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.
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
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%