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Greenhill & Co. Reports Fourth Quarter Earnings Per Share Of $0.50 And Annual Earnings Per Share Of $1.38

Greenhill & Co. Reports Fourth Quarter Earnings Per Share Of $0.50 And Annual
                         Earnings Per Share Of $1.38

PR Newswire

NEW YORK, Jan. 23, 2013

NEW YORK, Jan. 23, 2013 /PRNewswire/ --

  oQuarterly advisory revenues highest since 2007 and third largest in Firm's
    history, up 17% from prior year fourth quarter
  oAnnual advisory revenues down 4% from prior year while worldwide overall
    volume of M&A completions declined 14%(1)
  oTotal revenues, as well as cost ratios and profit margins, negatively
    impacted in the fourth quarter by an investment loss of $8.1 million as
    compared to a gain of $9.0 million in fourth quarter of prior year
  oCompensation ratio for the fourth quarter and the full year at 53% of
    total revenues, similar to last year despite slightly lower total revenues
  oPre-tax profit margin of 31% for the fourth quarter and 25% for the full
    year
  oAccelerated liquidation of investments with sale of entire interest in
    Greenhill Capital Partners Europe, L.P. for $27.2 million, resulting in a
    loss of $3.4 million
  oLoss on European investments non-deductible for tax purposes, which
    together with heavy concentration of advisory revenues in the U.S.
    resulted in higher than typical effective tax rates of 46% for the quarter
    and 40% for the year
  oRepurchased 855,608 shares of our common stock during the fourth quarter
    through open market transactions; for the full year 2012, repurchased
    1,896,434 shares of our common stock and common stock equivalents at an
    average price of $43.85 per share
  oShare count increased by 659,926 (prior to repurchases) in fourth quarter
    as a result of early achievement of 3-year revenue target by our
    Australian entity acquired in 2010
  oBoard authorized up to $100 million of share repurchases in 2013

(1) Global M&A completed transaction volume for the years ended December 31,
2012and December 31, 2011. Source: Thomson Financial as of January 21, 2013.

Greenhill & Co., Inc. (NYSE: GHL) today reported revenues of $285.1 million,
income before tax of $70.5 million and net income allocated to common
stockholders of $42.1 million for the year ended December31, 2012.Diluted
earnings per share were $1.38 for the year ended December31, 2012.

The Firm's 2012 revenues compare with revenues of $294.0 million for 2011,
which represents a decrease of $8.9 million, or 3%. Advisory revenues for
2012 were $291.5 million, compared with $302.8 million for 2011, representing
a decrease of $11.3 million, or 4%.

The Firm's 2012 income before tax of $70.5 million compares to income before
tax of $68.7 million for the year ended December 31, 2011, representing an
increase of $1.8 million, or 3%. Net income allocated to common stockholders
of $42.1 million and diluted earnings per shareof $1.38 for 2012,compare
with net income allocated to common stockholders of $44.6 million and diluted
earnings per shareof $1.44 for 2011,representing decreases of $2.5 million,
or 6%, and $0.06 per share, or 4%, respectively. Our 2012 net income was
impacted by an increase in our effective tax rate from 35% in 2011 to 40% in
2012 due in part to the one-time effect of non-deductible capitallosses
recognized on the sale of our European investments.

The Firm's fourth quarter revenues were $92.3 million, which compares to
revenues of $94.5 million for the fourth quarter of 2011, representing a
decrease of $2.2 million, or 2%. Advisory revenues for the fourth quarter of
2012 were $100.4 million, which compares to $85.5 million for the fourth
quarter of 2011, representing an increase of $14.9 million, or 17%.

The Firm's fourth quarter income before tax was $28.2 million, which compares
to income before tax of $25.1 million in the fourth quarter of 2011,
representing an increase of $3.1 million, or 12%. Net income allocated to
common stockholders for the fourth quarter of 2012 was $15.1 million, which
compares to net income allocated to common stockholders of $16.1 million in
the fourth quarter of 2011, representing a decrease of $1.0 million, or
6%.Diluted earnings per share for the fourth quarter of 2012 were $0.50,
which compares with $0.53 for the fourth quarter of 2011, representing a
decrease of $0.03 per share, or 6%.As mentioned above, our net income
allocated to common stockholders was negatively impacted by the fourth quarter
non-deductible loss recognized on the sale of our European investments.

The Firm's revenues, income before tax and net income can fluctuate materially
depending on the number and size of completed transactions on which it
advised, the size of investment gains (or losses), and other factors.
Accordingly, the revenues and net income in any particular period may not be
indicative of future results.

"Despite continued challenging market conditions, 2012 was a year of strong
performance relative to our four primary objectives: increasing market share,
achieving the highest pretax profit margin among our closest peers,
maintaining a strong dividend and maintaining a flat or declining share count.
Our advisory revenue for the year was down only 4% despite global completed
transaction activity declining by 14%, and based on advisory revenue reported
by our large bank competitors to date it appears that we again increased our
market share of the fee pool in 2012. By keeping non-compensation costs flat
and maintaining a compensation ratio consistent with last year despite
slightly lower total revenue, we achieved a pre-tax profit margin of 25%. And
we not only continued our strong dividend policy but repurchased nearly 1.9
million shares during the year while maintaining a balance sheet with no net
debt. The scale of our repurchases in the fourth quarter was facilitated by
the sale of Greenhill Capital Partners Europe, L.P., the largest private fund
interest remaining from our exit from the investing business some years ago.
While the sale resulted in a small investment loss and caused us to incur an
unusually high tax rate, we believed it was attractive to shareholders because
it accelerated the liquidation of our investments and facilitated greater
share repurchases at prices we found attractive," Robert F. Greenhill,
Chairman, said.

"In the fourth quarter the general market for transaction activity finally saw
a meaningful improvement, resulting in the most active quarter for global
mergers and acquisitions in several years. We had signaled six months ago that
we were seeing a significant increase in transaction activity within our Firm,
and since then we have seen a much improved flow of important transaction
announcements, resulting in the fourth quarter being our best for advisory
revenue since 2007. While our business continues to have three strong
regional pillars in North America, Europe and Australia, most of our recent
success relates to the U.S. market, where conditions seem to have improved the
most. As and when market activity in the other regions picks up, we should see
further significant improvement in our results, which in turn would allow us
to bring down our compensation ratio and increase our profit margin. We are
also pleased with the expanding breadth of advisory services we can offer
clients, demonstrated by the fact that, alongside continuing success in M&A
transactions, an increased share of our revenues came from advising on
financings, restructurings and other matters. For the near term, it is clear
that we began the new year with a far more attractive backlog of announced and
pending transactions than we had a year ago, and that is the basis for our
Board authorizing $100 million of share repurchases for 2013. For the medium
to longer term, we feel even more confident that we will benefit as both
clients and talented advisors turn away from the large banks with their many
conflicts and challenges toward independent advisory firms. Within that group,
Greenhill stands out as the only one solely focused on the client advisory
business, with teams of senior bankers in each of the primary transaction
markets globally and with the capability to offer advisory expertise on a wide
range of matters to corporations, institutions and governments," Scott L. Bok,
Chief Executive Officer, commented.

Revenues

Revenues by Source

The following provides a breakdown of total revenues by source for the three
month periods and years ended December31, 2012 and 2011, respectively:

                    For the Three Months Ended
                    December31, 2012      December31, 2011
                    Amount     % of Total  Amount     % of Total
                    (in millions, unaudited)
Advisory revenues   $  100.4   109    %    $  85.5    91     %
Investment revenues (8.1)      (9)    %    9.0        9      %
Total revenues      $  92.3    100    %    $  94.5    100    %



                    For the Year Ended
                    December31, 2012      December31, 2011
                    Amount     % of Total  Amount     % of Total
                    (in millions, unaudited)
Advisory revenues   $  291.5   102    %    $  302.8   103    %
Investment revenues (6.4)      (2)    %    (8.8)      (3)    %
Total revenues      $  285.1   100    %    $  294.0   100    %

Advisory Revenues

Full Year

For year ended December31, 2012, advisory revenues were $291.5 million
compared to $302.8 million in 2011, a decrease of 4%. At the same time,
worldwide completed M&A volume decreased 14%, from $2,424 billion in 2011 to
$2,077 billion in 2012(1).

The decrease in our 2012 advisory revenues, as compared to 2011, resulted from
a slight change in the mix of our advisory assignments and resulting
transactions, with fewer $1 million or greater revenue clients nearly offset
by having more $10 million or greater revenue clients. By region, a decline
in Australian revenues and revenues outside our primary markets was offset by
an increase in North American revenue, driven by changes in general
transaction activity in those markets. By industry sector, improved
performance in the industrial, technology and energy sectors generally offset
a sharp decline in activity in the financial services sector.

We earned advisory revenues from 160 different clients in both 2012 and 2011.
We earned $1 million or more from 66 clients in 2012, down 11% compared to 74
in 2011, and 32% of those were new to the Firm in 2012. The ten largest
fee-paying clients contributed 36% and 35% to our total revenues in 2012 and
2011, respectively, and none of our ten largest fee-paying clients in 2012 had
in any prior year been among our ten largest fee-paying clients. We did not
have any clients in 2012 or 2011 who represented 10% or more of our revenues.

Historical Financial Advisory Revenues by Client Location

                            For the Year Ended December 31,
                            2012    2011    2010    2009    2008
North America               60   %  48   %  57   %  65   %  53   %
Europe                      22   %  22   %  20   %  34   %  44   %
Australia                   14   %  22   %  15   %  —       —
Asia, Latin America & Other 4    %  8    %  8    %  1    %  3    %

Historical Financial Advisory Revenues by Industry

                               For the Year Ended December 31,
                               2012    2011    2010    2009    2008
Communications & Media         7    %  7    %  7    %  1    %  11   %
Consumer Goods & Retail        8    %  13   %  6    %  8    %  7    %
Energy & Utilities             11   %  8    %  14   %  8    %  13   %
Financial Services             7    %  22   %  17   %  19   %  18   %
Healthcare                     9    %  12   %  7    %  16   %  8    %
Real Estate, Lodging & Leisure 5    %  6    %  6    %  2    %  8    %
Technology                     13   %  2    %  4    %  10   %  1    %
General Industrial & Other     31   %  21   %  38   %  34   %  34   %
Fund Placement                 9    %  9    %  1    %  2    %  —

Fourth Quarter

Advisory revenues were $100.4 million in the fourth quarter of 2012 compared
to $85.5 million in the fourth quarter of 2011, an increase of 17%. The
increase in advisory revenue in the fourth quarter of 2012 as compared to the
same period in 2011 resulted primarily from an increase in the fees earned
from completed assignments and to a lesser extent from an increase in retainer
fees from strategic advisory assignments.

Completed assignments in the fourth quarter of 2012 included:

  oadvisedAlesco Corporation Limited on its response to the takeover offer
    from DuluxGroup Limited;
  othe sale by the Australian Rugby League Commission of its Australian media
    rights, including the sale of Free-to-Air Television rights to Nine
    Network, Pay TV rights to Fox Sports and Digital rights and Premiership
    naming rights to Telstra;
  othe sale by Norwest Equity Partners of its portfolio company, Becker
    Underwood, to BASF AG;
  othe acquisition by Boyd Gaming Corporation  of Peninsula Gaming, LLC;
  othe sale by CHAMP Ventures of its portfolio company Australian Portable
    Buildings, to a consortium comprising Black Diamond Group Limited and WEQ
    Britco LP;
  othe acquisition by Cypress Semiconductor Corporation of Ramtron
    International Corporation;
  othe sale of Deltek, Inc. to Thoma Bravo, LLC;
  othe sale by Goodman Fielder Limited of its Australian and New Zealand
    edible fats and oils business to GrainCorp;
  othe sale by The Hartford Financial Services Group, Inc. of its Retirement
    Plans Group to Massachusetts Mutual Life Insurance Company;
  othe representation of Lonmin plc on the refinancing of its balance sheet
    and associated rights offering;
  othe representation of Mediclinic International Limited on the
    restructuring of its balance sheet;
  othe sale of Phaidon Press Limited to the Leon D. Black family;
  othe acquisition by RedPrairie of JDA Software Group, Inc.;
  othe sale of Todd Corporation Limited's stake in SKY Network Television
    Limited; and
  othe sale by the United States Department of the Treasury of its common
    stock ownership stake in American International Group.

During the fourth quarter of 2012, our Capital Advisory Group served as global
placement agent on behalf of private equity and real estate funds for four
interim closings and one final closing of the sale of limited partnership
interests in such funds. We also advised on a secondary market sale of
limited partnership interests.

Management and Personnel Changes

In January 2013, as part of the annual evaluation and promotion process, the
Firm named three new Managing Directors: Michael Cramer (Frankfurt), Lee
Purcell (New York) and Anthony Samengo-Turner (Frankfurt). Mr. Cramer and Mr.
Samengo-Turner are part of our European Corporate Advisory Group. Mr. Purcell
is a member of our Real Estate Capital Advisory Group.

The Firm also recently announced the addition of Steve Cruise (most recently
with UBS, where he was Co-Head of the Chicago office and Midwest Region) as a
Managing Director. Mr. Cruise will expand our coverage of the industrial
sector in North America and will join the team in our Chicago office focused
on industrial companies.

Effective January 1, 2013, longtime Managing Director Ken Crews elected to
transition to a Senior Advisor role at the Firm, continuing to focus on the
utilities space in his new role. In conjunction with Mr. Crews' transition to
Senior Advisor we will close our Dallas office, where he was the sole Managing
Director.

The Firm also announced today certain management changes in Australia designed
to position the Firm for continued global growth and further develop its next
generation of leadership. Following many years of successfully running the
Australian business and overseeing the integration, Ron Malek and Simon
Mordant have each been appointed Vice Chairman of the Firm globally and will
remain Managing Directors. In this new role they each will focus entirely on
advising clients not only domestically in Australia, but in cross border
transactions and selectively in other markets. They each have already been
helpful with clients in the U.S., South Africa and elsewhere, and these new
appointments both recognize that contribution and seek to build on it as we
continue to develop the Firm's business globally. With Mr. Malek and Mr.
Mordant moving to Vice Chairman and Managing Director roles, the management of
Greenhill Australia is now assumed by Roger Feletto and Jamie Garis, both of
whom joined the Firm as part of the Australian acquisition, who each take on
the titles of Co-Head of Greenhill Australia.

Investment Revenues

Since we exited from the merchant banking business in 2010, we have sought to
realize value from our remaining principal investments, which principally
consisted of investments in Iridium Communications Inc. (NASDAQ - IRDM) and
previously sponsored merchant banking funds.

In October 2011, we initiated a 10b5-1 sales plan to sell our entire interest
in Iridium over a period of more than two years. During 2012, we sold
3,850,000 shares ofh Iridium at an average price of $7.91 per share for
proceeds of $30.5 million, including the sale of 855,000 shares in the fourth
quarter at an average price of $6.49 per share for proceeds of $5.5 million.
In the fourth quarter of 2011, which was the first period we sold our stake in
Iridium, we sold 870,000 shares of Iridium at an average priceof $6.72 per
share for proceeds of $5.8 million.

We began the liquidation of our investments in previously sponsored merchant
banking funds in 2011 when we sold for book value substantially all of our
interests in two U.S. domiciled funds that we sponsored prior to our exit from
the merchant banking business (Greenhill Capital Partners L.P. II ("GCP II")
and GSAV L.P.) for $49.4 million. As part of that sale, the purchasers had
the right, which was exercisable in December 2012, to require us to repurchase
their interests in either or both of two of the GCP II portfolio companies
sold to them at their purchase price, adjusted for further capital calls or
distributions since the date of sale. The purchasers exercised their put
rights and we acquired interests in two portfolio companies of GCP II for
$15.5 million in the fourth quarter of 2012.

In December 2012, we continued the liquidation of our previously sponsored
merchant banking funds with the sale of our entire interest in Greenhill
Capital Partners Europe L.P. for proceeds of $27.2 million, which represented
approximately 90% of book value. This transaction was pursued in order to
accelerate the liquidation of our investment portfolio and generate additional
funds for share repurchases.

At December31, 2012, our remaining investments consisted principally of our
investment in Iridium, which had a value of $34.2 million, and our remaining
investments in previously sponsored and other merchant banking funds of $16.9
million. Following the transactions described above, our remaining financial
commitments relating to our historic merchant banking funds are reduced to
$3.2 million.

The following table sets forth additional information relating to our
investment revenues for the three month periods and years ended December31,
2012 and 2011:

                                        Three months ended  For the Year Ended
                                        December 31,        December 31,
                                        2012      2011      2012      2011
                                        (in millions, unaudited)
Net realized and unrealized gains on    $ (4.8)   $ (5.4)   $ (3.4)   $ (4.5)
investments in merchant banking funds
Deferred gain on sale of certain        0.1       0.2       0.3       0.8
merchant banking assets
Net realized and unrealized gain/(loss) (3.8)     13.9      (5.0)     (6.2)
in Iridium
Interest income                         0.4       0.3       1.7       1.1
Total investment revenues               $ (8.1)   $ 9.0     $ (6.4)   $ (8.8)

Full Year

For the year ended December31, 2012, the Firm recorded investment revenues of
negative $6.4 million compared to investment revenues of negative $8.8
million for the year ended December31, 2011. The investment losses in each
year relate to comparable declines in both 2012 and 2011 in the quoted market
price of Iridium and the estimated fair market value of our previously
sponsored merchant banking funds.

Fourth Quarter

For the fourth quarter of 2012, the Firm recorded investment revenues of
negative $8.1 million compared to a gain of $9.0 million in the fourth quarter
of 2011. During the fourth quarter of 2012, the quoted market value of our
investment in Iridium declined, resulting in an investment loss of $3.8
million as compared to an increase in the quoted market value of $13.9
million in the fourth quarter of 2011.

Also, during the fourth quarter of 2012, the Firm recorded a loss of $4.8
million on its investment in merchant banking funds, including a realized loss
of $3.4 million on the sale of Greenhill Capital Partners Europe L.P., as
compared to a decline of $5.4 million in the fair value of the merchant
banking funds in the same period of the prior year. Due to limitations on the
deductibility of capital losses in the U.K., the loss recorded in the fourth
quarter of 2012 on the sale of the European investments is non-deductible for
tax purposes and increased our 2012 provision for taxes.

The investment gains (or losses) from our investment in Iridium and our
investments in our historic merchant banking funds may fluctuate significantly
over time due to factors beyond our control, such as performance of each
company in our merchant banking portfolio, equity market valuations, and
merger and acquisition opportunities. Revenues recognized from gains (or
losses) recorded in any particular period are not necessarily indicative of
revenues that may be realized and/or recognized in future periods.

Expenses

Operating Expenses

Full Year

For the year ended December31, 2012, total operating expenses were $214.6
million compared to $225.3 million of total operating expenses in 2011. The
decrease of $10.7 million, or 5%, related to a decrease in our compensation
expense, as described in more detail below. Our pre-tax income margin for
2012 was 25% as compared to 23% for 2011.

Fourth Quarter

Our total operating expenses for the fourth quarter of 2012 were $64.2 million
compared to $69.4 million of total operating expenses for the fourth quarter
of 2011. This represents a decrease in total operating expenses of $5.3
million, or 8%, which resulted from a decrease in compensation expense as
described in more detail below. Our pre-tax margin was 31% for the fourth
quarter of 2012 as compared to 27% for the fourth quarter of 2011.

The following table sets forth information relating to our operating expenses
for the three and twelve months ended December31, 2012 and 2011, which are
reported net of reimbursements of certain expenses by our clients:

                              For the Three Months Ended  For the Year Ended
                              December 31,                December 31,
                              2012           2011         2012       2011
                              (in millions, unaudited)
Employee compensation and     $   48.9       $  54.2      $ 151.8    $ 162.6
benefits expense
% of revenues               53        %    57       %   53      %  55      %
Non-compensation expense      15.3           15.3         62.8       62.7
% of revenues               17        %    16       %   22      %  21      %
Total operating expense       64.2           69.4         214.6      225.3
% of revenues               69        %    73       %   75      %  77      %
Total income before tax       28.2           25.1         70.5       68.7
Pre-tax profit margin         31        %    27       %   25      %  23      %

Compensation and Benefits Expenses

Full Year

For the year ended December31, 2012, our employee compensation and benefits
expenses were $151.8 million compared to $162.6 million for the same period in
the prior year. Our 2011 compensation and benefits expenses included a fourth
quarter charge of $7.0 million for the accelerated vesting of restricted stock
awards previously granted to employees who died in an airplane accident.
Excluding that charge, our 2012 compensation and benefits expenses decreased
$3.8 million, or 2%, from 2011. Consistent with our philosophy to measure
compensation as a percentage of revenues, the decrease in compensation and
benefits expenses in 2012 results from slightly lower revenues in 2012 as
compared to 2011. The ratio of compensation expense to revenues in 2012 was
53% as compared to 55% (53% excluding the accelerated charge) in 2011.

Fourth Quarter

Our employee compensation and benefits expenses in the fourth quarter of 2012
were $48.9 million, which reflected a 53% ratio of compensation to revenues.
This amount compared to $54.2 million for the fourth quarter of 2011, which
reflected a 57% ratio of compensation to revenues. Excluding the accelerated
compensation charge last year of $7.0 million, compensation and benefits
expenses increased $1.7 million in the fourth quarter of 2012 as compared to
the same period in the prior year.

Our compensation expense is generally based upon revenue and can fluctuate
materially in any particular period depending upon the changes in headcount,
amount of revenues recognized, as well as other factors. Accordingly, the
amount of compensation expense recognized in any particular period may not be
indicative of compensation expense in a future period.

Non-Compensation Expenses

Full Year

For the year ended December31, 2012, our non-compensation expenses of $62.8
million remained consistent with our non-compensation expenses of $62.7
million in 2011. In 2012, as compared to 2011, an increase in travel expenses
and other operating costs were offset by lower amortization of the Australian
intangible assets and a decrease in interest expense due to a reduction in
average borrowings outstanding and a slight decrease in borrowing costs.

Non-compensation expenses as a percentage of revenues for 2012 were 22%
compared to 21% for 2011. The slight increase in non-compensation expenses as
a percentage of revenues resulted from comparable costs for both years spread
over slightly lower revenues in 2012 as compared to 2011.

Fourth Quarter

Our non-compensation expenses were $15.3 million in the fourth quarters of
both 2012 and 2011. In the fourth quarter of 2012, as compared to the same
period in 2011, lower amortization of Australian intangible assets and lower
borrowing costs were offset by higher travel costs.

Non-compensation expenses as a percentage of revenues for the three months
ended December31, 2012 and 2011 were 17% and 16%, respectively. The slight
increase in non-compensation expense as a percentage of revenues resulted from
comparable costs for both periods spread over slightly lower revenues in the
fourth quarter of 2012 as compared to the same period in 2011.

The Firm's non-compensation expenses as a percentage of revenues can vary as a
result of a variety of factors including fluctuation in revenue amounts,
changes in headcount, the amount of recruiting and business development
activity, the amount of office expansion, the amount of reimbursement of
engagement-related expenses by clients, the amount of short-term borrowings,
interest rate and currency movements and other factors. Accordingly, the
non-compensation expenses as a percentage of revenues in any particular period
may not be indicative of the non-compensation expenses as a percentage of
revenues in future periods.

Provision for Income Taxes

Full Year

For the year ended December31, 2012, the provision for taxes was $28.4
million, which reflected an effective tax rate of 40%. This compared to a
provision for taxes for the year ended December31, 2011 of $24.1 million,
which reflected an effective tax rate of 35%. The increase in the provision
for income taxes and effective tax rate in the year ended December31, 2012,
as compared to 2011, resulted from both a greater proportion of earnings being
generated in the U.S. and the impact of capital losses not currently
deductible related to our European investments. Since the U.S. imposes a
higher federal and state tax rate than the other jurisdictions in which we
operate, an increase in the portion of our pre-tax earnings allocated to the
U.S. in 2012 as compared to 2011 increased our tax provision and effective tax
rate. Further, as a result of the liquidation of our investment portfolio in
Europe at a loss, we recorded capital losses not currently deductible, which
have the one-time effect of increasing our tax provision and effective tax
rate.

Fourth Quarter

During the fourth quarter of 2012, the provision for income taxes was $13.0
million, which reflected an effective rate of 46%. This compared to an income
tax expense in the fourth quarter of 2011 of $8.9 million, which reflected an
effective tax rate of 36%. The increase in the provision for income taxes in
the fourth quarter of 2012 as compared to the same period in 2011 resulted
from a higher effective tax rate applied in 2012 to higher 2012 pre-tax
earnings. The increase in the effective rate in the fourth quarter of 2012 as
compared to the same period in 2011 resulted principally from the impact
ofcapital losses not currently deductible.

The effective tax rate can fluctuate as a result of variations in the relative
amounts of advisory and investment income earned and the tax rate imposed in
the tax jurisdictions in which the Firm operates and invests. Accordingly, the
effective tax rate in any particular period may not be indicative of the
effective tax rate in future periods.

Liquidity and Capital Resources

As of December31, 2012, we had cash of $50.3 million, investments of $51.1
million and short-term debt of $29.1 million.

During the fourth quarter, the Firm repurchased 855,608 shares of its common
stock in open market purchases at an average price of $49.59 per share, for a
total cost of $42.4 million.

For the full year 2012, the Firm repurchased 1,714,614 shares of its common
stock in open market purchases and 181,820 restricted stock units from
employees at the time of vesting to settle tax liabilities, for an aggregate
of 1,896,434 shares of our common stock and common stock equivalents
repurchased at an average price of $43.85 per share, for a total purchase cost
of $83.2 million.

The Board of Directors of Greenhill & Co. Inc. has authorized the repurchase
of up to $100 million ofcommon stock during 2013.

Dividend

The Board of Directors of Greenhill & Co., Inc. has declared a dividend of
$0.45 per share to be paid on March20, 2013 to common stockholders of record
on March6, 2013.

Earnings Call

Greenhill will host a conference call beginning at 4:30 p.m. Eastern Time on
Wednesday, January 23, 2013, accessible via telephone and the internet. Scott
L. Bok, Chief Executive Officer, and Christopher T. Grubb, Chief Financial
Officer, will review the Firm's fourth quarter and full year 2012 financial
results and related matters. Following the review, there will be a question
and answer session.

Investors and analysts may participate in the live conference call by dialing
(888) 317-6003 (toll-free domestic) or (412) 317-6061 (international);
passcode: 2019051. Please register at least 10 minutes before the conference
call begins. The conference call will also be accessible as an audio webcast
through the Investor Relations section of Greenhill's website at
www.greenhill.com. There is no charge to access the call.

For those unable to listen to the live broadcast, a replay of the call will be
available for one month via telephone starting approximately one hour after
the call ends. The replay can be accessed at (877) 344 - 7529 (toll-free
domestic) or (412) 317 - 0088 (international); passcode: 10023621. The
webcast will be archived on Greenhill's website for 30 days after the call.

Greenhill & Co., Inc. is a leading independent investment bank focused on
providing financial advice on significant mergers, acquisitions,
restructurings, financings and capital raising to corporations, partnerships,
institutions and governments. It acts for clients located throughout the
world from its offices in New York, London, Frankfurt, Stockholm, Sydney,
Tokyo, Toronto, Chicago, Houston, Los Angeles, Melbourne and San Francisco.

Cautionary Note Regarding Forward-Looking Statements

The preceding discussion should be read in conjunction with our condensed
consolidated financial statements and the related notes that appear below. We
have made statements in this discussion that are forward-looking statements.
In some cases, you can identify these statements by forward-looking words such
as "may", "might", "will", "should", "expect", "plan", "anticipate",
"believe", "estimate", "intend", "predict", "potential" or "continue", the
negative of these terms and other comparable terminology. These
forward-looking statements, which are subject to risks, uncertainties and
assumptions about us, may include projections of our future financial
performance, based on our growth strategies and anticipated trends in our
business. These statements are only predictions based on our current
expectations and projections about future events. There are important factors
that could cause our actual results, level of activity, performance or
achievements to differ materially from the results, level of activity,
performance or achievements expressed or implied by the forward-looking
statements. In particular, you should consider the numerous risks outlined
under ''Risk Factors'' in our Report on Form 10-K for the fiscal year 2011.
We are under no duty and we do not undertake any obligation to update or
review any of these forward-looking statements after the date on which they
are made, whether as a result of new information, future developments or
otherwise.

Greenhill & Co., Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except share and per share data)

                          For the Three Months Ended  For the Year Ended
                          December 31,                December 31,
                          2012           2011         2012         2011
Revenues
Advisory revenues         $   100,385    $  85,547    $  291,545   $  302,833
Investment revenues       (8,060)        8,956        (6,466)      (8,840)
Total revenues            92,325         94,503       285,079      293,993
Expenses
Employee compensation and 48,863         54,153       151,795      162,578
benefits
Occupancy and equipment   4,407          4,380        17,777       17,457
rental
Depreciation and          1,777          2,049        7,240        8,009
amortization
Information services      1,848          1,704        8,040        7,273
Professional fees         1,354          1,303        5,392        5,694
Travel related expenses   2,622          2,489        10,981       10,325
Interest expense          266            422          1,016        2,040
Other operating expenses  3,026          2,943        12,363       11,947
Total expenses            64,163         69,443       214,604      225,323
Income before taxes       28,162         25,060       70,475       68,670
Provision for taxes       13,035         8,950        28,383       24,086
Consolidated net income   15,127         16,110       42,092       44,584
Less: Net income (loss)
allocated to              —              —            —            6
noncontrolling interests
Net income allocated to   $   15,127     $  16,110    $  42,092    $  44,578
common stockholders
Average shares
outstanding:
Basic                     30,124,409     30,390,951   30,553,460   31,020,894
Diluted                   30,147,926     30,397,575   30,561,682   31,034,817
Earnings per share:
Basic                     $   0.50       $  0.53      $  1.38      $  1.44
Diluted                   $   0.50       $  0.53      $  1.38      $  1.44
Dividends declared and    $   0.45       $  0.45      $  1.80      $  1.80
paid per share

Contact: Christopher T. Grubb
Chief Financial Officer
Greenhill & Co., Inc.
(212) 389-1800

SOURCE Greenhill & Co., Inc.

Website: http://www.greenhill.com