GMP CAPITAL INC. REPORTS FOURTH QUARTER AND YEAR-END 2017 RESULTS
• Earned net income of $6.4 million and diluted earnings per share of $0.07 in fourth quarter 2017, including meaningful contribution from the blockchain and cryptocurrencies and cannabis franchises
• On an adjusted basis, fourth quarter 2017 net income was $9.7 million and diluted earnings per share1 of $0.11
• Board of directors declared a special cash dividend of $0.10 per common share, payable on April 2, 2018, to common shareholders of record on March 15, 2018.
Toronto, March 2, 2018 - GMP Capital Inc. (GMP) (TSX: GMP) today reported revenue of $59.3 million in fourth quarter 2017 representing a 9% decrease relative to the same period a year ago. GMP recorded net income of $6.4 million and EPS of $0.07 in fourth quarter 2017 compared with net income of $3.2 million and diluted EPS of $0.03 in fourth quarter 2016. Adjusted EPS1 was $0.11 in fourth quarter 2017 compared with $0.07 in the prior year quarter.
“The progress we made toward diversifying our business over the past year is best evidenced by a strong fourth quarter 2017. Impressive growth in our underwriting franchise was driven by robust client activity in the burgeoning blockchain and cannabis sectors," said Harris Fricker, President and Chief Executive Officer, GMP. “Additionally, the declaration of a special dividend by our Board is indicative of the improvement in GMP's operational performance in 2017 and our outlook for the first half of 2018. We also remain encouraged by the ongoing financial strength of our industry-leading Wealth Management business."
Full year revenue was $186.8 million in 2017, down 5% compared with 2016. GMP recorded a net loss of $47.1 million and a diluted loss per share of $0.74 in 2017, primarily due to the $52.0 million non-cash goodwill impairment charge recorded in second quarter 2017. This compared with a net loss of $11.6 million and a diluted loss per share of $0.24 in 2016. On an adjusted basis1 net income was $18.8 million in 2017, generating EPS of $0.18 compared with net income1 of $5.5 million and EPS of $0.01 in 2016.
Commenting further, Mr. Fricker said, “While not without challenges, our improved adjusted net income performance in 2017 demonstrates the powerful operating leverage of an operationally leaner, more focused and better diversified franchise. As promised, we made considerable strides toward diversifying our business, with our non-commodities businesses accounting for half of total investment banking revenue in 2017. GMP established itself as a leader in the emerging blockchain and cannabis growth sectors, as investor interest in these sectors surged in 2017. The real opportunity for our firm is continuing to do what we do best, namely helping small- to mid-cap companies efficiently access the requisite capital needed to grow their business."
For further information about GMP Capital Inc., our results for fourth quarter and year-end 2017 and the meaning of certain references, this earnings release should be read in conjunction with our annual financial statements as at and for the year ended December 31, 2017 (2017 Annual Financial Statements), our management's discussion and analysis for the year ended December 31, 2017 (2017 Annual MD&A) and our annual information form, which can be accessed on our website at gmpcapital.com and on SEDAR at sedar.com. Unless otherwise indicated, all dollar amounts are expressed in Canadian dollars and have been taken from our 2017 Annual Financial Statements prepared in accordance with generally accepted accounting principles (GAAP) under International Financial Reporting Standards (IFRS).
TORONTO, ON. (February 5, 2018) – GMP Capital Inc. (GMP) (TSX: GMP) will release its fourth quarter and fiscal 2017 financial results and host an earnings conference call on Friday, March 2, 2018. Financial results are expected to be released at approximately 6:00 a.m. (ET).
GMP SECURITIES TO HOST INAUGURAL BLOCKCHAIN CONFERENCE AND ANNOUNCES MIKE NOVOGRATZ AS KEYNOTE SPEAKER
Toronto, November 28, 2017 - GMP Securities L.P. (GMP or the Company), a wholly-owned subsidiary of GMP Capital Inc. (TSX: GMP), today announced it will be hosting the inaugural GMP Securities Blockchain Technology Conference on December 7, 2017 at the Royal York Hotel in Toronto.
The Company is also pleased to confirm Michael Novogratz, Chief Executive Officer of Galaxy Investment Partners, as keynote speaker. Mr. Novogratz, an internationally recognized investor in blockchain, cryptocurrencies and initial coin offerings, will share his expert insights, first-hand experience as well as his outlook for blockchain and cryptocurrencies. In the attached video, Michael discusses his views on cryptocurrencies with Bloomberg https://www.youtube.com/watch?v=DozrRY2NENU.
Toronto, November 20, 2017 - GMP Capital Inc. (GMP or the Company) (TSX: GMP) today announced Doug Bell, Vice Chairman, Investment Banking and member of the Company’s Executive Committee, is leaving the company after eight years with GMP. Mr. Bell is establishing a principal business in the mining sector.
Toronto, November 3, 2017 - GMP Capital Inc. (GMP) (TSX: GMP) today reported revenue of $34.3 million in third quarter 2017, down 21% compared with the same period a year ago. Third quarter 2017 net loss was $2.8 million and diluted loss per share was $0.06, compared with a net loss of $10.6 million and diluted loss per share of $0.18 in third quarter 2016. On an adjusted basis1, third quarter 2017 net income was $0.5 million and diluted loss per share was $0.01.
“Business activity in the quarter remained stubbornly low. The ongoing malaise in commodities and the low level of activity in small- to mid-cap names in general made for a daunting revenue environment and a disappointing quarter," said Harris Fricker, President and CEO of GMP.
Commenting further, Mr. Fricker said, "Despite the challenging conditions in the quarter, there were a couple bright spots including the strength demonstrated by our Canadian and international advisory franchises and the ongoing performance of our Wealth Management business. Further we note that capital markets activity has been more robust in the fourth quarter with a particular focus in our blockchain practice.”
Third Quarter 2017 vs. Third Quarter 2016
• Revenue of $34.3 million decreased from $43.5 million.
• Net loss of $2.8 million improved from a net loss of $10.6 million.
• On an adjusted basis1, net income of $0.5 million decreased from $2.2 million.
• Diluted loss per share of $0.06 increased from a diluted loss per share of $0.18.
• On an adjusted basis1, diluted loss per share of $0.01 decreased from earnings per share (EPS) of $0.01.
First Nine Months 2017 vs. First Nine Months 2016
• Revenue of $127.6 million decreased from $130.9 million.
• Non-cash goodwill impairment charge of $44.3 million (after-tax) and deferred-tax asset write-down of $7.7 million recorded in second quarter 2017.
• Net loss of $53.5 million increased from a net loss of $14.9 million.
• On an adjusted basis1, net income of $9.1 million increased from a net loss of $1.5 million.
• Diluted loss per share of $0.82 decreased from a diluted loss per share of $0.28.
• On an adjusted basis1, EPS of $0.08 increased from a diluted loss per share of $0.08.
1. Considered to be a non-GAAP financial measure. This measure does not have any standardized meaning prescribed by generally accepted accounting principles (GAAP) under IFRS and is therefore unlikely to be comparable to similar measures presented by other issuers. This data should be read in conjunction with the “Non-GAAP Measures” section at the end of this press release and the “Presentation of Financial Information and Non-GAAP Measures” section in the Third Quarter 2017 MD&A.
GMP Capital Inc. (GMP) (TSX: GMP) today announced that Richardson GMP Limited (Richardson GMP) has entered into a four-year $80 million credit facility agreement with a syndicate of chartered banks. Richardson GMP intends to use the initial proceeds from this facility to refinance its existing long-term indebtedness. The remainder of the proceeds will be used to redeem a substantial portion of its Class B Preference Shares, at par, for an aggregate cash redemption amount of $45 million (the Redemption), including all declared and unpaid dividends, and to repay fully its $5 million subordinated loan facility made available by GMP. The Redemption will be allocated equally between GMP and James Richardson & Sons, Limited. It is anticipated that GMP will receive approximately $28 million in cash.
TORONTO, ON. (October 4, 2017) – GMP Capital Inc. (GMP) (TSX: GMP) will release its third quarter 2017 financial results on Friday, November 3, 2017. Third quarter results are expected to be released at approximately 6:00 a.m. (EST).
Toronto, September 27, 2017 - GMP Capital Inc. (GMP) (TSX: GMP) today announced that its wholly owned subsidiary, GMP Securities L.P. (GMP Securities), launched a dedicated blockchain technology practice to help corporate clients and investors capitalize on the transformative and disruptive potential of the blockchain and the emerging digital currency space. The new team will be comprised of investment banking and research professionals. This expansion into the blockchain ecosystem is reflective of the firm’s longstanding commitment to the technology space and the belief this technology holds the potential to be a significant disrupter across multiple industries.
• Revenues increased 7% compared with second quarter 2016
• Second quarter 2017 results affected by non-cash impairment charges
• On an adjusted basis1, net income was $1.6 million in second quarter 2017 or $0.01 per diluted share
• Purchased 1.5 million common shares under 2017 NCIB during second quarter 2017 For further information about GMP
Capital Inc., our results for second quarter 2017 and the meaning of certain references, this earnings release should be read in conjunction with our unaudited interim condensed consolidated financial statements as at and for the three and six months ended June 30, 2017 (Second Quarter 2017 Financial Statements) and our management's discussion and analysis for the three and six months ended June 30, 2017 (Second Quarter 2017 MD&A), which can be accessed on our website at gmpcapital.com and on SEDAR at sedar.com. Unless otherwise indicated, all dollar amounts are expressed in Canadian dollars and have been taken from our Second Quarter 2017 Financial Statements prepared in accordance with International Financial Reporting Standards (IFRS).
TORONTO, ON. (July 17, 2017) – GMP Capital Inc. (GMP) (TSX: GMP) will release its second quarter 2017 financial results on Friday, August 4, 2017. Second quarter results are expected to be released at approximately 6:00 a.m. (EST).