DundeeWealth(R) Reports Second Quarter 2010 Results

TORONTO, Aug. 4 /CNW/ - DundeeWealth Inc. ("DundeeWealth" or the "Company") (TSX: DW) today released interim unaudited financial results for the three and six months ended June 30, 2010. In the first half of 2010, the Company earned $149.0 million before interest, taxes, depreciation and amortization ("EBITDA") and net earnings of $60.5 million. This compares with EBITDA of $63.7 million and net earnings of $27.5 million for the same period of 2009.

EBITDA for the three months ended June 30, 2010 was $74.5 million, compared to EBITDA of $40.7 million earned in the same period of 2009.

Included in EBITDA and net earnings for the three and six months ended June 30, 2010 are gains of $14.7 million ($10.1 million, net of tax) and $33.3 million ($23.0 million, net of tax), respectively, recorded on the disposition of a significant portion of our portfolio of collateralized loan obligations ("CLOs") for cash proceeds of $38.8 million.

    
    Highlights
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          As at:                          June 30, 2010    December 31, 2009
    (in billions of $)
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    AUM (Assets Under Management)              38.0               36.1
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    AUA (Assets Under Administration)          24.8               25.5
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    Bank Deposits                               7.2                7.2
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    Total                                      70.0               68.8
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    For the three and six                 June 30, 2010        June 30, 2009
        months ended:
    (in millions of $)                  3 mths    6 mths    3 mths    6 mths
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    Revenues                             231.1     465.8     187.6     340.3
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    EBITDA                                74.5     149.0      40.7      63.7
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The combination of historically high management fee revenues and effectively managed expenses across the Company was largely responsible for the 82% increase in EBITDA for the first six months of 2010 compared with the same period of 2009, excluding gains realized on the sale of CLOs.

"Margin improvement has been an obvious priority for us over the last 18 months," said David Goodman, President and Chief Executive Officer of DundeeWealth Inc. "Last year, we delivered on our commitment to bring costs down substantially; this year, we are proving we have the capacity to keep them at a reasonable level while at the same time supporting the strong revenue generating activities that remain critical to growing our business."

Management fee revenue in DundeeWealth Investment was $263.5 million in the first half of 2010, an increase of 45% from the same period last year and the highest ever generated for the division over a six month period, excluding performance fee revenues. The increase is the result of higher average assets under management ("AUM") and reflects the continuing trend of increasing management fee revenues.

In May 2010, Dynamic Funds(R) ("Dynamic") became the 8th largest fund company in Canada, moving up steadily from 10th position just 12 months earlier. At the same time, the Company's mutual fund market share continued its ascent in the second quarter, reaching 4.11% at June 30, 2010 compared with 3.76% at December 31, 2009. Dynamic is the fastest growing Company among the 10 largest asset managers in Canada, a pace it has maintained for the last four quarters. It also continues to lead the industry in total net sales, according to the Investment Funds Institute of Canada, with $2.3 billion gathered in the first six months of 2010.

"Over the last 5 years, we have demonstrated an ability to continuously maintain a high level of net sales," added Mr. Goodman. "Our asset gathering capabilities are particularly important in volatile markets as they help offset the impact of market depreciation."

Revenues in Dundee Capital Markets for the first two quarters of 2010 were $53.9 million, up from $44.9 million for the first half of 2009, as gains in investment banking partially offset proprietary trading losses resulting from the decline in stock prices in the second quarter of this year. DundeeWealth's retail financial advisory services revenue in the first six months of 2010 increased to $124.7 million from $117.1 million for the same period last year, mainly due to an increase in assets under administration.

Consolidated revenues for the first two quarters of 2010 were $432.5 million, excluding the $33.3 million gain on the CLO sale, up 27% compared with the first six months of 2009. At the same time, consolidated selling, general and administrative expenses in the first six months of 2010 were $144.3 million, up just 8% compared with the same period of 2009 as a direct result of the increase in revenue generating activities.

For detailed interim unaudited consolidated financial statements, along with Management's Discussion and Analysis as at and for the three and six months ended June 30, 2010, please refer to DundeeWealth's website www.dundeewealth.com or www.sedar.com.

Conference Call & Webcast

President and Chief Executive Officer David Goodman will host a webcast and conference call with analysts today at 10:00 a.m. ET to discuss the results. Joining Mr. Goodman on the call will be John Pereira, Chief Financial Officer, and other senior executives.

Investors may register for the webcast presentation at www.dundeewealth.com. Alternatively, they may listen to the discussion by dialing 416-340-8018 or 1-866-223-7781. The webcast will be archived on DundeeWealth's website (www.dundeewealth.com).

About DundeeWealth Inc.

DundeeWealth is a Canadian owned, independent wealth management company that currently oversees $72.2 billion in fee earning assets. It provides diversified wealth management and investment solutions including alternative and tax-advantaged products, capital markets and advisory services to financial advisors, institutions, corporations and foundations, and innovative wealth management through independent financial advisors across Canada. Its award winning investment brand, Dynamic Funds, managed by Goodman & Company, Investment Counsel Ltd., is also available outside of Canada through distribution platforms in Europe and the United States. DundeeWealth is listed on the Toronto Stock Exchange (TSX: DW).

For further information: John Pereira, Chief Financial Officer, DundeeWealth Inc., [phone]; Myra Reisler, Manager, Public Affairs, DundeeWealth Inc., [phone]