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| Press Release

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

TORONTO, Aug. 10, 2017 (GLOBE NEWSWIRE) --

All per share figures disclosed below are stated on a diluted basis.

For the periods ended June 30Three monthsSix months
($ in thousands, except per share amounts) 2017 2016 2017 2016
     
Net revenue$37,208 $34,191$75,826 $69,261
Operating earnings 12,160 10,300 24,618 21,650
Net gains 10,783 1,028 28,372 17,806
Net earnings available to shareholders 19,387 8,887 44,390 32,705
     
     
EBITDA(1)$13,470 $11,607$26,776 $24,085
Adjusted cash flow(1) 10,859 9,435 15,276 19,018
     
     
Per share:    
Net earnings available to shareholders$0.67 $0.30$1.52 $1.09
EBITDA(1) 0.46 0.39 0.92 0.80
Adjusted cash flow(1) 0.37 0.32 0.53 0.64
     
     
As at  2017 2016
($ in millions, except per share amounts) June 30December 31June 30
     
Assets under management $26,379 $27,280$25,654
Assets under administration  17,073 16,489 15,425
Shareholders' equity  603 580 514
Securities  627 620 540
     
     
Per share:    
Shareholders' equity(1) $20.54 $19.62$17.10
Securities(1)  21.35 20.97 17.96
     


The Company’s operating earnings for the quarter ended June 30, 2017 were $12.2 million, an 18% increase, compared to $10.3 million in the same period a year earlier.  All segments of the Company contributed positively to the growth.  This increase was achieved while continuing to invest in developing operations in the UK and the US.  The operating losses related to these two initiatives in the current quarter were $1.5 million, $0.6 million higher than the losses incurred in the same quarter in the prior year.  These investments will continue to have a dampening effect on earnings in the short term, but are expected, over the long term, to improve future operating earnings.

Net gains in the current quarter were $10.8 million, compared to $1.0 million in the prior period, largely as a result of net gains realized within the investment funds consolidated by the Company.

Net earnings available to shareholders for the current quarter increased to $19.4 million, or $0.67 per share, compared to $8.9 million, or $0.30 per share a year earlier, resulting from the increased operating earnings and net gains, as described above.

The Company’s assets under management as at June 30, 2017 were $26.4 billion, an increase of 3% from $25.7 billion at June 30, 2016 but a decrease of 3% from $27.3 billion at the end of 2016.  Assets under administration at the end of the current quarter were $17.1 billion, an 11% increase from $15.4 billion at June 30, 2016, and up 4% from $16.5 billion at the end of 2016.

EBITDA for the current quarter was $13.5 million, or $0.46 per share, compared to $11.6 million, or $0.39 per share in 2016. Adjusted cash flow from operations for the current quarter was $10.9 million, or $0.37 per share, compared to $9.4 million, or $0.32 per share in 2016.

The Company’s shareholders’ equity as at June 30, 2017 was $603 million, or $20.54 per share, compared to $580 million, or $19.62 per share as at December 31, 2016 and $514 million, or $17.10 per share as at June 30, 2016. The Company’s securities as at June 30, 2017 were valued at $627 million, or $21.35 per share, compared to $620 million, or $20.97 per share, as at December 31, 2016 and $540 million, or $17.96 per share, as at June 30, 2016.

The Board of Directors has declared a quarterly eligible dividend of $0.10 per share, payable on October 18, 2017, to shareholders of record on October 11, 2017. 

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

         
Three months endedJune 30,
2017
March 31,
2017
December 31,
2016
September 30,
2016
June 30,
2016
March 31,
2016
December 31,
2015
September 30,
2015
($ in thousand, except per share amounts)
         
Net revenue$37,208 $38,618$38,240$35,185$34,191$35,070$34,353$33,188 
Operating earnings 12,160 12,458 12,371 10,646 10,300 11,350 10,256 10,876 
Net gains (losses) 10,783 17,589 10,754 10,057 1,028 16,778 9,658 (2,407)
Net earnings 19,638 25,518 19,859 17,475 9,169 24,072 17,362 6,278 
Net earnings available to shareholders 19,387 25,003 19,417 17,353 8,887 23,818 17,138 6,053 
Shareholders' equity 603,428 605,039 580,177 545,339 513,939 497,656 504,255 470,533 
         
         
Net earnings available to shareholders      
per Class A and Common share      
Basic$0.70 $0.91$0.69$0.61$0.31$0.83$0.59$0.21 
Diluted 0.67 0.86 0.65 0.58 0.30 0.79 0.56 0.20 
         
Shareholders' equity per Class A and      
Common share (1)       
Basic$21.75 $21.81$20.75$19.11$18.08$17.51$17.37$15.96 
Diluted 20.54 20.58 19.62 18.07 17.10 16.63 16.55 15.23 
         
Dividends paid$0.100$0.085$0.085$0.085$0.085$0.075$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.

(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 $19,638 for the three months ended June 30, 2017 (2016 - $9,169), and Net cash from operating activities, which was $14,541 for the three months ended June 30, 2017 (2016 - $13,294).  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. 

For further information, contact:

Donald Yi 
Chief Financial Officer
(416) 350-3136

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

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