Sprott(US:SII)2025-02-26 15:13Financial Performance - As of December 31, 2024, the Company reported a net income of $11.68 million for the three months ended, compared to $9.66 million for the same period in 2023, representing a 21% increase[86]. - The adjusted base EBITDA for the twelve months ended December 31, 2024, was $85.16 million, up from $71.89 million in 2023, reflecting an increase of 18%[86]. - The net income margin for the twelve months ended December 31, 2024, was 28%, consistent with the previous year[86]. - The Company reported net revenues of $64.5 million for the three months ended December 31, 2024, compared to $40.3 million for the same period in 2023, indicating a 60% increase[86]. - Total net revenues for the year ended December 31, 2024 were $178.655 million, an increase from $151.367 million in 2023[96]. - Net income for the year ended December 31, 2024 was $49.294 million, compared to $41.799 million in 2023[96]. - Basic net income per share rose to $1.94 in 2024, compared to $1.66 in 2023, marking an increase of 16.8%[199]. - Total revenues for the year ended December 31, 2024, were $178,655 thousand, representing an increase of 18% compared to $151,367 thousand in 2023[199]. Assets and Liabilities - Total assets as of December 31, 2024 were $388.798 million, up from $378.835 million in 2023[97]. - Total liabilities as of December 31, 2024 were $65.150 million, down from $73.130 million in 2023[97]. - AUM ended the year at $31.5 billion, down 6% from $33.4 billion as of September 30, 2024, but up 10% from $28.7 billion as of December 31, 2023[98]. - Average AUM for the year was $33.401 billion, compared to $31.788 billion in 2023[98]. - Total current assets increased significantly to $79,188 thousand in 2024 from $43,578 thousand in 2023, representing an increase of approximately 81.7%[198]. - Total shareholders' equity rose to $323.6 million, up 6% from $305.7 million as of December 31, 2023[112]. Cash Flow and Investments - Cash provided by operating activities rose significantly to $69,152,000 in 2024, compared to $29,861,000 in 2023, marking an increase of about 131.5%[201]. - Cash provided by investing activities improved to $24,515,000 in 2024 from $4,607,000 in 2023, reflecting a substantial increase of approximately 431.5%[201]. - Cash and cash equivalents at the end of the year reached $46,834,000 in 2024, up from $20,658,000 in 2023, indicating a growth of about 126.5%[201]. - The company experienced a net increase in cash and cash equivalents of $26,176,000 in 2024, compared to a decrease of $31,020,000 in 2023[201]. - The company’s investment activities included a purchase of investments totaling $13,405,000 in 2024, down from $25,474,000 in 2023, indicating a decrease of approximately 47.4%[201]. Dividends and Shareholder Returns - The company declared total dividends of $27.15 million in 2024, compared to $25.9 million in 2023[128]. - Dividends paid increased to $27,147,000 in 2024 from $25,847,000 in 2023, representing a rise of approximately 5%[201]. Risk Management and Internal Controls - Management has evaluated the effectiveness of internal controls over financial reporting as of December 31, 2024, concluding that no material weaknesses were identified[177]. - The independent auditors, KPMG LLP, expressed an unqualified opinion on the effectiveness of the Company's internal control over financial reporting as of December 31, 2024[182]. - The Company has implemented a comprehensive enterprise risk management program to identify and evaluate risks in alignment with its risk appetite[164]. - The Company is exposed to liquidity risk primarily through fluctuations in cash flows from capital calls and distributions, which are actively monitored[151]. Product and Market Development - The Company launched the Sprott Physical Copper Trust on June 6, 2024, raising gross proceeds of $110 million, and established an ATM equity program to issue up to an additional $500 million of trust units[90]. - The Company expanded its product offerings with the launch of the Sprott Copper Miners ETF and the Sprott Junior Uranium Miners UCITS ETF in 2024[91]. - The Company is focused on developing new exchange-listed and actively-managed critical materials strategies to capitalize on long-term trends in the market[92]. Compensation and Expenses - The company reported a net compensation ratio of 44% for Q3 2024, down from 46% in Q2 2024[1]. - SG&A expenses for the quarter were $4.9 million, up 25% from $4 million in the previous quarter, and $18.8 million for the full year, up 13% from $16.6 million[106]. - Management fees for the quarter were $41.4 million, up 20% from $34.5 million in the previous quarter, and $155.3 million for the full year, up 17% from $132.3 million[102]. Shareholder Equity and Stock Options - The total number of shares outstanding increased from 25,410,151 at December 31, 2023, to 25,814,859 at December 31, 2024, reflecting an increase of approximately 1.6%[263]. - The stated value of capital stock increased from $434.8 million at December 31, 2023, to $450.1 million at December 31, 2024, representing a growth of approximately 3.5%[263]. - The contributed surplus increased from $35.3 million at December 31, 2023, to $36.3 million at December 31, 2024, indicating a rise of approximately 2.8%[264]. - As of December 31, 2024, there are 12,500 stock options outstanding with a weighted average exercise price of CAD$27.30 and 1.4 years remaining on their contractual life[268].