Seamark Asset Management Ltd. today announced first quarter earnings of $0.29 per share, compared to $0.28 in the same period a year ago. Included in these results are two non-recurring items:
– $2.9 million in revenue received from ClaringtonFunds Inc., following the termination of their investment management agreement with Seamark. This payment and the $0.8 million in revenue for the management of assets on behalf of Clarington prior to Feb. 20 contributed $0.20 to earnings per share.
– $1 million in expenses associated with the recruitment of the new president and CEO, which decreased earnings per share by approximately $0.06.
Assets under management, however, declined significantly in the quarter following the termination of the Clarington relationship.
Seamark ended the quarter with $5.9 billion in AUM, down from $9.3 billion at the beginning of the quarter and $10.5 billion a year ago. Asset outflows were partially offset by strong investment performance. Market value appreciation increased AUM by $500 million during the quarter (this figure was previously estimated and reported as $526 million on April 10).
The company’s board of directors also announced today that the next regular quarterly dividend would be $0.07 per share, payable on May 31 to shareholders of record on May 15. This quarterly dividend rate reflects the company’s reduced underlying operational earnings and is a lower payout ratio than has historically been paid. This will ensure that Seamark has the flexibility to support future growth.
As well, Seamark hosted its annual meeting of shareholders today. The company will also host an analyst conference call on Tues., May 2, starting at 9:30 a.m. Atlantic time (8:30 a.m. EST).
Seamark Q1 earnings increase slightly
But AUM declined significantly following Clarington’s investment-management termination
- By: IE Staff
- May 1, 2006 May 1, 2006
- 12:51