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) |
2020 |
2019 |
2020 |
2019 |
|
|
|
|
|
Net revenue |
$ |
50,124 |
$ |
45,963 |
$ |
100,025 |
$ |
90,254 |
Operating earnings |
|
13,427 |
|
12,590 |
|
24,240 |
|
23,766 |
Net gains (losses) |
|
43,254 |
|
7,957 |
|
(118,035) |
|
73,840 |
Net earnings (loss) attributable
to shareholders |
|
50,486 |
|
16,838 |
|
(85,882) |
|
84,058 |
|
|
|
|
|
|
|
|
|
|
EBITDA(1) |
$ |
17,302 |
$ |
16,238 |
$ |
31,672 |
$ |
30,747 |
Adjusted cash flow from
operations(1) |
|
15,403 |
|
12,524 |
|
28,723 |
|
23,028 |
|
|
|
|
|
|
|
|
|
|
Per share: |
|
|
|
|
Net earnings (loss) attributable
to shareholders |
$ |
1.87 |
$ |
0.62 |
$ |
(3.38) |
$ |
3.06 |
EBITDA(1) |
|
0.64 |
|
0.60 |
|
1.18 |
|
1.12 |
Adjusted cash flow from
operations(1) |
|
0.57 |
|
0.46 |
|
1.07 |
|
0.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at |
|
2020 |
2019 |
($ in millions, except per share amounts) |
|
June 30 |
December 31 |
June 30 |
|
|
|
|
|
Assets under management |
|
$ |
31,196 |
$ |
31,147 |
$ |
30,090 |
Assets under administration |
|
|
20,010 |
|
20,248 |
|
18,784 |
Shareholders' equity |
|
|
596 |
|
683 |
|
648 |
Securities |
|
|
511 |
|
682 |
|
663 |
|
|
|
|
|
|
|
|
|
|
Per share: |
|
|
|
|
Shareholders' equity(1) |
|
$ |
22.07 |
$ |
25.01 |
$ |
23.73 |
Securities(1) |
|
|
18.92 |
|
24.99 |
|
24.29 |
|
|
|
|
|
|
|
|
|
|
The Company’s second quarter 2020 Operating
earnings benefited from the sharp rebound in the global financial
markets, as they recovered from the significant declines in the
first quarter of 2020, at the onset of the COVID-19 pandemic. The
Company is reporting Operating earnings of $13.4 million for the
quarter ended June 30, 2020, a 24% increase from $10.8 million
reported in the pandemic-affected first quarter of 2020, and a 7%
increase from the $12.6 million reported in the second quarter of
2019.
The Net revenue for the current quarter grew to
$50.1 million, $4.1 million or 9% higher than the $46.0 million
reported in the same quarter in the prior year. Excluding the
revenue contributions from Aurrea Signature Inc. (“Aurrea”), the
Quebec-based MGA acquired on December 31, 2019, the growth in Net
revenue was $2.3 million. This organic growth was largely in the
Investment Management Segment, which grew its assets under
management (“AUM”) to $31.2 billion from $30.1 billion a year
earlier with an increased proportion of non-Canadian equity AUM,
which earn fees at higher rates. The Global and US equity AUM
now represents approximately 50% of the Company’s institutional
AUM, compared to 39% a year ago.
Expenses in the current quarter were $36.7
million, a $3.3 million increase from $33.4 million in the same
quarter in the prior year. Included in the current quarter’s
expenses are the expenses in Aurrea, plus those in Modern Advisor,
the digital-advisory business acquired in the previous quarter, and
the expenses involved with the expansion of a Canadian Retail Asset
Management team, which is focused on providing investment solutions
to the retail market in Canada. The total expenses associated
with these businesses were $2.8 million in the current
quarter. Without these strategically important investments,
the increase in expenses would have been only $0.5 million.
The Company’s AUM reached $31.2 billion as at
June 30, recovering from the March 31 low point to exceed the
December 31, 2019 levels, providing a 4% growth from June 30,
2019. The sharp recovery in the global financial markets and
significant inflow of assets, largely into the Fundamental Global
Equity strategy managed by our UK subsidiary, drove the growth in
AUM during the current quarter. The AUM managed by the UK
subsidiary has grown to $6.5 billion at the end of the current
quarter, a 44% growth from $4.5 billion at March 31, 2020 and
almost three times the $2.3 billion at the end of the second
quarter of 2019.
The Company’s assets under administration
(“AUA”) were $20.0 billion as at June 30, 2020, compared to $20.2
billion at the end of 2019 and $18.8 billion as at June 30,
2019. Included at June 30 were $0.5 billion of AUA provided
by Aurrea.
As discussed above, the global financial markets
experienced significant recoveries during the second quarter,
causing the fair value of the Company’s Securities to increase,
resulting in Net gains of $43.3 million being recorded in the
current quarter, compared to Net gains of $8.0 million in the same
quarter in the prior year.
As a result of the Net gains and higher
Operating earnings described above, the Company's Net earnings
attributable to shareholders in the current quarter were $50.5
million, compared to $16.8 million in the same quarter in
2019.
EBITDA(1) for the current quarter was $17.3
million, compared to $16.2 million in the same period in the prior
year. Adjusted cash flow from operations(1) for the current
quarter was $15.4 million, compared to $12.5 million in the same
quarter in the prior year.
The Company’s Shareholders’ equity as at June
30, 2020 was $596 million, or $22.07 per share(1), compared to $683
million, or $25.01 per share(1) as at December 31, 2019, and $648
million or $23.73 per share(1) as at June 30, 2019.
As the equity markets rebounded in the second
quarter, the fair value of the Company’s Securities also
experienced a significant rebound, which was largely offset by the
disposal of certain Securities during the quarter, $71 million of
the proceeds from which were used to repay debt. The
repayment of debt has increased the Company’s borrowing capacity to
approximately $100 million. The resulting fair value of the
Company’s Securities as at June 30, 2020 was $511 million, or
$18.92 per share(1), compared to $682 million, or $24.99 per
share(1) as at December 31, 2019 and $663 million or $24.29 per
share(1) as at June 30, 2019.
The Board of Directors has declared a quarterly
eligible dividend of $0.16 per share, payable on October 19, 2020,
to shareholders of record on October 12, 2020.
The Company's financial results for the past eight quarters are
summarized in the following table. All per share figures are
stated on a diluted basis.
|
|
|
|
|
|
|
|
|
|
Jun 30, 2020 |
Mar 31, 2020 |
Dec 31, 2019 |
Sep 30, 2019 |
Jun 30, 2019 |
Mar 31, 2019 |
Dec 31, 2018 |
Sep 30, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at ($ in millions) |
|
|
|
|
|
|
|
|
Assets under management |
$ |
31,196 |
$ |
27,527 |
$ |
31,147 |
$ |
30,243 |
$ |
30,088 |
$ |
29,631 |
$ |
26,962 |
$ |
29,185 |
Assets under administration |
|
20,010 |
|
18,152 |
|
20,248 |
|
19,040 |
|
18,784 |
|
18,745 |
|
17,385 |
|
18,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended ($ in
thousands) |
|
|
|
|
|
|
|
|
Net revenue |
$ |
50,124 |
$ |
49,901 |
$ |
49,865 |
$ |
45,983 |
$ |
45,963 |
$ |
44,291 |
$ |
44,300 |
$ |
42,773 |
Operating earnings |
|
13,427 |
|
10,813 |
|
13,030 |
|
12,105 |
|
12,590 |
|
11,176 |
|
12,137 |
|
12,444 |
Net gains (losses) |
|
43,254 |
|
(161,289) |
|
24,140 |
|
(1,274) |
|
7,957 |
|
65,883 |
|
(89,001) |
|
28,481 |
Net earnings (loss) |
|
51,244 |
|
(134,911) |
|
31,808 |
|
8,952 |
|
17,601 |
|
68,099 |
|
(69,652) |
|
35,079 |
Net earnings (loss) attributable
to shareholders |
|
50,486 |
|
(136,368) |
|
30,787 |
|
8,275 |
|
16,838 |
|
67,220 |
|
(70,449) |
|
34,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to shareholders: |
|
|
|
|
|
|
|
Per Class A and Common share (in
$) |
|
|
|
|
|
|
|
|
Basic |
$ |
1.99 |
$ |
(5.35) |
$ |
1.20 |
$ |
0.32 |
$ |
0.65 |
$ |
2.57 |
$ |
(2.63) |
$ |
1.28 |
Diluted |
|
1.87 |
|
(5.35) |
|
1.13 |
|
0.31 |
|
0.62 |
|
2.43 |
|
(2.63) |
|
1.21 |
|
|
|
|
|
|
|
|
|
Dividends paid (in $) |
$ |
0.160 |
$ |
0.150 |
$ |
0.150 |
$ |
0.150 |
$ |
0.150 |
$ |
0.125 |
$ |
0.125 |
$ |
0.125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at |
|
|
|
|
|
|
|
|
Shareholders' equity ($ in
thousands) |
$ |
596,265 |
$ |
562,821 |
$ |
682,777 |
$ |
653,983 |
$ |
647,983 |
$ |
656,167 |
$ |
599,311 |
$ |
670,382 |
|
|
|
|
|
|
|
|
|
Per Class A and Common share (1)
(in $) |
|
|
|
|
|
|
|
|
Basic |
$ |
23.50 |
$ |
22.18 |
$ |
26.73 |
$ |
25.49 |
$ |
25.26 |
$ |
25.14 |
$ |
22.85 |
$ |
24.98 |
Diluted |
|
22.07 |
|
20.94 |
|
25.01 |
|
23.93 |
|
23.73 |
|
23.66 |
|
21.57 |
|
23.57 |
|
|
|
|
|
|
|
|
|
Total Class A and Common shares outstanding (shares in
thousands) |
|
27,758 |
|
27,758 |
|
27,839 |
|
27,956 |
|
27,956 |
|
28,405 |
|
28,405 |
|
29,012 |
|
|
|
|
|
|
|
|
|
Guardian Capital Group Limited is a diversified
financial services company founded in 1962. The Company
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 life insurance managing general
agency. Its Common and Class A shares are listed on The
Toronto Stock Exchange.
For further information, contact:
Donald Yi
Chief Financial Officer
(416) 350-3136
George MavroudisPresident and Chief Executive
Officer(416) 364-8341
(1) The Company's management uses EBITDA, EBITDA
per share, Adjusted cash flow from operations, Adjusted cash flow
from operations per share, 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, stock-based
compensation, net gains or losses, less 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 non-controlling
interests. The most comparable IFRS measures are Net
earnings, which were $51.2 million for the quarter ended June 30,
2020 (2019 - $17.6 million), and Net cash from operating
activities, which was $24.8million for the quarter ended June 30,
2020 (2019 - $19.3 million). The per share amounts for
EBITDA, Adjusted cash flow from operations, 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 Discussions and Analysis, including a
reconciliation of these measures to their most comparable IFRS
measures.
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