Gluskin Sheff + Associates Inc. announces fourth quarter and fiscal 2011 results

TORONTO, Sept. 15, 2011 /CNW/ - Gluskin Sheff + Associates Inc. (the "Company") announced today its results for the three months and the year ended June 30, 2011.

Financial Highlights:

(unaudited, $ '000s except for AUM and per share amounts)   3 Months     3 Months     Year     Year
  Ended     Ended     Ended     Ended
    Jun 30, 2011     Jun 30, 2010     Jun 30, 2011     Jun 30, 2010
                       
                       
Assets Under Management ($ in millions) $ 5,808   $ 5,534   $ 5,808   $ 5,534
                       
Revenue:                      
  Base Management Fees $  20,822   $ 19,769   $ 82,894   $ 75,470
  Performance Fees   27,185     1,899     44,873     47,224
  Investment & Other Income   608     148     2,122     583
Total Revenue $  48,615   $ 21,816   $ 129,889   $ 123,277
                       
Base EBITDA 10,166   $ 8,435   $ 39,807   $ 34,663
                       
Net Income $ 22,153   $ 5,835   $ 49,889   $ 38,436
                       
Basic Earnings per Share   $0.76     $0.20     $1.71     $1.32
                       
Diluted Earnings per Share   $0.75     $0.20     $1.69     $1.30
                       
                       

 

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 $250 million to $5.8 billion as at June 30, 2011 from approximately $6.1 billion as at March 31, 2011.  This decrease is attributable to net withdrawals of $175 million and negative investment performance of $75 million.  AUM increased by $274 million from June 30, 2010 ($5.5 billion) to June 30, 2011 ($5.8 billion). This increase in AUM is attributable to positive investment performance of $640 million and net withdrawals of $366 million.

For the three months ended June 30, 2011, Base Management Fees increased to $20.8 million from $19.8 million for the three months ended June 30, 2010, an increase of 5% due primarily to the increase in average AUM to $5.9 billion from $5.6 billion. For the year ended June 30, 2011, Base Management Fees increased to $82.9 million from $75.5 million for the year ended June 30, 2010, an increase of 10% due primarily to the increase in average AUM to $5.9 billion from $5.3 billion.

Performance Fees for the three months ended June 30, 2011 were $27.2 million, compared to $1.9 million for the three months ended June 30, 2010.  Performance Fees for the year ended June 30, 2011 decreased to $44.9 million from $47.2 million for the year ended June 30, 2010.  For fiscal 2011, Performance Fees relating to the performance year ended December 31, 2010 were $14.9 million (2010 - $42.2 million) and Performance Fees relating to the performance year ended June 30, 2011 were $23.6 million (2010 - $1.3 million), with additional Performance Fees earned from closed accounts during the year of $6.4 million (2010 - $3.7 million).

Net Income was $22.2 million or $0.76 per common share ($0.75 per common share diluted) for the three months ended June 30, 2011 up from $5.8 million or $0.20 per common share, basic and diluted, for the three months ended June 30, 2010.  Net Income was $49.9 million or $1.71 per common share ($1.69 per common share diluted) for the year ended June 30, 2011, up from $38.4 million or $1.32 per common share ($1.30 per common share diluted) for the year ended June 30, 2010.

"Global financial markets continued to face significant challenges in the final three months of the fiscal year, with concerns over sovereign debt and the pace of the global economy spurring both heightened volatility and risk," commented Jeremy Freedman, President & Chief Executive Officer. "Safety and income at a reasonable price have been a long-standing focus across many of our investment strategies, which in the current environment we believe will continue to provide the appropriate balance of risk and reward."

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.


SOURCE Gluskin Sheff + Associates Inc.

For further information:

David R. Morris
Chief Financial Officer and Secretary
1.416.681.6036


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