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GMP Capital Announces Sale of Capital Markets Business

GMP CAPITAL INC. ANNOUNCES SALE OF CAPITAL MARKETS BUSINESS TO STIFEL FINANCIAL CORPORATION

TORONTO, June 17, 2019 – GMP Capital Inc. (“GMP” or the “Corporation”) (TSX: GMP) announced today that it has entered into a definitive agreement (the “Agreement”) to sell substantially all of its capital markets business to Stifel Financial Corp. (“Stifel”) (the “Transaction”) in an all cash transaction.

The entering into of the Agreement follows a comprehensive strategic review process overseen by a committee of GMP’s board of directors (the “GMP Board”) comprised exclusively of independent directors (the "Special Committee"). In its review, the Special Committee considered numerous alternatives and recommended to the GMP Board that the Transaction is in the best interest of the Corporation.

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GMP Announces Election of Directors

TORONTO, ON. (May 2, 2019) – GMP Capital Inc. (GMP) (TSX: GMP or the Company) today announced that the nine nominees listed in the Company’s management information circular (the Circular) dated March 22, 2019, were elected as directors of GMP. The detailed results of the vote for the election of directors held at GMP’s Annual Meeting of Common Shareholders (the Meeting) on Thursday, May 2, 2019, in Toronto, Ontario, are set out below.

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GMP Reports Q1/19 Results

Toronto, May 2, 2019 - GMP Capital Inc. (GMP) (TSX: GMP) today reported a net loss from continuing operations of $22.9 million primarily due to a $28.5 million non-cash goodwill impairment charge in our Capital Markets segment recorded in first quarter 2019. Revenue from continuing operations was $37.5 million in first quarter 2019.  On an adjusted basis1, net income from continuing operations was $6.8 million in first quarter 2019 compared with net income of $8.6 million in first quarter 2018.

On a consolidated basis, GMP recorded a net loss of $15.5 million in first quarter 2019 compared with net income of $4.1 million in first quarter 2018.  The decline in performance was primarily due to the non-cash goodwill impairment charge recorded in first quarter 2019.  Additionally, first quarter 2019 included an $8.3 million non-cash gain relating to reclassification of cumulative foreign currency translation adjustments in connection with the sale of discontinued operations.  On an adjusted basis1, GMP recorded net income of  $14.2 million in first quarter 2019 compared with net income of $7.3 million in first quarter 2018.

“We delivered adjusted earnings from continuing operations of nearly $7 million this quarter despite a challenging business environment for capital raisings in first quarter 2019, which contributed to weaker performance in our underwriting franchise.  Revenue from principal transactions rebounded significantly from the immediately preceding quarter and we grew advisory revenue by 8% year-over-year, driven largely by continued momentum in the cannabis sector.  In Wealth Management, our partners at Richardson GMP reported another solid quarterly performance, increasing net income by 12% this quarter compared with the first quarter last year," said Harris Fricker, President and CEO of GMP.

Commenting further, Fricker said "We also remain encouraged that our efforts on the cost side of the business continue to benefit our bottom line.  In particular, the ratio of employee compensation to revenue is at its lowest level in over a decade.  GMP remains on the right path with strong franchises in both Canadian capital markets and wealth management."

-    First quarter 2019 results affected by non-cash goodwill impairment charge
-  Adjusted net income1 from continuing operations was $6.8 million in first quarter 2019 and adjusted diluted earnings per share from continuing        operations was $0.07
-  Board of Directors approved a quarterly cash dividend of $0.025 per common share

FINANCIAL HIGHLIGHTS

Continuing Operations

First Quarter 2019 vs. First Quarter 2018

•          Revenue of $37.5 million decreased from $47.0 million.
•          Non-cash goodwill impairment charge of $28.5 million recorded in first quarter 2019.
•          Net loss of $22.9 million decreased from net income of $5.4 million.
•          On an adjusted basis1, net income of $6.8 million decreased from $8.6 million.
•          Diluted loss per share of $0.34 decreased from diluted earnings per share (EPS) of $0.06.
•          On an adjusted basis1, EPS of $0.07 decreased from $0.10.
•          Adjusted return on equity (ROE)1 of 12.6% decreased from 18.3%

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GMP to Announce Q1/19 Results and Host AGM on May 2, 2019

TORONTO, ON. (April 10, 2019) – GMP Capital Inc. (GMP) (TSX:GMP) will release its first quarter 2019 financial results and hold its annual general meeting of common shareholders (Annual Meeting) on Thursday, May 2, 2019, in Toronto.  First quarter results are expected to be released at approximately 6:00 a.m. (EST).

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GMP Securities to Host Third Annual Cannabis Conference

TORONTO, ON. (April 8, 2019) – GMP Securities L.P. (GMP Securities), a wholly-owned subsidiary of GMP Capital Inc. (TSX: GMP), today announced it will be hosting its 3rd annual Cannabis Conference on Tuesday, April 16, 2019, at The Ritz-Carlton, Toronto.

The GMP Securities Cannabis Conference will explore current investing trends, industry perspectives on consumer trends and key developments.  This unmissable event includes company presentations, panel discussions and one-on-one meetings with senior management teams.  The conference will also provide the opportunity for key industry participants and institutional investors to network and interact with a diverse group of highly regarded experts, leaders and visionaries from leading public and private cannabis companies. 

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GMP CAPITAL REPORTS NET INCOME FROM CONTINUING OPERATIONS OF $4 MILLION IN FOURTH QUARTER AND $15 MILLION FOR FULL YEAR

•        Earned net income from continuing operations of $3.7 million and diluted earnings per share of $0.03 in fourth quarter 2018

•        On an adjusted basis, fourth quarter 2018 net income from continuing operations was $8.2 million and diluted earnings per share1 was $0.09

•        Fiscal 2018 revenues grew 15%, adjusted net income from continuing operations was $34.8 million and diluted earnings per share1 was $0.40

•        Board of directors approved a quarterly cash dividend of $0.025 per common share

Toronto, March 1, 2019 - GMP Capital Inc. (GMP) (TSX: GMP) today reported net income from continuing operations of $3.7 million and EPS of $0.03 in fourth quarter 2018 compared with net income of $8.0 million and EPS of $0.09 in fourth quarter 2017. Adjusted EPS1 was $0.09 in fourth quarter 2018 compared with $0.13 in the prior year quarter.  Revenue from continuing operations was $38.3 million in fourth quarter 2018.

GMP recorded a net loss from consolidated operations of $5.0 million in fourth quarter 2018 including a net loss of $8.7 million in our U.S. fixed income business, which was classified as a discontinued operation following our agreement to sell to a third party late last year.

“We are pleased to have delivered adjusted EPS of 9 cents in fourth quarter 2018 despite challenging market conditions, which led to negative performance across virtually all asset classes.  Our performance this quarter is a testament to the strength and resiliency of our core Canadian capital market business and the continued profitability and scale of our industry-leading Wealth Management business. Our strategy moving forward is clear: we are focused on Canada.  This is a market we know better than most and where we are consistently top tier and profitable," said Harris Fricker, President and Chief Executive Officer, GMP.

2018 revenue from continuing operations was $177.8 million, up 15% compared with 2017.  GMP recorded net income from continuing operations of $15.2 million and EPS of $0.14 in 2018 compared with a net loss of $44.3 million and a diluted loss per share of $0.70 in 2017.  2017 included a $52.0 million non-cash goodwill impairment charge recorded in our Capital Markets business segment.  On an adjusted basis1 net income was $34.8 million in 2018, generating EPS of $0.40 compared with net income1 of  $21.6 million and EPS of $0.22 in 2017.

Commenting further, Mr. Fricker said, “We are encouraged with both the solid earnings growth we reported in 2018 and considerable strides made toward sharpening the firm's focus on our highly profitable, scalable and core Canadian capital markets and wealth management businesses.  Leading the way was a 46% increase in investment banking revenue with growth from cannabis, blockchain and energy sectors.  Of note, our non-commodities businesses accounted for 70% of total investment banking revenue in 2018.  Heading into 2019, the 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 2018 and the meaning of certain references, this earnings release should be read in conjunction with our audited annual consolidated financial statements as at and for the year ended December 31, 2018 (2018 Annual Financial Statements), our management's discussion and analysis for the year ended December 31, 2018 (2018 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 2018 Annual Financial Statements prepared in accordance with generally accepted accounting principles (GAAP) under International Financial Reporting Standards (IFRS).

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GMP CAPITAL INC TO ANNOUNCE FOURTH QUARTER AND FISCAL 2018 RESULTS

TORONTO, ON. (February 7, 2019) – GMP Capital Inc. (GMP) (TSX: GMP) will release its fourth quarter and fiscal 2018 financial results and host an earnings conference call on Friday, March 1, 2019. Financial results are expected to be released at approximately 6:00 a.m. (ET).

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GMP Sells US Fixed Income Operations to INTL FCSTONE Inc

Toronto, December 11, 2018 - GMP Capital Inc. (GMP) (TSX: GMP) today announced that it entered into a definitive agreement in respect of a transaction that will result in INTL FCStone Inc. acquiring GMP Securities, LLC, GMP’s institutional fixed income trading operations headquartered in New York. GMP Securities, LLC is a SEC-registered Broker-Dealer and FINRA member.

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GMP Reports Q3/18 Results; Declares Special Cash Dividend and Reinstates Regular Quarterly Cash Dividend

Toronto, November 9, 2018 - GMP Capital Inc. (GMP) (TSX: GMP) today reported revenue of $59.2 million in third quarter 2018, up a notable 72% compared with the same period a year ago.   Third quarter 2018 net income was $2.9 million and EPS of $0.02, compared with a net loss of $2.8 million and a diluted loss per share of $0.06 in third quarter 2017.   On an adjusted basis1, third quarter 2018 net income was $11.3 million, EPS was $0.13 and return on equity was 21.0%.

“We are pleased with our performance in third quarter 2018 as accommodative market conditions for investment banking activity drove revenue growth of 72%. The firm's enhanced operating leverage allowed us to deliver adjusted net income of $11.3 million and adjusted ROE of 21%.  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 CEO of GMP.

Commenting further, 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% 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."

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Som Seif Announced as a Featured Speaker at GMP Securities Blockchain Conference

Toronto, October 31, 2018 - GMP Securities L.P. (GMP Securities), a wholly-owned subsidiary of GMP Capital Inc. (TSX: GMP), today announced that Som Seif, Founder and CEO of Purpose Investments, as a featured speaker as part of an exciting line-up of digital visionaries at the GMP Securities Blockchain Conference to be held on November 13, 2018 at The Ritz-Carlton, Toronto. 

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