SPROTT INC. ANNOUNCES 2010 FOURTH QUARTER AND YEAR END RESULTS
24 Marzo 2011 - 12:00PM
PR Newswire (Canada)
TORONTO, March 24 /CNW/ -- TORONTO, March 24 /CNW/ - Sprott Inc.
(TSX: SII) ("Sprott" or the "Company") today announced its
financial results for the three and twelve month periods ended
December 31, 2010. Fiscal 2010 Highlights -- Assets Under
Management ("AUM") were $8.5 billion as at December 31, 2010,
compared to $4.8 billion as at December 31, 2009 and $6.5 billion
as at September 30, 2010 -- Performance fees were $200.1 million,
an increase of $187.1 million compared with 2009 -- Management Fees
were $103.7 million, an increase of 17.8% compared with 2009 --
Base EBITDA was $43.4 million, compared with $33.7 million in 2009
-- Cash Flow from Operations was $1.01 per share compared with
$0.20 per share in 2009 -- EBITDA was $202.0 million, compared with
$48.5 million in 2009, an increase of 316.8% -- Net income
increased by 312.3% to $131.2 million ($0.87 per share), from $31.8
million ($0.21 per share) in 2009 -- Peter Grosskopf appointed
Chief Executive Officer of Sprott Inc. -- Signed Letter of Intent
to acquire Global Group of Companies -- Completed IPO of Sprott
Physical Gold Trust and two follow-on offerings and IPO of Sprott
Physical Silver Trust for total gross proceeds of US$1.6 billion --
Completed IPO of Sprott 2010 Flow-Through Limited Partnership for
gross proceeds of $51.0 million -- Sprott Consulting entered into
management services agreements with Sprott Resource Lending Corp.
and Sprott Power Corp. -- Launched Fixed Income product suite --
Sprott Capital Hedge LP was named "Fund of the Year" at the 2010 AR
Awards Subsequent events: -- Completed acquisition of Global Group
of Companies -- Paid special dividends totalling $0.72 per share --
Completed IPO of Sprott 2011 Flow Through Limited Partnership for
gross proceeds of $90.7 million -- Named David Franklin Chief
Executive Officer of Sprott Private Wealth "In 2010, driven by both
outstanding investment performance and strong inflows into new
products and businesses, our Assets Under Management increased
almost 80% to $8.5 billion," said Peter Grosskopf, CEO of Sprott
"On the year, eleven of our funds posted returns of more than 30%
of which four delivered returns greater than 50%. These exceptional
results generated more than $200 million in performance fees for
Sprott. Based on these results, the Board of Directors declared
special dividends totaling 72 cents per share." "In addition to our
record performance for the year, we also made excellent progress
advancing our growth strategy and diversifying our business,"
continued Mr. Grosskopf. "The acquisition of the Global Companies
allowed us to establish a foothold in the U.S., while strengthening
our already deep investment team with the additions of Rick Rule
and his team of technical resource investment experts. We also
launched several other platforms for growth, including the Sprott
Physical Gold Trust and the Sprott Physical Silver Trust, which
together have contributed $2 billion to our Assets Under
Management." "Sprott Consulting was very active in 2010, with
Sprott Resource Lending Corp. and Sprott Power Corp. joining Sprott
Resource Corp. in its portfolio of managed companies," added Mr.
Grosskopf. "Kevin Bambrough and his team have proven to be ahead of
the crowd when it comes to investing in real assets to create real
wealth. With growing investor interest in agriculture, energy, and
precious metals, we believe they are poised to deliver tremendous
results in 2011, as the broader market begins to align with our
macro-economic views."
____________________________________________________________________
| $ millions |Year ended December |Year ended December 31,| | | 31,
2010 | 2009 |
|_______________________|____________________|_______________________|
|AUM, beginning of year | 4,774| 4,449|
|_______________________|____________________|_______________________|
|Net sales (redemptions)| 1,448| (571)|
|_______________________|____________________|_______________________|
|Market value | 2,323| 896| |appreciation of | | | |portfolios | |
|
|_______________________|____________________|_______________________|
|AUM, end of year | 8,545| 4,774|
|_______________________|____________________|_______________________|
Assets Under Management For the year ended December 31, 2010, AUM
were approximately $8.5 billion, compared with $4.8 billion at
December 31, 2009. The 79% increase in AUM resulted from a
combination of strong net flows and $2.3 billion in market value
appreciation of Funds, Managed Accounts and Managed Companies. Net
sales for the year were $1.5 billion, compared with net redemptions
of $571 million for the year ended December 31, 2009. During the
fourth quarter of 2010, AUM increased by $2.0 billion to $8.5
billion from $6.5 billion at September 30, 2010. The increase
reflected the combination of $573 million in net sales and $1.5
billion in net market value appreciation of Funds, Managed Accounts
and Managed Companies. The majority of the net sales during the
quarter were related to the launch of the Sprott Physical Silver
Trust. Income Statement Total revenue for the year ended December
31, 2010 increased by 200.4% to $323.0 million, from $107.5 million
in 2009. Management fees increased by 17.8% to $103.7 million, from
$88.0 million in 2009, as monthly average AUM increased by
approximately 30.7% over the same period. Management fee
margins fell to 1.77% in 2010 from 1.96% in 2009. The decrease is
mainly due the significant growth in bullion funds, which have a
lower management fee than the majority of the other Sprott Funds.
Performance fees for the year ended December 31, 2010 were $200.1
million, compared with $13.0 million in the prior year. In 2010,
Performance fees were generated mainly by domestic hedge funds and
offshore funds and a number of mutual funds that previously had
carry-forward return deficiencies, recaptured those deficiencies
and began accruing performance fees. In 2009, the majority of
performance fees were generated by the Company's domestic and
offshore hedge funds. Gains from proprietary investments totaled
$8.5 million for the year ended December 31, 2010, compared with
gains of $5.0 million in 2009. In 2010, sales of public equities
resulted in a net realized gain of $0.4 million, and the market
value of proprietary investments increased by $8.1 million.
Commissions revenue for the year increased to $6.2 million from
$0.l million the prior year. The significant increase was mainly
due to commissions earned by Sprott Private Wealth LP on the sale
of Sprott products and private placement opportunities to Sprott
Private Wealth clients. Other income increased by $3.1 million in
2010 to $4.5 million from $1.4 million for the year ended December
31, 2009. Total expenses for the year ended December 31, 2010 were
$150.0 million, an increase of $87.6 million, or 140.5%, compared
with $62.4 million for 2009. The increase in the current year
is mainly attributable to an increase in compensation and benefits
of $55.7 million, an increase in stock-based compensation of $25.7
million, trailer fees of $2.4 million, general and administrative
costs of $2.6 million, and donations expense of $1.2 million. Net
income for the year ended December 31, 2010 was $131.2 million
($0.87 per share) as compared with net income of $31.8 million
($0.21 per share) in 2009. For the fourth quarter of 2010, total
revenue was $241.9 million compared with $35.7 million in the prior
year period. Management fees increased to $31.5 million from $23.1
million. Performance fees increased to $199.1 million from $10.6
million in the fourth quarter of 2009. Base EBITDA was $12.4
million, compared with $10.0 million in the fourth quarter of 2009.
Net income was $108.0 million ($0.72 per share) compared to $13.3
million ($0.09 per share) in the prior year period. Dividends On
January 10, 2011, a special dividend in the amount of $0.60 per
common share was declared. The special dividend related to
performance fees received for 2010 and was paid to shareholders of
record at the close of business on February 3, 2011. On March 22,
2011, the Company declared a second special dividend of $0.12 per
common share related to performance fees received for 2010. The
shares issued from treasury on February 4, 2011 as a result of the
acquisition of the Global Companies are not eligible to receive
this dividend. On March 22, 2011, the Company declared a dividend
of $0.03 per common share for the quarter ended December 31, 2010.
The shares issued from treasury on February 4, 2011 as a result of
the acquisition of the Global Companies are not eligible to receive
this dividend. Conference Call and Webcast A conference call and
webcast will be held today, Thursday, March 24, 2011, at 10:00am ET
to discuss the Company's financial results. To access the call,
please dial 647-427-7450 or 1-888-231-8191 ten minutes prior to the
scheduled start of the call. A taped replay of the conference call
will be available until Thursday, March 31, 2011 by calling
416-849-0833 or 1-800-642-1687, reference number 47229729. The
conference call will also be webcast live at www.sprottinc.com and
www.newswire.ca. An archived replay of the webcast will be
available for 365 days. *Non-GAAP Financial Measures This press
release includes financial terms (including AUM, EBITDA, Base
EBITDA, Cash Flow from Operations and net sales) 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 should not
be considered alternatives to performance measures determined in
accordance with GAAP and may not 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 at www.sprottinc.com and on SEDAR at www.sedar.com.
Forward-Looking Statements This release contains "forward-looking
statements" which reflect the current expectations of the Company.
These statements reflect management's current beliefs with respect
to future events and are based on information currently available
to management. Forward-looking statements involve significant known
and unknown risks, uncertainties and assumptions. Many factors
could cause actual results, performance or achievements to be
materially different from any future results, performance or
achievements that may be expressed or implied by such
forward-looking statements including, without limitation, those
listed under the heading "Risk Factors" in the Company's annual
information form dated March 31, 2010. Should one or more of these
risks or uncertainties materialize, or should assumptions
underlying the forward-looking statements prove incorrect, actual
results, performance or achievements could vary materially from
those expressed or implied by the forward-looking statements
contained in this release. Although the forward-looking statements
contained in this release are based upon what the Company believes
to be reasonable assumptions, the Company cannot assure investors
that actual results, performance or achievements will be consistent
with these forward-looking statements. These forward-looking
statements are made as of the date of this release and the Company
does not assume any obligation to update or revise them to reflect
new events or circumstances. About Sprott Inc. Sprott Inc. is a
leading independent asset manager dedicated to achieving superior
returns for its clients over the long term. The Company currently
operates through four business units: Sprott Asset Management LP,
Sprott Private Wealth LP, Sprott Consulting LP, and Sprott U.S.
Holdings Inc. Sprott Asset Management is the investment
manager of the Sprott family of mutual funds and hedge funds and
discretionary managed accounts; Sprott Private Wealth provides
wealth management services to high net worth individuals; and
Sprott Consulting provides management, administrative and
consulting services to other companies, including Sprott Resource
Corp. (TSX: SCP), Sprott Resource Lending Corp. (TSX: SIL) (NYSE
AMEX: SILU) and Sprott Power Corp. (TSX: SPZ). Sprott U.S. Holdings
Inc. includes Global Resource Investments Ltd, Terra Resource
Investment Management Inc., and Resource Capital Investments Inc.
Sprott Inc. is headquartered in Toronto, Canada, and is listed on
the Toronto Stock Exchange under the symbol "SII". For more
information on Sprott Inc., please visit www.sprottinc.com.
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