Financial Highlights
Selected financial information(1)(2)
| For the years ended March 31 | |||||||
| (C$ thousands, except per share and % amounts, and number of employees) |
2017 | 2016 | 2017/2016 change | ||||
|---|---|---|---|---|---|---|---|
| Canaccord Genuity Group Inc. (CGGI) | |||||||
| Revenue | |||||||
| Commissions and fees | $ | 396,741 | $ | 376,817 | $ | 19,924 | 5.3% |
| Investment banking | 196,129 | 132,029 | 64,100 | 48.5% | |||
| Advisory fees | 130,749 | 160,180 | (29,431) | (18.4)% | |||
| Principal trading | 119,040 | 85,559 | 33,481 | 39.1% | |||
| Interest | 16,847 | 16,830 | 17 | 0.1% | |||
| Other | 20,040 | 16,390 | 3,650 | 22.3% | |||
| Total revenue | 879,546 | 787,805 | 91,741 | 11.6% | |||
| Expenses | |||||||
| Incentive compensation | 454,998 | 417,876 | 37,122 | 8.9% | |||
| Salaries and benefits | 85,698 | 92,981 | (7,283) | (7.8)% | |||
| Other overhead expenses(3) | 284,966 | 302,530 | (17,564) | (5.8)% | |||
| Restructuring costs(4) | — | 17,352 | (17,352) | (100.0)% | |||
| Impairment of goodwill and other assets(5) | — | 321,037 | (321,037) | (100.0)% | |||
| Total expenses | 825,662 | 1,151,776 | (326,114) | (28.3)% | |||
| Income (loss) before income taxes | 53,884 | (363,971) | 417,855 | 114.8% | |||
| Net income (loss) | $ | 43,186 | $ | (358,567) | $ | 401,753 | 112.0% |
| Net income (loss) attributable to CGGI shareholders | $ | 38,103 | $ | (358,471) | $ | 396,574 | 110.4% |
| Non-controlling interests | $ | 5,083 | $ | (96) | $ | 5,179 | n.m. |
| Earnings (loss) per common share (EPS) – basic | $ | 0.29 | $ | (4.09) | $ | 4.38 | 107.1% |
| Earnings (loss) per common share – diluted | $ | 0.27 | $ | (4.09) | $ | 4.36 | 106.6% |
| Return on common equity (ROE) | 5.0% | (50.4)% | 55.4 p.p. | ||||
| Dividends per common share | $ | 0.10 | $ | 0.10 | $ | — | — |
| Dividends per Series A Preferred Share | $ | 1.173 | $ | 1.375 | $ | (0.20) | (14.7)% |
| Dividends per Series C Preferred Share | $ | 1.4375 | $ | 1.4375 | $ | — | — |
| Book value per diluted common share(6) | $ | 5.08 | $ | 4.99 | $ | 0.09 | 1.8% |
| Excluding significant items(7) | |||||||
| Total revenue | $ | 878,353 | $ | 787,805 | $ | 90,548 | 11.5% |
| Total expenses | $ | 817,096 | $ | 793,862 | $ | 23,234 | 2.9% |
| Income (loss) before income taxes | $ | 61,257 | $ | (6,057) | $ | 67,314 | n.m. |
| Net income (loss) | $ | 49,196 | $ | (5,995) | $ | 55,191 | n.m. |
| Net income (loss) attributable to CGGI shareholders | $ | 43,903 | $ | (6,620) | $ | 50,523 | n.m. |
| Net income attributable to non-controlling interests | $ | 5,293 | $ | 625 | $ | 4,668 | n.m. |
| Earnings (loss) per common share – diluted | $ | 0.32 | $ | (0.21) | $ | 0.53 | 252.4% |
| Balance sheet data | |||||||
| Total assets | $ | 5,203,516 | $ | 3,424,546 | $ | 1,778,970 | 51.9% |
| Total liabilities | 4,426,873 | 2,665,895 | 1,760,978 | 66.1% | |||
| Non-controlling interests | 11,858 | 8,722 | 3,136 | 36.0% | |||
| Total shareholders’ equity | 764,785 | 749,929 | 14,856 | 2.0% | |||
| Number of employees | 1,700 | 1,795 | (95) | (5.3)% | |||
(1) Data is in accordance with IFRS except for ROE, book value per diluted common share, figures excluding significant items and number of employees. See Non-IFRS Measures on page 10 of our Management’s Discussion and Analysis (MD&A).
(2) The operating results of the Australian operations have been fully consolidated and a 42% non-controlling interest has been recognized for fiscal 2017 [fiscal 2016 – 42%].
(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, 2016 were related to the staff reductions in our US, Canada and UK capital markets operations and the closure of our Barbados office in Other Foreign Locations, as well as charges related to staff reductions and certain executive changes in our Corporate and Other segment.
(5) Impairment of goodwill and other assets for the year ended March 31, 2016 was in connection with our capital markets operations in the UK, the US, Canada and Australia, and our Other Foreign Locations – Singapore operations.
(6) Book value per diluted common share is calculated as total common shareholders’ equity adjusted for assumed proceeds from the exercise of options and warrants and the conversion of convertible debentures divided by the number of diluted common shares outstanding including estimated amounts in respect of share issuance commitments including options, warrants and convertible debentures, as applicable, and adjusted for shares purchased under the normal course issuer bid and not yet cancelled, and estimated forfeitures in respect of unvested share awards under share-based payment plans.
(7) Net income (loss) and earnings (loss) 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 20 of our MD&A.
n.m.: not meaningful
p.p.: percentage points