Saxon Financial reports results for fiscal 2007

    Revenue up 13%, earnings up 21% over 2006

    TORONTO, March 5 /CNW/ - Saxon Financial Inc. (TSX:SFI) reported
financial results for 2007 of 13% growth in revenue and a 21% increase in net
income. Saxon's assets under management grew 3% during the year, reaching
$12.9 billion at December 31, 2007.
    "Saxon's solid financial performance topped a year in which we extended
our reach into key distribution channels with retail product launches and new
institutional equity mandates," said Allan Smith, President and CEO. "While
capital markets remain volatile, we're well-positioned to capitalize on sales
and marketing initiatives that leverage our 22 year investment management

    Highlights: A year of growth, expansion & investment

    The following table summarizes Saxon's fourth quarter and year-end
    results for 2007.

    Financial Highlights                 Three month period      Year ended
    (in $thousands, except               ended December 31,     December 31,
     per share data)                       2007     2006       2007     2006
    Revenue(*)                          $13,194  $12,926    $54,868  $48,646
    EBITDA(xx)                           $5,940   $6,129    $26,420  $23,201
    Net income                           $4,470   $3,916    $17,768  $14,732
    Earnings per share                    $0.33    $0.29      $1.31    $1.08
    (*)    Revenue refers to management fee revenue and excludes investment
    (xx)   The amount of earnings before interest, taxes, depreciation and
           amortization ("EBITDA") is a non-GAAP measure used by management,
           investors and analysts to evaluate and analyze the Company's
           results. EBITDA does not have a standardized meaning and may not
           be comparable to similar measures presented by other companies.
           EBITDA is defined as earnings before investment income, interest
           expense, income taxes, depreciation and amortization.

    -   Assets under management climbed to $12.9 billion at December 31,
        2007, an increase of 3% or $367 million during the year. AUM was
        adversely impacted in the fourth quarter by net redemptions in mutual
        funds as value managers continued to be out of favour in a growth
        oriented market.

    -   Q4 revenue was $13.2 million, a 2% increase over the fourth quarter
        of 2006. Full year 2007 revenue increased 13% totaling $54.9 million,
        compared to $48.6 million in 2006.

    -   Net income in 2007 reached $17.8 million, an increase of 21% over
        2006. Earnings per share were $1.31 compared to $1.08 last year.
        Citigroup conversion costs in 2007 amounted to $0.03 per share which
        was offset by a favourable tax adjustment.

    -   Saxon's institutional business ended the year with five new clients
        and nine new mandates, building on the momentum of the last two

    -   Saxon High Income Fund was a finalist in its category at the 2007
        Canadian Investment Awards, which brings together investors and
        advisors to recognize leading investment products and firms. The Fund
        provided investors with strong relative returns in a year in which
        the income trust index struggled to regain steep losses from 2006.

    -   Saxon World Growth, Saxon Stock Fund and Saxon Small Cap were
        recognized as best of breed funds by Morningstar in its Analyst Picks
        List. As stated by Morningstar, inclusion in the List is "the highest
        honour we can bestow on a fund".

    -   Saxon built on its 22 year track record of investing in the small cap
        sector by launching three new small cap funds: Saxon Microcap Fund,
        Saxon U.S. Small Cap Fund and Saxon Global Small Cap Fund.

    -   Saxon extended its reach into the advisor channel with the successful
        launch of Advisor Series, a (front-load) full trailer fee series
        designed to pay competitive compensation to full-service advisors and
        financial planners.

    -   Saxon completed the conversion of its unitholder recordkeeping system
        to Citigroup in December followed by the transfer of fund accounting
        services in early January.

    For detailed financial statements, including management's discussion and
analysis, please refer to Saxon's website at

    Conference call

    Saxon will host a conference call to discuss these results on Wednesday
March 5, 2008, at 10:00 am EST. Please dial 416-695-7806, or toll-free
1-888-789-9572. Pass code: 3252643 (followed by the number sign). This
conference call will be recorded and available for replay for two weeks
following the earnings announcement at 800-408-3053 and 416-695-5800. Pass
code: 3252643(followed by the number sign).

    About Saxon Financial Inc.

    Saxon Financial Inc. is one of Canada's most respected value style
investment management firms. The Company has three principal businesses: Saxon
Funds Management Limited, which manages a family of high-performing mutual
funds; Howson Tattersall Investment Counsel Limited, an institutional asset
management business; and Howson Tattersall Private Asset Management Inc., a
private client asset management business.

For further information:

For further information: Mel Gabel, Chief Financial Officer, Saxon
Financial Inc., (416) 227-1617,; Jason Graham or
Daniel Tisch (media only), Argyle Communications, (416) 968-7311, ext. 229 or
223, or

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890