Silvercrest Asset Management Group Inc. (NASDAQ:SAMG) Q4 2022 Earnings Conference Call March 3, 2023 8:30 AM ET

Company Participants

Richard Hough - Chairman, Chief Executive Officer and President

Scott Gerard - Chief Financial Officer

Conference Call Participants

Sumeet Mody - Piper Sandler

Christopher Marinac - Janney Montgomery Scott

Chris Sakai - Singular Research

Timothy Call - The Capital Management Corporation

Operator

Good morning, and welcome to the Silvercrest Asset Management Group, Inc. Fourth Quarter and Full Year 2022 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. Please also note, this 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 conference over to Mr. Rick Hough, Chairman and CEO of Silvercrest. Please begin.

Richard Hough

Good morning and thanks for joining us for the fourth quarter of 2022 and year-end 2022 results. Silvercrest finished a volatile fourth quarter in calendar year 2022 with total assets in our management of $28.9 billion and discretionary AUM of $20.9 billion. Total AUM declined at 10.5% during the calendar year 2022. Discretionary AUM, which primarily drives our revenue, declined 16.7% during the year 2022.

Revenue consequently fell 15.7% and 6.4% for the fourth quarter and full year 2022, respectively compared with 2021. This decline in revenue significantly affected our adjusted EBITDA and adjusted diluted earnings per share. Adjusted EBITDA declined to $4.4 million and $32 million for the fourth quarter and full year 2022, respectively from 2021. Our adjusted diluted earnings per share also declined to $0.15 and $1.35 for the fourth quarter and full year 2022, respectively. Our adjusted EBITDA margin for the fourth quarter and full year 2022 was 15.6% and 26%, respectively while down from the firm's 33% adjusted EBITDA margin for the year-end of 2021. Silvercrest adjusted EBITDA margin remains historically healthy for the company, especially in light of the declining markets last year.