TORONTO, March 5, 2015 /CNW/ - Sprott Inc. (TSX: SII)
("Sprott" or the "Company") today announced its financial results
for the year ended December 31, 2014.
2014 Financial Overview
- Assets Under Management ("AUM") were $7.0 billion as at December 31, 2014, compared to $7.0 billion as at December 31, 2013 and $7.4
billion as at September 30,
2014
- Assets Under Administration ("AUA") were $1.9 billion as at December 31, 2014, compared to $2.3 billion as at December 31, 2013 and $2.2
billion as at September 30,
2014
- Management fees were $78.4
million reflecting a decrease of $6.3
million (7.4%) from the year ended December 31, 2013
- Commission revenues were $7.8
million reflecting an increase of $1.6 million (26.0%) from the year ended
December 31, 2013
- Adjusted EBITDA was $41.7 million
($0.17 per share), reflecting an
increase of $6.6 million (18.8%),
from the year ended December 31,
2013
- Adjusted base EBITDA was $38.1
million ($0.15 per share),
reflecting an increase of $5.9
million (18.2%) from the year ended December 31, 2013
- Net income was $19.4 million
($0.08 per share), reflecting an
increase of $100.7 million (123.9%),
as compared with a loss of $81.3
million ($0.39 per share) for
the year ended December 31, 2013
- Invested capital stood at $359.7
million, reflecting a $42.0
million (13.2%) increase from December 31, 2013.
Significant events for the year ended December 31, 2014 and year-to-date 2015
- Named John Wilson, CEO of Sprott
Asset Management
- Completed transition of funds managed by Eric Sprott
- Acquired three real assets focused funds sub-advised by Capital
Innovations Ltd., Inc.
- Launched Sprott Gold Miners ETF on the New York Stock
Exchange
- Launched the Sprott Bridging Income Fund LP
- Strengthened investment team with addition of three new
portfolio managers
"In many ways, 2014 was a year of transition for
Sprott. Although our AUM remained largely unchanged from the end of
2013 at $7.0 billion, there were
meaningful shifts within the composition of our AUM. These changes
are reflective of our overall strategy of growing both our
diversified asset management platform in Canada and our global presence as leading
resource investors. In Canada, for
the first time, our diversified asset management business ended the
year with the majority of its actively-managed AUM in non-resource
strategies. This shift was driven by the successful growth of our
Enhanced products franchise as well as the expansion of other areas
such as our specialty lending products."
"We continued to expand our passive product
offerings in 2014 with the successful launch of our first ETF, the
Sprott Gold Miners ETF ("SGDM")," added Mr. Grosskopf. "We are
pleased with the early results of this effort, as SGDM has grown to
approximately $275 million in assets
since it was launched in July of 2014. We expect to launch our
second ETF, the Sprott Junior Gold Miners ETF, during the second
quarter of this year and will continue to build out our ETF
offerings in the future."
The breakdown of AUM by investment product type on a
year-over-year basis is as follows:
|
|
|
|
|
|
$ (in
millions)
|
AUM
December 31,
2013
|
Net Sales
/
(Redemptions)
|
Net Market
Value
Change
|
Acquisitions
/
(Divestitures)
|
AUM
December 31,
2014
|
|
|
|
|
|
|
|
|
|
|
|
Bullion
Funds
|
3,542
|
(384)
|
27
|
—
|
3,185
|
Mutual
Funds
|
1,483
|
289
|
13
|
53
|
1,838
|
Alternative
Investment Strategies
|
938
|
(147)
|
27
|
(35)
|
783
|
Managed
Companies
|
521
|
415
|
(117)
|
(49)
|
770
|
Managed
Accounts
|
122
|
3
|
(14)
|
—
|
111
|
Fixed Term Limited
Partnerships
|
361
|
27
|
(48)
|
—
|
340
|
Total
|
6,967
|
203
|
(112)
|
(31)
|
7,027
|
Assets Under Management
AUM was $7.0
billion as at December 31, 2014, largely unchanged from
the year ended December 31, 2013.
Average AUM for the year ended December 31, 2014, was
$7.5 billion, reflecting a decrease
$0.5 billion (6.5%), from average AUM
levels for the year ended December 31,
2013.
Income Statement
Management fees were $78.4
million on a year ended basis, reflecting a decrease of
$6.3 million (7.4%) from the year
ended December 31, 2013. The decrease
was largely due to a decline in overall average AUM year-over-year.
Management fees as a percentage of average AUM were 0.9%,
which was down 0.1% from the prior period.
Gross performance fees were $10.7 million on a year ended basis, reflecting
an increase of $1.7 million (18.9%)
from the year ended December 31,
2013.
Commission revenues were $7.8 million on a year ended basis, reflecting an
increase $1.6 million (26.0%) from
the prior period. The increase was due to increased private
placement activity in SGRIL and SPW.
Interest income was $20.2
million on a year ended basis, reflecting an increase of
$10.3 million (105.0%) from the year
ended December 31, 2013.
Interest income is generated primarily by SRLC which was
acquired (and its results consolidated), by the Company in the
third quarter of 2013.
Losses on proprietary investments were
$4.6 million, reflecting a decrease
in losses of $9.9 million (68.3%)
from the year ended December 31,
2013. The decreased losses were primarily the result of
improved market performance in certain seeded alternative
investment funds.
Other income was $11.4
million on a year ended basis, reflecting a decrease of
$7.7 million (40.2%) from the year
ended December 31, 2013.
Total expenses were $95.9
million on a year ended basis, reflecting a decrease of
$104.5 million (52.1%) from the year
ended December 31, 2013.
Adjusted EBITDA was $41.7
million on a year ended basis, reflecting an increase of
$6.6 million (18.8%), from the year
ended December 31, 2013
Adjusted base EBITDA was $38.1 million on a year ended basis, reflecting
an increase of $5.9 million (18.2%)
respectively, from the year ended December
31, 2013.
Net income was $19.4
million ($0.08 per share) on a
year ended basis, reflecting an increase of $100.7 million (123.9%), respectively, from the
year ended December 31, 2013.
Basic and diluted earnings per share for the year
ended December 31, 2013 were $0.08, versus negative $0.39 for the
year ended December 31, 2013.
Dividends
On March 4, 2015, a dividend of $0.03 per common share was declared for the
quarter ended December 31, 2014.
Conference Call and Webcast
A conference call and webcast will be held today,
Thursday, March 5, 2015 at
10:00am ET to discuss the Company's
financial results. To participate in the call, please dial
647-427-7450 or 1-888-231-8191 and provide conference ID 94636067
ten minutes prior to the scheduled start of the call. A taped
replay of the conference call will be available until Thursday, March 5, 2015 by calling 416-849-0833
or 1-855-859-2056, reference number 94636067. 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 Information and
Statements
Certain statements in this press release contain
forward-looking information (collectively referred to herein as the
"Forward-Looking Statements") within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "may", "will", "project",
"should", "believe", "plans", "intends" and similar expressions are
intended to identify Forward-Looking Statements. In particular, but
without limiting the forgoing, this press release contains
Forward-Looking Statements pertaining to: (i) the Company's overall
strategy of growing both its diversified asset management platform
in Canada and its global presence
as leading resource investors; (ii) expectations regarding the
launching of the Company's second ETF, the Sprott Junior Gold
Miners ETF, during the second quarter of this year and the
continued building of the Company's ETF offerings in the future;
and (iii) the declaration, payment and designation of
dividends.
Although the Company believes that the
Forward-Looking Statements are reasonable, they are not guarantees
of future results, performance or achievements. A number of
factors or assumptions have been used to develop the
Forward-Looking Statements, including: (i) the impact of increasing
competition in each business in which the Company operates will not
be material; (ii) quality management will be available; and (iii)
the effects of regulation and tax laws of governmental agencies
will be consistent with the current environment. Actual
results, performance or achievements could vary materially from
those expressed or implied by the Forward-Looking Statements should
assumptions underlying the Forward-Looking Statements prove
incorrect or should one or more risks or other factors materialize,
including: (i) difficult market conditions; (ii) changes in the
investment management industry; (iii) risks related to regulatory
compliance; (iv) failure to deal appropriately with conflicts of
interest; (v) failure to continue to retain and attract quality
staff; (vi) competitive pressures; (vii) corporate growth may be
difficult to sustain and may place significant demands on existing
administrative, operational and financial resources; (viii) failure
to execute the Company's succession plan; (ix) foreign exchange
risk relating to the relative value of the U.S. dollar; *
litigation risk; (xi) employee errors or misconduct could result in
regulatory sanctions or reputational harm; (xii) failure to
implement effective information security policies, procedures and
capabilities; (xiii) failure to develop effective business
resiliency plans; (xiv) failure to obtain or maintain sufficient
insurance coverage on favourable economic terms; (xv) historical
financial information is not necessarily indicative of future
performance; (xvi) the market price of common shares of the Company
may fluctuate widely and rapidly; and (xvii) those risks described
under the heading "Risk Factors" in the Company's annual
information form dated March 4,
2015. In addition, the payment of dividends is not guaranteed
and the amount and timing of any dividends payable by the Company
will be at the discretion of the Board of Directors of the Company
and will be established on the basis of the Company's earnings, the
satisfaction of solvency tests imposed by applicable corporate law
for the declaration and payment of dividends, and other relevant
factors. The Forward-Looking Statements speak only as of the date
hereof, unless otherwise specifically noted, and the Company does
not assume any obligation to publicly update any Forward-Looking
Statements, whether as a result of new information, future events
or otherwise, except as may be expressly required by applicable
Canadian securities laws.
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 primarily
through six business units: Sprott Asset Management LP, Sprott
Private Wealth LP, Sprott Consulting LP, Sprott Resource Lending
Corp., Sprott Toscana 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 and Sprott Toscana
provide management, administrative and consulting services to other
companies. Sprott Resource Lending provides lending services to
mining and energy sectors. 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.