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.
(unaudited, $ '000s except for AUM and per
amounts) 3 Months 3 Months
Sep 30, 2012 Sep 30, 2011
Assets Under Management ($ in millions) $ 5,640 $ 5,283
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,
"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
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
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.
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.
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-0- Nov/08/2012 15:13 GMT
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