P10 Reports First Quarter 2022 Results

Rhea-AI Summary

P10, Inc. (NYSE: PX) reported a strong 32% year-over-year revenue increase to $43.3 million for Q1 2022. Fee Paying Assets Under Management rose by 34% to $17.6 billion. The company achieved a GAAP net income of $7.8 million, a 188% increase year-over-year. A regular quarterly cash dividend of $0.03 per share will be distributed on June 20, 2022. Furthermore, a stock repurchase program of up to $20 million was also announced, aimed at enhancing shareholder value.

Positive

• GAAP Net Income increased by 188% year-over-year to $7.8 million.
• Revenue rose 32% year-over-year to $43.3 million.
• Fee Paying Assets Under Management increased by 34% to $17.6 billion.
• Quarterly cash dividend of $0.03 per share declared.
• Stock repurchase program of up to $20 million authorized.

Negative

• None.

Results Driven by a 32% Increase in Year-Over-Year Revenue and a 34% Increase in Year-Over-Year Fee Paying Assets Under Management. Company Implements Regular Quarterly Cash Dividend of $.03 Per Share and Stock Repurchase Program

DALLAS, May 12, 2022 (GLOBE NEWSWIRE) -- P10, Inc. (NYSE: PX), a leading private markets solutions provider, today reported financial results for the first quarter ended March 31, 2022.

First Quarter 2022 Financial Highlights:

• Fee Paying Assets Under Management: $17.6 billion, a 34% increase year-over-year.
• Revenue: $43.3 million, a 32% increase year-over-year.
• GAAP Net Income: $7.8 million, a 188% increase year-over-year.
• Adjusted EBITDA: $22.5 million, a 31% increase year-over-year.
• Adjusted Net Income: $22.3 million, an 84% increase year-over-year.
• Fully diluted GAAP EPS: $.06, a 160% increase year-over-year.
• Fully diluted ANI per share: $.18, a 65% increase year-over-year.
  
  
• Declaration of Dividend
  

The Board of Directors of the Company has declared a quarterly cash dividend of $0.03 per share of Class A and Class B common stock, payable on June 20, 2022, to the holders of record as of the close of business on May 31, 2022.

• Approval of Stock Buyback
  

The Company announced that its Board of Directors has authorized a stock buyback program pursuant to which P10 may purchase up to $20 million of P10’s outstanding shares of Class A and Class B Common Stock, par value $0.001 per share. P10 intends to fund the program through available cash balances and future operating cash flows. These shares may be repurchased from time to time in the open market at prevailing market prices, in privately negotiated transactions, in block trades, in accordance with Rule 10b5-1 trading plans and/or through other legally permissible means. The timing and amount of any repurchases pursuant to the program will depend on various factors including, the market price of its Class A Common Stock, trading volume, ongoing assessment of P10’s working capital needs, general market conditions, and other factors. The buyback program does not obligate P10 to acquire any particular amount of common stock and it may be terminated or amended by the Board of Directors at any time.

Robert Alpert, Chairman and Co-CEO, and Co-CEO Clark Webb said, “In the first quarter, we performed well against our budget and demonstrated the unique qualities of our business model. Our revenues are primarily composed of management fees on long-term, locked-up capital while carry stays with the investment teams. The result is a more predictable model that benefits from multiple vintages and a diversified set of investment solutions. The announcement of a regular cash dividend and a stock repurchase program reflects the beauty of our business model, with strong cash flow and nearly infinite returns on capital. We are well positioned for continued growth.”

A presentation of the first quarter financials may be accessed HERE and is available on the Company’s website.

Conference Call Details:

The company will host a conference call at 4:30 p.m. Eastern Time on Thursday, May 12, 2022. The call will be webcast live and may be accessed HERE

All participants joining by telephone should dial one of the following numbers, followed by the Participant Code provided:

U.S. (toll free):	1-844-200-6205
U.S. (local):	1-646-904-5544
Canada (local):	1-226-828-7575
All other locations:	+1-929-526-1599
Participant Access Code:	947750

For those unable to participate in the live call, a replay will be made available on P10’s investor relations page.

About P10
P10 is a leading multi-asset class private markets solutions provider in the alternative asset management industry. P10’s mission is to provide its investors differentiated access to a broad set of investment solutions that address their diverse investment needs within private markets. As of March 31, 2022, P10 has a global investor base of over 2,500 investors across 49 states, 53 countries and six continents, which includes some of the world’s largest pension funds, endowments, foundations, corporate pensions and financial institutions. Visit www.p10alts.com.

Forward Looking Statements
Some of the statements in this release may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Words such as "will," "expect," "believe," "estimate," "continue," "anticipate," "intend," "plan" and similar expressions are intended to identify these forward-looking statements. Forward-looking statements discuss management's current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance, and business. The inclusion of any forward-looking information in this release should not be regarded as a representation that the future plans, estimates or expectations contemplated will be achieved. Forward-looking statements are subject to various risks, uncertainties, and assumptions. Forward-looking statements reflect management’s current plans, estimates and expectations and are inherently uncertain. All forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materially different, including risks relating to: global and domestic market and business conditions; successful execution of business and growth strategies and regulatory factors relevant to our business; changes in our tax status; our ability to maintain our fee structure; our ability to attract and retain key employees; our ability to manage our obligations under our debt agreements; as well as assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy; and our ability to manage the effects of events outside of our control. The foregoing list of factors is not exhaustive. For more information regarding these risks and uncertainties as well as additional risks that we face, you should refer to the “Risk Factors” included in our annual report on Form 10-K for the year ended December 31, 2021, filed with the U.S. Securities and Exchange Commission (“SEC”) on March 21, 2022, and in our subsequent reports filed from time to time with the SEC. The forward-looking statements included in this release are made only as of the date hereof. We undertake no obligation to update or revise any forward-looking statement as a result of new information or future events, except as otherwise required by law.

Use of Non-GAAP Financial Measures by P10, Inc.
The non-GAAP financial measures contained in this press release (including, without limitation, Adjusted EBITDA, Adjusted Net Income and fee-paying assets under management) are not GAAP measures of the Company’s financial performance or liquidity and should not be considered as alternatives to net income (loss) as a measure of financial performance or cash flows from operations as measures of liquidity, or any other performance measure derived in accordance with GAAP. A reconciliation of such non-GAAP measures is included in the presentation of the first quarter 2022 financials. The Company believes the presentation of these non-GAAP measures provide useful additional information to investors because it provides better comparability of ongoing operating performance to prior periods. It is reasonable to expect that one or more excluded items will occur in future periods, but the amounts recognized can vary significantly from period to period. Fee paying assets under management reflects the assets from which we earn management and advisory fees. Our vehicles typically earn management and advisory fees based on committed capital, and in certain cases, net invested capital, depending on the fee terms. Management and advisory fees based on committed capital are not affected by market appreciation or depreciation. You are encouraged to evaluate each adjustment to non-GAAP financial measures and the reasons management considers it appropriate for supplemental analysis. Our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

Ownership Limitations
P10’s Certificate of Incorporation contains certain provisions for the protection of tax benefits relating to P10’s net operating losses. Such provisions generally void transfers of shares that would result in the creation of a new 4.99% shareholder or result in an existing 4.99% shareholder acquiring additional shares of P10.

FAQ

What were P10's financial results for Q1 2022?

P10 reported a revenue of $43.3 million, a 32% increase year-over-year, with a GAAP net income of $7.8 million, marking a 188% increase.

What is the significance of the dividend declared by P10?

P10 declared a quarterly cash dividend of $0.03 per share, payable on June 20, 2022, indicating strong cash flow.

How much is P10's stock repurchase program?

P10 has authorized a stock repurchase program of up to $20 million aimed at enhancing shareholder value.

What is the current Fee Paying Assets Under Management for P10?

As of Q1 2022, P10 reported Fee Paying Assets Under Management of $17.6 billion, a 34% increase year-over-year.

What earnings per share did P10 achieve in Q1 2022?

P10 achieved a fully diluted GAAP EPS of $0.06, reflecting a 160% increase year-over-year.