Q1 Revenue up 20%, earnings up 32% over Q1 2006
Assets under management increase 14% over Q1 2006
TORONTO, May 9 /CNW/ - Saxon Financial Inc. (TSX:SFI) today reported record financial results for the first quarter ended March 31, 2007. The company continued its strong performance with 20% growth in revenue and 32% increase in earnings over Q1 2006. Saxon Financial's assets under management grew 14% over the 12 month period ended March 31, 2007, reaching a record $13.0 billion.
"Saxon's top and bottom line growth attest to the success of our business expansion efforts in marketing, sales and product development," said Allan Smith, President and CEO of Saxon Financial. "We will continue to leverage Saxon's 21-year investment track record with strategic initiatives to reach individual investors, advisors and institutions."
Highlights: A quarter of double-digit growth
Financial Highlights
(unaudited - $ thousands,
except per share data) Three month period
ended March 31
---------------------------
2007 2006 Increase
-------- -------- --------
$ $
Revenue(x) 13,625 11,343 20%
EBITDA(xx) 6,273 4,874 29%
Net Income 4,088 3,108 32%
Earnings per share 0.30 0.23 32%
(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
$1.6 billion, or 14%, year over year to $13.0 billion as of
March 31, 2007. This increase is noteworthy given Saxon's high
proportion of fixed income assets.
- Saxon's Q1 revenue was $13.6 million, a 20% increase over the
first quarter of 2006.
- Saxon's net income for the quarter was $4.1 million, up 32% over
the first quarter of 2006. Saxon's financial discipline resulted
in revenue growth that significantly outpaced expense growth.
- Saxon Mutual Funds broadened its reach into the advisor channel
during RRSP season with additional series of its successful
principal-protected note, with performance tied to the award-
winning Saxon Balanced Fund.
- Saxon's strong record of relative returns in weaker markets was
again evident in the 12% outperformance of Saxon High Income Fund
relative to the income trust index for the 1 year period ended
March 31, 2007.
- Saxon Financial's institutional investment management subsidiary,
Howson Tattersall Investment Counsel Limited, built on the success
of 2006 with the addition of two new clients and three additional
mandates from existing clients.
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 Wednesday May 9, 2007, at 11:00 am EST. Please dial 416-695-6120, or toll-free 1-877-461-2814.
All amounts are expressed in Canadian dollars
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.