Seamark Asset Management Ltd. late yesterday announced third quarter earnings of 7¢ per share, compared to 9¢ per share during the second quarter. Costs related to a corporate reorganization undertaken during the third quarter reduced earnings by approximately 2¢ per share.

“Over the past three months we have made progress towards enhancing investment performance and improving the delivery of service to clients,” said Stuart Raftus, President & CEO, in a news release

“Investment performance was strong across all asset classes during the quarter, demonstrating the continued strength of Seamark’s investment process. The reorganization we undertook in August has created investment and client relations teams who are focused on meeting the expectations of our clients. The steps we have taken this quarter will help us deliver results for both clients and shareholders as we move forward.”

Earnings for the quarter were 7¢per share compared to 28¢ for the third quarter 2005. Year-to-date, earnings are 44¢ in 2006 compared to 77¢ in 2005. Severance costs during the quarter reduced earnings by approximately 2¢ per share. Year to date earnings for 2005 and 2006 have also been impacted by costs incurred as a result of a change in CEO, which reduced diluted earnings per share by 6¢ in both 2006 and 2005.

Revenues for the quarter were $4 million, down from $6.8 million for the third quarter 2005. Year-to-date, revenues are $16.4 million, down from $20.5 million for the first nine months of 2005. The decline in revenue quarter and year-to-date is the result of lower assets under management compared to 2005.

Earnings before income taxes represented 32% of revenues for the quarter and 50% year-to-date in 2006, compared with 2005’s margins of 71% and 65% respectively. After including the impact of income taxes, net earnings as a percentage of revenues were 19% for the third quarter and 31% year-to-date 2006, compared to 44% for the quarter and 40% year-to-date for the same period in 2005. The severance costs noted above were a significant contributor to the decline in margins for the quarter, while the year-to-date margins also reflect costs related to the change in CEO and the decline in revenue.

Also yesterday, Seamark announced that the board of directors have selected Stephen Rankin to serve as chairman. Rankin, a member of Seamark’s board since 1985, takes over from Peter Marshall, who is retiring from the board of directors, effective October 23.

“It has been a tremendous pleasure to have worked with Peter for these past 20 years,” said Rankin, Seamark’s longest serving director. “He’s helped build something special here. Seamark’s long-term track record, as well as it’s most recent quarterly investment results, is a testament to the enduring strength of the investment discipline he helped instil in the company.”

Marshall founded Seamark in 1982 with North American Life. After retiring in 2003, Marshall resumed the roles of CEO and chief investment officer in May 2005. In March 2006 Stuart Raftus was appointed president & CEO. In August 2006 Thomas MacLaren, a 17 year veteran of Seamark, was appointed chief investment officer.

“I have had a long and rewarding career, during which my greatest pleasure and pride was in creating and helping establish Seamark as an important investment management firm, first in the Atlantic region and then across Canada,” said Marshall. “I have confidence the people at Seamark will continue to grow the firm to even greater success. After 43 years in the industry, it’s now time for me to enjoy some of the golden years of retirement.”

Rankin was formerly the chairman and CEO of the Cape Breton Development Corp., chairman of Seagull Pewter & Silversmiths Ltd. and vp of Stora Forest Industries of Nova Scotia and Sweden. In addition to his role at Seamark, Rankin serves as a director for Titanium Corporation Inc.