Sprott(US:SII)2024-02-21 19:46Financial Performance - The company reported net income of $9.664 million for the three months ended December 31, 2023, compared to $7.331 million for the same period in 2022, representing a 32% increase[75]. - Net income for the year ended December 31, 2023 was $41,799,000, up 137% from $17,632,000 in 2022[3]. - Total net revenues for Q4 2023 were $36,671,000, an increase of 21% compared to Q4 2022's $30,989,000[1]. - Basic earnings per share for the quarter was $0.38, up from $0.29 in the prior year, reflecting a growth of 31.03%[110]. - Total revenues for 2023 increased to $169,021,000, up 16.4% from $145,182,000 in 2022[178]. - Management fees rose to $132,257,000, a 14.7% increase compared to $115,355,000 in the previous year[178]. - The company reported a revenue of $1.4 billion, representing a 20% increase year-over-year[179]. - The company reported a loss on investments of $1,375,000 in 2023 compared to a gain of $10,242,000 in 2022[181]. Assets and Liabilities - Total assets as of December 31, 2023 were $378,835,000, a slight decrease from $383,748,000 in 2022[4]. - Total current assets decreased to $45,056,000 from $76,963,000, a decline of 41.5%[177]. - Total liabilities reduced to $73,130,000, down 31.2% from $106,477,000 in 2022[177]. - The company had $24.2 million outstanding on its credit facility, a decrease from $54.4 million in the previous year, due to a repayment of $30.2 million[112]. - The company’s total contractual obligations as of December 31, 2023, amounted to $50,374,000, with $24,806,000 due within one year[115]. Management and Operational Changes - The strategic exit of non-core businesses, including the legacy asset management business in Korea, was completed, enhancing operational focus[80]. - The company exited its non-core asset management business in Korea, which historically contributed less than 1% to consolidated net income[8]. - The company repurchased 126,353 shares, or 0.49% of its float, for total proceeds of $4.2 million during the year[80]. - The company has completed two strategic acquisitions, enhancing its market position and product offerings[179]. Fundraising and Investments - The company successfully raised $688 million in new AUM through fundraising efforts for a new lending fund and a new streaming fund in its private strategies segment[80]. - The company recognized deferred income tax expense of $1,002,000 in 2023, which was not present in 2022[181]. - Co-investments in funds increased from $73,573,000 in 2022 to $93,528,000 in 2023, reflecting a growth of about 27.1%[234]. Market and Product Development - Five new exchange-listed products were launched in the first quarter, focusing on critical materials for cleaner energy[80]. - The company anticipates benefiting from a constructive operating environment for precious metals and critical materials in fiscal 2024[79]. - New product launches contributed to a 15% increase in sales, with a focus on enhancing user experience[179]. - Market expansion efforts have led to a 25% increase in international sales, particularly in Europe and Asia[179]. Internal Controls and Compliance - KPMG LLP issued an unqualified opinion on the effectiveness of the Company's internal control over financial reporting as of December 31, 2023[170]. - The Company concluded that its Disclosure Controls and Procedures (DC&P) and Internal Control over Financial Reporting (ICFR) were effectively designed and operating as of December 31, 2023[135]. - The Company has established an Independent Review Committee (IRC) to address conflicts of interest in compliance with National Instrument 81-107[138]. Expenses and Compensation - SG&A expenses were $4.2 million in the quarter, up $0.1 million (3%) from Q4 2022, and $17.5 million for the full year, up $1.5 million (9%) from 2022[93]. - Stock-based compensation increased to $20,411,000 in 2023 from $17,041,000 in 2022, reflecting a rise of 13.9%[181]. - Net compensation increased to $5,260,000 for the three months ended December 31, 2023, up from $4,255,000 in the prior year, reflecting a rise of 23.54%[106].