Gluskin Sheff + Associates Inc. announces fiscal 2007 results and special dividend and increase in regular quarterly dividend



    TORONTO, Sept. 20 /CNW/ - Gluskin Sheff + Associates Inc. (the "Company")
announced today its results for the three and twelve month periods ended
June 30, 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.
    The Company changed its fiscal year end from May 31 to June 30 effective
June 30, 2006. As a result of the change, the fiscal year ended June 30, 2007
was of twelve months' duration, while the fiscal year ended June 30, 2006 was
of thirteen months' duration. There were two performance year ends for the
Company's investment portfolios during fiscal 2007, compared to three
performance year ends in fiscal 2006.
    AUM increased to approximately $5.4 billion as at June 30, 2007 from
$4.7 billion as at the end of the third quarter of fiscal 2007, and from
$3.7 billion as at June 30, 2006, the end of the prior fiscal year. The
increase of approximately $1.7 billion from the end of the prior fiscal year
includes net additions from new and existing clients of approximately
$700 million and $960 million from investment performance. During the fourth
quarter of fiscal 2007, net additions to AUM were approximately $292 million,
with investment performance providing an additional increase of approximately
$374 million.
    For the three months ended June 30, 2007, Base Management Fees increased
to approximately $19.4 million from $17.2 million for the four months ended
June 30, 2006, an increase of approximately 13%. For the twelve months ended
June 30, 2007, Base Management Fees increased to approximately $64.5 million
compared to $45.8 million for the thirteen months ended June 30, 2006, an
increase of approximately 41%. This increase is largely attributable to the
growth in AUM in fiscal 2007 compared to the prior fiscal year.
    Performance Fees were $101.5 million for the quarter ended June 30, 2007.
These Performance Fees relate primarily to approximately $3.7 billion in AUM
invested in portfolios with a performance year end of June 30, 2007. For the
comparable quarter ended June 30, 2006, Performance Fees were approximately
$22.0 million. Those Performance Fees relate primarily to approximately
$3.0 billion of AUM invested in portfolios with a performance year end of
June 30, 2006. For the twelve months ended June 30, 2007, Performance Fees
were $114.1 million, as these fees also included Performance Fees related to
portfolios with a performance year end of December 31, 2006. For the
comparable thirteen months ended June 30, 2006, Performance Fees related to
AUM invested in portfolios with performance fee years ending June 30, 2005,
December 31, 2005 and June 30, 2006 totaled $86.5 million.
    Base EBITDA (exclusive of Performance Fees and non-cash expenditures) for
the three months ended June 30, 2007 was $11.7 million, up from $10.6 million
for the comparable four month period ended June 30, 2006. Base EBITDA was
$38.8 million for the twelve-month period ending June 30, 2007, an increase of
approximately 43% over the previous thirteen-month fiscal year. For the twelve
months ended June 30, 2007 Adjusted EBITDA rose to $126.3 million, compared to
$96.3 million for the thirteen months ended June 30, 2006. Net income was
$57.7 million or $2.00 per common share for the fourth quarter ended June 30,
2007 and $73.7 million or $2.56 per common share for the fiscal year ended
June 30, 2007.
    "We are pleased with our results for our first full year as a public
company," commented Gerald Sheff, Chairman and Chief Executive Officer.
"Despite the recent volatility in global capital markets, we are continuing to
see opportunities to build our business, and remain committed to the same
operating and investment principles that have led to such solid performance
since our founding in 1984."

    DIVIDENDS
    ---------
    The Company declared its regular quarterly dividend of $0.0925 per common
share payable on October 25, 2007 to shareholders of record on October 3,
2007.
    The Company also announced today a special dividend of $1.50 per common
share payable on October 25, 2007 to shareholders of record on October 3,
2007. The special dividend relates to the receipt of Performance Fees (after
performance-related bonuses and income tax).
    The Company also announced that its regular quarterly dividend would be
increased to $0.11 ($0.44 on an annual basis) from the current quarterly
dividend of $0.0925 ($0.37 annually) per common share effective the second
quarter of 2008.
    "We are proud to declare our second special dividend as a public company,
directly aligning the interests of management and our employees with those of
all of our shareholders. With our strong performance in fiscal 2007, and our
positive outlook on our future, we are pleased to implement the first increase
in our regular quarterly dividend," Mr. Sheff concluded.

    
    Financial Highlights:

    -------------------------------------------------------------------------
    ($000, except per share        3 months   4 months  12 months  13 months
     amounts)                         ended      ended      ended      ended
                                    June 30,   June 30,   June 30,   June 30,
                                       2007       2006       2007       2006
    -------------------------------------------------------------------------
    Revenue:
      Base Management Fees           19,443     17,198     64,461     45,771
      Performance Fees              101,528     21,516    114,117     86,504
      Investment & Other Income         455        556      1,255      1,496
                                  -------------------------------------------
                                  -------------------------------------------
    Total Revenue                   121,426     39,270    179,833    133,771
    Base EBITDA                      11,720     10,553     38,813     27,063
    Net Income (Loss)                57,698    (22,768)    73,740      2,839
    Basic Earnings per Share           2.00        n/a       2.56        .10
    Diluted Earnings per Share         1.99        n/a       2.55        .10
    Assets Under Management       5,399,886  3,730,942  5,399,886  3,730,942
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    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
www.sedar.com.

    Founded in 1984, Gluskin Sheff + Associates Inc. is one of Canada's
pre-eminent wealth management firms serving high net worth private clients and
institutional 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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