Excluding significant items(1), net income of $15.6 million, or $0.12 per diluted share, during the
fiscal fourth quarter
(All dollar amounts are stated in Canadian dollars unless otherwise
indicated)
TORONTO, May 21, 2013 /PRNewswire/ - During the fourth quarter of fiscal 2013,
the quarter ended March 31, 2013, Canaccord Financial Inc. (Canaccord,
TSX: CF, LSE: CF., 'the Company') generated $218.0 million in revenue
and, excluding significant items(1), recorded net income of $15.6 million or $0.12 per diluted common
share. On an IFRS basis, the Company recorded net income of $6.4
million, or $0.04 per common share. Significant items(1) totalling $11.5 million, or $9.2 million after tax, were incurred during
the quarter, including $6.4 million of restructuring charges related to
the Company's UK advisory practice and the integration of Eden
Financial Ltd.'s (Eden Financial) wealth management business.
During the fiscal year ended March 31, 2013, Canaccord generated $797.1
million of revenue and, excluding significant items(1), recorded net income of $25.6 million, or $0.14 per common share, On an
IFRS basis, the Company recorded a net loss of $18.8 million, or $0.31
per common share during the fiscal year.
Paul Reynolds, President and CEO of Canaccord Financial Inc. said:
"Fiscal 2013 was a pivotal year for Canaccord Financial, as we
integrated the largest acquisition in the firm's history. In doing so,
we eliminated significant costs, aligned staffing levels with market
opportunities and grew our cross-border client services. Together,
these activities have strengthened our business and meaningfully
enhanced our operating margins since the beginning of the year."
Mr. Reynolds added: "Our acquisition of Collins Stewart enhanced our
sector coverage considerably, which has played an important role in our
ability to offset supressed resource sector activity. It also expanded
the scope of our international operations. In fact, over half of our
revenue is now generated from operations outside of Canada,
significantly improving the diversity and consistency of our revenue
streams."
FISCAL 2013 VS. FISCAL 2012
12 months ended March 31, 2013 vs. 12 months ended March 31, 2012
-
Revenue of $797.1 million, up 32% or $192.2 million from $604.9 million
-
Expenses of $820.8 million, up 32% or $199.8 million from $621.0 million
-
Net loss of $18.8 million, compared to a net loss of $21.3 million
-
Diluted loss per common share of $0.31 compared to a diluted loss per
share of $0.33 in the prior year
Excluding significant items (1)
-
Expenses of $766.9 million, up 36% or $202.7 million from $564.2 million
-
Net income of $25.6 million compared to net income of $25.2 million
-
Diluted earnings per share (EPS) of $0.14 compared to diluted EPS of
$0.25 in fiscal 2012
FOURTH QUARTER OF FISCAL 2013 VS. FOURTH QUARTER OF FISCAL 2012
3 months ended March 31, 2013 vs. 3 months ended March 31, 2012
-
Revenue of $218.0 million, up 23% or $40.3 million from $177.7 million
-
Expenses of $212.0 million, up 2% or $4.3 million from $207.7 million
-
Net income of $6.4 million compared to a net loss of $31.8 million
-
Diluted EPS of $0.04 compared to a diluted loss per share of $0.42
Excluding significant items (1)
-
Expenses of $200.5 million, up 20% or $34.0 million from $166.5 million
-
Net income of $15.6 million compared to net income of $2.1 million
-
Diluted EPS of $0.12 compared to $0.02 in the fourth quarter of 2012
FOURTH QUARTER OF FISCAL 2013 VS. THIRD QUARTER OF FISCAL 2013
3 months ended March 31, 2013 vs. 3 months ended December 31, 2012
-
Revenue of $218.0 million, down 5% or $12.0 million from $230.0 million
-
Expenses of $212.0 million, down 2% or $4.9 million from $216.9 million
-
Net income of $6.4 million compared to net income of $10.3 million
-
Diluted EPS of $0.04 compared to diluted EPS of $0.08 in the third
quarter of 2013
Excluding significant items (1)
-
Expenses of $200.5 million, down 2% or $4.5 million from $205.0 million
-
Net income of $15.6 million compared to net income of $20.5 million
-
Diluted EPS of $0.12 compared to $0.17 in the third quarter of 2013
Financial condition at end of fourth quarter 2013 vs. fourth quarter
2012
-
Cash and cash equivalents balance of $491.0 million, down $323.2 million
from $814.2 million
-
Working capital of $393.7 million, up $62.6 million from $331.1 million
-
Total shareholders' equity of $1,049.2 million, up $57.1 million from
$992.1 million
-
Book value per diluted common share for the period end was $7.68, down
7% or $0.58 from $8.26
-
On May 21, 2013, the Board of Directors approved a quarterly dividend of
$0.05 per common share payable on June 10, 2013 with a record date of
May 31, 2013
-
On May 21, 2013, the Board of Directors also approved a cash dividend of
$0.34375 per Series A Preferred Share payable on July 2, 2013 with a
record date of June 21, 2013, and approved a cash dividend of $0.359375
per Series C Preferred Share payable on July 2, 2013 and with a record
date of June 21, 2013
SUMMARY OF OPERATIONS
Corporate
-
On February 1, 2013 Canaccord completed the integration of its UK wealth
management business with the business of Eden Financial Ltd.
-
On March 1, 2013, Canaccord completed the integration of its UK and
European advisory practice, previously known as Canaccord Genuity
Hawkpoint, into its broader, global investment banking division.
-
Subsequent to the quarter, on May 1, 2013, Canaccord rebranded all
wealth management businesses on its platform as Canaccord Genuity Wealth Management. This new global wealth management brand replaces:
-
Canaccord Wealth Management (in Canada and Australia)
-
Collins Stewart Wealth Management (in the UK and Europe)
-
Eden Financial (in the UK)
Capital Markets
-
Canaccord Genuity led or co-led 24 transactions globally, raising total
proceeds of $774 million(2) during fiscal Q4/13
-
Canaccord Genuity participated in 94 transactions globally, raising
total proceeds of $7.5 billion(2) during fiscal Q4/13
-
During fiscal Q4/13, Canaccord Genuity led or co-led the following
transactions:
-
£695 million for esure on the LSE
-
£167.3 million for HICL Infrastructure Company Limited on the LSE
-
C$100.1 million for American Hotel Income Properties REIT LP on the TSX
-
US$97.8 million for Insulet Corp. on the NASDAQ
-
C$69.7 million for Pure Industrial Real Estate Trust on the TSX
-
£60 million Retail Bond for The Paragon Group of Companies
-
US$57.5 million for Aveo Pharmaceuticals on the NASDAQ
-
US$47.9 million for CalAmp Corp. on the NASDAQ
-
C$40.4 million for Santacruz Silver Mining Ltd. on the TSX - Venture
-
AUD$35.0 million for G8 Education Ltd. on the ASX
-
C$34.5 million for MBAC Fertilizer Corp. on the TSX
-
C$30.0 million for Amaya Gaming Group Inc. on the TSX
-
C$29.0 million for Labrador Iron Mines Holding Limited on the TSX
-
C$25.9 million for Partners Real Estate Investment Trust on the TSX
-
£23.1 million for IGAS PLC on AIM
-
US$21 million for Beacon Hill Plc on AIM
-
US$20.1 million for IMRIS, Inc. on the NASDAQ
-
Canaccord Genuity generated advisory revenues of $56.1 million during
fiscal Q4/13, an increase of 128% compared to the same quarter last
year
-
During fiscal Q4/13, Canaccord Genuity advised on the following M&A and
advisory transactions:
-
Primaris on its hostile defence and sale to H&R REIT and KingSett
Capital
-
Fawkes Holdings Limited on its sale of 42 UK Marriott hotels
-
Sportingbet plc on its acquisition by William Hill and GVC Holdings
assets
-
IPH and its management on its disposal to PAI Partners SAS
-
M3 Capital Partners (UK) LLP and Extra MSA Group on the acquisition of
Motorway Service Area
-
RBSM (Investments) Limited on its disposal of Malmaison/Hotel du Vin to
KSL Capital Partners
-
Wescast Industries on its acquisition by Sichuan Bohon Group
-
Investcorp on its acquisition of Hydrasun Holdings Limited
-
FFastFill plc on its acquisition by Pattington Limited
-
Parkland Fuel Corporation on its acquisition of Elbow River Marketing
-
Iogen Corporation on its acquisition by Novosymes A/S
-
Punter Southall on its recapitalization
-
Geomagic, Inc. on its acquisition by 3D Systems Corp.
-
Redknee Inc. on its acquisition of NSN BSS Business
-
Wireless Matrix Inc. on its acquisition by CalAmp Corp.
-
Rio Verde Minerals Development Corp. on its acquisition by B&A Minercao
-
EndoChoice, Inc. on its merger with Peer Medical Ltd.
-
JKX Oil & Gas plc on its convertible bond issue
-
Omega Protein Corporation on its acquisition of Wisconsin Specialty
Protein, LLC
-
Soitec on a development and licensing agreement with GT Advanced
Technologies
Canaccord Genuity Wealth Management (Global)
-
On a global basis, Canaccord Genuity Wealth Management generated revenue
of $60.2 million in Q4/13
-
Total assets under administration (1) in Canada, and assets under management in the UK, Europe and Australia,
were $26.8 billion at the end of fiscal Q4/13
Canaccord Genuity Wealth Management (North America and Australia)
-
Canaccord Genuity Wealth Management generated $33.5 million in revenue
and recorded a net loss before tax of $7.4 million in Q4/13
-
Assets under administration(1) in Canada were $10.4 billion, down 9% from $11.4 billion at the end of
Q3/13 and down 30% from $14.8 billion at the end of Q4/12
-
Assets under management (1) in Canada (discretionary) were $835 million, up 6% from $791 million at
the end of Q3/13 and up 23% from $677 million at the end of Q4/12
-
As at March 31, 2013, Canaccord Genuity Wealth Management had 178
Advisory Teams(3), a decrease of 102 Advisory Teams(3) from March 31, 2012 and a decrease of six from December 31, 2012
-
Canaccord Genuity Wealth Management has 16 offices across Canada,
including eight operating on the Independent Wealth Management (IWM)
platform
Canaccord Genuity Wealth Management (UK and Europe)
-
Wealth management operations in the UK and Europe generated $26.7
million in revenue and, excluding significant items, recorded net
income of $6.3 million before taxes (1)
-
Assets under management (discretionary and non-discretionary) (1) were $15.9 billion (£10.2 billion), up 5% from $15.2 billion at the end
of Q3/13 and up 22% from $13.1 billion at the end of Q4/12
Non-IFRS Measures
The non-International Financial Reporting Standards (IFRS) measures
presented include assets under administration, assets under management,
book value per diluted common share, return on common equity and
figures that exclude significant items. Significant items include
restructuring costs, amortization of intangible assets and
acquisition-related expense items, which include costs recognized in
relation to both prospective and completed acquisitions. Management
believes that these non-IFRS measures will allow for a better
evaluation of the operating performance of Canaccord's business and
facilitate meaningful comparison of results in the current period to
those in prior periods and future periods. Figures that exclude
significant items provide useful information by excluding certain items
that may not be indicative of Canaccord's core operating results. A
limitation of utilizing these figures that exclude significant items is
that the IFRS accounting effects of these items do in fact reflect the
underlying financial results of Canaccord's business; thus, these
effects should not be ignored in evaluating and analyzing Canaccord's
financial results. Therefore, management believes that Canaccord's IFRS
measures of financial performance and the respective non-IFRS measures
should be considered together.
Selected financial information excluding significant items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter-
|
|
|
|
|
|
|
|
|
YTD-
|
|
|
|
|
Three months
|
|
|
over-
|
|
|
Year ended
|
|
|
over-
|
|
|
|
|
ended March 31
|
|
|
quarter
|
|
|
March 31
|
|
|
YTD
|
(C$ thousands, except per share and % amounts)
|
|
|
|
2013
|
|
|
2012
|
|
|
change
|
|
|
2013
|
|
|
2012
|
|
|
change
|
Total revenue per IFRS
|
|
|
|
$217,971
|
|
|
$177,692
|
|
|
22.7%
|
|
|
$797,122
|
|
|
$604,864
|
|
|
31.8%
|
Total expenses per IFRS
|
|
|
|
211,984
|
|
|
207,731
|
|
|
2.0%
|
|
|
820,824
|
|
|
620,983
|
|
|
32.2%
|
Significant items recorded in Canaccord Genuity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring costs
|
|
|
|
5,561
|
|
|
27,786
|
|
|
(80.0)%
|
|
|
15,232
|
|
|
29,078
|
|
|
(47.6)%
|
|
Acquisition-related costs
|
|
|
|
-
|
|
|
6,323
|
|
|
(100.0)%
|
|
|
388
|
|
|
10,466
|
|
|
(96.3)%
|
|
Amortization of intangible assets
|
|
|
|
3,458
|
|
|
1,865
|
|
|
85.4%
|
|
|
14,740
|
|
|
5,492
|
|
|
168.4%
|
Significant items recorded in Canaccord Genuity Wealth Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring costs
|
|
|
|
884
|
|
|
900
|
|
|
(1.8)%
|
|
|
15,485
|
|
|
900
|
|
|
n.m.
|
|
Acquisition-related costs
|
|
|
|
-
|
|
|
4,077
|
|
|
(100.0)%.
|
|
|
1,331
|
|
|
4,077
|
|
|
(67.4)%
|
|
Amortization of intangible assets
|
|
|
|
1,600
|
|
|
-
|
|
|
n.m.
|
|
|
5,855
|
|
|
-
|
|
|
n.m.
|
Significant items recorded in Corporate and Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring costs
|
|
|
|
-
|
|
|
275
|
|
|
(100.0)%
|
|
|
900
|
|
|
5,275
|
|
|
(82.9)%
|
|
Acquisition-related costs
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,513
|
|
|
(100.0)%
|
Total significant items
|
|
|
|
11,503
|
|
|
41,226
|
|
|
(72.1)%
|
|
|
53,931
|
|
|
56,801
|
|
|
(5.1)%
|
Total expenses excluding significant items
|
|
|
|
200,481
|
|
|
166,505
|
|
|
20.4%
|
|
|
766,893
|
|
|
564,182
|
|
|
35.9%
|
Net income before income taxes - adjusted
|
|
|
|
$17,490
|
|
|
$11,187
|
|
|
56.3%
|
|
|
30,229
|
|
|
$40,682
|
|
|
(25.7)%
|
Income taxes - adjusted
|
|
|
|
1,911
|
|
|
9,098
|
|
|
(79.0)%
|
|
|
4,585
|
|
|
15,489
|
|
|
(70.4)%
|
Net income - adjusted
|
|
|
|
$15,579
|
|
|
$2,089
|
|
|
n.m.
|
|
|
$25,644
|
|
|
$25,193
|
|
|
1.8%
|
Earnings per common share - basic, adjusted
|
|
|
|
$0.14
|
|
|
$0.02
|
|
|
n.m.
|
|
|
$0.16
|
|
|
$0.28
|
|
|
(42.9)%
|
Earnings per common share - diluted, adjusted
|
|
|
|
$0.12
|
|
|
$0.02
|
|
|
n.m.
|
|
|
$0.14
|
|
|
$0.25
|
|
|
(44.0)%
|
n.m.: not meaningful
ACCESS TO QUARTERLY RESULTS INFORMATION
Interested investors, the media and others may review this quarterly
earnings release and supplementary financial information at http://www.canaccordfinancial.com/EN/IR/Pages/default.aspx.
CONFERENCE CALL AND WEBCAST PRESENTATION
Interested parties are invited to listen to Canaccord's fourth quarter
and fiscal 2013 results conference call with analysts and institutional
investors, via a live webcast or a toll free number. The conference
call is scheduled for Tuesday, May 21, 2013, at 2:30 p.m. (Pacific
Time), 5:30 p.m. (Eastern Time), 10:30 p.m. (UK Time), and at 5:30 a.m.
(China Standard Time) and 7:30 a.m. (Australia EST Time) on Wednesday,
May 22, 2013. At that time, senior executives will comment on the
results for the fourth quarter and fiscal 2013 year and respond to
questions from analysts and institutional investors.
The conference call may be accessed live and archived on a listen-only
basis via the Internet at: www.canaccordfinancial.com/EN/NewsEvents/Pages/Events.aspx
Analysts and institutional investors can call in via telephone at:
-
647-427-7450 (within Toronto)
-
1-888-231-8191 (toll free outside Toronto)
-
0-800-051-7107 (toll free from the UK)
-
10-800-714-1191 (toll free from Northern China)
-
10-800-140-1195 (toll free from Southern China)
-
1-800-287-011 (toll free from Australia)
Please request to participate in Canaccord Financial's Q4/13 earnings
call.
A replay of the conference call can be accessed after 5:30 p.m. (Pacific
Time), 8:30 p.m. (Eastern Time) on May 21, 2013, and after 1:30 a.m.
(UK Time), 8:30 a.m. (China Standard Time) and 10:30 a.m. (Australia
EST Time) on May 22, 2013 until July 4, 2013 at 416-849-0833 or
1-855-859-2056 by entering passcode 64087786 followed by the pound (#)
sign.
ABOUT CANACCORD FINANCIAL INC.
Through its principal subsidiaries, Canaccord Financial Inc. is a
leading independent, full-service financial services firm, with
operations in two principal segments of the securities industry: wealth
management and global capital markets. Since its establishment in 1950,
Canaccord 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. Canaccord has offices in 13 countries worldwide,
including wealth management offices located in Canada, Australia, the
UK and Europe. Canaccord Genuity, the Company's international capital
markets division, has operations in Canada, the US, the UK, France,
Germany, Ireland, Italy, Hong Kong, mainland China, Singapore, Myanmar,
Australia and Barbados.
Canaccord Financial Inc. is publicly listed on the Toronto Stock
Exchange and the London Stock Exchange (TSX:CF, LSE:CF.).
None of the information on Canaccord's websites at www.canaccordfinancial.com, www.canaccordgenuity.com and www.canaccord.com should be considered incorporated herein by reference.
|
___________________________________
1 See Non-IFRS Measures.
2 Source: FP Infomart and Company Information. Transactions over C$1.5
million.
3 Advisory Teams are normally comprised of one or more Investment
Advisors (IAs) and their assistants and associates, who together manage
a shared set of client accounts. Advisory Teams that are led by, or
only include, an IA who has been licensed for less than three years are
not included in our Advisory Team count, as it typically takes a new IA
approximately three years to build an average-sized book of business.
SOURCE Canaccord Financial Inc.