Saxon Financial reports record third quarter results



    Q3 Revenue up 13%, earnings up 17% over Q3 2006

    TORONTO, Nov. 5 /CNW/ - Saxon Financial Inc. (TSX:SFI) today reported
record financial results for the third quarter ended September 30, 2007. The
Company continued its strong performance with 13% growth in revenue and 17%
increase in earnings over Q3 2006. Saxon Financial's assets under management
grew 9% to $13 billion in the 12-month period ended September 30, 2007.
    "Saxon's ability to deliver strong financial performance stands out in a
quarter of significant market volatility," said Allan Smith, President and CEO
of Saxon Financial. "Saxon's retail and institutional fixed income investors
were insulated from payment disruptions that rocked financial markets-a
testament to Saxon's discipline in weighing risk against potential reward."

    Highlights: Another quarter of double-digit growth

    
    Financial Highlights
    (unaudited - $            Three month period         Nine month period
     thousands, except       ended September 30         ended September 30
     per share data)      -----------------------    -----------------------
                            2007   2006  Increase      2007   2006  Increase
                           ------ ------ --------     ------ ------ ---------
                               $       $                  $       $
    Revenue(*)            13,867  12,311      13%    41,674  35,720      17%
    EBITDA(xx)             7,107   6,188      15%    20,477  17,072      20%
    Net Income             4,608   3,948      17%    13,298  10,816      23%
    Earnings per share       .34     .29      17%       .98     .79      24%

    (*)  Revenue refers to management fee revenue and excludes investment
         income.
    (xx) The amount of earnings before interest, taxes, depreciation and
         amortization ("EBITDA") is a non-GAAP measure used by management,
         investors and analysts to evaluate and analyze the Company's
         results. EBITDA does not have a standardized meaning and may not be
         comparable to similar measures presented by other companies. EBITDA
         is defined as earnings before investment income, interest expense,
         income taxes, depreciation and amortization.

    Highlights included:

    -   Saxon Financial's assets under management increased by $1.1 billion,
        or 9%, year over year to $13.0 billion as of September 30, 2007.

    -   Saxon largely sustained AUM levels relative to the preceding quarter
        due to prudent management of its fixed income assets, the largest
        component of AUM. Saxon corporate holdings and mutual funds did not
        have any exposure to the sub-prime market or non-bank issued asset-
        backed commercial paper.

    -   Saxon's Q3 revenue was $13.9 million, a 13% increase over the third
        quarter of 2006.

    -   Saxon's net income for the quarter was $4.6 million, up 17% over the
        third quarter of 2006.

    -   Saxon expanded its successful principal-protected note offering with
        notes linked to the performance of two Saxon flagship funds: Saxon
        Stock Fund and Saxon Balanced Fund Both funds are ranked 1st quartile
        for 10-, 15-, and 20-year performance among all Canadian equity
        mutual funds and Canadian equity balanced mutual funds
        respectively.(*)

    -   Saxon Financial's institutional investment management subsidiary,
        Howson Tattersall Investment Counsel Limited, built on its recent
        success with the addition of two new clients in the quarter. For the
        year, the institutional business has added a total of five new
        clients and eight new mandates.

    -   Saxon entered into a 5 year agreement with Citigroup as an outsource
        provider for mutual funds operations to facilitate Saxon's expansion
        into the advisor channel.
    

    For detailed financial statements, including management's discussion and
analysis, please refer to Saxon's website at www.saxonfinancial.ca.

    Conference call

    Saxon will host a conference call to discuss these results on Monday
November 5, at 11:00 am EST. Please dial 416-695-7806, or toll-free
1-888-789-9572. Passcode No.3238408.

    About Saxon Financial Inc.

    Saxon Financial Inc. is one of Canada's most respected value style
investment management firms. The Company has three principal businesses: Saxon
Funds Management Limited, which manages a family of high-performing mutual
funds; Howson Tattersall Investment Counsel Limited, an institutional asset
management business; and Howson Tattersall Private Asset Management Inc., a
private client asset management business.

    (*)Source: Morningstar PALTrak as of September 30, 2007. The annualized
compounded rates of return for A units of Saxon Balanced Fund as of September
30, 2007 for 1-, 3-, 5-, 10- and 15-year periods are 12.8%, 11.6%, 11.8%, 9.2%
and 12.1% and for Saxon Stock Fund 19.0%, 16.0%, 15.6%, 11.5% and 15.0% and
are not intended to be, nor should they be construed to be, an indication as
to the future returns or volatility of the mutual fund. These figures are used
to illustrate the effects of compound growth rates and assume that all
distributions on Class A units of Saxon Balanced Fund were reinvested in
additional units of the fund and do not include any applicable sales,
redemption, distribution or optional charges that would have reduced returns.
Returns are shown after the payment of expenses and fees of the fund. The
performance figures reflect the payment of the management expense ratio of the
fund for the indicated periods. Commissions, trailing commissions, management
fees and expenses all may be associated with mutual fund investments. Please
read the prospectus before investing.





For further information:

For further information: Mel Gabel, Chief Financial Officer, Saxon
Financial Inc., (416) 227-1617, mel.gabel@saxonfinancial.ca; Jason Graham or
Daniel Tisch (media only), Argyle Communications, (416) 968-7311 ext. 229 or
223, jgraham@argylecommunications.com, dtisch@argylecommunications.com

Organization Profile

SAXON FINANCIAL INC.

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