Gluskin Sheff + Associates Inc. announces third quarter fiscal 2009 results

    TORONTO, May 7 /CNW/ - Gluskin Sheff + Associates Inc. (the "Company")
announced today its results for the three and nine month periods ended March
31, 2009.
    The Company's revenues are derived from Base Management Fees, calculated
as a percentage of Assets Under Management ("AUM"), Performance Fees, which
are earned when the Company exceeds pre-specified rates of return, and
Investment and Other Income.
    During the quarter, AUM increased by approximately $0.2 billion from $3.7
billion as at December 31, 2008 to $3.9 billion as at March 31, 2009. This
increase is primarily attributable to net additions. AUM decreased by
approximately $1.2 billion from March 31, 2008 ($5.1 billion) to March 31,
2009 ($3.9 billion). This decrease in AUM is attributable to net additions of
approximately $87 million and approximately $1.3 billion in negative
investment performance.
    For the three months ended March 31, 2009, Base Management Fees decreased
to approximately $14.3 million from $19.8 million for the three months ended
March 31, 2008, a decrease of approximately 28%. For the nine months ended
March 31, 2009 Base Management Fees decreased to approximately $48.0 million
from $61.6 million or approximately 22% compared to the nine month period
ended March 31, 2008. These decreases are due primarily to the decrease in AUM
over the respective periods.
    For the three months ended March 31, 2009, Investment and Other Income
was approximately $0.1 million versus $0.5 million for the three month period
ended March 31, 2008. For the nine month period ended March 31, 2009,
Investment and Other Income was a loss of approximately $1.0 million versus
income of $2.3 million for the nine month period ended March 31, 2008. The
decreases were primarily due to losses on seeded investment strategies offset
by the interest earned on cash in the bank.
    Base EBITDA (exclusive of Performance Fees and non-cash expenditures) for
the three months ended March 31, 2009 was approximately $7.4 million, down
from $11.7 million for the comparable three month period ended March 31, 2008.
For the nine months ended March 31, 2009 Base EBITDA was $24.5 million,
compared to $38.3 million for the nine months ended March 31, 2008. These
decreases were primarily attributable to the decline in Base Management Fees.
    Net Income was $4.1 million or $0.14 per common share for the third
quarter ended March 31, 2009. For the nine months ended March 31, 2009 Net
Income was $15.4 million or $0.53 per common share.
    "Notwithstanding considerable efforts on the part of governments and
central banks around the world, the first two months of 2009 saw continuing
significant declines in the equity markets, much of which were erased in the
March rally" commented Gerald Sheff, Chairman and Chief Executive Officer.
    "Our defensive posture has served us well during these markets and our
outlook and the positioning of our investment portfolios remains cautious and
defensive. Looking ahead, with the addition of David Rosenberg as Chief
Economist and Strategist and the recent appointment of Brian Ginsler as Chief
Operating Officer, we continue to build our team and prudently manage the
business to ensure that we remain well-positioned to capitalize on the various
opportunities presented by changing market conditions."
    The Company also announced that Senator Hugh Segal tendered his
resignation as a director of the Company, effective March 3, 2009. The Board
of Directors and the Company thank Senator Segal for his service and wish him
well in his future endeavours.

    Financial Highlights:

    (unaudited 000's,
     except for                    3 Months   3 Months   9 Months   9 Months
     share amounts)                   Ended      Ended      Ended      Ended
                                     Mar 31,    Mar 31,    Mar 31,    Mar 31,
                                       2009       2008       2009       2008

    Assets Under Management
     ($ in millions)               $  3,858   $  5,116   $  3,858   $  5,116

      Base Management Fees         $ 14,309   $ 19,793   $ 48,040   $ 61,641
      Performance Fees                   11          -      3,200     13,164
      Investment & Other Income
       (Loss)                            58        481     (1,057)     2,292
    Total Revenue                  $ 14,378   $ 20,274   $ 50,183   $ 77,097

    Base EBITDA                    $  7,397   $ 11,735   $ 24,499   $ 38,306

    Net Income                     $  4,098   $  6,511   $ 15,444   $ 28,221

    Basic Earnings per Share          $0.14      $0.23      $0.53      $0.98

    Diluted Earnings per Share        $0.14      $0.22      $0.53      $0.96

    The Company's full financial statements and Management's Discussion and
Analysis can be found on the Company's website at and on

    Founded in 1984, Gluskin Sheff + Associates Inc. is one of Canada's
pre-eminent wealth management firms serving high net worth private clients and
institutional investors. Gluskin Sheff offers equity and fixed income
investment portfolios and is one of the largest alternative investment
managers in Canada. The Company's Subordinate Voting Shares are listed on the
Toronto Stock Exchange under the symbol "GS". For more information about the
Company, please visit our website at This press release
may contain forward-looking statements relating to Gluskin Sheff + Associates
Inc.'s business and the environment in which it operates. These statements are
based on the Company's expectations, estimates, forecasts and projections.
They are not guarantees of future performance and involve risks and
uncertainties that are difficult to control or predict. These risks and
uncertainties are discussed in the Company's regulatory filings available on
the Company's website at or at Actual
outcomes and results may differ materially from those expressed in these
forward-looking statements. Readers, therefore, should not place undue
reliance on any such forward-looking statements. Further, a forward-looking
statement speaks only as of the date on which such statement is made. The
Company undertakes no obligation to publicly update any such statement or to
reflect new information or the occurrence of future events or circumstances.

    Non-GAAP Measures

    Included in this press release are certain financial terms (including
Base EBITDA and AUM) that the Company utilizes to assess the financial
performance of its business that are not measures recognized under Canadian
generally accepted accounting principles (GAAP). These non-GAAP measures do
not have any standardized meanings prescribed by GAAP and should not be
considered alternatives to net income or any other measure of performance
determined in accordance with GAAP. Therefore, these non-GAAP measures are
unlikely to be comparable to similar measures presented by other issuers. For
additional information regarding the Company's use of non-GAAP measures,
including the calculation of these measures, please refer to the "Non-GAAP
financial measures" section of the Company's Management's Discussion and
Analysis and its financial statements available on the Company's website and
on the SEDAR website located at

For further information:

For further information: Valerie Barker, Chief Financial Officer and
Secretary, (416) 681-6002

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