Excluding significant items, fourth quarter diluted earnings per share
of $0.25(1) driven by performance of US and UK operations
(All dollar amounts are stated in Canadian dollars unless otherwise
indicated)
TORONTO, June 3, 2014 /CNW/ - During the quarter ended March 31, 2014,
Canaccord Genuity Group Inc. ('the Company' or 'Canaccord', TSX: CF,
LSE: CF.) generated $253.7 million in revenue. Excluding significant
items(1) (a non-IFRS measure), the Company recorded net income of $29.1 million
or net income of $25.7 million attributable to common shareholders(2) ($0.25 per diluted common share). Including all expense items, on an
IFRS basis, the Company recorded net income of $25.9 million or net
income attributable to common shareholders (2) of $22.8 million ( $0.22 per diluted common share).
During the fiscal year ended March 31, 2014, Canaccord generated a
record $855.2 million of revenue and, excluding significant items(1), recorded net income of $68.8 million or net income attributable to
common shareholders(2) of $55.4 million ($0.54 per diluted common share). Including all
expense items, on an IFRS basis, the Company recorded net income of
$52.1 million or net income of $39.7 million attributable to common
shareholders(2) ($0.39 per diluted common share).
"Our strong results during fiscal 2014 were driven by exceptional
performance from our US and UK operations, with significant and growing
contributions from the Asia-Pacific region," said Paul Reynolds,
President and CEO of Canaccord Genuity Group Inc. "In addition, we are
seeing a welcome pickup in volumes and transaction activity in the
Canadian market."
Mr. Reynolds added: "In fiscal 2015 we will look to grow our global
business and continue to deliver enhanced and consistent client
experiences in all our geographies."
FISCAL 2014 VS. FISCAL 2013
12 months ended March 31, 2014 vs. 12 months ended March 31, 2013
-
Revenue of $855.2 million, an increase of 7% or $58.1 million from
$797.1 million
-
Excluding significant items, expenses of $770.6 million, an increase of
1% or $3.7 million from $766.9 million(1)
-
Expenses of $790.7 million, down 4% or $30.2 million from $820.8 million
-
Excluding significant items, net income of $68.8 million compared to net
income of $25.6 million(1)
-
Net income of $52.1 million, compared to a net loss of $18.8 million
-
Excluding significant items, diluted earnings per common share (EPS) of
$0.54 compared to diluted EPS of $0.14 in fiscal 2013(1)
-
Diluted EPS of $0.39 compared to a diluted loss per common share of
$0.31 in the prior year
FOURTH QUARTER FISCAL 2014 VS. FOURTH QUARTER FISCAL 2013
3 months ended March 31, 2014 vs. 3 months ended March 31, 2013
-
Revenue of $253.7 million, an increase of 16% or $35.8 million from
$218.0 million
-
Excluding significant items, expenses of $217.8 million, an increase of
9% or $17.3 million from $200.5 million(1)
-
Expenses of $221.7 million, an increase of 5% or $9.8 million from
$212.0 million
-
Excluding significant items, net income of $29.1 million compared to net
income of $15.6 million(1)
-
Net income of $25.9 million compared to a net income of $6.4 million
-
Excluding significant items, diluted EPS of $0.25 compared to $0.12 in
the fourth quarter of 2013(1)
-
Diluted EPS of $0.22 compared to a diluted EPS of $0.04
FOURTH QUARTER OF FISCAL 2014 VS. THIRD QUARTER OF FISCAL 2014
3 months ended March 31, 2014 vs. 3 months ended December 31, 2013
-
Revenue of $253.7 million, an increase of 10% or $22.7 million from
$231.0 million
-
Excluding significant items, expenses of $217.8 million, an increase of
7% or $14.9 million from $202.9 million(1)
-
Expenses of $221.7 million, an increase of 7% or $15.2 million from
$206.5 million
-
Excluding significant items, net income of $29.1 million compared to net
income of $21.2 million(1)
-
Net income of $25.9 million compared to net income of $18.3 million
-
Excluding significant items, diluted EPS of $0.25 compared to $0.17 in
the third quarter of 2014(1)
-
Diluted EPS of $0.22 compared to diluted EPS of $0.14 in the third
quarter of 2014
Financial condition at end of fourth quarter 2014 vs. fourth quarter
2013
-
Cash and cash equivalents balance of $364.3 million, down $126.7 million
from $491.0 million
-
Working capital of $469.4 million, an increase of $75.7 million from
$393.7 million
-
Total shareholders' equity of $1,168.7 million, an increase of $119.5
million from $1,049.2 million
-
Book value per diluted common share for the period end was $9.05, an
increase of 18% or $1.37 from $7.68(3)
-
On June 3, 2014, the Board of Directors approved a quarterly dividend of
$0.05 per common share payable on July 2, 2014 with a record date of
June 20, 2014
-
On June 3, 2014, the Board of Directors also approved a cash dividend of
$0.34375 per Series A Preferred Share payable on June 30, 2014 with a
record date of June 13, 2014, and approved a cash dividend of $0.359375
per Series C Preferred Share payable on June 30, 2014 and with a record
date of June 13, 2014
SUMMARY OF OPERATIONS FOR THE QUARTER
Corporate
-
On January 15, 2014, Canaccord Genuity appointed Stuart Raftus as
President of Canaccord Genuity Wealth Management in Canada
-
On March 26, 2014, Canaccord Genuity appointed David Esfandi as Chief
Executive of Canaccord Genuity Wealth Management in the UK
-
On March 26, 2014, Canaccord Genuity announced that Stephen Massey
assumed the position of Chairman of Canaccord Genuity Wealth Management
in the UK
-
During the fourth fiscal quarter, the Company purchased 675,856 of its
common shares under the terms of its normal course issuer bid (NCIB) to
bring the total purchases for the current fiscal year to 3,294,144
common shares as of March 31, 2014
-
3,248,544 common shares purchased under the NCIB up to the end of fiscal
2014 were cancelled on or before March 31, 2014 and the remaining
45,600 common shares purchased during fiscal 2014 were held in
treasury until subsequently cancelled on April 30, 2014
Capital Markets
-
During fiscal Q4/14 Canaccord Genuity led or co-led 33 transactions
globally, raising total proceeds of C$3.0 billion(4)
-
Canaccord Genuity participated in 106 transactions globally, raising
total proceeds of C$13.6 billion(4) during fiscal Q4/14
-
During fiscal Q4/14, Canaccord Genuity led or co-led the following
transactions:
-
£431.0 million for Poundland Group PLC on the LSE
-
£326.3 million for Playtech PLC on the LSE
-
£240.0 million for Brit Insurance PLC on the LSE
-
C$224.3 million for Goldcorp Inc. in a secondary offering of Primero
Mining Corp. shares on the TSX
-
£211.0 million for Circassia Pharmaceuticals PLC on the LSE
-
£169.0 million for Optimal Payments PLC on AIM
-
C$133.3 million for DHX Media Limited on the TSX
-
£109.2 million for Monitise PLC on AIM
-
AUD$100.0 million for G8 Education Limited on the ASX
-
US$86.3 million for Derma Sciences, Inc. on the NASDAQ
-
C$75.0 million for Redknee Solutions Inc. on the TSX
-
AUD$75 million for Donaco International Limited on the ASX
-
C$74.8 million for Pure Industrial Real Estate Trust on the TSX
-
Two transactions totalling US$69.8 million for Rubicon Technology, Inc.
on the NASDAQ
-
C$67.6 million for Concordia Healthcare Corporation on the TSX
-
£66.2 million for The Renewables Infrastructure Group Limited on the LSE
-
US$57.5 million for Datawatch Corporation on the NASDAQ
-
US$50.0 million for President Energy PLC on AIM
-
S$43.5 million for Kim Heng Offshore & Marine Holdings Limited on the
SGX-Catalist
-
C$33.0 million for Sandvine Corporation on the TSX
-
C$30.0 million for Cardiome Pharma Corp. on the TSX
-
C$27.6 million for Enterprise Group Inc. on the TSX
-
C$23.0 million for Merus Labs International Inc. on the TSX
-
C$20.0 million for Luna Gold Corp. on the TSX
-
£11.4 million for Goals Soccer Centres PLC on AIM
-
Canaccord Genuity generated advisory revenues of $33.6 million during
fiscal Q4/14 and $138.9 million during fiscal 2014
-
During fiscal Q4/14, Canaccord Genuity advised on the following M&A and
advisory transactions:
-
Xsens Technologies on its sale to Fairchild Semiconductor
-
Marlin Financial Group Limited on its disposal to Cabot Credit
Management Limited
-
Oaktree Capital Management on its co-investment in the new chemical
fleet with Navig8
-
Caffè Nero on the refinancing of its debt facilities
-
Camac Energy Inc. on the acquisition of an interest in the OML 120/121
block offshore Nigeria
-
Investcorp on the disposal of TDX Group to Equifax Inc.
-
DOCUgroup on the refinancing of its debt facilities
-
Asanko Gold Inc. on its acquisition of PMI Gold Corp.
-
Chequers Capital on its acquisition of ISS Espaces verts
-
Spire Topco Hotels Limited on the disposal of Four Pillars Hotel Group
to Starwood Capital
-
Petainer on the refinancing of its debt facilities
-
Succession Holdings Limited on a majority investment by Inflexion
Partners
-
Enterprise Group Inc. on its acquisition of Hart Oilfield Rentals
Limited.
-
Parature on its sale to Microsoft Corporation
Canaccord Genuity Wealth Management (Global)
-
On a global basis, Canaccord Genuity Wealth Management generated revenue
of $66.9 million in Q4/14
-
Total assets under administration(3) in Canada, and assets under management(3) in the UK, Europe and Australia, were $30.9 billion at the end of
fiscal Q4/14
Canaccord Genuity Wealth Management (North America)
-
Canaccord Genuity Wealth Management generated $32.0 million in revenue
and recorded a net loss before taxes of $3.2 million in Q4/14
-
Assets under administration(3) in Canada were $10.2 billion, an increase of 7% from $9.5 billion at
the end of Q3/14 and down 3% from $10.4 billion at the end of Q4/13
-
Assets under management (3) in Canada (discretionary) were $1.2 billion, an increase of 13% from
$1.1 billion at the end of Q3/14 and an increase of 44% from $835
million at the end of Q4/13
-
As at March 31, 2014, Canaccord Genuity Wealth Management had 160
Advisory Teams(5), a decrease of 18 Advisory Teams(5) from March 31, 2013 and a decrease of 3 from December 31, 2013
-
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 $33.2
million in revenue and, excluding significant items, recorded net
income of $6.4 million before taxes(1)
-
Assets under management (discretionary and non-discretionary)(3) were $20.2 billion (£10.9 billion), an increase of 6% from $19.0
billion (£10.8 billion) at the end of Q3/14 and an increase of 27% from
$15.9 billion (£10.2 billion) at the end of Q4/13
Non-IFRS Measures
The non-International Financial Reporting Standards (IFRS) measures
presented include assets under administration, assets under management,
book value per diluted common share and figures that exclude
significant items. Significant items include restructuring costs,
amortization of intangible assets, and acquisition-related expense
items, which include costs recognized in relation to both prospective
and completed acquisitions. Book value per diluted common share is
calculated as total common shareholders' equity divided by the number
of diluted common shares outstanding and, commencing in Q1/14, adjusted
for shares purchased under the NCIB and not yet cancelled, and
estimated forfeitures in respect of unvested share awards under
share-based payment plans.
Management believes that these non-IFRS measures will allow for a better
evaluation of the operating performance of Canaccord's business and
facilitate meaningful comparison of results in the current period to
those in prior periods and future periods. Figures that exclude
significant items provide useful information by excluding certain items
that may not be indicative of Canaccord's core operating results. A
limitation of utilizing these figures that exclude significant items is
that the IFRS accounting effects of these items do in fact reflect the
underlying financial results of Canaccord's business; thus, these
effects should not be ignored in evaluating and analyzing Canaccord's
financial results. Therefore, management believes that Canaccord's IFRS
measures of financial performance and the respective non-IFRS measures
should be considered together.
Selected financial information excluding significant items
|
|
Three months ended March 31
|
|
|
Quarter-
over-
quarter
change
|
|
|
For the years ended March 31
|
|
|
YTD - over
- YTD
change
|
(C$ thousands, except per share and % amounts)
|
|
2014
|
2013
|
|
|
2014
|
2013
|
|
|
Total revenue per IFRS
|
|
$253,748
|
$217,971
|
|
|
16.4%
|
|
|
$855,244
|
$797,122
|
|
|
7.3%
|
Total expenses per IFRS
|
|
221,737
|
211,984
|
|
|
4.6%
|
|
|
790,656
|
820,824
|
|
|
(3.7)%
|
Significant items recorded in Canaccord Genuity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring costs
|
|
—
|
5,561
|
|
|
(100.0)%
|
|
|
5,486
|
15,232
|
|
|
(64.0)%
|
|
Amortization of intangible assets
|
|
1,702
|
3,458
|
|
|
(50.8)%
|
|
|
6,742
|
14,740
|
|
|
(54.3)%
|
|
Acquisition-related costs
|
|
—
|
—
|
|
|
—
|
|
|
—
|
388
|
|
|
(100.0)%
|
Significant items recorded in Canaccord Genuity
Wealth Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
2,256
|
1,600
|
|
|
41.0%
|
|
|
7,841
|
5,855
|
|
|
33.9%
|
|
Restructuring costs
|
|
—
|
884
|
|
|
(100.0)%
|
|
|
—
|
15,485
|
|
|
(100.0)%
|
|
Acquisition-related costs
|
|
—
|
—
|
|
|
—
|
|
|
—
|
1,331
|
|
|
(100.0)%
|
Significant items recorded in Corporate and Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring costs
|
|
—
|
—
|
|
|
—
|
|
|
—
|
900
|
|
|
(100.0)%
|
|
Acquisition-related costs
|
|
—
|
—
|
|
|
—
|
|
|
—
|
—
|
|
|
—
|
|
Total significant items
|
|
3,958
|
11,503
|
|
|
(65.6)%
|
|
|
20,069
|
53,931
|
|
|
(62.8)%
|
Total expenses excluding significant items
|
|
217,779
|
200,481
|
|
|
8.6%
|
|
|
770,587
|
$766,893
|
|
|
0.5%
|
Net income before tax - adjusted
|
|
35,969
|
17,490
|
|
|
105.7%
|
|
|
84,657
|
30,229
|
|
|
180.1%
|
Income taxes - adjusted
|
|
6,894
|
1,911
|
|
|
260.8%
|
|
|
15,811
|
4,585
|
|
|
244.8%
|
Net income- adjusted
|
|
$29,075
|
$15,579
|
|
|
86.6%
|
|
|
$68,846
|
$25,644
|
|
|
168.5%
|
EPS - basic, adjusted
|
|
$0.28
|
$0.14
|
|
|
100.0%
|
|
|
$0.59
|
$0.16
|
|
|
268.8%
|
EPS - diluted, adjusted
|
|
$0.25
|
$0.12
|
|
|
108.3%
|
|
|
$0.54
|
$0.14
|
|
|
285.7%
|
ACCESS TO QUARTERLY RESULTS INFORMATION
Investors, the media and others may review this quarterly earnings
release and supplementary financial information at http://www.canaccordgenuitygroup.com/EN/IR/Pages/default.aspx.
CONFERENCE CALL AND WEBCAST PRESENTATION
Interested parties are invited to listen to Canaccord's fourth quarter
and fiscal 2014 results conference call via a live webcast or a toll
free number. The conference call is scheduled for Wednesday, June 4, at
5:00 a.m. (Pacific Time), 8:00 a.m. (Eastern Time), 1:00 p.m. (UK
Time), 8:00 p.m. (China Standard Time), and 10:00 p.m. (Australia EST
Time). At that time, senior executives will comment on the results for
the fourth quarter and fiscal 2014 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: http://www.canaccordgenuitygroup.com/EN/NewsEvents/Pages/Events.aspx
Analysts and institutional investors can access the call in via
telephone at:
-
647-427-7450 (within Toronto)
-
1-888-231-8191 (toll free in North America)
-
0-800-051-7107 (toll free from the UK)
-
1-800-760-620 (toll free from Ireland)
-
0-800-917-449 (toll free from France)
-
0-800-183-0171 (toll free from Germany)
-
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 Genuity Group Inc's Q4/14
earnings call.
A replay of the conference call will be available on June 4, 2014, after
8:00 a.m. (Pacific Time), 11:00 a.m. (Eastern Time) 4:00 p.m. (UK
Time), 11:00 p.m. (China Standard Time) and 1:00 a.m. (Australia EST
Time) on June 5, 2014 until July 23, 2014 at 416-849-0833 or
1-855-859-2056 by entering passcode 48723041 followed by the pound (#)
sign.
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 11
countries worldwide, including wealth management offices located in
Canada, Australia, the UK and Europe. Canaccord Genuity, the
international capital markets division, operates in Canada, the US, the
UK, France, Germany, Ireland, Hong Kong, mainland China, Singapore,
Australia and Barbados. To us there are no foreign markets.TM
Canaccord Genuity Group Inc. is publicly traded under the symbol CF on
the TSX and the symbol CF. on the London Stock Exchange. Canaccord
Series A Preferred Shares are listed on the TSX under the symbol
CF.PR.A. Canaccord Series C Preferred Shares are listed on the TSX
under the symbol CF.PR.C.
___________________________
1 Significant items include restructuring costs, amortization of
intangible assets and acquisition-related costs. See Non-IFRS Measures
on page 5.
2 Net income attributable to common shareholders is calculated as net
income adjusted for non-controlling interests and preferred share
dividends
3 See Non-IFRS measures on page 5.
4 Source: FP Infomart and Company Information. Transactions over C$1.5
million.
5 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 Genuity Group Inc.