Mr. Peter Grosskopf reports
SPROTT ANNOUNCES 2019 FIRST QUARTER RESULTS
Sprott Inc. has provided its financial results for the three months ended March 31, 2019.
Financial overview (three-month results)
Assets under management (AUM) were $10.6-billion as at March 31, 2019, down slightly from Dec. 31, 2018.
Investable capital stood at $203-million as at March 31, 2019, up $1-million (1 per cent) from Dec. 31, 2018.
Total net revenues (net of commission expenses, trailer fees and subadviser fees, carried interest, and performance fee payouts) were $19.4-million, reflecting a decrease of $7.8-million (29 per cent) from the quarter ended March 31, 2018. Last year's net revenues contained $4.2-million of proceeds from the sale of the company's non-core client assets as well as $600,000 of net performance fees.
Total expenses (excluding commission expenses, trailer fees and subadviser fees, carried interest and performance fee payouts) were $14.7-million, reflecting a decrease of $1.6-million (10 per cent) from the quarter ended March 31, 2018.
Net income was $3.8-million (two cents per share), reflecting a decrease of $9.9-million (72 per cent) from the quarter ended March 31, 2018. Last year's net income contained $4.2-million of proceeds from the sale of the company's non-core private wealth business as well as $600,000 of net performance fees.
Adjusted base EBITDA (earnings before interest, taxes, depreciation and amortization) was $9.2-million (four cents per share), a decrease of $800,000 (8 per cent) from the quarter ended March 31, 2018.
"Precious metal prices have come under pressure recently, as global central banks have abandoned their short-lived programs to increase interest rates," said Peter Grosskopf, chief executive officer of Sprott. "With highly correlated markets moving in lockstep to all-time highs, we continue to believe an allocation to gold will protect our clients from the inevitable consequences of unsustainable global debt levels and we have positioned our portfolios accordingly.
"Our AUM was relatively flat in the first quarter of 2019 at $10.6-billion, as the addition of new AUM in our lending business was offset by declines in our exchange-listed products business line," added Mr. Grosskopf. "We continue to focus on driving growth in our core businesses by expanding our global client base and exploring in-market acquisitions."
ASSETS UNDER MANAGEMENT
in millions of dollars
AUM Net sales Market Distributions, AUM
Dec. 31, and capital value acquisitions March 31,
2018 calls change and divestitures 2019
Physical trusts $7,927 $(260) $(186) $- $7,481
ETFs 237 17 15 - 269
8,164 (243) (171) - 7,750
Lending 498 264 (16) (15) (1) 731
In house 295 27 31 - 353
Subadvised 505 19 (1) - 523
Fixed term LPs 243 - (2) - 241
1,043 46 28 - 1,117
Other 873 72 26 - 971
Total 10,578 139 (133) (15) 10,569
(1) Distributions of principal receipts to clients of the company's lending LPs.
On May 9, 2019, a dividend of three cents per common share was declared for the quarter ended March 31, 2019.
Conference call and webcast
A conference call and webcast will be held today, May 10, 2019, 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 7398085. A taped replay of the conference call will be available until Friday, May 17, 2019, by calling 855-859-2056, reference No. 7398085. 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. 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, lending, managed equities and brokerage. Sprott is based in Toronto with offices in New York, Carlsbad and Vancouver, and its common shares are listed on the Toronto Stock Exchange under the symbol.
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