BUSINESS

AGF Management Q3 earnings per share fall short of analyst estimates

09/25/2013 09:03 EDT | Updated 11/25/2013 05:12 EST
TORONTO - AGF Management Ltd. (TSX:AGF.B) earned 11 cents per share from continuing operations in its third quarter, or $10.1 million — an improvement from last year by some measures but short of expectations.

The Toronto-based wealth management's profit was two cents per share below analyst estimates and was flat compared with adjusted diluted earnings of 11 cents per share a year earlier, after excluding one-time charges.

Including one-time charges, AGF's continuing operations had a net loss of 20 cents per share or $13.3 million in the third quarter of 2012. Discontinued operations contributed six cents, for a total net loss of 14 cents per share.

Analysts had been looking for AGF to produce 13 cents per share of adjusted earnings and 14 cents per share on a fully reported basis in this year's third quarter, according to estimates compiled by Thomson Reuters.

AGF's revenue was also below expectations, coming in at $117.8 million — short of the estimated $118.3 million and down from $119.8 million for the year-earlier quarter, ended Aug. 31, 2012.

AGF's assets under management as of Aug. 31 totalled $36.4 billion, down from $41.2 billion a year earlier.

Chairman and CEO Barry Goldring, who controls AGF through a private company, said in a letter to shareholders that AGF's $360 million in cash provides a solid base.

"We continue to deliver value directly to our shareholders through dividend payments and share buybacks," Goldring said.

Under its current share buyback program, AGF has repurchased about 873,400 class B shares for a total of $9.8 million, at an average price of $11.26. The class B shares, which are publicly traded, closed Wednesday at $12.38.

The amount spent on dividends and dividend reinvestments fell to $23.5 million in the third quarter, down from $25.8 million a year earlier. The annual dividend rate for 2013 remains $1.08 per share, as it was in 2012.