Loring Ward Reports Second Quarter Results

    NEW YORK, Aug. 6 /CNW/ - Loring Ward International Ltd. (the Company)
(TSX: LW) today released its financial results for the second quarter ended
June 30, 2008. All figures are in U.S. dollars unless stated otherwise.
    Total assets under management and administration were $5.7 billion, a
decline of 0.8% from the prior year. Assets in the Company's turnkey asset
management program ("TAMP"), excluding the divested Loring Ward Capital
Management in both periods, were $5.4 billion, unchanged from the prior year.
    Revenue declined 8.1% to $11.6 million and 3.9% to $23.4 million for the
quarter and six months ended June 30, 2008, respectively. Exclusive of the
results of Loring Ward Capital Management, revenue declined 1.9% and increased
3.3% for the quarter and six months ended June 30, 2008, respectively.
    Net loss for the second quarter was $0.8 million or $0.10 cent per share,
as compared to net income of $0.9 million or $0.10 cents per share in the
prior year. For the six month period, net loss was $0.9 million or $0.11 cents
per share, as compared to net income of $2.5 million or $0.28 cents per share
in the prior year. Net income includes the results of the Company's
discontinued operations.
    Net loss from continuing operations for the second quarter was
$0.5 million or $0.07 cents per share as compared to net income from
continuing operations of $1.0 million or $0.11 cents per share in the prior
year. For the six month period, net loss from continuing operations was $0.04
million or $0.00 cents per share as compared to $3.2 million or $0.35 cents
per share in the prior year.
    Excluding the results of Loring Ward Capital Management, non-recurring
items in both periods, and the contribution from the declining Sports and
other run-off businesses, earnings before interest, taxes, depreciation and
amortization (Adjusted EBITDA(*)) was $2.6 million and $4.1 million for the
quarter and six months ended June 30, 2008, respectively, an increase of 64.1%
and 19.6% from the comparable periods in the prior year. Operating expenses in
2008 have increased as a result of the previously announced auction process
that may lead to the sale of the Company. The Company has incurred
$1.9 million and $2.1 million in non-recurring auction related expenses for
the three and six months ended June 30, 2008, respectively. Non-recurring
items in the table below include auction related costs in 2008 and a mark to
market gain on future consideration in 2007. No income tax benefit has been
recorded on the auction costs as it is considered more likely than not that
such benefit will not be realized.
    EBITDA and adjusted EBITDA are reconciled to net income from continuing
operations as follows:

                                     Three months                 Six months
                                    ended June 30,             ended June 30,
    ($ thousands)                2008         2007         2008         2007
    Net income from
     operations             $    (542)   $   1,001    $     (36)   $   3,151
    Add back: income
     taxes                      1,021          550        1,387        2,083
    Add back:
     amortization                 383          522          751        1,055
    Add back: interest
     expense                        -            -            -            -
    Deduct: interest
     income                       (85)        (405)        (296)        (746)
    EBITDA                        777        1,668        1,806        5,543
    Add back (deduct):
     Non-recurring items        1,877          215        2,081       (1,244)
    Add back (deduct):
     Sports contribution           (1)        (163)         242         (620)
    Add back (deduct):
     LWCM contribution            (95)        (161)         (73)        (287)
    Adjusted EBITDA             2,558        1,559        4,056        3,392

    Other highlights for the second quarter and year to date 2008 include:

    -   A net increase of 24 advisors with assets to 763, a year-to-date net
        increase of 39 advisors;
    -   A net increase of 916 investor accounts to 25,963, a year-to-date net
        increase of 1,871 or 7.8%;
    -   Net new assets of $148 million, a year-to-date net increase of $270
        million or 4.8% of beginning core TAMP assets;
    -   A dividend increase from CDN$0.7 cents to CDN$0.12 cents per share,
        paid May 31, 2008;

    "Our turnkey asset management program performed as expected in a
challenging market environment in the second quarter, with advisors and
investor accounts increasing to record levels, while total assets declined
only slightly sequentially from the first quarter of 2008 and 5.0% from the
year-end 2007 level," stated Robert P. Herrmann, Chief Executive Officer of
Loring Ward International Ltd. He added, "These are the times when the value
of a truly turnkey program, such as ours, shines through more than at any
other time, as our advisor clients are freed-up to maximize time guiding
clients through the economic uncertainty and market volatility."
    The Company's Q2 2008 Report to Shareholders and unaudited interim
financial statements are available on its website at

    About Loring Ward

    Loring Ward International Ltd. provides in its core business a turnkey
asset management program to some of America's most knowledgeable and
successful investment advisors and their clients. These services include
investment strategies and products, back office operational processing,
education and training, and business development support. The Company's U.S.
corporate offices are headquartered in New York. For more information, please
visit www.loringward.com.

    (*) EBITDA and adjusted EBITDA are not recognized measures under Canadian
generally accepted accounting principles and do not have a standardized
meaning prescribed by GAAP. EBITDA is a performance measure used by many
investors to provide an indication of cash available for distribution from
ongoing operations prior to debt service, capital expenditures, and income
taxes and is often used to compare companies on the basis of ability to
generate cash from ongoing operations. Management believes that this is a
useful supplemental measure that may assist investors in assessing the
Company's financial results.
    Investors should be cautioned that EBITDA should not be construed as an
alternative to net income, cash from operations, or other financial measures
determined in accordance with GAAP as indicators of the Company's performance.
The Company's method of calculating EBITDA may differ from other companies
and, accordingly, may not be comparable.

    The Company, in the ordinary course of its business, may explore
potential proposals or be the recipient of proposals with respect to strategic
opportunities and transactions, which may include strategic joint venture
relationships, significant debt or equity investments in or by the Company,
the acquisition or disposition of material assets or business lines, mergers,
new products or services, new distribution methods and other similar strategic
opportunities or transactions. The Company's policy is generally not to
publicly disclose the pursuit of a potential strategic opportunity or
transaction unless and until a definitive binding agreement is reached. The
public announcement of such matters could potentially materially affect the
price or value of the Company's securities. As a result, there can be no
assurance that investors who buy or sell the Company's securities are doing so
at a time when the Company is not pursuing a particular strategic opportunity
or transaction that, if publicly disclosed, could materially affect the price
or value of the Company's securities.

    Information in this news release that is not current or historical
factual information may constitute forward-looking information within the
meaning of securities laws. Forward-looking statements may include those
relating to the Company's objectives and strategies, as well as statements of
our beliefs, plans, dividend policy, expectations and intentions. Implicit in
this information are assumptions regarding future revenue and expenses,
economic conditions, and the result of pending or future litigation involving
the Company, as well as our business strategy, expectations, intentions, and
other matters. These assumptions may prove to be incorrect, and actual
outcomes and results, including the future operating results and economic
performance of the Company, may differ materially because of many factors,
including those discussed in this press release and in our other public
filings. For more information on these risks and uncertainties you should
refer to our detailed Financial Statements and Management's Discussion and
Analysis, as well as a broader description of certain challenges and risks
facing the Company, all of which is available at www.sedar.com. You should not
place undue importance on forward-looking information and should not rely upon
this information as of any other date. The Company disclaims any intention or
obligation to update the information in this press release or revise any other
forward-looking statements, whether as a result of new information, future
events or otherwise, except as expressly required by law.

For further information:

For further information: Robert Herrmann, Phone: (212) 907-8080, E-mail:

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