By Brett Philbin
Boutique advisory firm Evercore Partners Inc. (EVR) posted a 19%
rise in second-quarter earnings as the company benefited from a
string of deal closings despite a tough market environment.
Adjusted revenue in investment banking jumped 35% to $151.4
million from $111.8 million a year earlier. Year-to-date, Evercore
has advised on notable transactions including Bristol-Myers Squibb
Co.'s (BMY) $7 billion bid to buy Amylin Pharmaceuticals Inc.
(AMLN) and InterDigital Inc.'s (IDCC) pending sale of $375 million
in patent and patent applications to Intel Corp. (INTC).
Evercore's advisory business participated in 30 transactions
that generated fees in excess of $1 million each, said Chief
Executive Ralph Schlosstein in a statement. The performance was the
firm's highest quarterly total to date and fueled the jump in
investment banking revenue.
"Despite a quite challenging market environment, we are pleased
with our results," Mr. Schlosstein said on a conference call with
analysts.
Mr. Schlosstein said that he believed Evercore's "strong
performance in revenue" in the first half of the year is
sustainable for the remainder of the year if markets aren't
terribly disrupted by the European debt crisis, adding that "our
business today looks promising, but the rest of the world has
clouds over it."
Evercore's results buck the quarterly trend in investment
banking, where firms big and small have grappled with lackluster
demand for mergers and acquisitions and other advisory services
amid persistent concerns about Europe's debt woes and the strength
of the global economy. Evercore is part of a group of independent
advisers that includes Lazard Ltd. (LAZ) and Greenhill & Co.
(GHL), which offer advisory services and don't lend or sell stocks,
bonds or other financial products.
The structure eliminates conflicts of interest that can
sometimes be present at bigger banks.
The results indicate Evercore is continuing to "grow and gain
market share," Mr. Schlosstein said.
Evercore's adjusted net income from continuing operations--the
figure that analysts typically use to evaluate the company--rose to
$21.2 million, or 49 cents a share, up from $17.8 million, or 43
cents a share, a year ago.
Revenue climbed 23% to $172.1 million.
Analysts polled by Thomson Reuters had expected, on average,
adjusted earnings of 48 cents on revenue of $163 million.
In a note to clients, JMP Securities analysts David Trone wrote
that Evercore's "results likely alleviated concerns," particularly
after Greenhill missed earnings expectations last week.
Shares of Evercore, which was founded by former Deputy U.S.
Treasury Secretary Roger Altman, rose 1.5% Thursday to $21.27. The
stock has fallen 20% year-to-date and 31% over the past 12
months.
Write to Brett Philbin at brett.philbin@dowjones.com
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