All per share figures disclosed below are stated
on a diluted basis.
|
|
|
|
|
|
|
For the periods ended September 30, |
Three months |
|
Nine months |
|
|
($ in thousands, except per share amounts) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
| Net revenue |
$ |
72,226 |
|
$ |
72,384 |
|
$ |
221,400 |
|
$ |
207,038 |
| Operating earnings |
|
16,047 |
|
|
20,771 |
|
|
52,570 |
|
|
59,474 |
| Net gains (losses) |
|
(19,835 |
) |
|
(8,146 |
) |
|
(117,945 |
) |
|
90,292 |
| Net earnings (loss) |
|
(6,548 |
) |
|
8,597 |
|
|
(68,957 |
) |
|
126,289 |
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA(1) |
$ |
24,410 |
|
$ |
27,349 |
|
$ |
76,372 |
|
$ |
78,333 |
| Adjusted cash flow from
operations(1) |
|
17,743 |
|
|
23,219 |
|
|
56,177 |
|
|
65,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Attributable to
shareholders: |
|
|
|
|
| Net earnings (loss) |
$ |
(7,608 |
) |
$ |
7,054 |
|
$ |
(73,044 |
) |
$ |
121,817 |
| EBITDA(1) |
|
22,396 |
|
|
24,703 |
|
|
69,284 |
|
|
70,622 |
| Adjusted cash flow from
operations(1) |
|
15,880 |
|
|
20,795 |
|
|
49,853 |
|
|
58,488 |
| Per share: |
|
|
|
|
| Net earnings (loss) |
$ |
(0.31 |
) |
$ |
0.27 |
|
$ |
(2.99 |
) |
$ |
4.53 |
| EBITDA(1) |
|
0.93 |
|
|
0.93 |
|
|
2.67 |
|
|
2.63 |
| Adjusted cash flow from
operations(1) |
|
0.62 |
|
|
0.79 |
|
|
1.93 |
|
|
2.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at |
|
2022 |
2021 |
|
|
($ in millions, except per share amounts) |
|
September 30 |
December 31 |
September 30 |
|
|
|
|
|
|
|
Assets under management |
|
$ |
47,814 |
$ |
56,341 |
$ |
53,113 |
|
Assets under administration |
|
|
26,786 |
|
31,508 |
|
30,015 |
|
Total client assets |
|
|
74,600 |
|
87,849 |
|
83,128 |
| Shareholders' equity |
|
$ |
743 |
$ |
839 |
$ |
781 |
| Securities |
|
|
648 |
|
752 |
|
689 |
| |
|
|
|
|
|
|
|
|
|
|
| Per share (diluted): |
|
|
|
|
| Shareholders' equity(1) |
|
$ |
28.88 |
$ |
31.53 |
$ |
29.40 |
| Securities(1) |
|
|
25.16 |
|
28.27 |
|
25.91 |
|
|
|
|
|
|
|
|
|
|
|
|
The Company is reporting $74.6 billion in total
client assets as at September 30, 2022, which include assets under
management (“AUM”) and assets under administration (“AUA”). This is
a 10% decrease from $83.1 billion as at September 30, 2021, and a
15% decrease from $87.8 billion reported as at December 31, 2021.
The Company is reporting AUM of $47.8 billion as at September 30,
2022, a 10% decrease from $53.1 billion as at September 30, 2021,
and a 15% decrease from $56.3 billion as at December 31, 2021. The
decrease in AUM was driven largely by the negative global financial
market performance and, to a lesser extent, net redemptions
reported in earlier quarters this year, partially offset by the
acquisition completed in the current quarter. The Company’s AUA was
$26.8 billion as at September 30, 2022, an 11% decrease from $30.0
billion as at September 30, 2021, and a 15% decrease from $31.5
billion as at December 31, 2021.
The Company is reporting Operating earnings of
$16.0 million for the quarter ended September 30, 2022, a decrease
of 23% or $4.8 million from the $20.8 million reported in the third
quarter of 2021. The decrease in AUM from its peak at the end of
2021 has continued to negatively impact the Company’s Net revenue,
but this has been partially offset by revenues which are not as
sensitive to levels of AUM. Expenses increased over the same period
by 9% or $4.6 million, as detailed below.
Net revenue for the current quarter declined
slightly to $72.2 million from $72.4 million reported in the same
quarter in the prior year. Revenues sensitive to the level of
average AUM, such as net management fees, decreased in the current
period, but this decrease was largely offset by higher dividends
earned on the Company’s securities portfolio and interest earned on
cash balances.
Expenses in the current quarter were $56.2
million, a $4.6 million increase from $51.6 million in the same
quarter in the prior year. The higher expenses reflect the Company
continuing to invest in the strategically important initiatives of
building both our retail distribution capabilities and private
infrastructure business, Guardian Smart Infrastructure Management
Inc. We have also experienced increased expenses related to
integrating recently acquired businesses, and higher borrowing
costs due to the recent increases in interest rates.
Net losses in the current quarter were $19.8
million, compared to Net losses of $8.1 million in the same quarter
in the prior year. The largest portion of the Net losses in the
current quarter was attributable to the declines in fair values of
our securities holdings resulting from the negative performance in
the global financial markets to which those securities are
exposed.
The Company's Net loss attributable to
shareholders in the current quarter was $7.6 million, compared to
Net earnings attributable to shareholders of $7.1 million in the
same quarter in 2021. The significant Net losses associated with
our securities holdings, as described above, compared to the
smaller Net losses in the prior year, and the decline in operating
earnings, largely accounted for the reduction in Net (loss)
earnings attributable to shareholders.
EBITDA attributable to shareholders(1) for the
current quarter was $22.4 million, compared to $24.7 million in the
same period in the prior year. Adjusted cash flow from operations
attributable to shareholders(1) for the current quarter was $15.9
million, compared to $20.8 million in the same quarter in the prior
year.
The Company’s Shareholders’ equity as at
September 30, 2022 was $743 million, or $28.88 per share(1),
compared to $839 million, or $31.53 per share(1) as at December 31,
2021, and $781 million, or $29.40 per share(1) as at September 30,
2021. During the current quarter, the Company returned to
shareholders $6.2 million in dividends and $2.9 million in share
buybacks. The fair value of the Company’s Securities as
at September 30, 2022 was $648 million, or $25.16 per share(1),
compared to $752 million, or $28.27 per share(1) as at December 31,
2021 and $689 million, or $25.91 per share(1) as at September 30,
2021.
The Board of Directors has declared a quarterly
eligible dividend of $0.24 per share, payable on January 18, 2023,
to shareholders of record on January 11, 2023.
The Company's financial results for the past eight quarters are
summarized in the following table.
|
|
|
|
|
|
|
|
|
|
|
|
Sep 30, 2022 |
Jun 30, 2022 |
Mar 31, 2022 |
Dec 31, 2021 |
Sep 30, 2021 |
Jun 30, 2021 |
Mar 31, 2021 |
Dec 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| As at ($ in millions) |
|
|
|
|
|
|
|
|
|
Assets under management |
$ |
47,814 |
|
$ |
46,931 |
|
$ |
53,123 |
|
$ |
56,341 |
$ |
53,113 |
|
$ |
51,641 |
$ |
47,945 |
$ |
45,984 |
|
Assets under administration |
|
26,786 |
|
|
27,626 |
|
|
30,526 |
|
|
31,508 |
|
30,015 |
|
|
29,902 |
|
28,376 |
|
22,289 |
| Total client assets |
|
74,600 |
|
|
74,557 |
|
|
83,649 |
|
|
87,849 |
|
83,128 |
|
|
81,543 |
|
76,321 |
|
68,273 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For the three months
ended ($ in thousands) |
|
|
|
|
|
|
| Net revenue |
$ |
72,226 |
|
$ |
74,109 |
|
$ |
75,065 |
|
$ |
78,049 |
$ |
72,384 |
|
$ |
69,960 |
$ |
64,694 |
$ |
63,724 |
| Operating earnings |
|
16,047 |
|
|
17,157 |
|
|
19,366 |
|
|
22,314 |
|
20,771 |
|
|
21,199 |
|
17,504 |
|
18,493 |
| Net gains (losses) |
|
(19,835 |
) |
|
(90,128 |
) |
|
(7,982 |
) |
|
52,331 |
|
(8,146 |
) |
|
56,467 |
|
41,971 |
|
80,983 |
| Net earnings (losses) |
|
(6,548 |
) |
|
(68,224 |
) |
|
5,815 |
|
|
64,451 |
|
8,597 |
|
|
66,831 |
|
50,861 |
|
87,083 |
| Net earnings (loss) attributable
to shareholders |
|
(7,608 |
) |
|
(69,698 |
) |
|
4,262 |
|
|
62,421 |
|
7,054 |
|
|
65,138 |
|
49,625 |
|
86,039 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in $) |
|
|
|
|
|
|
|
|
| Net earnings (loss)
attributable to shareholders: |
|
|
|
|
|
|
| Per Class A and
Common share |
|
|
|
|
|
|
|
| Basic |
$ |
(0.31 |
) |
$ |
(2.85 |
) |
$ |
0.17 |
|
$ |
2.52 |
$ |
0.28 |
|
$ |
2.59 |
$ |
1.95 |
$ |
3.38 |
| Diluted |
|
(0.31 |
) |
|
(2.85 |
) |
|
0.16 |
|
|
2.35 |
|
0.27 |
|
|
2.42 |
|
1.83 |
|
3.17 |
| Dividends paid on Class A and
Common shares |
$ |
0.24 |
|
$ |
0.24 |
|
$ |
0.18 |
|
$ |
0.18 |
$ |
0.18 |
|
$ |
0.18 |
$ |
0.16 |
$ |
0.16 |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| As at |
|
|
|
|
|
|
|
|
| Shareholders' equity ($ in
thousands) |
$ |
743,331 |
|
$ |
742,917 |
|
$ |
828,404 |
|
$ |
838,520 |
$ |
781,334 |
|
$ |
780,323 |
$ |
737,363 |
$ |
699,610 |
|
|
|
|
|
|
|
|
|
|
| Per Class A and
Common share (in $) |
|
|
|
|
|
|
|
| Basic |
$ |
30.82 |
|
$ |
30.68 |
|
$ |
33.67 |
|
$ |
33.89 |
$ |
31.56 |
|
$ |
31.15 |
$ |
29.02 |
$ |
27.43 |
| Diluted |
|
28.88 |
|
|
28.74 |
|
|
31.27 |
|
|
31.53 |
|
29.40 |
|
|
29.09 |
|
27.14 |
|
25.69 |
|
|
|
|
|
|
|
|
|
|
|
Total Class A and Common shares outstanding (shares in
thousands) |
|
26,246 |
|
|
26,342 |
|
|
26,892 |
|
|
26,954 |
|
26,968 |
|
|
27,263 |
|
27,691 |
|
27,740 |
|
|
|
|
|
|
|
|
|
|
Guardian Capital Group Limited (Guardian) is a
diversified, global financial services company operating in two
main business segments: Investment Management and Wealth
Management. Guardian provides extensive investment management
solutions to institutional and private wealth clients through its
subsidiaries, while offering comprehensive wealth management
services to financial advisors in its national mutual fund dealer,
securities dealer and insurance distribution network. 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 Guardian believes that the expectations
reflected in such forward-looking information are reasonable, such
information involves known and unknown risks and uncertainties
which may cause Guardian’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 duration and severity of the current COVID pandemic, the
ongoing conflict in the Ukraine, as well as those risk factors
discussed or referred to in the disclosure documents filed by
Guardian 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 Guardian’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, stock-based compensation, net gains or losses
and 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
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 periods ended September
30, |
Three months |
|
Nine months |
|
|
($ in thousands) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
| Net earnings (loss) |
$ |
(6,548 |
) |
$ |
8,597 |
|
$ |
(68,957 |
) |
$ |
126,289 |
|
| Add (deduct): |
|
|
|
|
| Income tax expense |
|
2,760 |
|
|
4,028 |
|
|
3,582 |
|
|
23,477 |
|
| Net (gains) losses |
|
19,835 |
|
|
8,146 |
|
|
117,945 |
|
|
(90,292 |
) |
| Stock-based compensation |
|
1,112 |
|
|
771 |
|
|
2,893 |
|
|
2,199 |
|
| Interest expense |
|
1,496 |
|
|
351 |
|
|
2,944 |
|
|
1,047 |
|
|
Amortization |
|
5,755 |
|
|
5,456 |
|
|
17,965 |
|
|
15,613 |
|
| EBITDA |
|
24,410 |
|
|
27,349 |
|
|
76,372 |
|
|
78,333 |
|
| Non-controlling interests |
|
(2,014 |
) |
|
(2,646 |
) |
|
(7,088 |
) |
|
(7,711 |
) |
|
EBITDA attributable to shareholders |
$ |
22,396 |
|
$ |
24,703 |
|
$ |
69,284 |
|
$ |
70,622 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| For
the periods ended September 30, |
Three months |
|
Nine months |
|
|
($ in thousands) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
| Net cash from operating
activities |
$ |
25,954 |
|
$ |
38,058 |
|
$ |
52,935 |
|
$ |
70,477 |
|
| Add (deduct): |
|
|
|
|
|
Net change in non-cash working capital items |
|
(8,211 |
) |
|
(14,839 |
) |
|
3,242 |
|
|
(4,906 |
) |
| Adjusted cash flow from
operations |
|
17,743 |
|
|
23,219 |
|
|
56,177 |
|
|
65,571 |
|
| Non-controlling interests |
|
(1,863 |
) |
|
(2,424 |
) |
|
(6,324 |
) |
|
(7,083 |
) |
|
Adjusted cash flow from operations attributable to
shareholders |
$ |
15,880 |
|
$ |
20,795 |
|
$ |
49,853 |
|
$ |
58,488 |
|
|
|
|
|
|
|
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.
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