Sprott(US:SII)2022-05-06 11:01Financial Performance - Net income for the first quarter of 2022 was $6.5 million ($0.26 per share), an increase of $3.3 million ($0.13 per share) compared to the same quarter in 2021[3]. - Adjusted base EBITDA reached $18.2 million ($0.73 per share), up 24% or $3.6 million ($0.14 per share) from the prior year[3]. - The operating margin improved to 57% for the first quarter of 2022, compared to 51% in the same period of 2021[25]. - Total revenues for the three months ended March 31, 2022, were $42,463,000, an increase of 6.8% compared to $39,751,000 for the same period in 2021[101]. - Net income for the period was $6,473,000, representing a 101.5% increase from $3,221,000 in the prior year[101]. - Basic earnings per share was $0.26, compared to $0.13 in the prior period[72]. - Income before income taxes was $13.5 million, up $4.2 million (45%) from the same quarter in 2021[54]. - Total net revenues for the managed equities segment increased to $9.4 million, compared to $2.7 million in the same quarter last year[56]. - Total net revenues for the brokerage segment decreased to $3.9 million, down from $7.0 million in the previous year[62]. Assets Under Management (AUM) - Assets Under Management (AUM) increased to $23.7 billion, up $3.2 billion (16%) from December 31, 2021[3]. - The Sprott Physical Uranium Trust surpassed $3 billion in AUM, reflecting growing investor interest in energy-transition investments[5]. - The acquisition of the North Shore Global Uranium Miners ETF added $1.1 billion in AUM, establishing Sprott as the largest manager of uranium investments globally with approximately $4 billion in related AUM[5]. - Total AUM reached $23.7 billion as of March 31, 2022, an increase of $3.2 billion (16%) from December 31, 2021, driven by strong market value appreciation and inflows into physical uranium, gold, and silver trusts[40]. Expenses and Costs - Management fees for the quarter were $27.2 million, up $4.7 million (21%) compared to the same quarter in 2021, primarily due to higher average AUM[43]. - Carried interest and performance fees were $2 million in the quarter, down $5.9 million (74%) from the same quarter in 2021, indicating lower carried interest crystallization in the private strategies segment[43]. - Commission revenues were $13.1 million, up $0.6 million (5%) from the previous year, while net commissions decreased by $0.3 million (4%) to $6.6 million[44]. - Net compensation expense rose to $15.7 million, an increase of $3.9 million (33%) from the previous year, primarily due to higher long-term incentive plan amortization[46]. - Selling, general and administrative expenses were $3.4 million, up $0.1 million (3%) from the same quarter in 2021, mainly due to increased marketing and technology costs[47]. - Total expenses for the three months ended March 31, 2022, were $33.298 million, compared to $33.819 million in the same period of 2021, indicating a decrease of about 1.5%[160]. Strategic Focus and Market Outlook - The company anticipates continued growth in key financial metrics supported by a strong product pipeline and portfolio teams[10]. - The company remains cautious about the impact of aggressive rate hikes by the Fed on financial markets and potential recession risks[4]. - The company is focused on developing new strategies in the energy transition space to enhance shareholder value[10]. - The company aims to provide adequate seed capital for new product offerings and financial flexibility for potential acquisitions[141]. Shareholder Returns - The company declared a cash dividend of $0.25 per share, totaling $6.5 million[70]. - The company declared dividends of $6,434,000 in Q1 2022, compared to $6,393,000 in Q1 2021, a slight increase of 1%[104]. Investment and Financing Activities - The company had $38.3 million outstanding on its credit facility as of March 31, 2022, up from $29.8 million at the end of 2021[75]. - The company completed the acquisition of North Shore Global Uranium ETF for $10.5 million in cash and $4 million in shares, adding approximately $1.1 billion to AUM[35]. - The company had $11.3 million in co-investment commitments due within one year as of March 31, 2022, up from $7.7 million as of December 31, 2021[168]. Other Financial Metrics - Total assets as of March 31, 2022, were $380,843,000, up from $365,873,000 at the end of 2021, marking a growth of 4.1%[100]. - Total liabilities increased to $83,584,000 from $74,654,000, reflecting a rise of 11.5%[100]. - The company reported a loss on investments of $1,473,000 for the quarter, an improvement from a loss of $4,652,000 in the same quarter of the previous year[101]. - Current income tax expense for the three months ended March 31, 2022, was $2.157 million, down from $3.023 million in the prior year, a decrease of 28.7%[142].