Guardian Capital Group Limited (TSX:GCG) (TSX:GCG.A) Announces 2013 Second Quarter Operating Results

Guardian Capital Group Limited (TSX:GCG) (TSX:GCG.A) -

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

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For the periods ended June 30         Three Months               Six Months 
($ in thousands, except per                                                 
 share amounts)                    2013       2012          2013       2012 
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Net revenue                   $  25,041  $  20,415  $     48,198  $  40,844 
Operating earnings                6,390      4,860        11,469      9,700 
Net gains (losses)                  666       (548)        1,236       (564)
Net earnings before net                                                     
 (losses) gains on securities                                               
 held for sale                    6,255      2,838        11,320      7,217 
Net (losses) gains on                                                       
 securities held for sale        (1,243)    (2,961)         (728)       626 
Net earnings (loss) available                                               
 to shareholders                  4,963       (114)       10,506      7,891 
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Adjusted cash flow from                                                     
 operations available to                                                    
 shareholders                 $   6,856  $   5,239  $     11,591  $  10,646 
EBITDA available to                                                         
 shareholders                     7,859      6,260        14,330     12,409 
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Per Share                                                                   
Net earnings before net                                                     
 (losses) gains on securities                                               
 held for sale                $    0.20  $    0.09  $       0.36  $    0.23 
Net earnings (loss) available                                               
 to shareholders                   0.16      (0.00)         0.34       0.25 
Adjusted cash flow from                                                     
 operations available to                                                    
 shareholders                      0.22       0.17          0.38       0.34 
EBITDA available to                                                         
 shareholders                      0.25       0.20          0.46       0.39 
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As at                          June 30,  March 31,  December 31,   June 30, 
($ in millions, except per                                                  
share amounts)                     2013       2013          2012       2012 
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Assets under management       $  20,379  $  20,351  $     18,832  $  16,934 
Assets under administration      10,322     10,497         9,918      8,890 
Value of corporate holdings                                                 
 of securities                      394        403           380        368 
Shareholders' equity                355        367           354        324 
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Per Share                                                                   
Value of corporate holdings                                                 
 of securities                $   12.51  $   12.74  $      11.99  $   11.43 
Shareholders' equity              11.27      11.59         11.16      10.06 
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The Company continues to generate asset growth through relatively strong performance and net asset flows across institutional, retail intermediary and private client segments. As a result, and despite market headwinds in the domestic markets, assets under management held steady at $20.4 billion as at June 30, 2013 quarter over quarter (QoQ), and increased 20% year over year (YoY). Assets under administration were slightly down to $10.3 billion as at June 30, 2013, a decrease of less than 2% QoQ and an increase of 16% YoY.

For the second quarter of 2013, the Company is reporting net earnings before gains on securities held for sale of $6.3 million or $0.20 per share, compared to $2.8 million or $0.09 per share in 2012. This 120% increase in net earnings before net gains on securities held for sale was brought about by improvements both in operating earnings across all main business segments, and net gains. Net earnings available to shareholders for the quarter were $5.0 million or $0.16 per share, compared to a loss of $0.1 million or $ nil per share in the second quarter of 2012. Net earnings available to shareholders have been reduced by $1.2 million in the second quarter of 2013 ($3.0 million in 2012) as a result of decreases in the value of investments in mutual funds which are categorized as held for sale.

Adjusted cash flow from operations for the quarter was $6.9 million, or $0.22 per share, compared to $5.2 million, or $0.17 per share in the second quarter of 2012. EBITDA available to shareholders for the quarter were up over 25% at $7.9 million, or $0.25 per share, compared to $6.3 million, or $0.20 per share for the second quarter of 2012.

The fair value of the Company's holdings of securities as at June 30, 2013 was $394 million, or $12.51 per share, compared with $380 million, or $11.99 per share at December 31, 2012. The Company's shareholders' equity at June 30, 2013 was $355 million, or $11.27 per share, compared with $354 million, or $11.16 per share at December 31, 2012.

The Board of Directors has declared a quarterly dividend of $0.05 per share, payable on October 17, 2013, to shareholders of record on October 10, 2013.

Guardian Capital Group Limited is a diversified financial services company founded in 1962, which 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.

Contacts: Guardian Capital Group Limited Vern Christensen Senior Vice-President, Finance and Secretary [phone] Guardian Capital Group Limited George Mavroudis President and Chief Executive Officer [phone]