TORONTO, May 8, 2013 /CNW/ - Sprott Inc. (TSX: SII) ("Sprott" or the
"Company") today announced its financial results for the three months
ended March 31, 2013.
Q1 2013 Overview
Assets Under Management ("AUM") were $9.1 billion as at March 31, 2013,
compared to $9.7 billion as at March 31, 2012 and $9.9 billion as at
December 31, 2012
Assets Under Administration ("AUA") were $3.3 billion as at March 31,
2013, compared to $4.6 billion as at March 31, 2012 and $3.7 billion as
at December 31, 2012
Management Fees were $26.0 million, a decrease of 21.3% compared with
the three months ended March 31, 2012
EBITDA was $10.4 million ($0.06 per share), compared with $16.2 million
($0.10 per share) for the three months ended March 31, 2012, a decrease
Net income was $2.1 million ($0.01 per share) for the three months ended
March 31, 2013, a decrease of 87.7% from $16.9 million ($0.10 per
share) in the three months ended March 31, 2012
Named John Wilson and Scott Colbourne Co-Chief Investment Officers of
Sprott Asset Management LP
Completed non-brokered private placement with an institutional investor
for gross proceeds of $25 million and seeded Sprott Macro Managers Fund
Resource Capital Investment Corporation raised US$35 million in a new
fixed-term limited partnership
Signed joint venture agreement to launch new global mining fund with
Zijin Mining Group Co., Ltd.
"The first quarter and subsequent month have continued to be challenging
for Sprott and our strategies concentrated on investments in precious
metals and their related equities," said Peter Grosskopf, Chief
Executive Officer of Sprott. "While we remain confident that this
positioning will be rewarded with much better performance once markets
become less comfortable with the results of quantitative easing, we
also continue to build other areas of our firm to incorporate a broader
range of investment strategies. We are pleased with the growth of our
enhanced equity, private equity and lending and fixed income areas."
"One of our priorities is to make our products more attractive to
institutional investors," continued Mr. Grosskopf. "During the first
quarter, we took an important step in this process with the launch of
our first institutionally-focused hedge fund, which will draw on the
combined strengths of our organization."
"We have also recently increased our international presence through an
agreement to launch a global mining fund with Zijin Mining Co., Ltd.,
one of China's largest gold and copper miners," added Mr. Grosskopf.
"Our global brand positioning has led to a number of new opportunities
to co-invest with international partners and we expect this to become a
growing part of our business going forward."
For the three
($ in millions)
AUM, beginning of period
Net sales (redemptions)
Market value appreciation (depreciation) of portfolios
AUM, end of period
Assets Under Management
At March 31, 2013, AUM decreased by 5.9% to $9.1 billion from $9.7
billion at March 31, 2012.
Net redemptions for the three months ended March 31, 2013 were $0.3
billion. Collectively, the Company's other Mutual Funds, Managed
Accounts and Domestic Alternative Investment Strategies experienced net
redemptions of approximately $0.2 billion for the three months ended
March 31, 2013. The Offshore Funds collectively, had redemptions
resulting in net outflows for the three months ended March 31, 2013 of
approximately $49 million or 25.6% of offshore AUM at the beginning of
the year. The launch of Resource Capital Investment Corporation added
$35 million to AUM.
Average AUM for the three months ended March 31, 2013 was $9.5 billion
compared with $10.1 billion for the three months ended March 31, 2012,
a decrease of 6%.
Total revenue for the three months ended March 31, 2013, decreased by
37.9% to $27.6 million from $44.4 million for the three months ended
March 31, 2012.
For the three months ended March 31, 2013, management fees decreased by
21.3% to $26.0 million from $33.0 million in the three months ended
March 31, 2012. The decrease in management fees is primarily
attributable to both the lower average AUM for the three months ended
March 31, 2013 as well as an increase in lower fee products such as the
physical bullion trusts and fixed-income funds.
Losses from proprietary investments, which include investments in
products that Sprott manages, certain other resource-related stocks and
warrants, and bullion, totaled $3.0 million, compared with gains of
$4.2 million in the three months ended March 31, 2012.
Commission revenue for the three months ended March 31, 2013, decreased
by $3.8 million to $1.9 million from $5.7 million during the three
months ended March 31, 2012.
Total expenses for the three months ended March 31, 2013 were $23.7
million, an increase of 2.3% from $23.2 million in the three months
ended March 31, 2012.
EBITDA, which excludes the impact of income taxes and certain non-cash
expenses, decreased by 35.6% to $10.4 million from $16.2 million in the
three months ended March 31, 2012.
Net income for the three months ended March 31, 2013 was $2.1 million
($0.01 per share), compared with $16.9 million ($0.10 per share)
earned during the three months ended March 31, 2012.
On March 26, 2013, a dividend of $0.03 per common share was declared for
the quarter ended December 31, 2012. The dividend was paid on April
23, 2013 to shareholders of record at the close of business on April 8,
On May 7, 2013, a dividend of $0.03 per common share was declared for
the quarter ended March 31, 2013.
Conference Call and Webcast
A conference call and webcast will be held today, Wednesday, May 8, 2013
at 11:00am ET to discuss the Company's financial results. To
participate in the call, please dial 1-877-856-6014 ten minutes prior
to the scheduled start of the call and either provide the name of the
call or enter reference number 63961026. A taped replay of the
conference call will be available until Tuesday, May 14, 2013 by
calling 416-849-0833 or 1-855-859-2056, reference number 63961026.
The conference call will be webcast live at www.sprottinc.com and www.newswire.ca
*Non-IFRS Financial Measures
This press release includes financial terms (including AUM, AUA, EBITDA
and net sales) that the Company utilizes to assess the financial
performance of its business that are not measures recognized under
International Financial Reporting Standards ("IFRS"). These non-IFRS
measures should not be considered alternatives to performance measures
determined in accordance with IFRS and may not be comparable to similar
measures presented by other issuers. For additional information
regarding the Company's use of non-IFRS measures, including the
calculation of these measures, please refer to the "Non-IFRS Financial
Measures" section of the Company's Management's Discussion and Analysis
and its financial statements available on the Company's website at www.sprottinc.com and on SEDAR at www.sedar.com.
This release contains "forward-looking statements" which reflect the
current expectations of the Company. These statements reflect
management's current beliefs with respect to future events and are
based on information currently available to management. Forward-looking
statements involve significant known and unknown risks, uncertainties
and assumptions. Many factors could cause actual results, performance
or achievements to be materially different from any future results,
performance or achievements that may be expressed or implied by such
forward-looking statements including, without limitation, those listed
under the heading "Risk Factors" in the Company's annual information
form dated March 26, 2013. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking statements prove incorrect, actual results, performance
or achievements could vary materially from those expressed or implied
by the forward-looking statements contained in this release. Although
the forward-looking statements contained in this release are based upon
what the Company believes to be reasonable assumptions, the Company
cannot assure investors that actual results, performance or
achievements will be consistent with these forward-looking statements.
These forward-looking statements are made as of the date of this
release and the Company does not assume any obligation to update or
revise them to reflect new events or circumstances.
About Sprott Inc.
Sprott Inc. is a leading independent asset manager dedicated to
achieving superior returns for its clients over the long term. The
Company currently operates through four business units: Sprott Asset
Management LP, Sprott Private Wealth LP, Sprott Consulting LP, and
Sprott U.S. Holdings Inc. Sprott Asset Management is the investment
manager of the Sprott family of mutual funds and hedge funds and
discretionary managed accounts; Sprott Private Wealth provides wealth
management services to high net worth individuals; and Sprott
Consulting provides management, administrative and consulting services
to other companies. Sprott U.S. Holdings Inc. includes Sprott Global
Resource Investments Ltd, Sprott Asset Management USA Inc., and
Resource Capital Investments Corporation. Sprott Inc. is headquartered
in Toronto, Canada, and is listed on the Toronto Stock Exchange under
the symbol "SII". For more information on Sprott Inc., please visit www.sprottinc.com.
SOURCE: Sprott Inc.
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