Aston Hill Announces 2014 Third Quarter Results

CALGARY, Nov. 5, 2014 /CNW/ - Aston Hill Financial Inc. ("Aston Hill" or the "Company") (TSX:AHF) announces it has filed its unaudited Condensed Interim Consolidated Financial Statements for the period ended September 30, 2014 and related Management's Discussion and Analysis with Canadian securities regulatory authorities.

Aston Hill Assets Under Management, Advisory and Administration ("AUM") decreased 10% year-over-year from $7.9 billion to $7.1 billion at September 30, 2014.  The drop in AUM is mainly the result of a reduction in lower revenue margin institutional and sub-advisory assets and assets under administration. This decrease was offset by an increase in higher margin proprietary mutual fund assets. During the quarter, gross sales of mutual funds were $120 million (net $92 million).  Year to date mutual fund gross sales of $431 million represented an increase of 62% from the prior year.

The Company continues to focus its sales efforts on in-house managed funds, as they generate higher than corporate average margins. As a result of increased in-house fund sales, Aston Hill's revenue continues to increase quarter over quarter despite the AUM decline.

For the third quarter, Aston Hill's revenues were $12.4 million, an increase of 35% from the prior year's third quarter revenues of $9.2 million.  The revenue increase was due to the continued growth and performance of the Aston Hill mutual funds and the acquisition of additional closed end funds in August 2013.  Revenues increased over second quarter revenues by 2% from $12.2 million to $12.4 million.  Revenue generated by sub-advisory mandates continues to decrease as a percentage of total revenue (currently 18% compared to 27% in the prior year) as management remains focused on higher margin mutual and closed end fund growth. In-house mutual funds and closed end funds accounted for 68% of revenues for the third quarter.


Percent of Revenues by Source for Three Months Ended September 30, 2014

Aston Hill Managed Investment Funds

68%

Sub-Advisory Mandates

18%

Institutional and Other

8%

Aston Hill Securities

6%

 

Total expenses (excluding finance expense) for the third quarter were higher at $10.3 million as compared to $9.5 million for the second quarter of 2014. The higher corporate expense is mainly due to one-time employee compensation costs offset by an unrelated one-time insurance recovery (net $0.4 million).

Adjusted EBITDA (before stock-based compensation and net investment gains or losses) for the third quarter was $3.1 million, a 21% decrease from the prior quarter adjusted EBITDA of $3.9 million due mainly to the aforementioned one-time expense increase in the quarter.  Net income for the quarter was $0.1 million as compared to a net income in the prior quarter of $1.0 million.

Financial Highlights


(in thousands of dollars, except assets under management and

per share amounts)




As at Sept 30,
2014

As at June 30,
2014

As at Sept 30,
2013

Assets under management (in billions)

$

7.05

$

7.48

$

7.89

Total assets

97,575

97,138

97,460

Shares outstanding

89,297

89,351

88,673


For the three months ended

As at September
30, 2014

As at June
30, 2014

As at September
30, 2013

Total revenues

$

12,400

$

12,151

$

9,176

Total expenses excluding finance expense

10,347

9,463

7,046

Total finance expense

1,077

834

1,041

Income (loss) before income taxes

$

976

$

1,854

$

1,089

Income tax expense (recovery)

$

625

$

560

$

570

Net (loss) income

$

351

$

1,294

$

519

Net income to non-controlling interest

266

267

85

Net (loss) income to controlling interest

$

85

$

1,027

$

434










Per share – Basic

$

0.001

$

0.011

$

0.005


Per share – Diluted

$

0.001

$

0.011

$

0.005









Cash dividends declared per share

$

0.015

$

0.015

$

0.0125

EBITDA

$

2,796

$

3,403

$

2,477

Adjusted EBITDA

$

3,087

$

3,865

$

2,778

 

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 has offices in Calgary, Toronto and Halifax.

The TSX has neither approved nor disapproved the information contained herein.

  1. Adjusted EBITDA and EBITDA:  Adjusted EBITDA and EBITDA are not standardized earnings measures prescribed by IFRS; however, management believes that most of its shareholders, creditors, other stakeholders and investment analysts prefer to use these performance measures in analyzing Aston Hill's results.

  2. 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 Financial Inc.

For further information: concerning this press release, please contact: Eric Tremblay, Chief Executive Officer, Aston Hill Financial Inc., (403) 770-4817; Larry Titley, Chief Financial Officer, Aston Hill Financial Inc., (403) 770-4808

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Aston Hill Financial Inc.

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Aston Hill Asset Management Inc.

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