2007'02.14.Wed
W.P. Stewart & Co., Ltd. Reports Net Income For Fourth Quarter and Full Year 2006 of $11.6 Million and $37.5 Million
February 13, 2007
Diluted earnings per share of $0.25 and $0.82 for the
fourth quarter and full year, respectively
HAMILTON, Bermuda, Feb. 13 /Xinhua-PRNewswire/ -- W.P.
Stewart & Co., Ltd. today reported net income of $11.6
million, or $0.25 per share (diluted) and $0.25 per share
(basic), for the fourth quarter ended 31 December 2006.
This compares with net income in the fourth quarter of the
prior year of $2.8 million, or $0.06 per share (diluted)
and $0.06 per share (basic). Fourth quarter 2005 earnings
included a non-recurring, non-cash charge of approximately
$12.5 million ($0.27 per share, diluted) reflecting an
impairment of customer-related intangible assets. Excluding
this charge, fourth quarter 2005 net income was $15.2
million or $0.33 per share (diluted) and $0.33 per share
(basic). For the full year ended 31 December 2006, net
income was $37.5 million or $0.82 per share (diluted) and
$0.82 per share (basic), compared to net income of $40.1
million or $0.87 per share (diluted) and $0.88 per share
(basic) in 2005.
Fourth Quarter 2006 Highlights
Cash earnings for the quarter ended 31 December 2006
were $14.5 million, or $0.32 per share, diluted, (net
income of $11.6 million adjusted to include $2.9 million
representing non-cash income consisting of unrealized gains
and expenses consisting of non-cash compensation,
depreciation, amortization and other non-cash charges on a
tax-effected basis). In the same quarter of the prior year,
cash earnings were $18.0 million, or $0.39 per share,
diluted, (net income of $2.8 million adjusted for the
inclusion of $15.2 million representing expenses of
non-cash compensation, depreciation, amortization and other
non-cash charges, including certain non-recurring, non-cash
charges, on a tax-effected basis).
Results for the fourth quarter include performance fees
of approximately $10.1 million ($6.7 million in 2005) of
which approximately $9.7 million related to the
performance, during 2006, of W.P. Stewart Holdings, our
mutual fund listed on Euronext Amsterdam ($5.4 million in
2005). Performance fees on other accounts were
approximately $0.4 million for 2006 ($1.3 million in
2005).
Assets under management at 31 December 2006 were
approximately $8.1 billion, compared to approximately $8.3
billion at the end of the prior quarter and approximately
$9.5 billion at 31 December 2005.
For the fourth quarter of 2006 there were 45,817,333
common shares outstanding on a weighted average diluted
basis compared to 46,117,189 common shares outstanding for
the fourth quarter of 2005 on the same weighted average
diluted basis.
Full Year Results
For the full year ended 31 December 2006, net income
was down 6.4%, compared to the prior year, to $37.5
million, or $0.82 per share (diluted) and $0.82 per share
(basic), on revenues of $142.1 million. Net income for the
full year ended 31 December 2005 was $40.1 million, or
$0.87 per share (diluted) and $0.88 per share (basic), on
revenues of $147.9 million.
Cash earnings for the full year ended 31 December 2006
were $49.7 million, or $1.08 per share, diluted, (net
income of $37.5 million adjusted to include $12.2 million,
representing non-cash income consisting of unrealized gains
and expenses consisting of non-cash compensation,
depreciation, amortization and other non-cash charges on a
tax-effected basis). For the full year ended 31 December
2005, cash earnings were $63.4 million, or $1.38 per share,
diluted, (net income of $40.1 million adjusted for the
inclusion of $23.3 million, representing expenses of
non-cash compensation, depreciation, amortization and other
non-cash charges, including certain non-recurring, non-cash
charges, on a tax-effected basis).
For the full year ended 31 December 2006, there were
45,866,464 common shares outstanding on a weighted average
diluted basis compared to 45,951,546 common shares
outstanding for the same period in 2005 on the same
weighted average diluted basis.
Performance
Performance in the W.P. Stewart & Co., Ltd. U.S.
Equity Composite (the "Composite") for the fourth
quarter of 2006 was 6.9%, pre-fee, and 6.7%, post-fee,
compared to 6.7% for the S&P 500. For the full year
ended 31 December 31, 2006, performance in the Composite
was 9.0%, pre-fee, and 7.9%, post-fee, compared to 15.8%
for the S&P 500. In each of the three, five and
ten-year periods, ended 31 December 31, 2006, performance
of the Composite has exceeded the performance of the
S&P 500 on a pre-fee and a post-fee basis.
Assets Under Management
Assets under management (AUM) at year-end were
approximately $8.1 billion, compared with approximately
$8.3 billion at September 30, 2006, and approximately $9.5
billion reported at 31 December 2005.
Total net flows of AUM for the quarter ended 31
December 2006 were approximately -$667 million, compared
with total net flows of approximately -$232 million in the
comparable quarter of 2005 and -$476 million in the third
quarter of 2006. Total net flows of AUM for the year ended
31 December 2006 and 2005 were approximately -$1,890
million and approximately -$362 million, respectively.
In the fourth quarter of 2006, net cash flows to
existing accounts were approximately -$196 million,
compared with net cash flows of +$17 million in the fourth
quarter of 2005. Net cash flows to existing accounts were
approximately -$576 million and approximately -$48 million
for the full years ended 31 December 2006 and 2005,
respectively.
Net new flows (net contributions to our publicly
available funds and flows from new accounts minus closed
accounts) were approximately -$471 million for the quarter,
compared to approximately -$249 million for the same quarter
of the prior year. Net new flows were approximately -$1,314
million and approximately -$314 million for the full years
ended 31 December 2006 and 2005, respectively.
Look Through Earning Power
W.P. Stewart & Co., Ltd. concentrates its
investments in large, generally less cyclical, growing
businesses. Throughout most of the Company's history, the
growth in earning power behind clients' portfolios has
ranged from approximately 11% to 22%, annually, and
currently our research analysts expect portfolio earnings
growth to be within the historical range over the next few
years.
Revenues and Profitability
Revenues were $39.7 million for the quarter ended 31
December 2006, down 12.6% from $45.5 million, for the same
quarter of 2005. Revenues for the full years ended 31
December 2006 and 2005 were $142.1 million and $147.9
million, respectively.
The average gross management fee, excluding performance
fees, annualized, was 1.07% for the quarter ended 31
December 2006 and 1.11% for the year ended 31 December
2006, compared to 1.15% and 1.17% in each of the comparable
periods of the prior year.
Excluding performance fee-based accounts, the average
gross management fee was 1.21%, annualized, for the quarter
ended 31 December 2006, and 1.24% for the full year 2006,
compared to 1.26% and 1.27% in each of the comparable
periods of the prior year.
Total operating expenses were $26.0 million for the
fourth quarter 2006, compared to $39.8 million in the same
quarter of the prior year, a decrease of 34.8%. Total
operating expenses were $98.6 million and $100.8 million
for the full years ended 31 December 2006 and 2005,
respectively. Total operating expenses in the fourth
quarter and for the full year 2005 include a non-recurring,
non-cash charge of $12.5 million.
During 2005 and 2006, the Company issued restricted
stock to various employees. The non-cash compensation
expense related to these restricted stock grants was
approximately $2.7 million for the fourth quarter of 2006
($1.0 million for the fourth quarter of 2005) and
approximately $7.9 million for the full year ended 31
December 2006 ($3.3 million for the full year 2005). This
non-cash compensation expense is included in "employee
compensation and benefits".
Pre-tax income, at $13.8 million, was 34.6% of gross
revenues for the quarter ended 31 December 2006, compared
to $5.6 million or 12.4% of gross revenues in the
comparable quarter of the prior year. Pre-tax income was
$43.5 million (30.6% of gross revenues) for the full year
ended 31 December 2006, and $47.1 million (31.9% of gross
revenues) for the full year ended 31 December 2005.
The Company's provision for taxes for the quarter ended
31 December 2006 was $2.1 million versus $2.9 million in the
comparable quarter of the prior year, and was $6.0 and $7.0
million for the years ended 31 December 2006 and 2005,
respectively.
The tax rate was approximately 14% and 15% of income
before taxes for the full years ended 31 December 2006 and
2005, respectively.
Other Events
The Company paid a dividend of $0.23 per common share
on 31 January 2007 to shareholders of record as of 17
January 2007.
Conference Call
In conjunction with this fourth quarter 2006 earnings
release, W.P. Stewart & Co., Ltd. will host a
conference call on Tuesday, 13 February 2007. The
conference call will commence promptly at 11:00 a.m. (EST)
and will conclude at 11:45 a.m. (EST). Those who are
interested in participating in the teleconference should
dial 1-800-370-0898 (within the United States) or
+973-409-9260 (outside the United States). The conference
ID is "W.P. Stewart or 8325937".
To listen to the live broadcast of the conference over
the Internet, simply visit our website at
http://www.wpstewart.com and click on the Investor
Relations tab for a link to the webcast.
The teleconference will be available for replay from
Tuesday, 13 February, 2007 at 12:00 noon (EST) through
Wednesday, 14 February, 2007 at 5:00 p.m. (EST). To access
the replay, please dial 1-877-519-4471 (within the United
States) or + 973-341-3080 (outside the United States). The
PIN number for accessing this replay is 8325937.
You will be able to access a replay of the Internet
broadcast through Friday, 16 February, 2007, on the
Company's website at http://www.wpstewart.com . The Company
will respond to questions submitted by e-mail, following the
conference.
W.P. Stewart & Co., Ltd. is an asset management
company that has provided research-intensive equity
management services to clients throughout the world since
1975. The Company is headquartered in Hamilton, Bermuda,
and has additional operations or affiliates in the United
States, Europe and Asia.
The Company's shares are listed for trading on the New
York Stock Exchange (NYSE: WPL) and on the Bermuda Stock
Exchange (BSX: WPS).
For more information, please visit the Company's
website at www.wpstewart.com, or call W.P. Stewart Investor
Relations (Fred M. Ryan) at 1-888-695-4092 (toll-free within
the United States) or + 441-295-8585 (outside the United
States) or e-mail IRINFO@wpstewart.com.
Statements made in this release concerning our
assumptions, expectations, beliefs, intentions, plans or
strategies are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of
1995. Such statements involve risks and uncertainties that
may cause actual results to differ from those expressed or
implied in these statements. Such risks and uncertainties
include, without limitation, the adverse effect from a
decline or volatility in the securities markets, a general
downturn in the economy, the effects of economic, financial
or political events, a loss of client accounts, inability of
the Company to attract or retain qualified personnel, a
challenge to our U.S. tax status, competition from other
companies, changes in government policy or regulation, a
decline in the Company's products' performance, inability
of the Company to implement its operating strategy,
inability of the Company to manage unforeseen costs and
other effects related to legal proceedings or
investigations of governmental and self-regulatory
organizations, industry capacity and trends, changes in
demand for the Company's services, changes in the Company's
business strategy or development plans and contingent
liabilities. The information in this release is as of the
date of this release, and will not be updated as a result
of new information or future events or developments.
W.P. Stewart & Co., Ltd.
Unaudited Condensed Consolidated Statements of
Operations
For the Three Months Ended
% Change From
Dec. 31, Sept. 30, Dec. 31,
Sept. 30, Dec. 31,
2006 2006 2005
2006 2005
Revenue:
Fees $ 31,874,280 $ 22,952,366 $ 34,339,458
38.87% -7.18%
Commissions 5,686,392 3,745,090 10,087,334
51.84% -43.63%
Interest
and other 2,189,262 899,771 1,035,520
143.31% 111.42%
39,749,934 27,597,227 45,462,312
44.04% -12.57%
Expenses:
Employee
compensation
and benefits 12,900,065 11,858,821 12,575,819
8.78% 2.58%
Fees paid out 2,003,373 1,998,151 2,973,947
0.26% -32.64%
Commissions,
clearance
and trading 1,159,174 617,937 2,103,729
87.59% -44.90%
Research and
administration 3,348,373 3,320,368 3,517,898
0.84% -4.82%
Marketing 1,753,368 1,356,107 1,600,230
29.29% 9.57%
Depreciation
and
amortization 1,727,325 1,620,681 2,051,310
6.58% -15.79%
Impairment of
intangible
assets -- -- 12,452,978
-- -100.00%
Other operating 3,093,667 2,797,460 2,545,850
10.59% 21.52%
25,985,345 23,569,525 39,821,761
10.25% -34.75%
Income before
taxes 13,764,589 4,027,702 5,640,551
241.75% 144.03%
Provision for
taxes 2,138,009 490,831 2,868,987
335.59% -25.48%
Net income $ 11,626,580 $ 3,536,871 $ 2,771,564
228.73% 319.50%
Earnings per share:
Basic earnings
per share $ 0.25 $ 0.08 $ 0.06
212.50% 316.67%
Diluted earnings
per share $ 0.25 $ 0.08 $ 0.06
212.50% 316.67%
W.P. Stewart & Co., Ltd.
Unaudited Condensed Consolidated Statements of
Operations
For the Year
Ended December 31,
2006
2005 %
Revenue:
Fees $107,802,462
$113,197,833 -4.77%
Commissions 29,608,834
31,889,805 -7.15%
Interest and other 4,719,382
2,767,217 70.55%
142,130,678
147,854,855 -3.87%
Expenses:
Employee compensation and
benefits 43,725,858
34,152,799 28.03%
Fees paid out 8,126,112
9,058,834 -10.30%
Performance fee charge 2,625,642
-- --
Commissions, clearance and
trading 5,665,123
6,993,204 -18.99%
Research and administration 13,628,542
14,399,422 -5.35%
Marketing 6,309,491
5,540,294 13.88%
Depreciation and amortization 6,572,545
8,206,220 -19.91%
Impairment of intangible assets --
12,452,978 -100.00%
Other operating 11,971,467
9,959,838 20.20%
98,624,780
100,763,589 -2.12%
Income before taxes 43,505,898
47,091,266 -7.61%
Provision for taxes 6,030,455
7,038,582 -14.32%
Net income $37,475,443
$40,052,684 -6.43%
Earnings per share:
Basic earnings per share $0.82
$0.88 -6.82%
Diluted earnings per share $0.82
$0.87 -5.75%
W.P. Stewart & Co., Ltd.
Net Flows of Assets Under Management*
(in millions)
For the Three
For the Year
Months Ended
Ended
Dec. Sept. Dec.
31, 30, 31,
Dec. 31, Dec. 31,
2006 2006 2005
2006 2005
Existing Accounts:
Contributions $183 100 260
780 988
Withdrawals (379) (242) (243)
(1,356) (1,036)
Net Flows of Existing
Accounts (196) (142) 17
(576) (48)
Publicly Available Funds:
Contributions 18 17 85
147 256
Withdrawals (63) (70) (38)
(295) (149)
Direct Accounts Opened 34 27 114
145 312
Direct Accounts Closed (460) (308) (410)
(1,311) (733)
Net New Flows (471) (334) (249)
(1,314) (314)
Net Flows of Assets
Under Management (667) (476) (232)
(1,890) (362)
* The table above sets forth the total net flows of
assets under management for the three months ended December
31, 2006, September 30, 2006 and December 31, 2005,
respectively, and for the years ended December 31, 2006 and
2005, respectively, which include changes in net flows of
existing accounts and net new flows (net contributions to
our publicly available funds and flows from new accounts
minus closed accounts). The table excludes total capital
appreciation or depreciation in assets under management
with the exception of the amount attributable to
withdrawals and closed accounts.
For more information, please contact:
Fred Ryan
W.P. Stewart & Co.
Tel: +1-441-295-8585
SOURCE W.P. Stewart & Co., Ltd.
PR
Post your Comment
広告
ブログ内検索
アーカイブ
カウンター