Dundee Corporation Reports First Quarter 2011 Financial Results
June 10 2011 - 5:49PM
Marketwired
Dundee Corporation (TSX: DC.A)(TSX: DC.PR.A)(TSX: DC.PR.B) (the
"Company") is today reporting its financial results as at and for
the three months ended March 31, 2011.
During the three months ended March 31, 2011, the Company
generated net earnings from continuing operations of $17.7 million,
or $0.17 per share on a fully diluted basis, compared with net
earnings from continuing operations of $15.5 million or $0.11 per
share in the same period of 2010.
Net earnings during the first quarter of 2011, including
earnings from discontinued operations, were $878.8 million, or
$12.20 per share on a fully diluted basis and include a gain of
$870.8 million from the divestment of the Company's interest in
DundeeWealth Inc. completed in February of the current year.
The Company's earnings from continuing operations reflect
improvements across each of its business segments. Real estate
operations generated net earnings before income taxes of $11.7
million during the first quarter of 2011, a 21% increase compared
with the $9.7 million earned in the same period of 2010. Earnings
from real estate operations benefitted from improved results in
Dundee Real Estate Investment Trust. The Company's equity earnings
from this investment increased to $3.9 million in the first quarter
of 2011 compared with a loss of $4.1 million incurred in the same
period of 2010.
Earnings from the Company's resource segment include a full
quarter of operations relating to Eurogas Corporation's oil and gas
assets in southern Ontario. As these assets were acquired late in
the second quarter of the prior year, there are no comparative
operating amounts reflected in earnings during the first quarter of
2010. Earnings from the resource segment were $7.3 million in the
three months ended March 31, 2011, compared with $7.1 million
earned in the same period of the prior year. Equity earnings from
the Company's resource based investments, including Breakwater
Resources Ltd. and Dundee Precious Metals Inc. were $11.1 million
in the first quarter of 2011, a 32% increase over the $8.4 million
earned in the same period of 2010.
The Company's asset management business continues to expand.
Management fees earned on asset management activities were $8.1
million in the first three months of 2011 compared with $6.4
million earned in the same period of 2010.
Ned Goodman Investment Counsel Limited ("NGIC"), the Company's
registered portfolio and investment fund manager, earned management
fees of $1.5 million in the first quarter of 2011 compared with
$1.0 million earned in the same period of the prior year. NGIC is
continuing to provide sub-advisory services to certain mutual funds
and other investment products managed by DundeeWealth Inc.
Dundee Real Estate Asset Management ("DREAM"), the asset
management division of the Company's real estate subsidiary,
generated management fees of $5.7 million in the first quarter of
2011 compared with $4.3 million earned in the same period of the
prior year, reflecting substantial acquisitions of real estate
property by entities for which DREAM provides real estate asset
management services.
Dundee Capital Markets Inc. generated earnings before taxes of
$5.3 million in the first three months of 2011, a decrease of 5%
compared with net earnings of $5.6 million earned in the same
period of 2010, reflecting increased selling, general and
administrative costs associated with its business restructuring.
Following the market volatility of recent years, 2010 and the first
quarter of 2011 have shown signs of renewed growth and investment
activities. This is evidenced in the growth of new issues and
mergers and acquisitions activity throughout diversified industry
sectors across Canada. While Dundee Capital Markets Inc. has
benefitted from this increased activity, with revenues increasing
almost 30% in the current quarter compared with the first quarter
of the prior year, emphasis has been placed on strengthening and
broadening competencies within its areas of focus including
resources, real estate, infrastructure and special situations, in
anticipation of a more specialized entrepreneurial firm.
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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