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) 2022 2021 2020 2022/2021 change
Canaccord Genuity Group Inc. (CGGI)
Revenue
Commissions and fees 761,843 735,239 586,884 26,604 3.6%
Investment banking 561,725 761,551 236,962 (199,826) (26.2)%
Advisory fees 493,057 197,092 206,507 295,965 150.2%
Principal trading 158,978 246,801 108,834 (87,823) (35.6)%
Interest 36,028 26,288 63,690 9,740 37.1%
Other 34,371 40,717 20,990 (6,346) (15.6)%
Total revenue 2,046,002 2,007,688 1,223,867 38,314 1.9%
Expenses
Compensation expense 1,248,184 1,227,895 738,313 20,289 1.7%
Other overhead expenses(3) 395,709 398,693 383,527 (2,984) (0.7)%
Acquisition-related costs 9,197 5,922 (124) 3,275 55.3%
Restructuring costs(4) — — 1,921 — —
Change in derivative liability fair value 8,519 — — 8,519 n.m.
Costs associated with redemption of convertible debentures(5) 5,932 4,354 — 1,578 36.2%
Share of loss (gain) of an associate 192 922 207 (730) (79.2)%
Total expenses 1,667,733 1,637,786 1,123,844 29,947 1.8%
Income before income taxes 378,269 369,902 100,023 8,367 2.3%
Net income 270,565 269,802 86,554 763 0.3%
Net income attributable to CGGI shareholders 246,314 263,786 86,490 (17,472) (6.6)%
Net income attributable to non-controlling interests 24,251 6,016 64 18,235 n.m.
Earnings per common share – basic 2.50 2.30 0.78 0.20 8.7%
Earnings per common share – diluted 2.16 2.04 0.65 0.12 5.9%
Dividends per common share 0.32 0.25 0.20 0.07 28.0%
Dividends per Series A Preferred Share 0.9981 0.9712 0.9712 0.03 2.8%
Dividends per Series C Preferred Share 1.2482 1.2482 1.2482 — —
Excluding significant items(6)
Total revenue 2,040,602 1,993,488 1,223,867 47,114 2.4%
Total expenses 1,623,036 1,607,398 1,100,810 15,638 1.0%
Income before income taxes 417,566 386,090 123,057 31,476 8.2%
Net income 305,827 285,887 106,323 19,940 7.0%
Net income attributable to CGGI shareholders 284,069 279,871 105,895 4,198 1.5%
Net income attributable to non-controlling interests 21,758 6,016 428 15,742 261.7%
Diluted earnings per common share 2.51 2.48 0.81 0.03 1.2%
Balance sheet data
Total assets 7,250,245 7,631,801 5,956,195 (381,556) (5.0)%
Total liabilities 5,833,476 6,516,517 5,027,421 (683,041) (10.5)%
Non-controlling interests 238,700 8,190 156 230,510 n.m.
Total shareholders’ equity 1,178,069 1,107,094 928,618 70,975 6.4%
Number of employees 2,587 2,356 2,308 231 9.8%

 

 

(1) Financial measures are in accordance with IFRS except for figures excluding significant items. See Non-IFRS Measures on page 14.

(2) The operating results of the Australian operations have been fully consolidated, and a 15% non-controlling interest has been recognized for the first nine months of fiscal 2022 and 32.7% for the fourth quarter of fiscal 2022 due to the share reorganization in Australia on January 3, 2022 [March 31, 2021 – 15%]. The operating results of CGWM UK have been fully consolidated, and excluding the effect of the Convertible Preferred Shares issued by CGWM UK, a 1.6% non-controlling interest has been recognized for the period from August 1, 2021 to December 31, 2021 and 4.3% for the fourth quarter of fiscal 2022 [March 31, 2021 – $nil].

(3) Consists of trading costs, premises and equipment, communication and technology, interest, general and administrative, amortization of tangible, intangible and right of use assets, and development costs.

(4) Restructuring costs for the year ended March 31, 2020 were incurred in connection with CGWM UK, as well as real estate and other integration costs related to the acquisition of Patersons.

(5) During the year ended March 31, 2022, the Company entered into a credit agreement for a senior secured first lien term loan facility (“loan facility”) to partially fund the redemption of the convertible debentures. Transaction costs incurred in connection with the loan facility are recognized on an amortized cost basis and included in the effective interest rate of the facility. Interest associated with this loan facility is included in costs associated with redemption of convertible debentures for the year ended March 31, 2022.

(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 25.

(7) Data includes the operating results of Thomas Miller since May 1, 2019, Patersons since October 21, 2019, Adam & Company since October 1, 2021 and Sawaya Partners since December 31, 2021.

n.m.: not meaningful (percentages over 300% are indicated as n.m.)