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) |
2024 |
2023 |
2024 |
2023 |
|
|
|
|
|
|
|
Net revenue |
$ |
64,164 |
|
$ |
61,833 |
|
$ |
126,661 |
|
$ |
116,326 |
| Operating earnings |
|
14,333 |
|
|
17,038 |
|
|
26,651 |
|
|
28,278 |
| Net gains (losses) |
|
(39,161 |
) |
|
(3,736 |
) |
|
(26,424 |
) |
|
14,398 |
| Net earnings (loss) from
continuing operations |
|
(22,730 |
) |
|
11,532 |
|
|
(1,289 |
) |
|
36,784 |
| Net earnings from discontinued
operations |
|
-- |
|
|
-- |
|
|
-- |
|
|
554,933 |
| Net earnings (loss) |
|
(22,730 |
) |
|
11,532 |
|
|
(1,289 |
) |
|
591,717 |
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA (1) |
$ |
21,376 |
|
$ |
23,199 |
|
$ |
40,282 |
|
$ |
40,570 |
| Adjusted cash flow from
operations (1) |
|
14,740 |
|
|
15,903 |
|
|
29,949 |
|
|
34,000 |
|
|
|
|
|
|
|
|
|
|
|
|
| Attributable to
shareholders: |
|
|
|
|
| Net earnings (loss) from
continuing operations |
$ |
(23,137 |
) |
$ |
11,145 |
|
$ |
(1,970 |
) |
$ |
36,069 |
| Net earnings (loss) |
|
(23,137 |
) |
|
11,145 |
|
|
(1,970 |
) |
|
498,748 |
| EBITDA (1) |
|
20,688 |
|
|
22,303 |
|
|
39,013 |
|
|
38,698 |
| Adjusted cash flow from
operations (1) |
|
13,853 |
|
|
14,967 |
|
|
28,540 |
|
|
32,080 |
| Per share amounts (diluted): |
|
|
|
|
| Net earnings (loss) from
continuing operations |
$ |
(0.99 |
) |
$ |
0.45 |
|
$ |
(0.08 |
) |
$ |
1.48 |
| Net earnings (loss) |
|
(0.99 |
) |
|
0.45 |
|
|
(0.08 |
) |
|
19.45 |
| EBITDA (1) |
|
0.89 |
|
|
0.89 |
|
|
1.67 |
|
|
1.54 |
| Adjusted cash flow from
operations (1) |
|
0.59 |
|
|
0.60 |
|
|
1.22 |
|
|
1.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at |
2024 |
2023 |
2023 |
|
($ in millions, except per share amounts) |
June 30 |
December 31 |
June 30 |
|
|
|
|
|
|
Assets under management |
$ |
54,689 |
$ |
54,694 |
$ |
52,754 |
|
Assets under advisement |
|
3,939 |
|
4,080 |
|
3,773 |
|
|
|
|
|
| Total Client Assets |
|
58,628 |
|
58,774 |
|
56,527 |
|
|
|
|
|
| |
|
|
|
| Shareholders' equity |
$ |
1,223 |
$ |
1,241 |
$ |
1,213 |
| Securities |
|
1,130 |
|
1,318 |
|
1,274 |
| Per share amounts (diluted): |
|
|
|
| Shareholders'
equity (1) |
$ |
49.34 |
$ |
49.39 |
$ |
47.63 |
| Securities (1) |
|
45.61 |
|
52.44 |
|
50.05 |
|
|
|
|
|
|
|
|
|
|
The Company is reporting Total Clients Assets of
$58.6 billion as at June 30, 2024, which include assets under
management (“AUM”) and assets under advisement (“AUA”). This is a
slight decrease from $58.8 billion as at December 31, 2023, and a
4% increase from $56.5 billion reported as at June 30, 2023.
The Company’s Operating earnings were $14.3
million for the quarter ended June 30, 2024, a decrease of $2.7
million from $17.0 million in the same quarter in the prior year.
EBITDA(1) $21.4 million for the current quarter, compared to $23.2
million in the same quarter in the prior year.
Net revenue for the current quarter was $64.2
million, a 4% increase from $61.8 million in the same quarter in
the prior year. Operating expenses were 11% higher in the current
quarter at $49.8 million, compared to $44.8 million in the same
period in the prior year. The increase reflects the Company’s
continued strategic investments in technology enhancements.
Net losses in the current quarter were $39.2
million, compared to $3.8 million in the same quarter in the prior
year, which largely reflect the changes in fair values of
Guardian’s Securities portfolio, mainly as a result of net losses
from Guardian’s investment in Bank of Montreal common shares.
Net earnings (loss) attributable to shareholders
was $(23.1) million in the current quarter, compared to $11.1 in
the comparative period, mainly as a result of net losses from
Guardian’s Securities portfolio.
Adjusted cash flow from operations attributable
to shareholders(1) for the current quarter was $13.9 million,
compared to $15.0 million in the comparative period.
During the current quarter, the Company returned
to shareholders $9.1 million in dividends and $8.0 million in share
buybacks.
The Company’s Shareholders’ equity as at June
30, 2024 was $1,223 million, or $49.34 per share(1), compared to
$1,241 million, or $49.39 per share(1) as at December 31, 2023. The
Company’s Securities as at June 30, 2024 had a fair value of $1,130
million, or $45.61 per share(1), compared to $1,318 million, or
$52.44 per share(1) as at December 31, 2023.
The Board of Directors is pleased to have
declared a quarterly eligible dividend of $0.37 per share, payable
on October 18, 2024, to shareholders of record on October 11,
2024.
Subsequent to the end of the quarter, on July 2,
2024, the Company completed its previously announced acquisition of
Sterling Capital Management LLC (“Sterling”), a Charlotte, North
Carolina-based investment management firm. On closing, the Company
paid US$68.9 million, based on a US $70 million base-purchase
price, net of various estimated adjustments, including estimated
net working capital. These estimated adjustments are subject to
true-ups over a period of up to 150 days from Closing. All existing
employees of Sterling, including its senior executive team, have
continued their employment under the new ownership.
The Company's financial results for the past eight quarters are
summarized in the following table.
|
|
|
|
|
|
|
|
|
|
|
|
Jun 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
Mar 31, 2023 |
Dec 31, 2022 |
Sep 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| As at ($ in millions) |
|
|
|
|
|
|
|
|
|
Assets under management |
$ |
54,689 |
|
$ |
57,276 |
$ |
54,694 |
$ |
52,310 |
|
$ |
52,754 |
|
$ |
52,261 |
$ |
49,587 |
$ |
47,814 |
|
| Assets under advisement |
|
3,939 |
|
|
4,040 |
|
4,080 |
|
3,905 |
|
|
3,773 |
|
|
4,065 |
|
3,716 |
|
3,788 |
|
|
Total Client Assets |
|
58,628 |
|
|
61,316 |
|
58,774 |
|
56,215 |
|
|
56,527 |
|
|
56,326 |
|
53,303 |
|
51,602 |
|
|
|
|
|
|
|
|
|
|
|
| For the three months
ended ($ in thousands) |
|
|
|
|
|
|
| Net revenue |
$ |
64,164 |
|
$ |
62,497 |
$ |
62,245 |
$ |
62,611 |
|
$ |
61,833 |
|
$ |
54,493 |
$ |
50,681 |
$ |
48,434 |
|
| Operating earnings |
|
14,333 |
|
|
12,318 |
|
13,097 |
|
18,474 |
|
|
17,038 |
|
|
11,240 |
|
8,790 |
|
10,419 |
|
| Net gains (losses) |
|
(39,161 |
) |
|
12,737 |
|
60,747 |
|
(17,358 |
) |
|
(3,736 |
) |
|
18,134 |
|
18,225 |
|
(21,148 |
) |
| Net earnings (losses) from
continuing operations |
|
(22,730 |
) |
|
21,441 |
|
68,048 |
|
(2,270 |
) |
|
11,532 |
|
|
24,852 |
|
25,249 |
|
(11,582 |
) |
| Net earnings from discontinued
operations |
|
-- |
|
|
-- |
|
-- |
|
-- |
|
|
-- |
|
|
554,933 |
|
6,386 |
|
5,034 |
|
| Net earnings (losses) |
|
(22,730 |
) |
|
21,441 |
|
68,048 |
|
(2,270 |
) |
|
11,532 |
|
|
579,785 |
|
31,635 |
|
(6,548 |
) |
| Net earnings (loss) from
continuing operations attributable to shareholders |
|
(23,137 |
) |
|
21,167 |
|
67,087 |
|
(2,506 |
) |
|
11,145 |
|
|
24,524 |
|
24,679 |
|
(11,780 |
) |
| Net earnings (loss) attributable
to shareholders |
|
(23,137 |
) |
|
21,167 |
|
67,087 |
|
(2,506 |
) |
|
11,145 |
|
|
487,203 |
|
29,961 |
|
(7,608 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Per share amounts (in $) |
|
|
|
|
|
|
|
|
| Net earnings (loss)
from continuing operations attributable to shareholders |
|
|
| Basic |
$ |
(0.99 |
) |
$ |
0.90 |
$ |
2.85 |
$ |
(0.11 |
) |
$ |
0.47 |
|
$ |
1.04 |
$ |
1.02 |
$ |
(0.49 |
) |
| Diluted |
|
(0.99 |
) |
|
0.86 |
|
2.68 |
|
(0.11 |
) |
|
0.45 |
|
|
1.00 |
|
0.96 |
|
(0.49 |
) |
| Net earnings (loss)
attributable to shareholders: |
|
|
|
|
|
|
| Basic |
$ |
(0.99 |
) |
$ |
0.90 |
$ |
2.85 |
$ |
(0.11 |
) |
$ |
0.47 |
|
$ |
20.27 |
$ |
1.24 |
$ |
(0.31 |
) |
| Diluted |
|
(0.99 |
) |
|
0.86 |
|
2.68 |
|
(0.11 |
) |
|
0.45 |
|
|
18.79 |
|
1.16 |
|
(0.31 |
) |
| |
|
|
|
|
|
|
|
|
| Dividends paid |
$ |
0.37 |
|
$ |
0.34 |
$ |
0.34 |
$ |
0.34 |
|
$ |
0.34 |
|
$ |
0.24 |
$ |
0.24 |
$ |
0.24 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| As at |
|
|
|
|
|
|
|
|
| Shareholders' equity ($ in
millions) |
$ |
1,223 |
|
$ |
1,255 |
$ |
1,241 |
$ |
1,201 |
|
$ |
1,213 |
|
$ |
1,242 |
$ |
768 |
$ |
743 |
|
| Per share amounts (in
$) |
|
|
|
|
|
|
|
|
| Basic |
$ |
52.59 |
|
$ |
53.69 |
$ |
52.87 |
$ |
50.90 |
|
$ |
51.11 |
|
$ |
52.42 |
$ |
31.84 |
$ |
30.82 |
|
| Diluted |
|
49.34 |
|
|
50.30 |
|
49.39 |
|
47.54 |
|
|
47.63 |
|
|
48.73 |
|
29.43 |
|
28.88 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Class A and Common shares outstanding(shares in
thousands) |
|
24,959 |
|
|
25,136 |
|
25,230 |
|
25,408 |
|
|
25,609 |
|
|
26,113 |
|
26,246 |
|
26,246 |
|
|
|
|
|
|
|
|
|
|
|
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 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, 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 June 30, |
Three months |
Six months |
|
($ in thousands) |
2024 |
2023 |
2024 |
2023 |
|
|
|
|
|
|
|
Net earnings (loss) |
$ |
(22,730 |
) |
$ |
11,532 |
|
$ |
(1,289 |
) |
$ |
591,717 |
|
| Add (deduct): |
|
|
|
|
| Net earnings from discontinued
operations |
|
-- |
|
|
-- |
|
|
-- |
|
|
(554,933 |
) |
| Income tax expense
(recovery) |
|
(2,098 |
) |
|
1,770 |
|
|
1,516 |
|
|
5,892 |
|
| Net (gains) losses |
|
39,161 |
|
|
3,736 |
|
|
26,424 |
|
|
(14,398 |
) |
| Stock-based compensation |
|
1,058 |
|
|
921 |
|
|
1,924 |
|
|
1,837 |
|
| Interest expense |
|
2,629 |
|
|
2,053 |
|
|
5,078 |
|
|
3,982 |
|
| Amortization |
|
3,356 |
|
|
3,187 |
|
|
6,629 |
|
|
6,473 |
|
|
EBITDA |
|
21,376 |
|
|
23,199 |
|
|
40,282 |
|
|
40,570 |
|
| Less attributable to
non-controlling interests in continuing operations |
|
(688 |
) |
|
(896 |
) |
|
(1,269 |
) |
|
(1,872 |
) |
|
EBITDA attributable to shareholders |
$ |
20,688 |
|
$ |
22,303 |
|
$ |
39,013 |
|
$ |
38,698 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
For the periods ended June 30, |
Three months |
Six months |
|
($ in thousands) |
2024 |
2023 |
2024 |
2023 |
|
|
|
|
|
|
|
Net cash from operating activities |
$ |
14,873 |
|
$ |
14,882 |
|
$ |
6,466 |
|
$ |
25,069 |
|
| Add (deduct): |
|
|
|
|
| Net cash from operating
activities, discontinued operations |
|
-- |
|
|
-- |
|
|
-- |
|
|
(10,087 |
) |
| Net change in non-cash working
capital items |
|
(133 |
) |
|
1,021 |
|
|
23,483 |
|
|
9,305 |
|
| Net change in non-cash working
capital items, discontinued operations |
|
-- |
|
|
-- |
|
|
-- |
|
|
9,713 |
|
|
Adjusted cash flow from operations |
|
14,740 |
|
|
15,903 |
|
|
29,949 |
|
|
34,000 |
|
| Less attributable to
non-controlling interests, continuing operations |
|
(887 |
) |
|
(936 |
) |
|
(1,409 |
) |
|
(1,920 |
) |
|
Adjusted cash flow from operations attributable to
shareholders |
$ |
13,853 |
|
$ |
14,967 |
|
$ |
28,540 |
|
$ |
32,080 |
|
| |
|
|
|
|
The per share amounts for EBITDA attributable to
shareholders, Adjusted cash flow from operations attributable to
shareholders, Shareholders' equity and Securities per share 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.
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