Silvercrest Asset Management Group Inc. (NASDAQ:SAMG) Q2 2023 Earnings Conference Call July 31, 2023 8:30 AM ET

Company Participants

Rick Hough - Chairman and Chief Executive Officer

Scott Gerard - Chief Financial Officer

Conference Call Participants

Sumeet Mody - Piper Sandler

Sandy Mehta - Evaluate Research

Christopher Marinac - Janney Montgomery Scott

Chris Sakai - Singular Research

Operator

Good morning, and welcome to the Silvercrest Asset Management Group Inc. Q2 2023 Earnings Conference Call. All participants will in listen-only mode. [Operator Instructions] After today’s presentation there will be an opportunity to ask question Please also note today’s event is being recorded.

Before we begin, let me remind you that during today’s call, certain statements made regarding our future performance are forward-looking statements. They are based on current expectations and projections, which are subject to a number of risks and uncertainties, and many factors, could cause actual results to differ materially from the statements that are made. Those factors are disclosed in our filings with the SEC under the caption Risk Factors. For all such forward-looking statements, we claim the protections provided by the Litigation Reform Act of 1995. All forward-looking statements made on this call are made as of the date hereof, and Silvercrest assumes no obligation to update them.

I would now like to turn the floor over to Rick Hough, Chairman and CEO of Silvercrest. Please go ahead.

Rick Hough

Good morning and thank you. Markets continued their recovery during the second quarter of 2023, with Silvercrest concluding the quarter with total assets under management of $31.9 billion and discretionary AUM of $21.5 billion. Discretionary AUM, which primarily drives our revenue, increased $0.2 billion over the first quarter and has increased $0.6 billion or 2.9% for the first half of 2023. Discretionary AUM has increased $1.1 billion or 5.4% year-over-year since the second quarter of 2022. The firm’s total AUM increased by $3.2 billion or 11.2% over the second quarter of 2022 from $28.7 billion to $31.9 billion. While the business is improving, most of our metrics remain down on a year-over-year basis as markets recover. Revenue, for example, fell 9.9% for the first half of 2023 compared with 2022. This decline in revenue affected adjusted EBITDA, adjusted diluted earnings per share.

Silvercrest adjusted EBITDA margin of 27.5% for the first half of 2023 remains historically healthy for the company and represents a 5.8% increase over the year-end of 2022 adjusted EBITDA margin. Silvercrest’s pipeline of new business opportunities remains robust. We are focused on those opportunities as well as investments to drive future growth in the business.