Silvercrest Asset Management Group Inc. Reports Q4 and Year-end 2017 Results

For the Three Months
Ended December 31,

For the Year Ended
December 31,

(in thousands except per share amounts or as indicated)

2017

2016

2017

2016

Revenue

$

24,471

$

21,192

$

91,358

$

80,262

Income before other income (expense), net

$

5,152

$

3,326

$

20,369

$

14,636

Net income

$

1,917

$

2,487

$

12,531

$

9,982

Net (loss) income attributable to Silvercrest

$

(80)

$

1,286

$

5,337

$

5,015

Net (loss) income per basic and diluted share

$

(0.01)

$

0.15

$

0.66

$

0.62

Adjusted EBITDA¹

$

7,597

$

5,889

$

27,887

$

22,453

Adjusted EBITDA margin¹

31.0

%

27.8

%

30.5

%

28.0

%

Adjusted net income¹

$

3,620

$

2,632

$

13,064

$

9,836

Adjusted basic earnings per share^{1, 2}

$

0.27

$

0.20

$

0.99

$

0.76

Adjusted diluted earnings per share^{1, 2}

$

0.26

$

0.19

$

0.95

$

0.72

Assets under management at period end (billions)

$

21.3

$

18.6

$

21.3

$

18.6

Average assets under management (billions)³

$

21.0

$

18.3

$

20.0

$

18.4

Discretionary assets under management (billions)

$

16.0

$

13.8

$

16.0

$

13.8

¹     Adjusted measures are non-GAAP measures and are explained and reconciled to the comparable GAAP 
      measures in Exhibits 3 and 4.

²     Adjusted basic and diluted earnings per share measures for the year ended December 31, 2017 are based on 
     the number of shares of Class A common stock and Class B common stock outstanding as of December 31, 
     2017.  Adjusted diluted earnings per share are further based on the addition of unvested deferred equity units,
     restricted stock units, and performance units to the extent dilutive at the end of the reporting period.

³     We have computed average AUM by averaging AUM at the beginning of the applicable period and AUM at the
      end of the applicable period.

Exhibit 1

Silvercrest Asset Management Group Inc.

Consolidated Statements of Operations

(in thousands, except share and per share amounts or as noted)

For the year ended December 31,

2017

2016

2015

(Unaudited)

Revenue

Management and advisory fees 

$

86,542

$

76,185

$

71,759

Performance fees and allocations

834

322

11

Family office services

3,982

3,755

3,368

Total revenue

91,358

80,262

75,138

Expenses

Compensation and benefits 

54,143

49,009

42,856

General and administrative 

16,846

16,617

15,325

Total expenses

70,989

65,626

58,181

20,369

14,636

16,957

Income before other income (expense), net 

Other income (expense), net

Other income (expense), net 

5,346

(105)

1,268

Interest income

47

61

72

Interest expense

(112)

(228)

(261)

Equity income from investments 

615

304

18

Total other income (expense), net 

5,896

32

1,097

26,265

14,668

18,054

Income before provision for income taxes

Provision for income taxes

(13,734)

(4,686)

(6,969)

Net income 

12,531

9,982

11,085

(7,194)

(4,967)

(5,761)

Less: net income attributable to non-controlling interests

Net income attributable to Silvercrest

$

5,337

$

5,015

$

5,324

Net income per share:

Basic 

$

0.66

$

0.62

$

0.68

Diluted 

$

0.66

$

0.62

$

0.68

Weighted average shares outstanding:

Basic 

8,110,128

8,031,161

7,855,038

Diluted 

8,117,407

8,038,177

7,855,038

Exhibit 2

Silvercrest Asset Management Group Inc.

Consolidated Statements of Operations

(Unaudited and in thousands, except share and per share amounts or as noted)

For the three months ended December 31,

2017

2016

Revenue

Management and advisory fees 

$

22,642

$

19,991

Performance fees and allocations

824

322

Family office services

1,005

879

Total revenue

24,471

21,192

Expenses

Compensation and benefits 

14,525

13,619

General and administrative 

4,794

4,247

Total expenses

19,319

17,866

5,152

3,326

Income before other income (expense), net 

Other income (expense), net

Other income (expense), net 

5,322

(6)

Interest income

14

14

Interest expense

(27)

(54)

Equity income from investments 

615

304

Total other income (expense), net 

5,924

258

11,076

3,584

Income before provision for income taxes

Provision for income taxes

(9,159)

(1,097)

Net income 

1,917

2,487

Less: net income attributable to non-controlling interests

(1,997)

(1,201)

Net (loss) income attributable to Silvercrest

$

(80)

$

1,286

Net (loss) income per share:

Basic 

$

(0.01)

$

0.15

Diluted 

$

(0.01)

$

0.15

Weighted average shares outstanding:

Basic 

8,136,986

8,062,041

Diluted 

8,136,986

8,072,623

Exhibit 3

Silvercrest Asset Management Group Inc.

Reconciliation of GAAP to non-GAAP ("Adjusted") Adjusted EBITDA Measure

(Unaudited and in thousands, except share and per share amounts or as noted)

Adjusted EBITDA

Three Months Ended

Year Ended

December 31,

December 31,

2017

2016

2017

2016

Reconciliation of non-GAAP financial measure:

Net income

$

1,917

$

2,487

$

12,531

$

9,982

Provision for income taxes

9,159

1,097

13,734

4,686

Delaware Franchise Tax

45

47

180

182

Interest expense

27

54

112

228

Interest income

(14)

(14)

(47)

(61)

Depreciation and amortization

750

652

2,801

2,664

Equity-based compensation

801

811

3,248

3,228

Other adjustments (A)

(5,088)

755

(4,672)

1,544

Adjusted EBITDA

$

7,597

$

5,889

$

27,887

$

22,453

31.0

%

27.8

%

30.5

%

28.0

%

Adjusted EBITDA Margin

(A)    Other adjustments consist of the following:

Acquisition costs (a)

$

-

$

-

$

-

$

22

Severance

(1)

(6)

167

-

Non-acquisition expansion costs (b)

74

84

194

310

Other (c)

(5,161)

677

(5,033)

1,212

$

(5,088)

$

755

$

(4,672)

$

1,544

Total other adjustments 

(a)     For the three and twelve months ended December 31, 2016, respectively, represents legal fees of $0 and $12 related to the Cappiccille 
         acquisition and professional fees of $0 and $10 related to the Jamison Acquisition. 

(b)     For the three and twelve months ended December 31, 2017, respectively, represents $74 and $194 of accrued earnout related to our
         Richmond, VA office expansion.  For the three and twelve months ended December 31, 2016, respectively, represents $84 and $310 of
         accrued earnout related to our Richmond, VA office expansion. 

(c)     For the three and twelve months ended December 31, 2017, represents a sign-on bonus paid to an employee of $102 and $207,
         professional fees of $0 and $18 related to a mock audit in advance of the requirements of Section 404 of the Sarbanes-Oxley Act as it
         relates to emerging growth companies and professional fees of $23 and $27 related to a technology initiative, compensatory incentive
         fees of $0 and $52 paid to a former Marathon Capital Group, LLC principal and a fair value adjustment to the Cappiccille contingent
         purchase price consideration of $0 and $41. This was offset by a fair value adjustment to the Jamison contingent purchase price
         consideration of $0 and ($79) and a true-up adjustment to our tax receivable agreement of ($5,299) and ($5,299).  For the three and
         twelve months ended December 31, 2016, respectively, represents a sign on bonus of $102 and $364 paid to a new employee,
         compensatory incentive fees of $322 and $322 paid to a former Marathon Capital Group, LLC principal, costs associated with the upgrade
         of our telephone system of $24 and $82, software implementation costs of $0 and $13, professional fees related to a mock compliance
         audit of $0 and $78, professional fees related to a mock Sarbanes 404 audit of $43 and $43, a fair value adjustment to the Milbank
         contingent purchase price consideration of $80 and $80, a fair value adjustment to the Jamison contingent purchase price consideration of
         $79 and $79 and a true-up adjustment to our tax receivable agreement of $30 and $152.  This was partially offset by a fair value adjustment
         to the Cappiccille contingent purchase price consideration of ($7) and ($7).   

Exhibit 4

Silvercrest Asset Management Group Inc.

Reconciliation of GAAP to non-GAAP ("Adjusted")

Adjusted Net Income and Adjusted Earnings Per Share Measures

(Unaudited and in thousands, except per share amounts or as noted)

Adjusted Net Income and Adjusted Earnings Per Share

Three Months Ended

Year Ended

December 31,

December 31,

2017

2016

2017

2016

Reconciliation of non-GAAP financial measure:

Consolidated net income

$

1,917

$

2,487

$

12,531

$

9,982

Consolidated GAAP provision for income taxes

9,159

1,097

13,734

4,686

Delaware Franchise Tax

45

47

180

182

Other adjustments (See A in Exhibit 3)

(5,088)

755

(4,672)

1,544

Adjusted income before provision for income taxes

$

6,033

$

4,386

$

21,773

$

16,394

Adjusted provision for income taxes:

Adjusted provision for income taxes (40% assumed tax rate)

(2,413)

(1,754)

(8,709)

(6,558)

$

3,620

$

2,632

$

13,064

$

9,836

Adjusted net income

GAAP net (loss) income per share (B):

Basic and diluted

$

(0.01)

$

0.15

$

0.66

$

0.62

Adjusted earnings per share/unit (B):

Basic

$

0.27

$

0.20

$

0.99

$

0.76

Diluted

$

0.26

$

0.19

$

0.95

$

0.72

Shares/units outstanding: 

8,142

8,074

8,142

8,074

Basic Class A shares outstanding

Basic Class B shares/units outstanding

5,059

4,866

5,059

4,866

Total basic shares/units outstanding 

13,201

12,940

13,201

12,940

8,148

8,085

8,148

8,085

Diluted Class A shares outstanding (C)

Diluted Class B shares/units outstanding (D)

5,545

5,595

5,545

5,595

Total diluted shares/units outstanding

13,693

13,680

13,693

13,680

(B)     GAAP earnings per share is strictly attributable to Class A shareholders.  Adjusted earnings per share takes into account earnings attributable
          to both Class A and Class B shareholders. 

(C)     Includes 5,687 and 10,582 unvested restricted stock units as of December 31, 2017 and 2016, respectively.

(D)     Includes 486,098 and 728,674 unvested restricted stock units as of December 31, 2017 and 2016 respectively.  Includes 4,911 unvested
          deferred equity units and 966,510 unvested restricted stock units at December 31, 2015.

Exhibit 5

Silvercrest Asset Management Group Inc.

Consolidated Statements of

Financial Condition

(in thousands)  

December 31,

December 31,

2017

2016

(Unaudited)

Assets

Cash and cash equivalents

$

53,822

$

37,517

Investments

626

335

Receivables, net

9,436

6,270

Due from Silvercrest Funds

1,094

2,876

Furniture, equipment and leasehold improvements, net 

2,453

2,411

Goodwill

25,168

25,168

Intangible assets, net 

11,578

13,404

Deferred tax asset – tax receivable agreement

11,838

20,221

Prepaid expenses and other assets 

1,345

4,079

Total assets 

$

117,360

$

112,281

Liabilities and Equity

Accounts payable and accrued expenses

$

3,506

$

4,485

Accrued compensation

28,274

23,797

Notes payable 

740

2,486

Deferred rent

3,473

436

Deferred tax and other liabilities 

9,248

14,993

Total liabilities

45,241

46,197

Commitments and Contingencies 

Equity

Preferred Stock, par value $0.01,

10,000,000 shares authorized; none issued and outstanding

-

-

Class A Common Stock, par value $0.01,

50,000,000 shares authorized; 8,142,120 and 8,074,197 issued and outstanding as of
December 31, 2017 and 2016, respectively

81

81

Class B Common Stock, par value $0.01,

25,000,000 shares authorized; 5,059,319 and 4,866,303 issued and outstanding as of December 31, 2017 and 2016, respectively

49

48

Additional Paid-In Capital

41,606

41,260

Retained earnings

7,359

5,916

Total Silvercrest Asset Management Group Inc.'s equity

49,095

47,305

Non-controlling interests

23,024

18,779

Total equity

72,119

66,084

Total liabilities and equity

$

117,360

$

112,281

Exhibit 6

Silvercrest Asset Management Group Inc.

Total Assets Under Management

(Unaudited and in billions)

Total Assets Under Management:

Three Months Ended

% Change From

December 31,

December 31,

2017

2016

2016

Beginning assets under management

$

20.6

$

17.9

15.1

%

Gross client inflows

2.0

1.4

42.9

%

Gross client outflows

(1.8)

(1.3)

38.5

%

Market appreciation

0.5

0.6

-16.7

%

Ending assets under management

$

21.3

$

18.6

14.5

%

Year Ended

% Change From

December 31,

December 31,

2017

2016

2016

Beginning assets under management

$

18.6

18.1

2.8

%

Gross client inflows

7.3

4.9

49.0

%

Gross client outflows

(6.7)

(5.4)

24.1

%

Market appreciation 

2.1

1.0

110.0

%

Ending assets under management

$

21.3

$

18.6

14.5

%

Exhibit 7

Silvercrest Asset Management Group Inc.

Discretionary Assets Under Management

(Unaudited and in billions)

Discretionary Assets Under Management:

Three Months Ended

% Change From

December 31,

December 31,

2017

2016

2016

Beginning assets under management

$

15.3

$

13.2

15.9

%

Gross client inflows

1.9

1.3

46.2

%

Gross client outflows

(1.7)

(1.2)

41.7

%

Market appreciation

0.5

0.5

0.0

%

Ending assets under management

$

16.0

$

13.8

15.9

%

Year Ended

% Change From

December 31,

December 31,

2017

2016

2016

Beginning assets under management

$

13.8

$

12.1

14.1

%

Gross client inflows

6.8

4.6

47.8

%

Gross client outflows

(6.2)

(4.2)

47.6

%

Market appreciation 

1.6

1.3

23.1

%

Ending assets under management

$

16.0

$

13.8

15.9

%

Exhibit 8

Silvercrest Asset Management Group Inc.

Non-Discretionary Assets Under Management

(Unaudited and in billions)

Non-Discretionary Assets Under Management:

Three Months Ended

% Change From

December 31,

December 31,

2017

2016

2016

Beginning assets under management

$

5.3

$

4.7

12.8

%

Gross client inflows

0.1

0.1

0.0

%

Gross client outflows

(0.1)

(0.1)

0.0

%

Market appreciation

0.0

0.1

-100.0

%

Ending assets under management

$

5.3

$

4.8

10.4

%

Year Ended

% Change From

December 31,

December 31,

2017

2016

2016

Beginning assets under management

$

4.8

$

6.0

-20.0

%

Gross client inflows

0.5

0.3

66.7

%

Gross client outflows

(0.5)

(1.2)

58.3

%

Market appreciation (depreciation) 

0.5

(0.3)

-266.7

%

Ending assets under management

$

5.3

$

4.8

10.4

%

Exhibit 9

Silvercrest Asset Management Group Inc.

Assets Under Management

(Unaudited and in billions)

Three Months Ended

December 31,

2017

2016

Total AUM as of September 30, 

$

20.602

$

17.894

Discretionary AUM:

Total Discretionary AUM as of September 30,

15.307

13.222

New client accounts/assets

0.102

0.134

(1)

Closed accounts

(0.005)

(0.007)

(2)

Net cash inflow/(outflow)

0.066

(0.028)

(3)

Non-discretionary to discretionary AUM

0.000

0.000

(4)

Market appreciation

0.526

0.480

Change to Discretionary AUM

0.689

0.579

Total Discretionary AUM as of December 31,

15.996

13.800

Change to Non-Discretionary AUM

0.048

0.128

(5)

Total AUM as of December 31, 

$

21.339

$

18.601

Year Ended

December 31,

2017

2016

Total AUM as of January 1, 

$

18.601

$

18.147

Discretionary AUM:

Total Discretionary AUM as of January 1,

13.800

12.077

New client accounts/assets

0.360

0.648

(1)

Closed accounts

(0.038)

(0.152)

(2)

Net cash inflow/(outflow)

0.260

(0.173)

(3)

Non-discretionary to discretionary AUM

(0.008)

0.001

(4)

Market appreciation (depreciation)

1.622

1.399

Change to Discretionary AUM

2.196

1.723

Total Discretionary AUM as of December 31,

15.996

13.800

Change to Non-Discretionary AUM

0.542

(1.269)

(5)

Total AUM as of December 31, 

$

21.339

$

18.601

(1)          Represents new account flows from both new and existing client relationships

(2)          Represents closed accounts of existing client relationships and those that terminated

(3)          Represents periodic cash flows related to existing accounts

(4)          Represents client assets that converted to Discretionary AUM from Non-Discretionary AUM

(5)          Represents the net change to Non-Discretionary AUM

Exhibit 10

Silvercrest Asset Management Group Inc.

Equity Investment Strategy Composite Performance^{1, 2}

As of December 31, 2016

(Unaudited)

PROPRIETARY EQUITY PERFORMANCE^{1, 2}

ANNUALIZED PERFORMANCE

AS OF 12/31/16

INCEPTION

1-YEAR

3-YEAR

5-YEAR

7-YEAR

INCEPTION

Large Cap Value Composite

4/1/2002

24.9

13.3

16.5

13.6

9.3

Russell 1000 Value Index

13.7

8.7

14.0

12.5

7.6

4/1/2002

12.2

12.7

16.0

13.8

11.7

Small Cap Value Composite

Russell 2000 Value Index

7.8

9.6

13.0

10.8

8.7

10/1/2005

15.4

14.2

16.3

14.1

10.9

Smid Cap Value Composite

Russell 2500 Value Index

10.4

9.3

13.3

11.5

8.2

7/1/2002

19.5

12.6

16.4

14.0

10.3

Multi Cap Value Composite

Russell 3000 Value Index

13.2

8.7

14.0

12.3

8.4

12/1/2003

20.1

13.4

17.1

14.9

12.5

Equity Income Composite

Russell 3000 Value Index

13.2

8.7

14.0

12.3

8.6

9/1/2004

18.3

13.8

17.3

13.6

11.6

Focused Value Composite

Russell 3000 Value Index

13.2

8.7

14.0

12.3

8.4

¹             Returns are based upon a time weighted rate of return of various fully discretionary equity portfolios with similar investment objectives,
            strategies and policies and other relevant criteria managed by Silvercrest Asset Management Group LLC ("SAMG LLC"), a subsidiary
            of Silvercrest. Performance results are gross of fees and net of commission charges. An investor's actual return will be reduced by the
            advisory fees and any other expenses it may incur in the management of the investment advisory account. SAMG LLC's standard advisory
            fees are described in Part 2 of its Form ADV. Actual fees and expenses will vary depending on a variety of factors, including the size of a
            particular account. Returns greater than one year are shown as annualized compounded returns and include gains and accrued income and
            reinvestment of distributions. Past performance is no guarantee of future results. This piece contains no recommendations to buy or sell
            securities or a solicitation of an offer to buy or sell securities or investment services or adopt any investment position. This piece is not
            intended to constitute investment advice and is based upon conditions in place during the period noted. Market and economic views are
            subject to change without notice and may be untimely when presented here. Readers are advised not to infer or assume that any securities,
            sectors or markets described were or will be profitable. SAMG LLC is an independent investment advisory and financial services firm created to
            meet the investment and administrative needs of individuals with substantial assets and select institutional investors. SAMG LLC claims
            compliance with the Global Investment Performance Standards (GIPS^®).

²         The market indices used to compare to the performance of Silvercrest's strategies are as follows: 

          The Russell 1000 Index is a capitalization-weighted, unmanaged index that measures the 1000 smallest companies in the Russell 3000. The Russell
          1000 Value Index is a capitalization-weighted, unmanaged index that includes those Russell 1000 Index companies with lower price-to-book ratios
          and lower expected growth values.

          The Russell 2000 Index is a capitalization-weighted, unmanaged index that measures the 2000 smallest companies in the Russell 3000. The Russell
          2000 Value Index is a capitalization-weighted, unmanaged index that includes those Russell 2000 Index companies with lower price-to-book ratios
          and lower expected growth values.

          The Russell 2500 Index is a capitalization-weighted, unmanaged index that measures the 2500 smallest companies in the Russell 3000. The Russell
          2500 Value Index is a capitalization-weighted, unmanaged index that includes those Russell 2000 Index companies with lower price-to-book ratios
          and lower expected growth values.

          The Russell 3000 Value Index is a capitalization-weighted, unmanaged index that measures those Russell 3000 Index companies with lower
          price-to-book ratios and lower forecasted growth.