STOCK TITAN

Silvercrest Asset Management Group Inc. Reports Q3 2024 Results

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags

Silvercrest Asset Management Group (SAMG) reported Q3 2024 financial results with total Assets Under Management (AUM) reaching $35.1 billion, including $22.6 billion in discretionary AUM. Revenue increased 2.4% to $30.4 million compared to Q3 2023. However, net income decreased to $3.7 million from $5.4 million year-over-year, with margins declining to 12.3% from 18.1%. The company's discretionary AUM grew 10.2% year-over-year, driven by $4.1 billion in market appreciation, partially offset by $2.0 billion in net client outflows. The Board approved a quarterly dividend of $0.20 per share of Class A common stock.

Silvercrest Asset Management Group (SAMG) ha riportato i risultati finanziari del terzo trimestre 2024, con Attività Sotto Gestione (AUM) totali che raggiungono i 35,1 miliardi di dollari, inclusi 22,6 miliardi di dollari in AUM discrezionali. I ricavi sono aumentati del 2,4%, arrivando a 30,4 milioni di dollari rispetto al terzo trimestre 2023. Tuttavia, l'utile netto è diminuito a 3,7 milioni di dollari rispetto ai 5,4 milioni di dollari dell'anno precedente, con i margini in calo dal 18,1% al 12,3%. L'AUM discrezionale dell'azienda è cresciuto del 10,2% su base annua, supportato da un apprezzamento di mercato di 4,1 miliardi di dollari, parzialmente compensato da deflussi netti di clienti pari a 2,0 miliardi di dollari. Il Consiglio ha approvato un dividendo trimestrale di 0,20 dollari per azione di azioni ordinarie di Classe A.

Silvercrest Asset Management Group (SAMG) informó los resultados financieros del tercer trimestre de 2024, con un total de Activos Bajo Gestión (AUM) que alcanzan los 35,1 mil millones de dólares, incluidos 22,6 mil millones de dólares en AUM discrecionales. Los ingresos aumentaron un 2,4%, llegando a 30,4 millones de dólares en comparación con el tercer trimestre de 2023. Sin embargo, el ingreso neto disminuyó a 3,7 millones de dólares desde 5,4 millones de dólares en el mismo periodo del año anterior, con márgenes cayendo del 18,1% al 12,3%. El AUM discrecional de la empresa creció un 10,2% en comparación con el año anterior, impulsado por un aumento de mercado de 4,1 mil millones de dólares, parcialmente compensado por 2,0 mil millones de dólares en salidas netas de clientes. La Junta aprobó un dividendo trimestral de 0,20 dólares por acción de acciones ordinarias de Clase A.

실버크레스트 자산 관리 그룹(SAMG)은 2024년 3분기 재무 결과를 발표했으며, 총 운용 자산(AUM)은 351억 달러에 달하고, 이 중 226억 달러는 재량 자산입니다. 수익은 2023년 3분기 대비 2.4% 증가하여 3040만 달러에 도달했습니다. 그러나 순이익은 작년 같은 기간의 540만 달러에서 370만 달러로 감소했으며, 마진은 18.1%에서 12.3%로 하락했습니다. 회사의 재량 AUM은 작년 대비 10.2% 성장했으며, 이는 41억 달러의 시장 가치 상승에 의해 촉진되었고, 부분적으로는 20억 달러의 순 고객 유출로 상쇄되었습니다. 이사회는 클래스 A 보통주 1주당 0.20달러의 분기 배당금을 승인했습니다.

Silvercrest Asset Management Group (SAMG) a publié les résultats financiers du troisième trimestre 2024, avec des Actifs Sous Gestion (AUM) totalisant 35,1 milliards de dollars, dont 22,6 milliards de dollars en AUM discrétionnaires. Les revenus ont augmenté de 2,4 % pour atteindre 30,4 millions de dollars par rapport au troisième trimestre 2023. Cependant, le bénéfice net a chuté à 3,7 millions de dollars contre 5,4 millions de dollars l'année précédente, avec des marges passant de 18,1 % à 12,3 %. Les AUM discrétionnaires de l'entreprise ont crû de 10,2 % d'une année sur l'autre, soutenus par une appréciation de marché de 4,1 milliards de dollars, partiellement compensée par des sorties nettes de clients de 2,0 milliards de dollars. Le conseil d'administration a approuvé un dividende trimestriel de 0,20 dollar par action d'actions ordinaires de Classe A.

Silvercrest Asset Management Group (SAMG) hat die Finanzzahlen für das 3. Quartal 2024 veröffentlicht, wobei die Assets Under Management (AUM) insgesamt 35,1 Milliarden Dollar erreichen, einschließlich 22,6 Milliarden Dollar in diskretionären AUM. Der Umsatz stieg um 2,4% auf 30,4 Millionen Dollar im Vergleich zum 3. Quartal 2023. Das Nettoeinkommen fiel jedoch von 5,4 Millionen Dollar im Vorjahr auf 3,7 Millionen Dollar, wobei die Margen von 18,1% auf 12,3% sanken. Das diskretionäre AUM des Unternehmens wuchs im Jahresvergleich um 10,2%, angetrieben von 4,1 Milliarden Dollar an Marktwertsteigerung, die teilweise durch 2,0 Milliarden Dollar an Nettoabflüssen von Kunden ausgeglichen wurde. Der Vorstand genehmigte eine vierteljährliche Dividende von 0,20 Dollar pro Aktie der Klasse A Stammaktien.

Positive
  • Total AUM increased 12.5% YoY to $35.1 billion
  • Revenue grew 2.4% YoY to $30.4 million
  • Discretionary AUM increased 10.2% YoY to $22.6 billion
  • Pipeline of new institutional business opportunities increased 20% to $1.2 billion
Negative
  • Net income declined 30.7% YoY to $3.7 million
  • Net income margin decreased to 12.3% from 18.1% YoY
  • Total expenses increased 12% YoY to $26.0 million
  • Net client outflows of $2.0 billion in discretionary AUM

Insights

The Q3 2024 results reveal mixed performance for Silvercrest Asset Management. While AUM grew impressively to $35.1 billion (up 12.5% YoY), profitability metrics declined significantly. Revenue increased modestly by 2.4% to $30.4 million, but net income margin dropped to 12.3% from 18.1% YoY.

The concerning trend is rising expenses, with total expenses up 12% YoY, primarily due to higher compensation costs. This has compressed margins significantly - Adjusted EBITDA margin declined to 20.9% from 26.9%. While management frames this as investment for growth, the immediate impact on profitability is substantial.

The $1.2 billion pipeline and new Global Equity strategy present growth opportunities, but current net outflows of $2.0 billion in discretionary AUM need to be addressed. The maintained quarterly dividend of $0.20 per share and strong cash position of $58.1 million provide some stability.

The market dynamics heavily influence SAMG's performance, with the broadening market recovery benefiting their diversified portfolio approach. The shift from narrow Large Cap Growth leadership to broader market participation, including Small Cap stocks, aligns well with their business model.

The 20% increase in institutional pipeline during Q3 signals strong business development momentum. However, the revenue-neutral outflows and higher expenses for growth investments create near-term pressure. The focus on building infrastructure for the Global Equity strategy shows strategic positioning for institutional market expansion.

The challenge lies in balancing growth investments with profitability - current compensation increases are outpacing revenue growth, creating margin pressure that may persist in coming quarters.

NEW YORK, Oct. 31, 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 September 30, 2024.

Business Update

Supportive markets and improving economic conditions helped Silvercrest’s assets under management (“AUM”) growth during the third quarter, pointing to improved top-line revenue. The firm also saw improved business development results and will report a robust pipeline of new business opportunities. A persistent trend of the market’s recovery since 2022 has been the narrow leadership of Large Cap Growth equities. We noted during our second quarter earnings call that, despite progress in the market, Large Cap Value and Small Cap stocks, had actually declined during that quarter. We have been pleased to see broader company market participation throughout the third quarter and an increase in equities across the market cap spectrum, which benefits Silvercrest’s diversified wealth management business as well as our exposure to the small cap institutional business. The increases during the quarter bode well for future revenue. We are optimistic about securing significant organic net flows over the next two quarters.

Silvercrest’s discretionary AUM increased $1.0 billion during the quarter to $22.6 billion, primarily due to rising markets. This net increase in discretionary AUM – which drives revenue – represents a 5% increase since the second quarter and a year-over-year increase of 10% since the third quarter of 2023. New client accounts and relationships increased during the quarter, led by new Silvercrest Small Cap Opportunity mandates. While we report discretionary outflows during the third quarter, the outflows were revenue neutral to the firm. Overall, total asset flows and market increases were a net positive for the firm and should drive an increase in fourth-quarter revenue. Total AUM at the end of the third quarter was $35.1 billion. Total AUM increased year-over-year from the third quarter of 2023, up 13%. Despite these increases, Silvercrest has been investing in the future growth of the business, which has resulted in higher total compensation and which we have adjusted for on a quarterly basis. As a result, while top-line revenue has increased, most metrics of the business are down due to these higher expenses.

Silvercrest's pipeline of new institutional business opportunities increased during the third quarter by 20% and now stands at $1.2 billion. Importantly, the firm’s pipeline does not yet include potential mandates for our new Global Equity strategy which has a high capacity for significant inflows. Over the past two quarters, we have worked to build the infrastructure to support the team and strategy while undertaking business development. We are optimistic about near-term positive AUM flows and resulting revenue increases to result from the pipeline.

I have consistently mentioned that Silvercrest has never had more business opportunities underway. We have made and will make investments to drive future growth in the business. 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 for this purpose, and, as mentioned, we will continue to adjust compensation levels to match these important investments in the business and will keep you informed of our plans and the progress of these investments.

We continue to see substantial new opportunities globally for a firm with our high-quality capabilities, coupled with superior client service. 

On October 30, 2024, the Company’s Board of Directors approved a quarterly dividend of $0.20 per share of Class A common stock.  The dividend will be paid on or about December 20, 2024 to stockholders of record as of the close of business on December 13, 2024.

Third Quarter 2024 Highlights

  • Total Assets Under Management (“AUM”) of $35.1 billion, inclusive of discretionary AUM of $22.6 billion and non-discretionary AUM of $12.5 billion at September 30, 2024.
  • Revenue of $30.4 million.
  • U.S. Generally Accepted Accounting Principles (“GAAP”) consolidated net income and net income attributable to Silvercrest of $3.7 million and $2.3 million, respectively. 
  • Basic and diluted net income per share of $0.24.
  • Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”)1 of $6.3 million.
  • Adjusted net income1 of $3.8 million.
  • Adjusted basic and diluted earnings per share1, 2 of $0.27 and $0.26, respectively.

The table below presents a comparison of certain GAAP and non-GAAP (“Adjusted”) financial measures and AUM.

  For the Three Months
Ended September 30,
  For the Nine Months
Ended September 30,
 
(in thousands except as indicated) 2024  2023  2024  2023 
Revenue $30,424  $29,704  $91,689  $88,868 
Income before other income (expense), net $4,457  $6,519  $15,670  $19,788 
Net income $3,730  $5,380  $13,025  $15,825 
Net income margin  12.3%  18.1%  14.2%  17.8%
Net income attributable to Silvercrest $2,252  $3,216  $7,917  $9,505 
Net income per basic share $0.24  $0.34  $0.83  $1.01 
Net income per diluted share $0.24  $0.34  $0.83  $1.00 
Adjusted EBITDA1 $6,346  $8,000  $21,031  $24,297 
Adjusted EBITDA Margin1  20.9%  26.9%  22.9%  27.3%
Adjusted net income1 $3,801  $5,136  $12,921  $15,055 
Adjusted basic earnings per share1, 2 $0.27  $0.37  $0.93  $1.08 
Adjusted diluted earnings per share1, 2 $0.26  $0.36  $0.89  $1.05 
Assets under management at period end (billions) $35.1  $31.2  $35.1  $31.2 
Average assets under management (billions)3 $34.2  $31.6  $34.3  $30.1 

_________________

1Adjusted measures are non-GAAP measures and are explained and reconciled to the comparable GAAP measures in Exhibits 2 and 3.
2Adjusted basic and diluted earnings per share measures for the three and nine months ended September 30, 2024 are based on the number of shares of Class A common stock and Class B common stock outstanding as of September 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.
3We 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 $35.1 Billion

Silvercrest’s discretionary assets under management increased by $2.1 billion, or 10.2%, to $22.6 billion at September 30, 2024, from $20.5 billion at September 30, 2023. The increase was attributable to market appreciation of $4.1 billion partially offset by net client outflows of $2.0 billion. Silvercrest’s total AUM increased by $3.9 billion, or 12.5%, to $35.1 billion at September 30, 2024, from $31.2 billion at September 30, 2023. The increase was attributable to market appreciation of $5.7 billion partially offset by net client outflows of $1.8 billion

Silvercrest’s discretionary assets under management increased by $1.0 billion, or 4.6%, to $22.6 billion at September 30, 2024, from $21.6 billion at June 30, 2024. The increase was attributable to market appreciation of $1.3 billion and net client outflows of $0.3 billion. Silvercrest’s total AUM increased by $1.7 billion, or 5.1%, to $35.1 billion at September 30, 2024, from $33.4 billion at June 30, 2024. The increase was attributable to market appreciation of $1.9 billion and net client outflows of $0.2 billion.

Third Quarter 2024 vs. Third Quarter 2023

Revenue increased by $0.7 million, or 2.4%, to $30.4 million for the three months ended September 30, 2024, from $29.7 million for the three months ended September 30, 2023. This increase was driven by market appreciation partially offset by net client outflows.

Total expenses increased by $2.8 million, or 12.0%, to $26.0 million for the three months ended September 30, 2024, from $23.2 million for the three months ended September 30, 2023. Compensation and benefits expense increased by $1.9 million, or 11.4%, to $18.6 million for the three months ended September 30, 2024, from $16.7 million for the three months ended September 30, 2023. The increase was primarily attributable to increases in the accrual for bonuses of $0.7 million, severance expense of $0.2 million, equity-based compensation of $0.2 million and salaries and benefits of $0.8 million primarily as a result of merit-based increases.  General and administrative expenses increased by $0.9 million, or 13.4%, to $7.4 million for the three months ended September 30, 2024, from $6.5 million for the three months ended September 30, 2023. This was primarily attributable to increases in occupancy and related costs of $0.1 million, professional fees of $0.2 million, portfolio and systems expense of $0.3 million and trade errors of $0.3 million.

Consolidated net income was $3.7 million or 12.3% of revenue for the three months ended September 30, 2024, as compared to consolidated net income of $5.4 million or 18.1% of revenue for the same period in the prior year. Net income attributable to Silvercrest was $2.3 million, or $0.24 per basic share and diluted share for the three months ended September 30, 2024. Our Adjusted Net Income1 was $3.8 million, or $0.27 per adjusted basic share1, 2 and $0.26 per adjusted diluted share1, 2 for the three months ended September 30, 2024.

Adjusted EBITDA1 was $6.3 million, or 20.9% of revenue for the three months ended September 30, 2024, as compared to $8.0 million or 26.9% of revenue for the same period in the prior year.

Nine Months Ended September 30, 2024 vs. Nine Months Ended September 30, 2023

Revenue increased by $2.8 million, or 3.2%, to $91.7 million for the nine months ended September 30, 2024, from $88.9 million for the nine months ended September 30, 2023. This increase was driven by market appreciation partially offset by net client outflows.

Total expenses increased by $6.9 million, or 10.0%, to $76.0 million for the nine months ended September 30, 2024, from $69.1 million for the nine months ended September 30, 2023. Compensation and benefits expense increased by $4.8 million, or 9.6%, to $54.8 million for the nine months ended September 30, 2024, from $50.0 million for the nine months ended September 30, 2023. The increase was primarily attributable to increases in the accrual for bonuses of $3.0 million, severance expense of $0.2 million, equity-based compensation of $0.3 million and salaries and benefits of $1.3 million primarily as a result of merit-based increases.  General and administrative expenses increased by $2.1 million, or 11.1%, to $21.3 million for the nine months ended September 30, 2024, from $19.1 million for the nine months ended September 30, 2023. This was primarily attributable to increases in travel and entertainment expenses of $0.2 million, occupancy and related costs of $0.2 million, professional fees of $0.6 million, portfolio and systems expenses of $0.4 million, recruiting expenses of $0.3 million, trade errors of $0.3 million and depreciation and amortization expense of $0.1 million.

Consolidated net income was $13.0 million or 14.2% of revenue for the nine months ended September 30, 2024, as compared to consolidated net income of $15.8 million or 17.8% of revenue for the same period in the prior year.  Net income attributable to Silvercrest was $7.9 million, or $0.83 per basic share and diluted share for the nine months ended September 30, 2024.  Our Adjusted Net Income1 was $12.9 million, or $0.93 per adjusted basic share1, 2 and $0.89 per adjusted diluted share1, 2 for the nine months ended September 30, 2024.

Adjusted EBITDA1 was $21.0 million or 22.9% of revenue for the nine months ended September 30, 2024, as compared to $24.3 million or 27.3% of revenue for the same period in the prior year.

Liquidity and Capital Resources

Cash and cash equivalents were $58.1 million at September 30, 2024, compared to $70.3 million at December 31, 2023.  As of September 30, 2024, there was nothing outstanding under our term loan or under our revolving credit facility with City National Bank. 

Silvercrest’s total equity was $84.6 million at September 30, 2024.  We had 9,503,410 shares of Class A common stock outstanding and 4,406,295 shares of Class B common stock outstanding at September 30, 2024.

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 believe 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 stockholders.  
  • Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenue. We believe 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 stockholders.
  • 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 believe 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 stockholders. 
  • 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 believe 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 November 1, 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; our expectations with respect to deferred tax assets, adverse economic or market conditions; 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)
 
 Three Months Ended
September 30,
  Nine Months Ended
September 30,
 
 2024  2023  2024  2023 
            
Revenue           
Management and advisory fees$29,380  $28,425  $88,445  $85,445 
Family office services 1,044   1,279   3,244   3,423 
Total revenue 30,424   29,704   91,689   88,868 
Expenses           
Compensation and benefits 18,598   16,691   54,760   49,945 
General and administrative 7,369   6,494   21,259   19,135 
Total expenses 25,967   23,185   76,019   69,080 
Income before other (expense) income, net 4,457   6,519   15,670   19,788 
Other (expense) income, net           
Other (expense) income, net 10   (37)  25   31 
Interest income 374   376   1,010   421 
Interest expense (15)  (86)  (95)  (314)
Total other (expense) income, net 369   253   940   138 
Income before provision for income taxes 4,826   6,772   16,610   19,926 
Provision for income taxes (1,096)  (1,392)  (3,585)  (4,101)
Net income 3,730   5,380   13,025   15,825 
Less: net income attributable to non-controlling interests (1,478)  (2,164)  (5,108)  (6,320)
Net income attributable to Silvercrest$2,252  $3,216  $7,917  $9,505 
Net income per share:           
Basic$0.24  $0.34  $0.83  $1.01 
Diluted$0.24  $0.34  $0.83  $1.00 
Weighted average shares outstanding:           
Basic 9,541,407   9,354,747   9,510,495   9,452,576 
Diluted 9,579,172   9,378,479   9,547,659   9,478,090 
                

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 EBITDAThree Months Ended
September 30,
  Nine Months Ended
September 30,
 
 2024  2023  2024  2023 
Reconciliation of non-GAAP financial measure:           
Net income$3,730  $5,380  $13,025  $15,825 
Provision for income taxes 1,096   1,392   3,585   4,101 
Delaware Franchise Tax 50   50   150   150 
Interest expense 15   86   95   314 
Interest income (374)  (376)  (1,010)  (421)
Depreciation and amortization 1,034   996   3,111   3,012 
Equity-based compensation 535   353   1,374   1,047 
Other adjustments (A) 260   119   701   269 
Adjusted EBITDA$6,346  $8,000  $21,031  $24,297 
Adjusted EBITDA Margin 20.9%  26.9%  22.9%  27.3%
                

(A)  Other adjustments consist of the following:

 Three Months Ended
September 30,
  Nine Months Ended
September 30,
 
 2024  2023  2024  2023 
Acquisition costs (a)$  $  $  $5 
Severance 193      253   19 
Other (b) 67   119   448   245 
Total other adjustments$260  $119  $701  $269 
                


(a)For the nine months ended September 30, 2023, represents professional fees of $5 related to the acquisition of Cortina.
  
(b)For the three months ended September30, 2024, represents an ASC 842 rent adjustment of $48 related to the amortization of property lease incentives, data conversion costs of $14 and software implementation costs of $5.  For the nine months ended September 30, 2024, represents a fair value adjustment to the Neosho contingent purchase price consideration of $12, an ASC 842 rent adjustment of $144 related to the amortization of property lease incentives, sign on bonuses paid to certain employees of $188, professional fees of $26 related to a transfer pricing project, legal fees of $46, data conversion costs of $14 and software implementation costs of $18.  For the three months ended September 30, 2023, represents an adjustment to the fair value of the tax receivable agreement of $40, an ASC 842 rent adjustment of $48 related to the amortization of property lease incentives, $23 related to moving costs and software implementation costs of $8.  For the nine months ended September 30, 2023, represents an adjustment to the fair value of the tax receivable agreement of $40, an ASC 842 rent adjustment of $144 related to the amortization of property lease incentives, $35 related to moving costs, software implementation costs of $28 and a fair value adjustment to the Cortina contingent purchase price consideration of ($2)

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 ShareThree Months Ended
September 30,
  Nine Months Ended
September 30,
 
 2024  2023  2024  2023 
Reconciliation of non-GAAP financial measure:           
Net income$3,730  $5,380  $13,025  $15,825 
Consolidated GAAP Provision for income taxes 1,096   1,392   3,585   4,101 
Delaware Franchise Tax 50   50   150   150 
Other adjustments (A) 260   119   701   269 
Adjusted earnings before provision for income taxes 5,136   6,941   17,461   20,345 
Adjusted provision for income taxes:           
Adjusted provision for income taxes (26% assumed tax rate) (1,335)  (1,805)  (4,540)  (5,290)
            
Adjusted net income$3,801  $5,136  $12,921  $15,055 
            
GAAP net income per share (B):           
Basic$0.24  $0.34  $0.83  $1.01 
Diluted$0.24  $0.34  $0.83  $1.00 
            
Adjusted earnings per share/unit (B):           
Basic$0.27  $0.37  $0.93  $1.08 
Diluted$0.26  $0.36  $0.89  $1.05 
            
Shares/units outstanding:           
Basic Class A shares outstanding 9,503   9,342   9,503   9,342 
Basic Class B shares/units outstanding 4,406   4,545   4,406   4,545 
Total basic shares/units outstanding 13,909   13,887   13,909   13,887 
            
Diluted Class A shares outstanding (C) 9,541   9,366   9,541   9,366 
Diluted Class B shares/units outstanding (D) 5,001   4,956   5,001   4,956 
Total diluted shares/units outstanding 14,542   14,322   14,542   14,322 
                


(A)See A in Exhibit 2.
  
(B)GAAP earnings per share is strictly attributable to Class A stockholders.  Adjusted earnings per share takes into account earnings attributable to both Class A and Class B stockholders. 
  
(C)Includes 37,109 and 23,732 unvested restricted stock units at September 30, 2024 and 2023, respectively.
  
(D)Includes 228,117 and 264,037 unvested restricted stock units at September 30, 2024 and 2023, respectively, and 366,293 and 147,506 unvested non-qualified options at September 30, 2024 and 2023, respectively.

Exhibit 4

Silvercrest Asset Management Group Inc.
Condensed Consolidated Statements of Financial Condition
(Unaudited and in thousands)
 
 
 September 30,
2024
  December 31,
2023
 
Assets     
Cash and cash equivalents$58,103  $70,301 
Investments 219   219 
Receivables, net 12,833   9,526 
Due from Silvercrest Funds 860   558 
Furniture, equipment and leasehold improvements, net 7,458   7,422 
Goodwill 63,675   63,675 
Operating lease assets 16,290   19,612 
Finance lease assets 237   330 
Intangible assets, net 17,216   18,933 
Deferred tax asset—tax receivable agreement 3,749   5,034 
Prepaid expenses and other assets 3,530   3,964 
Total assets$184,170  $199,574 
Liabilities and Equity     
Accounts payable and accrued expenses$1,718  $1,990 
Accrued compensation 27,238   37,371 
Borrowings under credit facility    2,719 
Operating lease liabilities 22,668   26,277 
Finance lease liabilities 245   336 
Deferred tax and other liabilities 9,423   9,071 
Total liabilities 61,292   77,764 
Commitments and Contingencies     
Equity     
Preferred Stock, par value $0.01, 10,000,000 shares authorized; none issued and outstanding     
Class A Common Stock, par value $0.01, 50,000,000 shares authorized; 10,394,542 and 9,503,410 issued and outstanding, respectively, as of September 30, 2024; 10,287,452 and 9,478,997 issued and outstanding, respectively, as of December 31, 2023 104   103 
Class B Common Stock, par value $0.01, 25,000,000 shares authorized; 4,406,295 and 4,431,105 issued and outstanding as of September 30, 2024 and December 31, 2023, respectively 43   43 
Additional Paid-In Capital 56,643   55,809 
Treasury Stock, at cost, 891,132 shares as of September 30, 2024 and 808,455 as of December 31, 2023 (16,421)  (15,057)
Accumulated other comprehensive income (loss) (19)  (12)
Retained earnings 44,227   41,851 
Total Silvercrest Asset Management Group Inc.’s equity 84,577   82,737 
Non-controlling interests 38,301   39,073 
Total equity 122,878   121,810 
Total liabilities and equity$184,170  $199,574 
        

Exhibit 5

Silvercrest Asset Management Group Inc.
Total Assets Under Management
(Unaudited and in billions)
 
Total Assets Under Management:
 
 Three Months Ended
September 30,
  % Change from
September 30,
 
 2024  2023  2023 
Beginning assets under management$33.4  $31.9   4.7%
         
Gross client inflows 1.1   0.6   83.3%
Gross client outflows (1.3)  (0.8)  62.5%
Net client flows (0.2)  (0.2)  0.0%
         
Market appreciation/(depreciation) 1.9   (0.5) NM 
Ending assets under management$35.1  $31.2   12.5%
            


 Nine Months Ended
September 30,
  % Change from
September 30,
 
 2024  2023  2023 
Beginning assets under management$33.3  $28.9   15.2%
         
Gross client inflows 2.9   4.5   -35.6%
Gross client outflows (4.4)  (3.5)  25.7%
Net client flows (1.5)  1.0   -250.0%
         
Market appreciation 3.3   1.3   153.8%
Ending assets under management$35.1  $31.2   12.5%
 

NM = Not Meaningful

Exhibit 6

Silvercrest Asset Management Group Inc.
Discretionary Assets Under Management
(Unaudited and in billions)
 
Discretionary Assets Under Management:
 
 Three Months Ended
September 30,
  % Change from
September 30,
 
 2024  2023  2023 
Beginning assets under management$21.6  $21.5   0.5%
         
Gross client inflows 0.8   0.4   100.0%
Gross client outflows (1.1)  (0.6)  83.3%
Net client flows (0.3)  (0.2)  50.0%
         
Market appreciation/(depreciation) 1.3   (0.8)  -262.5%
Ending assets under management$22.6  $20.5   10.2%
 


 Nine Months Ended
September 30,
  % Change from
September 30,
 
 2024  2023  2023 
Beginning assets under management$21.9  $20.9   4.8%
         
Gross client inflows 2.1   2.3   -8.7%
Gross client outflows (3.7)  (3.0)  23.3%
Net client flows (1.6)  (0.7)  128.6%
         
Market appreciation 2.3   0.3  NM 
Ending assets under management$22.6  $20.5   10.2%
 

NM = Not Meaningful

Exhibit 7

Silvercrest Asset Management Group Inc.
Non-Discretionary Assets Under Management
(Unaudited and in billions)
 
Non-Discretionary Assets Under Management:
 
 Three Months Ended
September 30,
  % Change from
September 30,
 
 2024  2023  2023 
Beginning assets under management$11.8  $10.4   13.5%
         
Gross client inflows 0.3   0.2   50.0%
Gross client outflows (0.2)  (0.2)  0.0%
Net client flows 0.1       
         
Market appreciation 0.6   0.3   100.0%
Ending assets under management$12.5  $10.7   16.8%
            


 Nine Months Ended
September 30,
  % Change from
September 30,
 
 2024  2023  2023 
Beginning assets under management$11.4  $8.0   42.5%
         
Gross client inflows 0.8   2.2   -63.6%
Gross client outflows (0.7)  (0.5)  40.0%
Net client flows 0.1   1.7   -94.1%
         
Market appreciation 1.0   1.0   0.0%
Ending assets under management$12.5  $10.7   16.8%
            

Exhibit 8

Silvercrest Asset Management Group Inc.
Assets Under Management
(Unaudited and in billions)
 
 Three Months Ended
September 30,
 
 2024  2023 
Total AUM as of June 30,$33.430  $31.924 
Discretionary AUM:     
Total Discretionary AUM as of June 30,$21.646  $21.500 
New client accounts/assets (1) 0.076   0.054 
Closed accounts (2) (0.042)  (0.015)
Net cash inflow/(outflow) (3) (0.308)  (0.286)
Non-discretionary to Discretionary AUM (4) (0.004)  0.008 
Market (depreciation)/appreciation 1.271   (0.799)
Change to Discretionary AUM 0.993   (1.038)
Total Discretionary AUM at September 30, 22.639   20.462 
Change to Non-Discretionary AUM (5) 0.665   0.301 
Total AUM as of September 30,$35.088  $31.187 
        


 Nine Months Ended
September 30,
 
 2024  2023 
Total AUM as of January 1,$33.281  $28.905 
Discretionary AUM:     
Total Discretionary AUM as of January 1,$21.885  $20.851 
New client accounts/assets (1) 0.179   0.151 
Closed accounts (2) (0.516)  (0.100)
Net cash inflow/(outflow) (3) (1.256)  (0.793)
Non-discretionary to Discretionary AUM (4) (0.006)  (0.030)
Market appreciation 2.353   0.383 
Change to Discretionary AUM 0.754   (0.389)
Total Discretionary AUM at September 30, 22.639   20.462 
Change to Non-Discretionary AUM (5) 1.053   2.671 
Total AUM as of September 30,$35.088  $31.187 
        


(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 Performance 1, 2
As of September 30, 2024
(Unaudited)
 
PROPRIETARY EQUITY PERFORMANCE 1, 2ANNUALIZED PERFORMANCE
 INCEPTION 1-YEAR 3-YEAR 5-YEAR 7-YEAR INCEPTION
Large Cap Value Composite4/1/02 31.1 9.6 12.5 12.0 9.9
Russell 1000 Value Index  27.8 9.0 10.7 9.5 8.1
            
Small Cap Value Composite4/1/02 26.7 7.3 10.6 7.8 10.5
Russell 2000 Value Index  25.9 3.8 9.3 6.6 8.0
            
Smid Cap Value Composite10/1/05 27.9 5.1 9.1 7.5 9.6
Russell 2500 Value Index  26.6 6.1 10.0 7.8 7.9
            
Multi Cap Value Composite7/1/02 27.6 5.7 10.2 9.2 9.7
Russell 3000 Value Index  27.6 8.7 10.6 9.3 8.6
            
Equity Income Composite12/1/03 24.8 7.4 8.5 8.8 11.0
Russell 3000 Value Index  27.6 8.7 10.6 9.3 8.7
            
Focused Value Composite9/1/04 23.6 1.9 6.4 6.1 9.4
Russell 3000 Value Index  27.6 8.7 10.6 9.3 8.5
            
Small Cap Opportunity Composite7/1/04 25.9 4.7 12.0 10.8 11.1
Russell 2000 Index  26.8 1.8 9.4 7.4 8.2
            
Small Cap Growth Composite7/1/04 18.9 -5.2 12.0 10.9 10.4
Russell 2000 Growth Index  27.7 -0.4 8.8 7.6 8.5
            
Smid Cap Growth Composite1/1/06 24.3 -5.8 13.0 12.9 10.7
Russell 2500 Growth Index  25.2 -0.7 9.7 9.4 9.5
            


1Returns 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®).
  
2The 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 (SAMG) total AUM in Q3 2024?

Silvercrest's total Assets Under Management (AUM) was $35.1 billion at the end of Q3 2024, representing a 12.5% increase from $31.2 billion in Q3 2023.

How much revenue did SAMG generate in Q3 2024?

Silvercrest generated revenue of $30.4 million in Q3 2024, a 2.4% increase from $29.7 million in Q3 2023.

What was SAMG's net income for Q3 2024?

Silvercrest reported a net income of $3.7 million in Q3 2024, down from $5.4 million in Q3 2023, with net income margin decreasing to 12.3%.

What dividend did SAMG declare for Q3 2024?

Silvercrest's Board of Directors approved a quarterly dividend of $0.20 per share of Class A common stock, payable on December 20, 2024.

Silvercrest Asset Management Group Inc.

NASDAQ:SAMG

SAMG Rankings

SAMG Latest News

SAMG Stock Data

174.79M
7.96M
15.83%
70.79%
0.42%
Asset Management
Investment Advice
Link
United States of America
NEW YORK