TORONTO, May 8, 2013 /CNW/ - Sprott Inc. (TSX: SII) ("Sprott" or the
"Company") today announced its financial results for the three months ended
Q1 2013 Overview
-- Assets Under Management ("AUM") were $9.1 billion as at
March 31, 2013, compared to $9.7 billion as at March 31, 2012
and $9.9 billion as at December 31, 2012
-- Assets Under Administration ("AUA") were $3.3 billion as at
March 31, 2013, compared to $4.6 billion as at March 31, 2012
and $3.7 billion as at December 31, 2012
-- Management Fees were $26.0 million, a decrease of 21.3%
compared with the three months ended March 31, 2012
-- EBITDA was $10.4 million ($0.06 per share), compared with $16.2
million ($0.10 per share) for the three months ended March 31,
2012, a decrease of 35.6%
-- Net income was $2.1 million ($0.01 per share) for the three
months ended March 31, 2013, a decrease of 87.7% from $16.9
million ($0.10 per share) in the three months ended March 31,
-- Named John Wilson and Scott Colbourne Co-Chief Investment
Officers of Sprott Asset Management LP
-- Completed non-brokered private placement with an institutional
investor for gross proceeds of $25 million and seeded Sprott
Macro Managers Fund
-- Resource Capital Investment Corporation raised US$35 million in
a new fixed-term limited partnership
-- Signed joint venture agreement to launch new global mining fund
with Zijin Mining Group Co., Ltd.
"The first quarter and subsequent month have continued to be challenging for
Sprott and our strategies concentrated on investments in precious metals and
their related equities," said Peter Grosskopf, Chief Executive Officer of
Sprott. "While we remain confident that this positioning will be rewarded with
much better performance once markets become less comfortable with the results
of quantitative easing, we also continue to build other areas of our firm to
incorporate a broader range of investment strategies. We are pleased with the
growth of our enhanced equity, private equity and lending and fixed income
"One of our priorities is to make our products more attractive to
institutional investors," continued Mr. Grosskopf. "During the first quarter,
we took an important step in this process with the launch of our first
institutionally-focused hedge fund, which will draw on the combined strengths
of our organization."
"We have also recently increased our international presence through an
agreement to launch a global mining fund with Zijin Mining Co., Ltd., one of
China's largest gold and copper miners," added Mr. Grosskopf. "Our global
brand positioning has led to a number of new opportunities to co-invest with
international partners and we expect this to become a growing part of our
business going forward."
For the three
($ in millions) 2013 2012
AUM, beginning of period 9,931 9,137
Net sales (redemptions) (274) 540
Market value appreciation (depreciation) of (547) 6
AUM, end of period 9,110 9,683
Assets Under Management
At March31, 2013, AUM decreased by 5.9% to $9.1 billion from $9.7 billion at
Net redemptions for the three months ended March31, 2013 were $0.3 billion.
Collectively, the Company's other Mutual Funds, Managed Accounts and Domestic
Alternative Investment Strategies experienced net redemptions of approximately
$0.2 billion for the three months ended March31, 2013. The Offshore Funds
collectively, had redemptions resulting in net outflows for the three months
ended March31, 2013 of approximately $49 million or 25.6% of offshore AUM at
the beginning of the year. The launch of Resource Capital Investment
Corporation added $35 million to AUM.
Average AUM for the three months ended March31, 2013 was $9.5 billion
compared with $10.1 billion for the three months ended March31, 2012, a
decrease of 6%.
Total revenue for the three months ended March31, 2013, decreased by 37.9%
to $27.6 million from $44.4 million for the three months ended March31, 2012.
For the three months ended March31, 2013, management fees decreased by 21.3%
to $26.0 million from $33.0 million in the three months ended March31,
2012. The decrease in management fees is primarily attributable to both the
lower average AUM for the three months ended March31, 2013 as well as an
increase in lower fee products such as the physical bullion trusts and
Losses from proprietary investments, which include investments in products
that Sprott manages, certain other resource-related stocks and warrants, and
bullion, totaled $3.0 million, compared with gains of $4.2 million in the
three months ended March31, 2012.
Commission revenue for the three months ended March31, 2013, decreased by
$3.8 million to $1.9 million from $5.7 million during the three months ended
Total expenses for the three months ended March31, 2013 were $23.7 million,
an increase of 2.3% from $23.2 million in the three months ended March31,
EBITDA, which excludes the impact of income taxes and certain non-cash
expenses, decreased by 35.6% to $10.4 million from $16.2 million in the three
months ended March31, 2012.
Net income for the three months ended March31, 2013 was $2.1 million ($0.01
per share), compared with $16.9 million ($0.10 per share) earned during the
three months ended March31, 2012.
On March 26, 2013, a dividend of $0.03 per common share was declared for the
quarter ended December 31, 2012. The dividend was paid on April 23, 2013 to
shareholders of record at the close of business on April 8, 2013.
On May 7, 2013, a dividend of $0.03 per common share was declared for the
quarter ended March 31, 2013.
Conference Call and Webcast
A conference call and webcast will be held today, Wednesday, May 8, 2013 at
11:00am ET to discuss the Company's financial results. To participate in the
call, please dial 1-877-856-6014 ten minutes prior to the scheduled start of
the call and either provide the name of the call or enter reference number
63961026. A taped replay of the conference call will be available until
Tuesday, May 14, 2013 by calling 416-849-0833 or 1-855-859-2056, reference
The conference call will be webcast live at www.sprottinc.com and
*Non-IFRS Financial Measures
This press release includes financial terms (including AUM, AUA, EBITDA and
net sales) 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 should not be considered
alternatives to performance measures determined in accordance with IFRS and
may not 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 at
www.sprottinc.com and on SEDAR at www.sedar.com.
This release contains "forward-looking statements" which reflect the current
expectations of the Company. These statements reflect management's current
beliefs with respect to future events and are based on information currently
available to management. Forward-looking statements involve significant known
and unknown risks, uncertainties and assumptions. Many factors could cause
actual results, performance or achievements to be materially different from
any future results, performance or achievements that may be expressed or
implied by such forward-looking statements including, without limitation,
those listed under the heading "Risk Factors" in the Company's annual
information form dated March 26, 2013. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking statements prove incorrect, actual results, performance or
achievements could vary materially from those expressed or implied by the
forward-looking statements contained in this release. Although the
forward-looking statements contained in this release are based upon what the
Company believes to be reasonable assumptions, the Company cannot assure
investors that actual results, performance or achievements will be consistent
with these forward-looking statements. These forward-looking statements are
made as of the date of this release and the Company does not assume any
obligation to update or revise them to reflect new events or circumstances.
About Sprott Inc.
Sprott Inc. is a leading independent asset manager dedicated to achieving
superior returns for its clients over the long term. The Company currently
operates through four business units: Sprott Asset Management LP, Sprott
Private Wealth LP, Sprott Consulting LP, and Sprott U.S. Holdings Inc.
Sprott Asset Management is the investment manager of the Sprott family of
mutual funds and hedge funds and discretionary managed accounts; Sprott
Private Wealth provides wealth management services to high net worth
individuals; and Sprott Consulting provides management, administrative and
consulting services to other companies. Sprott U.S. Holdings Inc. includes
Sprott Global Resource Investments Ltd, Sprott Asset Management USA Inc., and
Resource Capital Investments Corporation. Sprott Inc. is headquartered in
Toronto, Canada, and is listed on the Toronto Stock Exchange under the symbol
"SII". For more information on Sprott Inc., please visit www.sprottinc.com.
Investor contact information:
Director of Communications
SOURCE: Sprott Inc.
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