“2012 ended the year on a strong note, both for Evercore and the M&A markets broadly. Evercore’s Investment Banking Net Revenues and Operating Income each grew more than 30%, delivering a full year Operating Margin of 23%. We delivered these results in a year when announced transactions on a global basis were essentially flat and completed transactions were down 15%,” said Roger Altman, Executive Chairman. “Once again, we advised on a disproportionate share of the largest transactions. More specifically, we advised on one of the three largest transactions in the United States in each of the oil and gas, consumer, banking, biotech, and publishing sectors, and the largest financial services transaction in Canada. Historically, Evercore has been very strong in the large cap multinational sector, and this is obviously continuing.”

                 

Consolidated U.S. GAAP and Adjusted Pro Forma Selected Financial Data (Unaudited)
 
U.S. GAAP
Three Months Ended % Change vs. Twelve Months Ended
December 31,

2012
September 30,

2012
December 31,

2011
September 30,

2012
December 31,

2011
December 31,

2012
December 31,

2011
% Change  
(dollars in thousands)
Net Revenues $ 214,049 $ 153,029 $ 112,781 40 % 90 % $ 642,373 $ 524,264 23 %
Operating Income (Loss) $ 42,238 $ 14,245 $ (1,009 ) 197 % NM $ 65,535 $ 35,812 83 %

Net Income (Loss) from Continuing

Operations Attributable to Evercore Partners Inc.
$ 19,022 $ 5,301 $ (3 ) 259 % NM $ 28,889 $ 7,918 265 %

Diluted Earnings Per Share

from Continuing Operations
$ 0.56 $ 0.17 $ - 229 % NM $ 0.89 $ 0.27 230 %
Compensation Ratio 62.6 % 66.2 % 66.4 % 67.0 % 68.2 %
Operating Margin 19.7 % 9.3 % (0.9 %) 10.2 % 6.8 %
 
Adjusted Pro Forma
Three Months Ended % Change vs. Twelve Months Ended
December 31,

2012
September 30,

2012
December 31,

2011
September 30,

2012
December 31,

2011
December 31,

2012
December 31,

2011
% Change  
(dollars in thousands)
Net Revenues $ 212,029 $ 149,247 $ 111,624 42 % 90 % $ 638,912 $ 520,352 23 %
Operating Income $ 57,020 $ 29,391 $ 19,605 94 % 191 % $ 131,794 $ 105,845 25 %

Net Income from Continuing Operations

Attributable to Evercore Partners Inc.
$ 35,303 $ 17,275 $ 14,067 104 % 151 % $ 78,080 $ 63,129 24 %

Diluted Earnings Per Share

from Continuing Operations
$ 0.81 $ 0.40 $ 0.32 103 % 153 % $ 1.78 $ 1.48 20 %
Compensation Ratio 58.0 % 59.9 % 55.6 % 59.7 % 59.2 %
Operating Margin 26.9 % 19.7 % 17.6 % 20.6 % 20.3 %
 

The U.S. GAAP and Adjusted Pro Forma results for December 31, 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.

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