P10 Reports Fourth Quarter and Year End 2021 Results

Rhea-AI Summary

P10 (NYSE: PX) reported a strong financial performance for Q4 and the fiscal year 2021, with revenue up 123% year-over-year, totaling $150.5 million. Fee paying assets under management reached $17.3 billion, marking a 36% increase. Q4 revenue was $45.6 million, an 85% increase. However, GAAP net income declined by 93% to $1.5 million in Q4, mainly due to non-cash expenses. Adjusted net income surged 157% year-over-year to $21.9 million. The company has strengthened its market position by acquiring Hark Capital and Bonaccord Capital Partners.

Positive

• Revenue increased 123% year-over-year to $150.5 million.
• Fee Paying Assets Under Management reached $17.3 billion, up 36% year-over-year.
• Adjusted Net Income rose 157% year-over-year to $21.9 million.
• Adjusted EBITDA was $83.1 million, a 139% increase year-over-year.
• Successful debt refinancing expected to save approximately $8 million in 2022.

Negative

• GAAP Net Income decreased 55% year-over-year to $10.8 million.
• GAAP EPS fell 78% year-over-year to $0.08 due to debt refinancing and acquisition costs.
• GAAP Net Income for Q4 dropped 93% year-over-year to $1.5 million.

Record Results Driven by a 123% increase in Year-Over-Year Revenue and a 36% Increase in Year-Over-Year Fee Paying Assets Under Management

DALLAS, March 01, 2022 (GLOBE NEWSWIRE) -- P10, Inc. (NYSE: PX), a leading private markets solutions provider, today reported financial results for the fourth quarter and year ended December 31, 2021.

Fourth Quarter 2021 Financial Highlights:

• Fee Paying Assets Under Management: $17.3 billion, a 36% increase year-over-year.
• Revenue: $45.6 million for the quarter, an 85% increase year-over-year.
• GAAP Net Income: $1.5 million, a 93% decrease year-over-year, primarily attributable to non-cash expenses incurred during the quarter for debt refinance, contingent consideration costs associated with the Hark Capital and Bonaccord Capital Partners acquisitions, and additional intangible asset amortization expense from acquisitions.
• Adjusted EBITDA: $26.4 million, a 114% increase year-over-year.
• Adjusted Net Income: $21.9 million, a 157% increase year-over-year.
• Fully diluted GAAP EPS: $.02, a 94% decrease year-over-year year primarily attributable to the Company’s debt refinancing and acquisition costs.
• Fully diluted ANI per share: $.18, a 125% increase year-over-year.

Fiscal Year End 2021 Financial Highlights:

• Revenue: $150.5 million, a 123% increase year-over-year.
• GAAP Net Income: $10.8 million, a 55% decrease year-over-year, primarily attributable to non-cash expenses incurred during Q4 for debt refinance, contingent consideration costs associated with the Hark Capital and Bonaccord Capital Partners acquisitions, and additional intangible asset amortization expense from acquisitions.
• Adjusted EBITDA: $83.1 million, a 139% increase year-over-year.
• Adjusted Net Income: $62.8 million, a 162% increase year-over-year.
• Fully diluted GAAP EPS: $.08, a 78% decrease year-over-year primarily attributable to the Company’s debt refinancing and acquisition costs.
  
• Fully diluted ANI per share: $.56, a 93% increase year-over-year.

Robert Alpert, Chairman and Co-CEO, and Co-CEO Clark Webb said, “In 2021, P10 strengthened its position as the premier specialized private markets solution provider in the middle and lower middle market. We deepened our market presence by expanding product offerings and adding two leading investment firms to our lineup, Hark Capital and Bonaccord Capital Partners. During 2021, investors purchased 20 million Class A shares at $12 per share through an initial public offering and concurrent listing on the New York Stock Exchange and we refinanced $250 million of debt with a new facility that is estimated to save the Company approximately $8 million in 2022. We are well positioned for continued growth.”

A presentation of the fourth quarter and year end 2021 financials may be accessed HERE and is available on the Company’s website.

Conference Call Details:

The company will host a conference call at 8:30 a.m. Eastern Time on Tuesday, March 1, 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:

United States:		1-646-904-5544 or 1-844-200-6205
Canada:		1-226-828-7575
All other locations:		1-929-526-1599
Participant Code:		181724

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 December 31, 2021, P10 has a global investor base of over 2,400 investors across 46 states, 29 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 prospectus dated October 20, 2021, filed with the U.S. Securities and Exchange Commission (“SEC”) on October 22, 2021, and in our quarterly report on Form 10-Q for the quarter ended September 30, 2021 and in our subsequent reports filed from time to time with the Securities and Exchange Commission. 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 fourth quarter and year end 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 the fourth quarter 2021 revenue results for P10 (PX)?

P10 reported fourth quarter revenue of $45.6 million, an 85% increase year-over-year.

How much did P10's fee paying assets under management increase in 2021?

P10's fee paying assets under management increased by 36% year-over-year, reaching $17.3 billion.

What was P10's adjusted net income for fiscal year 2021?

P10's adjusted net income for fiscal year 2021 was $62.8 million, a 162% increase year-over-year.

What challenges did P10 face in their financial results?

P10 faced challenges with a GAAP Net Income decrease of 55% year-over-year, primarily due to non-cash expenses.

When will P10 hold their conference call to discuss financial results?

P10 will hold a conference call on March 1, 2022, at 8:30 a.m. Eastern Time.