All per share figures disclosed below are stated
on a diluted basis.
|
|
|
|
|
For the three months ended March 31, |
|
|
2023 |
|
2022 |
|
($ in
thousands, except per share amounts) |
|
|
|
Restated |
|
|
|
|
|
Net revenue |
|
|
$ |
54,493 |
$ |
51,824 |
|
Operating earnings |
|
|
|
11,240 |
|
13,507 |
|
Net gains (losses) |
|
|
|
18,134 |
|
(9,749 |
) |
Net earnings from continuing
operations |
|
|
|
26,442 |
|
224 |
|
Net earnings from discontinued
operations |
|
|
|
553,743 |
|
5,591 |
|
Net earnings |
|
|
|
580,185 |
|
5,815 |
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1) |
|
|
$ |
17,371 |
$ |
17,504 |
|
Adjusted cash flow from
operations(1) |
|
|
|
18,097 |
|
16,778 |
|
|
|
|
|
|
|
|
|
|
|
Attributable to
shareholders: |
|
|
|
|
Net earnings (loss) from continuing operations |
|
|
$ |
26,114 |
$ |
(353 |
) |
Net earnings |
|
|
|
487,603 |
|
4,262 |
|
EBITDA(1) |
|
|
|
16,395 |
|
16,390 |
|
Adjusted cash flow from operations (1) |
|
|
|
17,113 |
|
15,635 |
|
Per share, diluted: |
|
|
|
|
Net earnings (loss) from continuing operations |
|
|
$ |
1.02 |
$ |
(0.01 |
) |
Net earnings |
|
|
|
18.79 |
|
0.16 |
|
EBITDA(1) |
|
|
|
0.65 |
|
0.64 |
|
Adjusted cash flow from operations (1) |
|
|
|
0.67 |
|
0.61 |
|
|
|
|
|
|
As at |
|
2023 |
2022 |
($ in millions, except per
share amounts) |
|
March 31 |
December 31 |
March 31 |
|
|
|
|
Restated |
|
|
|
|
|
Assets under management |
|
$ |
52,261 |
$ |
49,587 |
$ |
53,123 |
Assets under advisement |
|
|
4,065 |
|
3,716 |
|
4,272 |
|
|
|
|
|
Total client assets |
|
|
56,326 |
|
53,303 |
|
57,395 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
$ |
1,242 |
$ |
768 |
$ |
828 |
Securities |
|
|
1,301 |
|
660 |
|
741 |
Per share (diluted) |
|
|
|
|
Shareholders’ equity (1) |
|
$ |
48.73 |
$ |
29.43 |
$ |
31.27 |
Securities (1) |
|
|
51.06 |
|
25.31 |
|
27.97 |
|
|
|
|
|
|
|
|
|
|
The Company successfully closed on March 1,
2023, the previously announced transaction to sell its
subsidiaries, Worldsource Financial Management Inc., Worldsource
Securities Inc. and IDC Worldsource Insurance Network Inc. (“IDC
WIN”) (altogether, the “Worldsource Businesses”) for $750 million,
subject to adjustments for net working capital, less amounts due to
minority shareholders of IDC WIN. At the time of entering into an
agreement to sell, the Company classified the Worldsource
Businesses as discontinued operations. Its financial results were
netted on the Statements of Operations and presented on one line
called, “Net earnings from discontinued operations” and on the
Balance Sheets as “Discontinued operations” in both the assets and
liabilities. Comparative periods were restated to reflect this
presentation. All other figures referenced below reflect the
results of the continuing business of the Company.
The Company is reporting $553.7 million in Net
earnings from discontinued operations, which includes net gains of
$619.5 million realized on the disposition of the Worldsource
Businesses, income tax expense of $69.0 million on the net gains
and $3.2 million in operating earnings, net of taxes, for the
period up to the closing date.
The Company’s share of the net proceeds from the
sale of the Worldsource Businesses were immediately invested into
interest-bearing, short-term securities. As a result, the Company
is reporting fair value of its Securities at $1.3 billion ($51.06
per share) as at March 31, 2023, compared to $660 million ($25.31
per share) as at December 31, 2022.
The Company’s total client assets as at March
31, 2023, were $56.3 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 a 2% decrease from $57.4
billion reported as at March 31, 2022.
Net revenue for the current quarter was $54.5
million, a 5% increase from $51.8 million in the same quarter in
the prior year. Interest income earned on the proceeds from the
sale of the Worldsource Businesses was the biggest driver of the
increase, despite it being only one month’s income. Net management
and advisory fee revenue decreased by $0.8 million in the current
quarter to $44.0 million, which includes the addition of RaeLipskie
in the current quarter results. The expenses were 13% higher in the
current quarter at $43.3 million. The increase is due to the
inclusion of RaeLipskie’s expenses, increase in interest expense
due to rise in interest rates, and increased strategic investments
into the Canadian Retail Asset Management team, the Guardian Smart
Infrastructure team, Guardian Partners Inc. and Modern Advisor
Inc., our additional expected growth sources for the future.
Operating earnings for the quarter were of $11.2
million, a $2.3 million decrease from the $13.5 million reported in
2022. The Operating losses associated with the strategic
investments mentioned above were $1.0 million higher at $3.3
million in the current quarter.
EBITDA(1) and EBITDA attributable to
shareholders(1) were $17.4 million and $16.4 million in the current
quarter, compared to $17.5 million and $16.4 million in the
comparative period.
Net gains in the current quarter were $18.1
million, compared to Net losses of $9.7 million in the same quarter
in the prior year, both largely consistent with the impacts of the
global equity markets performance.
Net earnings attributable to shareholders were
$487.6 million in the current quarter and $4.3 million in the
comparative period. The net gains realized on the sale of the
Worldsource Businesses was the main reason for the increase in the
current year.
Adjusted cash flow from operations(1) and
Adjusted cash flow from operations attributable to shareholders(1)
for the current quarter were $18.1 million and $17.1 million,
respectively, compared to $16.8 million and $15.6 million,
respectively, in the comparative period. During the current
quarter, the Company returned to shareholders $6.1 million in
dividends and $5.4 million in share buybacks.
The Company’s Shareholders’ equity as at March
31, 2023 was $1,242 million, or $48.73 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 $0.34 per share, payable
on July 18, 2023, to shareholders of record on July 11, 2023.
The Company’s financial results for the past eight quarters are
summarized in the following table.
|
Mar 31,2023 |
Dec 31,2022 |
Sep 30,2022 |
Jun 30,2022 |
Mar 31,2022 |
Dec 31,2021 |
Sep 30,2021 |
Jun 30,2021 |
|
|
|
Restated |
Restated |
Restated |
Restated |
Restated |
Restated |
|
|
|
|
|
|
|
|
|
As at ($ in millions) |
|
|
|
|
|
|
|
|
Assets under management |
$ |
52,261 |
$ |
49,587 |
$ |
47,814 |
|
$ |
46,931 |
|
$ |
53,123 |
|
$ |
56,341 |
$ |
53,113 |
|
$ |
51,641 |
Assets under advisement |
|
4,065 |
|
3,716 |
|
3,788 |
|
|
3,944 |
|
|
4,272 |
|
|
4,338 |
|
5,061 |
|
|
5,542 |
Total client assets |
|
56,326 |
|
53,303 |
|
51,602 |
|
|
50,875 |
|
|
57,395 |
|
|
60,679 |
|
58,174 |
|
|
57,183 |
|
|
|
|
|
|
|
|
|
For the three
months ended ($ in thousands) |
|
|
|
|
|
|
Net revenue |
$ |
54,493 |
$ |
50,681 |
$ |
48,434 |
|
$ |
50,056 |
|
$ |
51,824 |
|
$ |
52,961 |
$ |
50,873 |
|
$ |
47,437 |
Operating earnings |
|
11,240 |
|
8,790 |
|
10,419 |
|
|
11,404 |
|
|
13,507 |
|
|
14,086 |
|
15,385 |
|
|
14,134 |
Net gains (losses) |
|
18,134 |
|
18,225 |
|
(21,148 |
) |
|
(91,545 |
) |
|
(9,749 |
) |
|
51,408 |
|
(8,960 |
) |
|
55,915 |
Net earnings (losses) from
continuing operations |
|
26,442 |
|
25,249 |
|
(11,582 |
) |
|
(73,463 |
) |
|
224 |
|
|
57,909 |
|
4,005 |
|
|
61,193 |
Net earnings from discontinued
operations |
|
553,743 |
|
6,386 |
|
5,034 |
|
|
5,239 |
|
|
5,591 |
|
|
6,542 |
|
4,592 |
|
|
5,638 |
Net earnings (losses) |
|
580,185 |
|
31,635 |
|
(6,548 |
) |
|
(68,224 |
) |
|
5,815 |
|
|
64,451 |
|
8,597 |
|
|
66,831 |
Net earnings (loss) from
continuing operations attributable to shareholders |
|
26,114 |
|
24,679 |
|
(11,780 |
) |
|
(74,053 |
) |
|
(353 |
) |
|
56,999 |
|
3,268 |
|
|
60,681 |
Net earnings (loss)
attributable to shareholders |
|
487,603 |
|
29,961 |
|
(7,608 |
) |
|
(69,698 |
) |
|
4,262 |
|
|
62,422 |
|
7,054 |
|
|
65,138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share (in $) |
|
|
|
|
|
|
|
|
Net earnings
(loss) from continuing operations attributable to shareholders |
|
|
Basic |
$ |
1.09 |
$ |
1.02 |
$ |
(0.49 |
) |
$ |
(3.03 |
) |
$ |
(0.01 |
) |
$ |
2.30 |
$ |
0.13 |
|
$ |
2.41 |
Diluted |
|
1.02 |
|
0.96 |
|
(0.49 |
) |
|
(3.03 |
) |
|
(0.01 |
) |
|
2.15 |
|
0.12 |
|
|
2.25 |
Net earnings
(loss) attributable to shareholders: |
|
|
|
|
|
|
Basic |
$ |
20.27 |
$ |
1.24 |
$ |
(0.31 |
) |
$ |
(2.85 |
) |
$ |
0.17 |
|
$ |
2.52 |
$ |
0.28 |
|
$ |
2.59 |
Diluted |
|
18.79 |
|
1.16 |
|
(0.31 |
) |
|
(2.85 |
) |
|
0.16 |
|
|
2.35 |
|
0.27 |
|
|
2.42 |
|
|
|
|
|
|
|
|
|
Dividends paid |
$ |
0.34 |
$ |
0.24 |
$ |
0.24 |
|
$ |
0.24 |
|
$ |
0.18 |
|
$ |
0.18 |
$ |
0.18 |
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at |
|
|
|
|
|
|
|
|
Shareholders’ equity ($ in
millions) |
$ |
1,242 |
$ |
768 |
$ |
743 |
|
$ |
743 |
|
$ |
828 |
|
$ |
839 |
$ |
781 |
|
$ |
780 |
Per share (in $) |
|
|
|
|
|
|
|
|
Basic |
$ |
52.42 |
$ |
31.84 |
$ |
30.82 |
|
$ |
30.68 |
|
$ |
33.67 |
|
$ |
33.89 |
$ |
31.56 |
|
$ |
31.15 |
Diluted |
|
48.73 |
|
29.43 |
|
28.88 |
|
|
28.74 |
|
|
31.27 |
|
|
31.53 |
|
29.40 |
|
|
29.09 |
|
|
|
|
|
|
|
|
|
Total Class A and Common shares outstanding |
|
|
|
|
|
|
|
|
(shares
in thousands) |
|
26,113 |
|
26,246 |
|
26,246 |
|
|
26,342 |
|
|
26,892 |
|
|
26,954 |
|
26,968 |
|
|
27,263 |
|
|
|
|
|
|
|
|
|
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 Yi |
George
Mavroudis |
Chief Financial Officer |
President and Chief Executive Officer |
(416) 350-3136 |
(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 three months ended March 31, ($ in thousands) |
|
2023 |
|
|
2022 |
|
|
|
|
|
Restated |
|
|
|
|
|
Net earnings |
|
|
$ |
580,185 |
|
$ |
5,815 |
|
Add
(deduct): |
|
|
|
|
Net earnings from discontinued operations |
|
|
(553,743 |
) |
|
(5,591 |
) |
Income tax expense |
|
|
|
2,932 |
|
|
3,534 |
|
Net (gains) losses |
|
|
|
(18,134 |
) |
|
9,749 |
|
Stock-based compensation |
|
|
|
916 |
|
|
662 |
|
Interest expense |
|
|
|
1,929 |
|
|
545 |
|
Amortization |
|
|
|
3,286 |
|
|
2,790 |
|
EBITDA |
|
|
|
17,371 |
|
|
17,504 |
|
Less attributable
to non-controlling interests in continuing operations |
|
(976 |
) |
|
(1,114 |
) |
EBITDA attributable to shareholders |
|
$ |
16,395 |
|
$ |
16,390 |
|
|
|
|
|
|
For the three
months ended March 31, ($ in thousands) |
|
2023 |
|
|
2022 |
|
|
|
|
|
Restated |
|
|
|
|
|
Net cash from operating activities |
|
|
$ |
10,187 |
|
$ |
(692 |
) |
Add (deduct): |
|
|
|
|
Net cash from operating activities, discontinued operations |
|
(10,087 |
) |
|
(9,848 |
) |
Net change in non-cash working capital items |
|
|
8,284 |
|
|
20,641 |
|
Net change in non-cash working capital items, discontinued
operations |
|
9,713 |
|
|
6,677 |
|
Adjusted cash flow from operations |
|
|
|
18,097 |
|
|
16,778 |
|
Less attributable to
non-controlling interests, continuing operations |
|
(984 |
) |
|
(1,143 |
) |
Adjusted cash flow from operations attributable to
shareholders |
$ |
17,113 |
|
$ |
15,635 |
|
|
|
|
|
|
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)
Historical Stock Chart
From Apr 2024 to May 2024
Guardian Capital (TSX:GCG)
Historical Stock Chart
From May 2023 to May 2024