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
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
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, 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:
Chief Executive Officer
Aston Hill Financial Inc.
Vice President and CFO
Aston Hill Financial Inc.