Guardian Capital Group Limited Announces 2013 Operating Results

Guardian Capital Group Limited Announces 2013 Operating Results
  
 

TORONTO, ONTARIO--(Marketwired - Feb 27, 2014) - 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)		2013			2012
Net revenue	$	101,278		$	86,360
Operating earnings		26,931			20,138
Net gains		11,637			1,337
Net earnings before net gains (losses) on securities held for sale		34,801			18,200
Net gains (losses) on securities held for sale		(58	)		4,559
Net earnings available to shareholders		34,432			22,556
EBITDA available to shareholders	$	32,307		$	25,183
Adjusted cash flow from operations available to shareholders		27,622			21,280
Per Share
Net earnings before net gains (losses) on securities held for sale	$	1.11		$	0.57
Net earnings available to shareholders		1.11			0.71
EBITDA available to shareholders		1.04			0.78
Adjusted cash flow from operations available to shareholders		0.89			0.66
As at December 31
($ in millions, except per share amounts)		2013			2012
Assets under management	$	22,228		$	18,832
Assets under administration		11,559			9,918
Value of corporate holdings of securities		449			380
Shareholders' equity		415			354
Per Share
Value of corporate holdings of securities	$	14.26		$	11.99
Shareholders' equity		13.17			11.16

The Company completed a successful year, generating asset growth through relatively strong performance and net asset flows. The assets under management were $22.2 billion as at December 31, 2013, an increase of 18% from $18.8 billion as at December 31, 2012. Assets under administration were $11.6 billion as at December 31, 2013, an increase of 17% from $9.9 billion as at December 31, 2012.

The Company's operating earnings for the year were $26.9 million, a 34% growth from $20.1 million in 2012. All segments of the Company's operations contributed to the overall growth in operating earnings.

Net gains for the year increased significantly, with approximately one-half of the gains being from the sale of 160,000 of the Bank of Montreal shares. Net gains (losses) on securities held for sale were lower during the year as the bulk of these securities were reclassified to securities holdings during the year, and subsequent changes in unrealized gains or losses were recorded in other comprehensive income.

Net earnings available to shareholders for the year were $34.4 million, or $1.11 per share, a 53% growth compared to $22.6 million, or $0.71 per share, for 2012. The increase in net earnings was due to a combination of strong operating earnings growth and a significant increase in net gains, offset by lower net gains (losses) on securities held for sale.

EBITDA available to shareholders for the year was $32.3 million, or $1.04 per share, compared to $25.2 million, or $0.78 per share for 2012. Adjusted cash flow from operations available to shareholders for the year was $27.6 million, or $0.89 per share, compared to $21.3 million, or $0.66 per share for 2012. These two non-IFRS financial measures used by the Company are defined in its quarterly and annual Management's Discussion and Analysis. The increases in each of these measures reflect the strong growth in operating earnings for the year.

The fair value of the Company's holdings of securities as at December 31, 2013 was $449.2 million, or $14.26 per share, compared to $380.0 million, or $11.99 per share, as at December 31, 2012. The Company's shareholders' equity as at December 31, 2013 was $415.0 million, or $13.17 per share, compared to $353.8 million, or $11.16 per share, at December 31, 2012.

The Board of Directors has declared a quarterly eligible dividend of $0.055 per share, payable on April 17, 2014, to shareholders of record on April 10, 2014.

Guardian Capital Group Limited is a diversified financial services company founded in 1962. Guardian provides institutional and high net worth investment management services to clients; financial services to international investors; 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.

The following table summarizes Guardian's financial results for the past eight quarters.

Quarters ended			Dec 31,		Sep 30,		Jun 30,			Mar 31,		Dec 31,			Sep 30,		Jun 30,			Mar 31,
($ in thousands)			2013		2013		2013			2013		2012			2012		2012			2012
Net revenue		$	27,907	$	25,173	$	25,041		$	23,157	$	24,146		$	21,370	$	20,415		$	20,429
Operating earnings			8,564		6,898		6,390			5,079		5,791			4,647		4,860			4,840
Net gains			7,218		3,183		666			570		(144	)		2,045		(548	)		(16	)
Net earnings before net gains (losses) on securities held for sale			14,879		8,602		6,255			5,065		4,938			6,045		2,838			4,379
Net gains (losses) on securities held for sale			238		432		(1,243	)		515		1,084			2,849		(2,961	)		3,587
Net earnings (loss) available to shareholders			14,980		8,946		4,963			5,543		5,915			8,750		(114	)		8,005
Shareholders' equity			414,985		393,670		354,622			366,519		353,756			336,362		323,690			340,096
(in $)
Per average Class A and Common Share
Net earnings before net gains (losses) on securities held for sale:
	- Basic	$	0.48	$	0.28	$	0.20		$	0.16	$	0.16		$	0.19	$	0.09		$	0.14
	- Diluted		0.47		0.27		0.20			0.16		0.15			0.18		0.09			0.14
Net earnings (loss) available to shareholders:
	- Basic	$	0.49	$	0.29	$	0.16		$	0.18	$	0.19		$	0.28	$	(0.00	)	$	0.25
	- Diluted		0.48		0.29		0.16			0.18		0.19			0.27		(0.00	)		0.25
Shareholders' equity
	- Basic	$	13.68	$	12.94	$	11.64		$	11.97	$	11.44		$	10.78	$	10.29		$	10.72
	- Diluted		13.17		12.51		11.27			11.59		11.16			10.54		10.06			10.48

Guardian Capital Group LimitedVern ChristensenSenior Vice-President and Secretary(416) 947-4093Guardian Capital Group LimitedGeorge MavroudisPresident and Chief Executive Officer(416) 364-8341