Q3 Revenue up 24%, earnings up 32 % over Q3 2005;
Assets under management increase 14% over Q3 2005
TORONTO, Nov. 6 /CNW/ - Saxon Financial Inc. (TSX:SFI) today reported
record financial results for the third quarter ended September 30, 2006. The
company continued its strong performance with 24% growth in revenue and a 32%
increase in earnings over Q3 2005. Saxon Financial's assets under management
grew 14% over the 12 months ended September 30, reaching a record $11.9
billion.
"Saxon has achieved impressive results this year thanks to double-digit
revenue growth in all three lines of business and disciplined financial
management.," said Allan Smith, President and CEO of Saxon Financial. "Saxon
is well-positioned to continue to deliver client and shareholder value by
capitalizing on our strengths: consistent long-term investment performance, a
focused product offering and fair pricing."
Highlights: A quarter of double-digit growth
<<
Financial Highlights
(Unaudited
$ thousands, except per Three month period Nine month period
share data) ended ended
September 30, 2006 September 30, 2006(x)
-------------------- ----------------------
2006 2005 2006 2005
------ ------ --- ------- ------ ---
$ $ $ $
Revenue 12,571 10,103 24% 36,350 27,882 30%
EBITDA(xx) 6,188 4,650 33% 17,072 13,087 30%
Net Income 3,948 2,981 32% 10,816 7,862 38%
Earnings per diluted share 0.29 0.22 32% 0.79 0.61 30%
>>
(x)Net income for the nine-month period ended September 30, 2005 includes a
one-time expense of $755 related to employee stock awards issued in connection
with the IPO. If comparative figures were adjusted to exclude this item,
EBITDA increases from $13,087 to $13,842; net income increases from $7,862 to
$8,617; EPS increase from $0.61 to $0.67.
(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
and other income, interest expense, income taxes, depreciation, amortization
and non-controlling interest.
<<
Highlights included:
- Saxon's assets under management increased by $1.4 billion, or 14%,
year over year, and 2.2% during the quarter to close at
$11.9 billion.
- Saxon's Q3 revenue was $12.6 million, a 24% increase over the third
quarter of 2005. Management fee revenue increased in each business
segment: 22% in mutual funds; 23% in institutional; and 13% in
private client.
- Saxon's net income for the quarter was $3.9 million, up 32% over the
third quarter of 2005.
- Saxon Financial's institutional investment management subsidiary,
Howson Tattersall Investment Counsel Limited, earned two significant
new mandates in the quarter from Altamira Investment Services. In
November 2006, Howson Tattersall assumed management of Altamira
Canadian Value Fund and Altamira Global Value Fund, with a combined
value of $145 million.
>>
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 Monday
November 6, 2006, at 11:00 am EST. Please dial 416-695-6120, or toll-free
1-877-461-2816.
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.
