Guardian Capital Group Limited (TSX: GCG; GCG.A) Announces 2024 Third Quarter Operating Results
TORONTO, Nov. 07, 2024 (GLOBE NEWSWIRE) --
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)
2024
2023
2024
2023
Net revenue
$
98,128
$
62,611
$
224,789
$
178,937
Operating earnings
3,594
18,474
30,245
46,752
Net gains (losses)
39,999
(17,358)
13,575
(2,960)
Net earnings (loss) from continuing operations
39,069
(2,270)
37,780
34,514
Net earnings (loss) from discontinued operations
--
--
--
554,933
Net earnings (loss)
39,069
(2,270)
37,780
589,447
EBITDA (1)
$
14,120
$
24,611
$
54,402
$
65,181
Adjusted cash flow from operations (1)
13,979
21,568
43,928
55,568
Attributable to shareholders:
Net earnings (loss) from continuing operations
$
38,633
$
(2,506)
$
36,663
$
33,563
Net earnings (loss)
38,633
(2,506)
36,663
496,242
EBITDA(1)
13,407
23,986
52,428
62,683
Adjusted cash flow from operations (1)
13,328
20,971
41,876
53,051
Per share amounts (diluted):
Net earnings (loss) from continuing operations
$
1.58
$
(0.11)
$
1.49
$
1.40
Net earnings (loss)
1.58
(0.11)
1.49
19.40
EBITDA(1)
0.56
1.02
2.12
2.49
Adjusted cash flow from operations (1)
0.56
0.89
1.70
2.12
As at
2024
2023
2023
($ in millions, except per share amounts)
September 30
December 31
September 30
Total client assets
$
165,061
$
58,774
$
56,215
Shareholders' equity
1,244
1,241
1,201
Securities
1,168
1,318
1,276
Per share amounts (diluted):
Shareholders' equity (1)
$
50.35
$
49.39
$
47.54
Securities (1)
47.27
52.44
50.49
During the quarter ended September 30, 2024, Guardian closed the previously announced acquisitions: On July 2, 2024, the acquisition of 100% equity interest in Sterling Capital Management LLC ("Sterling"), a Charlotte, North Carolina-based investment management firm with US $76.9 billion in Total Clients Assets (which includes Assets Under Management and Assets Under Advisement) as at September 30, 2024; and on September 3, 2024, the acquisition of 100% equity interest in Galibier Capital Management Ltd. ("Galibier") a Toronto, Canada-based investment management firm with Total Client Assets of $1.1 billion, as at September 30, 2024. The following discussions include the financial results of the two acquired businesses from the date of their acquisitions, which resulted in certain consolidated measures, such as Total Client Assets, Net revenues and Expenses, experiencing larger than usual increases. Also, Guardian incurred transaction and other related costs ("Transitional" costs), arising from these acquisitions, which are expected to be either one-time or short-term in nature. These Transitional costs have had a dampening effect on certain of the measures, such as Operating earnings and EBITDA(1) in the current quarter.
Guardian is reporting Total Client Assets of $165.1 billion as at September 30, 2024, which includes $105 billion of additions from the two acquired businesses.
Guardian's Net revenue for the current quarter was $98.1 million, compared to $62.6 million in the same quarter in the prior year, with $37.4 million being contributed by the two acquired businesses.
Guardian's Operating earnings and EBITDA(1) were $3.6 million and $14.1 million, respectively, for the quarter ended September 30, 2024, compared to $18.5 million and $24.6 million, respectively, in the same quarter in the prior year. Included in the current results were $10.1 million of Transitional costs described above.
Net gains in the current quarter were $40.0 million, compared to Net losses of $17.4 million in the same quarter in the prior year, which largely reflect the changes in fair values of Guardian's Securities portfolio.
Net earnings attributable to shareholders were $38.6 million in the current quarter, compared to a loss of $2.5 million in the comparative period, resulting largely from the Net gains described above.
Adjusted cash flow from operations attributable to shareholders(1) for the current quarter was $13.3 million, compared to $21.0 million in the comparative period. The decrease of $7.6 million was due largely to decrease in Operating earnings as described above.
During the current quarter, Guardian returned to shareholders $9.1 million in dividends and $3.9 million in share buybacks.
Guardian's Shareholders' equity as at September 30, 2024 was $1,244 million, or $50.35 per share(1), compared to $1,241 million, or $49.39 per share(1) as at December 31, 2023. Guardian's Securities as at September 30, 2024 had a fair value of $1,168 million, or $47.27 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 January 17, 2025, to shareholders of record on January 10, 2025.
The Company's financial results for the past eight quarters are summarized in the following table.
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
Dec 31, 2022
