TORONTO, Aug. 8, 2013 /CNW/ - Sprott Inc. (TSX: SII)
("Sprott" or the "Company") today announced its financial results
for the three and six months ended June 30, 2013.
Q2 2013 Overview
- Assets Under Management ("AUM") were $7.1 billion as at June 30, 2013, compared to $8.5 billion as at June 30, 2012 and $9.1 billion as at March 31, 2013
- Assets Under Administration ("AUA") were $2.6 billion as at June 30, 2013, compared to $3.8 billion as at June 30, 2012 and $3.3 billion as at March 31, 2013
- Management Fees were $21.5
million, a decrease of 23.6% compared with the three months
ended June 30, 2012
- EBITDA was $8.1 million
($0.05 per share), compared with
$10.4 million ($0.06 per share) for the three months ended
June 30, 2012, a decrease of
22.0%
- Net loss was $6.7 million
(negative $0.04 per share) for the
three months ended June 30,
2013, compared with net income of $0.7 million ($0.00
per share) for the three months ended June 30, 2012
Subsequent Events
- On July 23, 2013, Sprott
completed the acquisition of all of the outstanding shares of
Sprott Resource Lending Corp.
- As previously announced, effective July
31, 2013 Renewable Energy Developers Inc. ("ReD"), formerly
Sprott Power Corp. terminated the Management Services Agreement
between Sprott Consulting Limited Partnership and ReD.
"In July, we completed the acquisition of Sprott
Resource Lending Corp. in a transaction that further strengthens
our balance sheet and provides us with the ability to reposition
our business to thrive in a changing asset management landscape,"
said Mr. Grosskopf. "We now have more than $350 million in available capital that we will
actively deploy to seed new products and pursue synergistic
acquisition opportunities. We also intend to re-launch our
successful resource lending strategy and expand our private equity
business through new limited partnerships that we will be
developing this fall."
"We are focused on positioning the business for
better performance, developing new products and increasing client
diversity," continued Mr. Grosskopf. "At the same time, we are
committed to managing expenses through prudent cost cutting
measures."
|
For the three months
ended |
|
For the six months
ended |
|
|
June
30, |
|
June
30, |
|
($ in millions) |
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
|
|
|
|
|
|
|
|
AUM, beginning of period |
9,110 |
|
9,683 |
|
9,931 |
|
9,137 |
|
Net sales (redemptions) |
(144) |
|
(158) |
|
(418) |
|
387 |
|
Market value depreciation of portfolios |
(1,819) |
|
(1,040) |
|
(2,366) |
|
(1,039) |
|
AUM, end of period |
7,147 |
|
8,485 |
|
7,147 |
|
8,485 |
|
Assets Under Management
At June 30,
2013, AUM decreased by 15.8% to $7.1
billion from $8.5 billion at
June 30, 2012. Net redemptions
for the three months ended June 30,
2013 were nearly $0.2 billion.
Average AUM for the three months ended June 30, 2013 was $8.0 billion compared with $9.0 billion for the three months ended
June 30, 2012, a decrease of
10.8%.
Income Statement
Total revenues for the three months ended
June 30, 2013, decreased
by 39.6% to $16.6 million from
$27.4 million for the three months
ended June 30, 2012. For the six
months ended June 30, 2013, total
revenues decreased by 38.6% to $44.1
million from $71.8 million in
the first six months of 2012.
For the three months ended June 30, 2013, management fees decreased by
23.6% to $21.5 million from
$28.1 million in the three months
ended June 30, 2012. For
the first six months of 2013, management fees decreased by 22.4% to
$47.4 million from $61.1 million in the first half of 2012. The
decrease in management fees is primarily attributable to both the
lower average AUM for the three and six months ended June 30, 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
$9.5 million, compared with
$4 million in the three months ended
June 30, 2012. For the six
months ended June 30, 2013, losses
from proprietary investments totaled $12.5
million, compared with gains of $0.3
million during the first six months of 2012.
Commission revenue for the three months ended
June 30, 2013, decreased by
$0.5 million to $1.6 million from $2.1
million during the three months ended June 30, 2012. For the six months ended
June 30, 2013, commission revenue
decreased by $4.2 million to
$3.6 million from $7.8 million during the prior year period.
Total expenses for the three months ended June 30, 2013 were $26.7
million, an increase of $0.5
million or 1.7% compared with $26.2
million for the three months ended June 30, 2012. Total expenses for the first six
months of 2013 were $50.4 million, an
increase of 2.0% from $49.4 million
in the six months ended June 30,
2012.
EBITDA for the three months ended June
30, 2013 was $8.1 million,
representing a decrease of $2.3
million or 22.0% compared with the three months ended
June 30, 2012. For the six months
ended June 30, 2013, EBITDA
decreased by 30.3% to $18.5 million
from $26.6 million in the first half
of 2012.
Net loss for the three months ended June
30, 2013 was $6.7 million
(negative $0.04 per share) compared
to net income of $0.7 million
($0.00 per share) for the three
months ended June 30, 2012. Net loss
for the first six months of 2013 was $4.6
million (negative $0.03 per
share), compared to net income of $17.7
million ($0.10 per share) for
the six months ended June 30,
2012.
Dividends
On May 7, 2013, a
dividend of $0.03 per common share
was declared for the quarter ended March 31,
2013. On August 7, 2013,
a dividend of $0.03 per common share
was declared for the quarter ended June 30,
2013.
Conference Call and Webcast
A conference call and webcast will be held
today, Thursday, August 8, 2013 at
10:00am ET to discuss the Company's
financial results. To participate in the call, please dial
416-764-8688 or 1-888-390-0546 ten minutes prior to the scheduled
start of the call. A taped replay of the conference call will be
available until Thursday, August 15,
2013 by calling 416-764-8677or 1-888-390-0541, reference
number 29871520. 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.