Silvercrest Asset Management Group(US:SAMG)2025-05-08 21:14Financial Performance - Revenue for the three months ended March 31, 2025, was $31.4 million, an increase from $30.3 million in 2024, representing a growth of 3.7%[153] - Net income for the same period was $3.9 million, down from $4.9 million in 2024, resulting in a net income margin of 12.5%, compared to 16.2% in 2024[153] - Adjusted EBITDA for Q1 2025 was $6.5 million, a decrease from $7.5 million in Q1 2024, leading to an adjusted EBITDA margin of 20.7%[153] - Total revenue increased by $1.1 million, or 3.7%, to $31.4 million for the three months ended March 31, 2025, compared to $30.3 million for the same period in 2024[179] - Adjusted EBITDA decreased by $956,000, or 12.8%, to $6.5 million for the three months ended March 31, 2025, from $7.5 million in 2024[197] - Adjusted EBITDA margin decreased to 20.7% for the three months ended March 31, 2025, down from 24.6% in 2024[197] - Adjusted net income decreased by $824,000, or 17.4%, to $3.9 million for the three months ended March 31, 2025, compared to $4.7 million in 2024[197] - Basic adjusted earnings per share decreased to $0.29 for the three months ended March 31, 2025, down from $0.34 in 2024[197] Assets Under Management (AUM) - Assets under management decreased by 3.3% from $36.5 billion to $35.3 billion as of March 31, 2025[150] - Total assets under management (AUM) increased by $0.8 billion, or 2.3%, to $35.3 billion at March 31, 2025, from $34.5 billion at March 31, 2024[180] - Discretionary AUM decreased by $0.6 billion during the three months ended March 31, 2025, primarily due to market depreciation[181] - The composition of AUM as of March 31, 2025, was 64% discretionary and 36% non-discretionary[181] - Market appreciation contributed $0.8 billion to the increase in AUM, alongside client inflows of $5.4 billion and outflows of $5.4 billion[180] - The average value of assets under management (AUM) for the three months ended March 31, 2025, was approximately $35.9 billion, with a potential revenue impact of $12.6 million from a 10% change in AUM[220] - Total AUM as of March 31, 2025, was $35.3 billion, down from $36.5 billion as of December 31, 2024[220] Expenses - Total compensation expense for Q1 2025 was $18.9 million, up from $17.7 million in 2024, reflecting an increase in cash compensation and benefits[167] - Compensation and benefits expense increased by $1.2 million, or 6.9%, to $18.9 million for the three months ended March 31, 2025, from $17.7 million for the same period in 2024[187] - Total expenses increased by $2.2 million, or 9.0%, to $26.6 million for the three months ended March 31, 2025, compared to $24.4 million for the same period in 2024[186] - General, administrative, and other expenses increased by $1.0 million, or 14.6%, to $7.7 million for the three months ended March 31, 2025, from $6.7 million for the same period in 2024[186] - General and administrative expenses increased by $1.0 million, or 14.6%, to $7.7 million for the three months ended March 31, 2025, compared to $6.7 million for the same period in 2024[188] Income and Taxation - Other income is primarily derived from investment income in private investment funds, which is expected to fluctuate based on market conditions[169] - The effective tax rate will be influenced by the tax receivable agreement with Class B stockholders[171] - The provision for income taxes was $1.2 million for the three months ended March 31, 2025, down from $1.3 million in 2024, with a tax rate of 23.0% in 2025 compared to 20.8% in 2024[191] - Total other income (expense), net decreased by $39,000, or 12.8%, to $265,000 for the three months ended March 31, 2025, from $304,000 in 2024[189] - Interest income decreased by $74,000, or 21.3%, to $273,000 for the three months ended March 31, 2025, compared to $347,000 in 2024[189] Cash Flow and Liquidity - The company expects to meet its cash and liquidity requirements in the next twelve months primarily through cash generated by operations[200] - As of March 31, 2025, cash and cash equivalents decreased to $36.3 million from $68.6 million as of December 31, 2024[205] - For the three months ended March 31, 2025, net cash used in operating activities was $24.7 million, compared to $24.1 million for the same period in 2024[209] - Financing activities used $7.2 million in Q1 2025, an increase from $5.9 million in Q1 2024, with dividends paid to Class A shareholders totaling $1.9 million[212] - The company had $0 outstanding under the term loan as of December 31, 2024, down from $2.7 million in 2023, and was in compliance with the covenants under the credit facility as of March 31, 2025[201] - There were no outstanding borrowings under the term loan or revolving credit facility with City National Bank as of March 31, 2025[214] Distributions and Future Expectations - Distributions to partners were $1.5 million in Q1 2025, down from $3.3 million in Q1 2024, reflecting changes in cash resource allocation[212] - The company anticipates that distributions to principals of Silvercrest L.P. will continue to be a significant use of cash resources, influenced by operating results and dividend policy[213] - The company expects future payments under the tax receivable agreement to aggregate approximately $9.1 million, contingent on tax basis increases from Class B unit purchases[207] - The company recorded an increase in equity-based compensation of $0.1 million for the three months ended March 31, 2025[210]