AGF MANAGEMENT LIMITED 
By | AGF Management Limited Fiscal 2011 Report to Shareholders for the year ended November 30, 2011 |
| AGF Management Limited reports a 7.0% increase in assets under management, revenue increases 9.9% to $675.3 million |
| TORONTO | | | January 25, 2012 |
AGF Management Limited (AGF) today announced financial results for the year ended November 30, 2011, reporting total assets under management (AUM) increased by 7.0% to $46.0 billion at November 30, 2011, from $43.0 billion at November 30, 2010. The increase was the result of the Acuity acquisition in the first quarter of 2011 adding approximately $7.5 billion in AUM. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 7.3% to $275.5 million, compared to the previous year. Excluding one-time charges related primarily to the Acuity acquisition in 2011 and one-time charges related to Smith & Williamson Holdings Limited in 2010, EBITDA increased 9.6% to $287.4 million compared to $262.3 million in 2010. EBITDA margin for the year ended November 30, 2011, decreased to 40.8% compared to 41.8%. Excluding one-time charges, EBITDA margin decreased to 42.6% compared to 42.7% in 2010. "The latter half of 2011 brought a return to global market volatility and there are still challenges ahead for the asset management industry" said Blake C. Goldring, Chairman and CEO of AGF Management Limited. "As we move forward in 2012, we continue to focus on our long-term growth strategy, remain committed to improving sales and performance and look for ways to deliver value to all our stakeholders." Consolidated revenue increased 9.9% to $675.3 million compared to $614.6 million the previous year. Revenue in the Investment Management Operations segment increased 12.6% for the year ended November 30, 2011, to $584.9 million compared to $519.5 million in 2010, due to higher average daily retail fund AUM driven by the acquisition of Acuity. Earnings per share in fiscal 2011, on a fully diluted basis, were $1.18 compared to $1.30 in fiscal 2010. Excluding one-time charges mentioned above, diluted earnings per share were $1.27 per share compared to $1.34 per share in 2010. The Company generated free cash flow from operations of $173.8 million used to pay cash dividends of $97.3 million and repurchase shares of $8.1 million. AGF increased its dividend in the second quarter of 2011 and has maintained the quarterly dividend at $0.27 per share throughout the rest of the year. In total, AGF has returned 60.6% of its free cash flow directly to shareholders through dividend payments and share buybacks in 2011. While AGF Trust total loan assets decreased to $2.9 billion for the year ended November 30, 2011, compared to $3.1 billion in 2010, AGF Trust ended the year on a positive note as loans stabilized in the fourth quarter. Loan originations for the year ended November 30, 2011, increased 125.4% to $401.9 million compared to $178.3 million in 2010. Fourth Quarter Overview During the fourth quarter of 2011, the Company recorded net income of $21.9 million compared to $30.9 million for the three months ended November 30, 2010. Revenue for the fourth quarter ended November 30, 2011, increased to $157.8 million, compared to $155.9 million in the same period in 2010. As a result of increased selling, general and administrative expenses, EBITDA decreased 3.3% in the fourth quarter of 2011. EBITDA margins were 40.5% for the three months ended November 30, 2011, compared to 42.4% for the same period in 2010. Diluted EPS during the fourth quarter of 2011 was $0.23 per share compared to $0.34 per share in 2010. Fiscal 2011 Financial Statement and Notes Fiscal 2011 Management Discussion and Analysis Conference Call AGF will host a conference call to review its earnings results today at 11 a.m. ET. The live audio webcast with supporting materials will be available in the Investor Relations section of AGF's website at www.agf.com or at http://www.media-server.com/m/p/8ad84dzy. Alternatively, the call can be accessed toll-free in North America by dialling 1-866-713-8564 (Passcode #: 95974047). A complete archive of this discussion along with supporting materials will be available at the same webcast address within 24 hours of the end of the conference call. About AGF Management Limited
AGF Management Limited is one of Canada's
premier independent investment management firms
with offices across Canada and subsidiaries around
the world. AGF's products include a diversified
family of award-winning mutual funds, mutual fund
wrap programs and pooled funds. AGF also manages
assets on behalf of institutional investors
including pension plans, foundations and endowments
as well as for private clients. In addition, AGF
Trust is a complementary business that offers GICs,
loans and mortgages through the financial advisor
and mortgage broker channels. With $46 billion in
total assets under management, AGF serves more than
one million investors. AGF trades on the Toronto
Stock Exchange under the symbol AGF.B. AGF Management Limited shareholders and analysts, please contact:
Robert J. Bogart, CPA
Michael Clabby Media, please contact:
Odette Coleman |
