Excluding significant items, quarterly earnings per common share of
Excluding significant items, full fiscal year earnings per common share of
"Our wealth management businesses continue to deliver outstanding results and have been the primary driver of our resilience throughout the fourth quarter and fiscal year. Results in our capital markets businesses outside of
Fourth quarter and fiscal 2024 highlights:
(All dollar amounts are stated in thousands of Canadian dollars unless otherwise indicated)
- Fourth quarter revenue of
$409.0 million , a decrease of 5.0% year-over-year and an increase of 5.1% sequentially - Fiscal 2024 revenue of
$1.5 billion , down 2.1% year-over-year - Global wealth management operations earned record quarterly revenue of
$200.1 million and record revenue of$773.4 million for the fiscal year, up 9.2% compared to fiscal 2023 - Total client assets(1) in our global wealth management business reached a new record of
$103.9 billion , an increase of 8.0% from Q4/23 reflecting year-over-year increases of 7.2% in theUK & Crown Dependencies, 18.4% inAustralia , and 7.6% inCanada - Fourth quarter net income before taxes excluding significant items(1) of
$39.1 million , an increase of 139.2% when compared to Q4/23 results ($14.4 million on an IFRS basis and a year-over-year increase of 164.6% ) - Fiscal 2024 net income before taxes excluding significant items(1) of
$133.2 million , an increase of 5.8% year-over-year ($57.1 million on an IFRS basis compared to a net loss before taxes of$34.4 million in the prior year) - Excluding significant items (1), quarterly diluted earnings per common share for the fourth fiscal quarter of
$0.15 and a loss of$0.07 per share on an IFRS basis - Excluding significant items (1), diluted earnings per common share for fiscal 2024 of
$0.40 and a loss of$0.27 per share on an IFRS basis - Fourth quarter common share dividend of
$0.085 per share
________________________________ |
(1) See non-IFRS measures on page 6. |
Three months ended | Quarter- | Three months | Quarter- | Fiscal 2024 | Fiscal 2023 | Change | |||||
Q4/24 | Q4/23 | Q3/24 | |||||||||
Fourth fiscal quarter highlights- adjusted(1) | |||||||||||
Revenue – excluding significant items(1) | (4.9) % | 5.1 % | (2.9) % | ||||||||
Expenses - excluding significant items(1) | (10.6) % | 7.4 % | (3.6) % | ||||||||
Earnings per common share – diluted, excluding significant items(1) | 114.3 % | (25.0) % | (32.2) % | ||||||||
Net Income - excluding significant items(1),(2) | 76.6 % | (7.6) % | (6.7) % | ||||||||
Net Income attributable to common shareholders – excluding significant items(1),(3) | 156.1 % | (16.2) % | (24.7) % | ||||||||
Fourth fiscal quarter highlights- IFRS | |||||||||||
Revenue | (5.0) % | 5.1 % | (2.1) % | ||||||||
Expenses | (7.1) % | 12.1 % | (8.0) % | ||||||||
(Loss) earnings per common share – diluted | 12.5 % | (150.0) % | 76.7 % | ||||||||
Net Income (loss)(2) | 110.3 % | (71.7) % | 154.4 % | ||||||||
Net (loss) income attributable to common shareholders(3) | 8.8 % | (145.6) % | 75.7 % | ||||||||
1. Figures excluding significant items are non-IFRS measures. See Non-IFRS measures on page 6. | |||||||||||
Core business performance highlights:
The Company's combined global wealth management operations earned record quarterly revenue of
- Wealth management operations in the
UK & Crown Dependencies generated record quarterly revenue of$105.5 million for the fourth quarter and record full-year revenue of$411.5 million for the fiscal year, increases of 1.7% and 19.7% respectively, mainly due to higher interest income. Net income excluding significant items(1) was$26.6 million before taxes in Q4/24, a slight increase of 0.9% year-over-year. For the year endedMarch 31, 2024 net income before taxes and excluding significant items (1) increased by 17.9% compared to fiscal 2023 to$101.5 million . Canaccord Genuity Wealth Management (North America ) generated$77.6 million in revenue for the fourth quarter and$298.0 million for the fiscal year, decreases of 1.1% and 1.4% respectively. Revenue for the year was impacted by reduced investment banking and new issue activity in fiscal 2024 compared to fiscal 2023. Partially offsetting the reduced investment banking revenue was an increase in interest revenue for fiscal 2024 primarily because of higher interest rates. Fourth quarter interest income decreased by 13.8% year over year and 10.0% sequentially. Excluding significant items(1) net income before taxes for this business was$6.7 million in Q4/24 and$35.7 million for fiscal 2024, decreases of 38.4% and 9.5% compared to the respective periods in the prior year.- Wealth management operations in
Australia generated$17.0 million in revenue for the fourth quarter and$63.9 million for the fiscal year, increases of 13.8% and 2.3% respectively. Excluding significant items(1) net income before taxes for this business was$0.7 million in Q4/24 and$3.2 million for the fiscal year, compared to a pre-tax loss of$0.4 million and pre-tax income of$0.1 million for the comparative periods last year.
________________________________ |
(1) See non-IFRS measures on page 6. |
Total client assets in the Company's global wealth management businesses at the end of the fourth fiscal quarter were
- Client assets in
North America were$38.4 billion as atMarch 31, 2024 , an increase of 5.8% from$36.3 billion at the end of the previous quarter and an increase of 7.6% from$35.7 billion atMarch 31, 2023 . - Client assets in the
UK & Crown Dependencies were$59.1 billion (£34.6 billion) as atMarch 31, 2024 , an increase of 4.1% from$56.8 billion (£33.7 billion) at the end of the previous quarter, and an increase of 7.2% from$55.1 billion (£33.0 billion) atMarch 31, 2023 . - Client assets held in our investment management platforms in
Australia were$6.4 billion (AUD$ 7.3 billion) as atMarch 31, 2024 , an increase of 5.1% from$6.1 billion (AUD$ 6.8 billion) as atDecember 31, 2023 and an increase of 18.4% from$5.4 billion (AUD$ 6.0 billion) atMarch 31, 2023 . In addition to client assets held in our investment management platforms, client assets totalling$13.8 billion (AUD$ 15.6 billion) are also held in non-managed accounts.
Globally,
The Company's US capital markets business earned revenue of
Fourth quarter revenue in our Canadian capital markets business decreased by 10.6% year-over-year to
Our Australian capital markets business earned revenue of
Revenue in our
________________________________ |
(1) See non-IFRS measures on page 6. |
Summary of Corporate Developments
On
The Company used approximately
It is expected that certain executive officers and senior revenue producing employees (referred to as Participants herein) will enter into loan agreements ("Purchase Loans") with the Company's subsidiaries (collectively, "
Subsequent to the end of the fiscal fourth quarter, on
Subsequent to the end of the fiscal fourth quarter, on
Subsequent to the end of the fiscal fourth quarter, on
Results for the Fourth Quarter of Fiscal 2024 were impacted by the following significant items:
- Amortization of intangible assets acquired in connection with business combinations
- Certain incentive-based costs related to the acquisition and growth initiatives in the US capital markets and CGWM
UK wealth operations - Impairment of goodwill in our
UK capital markets business - Change in fair value of contingent consideration in our
UK capital market business - Fair value adjustments to the derivative liability recorded in connection with the convertible debentures
- Certain lease expenses related to premises under construction
- Certain components of the non-controlling interest expense associated with CGWM
UK
Summary of Results for Q4 Fiscal 2024 and Year Ended
Three months ended | Quarter- | Year ended | Year over | |||
(C$ thousands, except per share and % amounts) | 2024 | 2023 | 2024 | 2023 | ||
Revenue | ||||||
Revenue per IFRS | (5.0) % | (2.1) % | ||||
Significant items recorded in Corporate and Other | ||||||
Fair value adjustments on certain illiquid and restricted marketable securities | - | n.m. | (92.8) % | |||
Total revenue excluding significant item | (4.9) % | (2.9) % | ||||
Expenses | ||||||
Expenses per IFRS | (7.1) % | (8.0) % | ||||
Significant items recorded in | ||||||
Amortization of intangible assets | 1.9 % | (75.0) % | ||||
Acquisition- related costs | - | - | - | - | (100.0) % | |
Incentive-based costs related to acquisitions | (69.1) % | (15.6) % | ||||
Lease expenses related to premises under construction | - | n.m. | - | n.m. | ||
Restructuring costs | - | - | - | - | n.m. | |
Impairment of goodwill and other intangible assets | - | n.m. | (82.7) % | |||
Change in fair value of contingent consideration | 35.9 % | (91.4) % | ||||
Significant items recorded in | ||||||
Amortization of intangible assets | (8.9) % | 1.9 % | ||||
Restructuring costs | - | - | - | - | n.m. | |
Acquisition-related costs | - | - | - | - | (100.0) % | |
Incentive-based costs related to acquisitions | (35.8) % | (2.3) % | ||||
Significant items recorded in Corporate and Other | ||||||
Restructuring costs | - | - | - | - | n.m. | |
Lease expenses related to premises under construction | - | n.m. | - | n.m. | ||
Fair value adjustment of convertible debentures derivative liability | - | n.m. | - | n.m. | ||
Fair value adjustment of non-controlling interest derivative liability | - | (100.0) % | 13.9 % | |||
Development costs | - | (100.0) % | 114.2 % | |||
Total significant items - expenses | 124.5 % | (49.0) % | ||||
Total expenses excluding significant items | (10.6) % | (3.6) % | ||||
Net income before taxes excluding significant items(1) | 139.2 % | 5.8 % | ||||
Income taxes (recovery) – adjusted | n.m. | 56.4 % | ||||
Net income excluding significant items | 76.6 % | (6.7) % | ||||
Significant items impacting net income attributable to common shareholders | ||||||
Non-controlling interests - IFRS | 43.5 % | 21.4 % | ||||
Amortization of equity component of the non-controlling interests in CGWM | 252.3 % | (1.7) % | ||||
Non-controlling interests (adjusted) (1) | 35.3 % | 25.8 % | ||||
Preferred share dividends | - | 4.2 % | ||||
Net income attributable to common shareholders, excluding significant items(1) | 156.1 % | (24.7) % | ||||
Earnings per common share excluding significant items – basic(1) | 100.0 % | (26.4) % | ||||
Earnings per common share excluding significant items – diluted(1) | 114.3 % | (32.2) % | ||||
(1) Figures excluding significant items are non-IFRS measures. See Non-IFRS Measures on page 6. n.m. not meaningful (percentages above 300% are indicated as n.m. |
Diluted earnings per common share ("diluted EPS") is computed using the treasury stock method, giving effect to the exercise of all dilutive elements. The Convertible Preferred Shares issued by
Financial Conditions
Q4/24 vs Q3/24 | Year over year | ||||
Working capital | 852,760 | 719,928 | 18.5 % | 749,571 | 13.8 % |
Total assets | 6,132,465 | 4,884,749 | 25.5 % | 6,302,400 | (2.7) % |
Total liabilities | 4,772,354 | 3,540,298 | 34.8 % | 4,903,763 | (2.7) % |
Non-controlling interests | 364,466 | 350,263 | 4.1 % | 343,998 | 6.0 % |
Total shareholders' equity | 995,645 | 994,188 | 0.2 % | 1,054,639 | (5.6) % |
Common and Preferred Share Dividends:
On
On
On
Non-IFRS Measures
Certain non-IFRS measures, non-IFRS ratios and supplementary financial measures are utilized by the Company as measures of financial performance. Non-IFRS measures, non-IFRS ratios and supplementary financial measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies.
Management believes that these non-IFRS measures, non-IFRS ratios and supplementary financial measures allow for a better evaluation of the operating performance of the Company's business and facilitate meaningful comparison of results in the current period to those in prior periods and future periods. Non-IFRS measures presented in this earnings release include certain figures from our statement of operations that are adjusted to exclude significant items. Although figures that exclude significant items provide useful information by excluding certain items that may not be indicative of the Company'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 the Company's business. Accordingly, these effects should not be ignored in evaluating and analyzing the Company's financial results. Therefore, management believes that the Company's IFRS measures of financial performance and the respective non-IFRS measures should be considered together.
Non-IFRS Measures (Adjusted Figures)
Figures that exclude significant items provide useful information by excluding certain items that may not be indicative of the Company's core operating results. Financial statement items that exclude significant items are non-IFRS measures. To calculate these non-IFRS financial statement items, we exclude certain items from our financial results prepared in accordance with IFRS. The items which have been excluded are referred to herein as significant items. The following is a description of the composition of the non-IFRS measures used in this earnings release (note that some significant items excluded may not be applicable to the calculation
of the non-IFRS measures for each comparative period): (i) revenue excluding significant items, which is composed of revenue per IFRS less any applicable fair value adjustments on certain illiquid or restricted marketable securities as recorded for IFRS reporting purposes but which are excluded for management reporting purposes and are not used by management to assess operating performance; (ii) expenses excluding significant items, which is composed of expenses per IFRS less any applicable amortization of intangible assets acquired in connection with a business combination, acquisition-related expense items, certain incentive-based costs related to the acquisitions and growth initiatives in CGWM
A reconciliation of non-IFRS measures that exclude significant items to the applicable IFRS measures from the audited consolidated financial statements for fiscal 2024 can be found in the table entitled "Summary of results for Q4 fiscal 2024 and fiscal 2024 and selected financial information excluding significant items" in the Management's Discussion & Analysis for the fiscal year ended
Non-IFRS Ratios
Non-IFRS ratios are calculated using the non-IFRS measures defined above. For the periods presented herein, we have used the following non-IFRS ratios: (i) total expenses excluding significant items as a percentage of revenue, which is calculated by dividing expenses excluding significant items by revenue excluding significant items; (ii) earnings per common share excluding significant items, which is calculated by dividing net income attributable to common shareholders excluding significant items by the weighted average number of common shares outstanding (basic); (iii) diluted earnings per common share excluding significant items which is calculated by dividing net income attributable to common shareholders excluding significant items by the weighted average number of common shares outstanding (diluted); and (iv) pre-tax profit margin which is calculated by dividing net income before taxes excluding significant items by revenue excluding significant items.
Supplementary Financial Measures
Client assets are supplementary financial measures that do not have any definitions prescribed under IFRS but do not meet the definition of a non-IFRS measure or non-IFRS ratio. Client assets, which include both assets under management (AUM) and assets under administration (AUA), is a measure that is common to the wealth management business. Client assets is the market value of client assets managed and administered by the Company from which the Company earns commissions and fees. This measure includes funds held in client accounts as well as the aggregate market value of long and short security positions. The Company's method of calculating client assets may differ from the methods used by other companies, and therefore these measures may not be comparable to other companies. Management uses these measures to assess operational performance of the
This earnings release may contain "forward-looking information" as defined under applicable securities laws ("forward-looking statements"). These statements relate to future events or future performance and reflect the Company's expectations, beliefs, plans, estimates, intentions and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts, including statements related to Company's objectives, strategies, business prospects and opportunities, potential future transactions, the timing or completion of purchase loans to employees, the timing of subscriptions by participants in the Partnership, the timing of the repayment of the principal amount owing under the Loan made by the Company to the Partnership or future Board representation and Board roles. Such forward-looking statements reflect management's current beliefs and are based on information currently available to the Company. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", "target", "intend", "could" or the negative of these terms or other comparable terminology. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and a number of factors could cause actual events or results to differ materially from the results discussed in the forward-looking statements.
In evaluating these statements, readers should specifically consider various factors that may cause actual results to differ materially from any forward-looking statement. These factors include but are not limited to: the trading price of the Company's shares; the Company's financial condition and earnings; market and general economic conditions (including slowing economic growth, inflation and rising interest rates); the dynamic nature of the financial services industry; and the risks and uncertainties discussed from time to time in the Company's interim condensed and annual consolidated financial statements, its annual report and its annual information form ("AIF") filed on www.sedarplus.ca as well as the factors discussed in the sections entitled "Risk Management" and "Risk Factors" in the AIF, which include market, liquidity, credit, operational, legal and regulatory risks.
Although the forward-looking statements contained in this press release are based upon assumptions that the Company believes are reasonable, there can be no assurance that actual results will be consistent with these forward-looking statements. The forward-looking statements contained in this press release are 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. Except as may be required by applicable law, the Company does not undertake, and specifically disclaims, any obligation to update or revise any forward-looking statements, whether as a result of new information, further developments or otherwise.
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