Aston Hill announces second quarter results

CALGARY, Aug. 13, 2013 /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 June 30, 2013 and related Management Discussion and Analysis with Canadian securities regulatory authorities.

For the three month period ended June 30, 2013, Aston Hill's revenues were $7.7 million, an increase of 33% from the same period last year.  The revenue increase was due mainly to the continued growth and performance of the Aston Hill mutual funds and additional overhead recoveries from the services agreement with Argent Energy Trust.  Aston Hill Assets under Management, Administration and Advisory ("AUM") increased 20% year-over-year from $5.6 billion to $6.7 billion as at June 30, 2013. The rise in AUM year-over-year is mainly the result of new mutual fund subscriptions, the addition of Argent Energy Trust and an increase in the IA Clarington sub-advised funds. AUM dropped slightly from the prior quarter from $6.8 billion to $6.7 billion, due mainly to the loss of institutional mandates, although revenue increased 6% from the prior quarter as the Company replaced the lost institutional AUM with higher fee mutual fund AUM.

General and administrative expenses were lower for the second quarter of 2013 ($4.4 million) as compared to the first quarter ($4.5 million).  EBITDA for the second quarter ($1.82 million) was lower than the prior quarter ($1.98 million) due to higher product development costs and trailer fees paid for mutual fund sales as a result of higher than expected Aston Hill mutual fund sales. Year-over-year second quarter EBITDA increased 105% as the Company continued to focus its sales efforts on proprietary mutual fund sales.

Subsequent to quarter end, the Company agreed to purchase an 80% interest in Connor, Clark & Lunn Capital Markets Inc. ("CC&L CM") for $16.4 million.  CC&L CM currently manages and provides advisory services to 14 TSX-listed closed end funds with assets under management of approximately $1.2 billion as at June 30, 2013. As previously announced, the acquisition will be financed by a bought deal offering of subscription receipts through a syndicate of underwriters led by CIBC, RBC Capital Markets and Scotiabank for gross proceeds of $21.4 million (including the partial exercise of an over-allotment granted by the Company to the underwriters). This financing closed on August 7, 2013. Completion of the acquisition is expected to occur on or about August 15, 2013, subject to satisfaction of standard conditions.  The remaining proceeds from the financing will be used for working capital and general corporate purposes.

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. The Company is also engaged in the administration of Argent Energy Trust (TSX: AET.UN).  Aston Hill Financial has offices in Calgary, Toronto and Halifax.

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

1. 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.
   
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, 2012, 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:

Eric Tremblay
Chief Executive Officer
Aston Hill Financial Inc.
(403) 770-4817    

Larry Titley 
Vice President and CFO 
Aston Hill Financial Inc. 
(403) 770-4808 


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