NEW YORK, Feb. 1, 2017 /PRNewswire/ --

Highlights


    --  Full Year Financial Summary
        --  Record U.S. GAAP Net Revenues of $1.440 billion, up 18% compared to
            2015
        --  Record U.S. GAAP Net Income Attributable to Evercore Partners Inc.
            of $107.5 million, up 151% compared to 2015, or $2.43 per share, up
            148% compared to 2015
        --  Record Adjusted Net Revenues of $1.431 billion, up 18% compared to
            2015; 20% after adjusting for the restructuring of certain
            Investment Management affiliates
        --  Record Adjusted Net Income Attributable to Evercore Partners Inc. of
            $223.0 million, up 30% compared to 2015, or $4.32 per share, up 34%
            compared to 2015
    --  Fourth Quarter Financial Summary
        --  Record U.S. GAAP Net Revenues of $445.4 million, up 9% compared to
            Q4 2015
        --  Record U.S. GAAP Net Income Attributable to Evercore Partners Inc.
            of $43.4 million, up 111% compared to Q4 2015, or $0.98 per share,
            up 118% compared to Q4 2015
        --  Record Adjusted Net Revenues of $442.2 million, up 9% compared to Q4
            2015; 11% after adjusting for the restructuring of certain
            Investment Management affiliates
        --  Record Adjusted Net Income Attributable to Evercore Partners Inc. of
            $74.4 million, up 15% compared to Q4 2015, or $1.43 per share, up
            17% compared to Q4 2015
    --  Announced John S. Weinberg joined as Chairman of the Board and Executive
        Chairman of Evercore
    --  Investment Banking
        --  Advising clients on significant transactions globally:
            --  The largest technology transaction in 2016: Qualcomm on its
                pending $47 billion acquisition of NXP Semiconductors NV
            --  The largest telecom transaction in 2016: CenturyLink on its
                pending $34 billion acquisition of Level 3 Communications, Inc.
            --  The two largest healthcare transactions announced in 2016:
                Abbott Laboratories on its $31 billion acquisition of St. Jude
                Medical, Inc. and Medivation on its $14 billion sale to Pfizer
                Inc.
            --  The Special Committee of the Board of Directors of Hilton
                Worldwide Holdings Inc. on HNA Group's $6.5 billion acquisition
                of a 25% equity interest in Hilton from Blackstone
            --  The largest ever cross-border South Korean M&A transaction:
                Samsung Electronics on its pending $9 billion acquisition of
                Harman International Industries, Incorporated
            --  The largest German commercial real estate transaction since
                2008: The shareholders of IVG on OfficeFirst  Immobilien AG's
                pending EUR3.3 billion sale to Blackstone
            --  Bookrunner on the two largest U.S. IPOs in 2016 and independent
                advisor on the largest U.K. IPO in 2016
    --  Announced the strengthening of our strategic alliance with Luminis
        Partners in Australia, acquiring an ~20% interest in the business
    --  Announced the addition of five Senior Managing Directors in 2016 and
        four newly promoted Senior Managing Directors in our Advisory business
        in 2017. In addition, we have already announced the addition of two
        Advisory Senior Managing Directors in 2017
    --  Returned $225.8 million of capital to shareholders during the year
        through dividends and repurchases, including repurchases of 3.5 million
        shares/units at an average price of $48.03.  Quarterly dividend of $0.34
        per share

Evercore Partners Inc. (NYSE: EVR) today announced its results for the full year ended December 31, 2016.

U.S. GAAP Results:

The following is a discussion of Evercore's results on a U.S. GAAP basis.



                                                                                                               U.S. GAAP

                                                    Three Months Ended                                                      % Change vs.                                       Twelve Months Ended

                         December 31, 2016            September 30,
                                                           2016              December 31, 2015               September 30,             December 31,          December 31, 2016   December 31, 2015         % Change
                                                                                                                     2016                      2015
                                                                                                                     ----                      ----

                                                                                             (dollars in thousands, except per share data)

    Net Revenues                           $445,369                                               $386,314                                          $408,243                                     15%                  9%       $1,440,052 $1,223,273  18%

    Operating Income                        $97,359                                                $85,085                                           $74,663                                     14%                 30%         $261,174   $128,670 103%

    Net Income
     Attributable to
     Evercore Partners
     Inc.                                   $43,428                                                $34,695                                           $20,602                                     25%                111%         $107,528    $42,863 151%

    Diluted Earnings Per
     Share                                    $0.98                                                  $0.79                                             $0.45                                     24%                118%            $2.43      $0.98 148%

    Compensation Ratio               60.1%                             60.0%                                        62.3%                                                                            62.5%               64.4%

    Operating Margin                 21.9%                             22.0%                                        18.3%                                                                            18.1%               10.5%

Net Revenues were $1.440 billion for the twelve months ended December 31, 2016, an increase of 18% compared to $1.223 billion for the twelve months ended December 31, 2015. Net Revenues were $445.4 million for the quarter ended December 31, 2016, an increase of 9% compared to $408.2 million for the quarter ended December 31, 2015. Net Income Attributable to Evercore Partners Inc. for the twelve months ended December 31, 2016 was $107.5 million, up 151% compared to $42.9 million for the same period last year. Earnings Per Share was $2.43 for the twelve months ended December 31, 2016, up 148% in comparison to the prior year period. Net Income Attributable to Evercore Partners Inc. for the quarter ended December 31, 2016 was $43.4 million, up 111% compared to $20.6 million a year ago. Earnings Per Share was $0.98 for the quarter ended December 31, 2016, up 118% in comparison to the prior year period.

The trailing twelve-month compensation ratio of 62.5% compares to 64.4% for the same period in 2015. The compensation ratio for the quarter ended December 31, 2016 was 60.1%, compared to 62.3% for the quarter ended December 31, 2015.

For the three and twelve months ended December 31, 2016, Evercore's effective tax rate was 40.0% and 44.5%, respectively, compared to 60.9% and 57.2%, respectively, for the three and twelve months ended December 31, 2015. The effective tax rate is impacted by the non-deductible treatment of compensation associated with Evercore LP Units/Interests.

Adjusted Results:

The following is a discussion of Evercore's results on an Adjusted basis. See pages 4 and 5 and A-2 to A-13 for further information and reconciliations of these metrics to our U.S. GAAP results.



                                                                                                                Adjusted

                                                    Three Months Ended                                                      % Change vs.                                       Twelve Months Ended

                         December 31, 2016            September 30,
                                                           2016              December 31, 2015               September 30,             December 31,          December 31, 2016   December 31, 2015         % Change
                                                                                                                     2016                      2015
                                                                                                                     ----                      ----

                                                                                             (dollars in thousands, except per share data)

    Net Revenues                           $442,189                                               $383,473                                          $404,129                                     15%                 9%       $1,431,137 $1,216,421 18%

    Operating Income                       $127,010                                               $106,169                                          $109,831                                     20%                16%         $378,829   $292,514 30%

    Net Income
     Attributable to
     Evercore Partners
     Inc.                                   $74,417                                                $62,423                                           $64,717                                     19%                15%         $223,018   $171,307 30%

    Diluted Earnings Per
     Share                                    $1.43                                                  $1.22                                             $1.22                                     17%                17%            $4.32      $3.23 34%

    Compensation Ratio               57.2%                             56.8%                                        58.6%                                                                            57.3%              57.8%

    Operating Margin                 28.7%                             27.7%                                        27.2%                                                                            26.5%              24.0%

Net Revenues were $1.431 billion for the twelve months ended December 31, 2016, an increase of 18% compared to $1.216 billion for the twelve months ended December 31, 2015. Assuming the restructuring of certain Investment Management affiliates had occurred on December 31, 2014, Net Revenues would have increased 20% compared to the twelve months ended December 31, 2015. Net Revenues were $442.2 million for the quarter ended December 31, 2016, an increase of 9% compared to $404.1 million for the quarter ended December 31, 2015. Assuming the restructuring of certain Investment Management affiliates had occurred on December 31, 2014, Net Revenues would have increased 11% compared to the quarter ended December 31, 2015. Net Income Attributable to Evercore Partners Inc. was $223.0 million for the twelve months ended December 31, 2016, up 30% compared to $171.3 million for the same period last year. Earnings Per Share was $4.32 for the twelve months ended December 31, 2016, up 34% in comparison to the prior year period. Net Income Attributable to Evercore Partners Inc. was $74.4 million for the quarter ended December 31, 2016, up 15% compared to $64.7 million a year ago. Earnings Per Share was $1.43 for the quarter ended December 31, 2016, up 17% in comparison to the prior year period.

The compensation ratio for the trailing twelve months was 57.3%, compared to 57.8% for the same period in 2015. The compensation ratio for the quarter ended December 31, 2016 was 57.2%, compared to 58.6% for the quarter ended December 31, 2015.

For the three and twelve months ended December 31, 2016, Evercore's effective tax rate was 38.0%, compared to 37.5% and 37.3%, respectively, for the three and twelve months ended December 31, 2015. The increase in the effective tax rate was primarily driven by a higher percentage of earnings in the U.S. in 2016. Changes in the effective tax rate are also driven by the level of earnings in businesses with minority owners.

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.

"Evercore's fourth quarter and full year 2016 results reflect strong performance in our Investment Banking business globally. We delivered our eighth consecutive year of growth in both revenues and earnings, and operating margins of 26.5%, and at the same time, meaningfully increased our market share of advisory revenues, both among all public firms and among all public independent firms. The Evercore ISI team reaffirmed its position as the leading independent equity research firm in the U.S., maintaining revenues and profitability in a challenging environment," said Ralph Schlosstein, President and Chief Executive Officer. "These results enabled us to deliver significant value to our shareholders, returning more than $225 million of capital in 2016, through dividends and share repurchases."

"This past year saw record results again and an important expansion of our reach. John Weinberg joined us as Executive Chairman, which represents a giant step forward for Evercore," said Roger C. Altman, Founder and Senior Chairman. "And, already in 2017, we have added six new Senior Managing Directors to our global advisory franchise. Masuo Fukuda has joined us in Tokyo and will work with our long standing partner there, Mizuho. And, Ira Wolfson, who has worked with industrial companies, joined us in New York. Furthermore, we promoted four new Advisory SMDs internally, both in New York and London. Overall, the firm has never been more capable."

"Our Advisory business performed strongly in key industry sectors, particularly in Healthcare, TMT, Energy and Financial Services. We received significant contributions from our teams focused on restructuring and equity, debt and private capital advisory services, and our activist and defense team was involved in 5 of the 7 public activist situations in the U.S. over $10 billion. We consider it a privilege to continue to assist and advise our clients and see great opportunities ahead," said John S. Weinberg, Executive Chairman.

Non-GAAP Measures:

Throughout this release certain information is presented on an Adjusted basis, which is a 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"), and then those results are adjusted to exclude certain items and reflect the conversion of vested and certain unvested Evercore LP Units and Interests 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. 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.

Evercore's Adjusted Net Income Attributable to Evercore Partners Inc. for the three and twelve months ended December 31, 2016 was higher than U.S. GAAP as a result of the exclusion of expenses associated with awards granted in conjunction with certain of the Company's acquisitions, and certain other business acquisition-related charges, special charges and professional fees.

Acquisition-related compensation charges for 2016 include expenses associated with performance-based awards granted in conjunction with the Company's acquisition of ISI. The amount of expense is based on the determination that it is probable that Evercore ISI will achieve certain earnings and margin targets in future periods. Acquisition and Transition charges for 2016 include professional fees incurred, as well as the reversal of a provision for certain settlements. Acquisition-related charges for 2016 also include adjustments for contingent consideration related to certain acquisitions. Special Charges for 2016 relate to a charge for the impairment of our investment in Atalanta Sosnoff during the fourth quarter.

In addition, for Adjusted purposes, client related expenses have been presented as a reduction from Revenues and Non-compensation costs. The gain resulting from the transfer of ownership of the Mexican Private Equity business in the third quarter of 2016 has also been presented as a reduction from Revenues.

Evercore's Adjusted Diluted Shares Outstanding for the three and twelve months ended December 31, 2016 were higher than U.S. GAAP as a result of the inclusion of Evercore LP partnership units, as well as the assumed vesting of LP Units/Interests and unvested restricted stock units granted to ISI employees.

This release also presents changes in Adjusted Net Revenues, Adjusted Investment Management Net Revenues and Adjusted Investment Management Expenses from the prior-year periods assuming that the restructuring of certain Investment Management affiliates occurred on December 31, 2014. This includes the restructuring of Atalanta Sosnoff that occurred on December 31, 2015 and the transfer of ownership of the Mexican Private Equity Business that occurred on September 30, 2016. Evercore believes this is useful additional information for investors because it improves the comparability of period-over-period results and aligns with management's view of business performance.

Further details of these adjustments, as well as an explanation of similar amounts for the three and twelve months ended December 31, 2015 and the three months ended September 30, 2016, are included in Annex I, pages A-2 to A-13.

Business Line Reporting - Discussion of U.S. GAAP Results

The following is a discussion of Evercore's segment results on a U.S. GAAP basis.

Investment Banking



                                                                                                     U.S. GAAP

                                             Three Months Ended                                                   % Change vs.                                           Twelve Months Ended

                       December 31,           September 30,             December 31,             September 30,               December 31,              December 31,        December 31,             % Change
                               2016                     2016                      2015                       2016                        2015                       2016                 2015
                               ----                     ----                      ----                       ----                        ----                       ----                 ----

                                                                                               (dollars in thousands)

    Net Revenues:

    Investment Banking
     Revenue                        $427,864                                           $368,434                                               $384,111                                 16%                           11%                         $1,364,098                  $1,133,860    20%

    Other Revenue, net        (509)                                200                                     (71)                                                 NM                                  (617)%                     (239)                       (2,945)           92%

    Net Revenues            427,355                             368,634                                  384,040                                    16%                                11%                     1,363,859               1,130,915                         21%
                            -------                             -------                                  -------                                                                                               ---------               ---------


    Expenses:

    Employee
     Compensation and
     Benefits               261,125                             221,380                                  241,389                                    18%                                 8%                       861,139                 734,078                         17%

    Non-compensation
     Costs                   67,674                              64,708                                   65,283                                     5%                                 4%                       251,360                 241,811                          4%

    Special Charges               -                                  -                                       -                                                 NM                                            NM                      -                             2,151                NM

    Total Expenses          328,799                             286,088                                  306,672                                    15%                                 7%                     1,112,499                 978,040                         14%
                            -------                             -------                                  -------                                                                                               ---------                 -------


    Operating Income                 $98,556                                            $82,546                                                $77,368                                 19%                           27%                           $251,360                    $152,875    64%
                                     =======                                            =======                                                =======                                                                                             ========                    ========


    Compensation Ratio        61.1%                              60.1%                                   62.9%                                                                                63.1%                      64.9%

    Operating Margin          23.1%                              22.4%                                   20.1%                                                                                18.4%                      13.5%

For the fourth quarter, Evercore's Investment Banking segment reported Net Revenues of $427.4 million, which represents an increase of 11% year-over-year. Operating Income of $98.6 million increased 27% from the fourth quarter of last year. The Operating Margin was 23.1%, in comparison to 20.1% for the fourth quarter of last year. For the twelve months ended December 31, 2016, Investment Banking reported Net Revenues of $1.364 billion, an increase of 21% from last year. Year-to-date Operating Income of $251.4 million increased 64% compared to $152.9 million last year. The year-to-date Operating Margin was 18.4% compared to 13.5% last year.

Revenues



                                                                                                 U.S. GAAP

                                            Three Months Ended                                                  % Change vs.                                         Twelve Months Ended

                      December 31,            September 30,           December 31,             September 30,               December 31,               December 31,                     December 31,       % Change
                              2016                      2016                    2015                       2016                        2015                        2016                              2015
                              ----                      ----                    ----                       ----                        ----                        ----                              ----

                                                                                           (dollars in thousands)

    Advisory Fees                  $352,976                                          $306,993                                               $311,622                           15%                               13%            $1,096,829              $865,494  27%

    Commissions and
     Related Fees           63,097                             53,512                                   63,866                                    18%                                               (1)%                231,005               228,229          1%

    Underwriting Fees       11,791                              7,929                                    8,623                                    49%                                              37%               36,264                40,137       (10)%

    Total Investment
     Banking Revenue               $427,864                                          $368,434                                               $384,111                           16%                               11%            $1,364,098            $1,133,860  20%
                                   ========                                          ========                                               ========                                                                            ==========            ==========

During the quarter, Investment Banking earned advisory fees from 256 client transactions (vs. 222 in Q4 2015) and fees in excess of $1 million from 82 client transactions (vs. 68 in Q4 2015). For the twelve months ended December 31, 2016, Investment Banking earned advisory fees from 568 client transactions (vs. 484 in 2015) and fees in excess of $1 million from 246 client transactions (vs. 180 in 2015).

During the fourth quarter of 2016, Commissions and Related Fees of $63.1 million decreased 1% from last year on lower trading volume. Underwriting Fees of $11.8 million for the three months ended December 31, 2016 increased 37% versus the prior year. During the twelve months ended December 31, 2016, Commissions and Related Fees of $231.0 million increased 1% from last year on higher trading volume. Underwriting Fees of $36.3 million for the twelve months ended December 31, 2016 decreased 10% versus 2015.

Expenses

Compensation costs were $261.1 million for the fourth quarter, an increase of 8% year-over-year. The trailing twelve-month compensation ratio was 63.1%, down from 64.9% a year ago. Evercore's Investment Banking compensation ratio was 61.1% for the fourth quarter, down versus the compensation ratio reported for the three months ended December 31, 2015 of 62.9%. Year to-date compensation costs were $861.1 million, an increase of 17% from the prior year.

Compensation costs include $14.4 million and $80.4 million of expense for the three and twelve months ended December 31, 2016, respectively, and $17.4 million and $82.5 million of expense for the three and twelve months ended December 31, 2015, respectively, related to the Class E, G and H LP Units/Interests issued in conjunction with the acquisition of ISI. The amount of expense related to the Class G and H LP Interests is based on the determination that it is probable that Evercore ISI will achieve certain earnings and margin targets in future periods.

Assuming the maximum thresholds for the Class G and H LP Interests were considered probable of achievement at December 31, 2016, an additional $35.0 million of expense would have been incurred in the fourth quarter ended December 31, 2016 and the remaining expense to be accrued over the future vesting period extending from January 1, 2017 to February 15, 2020 would be $110.5 million. In that circumstance, the total number of Class G and H LP Interests that would vest and become exchangeable to Class E LP Units would be 4.9 million.

Non-compensation costs for the current quarter were $67.7 million, up 4% from the same period last year. The ratio of non-compensation costs to net revenue for the current quarter was 15.8%, compared to 17.0% in the same quarter last year. Year-to-date non-compensation costs were $251.4 million, up 4% from the prior year. The ratio of non-compensation costs to net revenue for the twelve months ended December 31, 2016 was 18.4%, compared to 21.4% last year.

Investment Management



                                                                                                                              U.S. GAAP

                                                                    Three Months Ended                                                      % Change vs.                                            Twelve Months Ended

                                           December 31,              September 30,               December 31,              September 30,               December 31,              December 31,               December 31,                      % Change
                                                   2016                        2016                        2015                        2016                        2015                       2016                        2015
                                                   ----                        ----                        ----                        ----                        ----                       ----                        ----

                                                                                                                        (dollars in thousands)

    Net Revenues:

    Investment
     Management Revenue                                    $17,965                                                $17,158                                                $24,731                                         5%                                     (27)%                                               $75,807                                            $95,129                              (20)%

    Other Revenue, net                               49                                     522                                      (528)                                 (91)%                                        NM                                       386                                     (2,771)                                  NM

    Net Revenues                                 18,014                                  17,680                                     24,203                                     2%                                     (26)%                                    76,193                                      92,358                                (18)%
                                                 ------                                  ------                                     ------                                                                                                                     ------                                      ------


    Expenses:

    Employee
     Compensation and
     Benefits                                     6,506                                  10,330                                     13,141                                  (37)%                                     (50)%                                    39,451                                      54,097                                (27)%

    Non-compensation
     costs                                        4,605                                   4,811                                      6,122                                   (4)%                                     (25)%                                    18,828                                      23,473                                (20)%

    Special Charges                               8,100                                       -                                     7,645                                                  NM                                            6%                                    8,100                               38,993                                  (79)%


    Total Expenses                               19,211                                  15,141                                     26,908                                    27%                                     (29)%                                    66,379                                     116,563                                (43)%
                                                 ------                                  ------                                     ------                                                                                                                     ------                                     -------


    Operating Income
     (Loss)                                               $(1,197)                                                $2,539                                               $(2,705)                                        NM                                       56%                                                $9,814                                          $(24,205)                                NM
                                                           =======                                                 ======                                                =======                                                                                                                                     ======                                           ========


    Compensation Ratio                            36.1%                                  58.4%                                     54.3%                                                                                              51.8%                                    58.6%

    Operating Margin                             (6.6)%                                  14.4%                                   (11.2)%                                                                                              12.9%                                  (26.2)%


    Assets Under
     Management (in
     millions)  (1)                                         $7,999                                                 $8,355                                                 $8,168                                       (4)%                                      (2)%                                                $7,999                                             $8,168                               (2)%


    (1) Assets Under Management reflect end of period amounts from our consolidated subsidiaries and therefore exclude AUM of $5,103 million, $5,197 million and $5,297 million from Atalanta Sosnoff at December 31, 2016, September 30, 2016 and December 31, 2015, respectively, following the restructuring of our investment on December 31, 2015, and AUM of $304 million from the Mexican Private Equity Business
     at September 30, 2016 and December 31, 2016, following the transfer of ownership on September 30, 2016.

For the fourth quarter, Evercore's Investment Management segment reported Net Revenues of $18.0 million and an Operating Loss of ($1.2) million. The Operating Margin was (6.6%) for the quarter. For the twelve months ended December 31, 2016, Investment Management reported Net Revenues of $76.2 million and Operating Income of $9.8 million. The year-to-date Operating Margin was 12.9%, compared to (26.2%) last year.

As of December 31, 2016, Investment Management reported $8.0 billion of AUM, a decrease of 4% from September 30, 2016.

Revenues



                                                                                                       U.S. GAAP

                                                 Three Months Ended                                                 % Change vs.                                          Twelve Months Ended

                            December 31,           September 30,           December 31,            September 30,               December 31,             December 31,              December 31,       % Change
                                    2016                     2016                    2015                      2016                        2015                      2016                       2015
                                    ----                     ----                    ----                      ----                        ----                      ----                       ----

                                                                                                (dollars in thousands)

    Investment
     Advisory and
     Management Fees:

          Wealth Management               $9,231                                           $9,311                                                $8,831                                      (1)%                 5%        $36,411       $34,659    5%

          Institutional
           Asset                   6,596                             6,105                                  12,134                                    8%                                    (46)%             24,286 46,100         (47)%

          Management

          Private Equity             217                               760                                   1,390                                 (71)%                                    (84)%              3,674  5,603         (34)%

    Total Investment
     Advisory and
     Management Fees              16,044                            16,176                                  22,355                                  (1)%                                    (28)%             64,371 86,362         (25)%
                                  ------                            ------                                  ------                                                                                            ------ ------


    Realized and
     Unrealized
     Gains:

          Institutional
           Asset                     607                               811                                     549                                 (25)%                                      11%              3,820  3,681            4%

          Management

          Private Equity           1,314                               171                                   1,827                                  668%                                    (28)%              7,616  5,086           50%

    Total Realized
     and Unrealized
     Gains                         1,921                               982                                   2,376                                   96%                                    (19)%             11,436  8,767           30%
                                   -----                               ---                                   -----                                                                                            ------  -----


    Investment
     Management
     Revenue                             $17,965                                          $17,158                                               $24,731                                        5%              (27)%        $75,807       $95,129 (20)%
                                         =======                                          =======                                               =======                                                                     =======       =======

On December 31, 2015, the Company restructured its investment in Atalanta Sosnoff such that, following the restructuring, its results are reflected on the equity method of accounting.

On September 30, 2016, the Company completed the transfer of ownership and control of the Mexican Private Equity Business to a newly formed entity, Glisco Partners Inc., which is controlled by the principals of the business.

Investment Advisory and Management Fees of $16.0 million for the quarter ended December 31, 2016 decreased 28% compared to the same period a year ago, driven primarily by lower fees in Institutional Asset Management related to our deconsolidation of Atalanta Sosnoff, partially offset by higher fees in Wealth Management.

Realized and Unrealized Gains of $1.9 million in the quarter decreased relative to the prior year, with the change relative to the prior period driven principally by lower gains in Private Equity.

Expenses

Investment Management's fourth quarter expenses were $19.2 million, down 29% compared to the fourth quarter of 2015. Year-to-date Investment Management expenses were $66.4 million, down 43% from a year ago.

Special Charges reflect an impairment charge of $8.1 million incurred in the fourth quarter of 2016 related to the Company's equity method investment in Atalanta Sosnoff.

Business Line Reporting - Discussion of Adjusted Results

The following is a discussion of Evercore's segment results on an Adjusted basis. See pages 4 and 5 and A-2 to A-13 for further information and reconciliations of these metrics to our U.S. GAAP results.

Investment Banking



                                                                                                    Adjusted

                                             Three Months Ended                                                   % Change vs.                                           Twelve Months Ended

                       December 31,           September 30,             December 31,             September 30,               December 31,              December 31,         December 31,             % Change
                               2016                     2016                      2015                       2016                        2015                       2016                  2015
                               ----                     ----                      ----                       ----                        ----                       ----                  ----

                                                                                             (dollars in thousands)

    Net Revenues:

    Investment Banking
     Revenue                        $421,246                                           $362,374                                               $376,872                                  16%                         12%                 $1,340,976      $1,112,287 21%

    Other Revenue, net        2,123                               2,792                                    1,081                                  (24)%                                 96%                       9,339           3,202            192%

    Net Revenues            423,369                             365,166                                  377,953                                    16%                                 12%                   1,350,315       1,115,489             21%
                            -------                             -------                                  -------                                                                                              ---------       ---------


    Expenses:

    Employee
     Compensation and
     Benefits               246,635                             207,521                                  223,839                                    19%                                 10%                     780,293         648,868             20%

    Non-compensation
     Costs                   57,764                              55,197                                   51,283                                     5%                                 13%                     215,542         197,882              9%

    Total Expenses          304,399                             262,718                                  275,122                                    16%                                 11%                     995,835         846,750             18%
                            -------                             -------                                  -------                                                                                                -------         -------


    Operating Income                $118,970                                           $102,448                                               $102,831                                  16%                         16%                   $354,480        $268,739 32%
                                    ========                                           ========                                               ========                                                                                    ========        ========


    Compensation Ratio        58.3%                              56.8%                                   59.2%                                                                                 57.8%                    58.2%

    Operating Margin          28.1%                              28.1%                                   27.2%                                                                                 26.3%                    24.1%

For the fourth quarter, Evercore's Investment Banking segment reported Net Revenues of $423.4 million, which represents an increase of 12% year-over-year. Operating Income of $119.0 million increased 16% from the fourth quarter of last year. The Operating Margin was 28.1%, in comparison to 27.2% for the fourth quarter of last year. For the twelve months ended December 31, 2016, Investment Banking reported Net Revenues of $1.350 billion, an increase of 21% from last year. Year-to-date Operating Income of $354.5 million increased 32% compared to $268.7 million last year. The year-to-date Operating Margin was 26.3% compared to 24.1% last year.

Revenues



                                                                                                                             Adjusted

                                                                 Three Months Ended                                                        % Change vs.                                                Twelve Months Ended

                                        December 31,               September 30,               December 31,               September 30,               December 31,                    December 31,                       December 31,                  % Change
                                                2016                         2016                        2015                         2016                        2015                               2016                              2015
                                                ----                         ----                        ----                         ----                        ----                               ----                              ----

                                                                                                                      (dollars in thousands)

    Advisory Fees (1)                                   $346,358                                                $300,933                                                $304,383                                 15%                                          14%                                                 $1,073,707                                            $843,921                               27%

    Commissions and
     Related Fees                             63,097                                   53,512                                      63,866                                     18%                                                     (1)%                                                231,005                                 228,229                                      1%

    Underwriting Fees                         11,791                                    7,929                                       8,623                                     49%                                                    37%                                               36,264                                  40,137                                   (10)%

    Total Investment
     Banking Revenue                                    $421,246                                                $362,374                                                $376,872                                 16%                                          12%                                                 $1,340,976                                          $1,112,287                               21%
                                                        ========                                                ========                                                ========                                                                                                                                  ==========                                          ==========


    (1) Advisory Fees on an Adjusted basis reflect the reduction of revenues for client-related expenses and provisions for uncollected receivables of $8,082, $5,948 and $7,979 for the three months ended December 31, 2016, September 30, 2016 and December 31, 2015, respectively, and $24,492 and $22,551 for the twelve months ended December 31, 2016 and 2015, respectively, as well as the reclassification of
     earnings (losses) related to our equity investment in G5 | Evercore - Advisory of $1,464, ($112) and $740 for the three months ended December 31, 2016, September 30, 2016 and December 31, 2015, respectively, and $1,370 and $978 for the twelve months ended December 31, 2016 and 2015, respectively.

During the quarter, Investment Banking earned advisory fees from 256 client transactions (vs. 222 in Q4 2015) and fees in excess of $1 million from 82 client transactions (vs. 68 in Q4 2015). For the twelve months ended December 31, 2016, Investment Banking earned advisory fees from 568 client transactions (vs. 484 in 2015) and fees in excess of $1 million from 246 client transactions (vs. 180 in 2015).

During the fourth quarter of 2016, Commissions and Related Fees of $63.1 million decreased 1% from last year on lower trading volume. Underwriting Fees of $11.8 million for the three months ended December 31, 2016 increased 37% versus the prior year. During the twelve months ended December 31, 2016, Commissions and Related Fees of $231.0 million increased 1% from last year on higher trading volume. Underwriting Fees of $36.3 million for the twelve months ended December 31, 2016 decreased 10% versus the prior year.

Within the above results, Evercore ISI, our U.S. equities business, reported Net Revenues of $246.2 million, including allocated U.S. underwriting revenues of $15.7 million for the twelve months ended December 31, 2016 and Operating Margins of 21.8%, compared to 19.0% for the twelve months ended December 31, 2015. Operating margins as contemplated for the performance targets of the Class G and H LP Interests, giving effect to just Commissions and Related Fees, for the twelve months ended December 31, 2016 were consistent with those assumed at the time of the closing of the transactions.

Expenses

Compensation costs were $246.6 million for the fourth quarter, an increase of 10% year-over-year. The trailing twelve-month compensation ratio was 57.8%, down from 58.2% a year ago. Evercore's Investment Banking compensation ratio was 58.3% for the fourth quarter, down versus the compensation ratio reported for the three months ended December 31, 2015 of 59.2%. Year-to-date compensation costs were $780.3 million, an increase of 20% from the prior year.

Non-compensation costs for the current quarter were $57.8 million, up 13% from the same period last year. The increase in non-compensation costs versus the same period in the prior year reflects the addition of personnel within most parts of the business. The ratio of non-compensation costs to net revenue for the current quarter was 13.6%, flat compared to the same quarter last year. Year-to-date non-compensation costs were $215.5 million, up 9% from the prior year. The ratio of non-compensation costs to net revenue for the twelve months ended December 31, 2016 was 16.0%, compared to 17.7% last year.

Investment Management



                                                                                                                               Adjusted

                                                                    Three Months Ended                                                      % Change vs.                                            Twelve Months Ended

                                           December 31,              September 30,               December 31,              September 30,               December 31,              December 31,               December 31,                      % Change
                                                   2016                        2016                        2015                        2016                        2015                       2016                        2015
                                                   ----                        ----                        ----                        ----                        ----                       ----                        ----

                                                                                                                        (dollars in thousands)

    Net Revenues:

    Investment
     Management Revenue                                    $18,771                                                $18,191                                                $26,002                                         3%                                     (28)%                                               $80,172                                           $100,127                              (20)%

    Other Revenue, net                               49                                     116                                        174                                  (58)%                                     (72)%                                       650                                         805                                (19)%

    Net Revenues                                 18,820                                  18,307                                     26,176                                     3%                                     (28)%                                    80,822                                     100,932                                (20)%
                                                 ------                                  ------                                     ------                                                                                                                     ------                                     -------


    Expenses:

    Employee
     Compensation and
     Benefits                                     6,506                                  10,330                                     13,141                                  (37)%                                     (50)%                                    39,451                                      54,097                                (27)%

    Non-compensation
     Costs                                        4,274                                   4,256                                      6,035                                                   -   %                                     (29)%                                   17,022                               23,060                                  (26)%

    Total Expenses                               10,780                                  14,586                                     19,176                                  (26)%                                     (44)%                                    56,473                                      77,157                                (27)%
                                                 ------                                  ------                                     ------                                                                                                                     ------                                      ------


    Operating Income                                        $8,040                                                 $3,721                                                 $7,000                                       116%                                       15%                                               $24,349                                            $23,775                                 2%
                                                            ======                                                 ======                                                 ======                                                                                                                                    =======                                            =======


    Compensation Ratio                            34.6%                                  56.4%                                     50.2%                                                                                              48.8%                                    53.6%

    Operating Margin                              42.7%                                  20.3%                                     26.7%                                                                                              30.1%                                    23.6%


    Assets Under
     Management (in
     millions) (1)                                          $7,999                                                 $8,355                                                 $8,168                                       (4)%                                      (2)%                                                $7,999                                             $8,168                               (2)%


    (1) Assets Under Management reflect end of period amounts from our consolidated subsidiaries and therefore exclude AUM of $5,103 million, $5,197 million and $5,297 million from Atalanta Sosnoff at December 31, 2016, September 30, 2016 and December 31, 2015, respectively, following the restructuring of our investment on December 31, 2015, and AUM of $304 million from the Mexican Private Equity Business
     at September 30, 2016 and December 31, 2016, following the transfer of ownership on September 30, 2016.

For the fourth quarter, Evercore's Investment Management segment reported Net Revenues of $18.8 million and Operating Income of $8.0 million. The Operating Margin was 42.7% for the quarter. For the twelve months ended December 31, 2016, Investment Management reported Net Revenues of $80.8 million and Operating Income $24.3 million. The year-to-date Operating Margin was 30.1%, compared to 23.6% last year.

As of December 31, 2016, Investment Management reported $8.0 billion of AUM, a decrease of 4% from September 30, 2016.

Revenues



                                                                                                                            Adjusted

                                                                Three Months Ended                                                       % Change vs.                                            Twelve Months Ended

                                        December 31,              September 30,               December 31,              September 30,               December 31,              December 31,               December 31,                      % Change
                                                2016                        2016                        2015                        2016                        2015                       2016                        2015
                                                ----                        ----                        ----                        ----                        ----                       ----                        ----

                                                                                                                     (dollars in thousands)

    Investment Advisory and
     Management Fees:

          Wealth Management                              $9,231                                                 $9,311                                                 $8,831                                       (1)%                                        5%                                               $36,411                                         $34,659    5%

          Institutional
           Asset
           Management (1)                      6,560                                   5,848                                     12,129                                    12%                                     (46)%                                    23,586                                      46,026                               (49)%

          Private Equity
           (2)                                   11                                     760                                      1,390                                  (99)%                                     (99)%                                     3,468                                       5,603                               (38)%

    Total Investment
     Advisory and
     Management Fees                          15,802                                  15,919                                     22,350                                   (1)%                                     (29)%                                    63,465                                      86,288                               (26)%
                                              ------                                  ------                                     ------                                                                                                                     ------                                      ------


    Realized and Unrealized Gains:

          Institutional
           Asset
           Management                            607                                     811                                        549                                  (25)%                                       11%                                     3,820                                       3,681                                  4%

          Private Equity                       1,314                                     171                                      1,827                                   668%                                     (28)%                                     7,616                                       5,086                                 50%

    Total Realized
     and Unrealized
     Gains                                     1,921                                     982                                      2,376                                    96%                                     (19)%                                    11,436                                       8,767                                 30%
                                               -----                                     ---                                      -----                                                                                                                     ------                                       -----


    Equity in
     Earnings of
     Affiliates (3)                            1,048                                   1,290                                      1,276                                  (19)%                                     (18)%                                     5,271                                       5,072                                  4%

    Investment
     Management
     Revenue                                            $18,771                                                $18,191                                                $26,002                                         3%                                     (28)%                                               $80,172                                        $100,127 (20)%
                                                        =======                                                =======                                                =======                                                                                                                                    =======                                        ========


    (1) Management fees from Institutional Asset Management on an Adjusted basis reflect the reduction of revenues for client-related expenses of $36, $257 and $5 for the three months ended December 31, 2016, September 30, 2016 and December 31, 2015, respectively, and $700 and $74 for the twelve months ended December 31, 2016 and 2015, respectively.


    (2) Management fees from Private Equity on an Adjusted basis reflect the reduction of revenues for provisions for uncollected receivables of $206 for the three and twelve months ended December 31, 2016.


    (3) Equity in G5    Evercore - Wealth Management, ABS and Atalanta Sosnoff (after its deconsolidation on December 31, 2015) on a U.S. GAAP basis are reclassified from Investment Management Revenue to Income from Equity Method Investments.

Investment Advisory and Management Fees of $15.8 million for the quarter ended December 31, 2016 decreased 29% compared to the same period a year ago, driven primarily by lower fees in Institutional Asset Management related to our deconsolidation of Atalanta Sosnoff, partially offset by higher fees in Wealth Management.

On December 31, 2015, the Company restructured its investment in Atalanta Sosnoff such that, following the restructuring, its results are reflected on the equity method of accounting. On September 30, 2016, the Company completed the transfer of ownership and control of the Mexican Private Equity Business to a newly formed entity, Glisco Partners Inc., which is controlled by the principals of the business. Assuming the restructuring of these Investment Management affiliates had occurred on December 31, 2014, Investment Management Revenues would have decreased 7% when compared to the fourth quarter of 2015.

Realized and Unrealized Gains of $1.9 million in the quarter decreased relative to the prior year, with the change relative to the prior period driven principally by lower gains in Private Equity.

Equity in Earnings of Affiliates of $1.0 million in the quarter decreased relative to the prior year principally as a result of lower income earned in the fourth quarter of 2016 by ABS.

Expenses

Investment Management's fourth quarter expenses were $10.8 million, down 44% compared to the fourth quarter of 2015. Assuming the restructuring of certain Investment Management affiliates had occurred on December 31, 2014, Investment Management expenses would have decreased 21% when compared to the fourth quarter of 2015. Year-to-date Investment Management expenses were $56.5 million, down 27% from a year ago. Assuming the restructuring of certain Investment Management affiliates had occurred on December 31, 2014, Investment Management expenses would have increased 2% when compared to the twelve months ended December 31, 2015.

Balance Sheet

The Company continues to maintain a strong balance sheet, holding cash, cash equivalents and marketable securities of $625.0 million at December 31, 2016. Current assets exceed current liabilities by $462.8 million at December 31, 2016. Amounts due related to the Long-Term Notes Payable and Subordinated Borrowings were $184.6 million at December 31, 2016.

Capital Transactions

On January 30, 2017, the Board of Directors of Evercore declared a quarterly dividend of $0.34 per share to be paid on March 10, 2017 to common stockholders of record on February 24, 2017.

During the three months ended December 31, 2016 the Company repurchased approximately 94,000 shares/units at an average price per share/unit of $64.54. During the twelve months ended December 31, 2016, the Company repurchased a total of approximately 3.5 million shares/units at an average price per share/unit of $48.03.

Conference Call

Evercore will host a related conference call beginning at 8:00 a.m. Eastern Time, Wednesday, February 1, 2017, accessible via telephone and the internet. Investors and analysts may participate in the live conference call by dialing (877) 359-9508 (toll-free domestic) or (224) 357-2393 (international); passcode: 57095087. 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 (855) 859-2056 (toll-free domestic) or (404) 537-3406 (international); passcode: 57095087. 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

Established in 1995, Evercore is a leading global independent investment banking advisory firm. Evercore advises a diverse set of investment banking clients on a wide range of transactions and issues and provides institutional investors with high quality equity research, sales and trading execution that is free of the conflicts created by proprietary activities. The Firm also offers investment management services to high net worth and institutional investors. With 27 offices and affiliate offices in North America, Europe, South America and Asia, Evercore has the scale and strength to serve clients globally through a focused and tailored approach designed to meet their unique needs. More information about Evercore can be found on the Company's website at www.evercore.com.

Investor Contact:
Robert B. Walsh
Chief Financial Officer, Evercore
212-857-3100

Media Contact:
Dana Gorman
The Abernathy MacGregor Group, for Evercore
212-371-5999

Basis of Alternative Financial Statement Presentation

Our Adjusted results are a non-GAAP measure. As discussed further under "Non-GAAP Measures" above, 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 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 our U.S. GAAP results to Adjusted 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," "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 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, 2015, 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 Twelve
                    Months Ended December 31, 2016 and 2015        A-1

    Adjusted:

                   Adjusted Results (Unaudited)                    A-2

                   U.S. GAAP Reconciliation to Adjusted
                    Results (Unaudited)                            A-4

                   U.S. GAAP Segment Reconciliation to
                    Adjusted Results for the Three and Twelve
                    Months ended December 31, 2016 (Unaudited)     A-7

            U.S. GAAP Segment Reconciliation to
             Adjusted Results for the Three Months
             ended September 30, 2016 (Unaudited)                  A-8

            U.S. GAAP Segment Reconciliation to
             Adjusted Results for the Three and Twelve
             Months ended December 31, 2015 (Unaudited)            A-9

            U.S. GAAP Segment Reconciliation to
             Consolidated Results (Unaudited)                     A-10
            -----------------------------------                   ----

            Notes to Unaudited Condensed Consolidated
             Adjusted Financial Data                              A-11
            -----------------------------------------             ----




                                                                                      EVERCORE PARTNERS INC.

                                                                         CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                                                     THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2016 AND 2015

                                                                          (dollars in thousands, except per share data)

                                                                                           (UNAUDITED)


                                                 Three Months Ended December 31,                    Twelve Months Ended December 31,

                                                    2016                           2015                               2016           2015
                                                    ----                           ----                               ----           ----


    Revenues

    Investment Banking
     Revenue                                                $427,864                                     $384,111                         $1,364,098  $1,133,860

    Investment Management
     Revenue                                      17,965                           24,731                               75,807                 95,129

    Other Revenue                                  4,235                            2,603                               16,885                 11,259
                                                   -----                            -----                               ------                 ------

    Total Revenues                               450,064                          411,445                            1,456,790              1,240,248

    Interest Expense (1)                           4,695                            3,202                               16,738                 16,975

    Net Revenues                                 445,369                          408,243                            1,440,052              1,223,273
                                                 -------                          -------                            ---------              ---------


    Expenses

    Employee Compensation
     and Benefits                                267,631                          254,530                              900,590                788,175

    Occupancy and Equipment
     Rental                                       11,321                           12,072                               45,304                 47,703

    Professional Fees                             17,795                           14,810                               57,667                 50,817

    Travel and Related
     Expenses                                     15,207                           16,251                               57,465                 55,388

    Communications and
     Information Services                         10,333                            8,777                               40,277                 36,372

    Depreciation and
     Amortization                                  5,885                            6,815                               24,800                 27,927

    Special Charges                                8,100                            7,645                                8,100                 41,144

    Acquisition and
     Transition Costs                                 89                            2,951                                   99                  4,890

    Other Operating Expenses                      11,649                            9,729                               44,576                 42,187

    Total Expenses                               348,010                          333,580                            1,178,878              1,094,603
                                                 -------                          -------                            ---------              ---------


    Income Before Income
     from Equity Method
     Investments and Income
     Taxes                                        97,359                           74,663                              261,174                128,670

    Income from Equity
     Method Investments                            2,512                            2,016                                6,641                  6,050
                                                   -----                            -----                                -----                  -----

    Income Before Income
     Taxes                                        99,871                           76,679                              267,815                134,720

    Provision for Income
     Taxes                                        39,913                           46,703                              119,303                 77,030
                                                  ------                           ------                              -------                 ------

    Net Income                                    59,958                           29,976                              148,512                 57,690

    Net Income Attributable
     to Noncontrolling
     Interest                                     16,530                            9,374                               40,984                 14,827

    Net Income Attributable
     to Evercore Partners
     Inc.                                                    $43,428                                      $20,602                           $107,528     $42,863
                                                             =======                                      =======                           ========     =======


    Net Income Attributable
     to Evercore Partners
     Inc. Common
     Shareholders                                            $43,428                                      $20,602                           $107,528     $42,863
                                                             =======                                      =======                           ========     =======


    Weighted Average Shares of Class A
     Common Stock Outstanding:

    Basic                                         39,101                           38,681                               39,220                 37,161

    Diluted                                       44,524                           45,480                               44,193                 43,699


    Net Income Per Share Attributable to
     Evercore Partners Inc. Common
     Shareholders:

    Basic                                                      $1.11                                        $0.53                              $2.74       $1.15

    Diluted                                                    $0.98                                        $0.45                              $2.43       $0.98


    (1)  Includes interest expense on long-term debt and interest expense on short-term repurchase agreements.

Adjusted Results

Throughout the discussion of Evercore's business segments, information is presented on an Adjusted basis (formerly called "Adjusted Pro Forma"), 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 vested and unvested Evercore LP Units, as well as Acquisition Related Share Issuances and Unvested Restricted Stock Units granted to Lexicon and ISI employees, 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 Vesting of Evercore LP Units and Exchange into Class A Shares. The Company incurred expenses, in Employee Compensation and Benefits, resulting from the vesting of Class E LP Units issued in conjunction with the acquisition of ISI, as well as Class G and H LP Interests. The amount of expense for the Class G and H LP Interests is based on the determination that it is probable that Evercore ISI will achieve certain earnings and margin targets in 2016 and in future periods. The Adjusted results assume these LP Units and certain Class G and H LP Interests have vested and have been exchanged for Class A shares. Accordingly, any expense associated with these units, and related awards, is excluded from the Adjusted results, and 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 these previously granted equity interests, and thus the Adjusted results reflect the exchange of certain vested and unvested Evercore LP partnership units and interests and IPO related restricted stock unit awards into Class A shares.

2. Adjustments Associated with Business Combinations. The following charges resulting from business combinations 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. Amortization of Intangible Assets and Other Purchase Accounting-related Amortization. Amortization of intangible assets and other purchase accounting-related amortization from the acquisitions of ISI, SFS and certain other acquisitions.

b. Compensation Charges. Expenses for deferred consideration issued to the sellers of certain of the Company's acquisitions.

c. Acquisition and Transition Costs. Primarily professional fees incurred, as well as the reversal of a provision for certain settlements in 2016 and costs related to transitioning acquisitions or divestitures.

d. Fair Value of Contingent Consideration. The expense associated with changes in the fair value of contingent consideration issued to the sellers of certain of the Company's acquisitions is excluded from the Adjusted results.

e. Gain on Transfer of Ownership of Mexican Private Equity Business. The gain resulting from the transfer of ownership of the Mexican Private Equity business in the third quarter of 2016 is excluded from the Adjusted results.

3. Client Related Expenses. Client related expenses and provisions for uncollected receivables have been classified as a reduction of revenue in the Adjusted presentation. The Company's Management believes that this adjustment results in more meaningful key operating ratios, such as compensation to net revenues and operating margin.

4. Special Charges. Expenses during 2016 related to a charge for the impairment of our investment in Atalanta Sosnoff during the fourth quarter. Expenses during 2015 primarily related to a charge for the impairment of goodwill in the Institutional Asset Management reporting unit and charges related to the restructuring of our investment in Atalanta Sosnoff during the fourth quarter, primarily related to the conversion of certain of Atalanta Sosnoff's profits interests held by management to equity interests. Special Charges for 2015 also include separation benefits and costs associated with the termination of certain contracts within the Company's Evercore ISI business, as well as the finalization of a matter associated with the wind-down of the Company's U.S. Private Equity business.

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 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 certain Evercore LP Units and interests 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. In addition, the Adjusted presentation can reflect the netting of changes in the Company's Tax Receivable Agreement against Income Tax Expense.

6. Presentation of Interest Expense. The Adjusted 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 Investment Banking and Investment Management Operating Income are presented before interest expense on debt, which is included in interest expense on a U.S. GAAP basis.

7. 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 more meaningful presentation.

This release also presents changes in Adjusted Net Revenues, Adjusted Investment Management Net Revenues and Adjusted Investment Management Expenses from the prior-year periods assuming that the restructuring of certain Investment Management affiliates occurred on December 31, 2014. This includes the restructuring of Atalanta Sosnoff that occurred on December 31, 2015 and the transfer of ownership of the Mexican Private Equity Business that occurred on September 30, 2016. Evercore believes this is useful additional information for investors because it improves the comparability of period-over-period results and aligns with management's view of business performance.



                                                                                                                        EVERCORE PARTNERS INC.

                                                                                                             U.S. GAAP RECONCILIATION TO ADJUSTED RESULTS

                                                                                                            (dollars in thousands, except per share data)

                                                                                                                             (UNAUDITED)


                                                                          Three Months Ended                                                         Twelve Months Ended

                                                December 31,               September 30,               December 31,               December 31,               December 31,
                                                        2016                         2016                        2015                        2016                        2015
                                                        ----                         ----                        ----                        ----                        ----

    Net Revenues - U.S. GAAP                                    $445,369                                                $386,314                                               $408,243                $1,440,052 $1,223,273

    Client Related Expenses
     (1)                                            (8,324)                                 (6,205)                                   (7,984)                               (25,398)     (22,625)

    Income from Equity Method
     Investments (2)                                   2,512                                    1,178                                      2,016                                   6,641         6,050

    Interest Expense on Debt
     (3)                                              2,632                                    2,592                                      1,854                                  10,248         9,617

    Gain on Transfer of
     Ownership of Mexican
     Private Equity Business
     (4)                                                  -                                   (406)                                         -                                  (406)            -

    Other Purchase
     Accounting-related
     Amortization (8a)                                     -                                       -                                         -                                      -          106

    Net Revenues - Adjusted                                     $442,189                                                $383,473                                               $404,129                $1,431,137 $1,216,421
                                                                ========                                                ========                                               ========                ========== ==========


    Compensation Expense -
     U.S. GAAP                                                  $267,631                                                $231,710                                               $254,530                  $900,590   $788,175

    Amortization of LP Units
     /Interests and Certain
     Other Awards (5)                               (14,490)                                (13,859)                                  (17,550)                               (80,846)     (83,673)

    Other Acquisition Related
     Compensation Charges (6)                              -                                       -                                         -                                      -      (1,537)
                                                         ---                                                                                                                      ---

    Compensation Expense -
     Adjusted                                                   $253,141                                                $217,851                                               $236,980                  $819,744   $702,965
                                                                ========                                                ========                                               ========                  ========   ========


    Operating Income -U.S.
     GAAP                                                        $97,359                                                 $85,085                                                $74,663                  $261,174   $128,670

    Income from Equity Method
     Investments (2)                                   2,512                                    1,178                                      2,016                                   6,641         6,050
                                                       -----                                    -----                                      -----                                   -----         -----

    Pre-Tax Income - U.S.
     GAAP                                             99,871                                   86,263                                     76,679                                 267,815       134,720

    Gain on Transfer of
     Ownership of Mexican
     Private Equity Business
     (4)                                                  -                                   (406)                                         -                                  (406)            -

    Amortization of LP Units
     /Interests and Certain
     Other Awards (5)                                 14,490                                   13,859                                     17,550                                  80,846        83,673

    Other Acquisition Related
     Compensation Charges (6)                              -                                       -                                         -                                      -        1,537

    Special Charges (7)                                8,100                                        -                                     7,645                                   8,100        41,144

    Intangible Asset
     Amortization /Other
     Purchase Accounting-
     related Amortization
     (8a)                                              2,392                                    2,538                                      3,245                                  11,020        14,229

    Acquisition and
     Transition Costs (8b)                                89                                      339                                      2,951                                      99         4,890

    Fair Value of Contingent
     Consideration (8c)                                (564)                                     984                                       (93)                                  1,107         2,704
                                                        ----                                      ---                                        ---                                   -----         -----

    Pre-Tax Income - Adjusted                        124,378                                  103,577                                    107,977                                 368,581       282,897

    Interest Expense on Debt
     (3)                                              2,632                                    2,592                                      1,854                                  10,248         9,617

    Operating Income -
     Adjusted                                                   $127,010                                                $106,169                                               $109,831                  $378,829   $292,514
                                                                ========                                                ========                                               ========                  ========   ========


    Provision for Income
     Taxes -U.S. GAAP                                            $39,913                                                 $38,980                                                $46,703                  $119,303    $77,030

    Income Taxes (9)                                   7,301                                    1,211                                    (6,265)                                 20,837        28,604

    Provision for Income
     Taxes -Adjusted                                             $47,214                                                 $40,191                                                $40,438                  $140,140   $105,634
                                                                 =======                                                 =======                                                =======                  ========   ========


    Net Income Attributable
     to Evercore Partners
     Inc. -U.S. GAAP                                             $43,428                                                 $34,695                                                $20,602                  $107,528    $42,863

    Gain on Transfer of
     Ownership of Mexican
     Private Equity Business
     (4)                                                  -                                   (406)                                         -                                  (406)            -

    Amortization of LP Units
     /Interests and Certain
     Other Awards (5)                                 14,490                                   13,859                                     17,550                                  80,846        83,673

    Other Acquisition Related
     Compensation Charges (6)                              -                                       -                                         -                                      -        1,537

    Special Charges (7)                                8,100                                        -                                     7,645                                   8,100        41,144

    Intangible Asset
     Amortization /Other
     Purchase Accounting-
     related Amortization
     (8a)                                              2,392                                    2,538                                      3,245                                  11,020        14,229

    Acquisition and
     Transition Costs (8b)                                89                                      339                                      2,951                                      99         4,890

    Fair Value of Contingent
     Consideration (8c)                                (564)                                     984                                       (93)                                  1,107         2,704

    Income Taxes (9)                                 (7,301)                                 (1,211)                                     6,265                                (20,837)     (28,604)

    Noncontrolling Interest
     (10)                                            13,783                                   11,625                                      6,552                                  35,561         8,871

    Net Income Attributable
     to Evercore Partners
     Inc. -Adjusted                                              $74,417                                                 $62,423                                                $64,717                  $223,018   $171,307
                                                                 =======                                                 =======                                                =======                  ========   ========


    Diluted Shares
     Outstanding -U.S. GAAP                           44,524                                   43,734                                     45,480                                  44,193        43,699

    LP Units (11a)                                     7,544                                    7,604                                      7,501                                   7,479         9,261

    Unvested Restricted Stock
     Units -Event Based
     (11a)                                                12                                       12                                         12                                      12            12

    Acquisition Related Share
     Issuance (11b)                                        -                                       -                                         -                                      -           51

    Diluted Shares
     Outstanding -Adjusted                            52,080                                   51,350                                     52,993                                  51,684        53,023
                                                      ======                                   ======                                     ======                                  ======        ======


    Key Metrics: (a)
    ---------------

    Diluted Earnings Per
     Share -U.S. GAAP                                              $0.98                                                   $0.79                                                  $0.45                     $2.43      $0.98

    Diluted Earnings Per
     Share -Adjusted                                               $1.43                                                   $1.22                                                  $1.22                     $4.32      $3.23


    Compensation Ratio -U.S.
     GAAP                                              60.1%                                   60.0%                                     62.3%                                  62.5%        64.4%

    Compensation Ratio -
     Adjusted                                          57.2%                                   56.8%                                     58.6%                                  57.3%        57.8%


    Operating Margin -U.S.
     GAAP                                              21.9%                                   22.0%                                     18.3%                                  18.1%        10.5%

    Operating Margin -
     Adjusted                                          28.7%                                   27.7%                                     27.2%                                  26.5%        24.0%


    Effective Tax Rate -U.S.
     GAAP                                              40.0%                                   45.2%                                     60.9%                                  44.5%        57.2%

    Effective Tax Rate -
     Adjusted                                          38.0%                                   38.8%                                     37.5%                                  38.0%        37.3%


    (a) Reconciliations of the key metrics from U.S. GAAP to Adjusted results are a derivative of the reconciliations of their components above.



                                                                                                                         EVERCORE PARTNERS INC.

                                                                                               RECONCILIATION TO RESTRUCTURING OF INVESTMENT MANAGEMENT ADJUSTED RESULTS

                                                                                                                         (dollars in thousands)

                                                                                                                              (UNAUDITED)


                                                                  Three Months Ended                                                     Twelve Months Ended

                                              December 31,               December 31,            % Change                   December 31,                December 31,     % Change
                                                      2016                        2015                                                    2016                     2015
                                                      ----                        ----                                                    ----                     ----


    Adjusted Net Revenues
     (a)                                                      $442,189                                         $404,129                                9%                         $1,431,137     $1,216,421   18%

    Atalanta Sosnoff
     Deconsolidation (12)                                -                             (4,680)                                  NM                                   -            (20,529)    NM

    Transfer of Ownership
     of Mexican Private
     Equity Business (13)                                -                             (1,083)                                  NM                             (2,707)             (4,364)   38%
                                                       ---                              ------                                                                   ------               ------

    Adjusted Net Revenues -
     Including
     Restructuring of
     Investment Management
     Adjustments                                              $442,189                                         $398,366                               11%                         $1,428,430     $1,191,528   20%
                                                              ========                                         ========                                                           ==========     ==========


    Adjusted Investment
     Management Revenues
     (a)                                                       $18,771                                          $26,002                             (28)%                            $80,172       $100,127 (20)%

    Atalanta Sosnoff
     Deconsolidation (12)                                -                             (4,680)                                  NM                                   -            (20,525)    NM

    Transfer of Ownership
     of Mexican Private
     Equity Business (13)                                -                             (1,083)                                  NM                             (2,707)             (4,364)   38%
                                                       ---                              ------                                                                   ------               ------

    Adjusted Investment
     Management Revenues -
     Including
     Restructuring of
     Investment Management
     Adjustments                                               $18,771                                          $20,239                              (7)%                            $77,465        $75,238    3%
                                                               =======                                          =======                                                              =======        =======


    Adjusted Investment
     Management Expenses
     (a)                                                       $10,780                                          $19,176                             (44)%                            $56,473        $77,157 (27)%

    Atalanta Sosnoff
     Deconsolidation (12)                                -                             (4,615)                                  NM                                   -            (20,173)    NM

    Transfer of Ownership
     of Mexican Private
     Equity Business (13)                                -                               (950)                                  NM                             (2,516)             (3,936)   36%
                                                       ---                                ----                                                                   ------               ------

    Adjusted Investment
     Management Expenses -
     Including
     Restructuring of
     Investment Management
     Adjustments                                               $10,780                                          $13,611                             (21)%                            $53,957        $53,048    2%
                                                               =======                                          =======                                                              =======        =======


    (a)  See page A-4 for reconciliations of U.S. GAAP to Adjusted results.



                                                                           EVERCORE PARTNERS INC.

                                                                U.S. GAAP RECONCILIATION TO ADJUSTED RESULTS

                                                                           TRAILING TWELVE MONTHS

                                                                           (dollars in thousands)

                                                                                (UNAUDITED)

                                                                               Consolidated
                                                                               ------------

                                                                           Twelve Months Ended

                                                December 31,                 September 30,               December 31,
                                                        2016                           2016                        2015
                                                        ----                           ----                        ----

    Net Revenues - U.S. GAAP                                    $1,440,052                                                $1,402,926               $1,223,273

    Client Related Expenses
     (1)                                           (25,398)                                  (25,058)                                  (22,625)

    Income from Equity Method
     Investments (2)                                   6,641                                      6,145                                      6,050

    Interest Expense on Debt
     (3)                                             10,248                                      9,470                                      9,617

    Gain on Transfer of
     Ownership of Mexican
     Private Equity Business
     (4)                                              (406)                                     (406)                                         -

    Other Purchase
     Accounting-related
     Amortization (8a)                                     -                                         -                                       106

    Net Revenues - Adjusted                                     $1,431,137                                                $1,393,077               $1,216,421
                                                                ==========                                                ==========               ==========


    Compensation Expense -
     U.S. GAAP                                                    $900,590                                                  $887,489                 $788,175

    Amortization of LP Units
     /Interests and Certain
     Other Awards (5)                               (80,846)                                  (83,906)                                  (83,673)

    Other Acquisition Related
     Compensation Charges (6)                              -                                         -                                   (1,537)

    Compensation Expense -
     Adjusted                                                     $819,744                                                  $803,583                 $702,965
                                                                  ========                                                  ========                 ========


    Compensation Ratio -U.S.
     GAAP (a)                                          62.5%                                     63.3%                                     64.4%

    Compensation Ratio -
     Adjusted (a)                                      57.3%                                     57.7%                                     57.8%


                                                                            Investment Banking
                                                                            ------------------

                                                                           Twelve Months Ended

                                                December 31,                 September 30,               December 31,
                                                        2016                           2016                        2015
                                                        ----                           ----                        ----

    Net Revenues - U.S. GAAP                                    $1,363,859                                                $1,320,544               $1,130,915

    Client Related Expenses
     (1)                                           (24,492)                                  (24,389)                                  (22,551)

    Income from Equity Method
     Investments (2)                                   1,370                                        646                                        978

    Interest Expense on Debt
     (3)                                              9,578                                      8,098                                      6,041

    Other Purchase
     Accounting-related
     Amortization (8a)                                     -                                         -                                       106

    Net Revenues - Adjusted                                     $1,350,315                                                $1,304,899               $1,115,489
                                                                ==========                                                ==========               ==========


    Compensation Expense -
     U.S. GAAP                                                    $861,139                                                  $841,403                 $734,078

    Amortization of LP Units
     /Interest and Certain
     Other Awards (5)                               (80,846)                                  (83,906)                                  (83,673)

    Other Acquisition Related
     Compensation Charges (6)                              -                                         -                                   (1,537)

    Compensation Expense -
     Adjusted                                                     $780,293                                                  $757,497                 $648,868
                                                                  ========                                                  ========                 ========


    Compensation Ratio -U.S.
     GAAP (a)                                          63.1%                                     63.7%                                     64.9%

    Compensation Ratio -
     Adjusted (a)                                      57.8%                                     58.1%                                     58.2%


    (a)  Reconciliations of the key metrics from U.S. GAAP to Adjusted results are a derivative of the reconciliations of their components above.




                                                                                                                                         EVERCORE PARTNERS INC.

                                                                                                                          U.S. GAAP SEGMENT RECONCILIATION TO ADJUSTED RESULTS

                                                                                                                        FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2016

                                                                                                                                         (dollars in thousands)

                                                                                                                                              (UNAUDITED)


                                                                                                    Investment Banking Segment

                                                          Three Months Ended December 31, 2016                                           Twelve Months Ended December 31, 2016

                                           U.S. GAAP                Adjustments                  Non-GAAP                     U.S. GAAP                    Adjustments                     Non-GAAP
                                              Basis                                           Adjusted Basis                    Basis                                                   Adjusted Basis
                                              -----                                           --------------                    -----                                                   --------------

    Net Revenues:

    Investment Banking
     Revenue                                             $427,864                                               $(6,618)                (1)(2)                    $421,246                                       $1,364,098                           $(23,122)  (1)(2)   $1,340,976

    Other Revenue, net                          (509)                                 2,632                          (3)       2,123                                 (239)                               9,578                (3)   9,339

    Net Revenues                              427,355                                (3,986)                                         423,369                                1,363,859                            (13,544)                 1,350,315
                                              -------                                 ------                                          -------                                ---------                             -------                  ---------


    Expenses:

    Employee
     Compensation and
     Benefits                                 261,125                               (14,490)                         (5)     246,635                               861,139                             (80,846)               (5) 780,293

    Non-compensation
     Costs                                     67,674                                (9,910)                         (8)      57,764                               251,360                             (35,818)               (8) 215,542

    Total Expenses                            328,799                               (24,400)                                         304,399                                1,112,499                           (116,664)                   995,835
                                              -------                                -------                                          -------                                ---------                            --------                    -------


    Operating Income (a)                                  $98,556                                                $20,414                                          $118,970                                         $251,360                            $103,120             $354,480
                                                          =======                                                =======                                          ========                                         ========                            ========             ========


    Compensation Ratio
     (b)                                        61.1%                                                             58.3%                              63.1%                                                         57.8%

    Operating Margin (b)                        23.1%                                                             28.1%                              18.4%                                                         26.3%


                                                                                                   Investment Management Segment

                                                          Three Months Ended December 31, 2016                                           Twelve Months Ended December 31, 2016

                                           U.S. GAAP                Adjustments                  Non-GAAP                     U.S. GAAP                    Adjustments                     Non-GAAP
                                              Basis                                           Adjusted Basis                    Basis                                                   Adjusted Basis
                                              -----                                           --------------                    -----                                                   --------------

    Net Revenues:

    Investment
     Management Revenue                                   $17,965                                                   $806                 (1)(2)                     $18,771                                          $75,807                              $4,365   (1)(2)      $80,172

    Other Revenue, net                             49                                      -                                              49                                      386                                 264         (3)(4)          650

    Net Revenues                               18,014                                    806                                           18,820                                   76,193                               4,629                     80,822
                                               ------                                    ---                                           ------                                   ------                               -----                     ------


    Expenses:

    Employee
     Compensation and
     Benefits                                   6,506                                      -                                             6,506                                   39,451                                   -                    39,451

    Non-compensation
     Costs                                      4,605                                  (331)                         (8)       4,274                                18,828                              (1,806)               (8)  17,022

    Special Charges                             8,100                                (8,100)                         (7)           -                                8,100                              (8,100)               (7)       -

    Total Expenses                             19,211                                (8,431)                                          10,780                                   66,379                             (9,906)                    56,473
                                               ------                                 ------                                           ------                                   ------                              ------                     ------


    Operating Income
     (Loss) (a)                                          $(1,197)                                                $9,237                                            $8,040                                           $9,814                             $14,535              $24,349
                                                          =======                                                 ======                                            ======                                           ======                             =======              =======


    Compensation Ratio
     (b)                                        36.1%                                                             34.6%                              51.8%                                                         48.8%

    Operating Margin (b)                       (6.6)%                                                             42.7%                              12.9%                                                         30.1%


    (a) Operating Income (Loss) for U.S. GAAP excludes Income (Loss) from Equity Method Investments.

    (b) Reconciliations of the key metrics from U.S. GAAP to Adjusted results are a derivative of the reconciliations of their components above.




                                                                  EVERCORE PARTNERS INC.

                                                   U.S. GAAP SEGMENT RECONCILIATION TO ADJUSTED RESULTS

                                                       FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016

                                                                  (dollars in thousands)

                                                                        (UNAUDITED)


                                                               Investment Banking Segment
                                                               --------------------------

                                                          Three Months Ended September 30, 2016

                                           U.S. GAAP                Adjustments                  Non-GAAP
                                              Basis                                           Adjusted Basis
                                              -----                                           --------------

    Net Revenues:

    Investment Banking
     Revenue                                             $368,434                                               $(6,060)                (1)(2)    $362,374

    Other Revenue, net                            200                                  2,592                          (3)       2,792

    Net Revenues                              368,634                                (3,468)                                 365,166
                                              -------                                 ------                                  -------


    Expenses:

    Employee
     Compensation and
     Benefits                                 221,380                               (13,859)                         (5)     207,521

    Non-compensation
     Costs                                     64,708                                (9,511)                         (8)      55,197

    Total Expenses                            286,088                               (23,370)                                 262,718
                                              -------                                -------                                  -------


    Operating Income (a)                                  $82,546                                                $19,902                          $102,448
                                                          =======                                                =======                          ========


    Compensation Ratio
     (b)                                        60.1%                                                             56.8%

    Operating Margin (b)                        22.4%                                                             28.1%


                                                              Investment Management Segment
                                                              -----------------------------

                                                          Three Months Ended September 30, 2016

                                           U.S. GAAP                Adjustments                  Non-GAAP
                                                                                            Adjusted Basis
                                              Basis
                                              -----

    Net Revenues:

    Investment
     Management Revenue                                   $17,158                                                 $1,033                 (1)(2)     $18,191

    Other Revenue, net                            522                                  (406)                         (4)         116

    Net Revenues                               17,680                                    627                                   18,307
                                               ------                                    ---                                   ------


    Expenses:

    Employee
     Compensation and
     Benefits                                  10,330                                      -                                  10,330

    Non-compensation
     Costs                                      4,811                                  (555)                         (8)       4,256

    Total Expenses                             15,141                                  (555)                                  14,586
                                               ------                                   ----                                   ------


    Operating Income (a)                                   $2,539                                                 $1,182                            $3,721
                                                           ======                                                 ======                            ======


    Compensation Ratio
     (b)                                        58.4%                                                             56.4%

    Operating Margin (b)                        14.4%                                                             20.3%


    (a)  Operating Income for U.S. GAAP excludes Income (Loss) from Equity Method Investments.

    (b)  Reconciliations of the key metrics from U.S. GAAP to Adjusted results are a derivative of the reconciliations of their components above.




                                                                                                                                         EVERCORE PARTNERS INC.

                                                                                                                          U.S. GAAP SEGMENT RECONCILIATION TO ADJUSTED RESULTS

                                                                                                                         FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2015

                                                                                                                                         (dollars in thousands)

                                                                                                                                               (UNAUDITED)


                                                                                                      Investment Banking Segment

                                                          Three Months Ended December 31, 2015                                             Twelve Months Ended December 31, 2015

                                           U.S. GAAP                Adjustments                  Non-GAAP                     U.S. GAAP                    Adjustments                     Non-GAAP
                                              Basis                                           Adjusted Basis                    Basis                                                   Adjusted Basis
                                              -----                                           --------------                    -----                                                   --------------

    Net Revenues:

    Investment Banking
     Revenue                                             $384,111                                               $(7,239)                (1)(2)                    $376,872                                     $1,133,860                                 $(21,573)  (1)(2)   $1,112,287

    Other Revenue, net                           (71)                                 1,152                          (3)       1,081                               (2,945)                             6,147               (3)(8a)             3,202

    Net Revenues                              384,040                                (6,087)                                         377,953                                1,130,915                          (15,426)                              1,115,489
                                              -------                                 ------                                          -------                                ---------                           -------                               ---------


    Expenses:

    Employee
     Compensation and
     Benefits                                 241,389                               (17,550)                         (5)     223,839                               734,078                           (85,210)                  (5)(6)  648,868

    Non-compensation
     Costs                                     65,283                               (14,000)                         (8)      51,283                               241,811                           (43,929)                     (8) 197,882

    Special Charges                                 -                                     -                                               -                                   2,151                           (2,151)                 (7)        -

    Total Expenses                            306,672                               (31,550)                                         275,122                                  978,040                         (131,290)                                846,750
                                              -------                                -------                                          -------                                  -------                          --------                                 -------


    Operating Income (a)                                  $77,368                                                $25,463                                          $102,831                                       $152,875                                  $115,864             $268,739
                                                          =======                                                =======                                          ========                                       ========                                  ========             ========


    Compensation Ratio
     (b)                                        62.9%                                                             59.2%                              64.9%                                                       58.2%

    Operating Margin (b)                        20.1%                                                             27.2%                              13.5%                                                       24.1%


                                                                                                     Investment Management Segment

                                                          Three Months Ended December 31, 2015                                             Twelve Months Ended December 31, 2015

                                           U.S. GAAP                Adjustments                  Non-GAAP                     U.S. GAAP                    Adjustments                     Non-GAAP
                                              Basis                                           Adjusted Basis                    Basis                                                   Adjusted Basis
                                              -----                                           --------------                    -----                                                   --------------

    Net Revenues:

    Investment
     Management Revenue                                   $24,731                                                 $1,271                 (1)(2)                     $26,002                                        $95,129                                    $4,998   (1)(2)     $100,127

    Other Revenue, net                          (528)                                   702                          (3)         174                               (2,771)                             3,576                      (3)     805

    Net Revenues                               24,203                                  1,973                                           26,176                                   92,358                             8,574                                 100,932
                                               ------                                  -----                                           ------                                   ------                             -----                                 -------


    Expenses:

    Employee
     Compensation and
     Benefits                                  13,141                                      -                                            13,141                                   54,097                                 -                                   54,097

    Non-compensation
     Costs                                      6,122                                   (87)                         (8)       6,035                                23,473                              (413)                     (8)  23,060

    Special Charges                             7,645                                (7,645)                         (7)           -                               38,993                           (38,993)                     (7)       -

    Total Expenses                             26,908                                (7,732)                                          19,176                                  116,563                          (39,406)                                 77,157
                                               ------                                 ------                                           ------                                  -------                           -------                                  ------


    Operating Income
     (Loss) (a)                                          $(2,705)                                                $9,705                                            $7,000                                      $(24,205)                                  $47,980              $23,775
                                                          =======                                                 ======                                            ======                                       ========                                   =======              =======


    Compensation Ratio
     (b)                                        54.3%                                                             50.2%                              58.6%                                                       53.6%

    Operating Margin (b)                      (11.2)%                                                             26.7%                            (26.2)%                                                       23.6%


    (a) Operating Income (Loss) for U.S. GAAP excludes Income (Loss) from Equity Method Investments.

    (b) Reconciliations of the key metrics from U.S. GAAP to Adjusted results are a derivative of the reconciliations of their components above.




                                                                                                                   EVERCORE PARTNERS INC.

                                                                                                  U.S. GAAP SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS

                                                                                                                   (dollars in thousands)

                                                                                                                        (UNAUDITED)


                                                                                               U.S. GAAP

                                                                      Three Months Ended                                                  Twelve Months Ended

                                            December 31,               September 30,              December 31,                  December 31,                  December 31,
                                                    2016                         2016                       2015                               2016                        2015
                                                    ----                         ----                       ----                               ----                        ----

    Investment Banking

    Net Revenues:

    Investment Banking
     Revenue                                                $427,864                                               $368,434                                     $384,111                   $1,364,098  $1,133,860

    Other Revenue, net                             (509)                                    200                                    (71)                           (239)         (2,945)

    Net Revenues                                 427,355                                 368,634                                 384,040                        1,363,859        1,130,915
                                                 -------                                 -------                                 -------                        ---------        ---------


    Expenses:

    Employee Compensation
     and Benefits                                261,125                                 221,380                                 241,389                          861,139          734,078

    Non-compensation
     Costs                                        67,674                                  64,708                                  65,283                          251,360          241,811

    Special Charges                                    -                                      -                                      -                               -           2,151

    Total Expenses                               328,799                                 286,088                                 306,672                        1,112,499          978,040
                                                 -------                                 -------                                 -------                        ---------          -------


    Operating Income (a)                                     $98,556                                                $82,546                                      $77,368                     $251,360    $152,875
                                                             =======                                                =======                                      =======                     ========    ========


    Investment Management

    Net Revenues:

    Investment Management
     Revenue                                                 $17,965                                                $17,158                                      $24,731                      $75,807     $95,129

    Other Revenue, net                                49                                     522                                   (528)                             386          (2,771)

    Net Revenues                                  18,014                                  17,680                                  24,203                           76,193           92,358
                                                  ------                                  ------                                  ------                           ------           ------


    Expenses:

    Employee Compensation
     and Benefits                                  6,506                                  10,330                                  13,141                           39,451           54,097

    Non-compensation
     Costs                                         4,605                                   4,811                                   6,122                           18,828           23,473

    Special Charges                                8,100                                       -                                  7,645                            8,100           38,993

    Total Expenses                                19,211                                  15,141                                  26,908                           66,379          116,563
                                                  ------                                  ------                                  ------                           ------          -------


    Operating Income
     (Loss) (a)                                             $(1,197)                                                $2,539                                     $(2,705)                      $9,814   $(24,205)
                                                             =======                                                 ======                                      =======                       ======    ========


    Total

    Net Revenues:

    Investment Banking
     Revenue                                                $427,864                                               $368,434                                     $384,111                   $1,364,098  $1,133,860

    Investment Management
     Revenue                                      17,965                                  17,158                                  24,731                           75,807           95,129

    Other Revenue, net                             (460)                                    722                                   (599)                             147          (5,716)

    Net Revenues                                 445,369                                 386,314                                 408,243                        1,440,052        1,223,273
                                                 -------                                 -------                                 -------                        ---------        ---------


    Expenses:

    Employee Compensation
     and Benefits                                267,631                                 231,710                                 254,530                          900,590          788,175

    Non-compensation
     Costs                                        72,279                                  69,519                                  71,405                          270,188          265,284

    Special Charges                                8,100                                       -                                  7,645                            8,100           41,144

    Total Expenses                               348,010                                 301,229                                 333,580                        1,178,878        1,094,603
                                                 -------                                 -------                                 -------                        ---------        ---------


    Operating Income (a)                                     $97,359                                                $85,085                                      $74,663                     $261,174    $128,670
                                                             =======                                                =======                                      =======                     ========    ========


    (a) Operating Income (Loss) excludes Income (Loss) from Equity Method Investments.


Notes to Unaudited Condensed Consolidated Adjusted Financial Data

For further information on these adjustments, see page A-2.

(1) Client related expenses and provisions for uncollected receivables have been reclassified as a reduction of Revenue in the Adjusted presentation.

(2) Income (Loss) from Equity Method Investments has been reclassified to Revenue in the Adjusted presentation.

(3) Interest Expense on Debt is excluded from the Adjusted 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 gain resulting from the transfer of ownership of the Mexican Private Equity business in the third quarter of 2016 is excluded from the Adjusted presentation.

(5) Expenses incurred from the assumed vesting of Class E LP Units and Class G and H LP Interests issued in conjunction with the acquisition of ISI are excluded from the Adjusted presentation.

(6) Expenses for deferred consideration issued to the sellers of certain of the Company's acquisitions are excluded from the Adjusted presentation.

(7) Expenses during 2016 related to a charge for the impairment of our investment in Atalanta Sosnoff during the fourth quarter. Expenses during 2015 primarily related to a $28.5 million charge for the impairment of goodwill in the Institutional Asset Management reporting unit and charges of $7.1 million related to the restructuring of our investment in Atalanta Sosnoff during the fourth quarter, primarily related to the conversion of certain of Atalanta Sosnoff's profits interests held by management to equity interests. Expenses during 2015 also include charges of $2.2 million related to separation benefits and costs associated with the termination of certain contracts within the Company's Evercore ISI business, as well as $3.3 million related to the finalization of a matter associated with the wind-down of the Company's U.S. Private Equity business.

(8) Non-compensation Costs on an Adjusted basis reflect the following adjustments:



                                        Three Months Ended December 31, 2016

                             U.S. GAAP                Adjustments              Adjusted
                             ---------                -----------              --------

                                               (dollars in thousands)

    Occupancy and Equipment
     Rental                                 $11,321                                     $         -           $11,321

    Professional Fees            17,795                                (4,813)                  (1)  12,982

    Travel and Related
     Expenses                    15,207                                (2,999)                  (1)  12,208

    Communications and
     Information Services        10,333                                   (28)                  (1)  10,305

    Depreciation and
     Amortization                 5,885                                (2,392)                 (8a)   3,493

    Acquisition and
     Transition Costs                89                                   (89)                 (8b)       -

    Other Operating Expenses     11,649                                     80               (1)(8c)  11,729

    Total Non-compensation
     Costs                                  $72,279                                       $(10,241)           $62,038
                                            =======                                        ========            =======


                                     Three Months Ended September 30, 2016

                             U.S. GAAP                Adjustments              Adjusted
                             ---------                -----------              --------

                                             (dollars in thousands)

    Occupancy and Equipment
     Rental                                 $12,627                                     $         -           $12,627

    Professional Fees            15,419                                (2,922)                  (1)  12,497

    Travel and Related
     Expenses                    12,440                                (1,989)                  (1)  10,451

    Communications and
     Information Services        10,155                                   (20)                  (1)  10,135

    Depreciation and
     Amortization                 5,907                                (2,538)                 (8a)   3,369

    Acquisition and
     Transition Costs               339                                  (339)                 (8b)       -

    Other Operating Expenses     12,632                                (2,258)              (1)(8c)  10,374

    Total Non-compensation
     Costs                                  $69,519                                       $(10,066)           $59,453
                                            =======                                        ========            =======


                                      Three Months Ended December 31, 2015

                             U.S. GAAP                Adjustments              Adjusted
                             ---------                -----------              --------

                                             (dollars in thousands)

    Occupancy and Equipment
     Rental                                 $12,072                                     $         -           $12,072

    Professional Fees            14,810                                (3,523)                  (1)  11,287

    Travel and Related
     Expenses                    16,251                                (4,211)                  (1)  12,040

    Communications and
     Information Services         8,777                                   (25)                  (1)   8,752

    Depreciation and
     Amortization                 6,815                                (3,245)                 (8a)   3,570

    Acquisition and
     Transition Costs             2,951                                (2,951)                 (8b)       -

    Other Operating Expenses      9,729                                  (132)              (1)(8c)   9,597

    Total Non-compensation
     Costs                                  $71,405                                       $(14,087)           $57,318
                                            =======                                        ========            =======


                                     Twelve Months Ended December 31, 2016

                             U.S. GAAP                Adjustments              Adjusted
                             ---------                -----------              --------

                                             (dollars in thousands)

    Occupancy and Equipment
     Rental                                 $45,304                                     $         -           $45,304

    Professional Fees            57,667                               (12,105)                  (1)  45,562

    Travel and Related
     Expenses                    57,465                               (10,606)                  (1)  46,859

    Communications and
     Information Services        40,277                                   (87)                  (1)  40,190

    Depreciation and
     Amortization                24,800                               (11,020)                 (8a)  13,780

    Acquisition and
     Transition Costs                99                                   (99)                 (8b)       -

    Other Operating Expenses     44,576                                (3,707)              (1)(8c)  40,869

    Total Non-compensation
     Costs                                 $270,188                                       $(37,624)          $232,564
                                           ========                                        ========           ========


                                     Twelve Months Ended December 31, 2015

                             U.S. GAAP                Adjustments              Adjusted
                             ---------                -----------              --------

                                             (dollars in thousands)

    Occupancy and Equipment
     Rental                                 $47,703                                     $         -           $47,703

    Professional Fees            50,817                                (7,929)                  (1)  42,888

    Travel and Related
     Expenses                    55,388                               (13,030)                  (1)  42,358

    Communications and
     Information Services        36,372                                   (60)                  (1)  36,312

    Depreciation and
     Amortization                27,927                               (14,123)                 (8a)  13,804

    Acquisition and
     Transition Costs             4,890                                (4,890)                 (8b)       -

    Other Operating Expenses     42,187                                (4,310)              (1)(8c)  37,877

    Total Non-compensation
     Costs                                 $265,284                                       $(44,342)          $220,942
                                           ========                                        ========           ========

(8a) The exclusion from the Adjusted presentation of expenses associated with amortization of intangible assets and other purchase accounting-related amortization from the acquisitions of ISI, SFS and certain other acquisitions.

(8b) Primarily professional fees incurred, as well as the reversal of a provision for certain settlements in 2016 and costs related to transitioning acquisitions or divestitures.

(8c) The expense associated with changes in the fair value of contingent consideration issued to the sellers of certain of the Company's acquisitions is excluded from the Adjusted results.

(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 Evercore's effective tax rate assuming 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. In addition, the Adjusted presentation can reflect the netting of changes in the Company's Tax Receivable Agreement against Income Tax Expense.

(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 in the Adjusted presentation.

(11a) Assumes the vesting, and exchange into Class A shares, of certain Evercore LP partnership units and interests and IPO related restricted stock unit awards in the Adjusted presentation. In the computation of outstanding common stock equivalents for U.S. GAAP net income per share, the Evercore LP partnership units are anti-dilutive.

(11b) Assumes the vesting of all Acquisition Related Share Issuances and Unvested Restricted Stock Units granted to Lexicon employees in the Adjusted presentation. 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.

(12) Assumes the restructuring of Atalanta Sosnoff had occurred as of the beginning of the prior period presented and reflects adjustments to eliminate the revenue and expenses that were previously consolidated from Atalanta Sosnoff and the addition of income from Atalanta Sosnoff if its results had been reflected on the equity method of accounting. Management believes this adjustment is useful to investors to compare Evercore's results across periods.

(13) Assumes the transfer of ownership of the Mexican Private Equity business had occurred as of the beginning of the prior period presented and reflects adjustments to eliminate the management fees and expenses that were previously recorded from the Mexican Private Equity business and the addition of income from the Mexican Private Equity business if its results were based on the percentage of the management fees that the Company is currently entitled to. Management believes this adjustment is useful to investors to compare Evercore's results across periods.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/evercore-reports-record-full-year-and-fourth-quarter-results-quarterly-dividend-of-034-per-share-300400095.html

SOURCE Evercore Partners Inc.