SAMG - Earnings call transcript Q4 2019 | Silvercrest Asset Management Group Inc.

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Operator

Good morning and welcome to Silvercrest Asset Management Group, Inc. Q4 and Full-Year 2019 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. is event this note, being recorded. Please

Reform begin, call, Silvercrest we Safe provisions Securities let pursuant me today's during Harbor Litigation Private the that, you of of will the XXXX. remind to Before Act make statements forward-looking

statements other are future the including Silvercrest's statements historical statements, predictions estimates to statements well as These are as events All forward-looking about projections expectations, of developments or beliefs, relating future plans, and fact, on based current future statements. the than and only and performance regarding management's events. current forward-looking projections expectations future

forward-looking number of statements And could uncertainties. These differ performance subject are factors actual made. cause statements to to the activity, of risks that from important are a or and level results, achievements there materially

the ended and including Silvercrest fluctuations factors Form XXXX, results, annual in failure factors adverse the in and for Risk quarterly implementation SEC, company's these with the losses, net those filed the XX, company's focusing the are strategy, year listed the disclosed caption of of report growth XX-K of the maintain brand Among on Factors entitled December with SEC. effects and factors filings under incurrence management to other develop on annual in

or identified of In likely, expressions. expect, negative words anticipate, predict, these some may, project, similar by plan, words other will, can cases, plural these such statements the be goal, estimate, statements, and forward-looking as believe, could, continue,

update assumes Silvercrest's predictions the to are current of All projections on made and these obligation call Silvercrest forward-looking are statements no hereof, future statements this forward-looking based and date forward-looking on These events. expectations about made statements. its as

Rick the and turn to Please of Chairman like Hough, go CEO ahead. now conference over Silvercrest. would to I

Richard Hough III

grew and by recovery in under which driven firm's And fourth lows to the the $XX.X fourth Thank markets of to new from year, of client culminated management market business welcome year-end billion $XX.X represents Silvercrest quarter at to strong equity management. the XXXX of discretionary billion both our new you Total for assets the of and XXXX. as a date, end assets acquisition very of the firm's the of results under This firm, results. of highs quarter much. comprised of the largest These accounts.

during We new had near-term XXXX. and fourth OCIO, quarter experienced good Chief of account Investment announced half growth latter XXXX. known during Officer the otherwise Silvercrest's expectation We initiative, during Outsourced success for the our as of

and doubled And our the first strength third which during won XXXX. quarter, growth during continued of during OCIO quarter We to business client of OCIO the million that $XXX in quarter. the fourth client that Silvercrest's into AUM new account half drove

Silvercrest's capability OCIO of of from business growing proud internally-built scratch. that We're and

track success OCIO are and during strong, Our the team record and XXXX. our in expect business is pipeline performance we continued growing, new business

to proven firms. equity despite a net investment attracting industry-wide trend peer asset the its of continue vehicles has flows capabilities passive the Silvercrest struggles positive into and ability high quality toward

for Each attracting Silvercrest business. total show management strategies now vital which has and of strong five-year AUM. Silvercrest records, new asset billion $X institutional in three are track equity institutional

and to We now cap excited to marketing bring have capabilities institutional small fully teams growth integrated market. our are our

growth management invested support talent. portfolio firm's business high to Silvercrest worth our new of the diversify past also professionals over to year-and-a-half in has net and organic recently the

continue of record track to so. a have talent will growing new We internally do and

our Regardless and believe firms Silvercrest organic to deploy capabilities expensive. for a environment Silvercrest active brand remains capital will The opportunistically of makes to We technological businesses our and professionals. and premier select management seek environment, the wealth current effectively for M&A partner culture, complement growth. innovation

questions you to we'll then financials after and take the over that. turn I'll Scott,

Scott Gerard

Thanks, Rick.

date and total was earnings AUM, $XX.X of was the same as discretionary for December $XX.X quarter, as our XX in XXXX, release disclosed billion. fourth billion as of So, the AUM

Revenue and quarter was million was for quarter for $X.X million. consolidated the income net reported the $XX.X

XXXX, into last of further a year. $X.X XX% was represented and approximately driven primarily This million, Cortina, the the approximately increase place $XX.X increase July approximately period XXXX. December was the over by for that of revenue XX, $XX.X which attributable was Revenue fourth acquisition in same million. for of Cortina million quarter quarter took ended the Looking XXXX. revenue of to

increase of for hired offset approximately representing increases of attributable addition compensation to partially for $XX.X by expenses accrual benefits and expenses Compensation expense Expenses same of last expense million increase $X.X equity-based year. of units. and in result a million, and as the $XX.X expense primarily $X.X decrease on newly were restricted the stock of of an staff a in benefits the in and increase from bonuses, fourth a for Cortina compensation merit-based increases to administrative and decrease million. This due number a XX% was period unvested quarter million general the the primarily increased staff, including in

an expenses expenses and mainly to the renovation acquisition-related the amortization office of in our depreciation due space York and City. expense in related of part compared as resulting in amortization New fees period The Cortina fees, intangible primarily administrative Cortina and increases acquisition, the same was were due deal, acquired the depreciation the general of related increase legal assets professional year in to increase during last increased quarter increase that to fourth to from in of to

costs. expenses due soft experienced in decrease related Portfolio accrued a systems and increased well. in occupancy research also entertainment to related costs increases as We increased travel and dollar and And expenses.

of accruals the Cortina we partially offset both These Jamison were LLC had related fair value to and of earn-out in fair related in by for the a decrease Also, a earn-out Neosho deals. the few our arrangements Capital, of value the earn-out to arrangements, acquisitions. increases

$X.X Reported XXXX to share. same diluted $X.X was income to compared to income year. for net consolidated last million Class shareholders million the in or quarter basic A of fourth $X.X class per Reported attributable the for approximately Silvercrest and as was quarter period the net million or A $X.XX

EBITDA, or for revenue which non-core XX.X% giving the year. we approximately the as to revenue EBITDA define the quarter non-recurring period without compared equity-based of or and $X.X was compensation prior XX.X% of effect items, $X.X expense same for million to Adjusted and in million

Adjusted non-recurring net $X.X tax the for define or share. per items, as and effect income we and $X.XX corporate basic to million approximately earnings net which assuming without diluted of income giving was non-core, a expense, income, per rate XX%, quarter adjusted

by restricted add units to share stock the stock per outstanding total extent the the EP!S earnings end basic net to for income, Class earnings and, Class the reporting as the compute non-qualified Adjusted to diluted adjusted shares actual adjusted options at share. equal outstanding period and divided B and A is adjusted unvested shares dilutive, we of per to

approximately billion driven representing Looking of approximately $XXX.X at a by increase $XX.X over for and same services discretionary including management, the assets an in This revenue for $X.X year, increase family with assets increase and in management inflows was X% under connection revenue. of net full client year. revenue office of was acquisition period of million million, the under XXXX assets Cortina last certain

revenue to was in Cortina X mind that $X.X of started approximately for July Revenue on the million. year, XXXX, full keeping related

for a year December XX, year. $XX.X last X% the the million XXXX ended same of representing $XX.X for increase million, period approximately over expenses Expenses were

approximately $X.X XXXX, expense during compared prior and Compensation increased year. million the this to

year. $X.X to the during compared approximately XXXX increased expenses administrative million and prior General as

vested newly staff, bonuses. restricted in increased Cortina, also increase the the increases early as Also, a year, merit-based compensation decrease result fully we had looking Again, hired including due units and that a and compensation stock several equity-based of quarter. expense full for third in to

various professional higher and again General Office the we for in result and value activities, increases and related amortization experienced the earn-out Cortina, of expense acquisition to expense, administrative also expenses as portfolio of rent specifically fees related intangibles increased and renovation, fair arrangements. the a systems changes and to in increased the York City and year New depreciation our

approximately for or Class Reported $X.XX was Reported the year million income A to for compared to shareholders per Class Silvercrest $X.X $XX.X share. consolidated basic A ended million XX, XXXX in XXXX. or $XX.X December diluted approximately and income attributable was million XXXX net net

Adjusted XX% for million $XX.X compared $XX.X of XXXX. revenue million XXXX for of or EBITDA or XX% was approximately revenue to

$X.XX for respectively. and basic was and Adjusted net adjusted income $X.XX or approximately earnings share, XXXX per $XX.X diluted million per

term of of issued and drilling assets drew amount and facility revenue purchased payment total The million. consideration equal loan the Cortina the the with July a certain on acquisition we we milestones. five closing, with of closed little includes consideration in for during X, million At consideration of retention a down We acquisition the on on to closing growth acquisition approximately made the National two value the the contingent on a just Bank, the in goodwill. $XX.X after bit years potential Class cash aggregate on B down $XX our million. and based assets Again, City $X in we deal of Cortina payments payments achieving potential form units approximately

Looking end were the end to Cash $XX.X end end the the were of $XXX.X compared cash Total XXXX. million compared as at $XX.X at the XXXX. sheet. briefly of XXXX. at approximately at at the approximately of balance as $XXX.X million to assets of million and equivalents This million XXXX

the financial and now and of X lease of Certain assets standard condition As on of XXXX, operating of lease a the as adoption commitments new January statement effective the result lease appear finance accounting liabilities.

$XX.X finance XXXX, respectively. assets lease liabilities XX, million $XX.X and As and of December and our million operating totaled

Total the of $XX end at million the and stockholders' Class million total of as equity XXXX. borrowings end $XX.X were was XXXX of approximately A

now lead That the to concludes Rick and my Q&A. into remarks. I'll call over we'll turn

Richard Hough III

Scott. much, year. quarter very about and questions the Thanks now We'll take talk and

Operator

first Mody the Sumeet And comes Piper Instructions]. [Operator Sandler. question from with

Sumeet Mody

Thanks. Rick. Scott. Morning, Morning,

Richard Hough III

morning. Good

Sumeet Mody

on conversations continuing to from XXXX with pretty the are climb update environment. activity demand. active despite an a start the going industry potential How with targets? increased purchase you for year guys wanted XXXX approaching multiples maybe levels? how M&A are Just And the was to the

Richard Hough III

Yeah.

were in we was deal a by for have not appropriate out we felt XXXX. others So, and with year plenty interests of first was aligned were had XXXX and, variety the to us reach a our shareholder not instructive actually brought or banker. We've one us just us in last way, care that capital. Cortina been to we or did the deal of same the is brought same for that that and reasons, way did that way

to meetings to a potential you partner. clear culture get a a grow lot working The is and consider management and to one-minded takes you When talent together services business. the right important extraordinarily the that as It find this of have way But right. elevators to a down is of the going wealth firm you have up personal want business.

industry industry, are associations. groups, and reaches out that firm We a works trade in is firms. the active in firm very to peer different This with

and intentionally relationships, been In shared even referred fact, have we've so. peer firms by or business other

a of usually of are kind who represents a last doing and meeting of going just right very conversation. often now understand And we're And and minds. us. the game, business have And conversations ready we almost businesses reach numbers People to in story talk helping our cultivating did for continue year. always to not the but into long I way and our them, that come firm quoting as active them game. just that we their really fact people, it's a we're a getting directly it's the about Silvercrest meeting out to

any many are in are – every replace annuity. the the There's growing, these showing meaningful comp, multiples a integrating driven of in growth this do it you if together as out they're the or Or very firms strip necessarily financial to lot want then cases, once out businesses that if markets. are of you a leak kind do quite a not equity that were way of network you for. in are few on The can entry In that pull year, cash-on-cash bucket IAs honestly, and all roll-ups, they of strip along otherwise we've that them with private a those business. But equity to of selling owners' basis. prices have organically to declining roll-up without up our justifies engineering shown have a the

planning. of eating lot job cetera. do succession lifestyle the good firms a for clients, don't transitioned They They're haven't their good. particularly et good they're economics, And business successfully the the businesses. a They a business. have practices. generation these all don't are They in They but have

engineering to very So, capital. I to in am company. am I not skepticism. careful I at great engage with financial the look with going our pure it grow

one going see and the have our We equal two, together to as continually we we've to that that one is history. organically can done plus in business grow

culture about and well all as things selective going forward. move be the then of to as So, we're those

right. fine. of aggressive The we're be growing acquisitions, you capital hope large the one some required debt. work, as represent that's size would be you're move it just that's not ahead will But step of which just to any kind the to and comprehensive helpful. needle don't, of and/or of where top you get you've to serial a share And got deal very get here doing of answer I bunch that line. to use going a very a stay And some find the

Sumeet Mody

well. Yeah. in No, you with that outflows I been that's talk And XXXX, great. in quarter that. correction, institutional the the market experienced channel, know turning Thanks all seeing of far flows? just really some so as in then, can some you've first about you terms for what XQ rebalancing to

of trend market noticed the if volatility weeks wondering Just and couple over the last moves. you've same

related, And institutional strategy color you an channel? a shift kind strength volatility? then, can of you to passive little pipeline large any the update a here, any for and guys [indiscernible]. the offset Have that in just on cap given know recent bit give, it's and get six-month has wanted that but I secondly, of the seen next

Richard Hough III

Right. Sure.

So, you've things few asked there. a

them address of quickly order to just follow-up try any if miss I'll and in So, I them.

current to very number of to significantly calls, a the the something looks six-month dried the actionable, about it's I'm earnings going is $X.X with Obviously, billion. of we're of you finalist into pipeline of and The at either relatively, the share going XXXX, up other strong. question, the in around our year, That meaningfully where search completed. just And not institutional be during lumpy. wins – get really now, we're or First actionable And candidate recall, looks quite kind pipeline by grew volatility. semifinalists the all, little high pipeline us. that going talking It But that. pipeline to But, and get our that we're win to a good. going there. all to for as stands

have The large very cap records. income three maintained capabilities and equity and good track seven-year five-year,

fact, It's and going basis In XX-year I that invest XX don't equity record number managers the People by highly on the we're team it of think help may but the the that to speaks the income of meaningful a among very and interested be to record, one normally of all doing. work quality certainly us. years has you over strategy a know margin.

in But track clear is recent Volatility to scared, reasonable records and to our at things values. Milwaukee. are and in often of helpful We're those us not good. out gets deadwood everyone both head growth equity find some the team when afraid

So, to it's portfolio. opportunity the reorient an

acquisition. performance going capability, building it's us. now to been professionals Their We're has they're we Cortina with. growing We've and want for teams our what in They marketing got pipeline but strong. it's the after smaller, is and because up how how with understand take. to to new pipeline grow them a That quite place our work. Milwaukee growth going work They're for to wonderful

going So, into good equity feel we markets. the very

most think addressed let If I miss I of me something, know. there. questions I your

Sumeet Mody

Yeah.

happening your weeks. Just you're what's on wanted from clients to last get seeing couple maybe in Any shifts of just thoughts that from the the volatility? been

Richard Hough III

experienced highly volatility. who their work markets This the of what deal their for wealth to they're with of management like is and understand of market. what portfolio managers, purpose having very clients this. matters allocations, closely in are has luxury who our Just with extremely how them for, And the clients the long-term asset company all

were seeing the from add shifts and it's value. their see any we those in environment, to opportunity about are way. meaningful not here, come calm very people I'm clients you work to If a going

but is a remain about general an ultimately Our we that in perspective, short-term obviously to this the phenomenon will from outlook, economic hurt, going long-term and it. it's be constructive economy

own and the And in opportunity with long with them balance the burned approach, active high investors to we for clients the strategies, but of provides us institutions better nature selling the very Buying run. returns low, opposite in work to investors see also real get here our into clients, And also and often the their often, whereas given our potentially counseling passive. management business, which outperform actually a have take realize helps behavior.

about with else our sense the coronavirus? to harden It's us prepared sure in It procedures, disaster all and that helped for what recovery continuity. the opportunity and So, Super continue prepared important. infrastructure, an we're examine those business we're business. just make

but after to in this start If of going once is eventually. they little moves so are kind phone dust are on. going a our volatility there But Right business. the does the not be slowdown, anything, necessarily like worried, opportunities don't find now, there's we the make volatility look, to that people ring. while But, settles,

medium-term in direct a it's of anything, if businesses, So, our terms opportunity.

Sumeet Mody

then, a Helpful. you there. it. Thank Got touched you. it on And little bit

to follow-up wanted any little or client growth give around there one can demand seeing you're Just just And color more changes between just platform a and on are any to with the growth? across cap sense or get want other? on Cortina. trends happening or But what's small value of with the you focused a

Richard Hough III

that group, there's change. nothing. the No, Milwaukee I referred been there. group firm to quarters. basically characterize The has to, with two Cortina No Yeah. Nothing the

get to We're have to marketing building pipeline. just have integrate, We our going. we a

there's side, of a not On the wealth lot shifting.

there's going not to a So, be change there.

capabilities search institutional the the of growth cap. of small terms equity side, In

big larger in a marketplace. our value. opportunity There's be you cap shifts our to As small lot opportunities. demand it. capability in the you growth constrained at cap in Milwaukee the necessarily for in largest capacity It's market know, going small It's dependent capabilities capacity There's institutional a Silvercrest of is on see not cap.

business get winning change it. going We're just going there. and of the to way not start we're So, in see a to

Sumeet Mody

coming on is know and another just Yeah. And the could Okay, material anything of early year we kind marketing days that two? really one next international strategy. there then, the it's great. or been how's but still there, I progression just over expect along

Richard Hough III

couple I over years. the think next of

couple products, introduce acquired after group, said adjust some I wanted a we of As to put marketplace. that before, numbers, to incubate the it we them, up good

as it get years comfortable. value the course, good with couple to got familiar up at them capability and your numbers. takes equity started of And put a you've when Silvercrest, consultants, cultivate we Just the our to of

team. we're that, we've much as term, excited. great to look slower good five-year, great everything long really well a So, so absolutely to a numbers. bode It's be you at we're if going going I'm very put pleased It's just well. They and numbers three got up offering, for pipeline. But that's us. seven-year

We be Gray, marketing firm, identical on he's of head going but has executive Allen it, institutional to with the in place slower team have burn. the we're a as that's marketing announced. little the committee about effort. been an coordinating our of now excited And

Sumeet Mody

great. Okay, here just Thanks. on And more couple modeling. a

to to on been fee wanted with contribution forward? I the if institutional from XX discretionary been on for going touch Is Just experiencing should rate. we you historically rate. bps pressures from the It Any any rate. guys Cortina around steady pretty see maybe growing? or the have the seems that's the comfortable the channel wanted impact level just get this

Richard Hough III

Yeah.

down at bouncing It's bit. because winning a discretionary around it's XX, assets if come XX, It's we're high So, around than look XX, It's total mandates. a Historically, it's little larger under class come management, a problem. little down. our lower that. you

so, there's pressure more And pricing there.

It's of institutional been nearly down It more steadily so it go come a from hasn't from back years, business. and mandates, pressure And is that. fee was Less you zero. XX% which now the so winning several just lot if doing recently.

there. So, we've done well really

net Scott the it has but It been, also as growing as may just creep discussing. we're was worth down business, high

countervailing point firm, a We have those new at the basis bringing clients. pressure push up again. talent and in that That'll that be XX towards number

wouldn't basis just point by too well. in it's there or hanging much two. So, read I pretty It into a it. moves

using. It also what depends base you're

at period, versus about talking ways average different what can seeing beginning XX% but are So, I'm we to offline, cetera. of when period, AUM, our look of there AUM, et end talk now, you're

Sumeet Mody

then, just of situation. shifting excess about you're a thinking the get And to to over great. kind capital for Okay, debt the deployment, wanted sense how

the on have quarter. first of a that M&A, going more about to of that be paydown guys you're to I'm If of else? still do wrong, of correct towards like question kind And put level kind looks of capital imminent level my you low relatively than think, me a You if how debt back came it that you this something forward? I going But million down, deal debt. on? done, would anything focused kind view Is no there's in

Richard Hough III

Yeah.

Sumeet Mody

just I Yeah, was going to… sorry.

Richard Hough III

Yeah, sorry.

Sumeet Mody

M&A, it debt was I No, how your no, level if kind that all? an effect just going add, on does of well to at no. has affect as view future

Richard Hough III

to sheet. ability. anything, That's in got If and our comfortable. little EBITDA. the balance where and we've still I'd a aggressively debt not to make ourselves lot just down more powder, as I'm specifically to colleagues it lever not room compared in with put substantially but dry our rather was It left. of deal Cortina we've means renegotiated rational feel Milwaukee. and [Technical not our give focused cash, use lot could opportunity a very I'm a was just We paying doing I a from great here on pretty but debt on of got comfortable, more low debt where it very, it into that our tool. in in debt a facility get Difficulty] to room

of we to and If firm we meaningful – take with $X a of AUM in cash those that's types a billion billion conversations that a deal or debt. $X going lot – management was have potential do to were wealth

powder to doing dry could it, with If conservative forward. have company deal that is a to going opportunity. be be useful this were I very problem a to we that move at less So,

you year out end February. the the in was compensation. just keep grows in And as a January saw, part paid and mind, of is lot of of through as it actually And our it cash

the be right of which how lever to for a many and I room wait opportunity. I company, got say to of that conservative EBITDA tend still the lot would turns I've is just So, with we'll

nature The in net other burdened worth fully help done, and new us of the this to and transition saw people. that growth coming grow had is invest comp the on up thing firm be what our personnel continue this last and first you in income networks. burdened I'm with business will where maintain And year was business. to bit, to our year based was building Super the enduring fully We we a that. high important the were to XXXX predict new we've with that I Most by successful the for investments seeing. those

paying We or basically have for who expect already individual here, and further I one growth. him herself is

running margin our historically. That EBITDA as XX%. kind in That closely be more expensive do But to It hiring fees statement a M&A a fact we've an our with performance end high our got our not result if sit in XX% towards line done we has the environment. as to kind more that do the at room a it. investment, in The the margin and of EBITDA Don't income XXXX company plenty capital. different P&L. of looking is what affects and hit of right way. of that we more We're be surprised will certainly things we hit had of this some hovers between with

to on to we're over got well to to this really out when the investments. XXs make EBITDA high if the seek short-term see avoid. flat running somewhat cycle those you'll business, think XX%. business But outlook is a between just We've which we is something run, we I mid have

hit business. people on execute and the strategy growing is to case that. to going statement, that, point the were doing that brought business income now organically, stacked the nicely. to we're and OCIO very announced we good organically It's in We A up the grow new

Sumeet Mody

a about I that this you the know in follow-up expanding just I want to I wealth bit you could, little if here, talked Thank Great. compensation one for all question management last color. year. comments. on

time you within ratio in above margin, kind comp contributing XX%, pressure that With higher which XXXX for had Your to. over of came range maybe downward is of bit Cortina guided rate? about with band some think just could within tight that we should the Or increased XXXX XX%? hiring, to sort that of way be or how shift that one kind it Is other? of going sort of

Richard Hough III

in more. think I just do going We're XXXX when was going to It's well we a top because course, we to put We're for as company ourselves did going We're of on we're depend grow, that years, our investors on have around as spend ratio And, better it's couple under line. told we numbers. revenue. versus obviously, because to a like willing XX% to do we toward we to growing when manage pay XX%. Yes, ratio not to it that. how a to come ambitions going the of comp up try money we've the ourselves up go and XX%

a industry. I of think mistake make other it's big lot our businesses a in

and down. drive more team not international but or value equity Milwaukee, leverage institutional the business, just our business. we in to the add And Cortina that colleagues do growth

of because of nature the also in the business. You're institutional volatile correct. more performance It's

But done do we've a we talking real of hiring, bunch may we've in more about in yes, story some XXXX. got is hiring The success to there. and have

burden XXXX. to We're about You be it saw going the it. careful of in

If burden full might not do We're guiding in You going still this we XX%. year, to year. hiring towards more. expect it's

should You that mind. keep in

as little money. to a grow, spend some that gives So, room we us

we they absolutely It super much talented team result super we acquisitions much was and a comp quite because about as was higher go didn't expected that was by with down class wrong with compensation their problem. is Nothing point of a as final high that. confidence and of Milwaukee substantially a than their fantastic the A expected. had partners. as comp performance. performance revenue on driven This great And

And so, they got paid more.

out thrilled assure those that. quite solely do in expected me we to appear, to we margin may that ultimately the ball as margin That is top the they down super the can And the to the to park great line have I more are didn't be honestly. going problem hit you, But reasons, going well. a growth Let I of have. expansion that's and drive some because for of think just long run will want every time them in

Sumeet Mody

Okay, I'll great. color. leave for it that's it for there. the And Thanks me.

Richard Hough III

Thanks. you. Thank

Operator

you. The comes University. Fred from Boston Instructions]. with question Thank Foulkes [Operator next

Fred Foulkes

Hi, Foulkes. It's Rick. Fred

the Just business go the next revenue the X%? sort down What's state In going the correlation market is to Dow the what months, and terms of your unit a of correlation in between quick your of of sort six the question, declines, model? revenue? does

Richard Hough III

business that. since to business about our question, thing that We make this a Good and those want tracks he quarter. the answer day the Fred. the is that then determines year revenue comment, One to next mind in I of keep last Scott quarter. numbers. the I'll let And do accurately for day more to preliminary matter effectively – of days each that four model

forward, say, really the while So, will kind to look, nicely, matter of us XX. finished it going happens disruption which the we December what current XX. affect doesn't now happening whatsoever, year depends What's March is

in advance. pretty is occurring first well billing our So, of known quarter because even though first quarter, this how event we're is effectively

of thing it With move XX% the into to capabilities how the equity is nearly to one now account yet with experienced regards to that represents. to taking much around, XX% we expect have revenue growth

the would give Scott when on wealth business to levers it think I We the market be a management. But growth the the it to that with haven't more can things. of than correct business, purely guidance it exact number. assume institutional And remodeled was this little you has

Scott Gerard

Yes.

with So, percentage for it decrease necessarily point be X percentage the X wouldn't a market. point

had strategies of as advance, significant low at in mix our over point a because of your well, as to the some weeks, billed a may levels the is of revenue Rick And keep anticipate. you mind, lag one which You this to quarterly last have going few revenue is second conceptually before strategies, market. this of as volatility said, majority the we've quarter recovery overwhelming market not be market had again, the back then those to different the and would if in

that -- to convention to year. of billing in to a business, there's a the it less it's factors that in be XX% if going was lead than something So, for our decrease lines mix revenue the in our hit market, would the

Fred Foulkes

Okay, thank you.

employees work, from is, coronavirus travel, the the your don't things that what cetera, cetera? nature The telling to question et in are of terms home, you're and of et given doing work second

Richard Hough III

Yeah.

I attempt protocols. cares think to colleagues good what first and any guidance through won't the go place. done we've partners company avoid that to So, how on about does. We've in its those the virus I provided contracting

it news here we out and as soon You in That's all the like read coming news. to But our as number step front got looked was this educate one. employees. broke

infrastructure our to of access cloud. and in all two, Number systems are the

We have connection. a to our cellular continuity of a absolutely a with a disaster work employees connection, anywhere any business plan plan execute to and data including

slightest with if that feels completely from way it so, good are whatever the anyone they fever And or may work to that. home we're be, and

have well. remote our And backups. as employees We many all have teams

We of are expect themselves. of countries is clients, take priority We of how is and we're all would the But a reminded number certain So, who so what for take that – our company well. people they can which, are care the folks our to business. of in course, traveler we the this business. of doing international work one here don't care reason about travel – that's lot did have to limit as you as just capabilities

Fred Foulkes

thank Okay, you.

Richard Hough III

hear Fred. You're welcome, to from you. Nice

Operator

Thank you. conference And question-and-answer would to session. Hough remarks. I the for any concludes like this to Rick our back turn closing

Richard Hough III

of joining much growth. organic our see the for us a to It of fourth nice was very for that XXXX. really review It the you of has capability year Outsourced was and Thank Great. decent expect Chief great from future, growth organic some behind we the to got have wind we Investment it, some now have capability, that in year. Officer for new hopes which quarter the

net finally, worth quality with of excited growth some strategies, on business institutional new we're behalf capabilities, now in And integrated and high growth those initiative a as talent about the in future, the with XXXX well for equity completely the at beyond, firm. marketing multiple potential as

us, of much. you support. appreciate Thank which is shareholders, shared We by very long-term and all our their vision their

Operator

Thank now attending has you. today's presentation. Thank The conference concluded. for you

now may You lines. your disconnect

Silvercrest Asset Management (SAMG) 6 Mar 202019 Q4 Earnings call transcript