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

TORONTO, May 9 /CNW/ - Gluskin Sheff + Associates Inc. (the "Company") announced today its results for the three months ended March 31, 2011.

Financial Highlights:

(unaudited, $ '000s except for AUM)
                                    
             
3 Months
Ended
Mar 31, 2011
  3 Months
Ended
Mar 31, 2010
                                                                                        
Assets Under Management ($ in millions)  $   6,058   $     5,578
       
Revenue:      
  Base Management Fees           $   20,724   $   19,366
  Performance Fees                    1,701   79
  Investment and Other Income           377   121
Total Revenue                   $   22,802   $   19,566
       
Base EBITDA                     $   10,818   $   10,066
       
Net Income                      $    7,225   $    5,239
       
Basic Earnings per Share        $     0.25   $     0.18
       
Diluted Earnings per Share      $     0.24   $     0.17

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 $49 million from approximately $6.0 billion as at December 31, 2010 to $6.1 billion as at March 31, 2011.  This increase is attributable to positive investment performance of $165 million and net withdrawals of $116 million.  AUM increased by $480 million from March 31, 2010 ($5.6 billion) to March 31, 2011 ($6.1 billion). This increase in AUM is attributable to positive investment performance of $507 million and net withdrawals of $27 million.

For the three months ended March 31, 2011, Base Management Fees increased to $20.7 million from $19.4 million for the three months ended March 31, 2010, an increase of 7% due primarily to the increase in average AUM to $6.0 billion from $5.5 billion.

Net Income was $7.2 million or $0.25 per common share ($0.24 per common share diluted) for the three months ended March 31, 2011 up from $5.2 million or $0.18 per common share ($0.17 per common share diluted) for the three months ended March 31, 2010.

"Global financial markets faced a number of trying challenges in the first three months of the year," said Jeremy Freedman, President and Chief Executive Officer.  "Floods in Australia, unrest in the Middle East and North Africa, ongoing sovereign debt concerns in Europe and the devastating earthquake, tsunami and resulting nuclear issues in Japan all played a role in injecting additional uncertainty in global financial markets.  Against this backdrop, we continue to follow a long-term approach to our investment strategies.  We continue to balance levels of risk and reward.  Our entire team remains focused on providing strong, risk adjusted returns to our clients over investment cycles, and delivering outstanding service.  Achieving success for our clients will translate into a superior value proposition for our shareholders."

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
(416) 681-6036


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