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Guardian Capital Group Limited (TSX: GCG; GCG.A) Announces 2017 Third Quarter Operating Results

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TORONTO, Nov. 09, 2017 (GLOBE NEWSWIRE) -- All per share figures disclosed below are stated on a diluted basis.                                                                                                                                                                                                                             

         
For the periods ended September 30 Three months Nine months
($ in thousands, except per share amounts)  2017  2016  2017  2016
         
Net revenue $   36,315 $   35,185 $   112,141 $   104,446
Operating earnings     10,505     10,646     35,123     32,296
Net gains     10,987     10,057     39,359     27,863
Net earnings available to shareholders     17,987     17,353     62,377     50,058
         
         
EBITDA(1) $   11,811 $   12,065 $   38,587 $   36,150
Adjusted cash flow(1)     4,785     9,293     20,061     28,311
         
         
Per share:        
Net earnings available to shareholders $   0.61 $   0.58 $   2.13 $   1.67
EBITDA(1)     0.40     0.40     1.32     1.21
Adjusted cash flow(1)     0.17     0.31     0.69     0.95
         
         
As at    2017  2016
($ in millions, except per share amounts)   September 30 December 31 September 30
         
Assets under management   $   26,335 $   27,280 $   27,269
Assets under administration       17,271     16,489     16,134
Shareholders' equity       608     580     545
Securities       621     620     571
         
         
Per share:        
Shareholders' equity(1)   $   20.67 $   19.62 $   18.07
Securities(1)       21.12     20.97     18.94
         

                                                                                                                                                                        

The Company's operating earnings for the quarter ended September 30, 2017 were $10.5 million, substantially the same as the $10.6 million in the same period a year earlier.

Net gains in the current quarter were $11.0 million, compared to $10.1 million in the same period a year earlier.  Of the net gains in the current quarter, approximately $6.0 million were from the sale of 100,000 bank of Montreal shares, and the remainder were recognized within the investment funds consolidated by the Company.

Net earnings available to shareholders for the current quarter increased to $18.0 million, or $0.61 per share, compared to $17.4 million, or $0.58 per share a year earlier, resulting from the increased net gains, as described above.

The Company's assets under management as at September 30, 2017 were $26.3 billion, a decrease of 3% from $27.3 billion at the end of 2016 and at September 30, 2016.  Assets under administration at the end of the current quarter were $17.3 billion, a 5% increase from $16.5 billion at the end of 2016 and up 7% from $16.1 billion at September 30, 2016.

EBITDA for the current quarter was $11.8 million, or $0.40 per share, compared to $12.1 million, or $0.40 per share in 2016. Adjusted cash flow from operations for the current quarter was $4.8 million, or $0.17 per share, compared to $9.3 million, or $0.31 per share in 2016.  The decrease in adjusted cash flow from operations was due to a significantly larger tax installment being paid in the current quarter than in the prior year.

The Company's shareholders' equity as at September 30, 2017 was $608 million, or $20.67 per share, compared to $580 million, or $19.62 per share as at December 31, 2016 and $545 million, or $18.07 per share as at September 30, 2016. The Company's securities as at September 30, 2017 were valued at $621 million, or $21.12 per share, compared to $620 million, or $20.97 per share, as at December 31, 2016 and $571 million, or $18.94 per share, as at September 30, 2016. 

The Board of Directors has declared a quarterly eligible dividend of $0.10 per share, payable on January 18, 2018, to shareholders of record on January 11, 2018. 

The following table summarizes the Company's financial results for the past eight quarters.

                 
Three months ended Sep 30,
2017
Jun 30,
2017
Mar 31,
2017
Dec 31,
2016
Sep 30,
2016
Jun 30,
2016
Mar 31,
2016
Dec 31,
2015
($ in thousand, except per share amounts)
                 
Net revenue $   36,315 $   37,208 $   38,618 $   38,240 $   35,185 $   34,191 $   35,070 $   34,353
Operating earnings     10,505     12,160     12,458     12,371     10,646     10,300     11,350     10,256
Net gains (losses)     10,987     10,783     17,589     10,754     10,057     1,028     16,778     9,658
Net earnings     18,232     19,638     25,518     19,859     17,475     9,169     24,072     17,362
Net earnings available to shareholders     17,987     19,387     25,003     19,417     17,353     8,887     23,818     17,138
Shareholders' equity     608,013     603,428     605,039     580,177     545,339     513,939     497,656     504,255
                 
                 
Net earnings available to shareholders                
per Class A and Common share                
Basic $   0.70 $   0.70 $   0.91 $   0.69 $   0.61 $   0.31 $   0.83 $   0.59
Diluted     0.67     0.67     0.86     0.65     0.58     0.30     0.79     0.56
                 
Shareholders' equity per Class A and                
Common share (1)                
Basic $   21.75 $   21.75 $   21.81 $   20.75 $   19.11 $   18.08 $   17.51 $   17.37
Diluted     20.54     20.54     20.58     19.62     18.07     17.10     16.63     16.55
                 
Dividends paid $   0.100 $   0.100 $   0.085 $   0.085 $   0.085 $   0.085 $   0.075 $   0.075
                 


Guardian Capital Group Limited is a diversified financial services company founded in 1962.  The Company provides institutional and high net worth investment management services to clients; financial services to international investors; and services to financial advisors in its national mutual fund dealer, securities dealer, and insurance distribution network.  Its Common and Class A shares are listed on The Toronto Stock Exchange.

For further information, contact:

Donald Yi                                                                                             
Chief Financial Officer                                                                           
(416) 350-3136                                                                                       

George Mavroudis
President and Chief Executive Officer
(416) 364-8341

(1) The Company's management uses EBITDA, EBITDA per share, Adjusted cash flow from operations, Adjusted cash flow from operations per share, Shareholders' equity per share and Securities per share to evaluate and assess the performance of its business.  These measures do not have standardized measures under International Financial Reporting Standards ("IFRS"), and are therefore unlikely to be comparable to similar measures presented by other companies.  However, management believes that most shareholders, creditors, other stakeholders and investment analysts prefer to include the use of these measures in analyzing the Company's results.  The Company defines EBITDA as net earnings before interest, income taxes, amortization, stock-based compensation, net gains or losses, less amounts attributable to non-controlling interests.  The Company defines Adjusted cash flow from operations as net cash from operating activities, net of changes in non-cash working capital items and non-controlling interests.  The most comparable IFRS measures are Net earnings, which were $18,232 for the three months ended September 30, 2017 (2016 - $17,475), and Net cash from operating activities, which was $11,924 for the three months ended September 30, 2017 (2016 - $9,929).  The per share amounts for EBITDA, Adjusted cash flow from operations, Shareholders' equity and Securities are calculated by dividing the amounts by diluted shares, which is calculated in a similar manner as net earnings available to shareholders per share.  More detailed descriptions of these non-IFRS measures are provided in the Company's quarterly Management's Discussions and Analysis, including a reconciliation of these measures to their most comparable IFRS measures. 

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