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Press Releases – 2010

GLUSKIN SHEFF + ASSOCIATES INC. ANNOUNCES FIRST QUARTER FISCAL 2011 RESULTS

Company Release - 11/04/2010 10:43

TORONTO, Nov. 4 /CNW/ - Gluskin Sheff + Associates Inc. (the "Company") announced today its results for the three months ended September 30, 2010.

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 $0.3 billion from $5.5 billion as at June 30, 2010 to $5.8 billion as at September 30, 2010. This increase is attributable to net additions of $23 million and $292 million in positive investment performance. AUM increased by $0.8 billion to $5.8 billion as at September 30, 2010 from $5.0 billion as at September 30, 2009. This increase in AUM is attributable to net additions of $0.4 billion and positive investment performance of $0.4 billion.

For the three months ended September 30, 2010, Base Management Fees increased to $20.3 million from $17.6 million for the three months ended September 30, 2009, an increase of approximately 16%. The increase is due primarily to the increase in average AUM over the respective periods.

For the three months ended September 30, 2010, Investment and Other Income was $0.4 million versus $0.1 million for the three month period ended September 30, 2009. The increase was primarily due to realized and unrealized gains on seeded investment strategies, and an increase in interest and other income.

Base EBITDA (exclusive of Performance Fees and non-cash expenditures) for the three months ended September 30, 2010 was $10.3 million, up from $9.6 million for the comparable three month period ended September 30, 2009. The increase was primarily attributable to the increase in Base Management Fees, offset by an increase in operating expenses.

Net Income was $6.4 million or $0.22 per common share for the three months ended September 30, 2010.

"Building a pre-eminent wealth management business continues to be our sole focus," said Jeremy Freedman, President & Chief Executive Officer. "We have the most compelling investment platform in Canada for high net worth clients, and we are investing to ensure we continue to be pre-eminent as we grow in years to come. At the same time, we are proud to be implementing our fifth consecutive annual increase in our regular dividend."

<<
    Financial Highlights:

    -------------------------------------------------------------------------
    (unaudited $ '000s)                              3 Months       3 Months
                                                        Ended          Ended
                                                 Sep 30, 2010   Sep 30, 2009
    -------------------------------------------------------------------------

    Assets Under Management ($ in millions)
                                                $       5,849  $       4,981

    Revenue:
      Base Management Fees                      $      20,324  $      17,558
      Performance Fees                                    168          1,012
      Investment & Other Income                           370             46
                                               ------------------------------
    Total Revenue                               $      20,862  $      18,616

    Base EBITDA                                 $      10,336  $       9,550

    Net Income                                  $       6,404  $       5,782

    Basic Earnings per Share                            $0.22          $0.20

    Diluted Earnings per Share                          $0.22          $0.20
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    >>

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: David Morris. Chief Financial Officer, (416) 681-6036

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