Saxon Financial reports first quarter results

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[{"type":"text","content":"\n\n\n\nStrength in fixed income mandates contributes to growth in assets\n\n\nTORONTO, May 5 /CNW/ - Saxon Financial Inc. (TSX:SFI) today reported\nfinancial results for the first quarter ended March 31, 2008. Assets under\nmanagement increased by 2.8% in the first quarter, climbing to $13.3 billion.\nSignificant flows in the Company's institutional fixed income mandates offset\nthe decline in mutual fund assets.\n\n\n"Saxon's diversified asset mix and prudent investment management\ncontributed positively to AUM growth while global market instability kept\nequity investors on the sidelines," said Allan Smith, President and CEO.\n\n\nSaxon enjoyed strong relative performance in its international and small\ncap mutual funds in the quarter, reversing the trend in the second half of\n2007. In spite of improved performance, Saxon's equity funds reported net\nredemptions, in keeping with the industry-wide trend as nervous investors\nsought the refuge of money market funds. The decline in equity mutual fund\nassets in the quarter, the largest fee-generating segment for Saxon,\nnegatively impacted revenues and earnings.\n\n\n"In the coming quarters, we will focus on leveraging our relative equity\nperformance to supplement our success in institutional fixed income," added\nSmith.\n\n\nHighlights:\n\nFinancial Highlights\n(unaudited - $ thousands, Three month period\n except per share data) ended March 31\n ----------------------------\n 2008 2007 Change\n --------- -------- ---------\n $ $\nRevenue(x) 12,301 13,625 -10%\nEBITDA(xx) 4,935 6,273 -21%\nNet Income 3,317 4,088 -19%\nEarnings per share 0.24 0.30 -20%\n\n(x) Revenue refers to management fee revenue and excludes investment\n income.\n(xx) The amount of earnings before interest, taxes, depreciation and\n amortization ("EBITDA") is a non-GAAP measure used by management,\n investors and analysts to evaluate and analyze the Company's\n results. EBITDA does not have a standardized meaning and may not\n be comparable to similar measures presented by other companies.\n EBITDA is defined as earnings before investment income, interest\n expense, income taxes, depreciation and amortization.\n\n- Saxon Financial's assets under management increased by 2.8% or\n $363 million in the first quarter to $13.3 billion. Net flows of\n $414 million and market apprecia...

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