Mr. Peter Grosskopf reports
SPROTT ANNOUNCES 2018 FIRST QUARTER RESULTS
Sprott Inc. has provided its financial results for the three months ended March 31, 2018.
Financial overview for the quarter ended March 31, 2018:Assets under management (AUM) were $11.6-billion as at March 31, 2018, compared with $7.3-billion as at Dec. 31, 2017.Total net revenues (net of commission expenses, trailer fees, subadviser fees and performance fee payouts) were $27.2-million, reflecting an increase of $300,000 (1 per cent) from the quarter ended March 31, 2017.Total expenses (excluding commission expenses, trailer and subadviser fees, and performance fee payouts) were $16.4-million, reflecting a decrease of $500,000 (3 per cent) from the quarter ended March 31, 2017.Net income was $13.7-million (six cents per share), reflecting an increase of $4.8-million (55 per cent) from the quarter ended March 31, 2017.On a normalized basis (taking into account the 2017 sale of non-core diversified assets, loan loss provision reversal and related catch-up interest) adjusted base EBITDA (earnings before interest, taxes, depreciation and amortization) from core businesses increased by 61 per cent from the quarter ended March 31, 2017, to $10.0-million (four cents) per share.Investable capital stood at $189-million as at March 31, 2018, compared with $293-million as at Dec. 31, 2017.
Significant events for the quarter ended March 31, 2018:
Completed strategic acquisition of Central Fund of Canada Ltd. (CFCL), adding $4.3-billion in assets to physical bullion franchise.
"Our assets under management increased to $11.6-billion during the first quarter of 2018, following the completion of our acquisition of Central Fund of Canada Ltd., which contributed to our strong financial results for the quarter," said Peter Grosskopf, chief executive officer of Sprott. "With the realignment of the business complete, we are focused on continuing to build a global precious metal investment management business offering leading bullion products, ETFs and active equity strategies. We believe there are exciting opportunities ahead of us as we continue to explore complementary acquisitions and strategic partnerships."
ASSETS UNDER MANAGEMENT (in millions of dollars)AUM Net sales Market Acquisitions & AUMDec. 31, 2017 & capital calls value change divestituresMarch 31, 2018 Exchange-listed products Physical trusts$4,200$(122) $188 $4,337$8,603ETFs434- (23) - 4114,634 (122)1654,337 9,014Alternative asset managementIn-house405-(6) - 399Subadvised710 (5)(49) - 6561,115 (5)(55) - 1,055Private resource investmentsManaged companies 706-17(98)625Fixed term LPs308- 4- 312Separately managed accounts 308-(5) - 303Private resource lending LPs252 30 -- 2821,574 3016(98)1,522 Total 7,323(97)1264,23911,591
DividendsOn May 10, 2018, a dividend of three cents per common share was declared for the quarter ended March 31, 2018.
Conference call and webcast
A conference call and webcast will be held today, May 11, 2018, at 10 a.m. ET 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 8291608. A taped replay of the conference call will be available until Friday, May 19, 2018, by calling 855-859-2056, reference No. 8291608. The conference call will be webcast live at the company's website and the Media-Server website.
About Sprott Inc.
Sprott is an alternative asset manager and a global leader in precious metal and real asset investments.
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