Dundee Corporation Reports Third Quarter 2009 Results
November 10 2009 - 7:48PM
Marketwired
Dundee Corporation (TSX: DC.A)(TSX: DC.PR.A)(TSX: DC.PR.B)
("Dundee" or the "Company") is pleased to announce that it has
posted its financial results and Management's Discussion and
Analysis for the quarter ended September 30, 2009 on its website
www.dundeecorporation.com and the System for Electronic Document
Analysis and Retrieval ("SEDAR").
Our operating EBITDA for the nine months ended September 30,
2009 as compared to the same period in 2008 amounts to $151.4
million for 2009 and $177.5 million in 2008. Net earnings per share
in 2009 were $0.68 on a fully diluted basis, as compared to a net
loss of $0.15 per share in 2008. With the successful issuance of
$130 million of 6.75% rate reset preferred shares in September of
this year, we have fully repaid amounts owing pursuant to our
revolving term credit facility. We have also renewed our revolving
term credit facility, extending the maturity date to November 9,
2010 and increasing the amount available to $200 million.
The results from our real estate subsidiary, Dundee Realty
Corporation have been outstandingly ahead of budgets developed last
year. Margins from the sale of land, housing and condominiums were
$24 million in the third quarter alone, surpassing the combined
real estate margins earned in the first two quarters of this year.
Propelled by strong buyer demand, housing and condominium
activities outperformed levels originally anticipated and land
sales in western Canada continue to show substantial growth. Dundee
Realty is prudently managing its capital, paying down its operating
line debt from its peak of $103.9 million to $54.4 million, along
with a further $78.8 million reduction in other debt at September
30, 2009.
Our wealth management subsidiary, DundeeWealth Inc., ended the
quarter with $33.6 billion in assets under management. According to
data provided by the Investment Funds Institute of Canada, Dynamic
Funds continued to lead its industry peers in asset gathering
activities in the third quarter of 2009, contributing to an
increase in DundeeWealth's mutual fund market share to 3.56% at
September 30, 2009 from 3.03% at the end of 2008. In the nine
months ended September 30, 2009, DundeeWealth earned EBITDA of
$106.6 million and net earnings of $40.4 million. DundeeWealth's
results include a pre-tax fair value increase related to its
investments in ABCP of $48.9 million, offset by a pre-tax fair
value decrease of $9.5 million related to its portfolio of CLOs.
Although revenues are not yet back to levels reached prior to the
financial crisis, DundeeWealth has reported an upward trend quarter
over quarter this year, while at the same time enjoying the cost
containment initiatives put in place, decreasing SG&A costs by
14% compared to the same period last year. Having paid off all bank
debt subsequent to completion of its $200 million debt financing,
DundeeWealth is in an excellent position to pursue organic growth
and consider acquisition opportunities that fit its core business
model.
At September 30, 2009, Ravensden Asset Management Inc.
("Ravensden"), our recently established asset management
subsidiary, provided sub-advisory and investment services to
approximately $3.2 billion of AUM. Ravensden is also working
towards our initiative to raise up to $1 billion for private equity
investment in the resource sector through Dundee Global Resource
L.P. We have initiated steps in our resource segment to eliminate
any potential future conflicts as we prepare for the launch of, and
our role as advisors to, the Dundee Global Resource L.P., to which
we have committed to provide a $200 million drawdown
subscription.
Dundee Real Estate Asset Management ("DREAM"), the asset
management division of our real estate subsidiary, managed assets
of $3.1 billion at September 30, 2009. DREAM is aggressively
pursuing opportunities offered by foreign investors for Canadian
assets and is also designing products supporting infrastructure
development, potentially through asset management arrangements.
Dundee Corporation is an asset management company dedicated to
private wealth management, real estate and resources that,
combined, reflect approximately $68 billion under management and
administration. Its domestic wealth management activities are
carried out through its 62% controlled subsidiary, DundeeWealth
Inc. Dundee Corporation's real estate activities are conducted
through its 74% owned subsidiary, Dundee Realty Corporation, which
operates as an asset manager of commercial real estate with
activities in a land and housing business in Canada and the United
States. Resource activities are carried out through its
wholly-owned subsidiary, Dundee Resources Limited. Asset management
activities are carried out through Ravensden Asset Management Inc.
and Dundee Real Estate Asset Management ("DREAM").
Contacts: Dundee Corporation Ned Goodman President and Chief
Executive Officer (416) 365-5665 Dundee Corporation Lucie Presot
Vice President and Chief Financial Officer (416) 365-5157
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