TORONTO, March 11, 2016 (GLOBE NEWSWIRE) — Sprott Inc. (TSX:SII) (“Sprott” or the “Company”) today announced its financial results for the 12-months ended December 31, 2015.
2015 Financial Overview
Assets Under Management (“AUM”) was $7.4 billion as at December 31, 2015, compared to $7.0 billion as at December 31, 2014 and $7.4 billion as at September 30, 2015.
Assets Under Administration (“AUA”) was $2.0 billion as at December 31, 2015, compared to $1.9 billion as at December 31, 2014 and $2.0 billion as at September 30, 2015.
Total revenues were $126.0 million, reflecting an increase of $1.5 million (1%) from the twelve months ended December 31, 2014.
Total expenses were $157.0 million, reflecting an increase of $60.5 million (63%) from the twelve months ended December 31, 2014. The increase in total expenses year-over-year is due primarily to a series of one-time, non-cash charges including impairment charges on goodwill and intangible assets and loan loss provisions.
General loan loss provisions were $1.2 million on a twelve months ended basis and are new for the year. Specific loan loss provisions were $8.0 million, reflecting an increase of $7.5 million from the twelve months ended December 31, 2014.
At September 30, 2015, goodwill resulting from the acquisition of Global Companies was assessed as being impaired and a charge against earnings in the amount of $28.5 million was taken at that time. At December 31, 2015, goodwill resulting from the acquisition of Sprott Toscana was assessed as also being impaired and a charge against earnings in the amount of $3.2 million was taken in the current quarter.
Impairment charges on intangible assets during the year included: (1) a $0.4 million charge on fixed-term limited partnership contracts in Global Companies taken in the third quarter; (2) a $2.3 million charge on carried interests in Global Companies taken in the first and third quarters; and (3) a $9.3 million charge on the TEIC management contract in the Consulting segment taken in the third quarter.
Net loss was $39.6 million ($(0.16) per share), reflecting a decrease of $59.0 million from the twelve months ended December 31, 2014.
Adjusted base EBITDA was $16.6 million ($0.07 per share), reflecting a decrease of $16.9 million (51%) from the twelve months ended December 31, 2014. The decline was largely due to lower management fees, lower interest income, an increase in the specific loan loss provisions and higher SG&A.
Invested capital stood at $308.6 million, reflecting a $34.7 million (10%) decrease from December 31, 2014.
Significant events for the year-ended December 31, 2015:
Completed repositioning of Sprott Asset Management brand and strengthened investment team with the addition of several portfolio managers, including Dennis Mitchell
Named Whitney George Chairman of Sprott USA
Generated $112 million in net sales
Expanded exchange-listed products franchise with launch of second ETF on NYSE Arca
Successfully completed exchange offer for Central GoldTrust, increasing the AUM of Sprott Physical Gold Trust by approximately $1.1 billion
Hired senior US and international sales personnel
