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.
Donald Yi
Chief Financial Officer
(416) 350-3136
Guardian Capital Group Limited
George Mavroudis
President and Chief Executive Officer
(416) 364-8341