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GMP Announces Second Quarter 2019 Results

Toronto, August 9, 2019 - GMP Capital Inc. (GMP) (TSX: GMP) today reported a net loss from continuing operations of $3.8 million and revenue from continuing operations of $26.5 million in second quarter 2019.  On an adjusted basis1, net loss from continuing operations was $0.6 million in second quarter 2019 compared with net income of $5.0 million in second quarter 2018.


- On August 6, 2019, GMP's shareholders overwhelmingly approved the sale of substantially all of GMP's capital  markets business to Stifel Financial Corp. (the Sale Transaction) and the reduction of stated capital to permit a one-time return of capital distribution in the amount of $0.275 per common share

- Upon closing of the Sale Transaction, GMP intends to redeploy considerable capital toward accelerating the growth of its wealth management business

- The Board of Directors appointed Kish Kapoor as Interim President and CEO of GMP Capital Inc.

- Harris Fricker will continue as CEO of the Capital Markets business until closing of the Sale Transaction

- Board of Directors approved a quarterly cash dividend of $0.025 per common share

FINANCIAL HIGHLIGHTS FROM CONTINUING OPERATIONS

SECOND QUARTER 2019 vs SECOND QUARTER 2018

•          Revenue of $26.5 million decreased from $37.5 million.

•          Net loss of $3.8 million decreased from net income of $1.5 million.

•          On an adjusted basis1, net loss of $0.6 million decreased from net income of $5.0 million.

•          Diluted loss per share of $0.07 decreased from diluted earnings per share (EPS) of $0.01.

•          On an adjusted basis1, diluted loss per share of $0.02 decreased from EPS of $0.06. 

FIRST HALF 2019 vs FIRST HALF 2018

•          Revenue of $64.0 million decreased from $84.5 million.

•          Non-cash goodwill impairment charge of $28.5 million recorded in first quarter 2019.

•          Net loss of $26.7 million decreased from net income of $6.8 million.

•          On an adjusted basis1, net income of $6.2 million decreased from $13.6 million.

•          Diluted loss per share of $0.41 decreased from EPS of $0.06.

•          On an adjusted basis1, EPS of $0.05 decreased from $0.15. 


For further information about GMP Capital Inc., our results for second quarter 2019 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, 2019 (Second Quarter 2019 Financial Statements) and our management's discussion and analysis for the three and six months ended June 30, 2019 (Second Quarter 2019 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 Second Quarter 2019 Financial Statements prepared in accordance with International Financial Reporting Standards (IFRS).

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GMP CAPITAL INC ANNOUNCES SHAREHOLDER APPROVAL OF SALE OF ITS CAPITAL MARKETS BUSINESS

TORONTO, August 6, 2019 – GMP Capital Inc. (“GMP” or the “Company”) (TSX: GMP) is pleased to announce that, at the special meeting of holders (“Common Shareholders”) of the Company’s common shares (the “Common Shares”) held earlier today (the “Meeting”), Common Shareholders voted overwhelmingly to approve the special resolution (the “Transaction Resolution”) authorizing the previously announced sale of substantially all of the Company’s capital markets business to a subsidiary of Stifel Financial Corporation (the “Sale Transaction”). Common Shareholders also voted overwhelmingly to approve the special resolution (the “Stated Capital Reduction Resolution”) authorizing a reduction of the stated capital of the Common Shares by $0.275 per Common Share (approximately $20.7 million in the aggregate) to permit a special distribution of equal amount to be paid to Common Shareholders, contingent upon the completion of the Sale Transaction.

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