Sprott Announces Year Ended 2024 Results
Sprott Inc. (NYSE/TSX: SII) reported its financial results for the year ended December 31, 2024, showing strong performance despite Q4 challenges. Assets Under Management (AUM) reached $31.5 billion, marking a 10% increase from December 31, 2023, despite a 6% decline from Q3 2024. By February 21, 2025, AUM further increased to $33.5 billion.
Key financial highlights include:
- Management fees rose 20% to $41.4 million in Q4, with full-year fees up 17% to $155.3 million
- Net income increased 21% to $11.7 million ($0.46 per share) in Q4, with full-year earnings up 18% to $49.3 million ($1.94 per share)
- Adjusted base EBITDA grew 19% to $22.4 million in Q4, with full-year figures up 18% to $85.2 million
The company benefited from strong precious metals prices and $698 million in net sales, primarily in physical trusts and uranium and critical materials ETFs. The Board declared a quarterly dividend of $0.30 per share.
Sprott Inc. (NYSE/TSX: SII) ha riportato i suoi risultati finanziari per l'anno conclusosi il 31 dicembre 2024, evidenziando una forte performance nonostante le sfide del quarto trimestre. Le attività in gestione (AUM) hanno raggiunto i 31,5 miliardi di dollari, segnando un aumento del 10% rispetto al 31 dicembre 2023, nonostante un calo del 6% rispetto al terzo trimestre del 2024. Entro il 21 febbraio 2025, l'AUM è ulteriormente aumentato a 33,5 miliardi di dollari.
I principali punti finanziari includono:
- Le commissioni di gestione sono aumentate del 20% a 41,4 milioni di dollari nel quarto trimestre, con commissioni annuali in crescita del 17% a 155,3 milioni di dollari
- Il reddito netto è aumentato del 21% a 11,7 milioni di dollari (0,46 dollari per azione) nel quarto trimestre, con utili annuali in crescita del 18% a 49,3 milioni di dollari (1,94 dollari per azione)
- L'EBITDA base rettificato è cresciuto del 19% a 22,4 milioni di dollari nel quarto trimestre, con cifre annuali in aumento del 18% a 85,2 milioni di dollari
L'azienda ha beneficiato di forti prezzi dei metalli preziosi e di 698 milioni di dollari in vendite nette, principalmente in fondi fiduciari fisici e ETF di uranio e materiali critici. Il Consiglio ha dichiarato un dividendo trimestrale di 0,30 dollari per azione.
Sprott Inc. (NYSE/TSX: SII) informó sus resultados financieros para el año que finalizó el 31 de diciembre de 2024, mostrando un sólido desempeño a pesar de los desafíos del cuarto trimestre. Los activos bajo gestión (AUM) alcanzaron los 31.5 mil millones de dólares, marcando un aumento del 10% en comparación con el 31 de diciembre de 2023, a pesar de una disminución del 6% respecto al tercer trimestre de 2024. Para el 21 de febrero de 2025, el AUM aumentó aún más a 33.5 mil millones de dólares.
Los principales aspectos financieros incluyen:
- Las comisiones de gestión aumentaron un 20% a 41.4 millones de dólares en el cuarto trimestre, con comisiones anuales en aumento del 17% a 155.3 millones de dólares
- El ingreso neto aumentó un 21% a 11.7 millones de dólares (0.46 dólares por acción) en el cuarto trimestre, con ganancias anuales en aumento del 18% a 49.3 millones de dólares (1.94 dólares por acción)
- El EBITDA base ajustado creció un 19% a 22.4 millones de dólares en el cuarto trimestre, con cifras anuales en aumento del 18% a 85.2 millones de dólares
La empresa se benefició de fuertes precios de metales preciosos y 698 millones de dólares en ventas netas, principalmente en fideicomisos físicos y ETF de uranio y materiales críticos. La Junta declaró un dividendo trimestral de 0.30 dólares por acción.
Sprott Inc. (NYSE/TSX: SII)는 2024년 12월 31일로 종료된 회계연도의 재무 결과를 발표하며, 4분기 어려움에도 불구하고 강한 성과를 보였습니다. 운용 자산(AUM)은 315억 달러에 도달하여, 2023년 12월 31일 대비 10% 증가했으며, 2024년 3분기 대비 6% 감소했습니다. 2025년 2월 21일까지 AUM은 335억 달러로 추가 증가했습니다.
주요 재무 하이라이트는 다음과 같습니다:
- 4분기 관리 수수료는 20% 증가하여 4140만 달러에 달했으며, 연간 수수료는 17% 증가하여 1억 5530만 달러에 이르렀습니다.
- 4분기 순이익은 21% 증가하여 1170만 달러(주당 0.46달러)로 증가했으며, 연간 수익은 18% 증가하여 4930만 달러(주당 1.94달러)로 증가했습니다.
- 조정된 기본 EBITDA는 4분기 동안 19% 증가하여 2240만 달러에 달했으며, 연간 수치는 18% 증가하여 8520만 달러에 이르렀습니다.
회사는 강한 귀금속 가격과 함께 6억 9800만 달러의 순 판매에서 이익을 보았으며, 주로 물리적 신탁 및 우라늄 및 중요 자재 ETF에서 발생했습니다. 이사회는 주당 0.30달러의 분기 배당금을 선언했습니다.
Sprott Inc. (NYSE/TSX: SII) a publié ses résultats financiers pour l'année se terminant le 31 décembre 2024, montrant une solide performance malgré les défis du quatrième trimestre. Les actifs sous gestion (AUM) ont atteint 31,5 milliards de dollars, marquant une augmentation de 10% par rapport au 31 décembre 2023, malgré une baisse de 6% par rapport au troisième trimestre de 2024. Au 21 février 2025, l'AUM a encore augmenté pour atteindre 33,5 milliards de dollars.
Les principaux points financiers incluent :
- Les frais de gestion ont augmenté de 20% pour atteindre 41,4 millions de dollars au quatrième trimestre, avec des frais annuels en hausse de 17% à 155,3 millions de dollars
- Le revenu net a augmenté de 21% pour atteindre 11,7 millions de dollars (0,46 dollar par action) au quatrième trimestre, avec des bénéfices annuels en hausse de 18% à 49,3 millions de dollars (1,94 dollar par action)
- Le EBITDA de base ajusté a augmenté de 19% pour atteindre 22,4 millions de dollars au quatrième trimestre, avec des chiffres annuels en hausse de 18% à 85,2 millions de dollars
L'entreprise a bénéficié de prix élevés des métaux précieux et de 698 millions de dollars de ventes nettes, principalement dans des fonds de fiducie physiques et des ETF d'uranium et de matériaux critiques. Le Conseil a déclaré un dividende trimestriel de 0,30 dollar par action.
Sprott Inc. (NYSE/TSX: SII) hat seine finanziellen Ergebnisse für das am 31. Dezember 2024 endende Jahr veröffentlicht und zeigt eine starke Leistung trotz der Herausforderungen im vierten Quartal. Das verwaltete Vermögen (AUM) erreichte 31,5 Milliarden Dollar, was einem Anstieg von 10% im Vergleich zum 31. Dezember 2023 entspricht, trotz eines Rückgangs von 6% im Vergleich zum dritten Quartal 2024. Bis zum 21. Februar 2025 stieg das AUM weiter auf 33,5 Milliarden Dollar.
Wichtige finanzielle Highlights umfassen:
- Die Verwaltungsgebühren stiegen im vierten Quartal um 20% auf 41,4 Millionen Dollar, während die jährlichen Gebühren um 17% auf 155,3 Millionen Dollar zulegten
- Der Nettogewinn stieg im vierten Quartal um 21% auf 11,7 Millionen Dollar (0,46 Dollar pro Aktie), während die Jahresgewinne um 18% auf 49,3 Millionen Dollar (1,94 Dollar pro Aktie) anstiegen
- Das bereinigte Basis-EBITDA wuchs im vierten Quartal um 19% auf 22,4 Millionen Dollar, während die Jahreszahlen um 18% auf 85,2 Millionen Dollar stiegen
Das Unternehmen profitierte von hohen Preisen für Edelmetalle und 698 Millionen Dollar an Nettoumsätzen, hauptsächlich in physischen Trusts und Uran- sowie kritischen Material-ETFs. Der Vorstand erklärte eine vierteljährliche Dividende von 0,30 Dollar pro Aktie.
- 7th consecutive year of double-digit AUM growth
- Q4 net income up 21% YoY to $11.7M
- Full-year management fees increased 17% to $155.3M
- Strong net sales of $698M in physical trusts and ETFs
- AUM grew further to $33.5B post year-end
- Q4 AUM declined 6% QoQ to $31.5B
- Commission revenues down 38% YoY in Q4 to $0.8M
- SG&A expenses increased 25% YoY in Q4
- Termination of certain subadvised fund contracts
Insights
Sprott Inc. (SII) delivered strong financial results for 2024, marking its seventh consecutive year of double-digit AUM growth. Assets Under Management reached
The company's performance was driven by two key factors: market appreciation in precious metals trusts and $698 million in net inflows, primarily in physical trusts and uranium/critical materials ETFs. This strategic positioning aligns perfectly with growing investor demand for hard assets amid ongoing monetary uncertainty and the global push for energy transition materials from secure supply chains.
Financial metrics show impressive momentum:
- Management fees:
$155.3 million (+17% YoY) - Net fees:
$144.6 million (+22% YoY) - Net income:
$49.3 million or$1.94 per share (+18% YoY) - Adjusted base EBITDA:
$85.2 million (+18% YoY)
Operational efficiency improved with the net compensation ratio declining to
The quarterly dividend of
Sprott's 2024 results highlight a highly differentiated business model that's capitalizing on two powerful macroeconomic trends: the growing demand for inflation-resistant hard assets and the critical materials supply chain restructuring driven by energy transition and geopolitical tensions.
The company's 10% AUM growth to
What sets Sprott apart is their specialized focus on physical ownership structures. While most precious metals ETFs are backed by futures contracts or bank promises, Sprott's physical trusts offer direct ownership of the underlying metals—a critical differentiator during periods of financial stress when counterparty risk becomes paramount. This explains why they captured
The
Strategically, Sprott is expanding beyond traditional precious metals into the critical materials supply chain transformation. Their uranium funds have been particularly successful, capturing the growing recognition that nuclear power is essential for decarbonization goals. This diversification reduces their historical dependence on gold and silver price movements while maintaining their core expertise in hard assets.
The increased SG&A spending (
TORONTO, Feb. 26, 2025 (GLOBE NEWSWIRE) -- Sprott Inc. (NYSE/TSX: SII) (“Sprott” or the “Company”) today announced its financial results for the year ended December 31, 2024.
Management commentary
"Sprott’s Assets Under Management (“AUM”) ended the year at
"The recent turmoil in precious metals markets has highlighted the importance of physical ownership, an area where Sprott offers best-in-class solutions to individual and institutional investors. The realignment of global trade and a focus on energy security will create demand for critical materials produced in “friendly” jurisdictions. We continue to develop new exchange-listed and actively-managed critical materials strategies to capitalize on this powerful long-term trend. We have invested in our sales and marketing capabilities to deliver our clients the highest levels of client service, while building on our position as thought leaders in our core themes. Sprott is well positioned to create value for our clients and shareholders in the months and years ahead," continued Mr. George.
Key AUM highlights1
- AUM ended the year at
$31.5 billion as at December 31, 2024, down6% from$33.4 billion as at September 30, 2024 but was up10% from$28.7 billion as at December 31, 2023. Although fourth quarter AUM was negatively impacted by market value depreciation across most of our funds and the termination of certain subadvised fund contracts, 2024 was nevertheless our seventh consecutive year of double-digit AUM growth as we benefited from strong market value appreciation in our precious metals physical trusts and net inflows to our exchange listed products.
Key revenue highlights
- Management fees were
$41.4 million for the quarter, up20% from$34.5 million for the quarter ended December 31, 2023 and$155.3 million on a full-year basis, up17% from$132.3 million for the year ended December 31, 2023. Carried interest and performance fees were$2.5 million for the quarter, up from$0.5 million for the quarter ended December 31, 2023 and$7.3 million on a full-year basis, up from$0.9 million for the year ended December 31, 2023. Net fees were$38.6 million for the quarter, up24% from$31 million for the quarter ended December 31, 2023 and$144.6 million on a full-year basis, up22% from$118.8 million for the year ended December 31, 2023. Our revenue performance in the quarter and on a full-year basis was primarily due to higher average AUM on strong market value appreciation in our precious metals physical trusts and inflows to the majority of our exchange listed products. We also benefited from carried interest and performance fee crystallization in certain funds in our managed equities and private strategies segments. - Commission revenues were
$0.8 million for the quarter, down38% from$1.3 million for the quarter ended December 31, 2023 and$5.7 million on a full-year basis, down31% from$8.3 million for the year ended December 31, 2023. Net commissions were$0.4 million for the quarter, down47% from$0.7 million for the quarter ended December 31, 2023 and$2.7 million on a full-year basis, down43% from$4.6 million for the year ended December 31, 2023. Commission revenue was lower in the quarter due to modest ATM activity in our critical materials physical trusts. On a full-year basis, the decline in commission revenue was due to the sale of our former Canadian broker-dealer in the second quarter of last year. - Finance income was
$1.4 million for the quarter, up4% from the quarter ended December 31, 2023 and$8.9 million on a full-year basis, up37% from$6.5 million for the year ended December 31, 2023. The increase in the quarter was due to higher income generation in co-investment positions we hold in our LPs managed in our private strategies segment. The increase on a full-year basis was due to higher income earned on streaming syndication activity in the second quarter.
Key expense highlights
- Net compensation expense was
$17 million for the quarter, up11% from$15.3 million for the quarter ended December 31, 2023 and$67.3 million on a full-year basis, up10% from$61.2 million for the year ended December 31, 2023. The increase in the quarter and on a full-year basis was primarily due to increased Annual Incentive Program ("AIP") accruals on higher net fee generation. Our net compensation ratio was44% in the quarter (December 31, 2023 -47% ) and45% on a full-year basis (December 31, 2023 -49% ). - SG&A expense was
$4.9 million for the quarter, up25% from$4 million for the quarter ended December 31, 2023 and$18.8 million on a full-year basis, up13% from$16.6 million for the year ended December 31, 2023. The increase in the quarter and on a full-year basis was due to higher professional services, marketing and technology costs.
Earnings summary
- Net income for the quarter was
$11.7 million ($0.46 per share), up21% from$9.7 million ($0.38 per share) for the quarter ended December 31, 2023 and was$49.3 million ($1.94 per share) on a full-year basis, up18% from$41.8 million ($1.66 per share) for the year ended December 31, 2023. Our earnings in the quarter and on a full-year basis benefited from higher average AUM on strong market value appreciation in our precious metals physical trusts and inflows to the majority of our exchange listed products. We also benefited from carried interest and performance fee crystallization in certain funds in our managed equities and private strategies segments. - Adjusted base EBITDA was
$22.4 million ($0.88 per share) for the quarter, up19% from$18.8 million ($0.75 per share) for the quarter ended December 31, 2023 and$85.2 million ($3.35 per share) on a full-year basis, up18% from$71.9 million ($2.85 per share) for the year ended December 31, 2023. Adjusted base EBITDA in the quarter and on a full-year basis benefited from higher average AUM on strong market value appreciation in our precious metals physical trusts and inflows to the majority our exchange listed products
1 See “non-IFRS financial measures” section in this press release and schedule 2 and 3 of "Supplemental financial information"
Subsequent events
- Subsequent to year-end, as at February 21, 2025, AUM was
$33.5 billion , up6% from$31.5 billion at December 31, 2024. - On February 25, 2025, the Sprott Board of Directors announced a quarterly dividend of
$0.30 per share.
Supplemental financial information
Please refer to the December 31, 2024 annual financial statements of the Company and the related management discussion and analysis filed earlier this morning for further details into the Company's financial position as at December 31, 2024 and the Company's financial performance for the three and twelve months ended December 31, 2024.
Schedule 1 - AUM continuity
| 3 months results | |||||||
| (In millions $) | AUM Sep. 30, 2024 | Net inflows (1) | Market value changes | Other net inflows (1) | AUM Dec. 31, 2024 | Net management fee rate (2) | |
| Exchange listed products | |||||||
| - Precious metals physical trusts and ETFs | |||||||
| - Physical Gold Trust | 8,617 | 35 | (44) | — | 8,608 | ||
| - Physical Silver Trust | 5,566 | 83 | (422) | — | 5,227 | ||
| - Physical Gold and Silver Trust | 5,225 | (69) | (143) | — | 5,013 | ||
| - Precious Metals ETFs | 404 | (10) | (40) | — | 354 | ||
| - Physical Platinum & Palladium Trust | 151 | 33 | (16) | — | 168 | ||
| 19,963 | 72 | (665) | — | 19,370 | |||
| - Critical materials physical trusts and ETFs | |||||||
| - Physical Uranium Trust | 5,408 | 45 | (591) | — | 4,862 | ||
| - Critical Materials ETFs | 2,307 | 27 | (314) | — | 2,020 | ||
| - Physical Copper Trust | 103 | (1) | (12) | — | 90 | ||
| 7,818 | 71 | (917) | — | 6,972 | |||
| Total exchange listed products | 27,781 | 143 | (1,582) | — | 26,342 | ||
| Managed equities (3)(4) | 3,276 | (55) | (221) | (127) | 2,873 | ||
| Private strategies (4) | 2,382 | (35) | (27) | — | 2,320 | ||
| Total AUM (5) | 33,439 | 53 | (1,830) | (127) | 31,535 | ||
| 12 months results | |||||||
| (In millions $) | AUM Dec. 31, 2023 | Net inflows (1) | Market value changes | Other net inflows (1) | AUM Dec. 31, 2024 | Net management fee rate (2) | |
| Exchange listed products | |||||||
| - Precious metals physical trusts and ETFs | |||||||
| - Physical Gold Trust | 6,532 | 351 | 1,725 | — | 8,608 | ||
| - Physical Silver Trust | 4,070 | 339 | 818 | — | 5,227 | ||
| - Physical Gold and Silver Trust | 4,230 | (230) | 1,013 | — | 5,013 | ||
| - Precious Metals ETFs | 339 | (24) | 39 | — | 354 | ||
| - Physical Platinum & Palladium Trust | 116 | 75 | (23) | — | 168 | ||
| 15,287 | 511 | 3,572 | — | 19,370 | |||
| - Critical materials physical trusts and ETFs | |||||||
| - Physical Uranium Trust | 5,773 | 311 | (1,222) | — | 4,862 | ||
| - Critical materials ETFs | 2,143 | 321 | (444) | — | 2,020 | ||
| - Physical Copper Trust | — | 1 | (21) | 110 | 90 | ||
| 7,916 | 633 | (1,687) | 110 | 6,972 | |||
| Total exchange listed products | 23,203 | 1,144 | 1,885 | 110 | 26,342 | ||
| Managed equities (3)(4) | 2,874 | (222) | 348 | (127) | 2,873 | ||
| Private strategies (4) | 2,661 | (207) | (134) | — | 2,320 | ||
| Total AUM (5) | 28,738 | 715 | 2,099 | (17) | 31,535 | ||
| (1) See "Net inflows" and "Other net inflows" in the key performance indicators and non-IFRS and other financial measures section of the MD&A. | |||||||
| (2) Net management fee rate represents the weighted average fees for all funds in the category, net of fund expenses. | |||||||
| (3) Managed equities is made up of primarily precious metal strategies ( | |||||||
| (4) Prior period figures have been reclassified to conform with current presentation. | |||||||
| (5) No performance fees are earned on exchange listed products. Certain managed equities products earn either performance fees based on returns above relevant benchmarks or earn carried interest calculated as a predetermined net profit over a preferred return. Private strategies LPs primarily earn carried interest calculated as a predetermined net profit over a preferred return. | |||||||
Schedule 2 - Summary financial information
| (In thousands $) | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | ||||||||
| Summary income statement | ||||||||||||||||
| Management fees (1) | 41,161 | 38,693 | 38,065 | 36,372 | 34,244 | 32,867 | 32,940 | 31,170 | ||||||||
| Fund expenses (2), (3) | (2,708 | ) | (2,385 | ) | (2,657 | ) | (2,234 | ) | (2,200 | ) | (1,740 | ) | (1,871 | ) | (1,795 | ) |
| Direct payouts | (1,561 | ) | (1,483 | ) | (1,408 | ) | (1,461 | ) | (1,283 | ) | (1,472 | ) | (1,342 | ) | (1,187 | ) |
| Carried interest and performance fees | 2,511 | 4,110 | 698 | — | 503 | — | 388 | — | ||||||||
| Carried interest and performance fee payouts - internal | (830 | ) | — | (251 | ) | — | (222 | ) | — | (236 | ) | — | ||||
| Carried interest and performance fee payouts - external (3) | — | — | — | — | — | — | — | — | ||||||||
| Net fees | 38,573 | 38,935 | 34,447 | 32,677 | 31,042 | 29,655 | 29,879 | 28,188 | ||||||||
| Commissions | 819 | 498 | 3,332 | 1,047 | 1,331 | 539 | 1,647 | 4,784 | ||||||||
| Commission expense - internal | (146 | ) | (147 | ) | (380 | ) | (217 | ) | (161 | ) | (88 | ) | (494 | ) | (1,727 | ) |
| Commission expense - external (3) | (290 | ) | (103 | ) | (1,443 | ) | (312 | ) | (441 | ) | (92 | ) | (27 | ) | (642 | ) |
| Net commissions | 383 | 248 | 1,509 | 518 | 729 | 359 | 1,126 | 2,415 | ||||||||
| Finance income (2) | 1,441 | 1,574 | 4,084 | 1,810 | 1,391 | 1,795 | 1,650 | 1,655 | ||||||||
| Gain (loss) on investments | (3,889 | ) | 937 | 1,133 | 1,809 | 2,808 | (1,441 | ) | (1,950 | ) | 1,958 | |||||
| Co-investment income (2) | 296 | 418 | 416 | 274 | 170 | 462 | 1,327 | 93 | ||||||||
| Total net revenues (2) | 36,804 | 42,112 | 41,589 | 37,088 | 36,140 | 30,830 | 32,032 | 34,309 | ||||||||
| Compensation (2) | 19,672 | 18,547 | 19,225 | 17,955 | 17,096 | 16,939 | 21,468 | 19,556 | ||||||||
| Direct payouts | (1,561 | ) | (1,483 | ) | (1,408 | ) | (1,461 | ) | (1,283 | ) | (1,472 | ) | (1,342 | ) | (1,187 | ) |
| Carried interest and performance fee payouts - internal | (830 | ) | — | (251 | ) | — | (222 | ) | — | (236 | ) | — | ||||
| Commission expense - internal | (146 | ) | (147 | ) | (380 | ) | (217 | ) | (161 | ) | (88 | ) | (494 | ) | (1,727 | ) |
| Severance, new hire accruals and other | (166 | ) | (58 | ) | — | — | (179 | ) | (122 | ) | (4,067 | ) | (1,257 | ) | ||
| Net compensation | 16,969 | 16,859 | 17,186 | 16,277 | 15,251 | 15,257 | 15,329 | 15,385 | ||||||||
| Net compensation ratio | 44 | % | 46 | % | 44 | % | 47 | % | 47 | % | 50 | % | 48 | % | 52 | % |
| Severance, new hire accruals and other | 166 | 58 | — | — | 179 | 122 | 4,067 | 1,257 | ||||||||
| Selling, general and administrative ("SG&A") (2) | 4,949 | 4,612 | 5,040 | 4,173 | 3,963 | 3,817 | 4,752 | 4,026 | ||||||||
| SG&A recoveries from funds (1) | (280 | ) | (275 | ) | (260 | ) | (231 | ) | (241 | ) | (249 | ) | (282 | ) | (264 | ) |
| Interest expense | 613 | 933 | 715 | 830 | 844 | 882 | 1,087 | 1,247 | ||||||||
| Depreciation and amortization | 600 | 502 | 568 | 551 | 658 | 731 | 748 | 706 | ||||||||
| Foreign exchange (gain) loss (2) | (2,706 | ) | 1,028 | 122 | 168 | 1,295 | 37 | 1,440 | 440 | |||||||
| Other (income) and expenses (2) | — | — | (580 | ) | — | 3,368 | 4,809 | (18,890 | ) | 1,249 | ||||||
| Total expenses | 20,311 | 23,717 | 22,791 | 21,768 | 25,317 | 25,406 | 8,251 | 24,046 | ||||||||
| Net income | 11,680 | 12,697 | 13,360 | 11,557 | 9,664 | 6,773 | 17,724 | 7,638 | ||||||||
| Net income per share | 0.46 | 0.50 | 0.53 | 0.45 | 0.38 | 0.27 | 0.70 | 0.30 | ||||||||
| Adjusted base EBITDA | 22,362 | 20,675 | 22,375 | 19,751 | 18,759 | 17,854 | 17,953 | 17,321 | ||||||||
| Adjusted base EBITDA per share | 0.88 | 0.81 | 0.88 | 0.78 | 0.75 | 0.71 | 0.71 | 0.68 | ||||||||
| Summary balance sheet | ||||||||||||||||
| Total assets | 388,798 | 412,477 | 406,265 | 389,784 | 378,835 | 375,948 | 381,519 | 386,765 | ||||||||
| Total liabilities | 65,150 | 82,198 | 90,442 | 82,365 | 73,130 | 79,705 | 83,711 | 108,106 | ||||||||
| Total AUM | 31,535,062 | 33,439,221 | 31,053,136 | 29,369,191 | 28,737,742 | 25,398,159 | 25,141,561 | 25,377,189 | ||||||||
| Average AUM | 33,401,157 | 31,788,412 | 31,378,343 | 29,035,667 | 27,014,109 | 25,518,250 | 25,679,214 | 23,892,335 | ||||||||
| (1) Previously, management fees within the above summary financial information table included SG&A recoveries from funds consistent with IFRS 15. For management reporting purposes, these recoveries are now shown next to their associated expense as management believes this will enable readers to transparently identify the net economics of these recoveries. However, consistent with IFRS 15, SG&A recoveries from funds are still shown within the "Management fees" line on the consolidated statement of operations. Prior year figures have been reclassified to conform with current presentation. | ||||||||||||||||
| (2) Current and prior period figures on the consolidated statements of operations include the following adjustments: (1) trading costs incurred in managed accounts are now included within "Fund expenses" (previously included within "SG&A"); (2) interest income earned on cash deposits are now included within "Finance income" (previously included within "Other income"); (3) co-investment income and income attributable to non-controlling interest are now included as part of "Co-investment income" (previously included within "Other income"); (4) expenses attributable to non-controlling interest is now included within "Co-investment income" (previously included within "Other expenses"); (5) the mark-to-market expense of DSU issuances are now included within "Compensation" (previously included within "Other expenses"); (6) foreign exchange (gain) loss is now shown separately (previously included within "Other expenses"); and (7) shares received on a previously unrecorded contingent asset in Q2 2023 are now included within "Other (income) and expenses" (previously included within "Other income"). Management believes the above changes enable readers to better identify the nature of these revenues and expenses. Prior year figures have been reclassified to conform with current presentation. | ||||||||||||||||
| (3) These amounts are included in the "Fund expenses" line on the consolidated statements of operations. | ||||||||||||||||
Schedule 3 - EBITDA reconciliation
| 3 months ended | 12 months ended | |||||||
| (In thousands $) | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2024 | Dec. 31, 2023 | ||||
| Net income for the period | 11,680 | 9,664 | 49,294 | 41,799 | ||||
| Net income margin (1) | 27 | % | 24 | % | 28 | % | 28 | % |
| Adjustments: | ||||||||
| Interest expense | 613 | 844 | 3,091 | 4,060 | ||||
| Provision for income taxes | 4,813 | 1,159 | 19,712 | 8,492 | ||||
| Depreciation and amortization | 600 | 658 | 2,221 | 2,843 | ||||
| EBITDA | 17,706 | 12,325 | 74,318 | 57,194 | ||||
| Adjustments: | ||||||||
| (Gain) loss on investments (2) | 3,889 | (2,808 | ) | 10 | (1,375 | ) | ||
| Stock-based compensation (3) | 4,988 | 4,681 | 18,817 | 17,128 | ||||
| Foreign exchange (gain) loss (4) | (2,706 | ) | 1,295 | (1,388 | ) | 3,212 | ||
| Severance, new hire accruals and other (4) | 166 | 179 | 224 | 5,625 | ||||
| Revaluation of contingent consideration (4) | — | 2,254 | (580 | ) | — | |||
| Costs relating to exit of non-core business (4) | — | 155 | — | 5,142 | ||||
| Non-recurring regulatory, professional fees and other (4) | — | 959 | — | 3,982 | ||||
| Shares received on recognition of contingent asset (4) | — | — | — | (18,588 | ) | |||
| Carried interest and performance fees | (2,511 | ) | (503 | ) | (7,319 | ) | (891 | ) |
| Carried interest and performance fee payouts - internal | 830 | 222 | 1,081 | 458 | ||||
| Carried interest and performance fee payouts - external | — | — | — | — | ||||
| Adjusted base EBITDA | 22,362 | 18,759 | 85,163 | 71,887 | ||||
| Adjusted base EBITDA margin (5) | 59 | % | 56 | % | 58 | % | 57 | % |
| (1) Calculated as IFRS net income divided by IFRS total revenue. | ||||||||
| (2) This adjustment removes the income effects of certain gains or losses on short-term investments, co-investments, and digital gold strategies to ensure the reporting objectives of our EBITDA metric as described below are met. | ||||||||
| (3) In prior years, the mark-to-market expense of DSU issuances were included with "other (income) and expenses". In the current period, these costs are included as part of "stock based compensation". Prior year figures have been reclassified to conform with current presentation. | ||||||||
| (4) Foreign exchange (gain) and loss, severance, new hire accruals and other; revaluation of contingent consideration; costs relating to exit of non-core business; non-recurring regulatory, professional fees and other; and shares received on recognition of contingent asset were previously included with "other (income) and expenses" and are now shown separately in the reconciliation of adjusted base EBITDA above. Prior year figures have been reclassified to conform with current presentation. | ||||||||
| (5) Prior year figures have been restated to remove the adjustment of depreciation and amortization. | ||||||||
Conference Call and Webcast
A webcast will be held today, February 26, 2025 at 10:00 am ET to discuss the Company's financial results.
To listen to the webcast, please register at: https://edge.media-server.com/mmc/p/syh6xw97
Please note, analysts who cover the Company should register at: https://register.vevent.com/register/BIe9622ad4a1434ee3beff3bfb7224f1ef
This press release includes financial terms (including AUM, net commissions, net fees, expenses, adjusted base EBITDA, adjusted base EBITDA margin and net compensation) that the Company utilizes to assess the financial performance of its business that are not measures recognized under International Financial Reporting Standards (“IFRS”). These non-IFRS measures should not be considered alternatives to performance measures determined in accordance with IFRS and may not be comparable to similar measures presented by other issuers. Non-IFRS financial measures do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. Our key performance indicators and non-IFRS and other financial measures are discussed below. For quantitative reconciliations of non-IFRS financial measures to their most directly comparable IFRS financial measures please see schedule 2 and schedule 3 of the "Supplemental financial information" section of this press release.
Net fees
Management fees, net of fund expenses and direct payouts, and carried interest and performance fees, net of carried interest and performance fee payouts (internal and external), are key revenue indicators as they represent the net revenue contribution after directly associated costs that we generate from our AUM.
Net commissions
Commissions, net of commission expenses (internal and external), arise primarily from purchases and sales of critical materials in our exchange listed products segment and transaction-based service offerings by our broker dealers.
Net compensation & net compensation ratio
Net compensation excludes commission expenses paid to employees, other direct payouts to employees, carried interest and performance fee payouts to employees, which are all presented net of their related revenues in this MD&A, and severance, new hire accruals and other which are non-recurring. Net compensation ratio is calculated as net compensation divided by net revenues.
EBITDA, adjusted base EBITDA and adjusted base EBITDA margin
EBITDA in its most basic form is defined as earnings before interest expense, income taxes, depreciation and amortization. EBITDA (or adjustments thereto) is a measure commonly used in the investment industry by management, investors and investment analysts in understanding and comparing results by factoring out the impact of different financing methods, capital structures, amortization techniques and income tax rates between companies in the same industry. While other companies, investors or investment analysts may not utilize the same method of calculating EBITDA (or adjustments thereto), the Company believes its adjusted base EBITDA metric results in a better comparison of the Company's underlying operations against its peers and a better indicator of recurring results from operations as compared to other non-IFRS financial measures. Adjusted base EBITDA margins are a key indicator of a company’s profitability on a per dollar of revenue basis, and as such, is commonly used in the financial services sector by analysts, investors and management.
Forward Looking Statements
Certain statements in this press release contain forward-looking information and forward-looking statements (collectively referred to herein as the "Forward-Looking Statements") within the meaning of applicable Canadian and U.S. securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify Forward-Looking Statements. In particular, but without limiting the forgoing, this press release contains Forward-Looking Statements pertaining to: (i) our ability to capitalize on our constructive outlook in precious metals and critical materials; and (ii) the declaration, payment and designation of dividends and confidence that our business will support the dividend level without impacting our ability to fund future growth initiatives.
Although the Company believes that the Forward-Looking Statements are reasonable, they are not guarantees of future results, performance or achievements. A number of factors or assumptions have been used to develop the Forward-Looking Statements, including: (i) the impact of increasing competition in each business in which the Company operates will not be material; (ii) quality management will be available; (iii) the effects of regulation and tax laws of governmental agencies will be consistent with the current environment; (iv) the impact of public health outbreaks; and (v) those assumptions disclosed under the heading "Critical Accounting Estimates, Judgments and Changes in Accounting Policies" in the Company’s MD&A for the period ended December 31, 2024. Actual results, performance or achievements could vary materially from those expressed or implied by the Forward-Looking Statements should assumptions underlying the Forward-Looking Statements prove incorrect or should one or more risks or other factors materialize, including: (i) difficult market conditions; (ii) poor investment performance; (iii) failure to continue to retain and attract quality staff; (iv) employee errors or misconduct resulting in regulatory sanctions or reputational harm; (v) performance fee fluctuations; (vi) a business segment or another counterparty failing to pay its financial obligation; (vii) failure of the Company to meet its demand for cash or fund obligations as they come due; (viii) changes in the investment management industry; (ix) failure to implement effective information security policies, procedures and capabilities; (x) lack of investment opportunities; (xi) risks related to regulatory compliance; (xii) failure to manage risks appropriately; (xiii) failure to deal appropriately with conflicts of interest; (xiv) competitive pressures; (xv) corporate growth which may be difficult to sustain and may place significant demands on existing administrative, operational and financial resources; (xvi) failure to comply with privacy laws; (xvii) failure to successfully implement succession planning; (xviii) foreign exchange risk relating to the relative value of the U.S. dollar; (xix) litigation risk; (xx) failure to develop effective business resiliency plans; (xxi) failure to obtain or maintain sufficient insurance coverage on favorable economic terms; (xxii) historical financial information being not necessarily indicative of future performance; (xxiii) the market price of common shares of the Company may fluctuate widely and rapidly; (xxiv) risks relating to the Company’s investment products; (xxv) risks relating to the Company's proprietary investments; (xxvi) risks relating to the Company's private strategies business; (xxvii) those risks described under the heading "Risk Factors" in the Company’s annual information form dated February 25, 2025; and (xxviii) those risks described under the headings "Managing Financial Risks" and "Managing Non-Financial Risks" in the Company’s MD&A for the period ended December 31, 2024. In addition, the payment of dividends is not guaranteed and the amount and timing of any dividends payable by the Company will be at the discretion of the Board of Directors of the Company and will be established on the basis of the Company’s earnings, the satisfaction of solvency tests imposed by applicable corporate law for the declaration and payment of dividends, and other relevant factors. The Forward-Looking Statements speak only as of the date hereof, unless otherwise specifically noted, and the Company does not assume any obligation to publicly update any Forward-Looking Statements, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.
About Sprott
Sprott is a global asset manager focused on precious metals and critical materials investments. We are specialists. We believe our in-depth knowledge, experience and relationships separate us from the generalists. Our investment strategies include Exchange Listed Products, Managed Equities and Private Strategies. Sprott has offices in Toronto, New York, Connecticut and California and the company’s common shares are listed on the New York Stock Exchange and the Toronto Stock Exchange under the symbol (SII). For more information, please visit www.sprott.com.
Investor contact information:
Glen Williams
Managing Partner
Investor and Institutional Client Relations
(416) 943-4394
gwilliams@sprott.com
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