Dundee Corporation Reports Third Quarter 2010 Results
November 12 2010 - 5:22PM
Marketwired
Dundee Corporation (TSX: DC.A)(TSX: DC.PR.A)(TSX: DC.PR.B)
("Dundee" or the "Company") is pleased to announce that it has
posted its financial results and Management's Discussion and
Analysis for the quarter ended September 30, 2010 on its website
www.dundeecorporation.com and on the System for Electronic Document
Analysis and Retrieval ("SEDAR") at www.sedar.com.
On a year-to-date basis, Dundee Corporation generated net
earnings of $118.5 million or $1.47 per fully diluted share, more
than twice the net earnings of $51.8 million or $0.68 per fully
diluted share earned during the same period of the prior year.
Selected Consolidated Segmented Earnings
(In millions of dollars except per share amounts)
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Three Months Nine Months
For the three and nine months ended
September 30, 2010 2009 2010 2009
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Wealth management $ 24.7 $ 14.9 $ 77.5 $ 44.3
Real estate 22.3 11.3 48.1 21.6
Resource 17.5 5.9 37.7 6.6
Asset management (2.2) (2.4) 23.7 (4.7)
Intersegment 0.8 0.8 2.5 2.5
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63.1 30.5 189.5 70.3
Dilution (loss) gain, net 0.7 0.7 (5.6) 1.4
Income taxes (20.4) (1.0) (65.4) (19.9)
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Net earnings for the period $ 43.4 $ 30.2 $ 118.5 $ 51.8
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Fully diluted earnings per share $ 0.56 $ 0.39 $ 1.47 $ 0.68
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Improved earnings in the wealth management segment reflect the
impact of a continued increase in DundeeWealth's AUM, which reached
a record $42.6 billion at September 30, 2010, as well as
improvements in operating efficiencies. Through its trademark
Dynamic Funds, DundeeWealth remains the fastest growing company
among the 10 largest asset managers in Canada, a pace it has
maintained for the last five quarters. Leading the industry in net
sales, DundeeWealth's market share increased to 4.29% at September
30, 2010, compared with 3.56% at September 30, 2009.
DundeeWealth recently announced that its board of directors
approved a change to its dividend policy, replacing quarterly
dividend payments with monthly payments of $0.05 per share. The
change increases DundeeWealth's annual dividend by 114% and amounts
to $3.5 million per month for Dundee Corporation.
Earnings from the real estate segment increased to $48.1 million
during the nine months ended September 30, 2010 compared with $21.6
million earned in the same period of the prior year. Strengthened
by stronger demand in essentially all markets, and most notably in
western Canada, real estate margins grew to $68.8 million in the
first three quarters of 2010, a 50% increase compared to $46.0
million in margins earned in the same period of the prior year.
Earnings from the real estate segment also include the Company's
share of earnings from Dundee REIT, which increased to $8.9 million
in the first three quarters of 2010 compared to a loss of $2.3
million in the comparative period of 2009. Earnings from Dundee
REIT in the current period benefitted from the successful issuance
of $478 million in equity financings recently completed by Dundee
REIT, which allowed Dundee REIT to expand is leasable square
footage to 10.9 million at September 30, 2010.
Earnings from the resource segment were $37.7 million during the
nine months ended September 30, 2010 compared with earnings of $6.6
million in the same period of the prior year. Growth reflects
stronger earnings from equity accounted investments, which totalled
$39.8 million in the first three quarters of 2010 compared with
$7.9 million in the comparative period of the prior year.
In addition, in its first full quarter of operations, Eurogas
Corporation, the Company's 54% owned energy- based subsidiary,
generated net revenues of $8.2 million from producing oil and gas
assets acquired in June 2010.
Our asset management activities include the operations of Ned
Goodman Investment Counsel Limited ("NGIC") and Dundee Real Estate
Asset Management ("DREAM"). At September 30, 2010, NGIC and DREAM
provided sub-advisory and investment services to approximately $7.2
billion of third-party assets under management. In addition, NGIC,
together with Dundee Resources Ltd., also provides investment
services in respect of the Company's portfolio of securities. These
investments include both publicly listed and private companies in a
variety of resource sectors.
ABOUT DUNDEE CORPORATION
Dundee Corporation is an asset management company dedicated to
wealth management, real estate and resources that, combined,
reflect approximately $82 billion of free paying assets under
management and administration. Its domestic wealth management
activities are carried out through its 61% controlled subsidiary,
DundeeWealth Inc. Dundee Corporation's real estate activities are
conducted through its 70% owned subsidiary, Dundee Realty
Corporation, which operates as an asset manager of commercial real
estate with activities in a land and housing business in Canada and
the United States. Resource activities are carried out through its
wholly-owned subsidiary, Dundee Resources Limited. Asset management
activities are carried out through Ned Goodman Investment Counsel
Limited and Dundee Real Estate Asset Management (DREAM).
Contacts: Dundee Corporation Ned Goodman President and Chief
Executive Officer (416) 365-5665 Dundee Corporation Lucie Presot
Vice President and Chief Financial Officer (416) 365-5157
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