Hamilton Lane Incorporated (NASDAQ:HLNE) Q1 2023 Earnings Conference Call August 2, 2022 11:00 AM ET

Company Participants

John Oh – Investor Relations Manager

Erik Hirsch – Vice Chairman

Brian Gildea – Head-Investment Solutions

Atul Varma – Chief Financial Officer

Conference Call Participants

Michael Cyprys – Morgan Stanley

Ken Worthington – JPMorgan

Alexander Blostein – Goldman Sachs

Adam Beatty – UBS

Robert Lee – KBW

Finian O’Shea – Wells Fargo Securities

Michael Cyprys – Morgan Stanley

Operator

Good morning. My name is Chris and I will be your conference operator today. At this time I would like to welcome everyone to the Hamilton Lane First Quarter Fiscal 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. A supplemental slide presentation to accompany the prepared remarks can be found on the company's website. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Also as a reminder, please limit yourself to one question and one follow up. Thank you.

At this time, I would like to turn the call over to John Oh, Investor Relations Manager. Mr. Oh, you may begin.

John Oh

Thank you, Chris. Good morning and welcome to the Hamilton Lane Q1 fiscal 2023 earnings call. Today, I will be joined by Erik Hirsch, Vice Chairman; Brian Gildea, Head of Investment Solutions; and Atul Varma, CFO. Before we discuss the quarter's results, we want to remind you that we will be making forward-looking statements based on our current expectations for the business. These statements are subject to risks and uncertainties that may cause the actual results to differ materially. For a discussion of these risks, please review the risk factors included in Hamilton Lane's fiscal 2022 10-K and subsequent reports we filed with the SEC. We will also be referring to non-GAAP measures that we view as important in assessing the performance of our business.

Reconciliation of those non-GAAP measures to GAAP can be found in the earnings presentation materials made available on the Shareholders section of the Hamilton Lane website. Our detailed financial results will be made available on our 10-Q is filed. Please note that nothing on this call represents an offer to sell or a solicitation to purchase interest in any of Hamilton Lane's products.

Beginning with the financial highlights. For the quarter, management and advisory fee revenue grew by 16%, while our fee-related earnings grew by 10% versus the prior year period. This translated into GAAP EPS of $0.91 based on $33.5 million of GAAP net income and non-GAAP EPS of $0.92 based on $49.6 million of adjusted net income. We have also declared a dividend of $0.40 per share this quarter, which sheets us on track for the 40% increase over last fiscal year, equating to the targeted $1.60 per share for fiscal year 2023. The targeted dividend marks the fifth consecutive annual increase since going public in 2017, each over 10% and with an average increase of over 18%.