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Press Releases – 2010

Gluskin Sheff + Associates Inc. announces second quarter fiscal 2010 results
Company Release - 02/04/2010 17:16

TORONTO, Feb. 4 /CNW/ - Gluskin Sheff + Associates Inc. (the "Company") announced today its results for the three months ended December 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 $0.4 billion from $5.0 billion as at September 30, 2009 to $5.35 billion as at December 31, 2009. This increase is attributable to net additions of approximately $144 million and approximately $225 million in positive investment performance. AUM increased by approximately $1.7 billion from December 31, 2008 ($3.7 billion) to December 31, 2009 ($5.35 billion). This increase in AUM is attributable to net additions of approximately $0.8 billion and approximately $0.9 billion in positive investment performance.

For the three months ended December 31, 2009, Base Management Fees increased to approximately $18.8 million from $14.6 million for the three months ended December 31, 2008, an increase of approximately 28%. These increases are due primarily to the increases in average AUM over the respective periods.

For the three months ended December 31, 2009, Performances Fee (before amounts due to sub-advisors) increased to approximately $44.2 million from $3.1 million for the three month period ended December 31, 2008, an increase of approximately $41.1 million.

Base EBITDA (exclusive of Performance Fees, Performance Fee related bonuses, sub-advisory fees on Performance Fees, post-retirement obligations and non-cash expenditures) for the three months ended December 31, 2009 was approximately $9.7 million, up from $6.9 million for the comparable three month period ended December 31, 2008.

Net Income was $21.6 million or $0.74 per common share for the three months ended December 31, 2009 up from $5.1 million or $0.18 per common share for the three months ended December 31, 2008.

"In the context of the extreme volatility of the last two years, we are pleased with the performance of the Company", commented Gerald Sheff, Co-Founder, Chairman & Chief Executive Officer. "As we turn our attention to 2010, we are confident that the Company is well-positioned to capitalize on opportunities that present themselves."

<<
    Financial Highlights:

    (unaudited, $ `000s)                               3 Months           3 Months
                                                                    Ended                Ended
                                                                    Dec. 31, 2009    Dec. 31, 2008
    --------------------------------------------------------------------------------------
    Assets Under Management ($ in millions)    $  5,350     $ 3,672

    Revenue:
      Base Management Fees                               $  18,777     $ 14,629
      Performance Fees                                        44,234          3,147
      Investment and Other Income (Loss)                 268         (143)
                                               ------------------------------
                                               ------------------------------
    Total Revenue                                          $   63,279         $ 17,633

    Base EBITDA                                           $     9,671         $  6,860

    Net Income                                                $    21,580         $  5,142
                     
    Basic Earnings per Share                            $     0.74          $   0.18

    Diluted Earnings per Share                         $      0.73       $    0.18

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    >>

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-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 www.sedar.com.

 

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

 
 

    David Rosenberg

    Chief Economist & Strategist

     

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