Fiscal 2020 Annual Report
Shareholder Information

Financial Overview

Selected financial information (1)(2)(7)
For the years ended March 31
(C$ thousands, except per share and % amounts, and number of employees) 2020 2019 2018 2020/2019 change
Canaccord Genuity Group Inc. (CGGI)
Revenue
Commissions and fees 586,884 556,475 461,937 30,409 5.5%
Investment banking 236,962 294,241 282,195 (57,279) (19.5)%
Advisory fees 206,507 142,228 122,372 64,279 45.2%
Principal trading 108,834 125,830 113,921 (16,996) (13.5)%
Interest 63,690 51,008 27,875 12,682 24.9%
Other 20,990 20,785 14,577 205 1.0%
Total revenue 1,223,867 1,190,567 1,022,877 33,300 2.8%
Expenses
Compensation expense 738,313 716,625 625,853 21,688 3.0%
Other overhead expenses(3) 383,527 356,240 298,250 27,287 7.7%
Restructuring costs(4) 1,921 13,070 7,643 (11,149) (85.3)%
Acquisition-related costs (124) 3,064 6,732 (3,188) (104.0)%
Loss on extinguishment of convertible debentures — 8,608 — (8,608) (100.0)%
Acceleration of long-term incentive plan expense — — 48,355 — —
Share of loss of an associate(5) 207 304 298 (97) (31.9)%
Total expenses 1,123,844 1,097,911 987,131 25,933 2.4%
Income before income taxes 100,023 92,656 35,746 7,367 8.0%
Net income 86,554 71,582 17,077 14,972 20.9%
Net income attributable to CGGI shareholders 86,490 70,530 13,024 15,960 22.6%
Non-controlling interests 64 1,052 4,053 (988) (93.9)%
Earnings per common share – basic 0.78 0.58 0.04 0.20 34.5%
Earnings per common share – diluted 0.65 0.48 0.03 0.17 35.4%
Dividends per common share 0.20 0.20 0.15 — —
Dividends per Series A Preferred Share 0.9712 0.9712 0.9712 — —
Dividends per Series C Preferred Share 1.2482 1.2482 1.2482 — —
Excluding significant items(6)
Total revenue 1,223,867 1,190,567 1,022,877 33,300 2.8%
Total expenses 1,100,810 1,054,981 912,270 45,829 4.3%
Income before income taxes 123,057 135,586 110,607 (12,529) (9.2)%
Net income 106,323 107,355 81,657 (1,032) (1.0)%
Net income attributable to CGGI shareholders 105,895 106,303 77,604 (408) (0.4)%
Net income attributable to non-controlling interests 428 1,052 4,053 (624) (59.3)%
Earnings per common share – diluted 0.81 0.80 0.59 0.01 1.3%
Balance sheet data
Total assets 5,956,195 4,749,294 4,020,736 1,210,031 25.5%
Total liabilities 5,027,421 3,870,934 3,165,813 1,156,487 29.9%
Non-controlling interests 156 1,997 13,571 (1,841) (92.2)%
Total shareholders’ equity 928,618 876,363 841,352 55,385 6.3%
Number of employees 2,308 2,112 1,956 196 9.3%
  • (1) Data is in accordance with IFRS except for book value per diluted common share, figures excluding significant items and number of employees. See Non-IFRS Measures on page 14 of our MD&A.
  • (2) The operating results of the Australian operations have been fully consolidated and a non-controlling interest of 15% has been recognized for the year ended March 31, 2020 [March 31, 2019 – 15%].
  • (3) Consists of trading costs, premises and equipment, communication and technology, interest, general and administrative, amortization of tangible and intangible assets, and development costs.
  • (4) Restructuring costs for the year ended March 31, 2020 were incurred in connection with our UK & Europe wealth management operations, as well as real estate and other integration costs related to the acquisition of Patersons in Australia. Restructuring costs for the year ended March 31, 2019 were incurred in connection with our UK & Europe capital markets operations. Restructuring costs for the year ended March 31, 2018 related to termination benefits as a result of the closing of certain trading operations in our UK & Europe capital markets operations, staff reductions in our Canadian and US capital markets operations, as well as real estate costs related to the acquisition of Hargreave Hale.
  • (5) Represents the Company’s equity portion of the net loss of its investment in Canaccord Genuity Growth II Corp. for the year ended March 31, 2020, the Company’s equity portion of the net loss of its investments in Canaccord Genuity Growth Corp. and Canaccord Genuity Acquisition Corp. for the year ended March 31, 2019, and the Company’s equity portion of the net loss of its investment in Canaccord Genuity Acquisition Corp. for the year ended March 31, 2018.
  • (6) Net income and earnings per common share excluding significant items reflect tax-effected adjustments related to such items. See the Selected Financial Information Excluding Significant Items table on page 21 of our MD&A.
  • (7) Data includes the operating results of Hargreave Hale since September 18, 2017, Jitneytrade since June 6, 2018, McCarthy Taylor since January 29, 2019, Petsky Prunier since February 13, 2019, Thomas Miller since May 1, 2019, and Patersons since October 21, 2019.