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

Guardian Capital Group Limited

May 12, 2016 16:31 ET

Guardian Capital Group Limited (TSX: GCG; GCG.A) Announces 2016 First Quarter Operating Results

TORONTO, ONTARIO--(Marketwired - May 12, 2016) - Guardian Capital Group Limited (TSX:GCG)(TSX:GCG.A) -

TO OUR SHAREHOLDERS:

We present below a summary of the Company's operating results for the three months ended March 31, 2016. All per share figures disclosed below are stated on a diluted basis.

For the three months ended March 31
($ in thousands, except per share amounts)
2016 2015
Net revenue $ 35,070 $ 32,304
Operating earnings 11,350 10,476
Net gains 16,778 3,187
Net earnings available to shareholders 23,818 11,310
EBITDA(1) $ 12,478 $ 11,560
Adjusted cash flow from operations(1) 9,583 8,141
Per Share:
Net earnings available to shareholders $ 0.79 $ 0.37
EBITDA(1) 0.42 0.38
Adjusted cash flow from operations(1) 0.32 0.27
As at 2016 2015
($ in millions, except per share amounts) March 31 December 31 March 31
Assets under management $ 24,817 $ 24,278 $ 26,093
Assets under administration 14,987 14,943 14,057
Shareholders' equity 498 504 478
Fair value of corporate holdings of securities 534 540 522
Per share:
Shareholders' equity $ 16.63 $ 16.55 $ 15.42
Fair value of corporate holdings of securities 17.84 17.72 16.86

Summary

The Company's assets under management as at March 31, 2016, were $24.8 billion, an increase of 2% from $24.3 billion at the end of 2015 and a decrease of 5% from $26.1 billion at March 31, 2015. Assets under administration were $15.0 billion at the end of the current quarter, up marginally from $14.9 billion at the end of 2015 and a 7% increase from $14.1 billion at March 31, 2015.

The Company's operating earnings of $11.4 million for the quarter ended March 31, 2016 increased by 8% from $10.5 million in the first quarter of 2015. The resilience of these operating earnings during the volatile and challenging equity market conditions in the first quarter is reflective of its diverse earnings sources.

Net gains of $16.8 million in the current quarter increased $13.6 million from $3.2 million in the first quarter of 2015. The current quarter includes a gain of $13.6 million on the sale of 342,400 of the Bank of Montreal shares.

Net earnings available to shareholders for the current quarter were $23.8 million ($0.79 per share), a $12.5 million increase compared to $11.3 million ($0.37 per share) in the first quarter of 2015, resulting from the growth in operating earnings and the increase in net gains described above.

EBITDA(1) for the current quarter was $12.5 million, or $0.42 per share, compared to $11.6 million, or $0.38 per share in 2015. Adjusted cash flow from operations(1) for the current quarter was $9.6 million, or $0.32 per share, compared to $8.1 million, or $0.27 per share in 2015. The increases in each of these measures reflect the growth in operating earnings for the year and the positive effects of the share buybacks.

The Company's shareholders' equity as at March 31, 2016 was $498 million or $16.63 per share, compared to $504 million, or $16.55 per share at December 31, 2015 and $478 million, or $15.42 per share as at March 31, 2015. The fair value of the Company's holdings of securities as at March 31, 2016 was $534 million, or $17.84 per share, compared to $540 million, or $17.72 per share as at December 31, 2015 and $522 million, or $16.86 per share as at March 31, 2015.

The Board of Directors has declared a quarterly eligible dividend of $0.085 per share, payable on July 18, 2016, to shareholders of record on July 11, 2016.

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

Quarters ended
($ in thousands, except for per share amounts)
Mar 31,
2016
Dec 31,
2015
Sep 30,
2015
Jun 30,
2015
Mar 31,
2015
Dec 31,
2014
Sep 30,
2014
Jun 30,
2014
Net revenue $ 35,070 $ 34,353 $ 33,188 $ 33,066 $ 32,304 $ 31,490 $ 30,806 $ 29,257
Operating earnings 11,350 10,256 10,876 11,390 10,476 10,335 10,051 9,199
Net gains (losses) 16,778 9,658 (2,407 ) 602 3,187 311 (168 ) 2,959
Net earnings 24,072 17,362 6,278 9,786 11,551 8,438 7,877 10,288
Net earnings available to shareholders 23,818 17,138 6,053 9,604 11,310 8,223 7,715 10,163
Shareholders' equity 497,656 504,255 470,533 473,944 477,901 488,835 482,242 463,306
Per average Class A and Common Share
Net earnings:
- Basic $ 0.83 $ 0.59 $ 0.21 $ 0.33 $ 0.38 $ 0.27 $ 0.26 $ 0.34
- Diluted 0.79 0.56 0.20 0.31 0.37 0.27 0.25 0.33
Shareholders' equity:
- Basic $ 17.51 $ 17.37 $ 15.96 $ 16.08 $ 16.15 $ 16.33 $ 16.08 $ 15.34
- Diluted 16.63 16.55 15.23 15.32 15.42 15.62 15.39 14.72

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.

(1) The Company's management uses EBITDA and Adjusted cash flow from operations to evaluate and assess the performance of its business. These two measures do not have standardized measures under International Financial Reporting Standards ("IFRS"), and are therefore unlikely to be strictly 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 and net gains or losses, less amounts attributable to non-controlling interest. The Company defines Adjusted cash flow from operations as Net cash from operating activities, before net of changes in non-cash working capital items and net of non-controlling interests. The most comparable IFRS measures are Net earnings, which were $24,072 (2015 - $11,551) and Net cash from operating activities, which was $4,450 (2015 - $(1,804)). More detailed descriptions of these two 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.

Contact Information

  • Guardian Capital Group Limited
    Donald Yi
    Chief Financial Officer
    (416) 350-3136

    Guardian Capital Group Limited
    George Mavroudis
    President and Chief Executive Officer
    (416) 364-8341