Seamark Asset Management Ltd. announced second quarter earnings per share of $0.09 per share, compared to $0.21 in the same period a year ago on Wednesday. The reduction in earnings reflects declining revenues from reduced assets under management. Assets under management at the end of the second quarter were $5.3 billion, compared to $10.3 billion a year ago.

Year-to-date, earnings are $0.38 in compared to $0.49 in 2005. Comparisons to last year’s periods are impacted by one-time costs incurred during the second quarter 2005 that reduced earnings by $0.06 per share for both the quarter and year-to-date periods for 2005.

The decline in earnings during 2006 is primarily the result of reduced revenues from Seamark’s lower AUM compared to year ago periods. Revenue for the quarter was $4 million, down from $6.7 million for the second quarter 2005. Year-to-date, revenue is $12.3 million, down from $13.7 million for the first six months of 2005.

Earnings before income taxes represented 40% of revenue for the quarter and 56% year-to-date in 2006, compared with 2005’s margins of 54% and 63% respectively. After including the impact of income taxes, net earnings as a percentage of revenues were 24% for the second quarter and 34% year-to-date 2006, compared to 33% for both the quarter and 39% year-to-date for the same period in 2005. The decline in margins reflects reduced operational efficiency as Seamark’s smaller assets under management base generates reduced revenues from the existing cost structure.

AUM were $5.3 billion as of June 30, down from $5.9 at the beginning of the quarter and $10.3 a year ago. The decline in AUM during the quarter is the result of net asset withdrawals combined with market value depreciation. The decline year-to-date includes the termination of the ClaringtonFunds Inc. relationship, which resulted in approximately $3 billion in net asset withdrawals from mutual funds.

Subsequent to the end of the second quarter, management has implemented a series of organizational changes to strengthen the firm and revitalize its focus on investment performance and client relations.

Thomas R. MacLaren was appointed chief investment officer, replacing G. Peter Marshall. Marshall will resume his previous role of non-executive chairman.

Portfolio management and client relation responsibilities across the organization have been reviewed and re-aligned. This has resulted in the elimination of some roles and the creation of others.

Seamark will incur approximately $325,000 in costs during the third quarter related to severances for departing employees. Ongoing cost-savings activities undertaken as part of an operational review, including these organizational changes, are expected to reduce expenses by approximately $750,000 annually.

These changes are intended to improve Seamark’s ability to attract and retain client assets. The appointment of a new CIO creates certainty regarding the long-term occupant of this key management position.

MacLaren joined Seamark in 1989, and his long association with the company ensures continuity in investment approach on behalf of clients. The investment and client relations’ team structure arising as a result of the organizational changes is expected to improve the company’s ability to deliver consistent investment performance and superior client service.

The company also announced that George Loughery, vice president, equities, will be leaving the effective immediately and that William Eeuwes has been appointed to its board of directors.

Eeuwes is a vice president and head of Manulife Capital, the private equity business of Manulife Financial Corp. He has more than 25 years of experience in the financial industry.

Eeuwes is also a director of Canaccord Capital Inc. and a number of private companies.