Gluskin Sheff boosts regular dividend, declares special dividend as profit soars
By The Canadian Press | September 15, 2011
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TORONTO - Gluskin Sheff + Associates Inc. (TSX:GS) will pay a special dividend and raise its regular quarterly dividend by 18 per cent, the wealth management company announced Thursday as it reported that fourth-quarter profit nearly quadrupled.
The special dividend of 80 cents per common share will be paid on Oct. 21.
The Toronto-based company will also pay a regular dividend of 13.75 cents per share on Oct. 21 and then increase the payout to 16.25 cents per quarter, or 65 cents per year on an annualized basis.
"Despite ongoing volatility in global capital markets, we continue to see opportunities to build our business," said Jeremy Freedman, Gluskin Sheff's president and chief executive officer.
Net income for the three months ended June 30 was $22.2 million or 75 cents per diluted share, up from 20 cents per share or $21.8 million a year earlier.
Revenue was $48.6 million, up from $21.8 million. Most of the improvement was came from performance fees, which rose to $21.1 million from $1.9 million in the fourth quarter of fiscal 2010.
The performance fees are earned when the company exceeds pre-specified rates of return.
The company's basic management fees, calculated as a percentage of assets under management, rose by about $1.1 million to $20.8 million.
For the financial year ended June 30, 2011, net income was $49.9 million or $1.69 per diluted share with $129.9 million of revenue from all sources. Fiscal 2010 had $38.4 million or $1.30 with $123.3 million of revenue.
Gluskin Sheff stock closed at $18 at the Toronto Stock Exchange. At that price, the new regular dividend will yield four per cent annually.
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