Dundee Bancorp Inc. Announces Third-Quarter 1997 Results.TORONTO--(BUSINESS WIRE)--Nov. 13, 1997--Dundee Bancorp Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :DBC See dBA. (language, parallel) DBC - A data-parallel bit-serial C based on MPL. SRC, Bowie MD. E-mail: <maya@super.org>. .A) Dundee Dundee, city (1991 pop. 172,294) and council area, E central Scotland, on the Firth of Tay. It is a port and manufacturing city. Dundee is historically known for its manufacture and processing of jute. Its marmalade is also famous. Bancorp Inc. announced today that net income for the nine and three months ended September September: see month. 30, 1997 was $38.9 million or $1.53 per share and $19.0 million or $0.75 per share, respectively. This compares with net income of $25.8 million or $1.17 per share and $7.1 million or $0.32 per share for the same periods of the prior year. Management fee revenue was $29.6 million in the third quarter of 1997, an increase of 41% from the third quarter of 1996, reflecting continued asset growth in the investment management business. Total assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. at September 30, 1997 were $8.45 billion, comprised of third party assets of $7.7 billion and a merchant banking portfolio of $750 million. Total revenue for the third quarter was $37.7 million compared with $33.8 million in the third quarter of 1996. Net investment income for the quarter ended September 30, 1997 was $7.6 million (1996 - $10.2 million). Third quarter investment income includes realized gains Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. on the sale of investments of $6.6 million. Unrealized gains Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. are not reflected in earnings and realized gains will vary from period to period. During the quarter, the Company issued $150,000,000 of 6.7% senior unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. 10 year debentures. Subsequent to the quarter end, the Company completed a $101 million equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. through an underwriting syndicate Underwriting syndicate A group of investment banks that work together to sell new security offerings to investors. The underwriting syndicate is led by the lead underwriter. See also: Lead underwriter. underwriting syndicate See syndicate. whereby it issued 2,500,000 class A shares at $40.60 per share. Dundee Bancorp Inc. is a leading investment management firm which provides investment management and administrative services to the Dynamic Mutual Funds, closed-end funds Closed-end fund An investment company that issues shares like any other corporation and usually does not redeem its shares. A publicly traded fund sold on stock exchanges or over the counter that may trade above or below its net asset value. Related: Open-end fund. , pension funds and other institutional clients. Dundee also provides merchant banking services and manages its own corporate portfolio.
DUNDEE BANCORP INC.
CONSOLIDATED BALANCE SHEETS
(expressed in thousands of Canadian dollars)
(unaudited)
September 30, December 31,
1997 1996
----------- -----------
ASSETS
Cash and short-term investments $ 154,797 $ 7,674
Accounts receivable 20,210 24,298
Corporate portfolio 305,084 266,767
Deferred commissions 107,470 97,016
Other assets 35,564 25,820
----------- -----------
623,125 421,575
LIABILITIES
Accounts payable and
accrued liabilities 17,440 16,581
Notes and loans payable 7,447 7,447
Long-term debt 149,538 -
Deferred income taxes 44,323 33,024
----------- -----------
218,748 57,052
----------- -----------
NET ASSETS $ 404,377 $ 364,523
----------- -----------
NET ASSETS REPRESENTED BY:
Share Capital - Common shares 232,995 231,441
- Preference shares 5,686 5,686
Retained earnings 164,462 126,162
Foreign currency
translation adjustments 1,234 1,234
----------- -----------
SHAREHOLDERS' EQUITY $ 404,377 $ 364,523
----------- -----------
TOTAL COMMON SHARES
OUTSTANDING (CLASS A AND B) 25,378,932 25,277,587
----------- -----------
----------- -----------
DUNDEE BANCORP INC.
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
For the periods ended September 30, 1997 and 1996
(expressed in thousands of Canadian dollars, except per-share
amounts)
(unaudited)
Three months Nine months
1997 1996 1997 1996
-----------------------------------------
REVENUE
Management fees $ 29,646 $ 21,015 $ 82,895 $ 59,816
Financial services 480 2,636 2,513 3,709
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30,126 23,651 85,408 63,525
Investment income 7,565 10,164 20,891 47,570
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37,691 33,815 106,299 111,095
-----------------------------------------
EXPENSES
Selling, general &
administrative 9,848 7,328 30,509 23,064
Amortization of
deferred commissions 9,146 6,790 25,777 18,492
Trailer fees 6,390 4,097 17,357 11,521
Depreciation and
amortization 819 698 2,413 1,994
Interest 358 725 518 2,505
-----------------------------------------
26,561 19,638 76,574 57,576
-----------------------------------------
OPERATING INCOME 11,130 14,177 29,725 53,519
Provision for deferred
income taxes (3,805) (7,360) (12,535) (25,060)
Gains from dilution of
interest in
equity-accounted
investments 7,198 - 10,158 -
Share of net income
(loss) of
equity-accounted
investees 4,483 308 11,586 (2,641)
-----------------------------------------
NET INCOME FOR
THE PERIOD 19,006 7,125 38,934 25,818
Retained earnings at
beginning of period 145,689 109,065 126,162 91,068
-----------------------------------------
164,695 116,190 165,096 116,886
Premiums related to
cancellation of
share capital (162) (75) (362) (361)
Dividends (71) (206) (272) (616)
-----------------------------------------
RETAINED EARNINGS AT
END OF PERIOD $ 164,462 $ 115,909 $ 164,462 $ 115,909
-----------------------------------------
-----------------------------------------
INCOME PER SHARE
After preference
share dividends $ 0.75 $ 0.32 $ 1.53 $ 1.17
Fully diluted $ 0.68 $ 0.30 $ 1.40 $ 1.06
-----------------------------------------
-----------------------------------------
DUNDEE BANCORP INC.
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
For the periods ended September 30, 1997 and 1996
(expressed in thousands of Canadian dollars)
(unaudited)
1997 1996
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NET INFLOW (OUTFLOW) OF CASH RELATED
TO THE FOLLOWING ACTIVITIES:
OPERATING
Operating income $ 29,725 $ 53,519
Items not affecting cash
from operations:
Depreciation and amortization 28,190 20,486
Net investment gains (19,168) (45,242)
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38,747 28,763
Accounts receivable, accounts
payable and accrued liabilities 3,653 1,743
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42,400 30,506
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FINANCING
Decrease in notes and loans payable - (4,112)
Proceeds from bond issue net of costs 148,313 -
Issuance of Class A subordinate shares 1,717 3,558
Acquisition of Class A subordinate
shares (525) (683)
Preference share dividends and
related taxes (272) (616)
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149,233 (1,853)
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INVESTING
Proceeds on sales of investments 35,949 73,327
Corporate investments (33,296) (50,311)
Commissions paid on sales of mutual
funds -- net (36,231) (41,243)
Other (10,932) (4,402)
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(44,510) (22,629)
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INCREASE IN CASH AND SHORT-TERM
INVESTMENTS 147,123 6,024
CASH AND SHORT-TERM INVESTMENTS,
BEGINNING OF PERIOD 7,674 (22)
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CASH AND SHORT-TERM INVESTMENTS,
END OF PERIOD $ 154,797 $ 6,002
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CONTACT: Dundee Bancorp Inc. Ray Benzinger, 416/863-6990 |
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