Addenda Capital reports its 2007 year-end results and increases its quarterly dividend



    
    (All figures in Canadian dollars, unless otherwise indicated)

    - The highlights for the fiscal year ended December 31, 2007 were as
      follows:

      - Assets under management of $29.3 billion, an increase of
        $1.6 billion from December 31, 2006;
      - EBITDA of $25.9 million;
      - Net earnings of $17.0 million;
      - Basic and diluted net earnings per common share of $1.46 and $1.44
        respectively;
      - Expense of more than $1 million to defend our clients' interests.

    - Increase from $0.33 to $0.34 of the dividend per common share for the
      first quarter of 2008.
    

    MONTREAL, Jan. 30 /CNW Telbec/ - Addenda Capital Inc. ("Addenda")
(TSX:ADV) today announced its financial results for the year ended
December 31, 2007. For the fiscal year ended December 31, 2007, Addenda
reported revenues of $37.5 million, representing an increase of $1.2 million
or 3.4% over the revenues for the same period in 2006, while EBITDA reached
$25.9 million, representing an increase of $135,843 or 0.5% compared to fiscal
year 2006. For the fiscal year ended December 31, 2007, net earnings reached
$17.0 million and represented a decrease of $ 320,639 or 1.9% compared to
2006. For the fiscal year ended December 31, 2007, expenses reached
$11.6 million compared to $10.5 million for the corresponding period of the
previous year. The increase of $1.1 million or 10.3% stems from unusual
professional services relating to the bondholder representations in the
context of the privatization of BCE Inc.
    The basic and diluted net earnings per common share for the fiscal year
ended December 31, 2007 reached $1.46 and $1.44 respectively, compared to
$1.47 and $1.45 for the same period in 2006. Excluding the net unusual expense
linked to the bondholder representations in the context of the privatization
of BCE Inc., net earnings for the fiscal year ended December 31, 2007 would
have been $17.4 million, representing basic net earnings per common share of
$1.49.
    For the fourth quarter of 2007, Addenda reported revenues of
$9.6 million, an increase of 1.8% and net earnings of $4.1 million, a decrease
of 8.5% compared to the same quarter in 2006. The basic and diluted net
earnings per common share for the three-month period ended December 31, 2007
reached $0.35, compared to $0.38 and $0.37 respectively for the same period in
2006.
    For the fiscal year ended December 31, 2007, our total assets under
management increased by $1.6 billion from $27.7 billion as at December 31,
2006, to $29.3 billion as at December 31, 2007, representing an increase of
5.9%. Net contributions from clients amounted to $349 million while our
management and positive fixed income market returns increased assets under
management by $1.3 billion during the quarter.
    During the first quarter of 2008, we will convert a Canadian bond mandate
into an overlay mandate exclusively. Overlay management (or alpha management),
which consists of implementing investment strategies using fixed income and
currency derivative products while respecting a risk budget expressed in
monetary terms, represents a very promising axis of development for Addenda.
Our management style is sought after for these types of mandates. This
transition will decrease our assets under management by $1.5 billion. However,
the company will continue to charge base fees and will be entitled to
performance-based fees for fiscal year 2008.
    "The overall performance for 2007 has led Addenda among the group leaders
of Canadian fixed income managers. This bodes well for 2008 in terms of
business development should financial markets calm down." said Benoît
Durocher, President and Chief Executive Officer of Addenda.
    Based on actual financial performance, the Board of Directors of Addenda
approved today a quarterly dividend of $0.34 per common share, payable on
May 1st 2008, to shareholders of record on March 31, 2008.
    A summary of Addenda's financial results for the fiscal years ended
December 31, 2007 and 2006 is provided hereinafter. Addenda's Management's
Discussion and Analysis (MD&A) and audited financial statements for the year
ended December 31, 2007 are available via SEDAR www.sedar.com or directly from
Addenda's webpage: www.addenda-capital.com.

    Addenda will hold a conference call tomorrow, January 31, 2008, at
9:30 AM. To participate in the call, please dial 1-888-882-0109. A replay will
also be available for 30 days through a webcast posted on
www.addenda-capital.com.

    
    SUMMARY OF OPERATING RESULTS

                         Statement of Earnings Data
           (in thousands of dollars except per share information)

                                                Years Ended December 31,
                                    -----------------------------------------
                                            2007          2006          2005
                                    ------------- ------------- -------------
                                        (audited)     (audited)     (audited)

    Revenues
      Management fees               $     37,138  $     35,844  $     32,885
      Investment income                      354           423           180
      Other                                    -             5             7
                                    ------------- ------------- -------------
    Total revenues                        37,492        36,272        33,073
    General and administrative
     expenses (1)                         11,625        10,540        10,731
                                    ------------- ------------- -------------
    EBITDA (2)                            25,867        25,732        22,342
    Amortization of capital assets           287           211           210
    Income taxes                           8,562         8,181         6,885
                                    ------------- ------------- -------------
    Net earnings                    $     17,019  $     17,340  $     15,247
                                    ------------- ------------- -------------
                                    ------------- ------------- -------------

    Earnings per share

    Basic net earnings available
     to common shareholders         $     17,019  $     17,340  $     15,247
    Weighted average number of
     common shares                    11,691,566    11,783,341    11,764,676
    Basic net earnings per common
     share                          $       1.46  $       1.47  $       1.30
                                    ------------- ------------- -------------
                                    ------------- ------------- -------------

    Diluted net earnings available
     to common shareholders         $     17,019  $     17,340  $     15,247
    Weighted average number of
     diluted common shares            11,806,269    11,951,454    11,969,180
    Diluted net earnings per common
     share                          $       1.44  $       1.45  $       1.27
                                    ------------- ------------- -------------
                                    ------------- ------------- -------------

    Dividends declared per common
     share                          $       1.32  $       1.22  $       1.02
                                    ------------- ------------- -------------

    -------------------------------------------------------------------------
    Notes
    (1) General and administrative expenses include the stock-based
        compensation expense.
    (2) "EBITDA" means earnings before interest, income taxes, depreciation
        and amortization. See "Non-GAAP Financial Measures" and
        "Reconciliation of EBITDA to Net Earnings".
    

    This press release presents certain forward-looking statements that
reflect management's current beliefs and assumptions. These are based on
management's current expectations and estimates related to the business
conditions under which Addenda operates. By their very nature, forward-looking
statements involve inherent risks and uncertainties as these beliefs,
assumptions, expectations, and estimates may prove to be inaccurate. Actual
results and events may therefore differ materially from those predicted by the
forward-looking statements. Please refer to our Annual Information Form for a
description of the principal risk factors. Readers are cautioned not to place
undue reliance on forward-looking statements.

    About Addenda

    Addenda is an investment management firm specializing in the active
management of fixed-income portfolios, primarily for institutional clients. As
at December 31, 2007, Addenda had assets under management of approximately
$29.3 billion.




For further information:

For further information: Myriam Larcher, Chief Operating Officer and
Chief Financial Officer, (514) 287-7373, info@addenda-capital.com

Organization Profile

ADDENDA CAPITAL INC.

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