Excluding significant items, quarterly
earnings per common share of $0.52
(1)
Excluding significant items, record
full fiscal year earnings per common share of $2.51 (1)
Fiscal 2022
common share year dividend payout increased 28%
year-over-year
TORONTO, June 3, 2022 /PRNewswire/ -- Canaccord Genuity
Group Inc. (Canaccord Genuity Group, the Company) (TSX: CF) today
announced its financial results for the fourth quarter and fiscal
year ended March 31, 2022.
"Our fourth quarter and fiscal 2022 results demonstrate the
underlying strength of our franchise and the benefit of targeted
investments to increase contributions from our wealth management
and advisory businesses, which help to offset the inherent
volatility of our investment banking segment," said Dan Daviau, President & CEO of Canaccord
Genuity Group Inc.
"While we expect that the coming months will present new
challenges and uncertainty, our firmwide commitment to protecting
value for our clients and shareholders has never been stronger. We
begin fiscal 2023 with confidence that our business is optimally
positioned to deliver profitability through the economic
cycle."
Fourth quarter and fiscal 2022 highlights:
(All
dollar amounts are stated in thousands of Canadian dollars unless
otherwise indicated)
- Fourth quarter revenue excluding significant items
(1) of $490.8 million
($499.8 million on an IFRS
basis)
- Fiscal 2022 revenue of $2.0
billion, up 1.9% year-over-year and our highest annual
revenue on record
- Fourth quarter net income before taxes excluding significant
items(1) of $94.5 million,
a decrease of 48.4% ($96.5 million
and a year-over-year decrease of 48.6% on an IFRS basis) when
compared to the record results in Q4/21
- Fiscal 2022 net income before taxes excluding significant
items(1) of $417.6
million, an improvement of 8.2% year-over-year ($378.3 million and a year-over-year increase of
2.3% on an IFRS basis)
- Excluding significant items (1), quarterly diluted
earnings per common share for the fourth fiscal quarter of
$0.52 ($0.53 per share on an IFRS basis)
- Excluding significant items (1), diluted earnings
per common share for fiscal 2022 of $2.51 ($2.16 per
share on an IFRS basis)
- Record fiscal 2022 capital markets advisory revenue of
$488.6 million, a year-over-year
improvement of 152.5%
- Total client assets(1) in our global wealth
management business of $96.1 billion,
an increase of 8.2% from Q4/21 reflecting year-over-year increases
of 17.5% in Canada, 1.0% in the UK
& Crown Dependencies, and 26.6% in Australia
- During fiscal 2022, the Company announced acquisitions to
increase the long-term value and market position of its wealth
management business in the UK & Crown Dependencies and its US
capital markets business
- Purchased 6,451,612 common shares for cancellation under the
substantial issuer bid and 3,401,116 common shares for cancellation
under our normal course issuer bid (NCIB) during the year ended
March 31, 2022
- Fourth quarter common share dividend of $0.085 per share; total common share dividends
for fiscal 2022 increased 28% year-over-year, reflecting continued
strong contributions from our global wealth management
businesses
- Capital deployment initiatives in fiscal 2022 resulted in the
return of $176.1 million to common
shareholders through common share dividends and buybacks, which
included a $100 million substantial
issuer bid and continued Normal Course Issuer Bid (NCIB)
activity
__________________
|
(1) See
Non-IFRS Measures on page 7.
|
|
Three months
ended
March
31
|
Quarter-
over-
quarter
change
|
Three months
ended
December 31
|
Quarter-
over-
quarter
change
|
Fiscal
2022
|
Fiscal
2021
|
Change
|
|
Q4/22
|
Q4/21
|
|
Q3/22
|
|
|
|
|
Fourth fiscal
quarter highlights- adjusted(1)
|
Revenue – excluding
significant items(1)
|
$490,793
|
$692,326
|
(29.1)%
|
$550,817
|
(10.9)%
|
$2,040,602
|
$1,993,488
|
2.4%
|
Expenses - excluding
significant items(1)
|
$396,268
|
$509,087
|
(22.2)%
|
$437,385
|
(9.4)%
|
$1,623,036
|
$1,607,398
|
1.0%
|
Earnings per common
share – diluted, excluding significant
items(1)
|
$0.52
|
$1.20
|
(56.7)%
|
$0.69
|
(24.6)%
|
$2.51
|
$2.48
|
1.2%
|
Net Income - excluding
significant items(1),(2)
|
$66,822
|
$137,128
|
(51.3)%
|
$84,632
|
(21.0)%
|
$305,827
|
$285,887
|
7.0%
|
Net Income attributable
to common shareholders – excluding significant
items(1),(3)
|
$54,678
|
$133,260
|
(59.0)%
|
$75,098
|
(27.2)%
|
$274,585
|
$270,467
|
1.5%
|
Fourth fiscal
quarter highlights- IFRS
|
Revenue
|
$499,793
|
$706,526
|
(29.3)%
|
$552,217
|
(9.5)%
|
$2,046,002
|
$2,007,688
|
1.9%
|
Expenses
|
$403,245
|
$518,810
|
(22.3)%
|
$457,234
|
(11.8)%
|
$1,667,733
|
$1,637,786
|
1.8%
|
Earnings per common
share – diluted
|
$0.53
|
$0.93
|
(43.0)%
|
$0.52
|
1.9%
|
$2.16
|
$2.04
|
5.9%
|
Net
Income(2)
|
$68,995
|
$139,394
|
(50.5)%
|
$66,732
|
3.4%
|
$270,565
|
$269,802
|
0.3%
|
Net Income attributable
to common shareholders(3)
|
$56,266
|
$135,526
|
(58.5)%
|
$56,254
|
0.02%
|
$236,830
|
$254,382
|
(6.9)%
|
1. Figures excluding
significant items are non-IFRS measures. See Non-IFRS measures on
page 7
2. Before non-controlling interests and preferred share
dividends
3. Net income attributable to common shareholders is calculated as
the net income adjusted for non-controlling interests and preferred
share dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
Core business performance highlights:
Canaccord Genuity Wealth Management
The Company's combined global wealth management operations
earned revenue of $174.3 million for
the fourth fiscal quarter, a year-over-year decrease of 12.5%
primarily due to the anticipated reduction in investment banking
activity in our North American business. Revenue for the fiscal
year amounted to $720.4 million, an
increase of 8.6% compared to the prior year. Excluding significant
items(1), pre-tax net income decreased by 34.9%
year-over year to $29.2 million for
the fourth quarter and increased by 9.8% to $148.5 million for the fiscal year. On an IFRS
basis, pre-tax net income decreased by 40.6% and increased by 3.6%
for the fourth quarter and fiscal 2022 compared to the same period
in the prior year. Firm-wide client assets were $96.1 billion at March 31,
2022, a year-over-year increase of 8.2%.
- Wealth management operations in the UK & Crown Dependencies
generated $80.3 million in revenue
and, excluding significant items(1), recorded net income
of $23.5 million before taxes in
Q4/22. In fiscal 2022, this business generated revenue of
$310.5 million and excluding
significant items(1), recorded net income of
$84.8 million before taxes.
- Canaccord Genuity Wealth Management (North America) generated $76.2 million in revenue and before taxes,
recorded net income of $5.1 million
in Q4/22. In fiscal 2022, this business generated revenue of
$335.3 million and, excluding
significant items(1), recorded net income of
$56.3 million before taxes.
- Wealth management operations in Australia generated $17.8 million in revenue and, excluding
significant items(1), recorded net income of
$0.6 million before taxes in Q4/22.
In fiscal 2022, this business generated revenue of $74.6 million and, excluding significant
items(1), recorded net income of $7.3 million before taxes
_________________
|
(1)
See non-IFRS measures on page 7
|
|
Revenue in the Company's North American wealth management
business decreased by 28.8% in Q4/22 compared to the same period in
the prior year, due to lower new issue activity when compared to
the near record new issue activity in the fourth quarter of the
prior fiscal year. The fiscal 2022 revenue contribution from this
business amounted to $335.3 million,
an increase of 3.5% compared to the prior year. Average AUA per
Investment Advisory team improved by 16.7% year-over-year on new
asset growth and the impact of higher ECM opportunities in the
first half of fiscal 2022. Commissions and fees revenue for the
fourth fiscal quarter declined by 8.3% year-over-year to
$58.4 million and increased by 14.6%
to $227.5 million for the fiscal
year, a record for this business. Interest income in this business
increased 63.7% year-over-year for both Q4/22 and fiscal 2022, to
$5.3 million and $18.9 million respectively.
We continue to evaluate a range of opportunities for profitable
growth in our Canadian wealth management business while advancing
our technology and product offerings aimed at helping Investment
Advisors grow their businesses. Our recruiting pipeline remains
strong.
Revenue in the Company's UK & Crown Dependencies wealth
management business amounted to $80.3
million for the fourth quarter and $310.5 million for the fiscal year, increases of
7.2% and 12.0% respectively, primarily due to higher commissions
and fees revenue and interest income attributable to the higher
interest rate environment. Commissions and fees revenue earned in
this business reached a new record of $301.9
million for fiscal 2022, an increase of 10.7% from the prior
year. Excluding significant items(1), the pre-tax
profit margin in this business increased by 3.7 percentage points
to 29.3% for the three-month period and increased by 3.8 percentage
points to 27.3% for the fiscal year.
Subsequent to the end of the fiscal year, on May 31, 2022, this business completed its
acquisition of Punter Southall
Wealth (PSW). PSW currently has approximately $7.9 billion (£4.8 billion) in client assets and
generated annual revenue of approximately $60.0 million (£34.7 million) for the year ended
December 31, 2021. The
Company will continue to pursue growth of this business through
organic growth and by leveraging its financial partnerships to
pursue accretive opportunities.
The Company's Australian wealth management business earned
revenue of $17.8 million in the
fourth quarter and $74.6 million for
the fiscal year, representing year-over-year increases of 3.1% and
19.9% respectively. Commissions and fees revenue for the fiscal
year reached a new record of $57.7
million, an increase of 11.9% compared to the prior year.
The number of investment advisors in this business increased by
4.5% year-over-year, reflecting strong recruiting momentum.
Total client assets in the Company's global wealth management
businesses at the end of the fourth fiscal quarter amounted to
$96.1 billion, an increase of
$7.3 billion or 8.2% from
March 31, 2021.
- Client assets in North America
were $37.9 billion as at March 31, 2022, an increase of 1.1% from
$37.5 billion at the end of the
previous quarter and an increase of 17.5% from $32.2 billion at March 31,
2021.
- Client assets in the UK & Crown Dependencies were
$52.8 billion (£32.1 billion) as at
March 31, 2022, a decrease of 11.1%
from $59.4 billion (£34.8 billion) at
the end of the previous quarter, and an increase of 1.0% from
$52.3 billion (£30.2 billion) at
March 31, 2021.
- Client assets in Australia
held in our investment management platforms were $5.4 billion (AUD$ 5.7 billion) as at
March 31, 2022, an increase of 5.7%
from $5.1 billion (AUD$ 5.5 billion)
as at December 31, 2021 and an
increase of 26.6% from $4.2 billion
(AUD$ 4.4 billion) at March 31, 2021.
In addition to client assets held in our investment management
platforms, client assets totalling $17.5
billion (AUD$ 18.6 billion) are also held in non-managed
accounts.
Canaccord Genuity Capital Markets
Globally, Canaccord Genuity Capital Markets earned revenue of
$312.0 million for the fourth fiscal
quarter, representing a decrease of 35.9% from the record set in
Q4/21, largely reflecting the anticipated decrease in investment
banking revenue and principal trading revenue in our US and
Canadian operations. Our combined global capital markets businesses
contributed revenue of $1.3 billion
for the fiscal year, a year-over-year decrease of 0.7%. Firm-wide
advisory revenue for the three- and 12-month periods increased
85.6% and 152.5% year-over-year to $121.6
million and $488.6 million,
which is a new full-year-record for this segment. Excluding
significant items(1), this segment contributed pre-tax
net income of $73.4 million for the
fourth quarter and $324.6 million for
the fiscal year, compared to $155.1
million in Q4/21 and $324.9
million in the previous fiscal year.
- Canaccord Genuity Capital Markets led or co-led 47 investment
banking transactions globally, each over $1.5 million, raising total proceeds of
$3.3 billion during Q4/22.
- Canaccord Genuity Capital Markets led or co-led 329 investment
banking transactions globally, each over $1.5 million, raising total proceeds of
$13.5 billion during fiscal
2022.
- Canaccord Genuity Capital Markets participated in 102
investment banking transactions globally, including led or co-led,
raising total proceeds of $11.8
billion during Q4/22.
- Canaccord Genuity Capital Markets participated in a total of
596 investment banking transactions globally, including led or
co-led, raising total proceeds of $61.2
billion during fiscal 2022.
The Company's US capital markets business was the largest
contributor of revenue for the three-month period, with revenue of
$146.5 million, or 47.0% of total
global capital markets revenue. Declines in investment banking and
trading revenue during the fourth quarter were partially offset by
strong advisory activity, which included contributions from our
recent acquisition of Sawaya . Fourth quarter advisory revenue
increased 195.3% year-over-year to $64.8
million, bringing advisory revenue for the fiscal year to a
record $317.0 million, an increase of
218.8% compared to the prior fiscal year. Investment banking
revenue for the three-month period decreased by 78.7% to
$15.1 million when compared to the
extraordinary record set in the fourth quarter of the prior year.
For fiscal 2022, investment banking revenue decreased by 35.2%
year-over-year to $110.0 million,
reflecting the impact of the expected broad market decline that
began in the second half of fiscal 2022. Principal trading revenue
also decreased by 49.6% from the prior year's record, to
$37.9 million in the fourth quarter
due to lower trading volume and activity. Excluding significant
items(1), the pre-tax profit margin in this business was
24.2% for the fourth quarter and 23.6% for the fiscal year,
increases of 0.8 percentage points and 4.4 percentage points
respectively.
Fourth quarter revenue of $74.5
million in our Canadian capital markets operations remained
strong by historical standards but decreased by 62.6% when compared
to the record set in Q4/21. This business set new quarterly and
fiscal year records in advisory revenue, which amounted to
$35.0 million in the fourth fiscal
quarter and $105.0 million for the
fiscal year, representing year-over-year increases of 12.8% and
65.5% respectively. Fourth quarter investment banking, principal
trading, and commissions and fees revenue declined by 83.5%, 74.9%
and 43.8% respectively when compared to the same period in the
prior year. This business continues to be a top-ranked domestic
underwriter in Canada and a
leading underwriter for initial public offerings. Excluding
significant items(1), the pre-tax profit
margin in this business was 24.5% for the fourth quarter and 30.6%
for the fiscal year, representing decreases of 22.5 percentage
points and 5.2 percentage points from the prior year's quarterly
and full-year records, but remained comfortably above historic
levels.
Fourth quarter revenue earned by our Australian capital markets
business increased 29.0% year-over-year to $61.8 million, reflecting a 25.0% increase in
investment banking revenue and a 98.4% increase in commissions and
fees revenue when compared to the same period a year ago. This
business contributed revenue of $174.1
million for the fiscal year, a decrease of 4.7% compared to
the prior year's record, and substantially above historic levels.
This performance was largely driven by the robust environment for
underwriting activities in our focus sectors and also includes
unrealized gains in certain inventory and warrant positions earned
in respect of investment banking activity. Excluding significant
items(1), the pre-tax profit margin in this
business increased by 9.8 percentage points to 29.5% for the
fourth quarter and increased by 2.1 percentage points
to 29.0% for the fiscal year.
Revenue in our UK operations decreased by 19.1% for the
three-month period driven mainly by lower investment banking
revenue. Advisory revenue in this business was $21.7 million for the fourth quarter and
$66.6 million for the fiscal year,
representing year-over-year increases of 73.9% and 117.8%
respectively, and the second highest quarterly and annual
contributions for this segment on record. Excluding
significant items (1), our UK & Europe capital markets business earned pre-tax
net income of $1.5 million for the
fourth quarter, increasing its pre-tax net income contribution for
the year to $11.7 million, a
year-over-year improvement of 269.5% and the highest amount since
fiscal 2014. The pre-tax profit margin in this business
excluding significant items(1) , was 5.0% for the fourth
quarter and 9.7% for the fiscal year.
_________________________
|
(1)
See non-IFRS measures on page 7
|
|
Summary of Corporate Developments
On February 1, 2022, the Company
announced the results of the substantial issuer bid which commenced
on December 22, 2021 and expired on
January 27, 2022. The Company
purchased for cancellation 6,451,612 of its common shares at a
purchase price of $15.50 per share
for aggregate consideration of approximately $100.0 million.
On May 24, 2022, the Company
announced that it does not intend to exercise its option to redeem
the Series C Preferred Shares on June
30, 2022. The Company has the option to redeem on
June 30 every five years thereafter,
in whole or in part, at $25.00 per
share together with all declared and unpaid dividends.
On May 31, 2022, the Company
announced that through its wealth management business in the UK
("CGWM UK"), it has completed its previously announced acquisition
of Punter Southall Wealth ("PSW"),
including the intermediary-facing brand Psigma. In connection with
completion of the acquisition, CGWM UK added £100 million
(C$169.2 million) to its existing
bank facility. In addition, HPS Investment Partners, LLC on behalf
of investment accounts and funds it manages made an additional
investment in CGWM UK on closing of the acquisition through the
purchase of a new series of convertible preferred shares of CGWM UK
in the amount of £65.3 million (C$110.5
million). Cumulative dividends will be payable by CGWM UK on
the new convertible preferred shares at the greater of an annual
7.5% coupon and the proportionate share that such shares would
receive on an as converted basis. The new convertible preferred
shares will also carry customary minority rights in respect of CGWM
UK governance and financial matters, a liquidation preference, and
call protections.
On June 1, 2022, the Company
announced the reset of the dividend rate on its Series C Preferred
Shares. Quarterly cumulative cash dividends, as declared, are paid
at an annual rate of 4.993% for the five- year period ending on and
including June 30, 2022. Commencing
July 1, 2022 and ending on and
including June 30, 2027, quarterly
cumulative dividends, if declared, will be paid at an annual rate
of 6.837%. The dividend rate will be reset every five years at a
rate equal to the five-year Government of Canada yield plus 4.03%.
Results for the Fourth Quarter of Fiscal 2022 and year ended
March 31, 2022 were impacted by
the following significant items:
- Fair value adjustments on certain illiquid or restricted
marketable securities recorded for IFRS reporting purposes, but
which are excluded for management reporting purposes and are not
used by management to assess operating performance
- Amortization of intangible assets acquired in connection with
business combinations
- Acquisition-related costs in connection with the acquisition of
Adam & Company as well as other prospective acquisition
opportunities of CGWM UK
- Certain incentive-based costs related to the acquisition and
growth initiatives in the US capital markets and CGWM UK wealth
operations
Summary of Results for Q4 Fiscal 2022 and Year Ended
March 31, 2022 and Selected Financial
Information Excluding Significant Items(1):
|
Three months
ended
March 31
|
Quarter-
over-
quarter
change
|
Year
ended
March
31
|
Year over
Year
change
|
(C$ thousands, except
per share and % amounts)
|
2022
|
2021
|
|
2022
|
2021
|
|
Revenue
|
|
|
|
|
|
|
Revenue per
IFRS
|
$499,793
|
$706,526
|
(29.3)%
|
$2,046,002
|
$2,007,688
|
1.9%
|
Significant items
recorded in Corporate and Other
|
|
|
|
|
|
|
Fair value adjustments
on certain illiquid and restricted
marketable securities(2)
|
9,000
|
$14,200
|
(36.6)%
|
$5,400
|
$14,200
|
(62.0)%
|
Total revenue excluding
significant item
|
$490,793
|
$692,326
|
(29.1)%
|
$2,040,602
|
$1,993,488
|
2.4%
|
Expenses
|
|
|
|
|
|
|
Expenses per
IFRS
|
$403,245
|
$518,810
|
(22.3)%
|
$1,667,733
|
$1,637,786
|
1.8%
|
Significant items
recorded in Canaccord Genuity Capital Markets
|
|
|
|
Amortization of intangible assets
|
$1,283
|
$738
|
73.8%
|
$1,843
|
$2,970
|
(37.9)%
|
Acquisition- related costs
|
-
|
-
|
-
|
$537
|
$4,644
|
(88.4)%
|
Incentive-based costs related to
acquisitions(3)
|
$364
|
-
|
n.m.
|
$364
|
-
|
n.m.
|
Significant items
recorded in Canaccord Genuity Wealth Management
|
|
|
|
|
Amortization of intangible assets
|
$4,190
|
$3,260
|
28.5%
|
$14,629
|
$13,087
|
11.8%
|
Acquisition-related costs
|
$515
|
$418
|
23.2%
|
$8,660
|
$1,278
|
577.6%
|
Incentive-based costs related to
acquisitions(3)
|
$625
|
$953
|
(34.4)%
|
$3,419
|
$4,055
|
(15.7)%
|
Costs
associated with reorganization of CGWM UK
|
-
|
-
|
-
|
$794
|
-
|
n.m.
|
Significant items
recorded in Corporate and Other
|
|
|
|
|
|
|
Costs in
connection with redemption of convertible debentures
(4)
|
-
|
$4,354
|
(100.0)%
|
$5,932
|
$4,354
|
36.2%
|
Change in
derivative liability fair value(5)
|
-
|
-
|
-
|
$8,519
|
-
|
n.m.
|
Total
significant items - expenses
|
$6,977
|
$9,723
|
(28.2)%
|
$44,697
|
$30,388
|
47.1%
|
Total expenses
excluding significant items
|
$396,268
|
$509,087
|
(22.2)%
|
$1,623,036
|
$1,607,398
|
1.0%
|
Net income before taxes
excluding significant items(1)
|
$94,525
|
$183,239
|
(48.4)%
|
$417,566
|
$386,090
|
8.2%
|
Income taxes –
adjusted
|
$27,703
|
$46,111
|
(39.9)%
|
$111,739
|
$100,203
|
11.5%
|
Net income excluding
significant items
|
$66,822
|
$137,128
|
(51.3)%
|
$305,827
|
$285,887
|
7.0%
|
Significant items
impacting net income attributable to common
shareholders
|
|
|
|
|
|
|
Non-controlling
interests - IFRS
|
$10,338
|
$1,517
|
n.m.
|
$24,251
|
$6,016
|
n.m.
|
Amortization of equity
component of the non-controlling
interests in CGWM UK and other adjustments
|
$585
|
-
|
n.m.
|
$2,493
|
-
|
n.m.
|
Non-controlling
interests (adjusted) (1)
|
$9,753
|
$1,517
|
n.m.
|
$21,758
|
$6,016
|
261.7%
|
Net income attributable
to common shareholders, excluding significant items
|
$54,678
|
$133,260
|
(59.0)%
|
$274,585
|
$270,467
|
1.5%
|
Earnings per common
share excluding significant items – basic
|
$0.62
|
$1.38
|
(55.1)%
|
$2.92
|
$2.80
|
4.3%
|
Earnings per common
share excluding significant items – diluted
|
$0.52
|
$1.20
|
(56.7)%
|
$2.51
|
$2.48
|
1.2%
|
(1)
Figures excluding significant items are
non-IFRS measures. See Non-IFRS Measures on page
7.
(2)
Fair value adjustment on certain illiquid
or restricted marketable securities
(3)
Incentive-based costs related to
the acquisitions and growth initiatives in US capital markets and
CGWM UK
(4)
During the year ended March 31,
2022, the Company entered into a credit agreement for a senior
secured first lien term loan facility ("loan facility") to
partially fund the
redemption of convertible debentures. Transaction costs
incurred in connection with the loan facility were recognized on an
amortized cost basis and included in the effective
interest rate of the facility. Interest associated with this
loan facility is included in costs associated with redemption of
convertible debentures for year ended March 31, 2022.
(5)
Fair value adjustment related to the derivative liability
component of the non-controlling interests related to the
Convertible Preferred Shares issued by CGWM UK.
n.m. not meaningful
(percentages above 300% are indicated as n.m.
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Diluted earnings per common share (diluted EPS) is computed
using the treasury stock method, giving effect to the exercise of
all dilutive elements. The Convertible Preferred Shares issued by
CGWM UK are factored into the diluted EPS by adjusting net income
attributable to common shareholders of the Company to reflect our
proportionate share of CGWM UK's earnings on an as converted basis
if the calculation is dilutive. For the quarter ended
March 31, 2022, the effect of
reflecting our proportionate share of CGWM UK's earnings is
dilutive for diluted EPS purposes under IFRS as well as for the
purpose of determining diluted EPS excluding significant items
(1). Accordingly, net income attributable to common
shareholders for the fourth quarter of fiscal 2022 reflects the
Company's proportionate share of CGWM UK's net income on an as
converted basis.
The effect of reflecting the proportionate share of CGWM UK's
net income excluding significant items(1) is only
dilutive for the third and fourth quarters of fiscal
2022. For the year ended March
31, 2022, the effect is anti-dilutive under IFRS for diluted
EPS purposes but dilutive for the purpose of determining diluted
EPS excluding significant items(1). As such, the
diluted EPS under IFRS for fiscal 2022 is computed based on net
income attributable to common shareholders less accrued dividends
on the Convertible Preferred Shares issued by CGWM UK.
Financial Condition at the End of Fourth Quarter Fiscal 2022
vs. Fourth Quarter of Fiscal 2021:
- Cash and cash equivalents balance of $1.8 billion, a decrease of $95.0 million from $1.9
billion
- Working capital of $794.4
million, an increase of $ 241.9
million from $552.5
million
- Total shareholders' equity of $1.2
billion, an increase of $71.0
million from $1.1 billion
Common and Preferred Share Dividends:
On June 2, 2022, the Board of
Directors approved a dividend of $0.085 per common share, payable on June 30, 2022, with a record date of June 17, 2022.
On June 2, 2022, the Board
approved a cash dividend of $0.25175
per Series A Preferred Share payable on June
30, 2022 to Series A Preferred shareholders of record as at
June 17, 2022.
On June 2, 2022, the Board
approved a cash dividend of $0.31206
per Series C Preferred Share payable on June
30, 2022 to Series C Preferred shareholders of record as at
June 17, 2022.
Non-IFRS Measures
Certain non-IFRS measures, non-IFRS ratios and supplementary
financial measures are utilized by the Company as measures of
financial performance. Non-IFRS measures, non-IFRS ratios and
supplementary financial measures do not have any standardized
meaning prescribed by IFRS and are therefore unlikely to be
comparable to similar measures presented by other companies.
Management believes that these non-IFRS measures, non-IFRS
ratios and supplementary financial measures allow for a better
evaluation of the operating performance of the Company's business
and facilitate meaningful comparison of results in the current
period to those in prior periods and future periods. Non-IFRS
measures presented in this earnings release include certain figures
from our statement of operations that are adjusted to exclude
significant items. Although figures that exclude significant items
provide useful information by excluding certain items that may not
be indicative of the Company's core operating results, a limitation
of utilizing these figures that exclude significant items is that
the IFRS accounting effects of these items do in fact reflect the
underlying financial results of the Company's business.
Accordingly, these effects should not be ignored in evaluating and
analyzing the Company's financial results. Therefore, management
believes that the Company's IFRS measures of financial performance
and the respective non-IFRS measures should be considered
together.
Non-IFRS Measures (Adjusted Figures)
Figures that exclude significant items provide useful
information by excluding certain items that may not be indicative
of the Company's core operating results. Financial statement items
that exclude significant items are non-IFRS measures. To calculate
these non-IFRS financial statement items, we exclude certain items
from our financial results prepared in accordance with IFRS.
The items which have been excluded are referred to herein as
significant items. The following is a description of the
composition of the non-IFRS measures used in this earnings
release (note that some significant items excluded may not be
applicable to the calculation of the non-IFRS measures for
each comparative period): (i) revenue excluding significant
items, which is composed of revenue per IFRS less any
applicable fair value adjustments on certain illiquid or restricted
marketable securities as recorded for IFRS reporting purposes but
which are excluded for management reporting purposes and are not
used by management to assess operating performance; (ii)
expenses excluding significant items, which is composed of
expenses per IFRS less any applicable amortization of intangible
assets acquired in connection with a business combination,
acquisition-related expense items, which includes costs recognized
in relation to both prospective and completed acquisitions, certain
incentive-based costs related to the acquisitions and growth
initiatives in CGWM UK and US capital markets, costs
associated with the redemption of convertible debentures, costs
associated with the reorganization of CGWM UK, and fair value
adjustments to the derivative liability component of
non-controlling interests in CGWM UK; (iii) net income before
taxes excluding significant items, which is composed of
revenue excluding significant items less expenses excluding
significant items; (iv) income taxes (adjusted), which
is composed of income taxes per IFRS adjusted to reflect the
associated tax effect of the excluded significant items; (v) net
income excluding significant items, which is composed of net
income before income taxes excluding significant items less income
taxes (adjusted); (vi) non-controlling interests (adjusted),
which is composed of non-controlling interests per IFRS less the
amortization of the equity component of non-controlling interests
in CGWM UK; and (vii) net income attributable to common
shareholders excluding significant items, which is composed of
net income excluding significant items less non-controlling
interests (adjusted) and preferred share dividends paid on the
Series A and Series C Preferred Shares.
A reconciliation of non-IFRS measures that exclude significant
items to the applicable IFRS measures from the audited consolidated
financial statements for fiscal 2022 can be found above in the
table entitled "Summary of results for Q4 fiscal 2022 and year
ended March 31, 2022 and selected
financial information excluding significant items".
Non-IFRS Ratios
Non-IFRS ratios are calculated using the non-IFRS measures
defined above. For the periods presented herein, we have used the
following non-IFRS ratios: (i) total expenses excluding
significant items as a percentage of revenue, which is
calculated by dividing expenses excluding significant items by
revenue excluding significant items; (ii) earnings per common
share excluding significant items, which is calculated by
dividing net income attributable to common shareholders excluding
significant items by the weighted average number of common shares
outstanding (basic); (iii) diluted earnings per common share
excluding significant items which is calculated by dividing net
income attributable to common shareholders excluding significant
items by the weighted average number of common shares
outstanding (diluted); and (iv) pre-tax profit margin which
is calculated by dividing net income before taxes excluding
significant items by revenue excluding significant items.
Supplementary Financial Measures
Client assets are supplementary financial measures that do not
have any definitions prescribed under IFRS but do not meet the
definition of a non-IFRS measure or non-IFRS ratio. Client
assets, which include both assets under management (AUM) and assets
under administration (AUA), is a measure that is common to the
wealth management business. Client assets is the market value of
client assets managed and administered by the Company from which
the Company earns commissions and fees. This measure includes
funds held in client accounts as well as the aggregate market value
of long and short security positions. The Company's method of
calculating client assets may differ from the methods used by other
companies, and therefore these measures may not be comparable to
other companies. Management uses these measures to assess
operational performance of the Canaccord Genuity Wealth Management
business segment.
ACCESS TO QUARTERLY RESULTS
INFORMATION
QUARTERLY CONFERENCE CALL AND WEBCAST PRESENTATION
Interested parties are invited to listen to Canaccord Genuity's
fourth quarter and fiscal 2022 results conference call via live
webcast or a toll-free number. The conference call is scheduled for
Friday, June 3, 2022 at 8:00 a.m. Eastern time, 5:00 a.m. Pacific time, 1:00 p.m. UK time, 8:00
p.m. China Standard Time, and 10:00
pm Australia EDT. During the call, senior executives will
comment on the results and respond to questions from analysts and
institutional investors.
The conference call may be accessed live and will also be
archived on a listen-only basis at:
www.cgf.com/investor-relations/news-and-events/conference-calls-and-webcasts/
Analysts and institutional investors can call in via telephone
at:
- 416-764-8609 (within Toronto)
- 888-390-0605 (toll free in North
America outside Toronto)
- 0-800-652-2435 (toll free from the United Kingdom)
- 0-800-916-834 (toll free from France)
- 10-800-714-1938 (toll free from Northern China)
- 10-800-140-1973 (toll free from Southern China)
- 1-800-076-068 (toll free from Australia)
- 80-003-570-3632 (toll free from United Arab Emirates)
Please ask to participate in the Canaccord Genuity Group Inc. Q4
and fiscal 2022 results call. If a passcode is requested, please
use 63940494.
A replay of the conference call will be made available from
approximately two hours after the live call on June 3, 2022, until August
3, 2022 at 416-764-8677 or 1-888-390-0541 by entering
passcode 940494 followed by the (#) key.
ABOUT CANACCORD GENUITY GROUP INC.:
Through its principal subsidiaries, Canaccord Genuity Group Inc.
(the Company) is a leading independent, full-service financial
services firm, with operations in two principal segments of the
securities industry: wealth management and capital markets.
Since its establishment in 1950, the Company has been driven by an
unwavering commitment to building lasting client relationships. We
achieve this by generating value for our individual, institutional
and corporate clients through comprehensive investment solutions,
brokerage services and investment banking services. The
Company has wealth management offices located in Canada, the UK, Guernsey, Jersey, the Isle of Man and Australia. The Company's international capital
markets division operates in North
America, the UK & Europe, Asia,
Australia and the Middle
East.
Canaccord Genuity Group Inc. is listed under the symbol CF on
the TSX.
None of the information
on the Company's websites at www.cgf.com should be considered
incorporated herein by reference.
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Investor and media relations inquiries: Christina Marinoff,
Vice President, Investor Relations & Communications, Phone:
416-687-5507, Email: cmarinoff@cgf.com,
www.cgf.com/investor-relations