TORONTO, ONTARIO, Mar 27 (MARKET WIRE) --
Sceptre Investment Counsel Limited (TSX: SZ), a leading independent
Canadian money management firm, today reported its financial results for
its first quarter ending February 29, 2008.
First quarter earnings were $1,532,000 or 11 cents per share fully
diluted (11 cents per share basic) compared with $1,163,000 or 8 cents
per share diluted (8 cents per share basic) for the same period last year
representing a 32% gain year over year.
Revenue for the first quarter was $9,321,000 compared with $8,449,000 for
the first quarter last year representing a 10% gain year over year.
Institutional, mutual fund and private client revenues increased.
Investment income was modestly higher at $235,000 as compared to
$169,000. Expenses for the quarter increased by 5% from the similar
quarter last year. Revenue related expenses increased by 15% to
$1,501,000 from $1,306,000 and other expenses increased by 3% from
$5,284,000 to $5,426,000. During the quarter expenses included the
front-end loading of regulatory and listing fees and one time
professional fees related to strategic initiatives. The total of these
expenses in the quarter was approximately $400,000.
"Continued market volatility resulting from the ongoing credit related
concerns produced negative investment returns across all equity markets.
Bond returns rebounded as investors focused on higher quality investments
and central banks provided much needed liquidity" stated Richard Knowles,
President and Chief Executive Officer.
He added, "Our relative investment performance remains strong and despite
the unsettled markets, we are continuing to see numerous opportunities to
add assets in both the institutional and private client segments of our
business."
The Company, having considered its financial requirements, new business
opportunities and market outlook, has declared a quarterly dividend of 12
cents per share on outstanding common shares, payable on April 30, 2008
to shareholders of record April 7, 2008. The previous quarterly dividend
was 12 cents per share.
About Sceptre Investment Counsel
Sceptre Investment Counsel Limited is a leading Canadian independent
investment management firm with assets under supervision of approximately
$8.9 billion. The Company's Pension and Institutional Fund group manages
investment portfolios for a wide range of clients, including
corporations, governments, hospitals, charitable foundations, endowments,
universities and unions. Through its Wealth Management group, Sceptre
provides discretionary funds and segregated account management for high
net-worth individuals and offers a family of eight mutual funds. Sceptre
employs approximately 65 people in its offices in Toronto, Waterloo,
Montreal and Vancouver. Sceptre's common shares trade on the Toronto
Stock Exchange, under the symbol SZ.
INTERIM CONSOLIDATED BALANCE SHEETS
In thousands of dollars
(Unaudited)
As at
February 29 November 30
2008 2007
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Assets
Current Assets
Cash $ 27 $ 35
Available-for-sale financial assets 17,516 20,697
Accounts receivable 2,634 2,496
Current portion of deferred compensation 1,002 1,337
Current portion of loan to related party 38 38
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21,217 24,603
Furniture, equipment and leaseholds 1,079 1,063
Loan to related party - 19
Value of customer relationships and other
intangibles net of accumulated amortization 4,226 4,331
Goodwill 3,575 3,575
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$ 30,097 $ 33,591
-----------------------------
-----------------------------
Liabilities
Current Liabilities
Accounts payable
and accrued liabilities $ 4,136 $ 4,754
Bonuses due to employees 784 2,500
Income taxes payable 186 1,346
Current portion of future income taxes 334 450
-----------------------------
5,440 9,050
Future income taxes 144 165
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5,584 9,215
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Shareholders' Equity
Capital stock 16,209 15,913
Contributed surplus 1,588 1,518
Retained earnings 6,286 6,437
Accumulated other comprehensive income 430 508
-----------------------------
24,513 24,376
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$ 30,097 $ 33,591
-----------------------------
-----------------------------
INTERIM CONSOLIDATED STATEMENTS OF EARNINGS
In thousands of dollars except per share amounts
(Unaudited)
For the three months ended
February 29 February 28
2008 2007
----------------------------------------------------------------------------
Revenue
Investment management fees $ 9,086 $ 8,280
Investment income 235 169
------------------------------
9,321 8,449
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Expenses
Operating expenses 5,265 5,142
Trailer and referral fees 597 449
Sub-advisory fees 904 857
Amortization of furniture, equipment and
leaseholds 56 72
Amortization of intangible assets 105 70
------------------------------
6,927 6,590
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------------------------------
Earnings before income taxes 2,394 1,859
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Provision for income taxes 971 839
Provision for future income taxes (109) (143)
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862 696
------------------------------
Net earnings for the period $ 1,532 $ 1,163
------------------------------
------------------------------
Earnings per share
Basic $ 0.11 $ 0.08
Diluted $ 0.11 $ 0.08
Contacts:
Sceptre Investment Counsel Limited
Richard L. Knowles
President and Chief Executive Officer
(416) 866-2380
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