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Silvercrest Asset Administration Group Inc

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Silvercrest Asset Administration Group Inc. (NASDAQ: SAMG) (the “Company” or “Silvercrest”) newly stated the results of its operations for the quarter finished September 30, 2k19.

Business Update

Silvercrest’s results for the 3rd-quarter of 2k19 reflect a full quarter of the successful integration of our new small cap growth equity strategies and professionals based in Milwaukee. As we expected, the transaction contributed meaningfully to accretively grow Silvercrest’s cash flow, margins, and earnings for each share. Since the 2nd-quarter, the firm’s Adjusted Diluted Earnings for each Share1 have increased to $0.380 for each Adjusted Diluted Share for the 3rd-quarter. Silvercrest’s Adjusted EBITDA1 rose to $8.90M and Silvercrest’s Adjusted EBITDA margin1 has increased to 32.10 percent, both for the 3rd-quarter of 2k19.

Total assets under administration at Silvercrest now stand at $23.50B as of September 30, 2k19, with associated revenue of $27.80M for the quarter. Institutional assets under administration now comprise nearly 30.00 percent of the firm’s discretionary assets under administration.

AUM at $23.5B

Silvercrest’s discretionary assets under administration increased by $0.90B, or 5.40 percent, to $17.50B at September 30, 2k19 from $16.60B at September 30, 2k18.  The incline was attributable to net client inflows of $1.1B partially offset by market depreciation of $0.20B.  Silvercrest’s total AUM increased by $1.80B, or 8.30 percent, to $23.50B at September 30, 2k19 from $21.70B at September 30, 2k18.  The incline was attributable to net client inflows of $1.20B in addition to market appreciation of $0.60B.

Silvercrest’s discretionary assets under administration increased by $1.50B, or 9.40 percent, to $17.50B at September 30, 2k19 from $16.00B at June 30, 2k19.  The incline was attributable to net client inflows of $1.50B.  Silvercrest’s total AUM increased by $1.80B, or 8.30 percent, to $23.50B at September 30, 2k19 from $21.70B at June 30, 2k19.  The incline was attributable to net client inflows of $1.50B and market appreciation of $0.3B.

On July 1, 2k19, Silvercrest attained $1.70B of assets under administration in connection with the acquisition of certain assets of Cortina Asset Administration, LLC (“Cortina”), which is included in net client inflows.

3rd-Quarter 2k19 vs. 3rd-Quarter 2k18

Revenue increased by $2.90M, or 11.70 percent, to $27.80M for the three months finished September 30, 2k19, from $24.90M for the three months finished September 30, 2k18. This incline was driven by net client inflows in discretionary assets under administration, counting $1.70B of assets under administration in connection with the acquisition of certain assets of Cortina (the “Cortina Acquisition”), partially offset by net client outflows during the three months finished September 30, 2k19.  Revenue for the three months finished September 30, 2k19 related to the Cortina Acquisition was about $3.20M.

Total costs increased by $1.80M, or 9.0 percent, to $21.50M for the three months finished September 30, 2k19 from $19.70M for the three months finished September 30, 2k18. Compensation and benefits cost increased by $0.20M, or 1.0 percent, to $15.10M for the three months finished September 30, 2k19 from $14.90M for the three months finished September 30, 2k18. The incline was mainly attributable to a boost in salaries and benefits cost of $0.80M mainly as a result of merit-based inclines and newly hired staff, counting the addition of Cortina staff, partially offset by a decline in the accrual for bonuses of $0.30M and a decline in equity based compensation cost of $0.30M because of a decline in the number of unvested restricted stock units and unvested non-qualified stock options outstanding.  General and administrative costs increased by $1.60M, or 33.80 percent, to $6.40M for the three months finished September 30, 2k19 from $4.80M for the three months finished September 30, 2k18. The incline was mainly attributable to a boost in professional fees of $1.00M because of a boost in acquisition-related legal fees resulting from the Cortina Acquisition, a boost in depreciation and amortization cost of $0.40M related mainly to the amortization of intangible assets related to the Cortina Acquisition and to the renovation of our office space in New York City, a boost in occupancy and related costs of $0.10M and a boost in insurance costs of $0.10M.

Merged net income was $4.80M or 17.30 percent of revenue for the three months finished September 30, 2k19 as contrast to $3.90M or 15.60 percent of revenue for the similar duration in the previous year.  Net income attributable to Silvercrest was $2.70M, or $0.300 for each basic and diluted share for the three months finished September 30, 2k19.   Our Adjusted Net Income1 was $5.40M, or $0.380 for each adjusted basic and diluted share2 for the three months finished September 30, 2k19.

Adjusted EBITDA1 was $8.90M or 32.10 percent of revenue for the three months finished September 30, 2k19 as contrast to $7.00M or 28.30 percent of revenue for the similar duration in the previous year.

Nine Months finished September 30, 2k19 vs. Nine Months finished September 30, 2k18

Revenue increased by $0.50M, or 0.60 percent, to $74.30M for the nine months finished September 30, 2k19, from $73.80M for the nine months finished September 30, 2k18. This incline was driven by net client inflows in discretionary assets under administration, counting $1.70B of assets under administration in connection with the acquisition of certain assets of Cortina, and market appreciation, partially offset by net client outflows.  Revenue for the nine months finished September 30, 2k19 related to the Cortina Acquisition was about $3.20M.

Total costs increased by $1.70M, or 2.90 percent, to $59.60M for the nine months finished September 30, 2k19 from $57.90M for the nine months finished September 30, 2k18. Compensation and benefits cost reduced by $1.30M, or 2.80 percent, to $42.50M for the nine months finished September 30, 2k19 from $43.70M for the nine months finished September 30, 2k18. The decline was mainly attributable to a decline in the accrual for bonuses of $2.70M and a decline in equity based compensation cost of $0.30M because of a decline in the number of unvested restricted stock units and unvested non-qualified stock options outstanding, partially offset by a boost in salaries and benefits cost of $1.70M mainly as a result of merit-based inclines and newly hired staff, counting the addition of Cortina staff.  General and administrative costs increased by $2.90M, or 20.30 percent, to $17.10M for the nine months finished September 30, 2k19 from $14.20M for the nine months finished September 30, 2k18. The incline was mainly attributable to a boost in portfolio and systems costs of $0.40M because of a boost in soft dollar-related research costs, a boost in occupancy and related costs of $0.60M, a boost in professional fees of $1.20M because of a boost in acquisition-related legal fees, a boost in moving and storage costs of $0.30M related to the renovation of our office space in New York City, a boost in depreciation and amortization cost of $0.40M related mainly to the amortization of intangible assets related to the Cortina Acquisition and to the renovation of our office space in New York City, a boost in travel costs of $0.20M and a boost in office cost of $0.10M, partially offset by a decline in recruiting costs of $0.30M.

Merged net income was $11.20M or 15.10 percent of revenue for the nine months finished September 30, 2k19 as contrast to $12.10M or 16.40 percent of revenue for the similar duration in the previous year.  Net income attributable to Silvercrest was $6.20M, or $0.720 for each basic and diluted share for the nine months finished September 30, 2k19.   Our Adjusted Net Income1 was $12.40M, or $0.860 for each adjusted basic and diluted share2 for the nine months finished September 30, 2k19.

Adjusted EBITDA1 was $21.30M or 28.60 percent of revenue for the nine months finished September 30, 2k19 as contrast to $21.10M or 28.50 percent of revenue for the similar duration in the previous year.

Liquidity and Capital Resources

Cash and cash equivalents were $40.80M at September 30, 2k19, contrast to $69.30M at December 31, 2k18.  As of September 30, 2k19, there was $17.10M outstanding under our term loan with City National Bank, and nothing outstanding on our revolving credit facility with City National Bank.

Total Silvercrest Asset Administration Group Inc.’s equity was $63.00M at September 30, 2k19.  We had 9,180,013 shares of Class A common stock outstanding and 5,180,883 shares of Class B common stock outstanding at September 30, 2k19.

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