TORONTO, Feb. 22, 2024 (GLOBE NEWSWIRE) — Guardian Capital Group Limited (TSX:GCG, GCG.A))
All per share figures disclosed below are stated on a diluted basis.
For the years ended ended December 31,
2023
2022
($ in thousands, except per share amounts)
Net revenue
$
241,182
$
200,996
Operating earnings
59,849
44,123
Net gains (losses)
57,787
(104,216
)
Net earnings (loss) from continuing operations
102,162
(59,568
)
Net earnings from discontinued operations
554,933
22,251
Net earnings
657,095
(37,317
)
EBITDA(1)
$
85,424
$
64,198
Adjusted cash flow from operations(1)
72,763
44,339
Attributable to shareholders:
Net earnings (loss) from continuing operations
$
100,250
$
(61,503
)
Net earnings (loss)
562,929
(43,078
)
EBITDA(1)
82,247
59,854
Adjusted cash flow from operations (1)
69,581
39,827
Per share, diluted:
Net earnings (loss) from continuing operations
$
3.99
$
(2.52
)
Net earnings (loss)
22.12
(1.76
)
EBITDA(1)
3.29
2.45
Adjusted cash flow from operations (1)
2.79
2.34
As at December 31, 2023
2023
2022
($ in millions, except per share amounts)
Assets under management
$
54,694
$
49,587
Assets under administration and advisement
4,080
3,716
Total client assets
58,774
53,303
Shareholders’ equity
$
1,241
$
768
Securities
1,318
660
Per share, diluted:
Shareholders’ equity (1)
$
49.39
$
29.43
Securities (1)
52.44
25.31
The Company is reporting Total Client Assets of $58.8 billion as at December 31, 2023. This is a 10% increase from $53.3 billion as at December 31, 2022.
The Operating earnings were $59.8 million for the year ended December 31, 2023, a 36% increase from $44.1 million in the prior year. EBITDA(1) was $85.4 million for 2023, compared to $64.2 million in the prior year.
Net revenue for the year was $241.2 million, a 20% increase from $201.0 million in the prior year. Increase was driven by higher interest income earned on the proceeds from the sale of the Worldsource businesses, along with an increase in net management and advisory fee revenue, consistent with the rise in Total Client Assets, including a full year’s contribution from Rae & Lipskie which was acquired in the second half of 2022. Operating expenses were 16% higher in the current year at $181.3 million, compared to $156.9 million in the prior year.
The increase was largely the result of the full year’s inclusion of expenses associated with Rae & Lipskie; an increase in interest expense due to rise in interest rates; increased technology expenditures associated with several system upgrades to infrastructure and applications; and planned increase in expenditures related to strategic initiatives to build meaningful new sources of revenue growth.
Net gains in 2023 were $57.8 million, compared to Net losses of $104.2 million in 2022, which largely reflect the changes in fair values of the Company’s Securities portfolio, and are consistent with performance of the global financial markets.
Net earnings from discontinued operations were $554.9 million in 2023, compared to $22.3 million in 2022. The increase was primarily due to the gain recognized on the sale of the Worldsource businesses in the first quarter of 2023.
Net earnings attributable to shareholders were $562.9 million in 2023, compared to a Net loss attributable to shareholders of $43.1 million in 2022.
Adjusted cash flow from operations(1) for 2023 was $72.8 million, compared to $44.3 million in 2022. During 2023, the Company returned to shareholders $31.6 million in dividends and $42.7 million in share buybacks.
The Company’s Shareholders’ equity as at December 31, 2023 was $1,241 million, or $49.39 per share(1), compared to $768 million, or $29.43 per share(1) as at December 31, 2022. The Company’s Securities as at December 31, 2023 had a fair value of $1,318 million, or $52.44 per share(1), compared to $660 million, or $25.31 per share(1).
The Board of Directors is pleased to have declared a quarterly eligible dividend of $0.37 per share, an increase of 9%, payable on April 19, 2024, to shareholders of record on April 12, 2024.
On February 2, 2024, the Company announced that it had entered into an agreement to acquire Sterling Capital Management LLC, a Charlotte, North Carolina-based investment management firm with assets under management (“AUM”) and assets under advisement (“AUA”) (together “Total Client Assets”) of US $76 billion. This strategically important acquisition is expected to nearly triple the Company’s AUM/AUA, further diversify its revenue sources and accelerate the Company’s expansion strategy into the US market. The transaction is expected to close in the second quarter of 2024.
The Company’s financial results for the past eight quarters are summarized in the following table.
Dec 31,
2023
Sep 30,
2023
Jun 30,
2023
Mar 31,
2023
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
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