Sprott Inc. announces third quarter 2009 results

TORONTO, Nov. 5 /CNW/ - Sprott Inc. (TSX: SII) ("Sprott" or the "Company") today announced its financial results for the three- and nine-month periods ended September 30, 2009.

 Q3 2009 Highlights: - Assets Under Management ("AUM") were $4.3 billion as at September 30, 2009, compared to $5.6 billion as at September 30, 2008 and $4.4 billion as at June 30, 2009 - Management Fees were $20.7 million, a decrease of $12.2 million, or 37%, from Q3 2008 - Base EBITDA was $8.0 million, compared with $15.2 million in the comparable prior year period - Net income was $5.5 million ($0.04 per share), versus $3.7 million ($0.02 per share) in Q3 2008 - Declared a third quarter dividend of $0.025 per share on November 3, 2009 - Introduced low-load option for investors in Series A units of Sprott mutual funds - Effective November 2, 2009, expanded the distribution of the FNSSC(1)-Multi Manager Fund from FNSSC members only to all eligible investors (name of the fund changed to "Sprott Multi-Manager Fund") ----------------------- (1) Federation of National Specialty Societies of Canada 

 Assets Under Management ------------------------------------------------------------------------- Three Three Nine Nine months months months months ended ended ended ended September September September September $ millions 30, 2009 30, 2008 30, 2009 30, 2008 ------------------------------------------------------------------------- AUM, beginning of quarter 4,444 7,726 4,449 6,215 ------------------------------------------------------------------------- Net sales (redemptions) (252) 122 (503) 680 ------------------------------------------------------------------------- Market value appreciation (depreciation) of portfolios 146 (2,242) 392 (1,289) ------------------------------------------------------------------------- AUM, end of quarter 4,338 5,606 4,338 5,606 ------------------------------------------------------------------------- 

 Balance Sheet Information September 30, 2009 December 31, 2008 (In $ 000's,) $ $ ------------------------------------------------------------------------- Total Assets 82,095 123,430 Total Liabilities 16,092 43,916 ------------------------------------------------------------------------- Shareholders' Equity 66,003 79,514 ------------------------------------------------------------------------- Summary Income Statement For the For the For the For the three three nine nine months months months months ended ended ended ended September September September September 30, 2009 30, 2008 30, 2009 30, 2008 (In $ 000's, except per share amounts) $ $ $ $ ------------------------------------------------------------------------- Revenue Management fees 20,702 32,860 64,971 102,251 Crystallized Performance Fees 152 1,257 2,367 5,554 Unrealized and realized gains (losses) on proprietary investments 657 (9,706) 3,567 (4,310) Other income 520 1,015 874 4,559 ------------------------------------------------------------------------- Total revenue 22,031 25,426 71,779 108,054 ------------------------------------------------------------------------- Expenses Compensation and benefits 6,212 9,513 21,025 29,313 Trailer fees 4,672 7,022 14,092 22,078 General and administration 2,620 2,721 8,454 7,796 Donations 285 306 861 997 Amortization 197 269 636 382 ------------------------------------------------------------------------- Total expenses 13,986 19,831 45,068 60,566 ------------------------------------------------------------------------- Income before income taxes 8,045 5,595 26,711 47,488 Provision for income taxes 2,539 1,927 8,194 15,720 ------------------------------------------------------------------------- Net income and comprehensive income for the period 5,506 3,668 18,517 31,768 Other expenses(1) 771 843 2,358 1,332 Provision for income taxes 2,539 1,927 8,194 15,720 ------------------------------------------------------------------------- EBITDA 8,816 6,438 29,069 48,820 Unrealized and realized (gains) losses on proprietary investments (657) 9,706 (3,567) 4,310 Performance fees net of performance fee related bonus pool(2) (114) (943) (1,775) (4,165) ------------------------------------------------------------------------- Base EBITDA 8,045 15,201 23,727 48,965 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net Income Per Share - basic .04 .02 .12 .22 ------------------------------------------------------------------------- Net Income Per Share - fully diluted .04 .02 .12 .22 ------------------------------------------------------------------------- (1) Includes interest, amortization and non-cash stock-based compensation expense. (2) Performance Fee related bonus pool is equal to 25% of Performance Fee Revenue.