DundeeWealth(TM) reports third quarter 2009 results

TORONTO, Nov. 3 /CNW/ - DundeeWealth Inc. ("DundeeWealth" or the "Company") (TSX: DW) today released interim unaudited financial results for the three and nine months ended September 30, 2009. In the first nine months of 2009, the Company earned $106.6 million before interest, taxes, depreciation and amortization ("EBITDA") with net earnings of $40.4 million. Included in net earnings is a fair value increase related to the Company's investment in asset-backed commercial paper of $48.9 million ($34.7 million after tax), partially offset by an impairment of the value of our portfolio of collateralized loan obligations of $9.5 million ($6.7 million after tax).

EBITDA for the three months ended September 30, 2009 was $42.9 million, compared to EBITDA of $40.7 million earned in the second quarter of this year. Net earnings of $12.9 million for the third quarter include a fair value adjustment of $2.9 million ($2.1 million after tax) related to DundeeWealth's investment in asset-backed commercial paper. Excluding the impact of this adjustment, net earnings for the quarter ended September 30, 2009 were $10.8 million.

    
    Highlights
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                 As at:                          September 30,   December 31,
           (in billions of $)                        2009           2008
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    AUM (Assets Under Management)                    33.6           25.4
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    AUA (Assets Under Administration)                24.9           22.1
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    Bank Deposits                                     6.8            4.7
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    Total(1)                                         65.4           52.2
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        For the nine months ended:               September 30,  September 30,
           (in millions of $)                        2009           2008
    -------------------------------------------------------------------------
    Revenues                                          531            648
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    EBITDA                                            107            126
    -------------------------------------------------------------------------
    

Using a portion of the proceeds of a $200 million debt offering that closed on September 25, 2009, the Company repaid all amounts outstanding under its credit facility.

Consolidated revenues for the three months ended September 30, 2009 were $191.0 million compared with $200.8 million for the same period in 2008.

"Although revenues are not yet back to the levels we reached pre-market collapse, we have reported an upward trend quarter over quarter this year while at the same time seeing our cost containment initiatives deliver on expectations," said David Goodman, President and Chief Executive Officer of DundeeWealth. "Despite the indiscriminate hardship placed on our industry last year, our balance sheet is the healthiest it has been in years. Having paid off all bank debt, we are in a position to pursue organic growth and consider acquisition opportunities that fit our core business model."

Management fee revenues were $114.3 million in the third quarter of 2009 compared with $123.8 million for the same period last year. The Company may also earn a performance fee when the investment performance of certain eligible AUM exceeds an applicable benchmark. As of October 31, 2009, the Company had $6.6 billion in AUM subject to performance fees. Based on market conditions at October 31, 2009, unrecognized net performance fees, before tax, would be approximately $11.7 million(2).

Dynamic Funds(TM) ("Dynamic") continued to lead its peer group in asset gathering activities in the third quarter of 2009. According to data provided by the Investment Funds Institute of Canada, Dynamic was the number one independent asset manager in Canada with respect to sales of long-term funds year to date, with net additions of $1.7 billion. Our mutual fund market share increased to 3.56% at September 30, 2009 from 3.03% at the end of last year.

"We have demonstrated a unique ability to gather assets in a wide variety of market conditions," added Mr. Goodman. "The proven investment discipline of our portfolio management team will help us to continue to capture market appreciation on the upside."

Revenues from capital markets activities in the quarter ended September 30, 2009 were $20.7 million, compared to $9.9 million for the same period last year. DundeeWealth's retail financial services revenue in the third quarter of 2009 was $62.7 million, compared to $75.6 million for the same period last year.

For the nine months ended September 30, 2009, selling, general and administrative ("SG&A") expenses decreased 14% compared with the same period last year. SG&A expenses for the three months ended September 30, 2009 decreased by 2% compared to the previous quarter, while consolidated revenues increased by the same percentage.

For detailed interim unaudited consolidated financial statements, along with Management's Discussion and Analysis as at and for the three and nine months ended September 30, 2009, please refer to DundeeWealth's website www.dundeewealth.com or www.sedar.com.

    
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    (1) Due to rounding, figures may not add to total shown
    (2) Performance fees are generally determined on December 31 of each
        year, and are only included in earnings when the amount of
        performance fees earned can be determined with certainty. Performance
        fees are impacted by capital market forces and therefore variances to
        this amount on a period by period basis may be significant.
    

Conference Call

President and Chief Executive Officer David Goodman will host a conference call with analysts today at 10:00 a.m. ET to discuss the results. Joining Mr. Goodman on the call will be John Pereira, Chief Financial Officer, and other senior executives. Investors may listen to the discussion by dialing 416-641-6104 or 1-866-696-5894 (passcode: 8277505, followed by the number sign).

The call will be available for playback at 12 noon on November 3 until November 17, 2009 at 416-695-5800 or 1-800-408-3053 (passcode: 5100106, followed by the number sign). Conference call highlights will be archived on DundeeWealth's website (www.dundeewealth.com).

About DundeeWealth Inc.

DundeeWealth is a Canadian owned, independent wealth management company that oversees $65.4 billion in assets under management and administration. It provides diversified wealth management and investment solutions including alternative and tax-advantaged products, capital markets and advisory services to financial advisors, institutions, corporations and foundations, and innovative wealth management through independent financial advisors across Canada. Its award winning investment brand, Dynamic Funds, managed by Goodman & Company, Investment Counsel Ltd., is also available outside of Canada through distribution platforms in Europe and the United States. DundeeWealth is listed on the Toronto Stock Exchange (TSX: DW).

SOURCE DUNDEEWEALTH INC.

For further information: For further information: John Pereira, Chief Financial Officer, DundeeWealth Inc., (416) 365-5180; Myra Reisler, Manager, Public Affairs, DundeeWealth Inc., (416) 365-5370

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DUNDEEWEALTH INC.

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