Revenue up 13%, earnings up 21% over 2006
TORONTO, March 5 /CNW/ - Saxon Financial Inc. (TSX:SFI) reported financial results for 2007 of 13% growth in revenue and a 21% increase in net income. Saxon's assets under management grew 3% during the year, reaching $12.9 billion at December 31, 2007.
"Saxon's solid financial performance topped a year in which we extended our reach into key distribution channels with retail product launches and new institutional equity mandates," said Allan Smith, President and CEO. "While capital markets remain volatile, we're well-positioned to capitalize on sales and marketing initiatives that leverage our 22 year investment management expertise."
Highlights: A year of growth, expansion & investment
The following table summarizes Saxon's fourth quarter and year-end
results for 2007.
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Financial Highlights Three month period Year ended
(in $thousands, except ended December 31, December 31,
per share data) 2007 2006 2007 2006
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Revenue(x) $13,194 $12,926 $54,868 $48,646
EBITDA(xx) $5,940 $6,129 $26,420 $23,201
Net income $4,470 $3,916 $17,768 $14,732
Earnings per share $0.33 $0.29 $1.31 $1.08
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(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.
- Assets under management climbed to $12.9 billion at December 31,
2007, an increase of 3% or $367 million during the year. AUM was
adversely impacted in the fourth quarter by net redemptions in mutual
funds as value managers continued to be out of favour in a growth
oriented market.
- Q4 revenue was $13.2 million, a 2% increase over the fourth quarter
of 2006. Full year 2007 revenue increased 13% totaling $54.9 million,
compared to $48.6 million in 2006.
- Net income in 2007 reached $17.8 million, an increase of 21% over
2006. Earnings per share were $1.31 compared to $1.08 last year.
Citigroup conversion costs in 2007 amounted to $0.03 per share which
was offset by a favourable tax adjustment.
- Saxon's institutional business ended the year with five new clients
and nine new mandates, building on the momentum of the last two
years.
- Saxon High Income Fund was a finalist in its category at the 2007
Canadian Investment Awards, which brings together investors and
advisors to recognize leading investment products and firms. The Fund
provided investors with strong relative returns in a year in which
the income trust index struggled to regain steep losses from 2006.
- Saxon World Growth, Saxon Stock Fund and Saxon Small Cap were
recognized as best of breed funds by Morningstar in its Analyst Picks
List. As stated by Morningstar, inclusion in the List is "the highest
honour we can bestow on a fund".
- Saxon built on its 22 year track record of investing in the small cap
sector by launching three new small cap funds: Saxon Microcap Fund,
Saxon U.S. Small Cap Fund and Saxon Global Small Cap Fund.
- Saxon extended its reach into the advisor channel with the successful
launch of Advisor Series, a (front-load) full trailer fee series
designed to pay competitive compensation to full-service advisors and
financial planners.
- Saxon completed the conversion of its unitholder recordkeeping system
to Citigroup in December followed by the transfer of fund accounting
services in early January.
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 March 5, 2008, at 10:00 am EST. Please dial 416-695-7806, or toll-free 1-888-789-9572. Pass code: 3252643 (followed by the number sign). This conference call will be recorded and available for replay for two weeks following the earnings announcement at 800-408-3053 and 416-695-5800. Pass code: 3252643(followed by the number sign).
About Saxon Financial Inc.
Saxon Financial Inc. is one of Canada's most respected value style investment management firms. The Company has three principal businesses: Saxon Funds Management Limited, which manages a family of high-performing 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.