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


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

     
For the periods ended September 30Three monthsNine 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 30December 31September 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 endedSep 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.