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Press Releases – 2009

Gluskin Sheff + Associates Inc. announces third quarter fiscal 2009 results
Company Release - 05/07/2009 17:20

TORONTO, May 7 /CNW/ - Gluskin Sheff + Associates Inc. (the "Company") announced today its results for the three and nine month periods ended March 31, 2009.

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 by approximately $0.2 billion from $3.7 billion as at December 31, 2008 to $3.9 billion as at March 31, 2009. This increase is primarily attributable to net additions. AUM decreased by approximately $1.2 billion from March 31, 2008 ($5.1 billion) to March 31, 2009 ($3.9 billion). This decrease in AUM is attributable to net additions of approximately $87 million and approximately $1.3 billion in negative investment performance.

For the three months ended March 31, 2009, Base Management Fees decreased to approximately $14.3 million from $19.8 million for the three months ended March 31, 2008, a decrease of approximately 28%. For the nine months ended March 31, 2009 Base Management Fees decreased to approximately $48.0 million from $61.6 million or approximately 22% compared to the nine month period ended March 31, 2008. These decreases are due primarily to the decrease in AUM over the respective periods.

For the three months ended March 31, 2009, Investment and Other Income was approximately $0.1 million versus $0.5 million for the three month period ended March 31, 2008. For the nine month period ended March 31, 2009, Investment and Other Income was a loss of approximately $1.0 million versus income of $2.3 million for the nine month period ended March 31, 2008. The decreases were primarily due to losses on seeded investment strategies offset by the interest earned on cash in the bank.

Base EBITDA (exclusive of Performance Fees and non-cash expenditures) for the three months ended March 31, 2009 was approximately $7.4 million, down from $11.7 million for the comparable three month period ended March 31, 2008. For the nine months ended March 31, 2009 Base EBITDA was $24.5 million, compared to $38.3 million for the nine months ended March 31, 2008. These decreases were primarily attributable to the decline in Base Management Fees.

Net Income was $4.1 million or $0.14 per common share for the third quarter ended March 31, 2009. For the nine months ended March 31, 2009 Net Income was $15.4 million or $0.53 per common share.

"Notwithstanding considerable efforts on the part of governments and central banks around the world, the first two months of 2009 saw continuing significant declines in the equity markets, much of which were erased in the March rally" commented Gerald Sheff, Chairman and Chief Executive Officer.

"Our defensive posture has served us well during these markets and our outlook and the positioning of our investment portfolios remains cautious and defensive. Looking ahead, with the addition of David Rosenberg as Chief Economist and Strategist and the recent appointment of Brian Ginsler as Chief Operating Officer, we continue to build our team and prudently manage the business to ensure that we remain well-positioned to capitalize on the various opportunities presented by changing market conditions."

The Company also announced that Senator Hugh Segal tendered his resignation as a director of the Company, effective March 3, 2009. The Board of Directors and the Company thank Senator Segal for his service and wish him well in his future endeavours.

    Financial Highlights:

    (unaudited 000's,
     except for                              3 Months   3 Months   9 Months   9 Months
     share amounts)                          Ended      Ended      Ended      Ended
                                                       Mar 31,    Mar 31,    Mar 31,    Mar 31,
                                                           2009       2008       2009       2008

    Assets Under Management
     ($ in millions)                           $  3,858   $  5,116   $  3,858   $  5,116

      Base Management Fees          $ 14,309   $ 19,793   $ 48,040   $ 61,641
      Performance Fees                            11          -              3,200     13,164
      Investment & Other Income
       (Loss)                                               58        481     (1,057)     2,292
    Total Revenue                          $ 14,378   $ 20,274   $ 50,183   $ 77,097

    Base EBITDA                           $  7,397   $ 11,735   $ 24,499   $ 38,306

    Net Income                               $  4,098   $  6,511   $ 15,444   $ 28,221

    Basic Earnings per Share          $0.14      $0.23      $0.53         $0.98

    Diluted Earnings per Share        $0.14      $0.22      $0.53         $0.96

The Company's full financial statements and Management's Discussion and Analysis can be found on the Company's website at 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 and is one of the largest alternative investment managers 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 or at 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-GAAP 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 Canadian generally accepted accounting principles (GAAP). These non-GAAP measures do not have any standardized meanings prescribed by GAAP and should not be considered alternatives to net income or any other measure of performance determined in accordance with GAAP. Therefore, these non-GAAP measures are unlikely to be comparable to similar measures presented by other issuers. For additional information regarding the Company's use of non-GAAP measures, including the calculation of these measures, please refer to the "Non-GAAP 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

Contact: Valerie Barker, Chief Financial Officer and Secretary, (416) 681-6002

    David Rosenberg

    Chief Economist & Strategist


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