Gluskin Sheff + Associates Inc. announces first quarter fiscal 2012 results

TORONTO, Nov. 2, 2011 /CNW/ - Gluskin Sheff + Associates Inc. (the "Company") announced today its results for the three months ended September 30, 2011.

Financial Highlights:
 
(unaudited, $ '000s except for AUM)
 3 Months 
Ended 
3 Months
Ended
  Sep 30, 2011  Sep 30, 2010
Assets Under Management ($ in millions)  $ 5,283 $ 5,849
     
Revenue:
    Base Management Fees  $ 19,302 $ 20,324
    Performance Fees   281 168
    Investment and Other Income 777 370
Total Revenue  $ 20,360 $ 20,862
     
Base EBITDA  $ 9,042  $ 9,706
     
Net Income  $ 5,458 $ 6,404
     
Basic and Diluted Earnings per Share  $ 0.19 $ 0.22

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 decreased $525 million from $5.8 billion as at June 30, 2011 to $5.3 billion as at September 30, 2011.  This decrease is attributable to negative investment performance of $413 million and net withdrawals of $112 million.  AUM decreased by $566 million from September 30, 2010 ($5.8 billion) to September 30, 2011 ($5.3 billion). This decrease in AUM is attributable to negative investment performance of $65 million and net withdrawals of $501 million.

For the three months ended September 30, 2011, Base Management Fees decreased to $19.3 million from $20.3 million for the three months ended September 30, 2010, a decrease of 5% due primarily to the decrease in average AUM to $5.5 billion from $5.7 billion.

Net Income was $5.5 million or $0.19 per common share, basic and diluted, for the three months ended September 30, 2011 down from $6.4 million or $0.22 per common share, basis and diluted, for the three months ended September 30, 2010.

"Uncertainty was the defining characteristic of global equity markets in the first three months of our fiscal year, and will likely continue to be the defining characteristic for the foreseeable future," commented Jeremy Freedman, President & Chief Executive Officer. "Ongoing debt issues in Europe, mounting evidence of a protracted global economic slowdown, potential gridlock in Washington pending the 2012 elections and uncertainty over China's ability to continue to grow at a prudent pace are all contributing to the present uncertainty, and a broader-than-usual array of potential outcomes.

As the world continues to work through the many problems afflicting both capital markets and the financial system itself, we remain squarely focused on finding and investing in securities that in a low-yield world provide income, stability and capital protection - along with ensuring our asset mix is best positioned to proactively provide strong, risk-adjusted returns for our clients."

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-IFRS 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 International Financial Reporting Standards (IFRS).  These non-IFRS measures do not have any standardized meanings prescribed by IFRS and  should not be considered alternatives to net income or any other measure of performance determined in accordance with IFRS.  Therefore, these non-IFRS measures are unlikely to 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 and on the SEDAR website located at www.sedar.com.

SOURCE Gluskin Sheff + Associates Inc.

For further information:

David R. Morris
Chief Financial Officer and Secretary
1.416.681.6036


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