News Column

Aston Hill Announces 2014 Second Quarter Results and $1 Billion Mutual Fund AUM Milestone

August 7, 2014

CALGARY, Aug. 7, 2014 /CNW/ - Aston Hill Financial Inc. ("Aston Hill" or the "Company") (TSX:AHF) announces it has filed its unaudited Condensed Interim Consolidated Financial Statements for the period ended June 30, 2014 and related Management's Discussion and Analysis with Canadian securities regulatory authorities.

Aston Hill Assets Under Management, Advisory and Administration ("AUM") increased 12% year-over-year from $6.7 billion to $7.5 billion at June 30, 2014.  The rise in AUM is mainly the result of new mutual fund subscriptions and the acquisition of closed end funds in 2013. During the quarter, gross sales of mutual funds were $129 million (net $100 million).  YTD gross sales ($308 million) increased by 64% from the prior year.

In May, the Company added two new mutual fund wholesalers, one in British Columbia and one in Quebec, which are expected to increase sales in those two provinces in the future. The Company continues to focus its sales efforts on in-house managed funds, as they generate much higher than average margins. As a result of increased in-house fund sales, Aston Hill has benefitted with a notable increase in quarterly earnings and EBITDA.

In mid-July, subsequent to the second quarter's end, the Company surpassed the $1 billion in AUM milestone of in-house Aston Hill mutual funds.

Financial Highlights



(in thousands of dollars, except assets under management and

per share amounts)



As at June 30,

 2014

As at March 31,

 2014

As at June 30,

 2013

Assets under management (in billions)

$

7.48

$

7.38

$

6.72

Total assets



97,138



95,940



65,289

Shares outstanding



89,351



89,891



73,281









For the three months ended

As at June 30,

2014

As at March 31,

2014

As at June 30,

2013

Total revenues

$

12,151

$

11,068

$

7,686

Total expenses excluding finance expense

9,463



9,551



6,228

Total finance expense

834



1,264



1,052

Income (loss) before income taxes

$

1,854

$

253

$

406

Income tax expense (recovery)

$

560

$

260

$

81

Net (loss) income

$

1,294

$

(7)

$

325

Net income to non-controlling interest



267



199



(4)

Net (loss) income to controlling interest

$

1,027

$

(206)

$

329



















Per share – Basic

$

0.011

$

(0.002)

$

0.004



Per share – Diluted

$

0.011

$

(0.002)

$

0.004

















Cash dividends declared per share

$

0.015

$

0.015

$

0.0125

EBITDA

$

3,403

$

2,164

$

1,819

Adjusted EBITDA

$

3,865

$

2,807

$

2,247



 

For the quarter ended June 30, 2014, Aston Hill's revenues were $12.2 million, an increase of 58% from the prior year revenue of $7.7 million.   The revenue increase was due to the continued growth and performance of the Aston Hill mutual funds and the acquisition of some closed end funds in August 2013.  Revenues increased quarter-over-quarter by 10% from $11.1 million to $12.2 million.  Revenues from sub-advisory mandates continue to decrease as a percentage of total revenue (currently 19% compared to 38% in the prior year) as management remains focused on higher margin mutual and closed end fund growth. In-house mutual funds and closed end funds accounted for 66% of revenues and contributed to some of the highest margins during the quarter.

 

Percent of Revenues by Source for Three Months Ended June 30, 2014

Aston Hill Managed Investment Funds

66%

Sub-Advisory Mandates

19%

Institutional and Energy Management

11%

Aston Hill Securities

4%



 

Total expenses (excluding finance expense) for the quarter were slightly lower at $9.5 million as compared to $9.6 million for the first quarter of 2014, and $10.0 million for the fourth quarter of 2013. The lower corporate expense is a result of stabilized G&A expenses. 

Adjusted EBITDA (before stock-based compensation and net investment gains or losses) for the second quarter was $3.9 million, a 39% increase from the prior quarter adjusted EBITDA of $2.8 million.  Net income for the quarter was $1.0 million as compared to a net loss in the prior quarter of $0.2 million. The increasing EBITDA and net income illustrate the growing impact of higher margin in-house products.

During the quarter, Aston Hill realized $8.7 million in proceeds from the sale of its shares of Journey Energy Inc., representing a premium to its year end valuation of $7.8 million.  As a result, the Company had a $10.8 million cash position at the end of the quarter.

Aston Hill Financial Inc. is a diversified asset management company with a suite of retail mutual funds, closed end funds, private equity funds, hedge funds and segregated institutional funds.  Aston Hill Financial has offices in Calgary, Toronto and Halifax.

The TSX has neither approved nor disapproved the information contained herein.

1.

Adjusted EBITDA and EBITDA:  Adjusted EBITDA and EBITDA are not standardized earnings measures prescribed by IFRS; however, management believes that most of its shareholders, creditors, other stakeholders and investment analysts prefer to use these performance measures in analyzing Aston Hill's results.





2.

Forward-Looking Statements: This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release.  Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements.



For a detailed description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's annual financial statements and management discussion and analysis for the year ended December 31, 2013, both of which are available at www.sedar.com.  The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking statements.

SOURCE Aston Hill Financial Inc.


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Source: Canada Newswire


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