Dundee Corporation
TSX : DC.A

Dundee Corporation

March 30, 2016 19:13 ET

Dundee Corporation Reports 2015 Fourth Quarter and Full Year Financial Results

TORONTO, ONTARIO--(Marketwired - March 30, 2016) - Dundee Corporation (TSX:DC.A) (the "Corporation" or "Dundee") is reporting its financial results for the three months and full year ended December 31, 2015. The net loss for the fourth quarter of 2015 attributable to shareholders was $55 million or a loss of $0.97 per share, compared with a net loss of $178 million or $3.20 per share incurred during the same period of the prior year. On a year-to-date basis, the net loss attributable to shareholders was $459 million or $7.99 per share, compared with a net loss of $318 million or $5.93 per share for the prior year.

"Last year was a challenging one for our company. Nevertheless, we have taken steps to improve liquidity, lower our costs and develop our wealth management business," said David Goodman, Chief Executive Officer of the Corporation.

FINANCIAL RESULTS

  • The Corporation incurred a net loss, before non-controlling interests of $63.9 million in the fourth quarter of 2015, compared with $194.4 million in the same period of 2014. During the year ended December 31, 2015, the net loss, before non-controlling interests, was $577.2 million and included a write down of $215.2 million against the Corporation's resource property held through its investment in United Hydrocarbon.
  • Fourth quarter consolidated revenues totalled $61.4 million, compared with revenues of $70.9 million in the fourth quarter of the prior year. Consolidated revenues on an annual basis were $280.7 million, compared with $311.5 million in the prior year.
  • The Corporation reported cash at December 31, 2015 of $211.9 million, of which $49.2 million was held at the head office level, a substantial increase over the $24.5 million of cash held at the head office level as at December 31, 2014.
  • The Corporation is reporting a marked-to-market value per share of approximately $15.45 at December 31, 2015, reflective of the underlying trading prices of its portfolio of securities, and after changes in the carried value of its investment in United Hydrocarbon.
  • Assets under management and administration were $4.7 billion at December 31, 2015, of which approximately $3.5 billion have been assigned to the assets that are being sold to Euro Pacific Canada in April 2016, as outlined below.

OPERATIONAL ACHIEVEMENTS

  • In December, the Corporation initiated the proposed exchange of Series 4 Preferred Shares for Series 5 Preferred Shares pursuant to a plan of arrangement. The plan of arrangement was approved in January 2016 and the exchange to the Series 5 Preferred Shares was concluded in February 2016, extending the redemption date for three years.
  • In December, the Corporation announced the appointment of Adam Donsky, CFA, to the position of Chief Investment Officer, at Goodman & Company, Investment Counsel Inc., effective January 4, 2016. Goodman & Company, Investment Counsel is central to Dundee's wealth management strategy and is the investment counsel and portfolio management ("ICPM") platform that will cater to the high-net-worth and ultra-high-net-worth markets.
  • In January 2016, the Corporation announced the sale of Dundee Goodman Private Wealth to Euro Pacific Canada. This transaction is expected to result in approximately $40 million of additional liquidity and ongoing cost savings to Dundee, which will support strategic priorities.
  • In February 2016, Brad J. Henderson was appointed to the position of President and CEO of Sotheby's International Realty Canada. The Sotheby's brand resonates strongly with affluent clients globally, and will be a key component of Dundee's wealth management strategy.

CORPORATE VISION AND STRATEGIC DIRECTION

Dundee's strategy to create long-term value for stakeholders is being driven through the establishment of a wealth management business focused on the high-net-worth and ultra-high-net-worth markets, supported by top quality investment products, and managed by a team of experienced portfolio managers. In parallel with its wealth management vision, the Corporation has taken steps to rationalize its merchant capital portfolio, focusing on those investments that the Corporation considers core to its expertise and aligned to its objectives of sustainable growth and value for shareholders.

The Corporation believes that over time, the successful execution of the wealth management strategy will help generate more regular and predictable cash flows. It is anticipated that future cash flows in the wealth management business will come from a combination of asset management and performance based fees. The Corporation also believes it has taken important steps to address issues with entities within its merchant capital portfolio in order to help ensure they are well positioned for a future recovery in commodity prices.

The Corporation's 2015 audited consolidated financial statements, along with the accompanying management's discussion and analysis have been filed on the System for Electronic Document Analysis and Retrieval ("SEDAR") and may be viewed by interested parties under the Corporation's profile at www.sedar.com or the Corporation's website at www.dundeecorp.com.

ABOUT DUNDEE CORPORATION

Dundee Corporation is a public Canadian independent holding company, listed on the Toronto Stock Exchange under the symbol "DC.A". Through its operating subsidiaries, Dundee Corporation is engaged in diverse business activities in the areas of investment advisory, corporate finance, energy, resources, agriculture, real estate and infrastructure. Dundee Corporation also holds, directly and indirectly, a portfolio of investments mostly in these key areas, as well as other select investments in both publicly listed and private enterprises.

Contact Information

  • John Vincic
    Media Relations
    Dundee Corporation
    (647) 402-6375

    Lucie Presot
    Executive Vice President and
    Chief Financial Officer
    Dundee Corporation
    (416) 365-5157