Silvercrest Asset Management Group Inc. Reports Q2 2024 Results
Silvercrest Asset Management Group Inc. (NASDAQ: SAMG) reported Q2 2024 results with total Assets Under Management (AUM) of $33.4 billion, including discretionary AUM of $21.6 billion. Revenue increased 4.2% year-over-year to $31.0 million. GAAP net income was $4.4 million, with earnings per share of $0.28. Adjusted EBITDA was $7.2 million, representing a 23.3% margin.
The company faced challenges with narrow market leadership and declining AUM in certain segments. However, Silvercrest's U.S. Value and Small Cap Growth strategies performed well relatively. The company is investing in future growth, including hiring a new global equity investment team and a business development professional for the Southeast region.
Silvercrest's Board approved a 5% increase in quarterly dividend to $0.20 per share of Class A common stock. The company's pipeline of new institutional business opportunities decreased to $1.0 billion but remains up from Q4 2023.
La Silvercrest Asset Management Group Inc. (NASDAQ: SAMG) ha riportato i risultati del secondo trimestre del 2024 con attività totali sotto gestione (AUM) di $33,4 miliardi, inclusi AUM discrezionali di $21,6 miliardi. I ricavi sono aumentati del 4,2% rispetto all'anno precedente, raggiungendo $31,0 milioni. Il reddito netto GAAP è stato di $4,4 milioni, con utili per azione di $0,28. L'EBITDA rettificato è stato di $7,2 milioni, rappresentando un margine del 23,3%.
L'azienda ha affrontato delle sfide dovute a una leadership di mercato ristretta e a un calo degli AUM in alcuni segmenti. Tuttavia, le strategie di Valore e Crescita Small Cap di Silvercrest hanno avuto un buon rendimento relativamente. L'azienda sta investendo nella crescita futura, inclusa l'assunzione di un nuovo team globale di investimenti azionari e di un professionista dello sviluppo commerciale per la regione del Sud-est.
Il Consiglio di Silvercrest ha approvato un aumento del 5% del dividendo trimestrale a $0,20 per azione di azioni ordinarie di Classe A. Il pipeline dell'azienda di nuove opportunità di business istituzionale è diminuita a $1,0 miliardo ma rimane superiore al quarto trimestre del 2023.
Silvercrest Asset Management Group Inc. (NASDAQ: SAMG) reportó sus resultados del segundo trimestre de 2024 con activos totales bajo gestión (AUM) de $33.4 mil millones, incluyendo AUM discrecionales de $21.6 mil millones. Los ingresos aumentaron un 4.2% interanual alcanzando $31.0 millones. El ingreso neto GAAP fue de $4.4 millones, con ganancias por acción de $0.28. El EBITDA ajustado fue de $7.2 millones, representando un margen del 23.3%.
La compañía enfrentó desafíos con liderazgo de mercado limitado y AUM en declive en ciertos segmentos. Sin embargo, las estrategias de Valor y Crecimiento de Small Cap de Silvercrest tuvieron un rendimiento relativamente bueno. La empresa está invirtiendo en el crecimiento futuro, incluida la contratación de un nuevo equipo de inversión en acciones global y un profesional de desarrollo comercial para la región del Sureste.
La Junta de Silvercrest aprobó un aumento del 5% en el dividendo trimestral a $0.20 por acción de acciones ordinarias Clase A. El pipeline de nuevas oportunidades de negocio institucional disminuyó a $1.0 mil millones pero sigue siendo superior al cuarto trimestre de 2023.
실버크레스트 자산 관리 그룹 Inc. (NASDAQ: SAMG)는 2024년 2분기 실적을 발표하며 관리 자산 총액(AUM)이 334 억 달러에 달하며, 재량 자산이 216 억 달러 포함된다는 것을 보고했습니다. 수익은 전년 대비 4.2% 증가하여 3100 만 달러에 달했습니다. GAAP 순이익은 440 만 달러였으며, 주당 수익은 0.28 달러였습니다. 조정 EBITDA는 720 만 달러로, 23.3%의 마진을 나타냈습니다.
회사는 시장 리더십의 좁아짐과 특정 세그먼트에서 AUM 감소라는 어려움에 직면했습니다. 그러나 실버크레스트의 미국 가치 및 소형 성장 전략은 상대적으로 좋은 성과를 보였습니다. 회사는 미래 성장에 투자하고 있으며, 여기에는 새 글로벌 주식 투자 팀과 동남부 지역에 대한 사업 개발 전문가 채용이 포함됩니다.
실버크레스트 이사회는 분기 배당금 5% 인상을 승인하여 클래스 A 보통주당 $0.20로 설정했습니다. 회사의 새로운 기관 비즈니스 기회 파이프라인은 $10억으로 감소했지만, 2023년 4분기보다 여전히 증가한 상태입니다.
Le Silvercrest Asset Management Group Inc. (NASDAQ: SAMG) a annoncé les résultats du deuxième trimestre 2024, avec un total d'actifs sous gestion (AUM) de 33,4 milliards de dollars, dont AUM discrétionnaires de 21,6 milliards de dollars. Les revenus ont augmenté de 4,2 % par rapport à l'année précédente, atteignant 31,0 millions de dollars. Le bénéfice net selon les normes GAAP était de 4,4 millions de dollars, avec un bénéfice par action de 0,28 dollar. L'EBITDA ajusté s'élevait à 7,2 millions de dollars, représentant une marge de 23,3 %.
L'entreprise a rencontré des défis liés à une direction de marché étroite et une baisse des AUM dans certains segments. Cependant, les stratégies de valeur et de croissance des petites capitalisations de Silvercrest ont relativement bien performé. L'entreprise investit dans la croissance future, notamment par le recrutement d'une nouvelle équipe d'investissement en actions mondiale et d'un professionnel du développement commercial pour la région sud-est.
Le conseil d'administration de Silvercrest a approuvé une augmentation de 5 % du dividende trimestriel à 0,20 dollar par action des actions ordinaires de classe A. Le portefeuille de nouvelles opportunités d'affaires institutionnelles de l'entreprise a diminué à 1,0 milliard de dollars, mais reste supérieur au quatrième trimestre 2023.
Die Silvercrest Asset Management Group Inc. (NASDAQ: SAMG) hat die Ergebnisse des zweiten Quartals 2024 mit verwalten Gesamtvermögen (AUM) von 33,4 Milliarden US-Dollar veröffentlicht, darunter diskretionäres AUM von 21,6 Milliarden US-Dollar. Der Umsatz stieg im Jahresvergleich um 4,2% auf 31,0 Millionen US-Dollar. Der GAAP-Nettogewinn betrug 4,4 Millionen US-Dollar, mit Gewinnen pro Aktie von 0,28 US-Dollar. Das bereinigte EBITDA betrug 7,2 Millionen US-Dollar, was einer Marge von 23,3% entspricht.
Das Unternehmen sah sich Herausforderungen mit engen Marktführerschaft und einem Rückgang der AUM in bestimmten Segmenten gegenüber. Dennoch schnitten die US-Wert- und Small-Cap-Wachstumsstrategien von Silvercrest relativ gut ab. Das Unternehmen investiert in zukünftiges Wachstum, darunter die Einstellung eines neuen globalen Aktieninvestmentteams und eines Fachmanns für Geschäftsentwicklung für die Südostregion.
Der Vorstand von Silvercrest genehmigte eine 5%ige Erhöhung der vierteljährlichen Dividende auf 0,20 US-Dollar pro Aktie der Klasse A Stammaktien. Die Pipeline neuer institutioneller Geschäftsmöglichkeiten des Unternehmens sank auf 1,0 Milliarden US-Dollar, bleibt jedoch höher als im vierten Quartal 2023.
- Revenue increased 4.2% year-over-year to $31.0 million
- Board approved a 5% increase in quarterly dividend to $0.20 per share
- U.S. Value and Small Cap Growth strategies performed well relatively
- Hiring of new global equity investment team to complement international strategies
- Pipeline of new institutional business opportunities up from Q4 2023
- Discretionary AUM decreased $1.1 billion during the quarter to $21.6 billion
- Net client outflows of $2.0 billion for discretionary AUM year-over-year
- Adjusted EBITDA margin decreased to 23.3% from 27.3% in Q2 2023
- Net income margin decreased to 14.1% from 17.3% in Q2 2023
- Total expenses increased by 10.6% year-over-year
Insights
Silvercrest Asset Management Group's Q2 2024 results reveal a mixed financial performance amidst challenging market conditions. While total Assets Under Management (AUM) increased
Revenue increased by
The company's strategic investments in growth initiatives, including new hires and team expansions, are pressuring short-term profitability but may position the firm for future growth. The addition of a global equity investment team and a new business development professional in the Southeast could potentially drive significant inflows in coming quarters.
Notably, Silvercrest's board approved a
While the institutional pipeline decreased to
Silvercrest's Q2 2024 results reflect the broader market dynamics, particularly the narrow market leadership dominated by Large Cap Growth stocks. This trend has negatively impacted Silvercrest's assets, as the company's diversified portfolio includes exposure to underperforming segments like Large Cap Value and Small Cap.
However, it's important to note that Silvercrest's U.S. Value and U.S. Small Cap growth strategies have outperformed on a relative basis, showcasing the firm's investment acumen in challenging market conditions. The recent broadening of market participation, if sustained, could benefit Silvercrest's AUM growth in the coming quarters.
The company's strategic focus on high-end wealth and asset management for global families and institutions positions it well to capitalize on international opportunities, despite geopolitical tensions. The addition of a well-known global equity investment team enhances Silvercrest's international strategies and could attract significant institutional mandates.
The decrease in the institutional pipeline to
Overall, while facing short-term headwinds, Silvercrest's strategic investments and diversified business model appear to be setting the stage for potential long-term growth, particularly if market conditions become more favorable for their investment strategies.
NEW YORK, Aug. 01, 2024 (GLOBE NEWSWIRE) -- Silvercrest Asset Management Group Inc. (NASDAQ: SAMG) (the “Company” or “Silvercrest”) today reported the results of its operations for the quarter ended June 30, 2024.
Business Update
Generally supportive markets and economic conditions continued their progress since the fourth quarter of 2023. Market leadership remained unusually narrow, however, during the second quarter. Large Cap Growth primarily drove higher markets, a persistent trend of the market’s recovery since 2022. Other market segments, including Large Cap Value and Small Cap, actually declined during the second quarter, which negatively affected Silvercrest’s assets. It is important to note that Silvercrest’s U.S. Value strategies and U.S. Small cap growth strategies continued to perform well on a relative basis. Broader market participation benefits Silvercrest long-term due to the firm’s diversified wealth management business and the firm’s exposure to the small cap institutional business. The markets have more recently broadened during the current quarter, and if sustained, should improve Silvercrest’s future assets under management (“AUM”) growth.
Silvercrest’s discretionary AUM decreased
On our last call, I mentioned that Silvercrest has never had more business opportunities underway. We have made and will make investments to drive future growth in the business, including value-added hires. During the second quarter we announced the hiring of a high-quality, well-known global equity investment team to complement our international strategies. We are excited about the potential for significant institutional mandates in future quarters, raising the Silvercrest’s visibility globally with institutions and families alike. We also have invested in a new business development professional and market leader in the Southeast focused on serving ultra high net worth families and family offices. We expect to make more hires to complement our outstanding professional team and to drive future growth. Silvercrest continues to accrue a higher interim percentage of revenue for compensation. We will adjust variable compensation levels to match these important investments in the business and will keep you informed of our plans.
Silvercrest's pipeline of new institutional business opportunities decreased during the second quarter to
As a high-end wealth and asset management firm, Silvercrest serves families and institutions from across the globe. Despite headline news of international tensions, we see substantial new opportunities globally for a firm with our high-quality capabilities coupled with superior client service.
On July 30, 2024, the Company’s Board of Directors approved an increase of approximately
Second Quarter 2024 Highlights
- Total Assets Under Management (“AUM”) of
$33.4 billion , inclusive of discretionary AUM of$21.6 billion and non-discretionary AUM of$11.8 billion at June 30, 2024. - Revenue of
$31.0 million . - U.S. Generally Accepted Accounting Principles (“GAAP”) consolidated net income and net income attributable to Silvercrest of
$4.4 million and$2.7 million , respectively. - Basic and diluted net income per share of
$0.28 . - Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”)1 of
$7.2 million . - Adjusted net income1 of
$4.4 million . - Adjusted basic and diluted earnings per share1, 2 of
$0.31 and$0.30 , respectively.
The table below presents a comparison of certain GAAP and non-GAAP (“Adjusted”) financial measures and AUM.
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| (in thousands except as indicated) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 30,993 | $ | 29,734 | $ | 61,265 | $ | 59,164 | ||||||||
| Income before other income (expense), net | $ | 5,309 | $ | 6,518 | $ | 11,213 | $ | 13,269 | ||||||||
| Net income | $ | 4,380 | $ | 5,135 | $ | 9,295 | $ | 10,445 | ||||||||
| Net income margin | 14.1 | % | 17.3 | % | 15.2 | % | 17.7 | % | ||||||||
| Net income attributable to Silvercrest | $ | 2,665 | $ | 3,085 | $ | 5,665 | $ | 6,289 | ||||||||
| Net income per basic share | $ | 0.28 | $ | 0.33 | $ | 0.60 | $ | 0.66 | ||||||||
| Net income per diluted share | $ | 0.28 | $ | 0.33 | $ | 0.60 | $ | 0.66 | ||||||||
| Adjusted EBITDA1 | $ | 7,232 | $ | 8,116 | $ | 14,685 | $ | 16,297 | ||||||||
| Adjusted EBITDA Margin1 | 23.3 | % | 27.3 | % | 24.0 | % | 27.5 | % | ||||||||
| Adjusted net income1 | $ | 4,402 | $ | 4,877 | $ | 9,121 | $ | 9,919 | ||||||||
| Adjusted basic earnings per share1, 2 | $ | 0.31 | $ | 0.35 | $ | 0.65 | $ | 0.71 | ||||||||
| Adjusted diluted earnings per share1, 2 | $ | 0.30 | $ | 0.34 | $ | 0.63 | $ | 0.69 | ||||||||
| Assets under management at period end (billions) | $ | 33.4 | $ | 31.9 | $ | 33.4 | $ | 31.9 | ||||||||
| Average assets under management (billions)3 | $ | 34.0 | $ | 30.9 | $ | 33.4 | $ | 30.4 | ||||||||
| Discretionary assets under management (billions) | $ | 21.6 | $ | 21.5 | $ | 21.6 | $ | 21.5 | ||||||||
______________________________
| 1 | Adjusted measures are non-GAAP measures and are explained and reconciled to the comparable GAAP measures in Exhibits 2 and 3. |
| 2 | Adjusted basic and diluted earnings per share measures for the three and six months ended June 30, 2024 are based on the number of shares of Class A common stock and Class B common stock outstanding as of June 30, 2024. Adjusted diluted earnings per share are further based on the addition of unvested restricted stock units, and non-qualified stock options to the extent dilutive at the end of the reporting period. |
| 3 | We have computed average AUM by averaging AUM at the beginning of the applicable period and AUM at the end of the applicable period. |
AUM at
Silvercrest’s discretionary assets under management increased by
Silvercrest’s discretionary assets under management decreased by
Second Quarter 2024 vs. Second Quarter 2023
Revenue increased by
Total expenses increased by
Consolidated net income was
Adjusted EBITDA1 was
Six Months Ended June 30, 2024 vs. Six Months Ended June 30, 2023
Revenue increased by
Total expenses increased by
Consolidated net income was
Adjusted EBITDA1was
Liquidity and Capital Resources
Cash and cash equivalents were
Silvercrest Asset Management Group Inc.’s total equity was
Non-GAAP Financial Measures
To provide investors with additional insight, promote transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making, we supplement our consolidated financial statements presented on a basis consistent with GAAP with Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Earnings Per Share, which are non-GAAP financial measures of earnings. These adjustments, and the non-GAAP financial measures that are derived from them, provide supplemental information to analyze our operations between periods and over time. Investors should consider our non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.
- EBITDA represents net income before provision for income taxes, interest income, interest expense, depreciation and amortization.
- We define Adjusted EBITDA as EBITDA without giving effect to the Delaware franchise tax, professional fees associated with acquisitions or financing transactions, gains on extinguishment of debt or other obligations related to acquisitions, impairment charges and losses on disposals or abandonment of assets and leaseholds, client reimbursements and fund redemption costs, severance and other similar expenses, but including partner incentive allocations, prior to our initial public offering, as an expense. We feel that it is important to management and investors to supplement our consolidated financial statements presented on a GAAP basis with Adjusted EBITDA, a non-GAAP financial measure of earnings, as this measure provides a perspective of recurring earnings of the Company, taking into account earnings attributable to both Class A and Class B shareholders.
- Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenue. We feel that it is important to management and investors to supplement our consolidated financial statements presented on a GAAP basis with Adjusted EBITDA Margin, a non-GAAP financial measure of earnings, as this measure provides a perspective of recurring profitability of the Company, taking into account profitability attributable to both Class A and Class B shareholders.
- Adjusted Net Income represents recurring net income without giving effect to professional fees associated with acquisitions or financing transactions, losses on forgiveness of notes receivable from our principals, gains on extinguishment of debt or other obligations related to acquisitions, impairment charges and losses on disposals or abandonment of assets and leaseholds, client reimbursements and fund redemption costs, severance and other similar expenses, but including partner incentive allocations, prior to our initial public offering, as an expense. Furthermore, Adjusted Net Income includes income tax expense assuming a blended corporate rate of
26% . We feel that it is important to management and investors to supplement our consolidated financial statements presented on a GAAP basis with Adjusted Net Income, a non-GAAP financial measure of earnings, as this measure provides a perspective of recurring income of the Company, taking into account income attributable to both Class A and Class B shareholders. - Adjusted Earnings Per Share represents Adjusted Net Income divided by the actual Class A and Class B shares outstanding as of the end of the reporting period for basic Adjusted Earnings Per Share, and to the extent dilutive, we add unvested restricted stock units and non-qualified stock options to the total shares outstanding to compute diluted Adjusted Earnings Per Share. As a result of our structure, which includes a non-controlling interest, we feel that it is important to management and investors to supplement our consolidated financial statements presented on a GAAP basis with Adjusted Earnings Per Share, a non-GAAP financial measure of earnings, as this measure provides a perspective of recurring earnings per share of the Company as a whole as opposed to being limited to our Class A common stock.
Conference Call
The Company will host a conference call on August 2, 2024, at 8:30 am (Eastern Time) to discuss these results. Hosting the call will be Richard R. Hough III, Chief Executive Officer and President and Scott A. Gerard, Chief Financial Officer. Listeners may access the call by dialing 1-844-836-8743 or for international listeners the call may be accessed by dialing 1-412-317-5723. A live, listen-only webcast will also be available via the investor relations section of www.silvercrestgroup.com. An archived replay of the call will be available after the completion of the live call on the Investor Relations page of the Silvercrest website at http://ir.silvercrestgroup.com/.
Forward-Looking Statements and Other Disclosures
This release contains, and from time to time our management may make, 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, each as amended. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and assumptions. These statements are only predictions based on our current expectations and projections about future events. Important factors that could cause actual results, level of activity, performance or achievements to differ materially from those indicated by such forward-looking statements include, but are not limited to: incurrence of net losses; fluctuations in quarterly and annual results; adverse economic or market conditions; our expectations with respect to future levels of assets under management, inflows and outflows; our ability to retain clients; our ability to maintain our fee structure; our particular choices with regard to investment strategies employed; our ability to hire and retain qualified investment professionals; the cost of complying with current and future regulation coupled with the cost of defending ourselves from related investigations or litigation; failure of our operational safeguards against breaches in data security, privacy, conflicts of interest or employee misconduct; our expected tax rate; and our expectations with respect to deferred tax assets, adverse economic or market conditions, including the continued adverse effects of the coronavirus pandemic; incurrence of net losses; adverse effects of management focusing on implementation of a growth strategy; failure to develop and maintain the Silvercrest brand; and other factors disclosed under “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2023, which is accessible on the U.S. Securities and Exchange Commission’s website at www.sec.gov. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
About Silvercrest
Silvercrest was founded in April 2002 as an independent, employee-owned registered investment adviser. With offices in New York, Boston, Virginia, New Jersey, California and Wisconsin, Silvercrest provides traditional and alternative investment advisory and family office services to wealthy families and select institutional investors.
Silvercrest Asset Management Group Inc.
Contact: Richard Hough
212-649-0601
rhough@silvercrestgroup.com
| Exhibit 1 | ||||||||||||||||
| Silvercrest Asset Management Group Inc. Condensed Consolidated Statements of Operations (Unaudited and in thousands, except share and per share amounts or as noted) | ||||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue | ||||||||||||||||
| Management and advisory fees | $ | 29,900 | $ | 28,652 | $ | 59,065 | $ | 57,020 | ||||||||
| Family office services | 1,093 | 1,082 | 2,200 | 2,144 | ||||||||||||
| Total revenue | 30,993 | 29,734 | 61,265 | 59,164 | ||||||||||||
| Expenses | ||||||||||||||||
| Compensation and benefits | 18,493 | 16,756 | 36,162 | 33,254 | ||||||||||||
| General and administrative | 7,191 | 6,460 | 13,890 | 12,641 | ||||||||||||
| Total expenses | 25,684 | 23,216 | 50,052 | 45,895 | ||||||||||||
| Income before other (expense) income, net | 5,309 | 6,518 | 11,213 | 13,269 | ||||||||||||
| Other (expense) income, net | ||||||||||||||||
| Other (expense) income, net | 7 | 23 | 15 | 68 | ||||||||||||
| Interest income | 289 | 26 | 636 | 45 | ||||||||||||
| Interest expense | (29 | ) | (112 | ) | (80 | ) | (228 | ) | ||||||||
| Total other (expense) income, net | 267 | (63 | ) | 571 | (115 | ) | ||||||||||
| Income before provision for income taxes | 5,576 | 6,455 | 11,784 | 13,154 | ||||||||||||
| Provision for income taxes | (1,196 | ) | (1,320 | ) | (2,489 | ) | (2,709 | ) | ||||||||
| Net income | 4,380 | 5,135 | 9,295 | 10,445 | ||||||||||||
| Less: net income attributable to non-controlling interests | (1,715 | ) | (2,050 | ) | (3,630 | ) | (4,156 | ) | ||||||||
| Net income attributable to Silvercrest | $ | 2,665 | $ | 3,085 | $ | 5,665 | $ | 6,289 | ||||||||
| Net income per share: | ||||||||||||||||
| Basic | $ | 0.28 | $ | 0.33 | $ | 0.60 | $ | 0.66 | ||||||||
| Diluted | $ | 0.28 | $ | 0.33 | $ | 0.60 | $ | 0.66 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 9,509,711 | 9,456,347 | 9,494,869 | 9,502,301 | ||||||||||||
| Diluted | 9,547,879 | 9,480,079 | 9,531,730 | 9,528,720 | ||||||||||||
| Exhibit 2 | ||||||||||||||||
| Silvercrest Asset Management Group Inc. Reconciliation of GAAP to non-GAAP (“Adjusted”) Adjusted EBITDA Measure (Unaudited and in thousands, except share and per share amounts or as noted) | ||||||||||||||||
| Adjusted EBITDA | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Reconciliation of non-GAAP financial measure: | ||||||||||||||||
| Net income | $ | 4,380 | $ | 5,135 | $ | 9,295 | $ | 10,445 | ||||||||
| Provision for income taxes | 1,196 | 1,320 | 2,489 | 2,709 | ||||||||||||
| Delaware Franchise Tax | 50 | 50 | 100 | 100 | ||||||||||||
| Interest expense | 29 | 112 | 80 | 228 | ||||||||||||
| Interest income | (289 | ) | (26 | ) | (636 | ) | (45 | ) | ||||||||
| Depreciation and amortization | 1,058 | 1,057 | 2,077 | 2,016 | ||||||||||||
| Equity-based compensation | 485 | 382 | 839 | 694 | ||||||||||||
| Other adjustments (A) | 323 | 86 | 441 | 150 | ||||||||||||
| Adjusted EBITDA | $ | 7,232 | $ | 8,116 | $ | 14,685 | $ | 16,297 | ||||||||
| Adjusted EBITDA Margin | 23.3 | % | 27.3 | % | 24.0 | % | 27.5 | % | ||||||||
(a) Other adjustments consist of the following:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Acquisition costs (a) | $ | — | $ | — | $ | — | $ | 5 | ||||||||
| Severance | — | 19 | 60 | 19 | ||||||||||||
| Other (b) | 323 | 67 | 381 | 126 | ||||||||||||
| Total other adjustments | $ | 323 | $ | 86 | $ | 441 | $ | 150 | ||||||||
| (a) | For the six months ended June 30, 2023, represents professional fees of |
| (b) | For the three months ended June 30, 2024, represents a fair value adjustment to the Neosho contingent purchase price consideration of |
| Exhibit 3 | ||||||||||||||||
| Silvercrest Asset Management Group Inc. Reconciliation of GAAP to non-GAAP (“Adjusted”) Adjusted Net Income and Adjusted Earnings Per Share Measures (Unaudited and in thousands, except per share amounts or as noted) | ||||||||||||||||
| Adjusted Net Income and Adjusted Earnings Per Share | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Reconciliation of non-GAAP financial measure: | ||||||||||||||||
| Net income | $ | 4,380 | $ | 5,135 | $ | 9,295 | $ | 10,445 | ||||||||
| Consolidated GAAP Provision for income taxes | 1,196 | 1,320 | 2,489 | 2,709 | ||||||||||||
| Delaware Franchise Tax | 50 | 50 | 100 | 100 | ||||||||||||
| Other adjustments (A) | 323 | 86 | 441 | 150 | ||||||||||||
| Adjusted earnings before provision for income taxes | 5,949 | 6,591 | 12,325 | 13,404 | ||||||||||||
| Adjusted provision for income taxes: | ||||||||||||||||
| Adjusted provision for income taxes ( | (1,547 | ) | (1,714 | ) | (3,205 | ) | (3,485 | ) | ||||||||
| Adjusted net income | $ | 4,402 | $ | 4,877 | $ | 9,121 | $ | 9,919 | ||||||||
| GAAP net income per share (B): | ||||||||||||||||
| Basic | $ | 0.28 | $ | 0.33 | $ | 0.60 | $ | 0.66 | ||||||||
| Diluted | $ | 0.28 | $ | 0.33 | $ | 0.60 | $ | 0.66 | ||||||||
| Adjusted earnings per share/unit (B): | ||||||||||||||||
| Basic | $ | 0.31 | $ | 0.35 | $ | 0.65 | $ | 0.71 | ||||||||
| Diluted | $ | 0.30 | $ | 0.34 | $ | 0.63 | $ | 0.69 | ||||||||
| Shares/units outstanding: | ||||||||||||||||
| Basic Class A shares outstanding | 9,547 | 9,373 | 9,547 | 9,373 | ||||||||||||
| Basic Class B shares/units outstanding | 4,443 | 4,529 | 4,443 | 4,529 | ||||||||||||
| Total basic shares/units outstanding | 13,990 | 13,902 | 13,990 | 13,902 | ||||||||||||
| Diluted Class A shares outstanding (C) | 9,586 | 9,397 | 9,586 | 9,397 | ||||||||||||
| Diluted Class B shares/units outstanding (D) | 5,038 | 5,046 | 5,038 | 5,046 | ||||||||||||
| Total diluted shares/units outstanding | 14,624 | 14,443 | 14,624 | 14,443 | ||||||||||||
| (A) | See A in Exhibit 2. |
| (B) | GAAP earnings per share is strictly attributable to Class A shareholders. Adjusted earnings per share takes into account earnings attributable to both Class A and Class B shareholders. |
| (C) | Includes 38,936 and 23,732 unvested restricted stock units at June 30, 2024 and 2023, respectively. |
| (D) | Includes 228,118 and 264,037 unvested restricted stock units at June 30, 2024 and 2023, respectively, and 366,293 and 252,904 unvested non-qualified options at June 30, 2024 and 2023, respectively. |
| Exhibit 4 | ||||||||
| Silvercrest Asset Management Group Inc. Condensed Consolidated Statements of Financial Condition (Unaudited and in thousands) | ||||||||
| June 30, 2024 | December 31, 2023 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 49,947 | $ | 70,301 | ||||
| Investments | 219 | 219 | ||||||
| Receivables, net | 11,466 | 9,526 | ||||||
| Due from Silvercrest Funds | 852 | 558 | ||||||
| Furniture, equipment and leasehold improvements, net | 7,511 | 7,422 | ||||||
| Goodwill | 63,675 | 63,675 | ||||||
| Operating lease assets | 17,369 | 19,612 | ||||||
| Finance lease assets | 265 | 330 | ||||||
| Intangible assets, net | 17,788 | 18,933 | ||||||
| Deferred tax asset—tax receivable agreement | 4,488 | 5,034 | ||||||
| Prepaid expenses and other assets | 4,005 | 3,964 | ||||||
| Total assets | $ | 177,585 | $ | 199,574 | ||||
| Liabilities and Equity | ||||||||
| Accounts payable and accrued expenses | $ | 2,434 | $ | 1,990 | ||||
| Accrued compensation | 18,212 | 37,371 | ||||||
| Borrowings under credit facility | — | 2,719 | ||||||
| Operating lease liabilities | 23,886 | 26,277 | ||||||
| Finance lease liabilities | 273 | 336 | ||||||
| Deferred tax and other liabilities | 9,275 | 9,071 | ||||||
| Total liabilities | 54,080 | 77,764 | ||||||
| Commitments and Contingencies (Note 10) | ||||||||
| Equity | ||||||||
| Preferred Stock, par value and outstanding | — | — | ||||||
| Class A Common Stock, par value and 9,547,396 issued and outstanding, respectively, as of June 30, 2024; 10,287,452 and 9,478,997 issued and outstanding, respectively, as of December 31, 2023 | 103 | 103 | ||||||
| Class B Common Stock, par value and 4,431,105 issued and outstanding as of June 30, 2024 and December 31, 2023, respectively | 43 | 43 | ||||||
| Additional Paid-In Capital | 56,375 | 55,809 | ||||||
| Treasury Stock, at cost, 808,455 shares as of June 30, 2024 and December 31, 2023, respectively | (15,057 | ) | (15,057 | ) | ||||
| Accumulated other comprehensive income (loss) | (28 | ) | (12 | ) | ||||
| Retained earnings | 43,888 | 41,851 | ||||||
| Total Silvercrest Asset Management Group Inc.’s equity | 85,324 | 82,737 | ||||||
| Non-controlling interests | 38,181 | 39,073 | ||||||
| Total equity | 123,505 | 121,810 | ||||||
| Total liabilities and equity | $ | 177,585 | $ | 199,574 | ||||
| Exhibit 5 | ||||||||||||
| Silvercrest Asset Management Group Inc. Total Assets Under Management (Unaudited and in billions) | ||||||||||||
| Total Assets Under Management: | ||||||||||||
| Three Months Ended June 30, | % Change from June 30, | |||||||||||
| 2024 | 2023 | 2023 | ||||||||||
| Beginning assets under management | $ | 34.5 | $ | 29.9 | 15.4 | % | ||||||
| Gross client inflows | 0.6 | 2.4 | -75.0 | % | ||||||||
| Gross client outflows | (1.5 | ) | (1.1 | ) | 36.4 | % | ||||||
| Net client flows | (0.9 | ) | 1.3 | -169.2 | % | |||||||
| Market (depreciation)/appreciation | (0.2 | ) | 0.7 | -128.6 | % | |||||||
| Ending assets under management | $ | 33.4 | $ | 31.9 | 4.7 | % | ||||||
| Six Months Ended June 30, | % Change from June 30, | |||||||||||
| 2024 | 2023 | 2023 | ||||||||||
| Beginning assets under management | $ | 33.3 | $ | 28.9 | 15.2 | % | ||||||
| Gross client inflows | 1.7 | 3.9 | -56.4 | % | ||||||||
| Gross client outflows | (3.0 | ) | (2.7 | ) | 11.1 | % | ||||||
| Net client flows | (1.3 | ) | 1.2 | -208.3 | % | |||||||
| Market appreciation | 1.4 | 1.8 | -22.2 | % | ||||||||
| Ending assets under management | $ | 33.4 | $ | 31.9 | 4.7 | % | ||||||
| Exhibit 6 | ||||||||||||
| Silvercrest Asset Management Group Inc. Discretionary Assets Under Management (Unaudited and in billions) | ||||||||||||
| Discretionary Assets Under Management: | ||||||||||||
| Three Months Ended June 30, | % Change from June 30, | |||||||||||
| 2024 | 2023 | 2023 | ||||||||||
| Beginning assets under management | $ | 22.7 | $ | 21.3 | 6.6 | % | ||||||
| Gross client inflows | 0.6 | 0.5 | 20.0 | % | ||||||||
| Gross client outflows | (1.5 | ) | (0.9 | ) | 66.7 | % | ||||||
| Net client flows | (0.9 | ) | (0.4 | ) | 125.0 | % | ||||||
| Market (depreciation)/ appreciation | (0.2 | ) | 0.6 | -133.3 | % | |||||||
| Ending assets under management | $ | 21.6 | $ | 21.5 | 0.5 | % | ||||||
| Six Months Ended June 30, | % Change from June 30, | |||||||||||
| 2024 | 2023 | 2023 | ||||||||||
| Beginning assets under management | $ | 21.9 | $ | 20.9 | 4.8 | % | ||||||
| Gross client inflows | 1.2 | 1.9 | -36.8 | % | ||||||||
| Gross client outflows | (2.5 | ) | (2.4 | ) | 4.2 | % | ||||||
| Net client flows | (1.3 | ) | (0.5 | ) | 160.0 | % | ||||||
| Market appreciation | 1.0 | 1.1 | -9.1 | % | ||||||||
| Ending assets under management | $ | 21.6 | $ | 21.5 | 0.5 | % | ||||||
| Exhibit 7 | ||||||||||||
| Silvercrest Asset Management Group Inc. Non-Discretionary Assets Under Management (Unaudited and in billions) | ||||||||||||
| Non-Discretionary Assets Under Management: | ||||||||||||
| Three Months Ended June 30, | % Change from June 30, | |||||||||||
| 2024 | 2023 | 2023 | ||||||||||
| Beginning assets under management | $ | 11.8 | $ | 8.6 | 37.2 | % | ||||||
| Gross client inflows | — | 1.9 | -100.0 | % | ||||||||
| Gross client outflows | — | (0.2 | ) | -100.0 | % | |||||||
| Net client flows | — | 1.7 | -100.0 | % | ||||||||
| Market appreciation | — | 0.1 | -100.0 | % | ||||||||
| Ending assets under management | $ | 11.8 | $ | 10.4 | 13.5 | % | ||||||
| Six Months Ended June 30, | % Change from June 30, | |||||||||||
| 2024 | 2023 | 2023 | ||||||||||
| Beginning assets under management | $ | 11.4 | $ | 8.0 | 42.5 | % | ||||||
| Gross client inflows | 0.5 | 2.0 | -75.0 | % | ||||||||
| Gross client outflows | (0.5 | ) | (0.3 | ) | 66.7 | % | ||||||
| Net client flows | — | 1.7 | -100.0 | % | ||||||||
| Market appreciation | 0.4 | 0.7 | -42.9 | % | ||||||||
| Ending assets under management | $ | 11.8 | $ | 10.4 | 13.5 | % | ||||||
| Exhibit 8 | ||||||||
| Silvercrest Asset Management Group Inc. Assets Under Management (Unaudited and in billions) | ||||||||
| Three Months Ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| Total AUM as of March 31, | $ | 34.509 | $ | 29.902 | ||||
| Discretionary AUM: | ||||||||
| Total Discretionary AUM as of March 31, | $ | 22.681 | $ | 21.251 | ||||
| New client accounts/assets (1) | 0.068 | 0.022 | ||||||
| Closed accounts (2) | (0.036 | ) | (0.037 | ) | ||||
| Net cash inflow/(outflow) (3) | (0.955 | ) | (0.332 | ) | ||||
| Non-discretionary to Discretionary AUM (4) | — | (0.040 | ) | |||||
| Market (depreciation)/appreciation | (0.112 | ) | 0.636 | |||||
| Change to Discretionary AUM | (1.035 | ) | 0.249 | |||||
| Total Discretionary AUM at June 30, | 21.646 | 21.500 | ||||||
| Change to Non-Discretionary AUM (5) | (0.044 | ) | 1.773 | |||||
| Total AUM as of June 30, | $ | 33.430 | $ | 31.924 | ||||
| Six Months Ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| Total AUM as of January 1, | $ | 33.281 | $ | 28.905 | ||||
| Discretionary AUM: | ||||||||
| Total Discretionary AUM as of January 1, | $ | 21.885 | $ | 20.821 | ||||
| New client accounts/assets (1) | 0.103 | 0.097 | ||||||
| Closed accounts (2) | (0.475 | ) | (0.085 | ) | ||||
| Net cash inflow/(outflow) (3) | (0.948 | ) | (0.506 | ) | ||||
| Non-discretionary to Discretionary AUM (4) | (0.002 | ) | (0.038 | ) | ||||
| Market appreciation | 1.083 | 1.181 | ||||||
| Change to Discretionary AUM | (0.239 | ) | 0.649 | |||||
| Total Discretionary AUM at June 30, | 21.646 | 21.470 | ||||||
| Change to Non-Discretionary AUM (5) | 0.388 | 2.370 | ||||||
| Total AUM as of June 30, | $ | 33.430 | $ | 31.924 | ||||
| (1) | Represents new account flows from both new and existing client relationships. |
| (2) | Represents closed accounts of existing client relationships and those that terminated. |
| (3) | Represents periodic cash flows related to existing accounts. |
| (4) | Represents client assets that converted to Discretionary AUM from Non-Discretionary AUM. |
| (5) | Represents the net change to Non-Discretionary AUM. |
| Exhibit 9 | ||||||||||||||||||||||
| Silvercrest Asset Management Group Inc. Equity Investment Strategy Composite Performance1, 2 As of June 30, 2024 (Unaudited) | ||||||||||||||||||||||
| PROPRIETARY EQUITY PERFORMANCE1, 2 | ANNUALIZED PERFORMANCE | |||||||||||||||||||||
| INCEPTION | 1-YEAR | 3-YEAR | 5-YEAR | 7-YEAR | INCEPTION | |||||||||||||||||
| Large Cap Value Composite | 4/1/02 | 15.1 | 6.5 | 10.9 | 11.7 | 9.5 | ||||||||||||||||
| Russell 1000 Value Index | 13.1 | 5.5 | 9.0 | 8.6 | 7.7 | |||||||||||||||||
| Small Cap Value Composite | 4/1/02 | 11.5 | 3.9 | 9.0 | 7.5 | 10.2 | ||||||||||||||||
| Russell 2000 Value Index | 10.9 | -0.5 | 7.1 | 5.9 | 7.6 | |||||||||||||||||
| Smid Cap Value Composite | 10/1/05 | 11.8 | 1.7 | 7.2 | 7.2 | 9.2 | ||||||||||||||||
| Russell 2500 Value Index | 11.2 | 2.1 | 8.0 | 7.0 | 7.5 | |||||||||||||||||
| Multi Cap Value Composite | 7/1/02 | 14.4 | 3.4 | 9.0 | 9.2 | 9.5 | ||||||||||||||||
| Russell 3000 Value Index | 12.9 | 5.1 | 8.9 | 8.4 | 8.2 | |||||||||||||||||
| Equity Income Composite | 12/1/03 | 11.8 | 4.4 | 7.2 | 8.6 | 10.8 | ||||||||||||||||
| Russell 3000 Value Index | 12.9 | 5.1 | 8.9 | 8.4 | 8.4 | |||||||||||||||||
| Focused Value Composite | 9/1/04 | 10.9 | -1.1 | 4.1 | 5.7 | 9.1 | ||||||||||||||||
| Russell 3000 Value Index | 12.9 | 5.1 | 8.9 | 8.4 | 8.2 | |||||||||||||||||
| Small Cap Opportunity Composite | 7/1/04 | 11.3 | 1.5 | 9.7 | 9.9 | 10.8 | ||||||||||||||||
| Russell 2000 Index | 10.1 | -2.6 | 6.9 | 6.8 | 7.8 | |||||||||||||||||
| Small Cap Growth Composite | 7/1/04 | 1.0 | -6.7 | 10.0 | 10.8 | 10.3 | ||||||||||||||||
| Russell 2000 Growth Index | 9.1 | -4.9 | 6.2 | 7.3 | 8.2 | |||||||||||||||||
| Smid Cap Growth Composite | 1/1/06 | 4.6 | -8.4 | 11.0 | 12.4 | 10.4 | ||||||||||||||||
| Russell 2500 Growth Index | 9.0 | -4.1 | 7.6 | 9.3 | 9.2 | |||||||||||||||||
| 1 | Returns are based upon a time weighted rate of return of various fully discretionary equity portfolios with similar investment objectives, strategies and policies and other relevant criteria managed by Silvercrest Asset Management Group LLC (“SAMG LLC”), a subsidiary of Silvercrest. Performance results are gross of fees and net of commission charges. An investor’s actual return will be reduced by the advisory fees and any other expenses it may incur in the management of the investment advisory account. SAMG LLC’s standard advisory fees are described in Part 2 of its Form ADV. Actual fees and expenses will vary depending on a variety of factors, including the size of a particular account. Returns greater than one year are shown as annualized compounded returns and include gains and accrued income and reinvestment of distributions. Past performance is no guarantee of future results. This piece contains no recommendations to buy or sell securities or a solicitation of an offer to buy or sell securities or investment services or adopt any investment position. This piece is not intended to constitute investment advice and is based upon conditions in place during the period noted. Market and economic views are subject to change without notice and may be untimely when presented here. Readers are advised not to infer or assume that any securities, sectors or markets described were or will be profitable. SAMG LLC is an independent investment advisory and financial services firm created to meet the investment and administrative needs of individuals with substantial assets and select institutional investors. SAMG LLC claims compliance with the Global Investment Performance Standards (GIPS®). |
| 2 | The market indices used to compare to the performance of Silvercrest’s strategies are as follows: |
| The Russell 1000 Index is a capitalization-weighted, unmanaged index that measures the 1000 largest companies in the Russell 3000. The Russell 1000 Value Index is a capitalization-weighted, unmanaged index that includes those Russell 1000 Index companies with lower price-to-book ratios and lower expected growth values. | |
| The Russell 2000 Index is a capitalization-weighted, unmanaged index that measures the 2000 smallest companies in the Russell 3000. The Russell 2000 Value Index is a capitalization-weighted, unmanaged index that includes those Russell 2000 Index companies with lower price-to-book ratios and lower expected growth values. | |
| The Russell 2500 Index is a capitalization-weighted, unmanaged index that measures the 2500 smallest companies in the Russell 3000. The Russell 2500 Value Index is a capitalization-weighted, unmanaged index that includes those Russell 2000 Index companies with lower price-to-book ratios and lower expected growth values. | |
| The Russell 3000 Value Index is a capitalization-weighted, unmanaged index that measures those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth. |
FAQ
What was Silvercrest's total AUM as of June 30, 2024?
How much did SAMG's revenue increase in Q2 2024 compared to Q2 2023?
What was Silvercrest's net income per share for Q2 2024?
How much did SAMG increase its quarterly dividend?
What was the value of Silvercrest's pipeline of new institutional business opportunities in Q2 2024?
