Board also declares a $0.08 Quarterly Dividend
MONTREAL, May 11 /CNW Telbec/ - Fiera Sceptre Inc. (TSX: FSZ) ("Fiera Sceptre" or "the Firm"), a leading independent Canadian investment firm, today reported its financial results for the second quarter ended March 31, 2011 ("the second quarter").
Basis for Comparison
On September 1, 2010, Fiera Sceptre announced that it had completed the statutory plan of arrangement pursuant to which the businesses of Sceptre Investment Counsel Limited ("Sceptre") and Fiera Capital Inc. ("Fiera Capital") were combined to create a leading-edge, publicly traded independent investment firm. For accounting purposes, Fiera Capital was deemed to be the acquirer in the business combination. Therefore, current and future financial reporting will be based on Fiera Capital's historical data up to and including September 1, 2010 and the combined results for the period after the transaction date. The comparative figures for fiscal year 2010 are taken from Fiera Capital's prior year results and not from the financial results of Sceptre.
The combined entity will maintain Fiera Capital's quarters and year-end. As a result, the quarterly reporting cycle for Fiera Sceptre will be December, March and June, while the fiscal year-end will be September 30.
Second Quarter Highlights
- Revenue for the three-month period ended March 31, 2011 was $19.2 million, an increase of 102.6% or $9.7 million, compared to $9.5 million for the same period in 2010;
- Operating expenses were $14.0 million for the three-month period ended March 31, 2011, an increase of 74.5% or $6.0 million compared to $8.0 million for the same period in 2010;
- Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) (a non-GAAP measure of performance) were $4.8 million for the three-month period ended March 31, 2011, an increase of $3.9 million or over five times the Adjusted EBITDA of $888,000 for the same period in 2010. (Adjusted EBITDA eliminates the effect of performance fees on EBITDA);
- For the quarter ended March 31, 2011, net earnings were $1.9 million or $0.05 per share (basic and fully diluted). Excluding non-recurring items, basic and fully diluted earnings per share were $0.08 compared to $0.03 last year.
"The integration process is almost completed while the business combination is providing the anticipated benefits," said Jean-Guy Desjardins, Chairman, CEO and CIO of Fiera Sceptre. "Clients are now benefiting from a broader product offering and strong performance in all asset classes," he added. "Our professionals are working together to develop new products and to outperform in today's volatile market and environment. We offer our clients outstanding investment solutions adapted to their needs. Our investment teams are working hard to meet our clients' expectations."
Second Quarter 2011 Financial and Operating Results
The following table provides selected financial information for the three-month period ended March 31, 2011 and for the same period last fiscal year.
|3 months ended
March 31, 2011
|3 months ended
March 31, 2010
|6 months ended
March 31, 2011
|6 months ended
March 31, 2010
|Earnings per share||$0.05||$0.03||$0.13||$0.10|
|Earnings per share (excluding non-recurring items)||$0.08||$0.03||$0.19||$0.10|
Revenue for the three-month period ended March 31, 2011 increased by $9.7 million or 102.6% to $19.2 million, over revenue of $9.5 million for the same period in 2010. This increase was primarily driven by the addition of Sceptre's assets under management ("AUM"), combined with a contribution to revenue from the Fiera Axium Infrastructure joint venture and higher level of AUM. Marketing efforts and improved market conditions positively impacted the average level of AUM and, ultimately, the fees charged by the Firm.
Operating expenses were $14.0 million for the three-month period ended March 31, 2011, compared to $8.0 million for the same period in 2010, an increase of $6.0 million. The increase resulted from an overall growth in selling, general and administration fees expenses of $5.3 million. The growth of $700,000 in fees paid to external managers also contributed to the increase in operating expenses.
For the second quarter of 2011, earnings before interest, taxes, depreciation and amortization ("EBITDA") increased by 261.2% or $3.7 million to $5.1 million, mainly due to a higher revenue base. Adjusted EBITDA, which eliminates the effect of performance fees, was $4.8 million for the three-month period ended March 31, 2011, an increase of $3.9 million from $888,000 for the same period last year.
For the three-month period ended March 31, 2011, net earnings were $1.9 million or $0.05 per share compared to $489,000 or $0.03 per share for the same period in the prior fiscal year. The net earnings were impacted by restructuring and other non-recurring integration costs of $1.6 million ($1.1 million net of income taxes) or a $0.03 (basic and diluted) per share impact. Excluding these non-recurring expenses, net earnings for the period would have been $3.0 million or $0.08 (basic and fully diluted) earnings per share.
The Board of Directors has approved a dividend of $0.08 per share payable June 20, 2011 to shareholders of record on May 23, 2011. The dividend is an eligible dividend for income tax purposes.
This document may contain certain forward-looking statements. These statements relate to future events or future performance, and reflect management's expectations or beliefs regarding future events, including business and economic conditions and Fiera Sceptre's growth, results of operations, performance and business prospects and opportunities. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", "target", "intend" or the negative of these terms, or other comparable terminology.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and a number of factors could cause actual events or results to differ materially from the results discussed in the forward-looking statements. In evaluating these statements, readers should specifically consider various factors that may cause actual results to differ materially from any forward-looking statement.
These factors include, but are not limited to, market and general economic conditions, the nature of the financial services industry, and the risks and uncertainties detailed from time to time in Fiera Sceptre's interim and annual consolidated financial statements, and its Annual Report and Annual Information Form filed on www.sedar.com. These forward-looking statements are made as of the date of this document, and Fiera Sceptre assumes no obligation to update or revise them to reflect new events or circumstances.
About Fiera Sceptre
Fiera Sceptre is a leading publicly traded, independent investment firm. The Firm is one of only a handful of full service, multi-product investment firms in Canada, offering clients a proven top tier track record in equity and fixed income management as well as depth and expertise in asset allocation and alternative investments. www.fierasceptre.ca
Additional information relating to the Company, including the Company's annual information form, is on SEDAR at www.sedar.com.