<<
Q2 Revenue up 33%, earnings up 27 % over Q2 2005
Assets under management increase 17% over Q2 2005
>>
TORONTO, Aug. 9 /CNW/ - Saxon Financial Inc. (TSX:SFI) today reported
record financial results for the second quarter, ended June 30, 2006. The
company continued its strong performance with 33% growth in revenue and 27%
increase in net income over adjusted results for Q2 2005. Saxon Financial's
assets under management grew 17% over the same period in 2005, reaching
$11.7 billion.
"At a time of rough waters for the financial markets, it was smooth
sailing at Saxon," said Allan Smith, President and CEO of Saxon Financial.
"Saxon Mutual Funds extended their long record of positive net inflows and our
institutional business attracted healthy client deposits. This helped Saxon
set new records in revenue, earnings and assets under management."
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Highlights: A quarter of double-digit growth
Financial Highlights
(Unaudited
$ thousands,
except per Three Months Ended Six Months Ended
share data) June 30, June 30,
----------------------- ----------------------
2006 2005 Change 2006 2005 Change
------ ------ ------ ------ ------ ------
$ $ % $ $ %
Revenue 12,243 9,208 33% 23,779 17,779 33%
EBITDA(x) 6,010 4,013 50% 10,884 8,437 29%
Net Income 3,760 2,203 71% 6,868 4,881 41%
Earnings per diluted share 0.28 0.18 56% 0.50 0.39 28%
Adjusted Net Income(xx)
Revenue 12,066 9,108 32% 23,409 17,704 32%
Adjusted EBITDA(x) 6,010 4,768 26% 10,884 9,192 18%
Adjusted Net Income 3,760 2,958 27% 6,868 5,636 22%
Adjusted Earnings per
diluted share 0.28 0.24 17% 0.50 0.45 11%
(x) The amount, 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. This non-GAAP measure does not have a standardized
meaning prescribed by Canadian GAAP. EBITDA may not be comparable
to similar measures presented by other companies. EBITDA is
defined as earnings before investment and other income, interest
expense, income taxes, depreciation, amortization and non-
controlling interest.
(xx) 2005 adjusted to add-back the non-cash, non-tax-deductible charge
to earnings in the amount of approximately $0.8 million relating
to the issuance on June 27, 2005 of shares as an incentive to
employees under a reorganization plan.
Highlights included:
- Saxon Financial's assets under management increased by $1.7 billion,
or 17%, over the second quarter of 2005 to close at $11.7 billion as
of June 30, 2006.
- Saxon's Q2 revenue was $12 million, a 33% increase over the second
quarter of 2005.
- Saxon's net income for the quarter was $3.8 million, up 71% over the
second quarter of 2005. For better comparison purposes, Q2 2005 net
income has been adjusted to add back a $0.8 million expense. With
this adjustment, Q2 net income was up 27% over Q2 2005.
- Saxon Mutual Funds marked 65 consecutive months of positive net sales
on June 30. Saxon remains one of the only firms in Canada that can
claim such a track record of enduring investor confidence. Q2,
year-over-year net sales increases of Saxon long-term funds of 18%
were significantly better than the industry which recorded a net
sales decline of 36%.
- As announced previously, Saxon Financial's institutional investment
management subsidiary, Howson Tattersall Investment Counsel Limited,
earned a significant new mandate in the quarter. Howson Tattersall
began managing the Clarington Canadian Balanced Fund on
April 1, 2006.
>>
"Saxon has grown into a pre-eminent value investment manager with a style
discipline that has delivered impressive long-term investment performance,"
Smith said. "Our financial results show that both investors and advisors are
increasingly looking to Saxon as an investment manager of choice."
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 10, 2006, at 9:00 am EST. Please dial 416-695-9741, or toll-free
1-877-323-2010.
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.
