GENERATED PRE-TAX EARNINGS OF $0.3 MILLION ON REVENUE OF $41.5 MILLION
“The strength and sustainability of our businesses were evident this quarter - despite a difficult operating environment that featured myriad headwinds including the added uncertainty provided by the ‘Brexit Vote’, our Capital Markets and Wealth Management business segments generated pre-tax profit in second quarter 2016 ,” said Harris Fricker, President and Chief Executive Officer, GMP. “This is reflective of the restructuring initiatives announced in January and demonstrates the considerable operating leverage in our business.”
Commenting further, Mr. Fricker said, “The announcement of our pending acquisition of FirstEnergy is highly impactful for our firm. FirstEnergy has built a coveted franchise that is part of the fabric of Canada’s energy culture and, when combined with our broader platform, provides GMP with an enviable competitive position in the independent dealer space.”
• ROE1 of negative 5.8% compared with negative 4.0%.
• Income before income taxes of $1.5 million compared with income before income taxes of $9.3 million.
• Second quarter 2015 included recognition of $1.8 million in dividends on our preferred share investments in Richardson GMP following a dividend declaration by Richardson GMP.
Cumulative 5-Year Rate Reset Preferred Share, Series B, and $0.2155 per Cumulative Floating Rate Preferred Shares, Series C, each payable on September 30, 2016, to preferred shareholders of record on September 15, 2016.
Richardson GMP's management assesses performance on both a reported and an adjusted basis and considers both bases to be useful in assessing underlying, ongoing business performance. Presenting results on both bases also permits readers to assess the impact of specified items on financial results. Richardson GMP's management uses certain measures to assess the financial performance of Richardson GMP that are not GAAP measures under IFRS. EBITDA and adjusted EBITDA do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers. These Non-GAAP measures should not be considered as alternatives to net income or comparable metrics determined in accordance with IFRS as indicators of Richardson GMP's performance, liquidity, cash flows and profitability. Richardson GMP's management believes adjusting results by excluding the impact of the specified items is more reflective of ongoing financial performance and cash generating capabilities and provides readers with an enhanced understanding of how management views Richardson GMP's core performance. For further information, refer to the "Supplemental Information" section in the Second Quarter 2016 MD&A.
June 30, 2016.