GMP earns $2.88M in Q3, re­in­states quar­terly div­i­dend

Stockwatch Daily - - FINANCE - Mr. Har­ris Fricker re­ports

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 (

David G Brown, David Cald­well Fer­gu­son, Har­ris An­thony Fricker, Fiona Louise Mac­don­ald, Eu­gene Cald­well McBur­ney, Don­ald V Sol­man, Kevin Michael Sul­li­van, Don­ald Arthur Wright

(GMP) Shares: 75,459,583

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