All per share figures disclosed below are stated
on a diluted basis.
|
|
|
|
|
|
|
For the periods ended June 30, |
Three months |
|
Six months |
|
|
($ in thousands, except per share amounts) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
2022 |
|
|
|
|
restated |
|
restated |
|
|
|
|
|
|
| Net
revenue |
$ |
61,833 |
|
$ |
50,056 |
|
$ |
116,326 |
$ |
101,878 |
|
|
Operating earnings |
|
17,038 |
|
|
11,404 |
|
|
28,278 |
|
24,910 |
|
| Net
gains (losses) |
|
(3,736 |
) |
|
(91,545 |
) |
|
14,398 |
|
(101,294 |
) |
| Net
earnings (loss) from continuing operations |
|
11,532 |
|
|
(73,463 |
) |
|
37,974 |
|
(73,239 |
) |
| Net
earnings from discontinued operations |
|
-- |
|
|
5,239 |
|
|
553,743 |
|
10,830 |
|
| Net
earnings (loss) |
|
11,532 |
|
|
(68,224 |
) |
|
591,717 |
|
(62,409 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA
(1) |
$ |
23,199 |
|
$ |
16,158 |
|
$ |
40,570 |
$ |
33,661 |
|
| Adjusted
cash flow from operations (1) |
|
15,903 |
|
|
9,699 |
|
|
34,000 |
|
26,477 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to shareholders: |
|
|
|
|
| Net
earnings (loss) from continuing operations |
$ |
11,145 |
|
$ |
(74,053 |
) |
$ |
37,259 |
$ |
(74,406 |
) |
| Net
earnings (loss) |
|
11,145 |
|
|
(69,698 |
) |
|
498,748 |
|
(65,436 |
) |
| EBITDA
(1) |
|
22,303 |
|
|
15,040 |
|
|
38,698 |
|
31,456 |
|
| Adjusted
cash flow from operations (1) |
|
14,967 |
|
|
8,577 |
|
|
32,080 |
|
24,212 |
|
| Per
share amounts (diluted): |
|
|
|
|
| Net
earnings (loss) from continuing operations |
$ |
0.45 |
|
$ |
(3.03 |
) |
$ |
1.48 |
$ |
(3.04 |
) |
| Net
earnings (loss) |
|
0.45 |
|
|
(2.85 |
) |
|
19.45 |
|
(2.68 |
) |
| EBITDA
(1) |
|
0.89 |
|
|
0.57 |
|
|
1.54 |
|
1.19 |
|
| Adjusted
cash flow from operations (1) |
|
0.60 |
|
|
0.33 |
|
|
1.28 |
|
0.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
| ($ in
millions, except per share amounts) |
|
June 30 |
December 31 |
June 30 |
|
|
|
|
|
Restated |
|
|
|
|
|
|
| Assets
under management |
|
$ |
52,754 |
|
$ |
49,587 |
|
$ |
46,931 |
|
|
Assets under advisement |
|
|
3,773 |
|
|
3,716 |
|
|
3,944 |
|
|
|
|
|
|
|
| Total
client assets |
|
|
56,527 |
|
|
53,303 |
|
|
50,875 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
$ |
1,213 |
|
$ |
768 |
|
$ |
743 |
|
|
Securities |
|
|
1,274 |
|
|
660 |
|
|
651 |
|
| Per
share amounts (diluted): |
|
|
|
|
|
Shareholders' equity (1) |
|
$ |
47.63 |
|
$ |
29.43 |
|
$ |
28.74 |
|
|
Securities (1) |
|
|
50.05 |
|
|
25.31 |
|
|
25.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company is reporting Operating earnings of
$17.0 million for the quarter ended June 30, 2023, a 49% increase
from $11.4 million in the same quarter in the prior year. The
increase in Operating earnings includes over $7.0 million in
interest income earned on the proceeds of disposition of
Worldsource and this had the most significant impact on the growth
in Operating earnings.
EBITDA(1) and EBITDA attributable to
shareholders(1) were $23.2 million and $22.3 million in the current
quarter, compared to $16.2 million and $15.0 million in the
comparative period.
As a reminder to the readers, with Guardian’s
decision to dispose of the Worldsource Businesses, a financial
measure Net earnings from discontinued operations was introduced in
a prior period. All revenues and expenses associated with that
business was netting into this one line. The Net earnings from the
remaining businesses is presented as Net earnings from continuing
operations. As a result, the comparative periods have been restated
to reflect this presentation format.
The Company’s total client assets as at June 30,
2023, were $56.5 billion, which include assets under management and
assets under advisement. This is a 6% increase from $53.3 billion
as at December 31, 2022, and an 11% increase from $50.9 billion
reported as at June 30, 2022.
Net revenue for the current quarter was $61.8
million, a 24% increase from $50.1 million in the same quarter in
the prior year. Interest income of over $7 million earned on the
proceeds from the sale of the Worldsource Businesses was the
biggest driver of the increase. Net management and advisory fee
revenue increased by $3.4 million in the current quarter to $45.5
million, and this is partially due to the addition of RaeLipskie,
which was acquired on September 1, 2022. Operating expenses were
16% higher in the current quarter at $44.8 million, due to the
inclusion of expenses associated with RaeLipskie, increase in
interest expense due to rise in interest rates, increased marketing
and travel costs, the effects of bearing certain costs which were
recovered from Worldsource in prior periods and increased strategic
investments into our additional anticipated growth sources for the
future, which includes the Canadian Retail Asset Management team,
the Guardian Smart Infrastructure team, and Guardian Partners
Inc.
Net losses in the current quarter were $3.7
million, compared to Net losses of $91.5 million in the same
quarter in the prior year, both largely consistent with performance
of the global equity markets.
Net earnings attributable to shareholders were
$11.1 million in the current quarter and Net loss of $69.7 million
in the comparative period. The quantum of Net losses in each of the
periods were the greatest driver of this measure.
Adjusted cash flow from operations(1) and
Adjusted cash flow from operations attributable to shareholders(1)
for the current quarter were $15.9 million and $15.0 million,
respectively, compared to $9.7 million and $8.6 million,
respectively, in the comparative period. During the current
quarter, the Company returned to shareholders $8.6 million in
dividends and $21.8 million in share buybacks.
The Company’s Shareholders’ equity as at June
30, 2023 was $1,213 million, or $47.63 per share(1), compared to
$768 million, or $29.43 per share(1) as at December 31, 2022.
The Board of Directors is pleased to have
declared a quarterly eligible dividend of $0.34 per share, payable
on October 18, 2023, to shareholders of record on October 11,
2023.
The Company's financial results for the past eight quarters are
summarized in the following table.
|
|
|
|
|
|
|
|
|
|
|
|
Jun 30, 2023 |
Mar 31, 2023 |
Dec 31, 2022 |
Sep 30, 2022 |
Jun 30, 2022 |
Mar 31, 2022 |
Dec 31, 2021 |
Sep 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restated |
Restated |
Restated |
Restated |
Restated |
|
|
|
|
|
|
|
|
|
|
| As at ($
in millions) |
|
|
|
|
|
|
|
|
|
Assets under management |
$ |
52,754 |
|
$ |
52,261 |
|
$ |
49,587 |
|
$ |
47,814 |
|
$ |
46,931 |
|
$ |
53,123 |
|
$ |
56,341 |
|
$ |
53,113 |
|
| Assets
under advisement |
|
3,773 |
|
|
4,065 |
|
|
3,716 |
|
|
3,788 |
|
|
3,944 |
|
|
4,272 |
|
|
4,338 |
|
|
5,061 |
|
|
Total client assets |
|
56,527 |
|
|
56,326 |
|
|
53,303 |
|
|
51,602 |
|
|
50,875 |
|
|
57,395 |
|
|
60,679 |
|
|
58,174 |
|
|
|
|
|
|
|
|
|
|
|
| For the three
months ended ($ in thousands) |
|
|
|
|
|
|
| Net
revenue |
$ |
61,833 |
|
$ |
54,493 |
|
$ |
50,681 |
|
$ |
48,434 |
|
$ |
50,056 |
|
$ |
51,824 |
|
$ |
52,961 |
|
$ |
50,873 |
|
|
Operating earnings |
|
17,038 |
|
|
11,240 |
|
|
8,790 |
|
|
10,419 |
|
|
11,404 |
|
|
13,507 |
|
|
14,086 |
|
|
15,385 |
|
| Net
gains (losses) |
|
(3,736 |
) |
|
18,134 |
|
|
18,225 |
|
|
(21,148 |
) |
|
(91,545 |
) |
|
(9,749 |
) |
|
51,408 |
|
|
(8,960 |
) |
| Net
earnings (losses) from continuing operations |
|
11,532 |
|
|
26,442 |
|
|
25,249 |
|
|
(11,582 |
) |
|
(73,463 |
) |
|
224 |
|
|
57,909 |
|
|
4,005 |
|
| Net
earnings from discontinued operations |
|
-- |
|
|
553,743 |
|
|
6,386 |
|
|
5,034 |
|
|
5,239 |
|
|
5,591 |
|
|
6,542 |
|
|
4,592 |
|
| Net
earnings (losses) |
|
11,532 |
|
|
580,185 |
|
|
31,635 |
|
|
(6,548 |
) |
|
(68,224 |
) |
|
5,815 |
|
|
64,451 |
|
|
8,597 |
|
| Net
earnings (loss) from continuing operations attributable to
shareholders |
|
11,145 |
|
|
26,114 |
|
|
24,679 |
|
|
(11,780 |
) |
|
(74,053 |
) |
|
(353 |
) |
|
56,999 |
|
|
3,268 |
|
| Net
earnings (loss) attributable to shareholders |
|
11,145 |
|
|
487,603 |
|
|
29,961 |
|
|
(7,608 |
) |
|
(69,698 |
) |
|
4,262 |
|
|
62,422 |
|
|
7,054 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Per
share amounts (in $) |
|
|
|
|
|
|
|
|
| Net earnings
(loss) from continuing operations attributable to shareholders |
|
|
|
Basic |
$ |
0.47 |
|
$ |
1.09 |
|
$ |
1.02 |
|
$ |
(0.49 |
) |
$ |
(3.03 |
) |
$ |
(0.01 |
) |
$ |
2.30 |
|
$ |
0.13 |
|
|
Diluted |
|
0.45 |
|
|
1.02 |
|
|
0.96 |
|
|
(0.49 |
) |
|
(3.03 |
) |
|
(0.01 |
) |
|
2.15 |
|
|
0.12 |
|
| Net earnings
(loss) attributable to shareholders: |
|
|
|
|
|
|
|
Basic |
$ |
0.47 |
|
$ |
20.27 |
|
$ |
1.24 |
|
$ |
(0.31 |
) |
$ |
(2.85 |
) |
$ |
0.17 |
|
$ |
2.52 |
|
$ |
0.28 |
|
|
Diluted |
|
0.45 |
|
|
18.79 |
|
|
1.16 |
|
|
(0.31 |
) |
|
(2.85 |
) |
|
0.16 |
|
|
2.35 |
|
|
0.27 |
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid |
$ |
0.34 |
|
$ |
0.24 |
|
$ |
0.24 |
|
$ |
0.24 |
|
$ |
0.24 |
|
$ |
0.18 |
|
$ |
0.18 |
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| As
at |
|
|
|
|
|
|
|
|
|
Shareholders' equity ($ in millions) |
$ |
1,213 |
|
$ |
1,242 |
|
$ |
768 |
|
$ |
743 |
|
$ |
743 |
|
$ |
828 |
|
$ |
839 |
|
$ |
781 |
|
| Per
share amounts (in $) |
|
|
|
|
|
|
|
|
|
Basic |
$ |
51.11 |
|
$ |
52.42 |
|
$ |
31.84 |
|
$ |
30.82 |
|
$ |
30.68 |
|
$ |
33.67 |
|
$ |
33.89 |
|
$ |
31.56 |
|
|
Diluted |
|
47.63 |
|
|
48.73 |
|
|
29.43 |
|
|
28.88 |
|
|
28.74 |
|
|
31.27 |
|
|
31.53 |
|
|
29.40 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Class A and Common shares outstanding (shares in
thousands) |
|
25,609 |
|
|
26,113 |
|
|
26,246 |
|
|
26,246 |
|
|
26,342 |
|
|
26,892 |
|
|
26,954 |
|
|
26,968 |
|
|
|
|
|
|
|
|
|
|
|
Guardian Capital Group Limited (Guardian) is a
global financial services company providing extensive investment
management services to institutional, retail and private high and
ultra-high-net worth clients through its subsidiaries. It also
manages a proprietary portfolio of securities. Founded in 1962,
Guardian’s reputation for steady growth, long-term relationships
and its core values of trustworthiness, integrity and stability
have been key to its success over six decades. Its Common and Class
A shares are listed on the Toronto Stock Exchange as GCG and GCG.A,
respectively. To learn more about Guardian, visit
www.guardiancapital.com.
| For further information, contact: |
|
|
| |
|
|
| Donald YiChief Financial Officer(416) 350-3136 |
|
George MavroudisPresident and Chief Executive Officer(416)
364-8341 |
| |
|
|
| Investor Relations:
investorrelations@guardiancapital.com. |
Caution
Concerning Forward-Looking Information
Certain information
included in this press release constitutes forward-looking
information within the meaning of applicable Canadian securities
laws. All information other than statements of historical fact may
be forward-looking information. Forward-looking information is
often, but not always, identified by the use of forward-looking
terminology such as “outlook”, “objective”, “may”, “will”, “would”,
“expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”,
“plan”, “continue”, or similar expressions suggesting future
outcomes or events or the negative thereof. Forward-looking
information in this press release includes, but is not limited to,
statements with respect to management’s beliefs, plans, estimates,
and intentions, and similar statements concerning anticipated
future events, results, circumstances, performance or expectations.
Such forward-looking information reflects management’s beliefs and
is based on information currently available. All forward-looking
information in this press release is qualified by the following
cautionary statements.
Although the Company
believes that the expectations reflected in such forward-looking
information are reasonable, such information involves known and
unknown risks and uncertainties which may cause the Company’s
actual performance and results in future periods to differ
materially from any estimates or projections of future performance
or results expressed or implied by such forward-looking
information. Important factors that could cause actual results to
differ materially include but are not limited to: general economic
and market conditions, including interest rates, business
competition, changes in government regulations or in tax laws, the
outbreak and severity of pandemics, such as COVID 19, the ongoing
conflict in the Ukraine, as well as those risk factors discussed or
referred to in the disclosure documents filed by the Company with
the securities regulatory authorities in certain provinces of
Canada and available at www.sedar.com. The reader is cautioned to
consider these factors, uncertainties and potential events
carefully and not to put undue reliance on forward-looking
information, as there can be no assurance that actual results will
be consistent with such forward-looking information.
The forward-looking
information included in this press release is made as of the date
of this press release and should not be relied upon as representing
the Company’s views as of any date subsequent to the date of this
press release.
(1) Non IFRS MeasuresThe Company's management
uses EBITDA, EBITDA attributable to shareholders, including the per
share amount, Adjusted cash flows from operations, Adjusted cash
flow from operations attributable to shareholders, including the
per share amount, 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, and stock-based compensation expenses, net
gains or losses and net earnings from discontinued operations.
EBITDA attributable shareholders as EBITDA less the 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
cash flows from discontinued operations. Adjusted cash flow from
operations attributable to shareholders as Adjusted cash flow from
operations less the amounts attributable to non-controlling
interests. A reconciliation between these measures and the most
comparable IFRS measure are as follows:
|
|
|
|
|
|
|
For the periods ended June 30, |
Three months |
|
|
($ in thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
restated |
|
restated |
|
|
|
|
|
|
| Net
earnings (loss) |
$ |
11,532 |
|
$ |
(68,224 |
) |
$ |
591,717 |
|
$ |
(62,409 |
) |
| Add
(deduct): |
|
|
|
|
| Net
earnings from discontinued operations |
|
-- |
|
|
(5,239 |
) |
|
(553,743 |
) |
|
(10,830 |
) |
| Income
tax expense (recovery) |
|
1,770 |
|
|
(6,678 |
) |
|
4,702 |
|
|
(3,145 |
) |
| Net
(gains) losses |
|
3,736 |
|
|
91,545 |
|
|
(14,398 |
) |
|
101,294 |
|
|
Stock-based compensation |
|
921 |
|
|
921 |
|
|
1,837 |
|
|
1,583 |
|
| Interest
expense |
|
2,053 |
|
|
760 |
|
|
3,982 |
|
|
1,305 |
|
|
Amortization |
|
3,187 |
|
|
3,073 |
|
|
6,473 |
|
|
5,863 |
|
|
EBITDA |
|
23,199 |
|
|
16,158 |
|
|
40,570 |
|
|
33,661 |
|
| Less
attributable to non-controlling interests in continuing
operations |
|
(896 |
) |
|
(1,118 |
) |
|
(1,872 |
) |
|
(2,205 |
) |
|
EBITDA attributable to shareholders |
$ |
22,303 |
|
$ |
15,040 |
|
$ |
38,698 |
|
$ |
31,456 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the periods ended June 30, |
Three months |
|
|
($ in thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
restated |
|
restated |
|
|
|
|
|
|
| Net cash
from operating activities |
$ |
14,882 |
|
$ |
27,673 |
|
$ |
25,069 |
|
$ |
26,981 |
|
| Add
(deduct): |
|
|
|
|
| Net cash
from operating activities, discontinued operations |
|
-- |
|
|
8,985 |
|
|
(10,087 |
) |
|
(863 |
) |
| Net
change in non-cash working capital items |
|
1,021 |
|
|
(9,188 |
) |
|
9,305 |
|
|
11,453 |
|
| Net
change in non-cash working capital items, discontinued
operations |
|
-- |
|
|
(17,771 |
) |
|
9,713 |
|
|
(11,094 |
) |
|
Adjusted cash flow from operations |
|
15,903 |
|
|
9,699 |
|
|
34,000 |
|
|
26,477 |
|
| Less
attributable to non-controlling interests, continuing
operations |
|
(936 |
) |
|
(1,122 |
) |
|
(1,920 |
) |
|
(2,265 |
) |
|
Adjusted cash flow from operations attributable to
shareholders |
$ |
14,967 |
|
$ |
8,577 |
|
$ |
32,080 |
|
$ |
24,212 |
|
|
|
|
|
|
|
The per share amounts for EBITDA attributable to
shareholders, Adjusted cash flow from operations attributable to
shareholders, Shareholders' equity and Securities are calculated by
dividing the amounts by diluted shares, which Is calculated in a
manner similar to net earnings attributable to shareholders per
share. More detailed descriptions of these non-IFRS measures are
provided in the Company's Management's Discussion and Analysis,
including a reconciliation of these measures to their most
comparable IFRS measures.
Guardian Capital (TSX:GCG)
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