Guardian Capital Group Limited (TSX: GCG; GCG.A) Announces 2025 Second Quarter Operating Results
TORONTO, Aug. 07, 2025 (GLOBE NEWSWIRE) -- All per share figures disclosed below are stated on a diluted basis.
| For the periods ended June 30, | Three months | Six months | ||||||||
| ($ in thousands, except per share amounts) | 2025 | 2024 | 2025 | 2024 | ||||||
| Net revenue | $ | 90,032 | $ | 64,164 | $ | 185,193 | $ | 126,661 | ||
| Operating earnings | 6,128 | 14,333 | 13,178 | 26,651 | ||||||
| Net gains (losses) | 54,983 | (39,161 | ) | 39,260 | (26,424 | ) | ||||
| Net earnings (loss) | 55,581 | (22,730 | ) | 48,917 | (1,289 | ) | ||||
| EBITDA (1) | $ | 14,866 | $ | 21,376 | $ | 30,809 | $ | 40,282 | ||
| Adjusted cash flow from operations (1) | 11,228 | 14,740 | 24,265 | 29,949 | ||||||
| Attributable to shareholders: | ||||||||||
| Net earnings (loss) | 55,242 | (23,137 | ) | 48,190 | (1,970 | ) | ||||
| EBITDA (1) | 14,261 | 20,688 | 29,541 | 39,013 | ||||||
| Adjusted cash flow from operations (1) | 10,687 | 13,853 | 23,147 | 28,540 | ||||||
| Per share amounts (diluted): | ||||||||||
| Net earnings (loss) | 2.28 | (0.99 | ) | 2.00 | (0.08 | ) | ||||
| EBITDA (1) | 0.60 | 0.89 | 1.24 | 1.67 | ||||||
| Adjusted cash flow from operations (1) | 0.45 | 0.59 | 0.97 | 1.22 | ||||||
| As at | 2025 | 2024 | 2024 | ||||
| ($ in millions, except per share amounts) | June 30 | December 31 | June 30 | ||||
| Total client assets | $ | 164,143 | $ | 168,979 | $ | 58,628 | |
| Shareholders' equity | 1,323 | 1,318 | 1,223 | ||||
| Securities, net | 1,248 | 1,211 | 1,130 | ||||
| Per share amounts (diluted): | |||||||
| Shareholders' equity (1) | $ | 54.29 | $ | 53.76 | $ | 49.34 | |
| Securities, net (1) | 51.19 | 49.38 | 45.61 | ||||
The Company is reporting Total Client Assets (which includes assets under management and advisement) of $164.1 billion as at June 30, 2025, compared to $169.0 billion, as at December 31, 2024 and $58.6 billion, as at June 30, 2024. Sterling and Galibier accounted for $107.0 billion in increase since June 30, 2024. The largest contributor to the decrease in Total Client Assets since December 31, 2024, was the effect of the decrease in the value of the US dollar against the Canadian dollar, which had the effect of reducing Total Client Assets in the US Segment by $6.5 billion in the current quarter.
Net revenue for the current quarter was $90.0 million, compared to $64.2 million in the same quarter in the prior year, with $33.2 million being contributed by Sterling and Galibier, which was partially offset by lower Net management fee revenue in the other asset management businesses and lower interest income.
Operating earnings and EBITDA(1) were $6.1 million and $14.9 million, respectively, for the quarter ended June 30, 2025, compared to $14.3 million and $21.4 million, respectively, in the same quarter in the prior year. Dampening the current quarter’s results were $2.1 million of costs associated with the integration of Sterling.
Net gains in the current quarter were $55.0 million, compared to Net losses of $39.2 million in the same quarter in the prior year, which largely reflect the changes in fair values of Guardian’s Securities portfolio.
Net earnings attributable to shareholders were $55.2 million in the current quarter, compared to Net loss of $23.1 million in the comparative period, resulting largely from the swing to Net gains from Net losses described above.
Adjusted cash flow from operations attributable to shareholders(1) for the current quarter was $10.7 million, compared to $13.9 million in the comparative period.
The Company’s Shareholders’ equity as at June 30, 2025 was $1,323 million, or $54.29 per share(1), compared to $1,318 million, or $53.76 per share(1) as at December 31, 2024. Guardian’s Securities, net as at June 30, 2025 had a fair value of $1,248 million, or $51.19 per share(1), compared to $1,211 million, or $49.38 per share(1) as at December 31, 2024.
The Board of Directors is pleased to have declared a quarterly eligible dividend of $0.39 per share, payable on October 17, 2025, to shareholders of record on October 10, 2025.
The Company's financial results for the past eight quarters are summarized in the following table.
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | ||||||||||||
| As at ($ in millions) | |||||||||||||||||||
| Total client assets | $ | 164,143 | $ | 167,227 | $ | 168,979 | $ | 165,061 | $ | 58,628 | $ | 61,316 | $ | 58,774 | $ | 56,215 | |||
| For the three months ended ($ in thousands) | |||||||||||||||||||
| Net revenue | $ | 90,032 | $ | 95,161 | $ | 98,614 | $ | 98,128 | $ | 64,164 | $ | 62,497 | $ | 62,245 | $ | 62,611 | |||
| Operating earnings | 6,128 | 7,050 | 7,385 | 4,790 | 14,333 | 12,318 | 13,097 | 18,474 | |||||||||||
| Net gains (losses) | 54,983 | (15,723 | ) | 64,476 | 39,392 | (39,161 | ) | 12,737 | 60,747 | (17,358 | ) | ||||||||
| Net earnings (loss) | 55,581 | (6,664 | ) | 63,231 | 39,658 | (22,730 | ) | 21,441 | 68,048 | (2,270 | ) | ||||||||
| Net earnings (loss) attributable to shareholders | 55,242 | (7,052 | ) | 62,849 | 39,222 | (23,137 | ) | 21,167 | 67,087 | (2,506 | ) | ||||||||
| Per share amounts (in $) | |||||||||||||||||||
| Net earnings (loss) attributable to shareholders: | |||||||||||||||||||
| Basic | $ | 2.38 | $ | (0.30 | ) | $ | 2.72 | $ | 1.69 | $ | (0.99 | ) | $ | 0.90 | $ | 2.85 | $ | (0.11 | ) |
| Diluted | 2.28 | (0.30 | ) | 2.58 | 1.60 | (0.99 | ) | 0.86 | 2.68 | (0.11 | ) | ||||||||
| Dividends paid | $ | 0.39 | $ | 0.37 | $ | 0.37 | $ | 0.37 | $ | 0.37 | $ | 0.34 | $ | 0.34 | $ | 0.34 | |||
| As at | |||||||||||||||||||
| Shareholders' equity ($ in millions) | $ | 1,323 | $ | 1,304 | $ | 1,318 | $ | 1,245 | $ | 1,223 | $ | 1,255 | $ | 1,241 | $ | 1,201 | |||
| Per share amounts (in $) | |||||||||||||||||||
| Basic | $ | 57.07 | $ | 55.94 | $ | 56.54 | $ | 53.73 | $ | 52.59 | $ | 53.69 | $ | 52.87 | $ | 50.90 | |||
| Diluted | 54.29 | 53.30 | 53.76 | 50.38 | 49.34 | 50.30 | 49.39 | 47.54 | |||||||||||
| Total Class A and Common shares outstanding (shares in thousands) | 24,564 | 24,647 | 24,647 | 24,867 | 24,959 | 25,136 | 25,230 | 25,408 | |||||||||||
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 the Company’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 to 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 periods ended June 30, | Three months | Six months | ||||||||||
| ($ in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Net earnings (loss) | $ | 55,581 | $ | (22,730 | ) | $ | 48,917 | $ | (1,289 | ) | ||
| Add (deduct): | ||||||||||||
| Income tax expense (recovery) | 5,530 | (2,098 | ) | 3,521 | 1,516 | |||||||
| Net (gains) losses | (54,983 | ) | 39,161 | (39,260 | ) | 26,424 | ||||||
| Stock-based compensation | 1,143 | 1,058 | 2,187 | 1,924 | ||||||||
| Interest expense | 1,949 | 2,629 | 4,099 | 5,078 | ||||||||
| Amortization | 5,646 | 3,356 | 11,345 | 6,629 | ||||||||
| EBITDA | 14,866 | 21,376 | 30,809 | 40,282 | ||||||||
| Less attributable to non-controlling interests | (605 | ) | (688 | ) | (1,268 | ) | (1,269 | ) | ||||
| EBITDA attributable to shareholders | $ | 14,261 | $ | 20,688 | $ | 29,541 | $ | 39,013 | ||||
| For the periods ended June 30, | Three months | Six months | ||||||||||
| ($ in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Net cash from operating activities | $ | 12,337 | $ | 14,873 | $ | (33,737 | ) | $ | 6,466 | |||
| Add (deduct): | ||||||||||||
| Net change in non-cash working capital items | (1,109 | ) | (133 | ) | 58,002 | 23,483 | ||||||
| Adjusted cash flow from operations | 11,228 | 14,740 | 24,265 | 29,949 | ||||||||
| Less attributable to non-controlling interests | (541 | ) | (887 | ) | (1,118 | ) | (1,409 | ) | ||||
| Adjusted cash flow from operations attributable to shareholders | $ | 10,687 | $ | 13,853 | $ | 23,147 | $ | 28,540 | ||||
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 the Company’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 the Company’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.
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