TORONTO, Feb. 22, 2018 (GLOBE NEWSWIRE) -- Guardian Capital Group Limited (TSX:GCG) (TSX:GCG.A) -
All per share figures disclosed below are stated on a diluted basis.
| For the years ended December 31 | |||||||
| ($ in thousands, except per share amounts) | 2017 | 2016 | |||||
| Net revenue | $ | 151,238 | $ | 142,686 | |||
| Operating earnings | 48,169 | 44,667 | |||||
| Net gains | 62,534 | 38,617 | |||||
| Net earnings available to shareholders | 93,692 | 69,475 | |||||
| EBITDA(1) | $ | 52,754 | $ | 49,549 | |||
| Adjusted cash flow from operations (1) | 41,313 | 38,659 | |||||
| Per share: | |||||||
| Net earnings available to shareholders | $ | 3.19 | $ | 2.32 | |||
| EBITDA(1) | 1.80 | 1.66 | |||||
| Adjusted cash flow from operations (1) | 1.41 | 1.30 | |||||
| As at December 31 | 2017 | 2016 | |||||
| ($ in millions, except per share amounts) | |||||||
| Assets under management | $ | 27,250 | $ | 27,280 | |||
| Assets under administration | 17,795 | 16,489 | |||||
| Shareholders' equity | 634 | 580 | |||||
| Securities | 652 | 620 | |||||
| Per share: | |||||||
| Shareholders' equity(1) | $ | 21.88 | $ | 19.62 | |||
| Securities(1) | 22.49 | 20.97 | |||||
The Company’s operating earnings in the current year were $48.2 million, compared to $44.7 million in 2016. The operating earnings grew 8%, while continuing to invest for future growth in the business.
Net gains for the current year were $62.5 million, compared to $38.6 million in the prior year. The significant increase in net gains was due largely to increases in fair value of securities held within the investment funds consolidated in the financial statements of the Company.
Net earnings available to shareholders in 2017 were $93.7 million, compared to $69.5 million in the prior year. This 35% increase was due largely to the increased net gains and operating earnings as described above.
With the strong increase in net earnings, the Board of Directors is pleased to announce a quarterly eligible dividend of $0.125 per share, an increase of 25%, payable on April 18, 2018, to shareholders of record on April 11, 2018.
The Company’s assets under management (“AUM”) were $27.3 billion as at December 31, 2017, unchanged from the prior year. The positive effects of the broad equity market performance was offset by net sales outflows across various client segments, primarily across Canadian equity strategies. The Company’s assets under administration (“AUA”) were $17.8 billion as at December 31, 2017, an 8% increase compared to $16.5 billion at the end of the prior year. The increase in AUA was due to successful efforts in advisor recruitment, net new sales and the positive market performance during the current year.
EBITDA(1) for the year was $52.8 million, or $1.80 per share, compared to $49.5 million, or $1.66 per share for 2016. Adjusted cash flow from operations(1) for the year was $41.3 million, or $1.41 per share, compared to $38.7 million, or $1.30 per share for 2016. The improvement in each of these measures reflect the growth in operating earnings for the year. These two non-IFRS financial measures used by the Company are defined in our quarterly and annual Management’s Discussion and Analysis.
The Company’s shareholders’ equity as at December 31, 2017 was $634 million, or $21.88 per share, compared to $580 million, or $19.62 per share, as at December 31, 2016. The fair value of the Company’s Securities as at December 31, 2017 was $652 million, or $22.49 per share, up from $620 million, or $20.97 per share, as at December 31, 2016.
The following table summarizes Guardian’s financial results for the past eight quarters.
| Three months ended | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||||
| ($ in thousands) | ||||||||||||||||
| Net revenue | $ | 39,097 | $ | 36,315 | $ | 37,208 | $ | 38,618 | $ | 38,240 | $ | 35,185 | $ | 34,191 | $ | 35,070 |
| Operating earnings | 13,046 | 10,505 | 12,160 | 12,458 | 12,371 | 10,646 | 10,300 | 11,350 | ||||||||
| Net gains | 23,175 | 10,987 | 10,783 | 17,589 | 10,754 | 10,057 | 1,028 | 16,778 | ||||||||
| Net earnings | 31,799 | 18,232 | 19,638 | 25,518 | 19,859 | 17,475 | 9,169 | 24,072 | ||||||||
| Net earnings available to shareholders | 31,315 | 17,987 | 19,387 | 25,003 | 19,417 | 17,353 | 8,887 | 23,818 | ||||||||
| Shareholders' equity | 634,416 | 608,013 | 603,428 | 605,039 | 580,177 | 545,339 | 513,939 | 497,656 | ||||||||
| Per Class A and Common share (in $) | ||||||||||||||||
| Net earnings available to shareholders | ||||||||||||||||
| Basic | $ | 1.13 | $ | 0.65 | $ | 0.70 | $ | 0.91 | $ | 0.69 | $ | 0.61 | $ | 0.31 | $ | 0.83 |
| Diluted | 1.07 | 0.61 | 0.67 | 0.86 | 0.65 | 0.58 | 0.30 | 0.79 | ||||||||
| Shareholders' equity (1) | ||||||||||||||||
| Basic | $ | 23.20 | $ | 21.87 | $ | 21.75 | $ | 21.81 | $ | 20.75 | $ | 19.11 | $ | 18.08 | $ | 17.51 |
| Diluted | 21.88 | 20.67 | 20.54 | 20.58 | 19.62 | 18.07 | 17.10 | 16.63 | ||||||||
| Dividends paid | $ | 0.100 | $ | 0.100 | $ | 0.100 | $ | 0.085 | $ | 0.085 | $ | 0.085 | $ | 0.085 | $ | 0.075 |
Guardian Capital Group Limited is a diversified financial services company founded in 1962 and celebrated its 55th anniversary in 2017. The Company provides institutional and high net worth investment management services to clients; 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.
| For further information, contact: | ||
| Donald Yi Chief Financial Officer (416) 350-3136 | George Mavroudis President and Chief Executive Officer (416) 364-8341 | |
(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 meanings 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 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 net of non-controlling interests. The most comparable IFRS measures are Net earnings, which was $95,187 for the year ended December 31, 2017 (2016 - $70,575), and Net cash from operating activities, which was $44,638 for the year ended December 31, 2017 (2016 - $42,515). 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 the calculation of Net earnings available to shareholders per share.
More detailed descriptions of these non-IFRS measures are provided in the Company's quarterly and annual Management's Discussions and Analysis, including a reconciliation of these measures to their most comparable IFRS measures.