CALGARY, March 26, 2012 /CNW/ - Aston Hill Financial Inc. ("Aston Hill" or the "Company") (TSX:AHF) announces it has filed its Annual Audited Consolidated Financial Statements for the year ended December 31, 2011 and related Management Discussion and Analysis with Canadian securities regulatory authorities.
For the year ended December 31, 2011, Aston Hill's revenue almost doubled to $18.2 million versus $9.3 million in 2010. The 96% revenue increase was due to the increase in assets under management and advisory throughout 2011. Aston Hill Assets under Management and Advisory ("AUM") increased 98% year-over-year from $2.86 billion at December 31, 2010 to $5.67 billion at December 31, 2011. The notable rise in AUM is due to the continued growth and above-median performance of funds for which Aston Hill is sub-advisor to IA Clarington Investments Inc., as well as new fund mandates, fund acquisitions and the corporate acquisition of Morrison Williams. Total expenses, excluding interest and accretion expenses, non-recurring acquisition-related legal costs and MER absorption expenses, increased approximately 64% from the prior year mainly due to additional employees from the Morrison Williams acquisition as well as the hiring of in-house wholesale marketing personnel during the year. Aston Hill's AUM on current funds advised and managed continues to increase subsequent to year end. As at February 29, 2012, AUM was $5.90 billion.
EBITDA for the year ended December 31, 2011 was $4.9 million, an increase of 133% from the prior year amount of $2.1 million. EBITDA for the fourth quarter of 2011 was $1.6 million versus $0.3 million for the same quarter of 2010, a 433% increase. Fourth quarter 2011 EBITDA excluding the provision for the annual short-term employee incentive made in the quarter was $3.4 million compared with $1.7 million for the fourth quarter of 2010.
At December 31, 2011, the Company has $6.9 million in working capital to provide for future operations and business activity versus $3.8 million at December 31, 2010. Also, the Company currently has available a $4.0 million revolving credit facility with a Canadian chartered bank that it has yet to draw on.
Subsequent to quarter end, on January 24, 2012 the Company granted 1,349,000 stock options to certain directors, officers, employees and consultants to acquire the same number of common shares at $1.52 per share that vest over a three year period. Also subsequent to year end, the Company announced a regular quarterly cash dividend of $0.01 per common share payable to shareholders on March 9, 2012.
Aston Hill is a diversified asset management company with a suite of retail mutual funds, closed end funds, private equity funds, hedge funds and segregated institutional funds. The Company is also engaged in oil and gas property management. Aston Hill has offices in Calgary and Toronto.
The TSX has neither approved nor disapproved the information contained herein.
- EBITDA: EBITDA is not a standardized earnings measure prescribed by IFRS; however, management believes that most of its shareholders, creditors, other stakeholders and investment analysts prefer to use this performance measure in analyzing Aston Hill's results.
- Forward-Looking Statements: This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements.
For a detailed description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's annual financial statements and management discussion and analysis for the year ended December 31, 2011, both of which are available at www.sedar.com. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking statements.
For further information:
Chief Executive Officer
Aston Hill Financial Inc.
Vice President and CFO
Aston Hill Financial Inc.