(All dollar amounts are settled in Canadian dollars unless instead indicated) 1
TORONTO, Feb. 8, 2012 /PRNewswire/ – During the third entertain of mercantile 2012, the entertain finished December 31, 2011, Canaccord Financial Inc. (Canaccord, TSX: CF, AIM: CF.) generated $147.9 million in income and available net income of $2.5 million, or $0.01 per familiar share. Restructuring and acquisition-related responsibility items(Significant Items)totalling $10.7 million, or $8.1 million after tax, were incurred during the quarter,including $6.3 million of restructuring costs, $2.7 million connected to the draft merger of Collins Stewart Hawkpoint plc (Collins Stewart Hawkpoint), and $1.7 million of amortization of unsubstantial assets. Excluding Significant Items, a non-IFRS measure, Canaccord available net income of $10.6 million or $0.11 per widely separated familiar share.(2)
“The vital investments you undertook to spread our universal capabilities and complement Canaccord’s long tenure opening highlighted our mercantile third quarter, with our voiced merger of Collins Stewart Hawkpoint, and the shutting of our merger of a 50% fascination in BGF Equities,” mentioned Paul Reynolds, President and CEO of Canaccord Financial Inc. “Combined, these expansion initiatives will increase critical scale to our UK and US businesses, settle key operations in Singapore, Hong Kong, Australia and Europe, and supply a strong, high-margin UK Wealth Management business to our universal platform.”
Mr. Reynolds continued, “We’re quite gratified with the record instructive income our Merger, Acquisition and Restructuring use generated during the quarter, due in segment to our flourishing participation in Middle East and our burly corporate interaction in Canada. As universal economic and marketplace challenges go on to hold back funds raising activities, you see the expansion of our instructive business as a key chance to cancel out marked down wake up in a few of Canaccord’s other business segments, whilst you most appropriate location our firm is to contingent marketplace recovery.”
Third entertain of mercantile 2012 vs. third entertain of mercantile 2011
Revenue of $147.9 million, down 42% or $106.9 million from $254.8 million
Expenses of $142.8 million, down 26% or $50.1 million from $192.9 million
Net income of $2.5 million compared to net income of $43.0 million
Return on familiar equity (ROE) of 0.6%, down from 24.3% (2)(3)
Diluted gain per familiar share (EPS) of $0.01 compared to widely separated EPS of $0.51
Excluding poignant things (2)(4)
Expenses of $132.1 million, down 31% or $58.1 million from $190.2 million
Net income of $10.6 million compared to net income of $45.6 million
ROE of 4.6%, down from 25.0% (2)(3)
Diluted EPS of $0.11 compared to widely separated EPS of $0.55 in the third entertain of 2011
Third entertain of mercantile 2012 vs. second entertain of mercantile 2012
Revenue of $147.9 million, up 24% or $28.4 million from $119.5 million
Expenses of $142.8 million, up 13% or $16.4 million from $126.4 million
Net income of $2.5 million compared to a net loss of $5.3 million
ROE of 0.6%, up from (2.8)%(2)(3)
Diluted EPS of $0.01 compared to widely separated loss per familiar share of $0.09 in the second entertain of 2012
Excluding poignant things (2)(4)
Expenses of $132.1 million, up 8% or $9.6 million from $122.5 million
Net income of $10.6 million compared to a net loss of $1.7 million
ROE of 4.6%, up from (0.9)% (2)(3)
Diluted EPS of $0.11 compared to widely separated loss per familiar share of $0.05 in the second entertain of 2012
Year-to-date mercantile 2012 vs. year-to-date mercantile 2011
(Nine months finished December 31, 2011 vs. 9 months finished December 31, 2010)
Revenue of $427.2 million, down 23% or $128.8 million from $556.0 million
Expenses of $413.3 million, down 12% or $58.6 million from $471.9 million
Net income of $10.4 million compared to net income of $58.4 million
ROE of 1.3%, down from 11.4%(2)(3)
Diluted EPS of $0.09 compared to widely separated EPS of $0.72 in the year to date mercantile 2011
Excluding poignant things (2)(4)
Expenses of $397.7 million, down $57.2 million from $454.9 million
Net income of $23.1 million compared to net income of $71.9 million
ROE of 3.4%, down from 14.1% (2)(3)
Diluted EPS of $0.23 compared to widely separated EPS of $0.89 in the year to date mercantile 2011
Financial condition at finish of third entertain 2012 vs. third entertain 2011
Cash and money equivalents change of $700.9 million, down $12.2 million from $713.1 million
Working funds of $471.9 million, up $100.4 million from $371.5 million
Total shareholders’ equity of $852.3 million, up $127.6 million from $724.7 million
Book worth per widely separated familiar share is to time finish was $8.54, up 1.4% or $0.11 from $8.43(2)
On February 8, 2012, the Board of Directors granted a quarterly division of $0.10 per familiar share on credit on Mar 15, 2012 with a record date of Mar 2, 2012
On February 8, 2012, the Board of Directors moreover granted a money division of $0.34375 per Series A Preferred Share on credit on April 2, 2012 with a record date of Mar 16, 2012
SUMMARY OF OPERATIONS
On November 1, 2011, Canaccord Financial Inc. closed its merger of a 50% fascination in BGF Equities (BGF). The total care paid byCanaccord is to 50% fascination inBGF totalledAUD$40.2 million [C$42.2 million]. Subsequent to the closing, BGF was rebranded as Canaccord BGF. The 50% fascination was acquired by the buy of shares from established existing shareholders and the buy of book shares as follows:
AUD$14.7 million is to buy of existingBGF Equities shares, essentially from pacifist non-executive shareholders
AUD$5.5 million(5)inCanaccord familiar shares (the Consideration Shares) released to key management team of BGF
AUD$20.0million for thesubscription of book shares inBGF
On December 15, 2011, Canaccord Financial Inc. voiced that it had done a grave offer to pick up 100% of the equity of Collins Stewart Hawkpoint (LSE: CSHP.L – News ) for a cost of 0.96 per CSHP-LN familiar share
The draft merger will significantly blossom the scale of Canaccord’s funds markets operations in the UK and US, and will spread the Company’s operations in to Singapore. The contract will moreover supply Canaccord with a burly UK and European riches management business.
It is expected that the merger will be implemented by way of a court-sanctioned intrigue of understanding beneath the UK Companies Act , that requires consent from Collins Stewart Hawkpoint shareholders.
Subject toCollins Stewart Hawkpoint shareholder consent and obtaining grave clearances from the UK Financial Services Authority, the Monetary Authority of Singapore and established other regulatory authorities, Canaccord believes justice hearings to authorize the intrigue and associated matterswill happen on Mar 16, 2012 and Mar 21, 2012, and the merger will shut (“the intrigue will turn effective”) at 8:00 amLondon time on Mar 22, 2012.Further announcements will be done ifthere are changes to thesedates.
During the mercantile third quarter, Canaccord Financial Inc. repurchased and cancelled 650,000 of its familiar shares beneath the conditions of its normal march issuer bid (NCIB). 1,350,000 shares sojourn available for repurchase beneath the NCIB.
Capital Markets
Canaccord Genuity led or co-led 20 exchange globally, raising total deduction of $324.1 million(6) during mercantile Q3/12
Canaccord Genuity participated in 77 exchange globally, raising total deduction of $1.2 billion(6) during mercantile Q3/12
During mercantile Q3/12, Canaccord Genuity led or co-led the subsequent to transactions:
 Dui Process, Clear Your Drunk Driving Record.Learn to clear your DUI RecordSimple Step-by-Step Actions You Can Take Today To Clear Your DUI Record, Get Your Drivers License Back, and Save a Ton of Money, No Matter What State You’re Located In! Backed by a mountain of legal research- and proven results for thousands of users. DUI Process Works. Guarantee Read More: Visit Publisher Site |
C$69.0 million for Artis Real Estate Investment Trust on the TSX
46.5 million for Rockhopper Exploration PLC on AIM
C$46.0 million for Carpathian Gold Inc. on the TSX
C$46.0 million for Huntingdon Real Estate Investment Trust on the TSX
US$43.4 million for NewLink Genetics Corp. on NASDAQ
US$40.1 million for Metminco Ltd. on AIM
C$34.3 million for Amica Mature Lifestyles Inc. on the TSX
C$33.4 million for Premier Gold Mines Limited on the TSX
Canaccord Genuity generated record instructive revenues of $38.5 million during mercantile Q3/12, an increase of 53% compared to the same entertain final year
During mercantile Q3/12, Canaccord Genuity suggested on the subsequent to MA and instructive transactions:
Daylight Energy on its merger by Sinopec International Petroleum Exploration and Production Corporation
Second Lien Noteholders of OPTI Canada Inc.with apply oneself to restructuring of debtand saleof the company
Zarlink Semiconductor Inc. with apply oneself to the antagonistic bid and contingent merger by Microsemi Corporation
Labopharm Inc.on its merger by Paladin Labs Inc.
Grayd Resource Corporationon its merger by Agnico-Eagle Mines Ltd.
Hathor Exploration Limited on its merger by Rio Tinto Ltd.
New Gold Inc. on its merger of Silver Quest Resources Ltd.
Wealth Management
Canaccord Wealth Management available a net loss of $0.9 million before taxes in Q3/12
Assets beneath administration department were $14.4 billion, down 2% from $14.6 billion at the finish of Q2/12 and down 10% from $16.0 billion at the finish of Q3/11(2)
Assets beneath management were $607 million, up 6% from $574 million at the finish of Q2/12 and up 18% from $514 million at the finish of Q3/11 (2)
As at December 31, 2011, Canaccord Wealth Management had 278 Advisory Teams(7), an increase of 6 from 272 Advisory Teams as of December 31, 2010 and an increase of 7 from 271 Advisory Teams as of September 30, 2011
During the third entertain of Canaccord’s mercantile year, the Independent Wealth Management (IWM) stage updated 3 new branches: Summerland, British Columbia; Trail, British Columbia; and Brampton, Ontario
Canaccord Wealth Management right away has 35 branches opposite Canada, inclusive 23 working on the IWM platform
Non-IFRS Measures
The non-International Financial Reporting Standards (IFRS) measures presented include properties beneath administration, properties beneath management, book worth per widely separated familiar share, lapse on familiar equity and figures that leave out poignant items. Significant things include restructuring expenses and acquisition-related responsibility items, that include expenses recognized in connection to both potential and completed acquisitions. Management believes that these non-IFRS measures will enable for a improved analysis of the working opening of Canaccord’s business and make easy meaningful more aged of results in the stream time to those in previous durations and future periods. Figures that leave out poignant things supply utilitarian data by on the contrary established things that may not be demonstrative of Canaccord’s core working results. A reduction of utilizing these figures that leave out poignant things is that the IFRS accounting belongings of these things do in fact simulate the underlying financial results of Canaccord’s business; thus, these belongings should not be abandoned in evaluating and analyzing Canaccord’s financial results. Therefore, management believes that Canaccord’s IFRS measures of financial opening and the particular non-IFRS measures should be deliberate together.
n.m.: not meaningful
TO OUR SHAREHOLDERS:
The third entertain of mercantile 2012 was a time of expansion for Canaccord Financial. We voiced the transformative merger of Collins Stewart Hawkpoint plc to blossom our operations in the UK, Europe, the US and Singapore. We closed our merger of a 50% fascination in BGF Equities to settle operations in Australia and Hong Kong. And you leveraged the stretched MA and restructuring capabilities you gained by our merger of Genuity Capital Markets in May 2010 to accomplish record instructive income this quarter.
Over the final few years, we’ve set out to turn a earlier global, growth-focused investment bank. And we’re creation poignant progress to broach on that goal. The marketplace dislocation and the stream economic mood have supposing a few challenges for our business over the partial term. However, they have moreover supposing us with well-developed opportunities to takeover strategically critical properties that you think will complement the long tenure worth and opening of our company.
The steady, repeated income generated by Collins Stewart’s riches management business will complement the fortitude of our earnings, whilst its poignant on-and-offshore operations will significantly blossom our properties beneath administration. Our expansion in to Europe, Australia, Singapore and Hong Kong provides us with critical access to many key markets where you see opportunities to precedence our capabilities and spread our customer base, whilst moreover diversifying our income streams by a flourishing number of geographic markets. And as our Asia-Pacific plan continues to take shape, we’re assured Canaccord will come out as a heading investment bank for resource companies and investors in that zone – a vital sector for many Asian economies and a interdependent expansion to our well-regarded resource attention ability base.
We’re office building a business to encounter the elaborating needs of our clients, and a firm that can adjust to varying marketplace opportunities to takeover long-term worth for our shareholders. Furthermore, we’re selecting to deposit strategically in corporate development actions that can supply benefits to many tools of our business.
Our customers are increasingly expressing an fascination in cross-border activities. Our expanding MA and restructuring use has never been more active. And we’ve created a strong, gradually more universal tube of business. All are key indicators the investments we’ve done in the Company the final several years are office building shareholder value. Even more, they are examples of the opportunities you see for Canaccord in the years forward and reasons we’re vehement about the future of our business.
QUARTERLY PERFORMANCE
During Canaccord’s mercantile third entertain of 2012, the Company generated $147.9 million in revenue, an increase of 24% from the previous quarter, but down 42% from the record income you generated in the same entertain final year, when marketplace wake up was significantly more pronounced. Even so, the record instructive income generated by our universal MA team this entertain supposing a substantial grant to Canaccord’s performance, and helped to negate marked down business wake up gifted in other segments of our company.
As remarkable final quarter, tough decisions to lower staffing levels in established geographies and squash our management make up were implemented during Q3/12. $6.3 million of pre-tax restructuring charges associated with these initiatives were requisitioned during the quarter. While decisions similar to these are never easy, you think they were necessary to improved enter into our resources with our stream economic mood and most appropriate muster funds in areas you see the most chance in.
Investments we’re creation to significantly intensify our universal operations and complement the long tenure opening of our firm were moreover apparent in this quarter’s results. $4.5 million of pre-tax acquisition-related expenses were requisitioned during the quarter, inclusive $2.7 million is to draft merger of Collins Stewart Hawkpoint.
Despite the tough marketplace mood our attention continues to say with, Canaccord achieved comparatively well. Excluding the restructuring and acquisition-related responsibility things remarkable above, net income is to third entertain of mercantile 2012 was $10.6 million, or $0.11 per widely separated familiar share. Including these responsibility items, on an IFRS basis, net income is to entertain was $2.5 million, or $0.01 per widely separated familiar share.
We go on to sustain a really burly change sheet, finale the entertain with $700.9 million of money and money equivalents and $471.9 million in working capital. The Company is really well capitalized to encounter our functional needs; though, to make easy our imminent merger of Collins Stewart Hawkpoint, you feel safe a $150 million credit trickery in December, that will be repayable 180 days after it is initial drawn upon. We were moreover really active in share buybacks during the quarter, purchasing 650,000 CF familiar shares from the marketplace that were subsequently cancelled. 1,350,000 familiar shares sojourn available for repurchase beneath our stream normal march issuer bid (NCIB) arrangement.
CANACCORD GENUITY
Record instructive income was a key motorist of Canaccord Genuity’s opening this quarter, that helped to cancel out slower investment promissory note and trade activity. At $38.5 million, instructive income was 78% aloft than final entertain and 53% aloft than the same entertain final year. Much of the instructive business generated during mercantile Q3/12 was achieved by cross-border exchange — highlighting the strength of our universal MA capabilities and underscoring the potential you think exists by expanding our instructive business in to Europe by our merger of Collins Stewart Hawkpoint.
Canaccord Genuity suggested on 7 MA and restructuring exchange that closed during the quarter. Of these transactions, two especially demonstrated the significance of our flourishing Asian instructive use and supposing poignant fees to our business. Canaccord suggested Daylight Energy Ltd. on its $2.2 billion merger by Sinopec International Petroleum Exploration, together with the Second Lien Noteholders of OPTI Canada with apply oneself to the restructuring and sale of that company.
Ongoing economic and marketplace unstable continues to draw towards on universal funds raising activities. This, amalgamated with lower trade volumes on a few of the key exchanges you run on, affected the on the whole results of our funds markets division this quarter. Globally, Canaccord Genuity generated $93.6 million in revenue, up 35% from the previous quarter, but down significantly from the record income generated by the division in the same entertain of final year.
Despite the severe marketplace environment, Canaccord Genuity led 20 exchange during the quarter, raising $324 million for clients, and participated in 77 exchange globally that lifted $1.2 billion. Our tube of exchange waste burly opposite all our geographies, and you design funds raising actions will spring back when economic concerns and doubt connected to the European debt predicament subside.
During the mercantile third quarter, you were moreover really gratified to welcome new colleagues in Australia and Hong Kong, by the merger of a 50% fascination in BGF Equities – right away well known as Canaccord BGF. Contributions from this business are right away being available on a entirely consolidated basement and are attributable to Canaccord Genuity. While still really early in our shared business strategy, we’re already saying positive indications from our operations in Australia and Hong Kong.
CANACCORD WEALTH MANAGEMENT
Prolonged marketplace sensitivity and prudent financier feeling one after another to start the opening of Canaccord Wealth Management. Revenue is to third entertain was $44.6 million, down 6% from final entertain and 35% from the same entertain final year.
Ongoing efforts to upgrade the effectiveness of the business have helped to lower the break-even indicate of the division; however, expansion and recruitment actions did repercussions a few responsibility lines. During the mercantile third entertain Canaccord Wealth Management welcomed 3 new IWM branches: Trail and Summerland, British Columbia, and Brampton, Ontario. This expansion activity, amalgamated with recruiting efforts during the period, increased the number of Advisory Teams by seven, finale the entertain with 278 Advisory Teams opposite Canada.
Expenses is to division during Q3/12 were $37.2 million, a slight lessen from the previous quarter, but 28% lower than the same time final year. After responsibility allocations, Canaccord Wealth Management available a tiny pre-tax loss of $0.9 million during the mercantile third quarter.
As a positive denote of expansion in our optional accounts platform, properties beneath management one after another to grow, finale the entertain at $607 million – an increase of 6% from the finish of the second entertain and 18% compared to the same entertain final year. Assets beneath administration department were $14.4 billion at December 31, 2011, down roughly 2% from the finish of final entertain and 10% compared to the same time final year.
LOOKING FORWARD
As you pierce forward with the merger and formation of Collins Stewart Hawkpoint, we’re increasingly more assured that our shared enlightenment and values will supply for a seamless combination. The Collins Stewart Hawkpoint shareholder opinion to approve the contract takes place on February 9, 2012. Assuming you take consent from their shareholders and from all germane regulators, you anticipate shutting will happen in late March.
When our amalgamated business emerges, Canaccord will be improved positioned is to contingent marketplace liberation than ever before. We’ll benefit from the strong, repeated fee-based income from a high-margin riches management business in the UK. We’ll precedence our stretched instructive capabilities in the UK and Europe to increase worth to new and established corporate clients. We’ll blossom our Middle East participation by a strategically critical Singapore office with inventory capabilities. And we’ll mix the most appropriate funds markets professionals on one back-office platform.
Most importantly, we’ll see our business repositioned in the minds of our customers and inside of the aggressive landscape — as a formidable, eccentric contestant to many incomparable investment banks in the UK and the US.
We look forward to welcoming new colleagues and offices from Collins Stewart Hawkpoint to Canaccord’s universal stage in the next few months. I’m convinced our amalgamated capabilities, shared corporate interaction and pooled sector skill will produce poignant worth for our customers and shareholders in the years ahead.
Paul D. Reynolds,
President CEO
Canaccord Financial Inc.
ACCESS TO QUARTERLY RESULTS INFORMATION
Interested investors, the media and others may examination this quarterly gain let go and additional financial data at .
CONFERENCE CALL AND WEBCAST PRESENTATION
Interested parties are invited to attend to Canaccord’s third entertain mercantile 2012 results discussion call with analysts and institutional investors, around a live webcast or a fee giveaway number. The discussion call is scheduled for Wednesday, February 8, 2012, at 2:00 p.m. (Pacific Time), 5:00 p.m. (Eastern Time), 10:00 p.m. (UK Time), and at 6:00 a.m. (China Standard Time), and 9:00 a.m. (Australia EDT Time) on Thursday, February 9, 2012. At that time, senior management team will criticism on the results is to third entertain of the mercantile 2012 year and reply to questions from analysts and institutional investors.
The discussion call may be accessed live and archived on a listen-only basement around the Internet at: www.canaccordfinancial.com/EN/NewsEvents/Pages/Events.aspx
Analysts and institutional investors can call in around write at:
647-427-7450 (within Toronto)
1-888-231-8191 (toll giveaway outward Toronto)
0-800-051-7107 (toll giveaway from the UK)
10-800-714-1191 (toll giveaway from Northern China)
10-800-140-1195 (toll giveaway from Southern China)
1-800-287-011 (toll giveaway from Australia)
Please solicit to experience in Canaccord Financial’s Q3/12 gain call.
A replay of the discussion call may be accessed after 5:00 p.m. (Pacific Time), 8:00 p.m. (Eastern Time) on February 8, 2012, and after 1:00 a.m. (UK Time), 9:00 a.m. (China Standard Time) and 12:00 p.m. (Australia EDT Time) on February 9, 2012 until Mar 24, 2012 at 416-849-0833 or 1-855-859-2056 by entering passcode 44141412 followed by the bruise (#) sign.
ABOUT CANACCORD FINANCIAL INC.
Through its principal subsidiaries, Canaccord Financial Inc. is a heading independent, full-service financial services firm, with operations in two principal segments of the bonds industry: riches management and universal funds markets. Since its investiture in 1950, Canaccord has been driven by an invariable undertaking to office building durability customer relationships. We accomplish this by generating worth for our individual, institutional and corporate customers by thorough investment solutions, brokerage services and investment promissory note services. Canaccord has 53 offices worldwide, inclusive 37 Wealth Management offices located opposite Canada. Canaccord Genuity, the general funds markets division, operates in Canada, the US, the UK, China, Hong Kong, Australia and Barbados.
Canaccord Financial Inc. is publicly traded beneath the pitch CF on the TSX and the pitch CF. on AIM, a marketplace operated by the London Stock Exchange. Canaccord’s Series A Preferred Shares are listed on the TSX beneath the pitch CF.PR.A.
1 As compulsory by the Canadian Accounting Standards Board (AcSB), the Company adopted International Financial Reporting Standards (IFRS) efficient April 1, 2011. All financial data supposing for mercantile 2012 is in accommodations with IFRS, and all analogous financial data is to 4 buliding of mercantile 2011 has been restated and presented in accommodations with IFRS.
2 See Non-IFRS Measures.
3 ROE is presented on an annualized basis. ROE is to time is distributed by dividing the annualized net income (loss) available to familiar shareholders is to time over the median familiar shareholders’ equity is to period. See Non-IFRS Measures.
4 Significant things include restructuring expenses and acquisition-related responsibility things as discussed beneath Non-IFRS Measures.
5 A total of 623,796 Consideration Shares were issued, distributed on the basement of Canaccord’s volume-weighted median trade cost on the Toronto Stock Exchange for a time of 20 uninterrupted trade days finale on the third trade day before closing. Using this way of valuation, the shares were valued at AUD$5.3 million.
6 Source: FP Infomart and Company Information
7 Advisory Teams are routinely comprised of one or more Investment Advisors (IAs) and their assistants and associates, who together succeed a shared set of customer accounts. Advisory Teams that are led by, or usually include,an IA who has been protected for less than 3 years are not enclosed in ourAdvisory Team count, as it typically takesa new IA roughly 3 years to erect an average-sized book of business.
|
||||||
|
|
||||||
