Silvercrest Asset Management Group(US:SAMG)2025-03-06 21:23Financial 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]