Hamilton Lane Incorporated (NASDAQ:HLNE) Q2 2020 Earnings Conference Call - Final Transcript

Nov 05, 2019 • 11:00 am ET


Hamilton Lane Incorporated (NASDAQ:HLNE) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning. My name is James and I will be your conference operator today. At this time, I would like to welcome everyone to the Hamilton Lane Incorporated Second Quarter Fiscal Year 2020 Earnings Conference. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]

Thank you. I'd like to hand the call over to John Oh, Investor Relations Manager. You may begin your conference.

John Oh

Thank you, James. Good morning and welcome to the Hamilton Lane Q2 fiscal 2020 earnings call.

Today I will be joined by Mario Giannini, CEO; Erik Hirsch, Vice Chairman; Jeff Meeker, Chief Client Officer; and Randy Stilman, CFO. Before we discuss the quarter's results, we want to remind you that we will be making forward-looking statements based on our current expectations for the business. These statements are subject to risks and uncertainties that may cause the actual results to differ materially. For a discussion of these risks, please review the risk factors included in the Hamilton Lane fiscal 2019 10-K and subsequent reports we file with the SEC.

We will also be referring to non-GAAP measures that we view as important in assessing the performance of our business. Reconciliation of those non-GAAP measures to GAAP can be found in the earnings presentation materials, which we will be referencing throughout the call and will also be shown on the webcast. These materials are available on the public Investor Relations section of the Hamilton Lane website. Our detailed financial results we've made available when our 10-Q was filed. Please note that nothing on this call represents an offer to sell or solicitation to purchase interest in any of Hamilton Lane's products.

Beginning on Slide 3. Year-to-date, our management and advisory fee revenue grew approximately 15% relative to the prior-year period. Over the same period, we grew our fee-related earnings by 14%. This translated into year-to-date non-GAAP EPS of $0.94, based on approximately $50 million of adjusted net income and GAAP EPS of $0.98 based on approximately $27 million of GAAP net income. We have again declared a dividend of $0.275 per share this quarter, which keeps us on track with the 29% increase over last fiscal year and equates to $1.10 per share for fiscal year 2020.

With that, I'll now turn the call over to Erik.

Erik Hirsch

Thank you, John, and good morning everyone.

Turning to Slide 4, this should be familiar. It highlights our total asset footprint, which we define as the sum of our AUM, assets under management and AUA assets under advisement. Total asset footprint for the quarter stood at approximately $481 billion and represents a 6% increase to our footprint year-over-year. Growth in AUM came across client type, size of client, geographic region and came from both our specialized funds and our separate accounts. We continue to focus on growing and winning across both lines of business.

Moving to AUA. We also saw growth come across our client type and