Gluskin Sheff + Associates Inc. announces third quarter fiscal 2010 results

TORONTO, May 6 /CNW/ - Gluskin Sheff + Associates Inc. (the "Company") announced today its results for the three months ended March 31, 2010.

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.

During the quarter, AUM increased by approximately $0.2 billion from $5.4 billion as at December 31, 2009 to $5.6 billion as at March 31, 2010. This increase is attributable to net additions of approximately $87 million and approximately $141 million in net investment performance. AUM increased by approximately $1.7 billion from March 31, 2009 ($3.9 billion) to March 31, 2010 ($5.6 billion). This increase in AUM is attributable to net additions of approximately $0.6 billion and approximately $1.1 billion in positive investment performance.

For the three months ended March 31, 2010, Base Management Fees increased to approximately $19.4 million from $14.3 million for the three months ended March 31, 2009, an increase of approximately 35%. These increases are due primarily to the increases in average AUM over the respective periods.

Base EBITDA (exclusive of Performance Fees, Performance Fee related bonuses, sub-advisory fees paid on Performance Fees, post retirement obligations and non-cash expenditures) for the three months ended March 31, 2010 was approximately $10.1 million, up from $7.4 million for the comparable three month period ended March 31, 2009. This increase was primarily attributable to the increase in Base Management Fees which was offset by an increase in operating expenses.

Net Income was $5.2 million or Basic Earnings per Share of $0.18 and Diluted Earnings per Share of $0.17 for the three months ended March 31, 2010. Net Income was $4.1 million or Basic and Diluted Earnings per Share of $0.14 for the three months ended March 31, 2009.

"The Company remains in a strong financial position and we plan to continue to use this to our advantage, to seek out new clients, to attract new talent, and to pursue other opportunities as they present themselves." commented Gerald Sheff, Co-Founder, Chairman & Chief Executive Officer. "Change has been a constant for our industry over the past several years. The changes and enhancements we have made, and will continue to make, are all intended to achieve our primary objective: providing strong, risk-adjusted returns and outstanding service to our clients over the long term."

    
    Financial Highlights:

    (unaudited, $ '000s)                              3 Months      3 Months
                                                         Ended         Ended
                                                  Mar 31, 2010  Mar 31, 2009
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    Assets Under Management ($ in millions)          $   5,578      $  3,858

    Revenue:
      Base Management Fees                           $  19,366      $ 14,309
      Performance Fees                                      79            11
      Investment & Other Income (Loss)                     121            58
                                                    -----------    ----------
    Total Revenue                                    $  19,566      $ 14,378

    Base EBITDA                                      $  10,066      $  7,397

    Net Income                                       $   5,239      $  4,098

    Basic Earnings per Share                         $    0.18      $   0.14

    Diluted Earnings per Share                       $    0.17      $   0.14
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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 private clients and institutional investors. Gluskin Sheff offers equity and fixed income investment portfolios in addition to being one of the largest managers of alternative investments in Canada. 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

SOURCE Gluskin Sheff + Associates Inc.

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


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