Guardian Capital Group Limited
TSX : GCG
TSX : GCG.A

Guardian Capital Group Limited

November 10, 2014 16:32 ET

Guardian Capital Group Limited (TSX: GCG; GCG.A) Announces 2014 Third Quarter Operating Results

TORONTO, ONTARIO--(Marketwired - Nov. 10, 2014) - Guardian Capital Group Limited (TSX:GCG)(TSX:GCG.A) -

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) 2014 2013 2014 2013
Net revenue $ 30,806 $ 25,173 $ 87,785 $ 73,371
Operating earnings 10,051 6,898 27,806 18,367
Net gains (losses) (12) 3,183 6,372 4,419
Net earnings before net gains (losses) on securities held for sale 8,033 8,602 28,723 19,922
Net gains (losses) on securities held for sale (156) 432 452 (296)
Net earnings available to shareholders 7,715 8,946 28,794 19,452
EBITDA $ 11,251 $ 8,176 $ 31,458 $ 22,506
Adjusted cash flow from operations 9,882 7,128 26,398 18,719
Per Share
Net earnings before net gains (losses) on securities held for sale $ 0.25 $ 0.27 $ 0.91 $ 0.64
Net earnings available to shareholders 0.25 0.29 0.92 0.63
EBITDA 0.36 0.26 1.01 0.73
Adjusted cash flow from operations 0.32 0.23 0.85 0.61
As at September 30, June 30, December 31, September 30,
($ in millions, except per share amounts) 2014 2014 2013 2013
Assets under management $ 25,039 $ 24,601 $ 22,228 $ 21,201
Assets under administration 12,849 12,732 11,559 10,790
Fair value of corporate holdings of securities 525 497 449 433
Shareholders' equity 482 463 415 394
Per Share
Fair value of corporate holdings of securities $ 16.75 $ 15.78 $ 14.26 $ 13.76
Shareholders' equity 15.39 14.72 13.17 12.51

The Company's assets under management ("AUM") as at September 30, 2014 grew to $25.0 billion, an increase of 1.8% since June 30, 2014 and 18.1% since September 30, 2013. Assets under administration ("AUA") were $12.8 billion as at September 30, 2014, an increase of 0.9% since June 30, 2014 and 19.1% since September 30, 2013.

The Company's operating earnings for the current quarter were $10.1 million, a 45.7% increase from $6.9 million in the same quarter in 2013. All segments of the Company's operations continued to contribute positively to the overall growth in operating earnings.

Net gains (losses) in the current quarter decreased by $3.2 million from the same period in 2013.

Net earnings available to shareholders for the quarter were $7.7 million ($0.25 per share), a 13.8% decrease from $8.9 million ($0.29 per share) in the same quarter in 2013. The decrease in net earnings available to shareholders was due to increase in operating earnings being offset by the decrease in net gains.

EBITDA for the quarter was $11.3 million ($0.36 per share), compared to $8.2 million ($0.26 per share) in the same quarter in 2013. Adjusted cash flow from operations for the quarter was $9.9 million ($0.32 per share), compared to $7.1 million ($0.23 per share) in the same quarter in 2013. These two non-IFRS financial measures used by the Company are defined in its quarterly Management's Discussion and Analysis. The increases in each of these measures reflect the strong growth in operating earnings for the quarter.

The fair value of the Company's holdings of securities as at September 30, 2014 was $525 million, or $16.75 per share, compared to $449 million, or $14.26 per share, as at December 31, 2013 and $433 million, or $13.76 per share, as at September 30, 2013. The Company's shareholders' equity as at September 30, 2014 was $482 million, or $15.39 per share, compared to $415 million, or $13.17 per share, at December 31, 2013 and $394 million, or $12.51 per share, as at September 30, 2013.

The Board of Directors has declared a quarterly dividend of $0.065 per share, payable on January 19, 2015, to shareholders of record on January 12, 2015.

Guardian Capital Group Limited is a diversified financial services company founded in 1962. Guardian 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.

The following chart summarizes Guardian's financial results for the past eight quarters.

Quarters ended Sep 30, Jun 31, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,
($ in thousands, except for per 2014 2014 2014 2013 2013 2013 2013 2012
share amounts)
Net revenue $ 30,806 $ 29,257 $ 27,722 $ 27,907 $ 25,173 $ 25,041 $ 23,157 $ 24,146
Operating earnings 10,051 9,199 8,556 8,564 6,898 6,390 5,079 5,791
Net gains (losses) (12) 2,737 3,647 7,218 3,183 666 570 (144)
Net earnings before net gains (losses) on securities held for sale 8,033 10,066 10,624 14,879 8,602 6,255 5,065 4,938
Net gains (losses) on securities held for sale (156) 222 386 238 432 (1,243) 515 1,084
Net earnings available to shareholders 7,715 10,163 10,916 14,980 8,946 4,963 5,543 5,915
Shareholders' equity 482,242 463,306 438,363 414,985 393,670 354,622 366,519 353,756
Per average Class A and Common Share
Net earnings before net gains (losses) on securities held for sale:
- Basic $ 0.26 $ 0.33 $ 0.35 $ 0.48 $ 0.28 $ 0.20 $ 0.16 $ 0.16
- Diluted 0.25 0.32 0.34 0.47 0.27 0.20 0.16 0.15
Net earnings:
- Basic $ 0.26 $ 0.34 $ 0.36 $ 0.49 $ 0.29 $ 0.16 $ 0.18 $0.19
- Diluted 0.25 0.33 0.35 0.48 0.29 0.16 0.18 0.19
Shareholders' equity:
- Basic $ 16.08 $ 15.34 $ 14.49 $ 13.68 $ 12.94 $ 11.64 $ 11.97 $ 11.44
- Diluted 15.39 14.72 13.93 13.17 12.51 11.27 11.59 11.59

Contact Information

  • Donald Yi
    Chief Financial Officer
    (416) 350-3136

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