DundeeWealth Inc.

DundeeWealth Inc.

March 30, 2005 23:30 ET

Dundee Wealth Reports Q4 and 2004 Year End Financial Results


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: DUNDEE WEALTH MANAGEMENT INC.

TSX SYMBOL: DW

MARCH 30, 2005 - 23:30 ET

Dundee Wealth Reports Q4 and 2004 Year End Financial
Results

TORONTO, ONTARIO--(CCNMatthews - March 30, 2005) - Dundee Wealth
Management Inc. (TSX:DW) reported its financial results for the three
months and the year ended December 31, 2004. A summary of these results,
including a statement of cash flows and a statement of financial
condition is attached.

The audited consolidated financial statements along with Management's
Discussion and Analysis of the 2004 results will be filed on March 31,
2005. Interested parties may access these statements at such time at
www.sedar.com or www.dundeewealth.com.

Dundee Wealth is also pleased to report that its board of directors has
approved an increase in the quarterly dividend from $0.015 per common
and special share to $0.02 per common and special share at the time the
next quarterly dividend is declared and approved.

Dundee Wealth is a Canadian owned, TSX listed wealth management company
that provides investment management, securities brokerage, financial
planning and investment advisory services to individuals, financial
advisors, institutions, corporations and foundations. Dundee Wealth
oversees $42.7 billion in assets under management and administration and
2,118 independent financial advisors and 503 insurance agents located in
684 branches and sub-branches across Canada.



DUNDEE WEALTH MANAGEMENT INC.
CONSOLIDATED BALANCE SHEETS


As at December 31, 2004 and 2003
(expressed in thousands of dollars)
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December 31, December 31,
2004 2003
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ASSETS
Cash and cash equivalents $ 150,837 $ 116,917
Securities owned 16,788 24,978
Accounts receivable 78,668 91,939
Client accounts receivable 282,284 354,347
Corporate investments 23,006 15,790
Deferred sales commissions 109,912 85,309
Capital and other assets 26,693 29,062
Goodwill and other intangible assets 441,536 453,937
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TOTAL ASSETS $ 1,129,724 $ 1,172,279
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LIABILITIES
Bank indebtedness $ 361 $ 21,181
Accounts payable and accrued liabilities 95,888 108,724
Securities sold short 7,061 3,966
Client deposits and related liabilities 273,311 336,126
Income taxes payable 10,521 13,800
Amounts due to parent - 32,359
Corporate debt 21,179 38,248
Future income tax liabilities 54,701 32,097
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463,022 586,501
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NON CONTROLLING INTEREST 102,523 76,112
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SHAREHOLDERS' EQUITY
Share capital
Common and special shares 349,826 323,231
Preference shares 54,537 54,537
Contributed surplus 27,263 26,169
Deferred acquisition obligations 1,860 2,446
Retained earnings 130,693 103,283
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564,179 509,666
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,129,724 $ 1,172,279
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DUNDEE WEALTH MANAGEMENT INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

For the three months and the years ended December 31, 2004 and 2003
(expressed in thousands of dollars, except per share amounts)
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Three Months Year

2004 2003 2004 2003
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REVENUE
Management fees $ 68,170 $ 72,732 $ 236,206 $ 191,543
Redemption fees 2,783 2,477 10,580 10,515
Financial services 77,710 44,009 328,402 147,766
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148,663 119,218 575,188 349,824
Investment income 435 934 28,660 1,283
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149,098 120,152 603,848 351,107
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EXPENSES
Selling, general and
administrative 55,570 42,554 199,290 131,630
Variable compensation 54,983 23,841 229,809 82,144
Trailer fees 11,787 9,868 42,784 33,448
Distribution fees 1,083 1,313 4,598 5,034
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123,423 77,576 476,481 252,256
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EARNINGS BEFORE INTEREST,
TAXES AND OTHER NON CASH ITEMS 25,675 42,576 127,367 98,851
Amortization of deferred sales
commissions 9,479 10,719 35,863 42,404
Depreciation and amortization 2,535 1,219 9,835 5,057
Interest expense 632 2,305 2,154 5,211
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EARNINGS FROM OPERATIONS 13,029 28,333 79,515 46,179
Income taxes
Current 4,971 13,810 11,348 18,569
Future 1,800 (2,522) 22,654 (1,000)
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6,771 11,288 34,002 17,569
Non controlling interest 1,125 2,807 9,366 4,868
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NET EARNINGS $ 5,133 $ 14,238 $ 36,147 $ 23,742
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NET EARNINGS PER SHARE
Basic $ 0.05 $ 0.23 $ 0.36 $ 0.36
Diluted $ 0.05 $ 0.23 $ 0.35 $ 0.36
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DUNDEE WEALTH MANAGEMENT INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

For the three months and the years ended December 31, 2004 and 2003
(expressed in thousands of dollars)
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Three Months Year

2004 2003 2004 2003
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CASH FLOWS FROM OPERATING
ACTIVITIES:
Net earnings for the period $ 5,133 $ 14,238 $ 36,147 $ 23,742
Non cash items in net earnings:
Depreciation and
amortization 12,014 11,938 45,698 47,461
Net investment (gains)
losses 60 (165) (392) (165)
Future income taxes 1,800 (2,522) 22,654 (1,000)
Non controlling interest 1,125 2,807 9,366 4,868
Other 2,096 1,108 6,682 1,800
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22,228 27,404 120,155 76,706

Changes in:
Accounts receivable (14,482) (31,783) 13,979 (39,124)
Securities owned, net of
securities sold short 9,700 (8,056) 11,285 (10,698)
Client accounts receivable,
net of deposits and related
liabilities (4,430) (22,112) 9,248 (48,201)
Income taxes payable 4,390 11,210 (3,278) 12,939
Bank indebtedness (12,239) 16,864 (20,820) 13,807
Accounts payable and
accrued liabilities 12,141 20,108 (11,827) 27,884
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CASH PROVIDED FROM
OPERATING ACTIVITIES 17,308 13,635 118,742 33,313
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CASH FLOWS FROM INVESTING
ACTIVITIES:
Sales commissions incurred
on distribution of mutual
funds (17,322) (11,635) (60,466) (37,654)
Acquisitions of corporate
investments (1,455) (2,897) (9,293) (3,784)
Proceeds on dispositions of
corporate investments (30) 360 2,375 731
Payment on acquisition of
non controlling interest - - (1,000) (2,000)
Cash disbursed in business
combinations (57) (158,310) (234) (158,310)
Additions to capital and
other assets (1,458) (339) (5,655) (2,806)
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CASH USED IN INVESTING
ACTIVITIES (20,322) (172,821) (74,273) (203,823)
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CASH FLOWS FROM FINANCING
ACTIVITIES:
(Decrease) increase in
amounts due to parent (202) 6,661 (29,802) 23,143
(Decrease) increase in
corporate debt 3,470 3,566 (16,069) (22,291)
Issuance of common shares,
net of issue costs 1,849 187,634 26,366 189,509
Acquisition of common
shares for cancellation - (4) (7,859) (4)
Issuance of shares by
subsidiary 552 1 25,552 673
Dividends paid on common
and special shares (1,367) (856) (5,465) (3,402)
Dividends paid on
preference shares (818) (818) (3,272) (3,272)
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CASH (USED IN) PROVIDED
FROM FINANCING ACTIVITIES 3,484 196,184 (10,549) 184,356
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NET INCREASE IN CASH DURING
THE PERIOD 470 36,998 33,920 13,846
Cash and cash equivalents,
beginning of period 150,367 79,919 116,917 103,071
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CASH AND CASH EQUIVALENTS,
END OF PERIOD $150,837 $116,917 $ 150,837 $ 116,917
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Cash flows from operating
activities include the
following:
Interest paid $ 486 $ 2,084 $ 2,008 $ 4,990
Taxes paid $ 1,002 $ 3,622 $ 17,235 $ 7,772
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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Dundee Wealth Management Inc.
    Ned Goodman
    Chief Executive Officer
    (416) 365-5665
    or
    Dundee Wealth Management Inc.
    Joanne Ferstman
    Chief Financial Officer
    (416) 365-5010