Loring Ward International Ltd.
TSX : LW

Loring Ward International Ltd.

February 28, 2007 22:17 ET

Loring Ward Reports Fourth Quarter and Year-End Results

WINNIPEG, MANITOBA--(CCNMatthews - Feb. 28, 2007) -

Loring Ward's Investor conference call will be Webcast on www.ccnmatthews.com/r/LoringWardQ406 Friday March 2, 2007 at 11:00 a.m. (ET). Please join us and log on five minutes before the call.

Loring Ward International Ltd. (TSX:LW) today released its financial results for the fourth quarter and year ended December 31, 2006.

Annual Financial Highlights

Net income for the year ended December 31, 2006 was $1.6 million or $0.19 per share, a 151.8% increase over the prior year. Net income from Continuing Operations was $1.7 million, a $4.4 million improvement over the prior year's net loss of $2.7 million. Net loss from Discontinued Operations was $0.1 million, a decline of $3.4 million from the prior year. Included in that net loss is a net after tax loss from the sale of the Business Management practices of $1.2 million.

The Company's results from Continuing Operations were driven primarily by continued growth in the Asset Management & Advisor Services segment, evidenced by a 34.2% increase in assets under management combined with reduced corporate costs and expense controls resulting in operating margin of 24.4% vs. 18.5% in the prior year.

Other highlights for the year include (U.S. Dollars):

- assets under management reached $4.7 billion, an increase of $1.2 billion or 34.2% from the prior year;

- revenue of $44.9 million, an increase of $1.6 million or 3.7% from the prior year as the increase in the Asset Management & Advisor Services (AMAS) segment of $6.4 million (18.6%) was partially offset by the expected decline in the Sports Representation segment of $4.9 million (55.6%);

- corporate costs were $8.7 million, a reduction of $3.9 million or 30.6% versus 2005; and

- operating income was $12.1 million, an increase of $0.7 million or 6.2% from the prior year as growth in AMAS of $3.6 million (56.4%) was partially offset by expected declines in Sports of $2.9 million (58.0%).

Fourth Quarter Financial Highlights

Net loss for the quarter ended December 31, 2006 was $0.4 million or $0.05 per share, a $0.3 million increase over the prior year loss of $0.7 million. Net income from Continuing Operations was $0.8 million, a $1.8 million improvement over the prior year net loss of $1.0 million, while net loss from Discontinued Operations was $1.2 million, a $1.6 million decline from the prior year. The net loss on sale of these businesses was $1.0 million in the fourth quarter.

Other highlights for the fourth quarter include (all figures referenced are in U.S. Dollars):

- assets under management totaled $4.7 billion, up $0.4 billion or 9.0% from September 30, 2006;

- revenue was $11.8 million, an increase of $0.1 million or 1.3% from the prior year, as the increase in AMAS of $1.1 million (11.6%) was partially offset by the expected decline in Sports of $1.0 million (46.2%);

- corporate costs were $1.7 million, a reduction of $2.2 million or 56.7% versus the same 2005 period; and

- operating income was $3.4 million; essentially flat to the prior year as growth in AMAS of $0.7 million (30.5%) was offset by the expected decline in Sports of $0.6 million (53.0%).

Fourth Quarter Operational Highlights

The primary operational highlights for the fourth quarter included:

- net new investment assets in Loring Ward Advisor Services of $195 million, bringing the year-to-date total net new assets to $699 million - the best one-year performance in the Company's history;

- acceptance of 48 more advisors, bringing the 2006 number of new advisors to 120. The total number of advisors at year-end 2006 was 630, an increase of 10.5% and the highest total in the Company's history;

- successful launch of dramatically improved quarterly portfolio reports for Loring Ward Advisor Services clients;

- closing the sale of the California Business Management practices; and

- securing conditional approval to list the Company's shares on the Toronto Stock Exchange and subsequently on February 5, 2007 the Company's shares were effective for trading.

"With the Company now streamlined and focused, we are dedicating ourselves to best serving our advisor and investor clients, expanding our marketing efforts, and pursuing additional opportunities to lower operating and corporate costs," stated Robert Herrmann, Chief Executive Officer of Loring Ward International Ltd.

About Loring Ward

Loring Ward International Ltd. provides in its core business a turnkey asset management program to some of America's most knowledgeable and successful investment advisors and their clients. These services include investment strategies and products, back office operational processing, education and training, and business development support. The Company's U.S. corporate offices are headquartered in New York. For more information, please visit www.loringward.com.

The Company, in the ordinary course of its business, may explore potential proposals or be the recipient of proposals with respect to strategic opportunities and transactions, which may include strategic joint venture relationships, significant debt or equity investments in or by the Company, the acquisition or disposition of material assets or business lines, mergers, new products or services, new distribution methods and other similar strategic opportunities or transactions. The Company's policy is generally not to publicly disclose the pursuit of a potential strategic opportunity or transaction unless and until a definitive binding agreement is reached. The public announcement of such matters could potentially materially affect the price or value of the Company's securities. As a result, there can be no assurance that investors who buy or sell the Company's securities are doing so at a time when the Company is not pursuing a particular strategic opportunity or transaction that, if publicly disclosed, could materially affect the price or value of the Company's securities.

Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Forward-looking statements may include those relating to the Company's objectives and strategies, as well as statements of our beliefs, plans, expectations and intentions. Implicit in this information are assumptions regarding future revenue and expenses, economic conditions, and the results of a pending lawsuit involving the Company, as well as our business strategy, expectations, intentions, and other matters. These assumptions may prove to be incorrect, and actual outcomes and results, including the future operating results and economic performance of the Company, may differ materially because of many factors, including those discussed in this press release and in our other public filings. For more information on these risks and uncertainties you should refer to our detailed Financial Statements and Management's Discussion and Analysis, as well as a broader description of certain challenges and risks facing the Company, all of which is available at www.sedar.com. Forward-looking information contained in this news release is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The Company disclaims any intention or obligation to update the information in this press release or revise any other forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.

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