Silvercrest Asset Management Group Inc. (NASDAQ:SAMG) Q2 2022 Earnings Conference Call July 29, 2022 8:30 AM ET

Company Participants

Richard Hough - Chairman & CEO

Scott Gerard - CFO

Conference Call Participants

Sumeet Mody - Piper Sandler

Christopher Marinac - Janney Montgomery Scott

Sandy Mehta - Evaluate Research

Chris Sakai - Singular Research

Operator

Good morning, and welcome to the Silvercrest Asset Management Group, Inc. Second Quarter 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 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 go ahead.

Richard Hough

Thanks. Good morning, everyone. Welcome to our second quarter of 2022 results and earnings call. Volatile economic and marketing conditions primarily affected Silvercrest's performance in the second quarter of 2022. The firm also experienced net outflows due to substantial client tax payments. The firm's discretionary assets under management which drives our revenue decreased to $20.4 billion as of the end of the second quarter of 2022 from $22.9 billion as of the end of the same period last year in 2021.

The firm's second quarter 2022 revenue decreased year-over-year to $32.2 million and our total AUM now stands at $28.7 billion. The firm's quarterly adjusted EBITDA was approximately $9.2 million and annualized adjusted EBITDA run rate of $36.7 million. Silvercrest's second quarter 2022 adjusted EBITDA margin was 28.5%, a healthy margin in light of declining AUM and associated revenue.

Silvercrest increased relationships during the second quarter and new accounts increased over the first quarter, partially offsetting outflows for client tax payments. Silvercrest's institutional equity new business opportunities increased during the second quarter. Our suite of proprietary equity capabilities continued solid outperformance, which pretends good future growth in the business. Our sub advisory relationships continued to add assets during the second quarter of 2022.