Silvercrest Asset Management Group Inc. (NASDAQ: SAMG) (the
“Company” or “Silvercrest”) today reported the results of its
operations for the quarter ended September 30, 2023.
Business Update
Uncertain and more volatile markets had an outsized effect on
assets under management (“AUM”) during the third quarter of 2023,
with Silvercrest concluding the quarter with Total AUM of $31.2
billion and Discretionary AUM of $20.5 billion.
Discretionary AUM, which primarily drives revenue, decreased by
$1.0 billion from the second quarter. Discretionary AUM has
increased by $1.1 billion or 5.7% year-over-year, since the third
quarter of 2022. The firm's Total AUM has increased by $3.8 billion
or 13.9% year-over-year from $27.4 billion to $31.2 billion.
Revenue increased 2.3% year-over-year for the third quarter of
2023 compared to the same period in 2022. Revenue decreased
6.2% for the nine months ended September 30, 2023. Most
business metrics remain down on a year-over-year and year-to-date
basis. Higher expenses during the third quarter this year
negatively impacted Adjusted EBITDA1 and the Adjusted EBITDA
Margin1. The year-to-date decline in revenue affected
Adjusted EBITDA1, the Adjusted EBITDA Margin1and Adjusted Diluted
Earnings per Share1,2, but Silvercrest’s Adjusted EBITDA
Margin1 of 26.9% and 27.3% for the three and nine months ended
September 30, 2023, respectively, remains healthy for the
company.
Silvercrest's pipeline of new business opportunities remain
solid but have weakened since the second quarter. This is the
result of slower decision-making, not lost opportunities. We
attribute this to a changing and uncertain business environment,
higher interest rates, and geopolitical concerns. We are focused on
those new opportunities as well as investments to drive future
growth in the business, including value-added hires.
On October 31, 2023, the Company’s Board of Directors declared a
quarterly dividend of $0.19 per share of Class A common stock. The
dividend will be paid on or about December 15, 2023 to shareholders
of record as of the close of business on December 8, 2023.
Third Quarter 2023
Highlights
- Total AUM of $31.2 billion, inclusive of discretionary AUM of
$20.5 billion and non-discretionary AUM of $10.7 billion at
September 30, 2023.
- Revenue of $29.7 million.
- U.S. Generally Accepted Accounting Principles (“GAAP”)
consolidated net income and net income attributable to Silvercrest
of $5.4 million and $3.2 million, respectively.
- Basic and diluted net income per share of $0.34.
- Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization (“EBITDA”)1 of $8.0 million.
- Adjusted net income1 of $5.1 million.
- Adjusted basic and diluted earnings per share1, 2 of $0.37 and
$0.36, 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) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenue |
|
$ |
29,704 |
|
|
$ |
29,042 |
|
|
$ |
88,868 |
|
|
$ |
94,725 |
|
Income before other income
(expense), net |
|
$ |
6,519 |
|
|
$ |
7,102 |
|
|
$ |
19,788 |
|
|
$ |
34,441 |
|
Net income |
|
$ |
5,380 |
|
|
$ |
5,643 |
|
|
$ |
15,825 |
|
|
$ |
27,512 |
|
Net income margin |
|
|
18.1 |
% |
|
|
19.4 |
% |
|
|
17.8 |
% |
|
|
29.0 |
% |
Net income attributable to
Silvercrest |
|
$ |
3,216 |
|
|
$ |
3,433 |
|
|
$ |
9,505 |
|
|
$ |
16,771 |
|
Net income per basic share |
|
$ |
0.34 |
|
|
$ |
0.35 |
|
|
$ |
1.01 |
|
|
$ |
1.70 |
|
Net income per diluted share |
|
$ |
0.34 |
|
|
$ |
0.35 |
|
|
$ |
1.00 |
|
|
$ |
1.70 |
|
Adjusted EBITDA1 |
|
$ |
8,000 |
|
|
$ |
8,172 |
|
|
$ |
24,297 |
|
|
$ |
27,585 |
|
Adjusted EBITDA Margin1 |
|
|
26.9 |
% |
|
|
28.1 |
% |
|
|
27.3 |
% |
|
|
29.1 |
% |
Adjusted net income1 |
|
$ |
5,136 |
|
|
$ |
5,039 |
|
|
$ |
15,055 |
|
|
$ |
17,489 |
|
Adjusted basic earnings per
share1, 2 |
|
$ |
0.37 |
|
|
$ |
0.35 |
|
|
$ |
1.08 |
|
|
$ |
1.22 |
|
Adjusted diluted earnings per
share1, 2 |
|
$ |
0.36 |
|
|
$ |
0.34 |
|
|
$ |
1.05 |
|
|
$ |
1.19 |
|
Assets under management at period
end (billions) |
|
$ |
31.2 |
|
|
$ |
27.4 |
|
|
$ |
31.2 |
|
|
$ |
27.4 |
|
Average assets under management
(billions)3 |
|
$ |
31.6 |
|
|
$ |
28.1 |
|
|
$ |
30.1 |
|
|
$ |
29.9 |
|
Discretionary assets under
management (billions) |
|
$ |
20.5 |
|
|
$ |
19.4 |
|
|
$ |
20.5 |
|
|
$ |
19.4 |
|
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 nine months ended
September 30, 2023 are based on the number of shares of Class
A common stock and Class B common stock outstanding as of
September 30, 2023. 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 $31.2 Billion
Silvercrest’s discretionary assets under management increased by
$1.1 billion, or 5.7%, to $20.5 billion at September 30, 2023,
from $19.4 billion at September 30, 2022. The increase
was attributable to market appreciation of $1.8 billion partially
offset by net client outflows of $0.7 billion. Silvercrest’s
total AUM increased by $3.8 billion, or 13.9%, to $31.2 billion at
September 30, 2023, from $27.4 billion at September 30,
2022. The increase was attributable to market appreciation of
$2.9 billion and net client inflows of $0.9 billion.
Silvercrest’s discretionary assets under management decreased by
$1.0 billion, or 4.7%, to $20.5 billion at September 30, 2023,
from $21.5 billion at June 30, 2023. The decrease was
attributable to market depreciation of $0.8 billion and net client
outflows of $0.2 billion. Silvercrest’s total AUM decreased
by $0.7 billion, or 2.2%, to $31.2 billion at September 30,
2023, from $31.9 billion at June 30, 2023. The decrease was
attributable to market depreciation of $0.5 billion and net client
outflows of $0.2 billion.
Third Quarter 2023 vs. Third Quarter 2022
Revenue increased by $0.7 million, or 2.3%, to $29.7 million for
the three months ended September 30, 2023, from $29.0 million
for the three months ended September 30, 2022. This increase
was driven by an increase in the average annual management fee
based on the mix of discretionary and non-discretionary assets.
Total expenses increased by $1.2 million, or 5.7%, to $23.2
million for the three months ended September 30, 2023, from
$21.9 million for the three months ended September 30, 2022.
Compensation and benefits expense increased by $0.4 million, or
2.6%, to $16.7 million for the three months ended
September 30, 2023, from $16.3 million for the three months
ended September 30, 2022. The increase was primarily
attributable to an increase in salaries and benefits of $0.3
million primarily as a result of merit-based increases and newly
hired staff and an increase in equity-based compensation of $0.1
million due to the granting of additional RSUs. General and
administrative expenses increased by $0.8 million, or 14.6%, to
$6.5 million for the three months ended September 30, 2023,
from $5.7 million for the three months ended September 30,
2022. This was primarily attributable to an adjustment to the fair
value of contingent consideration related to the Cortina
Acquisition of ($0.3) million recorded during the three months
ended September 30, 2022, increases in portfolio and system
expenses of $0.2 million, travel and entertainment expenses of $0.2
million, occupancy and related costs of $0.1 million and
marketing expenses of 0.1 million, partially offset by a decrease
in professional fees of $0.1 million.
Consolidated net income was $5.4 million or 18.1% of revenue for
the three months ended September 30, 2023, as compared to
consolidated net income of $5.6 million or 19.4% of revenue for the
same period in the prior year. Net income attributable to
Silvercrest was $3.2 million, or $0.34 per basic share and diluted
share for the three months ended September 30, 2023. Our
Adjusted Net Income1 was $5.1 million, or $0.37 per adjusted basic
share and $0.36 per adjusted diluted share2 for the three months
ended September 30, 2023.
Adjusted EBITDA1 was $8.0 million or 26.9% of revenue for the
three months ended September 30, 2023, as compared to $8.2
million or 28.1% of revenue for the same period in the prior
year.
Nine Months Ended September 30, 2023 vs. Nine Months
Ended September 30, 2022
Revenue decreased by $5.8 million, or 6.2%, to $88.9 million for
the nine months ended September 30, 2023, from $94.7 million
for the nine months ended September 30, 2022. This decrease
was driven by a decrease in the average annual management fee based
on the mix of discretionary and non-discretionary assets.
Total expenses increased by $8.8 million, or 14.6%, to $69.1
million for the nine months ended September 30, 2023, from
$60.3 million for the nine months ended September 30, 2022.
Compensation and benefits expense decreased by $2.9 million, or
5.6%, to $50.0 million for the nine months ended September 30,
2023, from $52.9 million for the nine months ended
September 30, 2022. The decrease was primarily attributable to
a decrease in the accrual for bonuses of $4.3 million partially
offset by an increase in salaries and benefits of $1.1 million
primarily as a result of merit-based increases and newly hired
staff an increase in equity-based compensation of $0.3 million due
to the granting of additional RSUs. General and
administrative expenses increased by $11.7 million, or 159.2%, to
$19.1 million for the nine months ended September 30, 2023,
from $7.4 million for the nine months ended September 30,
2022. This was primarily attributable to an adjustment to the fair
value of contingent consideration related to the Cortina
Acquisition of ($10.9) million recorded during the nine months
ended September 30, 2022, increases in portfolio and system
expenses of $0.5 million, professional fees of $0.1 million,
occupancy and related costs of $0.1 million, marketing expenses of
0.1 million and depreciation and amortization expense of $0.1
million, partially offset by a decrease in sub-advisory and
referrals fees of $0.1 million.
Consolidated net income was $15.8 million or 17.8% of revenue
for the nine months ended September 30, 2023, as compared to
consolidated net income of $27.5 million or 29.0% of revenue for
the same period in the prior year. Net income attributable to
Silvercrest was $9.5 million, or $1.01 per basic share and $1.00
per diluted share for the nine months ended September 30,
2023. Our Adjusted Net Income1 was $15.1 million, or $1.08
per adjusted basic share and $1.05 per adjusted diluted share2 for
the nine months ended September 30, 2023.
Adjusted EBITDA1 was $24.3 million or 27.3% of revenue for the
nine months ended September 30, 2023, as compared to $27.6
million or 29.1% of revenue for the same period in the prior
year.
Liquidity and Capital Resources
Cash and cash equivalents were $58.9 million at
September 30, 2023, compared to $77.4 million at December 31,
2022. As of September 30, 2023, there was $3.6 million
outstanding under our term loan with City National Bank and nothing
outstanding on our revolving credit facility with City National
Bank.
Silvercrest Asset Management Group Inc.’s total equity was $83.6
million at September 30, 2023. We had 9,342,259 shares
of Class A common stock outstanding and 4,544,804 shares of Class B
common stock outstanding at September 30, 2023.
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 (“RSUs”) 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 November 3, 2023, 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, 2022, 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
212-649-0601rhough@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 September 30, |
|
|
For the Nine Months Ended September 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
Management and advisory fees |
$ |
28,425 |
|
|
$ |
27,949 |
|
|
$ |
85,445 |
|
|
$ |
91,500 |
|
Performance fees |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
Family office services |
|
1,279 |
|
|
|
1,093 |
|
|
|
3,423 |
|
|
|
3,223 |
|
Total revenue |
|
29,704 |
|
|
|
29,042 |
|
|
|
88,868 |
|
|
|
94,725 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
16,691 |
|
|
|
16,271 |
|
|
|
49,945 |
|
|
|
52,901 |
|
General and administrative |
|
6,494 |
|
|
|
5,669 |
|
|
|
19,135 |
|
|
|
7,383 |
|
Total expenses |
|
23,185 |
|
|
|
21,940 |
|
|
|
69,080 |
|
|
|
60,284 |
|
Income before other
(expense) income, net |
|
6,519 |
|
|
|
7,102 |
|
|
|
19,788 |
|
|
|
34,441 |
|
Other (expense) income,
net |
|
|
|
|
|
|
|
|
|
|
|
Other (expense) income, net |
|
(37 |
) |
|
|
104 |
|
|
|
31 |
|
|
|
119 |
|
Interest income |
|
376 |
|
|
|
8 |
|
|
|
421 |
|
|
|
12 |
|
Unrealized gain (loss) |
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
(3 |
) |
Interest expense |
|
(86 |
) |
|
|
(109 |
) |
|
|
(314 |
) |
|
|
(270 |
) |
Total other (expense) income, net |
|
253 |
|
|
|
1 |
|
|
|
138 |
|
|
|
(142 |
) |
Income before provision
for income taxes |
|
6,772 |
|
|
|
7,103 |
|
|
|
19,926 |
|
|
|
34,299 |
|
Provision for income taxes |
|
(1,392 |
) |
|
|
(1,460 |
) |
|
|
(4,101 |
) |
|
|
(6,787 |
) |
Net income |
|
5,380 |
|
|
|
5,643 |
|
|
|
15,825 |
|
|
|
27,512 |
|
Less: net income attributable to non-controlling interests |
|
(2,164 |
) |
|
|
(2,210 |
) |
|
|
(6,320 |
) |
|
|
(10,741 |
) |
Net income attributable to Silvercrest |
$ |
3,216 |
|
|
$ |
3,433 |
|
|
$ |
9,505 |
|
|
$ |
16,771 |
|
Net income per
share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.34 |
|
|
$ |
0.35 |
|
|
$ |
1.01 |
|
|
$ |
1.70 |
|
Diluted |
$ |
0.34 |
|
|
$ |
0.35 |
|
|
$ |
1.00 |
|
|
$ |
1.70 |
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
9,354,747 |
|
|
|
981,557 |
|
|
|
9,452,576 |
|
|
|
9,856,908 |
|
Diluted |
|
9,378,479 |
|
|
|
9,847,131 |
|
|
|
9,478,090 |
|
|
|
9,884,255 |
|
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 September 30, |
|
|
For the Nine Months Ended September 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Reconciliation of
non-GAAP financial measure: |
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
5,380 |
|
|
$ |
5,643 |
|
|
$ |
15,825 |
|
|
$ |
27,512 |
|
Provision for income taxes |
|
1,392 |
|
|
|
1,460 |
|
|
|
4,101 |
|
|
|
6,787 |
|
Delaware Franchise Tax |
|
50 |
|
|
|
50 |
|
|
|
150 |
|
|
|
150 |
|
Interest expense |
|
86 |
|
|
|
109 |
|
|
|
314 |
|
|
|
270 |
|
Interest income |
|
(376 |
) |
|
|
(8 |
) |
|
|
(421 |
) |
|
|
(12 |
) |
Depreciation and
amortization |
|
996 |
|
|
|
977 |
|
|
|
3,012 |
|
|
|
2,904 |
|
Equity-based compensation |
|
353 |
|
|
|
285 |
|
|
|
1,047 |
|
|
|
789 |
|
Other adjustments (A) |
|
119 |
|
|
|
(344 |
) |
|
|
269 |
|
|
|
(10,815 |
) |
Adjusted
EBITDA |
$ |
8,000 |
|
|
$ |
8,172 |
|
|
$ |
24,297 |
|
|
$ |
27,585 |
|
Adjusted EBITDA
Margin |
|
26.9 |
% |
|
|
28.1 |
% |
|
|
27.3 |
% |
|
|
29.1 |
% |
(A) Other adjustments consist of the following:
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
2023 |
|
2022 |
|
|
2023 |
|
2022 |
|
Acquisition costs (a) |
$ |
— |
|
$ |
5 |
|
|
$ |
5 |
|
$ |
32 |
|
Severance |
|
0 |
|
|
13 |
|
|
|
19 |
|
|
13 |
|
Other (b) |
|
119 |
|
|
(362 |
) |
|
|
245 |
|
|
(10,860 |
) |
Total other
adjustments |
$ |
119 |
|
$ |
(344 |
) |
|
$ |
269 |
|
$ |
(10,815 |
) |
(a) For the nine months ended
September 30, 2023, represents professional fees of $5 related to
the acquisition of Cortina. For the three months ended
September 30, 2022, represents insurance costs of $5 related to the
acquisition of Cortina. For the nine months ended September
30, 2022, represents insurance costs of $22 and professional fees
of $10 related to the acquisition of
Cortina.
(b) 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). For
the three months ended September 30, 2022, represents a fair value
adjustment to the Cortina contingent purchase price consideration
of ($343), an adjustment to the fair value of the tax receivable
agreement of ($93), an ASC 842 rent adjustment of $48 related to
the amortization of property lease incentives and expenses related
to obtaining a business license of $26. For the nine months
ended September 30, 2022, represents a fair value adjustment to the
Cortina contingent purchase price consideration of ($10,943), an
adjustment to the fair value of the tax receivable agreement of
($93), an ASC 842 rent adjustment of $144 related to the
amortization of property lease incentives, expenses related to
obtaining a business license of $26 and expenses related to the
Coronavirus pandemic of $6.
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 September 30, |
|
|
Nine Months Ended September 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Reconciliation of
non-GAAP financial measure: |
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
5,380 |
|
|
$ |
5,643 |
|
|
$ |
15,825 |
|
|
$ |
27,512 |
|
Consolidated GAAP Provision for
income taxes |
|
1,392 |
|
|
|
1,460 |
|
|
|
4,101 |
|
|
|
6,787 |
|
Delaware Franchise Tax |
|
50 |
|
|
|
50 |
|
|
|
150 |
|
|
|
150 |
|
Other adjustments (A) |
|
119 |
|
|
|
(344 |
) |
|
|
269 |
|
|
|
(10,815 |
) |
Adjusted earnings before
provision for income taxes |
|
6,941 |
|
|
|
6,809 |
|
|
|
20,345 |
|
|
|
23,634 |
|
Adjusted provision for income
taxes: |
|
|
|
|
|
|
|
|
|
|
|
Adjusted provision for income
taxes (26% assumed tax rate) |
|
(1,805 |
) |
|
|
(1,770 |
) |
|
|
(5,290 |
) |
|
|
(6,145 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income |
$ |
5,136 |
|
|
$ |
5,039 |
|
|
$ |
15,055 |
|
|
$ |
17,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income per share
(B): |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.34 |
|
|
$ |
0.35 |
|
|
$ |
1.01 |
|
|
$ |
1.70 |
|
Diluted |
$ |
0.34 |
|
|
$ |
0.35 |
|
|
$ |
1.00 |
|
|
$ |
1.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share/unit (B): |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.37 |
|
|
$ |
0.35 |
|
|
$ |
1.08 |
|
|
$ |
1.22 |
|
Diluted |
$ |
0.36 |
|
|
$ |
0.34 |
|
|
$ |
1.05 |
|
|
$ |
1.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares/units
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic Class A shares
outstanding |
|
9,342 |
|
|
|
9,627 |
|
|
|
9,342 |
|
|
|
9,627 |
|
Basic Class B shares/units
outstanding |
|
4,545 |
|
|
|
4,668 |
|
|
|
4,545 |
|
|
|
4,668 |
|
Total basic shares/units
outstanding |
|
13,887 |
|
|
|
14,295 |
|
|
|
13,887 |
|
|
|
14,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Class A shares
outstanding (C) |
|
9,366 |
|
|
|
9,659 |
|
|
|
9,366 |
|
|
|
9,659 |
|
Diluted Class B shares/units
outstanding (D) |
|
4,956 |
|
|
|
5,041 |
|
|
|
4,956 |
|
|
|
5,041 |
|
Total diluted shares/units
outstanding |
|
14,322 |
|
|
|
14,700 |
|
|
|
14,322 |
|
|
|
14,700 |
|
(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 23,732 and 31,974
unvested restricted stock units at September 30, 2023 and 2022,
respectively.
(D) Includes 264,037 and 120,772
unvested restricted stock units at September30, 2023 and 2022,
respectively, and 147,506 and 252,904 unvested non-qualified
options at September 30, 2023 and 2022, respectively.
Exhibit 4
Silvercrest Asset Management Group Inc.Condensed Consolidated
Statements of Financial Condition (Unaudited and in thousands) |
|
September 30, 2023 |
|
|
December 31, 2022 |
|
Assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
58,867 |
|
|
$ |
77,432 |
|
Investments |
|
146 |
|
|
|
146 |
|
Receivables, net |
|
9,818 |
|
|
|
9,118 |
|
Due from Silvercrest Funds |
|
1,178 |
|
|
|
577 |
|
Furniture, equipment and
leasehold improvements, net |
|
7,271 |
|
|
|
5,021 |
|
Goodwill |
|
63,675 |
|
|
|
63,675 |
|
Operating lease assets |
|
20,698 |
|
|
|
23,653 |
|
Finance lease assets |
|
255 |
|
|
|
342 |
|
Intangible assets, net |
|
19,528 |
|
|
|
21,349 |
|
Deferred tax asset—tax receivable
agreement |
|
5,525 |
|
|
|
6,915 |
|
Prepaid expenses and other
assets |
|
4,330 |
|
|
|
4,447 |
|
Total
assets |
$ |
191,291 |
|
|
$ |
212,675 |
|
Liabilities and
Equity |
|
|
|
|
|
Accounts payable and accrued
expenses |
$ |
1,662 |
|
|
$ |
1,704 |
|
Accrued compensation |
|
24,819 |
|
|
|
39,734 |
|
Borrowings under credit
facility |
|
3,624 |
|
|
|
6,337 |
|
Operating lease liabilities |
|
27,452 |
|
|
|
29,552 |
|
Finance lease liabilities |
|
258 |
|
|
|
344 |
|
Deferred tax and other
liabilities |
|
9,585 |
|
|
|
9,172 |
|
Total
liabilities |
|
67,400 |
|
|
|
86,843 |
|
Commitments and
Contingencies (Note 10) |
|
|
|
|
|
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; 10,150,714 and 9,342,259
shares issued and outstanding as of September 30, 2023,
respectively; 10,068,369 and 9,559,587 shares issued and
outstanding as of and December 31, 2022, respectively |
|
101 |
|
|
|
101 |
|
Class B common stock, par value
$0.01, 25,000,000 shares authorized; 4,544,804 and 4,545,380
issued and outstanding, as of September 30, 2023 and December 31,
2022, respectively |
|
44 |
|
|
|
44 |
|
Additional Paid-In Capital |
|
54,478 |
|
|
|
53,982 |
|
Treasury Stock, at cost,
808,455 and 508,782 shares as of September 30, 2023
and December 31, 2022, respectively |
|
(15,057 |
) |
|
|
(9,295 |
) |
Accumulated other comprehensive
income (loss) |
|
(16 |
) |
|
|
— |
|
Retained earnings |
|
44,057 |
|
|
|
39,761 |
|
Total Silvercrest Asset
Management Group Inc.’s equity |
|
83,607 |
|
|
|
84,593 |
|
Non-controlling interests |
|
40,284 |
|
|
|
41,239 |
|
Total
equity |
|
123,891 |
|
|
|
125,832 |
|
Total liabilities and
equity |
$ |
191,291 |
|
|
$ |
212,675 |
|
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, |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
Beginning assets under management |
$ |
31.9 |
|
|
$ |
28.7 |
|
|
11.1 |
% |
|
|
|
|
|
|
|
|
|
Gross client inflows |
|
0.6 |
|
|
|
1.1 |
|
|
-45.5 |
% |
Gross client outflows |
|
(0.8 |
) |
|
|
(1.4 |
) |
|
-42.9 |
% |
Net client flows |
|
(0.2 |
) |
|
|
(0.3 |
) |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
Market depreciation |
|
(0.5 |
) |
|
|
(1.0 |
) |
|
-50.0 |
% |
Ending assets under
management |
$ |
31.2 |
|
|
$ |
27.4 |
|
|
13.9 |
% |
|
Nine Months Ended September 30, |
|
|
% Change from September 30, |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
Beginning assets under management |
$ |
28.9 |
|
|
$ |
32.3 |
|
|
-10.5 |
% |
|
|
|
|
|
|
|
|
|
Gross client inflows |
|
4.5 |
|
|
|
5.5 |
|
|
-18.2 |
% |
Gross client outflows |
|
(3.5 |
) |
|
|
(5.2 |
) |
|
-32.7 |
% |
Net client flows |
|
1.0 |
|
|
|
0.3 |
|
|
233.3 |
% |
|
|
|
|
|
|
|
|
|
Market
appreciation/(depreciation) |
|
1.3 |
|
|
|
(5.2 |
) |
|
-125.0 |
% |
Ending assets under
management |
$ |
31.2 |
|
|
$ |
27.4 |
|
|
13.9 |
% |
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, |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
Beginning assets under management |
$ |
21.5 |
|
|
$ |
20.4 |
|
|
5.4 |
% |
|
|
|
|
|
|
|
|
|
Gross client inflows |
|
0.4 |
|
|
|
0.9 |
|
|
-55.6 |
% |
Gross client outflows |
|
(0.6 |
) |
|
|
(1.3 |
) |
|
-53.8 |
% |
Net client flows |
|
(0.2 |
) |
|
|
(0.4 |
) |
|
-50.0 |
% |
|
|
|
|
|
|
|
|
|
Market depreciation |
|
(0.8 |
) |
|
|
(0.6 |
) |
|
33.3 |
% |
Ending assets under
management |
$ |
20.5 |
|
|
$ |
19.4 |
|
|
5.7 |
% |
|
Nine Months Ended September 30, |
|
|
% Change from September 30, |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
Beginning assets under management |
$ |
20.9 |
|
|
$ |
25.1 |
|
|
-16.7 |
% |
|
|
|
|
|
|
|
|
|
Gross client inflows |
|
2.3 |
|
|
|
3.5 |
|
|
-34.3 |
% |
Gross client outflows |
|
(3.0 |
) |
|
|
(4.9 |
) |
|
-38.8 |
% |
Net client flows |
|
(0.7 |
) |
|
|
(1.4 |
) |
|
-50.0 |
% |
|
|
|
|
|
|
|
|
|
Market
appreciation/(depreciation) |
|
0.3 |
|
|
|
(4.3 |
) |
|
-107.0 |
% |
Ending assets under
management |
$ |
20.5 |
|
|
$ |
19.4 |
|
|
5.7 |
% |
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, |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
Beginning assets under management |
$ |
10.4 |
|
|
$ |
8.3 |
|
|
25.3 |
% |
|
|
|
|
|
|
|
|
|
Gross client inflows |
|
0.2 |
|
|
|
0.2 |
|
|
0.0 |
% |
Gross client outflows |
|
(0.2 |
) |
|
|
(0.1 |
) |
|
100.0 |
% |
Net client flows |
|
— |
|
|
|
0.1 |
|
|
-100.0 |
% |
|
|
|
|
|
|
|
|
|
Market
appreciation/(depreciation) |
|
0.3 |
|
|
|
(0.4 |
) |
|
-175.0 |
% |
Ending assets under
management |
$ |
10.7 |
|
|
$ |
8.0 |
|
|
33.8 |
% |
|
Nine Months Ended September 30, |
|
|
% Change from September 30, |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
Beginning assets under management |
$ |
8.0 |
|
|
$ |
7.2 |
|
|
11.1 |
% |
|
|
|
|
|
|
|
|
|
Gross client inflows |
|
2.2 |
|
|
|
2.0 |
|
|
10.0 |
% |
Gross client outflows |
|
(0.5 |
) |
|
|
(0.3 |
) |
|
66.7 |
% |
Net client flows |
|
1.7 |
|
|
|
1.7 |
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
Market
appreciation/(depreciation) |
|
1.0 |
|
|
|
(0.9 |
) |
|
-211.1 |
% |
Ending assets under
management |
$ |
10.7 |
|
|
$ |
8.0 |
|
|
33.8 |
% |
Exhibit 8
Silvercrest Asset Management Group Inc.Assets Under Management
(Unaudited and in billions) |
|
Three Months Ended September 30, |
|
|
2023 |
|
|
2022 |
|
Total AUM as of June 30, |
$ |
31.924 |
|
|
$ |
28.686 |
|
Discretionary AUM: |
|
|
|
|
|
Total Discretionary AUM as of
June 30, |
$ |
21.500 |
|
|
$ |
20.426 |
|
New client accounts/assets
(1) |
|
0.054 |
|
|
|
0.073 |
|
Closed accounts (2) |
|
(0.015 |
) |
|
|
(0.010 |
) |
Net cash inflow/(outflow)
(3) |
|
(0.286 |
) |
|
|
(0.507 |
) |
Non-discretionary to
Discretionary AUM (4) |
|
0.008 |
|
|
|
(0.001 |
) |
Market
appreciation/(depreciation) |
|
(0.799 |
) |
|
|
(0.586 |
) |
Change to Discretionary
AUM |
|
(1.038 |
) |
|
|
(1.031 |
) |
Total Discretionary AUM at
September 30, |
|
20.462 |
|
|
|
19.395 |
|
Change to Non-Discretionary AUM
(5) |
|
0.301 |
|
|
|
(0.252 |
) |
Total AUM as of September
30, |
$ |
31.187 |
|
|
$ |
27.403 |
|
|
Nine Months Ended September 30, |
|
|
2023 |
|
|
2022 |
|
Total AUM as of January 1, |
$ |
28.905 |
|
|
$ |
32.320 |
|
Discretionary AUM: |
|
|
|
|
|
Total Discretionary AUM as of
January 1, |
$ |
20.851 |
|
|
$ |
25.073 |
|
New client accounts/assets
(1) |
|
0.151 |
|
|
|
0.257 |
|
Closed accounts (2) |
|
(0.100 |
) |
|
|
(0.039 |
) |
Net cash inflow/(outflow)
(3) |
|
(0.793 |
) |
|
|
(1.633 |
) |
Non-discretionary to
Discretionary AUM (4) |
|
(0.030 |
) |
|
|
(0.004 |
) |
Market
(depreciation)/appreciation |
|
0.383 |
|
|
|
(4.259 |
) |
Change to Discretionary
AUM |
|
(0.389 |
) |
|
|
(5.678 |
) |
Total Discretionary AUM at
September 30, |
|
20.462 |
|
|
|
19.395 |
|
Change to Non-Discretionary AUM
(5) |
|
2.671 |
|
|
|
0.761 |
|
Total AUM as of September
30, |
$ |
31.187 |
|
|
$ |
27.403 |
|
(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, 2As of September 30, 2023
(Unaudited) |
PROPRIETARY EQUITY
PERFORMANCE 1, 2 |
ANNUALIZED PERFORMANCE |
|
INCEPTION |
|
1-YEAR |
|
3-YEAR |
|
5-YEAR |
|
7-YEAR |
|
INCEPTION |
Large Cap Value
Composite |
4/1/02 |
|
12.7 |
|
9.7 |
|
7.6 |
|
10.5 |
|
9.0 |
Russell 1000 Value Index |
|
|
14.4 |
|
11.1 |
|
6.2 |
|
7.9 |
|
7.2 |
|
|
|
|
|
|
|
|
|
|
|
|
Small Cap Value
Composite |
4/1/02 |
|
9.4 |
|
13.8 |
|
4.6 |
|
7.2 |
|
9.8 |
Russell 2000 Value Index |
|
|
7.8 |
|
13.3 |
|
2.6 |
|
5.9 |
|
7.2 |
|
|
|
|
|
|
|
|
|
|
|
|
Smid Cap Value
Composite |
10/1/05 |
|
7.3 |
|
10.7 |
|
3.3 |
|
7.0 |
|
8.7 |
Russell 2500 Value Index |
|
|
11.3 |
|
13.3 |
|
4.0 |
|
6.5 |
|
7.0 |
|
|
|
|
|
|
|
|
|
|
|
|
Multi Cap Value
Composite |
7/1/02 |
|
9.5 |
|
8.2 |
|
5.2 |
|
8.3 |
|
9.0 |
Russell 3000 Value Index |
|
|
14.1 |
|
11.2 |
|
6.0 |
|
7.8 |
|
7.7 |
|
|
|
|
|
|
|
|
|
|
|
|
Equity Income
Composite |
12/1/03 |
|
9.0 |
|
9.3 |
|
4.8 |
|
8.0 |
|
10.4 |
Russell 3000 Value Index |
|
|
14.1 |
|
11.2 |
|
6.0 |
|
7.8 |
|
7.8 |
|
|
|
|
|
|
|
|
|
|
|
|
Focused Value
Composite |
9/1/04 |
|
3.6 |
|
3.3 |
|
1.4 |
|
5.2 |
|
8.7 |
Russell 3000 Value Index |
|
|
14.1 |
|
11.2 |
|
6.0 |
|
7.8 |
|
7.6 |
|
|
|
|
|
|
|
|
|
|
|
|
Small Cap Opportunity
Composite |
7/1/04 |
|
11.0 |
|
10.6 |
|
5.3 |
|
10.0 |
|
10.4 |
Russell 2000 Index |
|
|
8.9 |
|
7.2 |
|
2.4 |
|
6.6 |
|
7.3 |
|
|
|
|
|
|
|
|
|
|
|
|
Small Cap Growth
Composite |
7/1/04 |
|
3.3 |
|
4.9 |
|
5.3 |
|
11.3 |
|
9.9 |
Russell 2000 Growth Index |
|
|
9.6 |
|
1.1 |
|
1.6 |
|
6.8 |
|
7.6 |
|
|
|
|
|
|
|
|
|
|
|
|
Smid Cap Growth
Composite |
1/1/06 |
|
5.9 |
|
0.3 |
|
7.4 |
|
12.4 |
|
9.9 |
Russell 2500 Growth Index |
|
|
10.6 |
|
1.0 |
|
4.0 |
|
8.8 |
|
8.6 |
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. |
Silvercrest Asset Manage... (NASDAQ:SAMG)
Gráfico Histórico do Ativo
De Ago 2024 até Set 2024
Silvercrest Asset Manage... (NASDAQ:SAMG)
Gráfico Histórico do Ativo
De Set 2023 até Set 2024