(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Exhibit Number | Description of Exhibit | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
AssetMark Financial Holdings, Inc. | |||||
Date: November 6, 2023 | /s/ Gary Zyla | ||||
Gary Zyla | |||||
Chief Financial Officer |
3Q22 | 3Q23 | Variance per year | |||||||||||||||
Operational metrics: | |||||||||||||||||
Platform assets (at period-beginning) (millions of dollars) | $ | 82,127 | $ | 100,762 | 22.7 | % | |||||||||||
Net flows (millions of dollars) | 1,207 | 1,543 | 27.8 | % | |||||||||||||
Market impact net of fees (millions of dollars) | (3,952) | (2,708) | NM | ||||||||||||||
Acquisition impact (millions of dollars) | — | — | NM | ||||||||||||||
Platform assets (at period-end) (millions of dollars) | $ | 79,382 | $ | 99,597 | 25.5 | % | |||||||||||
Net flows lift (% of beginning of year platform assets) | 1.3 | % | 1.7 | % | 40 bps | ||||||||||||
Advisors (at period-end) | 8,702 | 9,354 | 7.5 | % | |||||||||||||
Engaged advisors (at period-end) | 2,601 | 2,995 | 15.1 | % | |||||||||||||
Assets from engaged advisors (at period-end) (millions of dollars) | $ | 72,195 | $ | 91,900 | 27.3 | % | |||||||||||
Households (at period-end) | 223,098 | 251,424 | 12.7 | % | |||||||||||||
New producing advisors | 159 | 158 | (0.6) | % | |||||||||||||
Production lift from existing advisors (annualized %) | 14.9 | % | 18.7 | % | 380 bps | ||||||||||||
Assets in custody at ATC (at period-end) (millions of dollars) | $ | 61,539 | $ | 73,445 | 19.3 | % | |||||||||||
ATC client cash (at period-end) (millions of dollars) | $ | 3,510 | $ | 2,897 | (17.5) | % | |||||||||||
Financial metrics: | |||||||||||||||||
Total revenue (millions of dollars) | $ | 154.7 | $ | 190.5 | 23.1 | % | |||||||||||
Net income (millions of dollars) | $ | 30.1 | $ | 38.4 | 27.6 | % | |||||||||||
Net income margin (%) | 19.5 | % | 20.1 | % | 60 bps | ||||||||||||
Capital expenditure (millions of dollars) | $ | 9.0 | $ | 11.6 | 28.9 | % | |||||||||||
Non-GAAP financial metrics: | |||||||||||||||||
Adjusted EBITDA (millions of dollars) | $ | 52.7 | $ | 66.5 | 26.2 | % | |||||||||||
Adjusted EBITDA margin (%) | 34.0 | % | 34.9 | % | 90 bps | ||||||||||||
Adjusted net income (millions of dollars) | $ | 35.0 | $ | 46.0 | 31.4 | % |
September 30, 2023 | December 31, 2022 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 214,754 | $ | 123,274 | |||||||
Restricted cash | 14,000 | 13,000 | |||||||||
Investments, at fair value | 16,294 | 13,714 | |||||||||
Fees and other receivables, net | 20,464 | 20,082 | |||||||||
Income tax receivable, net | — | 265 | |||||||||
Prepaid expenses and other current assets | 13,086 | 16,870 | |||||||||
Total current assets | 278,598 | 187,205 | |||||||||
Property, plant and equipment, net | 7,672 | 8,495 | |||||||||
Capitalized software, net | 105,593 | 89,959 | |||||||||
Other intangible assets, net | 686,765 | 694,627 | |||||||||
Operating lease right-of-use assets | 21,625 | 22,002 | |||||||||
Goodwill | 487,353 | 487,225 | |||||||||
Other assets | 17,721 | 13,417 | |||||||||
Total assets | $ | 1,605,327 | $ | 1,502,930 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 1,781 | $ | 4,624 | |||||||
Accrued liabilities and other current liabilities | 65,458 | 69,196 | |||||||||
Income tax payable, net | 25,755 | — | |||||||||
Total current liabilities | 92,994 | 73,820 | |||||||||
Long-term debt, net | 93,519 | 112,138 | |||||||||
Other long-term liabilities | 16,666 | 15,185 | |||||||||
Long-term portion of operating lease liabilities | 27,539 | 27,924 | |||||||||
Deferred income tax liabilities, net | 147,497 | 147,497 | |||||||||
Total long-term liabilities | 285,221 | 302,744 | |||||||||
Total liabilities | 378,215 | 376,564 | |||||||||
Stockholders’ equity: | |||||||||||
Common stock, $0.001 par value (675,000,000 shares authorized and 74,264,226 and 73,847,596 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively) | 74 | 74 | |||||||||
Additional paid-in capital | 955,208 | 942,946 | |||||||||
Retained earnings | 271,987 | 183,503 | |||||||||
Accumulated other comprehensive loss | (157) | (157) | |||||||||
Total stockholders’ equity | 1,227,112 | 1,126,366 | |||||||||
Total liabilities and stockholders’ equity | $ | 1,605,327 | $ | 1,502,930 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Asset-based revenue | $ | 143,840 | $ | 128,173 | $ | 412,215 | $ | 409,498 | |||||||||||||||
Spread-based revenue | 37,329 | 21,160 | 112,863 | 30,265 | |||||||||||||||||||
Subscription-based revenue | 3,891 | 3,126 | 11,128 | 9,703 | |||||||||||||||||||
Other revenue | 5,462 | 2,204 | 14,110 | 4,707 | |||||||||||||||||||
Total revenue | 190,522 | 154,663 | 550,316 | 454,173 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Asset-based expenses | 43,092 | 36,476 | 119,870 | 118,429 | |||||||||||||||||||
Spread-based expenses | 8,492 | 2,142 | 23,052 | 3,188 | |||||||||||||||||||
Employee compensation | 46,613 | 41,589 | 141,623 | 121,852 | |||||||||||||||||||
General and operating expenses | 22,714 | 21,667 | 72,757 | 65,949 | |||||||||||||||||||
Professional fees | 7,369 | 5,877 | 21,134 | 17,104 | |||||||||||||||||||
Depreciation and amortization | 8,965 | 7,961 | 26,077 | 23,141 | |||||||||||||||||||
Total operating expenses | 137,245 | 115,712 | 404,513 | 349,663 | |||||||||||||||||||
Interest expense | 2,305 | 1,560 | 6,789 | 4,207 | |||||||||||||||||||
Other (income) expense, net | (2,192) | (11) | 17,385 | 195 | |||||||||||||||||||
Income before income taxes | 53,164 | 37,402 | 121,629 | 100,108 | |||||||||||||||||||
Provision for income taxes | 14,779 | 7,293 | 33,145 | 22,440 | |||||||||||||||||||
Net income | 38,385 | 30,109 | 88,484 | 77,668 | |||||||||||||||||||
Net comprehensive income | $ | 38,385 | $ | 30,109 | $ | 88,484 | $ | 77,668 | |||||||||||||||
Net income per share attributable to common stockholders: | |||||||||||||||||||||||
Basic | $ | 0.52 | $ | 0.41 | $ | 1.19 | $ | 1.05 | |||||||||||||||
Diluted | $ | 0.51 | $ | 0.41 | $ | 1.19 | $ | 1.05 | |||||||||||||||
Weighted average number of common shares outstanding, basic | 74,261,667 | 73,842,297 | 74,047,412 | 73,682,881 | |||||||||||||||||||
Weighted average number of common shares outstanding, diluted | 74,695,260 | 73,844,689 | 74,521,370 | 73,783,858 |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income | $ | 88,484 | $ | 77,668 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 26,077 | 23,141 | |||||||||
Interest (income) expense, net | (184) | 607 | |||||||||
Share-based compensation | 12,262 | 10,096 | |||||||||
Debt acquisition cost write-down | 92 | 130 | |||||||||
Changes in certain assets and liabilities: | |||||||||||
Fees and other receivables, net | (879) | (7,338) | |||||||||
Receivables from related party | 480 | 568 | |||||||||
Prepaid expenses and other current assets | 7,751 | 6,732 | |||||||||
Accounts payable, accrued liabilities and other current liabilities | (675) | (12,664) | |||||||||
Income tax receivable and payable, net | 26,020 | (3,341) | |||||||||
Net cash provided by operating activities | 159,428 | 95,599 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Purchase of Adhesion Wealth | (3,000) | — | |||||||||
Purchase of investments | (1,936) | (2,211) | |||||||||
Sale of investments | 289 | 384 | |||||||||
Purchase of property and equipment | (1,155) | (1,440) | |||||||||
Purchase of computer software | (31,871) | (26,049) | |||||||||
Purchase of convertible notes | (4,275) | (8,600) | |||||||||
Net cash used in investing activities | (41,948) | (37,916) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Proceeds from issuance of long-term debt, net | — | 122,508 | |||||||||
Proceeds from revolving credit facility draw down | 50,000 | — | |||||||||
Payments on revolving credit facility | (50,000) | (115,000) | |||||||||
Payments on term loan | (25,000) | (4,688) | |||||||||
Net cash (used in) provided by financing activities | (25,000) | 2,820 | |||||||||
Net change in cash, cash equivalents, and restricted cash | 92,480 | 60,503 | |||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 136,274 | 89,707 | |||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 228,754 | $ | 150,210 | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||||
Income taxes paid, net | $ | 6,962 | $ | 26,176 | |||||||
Interest paid | $ | 7,837 | $ | 2,714 | |||||||
Non-cash operating and investing activities: | |||||||||||
Non-cash changes to right-of-use assets | $ | 3,360 | $ | 3,396 | |||||||
Non-cash changes to lease liabilities | $ | 3,360 | $ | 3,396 |
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||||||||
(in thousands except for percentages) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Net income | $ | 38,385 | $ | 30,109 | 20.1 | % | 19.5 | % | ||||||||||||||||||
Provision for income taxes | 14,779 | 7,293 | 7.8 | % | 4.7 | % | ||||||||||||||||||||
Interest income | (3,186) | (849) | (1.7) | % | (0.5 | %) | ||||||||||||||||||||
Interest expense | 2,305 | 1,560 | 1.2 | % | 1.0 | % | ||||||||||||||||||||
Depreciation and amortization | 8,965 | 7,961 | 4.7 | % | 5.1 | % | ||||||||||||||||||||
EBITDA | $ | 61,248 | $ | 46,074 | 32.1 | % | 29.8 | % | ||||||||||||||||||
Share-based compensation(1) | 4,288 | 3,923 | 2.3 | % | 2.5 | % | ||||||||||||||||||||
Reorganization and integration costs(2) | 2,662 | 2,281 | 1.4 | % | 1.5 | % | ||||||||||||||||||||
Acquisition expenses(3) | 195 | 379 | 0.1 | % | 0.2 | % | ||||||||||||||||||||
Business continuity plan(4) | — | 14 | — | — | ||||||||||||||||||||||
SEC settlement(5) | (1,673) | — | (0.9) | % | — | |||||||||||||||||||||
Other (income) expense, net | (263) | (11) | (0.1 | %) | — | |||||||||||||||||||||
Adjusted EBITDA | $ | 66,457 | $ | 52,660 | 34.9 | % | 34.0 | % |
Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in thousands except for percentages) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net income | $ | 88,484 | $ | 77,668 | 16.1 | % | 17.1 | % | |||||||||||||||
Provision for income taxes | 33,145 | 22,440 | 6.0 | % | 4.9 | % | |||||||||||||||||
Interest income | (7,746) | (1,107) | (1.4) | % | (0.2) | % | |||||||||||||||||
Interest expense | 6,789 | 4,207 | 1.2 | % | 0.9 | % | |||||||||||||||||
Depreciation and amortization | 26,077 | 23,141 | 4.7 | % | 5.1 | % | |||||||||||||||||
EBITDA | $ | 146,749 | $ | 126,349 | 26.6 | % | 27.8 | % | |||||||||||||||
Share-based compensation(1) | 12,262 | 10,096 | 2.2 | % | 2.2 | % | |||||||||||||||||
Reorganization and integration costs(2) | 8,127 | 8,600 | 1.5 | % | 1.9 | % | |||||||||||||||||
Acquisition expenses(3) | 368 | 1,313 | 0.1 | % | 0.3 | % | |||||||||||||||||
Business continuity plan(4) | (6) | 234 | — | 0.1 | % | ||||||||||||||||||
SEC settlement(5) | 18,327 | — | 3.3 | % | — | ||||||||||||||||||
Other (income) expense, net | (186) | 195 | — | — | |||||||||||||||||||
Adjusted EBITDA | $ | 185,641 | $ | 146,787 | 33.7 | % | 32.3 | % |
Three Months Ended September 30, 2023 | Three Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Compensation | Non- Compensation | Total | Compensation | Non- Compensation | Total | ||||||||||||||||||||||||||||||||
Share-based compensation(1) | $ | 4,288 | $ | — | $ | 4,288 | $ | 3,923 | $ | — | $ | 3,923 | ||||||||||||||||||||||||||
Reorganization and integration costs(2) | 1,101 | 1,561 | 2,662 | 829 | 1,452 | 2,281 | ||||||||||||||||||||||||||||||||
Acquisition expenses(3) | — | 195 | 195 | (4) | 383 | 379 | ||||||||||||||||||||||||||||||||
Business continuity plan(4) | — | — | — | — | 14 | 14 | ||||||||||||||||||||||||||||||||
SEC settlement(5) | — | (1,673) | (1,673) | — | — | — | ||||||||||||||||||||||||||||||||
Other (income) expense, net | — | (263) | (263) | — | (11) | (11) | ||||||||||||||||||||||||||||||||
Total adjustments to adjusted EBITDA | $ | 5,389 | $ | (180) | $ | 5,209 | $ | 4,748 | $ | 1,838 | $ | 6,586 |
Three Months Ended September 30, 2023 | Three Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||
(in percentages) | Compensation | Non- Compensation | Total | Compensation | Non- Compensation | Total | ||||||||||||||||||||||||||||||||
Share-based compensation(1) | 2.3 | % | — | 2.3 | % | 2.5 | % | — | 2.5 | % | ||||||||||||||||||||||||||||
Reorganization and integration costs(2) | 0.6 | % | 0.8 | % | 1.4 | % | 0.5 | % | 1.0 | % | 1.5 | % | ||||||||||||||||||||||||||
Acquisition expenses(3) | — | 0.1 | % | 0.1 | % | — | 0.2 | % | 0.2 | % | ||||||||||||||||||||||||||||
Business continuity plan(4) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
SEC settlement(5) | — | (0.9) | % | (0.9) | % | — | — | — | ||||||||||||||||||||||||||||||
Other (income) expense, net | — | (0.1) | % | (0.1) | % | — | — | — | ||||||||||||||||||||||||||||||
Total adjustments to adjusted EBITDA margin % | 2.9 | % | (0.1 | %) | 2.8 | % | 3.0 | % | 1.2 | % | 4.2 | % |
Nine Months Ended September 30, 2023 | Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||||
(in thousands) | Compensation | Non- Compensation | Total | Compensation | Non- Compensation | Total | |||||||||||||||||||||||||||||
Share-based compensation(1) | $ | 12,262 | $ | — | $ | 12,262 | $ | 10,096 | $ | — | $ | 10,096 | |||||||||||||||||||||||
Reorganization and integration costs(2) | 3,370 | 4,757 | 8,127 | 2,823 | 5,777 | 8,600 | |||||||||||||||||||||||||||||
Acquisition expenses(3) | 100 | 268 | 368 | (4) | 1,317 | 1,313 | |||||||||||||||||||||||||||||
Business continuity plan(4) | — | (6) | (6) | (2) | 236 | 234 | |||||||||||||||||||||||||||||
SEC settlement(5) | — | 18,327 | 18,327 | — | — | — | |||||||||||||||||||||||||||||
Other (income) expense, net | — | (186) | (186) | — | 195 | 195 | |||||||||||||||||||||||||||||
Total adjustments to adjusted EBITDA | $ | 15,732 | $ | 23,160 | $ | 38,892 | $ | 12,913 | $ | 7,525 | $ | 20,438 |
Nine Months Ended September 30, 2023 | Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||||
(in percentages) | Compensation | Non- Compensation | Total | Compensation | Non- Compensation | Total | |||||||||||||||||||||||||||||
Share-based compensation(1) | 2.2 | % | — | 2.2 | % | 2.2 | % | — | 2.2 | % | |||||||||||||||||||||||||
Reorganization and integration costs(2) | 0.6 | % | 0.9 | % | 1.5 | % | 0.6 | % | 1.3 | % | 1.9 | % | |||||||||||||||||||||||
Acquisition expenses(3) | — | 0.1 | % | 0.1 | % | — | 0.3 | % | 0.3 | % | |||||||||||||||||||||||||
Business continuity plan(4) | — | — | — | — | 0.1 | % | 0.1 | % | |||||||||||||||||||||||||||
SEC settlement(5) | — | 3.3 | % | 3.3 | % | — | — | — | |||||||||||||||||||||||||||
Other (income) expense, net | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Total adjustments to adjusted EBITDA margin % | 2.8 | % | 4.3 | % | 7.1 | % | 2.8 | % | 1.7 | % | 4.5 | % | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Asset-based revenue | $ | 143,840 | $ | 128,173 | $ | 412,215 | $ | 409,498 | |||||||||||||||
Spread-based revenue | 37,329 | 21,160 | 112,863 | 30,265 | |||||||||||||||||||
Subscription-based revenue | 3,891 | 3,126 | 11,128 | 9,703 | |||||||||||||||||||
Other revenue | 5,462 | 2,204 | 14,110 | 4,707 | |||||||||||||||||||
Total revenue | 190,522 | 154,663 | 550,316 | 454,173 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Asset-based expenses | 43,092 | 36,476 | 119,870 | 118,429 | |||||||||||||||||||
Spread-based expenses | 8,492 | 2,142 | 23,052 | 3,188 | |||||||||||||||||||
Adjusted employee compensation(1) | 41,224 | 36,841 | 125,891 | 108,939 | |||||||||||||||||||
Adjusted general and operating expenses(1) | 21,118 | 20,509 | 69,654 | 61,873 | |||||||||||||||||||
Adjusted professional fees(1) | 7,209 | 5,186 | 19,218 | 13,850 | |||||||||||||||||||
Adjusted depreciation and amortization(2) | 6,785 | 6,232 | 19,542 | 17,955 | |||||||||||||||||||
Total adjusted operating expenses | 127,920 | 107,386 | 377,227 | 324,234 | |||||||||||||||||||
Interest expense | 2,305 | 1,560 | 6,789 | 4,207 | |||||||||||||||||||
Adjusted other expenses, net(1) | (256) | — | (756) | — | |||||||||||||||||||
Adjusted income before income taxes | 60,553 | 45,717 | 167,056 | 125,732 | |||||||||||||||||||
Adjusted provision for income taxes(3) | 14,532 | 10,744 | 40,093 | 29,548 | |||||||||||||||||||
Adjusted net income | $ | 46,021 | $ | 34,973 | $ | 126,963 | $ | 96,184 | |||||||||||||||
Net income per share attributable to common stockholders: | |||||||||||||||||||||||
Adjusted earnings per share(4) | $ | 0.62 | $ | 0.47 | $ | 1.70 | $ | 1.30 | |||||||||||||||
Weighted average number of common shares outstanding, diluted | 74,695,260 | 73,844,689 | 74,521,370 | 73,783,858 |
Three months ended September 30, 2023 | Three months ended September 30, 2022 | ||||||||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Presentation | GAAP | Adjustments | Adjusted | GAAP | Adjustments | Adjusted | |||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||
Asset-based revenue | $ | 143,840 | $ | — | $ | 143,840 | $ | 128,173 | $ | — | $ | 128,173 | |||||||||||||||||||||||
Spread-based revenue | 37,329 | — | 37,329 | 21,160 | — | 21,160 | |||||||||||||||||||||||||||||
Subscription-based revenue | 3,891 | — | 3,891 | 3,126 | — | 3,126 | |||||||||||||||||||||||||||||
Other revenue | 5,462 | — | 5,462 | 2,204 | — | 2,204 | |||||||||||||||||||||||||||||
Total revenue | 190,522 | — | 190,522 | 154,663 | — | 154,663 | |||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Asset-based expenses | 43,092 | — | 43,092 | 36,476 | — | 36,476 | |||||||||||||||||||||||||||||
Spread-based expenses | 8,492 | — | 8,492 | 2,142 | — | 2,142 | |||||||||||||||||||||||||||||
Employee compensation(1) | 46,613 | (5,389) | 41,224 | 41,589 | (4,748) | 36,841 | |||||||||||||||||||||||||||||
General and operating expenses(1) | 22,714 | (1,596) | 21,118 | 21,667 | (1,158) | 20,509 | |||||||||||||||||||||||||||||
Professional fees(1) | 7,369 | (160) | 7,209 | 5,877 | (691) | 5,186 | |||||||||||||||||||||||||||||
Depreciation and amortization(2) | 8,965 | (2,180) | 6,785 | 7,961 | (1,729) | 6,232 | |||||||||||||||||||||||||||||
Total operating expenses | 137,245 | (9,325) | 127,920 | 115,712 | (8,326) | 107,386 | |||||||||||||||||||||||||||||
Interest expense | 2,305 | — | 2,305 | 1,560 | — | 1,560 | |||||||||||||||||||||||||||||
Other expenses, net(1) | (2,192) | 1,936 | (256) | (11) | 11 | — | |||||||||||||||||||||||||||||
Income before income taxes | 53,164 | 7,389 | 60,553 | 37,402 | 8,315 | 45,717 | |||||||||||||||||||||||||||||
Provision for income taxes(3) | 14,779 | (247) | 14,532 | 7,293 | 3,451 | 10,744 | |||||||||||||||||||||||||||||
Net income | $ | 38,385 | $ | 46,021 | $ | 30,109 | $ | 34,973 |
Nine months ended September 30, 2023 | Nine months ended September 30, 2022 | ||||||||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Presentation | GAAP | Adjustments | Adjusted | GAAP | Adjustments | Adjusted | |||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||
Asset-based revenue | $ | 412,215 | $ | — | $ | 412,215 | $ | 409,498 | $ | — | $ | 409,498 | |||||||||||||||||||||||
Spread-based revenue | 112,863 | — | 112,863 | 30,265 | — | 30,265 | |||||||||||||||||||||||||||||
Subscription-based revenue | 11,128 | — | 11,128 | 9,703 | — | 9,703 | |||||||||||||||||||||||||||||
Other revenue | 14,110 | — | 14,110 | 4,707 | — | 4,707 | |||||||||||||||||||||||||||||
Total revenue | 550,316 | — | 550,316 | 454,173 | — | 454,173 | |||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Asset-based expenses | 119,870 | — | 119,870 | 118,429 | — | 118,429 | |||||||||||||||||||||||||||||
Spread-based expenses | 23,052 | — | 23,052 | 3,188 | — | 3,188 | |||||||||||||||||||||||||||||
Employee compensation(1) | 141,623 | (15,732) | 125,891 | 121,852 | (12,913) | 108,939 | |||||||||||||||||||||||||||||
General and operating expenses(1) | 72,757 | (3,103) | 69,654 | 65,949 | (4,076) | 61,873 | |||||||||||||||||||||||||||||
Professional fees(1) | 21,134 | (1,916) | 19,218 | 17,104 | (3,254) | 13,850 | |||||||||||||||||||||||||||||
Depreciation and amortization(2) | 26,077 | (6,535) | 19,542 | 23,141 | (5,186) | 17,955 | |||||||||||||||||||||||||||||
Total operating expenses | 404,513 | (27,286) | 377,227 | 349,663 | (25,429) | 324,234 | |||||||||||||||||||||||||||||
Interest expense | 6,789 | — | 6,789 | 4,207 | — | 4,207 | |||||||||||||||||||||||||||||
Other expenses, net(1) | 17,385 | (18,141) | (756) | 195 | (195) | — | |||||||||||||||||||||||||||||
Income before income taxes | 121,629 | 45,427 | 167,056 | 100,108 | 25,624 | 125,732 | |||||||||||||||||||||||||||||
Provision for income taxes(3) | 33,145 | 6,948 | 40,093 | 22,440 | 7,108 | 29,548 | |||||||||||||||||||||||||||||
Net income | $ | 88,484 | $ | 126,963 | $ | 77,668 | $ | 96,184 |
Three Months Ended September 30, 2023 | Three Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Compensation | Non- Compensation | Total | Compensation | Non- Compensation | Total | ||||||||||||||||||||||||||||||||
Net income | $ | 38,385 | $ | 30,109 | ||||||||||||||||||||||||||||||||||
Acquisition-related amortization(1) | $ | — | $ | 2,180 | 2,180 | $ | — | $ | 1,729 | 1,729 | ||||||||||||||||||||||||||||
Expense adjustments(2) | 1,101 | 83 | 1,184 | 825 | 1,849 | 2,674 | ||||||||||||||||||||||||||||||||
Share-based compensation | 4,288 | — | 4,288 | 3,923 | — | 3,923 | ||||||||||||||||||||||||||||||||
Other (income) expense, net | — | (263) | (263) | — | (11) | (11) | ||||||||||||||||||||||||||||||||
Tax effect of adjustments(3) | (1,293) | 1,540 | 247 | (1,116) | (2,335) | (3,451) | ||||||||||||||||||||||||||||||||
Adjusted net income | $ | 4,096 | $ | 3,540 | $ | 46,021 | $ | 3,632 | $ | 1,232 | $ | 34,973 |
Nine Months Ended September 30, 2023 | Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Compensation | Non- Compensation | Total | Compensation | Non- Compensation | Total | ||||||||||||||||||||||||||||||||
Net income | $ | 88,484 | $ | 77,668 | ||||||||||||||||||||||||||||||||||
Acquisition-related amortization(1) | $ | — | $ | 6,535 | 6,535 | $ | — | $ | 5,186 | 5,186 | ||||||||||||||||||||||||||||
Expense adjustments(2) | 3,470 | 23,346 | 26,816 | 2,817 | 7,330 | 10,147 | ||||||||||||||||||||||||||||||||
Share-based compensation | 12,262 | — | 12,262 | 10,096 | — | 10,096 | ||||||||||||||||||||||||||||||||
Other (income) expense, net | — | (186) | (186) | — | 195 | 195 | ||||||||||||||||||||||||||||||||
Tax effect of adjustments(3) | (3,776) | (3,172) | (6,948) | (3,035) | (4,073) | (7,108) | ||||||||||||||||||||||||||||||||
Adjusted net income | $ | 11,956 | $ | 26,523 | $ | 126,963 | $ | 9,878 | $ | 8,638 | $ | 96,184 |
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M<;
Cover |
Nov. 06, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Nov. 06, 2023 |
Entity Registrant Name | AssetMark Financial Holdings, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-38980 |
Entity Tax Identification Number | 30-0774039 |
Entity Address, Address Line One | 1655 Grant Street |
Entity Address, Address Line Two | 10th Floor |
Entity Address, City or Town | Concord |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 94520 |
City Area Code | 925 |
Local Phone Number | 521-2200 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common stock, $0.001 par value |
Trading Symbol | AMK |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Amendment Flag | false |
Entity Central Index Key | 0001591587 |
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