SCEPTRE INVESTMENT COUNSEL LIMITED
TSX : SZ

SCEPTRE INVESTMENT COUNSEL LIMITED

March 27, 2008 14:20 ET

Sceptre Investment Counsel Reports Q1 Results

Year Over Year Earnings Increase 32%

TORONTO, ONTARIO--(Marketwire - March 27, 2008) - Sceptre Investment Counsel Limited (TSX:SZ), a leading independent Canadian money management firm, today reported its financial results for its first quarter ending February 29, 2008.

First quarter earnings were $1,532,000 or 11 cents per share fully diluted (11 cents per share basic) compared with $1,163,000 or 8 cents per share diluted (8 cents per share basic) for the same period last year representing a 32% gain year over year.

Revenue for the first quarter was $9,321,000 compared with $8,449,000 for the first quarter last year representing a 10% gain year over year. Institutional, mutual fund and private client revenues increased. Investment income was modestly higher at $235,000 as compared to $169,000. Expenses for the quarter increased by 5% from the similar quarter last year. Revenue related expenses increased by 15% to $1,501,000 from $1,306,000 and other expenses increased by 3% from $5,284,000 to $5,426,000. During the quarter expenses included the front-end loading of regulatory and listing fees and one time professional fees related to strategic initiatives. The total of these expenses in the quarter was approximately $400,000.

"Continued market volatility resulting from the ongoing credit related concerns produced negative investment returns across all equity markets. Bond returns rebounded as investors focused on higher quality investments and central banks provided much needed liquidity" stated Richard Knowles, President and Chief Executive Officer.

He added, "Our relative investment performance remains strong and despite the unsettled markets, we are continuing to see numerous opportunities to add assets in both the institutional and private client segments of our business."

The Company, having considered its financial requirements, new business opportunities and market outlook, has declared a quarterly dividend of 12 cents per share on outstanding common shares, payable on April 30, 2008 to shareholders of record April 7, 2008. The previous quarterly dividend was 12 cents per share.

About Sceptre Investment Counsel

Sceptre Investment Counsel Limited is a leading Canadian independent investment management firm with assets under supervision of approximately $8.9 billion. The Company's Pension and Institutional Fund group manages investment portfolios for a wide range of clients, including corporations, governments, hospitals, charitable foundations, endowments, universities and unions. Through its Wealth Management group, Sceptre provides discretionary funds and segregated account management for high net-worth individuals and offers a family of eight mutual funds. Sceptre employs approximately 65 people in its offices in Toronto, Waterloo, Montreal and Vancouver. Sceptre's common shares trade on the Toronto Stock Exchange, under the symbol SZ.



INTERIM CONSOLIDATED BALANCE SHEETS
In thousands of dollars
(Unaudited)

As at
February 29 November 30
2008 2007
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Assets

Current Assets
Cash $ 27 $ 35
Available-for-sale financial assets 17,516 20,697
Accounts receivable 2,634 2,496
Current portion of deferred compensation 1,002 1,337
Current portion of loan to related party 38 38
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21,217 24,603

Furniture, equipment and leaseholds 1,079 1,063
Loan to related party - 19
Value of customer relationships and other
intangibles net of accumulated amortization 4,226 4,331
Goodwill 3,575 3,575
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$ 30,097 $ 33,591
-----------------------------
-----------------------------

Liabilities

Current Liabilities
Accounts payable
and accrued liabilities $ 4,136 $ 4,754
Bonuses due to employees 784 2,500
Income taxes payable 186 1,346
Current portion of future income taxes 334 450
-----------------------------
5,440 9,050

Future income taxes 144 165
-----------------------------
5,584 9,215
-----------------------------

Shareholders' Equity
Capital stock 16,209 15,913
Contributed surplus 1,588 1,518
Retained earnings 6,286 6,437
Accumulated other comprehensive income 430 508
-----------------------------
24,513 24,376
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$ 30,097 $ 33,591
-----------------------------
-----------------------------



INTERIM CONSOLIDATED STATEMENTS OF EARNINGS
In thousands of dollars except per share amounts
(Unaudited)

For the three months ended
February 29 February 28
2008 2007
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Revenue
Investment management fees $ 9,086 $ 8,280
Investment income 235 169
------------------------------
9,321 8,449
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Expenses
Operating expenses 5,265 5,142
Trailer and referral fees 597 449
Sub-advisory fees 904 857
Amortization of furniture, equipment and
leaseholds 56 72
Amortization of intangible assets 105 70
------------------------------
6,927 6,590
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------------------------------
Earnings before income taxes 2,394 1,859
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Provision for income taxes 971 839
Provision for future income taxes (109) (143)
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862 696
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Net earnings for the period $ 1,532 $ 1,163
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------------------------------

Earnings per share
Basic $ 0.11 $ 0.08
Diluted $ 0.11 $ 0.08




Contact Information

  • Sceptre Investment Counsel Limited
    Richard L. Knowles
    President and Chief Executive Officer
    (416) 866-2380