AGF Management increases sales while Keeping Earnings Steady

         

 AGF Management

 released it's first quarter results and it was steady as she goes.Investors must have been pleased to see an almost 3 % increase in sales while the industry is growing so slowly.Income was $105 million compared to $110 million for Q1 2018.E.P.S. was $.14 compared to $.14 in 2018.AGF reported improved results for it's U.K. subsidiary and an increased   investment in it's InstarAGF Asset Mangement - one of it's new North American funds.Largely AGF is diversifying with new funds in new locations.
                 The Same Trend for 2019
 AGF had a quite good year in 2018.E.p.s. were $.92 per share while income was $450 million and adjusted EBITDA was $110 million.Part of this success was due to a tax provision release of $24 million.Additionally they bought back almost 1 million shares.Income in the first quarter of 2019 at $105 million was only down slightly from Q1 in 2018 at $111 million.Adjusted earnings were $.14 per share compared to $.17 in Q4 and $.14 in Q1 for 2018.Still free cash flow improved to $17 million from $10.5 million in 2018.
         There were some successful highlights that point to an encouraging 2019.Assets under management (AUM) were almost 5% higher and mutual fund sales showed good increases.Net redemptions were in line with 2018 figures.       
         The Share Price for 2019
       This blog sees 2019 as a building year for AGF Management.Sales will continue to be healthy and AUM on an annual basis should grow to $40 billion.Income will be around $450-$460 million just slightly ahead of 2018.But because of the tax provision release in 2018 of $24 million e.p.s. will be down somewhat.So a forecast of $.70 to $.80 per share seems probable.AGF did not give a breakdown on foreign subsidiary income in Q1 but an increase here might put earnings at the top end of the range.Without a small acquisition or a capital gain from a sale of a subsidiary this will likely put AGF Management only in the $6.00 to $6.50 price range.    https://www.omers.com/  https://www.otpp.com/