Guardian Capital Group Limited (TSX: GCG; GCG.A)
All per share figures disclosed below are stated
on a diluted basis.
|
|
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|
|
|
|
|
|
|
For the years ended ended December 31, |
|
|
|
2023 |
|
2022 |
|
| ($ in
thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
| Net revenue |
|
|
$ |
241,182 |
$ |
200,996 |
|
| Operating earnings |
|
|
|
59,849 |
|
44,123 |
|
| Net gains (losses) |
|
|
|
57,787 |
|
(104,216 |
) |
| Net earnings (loss) from
continuing operations |
|
|
|
102,162 |
|
(59,568 |
) |
| Net earnings from discontinued
operations |
|
|
|
554,933 |
|
22,251 |
|
| Net earnings |
|
|
|
657,095 |
|
(37,317 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA(1) |
|
|
$ |
85,424 |
$ |
64,198 |
|
| Adjusted cash flow from
operations(1) |
|
|
|
72,763 |
|
44,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Attributable to
shareholders: |
|
|
|
|
| Net earnings (loss) from
continuing operations |
|
|
$ |
100,250 |
$ |
(61,503 |
) |
| Net earnings (loss) |
|
|
|
562,929 |
|
(43,078 |
) |
| EBITDA(1) |
|
|
|
82,247 |
|
59,854 |
|
| Adjusted cash flow from
operations (1) |
|
|
|
69,581 |
|
39,827 |
|
| Per share, diluted: |
|
|
|
|
| Net earnings (loss) from
continuing operations |
|
|
$ |
3.99 |
$ |
(2.52 |
) |
| Net earnings (loss) |
|
|
|
22.12 |
|
(1.76 |
) |
| EBITDA(1) |
|
|
|
3.29 |
|
2.45 |
|
| Adjusted cash flow from
operations (1) |
|
|
|
2.79 |
|
2.34 |
|
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|
|
|
|
|
|
|
|
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As at December 31, 2023 |
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|
2023 |
|
2022 |
|
| ($ in
millions, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
| Assets under management |
|
|
$ |
54,694 |
$ |
49,587 |
|
| Assets under administration
and advisement |
|
|
|
4,080 |
|
3,716 |
|
|
Total client assets |
|
|
|
58,774 |
|
53,303 |
|
|
|
|
|
|
|
| Shareholders' equity |
|
|
$ |
1,241 |
$ |
768 |
|
| Securities |
|
|
|
1,318 |
|
660 |
|
| Per share, diluted: |
|
|
|
|
| Shareholders' equity (1) |
|
|
$ |
49.39 |
$ |
29.43 |
|
| Securities (1) |
|
|
|
52.44 |
|
25.31 |
|
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|
The Company is reporting Total Client Assets of
$58.8 billion as at December 31, 2023. This is a 10% increase from
$53.3 billion as at December 31, 2022.
The Operating earnings were $59.8 million for
the year ended December 31, 2023, a 36% increase from $44.1 million
in the prior year. EBITDA(1) was $85.4 million for 2023,
compared to $64.2 million in the prior year.
Net revenue for the year was $241.2 million, a
20% increase from $201.0 million in the prior year. Increase was
driven by higher interest income earned on the proceeds from the
sale of the Worldsource businesses, along with an increase in net
management and advisory fee revenue, consistent with the rise in
Total Client Assets, including a full year’s contribution from Rae
& Lipskie which was acquired in the second half of 2022.
Operating expenses were 16% higher in the current year at $181.3
million, compared to $156.9 million in the prior year. The increase
was largely the result of the full year's inclusion of expenses
associated with Rae & Lipskie; an increase in interest expense
due to rise in interest rates; increased technology expenditures
associated with several system upgrades to infrastructure and
applications; and planned increase in expenditures related to
strategic initiatives to build meaningful new sources of revenue
growth.
Net gains in 2023 were $57.8 million, compared
to Net losses of $104.2 million in 2022, which largely reflect the
changes in fair values of the Company’s Securities portfolio, and
are consistent with performance of the global financial
markets.
Net earnings from discontinued operations were
$554.9 million in 2023, compared to $22.3 million in 2022. The
increase was primarily due to the gain recognized on the sale of
the Worldsource businesses in the first quarter of 2023.
Net earnings attributable to shareholders were
$562.9 million in 2023, compared to a Net loss attributable to
shareholders of $43.1 million in 2022.
Adjusted cash flow from operations(1) for 2023
was $72.8 million, compared to $44.3 million in 2022. During 2023,
the Company returned to shareholders $31.6 million in dividends and
$42.7 million in share buybacks.
The Company’s Shareholders’ equity as at
December 31, 2023 was $1,241 million, or $49.39 per share(1),
compared to $768 million, or $29.43 per share(1) as at December 31,
2022. The Company’s Securities as at December 31, 2023 had a fair
value of $1,318 million, or $52.44 per share(1), compared to $660
million, or $25.31 per share(1).
The Board of Directors is pleased to have
declared a quarterly eligible dividend of $0.37 per share, an
increase of 9%, payable on April 19, 2024, to shareholders of
record on April 12, 2024.
On February 2, 2024, the Company announced that
it had entered into an agreement to acquire Sterling Capital
Management LLC, a Charlotte, North Carolina-based investment
management firm with assets under management (“AUM”) and assets
under advisement (“AUA”) (together “Total Client Assets”) of US $76
billion. This strategically important acquisition is expected to
nearly triple the Company’s AUM/AUA, further diversify its revenue
sources and accelerate the Company’s expansion strategy into the US
market. The transaction is expected to close in the second quarter
of 2024.
The Company's financial results for the past
eight quarters are summarized in the following table.
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|
Dec 31,2023 |
Sep 30,2023 |
Jun 30,2023 |
Mar 31,2023 |
Dec 31,2022 |
Sep 30,2022 |
Jun 30,2022 |
Mar 31,2022 |
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| As at ($ in millions) |
|
|
|
|
|
|
|
|
|
Assets under management |
$ |
54,694 |
$ |
52,310 |
|
$ |
52,754 |
|
$ |
52,261 |
$ |
49,587 |
$ |
47,814 |
|
$ |
46,931 |
|
$ |
53,123 |
|
| Assets under advisement |
|
4,080 |
|
3,905 |
|
|
3,773 |
|
|
4,065 |
|
3,716 |
|
3,788 |
|
|
3,944 |
|
|
4,273 |
|
|
Total client assets |
|
58,774 |
|
56,215 |
|
|
56,527 |
|
|
56,326 |
|
53,303 |
|
51,602 |
|
|
50,875 |
|
|
57,396 |
|
|
|
|
|
|
|
|
|
|
|
| For the three
months ended ($ in thousands) |
|
|
|
|
|
|
| Net revenue |
$ |
62,245 |
$ |
62,611 |
|
$ |
61,833 |
|
$ |
54,493 |
$ |
50,681 |
$ |
48,434 |
|
$ |
50,056 |
|
$ |
51,824 |
|
| Operating earnings |
|
13,097 |
|
18,474 |
|
|
17,038 |
|
|
11,240 |
|
8,790 |
|
10,419 |
|
|
11,404 |
|
|
13,507 |
|
| Net gains (losses) |
|
60,747 |
|
(17,358 |
) |
|
(3,736 |
) |
|
18,134 |
|
18,225 |
|
(21,148 |
) |
|
(91,545 |
) |
|
(9,749 |
) |
| Net earnings (losses) from
continuing operations |
|
68,048 |
|
(2,270 |
) |
|
11,532 |
|
|
24,852 |
|
25,249 |
|
(11,582 |
) |
|
(73,463 |
) |
|
224 |
|
| Net earnings from discontinued
operations |
|
-- |
|
-- |
|
|
-- |
|
|
554,933 |
|
6,386 |
|
5,034 |
|
|
5,239 |
|
|
5,591 |
|
| Net earnings (losses) |
|
68,048 |
|
(2,270 |
) |
|
11,532 |
|
|
579,785 |
|
31,635 |
|
(6,548 |
) |
|
(68,224 |
) |
|
5,815 |
|
| Net earnings (loss) from
continuing operations attributable to shareholders |
|
67,087 |
|
(2,506 |
) |
|
11,145 |
|
|
24,524 |
|
24,679 |
|
(11,780 |
) |
|
(74,053 |
) |
|
(353 |
) |
| Net earnings (loss)
attributable to shareholders |
|
67,087 |
|
(2,506 |
) |
|
11,145 |
|
|
487,203 |
|
29,961 |
|
(7,608 |
) |
|
(69,698 |
) |
|
4,262 |
|
|
|
|
|
|
|
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|
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| Per share amounts (in $) |
|
|
|
|
|
|
|
|
| Net earnings
(loss) from continuing operations attributable to shareholders |
|
|
| Basic |
$ |
2.85 |
$ |
(0.11 |
) |
$ |
0.47 |
|
$ |
1.09 |
$ |
1.02 |
$ |
(0.49 |
) |
$ |
(3.03 |
) |
$ |
(0.01 |
) |
| Diluted |
|
2.68 |
|
(0.11 |
) |
|
0.45 |
|
|
1.02 |
|
0.96 |
|
(0.49 |
) |
|
(3.03 |
) |
|
(0.01 |
) |
| Net earnings
(loss) attributable to shareholders: |
|
|
|
|
|
|
| Basic |
$ |
2.85 |
$ |
(0.11 |
) |
$ |
0.47 |
|
$ |
20.27 |
$ |
1.24 |
$ |
(0.31 |
) |
$ |
(2.85 |
) |
$ |
0.17 |
|
| Diluted |
|
2.68 |
|
(0.11 |
) |
|
0.45 |
|
|
18.79 |
|
1.16 |
|
(0.31 |
) |
|
(2.85 |
) |
|
0.16 |
|
| |
|
|
|
|
|
|
|
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| Dividends paid |
$ |
0.34 |
$ |
0.34 |
|
$ |
0.34 |
|
$ |
0.24 |
$ |
0.24 |
$ |
0.24 |
|
$ |
0.24 |
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
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| |
|
|
|
|
|
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| As at |
|
|
|
|
|
|
|
|
| Shareholders' equity ($ in
millions) |
$ |
1,241 |
$ |
1,201 |
|
$ |
1,213 |
|
$ |
1,242 |
$ |
768 |
$ |
743 |
|
$ |
743 |
|
$ |
828 |
|
| Per share amounts (in $) |
|
|
|
|
|
|
|
|
| Basic |
$ |
52.87 |
$ |
50.90 |
|
$ |
51.11 |
|
$ |
52.42 |
$ |
31.84 |
$ |
30.82 |
|
$ |
30.68 |
|
$ |
33.67 |
|
| Diluted |
|
49.39 |
|
47.54 |
|
|
47.63 |
|
|
48.73 |
|
29.43 |
|
28.88 |
|
|
28.74 |
|
|
31.27 |
|
|
|
|
|
|
|
|
|
|
|
| Total
Class A and Common shares outstanding (shares in thousands) |
|
25,230 |
|
25,408 |
|
|
25,609 |
|
|
26,113 |
|
26,246 |
|
26,246 |
|
|
26,342 |
|
|
26,892 |
|
|
|
|
|
|
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|
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 YiChief Financial Officer(416) 350-3136 |
George MavroudisPresident and Chief Executive Officer(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 years ended ended December 31, ($ in thousands) |
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
Net earnings (loss) |
|
$ |
657,095 |
|
$ |
(37,317 |
) |
| Add (deduct): |
|
|
|
| Net earnings from discontinued
operations |
|
|
(554,933 |
) |
|
(22,251 |
) |
| Income tax expense
(recovery) |
|
|
15,474 |
|
|
(525 |
) |
| Net (gains) losses |
|
|
(57,787 |
) |
|
104,216 |
|
| Stock-based compensation |
|
|
3,587 |
|
|
3,597 |
|
| Interest expense |
|
|
8,296 |
|
|
4,351 |
|
|
Amortization |
|
|
13,692 |
|
|
12,127 |
|
|
EBITDA |
|
|
85,424 |
|
|
64,198 |
|
| Less attributable
to non-controlling interests in continuing operations |
|
EBITDA attributable to shareholders |
|
$ |
82,247 |
|
$ |
59,854 |
|
|
For the years ended ended December 31, ($ in thousands) |
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
Net cash from operating activities |
|
|
|
$ |
81,419 |
|
$ |
81,228 |
|
| Add (deduct): |
|
|
|
|
|
| Net cash from
operating activities, discontinued operations |
|
(10,087 |
) |
|
(23,524 |
) |
| Net change in
non-cash working capital items |
|
|
|
(8,282 |
) |
|
(6,877 |
) |
| Net change in
non-cash working capital items, discontinued operations |
|
Adjusted cash flow from operations |
|
|
|
|
72,763 |
|
|
44,339 |
|
| Less attributable
to non-controlling interests, continuing operations |
|
Adjusted cash flow from operations attributable to
shareholders |
$ |
69,581 |
|
$ |
39,827 |
|
|
|
|
|
|
|
|
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.
Guardian Capital (TSX:GCG)
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