Business
Sprott Inc. announces 2008 fourth quarter and year-end results
TORONTO, March 26 /CNW/ - Sprott Inc. (TSX:SII) ("Sprott" or the "Company") today announced its f...
About this update from Sprott Inc.
[{"type":"text","content":"\n\n\n\nTORONTO, March 26 /CNW/ - Sprott Inc. (TSX:SII) ("Sprott" or the\n"Company") today announced its financial results for the quarter and year\nended December 31, 2008.\n\n\nFiscal 2008 Highlights\n\n- Assets Under Management (AUM) were $4.4 billion as at\n December 31, 2008 compared to $6.2 billion as at December 31, 2007\n and $5.6 billion as at September 30, 2008\n- Management Fees were $124.0 million, an increase of $16.0 million or\n 15% over 2007\n- Performance Fees were $47.9 million, including $35.6 million earned\n by Sprott Consulting L.P. from its management of Sprott Resource\n Corporation\n- Base EBITDA was $57.1 million compared to $49.3 million in 2007\n (assuming the 2008 bonus pool program had been in effect in 2007)\n- Net income was $52.1 million ($0.36 per share), versus $42.3 million\n ($0.32 per share) in 2007\n- Declared a fourth quarter dividend of $0.025 per share and a special\n dividend of $0.15 per share\n\nSubsequent to Year-End\n\n- Planned launch of two new funds - the Sprott Gold Bullion Fund\n (March 2009) and the Sprott FNSSC(1) Multi-Manager Fund (April 2009),\n a Fund composed of five Sprott mutual funds, which will be\n exclusively available to FNSSC members\n- Planned reorganization to separate Sprott Asset Management (SAM) into\n three areas - Sprott Asset Management L.P., Sprott Private Wealth\n L.P. and Sprott Consulting L.P.\n\n(1) Federation of National Specialty Societies of Canada\n\n\n"Against an industry backdrop of massive net redemptions, we had net\npositive sales in 2008. This is a testament to our track record of success,\nloyal client base, new products and relatively strong performance from our\nhedge funds," said Eric Sprott, President and CEO of Sprott Inc. "While market\ndeclines contributed to a 28% decline in AUM year-over-year, we reported a 16%\nrise in Base EBITDA and a 13% increase in earnings per share due in part to\nour variable cost structure. As a result, we were able to generate strong cash\nflows and pay dividends of $0.225 per share. At the end of 2008, the Company\nremains financially strong with a healthy cash balance and no debt."\n\n\n"The current global economic crisis is unprecedented in scale and scope,\nmaking investment analysis unusually challenging," added Mr. Sprott. "However,\nwe have su...