Guardian Capital Group Limited (TSX: GCG; GCG.A) Announces Operating Results for Year Ended December 31, 2021
TORONTO, Feb. 24, 2022 (GLOBE NEWSWIRE) --
All per share figures disclosed below are stated on a diluted basis.
For the twelve months ended December 31, | 2021 | 2020 | |||
($ in thousands, except per share amounts) | |||||
Net revenue | $ | 285,087 | $ | 215,791 | |
Operating earnings | 81,788 | 54,841 | |||
Net gains (losses) | 142,623 | (1,313 | ) | ||
Net earnings | 190,740 | 46,068 | |||
EBITDA(1) | $ | 107,639 | $ | 77,702 | |
Adjusted cash flow from operations(1) | 84,792 | 63,050 | |||
Attributable to shareholders: | |||||
Net earnings | $ | 184,239 | $ | 42,358 | |
EBITDA(1) | 96,700 | 70,325 | |||
Adjusted cash flow from operations (1) | 75,332 | 56,773 | |||
Per share, diluted: | |||||
Net earnings | $ | 6.87 | $ | 1.57 | |
EBITDA(1) | 3.61 | 2.60 | |||
Adjusted cash flow from operations (1) | 2.81 | 2.10 | |||
As at | 2021 | 2020 | ||
($ in millions, except per share amounts) | ||||
Assets under management | $ | 56,341 | $ | 45,984 |
Assets under administration | 31,508 | 22,289 | ||
Total client assets | 87,849 | 68,273 | ||
Shareholders' equity | 839 | 700 | ||
Securities | 752 | 633 | ||
Per share: | ||||
Shareholders' equity (1) | $ | 31.53 | $ | 25.69 |
Securities (1) | 28.27 | 23.23 | ||
The Company and its Board of Directors are pleased to declare a quarterly eligible dividend of $0.24 per share, payable on April 19, 2022, to shareholders of record on April 12, 2022, which is a 33% increase from prior quarterly dividend.
The Company is reporting another historic high of $87.8 billion in total client assets as at December 31, 2021, a 29% increase from $68.3 billion as at December 31, 2020. Assets under management (“AUM”) as at December 31, 2021 was $56.3 billion, a 23% increase from $46.0 billion as at December 31, 2020 and assets under administration (“AUA”) was $31.5 billion, a 41% increase from $22.3 billion in the prior year. The growth in the AUM was driven by the combination of positive global financial market performance over the year and approximately $4 billion in net inflow of new client assets. The growth in AUA reflects the benefit of acquisitions made during the year and another year of successful recruitment of advisors into our Wealth Management business.
Operating earnings and EBITDA(1) for the year ended December 31, 2021 were also record highs of $81.8 million and $107.6 million, respectively, a 49% and 39% higher than the $54.8 million and $77.7 million, respectively reported for 2020. This growth was the result of improved operating results in both, the Investment Management and the Wealth Management segments.
Net revenue for the year grew to another all-time high of $285.1 million, 32% or $69.3 million higher than the $215.8 million reported in the prior year. The increase is largely due to our organic growth in revenues, and the addition of revenues from the acquired businesses in the current and prior year.
Expenses in the year were $203.3 million, a $42.3 million increase from $161.0 million in the prior year. The higher expenses reflect the growth in our businesses, the strategic investments made in the Canadian Retail Asset Management initiative and the expenses associated with Guardian Partner Inc., which was acquired in March of 2021.
Net gains for the year were $142.6 million, compared to Net losses of $1.3 million in the prior year. The Net gains in the current year were due largely to the increases in the fair values of our securities holdings, of which, the increase in fair value of our holdings of BMO shares were $90.4 million.
The Company's Net earnings attributable to shareholders for the year were $184.2 million, compared to $42.4 million in 2020. The Net gains as described above, compared to the small Net losses in the prior year, had the most significant impact on the change in Net earnings. The growth in Operating earnings also contributed substantially to the increase in the Net earnings attributable to shareholders.
EBITDA attributable to shareholders(1) for the year was $96.7 million, compared to $70.3 million in the prior year. Adjusted cash flow from operations attributable to shareholders(1) for the year was $75.3 million, compared to $56.8 million in the prior year. Increases in both measures reflect the growth in Operating earnings, as described above.
The Company’s Shareholders’ equity as at December 31, 2021 increased to $839 million, or $31.53 per share(1), from $700 million, or $25.69 per share(1) as at December 31, 2020. Since December 31, 2020, the Company returned to shareholders $18.5 million in dividends and $25.1 million in share buybacks. The fair value of the Company’s Securities as at December 31, 2021 increased to $752 million, or $28.27 per share(1), from $633 million, or $23.23 per share(1) as at December 31, 2020.
The Company's financial results for the past eight quarters are summarized in the following table.
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |||||||||||
As at ($ in millions) | ||||||||||||||||||
Assets under management | $ | 56,341 | $ | 53,113 | $ | 51,960 | $ | 47,945 | $ | 45,984 | $ | 32,733 | $ | 31,200 | $ | 27,527 | ||
Assets under administration | 31,508 | 30,015 | 29,582 | 28,376 | 22,289 | 20,755 | 20,010 | 18,152 | ||||||||||
Total client assets | 87,849 | 83,128 | 81,542 | 76,321 | 68,273 | 53,488 | 51,210 | 45,679 | ||||||||||
For the three months ended ($ in thousands) | ||||||||||||||||||
Net revenue | $ | 78,049 | $ | 72,384 | $ | 69,960 | $ | 64,694 | $ | 63,724 | $ | 52,042 | $ | 50,124 | $ | 49,901 | ||
Operating earnings | 22,314 | 20,771 | 21,199 | 17,504 | 18,493 | 12,108 | 13,427 | 10,813 | ||||||||||
Net gains (losses) | 52,331 | (8,146 | ) | 56,467 | 41,971 | 80,983 | 35,739 | 43,254 | (161,289 | ) | ||||||||
Net earnings (losses) | 64,451 | 8,597 | 66,831 | 50,861 | 87,083 | 42,652 | 51,244 | (134,911 | ) | |||||||||
Net earnings (loss) attributable to shareholders | 62,421 | 7,054 | 65,138 | 49,625 | 86,039 | 42,201 | 50,486 | (136,368 | ) | |||||||||
(in $) | ||||||||||||||||||
Net earnings (loss) attributable to shareholders: | ||||||||||||||||||
Per Class A and Common share | ||||||||||||||||||
Basic | $ | 2.52 | $ | 0.28 | $ | 2.59 | $ | 1.95 | $ | 3.38 | $ | 1.66 | $ | 1.99 | $ | (5.35 | ) | |
Diluted | 2.35 | 0.27 | 2.42 | 1.83 | 3.17 | 1.56 | 1.87 | (5.35 | ) | |||||||||
Dividends paid on Class A and Common shares | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.15 | ||
As at | ||||||||||||||||||
Shareholders' equity ($ in thousands) | $ | 838,520 | $ | 781,334 | $ | 780,323 | $ | 737,363 | $ | 699,610 | $ | 631,863 | $ | 596,265 | $ | 562,821 | ||
Per Class A and Common share (in $) | ||||||||||||||||||
Basic | $ | 33.89 | $ | 31.56 | $ | 31.15 | $ | 29.02 | $ | 27.43 | $ | 24.80 | $ | 23.50 | $ | 22.18 | ||
Diluted | 31.53 | 29.40 | 29.09 | 27.14 | 25.69 | 23.25 | 22.07 | 20.94 | ||||||||||
Total Class A and Common shares outstanding (shares in thousands) | 26,954 | 26,968 | 27,263 | 27,691 | 27,740 | 27,758 | 27,758 | 27,758 | ||||||||||
Guardian Capital Group Limited is a diversified financial services company founded in 1962. The Company is headquartered in Canada and also has offices in the United Kingdom, the United States and the Caribbean. It provides investment and wealth management services to clients and services to financial advisors in its national mutual fund dealer, securities dealer, and life insurance managing general agency. Its Common and Class A shares are listed on The Toronto Stock Exchange.
For further information, contact: | |
Donald Yi | George Mavroudis |
Chief Financial Officer | President and Chief Executive Officer |
(416) 350-3136 | (416) 364-8341 |
(1)The 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, stock-based compensation, net gains or losses and 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 Adjusted cash flow from operations attributable to shareholders as Adjusted cash flow from operations less the amounts attributable to non-controlling interests. The most comparable IFRS measures are Net earnings, which was $190.7 million in 2021 (2020 - $46.1 million) and Net cash from operating activities, which was $102.9 million in 2021 (2020 - $71.8 million). The per share amounts for EBITDA attributable to shareholders, Adjusted cash flow from operations attributable to shareholders, Shareholders' equity and Securities 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, including a reconciliation of these measures to their most comparable IFRS measures.
Caution Concerning Forward-Looking Information
Certain information included in this press release constitutes forward-looking information within the meaning of applicable Canadian securities laws. 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 Guardian believes that the expectations reflected in such forward-looking information are reasonable, such information involves known and unknown risks and uncertainties which may cause Guardian’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 duration and severity of the current COVID pandemic, as well as those risk factors discussed or referred to in the disclosure documents filed by Guardian 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 presented as of the date of this press release and should not be relied upon as representing Guardian’s views as of any date subsequent to the date of this press release. Guardian undertakes no obligation, except as required by applicable law, to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
