CALGARY, May 12, 2014 /CNW/ - Aston Hill Financial Inc. ("Aston Hill" or the "Company") (TSX:AHF) announces it has filed its unaudited interim Consolidated
Financial Statements for the period ended March 31, 2014 and related
Management Discussion and Analysis with Canadian securities regulatory
For the period ended March 31, 2014, Aston Hill's revenues were $11.1
million, an increase of 54% from March 31, 2013 revenue of $7.2
million. The revenue increase was mainly due to the continued growth
and performance of the Aston Hill mutual funds and the acquisition of
Connor Clark & Lunn Capital Markets Inc. (subsequently renamed Aston
Hill Capital Markets Inc. "AHCM") in August 2013. Revenues quarter over
quarter decreased by 2.6% from $11.4 million to $11.1 million. As of
March 31, 2014, managed investment funds (comprising closed and open
end funds) represent 62% of the Company's revenues. Aston Hill Assets
Under Management, Administration and Advisory ("AUM") increased 8%
year-over-year from $6.8 billion to $7.4 billion at March 31, 2014. The
rise in AUM is mainly the result of new mutual fund subscriptions and
the acquisition of AHCM in 2013. Quarter-over-quarter AUM decreased
from $7.8 billion to $7.4 billion mainly due to loss of pension fund
assets. During the quarter, the Company's core business of mutual and
closed end funds increased by $191 million (including $184 million in
gross subscriptions) and $54 million, respectively. This represents a
year-over-year increase of 75% and our highest level ever of quarterly
mutual fund gross sales.
General and administrative (G&A) expenses were $5.7 million for the
first three months of 2014 as compared to $6.5 million for the prior
quarter. Year-over-year G&A expenses have increased from $4.3 million
to $5.7 million due to an increase in the number of sales and AHCM
employees. EBITDA for the three months ended March 31, 2014 was $2.8
million (before stock-based compensation and net investment gains or
losses) up from the prior year's first quarter EBITDA of $2.1 million
(before stock-based compensation and net investment gains or losses)
and up from the fourth quarter 2013 EBITDA of $2.5 million (before
stock-based compensation and net investment gains or losses). The
year-over-year and quarter-over-quarter EBITDA increases are the result
of the Company's focus on higher margin mutual fund and closed end fund
sales and reduced G&A expenses.
The Company continued to repurchase common shares through its ongoing
normal-course issuer bid with 289,000 shares being repurchased and
cancelled in the first quarter of 2014.
Aston Hill Financial Inc. is a diversified asset management company with
a suite of retail mutual funds, closed end funds, private equity funds,
hedge funds and segregated institutional funds. Aston Hill Financial
Inc. has offices in Calgary, Toronto and Halifax.
The TSX has neither approved nor disapproved the information contained
EBITDA: EBITDA is not a standardized earnings measure prescribed by IFRS;
however, management believes that most of its shareholders, creditors,
other stakeholders and investment analysts prefer to use this
performance measure in analyzing Aston Hill's results.
Forward-Looking Statements: This news release contains certain "forward-looking statements" within
the meaning of such statements under applicable securities law.
Forward-looking statements are frequently characterized by words such
as "plan", "continue", "expect", "project", "intend", "believe",
"anticipate", "estimate", "may", "will", "potential", "proposed" and
other similar words, or statements that certain events or conditions
"may" or "will" occur. These statements are only predictions. Various
assumptions were used in drawing the conclusions or making the
projections contained in the forward-looking statements throughout this
news release. Forward-looking statements are based on the opinions and
estimates of management at the date the statements are made, and are
subject to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from those
projected in the forward-looking statements.
For a detailed description of the risks and uncertainties facing the
Company and its business and affairs, readers should refer to the
Company's annual financial statements and management discussion and
analysis for the year ended December 31, 2013, both of which are
available at www.sedar.com. The Company undertakes no obligation to update forward-looking
statements if circumstances or management's estimates or opinions
should change, unless required by law. The reader is cautioned not to
place undue reliance on forward-looking statements.
SOURCE: Aston Hill Asset Management Inc.
For further information:
Chief Executive Officer
Aston Hill Financial Inc.
Vice President and CFO
Aston Hill Financial Inc.