CALGARY, March 27, 2013 /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, 2012 and related Management Discussion and Analysis with Canadian securities regulatory authorities.
For the year ended December 31, 2012, Aston Hill's revenue was $24.6 million, an increase of 35% from 2011 year-end of $18.2 million. The revenue increase was due mainly to the continued growth and performance of the Aston Hill mutual funds, a full year of revenues from the closed end funds and the institutional funds, and the services agreement with Argent Energy Trust signed in August 2012. Aston Hill Assets under Management, Administration and Advisory ("AUM") increased 14% year-over-year from $5.67 billion to $6.46 billion at December 31, 2012. The rise in AUM is mainly the result of new mutual fund subscriptions, the addition of Argent and the continued increase in the IA Clarington funds for which the Company is the sub-advisor. As at February 28, 2013, total AUM was $6.74 billion.
Total expenses were $15.98 million for 2012 as compared to $11.21 million for 2011 due to increases in marketing, compensation and office expenses related to building the Company's proprietary suite of open-ended mutual funds. AUM for these mutual funds increased from $108 million at January 1, 2012 to $300 million at December 31, 2012. As at February 28, 2013, Aston Hill open-ended mutual fund AUM was $383 million as these funds are now selling at their highest rates ever.
EBITDA for the year ended December 31, 2012 was $7.34 million before stock compensation ($5.13 million after stock compensation), up from the prior year amount of $6.43 million before stock compensation ($4.93 million after stock compensation). The EBITDA increase is a result of revenue increases from the Company's investment management services and products offset by increased compensation, office, marketing and product development costs related to the growth of Aston Hill's mutual funds.
"The Company ended 2012 and started the first two months of 2013 with very strong sales growth from our Aston Hill family of mutual funds" said Eric Tremblay, Chief Executive Officer. "We expect this trend to continue as we reap the benefits this year of a solid sales force and excellent fund performance provided by our portfolio managers in 2012".
Aston Hill Financial Inc. 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 the administration of Argent Energy Trust (TSX: AET.UN). Aston Hill Financial has offices in Calgary, Toronto and Halifax.
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, 2012, 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.
SOURCE: Aston Hill Financial Inc.
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Chief Executive Officer
Aston Hill Financial Inc.
Vice President and CFO
Aston Hill Financial Inc.