Silvercrest Asset Management Group (SAMG) Q1 2025 Earnings Call May 09, 2025 08:30 AM ET Speaker0 Good morning, and welcome to the Silvercrest Asset Management Group, Inc. Q1 twenty twenty five Earnings Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. Before we begin, let me remind you that during today's call, certain statements made regarding our future performance are forward ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission file number: 001-35733 Silvercrest Asset Management Group Inc. (Exact name of registrant as specified in its charter) Securities registered purs ...

New York, NY – May 8, 2025 - Silvercrest Asset Management Group Inc. (NASDAQ: SAMG) (the "Company" or "Silvercrest") today reported the results of its operations for the quarter ended March 31, 2025. Business Update Silvercrest experienced strong new client organic flows of $0.4 billion during the first quarter of 2025. The new assets under management ("AUM") follow on the significant new client flows of $1.4 billion in the 4th quarter of 2024. Our first quarter's new client account flows was in itself stro ...

NEW YORK, May 08, 2025 (GLOBE NEWSWIRE) -- Silvercrest Asset Management Group Inc. (NASDAQ: SAMG) (the “Company” or “Silvercrest”) today reported the results of its operations for the quarter ended March 31, 2025. Business Update Silvercrest experienced strong new client organic flows of $0.4 billion during the first quarter of 2025. The new assets under management (“AUM”) follow on the significant new client flows of $1.4 billion in the 4th quarter of 2024. Our first quarter’s new client account flows was ...

NEW YORK, May 02, 2025 (GLOBE NEWSWIRE) -- Silvercrest Asset Management Group Inc. (NASDAQ: SAMG) announced today it will host a teleconference at 8:30 am Eastern Time on May 9, 2025, to discuss the company’s financial results for the first quarter ended March 31, 2025. A news release containing the results will be issued before the open of the U.S. equity markets and will be available on http://ir.silvercrestgroup.com/.Chairman, Chief Executive Officer and President Richard R. Hough III and Chief Financial ...

Core Insights - Silvercrest Asset Management Group Inc. has appointed J. Allen Gray to its Board of Directors, effective immediately [1] - Mr. Gray has nearly 17 years of experience at Silvercrest, significantly contributing to the growth of the institutional asset management business, which now represents approximately 30% of the firm's discretionary assets under management [2] - The Chairman and CEO of Silvercrest, Richard Hough, expressed confidence that Mr. Gray's strategic insights will enhance the firm's growth in institutional asset management and global initiatives [3] Company Overview - Silvercrest was founded in April 2002 as an independent, employee-owned registered investment adviser, with a reported assets under management of $36.5 billion as of December 31, 2024 [5] - The firm operates offices in New York, Boston, Virginia, New Jersey, California, and Wisconsin, providing traditional and alternative investment advisory and family office services to wealthy families and select institutional investors [5] J. Allen Gray's Background - J. Allen Gray is a Managing Director and Head of Institutional business at Silvercrest, previously serving as Managing Partner at Osprey Partners Investment Management and as President of the Osprey Concentrated Large Cap Value Equity Fund [4] - His career includes roles at Radnor Capital Management and Wheat, First Securities, where he was involved in sales, marketing, and client relations [4]

Financial Data and Key Metrics Changes - Revenue for the year increased by 5.3% to $123.7 million from $117.4 million, with Q4 revenue up 12% over Q4 2023 to $32 million from $28.5 million [10][17] - Total AUM as of year-end 2024 reached $36.5 billion, up 9.6% from $33.3 billion at year-end 2023 [9][16] - Discretionary AUM rose 6.4% to $23.3 billion from $21.9 billion [9][16] - Reported net income attributable to Silvercrest for 2024 was $9.5 million or $1 per basic and diluted Class A share [21] Business Line Data and Key Metrics Changes - The firm garnered $1.4 billion in Q4 and $1.5 billion during 2024 in new client assets under management inflows, marking the best year for new organic client inflows since at least 2015 [8] - The fourth quarter was bolstered by a successful seed investment in the global value equity strategy of $1.3 billion [8] Market Data and Key Metrics Changes - The firm has seen a robust pipeline, increasing from $1.2 billion at the end of last year to $1.6 billion [27] - OCIO opportunities have increased, with OCIO now standing at $1.6 billion [29] Company Strategy and Development Direction - Silvercrest is focusing on building its global value equity strategy and expanding its presence in international markets, including Singapore and Australia [10][11] - The firm is investing in talent and infrastructure to drive growth and transition the business toward the next generation [11][14] - The company aims to secure significant new organic flows and enhance its market position in both institutional and wealth markets [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about securing significant new organic flows in 2025, driven by a robust pipeline and strong performance in the global value equity strategy [12][40] - The management acknowledged the challenges posed by market volatility but noted that it has led to increased inquiries and business opportunities [66][69] Other Important Information - Total assets were approximately $194.4 million as of the end of 2024, compared to $199.6 million as of the end of 2023 [22] - The firm has no borrowings as of the end of 2024, indicating a strong balance sheet [22] Q&A Session Summary Question: Can you comment on the pipeline amount and OCIO assets? - The pipeline increased to $1.6 billion, including significant OCIO mandates, which are expected to grow in 2025 [27][29] Question: What are the expected levels for compensation and G&A expenses? - Management expects expenses to remain at current levels for the foreseeable future, with potential for productivity gains in the medium term [45][46] Question: What are the thoughts on operating leverage and future profitability? - Management believes that with steady state operations, EBITDA margins could return to the high twenties, but investments in personnel are necessary for growth [55][56] Question: How is geopolitical risk affecting business opportunities? - Increased geopolitical volatility has driven interest and inquiries, benefiting the firm as clients seek to secure their assets [66][69] Question: What is the company's approach to dividends and buybacks? - The company aims to maintain a high dividend payout and is considering buybacks as a good use of capital, while also exploring potential M&A opportunities [104][110]

Silvercrest Asset Management Group Inc. (NASDAQ:SAMG) Q4 2024 Earnings Conference Call March 7, 2025 8:30 PM ET Company Participants Richard Hough - Chairman, President, Chief Executive Officer Scott Gerard - Chief Financial Officer Conference Call Participants Sandy Mehta - Evaluate Research Christopher Marinac - Janney Montgomery Scott Chris Sakai - Singular Research Peter Katz - Herold & Lantern Investments Operator Good morning, and welcome to the Silvercrest Asset Management Group Inc. Q4 and Full Year ...

Financial Performance - Revenue for the year ended December 31, 2024, was $123.651 million, compared to $117.410 million in 2023, reflecting a year-over-year increase of 5.3%[222] - Net income for 2024 was $15.709 million, slightly up from $15.183 million in 2023, resulting in a net income margin of 12.7%[222] - Adjusted EBITDA for 2024 was $26.101 million, with an adjusted EBITDA margin of 21.1%, down from 22.9% in 2023[222] - Total revenue increased by $6.2 million, or 5.3%, to $123.7 million for the year ended December 31, 2024, compared to $117.4 million for the year ended December 31, 2023[252] - Adjusted Net Income for 2024 was $15,782,000, compared to $16,104,000 in 2023, reflecting a decline of 2.0%[280] - Basic Adjusted Earnings Per Share for 2024 was $1.15, slightly down from $1.16 in 2023[280] Assets Under Management - Assets under management increased by 9.6% from $33.3 billion to $36.5 billion during the twelve months ended December 31, 2024[218] - Average assets under management for discretionary managed accounts increased to $22.2 billion in 2024 from $21.0 billion in 2023[225] - Discretionary assets under management increased by $1.4 billion, while non-discretionary assets increased by $1.8 billion during the same period[253] - The composition of assets under management as of December 31, 2024, was 64% discretionary and 36% non-discretionary[253] - Total discretionary assets under management at December 31, 2024, are projected to be $23.3 billion, up from $21.9 billion at December 31, 2023[258] - The average AUM for the year ended December 31, 2024, was approximately $34.9 billion, with a potential revenue change of approximately $12.4 million for a 10% increase or decrease in AUM[313] Revenue Sources - Discretionary managed accounts accounted for $115.2 million in revenue, representing 97% of management and advisory fees revenue for 2024[225] - Management and advisory fees increased by $6.5 million, or 5.8%, to $119.3 million for the year ended December 31, 2024[244] - Private funds generated $4.1 million in revenue for both 2024 and 2023, maintaining a 3% share of management and advisory fees revenue[226] - Family office services revenue decreased by $0.3 million, or 6.1%, to $4.3 million for the year ended December 31, 2024, from $4.6 million for the year ended December 31, 2023[254] - Proprietary fund management revenue remained flat at $2.9 million for the years ended December 31, 2024, and 2023[253] Expenses - Total compensation expense for 2024 was $76.663 million, an increase from $72.619 million in 2023[235] - Cash compensation and benefits for 2024 were $74.747 million, up from $70.992 million in 2023[235] - Total expenses rose by $7.4 million, or 7.5%, to $106.0 million for the year ended December 31, 2024, driven by a $4.0 million increase in compensation and benefits[262] - General and administrative expenses increased by $3.4 million, or 13.1%, to $29.4 million for the year ended December 31, 2024[264] Cash Flow and Financing - Cash flow from operations is expected to meet liquidity and capital requirements for the next twelve months[281] - Net cash provided by operating activities increased from $20,975 thousand in 2023 to $21,590 thousand in 2024, an increase of about 2.9%[290] - Net cash used in investing activities decreased from $3,878 thousand in 2023 to $1,700 thousand in 2024, a reduction of approximately 56.1%[290] - Net cash used in financing activities decreased from $24,216 thousand in 2023 to $21,549 thousand in 2024, a decrease of about 11.0%[290] - The company had $0 outstanding under the term loan as of December 31, 2024, compared to $2.7 million in 2023[282] Tax and Regulatory Matters - The provision for income taxes was $4.6 million for the year ended December 31, 2024, with a tax rate of 22.5%[273] - The company entered into a tax receivable agreement requiring it to pay 85% of cash savings realized from tax benefits[316] - The actual amount and timing of payments under the tax receivable agreement will vary based on several factors, including the timing of sales or exchanges by limited partnership unit holders[318] - The company recognizes the benefit of uncertain tax positions only when it is more likely than not to be sustained upon examination by taxing authorities[320] Market Impact - Market appreciation contributed to a 10.4% increase in total assets under management for the year ended December 31, 2024[253] - The majority of the company's revenues are based on assets under management, which are significantly impacted by market appreciation or depreciation[310]

Assets Under Management (AUM) - Silvercrest reported total assets under management (AUM) of $36.5 billion as of December 31, 2024, a 9.6% increase from $33.3 billion at year-end 2023[3]. - Total assets under management (AUM) at the end of Q4 2024 reached $36.5 billion, up from $33.3 billion at the end of Q4 2023, reflecting a 9.6% increase[45]. - Total Assets Under Management (AUM) increased to $36.455 billion as of December 31, 2024, up from $33.281 billion a year earlier, representing a growth of 6.5%[54]. - Discretionary AUM increased by 6.4% to $23.3 billion at year-end 2024, up from $21.9 billion at year-end 2023[11]. - Discretionary AUM at the end of Q4 2024 was $23.3 billion, up from $21.9 billion in Q4 2023, marking a 6.4% increase[47]. - Discretionary AUM reached $23.319 billion at December 31, 2024, compared to $21.885 billion at the same date in 2023, marking an increase of 6.5%[54]. - Non-discretionary AUM increased to $13.2 billion in Q4 2024 from $11.4 billion in Q4 2023, representing a 15.8% growth[50]. Financial Performance - Revenue for Q4 2024 increased by 12.0% to $32.0 million, compared to $28.5 million in Q4 2023, while total revenue for the year rose by 5.3% to $123.7 million from $117.4 million[13][17]. - Adjusted EBITDA for Q4 2024 was $5.1 million, representing 15.9% of revenue, compared to $2.6 million or 9.0% of revenue in Q4 2023[16]. - Adjusted EBITDA for the year ended December 31, 2024, was $26,101,000, compared to $26,878,000 in 2023, resulting in an Adjusted EBITDA margin of 21.1%[37]. - Consolidated net income for Q4 2024 was $2.7 million, compared to a net loss of $0.6 million in the same period last year, with net income attributable to Silvercrest at $1.6 million[15]. - Adjusted net income for the year was $15.8 million, or $1.15 per adjusted basic share, compared to $16.1 million in the previous year[19]. - The company reported a net income of $2,684,000 for the three months ended December 31, 2024, compared to a net loss of $642,000 in the same period of 2023[34]. - Adjusted net income for Q4 2024 was $2,861 million, compared to $1,049 million in Q4 2023, representing a significant increase of 172.5%[40]. - Basic and diluted net income per share for the year ended December 31, 2024, was $1.00, compared to $0.96 in 2023, indicating a 4.2% increase[31]. Client Inflows and Growth - The firm achieved $1.4 billion in new client AUM inflows during Q4 2024, contributing to a total of $1.5 billion for the entire year, marking the best year for new organic client inflows since 2015[2]. - Gross client inflows for Q4 2024 were $2.2 billion, a substantial increase of 144.4% compared to $0.9 billion in Q4 2023[45]. - New client accounts/assets for the twelve months ended December 31, 2024, were $1.549 billion, significantly higher than $0.339 billion in the previous year[54]. - The company anticipates future growth in assets under management and client retention, despite potential risks and uncertainties[27]. Expenses and Liabilities - Total expenses for the year increased by 7.5% to $106.0 million, driven by a 5.6% rise in compensation and benefits expenses[18]. - Total liabilities decreased to $74,739 million in Q4 2024 from $77,764 million in Q4 2023, indicating a reduction of 4.1%[43]. - The company’s cash and cash equivalents were $68,611 million as of December 31, 2024, slightly down from $70,301 million in 2023[43]. - Cash and cash equivalents stood at $68.6 million as of December 31, 2024, down from $70.3 million at the end of 2023[21]. Market and Strategic Initiatives - The firm plans to pursue more initiatives in Europe and has hired business development leads in Atlanta and Singapore to enhance market presence[4]. - Silvercrest continues to focus on maintaining its fee structure and enhancing its investment strategies to drive profitability[27]. - Market appreciation for AUM in Q4 2024 was $0.5 billion, a decrease of 80% compared to $2.5 billion in Q4 2023[45]. - Market appreciation for the twelve months was $2.144 billion, slightly lower than $2.201 billion in the previous year[54].