CALGARY, May 12, 2014 /CNW/ - Aston Hill Financial Inc. ("Aston Hill" or the "Company") (TSX:AHF) announces it has filed its unaudited interim Consolidated Financial Statements for the period ended March 31, 2014 and related Management Discussion and Analysis with Canadian securities regulatory authorities.
For the period ended March 31, 2014, Aston Hill's revenues were $11.1 million, an increase of 54% from March 31, 2013 revenue of $7.2 million. The revenue increase was mainly due to the continued growth and performance of the Aston Hill mutual funds and the acquisition of Connor Clark & Lunn Capital Markets Inc. (subsequently renamed Aston Hill Capital Markets Inc. "AHCM") in August 2013. Revenues quarter over quarter decreased by 2.6% from $11.4 million to $11.1 million. As of March 31, 2014, managed investment funds (comprising closed and open end funds) represent 62% of the Company's revenues. Aston Hill Assets Under Management, Administration and Advisory ("AUM") increased 8% year-over-year from $6.8 billion to $7.4 billion at March 31, 2014. The rise in AUM is mainly the result of new mutual fund subscriptions and the acquisition of AHCM in 2013. Quarter-over-quarter AUM decreased from $7.8 billion to $7.4 billion mainly due to loss of pension fund assets. During the quarter, the Company's core business of mutual and closed end funds increased by $191 million (including $184 million in gross subscriptions) and $54 million, respectively. This represents a year-over-year increase of 75% and our highest level ever of quarterly mutual fund gross sales.
General and administrative (G&A) expenses were $5.7 million for the first three months of 2014 as compared to $6.5 million for the prior quarter. Year-over-year G&A expenses have increased from $4.3 million to $5.7 million due to an increase in the number of sales and AHCM employees. EBITDA for the three months ended March 31, 2014 was $2.8 million (before stock-based compensation and net investment gains or losses) up from the prior year's first quarter EBITDA of $2.1 million (before stock-based compensation and net investment gains or losses) and up from the fourth quarter 2013 EBITDA of $2.5 million (before stock-based compensation and net investment gains or losses). The year-over-year and quarter-over-quarter EBITDA increases are the result of the Company's focus on higher margin mutual fund and closed end fund sales and reduced G&A expenses.
The Company continued to repurchase common shares through its ongoing normal-course issuer bid with 289,000 shares being repurchased and cancelled in the first quarter of 2014.
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. Aston Hill Financial Inc. 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, 2013, 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 Asset Management Inc.
For further information:
Chief Executive Officer
Aston Hill Financial Inc.
Vice President and CFO
Aston Hill Financial Inc.