Guardian Capital Group Limited (TSX: GCG; GCG.A) Announces 2024 Annual Operating Results
TORONTO, Feb. 27, 2025 (GLOBE NEWSWIRE) —
All per share figures disclosed below are stated on a diluted basis.
| For the years ended December 31, | 2024 | 2023 | ||||||
| ($ in thousands, except per share amounts) | ||||||||
| Net revenue | $ | 323,403 | $ | 241,182 | ||||
| Operating earnings | 38,824 | 59,849 | ||||||
| Net gains | 77,444 | 57,787 | ||||||
| Net earnings from continuing operations | 101,598 | 102,162 | ||||||
| Net earnings from discontinued operations | — | 554,933 | ||||||
| Net earnings | 101,598 | 657,095 | ||||||
| EBITDA(1) | $ | 70,874 | $ | 85,424 | ||||
| Adjusted cash flow from operations(1) | 57,536 | 72,763 | ||||||
| Attributable to shareholders: | ||||||||
| Net earnings from continuing operations | $ | 100,099 | $ | 100,250 | ||||
| Net earnings | 100,099 | 562,929 | ||||||
| EBITDA(1) | 68,248 | 82,247 | ||||||
| Adjusted cash flow from operations (1) | 54,884 | 69,581 | ||||||
| Per share, diluted: | ||||||||
| Net earnings from continuing operations | $ | 4.10 | $ | 3.99 | ||||
| Net earnings | 4.10 | 22.12 | ||||||
| EBITDA(1) | 2.82 | 3.29 | ||||||
| Adjusted cash flow from operations (1) | 2.28 | 2.79 | ||||||
| As at December 31, 2024 | 2024 | 2023 | ||||||
| ($ in millions, except per share amounts) | ||||||||
| Total client assets | $ | 168,979 | $ | 58,774 | ||||
| Shareholders’ equity | 1,318 | 1,241 | ||||||
| Securities, net (1) | 1,211 | 1,318 | ||||||
| Per share, diluted: | ||||||||
| Shareholders’ equity (1) | $ | 53.76 | $ | 49.39 | ||||
| Securities, net (1) | 49.38 | 52.44 | ||||||
The Company is reporting Total Client Assets (which includes assets under management and assets under advisement) of $169.0 billion as at December 31, 2024, an increase of $110.2 billion from $58.8 billion as at December 31, 2023. The current year’s Total Client Assets include $104.8 billion associated with Charlotte, North Carolina-based Sterling Capital Management LLC (“Sterling”) and Toronto, Canada-based Galibier Capital Management Ltd (“Galibier”), both of which were acquired during the current year.
The Operating earnings were $38.8 million for the year ended December 31, 2024, compared to $59.8 million in the prior year. EBITDA(1) was $70.9 million in 2024, compared to $85.4 million in the prior year. Both of these measures were dampened by approximately $14.4 million in expenses related to the above mentioned acquisitions and the associated initial integration expenses (“Transitional expenses”).
Net revenue for the year was $323.4 million, a 34% or $82.2 million increase from $241.2 million in the prior year. The inclusion of Sterling’s and Galibier’s Net revenue accounted for $75.4 million, or 31% of the increase. The remainder of the increase was driven by the growth in Total Client Assets from the prior year, partially offset by lower interest income earned in the current year. Operating expenses were 57% higher in the current year at $284.6 million, compared to $181.3 million in the prior year. The addition of operating expenses from Sterling and Galibier and the related Transitional expenses accounted for 46% of the increase.
Net gains in 2024 were $77.4 million, compared to Net gains of $57.8 million in 2023, 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 attributable to shareholders from continuing operations were $100.1 million in 2024, compared to $100.3 million in 2023.
Adjusted cash flow from operations(1) in 2024 was $57.5 million, compared to $72.8 million in 2023.
During 2024, the Company returned to shareholders $35.6 million in dividends and $24.9 million in share buybacks.
The Company’s Shareholders’ equity as at December 31, 2024 was $1,318 million, or $53.76 per share(1), compared to $1,241 million, or $49.39 per share(1) as at December 31, 2023. The Company’s Securities, net(1) as at December 31, 2024 had a fair value of $1,211 million, or $49.38 per share(1), compared to $1,318 million, or $52.44 per share(1). The decline in the net holdings of Securities was due to the Company utilizing a portion of the portfolio to fund the acquisitions of Sterling and Galibier, share buybacks and tax liabilities arising from the sale of Worldsource businesses in the prior year, partially offset by market appreciation during the year.
The Board of Directors is pleased to have declared a quarterly eligible dividend of $0.39 per share, an increase of 5%, payable on April 18, 2025, to shareholders of record on April 11, 2025.
The Company’s financial results for the past eight quarters are summarized in the following table.
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | |||||||||||||||||
| As at ($ in millions) | ||||||||||||||||||||||||
| Total client assets | $ | 168,979 | $ | 165,061 | $ | 58,628 | $ | 61,316 | $ | 58,774 | $ | 56,215 | $ | 56,527 | $ | 56,326 | ||||||||
| For the three months ended ($ in thousands) | ||||||||||||||||||||||||
| Net revenue | $ | 98,614 | $ | 98,128 | $ | 64,164 | $ | 62,497 | $ | 62,245 | $ | 62,611 | $ | 61,833 | $ | 54,493 | ||||||||
| Operating earnings | 7,385 | 4,790 | 14,333 | 12,318 | 13,097 | 18,474 | 17,038 | 11,240 | ||||||||||||||||
| Net gains (losses) | 64,476 | 39,392 | (39,161 | ) | 12,737 | 60,747 | (17,358 | ) | (3,736 | ) | 18,134 | |||||||||||||
| Net earnings (losses) from continuing operations | 63,231 | 39,658 | (22,730 | ) | 21,441 | 68,048 | (2,270 | ) | 11,532 | 24,852 | ||||||||||||||
| Net earnings from discontinued operations | — | — | — | — | — | — | — | 554,933 | ||||||||||||||||
| Net earnings (losses) | 63,231 | 39,658 | (22,730 | ) | 21,441 | 68,048 | (2,270 | ) | 11,532 | 579,785 | ||||||||||||||
| Net earnings (loss) from continuing operations attributable to shareholders | 62,849 | 39,222 | (23,137 | ) | 21,167 | 67,087 | (2,506 | ) | 11,145 | 24,524 | ||||||||||||||
| Net earnings (loss) attributable to shareholders | 62,849 | 39,222 | (23,137 | ) | 21,167 | 67,087 | (2,506 | ) | 11,145 | 487,203 | ||||||||||||||
| Per share amounts (in $) | ||||||||||||||||||||||||
| Net earnings (loss) from continuing operations attributable to shareholders | ||||||||||||||||||||||||
| Basic | $ | 2.72 | $ | 1.69 | $ | (0.99 | ) | $ | 0.90 | $ | 2.85 | $ | (0.11 | ) | $ | 0.47 | $ | 1.04 | ||||||
| Diluted | 2.58 | 1.60 | (0.99 | ) | 0.86 | 2.68 | (0.11 | ) | 0.45 | 1.00 | ||||||||||||||
| Net earnings (loss) attributable to shareholders: | ||||||||||||||||||||||||
| Basic | $ | 2.72 | $ | 1.69 | $ | (0.99 | ) | $ | 0.90 | $ | 2.85 | $ | (0.11 | ) | $ | 0.47 | $ | 20.27 | ||||||
| Diluted | 2.58 | 1.60 | (0.99 | ) | 0.86 | 2.68 | (0.11 | ) | 0.45 | 18.79 | ||||||||||||||
| Dividends paid | $ | 0.37 | $ | 0.37 | $ | 0.37 | $ | 0.34 | $ | 0.34 | $ | 0.34 | $ | 0.34 | $ | 0.24 | ||||||||
| As at | ||||||||||||||||||||||||
| Shareholders’ equity ($ in millions) | $ | 1,318 | $ | 1,245 | $ | 1,223 | $ | 1,255 | $ | 1,241 | $ | 1,201 | $ | 1,213 | $ | 1,242 | ||||||||
| Per share amounts (in $) | ||||||||||||||||||||||||
| Basic | $ | 56.54 | $ | 53.73 | $ | 52.59 | $ | 53.69 | $ | 52.87 | $ | 50.90 | $ | 51.11 | $ | 52.42 | ||||||||
| Diluted | 53.76 | 50.38 | 49.34 | 50.30 | 49.39 | 47.54 | 47.63 | 48.73 | ||||||||||||||||
| Total Class A and Common shares outstanding (shares in thousands) | 24,647 | 24,867 | 24,959 | 25,136 | 25,230 | 25,408 | 25,609 | 26,113 | ||||||||||||||||
Guardian Capital Group Limited (Guardian) is a global investment management company servicing institutional, retail and private clients through its subsidiaries. It also manages a proprietary portfolio of securities. Founded in 1962, Guardian’s reputation for steady growth, long-term relationships and its core values of trustworthiness, integrity and stability have been key to its success over six decades. Its Common and Class A shares are listed on the Toronto Stock Exchange as GCG and GCG.A, respectively. To learn more about Guardian, visit www.guardiancapital.com.
| For further information, contact: | |
| Donald Yi Chief Financial Officer (416) 350-3136 | George Mavroudis President and Chief Executive Officer (416) 364-8341 |
| Investor Relations: investorrelations@guardiancapital.com. | |
Caution Concerning Forward-Looking Information
Certain information included in this press release constitutes forward-looking information within the meaning of applicable Canadian securities laws. All information other than statements of historical fact may be forward-looking information. 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 the Company 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, tax laws or tariffs, the duration and severity of pandemics, natural disasters, military conflicts in various parts of the world, as well as those risk factors discussed or referred to in the risk factors section and the other disclosure documents filed by the Company with the securities regulatory authorities in certain provinces of Canada and available at www.sedarplus.ca. 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 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.
(1) Non IFRS Measures
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, and stock-based compensation expenses, net gains or losses and net earnings from discontinued operations. 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 cash flow from discontinued operations. Adjusted cash flow from operations attributable to shareholders as Adjusted cash flow from operations less the amounts attributable to non-controlling interests. A reconciliation between these measures and the most comparable IFRS measures are as follows:
| For the years ended December 31, ($ in thousands) | 2024 | 2023 | |||||
| Net earnings | $ | 101,598 | $ | 657,095 | |||
| Add (deduct): | |||||||
| Net earnings from discontinued operations | — | (554,933 | ) | ||||
| Income tax expense | 14,670 | 15,474 | |||||
| Net gains | (77,444 | ) | (57,787 | ) | |||
| Stock-based compensation | 4,058 | 3,587 | |||||
| Interest expense | 10,362 | 8,296 | |||||
| Amortization | 17,630 | 13,692 | |||||
| EBITDA | 70,874 | 85,424 | |||||
| Less attributable to non-controlling interests in continuing operations | (2,626 | ) | (3,177 | ) | |||
| EBITDA attributable to shareholders | $ | 68,248 | $ | 82,247 | |||
| For the years ended December 31, ($ in thousands) | 2024 | 2023 | |||||
| Net cash from operating activities | $ | 93,261 | $ | 81,419 | |||
| Add (deduct): | |||||||
| Net cash from operating activities, discontinued operations | — | (10,087 | ) | ||||
| Net change in non-cash working capital items | (35,725 | ) | (8,282 | ) | |||
| Net change in non-cash working capital items, discontinued operations | — | 9,713 | |||||
| Adjusted cash flow from operations | 57,536 | 72,763 | |||||
| Less attributable to non-controlling interests, continuing operations | (2,652 | ) | (3,182 | ) | |||
| Adjusted cash flow from operations attributable to shareholders | $ | 54,884 | $ | 69,581 | |||
The per share amounts for EBITDA attributable to shareholders, Adjusted cash flow from operations attributable to shareholders and Shareholders’ equity are calculated by dividing the amounts by diluted shares, which is calculated in a manner similar to net earnings attributable to shareholders per share.
Securities, net and Securities, net per share
Securities, net and Securities, net per share are used by management to indicate the value available to shareholders created by Guardian’s investment in securities, without the netting of debt or deferred income taxes associated with the unrealized gains. The most comparable IFRS measures are “Securities” & “Securities sold short”, which are disclosed in Guardian’s Consolidated Balance Sheet. Securities, net defined as the net sum of Securities and Securities sold short. The per share amount is 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.
