AssetMark(US:AMK)2022-05-08 16:00Financial Performance - Total revenue for Q1 2022 was $148.3 million, an increase of $29.3 million or 24.6% from $119.0 million in Q1 2021[90] - Net income for Q1 2022 was $22.2 million, or $0.30 per share, compared to a net loss of $8.9 million, or $(0.13) per share, in Q1 2021[90] - Adjusted EBITDA for Q1 2022 was $44.5 million, compared to $34.1 million in Q1 2021, reflecting a margin of 30.0%[103] - Total revenue for the three months ended March 31, 2022, was $148,000, an increase from $134,000 in the same period of 2021, reflecting a growth rate of approximately 10.4%[116] - Net income for the three months ended March 31, 2022, was $22,219, compared to a net loss of $8,916 for the same period in 2021, resulting in a net income margin of 15.0%[124] - Adjusted EBITDA for the three months ended March 31, 2022, was $44,496, representing an adjusted EBITDA margin of 30.0%, up from 28.6% in the same period of 2021[124] - Net income improved by $31.1 million, or 349.2%, from a loss of $8.9 million in Q1 2021 to a profit of $22.2 million in Q1 2022[146] Revenue Breakdown - Asset-based revenue rose by $26.3 million, or 22.7%, from $115.8 million in Q1 2021 to $142.1 million in Q1 2022, driven by increased platform fees and advisory fees[148] - Subscription-based revenue increased by $3.3 million in Q1 2022 due to the acquisition of Voyant[149] - Spread-based revenue decreased by $0.6 million, or 25.0%, from $2.6 million in Q1 2021 to $2.0 million in Q1 2022, primarily due to lower interest income[150] Assets and Liabilities - Platform assets reached $90.8 billion as of March 31, 2022, up 15.1% from $78.9 billion as of March 31, 2021[91] - The regulatory assets under management (AUM) totaled $58.6 billion as of March 31, 2022, up from $50.1 billion as of March 31, 2021[105] - Total current assets increased to $148,949 as of March 31, 2022, from $134,173 as of December 31, 2021, representing an increase of 11.1%[14] - Total assets amounted to $1,402,755 as of March 31, 2022, compared to $1,386,962 as of December 31, 2021, indicating a growth of 1.1%[14] - Total liabilities decreased to $368,008 as of March 31, 2022, from $377,576 as of December 31, 2021, a reduction of 2.5%[14] Operating Expenses - Total operating expenses decreased by $17.6 million, or 13.0%, from $135.3 million in Q1 2021 to $117.6 million in Q1 2022[147] - Employee compensation decreased by $27.0 million, or 40.1%, from $67.3 million in Q1 2021 to $40.3 million in Q1 2022, mainly due to a reduction in share-based compensation[154] - General and operating expenses increased by $4.6 million, or 26.1%, from $17.5 million in Q1 2021 to $22.1 million in Q1 2022, driven by higher events and travel costs[155] Cash Flow and Financing - Cash flow from operating activities increased by $10.8 million from $14.7 million in Q1 2021 to $25.4 million in Q1 2022[168] - Cash and cash equivalents increased to $98,717 as of March 31, 2022, from $76,707 as of December 31, 2021, marking a growth of 28.7%[14] - Cash provided by financing activities increased by $5.9 million from $0.0 million in Q1 2021 to $5.9 million in Q1 2022, primarily due to $122.5 million in proceeds from the term loan[170] Advisers and Growth - Engaged advisers increased to 2,815 as of March 31, 2022, a rise of 7.8% from 2,611 as of March 31, 2021[91] - New producing advisers numbered 195 in Q1 2022, slightly up from 194 in Q1 2021[103] - The number of new producing advisers (NPAs) for the period was 20, indicating continued growth in the adviser base[112] Tax and Compliance - The provision for income taxes increased by $15.3 million, or 188.0%, from a benefit of $8.1 million in Q1 2021 to an expense of $7.2 million in Q1 2022[160] - The effective income tax rate for the Company was 24.4% for the three months ended March 31, 2022, down from 47.7% in the same period of 2021[78] Future Outlook - The company aims to selectively pursue acquisitions to enhance scale and capabilities, having added $9.4 billion in platform assets from acquisitions between 2014 and 2020[99][100] - The company expects cash and liquidity needs to be met by cash generated from ongoing operations and the 2022 Credit Facility over the next twelve months[162]