AGF Management Limited : Reports Fourth Quarter and Fiscal 2013 Financial Results

AGF Management Limited (AGF) today announced financial results for the year ended November 30, 2013.

2013 Operational Highlights

Innovation has led to an uplift in the trajectory of AGF's retail business.  In 2013, AGF retail mutual funds experienced eleven consecutive months of improvement in net outflows compared to the equivalent months in 2012. The introduction of AGF U.S. AlphaSector Class along with the continued success of AGF Floating Rate Income Fund both contributed to this improvement, with total sales to date of over $400 million.

During the fourth quarter of 2013, AGF announced the launch of a Dublin-based Undertaking for Collective Investment in Transferable Securities (UCITS) fund family. This new UCITS platform will allow the Company to market its fund offerings to new markets and will allow AGF to diversify its global client base. Also during the quarter, AGF re-signed a long-term contract with the Company's largest strategic partner, Primerica. Under the agreement, AGF will continue to support the investment needs of over 10,000 Primerica representatives.

"We continue to focus on our strategic priorities and we are encouraged with the results to date," said Blake C. Goldring, Chairman and Chief Executive Officer, AGF Management Limited. "With the recent successful launch of AGF's UCITS fund family and the opening of our London, England representative office, we remain well positioned to take advantage of the improving economic climate and demand for global mandates," added Goldring.

Fourth Quarter Overview

During the fourth quarter of 2013, the Company recorded net income from continuing operations of $7.1 million, compared to $13.0 million during the same period in 2012. Revenue for the fourth quarter ended November 30, 2013 was $117.4 million, compared to $124.9 million in the same period in 2012. As a result, and due to restructuring costs of $3.6 million recognized in the quarter, earnings before interest, taxes, depreciation and amortization (EBITDA) was $33.6 million, compared to $49.9 million in the respective 2012 period.

Diluted earnings per share (EPS) from continuing operations was $0.08 in the three months ended November 30, 2013, compared to $0.14 for the same period in 2012.

2013 Financial Results Summary

Total assets under management (AUM) was $34.4 billion at November 30, 2013, compared to $39.2 billion at November 30, 2012. The change in AUM was largely a result of redemptions within institutional accounts.

Consolidated revenue from continuing operations was $484.5 million, compared to $510.2 million in the same period in 2012, in line with AUM levels.

Diluted EPS from continuing operations for the year ended November 30, 2013 was $0.25, compared to $0.29 in 2012. Adjusted diluted EPS from continuing operations was $0.53 for fiscal 2013, compared to $0.63 for the same period in 2012.

Dividends paid to shareholders remained unchanged from 2012 at $1.08 per share. In fiscal 2013, AGF repurchased a total of  2,685,258 shares for $30.7 million. In total, AGF returned $123.5 million of free cash flow from operations to shareholders through a combination of cash dividends and share buybacks.

EBITDA was $163.6 million, compared to $189.0 million in 2012. Net income from continuing operations was $22.4 million, compared to $27.7 million in 2012. Net income in 2013 included a one-time item of $25.0 million reflecting a true-up in the Company's tax provision related to a Canada Revenue Agency (CRA) transfer pricing audit. Net income in 2012 included one-time charges totalling $32.0 million.

• Fiscal 2013 Financial Statement and Notes
• Fiscal 2013 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/d3xqfn9y. Alternatively, the call can be accessed toll-free in North America by dialing 1 [phone] (Passcode #: 36379739).

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. With over $35 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
Executive Vice-President and Chief Financial Officer
416-865-4264, [e-mail]

Adrian Basaraba
Senior Vice-President, Finance
416-865-4203, [e-mail]

Caution Regarding Forward-Looking Statements

This release includes forward-looking statements. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes' or negative versions thereof and similar expressions, or future or conditional verbs such as 'may,' 'will,' 'should,' 'would' and 'could.' Forward-looking statements are based on certain factors and assumptions, including expected growth, results of operations, economic factors, business prospects, business performance and opportunities. While the Company considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements due to, but not limited to, important risk factors such as level of assets under management, volume of sales and redemptions of investment products, performance of investment funds and of investment managers and advisors, competitive fee levels for investment management products and administration, and competitive dealer compensation levels and cost efficiency in our investment management operations, as well as interest and foreign-exchange rates, taxation, changes in government regulations, unexpected judicial or regulatory proceedings, and the Company's ability to complete strategic transactions and integrate acquisitions. The Company cautions that the foregoing list is not exhaustive. The reader is cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements. Forward-looking statements are given only as at the date of this release and other than specifically required by applicable laws, the Company is under no obligation (and expressly disclaims any such obligation) to update or alter the forward-looking statements, whether as a result of new information, future events or otherwise. Additional risks and uncertainties can be found in our MD&A for the fiscal year ended November 30, 2013 under the headings "Caution Regarding Forward-Looking Statements" and "Risk Factors and Management of Risk" and in our other filings with Canadian securities regulatory authorities.