TORONTO, ONTARIO -- 11/09/09 --
Mavrix Fund Management Inc. ("Mavrix" or the "Company"), a leading niche asset manager, today announced its financial results for the three-month period ended September 30, 2009. All results are reported in Canadian dollars unless otherwise stated.
Q3 Financial & Operational Summary
-- Assets under management ("AUM") improved to $349.9 million from $313.8
million at June 30, 2009.
-- Continued strong performance of the Mavrix Explorer Fund, a natural
resource fund.
-- Completed final closing of the initial public offering for Mavrix
Explore 2009-I Limited Partnership, raising $6.55 million in proceeds.
-- Filed the final prospectus of the Mavrix Quebec 2009 Flow Through LP.
The Partnership will primarily invest in flow-through shares of resource
issuers engaged in mineral or oil and gas exploration primarily in the
Province of Quebec. The maximum size of the offering is $20 million.
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($ millions - except per share amounts) Q3 2009 Q3 2008
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Assets under management ("AUM") $349.9 $395.8
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Revenues $1.5 $2.9
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Expenses $1.8 $2.5
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Net loss $(1.0) $(0.4)
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Loss per share $(0.11) $(0.05)
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EBITDA(i) $(0.2) $0.4
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EBITDA per share $(0.03) $0.04
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Shares issued and outstanding 8,775,458 8,648,364
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Financial Review
Total AUM at September 30, 2009 was $349.9 million, compared with $313.8 million at June 30, 2009 and $395.8 million at September 30, 2008. The increase was due primarily to improving capital markets. At quarter end, the Company's AUM consisted of $314.2 million of Mutual Funds and $35.7 million of Specialty Funds, compared with $333.1 million and $62.7 million, respectively, at September 30, 2008.
Mavrix Mutual Funds had net redemptions of $3.0 million on gross sales of $15.9 million for the third quarter of 2009. This compares with $11.2 million in net redemptions on $11.8 million of gross sales for the same period in 2008.
For the three months ended September 30, 2009, revenue totaled $1.5 million, compared with $2.9 million for the same period in 2008. The decrease was primarily the result of the previously noted decline in AUM. Total expenses for the third quarter were $1.8 million, a 29% decrease from the prior year. The decline mainly reflects reduced selling, general, administration and other expenses for the quarter, as management has continued to focus on controlling costs.
EBITDA declined to $(236,540) for the three months ended September 30, 2009, compared with $371,568 in the third quarter of 2008. Mavrix reported a net loss for the three months ended September 30, 2009 of $1.0 million, or $(0.11) per share, compared to a net loss for the three months ended September 30, 2008 of $(0.4) million, or $(0.05) per share.
The Company's complete financial statements and MD&A will be available at www.mavrixfunds.com and www.sedar.com.
(i)References to EBITDA are to earnings before interest, income taxes, depreciation and amortization. EBITDA is not a standardized earnings measure under GAAP. Management believes that in addition to net earnings, EBITDA is a useful supplemental measure as it provides investors with an indication of cash available for distribution, income taxes, working capital needs and capital expenditures. Investors should be cautioned, however, that EBITDA should not be construed as an alternative measure of liquidity and cash flows. The Company's method of calculating EBITDA may differ from other issuers and, accordingly, EBITDA may not be comparable to similarly titled measures used by other issuers.
About Mavrix Fund Management Inc.
Mavrix Fund Management Inc. is an asset management company with a focused lineup of concentrated, actively managed funds that aim to complement mainstream funds. Mavrix supports its products by providing financial advisors with regular and direct access to portfolio managers and unbiased commentary, which has enabled the company to become a trusted advisor to advisors and its clients. Mavrix is headquartered in Toronto with offices in Halifax, Montreal, and Winnipeg. Additional information about Mavrix can be found at www.mavrixfunds.com.
Forward-Looking Statements
This press release contains statements about expected future events and financial and operating results that are forward-looking and subject to uncertainties. Actual results, performance or achievement could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Except as required under securities regulations, Mavrix Fund Management Inc. disclaims any intention or obligation to update or revise any existing or forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts:
Mavrix Fund Management Inc.
Raymond M. Steele
Chief Financial Officer
416.365.4071
rsteele@mavrixfunds.com
