Gluskin Sheff + Associates Inc. announces fiscal 2008 financial results



    TORONTO, Sept. 18 /CNW/ - Gluskin Sheff + Associates Inc. (the "Company")
announced today its financial results for the three and twelve month periods
ended June 30, 2008.
    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 & Other Income.
    AUM as at June 30, 2008 was approximately $5.6 billion, compared to
$5.1 billion as at March 31, 2008, and $5.4 billion as at June 30, 2007. AUM
increased approximately $481 million during the fourth quarter of fiscal 2008,
of which $473 million was attributable to investment performance and
$8 million was attributable to net additions from new and existing clients.
AUM increased approximately $197 million during the fiscal year, of which a
decline of $37 million was attributable to investment performance and
$234 million was attributable to net additions from new and existing clients.
Since June 30th, capital markets have been extremely adverse and volatile and
our AUM have been negatively impacted. As at September 17, 2008, our AUM was
approximately $4.6 billion, with the change from June 30th being
overwhelmingly attributable to investment performance.
    Base Management Fees for the three months ended June 30, 2008 were
approximately $20.9 million, compared to $19.4 million for the three months
ended June 30, 2007, an increase of approximately 8%. Base Management Fees for
the twelve months ended June 30, 2008 were approximately $82.5 million,
compared to $64.5 million for the twelve months ended June 30, 2007, an
increase of approximately 28%. These increases are primarily attributable to
the growth in AUM.
    Performance Fees for the three months ended June 30, 2008 were
approximately $6.7 million, compared to $101.5 million for the three months
ended June 30, 2007. These fees relate to approximately $3.6 billion of AUM
invested in portfolios with a performance year end of June 30, 2008, compared
to $3.7 billion of AUM invested in portfolios with a performance year end of
June 30, 2007 for Fiscal 2007. Performance Fees for the twelve months ended
June 30, 2008 were approximately $19.8 million, compared to $114.1 million for
the twelve months ended June 30, 2007. These fees include Performance Fees
earned on AUM of approximately $1.8 billion invested in portfolios with a
performance year end of December 31, 2007, compared to $0.6 billion of AUM
invested in portfolios with a performance year end of December 31, 2006 for
Fiscal 2007.
    Base EBITDA (essentially Base Management Fees less cash operating
expenses) for the three months ended June 30, 2008 was approximately
$13.9 million, compared to $11.7 million for the three months ended June 30,
2007. Base EBITDA for the twelve months ended June 30, 2008 was approximately
$52.2 million, compared to $38.8 million for the twelve months ended June 30,
2007. These increases are primarily attributable to the growth in Base
Management Fees.
    Net Income was $11.0 million or $0.38 per common share for the three
months ended June 30, 2008. For the twelve months ended June 30, 2008 net
income was $39.3 million or $1.36 per common share.
    "In general, we are pleased with the results of our second full year as a
public company. This has been and continues to be a very challenging year in
the equity markets generally as well as for our investment portfolios.
Difficult capital markets, together with extreme volatility, have resulted in
significant declines in some of our best investment ideas which has adversely
impacted our short-term investment performance and reduced our AUM. As we
begin our 25th year in business, we remain confident that our proven
investment style and disciplines will see us through this tumultuous time and
enable us to continue to build upon our strong long-term track record,"
commented Gerald Sheff, Chairman and Chief Executive Officer.


    
    Financial Highlights:

    -------------------------------------------------------------------------
    (unaudited 000's,           3 months    3 months   12 months   12 months
     except for                    ended       ended       ended       ended
     share amounts)              June 30,    June 30,    June 30,    June 30,
                                    2008        2007        2008        2007
    -------------------------------------------------------------------------

    Assets Under
     Management               $5,597,320  $5,399,886  $5,597,320  $5,399,886

    Revenue:
      Base Management Fees    $   20,882  $   19,443  $   82,523  $   64,461
      Performance Fees             6,680     101,528      19,844     114,117
      Investment & Other
       Income                      1,096         455       3,388       1,255
                             ------------------------------------------------
                             ------------------------------------------------
    Total Revenue             $   28,658  $  121,426  $  105,755  $  179,833

    Base EBITDA                   13,856      11,720      52,161      38,813

    Net Income                    11,029      57,698      39,251      73,740

    Basic Earnings per Share        0.38        2.00        1.36        2.56

    Diluted Earnings per Share      0.38        1.99        1.34        2.55

    -------------------------------------------------------------------------
    

    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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