SEAMARK Asset Management Ltd. 2007 Full Year and Fourth Quarter Financial Results



    HALIFAX, Feb. 13 /CNW/ - SEAMARK Asset Management Ltd. earned $0.25 per
share for the full year 2007. For the fourth quarter, earnings were $0.05 per
share. A summary of SEAMARK's financial results is provided below.
    "2007 was a pivotal year for SEAMARK. The operational changes undertaken
in 2006 had a positive impact," said Stuart R. Raftus, President & CEO.
"Although earnings were under pressure as assets under management declined, we
made progress in enhancing client relations and investment performance.
Investment performance was very strong in both Canadian equities and Canadian
fixed income, where returns for clients significantly beat industry
benchmarks. And for pension balanced accounts, our results ranked in the top
half of competitors for the second straight year according to the RBC Dexia
industry survey."
    An analyst call will be held on February 14, 2008 at 9:30 a.m. Atlantic
time (8:30 a.m. Eastern) to discuss these results. The call will be web-cast
live by CNW Group. A link to the call can be found at: www.seamark.ca
    SEAMARK Asset Management Ltd. (TSX:SM) provides investment management
services across Canada to institutional clients, mutual funds, private
clients, and the managed portfolio advisory programs (wrap programs) of many
of Canada's leading investment dealers.

    
    SUMMARY OF FINANCIAL RESULTS
                                         Three months             Full Year
                                       2007       2006       2007       2006
    -------------------------------------------------------------------------
    for the period ended  December 31
    ($ in thousands, except per share)

    Total revenue                  $  3,220   $  4,151   $ 14,174   $ 20,502
    Earnings before income tax          892      1,795      4,601      9,995
    Net earnings                        516      1,269      2,831      6,277

    Basic earnings per share       $   0.05   $   0.12   $   0.27   $   0.59
    Diluted earnings per share         0.05       0.11       0.25       0.55

    as of December 31
     ($ in thousands)
    Cash and cash equivalents      $  9,189   $  7,372   $  9,189   $  7,372
    Temporary investments             2,875      3,620      2,875      3,620
    Total assets                     17,315     16,528     17,315     16,528

    Total long-term financial
     liabilities                        nil        nil        nil        nil

    Basic weighted average
     common shares outstanding
     (in thousands)                  10,477     10,574     10,465     10,681
    Diluted weighted average
     common shares outstanding
     (in thousands)                  11,353     11,192     11,109     11,342

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

    Certain information regarding SEAMARK Asset Management Ltd. contained
herein may constitute forward looking statements within the meaning of
applicable securities laws. Forward looking statements include estimates,
plans, expectations, opinions, forecasts, projections, guidance or other
statements that are not statements of fact. These statements reflect
management's current expectations based on the business conditions under which
the company is currently operating, and are believed to be reasonable, but
management can give no assurance that such expectations will prove to have
been correct.
    By their very nature, forward-looking statements involve inherent risks
and uncertainties, as actual results and events will be affected by a number
of factors, many of which are beyond the company's control. Actual results and
events may therefore differ materially from those predicted by the forward
looking statements. Readers are cautioned not to place undue reliance on any
forward looking statement. Forward looking statements are expressly qualified
in their entirety by this cautionary statement.

    FINANCIAL OVERVIEW & OPERATING HIGHLIGHTS

    Revenues declined in 2007 compared to 2006 reflecting an overall decline
in assets under management ("AUM"). Revenues in 2007 benefited from a realized
gain of $0.3 million on the sale of temporary investments, compared to
$0.1 million in 2006, which contributed $0.01 to basic and diluted earnings
per share.
    Net asset outflows continued in 2007, but at a slower rate, in both
absolute terms and as a percentage of overall AUM, compared to the previous
year. Market value changes contributed more to AUM in 2006 compared to 2007,
reflecting weaker global stock market conditions in 2007 compared to the
previous year. The following table summarizes changes in AUM during 2007 and
2006:

    -------------------------------------------------------------------------
                         Annual Change in AUM Summary
                                (in billions)
    -------------------------------------------------------------------------
                            2007                         2006
                AUM      Net    Market      AUM      Net     Market      AUM
             end of      New     Value   end of      New      Value   end of
               2007   Assets    Change     2006   Assets     Change     2005
    -------------------------------------------------------------------------
    Total
     Firm     $3.87   ($1.35)    $0.01    $5.21   ($4.98)     $0.85    $9.34
    -------------------------------------------------------------------------
    Institu-
     tional
     clients   2.18    (1.07)     0.06     3.19    (1.43)      0.50     4.13
    -------------------------------------------------------------------------
    Mutual
     funds     0.17    (0.07)    (0.02)    0.26    (3.06)      0.16     3.16
    -------------------------------------------------------------------------
    Wrap
     programs  1.36    (0.19)    (0.04)    1.59    (0.47)      0.17     1.88
    -------------------------------------------------------------------------
    Private
     clients   0.16    (0.02)        -     0.18    (0.02)      0.03     0.17
    -------------------------------------------------------------------------

    Equity compensation expenses increased in 2007, reflecting an investment
in key employees initiated in the second half of 2006 in order to establish
increased equity ownership by key employees. In an effort to broaden our
product offerings and create opportunities to diversify our client base, we
also invested in the launch of a new institutional product and retail mutual
funds. Related expenses were offset by an overall reduction in costs in other
areas, resulting in general & administrative expenses for 2007 being in line
with 2006.
    Earnings before income taxes as a percentage of total revenue was 33% in
2007, compared to 49% in 2006. Net earnings as a percentage of revenues were
20% in 2007 compared to 30% in 2006. Declining revenues negatively impacted
these ratios during 2007 compared to the previous year. SEAMARK's effective
tax rate increased to 38.5% in 2007 compared to 37.2% in 2006 as a result of
an increase in non-deductible expenses and a reduction in non-taxable
dividends received from temporary investments in 2007 compared to 2006.

    FOURTH QUARTER 2007

    The following table summarizes the asset flows for the fourth quarter of
2007 and 2006:

    -------------------------------------------------------------------------
                         Quarterly Change AUM Summary
                                (in billions)
    -------------------------------------------------------------------------
                     4th Quarter 2007                 4th Quarter 2006
                AUM     Net  Market     AUM      AUM     Net  Market     AUM
             End of     New   Value  End of   End of     New   Value  End of
                4th  Assets  Change     3rd      4th  Assets  Change     3rd
            Quarter                 Quarter  Quarter                 Quarter
               2007                    2007     2006                    2006
    ---------------------------------------- --------------------------------
    Total
     Firm      3.87   (0.24)  (0.10)   4.21    $5.21  ($0.33)  $0.41   $5.13
    ---------------------------------------- --------------------------------
    Institu-
     tional
     clients   2.18   (0.18)  (0.03)   2.39     3.19   (0.24)   0.27    3.16
    ---------------------------------------- --------------------------------
    Mutual
     funds     0.17   (0.01)  (0.01)   0.19     0.26   (0.02)   0.03    0.25
    ---------------------------------------- --------------------------------
    Wrap
     programs  1.36   (0.05)  (0.05)   1.46     1.59   (0.07)   0.10    1.56
    ---------------------------------------- --------------------------------
    Private
     clients   0.16       -   (0.01)   0.17     0.18       -    0.01    0.17
    -------------------------------------------------------------------------
    

    Consistent with the experience for the full year, net asset outflows
during the fourth quarter of 2007 were lower, in both absolute terms and as a
percentage of overall AUM, than during the same period in 2006. Market value
changes contributed positively to AUM in the fourth quarter of 2006 but
detracted from AUM in the fourth quarter of 2007, reflecting declining global
stock markets during the fourth quarter of 2007.
    Revenues declined during the fourth quarter of 2007 compared to the same
period in 2006 and third quarter 2007 reflecting the reduced level of AUM.
Expenses during the fourth quarter of 2007 were relatively unchanged compared
to the fourth quarter of 2006, reflecting the impact of stock compensation
granted in late 2006 and early 2007, offset by reduced expenses in other
areas.

    LIQUIDITY AND CAPITAL RE

SOURCES SEAMARK had $12.1 million in cash, short-term investments and temporary investments at the end of 2007, up from $11.0 million at the end of 2006. Combined cash, short-term investments and temporary investments exceeded the figure of a year ago due to total cash generated by SEAMARK in 2007 exceeding total cash expenditures during the year, including the payment of dividends. Currently available liquid assets are expected to be adequate to meet SEAMARK's financial needs for the immediate future, therefore no additional capital resources have been arranged. No portion of SEAMARK's short-term or temporary investments were held in asset-backed commercial paper at any time during 2006 or 2007. As such SEAMARK's short-term and temporary investments were not impacted by the liquidity crisis in such instruments in 2007. OUTLOOK The organizational changes undertaken in 2006 resulted in generally improved operations in 2007. Client relations and investment performance produced enhanced results. Investment results for clients were particularly strong in Canadian equities and in Canadian fixed income during 2007, both in absolute terms and relative to competitors. Our Balanced pension composite ranked in the top half of its peer group for the year, as measured by the RBC Dexia industry survey of Canadian investment managers. Results from international equities were generally in line with benchmarks and peer returns for the year. Returns from US equities were below median. The combined investment results of 2007 and 2006 have begun the process of restoring SEAMARK's relative rankings against competitors over the critical three- and four-year periods that are often used by clients to evaluate investment managers. Performance in Canadian equities and Canadian fixed income are now building positive longer term track records. Over the past two years and for 18 of the past 23 years SEAMARK's balanced pension composite has generated above median performance according to the RBC Dexia industry survey. These results and the increased strength of SEAMARK's organization should position the company to continue to slow the decline in assets under management as 2008 proceeds. It will remain challenging, however, to win new business in the near future. Continued strong investment results will be required in order to retain existing clients and attract new clients. SEAMARK's revenues are expected to track its assets under management in a manner consistent with their historical relationship. Expenses will vary according to the needs of SEAMARK's business over the course of 2008. SEAMARK's effective tax rate in 2008 is expected to approximate that of 2007 as a decline in the statutory federal tax rate may be offset by an expected increase in non-deductible expenses as a percentage of total revenues. Based on current levels of AUM, revenues, and liquid assets, SEAMARK expects to continue to pay its current level of quarterly dividends in 2008, although this will continue to be reviewed quarterly as is company policy.

For further information:

For further information: Jill McKim, Corporate Secretary, SEAMARK Asset
Management Ltd., (902) 423-9367

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SEAMARK ASSET MANAGEMENT LTD.

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