Silvercrest Asset Management Group Inc. Reports Q1 2025 Results

About this update from Silvercrest Asset Management Group Inc.

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 in itself stronger than in some recent years. Silvercrest’s strategic investments continue to promote growth. The increases during the quarter bode well for future revenue, and we remain highly optimistic about securing more significant organic flows over the course of 2025, as we discussed during our last earnings call. Total AUM did decline during the quarter as a result of highly volatile markets amidst global economic and trade concerns. Discretionary AUM stands at $22.7 billion as of the end of the quarter, which is flat year over year. Total AUM was $35.3 billion. We expect continued market volatility to affect our short-term results. That said, we believe market and economic dislocations present meaningful opportunities for our business. Strategically, we will continue to pursue more initiatives to better highlight Silvercrest in both the institutional and wealth markets. The firm has invested in talent across the firm to drive new growth and successfully transition the business toward the next generation. Our new business pipeline remains robust. Silvercrest will continue to monitor and adjust our interim compensation ratio to match important investments in the business as long as we have compelling opportunities to grow the firm and build our return on invested capital.  We will keep you informed of our plans and the progress of these investments. We also completed a $12.0 million stock repurchase program. We will continue to look for opportunities to return capital to or accrete shareholders, especially as we invest in the business. Our strong balance sheet supports ongoing capital returns as well as our growth initiatives. On May 5, 2025, the Company’s Board of Directors declared a quarterly dividend of $0.20 per share of Class A common stock. The dividend will be paid on or about June 20, 2025 to stockholders of record as of the close of business on June 13, 2025. First Quarter 2025 Highlights The table below presents a comparison of certain GAAP and non-GAAP (“Adjusted”) financial measures and AUM. AUM at $35.3 Billion Silvercrest’s discretionary AUM remained flat at $22.7 billion at March 31, 2025 and 2024. Silvercrest’s total 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. The increase was attributable to market appreciation of $0.8 billion. Silvercrest’s discretionary assets under management decreased by $0.6 billion, or 2.6%, to $22.7 billion at March 31, 2025, from $23.3 billion at December 31, 2024. The decrease was attributable to market depreciation of $0.9 billion partially offset by net client inflows of $0.3 billion. Silvercrest’s total AUM decreased by $1.2 billion, or 3.3%, to $35.3 billion at March 31, 2025, from $36.5 billion at December 31, 2024. The decrease was attributable to market depreciation of $1.4 billion, partially offset by net client inflows of $0.2 billion. First Quarter 2025 vs. First Quarter 2024 Revenue increased by $1.1 million, or 3.7%, to $31.4 million for the three months ended March 31, 2025, from $30.3 million for the three months ended March 31, 2024. This increase was driven by market appreciation during the twelve month period. Total expenses increased by $2.2 million, or 9.0%, to $26.6 million for the three months ended March 31, 2025, from $24.4 million for the three months ended March 31, 2024. 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 three months ended March 31, 2024. The increase was primarily attributable to increases in equity-based compensation of $0.1 million and salaries and benefits of $1.5 million primarily as a result of merit-based increases, partially offset by decreases in the accrual for bonuses of $0.3 million and severance expense of $0.1 million. General and administrative 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 three months ended March 31, 2024. This was primarily attributable to increases in professional fees of $0.3 million, portfolio and systems expense of $0.3 million, recruiting costs of $0.1 million, marketing and advertising costs of $0.1 million, office expenses of $0.1 million and travel and entertainment expenses of $0.1 million. Consolidated net income was $3.9 million for the three months ended March 31, 2025, as compared to consolidated net income of $4.9 million for the same period in the prior year. Net income attributable to Silvercrest was $2.5 million, or $0.26 per basic and diluted share, for the three months ended March 31, 2025. Our Adjusted Net Income 1 was $3.9 million, or $0.29 per adjusted basic share and $0.27 per adjusted diluted share 2 , for the three months ended March 31, 2025. Adjusted EBITDA 1 was $6.5 million, or 20.7% of revenue, for the three months ended March 31, 2025, as compared to $7.5 million, or 24.6% of revenue, for the same period in the prior year. Liquidity and Capital Resources Cash and cash equivalents were $36.3 million at March 31, 2025, compared to $68.6 million at December 31, 2024. As of March 31, 2025, there was nothing 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 $81.0 million at March 31, 2025. We had 9,473,772 shares of Class A common stock outstanding and 4,081,055 shares of Class B common stock outstanding at March 31, 2025. 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. Conference Call The Company will host a conference call on May 9, 2025, 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 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; our expectations with respect to deferred tax assets, adverse economic or market conditions; 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, 2024, 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 212-649-0601 [email protected] Exhibit 1 Exhibit 2 Exhibit 3 Exhibit 4 Exhibit 5 Exhibit 6 Exhibit 7 Exhibit 8 Exhibit 9

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