TORONTO, Sept. 25, 2019 (GLOBE NEWSWIRE) --
AGF Management Limited (AGF or the Company) (TSX: AGF.B) today announced financial results for the third quarter ended August 31, 2019.
AGF reported total assets under management (AUM) of $37.4 billion compared to $38.8 billion in the same period in 2018.
“As we enter the final months of 2019, we continue to make progress against our stated goals and growth objectives for our business,” said Kevin McCreadie, Chief Executive Officer and Chief Investment Officer, AGF. “Building on our diversified investment management platform, we remain focused on accelerating key areas and markets of future growth including deepening our capabilities in alternatives and quantitative investing.”
AGF’s private alternative and quantitative investment management businesses have grown 140% and 16%, respectively, compared to the same period in 2018, now representing $10.2 billion or 27% of total assets under management. Together the businesses complement AGF’s other business lines and continue to diversify the revenue sources of the firm.
“Given the current market environment, we expect the demand for alternatives to continue to rise and have continued to invest in our expertise across the spectrum of alternative investments,” added McCreadie.
Key Business Highlights:
Reported mutual funds net redemptions were $103.0 million for the quarter, compared to net redemptions of $9.0 million in Q3 2018. Excluding net flows from institutional clients invested in mutual funds2, net redemptions were $32.0 million in the comparative period of 2018.
Income for the three months ended August 31, 2019 was $107.4 million, compared to $116.5 million for the three months ended August 31, 2018. EBITDA before commissions from continuing operations was $29.0 million for the three months ended August 31, 2019, compared to $32.2 million for the same period in 2018.
Diluted earnings per share (EPS) from continuing operations for the three months ended August 31, 2019 was $0.18, compared to $0.26 for the comparative period. Adjusting for one-time items in prior year, diluted EPS for the three months ended August 31, 2019 was $0.18, compared to $0.20 in 2018.
For the three months ended August 31, 2019, AGF declared an eight cent per share dividend on Class A Voting common shares and Class B Non-Voting shares, payable October 18, 2019 to shareholders on record as at October 10, 2019.
(from continuing operations) | Three months ended | Nine months ended | ||||||||||||
August 31, | May 31, | August 31, | August 31, | August 31, | ||||||||||
(in millions of Canadian dollars, except per share data) | 2019 | 3 | 2019 | 3 | 2018 | 2019 | 3 | 2018 | ||||||
Income | $ | 107.4 | $ | 109.8 | $ | 116.5 | $ | 322.2 | $ | 341.6 | ||||
Net income attributable to equity owners | ||||||||||||||
of the Company | 14.4 | 11.5 | 20.7 | 25.7 | 59.1 | |||||||||
EBITDA before commissions4 | 29.0 | 29.2 | 32.2 | 71.2 | 77.7 | |||||||||
Adjusted EBITDA before commissions4 | 29.0 | 29.2 | 32.2 | 85.6 | 82.9 | |||||||||
Diluted earnings per share attributable to | ||||||||||||||
equity owners of the Company | 0.18 | 0.14 | 0.26 | 0.32 | 0.73 | |||||||||
Adjusted diluted earnings per share attributable to | ||||||||||||||
equity owners of the Company4 | 0.18 | 0.14 | 0.20 | 0.46 | 0.48 | |||||||||
Free Cash Flow4 | 9.7 | 8.2 | 12.8 | 34.4 | 25.3 | |||||||||
Dividends per share | 0.08 | 0.08 | 0.08 | 0.24 | 0.24 | |||||||||
Long-term debt | 158.9 | 164.9 | 168.7 | 158.9 | 168.7 | |||||||||
(end of period) | Three months ended | |||||||||||||
August 31, | May 31, | February 28, | November 30, | August 31, | ||||||||||
(in millions of Canadian dollars) | 2019 | 2019 | 2019 | 2018 | 2018 | |||||||||
Mutual fund assets under management (AUM)5 | ||||||||||||||
(including retail pooled funds) | $ | 18,839 | $ | 18,725 | $ | 19,028 | $ | 18,713 | $ | 19,401 | ||||
Institutional, sub-advisory and ETF accounts AUM | 10,391 | 11,712 | 12,023 | 12,475 | 12,694 | |||||||||
Private client AUM | 5,778 | 5,722 | 5,633 | 5,513 | 5,714 | |||||||||
Private Alternative AUM6 | 2,413 | 2,179 | 2,140 | 1,011 | 1,009 | |||||||||
Total AUM, including Private Alternative AUM | 37,421 | 38,338 | 38,824 | 37,712 | 38,818 | |||||||||
Net mutual fund sales (redemptions)5 | (103) | (498) | (104) | 111 | (9) | |||||||||
Average daily mutual fund AUM5 | 18,244 | 18,497 | 17,762 | 18,382 | 18,788 | |||||||||
For further information and detailed financial statements for the third quarter ended August 31, 2019, including Management’s Discussion and Analysis, which contains discussions of non-IFRS measures, please refer to AGF’s website at www.agf.com under About AGF and Investor Relations and at www.sedar.com.
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 https://edge.media-server.com/mmc/p/ep39e6fq. Alternatively, the call can be accessed toll-free in North America by dialing 1 (800) 708-4539 (Passcode #:48963561).
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
Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.
AGF has investment operations and client servicing teams on the ground in North America, Europe and Asia. With over $37 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, analysts and media, please contact:
Adrian Basaraba
Senior Vice-President and Chief Financial Officer
416-865-4203, InvestorRelations@agf.com
Baoqin Guo
Vice-President, Finance
416-865-4228, InvestorRelations@agf.com
Caution Regarding Forward-Looking Statements
This press release includes forward-looking statements about the Company, including its business operations, strategy and expected financial performance and condition. 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,’ ‘estimates,’ ‘anticipates,’ ‘intends,’ ‘plans,’ ‘believes’ or negative versions thereof and similar expressions, or future or conditional verbs such as ‘may,’ ‘will,’ ‘should,’ ‘would’ and ‘could.’ In addition, any statement that may be made concerning future financial performance (including income, revenues, earnings or growth rates), ongoing business strategies or prospects, fund performance, and possible future action on our part, is also a forward-looking statement. Forward-looking statements are based on certain factors and assumptions, including expected growth, results of operations, business prospects, business performance and opportunities. While we consider these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about our operations, economic factors and the financial services industry generally. They are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements made by us due to, but not limited to, important risk factors such as level of assets under our management, volume of sales and redemptions of our investment products, performance of our investment funds and of our investment managers and advisors, client-driven asset allocation decisions, pipeline, 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 general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, taxation, changes in government regulations, unexpected judicial or regulatory proceedings, technological changes, cybersecurity, catastrophic events, and our ability to complete strategic transactions and integrate acquisitions, and attract and retain key personnel. We caution 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. Other than specifically required by applicable laws, we are under no obligation (and expressly disclaim any such obligation) to update or alter the forward-looking statements, whether as a result of new information, future events or otherwise. For a more complete discussion of the risk factors that may impact actual results, please refer to the ‘Risk Factors and Management of Risk’ section of the 2018 Annual MD&A.