Saxon Financial reports second quarter results

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[{"type":"text","content":"\n\n\n\nTORONTO, Aug. 6 /CNW/ - Saxon Financial Inc. (TSX:SFI) today reported\nfinancial results for the second quarter ended June 30, 2008. Assets under\nmanagement (AUM) increased by 1.1% in the second quarter to $13.4 billion. A\nsignificant improvement in mutual fund flows and continued positive flows in\nthe institutional client segment contributed to the second quarter growth in\nAUM.\n\n\nSaxon earned management fees of $12.8 million, up from $12.3 million in\nthe prior quarter. Net income was $2.5 million for the quarter, or 18 cents\nper share. Saxon's net income was adversely impacted by a $2.2 million\nnon-recurring item related to the departure of the former President and CEO.\nExclusive of this charge, EBITDA increased 23% from the previous quarter and\nearnings per share would have been approximately 30 cents for the quarter.\n\n\nOn August 5, Saxon announced that it had entered into a definitive\nagreement with IGM Financial Inc. pursuant to which IGM Financial will make an\noffer to acquire all the issued and outstanding shares of Saxon by way of a\ntake-over bid. Under the terms of the offer, Saxon shareholders who tender\ntheir shares will receive $21.00 per share, valuing the all cash transaction\nat approximately $287 million. The offer is subject to certain customary\nconditions, including acceptance of the offer by holders of at least 66 2/3%\nof the outstanding common shares of SFI, calculated on a fully diluted basis,\nand receipt of all regulatory approvals.\n\n\nHighlights:\n\n\nFinancial Highlights\n(unaudited - $ thousands, Three month period Six month period\n except per share data) ended June 30 ended June 30\n -----------------------------------------------\n 2008 2007 Change 2008 2007 Change\n ------- ------- ------- ------- ------- -------\n $ $ $ $\n\nRevenue(x) 12,815 14,182 -10% 25,116 27,807 -10%\nEBITDA(xx) 3,853 7,096 -46% 8,787 13,369 -34.5%\nEBITDA Adjusted(xxx) 6,066 7,096 -14.5% 11,000 13,369 -17.7%\nNet Income 2,483 4,602 -46% 5,800 8,690 -33.3%\nEarnings per share 0.18 0.34 -47.1% 0.43 0.64 -32.8%\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...

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