Guardian Capital Group Limited (TSX: GCG; GCG.A) Announces 2023 Second Quarter Operating Results

TORONTO, Aug. 11, 2023 (GLOBE NEWSWIRE) --

All per share figures disclosed below are stated on a diluted basis.

The Company is reporting Operating earnings of $17.0 million for the quarter ended June 30, 2023, a 49% increase from $11.4 million in the same quarter in the prior year. The increase in Operating earnings includes over $7.0 million in interest income earned on the proceeds of disposition of Worldsource and this had the most significant impact on the growth in Operating earnings.

EBITDA⁽¹⁾ and EBITDA attributable to shareholders⁽¹⁾ were $23.2 million and $22.3 million in the current quarter, compared to $16.2 million and $15.0 million in the comparative period.

As a reminder to the readers, with Guardian’s decision to dispose of the Worldsource Businesses, a financial measure Net earnings from discontinued operations was introduced in a prior period. All revenues and expenses associated with that business was netting into this one line. The Net earnings from the remaining businesses is presented as Net earnings from continuing operations. As a result, the comparative periods have been restated to reflect this presentation format.

The Company’s total client assets as at June 30, 2023, were $56.5 billion, which include assets under management and assets under advisement. This is a 6% increase from $53.3 billion as at December 31, 2022, and an 11% increase from $50.9 billion reported as at June 30, 2022.

Net revenue for the current quarter was $61.8 million, a 24% increase from $50.1 million in the same quarter in the prior year. Interest income of over $7 million earned on the proceeds from the sale of the Worldsource Businesses was the biggest driver of the increase. Net management and advisory fee revenue increased by $3.4 million in the current quarter to $45.5 million, and this is partially due to the addition of RaeLipskie, which was acquired on September 1, 2022. Operating expenses were 16% higher in the current quarter at $44.8 million, due to the inclusion of expenses associated with RaeLipskie, increase in interest expense due to rise in interest rates, increased marketing and travel costs, the effects of bearing certain costs which were recovered from Worldsource in prior periods and increased strategic investments into our additional anticipated growth sources for the future, which includes the Canadian Retail Asset Management team, the Guardian Smart Infrastructure team, and Guardian Partners Inc.

Net losses in the current quarter were $3.7 million, compared to Net losses of $91.5 million in the same quarter in the prior year, both largely consistent with performance of the global equity markets.

Net earnings attributable to shareholders were $11.1 million in the current quarter and Net loss of $69.7 million in the comparative period. The quantum of Net losses in each of the periods were the greatest driver of this measure.

Adjusted cash flow from operations⁽¹⁾ and Adjusted cash flow from operations attributable to shareholders⁽¹⁾ for the current quarter were $15.9 million and $15.0 million, respectively, compared to $9.7 million and $8.6 million, respectively, in the comparative period. During the current quarter, the Company returned to shareholders $8.6 million in dividends and $21.8 million in share buybacks.

The Company’s Shareholders’ equity as at June 30, 2023 was $1,213 million, or $47.63 per share⁽¹⁾, compared to $768 million, or $29.43 per share⁽¹⁾ as at December 31, 2022.

The Board of Directors is pleased to have declared a quarterly eligible dividend of $0.34 per share, payable on October 18, 2023, to shareholders of record on October 11, 2023.

The Company's financial results for the past eight quarters are summarized in the following table.