SCEPTRE INVESTMENT COUNSEL LIMITED
TSX : SZ

SCEPTRE INVESTMENT COUNSEL LIMITED

June 19, 2008 13:28 ET

Sceptre Investment Counsel Reports Q2 Results

TORONTO, ONTARIO--(Marketwire - June 19, 2008) - Sceptre Investment Counsel Limited (TSX:SZ), a leading independent Canadian money management firm, today reported its financial results for its second quarter ending May 31, 2008.

Second quarter earnings were $1,700,000 or 12 cents per share fully diluted (12 cents per share basic) compared with $1,564,000 or 11 cents per share diluted (11 cents per share basic) for the same period last year representing a 9% gain year over year.

Total revenue for the second quarter was $9,056,000 compared with $9,398,000 for the second quarter last year. Institutional revenues increased by approximately $296,000, mutual fund revenues were down by $564,000 and private client revenues were down by $100,000. Total expenses for the quarter decreased by 7% from the similar quarter last year. Revenue related expenses decreased by 10% from $1,515,000 to $1,364,000 and other expenses declined by 6% from $5,450,000 to $5,102,000.

"Despite lacklustre equity markets around the globe, Canadian equity markets continue to post positive returns in 2008. Materials and energy stocks provided leadership in a very narrowly focused market" stated Richard Knowles, President and Chief Executive Officer.

He added, "Credit related concerns have continued to weigh heavily on global financial services companies. Central banks have responded with a prudent amount of support in the face of growing uneasiness with food and energy price increases. In spite of the unsettled investment environment we continue to see numerous opportunities to add assets in both the institutional and private client businesses."

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 July 31, 2008 to shareholders of record June 30, 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 $9.5 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
May 31 November 30
2008 2007
------------------------------------------------------------- --------------

Assets

Current Assets
Cash $ 52 $ 35
Available-for-sale financial assets 18,759 20,697
Accounts receivable 2,478 2,496
Current portion of deferred compensation 668 1,337
Current portion of loan to related party 38 38
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21,995 24,603

Furniture, equipment and leaseholds 1,033 1,063
Loan to related party - 19
Value of customer relationships and other
intangibles net of accumulated amortization 4,121 4,331
Goodwill 3,575 3,575
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$ 30,724 $ 33,591
---------- --------------
---------- --------------
Liabilities

Current Liabilities
Accounts payable
and accrued liabilities $ 4,061 $ 4,754
Bonuses due to employees 1,231 2,500
Income taxes payable 40 1,346
Current portion of future income taxes 141 450
---------- --------------
5,473 9,050
Future income taxes 364 165
---------- --------------
5,837 9,215
---------- --------------

Shareholders' Equity
Capital stock 16,342 15,913
Contributed surplus 1,659 1,518
Retained earnings 6,306 6,437
Accumulated other comprehensive income 580 508
---------- --------------
24,887 24,376
---------- --------------
$ 30,724 $ 33,591
---------- --------------
---------- --------------


INTERIM CONSOLIDATED STATEMENTS OF EARNINGS
In thousands of dollars except per share amounts
(Unaudited)
For the three months ended
May 31 May 31
2008 2007
(restated -
note 4)
------------------------------------------------------------- --------------

Revenue
Investment management fees $ 8,895 $ 9,263
Investment income 161 135
------------ --------------
9,056 9,398
------------ --------------
------------ --------------
Expenses
Operating expenses 4,929 5,273
Trailer and referral fees 490 584
Sub-advisory fees 888 931
Amortization of furniture, equipment and
leaseholds 55 72
Amortization of intangible assets 105 105
------------ --------------
6,467 6,965
------------ --------------
------------ --------------
Earnings before income taxes 2,589 2,433
------------ --------------
Provision for income taxes 893 964
Provision for future income taxes (4) (95)
------------ --------------
889 869
------------ --------------
Net earnings for the period $ 1,700 $ 1,564
------------ --------------
------------ --------------
Earnings per share
Basic $ 0.12 $ 0.11
Diluted $ 0.12 $ 0.11


For the six months ended
May 31 May 31
2008 2007
(restated -
note 4)
------------------------------------------------------------- --------------

Revenue
Investment management fees $ 17,981 $ 17,543
Investment income 396 304
------------ --------------
18,377 17,847
------------ --------------

Expenses
Operating expenses 10,194 10,415
Trailer and referral fees 1,087 1,033
Sub-advisory fees 1,792 1,788
Amortization of furniture, equipment and leaseholds 111 144
Amortization of intangible assets 210 175
------------ --------------
13,394 13,555
------------ --------------
Earnings before income taxes 4,983 4,292
------------ --------------
Provision for income taxes 1,864 1,803
Provision for future income taxes (113) (238)
------------ --------------
1,751 1,565
------------ --------------
Net earnings for the period $ 3,232 $ 2,727
------------ --------------
------------ --------------

Earnings per share
Basic $ 0.23 $ 0.20
Diluted $ 0.23 $ 0.19



Contact Information

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