GMP earns $2.88M in Q3, reinstates quarterly dividend
GMP CAPITAL Inc. had revenue of $59.2-million in the third quarter of 2018, up a notable 72 per cent compared with the same period a year ago. Third quarter 2018 net income was $2.9-million and EPS (earnings per share) of two cents, compared with a net loss of $2.8-million and a diluted loss per share of six cents in third quarter 2017. On an adjusted basis, third quarter 2018 net income was $11.3-million, EPS was 13 cents and return on equity was 21.0 per cent.
“We are pleased with our performance in third quarter 2018 as accommodative market conditions for investment banking activity drove revenue growth of 72 per cent. The firm’s enhanced operating leverage allowed us to deliver adjusted net income of $11.3-million and adjusted ROE of 21 per cent. The declaration of a special cash dividend and, as importantly, the reinstatement of a quarterly cash dividend is indicative of GMP’s vastly improved operating performance and positive outlook for the franchise. Additionally, our wealth management business continues to deliver solid profitability while growing client assets,” said Harris Fricker, president and chief executive officer of GMP. Commenting further, Mr. Fricker said: “Leading the way was our strong Canadian capital markets business, which continues to be the main driver of profitability, growing revenue by 186 per cent across multiple sectors. We also remain encouraged that our early leadership position in the financing of emerging opportunities in cannabis and blockchain, has provided the key ingredients for a step change in our non-resource franchise. Third quarter adjusted earnings highlights the earnings potential of our franchise in a more favourable operating environment with contribution from many of our focused industry sectors.” Revenue for the first nine months 2018 was $155.6-million, up 22 per cent compared with the same period last year. GMP recorded net income of $7.5-million and EPS of six cents in first nine months 2018 compared with a net loss of $53.5-million and a diluted loss per share of 82 cents in the first nine months of 2017. The improvement largely reflects a $52.0-million non-cash goodwill impairment charge recorded in the first nine months of 2017 in the company’s capital markets business and stronger revenue generation this year. The first nine months of 2018 also included a $4.1-million (after tax) cost rationalization charge in the company’s capital markets business. On an adjusted basis, net income was $22.6-million in first nine months 2018, generating EPS of 25 cents, compared with net income of $9.1-million and EPS of eight cents in the first nine months of 2017.
(See GMP Table 1 on page 31)
GMP appoints new board member
GMP is pleased to announce the board appointed Julie A. Lassonde as an independent director, effective Sept. 10, 2018.
We seek Safe Harbor.
Erika Flores condensed this news release (firstname.lastname@example.org).
David G Brown, David Caldwell Ferguson, Harris Anthony Fricker, Fiona Louise Macdonald, Eugene Caldwell McBurney, Donald V Solman, Kevin Michael Sullivan, Donald Arthur Wright
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