Financial Overview
Q4 and Fiscal 2023 Selected Financial Information(1)(2)(5)
| Three months ended March 31 | Year ended March 31 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| (C$ thousands, except per share and % amounts, and number of employees) | 2023 | 2022 | 2021 | Q4/23 vs. Q4/22 |
2023 | 2022 | 2021 | Year-over-year change | |
| Canaccord Genuity Group Inc. (CGGI) | |||||||||
| Revenue | |||||||||
| Commissions and fees | 196,774 | 196,976 | 214,476 | (0.1)% | 749,114 | 761,843 | 735,239 | (1.7)% | |
| Investment banking | 50,962 | 108,801 | 305,939 | (53.2)% | 160,944 | 561,725 | 761,551 | (71.3)% | |
| Advisory fees | 104,649 | 122,353 | 66,761 | (14.5)% | 364,554 | 493,057 | 197,092 | (26.1)% | |
| Principal trading | 26,921 | 41,960 | 87,830 | (35.8)% | 117,238 | 158,978 | 246,801 | (26.3)% | |
| Interest | 45,949 | 10,264 | 7,487 | 347.7% | 115,245 | 36,028 | 26,288 | 219.9% | |
| Other | 5,134 | 19,439 | 24,033 | (73.6)% | 3,302 | 34,371 | 40,717 | (90.4)% | |
| Total revenue | 430,389 | 499,793 | 706,526 | (13.9)% | 1,510,397 | 2,046,002 | 2,007,688 | (26.2)% | |
| Expenses | |||||||||
| Compensation expense | 276,066 | 294,695 | 395,638 | (6.3)% | 936,872 | 1,248,184 | 1,227,895 | (24.9)% | |
| Other overhead expenses(3) | 151,535 | 108,024 | 117,784 | 40.3% | 500,578 | 395,709 | 398,693 | 26.5% | |
| Acquisition-related costs | — | 515 | 418 | (100.0)% | 7,403 | 9,197 | 5,922 | (19.5)% | |
| Impairment of goodwill and other intangible assets | — | — | — | — | 102,571 | — | — | n.m. | |
| Fair value adjustment of non-controlling interests derivative liability | 11,629 | — | — | n.m. | 11,629 | 8,519 | — | 36.5% | |
| Change in fair value of contingent consideration | (14,278) | — | — | n.m. | (14,278) | — | — | n.m. | |
| Costs associated with redemption of convertible debentures | — | — | 4,354 | — | — | 5,932 | 4,354 | (100.0)% | |
| Share of loss of an associate | 10 | 11 | 616 | (9.1)% | 55 | 192 | 922 | (71.4)% | |
| Total expenses | 424,962 | 403,245 | 518,810 | 5.4% | 1,544,830 | 1,667,733 | 1,637,786 | (7.4)% | |
| (Loss) income before income taxes | 5,427 | 96,548 | 187,716 | (94.4)% | (34,433) | 378,269 | 369,902 | (109.1)% | |
| Net (loss) income | 3,763 | 68,995 | 139,394 | (94.5)% | (54,742) | 270,565 | 269,802 | (120.2)% | |
| Net (loss) income attributable to: | |||||||||
| CGGI shareholders | (4,326) | 58,657 | 137,877 | (107.4)% | (90,104) | 246,314 | 263,786 | (136.6)% | |
| Non-controlling interests | 8,089 | 10,338 | 1,517 | (21.8)% | 35,362 | 24,251 | 6,016 | 45.8% | |
| (Loss) earnings per common share – diluted | (0.08) | 0.53 | 0.93 | (115.1)% | (1.16) | 2.16 | 2.04 | (153.7)% | |
| Dividends per common share | 0.085 | 0.085 | 0.075 | — | 0.34 | 0.32 | 0.25 | 6.3% | |
| Total assets | 6,302,400 | 7,250,245 | 7,631,801 | (13.1)% | |||||
| Total liabilities | 4,903,763 | 5,833,476 | 6,516,517 | (15.9)% | |||||
| Non-controlling interests | 343,998 | 238,700 | 8,190 | 44.1% | |||||
| Total shareholders’ equity | 1,054,639 | 1,178,069 | 1,107,094 | (10.5)% | |||||
| Number of employees | 2,829 | 2,587 | 2,356 | 9.4% | |||||
| Excluding significant items(4) | |||||||||
| Total revenue | 430,389 | 490,793 | 692,326 | (12.3)% | 1,523,348 | 2,040,602 | 1,993,488 | (25.3)% | |
| Total expenses | 414,055 | 396,268 | 509,087 | 4.5% | 1,397,476 | 1,623,036 | 1,607,398 | (13.9)% | |
| Income before income taxes | 16,334 | 94,525 | 183,239 | (82.7)% | 125,872 | 417,566 | 386,090 | (69.9)% | |
| Net income | 17,428 | 66,822 | 137,128 | (73.9)% | 100,986 | 305,827 | 285,887 | (67.0)% | |
| Net income attributable to: | |||||||||
| CGGI shareholders | 9,645 | 57,069 | 135,611 | (83.1)% | 71,260 | 284,069 | 279,871 | (74.9)% | |
| Non-controlling interests | 7,783 | 9,753 | 1,517 | (20.2)% | 29,726 | 21,758 | 6,016 | 36.6% | |
| Net income attributable to common shareholders, adjusted | 6,793 | 54,678 | 133,260 | (87.6)% | 60,312 | 274,585 | 270,467 | (78.0)% | |
| Earnings per common share – diluted | 0.07 | 0.52 | 1.20 | (86.5)% | 0.59 | 2.51 | 2.48 | (76.5)% | |
(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 32.7% non-controlling interest has been recognized for the three and 12 months ended March 31, 2023 [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]. The operating results of CGWM UK have been fully consolidated, and a 5.55% non-controlling interest in the outstanding ordinary shares of Canaccord Genuity Wealth Management Holdings (Jersey) Limited has been recognized for the three and 12 months ended March 31, 2023 [three and 12 months ended March 31, 2022 – 1.5%].
(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) Net income and earnings per common share excluding significant items reflect tax-effected adjustments related to such items. See Non-IFRS Measures on page 14 and the Q4 and Fiscal 2023 Selected Financial Information Excluding Significant Items table on page 24.
(5) Data includes the operating results of Adam & Company since October 1, 2021; Sawaya, since December 31, 2021; PSW, since May 31, 2022; and Results, since August 17, 2022.
n.m.: not meaningful