro and São Paulo, Brazil. More information about Evercore can be found on the Company's website at www.evercore.com. Basis of Alternative Financial Statement Presentation Adjusted Pro Forma results are a non-GAAP measure. Evercore believes that the disclosed Adjusted Pro Forma 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 reflect management's view of 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 U.S. GAAP results to Adjusted Pro Forma results is presented in the tables included in Annex I. Forward-Looking Statements 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,” “believes,” “expects,” “potential,” “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 presentation 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, 2011, 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. With respect to any securities offered by any private equity fund referenced herein, such securities have not been and will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.       ANNEX I           Schedule     Page Number Unaudited Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2012 and 2011     A-1 Adjusted Pro Forma:       Adjusted Pro Forma Results     A-2 U.S. GAAP Reconciliation to Adjusted Pro Forma (Unaudited)     A-4 Adjusted Pro Forma Segment Reconciliation to U.S. GAAP for the Three and Six Months ended June 30, 2012 (Unaudited)     A-6 Adjusted Pro Forma Segment Reconciliation to U.S. GAAP for the Three Months ended March 31, 2012 (Unaudited)     A-7 Adjusted Pro Forma Segment Reconciliation to U.S. GAAP for the Three and Six Months ended June 30, 2011 (Unaudited)     A-8 Notes to Unaudited Condensed Consolidated Adjusted Pro Forma Financial Data     A-9                           EVERCORE PARTNERS INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSTHREE AND SIX MONTHS ENDED JUNE 30, 2012 AND 2011 (dollars in thousands, except per share data) (UNAUDITED)   Three Months Ended June 30,Six Months Ended June 30,2012201120122011   Revenues Investment Banking Revenue $ 154,426 $ 114,696 $ 238,921 $ 197,748 Investment Management Revenue 20,036 27,987 39,800 53,431 Other Revenue   1,593   4,270     3,889   7,966   Total Revenues 176,055 146,953 282,610 259,145 Interest Expense (1)   3,558   5,749     7,315   10,843   Net Revenues   172,497   141,204     275,295   248,302     Expenses Employee Compensation and Benefits 114,290 100,069 195,017 169,166 Occupancy and Equipment Rental 9,146 5,673 17,391 10,791 Professional Fees 8,272 8,028 15,328 16,009 Travel and Related Expenses 7,648 5,416 14,381 9,929 Communications and Information Services 3,028 1,930 5,816 3,974 Depreciation and Amortization 3,680 3,039 9,042 5,996 Special Charges 662 - 662 - Acquisition and Transition Costs 75 601 148 1,134 Other Operating Expenses   4,501   4,833     8,458   7,924   Total Expenses   151,302   129,589     266,243   224,923     Income Before Income from Equity Method Investments andIncome Taxes 21,195 11,615 9,052 23,379 Income from Equity Method Investments   719   69     3,104   469   Income Before Income Taxes 21,914 11,684 12,156 23,848 Provision for Income Taxes   9,773   6,064     5,135   10,500   Net Income from Continuing Operations   12,141   5,620     7,021   13,348     Discontinued Operations Income (Loss) from Discontinued Operations - (448 ) - (1,037 ) Provision (Benefit) for Income Taxes - (87 ) - (265 ) Net Income (Loss) Attributable to Noncontrolling Interest   -   (276 )   -   (657 ) Net Income (Loss) from Discontinued Operations   -   (85 )   -   (115 )   Net Income 12,141 5,535 7,021 13,233 Net Income Attributable to Noncontrolling Interest   4,207   3,274     2,455   7,384   Net Income Attributable to Evercore Partners Inc. $ 7,934 $ 2,261   $ 4,566 $ 5,849     Net Income (Loss) Attributable to Evercore Partners Inc.Common Shareholders: From Continuing Operations $ 7,913 $ 2,325 $ 4,524 $ 5,922 From Discontinued Operations   -   (85 )   -   (115 ) Net Income Attributable to Evercore Partners Inc. $ 7,913 $ 2,240   $ 4,524 $ 5,807     Weighted Average Shares of Class A Common Stock Outstanding: Basic 29,213 23,724 29,169 23,204 Diluted 31,664 27,364 32,106 26,956   Basic Net Income Per Share Attributable to Evercore PartnersInc. Common Shareholders:   From Continuing Operations $ 0.27 $ 0.09 $ 0.16 $ 0.25 From Discontinued Operations   -   -     -   -   Net Income Attributable to Evercore Partners Inc. $ 0.27 $ 0.09   $ 0.16 $ 0.25     Diluted Net Income Per Share Attributable to EvercorePartners Inc. Common Shareholders: From Continuing Operations $ 0.25 $ 0.08 $ 0.14 $ 0.22 From Discontinued Operations   -   -     -   -   Net Income Attributable to Evercore Partners Inc. $ 0.25 $ 0.08   $ 0.14 $ 0.22       1 Includes interest expense on long-term debt and interest expense on short-term repurchase agreements.   A - 1     Adjusted Pro Forma Results Throughout the discussion of Evercore's business segments, information is presented on an Adjusted Pro Forma basis, which is a non-generally accepted accounting principles (“non-GAAP”) measure. Adjusted Pro Forma 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 vested and unvested Evercore LP Units, other IPO related restricted stock unit awards, as well as Acquisition Related Share Issuances and Unvested Restricted Stock Units granted to Lexicon employees, into Class A shares. Evercore believes that the disclosed Adjusted Pro Forma 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 Pro Forma amounts are allocated to the Company's two business segments: Investment Banking and Investment Management. The differences between Adjusted Pro Forma and U.S. GAAP results are as follows: 1. Assumed Vesting of Evercore LP Units and Exchange into Class A Shares. The Company incurred expenses, primarily, in Employee Compensation and Benefits, resulting from the modification of Evercore LP Units, which will vest generally over a five-year period. The Adjusted Pro Forma results assume these LP Units have vested and have been exchanged for Class A shares. Accordingly, any expense associated with these units and related awards is excluded from Adjusted Pro Forma results and the noncontrolling interest related to these units is converted to controlling interest. The Company's Management believes that it is useful to provide the per-share effect associated with the assumed conversion of these previously granted but unvested equity, and thus the Adjusted Pro Forma results reflect the vesting of all unvested Evercore LP partnership units and, IPO related restricted stock unit awards. 2. Vesting of Contingently Vested Equity Awards. The Company incurred expenses in Employee Compensation and Benefits, resulting from the vesting of awards issued at the time of the IPO. These awards vest upon the occurrence of specified vesting events rather than merely the passage of time and continued service. In periods prior to the completion of the June 2011 offering, we concluded that it was not probable that the vesting conditions would be achieved. Accordingly, we had not been accruing compensation expense relating to these unvested stock-based awards. The completion of the June 2011 offering resulted in Messrs. Altman, Beutner and Aspe, and trusts benefiting their families and permitted transferees, collectively, ceasing to beneficially own at least 50% of the aggregate Evercore LP partnership units owned by them on the date of the internal reorganization, resulting in the vesting of these awards. 3. Expenses Associated with Business Combinations. The following expenses resulting from business combinations have been excluded from Adjusted Pro Forma results because the Company's Management believes that operating performance is more comparable across periods excluding the effects of these acquisition-related charges; a. Amortization of Intangible Assets. Amortization of intangible assets related to the Protego acquisition, the Braveheart acquisition and the acquisitions of SFS and Lexicon. b. Compensation Charges. Expenses for deferred share-based and cash consideration and retention awards associated with the acquisition of Lexicon, as well as base salary adjustments for Lexicon employees for the period preceding the acquisition. c. Special Charges. Expenses primarily related to exiting the legacy office space in the UK. A - 2 4. Client Related Expenses. The Company has reflected the reclassification of client related expenses, expenses associated with revenue sharing engagements with third parties and provisions for uncollected receivables, as a reduction of revenue. The Company's Management believes that this adjustment results in more meaningful key operating ratios, such as compensation to net revenues and operating margin. 5. Income Taxes. Evercore is organized as a series of Limited Liability Companies, Partnerships, a C-Corporation and a Public Corporation and therefore, not all of the Company's income is subject to corporate-level taxes. As a result, adjustments have been made to the Adjusted Pro Forma earnings to assume that the Company has adopted a conventional corporate tax structure and is taxed as a C-Corporation in the U.S. at the prevailing corporate rates, that all deferred tax assets relating to foreign operations are fully realizable within the structure on a consolidated basis and that adjustments for deferred tax assets related to the ultimate tax deductions for equity-based compensation awards are made directly to stockholders' equity. This assumption is consistent with the assumption that all Evercore LP Units are vested and exchanged into Class A shares, as discussed in Item 1 above, as the assumed exchange would change the tax structure of the Company. 6. Presentation of Interest Expense. The Adjusted Pro Forma results present interest expense on short-term repurchase agreements, within the Investment Management segment, in Other Revenues, net, as the Company's Management believes it is more meaningful to present the spread on net interest resulting from the matched financial assets and liabilities. In addition, Adjusted Pro Forma Investment Banking and Investment Management Operating Income is presented before interest expense on long-term debt, which is included in interest expense on a U.S. GAAP basis. 7.Presentation of Income from Equity Method Investments. The Adjusted Pro Forma results present Income from Equity Method Investments within Revenue as the Company's Management believes it is a more meaningful presentation. A - 3                       EVERCORE PARTNERS INC.U.S. GAAP RECONCILIATION TO ADJUSTED PRO FORMA (dollars in thousands) (UNAUDITED)   Three Months EndedSix Months Ended   June 30, 2012March 31, 2012June 30, 2011June 30, 2012June 30, 2011Net Revenues - U.S. GAAP (a) $ 172,497 $ 102,798 $ 141,204 $ 275,295 $ 248,302 Client Related Expenses (1) (3,085 ) (1,636 ) (3,062 ) (4,721 ) (7,033 ) Income from Equity Method Investments (2) 719 2,385 69 3,104 469 Interest Expense on Long-term Debt (3)   1,984     1,974     1,953     3,958     3,896   Net Revenues - Adjusted Pro Forma (a) $ 172,115   $ 105,521   $ 140,164   $ 277,636   $ 245,634     Compensation Expense - U.S. GAAP (a) $ 114,290 $ 80,727 $ 100,069 $ 195,017 $ 169,166 Amortization of LP Units and Certain Other Awards (4) (5,147 ) (4,648 ) (5,917 ) (9,795 ) (12,620 ) IPO Related Restricted Stock Unit Awards (5) - - (11,389 ) - (11,389 ) Acquisition Related Compensation Charges (6)   (6,352 )   (9,645 )   -     (15,997 )   -   Compensation Expense - Adjusted Pro Forma (a) $ 102,791   $ 66,434   $ 82,763   $ 169,225   $ 145,157     Operating Income (Loss) - U.S. GAAP (a) $ 21,195 $ (12,143 ) $ 11,615 $ 9,052 $ 23,379 Income from Equity Method Investments (2)   719     2,385     69     3,104     469   Pre-Tax Income (Loss) - U.S. GAAP (a) 21,914 (9,758 ) 11,684 12,156 23,848 Amortization of LP Units and Certain Other Awards (4) 5,069 4,742 5,917 9,811 12,620 IPO Related Restricted Stock Unit Awards (5) - - 11,389 - 11,389 Acquisition Related Compensation Charges (6) 6,352 9,645 - 15,997 - Special Charges (7) 662 - - 662 - Intangible Asset Amortization (8a)   471     2,328     552     2,799     1,104   Pre-Tax Income - Adjusted Pro Forma (a) 34,468 6,957 29,542 41,425 48,961 Interest Expense on Long-term Debt (3)   1,984     1,974     1,953     3,958     3,896   Operating Income - Adjusted Pro Forma (a) $ 36,452   $ 8,931   $ 31,495   $ 45,383   $ 52,857     Provision (Benefit) for Income Taxes - U.S. GAAP (a) $ 9,773 $ (4,638 ) $ 6,064 $ 5,135 $ 10,500 Income Taxes (9)   3,325     7,282     5,752     10,607     9,083   Provision for Income Taxes - Adjusted Pro Forma (a) $ 13,098   $ 2,644   $ 11,816   $ 15,742   $ 19,583     Net Income (Loss) from Continuing Operations (a) $ 12,141 $ (5,120 ) $ 5,620 $ 7,021 $ 13,348 Net Income (Loss) Attributable to Noncontrolling Interest (a)   4,207     (1,752 )   3,274     2,455     7,384   Net Income (Loss) from Continuing Operations Attributable to EvercorePartners Inc. - U.S. GAAP (a) 7,934 (3,368 ) 2,346 4,566 5,964 Amortization of LP Units and Certain Other Awards (4) 5,069 4,742 5,917 9,811 12,620 IPO Related Restricted Stock Unit Awards (5) - - 11,389 - 11,389 Acquisition Related Compensation Charges (6) 6,352 9,645 - 15,997 - Special Charges (7) 662 - - 662 - Intangible Asset Amortization (8a) 471 2,328 552 2,799 1,104 Income Taxes (9) (3,325 ) (7,282 ) (5,752 ) (10,607 ) (9,083 ) Noncontrolling Interest (10)   4,022     (1,748 )   3,381     2,274     7,276   Net Income from Continuing Operations Attributable to Evercore Partners Inc. -Adjusted Pro Forma (a) $ 21,185   $ 4,317   $ 17,833   $ 25,502   $ 29,270     Diluted Shares Outstanding - U.S. GAAP 31,664 29,101 27,364 32,106 26,956 Warrants (11a) - 1,186 - - - Vested Partnership Units (11b) 7,559 7,656 9,193 7,611 9,398 Unvested Partnership Units (11b) 2,926 2,987 4,496 2,953 4,511 Unvested Restricted Stock Units - Event Based (11b) 12 12 511 12 546 Acquisition Related Share Issuance (11c) 1,208 1,915 - 1,276 - Unvested Restricted Stock Units - Service Based (11a, 11c)   78     1,578     -     85     -   Diluted Shares Outstanding - Adjusted Pro Forma   43,447     44,435     41,564     44,043     41,411     Key Metrics: (b) Diluted Earnings (Loss) Per Share from Continuing Operations - U.S. GAAP (c) $ 0.25 $ (0.12 ) $ 0.08 $ 0.14 $ 0.22 Diluted Earnings Per Share from Continuing Operations - Adjusted Pro Forma (c) $ 0.49 $ 0.10 $ 0.43 $ 0.58 $ 0.71   Compensation Ratio - U.S. GAAP 66 % 79 % 71 % 71 % 68 % Compensation Ratio - Adjusted Pro Forma 60 % 63 % 59 % 61 % 59 %   Operating Margin - U.S. GAAP 12 % -12 % 8 % 3 % 9 % Operating Margin - Adjusted Pro Forma 21 % 8 % 22 % 16 % 22 %   Effective Tax Rate - U.S. GAAP 45 % 48 % 52 % 42 % 44 % Effective Tax Rate - Adjusted Pro Forma 38 % 38 % 40 % 38 % 40 %   (a) Represents the Company's results from Continuing Operations. (b) Reconciliations of the key metrics from U.S. GAAP to Adjusted Pro Forma are a derivative of the reconciliations of their components above. (c) For Earnings Per Share purposes, Net Income Attributable to Evercore Partners Inc. is reduced by $21 of accretion for the three months ended June 30, 2012, March 31, 2012 and June 30, 2011, and $42 of accretion for the six months ended June 30, 2012 and 2011, related to the Company's noncontrolling interest in Trilantic Capital Partners.   A - 4                       EVERCORE PARTNERS INC.U.S. GAAP RECONCILIATION TO ADJUSTED PRO FORMATRAILING TWELVE MONTHS (dollars in thousands) (UNAUDITED) ConsolidatedTwelve Months Ended   June 30, 2012March 31, 2012June 30, 2011Net Revenues - U.S. GAAP $ 551,257 $ 519,964 $ 472,779 Client Related Expenses (1) (10,336 ) (10,313 ) (10,489 ) Income from Equity Method Investments (2) 3,554 2,904 222 Interest Expense on Long-term Debt (3)   7,879     7,848     7,757   Net Revenues - Adjusted Pro Forma $ 552,354   $ 520,403   $ 470,269     Compensation Expense - U.S. GAAP $ 383,531 $ 369,310 $ 317,340 Amortization of LP Units and Certain Other Awards (4) (20,882 ) (21,652 ) (22,718 ) IPO Related Restricted Stock Unit Awards (5) - (11,389 ) (11,389 ) Acquisition Related Compensation Charges (6)   (30,615 )   (24,263 )   -   Compensation Expense - Adjusted Pro Forma $ 332,034   $ 312,006   $ 283,233     Compensation Ratio - U.S. GAAP (a) 70 % 71 % 67 % Compensation Ratio - Adjusted Pro Forma (a) 60 % 60 % 60 %     Investment BankingTwelve Months Ended   June 30, 2012March 31, 2012   June 30, 2011Net Revenues - U.S. GAAP $ 468,718 $ 429,530 $ 373,662 Client Related Expenses (1) (9,927 ) (9,914 ) (9,920 ) Income from Equity Method Investments (2) 1,780 1,947 932 Interest Expense on Long-term Debt (3)   4,271     4,255     4,204   Net Revenues - Adjusted Pro Forma $ 464,842   $ 425,818   $ 368,878     Compensation Expense - U.S. GAAP $ 328,346 $ 308,937 $ 251,641 Amortization of LP Units and Certain Other Awards (4) (18,487 ) (19,050 ) (19,506 ) IPO Related Restricted Stock Unit Awards (5) - (8,906 ) (8,906 ) Acquisition Related Compensation Charges (6)   (30,615 )   (24,263 )   -   Compensation Expense - Adjusted Pro Forma $ 279,244   $ 256,718   $ 223,229     Compensation Ratio - U.S. GAAP (a) 70 % 72 % 67 % Compensation Ratio - Adjusted Pro Forma (a) 60 % 60 % 61 %     (a) Reconciliations of the key metrics from U.S. GAAP to Adjusted Pro Forma are a derivative of the reconciliations of their components above.   A - 5                                 EVERCORE PARTNERS INC.ADJUSTED PRO FORMA SEGMENT RECONCILIATION TO U.S. GAAPFOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2012 (dollars in thousands) (UNAUDITED)   Investment Banking SegmentThree Months Ended June 30, 2012Six Months Ended June 30, 2012Non-GAAPAdjusted ProForma BasisAdjustmentsU.S. GAAPBasisNon-GAAPAdjusted ProForma BasisAdjustmentsU.S. GAAPBasis Net Revenues: Investment Banking Revenue $ 151,397 $ 3,029 (1 )(2) $ 154,426 $ 236,017 $ 2,904 (1 )(2) $ 238,921 Other Revenue, net   (187 )   (1,075 ) (3 )   (1,262 )   173     (2,145 ) (3 )   (1,972 ) Net Revenues   151,210     1,954     153,164     236,190     759     236,949     Expenses: Employee Compensation and Benefits 89,829 10,925 (4 )(6) 100,754 144,291 24,692 (4 )(6) 168,983 Non-compensation Costs 25,858 3,307 (4 )(8) 29,165 48,869 7,150 (4 )(8) 56,019 Special Charges   -     662   (7 )   662     -     662   (7 )   662   Total Expenses   115,687     14,894     130,581     193,160     32,504     225,664     Operating Income from Continuing Operations $ 35,523   $ (12,940 ) $ 22,583   $ 43,030   $ (31,745 ) $ 11,285     Compensation Ratio (a) 59 % 66 % 61 % 71 % Operating Margin (a) 23 % 15 % 18 % 5 %     Investment Management SegmentThree Months Ended June 30, 2012Six Months Ended June 30, 2012Non-GAAPAdjusted ProForma BasisAdjustmentsU.S. GAAPBasisNon-GAAPAdjusted ProForma BasisAdjustmentsU.S. GAAPBasis Net Revenues: Investment Management Revenue $ 20,699 $ (663 ) (1 )(2) $ 20,036 $ 41,087 $ (1,287 ) (1 )(2) $ 39,800 Other Revenue, net   206     (909 ) (3 )   (703 )   359     (1,813 ) (3 )   (1,454 ) Net Revenues   20,905     (1,572 )   19,333     41,446     (3,100 )   38,346     Expenses: Employee Compensation and Benefits 12,962 574 (4 ) 13,536 24,934 1,100 (4 ) 26,034 Non-compensation Costs   7,014     171   (8 )   7,185     14,159     386   (8 )   14,545   Total Expenses   19,976     745     20,721     39,093     1,486     40,579     Operating Income (Loss) from Continuing Operations $ 929   $ (2,317 ) $ (1,388 ) $ 2,353   $ (4,586 ) $ (2,233 )   Compensation Ratio (a) 62 % 70 % 60 % 68 % Operating Margin (a) 4 % (7 %) 6 % (6 %)   (a) Reconciliations of the key metrics from U.S. GAAP to Adjusted Pro Forma are a derivative of the reconciliations of their components above.   A - 6     EVERCORE PARTNERS INC.ADJUSTED PRO FORMA SEGMENT RECONCILIATION TO U.S. GAAPFOR THE THREE MONTHS ENDED MARCH 31, 2012 (dollars in thousands) (UNAUDITED)           Investment Banking SegmentThree Months Ended March 31, 2012Non-GAAPAdjusted ProForma BasisAdjustmentsU.S. GAAPBasis Net Revenues: Investment Banking Revenue $ 84,620 $ (125 ) (1 )(2) $ 84,495 Other Revenue, net   360     (1,070 ) (3 )   (710 ) Net Revenues   84,980     (1,195 )   83,785     Expenses: Employee Compensation and Benefits 54,462 13,767 (4 )(6) 68,229 Non-compensation Costs   23,011     3,843   (4 )(8)   26,854   Total Expenses   77,473     17,610     95,083     Operating Income (Loss) from Continuing Operations $ 7,507   $ (18,805 ) $ (11,298 )   Compensation Ratio (a) 64 % 81 % Operating Margin (a) 9 % (13 %)     Investment Management SegmentThree Months Ended March 31, 2012Non-GAAPAdjusted ProForma BasisAdjustmentsU.S. GAAPBasis Net Revenues: Investment Management Revenue $ 20,388 $ (624 ) (1 )(2) $ 19,764 Other Revenue, net   153     (904 ) (3 )   (751 ) Net Revenues   20,541     (1,528 )   19,013     Expenses: Employee Compensation and Benefits 11,972 526 (4 ) 12,498 Non-compensation Costs   7,145     215   (8 )   7,360   Total Expenses   19,117     741     19,858     Operating Income (Loss) from Continuing Operations $ 1,424   $ (2,269 ) $ (845 )   Compensation Ratio (a) 58 % 66 % Operating Margin (a) 7 % (4 %)   (a) Reconciliations of the key metrics from U.S. GAAP to Adjusted Pro Forma are a derivative of the reconciliations of their components above.   A - 7                               EVERCORE PARTNERS INC.ADJUSTED PRO FORMA SEGMENT RECONCILIATION TO U.S. GAAPFOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2011 (dollars in thousands) (UNAUDITED)   Investment Banking SegmentThree Months Ended June 30, 2011Six Months Ended June 30, 2011Non-GAAPAdjusted ProForma BasisAdjustmentsU.S. GAAPBasisNon-GAAPAdjusted ProForma BasisAdjustmentsU.S. GAAPBasis Net Revenues: Investment Banking Revenue $ 111,847 $ 2,849 (1 )(2) $ 114,696 $ 192,048 $ 5,700 (1 )(2) $ 197,748 Other Revenue, net   339     (1,059 ) (3 )   (720 )   719     (2,112 ) (3 )   (1,393 ) Net Revenues   112,186     1,790     113,976     192,767     3,588     196,355     Expenses: Employee Compensation and Benefits 67,303 14,042 (4 )(5) 81,345 114,778 19,929 (4 )(5) 134,707 Non-compensation Costs   18,054     3,452   (8 )   21,506     32,267     7,554   (8 )   39,821   Total Expenses   85,357     17,494     102,851     147,045     27,483     174,528     Operating Income from Continuing Operations $ 26,829   $ (15,704 ) $ 11,125   $ 45,722   $ (23,895 ) $ 21,827     Compensation Ratio (a) 60 % 71 % 60 % 69 % Operating Margin (a) 24 % 10 % 24 % 11 %   Investment Management SegmentThree Months Ended June 30, 2011Six Months Ended June 30, 2011Non-GAAPAdjusted ProForma BasisAdjustmentsU.S. GAAPBasisNon-GAAPAdjusted ProForma BasisAdjustmentsU.S. GAAPBasis Net Revenues: Investment Management Revenue $ 27,843 $ 144 (1 )(2) $ 27,987 $ 52,567 $ 864 (1 )(2) $ 53,431 Other Revenue, net   135     (894 ) (3 )   (759 )   300     (1,784 ) (3 )   (1,484 ) Net Revenues   27,978     (750 )   27,228     52,867     (920 )   51,947     Expenses: Employee Compensation and Benefits 15,460 3,264 (4 )(5) 18,724 30,379 4,080 (4 )(5) 34,459 Non-compensation Costs   7,852     162   (8 )   8,014     15,353     583   (8 )   15,936   Total Expenses   23,312     3,426     26,738     45,732     4,663     50,395     Operating Income from Continuing Operations $ 4,666   $ (4,176 ) $ 490   $ 7,135   $ (5,583 ) $ 1,552     Compensation Ratio (a) 55 % 69 % 57 % 66 % Operating Margin (a) 17 % 2 % 13 % 3 %     (a) Reconciliations of the key metrics from U.S. GAAP to Adjusted Pro Forma are a derivative of the reconciliations of their components above.   A - 8     Notes to Unaudited Condensed Consolidated Adjusted Pro Forma Financial Data For further information on these Adjusted Pro Forma adjustments, see page A-2. (1) The Company has reflected the reclassification of client related expenses, expenses associated with revenue sharing engagements with third parties and provisions for uncollected receivables, as a reduction of revenue. (2) The Company has reflected the reclassification of Income from Equity Method Investments to Revenue. (3) Interest Expense on Long-term Debt is excluded from the Adjusted Pro Forma Investment Banking and Investment Management segment results and is included in Interest Expense in the segment results on a U.S. GAAP Basis. (4) The Company incurred expenses from the modification of Evercore LP Units and related awards, which primarily vest over a five-year period. (5) The Company incurred expenses from the vesting of IPO related restricted stock unit awards relating to the June 2011 offering. (6) Expenses for deferred share-based and cash consideration and retention awards associated with the acquisition of Lexicon, as well as base salary adjustments for Lexicon employees for the period preceding the acquisition. (7) Expenses related to exiting the legacy office space in the UK. (8) Non-compensation Costs on an Adjusted Pro Forma basis reflect the following adjustments: A - 9                         Three Months Ended June 30, 2012InvestmentBankingInvestmentManagementTotalSegmentsAdjustmentsU.S. GAAP Occupancy and Equipment Rental $ 7,604 $ 1,542 $ 9,146 $ - $ 9,146 Professional Fees 4,943 1,961 6,904 1,368 (1 ) 8,272 Travel and Related Expenses 5,870 564 6,434 1,214 (1 ) 7,648 Communications and Information Services 2,431 563 2,994 34 (1 ) 3,028 Depreciation and Amortization 1,559 1,650 3,209 471 (8a) 3,680 Acquisition and Transition Costs 23 52 75 - 75 Other Operating Expenses   3,428   682   4,110   391 (1 )   4,501 Total Non-compensation Costs from Continuing Operations $ 25,858 $ 7,014 $ 32,872 $ 3,478 $ 36,350     Three Months Ended March 31, 2012InvestmentBankingInvestmentManagementTotalSegmentsAdjustmentsU.S. GAAP Occupancy and Equipment Rental $ 6,594 $ 1,651 $ 8,245 $ - $ 8,245 Professional Fees 4,698 1,871 6,569 487 (1 ) 7,056 Travel and Related Expenses 5,036 573 5,609 1,124 (1 ) 6,733 Communications and Information Services 2,220 501 2,721 67 (1 ) 2,788 Depreciation and Amortization 1,350 1,684 3,034 2,328 (8a) 5,362 Acquisition and Transition Costs 19 54 73 - 73 Other Operating Expenses   3,094   811   3,905   52 (1 )   3,957 Total Non-compensation Costs from Continuing Operations $ 23,011 $ 7,145 $ 30,156 $ 4,058 $ 34,214     Three Months Ended June 30, 2011InvestmentBankingInvestmentManagementTotalSegmentsAdjustmentsU.S. GAAP Occupancy and Equipment Rental $ 3,942 $ 1,731 $ 5,673 $ - $ 5,673 Professional Fees 4,920 2,147 7,067 961 (1 ) 8,028 Travel and Related Expenses 3,338 593 3,931 1,485 (1 ) 5,416 Communications and Information Services 1,432 466 1,898 32 (1 ) 1,930 Depreciation and Amortization 806 1,681 2,487 552 (8a) 3,039 Acquisition and Transition Costs 507 94 601 - 601 Other Operating Expenses   3,109   1,140   4,249   584 (1 )   4,833 Total Non-compensation Costs from Continuing Operations $ 18,054 $ 7,852 $ 25,906 $ 3,614 $ 29,520     Six Months Ended June 30, 2012Investment BankingInvestment ManagementTotal SegmentsAdjustmentsU.S. GAAP Occupancy and Equipment Rental $ 14,198 $ 3,193 $ 17,391 $ - $ 17,391 Professional Fees 9,641 3,832 13,473 1,855 (1 ) 15,328 Travel and Related Expenses 10,906 1,137 12,043 2,338 (1 ) 14,381 Communications and Information Services 4,651 1,064 5,715 101 (1 ) 5,816 Depreciation and Amortization 2,909 3,334 6,243 2,799 (8a) 9,042 Acquisition and Transition Costs 42 106 148 - 148 Other Operating Expenses   6,522   1,493   8,015   443 (1 )   8,458 Total Non-compensation Costs from Continuing Operations $ 48,869 $ 14,159 $ 63,028 $ 7,536 $ 70,564   Six Months Ended June 30, 2011Investment BankingInvestment ManagementTotal SegmentsAdjustmentsU.S. GAAP Occupancy and Equipment Rental $ 7,415 $ 3,376 $ 10,791 $ - $ 10,791 Professional Fees 8,340 4,026 12,366 3,643 (1 ) 16,009 Travel and Related Expenses 6,230 1,107 7,337 2,592 (1 ) 9,929 Communications and Information Services 2,884 1,005 3,889 85 (1 ) 3,974 Depreciation and Amortization 1,536 3,356 4,892 1,104 (8a) 5,996 Acquisition and Transition Costs 914 220 1,134 - 1,134 Other Operating Expenses   4,948   2,263   7,211   713 (1 )   7,924 Total Non-compensation Costs from Continuing Operations $ 32,267 $ 15,353 $ 47,620 $ 8,137 $ 55,757   A - 10         (8a) Reflects expenses associated with amortization of intangible assets acquired in the Protego, Braveheart, SFS and Lexicon acquisitions. (9) Evercore is organized as a series of Limited Liability Companies, Partnerships, a C-Corporation and a Public Corporation and therefore, not all of the Company's income is subject to corporate level taxes. As a result, adjustments have been made to decrease Evercore's effective tax rate to approximately 38% for the three and six months ended June 30, 2012, respectively. These adjustments assume that the Company has adopted a conventional corporate tax structure and is taxed as a C-Corporation in the U.S. at the prevailing corporate rates, that all deferred tax assets relating to foreign operations are fully realizable within the structure on a consolidated basis and that, historically, adjustments for deferred tax assets related to the ultimate tax deductions for equity-based compensation awards are made directly to stockholders' equity. (10) Reflects adjustment to eliminate noncontrolling interest related to all Evercore LP partnership units which are assumed to be converted to Class A common stock. (11a) Reflects adjustments to include the dilutive effect of the Warrants and Unvested Restricted Stock Units – Service Based, which have been excluded for U.S. GAAP as a result of the Company having a loss for the period. (11b) Assumes the vesting of all Evercore LP partnership units and IPO related restricted stock unit awards. In the computation of outstanding common stock equivalents for U.S. GAAP net income per share, the unvested Evercore LP partnership units are anti-dilutive and the IPO related restricted stock unit awards are excluded from the calculation prior to the June 2011 offering. (11c) Assumes the vesting of all Acquisition Related Share Issuance and Unvested Restricted Stock Units granted to Lexicon employees. In the computation of outstanding common stock equivalents for U.S. GAAP, these Shares and Restricted Stock Units are reflected using the Treasury Stock Method.     A - 11 Investor:Evercore PartnersRobert B. Walsh, 212-857-3100Chief Financial OfficerorMedia:The Abernathy MacGregor Group, for Evercore PartnersCarina Davidson, 212-371-5999