TORONTO, April 25, 2017 /PRNewswire/ - Canaccord Genuity Group Inc. (the "Company") announces that it expects earnings for the quarter ending March 31, 2017 to be significantly higher than previous quarters in its most recent fiscal years. Excluding significant items1, the Company expects to record net income attributable to common shareholders that will exceed $23 million, or earnings per common share that will exceed $0.23. Including all expense items, on an IFRS basis, the Company expects to record net income attributable to common shareholders that will exceed $21 million, or earnings per common share of at least $0.21 per share. These preliminary financial results are subject to revision and may change when the Company reports its full fourth quarter results on June 1, 2017.
Revenue is expected to exceed $260 million for the fiscal quarter. This amount represents an increase of 30% over the average for the first three quarters of fiscal 2017.
Increased new issue activity in all regions in the Company's focus sectors during the quarter led to a significant increase in investment banking revenue. Two significant advisory transactions outside of Canada during the quarter contributed to an increase in advisory fee revenue.
Investors are reminded that the financial performance of Canaccord Genuity Group Inc. is impacted by broad market and general economic conditions, the nature of the financial services industry both globally and in its local markets, activity in specific focus sectors and other risks and uncertainties as more fully described in the Company's Annual Information Form dated June 24, 2016 and the 2016 annual Management's Discussion and Analysis in the annual report dated June 1, 2016.
"We are very pleased with these improved expectations, but we continue to anticipate certain levels of volatility as the markets reacts to the specifics of regulatory and policy changes in the UK and the US, and we note that activity in our capital markets business is directly correlated with activity in our core focus sectors," said Dan Daviau, President & CEO of Canaccord Genuity Group Inc.
The Company will provide additional details of its performance with the release of its fourth quarter and fiscal 2017 year-end results on June 1, 2017 and management will discuss these results on a conference call on Friday, June 2nd. Dial-in and webcast details will be circulated two weeks prior to the event and will also made available on the Company's website at www.canaccordgenuitygroup.com.
1 Figures excluding significant items are non-IFRS measures. Significant items include restructuring costs, amortization of intangible assets acquired in connection with business combinations, impairment of goodwill and other assets, acquisition-related expense items, which include costs recognized in relation to both prospective and completed acquisitions, as well as gains or losses related to business disposals including recognition of translation gains on the disposal of foreign operations. In Q4/17, the Company expects that the only significant items to be recorded will be related to the amortization of intangible assets acquired in connection with business combinations.
ABOUT CANACCORD GENUITY GROUP INC.:
Through its principal subsidiaries, Canaccord Genuity Group Inc. (the "Company") is a leading independent, full-service financial services firm, with operations in two principal segments of the securities industry: wealth management and capital markets. Since its establishment in 1950, the Company has been driven by an unwavering commitment to building lasting client relationships. We achieve this by generating value for our individual, institutional and corporate clients through comprehensive investment solutions, brokerage services and investment banking services. The Company has offices in 10 countries worldwide, including Wealth Management offices located in Canada, the UK, Guernsey, Jersey, the Isle of Man and Australia. Canaccord Genuity, the international capital markets division, operates in Canada, the US, the UK, France, Ireland, Hong Kong, China, Australia and Dubai. To us there are no foreign markets. ™
Canaccord Genuity Group Inc. is publicly traded under the symbol CF on the TSX.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS:
This press release may contain "forward-looking statements" (as defined under applicable securities laws). These statements relate to future events or future performance and reflect management's expectations, beliefs, plans, estimates, intentions and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts, including business and economic conditions and Canaccord Genuity Group's growth, results of operations, performance and business prospects and opportunities. Specifically, this press release contains forward-looking statements with respect to its financial performance for the fourth quarter of its 2017 fiscal year. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", "target", "intend", "could" or the negative of these terms or other comparable terminology. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and a number of factors could cause actual events or results to differ materially from the results discussed in the forward-looking statements. In evaluating these statements, readers should specifically consider various factors that may cause actual results to differ materially from any forward-looking statement. These factors include, but are not limited to, market and general economic conditions, the nature of the financial services industry, the failure or delay in satisfying any of the conditions to the completion of the debenture offering and the risks and uncertainties discussed from time to time in the Company's interim condensed and annual consolidated financial statements, its annual report and its annual information form ("AIF") filed on www.sedar.com as well as the factors discussed in the sections entitled "Risk Management" and "Risk Factors" in the AIF, which include market, liquidity, credit, operational, legal and regulatory risks. The preceding list is not exhaustive of all possible risk factors that may influence actual results. Readers are cautioned that the preceding list of material factors or assumptions is not exhaustive. Although the forward-looking statements contained in this press release are based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. The forward-looking statements contained in this press release are 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. Except as may be required by applicable law, the Company does not undertake, and specifically disclaims, any obligation to update or revise any forward-looking statements, whether as a result of new information, further developments or otherwise.