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Revenue up 18%, earnings up 22%
Third dividend increase in two years
TORONTO, Aug. 9 /CNW/ - Saxon Financial Inc. (TSX:SFI) today reported record financial results for the second quarter ended June 30, 2007. The Company continued its strong performance, with 18% growth in revenue and a 22% increase in earnings over the second quarter of 2006. Saxon's assets under management grew 13% in the 12 month period ended June 30, 2007, climbing to a record $13.1 billion. Saxon raised the quarterly dividend for the third time in two years, representing a 28% increase year over year.
"Saxon's results mark the success of our strategy in leveraging a 21 year investment performance record," said Allan Smith, President and CEO of Saxon Financial. "Our dividend increase, the third in our short history as a public company, demonstrates our continuing commitment to enhancing shareholder value."
Highlights: A quarter of double-digit growth
Financial Highlights
(unaudited -
$ thousands, except Three month period Six month period
per share data) ended June 30 ended June 30
-------------------------- --------------------------
2007 2006 Increase 2007 2006 Increase
-------- ------- --------- -------- -------- --------
$ $ $ $
Revenue(x) 14,182 12,066 18% 27,807 23,409 19%
EBITDA(xx) 7,098 6,010 18% 13,370 10,884 23%
Net Income 4,602 3,760 22% 8,690 6,868 27%
Earnings per share .34 .28 21% .64 .50 28%
(x) Revenue refers to management fee revenue and excludes investment
income.
(xx) The amount of earnings before interest, taxes, depreciation and
amortization ("EBITDA") is a non-GAAP measure used by management,
investors and analysts to evaluate and analyze the Company's
results. EBITDA does not have a standardized meaning and may not be
comparable to similar measures presented by other companies. EBITDA
is defined as earnings before investment income, interest expense,
income taxes, depreciation and amortization.
Highlights included:
- Saxon Financial's assets under management increased by $1.5 billion,
or 13%, year over year to $13.1 billion as at June 30, 2007.
- Saxon's Q2 management fee revenue was $14.2 million, an 18% increase
over the second quarter of 2006. All three Saxon business segments -
retail mutual funds, institutional and private client - registered
double-digit fee revenue increases.
- Saxon's second quarter net income rose to $4.6 million, up 22% over
the second quarter of 2006.
- Saxon increased its quarterly dividend by $0.02 to $0.23 per common
share, the third dividend increase since becoming a public company
two years ago. The annualized dividend has increased 28% over the
past year from $0.72 to $0.92 per share.
- Saxon Mutual Funds continued to record strong sales in its principal-
protected notes, with second quarter note sales outpacing those
during RRSP season.
- Saxon Financial's institutional investment management subsidiary,
Howson Tattersall Investment Counsel Limited, enhanced its reputation
as an international investment manager with the addition of three new
clients in foreign equity mandates.
For detailed financial statements, including management's discussion and analysis, please refer to Saxon's website at www.saxonfinancial.ca.
Conference call
Saxon will host a conference call to discuss these results on Thursday, August 9, 2007 at 10:00am EST. Please dial 416-695-6130 or toll-free 1-800-565-0813.
About Saxon Financial Inc. (www.saxonfinancial.ca)
Saxon Financial Inc. is one of Canada's most respected value style investment management firms. The Company has three principal lines of business: Saxon Funds Management Limited, which manages a family of high-performing, low-fee mutual funds; Howson Tattersall Investment Counsel Limited, an institutional asset management business; and Howson Tattersall Private Asset Management Inc., a private client asset management business.