TORONTO, ONTARIO--(Marketwired - Aug. 11, 2016) - 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 June 30 ($ in thousands, except per share amounts) |
|
2016 |
|
Three Months 2015 |
|
2016 |
|
Six Months 2015 |
|
| Net revenues | $ | 34,191 | $ | 33,066 | $ | 69,261 | $ | 65,370 | |
| Operating earnings | 10,300 | 11,390 | 21,650 | 21,866 | |||||
| Net gains | 1,028 | 602 | 17,806 | 3,789 | |||||
| Net earnings available to shareholders | 8,887 | 9,604 | 32,705 | 20,914 | |||||
| EBITDA(1) | $ | 11,607 | $ | 12,654 | $ | 24,085 | $ | 24,214 | |
| Adjusted cash flow from operations(1) | 9,435 | 10,544 | 19,018 | 18,685 | |||||
| Per Share: | |||||||||
| Net earnings available to shareholders | 0.30 | 0.31 | 1.09 | 0.68 | |||||
| EBITDA(1) | 0.39 | 0.41 | 0.80 | 0.79 | |||||
| Adjusted cash flow from operations(1) | 0.32 | 0.34 | 0.64 | 0.61 | |||||
| As at ($ in millions, except per share amounts) | June 30, 2016 |
March 31, 2016 |
December 31, 2015 |
June 30, 2015 |
|||||
| Assets under management | $ | 25,654 | $ | 24,817 | $ | 24,278 | $ | 25,007 | |
| Assets under administration | 15,425 | 14,987 | 14,943 | 14,821 | |||||
| Shareholders' equity | 514 | 498 | 504 | 474 | |||||
| Corporate holdings of securities | 540 | 534 | 540 | 515 | |||||
| Per Share: | |||||||||
| Shareholders' equity | $ | 17.10 | $ | 16.63 | $ | 16.55 | $ | 15.32 | |
| Corporate holdings of securities | 17.96 | 17.84 | 17.72 | 16.64 | |||||
The Company's assets under management as at June 30, 2016, were $25.7 billion, an increase of 6% from $24.3 billion at the end of 2015 and an increase of 3% from $25.0 billion at June 30, 2015. Assets under administration were $15.4 billion at the end of the current quarter, up 3% from $14.9 billion at the end of 2015 and a 4% increase from $14.8 billion at June 30, 2015.
The Company's operating earnings for the quarter ended June 30, 2016 was $10.3 million, compared to $11.4 million in the same period one year earlier. The decrease in operating earnings this quarter is reflective of the Company's strategic decision to reinvest in the business in the form of key hires and other expenditures. These investments are expected to continue to have a dampening effect on earnings in the short-term but lead to improved future operating earnings and long-term value.
Net gains of $1.0 million for the current quarter are up slightly from $0.6 million in the same period one year earlier.
Net earnings available to shareholders for the current quarter were $8.9 million, or $0.30 per share, compared to $9.6 million, or $0.31 per share, in the same period a year earlier, resulting from the decrease in operating earnings, as described above.
EBITDA(1) for the current quarter was $11.6 million, or $0.39 per share, compared to $12.7 million, or $0.41 per share in 2015. Adjusted cash flow from operations(1) for the current quarter was $9.4 million, or $0.32 per share, compared to $10.5 million, or $0.34 per share in 2015. The decreases in each of these measures reflect the decrease in operating earnings for the quarter. These two non-IFRS financial measures used by the Company are defined in its quarterly Management's Discussion and Analysis, including a reconciliation of these measures to their most comparable IFRS measures.
The Company's shareholders' equity as at June 30, 2016 was $514 million or $17.10 per share, compared to $504 million, or $16.55 per share at December 31, 2015 and $474 million, or $15.32 per share as at June 30, 2015. The fair value of the Company's corporate holdings of securities as at June 30, 2016 was $540 million, or $17.96 per share, compared to $540 million, or $17.72 per share, as at December 31, 2015 and $515 million, or $16.64 per share, as at June 30, 2015.
The Board of Directors has declared a quarterly eligible dividend of $0.085 per share, payable on October 18, 2016, to shareholders of record on October 10, 2016.
The following table summarizes Guardian's financial results for the past eight quarters.
| Quarters ended ($ in thousands, except for per share amounts) |
Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | |||||||||||
| Net revenues | $ | 34,191 | $ | 35,070 | $ | 34,353 | $ | 33,188 | $ | 33,066 | $ | 32,304 | $ | 31,490 | $ | 30,806 | |||
| Operating earnings | 10,300 | 11,350 | 10,256 | 10,876 | 11,390 | 10,476 | 10,335 | 10,051 | |||||||||||
| Net gains (losses) | 1,028 | 16,778 | 9,658 | (2,407 | ) | 602 | 3,187 | 311 | (168 | ) | |||||||||
| Net earnings | 9,169 | 24,072 | 17,362 | 6,278 | 9,786 | 11,551 | 8,438 | 7,877 | |||||||||||
| Net earnings available to shareholders | 8,887 | 23,818 |
17,138 | 6,053 | 9,604 | 11,310 | 8,223 | 7,715 | |||||||||||
| Shareholders' equity | 513,939 | 497,656 | 504,255 | 470,533 | 473,944 | 477,901 | 488,835 | 482,242 | |||||||||||
| Per average Class A and Common Share | |||||||||||||||||||
| Net earnings: | |||||||||||||||||||
| - Basic | $ | 0.31 | $ | 0.83 | $ | 0.59 | $ | 0.21 | $ | 0.33 | $ | 0.38 | $ | 0.27 | $ | 0.26 | |||
| - Diluted | 0.30 | 0.79 | 0.56 | 0.20 | 0.31 | 0.37 | 0.27 | 0.25 | |||||||||||
| Shareholders' equity: | |||||||||||||||||||
| - Basic | $ | 18.08 | $ | 17.51 | $ | 17.37 | $ | 15.96 | $ | 16.08 | $ | 16.15 | $ | 16.33 | $ | 16.08 | |||
| - Diluted | 17.10 | 16.63 | 16.55 | 15.23 | 15.32 | 15.42 | 15.62 | 15.39 | |||||||||||
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 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, net gains or losses and net gains or losses on securities held for sale, less amounts attributable to non-controlling interest. The Company defines Adjusted cash flow from operations as Net cash from operating activities, net of changes in non-cash working capital items and net of non-controlling interests. The most comparable IFRS measures are Net earnings, which was $9,169 and $33,241 for the three and six months ended June 30, 2016 (2015 - $9,786 and $21,337), and Net cash from operating activities, which was $13,294 and $17,744 for the three and six months ended June 30, 2016 (2015 - $17,080 and $15,276). 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:
Donald Yi
Chief Financial Officer
(416) 350-3136
Guardian Capital Group Limited
George Mavroudis
President and Chief Executive Officer
(416) 364-8341