Sprott Inc. announces 2012 second quarter results
09 August 2012 - 9:00PM
PR Newswire (Canada)
TORONTO, Aug. 9, 2012 /CNW/ - Sprott Inc. ("Sprott" or the
"Company") today announced its financial results for the three and
six months ended June 30, 2012. Q2 2012 Overview -- Assets
Under Management ("AUM") were $8.5 billion as at June 30, 2012,
compared to $9.3 billion as at June 30, 2011 and $9.7 billion as at
March 31, 2012 -- Assets Under Administration ("AUA") were $3.8
billion as at June 30, 2012, compared to $5.3 billion as of June
30, 2011 -- Management Fees were $28.1 million, a decrease of 24.6%
compared with the three months ended June 30, 2011 -- Base EBITDA
was $10.4 million ($0.06 per share) compared with $18.1 million
($0.11 per share) for the three months ended June 30, 2011, a
decrease of 42.6% -- EBITDA was $6.4 million ($0.04 per share),
compared with $14.6 million ($0.09 per share) for the three months
ended June 30, 2011, a decrease of 56.0% -- Net income was $0.7
million ($0.00 per share) for the three months ended June 30, 2012,
a decrease of 90.2% from $7.5 million ($0.04 per share) in the
comparable quarter of 2011 -- Launched the Sprott Enhanced Equity
Class and Sprott Enhanced Balanced Fund Subsequent events: --
Finalized acquisition of Toscana Capital Corporation and Toscana
Energy Corporation (collectively, the "Toscana Companies") --
Closed acquisition of Flatiron Capital Management Partners
("Flatiron") -- Completed US $220 million follow-on offering of
Sprott Physical Silver Trust Units -- Launched the Sprott Flatiron
Yield Trust "We continue to build our business and recently
completed the acquisitions of Flatiron and the Toscana Companies,"
said Peter Grosskopf, CEO of Sprott Inc. "Together, these
transactions further diversify our investment capabilities and
product offerings through the addition of top convertible
arbitrage and energy yield specialists, allowing us to launch
value-added yield products that are currently in high demand." "Our
investment performance was disappointing through the first six
months of the year and this negatively impacted our financial
results," continued Mr. Grosskopf. "While our macro-economic
assessment has been accurate, this has yet to manifest itself in
improved performance for most of our funds. It appears likely that
central banks will again, and possibly on a continuous basis, be
mandated to intervene in the markets in an effort to stimulate
growth. We therefore remain committed to our current positioning
and believe that both our precious metals positions and our
lower-volatility strategies will outperform in the second half of
the year." For the three months ended For the six months ended June
30, June 30, ($ in millions) 2012 2011 2012 2011 AUM, beginning of
9,683 9,678 9,137 8,545 period Net sales (158 565 387 825
(redemptions) ) Business — — — 695 acquisition Market value (1,040
(951 (1,039 (773 depreciation of portfolios ) ) ) ) AUM, end of
period 8,485 9,292 8,485 9,292 Assets Under Management At
June 30, 2012, AUM decreased by 8.7% to $8.5 billion, from
$9.3 billion at June 30, 2011. Net redemptions for the three
months ended June 30, 2012 were $158 million, which together
with $1.0 billion in market value depreciation resulted in the $1.2
billion decrease in AUM for the quarter. Average AUM for the three
months ended June 30, 2012 was $9.0 billion compared with $9.9
billion for the three months ended June 30, 2011, a decrease
of 9.3%. Income Statement Total revenue for the three months ended
June 30, 2012 decreased by 30.2% to $27.4 million, from $39.3
million in 2011. For the six months ended June 30, 2012,
total revenue decreased by 8.9% to $71.8 million from $78.8 million
in the first six months of 2011. Management fees decreased by 24.6%
during the quarter to $28.1 million, from $37.2 million for the
three months ended June 30, 2011 as average AUM decreased over
the prior year period. For the first six months of 2012, management
fees decreased by 16.1% to $61.1 million from $72.8 million in the
first half of 2011. The decrease in management fees is
attributable to both the lower average AUM for the three and
six-month periods ended June 30, 2012 as well as an increase in
lower margin offerings such as the physical bullion trusts and
fixed-income products. Losses from proprietary investments, which
include investments in funds that Sprott manages, an investment in
Sprott Resource Lending Corp., certain other resource-related
stocks and warrants, and bullion, totaled $4.0 million for the
three months ended June 30, 2012, essentially the same as the
quarter ended June 30, 2011. For the six months ended June 30,
2012, gains from proprietary investments totaled $0.3 million,
compared with losses of $3.6 million during the first six months of
2011. Commission revenue for the three months ended June 30,
2012, was $2.1 million compared to $4.9 million during the three
months ended June 30, 2011. For the six months ended June 30,
2012, commission revenue decreased by $0.1 million to $7.8 million
from $7.9 million during the prior year period. Other income
increased by $0.7 million in the three months ended June 30,
2012 to $1.3 million from $0.6 million in the second quarter of
2011. For the six months ended June 30, 2012, other income
increased by $1.6 million to $2.6 million from $1.0 million during
the prior year period. Total expenses for the three months ended
June 30, 2012 were $26.2 million, a decrease of $1.9 million
or 6.6%, from $28.1 million during the same period last year .
Total expenses for the first six months of 2012 were $49.4 million,
a decrease of 6.1% from $52.6 million in the six months ended June
30, 2011. Base EBITDA, which excludes the impact of income taxes
and certain non-cash expenses and gains or losses on proprietary
investments, decreased by 42.6% to $10.4 million ($0.06 per share)
for the three months ended June 30, 2012, compared with $18.1
million ($0.11 per share) in the second quarter of 2011. For the
six months ended June 30, 2012, Base EBITDA decreased by 24.3% to
$26.5 million from $35.1 million in the first half of 2011. Net
income for the three months ended June 30, 2012 decreased by
90.2% to $0.7 million ($0.00 per share) from $7.5 million ($0.04
per share) in the second quarter of 2011. Net income for the first
six months of 2011 was $17.7 million ($0.10 per share), a 2.2%
decrease as compared with the $18.1 million ($0.11 per share)
earned during the first half of 2011. Dividends On May 8,
2012, a dividend of $0.03 per common share was declared for the
quarter ended March 31, 2012. This dividend was paid on June 1,
2012 to shareholders of record at the close of business on May 18,
2012. In August 2012, a dividend of $0.03 per common share was
declared for the quarter ended June 30, 2012. Conference Call and
Webcast A conference call and webcast will be held today, Thursday,
August 9, 2012, at 10:00am ET to discuss the Company's financial
results. To participate in the call, please dial 647-427-7450 or
1-888-231-8191 ten minutes prior to the scheduled start of the
call. A taped replay of the conference call will be available until
Thursday, August 16, 2012 by calling 416-849-0833 or
1-855-859-2056, reference number 12659963. The conference call will
be webcast live at www.sprottinc.com and www.newswire.ca. *Non-IFRS
Financial Measures This press release includes financial terms
(including AUM, EBITDA, Base EBITDA, Cash Flow from Operations 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. Forward-Looking Statements 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 27, 2012.
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.
Sprott Inc. CONTACT: Investor contact
information:Glen WilliamsDirector of CommunicationsSprott Inc.(416)
943-4394gwilliams@sprott.com
Copyright
Sprott (TSX:SII)
Historical Stock Chart
From Jun 2024 to Jul 2024
Sprott (TSX:SII)
Historical Stock Chart
From Jul 2023 to Jul 2024