Gluskin Sheff + Associates announces second quarter fiscal 2008 results



    TORONTO, Feb. 7 /CNW/ -  Gluskin Sheff + Associates Inc. (the "Company")
announced today its results for the three and six month periods ended
December 31, 2007.
    The Company's revenues are derived from Base Management Fees, calculated
as a percentage of Assets Under Management ("AUM"), Performance Fees, which
are earned when the Company exceeds pre-specified rates of return, and
Investment and Other Income.
    AUM increased to approximately $5.6 billion as at December 31, 2007 from
$5.5 billion as at September 30, 2007 and from $4.2 billion as at the end of
the second quarter for the prior fiscal year. The increase in AUM of
approximately $1.4 billion from the end of December 31, 2006 to December 31,
2007 resulted from net additions from new and existing clients of
approximately $800 million and approximately $600 million from net investment
performance. During the first six months of fiscal 2008, net additions to AUM
were approximately $238 million with net investment performance reducing AUM
by approximately $38 million ($64 million positive performance less
$102 million in Performance Fees paid from within client accounts).
    For the three months ended December 31, 2007, Base Management Fees
increased to approximately $21.6 million from $14.9 million for the three
months ended December 31, 2006, an increase of approximately 45%. For the six
months ended December 31, 2007, Base Management Fees increased to
approximately $41.8 million from $28.5 million or approximately 47% compared
to the six month period ended December 31, 2006. These increases resulted
primarily from the growth in AUM over the twelve month period.
    Performance Fees in the second quarter of fiscal 2008 are $12.9 million.
Approximately $12.5 million of these Performance Fees relate to the majority
of the $1.8 billion of AUM with a performance year ended December 31, 2007.
Performance Fees for the comparable three months ended December 31, 2006 were
$12.4 million. For the six month period ended December 31, 2007, Performance
Fees were $13.2 million. For the comparable six month period ended
December 31, 2006, Performance Fees were $12.4 million.
    For the three months ended December 31, 2007, Investment and Other Income
rose approximately $0.6 million compared to the same period in fiscal 2007.
For the six month period ended December 31, 2007, the Investment and Other
Income increased by $1.3 million to $1.8 million compared to the six month
period ended December 31, 2006.
    Base EBITDA (exclusive of Performance Fees and non-cash expenditures) for
the three months ended December 31, 2007 was approximately $13.5 million, up
from $8.9 million for the comparable three month period ended December 31,
2006. For the six months ended December 31, 2007 Base EBITDA was
$26.6 million, compared to $16.9 million for the six months ended December 31,
2006. These increases are primarily attributable to the growth in Base
Management Fees.
    Net Income was $14.1 million or $0.49 per common share for the second
quarter ended December 31, 2007. For the six months ended December 31, 2007
the net income was $21.7 million or $0.75 per common share.
    "Following a year of solid performance in fiscal 2007, we experienced
moderate growth over the first six months of fiscal 2008, in what has been,
and continues to be, a challenging global equity market environment,"
commented Gerald Sheff, Chairman and Chief Executive Officer. "We remain
committed to delivering consistently high levels of personalized service,
together with solid investment performance for our clients over the longer
term."

    
    Financial Highlights:

    -------------------------------------------------------------------------
    (unaudited 000's,        3 months     3 months     6 months     6 months
     except per                 ended        ended        ended        ended
     share amounts)       Dec 31 2007  Dec 31 2006  Dec 31 2007  Dec 31 2006
    -------------------------------------------------------------------------
    Assets Under
     Management           $ 5,599,991  $ 4,233,129  $ 5,599,991  $ 4,233,129
    Revenue:
      Base Management
       Fees               $    21,567  $    14,873  $    41,848  $    28,473
      Performance Fees         12,880       12,376       13,164       12,418
      Investment & Other
       Income                     886          315        1,811          552
                         ----------------------------------------------------
                         ----------------------------------------------------
    Total Revenue         $    35,333  $    27,564  $    56,823  $    41,443
    Base EBITDA           $    13,486  $     8,940  $    26,571  $    16,885
    Net Income (Loss)     $    14,068  $     7,884  $    21,710  $    10,998
    Basic Earnings per
     Share                      $0.49        $0.27        $0.75        $0.38
    Diluted Earnings per
     Share                      $0.48        $0.27        $0.74        $0.38
    -------------------------------------------------------------------------
    

    The Company's full financial statements and Management's Discussion and
Analysis can be found on the Company's website at www.gluskinsheff.com and on
www.sedar.com.

    Founded in 1984, Gluskin Sheff + Associates Inc. is one of Canada's
pre-eminent wealth management firms serving high net worth investors. The
Company's Subordinate Voting Shares are listed on the Toronto Stock Exchange
under the symbol "GS". For more information about the Company, please visit
our website at www.gluskinsheff.com.

    This press release may contain forward-looking statements relating to
Gluskin Sheff + Associates Inc.'s business and the environment in which it
operates. These statements are based on the Company's expectations, estimates,
forecasts and projections. They are not guarantees of future performance and
involve risks and uncertainties that are difficult to control or predict.
These risks and uncertainties are discussed in the Company's regulatory
filings available on the Company's website at www.gluskinsheff.com or at
www.sedar.com. Actual outcomes and results may differ materially from those
expressed in these forward-looking statements. Readers, therefore, should not
place undue reliance on any such forward-looking statements. Further, a
forward-looking statement speaks only as of the date on which such statement
is made. The Company undertakes no obligation to publicly update any such
statement or to reflect new information or the occurrence of future events or
circumstances.

    Non-GAAP Measures
    Included in this press release are certain financial terms (including
Base EBITDA and AUM) that the Company utilizes to assess the financial
performance of its business that are not measures recognized under Canadian
generally accepted accounting principles (GAAP). These non-GAAP measures do
not have any standardized meanings prescribed by GAAP and should not be
considered alternatives to net income or any other measure of performance
determined in accordance with GAAP. Therefore, these non-GAAP measures are
unlikely to be comparable to similar measures presented by other issuers. For
additional information regarding the Company's use of non-GAAP measures,
including the calculation of these measures, please refer to the "Non-GAAP
financial measures" section of the Company's Management's Discussion and
Analysis and its financial statements available on the Company's website and
on the SEDAR website located at www.sedar.com.





For further information:

For further information: Valerie Barker, Chief Financial Officer and
Secretary, (416) 681-6002


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