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Gluskin Sheff + Associates Inc. Announces First Quarter Fiscal 2013 Results


Gluskin Sheff + Associates Inc. Announces First Quarter Fiscal 2013 Results

TORONTO, Nov. 8, 2012 /CNW/ - Gluskin Sheff + Associates Inc. (the "Company") announced today its results for the three months ended September 30, 2012.

Financial Highlights:


                                              

(unaudited, $ '000s except for AUM and per                       
share

amounts)                                      3 Months     3 Months
                                                Ended        Ended
                                           Sep 30, 2012 Sep 30, 2011

Assets Under Management ($ in millions)    $      5,640 $      5,283
    Revenue:

  Base Management Fees                     $     18,468 $     19,302

  Performance Fees                                1,096          281

  Investment & Other Income                         750          777

Total Revenue                              $     20,314 $     20,360
                                                           

Base EBITDA                                $      9,022 $      9,042
                                                           

Net Income                                 $      5,946 $      5,458
                                                           

Basic Earnings per Share                   $       0.21 $       0.19
                                                           

Diluted Earnings per Share                 $       0.20 $       0.19

The Company's revenues are derived from Base Management Fees, calculated as a 
percentage of Assets Under Management ("AUM"), Performance Fees, which are 
earned when the Company exceeds pre-specified rates of return, and Investment 
and Other Income.

During the quarter, AUM increased $188 million from approximately $5.5 billion 
as at June 30, 2012 to $5.6 billion as at September 30, 2012.  This increase 
is attributable to positive investment performance of $236 million, offset in 
part by net withdrawals of $48 million.  AUM increased by $357 million from 
September 30, 2011 ($5.3 billion) to September 30, 2012 ($5.6 billion). This 
increase in AUM is attributable to positive investment performance of $469 
million, offset in part by net withdrawals of $112 million.

For the three months ended September 30, 2012, Base Management Fees decreased 
to $18.5 million from $19.3 million for the three months ended September 30, 
2011, a decrease of 4% due primarily to the decrease in average Base 
Management Fee percentage from 1.39% to 1.32%.  This decline is substantially 
attributable to our having shifted assets out of our more economically 
sensitive Canadian Equity model into our more defensive Premium Income model, 
a shift that significantly benefited clients in terms of portfolio returns.

Net Income was $5.9 million or $0.21 per basic common share ($0.20 diluted), 
for the three months ended September 30, 2012, up from $5.5 million or $0.19 
per common share, basis and diluted, for the three months ended September 30, 
2011.

"We are pleased with the strong risk-adjusted returns we have generated for 
our clients this quarter and thus far this year," commented Jeremy Freedman, 
President & Chief Executive Officer. "Our Firm is making great progress, 
including the successful application of more tactical approaches to our asset 
mix and the positioning of our portfolios, along with the upcoming 
introduction of the new GS+A Tactical Fixed Income Fund. We have also enhanced 
our focus on the Firm's costs, as we strive to operate more efficiently in all 
areas of our business. We are excited about the ways these improvements are 
benefitting our clients and our shareholders."

The Company's full financial statements and Management's Discussion and 
Analysis can be found on the Company's website at www.gluskinsheff.com and on 
www.sedar.com.

Founded in 1984, Gluskin Sheff + Associates Inc. is one of Canada's 
pre-eminent wealth management firms serving high net worth private clients and 
institutional investors. Gluskin Sheff offers equity and fixed income 
investment portfolios in addition to being one of the largest managers of 
alternative investments in Canada. The Company's Subordinate Voting Shares are 
listed on the Toronto Stock Exchange under the symbol "GS". For more 
information about the Company, please visit our website at 
www.gluskinsheff.com.

This press release may contain forward-looking statements relating to Gluskin 
Sheff + Associates Inc.'s business and the environment in which it operates. 
These statements are based on the Company's expectations, estimates, forecasts 
and projections. They are not guarantees of future performance and involve 
risks and uncertainties that are difficult to control or predict. These risks 
and uncertainties are discussed in the Company's regulatory filings available 
on the Company's website at www.gluskinsheff.com or at www.sedar.com. Actual 
outcomes and results may differ materially from those expressed in these 
forward-looking statements. Readers, therefore, should not place undue 
reliance on any such forward-looking statements. Further, a forward-looking 
statement speaks only as of the date on which such statement is made. The 
Company undertakes no obligation to publicly update any such statement or to 
reflect new information or the occurrence of future events or circumstances.

Non-IFRS Measures

Included in this press release are certain financial terms (including Base 
EBITDA and AUM) that the Company utilizes to assess the financial performance 
of its business that are not measures recognized under International Financial 
Reporting Standards (IFRS).  These non-IFRS measures do not have any 
standardized meanings prescribed by IFRS and  should not be considered 
alternatives to net income or any other measure of performance determined in 
accordance with IFRS.  Therefore, these non-IFRS measures are unlikely to be 
comparable to similar measures presented by other issuers. For additional 
information regarding the Company's use of non-IFRS measures, including the 
calculation of these measures, please refer to the "Non-IFRS financial 
measures" section of the Company's Management's Discussion and Analysis and 
its financial statements available on the Company's website and on the SEDAR 
website located at www.sedar.com.

 

David R. Morris Chief Financial Officer and Secretary 1.416.681.6036

SOURCE: Gluskin Sheff + Associates Inc.

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/November2012/08/c6241.html

CO: Gluskin Sheff + Associates Inc.
ST: Ontario
NI: FIN ERN 

-0- Nov/08/2012 15:13 GMT

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