Mr. Peter Grosskopf reports
SPROTT ANNOUNCES 2018 SECOND QUARTER RESULTS
Sprott Inc. has released its financial results for the three months ended June 30, 2018.
Financial overview for the quarter ended June 30, 2018:
Assets under management (AUM) were $11.1-billion as at June 30, 2018, compared with $11.6-billion as at March 31, 2018.Total net revenues (net of commission expenses, trailer fees and subadviser fees, carried interest and performance fee payouts) were $23.5-million, flat compared with the quarter ended June 30, 2017.Total expenses (excluding commission expenses, trailer fees and subadviser fees, carried interest and performance fee payouts) were $17.0-million, reflecting a decrease of $7.9-million (32 per cent) from the quarter ended June 30, 2017.Net income was $5.9-million (two cents per share), reflecting an increase of $9.5-million from the quarter ended June 30, 2017.On a normalized basis (taking into account the 2017 sale of non-core diversified assets) adjusted base EBITDA (earnings before interest, taxes, depreciation and amortization) from core businesses increased by $3.4-million (47 per cent) from the quarter ended June 30, 2017, to $10.7-million, four cents per share.Investable capital stood at $195-million as at June 30, 2018, compared with $293-million as at Dec. 31, 2017, reflecting a decrease of $98-million, due primarily to the purchase of Central Fund of Canada assets in January of this year.
"The second quarter of 2018 was steady both in terms of our financial performance and ongoing investment in new growth initiatives," said Peter Grosskopf, chief executive officer of Sprott. "The company's profitability continues to improve due largely to growth in our exchange-listed products business from the acquisition of Central Fund of Canada Ltd., as well as additional capital calls in our private resource lending funds. On a normalized basis, adjusted base EBITDA increased by more than 40 per cent during the quarter and more than 50 per cent in the first half of the year."
ASSETS UNDER MANAGEMENT(in millions)AUM Net sales and Market value Acquisitions and AUM March 31, 2018 capital calls change divestitures June 30, 2018Exchange-listed productsphysical trusts (loss)8,603(272) (1)(199) - 8,132ETFs (loss) 411 (11)(2) - 3989,014(283)(201) - 8,530Alternative asset managementIn-house (loss) 399(6)13- 406Subadvised (loss) 656 (44)(9) - 6031,055 (50) 4- 1,009Private resource investmentsManaged companies (loss)625 -(22) - 603Fixed-term LPs (loss) 312 -(20) - 292Separately managed accounts 303 --- 303Private resource lending LPs(loss)28278 29- 3891,52278(13) - 1,587Total (loss) 11,591(255)(210) -11,126(1) Total CFCL units acquired on Jan. 16, 2018, were 252 million. For the three months ended June 30, 2018, 14 million units ($201-million or 6 per cent) were redeemed.
Dividends
On Aug. 9, 2018, a dividend of three cents per common share was declared for the quarter ended June 30, 2018.
Conference call and webcast
A conference call and webcast will be held today, Aug. 13, 2018, at 10 a.m. Eastern Time to discuss the company's financial results. To participate in the call, please dial 855-458-4215 10 minutes prior to the scheduled start of the call and provide conference ID 3799887. A taped replay of the conference call will be available until Monday, Aug. 20, 2018, by calling 855-859-2056, reference No. 3799887. The conference call will be webcast live at the company's website.
About Sprott
Sprott is an alternative asset manager and a global leader in precious metal and real asset investments. Through its subsidiaries in Canada, the United States and Asia, the corporation is dedicated to providing investors with best-in-class investment strategies that include exchange-listed products, alternative asset management and private resource investments. The corporation also operates merchant banking and brokerage businesses in both Canada and the U.S.
© 2018 Canjex Publishing Ltd. All rights reserved.