Call Start: 08:30 January 1, 0000 9:10 AM ET

Silvercrest Asset Management Group Inc. (NASDAQ:SAMG)

Q1 2022 Earnings Conference Call

May 6, 2022, 8:30 AM ET

Company Participants

Richard R. Hough III – Chairman & Chief Executive Officer

Scott A. Gerard – Chief Financial Officer

Conference Call Participants

Sumeet Mody – Piper Sandler

Sandy Mehta – Evaluate Research Ltd

Christopher Marinac – Janney Montgomery Scott

Christopher Sakai – Singular Research

Operator

Good morning and welcome to the Silvercrest Asset Management Group, Inc. First Quarter 2022 Earnings Conference Call. [Operator Instructions]. Before we begin, let me remind you that today's call contains certain statements may be regarding our future performance and our 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 made. Those factors are disclosed in our filings with the SEC under the caption Risk Factors. For all such factor looking statements, we claim the protections provided by the Litigation Reform Act of 1995. All forward-looking statements made on this call or is made of the date hereof and Silvercrest assumes no obligation to update them. I would like to turn the conference over to Mr. Richard R. Hough III, Chairman and CEO of Silvercrest. Please go ahead, sir.

Richard R. Hough III

Thank you. Good morning and thanks for joining us for the first quarter of 2022 results and call. We concluded this quarter with the celebration of our 20th anniversary in business. We actually opened the first day of the second quarter in 2002. Despite the volatile economic conditions and markets, we're pleased with Silvercrest continued stable progress over time. Our tenure has proven that the firm has the professional resources, ability, and strategy to execute through difficult periods, to build a sustainable and enduring business. Silvercrest discretionary assets under management, our AUM, which drives revenue, increased to $23.8 billion from the first quarter of 2021, which was a year-over-year increase of 8.7%. Primarily due to the volatile equity markets during the first quarter of 2022, Silvercrest discretionary AUM declined by 5.2% from December 31st 2021, which also led to a quarterly decline in revenue and adjusted EBITDA. Along with the continued progress in growing AUM year-over-year, the firm's revenue increased 7.3% from Q1 2021 with a $33.5 million in revenue for the quarter ended March 31st, 2022. The firm's quarterly adjusted EBITDA was approximately $10.3 million or an annualized adjusted EBITDA run rate of $41 million and grew year-over-year by 6.2%.