Guardian Capital Group Limited (TSX: GCG; 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) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
restated |
|
restated |
|
|
|
|
|
|
| Net
revenue |
$ |
62,611 |
|
$ |
48,434 |
|
$ |
178,937 |
|
$ |
150,314 |
|
|
Operating earnings |
|
18,474 |
|
|
10,419 |
|
|
46,752 |
|
|
35,330 |
|
| Net
losses |
|
(17,358 |
) |
|
(21,148 |
) |
|
(2,960 |
) |
|
(122,442 |
) |
| Net
earnings (loss) from continuing operations |
|
(2,270 |
) |
|
(11,582 |
) |
|
35,704 |
|
|
(84,821 |
) |
| Net
earnings (loss) from discontinued operations |
|
-- |
|
|
5,034 |
|
|
553,743 |
|
|
15,864 |
|
| Net
earnings (loss) |
|
(2,270 |
) |
|
(6,548 |
) |
|
589,447 |
|
|
(68,957 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA
(1) |
$ |
24,611 |
|
$ |
15,590 |
|
$ |
65,181 |
|
$ |
49,356 |
|
| Adjusted
cash flow from operations (1) |
|
21,568 |
|
|
17,034 |
|
|
55,568 |
|
|
43,511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to shareholders: |
|
|
|
|
| Net
earnings (loss) from continuing operations |
$ |
(2,506 |
) |
$ |
(11,780 |
) |
$ |
34,753 |
|
$ |
(86,187 |
) |
| Net
earnings (loss) |
|
(2,506 |
) |
|
(7,608 |
) |
|
496,242 |
|
|
(73,044 |
) |
| EBITDA
(1) |
|
23,985 |
|
|
14,801 |
|
|
62,683 |
|
|
46,362 |
|
| Adjusted
cash flow from operations (1) |
|
20,971 |
|
|
16,203 |
|
|
53,051 |
|
|
40,415 |
|
| Per
share amounts (diluted): |
|
|
|
|
| Net
earnings (loss) from continuing operations |
$ |
(0.11 |
) |
$ |
(0.49 |
) |
$ |
1.40 |
|
$ |
(3.53 |
) |
| Net
earnings (loss) |
|
(0.11 |
) |
|
(2.85 |
) |
|
19.40 |
|
|
(2.68 |
) |
| EBITDA
(1) |
|
1.02 |
|
|
0.61 |
|
|
2.49 |
|
|
1.90 |
|
| Adjusted
cash flow from operations (1) |
|
0.89 |
|
|
0.67 |
|
|
2.12 |
|
|
1.65 |
|
|
|
|
|
|
|
|
As at |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
| ($ in millions, except per
share amounts) |
|
September 30 |
September 30 |
|
|
|
|
|
Restated |
|
|
|
|
|
|
| Assets under management |
|
$ |
52,310 |
|
$ |
49,587 |
|
$ |
47,814 |
|
| Assets
under advisement |
|
|
3,905 |
|
|
3,716 |
|
|
3,787 |
|
|
|
|
|
|
|
| Total client assets |
|
|
56,215 |
|
|
53,303 |
|
|
51,601 |
|
|
|
|
|
|
|
| |
|
|
|
|
| Shareholders' equity |
|
$ |
1,201 |
|
$ |
768 |
|
$ |
743 |
|
| Securities |
|
|
1,276 |
|
|
660 |
|
|
651 |
|
| Per share amounts
(diluted): |
|
|
|
|
| Shareholders' equity (1) |
|
$ |
47.54 |
|
$ |
29.43 |
|
$ |
28.74 |
|
| Securities (1) |
|
|
50.49 |
|
|
25.31 |
|
|
25.16 |
|
|
|
|
|
|
|
The Company is reporting total clients assets of
$56.2 billion as at September 30, 2023, which include assets under
management and assets under advisement. This is a 5% increase from
$53.3 billion as at December 31, 2022, and a 9% increase from $51.6
billion reported as at September 30, 2022.
The Operating earnings were $18.5 million for
the quarter ended September 30, 2023, a 77% increase from $10.4
million in the same quarter in the prior year. The increase in
Operating earnings includes over $8.4 million in interest income
earned largely on the proceeds of disposition of the Worldsource
Business. EBITDA(1) was $24.6 million for the current
quarter, compared to $15.6 million in the same quarter in the prior
year.
As a reminder to the readers, with the Company’s
decision to sell the Worldsource Businesses, a financial measure
Net earnings from discontinued operations was introduced in the
fourth quarter of 2022. All revenues and expenses associated with
those businesses were netted 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.
Net revenue for the current quarter was $62.6
million, a 29% increase from $48.4 million in the same quarter in
the prior year. Increase was driven by the higher interest income
earned, as stated above, along with an increase in net management
and advisory fee revenue, consistent with the rise in total client
assets, including a full quarter’s net revenue contribution from
Rae & Lipskie in the current quarter compared to only one
month’s revenue in the comparative period. Operating expenses were
16% higher in the current quarter at $44.1 million, compared to
$38.0 million in the same period in the prior year. The increases
were largely the result of the full quarter’s inclusion of expenses
associated with Rae & Lipskie, increased interest expense due
to rise in interest rates, increased strategic investments into our
additional anticipated growth sources for the future, including
increased technology expenditures to support these businesses, and
the effects of bearing certain costs which were recovered from
Worldsource in prior periods.
Net losses in the current quarter were $17.4
million, compared to Net losses of $21.1 million in the same
quarter in the prior year, which largely reflect the changes in
fair values of the Company’s Securities portfolio, consistent with
performance of the global financial markets.
Net loss attributable to shareholders was $2.5
million in the current quarter, compared to $7.6 million in the
comparative period.
Adjusted cash flow from operations(1) for the
current quarter was $21.6 million, compared to $17.0 million in the
comparative period. During the current quarter, the Company
returned to shareholders $8.5 million in dividends and $8.3 million
in share buybacks.
The Company’s Shareholders’ equity as at
September 30, 2023 was $1,201 million, or $47.54 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 $0.34 per share, payable
on January 18, 2024, to shareholders of record on January 11,
2024.
The Company's financial results for the past eight quarters are
summarized in the following table.
|
|
Sep 30, 2023 |
Jun 30, 2023 |
Mar 31, 2023 |
Dec 31, 2022 |
Sep 30, 2022 |
Jun 30, 2022 |
Mar 31, 2022 |
Dec 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restated |
Restated |
Restated |
Restated |
Restated |
|
|
|
|
|
|
|
|
|
|
| As at ($
in millions) |
|
|
|
|
|
|
|
|
|
Assets under management |
$ |
52,310 |
|
$ |
52,754 |
|
$ |
52,261 |
|
$ |
49,587 |
|
$ |
47,814 |
|
$ |
46,931 |
|
$ |
53,123 |
|
$ |
56,341 |
|
| Assets
under advisement |
|
3,905 |
|
|
3,773 |
|
|
4,065 |
|
|
3,716 |
|
|
3,787 |
|
|
3,944 |
|
|
4,272 |
|
|
4,338 |
|
|
Total client assets |
|
56,215 |
|
|
56,527 |
|
|
56,326 |
|
|
53,303 |
|
|
51,601 |
|
|
50,875 |
|
|
57,395 |
|
|
60,679 |
|
|
|
|
|
|
|
|
|
|
|
| For the three
months ended ($ in thousands) |
|
|
|
|
|
|
| Net
revenue |
$ |
62,611 |
|
$ |
61,833 |
|
$ |
54,493 |
|
$ |
50,681 |
|
$ |
48,434 |
|
$ |
50,056 |
|
$ |
51,824 |
|
$ |
52,961 |
|
|
Operating earnings |
|
18,474 |
|
|
17,038 |
|
|
11,240 |
|
|
8,790 |
|
|
10,419 |
|
|
11,404 |
|
|
13,507 |
|
|
14,086 |
|
| Net
gains (losses) |
|
(17,358 |
) |
|
(3,736 |
) |
|
18,134 |
|
|
18,225 |
|
|
(21,148 |
) |
|
(91,545 |
) |
|
(9,749 |
) |
|
51,408 |
|
| Net
earnings (losses) from continuing operations |
|
(2,270 |
) |
|
11,532 |
|
|
26,442 |
|
|
25,249 |
|
|
(11,582 |
) |
|
(73,463 |
) |
|
224 |
|
|
57,909 |
|
| Net
earnings from discontinued operations |
|
-- |
|
|
-- |
|
|
553,743 |
|
|
6,386 |
|
|
5,034 |
|
|
5,239 |
|
|
5,591 |
|
|
6,542 |
|
| Net
earnings (losses) |
|
(2,270 |
) |
|
11,532 |
|
|
580,185 |
|
|
31,635 |
|
|
(6,548 |
) |
|
(68,224 |
) |
|
5,815 |
|
|
64,451 |
|
| Net
earnings (loss) from continuing operations attributable to
shareholders |
|
(2,506 |
) |
|
11,145 |
|
|
26,114 |
|
|
24,679 |
|
|
(11,780 |
) |
|
(74,053 |
) |
|
(353 |
) |
|
56,999 |
|
| Net
earnings (loss) attributable to shareholders |
|
(2,506 |
) |
|
11,145 |
|
|
487,603 |
|
|
29,961 |
|
|
(7,608 |
) |
|
(69,698 |
) |
|
4,262 |
|
|
62,422 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Per
share amounts (in $) |
|
|
|
|
|
|
|
|
| Net earnings
(loss) from continuing operations attributable to shareholders |
|
|
|
Basic |
$ |
(0.11 |
) |
$ |
0.47 |
|
$ |
1.09 |
|
$ |
1.02 |
|
$ |
(0.49 |
) |
$ |
(3.03 |
) |
$ |
(0.01 |
) |
$ |
2.30 |
|
|
Diluted |
|
(0.11 |
) |
|
0.45 |
|
|
1.02 |
|
|
0.96 |
|
|
(0.49 |
) |
|
(3.03 |
) |
|
(0.01 |
) |
|
2.15 |
|
| Net earnings
(loss) attributable to shareholders: |
|
|
|
|
|
|
|
Basic |
$ |
(0.11 |
) |
$ |
0.47 |
|
$ |
20.27 |
|
$ |
1.24 |
|
$ |
(0.31 |
) |
$ |
(2.85 |
) |
$ |
0.17 |
|
$ |
2.52 |
|
|
Diluted |
|
(0.11 |
) |
|
0.45 |
|
|
18.79 |
|
|
1.16 |
|
|
(0.31 |
) |
|
(2.85 |
) |
|
0.16 |
|
|
2.35 |
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid |
$ |
0.34 |
|
$ |
0.34 |
|
$ |
0.24 |
|
$ |
0.24 |
|
$ |
0.24 |
|
$ |
0.24 |
|
$ |
0.18 |
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| As
at |
|
|
|
|
|
|
|
|
|
Shareholders' equity ($ in millions) |
$ |
1,201 |
|
$ |
1,213 |
|
$ |
1,242 |
|
$ |
768 |
|
$ |
743 |
|
$ |
743 |
|
$ |
828 |
|
$ |
839 |
|
| Per
share amounts (in $) |
|
|
|
|
|
|
|
|
|
Basic |
$ |
50.90 |
|
$ |
51.11 |
|
$ |
52.42 |
|
$ |
31.84 |
|
$ |
30.82 |
|
$ |
30.68 |
|
$ |
33.67 |
|
$ |
33.89 |
|
|
Diluted |
|
47.54 |
|
|
47.63 |
|
|
48.73 |
|
|
29.43 |
|
|
28.88 |
|
|
28.74 |
|
|
31.27 |
|
|
31.53 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Class A and Common shares outstanding (shares in
thousands) |
|
25,408 |
|
|
25,609 |
|
|
26,113 |
|
|
26,246 |
|
|
26,246 |
|
|
26,342 |
|
|
26,892 |
|
|
26,954 |
|
|
|
|
|
|
|
|
|
|
|
Guardian Capital Group Limited (Guardian) is a
global investment management company servicing institutional,
retail and private 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, military
conflicts in various parts of the world, 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 measures are as follows:
|
For the periods ended September 30, |
Three months |
|
|
($ in thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
restated |
|
restated |
|
|
|
|
|
|
| Net
earnings (loss) |
$ |
(2,270 |
) |
$ |
(6,548 |
) |
$ |
589,447 |
|
$ |
(68,957 |
) |
| Add
(deduct): |
|
|
|
|
| Net
earnings from discontinued operations |
|
-- |
|
|
(5,034 |
) |
|
(553,743 |
) |
|
(15,864 |
) |
| Income
tax expense (recovery) |
|
3,386 |
|
|
853 |
|
|
8,088 |
|
|
(2,291 |
) |
| Net
(gains) losses |
|
17,358 |
|
|
21,148 |
|
|
2,960 |
|
|
122,442 |
|
|
Stock-based compensation |
|
875 |
|
|
1,007 |
|
|
2,712 |
|
|
2,695 |
|
| Interest
expense |
|
1,918 |
|
|
1,212 |
|
|
5,900 |
|
|
2,517 |
|
|
Amortization |
|
3,344 |
|
|
2,952 |
|
|
9,817 |
|
|
8,814 |
|
|
EBITDA |
|
24,611 |
|
|
15,590 |
|
|
65,181 |
|
|
49,356 |
|
| Less
attributable to non-controlling interests in continuing
operations |
|
(626 |
) |
|
(789 |
) |
|
(2,498 |
) |
|
(2,994 |
) |
|
EBITDA attributable to shareholders |
$ |
23,985 |
|
$ |
14,801 |
|
$ |
62,683 |
|
$ |
46,362 |
|
|
|
|
|
|
|
|
For the periods ended September 30, |
Three months |
|
|
($ in thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
restated |
|
restated |
|
|
|
|
|
|
| Net cash
from operating activities |
$ |
29,072 |
|
$ |
25,954 |
|
$ |
54,141 |
|
$ |
52,935 |
|
| Add
(deduct): |
|
|
|
|
| Net cash
from operating activities, discontinued operations |
|
-- |
|
|
(12,192 |
) |
|
(10,087 |
) |
|
(13,055 |
) |
| Net
change in non-cash working capital items |
|
(7,504 |
) |
|
(8,211 |
) |
|
1,801 |
|
|
3,242 |
|
| Net
change in non-cash working capital items, discontinued
operations |
|
-- |
|
|
11,483 |
|
|
9,713 |
|
|
389 |
|
|
Adjusted cash flow from operations |
|
21,568 |
|
|
17,034 |
|
|
55,568 |
|
|
43,511 |
|
| Less
attributable to non-controlling interests, continuing
operations |
|
(597 |
) |
|
(831 |
) |
|
(2,517 |
) |
|
(3,096 |
) |
|
Adjusted cash flow from operations attributable to
shareholders |
$ |
20,971 |
|
$ |
16,203 |
|
$ |
53,051 |
|
$ |
40,415 |
|
|
|
|
|
|
|
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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Guardian Capital (TSX:GCG)
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From Apr 2023 to Apr 2024
