TORONTO, May 8, 2013 /CNW/ - Sprott Inc. (TSX: SII)
("Sprott" or the "Company") today announced its financial results
for the three months ended March 31,
2013.
Q1 2013 Overview
- Assets Under Management ("AUM") were $9.1 billion as at March 31, 2013, compared to $9.7 billion as at March 31, 2012 and $9.9 billion as at December 31, 2012
- Assets Under Administration ("AUA") were $3.3 billion as at March 31, 2013, compared to $4.6 billion as at March 31, 2012 and $3.7 billion as at December 31, 2012
- Management Fees were $26.0
million, a decrease of 21.3% compared with the three months
ended March 31, 2012
- EBITDA was $10.4 million
($0.06 per share), compared with
$16.2 million ($0.10 per share) for the three months ended
March 31, 2012, a decrease of
35.6%
- Net income was $2.1 million
($0.01 per share) for the three
months ended March 31, 2013, a
decrease of 87.7% from $16.9 million
($0.10 per share) in the three months
ended March 31, 2012
- Named John Wilson and Scott
Colbourne Co-Chief Investment Officers of Sprott Asset Management
LP
- Completed non-brokered private placement with an institutional
investor for gross proceeds of $25
million and seeded Sprott Macro Managers Fund
- Resource Capital Investment Corporation raised US$35 million in a new fixed-term limited
partnership
- Signed joint venture agreement to launch new global mining fund
with Zijin Mining Group Co., Ltd.
"The first quarter and subsequent month have
continued to be challenging for Sprott and our strategies
concentrated on investments in precious metals and their related
equities," said Peter Grosskopf,
Chief Executive Officer of Sprott. "While we remain confident that
this positioning will be rewarded with much better performance once
markets become less comfortable with the results of quantitative
easing, we also continue to build other areas of our firm to
incorporate a broader range of investment strategies. We are
pleased with the growth of our enhanced equity, private equity and
lending and fixed income areas."
"One of our priorities is to make our products
more attractive to institutional investors," continued Mr.
Grosskopf. "During the first quarter, we took an important step in
this process with the launch of our first institutionally-focused
hedge fund, which will draw on the combined strengths of our
organization."
"We have also recently increased our
international presence through an agreement to launch a global
mining fund with Zijin Mining Co., Ltd., one of China's largest gold and copper miners," added
Mr. Grosskopf. "Our global brand positioning has led to a number of
new opportunities to co-invest with international partners and we
expect this to become a growing part of our business going
forward."
|
For the three
months ended |
|
|
March 31, |
|
($ in millions) |
2013 |
2012 |
|
|
|
AUM, beginning of period |
9,931 |
9,137 |
Net sales (redemptions) |
(274) |
540 |
Market value appreciation (depreciation) of
portfolios |
(547) |
6 |
AUM, end of period |
9,110 |
9,683 |
Assets Under Management
At March 31,
2013, AUM decreased by 5.9% to $9.1
billion from $9.7 billion at
March 31, 2012.
Net redemptions for the three months ended
March 31, 2013 were $0.3 billion. Collectively, the Company's other
Mutual Funds, Managed Accounts and Domestic Alternative Investment
Strategies experienced net redemptions of approximately
$0.2 billion for the three months
ended March 31, 2013. The
Offshore Funds collectively, had redemptions resulting in net
outflows for the three months ended March 31, 2013 of approximately $49 million or 25.6% of offshore AUM at the
beginning of the year. The launch of Resource Capital Investment
Corporation added $35 million to
AUM.
Average AUM for the three months ended
March 31, 2013 was $9.5 billion compared with $10.1 billion for the three months ended
March 31, 2012, a decrease of
6%.
Income Statement
Total revenue for the three months ended
March 31, 2013, decreased by
37.9% to $27.6 million from
$44.4 million for the three months
ended March 31, 2012.
For the three months ended March 31, 2013, management fees decreased by
21.3% to $26.0 million from
$33.0 million in the three months
ended March 31, 2012. The
decrease in management fees is primarily attributable to both the
lower average AUM for the three months ended March 31, 2013 as well as an increase in
lower fee products such as the physical bullion trusts and
fixed-income funds.
Losses from proprietary investments, which
include investments in products that Sprott manages, certain other
resource-related stocks and warrants, and bullion, totaled
$3.0 million, compared with gains of
$4.2 million in the three months
ended March 31, 2012.
Commission revenue for the three months ended
March 31, 2013, decreased by
$3.8 million to $1.9 million from $5.7
million during the three months ended March 31, 2012.
Total expenses for the three months ended
March 31, 2013 were $23.7 million, an increase of 2.3% from
$23.2 million in the three months
ended March 31, 2012.
EBITDA, which excludes the impact of income
taxes and certain non-cash expenses, decreased by 35.6% to
$10.4 million from $16.2 million in the three months ended
March 31, 2012.
Net income for the three months ended
March 31, 2013 was $2.1 million ($0.01
per share), compared with $16.9
million ($0.10 per share)
earned during the three months ended March 31, 2012.
Dividends
On March 26, 2013,
a dividend of $0.03 per common share
was declared for the quarter ended December
31, 2012. The dividend was paid on April 23, 2013 to shareholders of record at the
close of business on April 8,
2013.
On May 7, 2013, a
dividend of $0.03 per common share
was declared for the quarter ended March 31,
2013.
Conference Call and Webcast
A conference call and webcast will be held
today, Wednesday, May 8, 2013 at
11:00am ET to discuss the Company's
financial results. To participate in the call, please dial
1-877-856-6014 ten minutes prior to the scheduled start of the call
and either provide the name of the call or enter reference number
63961026. A taped replay of the conference call will be available
until Tuesday, May 14, 2013 by
calling 416-849-0833 or 1-855-859-2056, reference number
63961026.
The conference call will be webcast live at
www.sprottinc.com and www.newswire.ca
*Non-IFRS Financial Measures
This press release includes financial terms
(including AUM, AUA, EBITDA and net sales) that the Company
utilizes to assess the financial performance of its business that
are not measures recognized under International Financial Reporting
Standards ("IFRS"). These non-IFRS measures should not be
considered alternatives to performance measures determined in
accordance with IFRS and may not be comparable to similar measures
presented by other issuers. For additional information regarding
the Company's use of non-IFRS measures, including the calculation
of these measures, please refer to the "Non-IFRS 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 26,
2013. 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. Sprott U.S. Holdings Inc. includes Sprott Global
Resource Investments Ltd, Sprott Asset Management USA Inc., and Resource Capital Investments
Corporation. 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.
SOURCE Sprott Inc.