Mr. George Mavroudis reports

GUARDIAN CAPITAL GROUP LIMITED (TSX: GCG; GCG.A) ANNOUNCES 2016 OPERATING RESULTS

Guardian Capital Group Ltd. has released its 2016 operating results.

All per-share figures disclosed herein are stated on a diluted basis.

                            FINANCIAL HIGHLIGHTS
                 ($ in thousands, except per-share amounts)
                                                            For the years ended Dec. 31,
                                                                    2016           2015

Net revenue                                                     $142,686       $132,911
Operating earnings                                                44,667         42,998
Net gains                                                         38,617         11,040
Net earnings available to shareholders                            69,475         44,105
                                                                 -------        -------
EBITDA (1)                                                      $ 49,549       $ 47,826
Adjusted cash flow from operations (1)                            38,659         38,347
                                                                 -------        -------
Per share
Net earnings available to shareholders                          $   2.32       $   1.44
EBITDA (1)                                                          1.66           1.56
Adjusted cash flow from operations (1)                              1.30           1.25
                                                                 -------        -------

The company completed another successful year in 2016, reaching historical highs again in many of its key financial measures. Based on the strong 2016 fiscal performance, the board of directors is pleased to announce a quarterly eligible dividend of 10 cents per share, an increase of 17.6 per cent, payable on April 18, 2017, to shareholders of record on April 11, 2017.

Assets under management (AUM) were $27.3-billion as at Dec. 31, 2016, an increase of 12 per cent from $24.3-billion as at Dec. 31, 2015. The increase in AUM was due largely to the positive returns in the Canadian equity market, to which the company's institutional AUM is over 50 per cent exposed. The positive market performance was partially offset by net redemptions in Canadian equities from retail intermediary mandates and by institutional investors rebalancing their portfolios, after strong returns, especially in the fourth quarter of 2016. This trend is expected to continue into early 2017. Assets under administration were $16.5-billion as at Dec. 31, 2016, an increase of 10 per cent from $14.9-billion as at Dec. 31, 2015.

The company's operating earnings for the year were $44.7-million, a 4-per-cent growth from $43.0-million in 2015. The growth in operating earnings was aided by the significant growth in fourth quarter operating earnings, especially from the MGA business that delivered record sales in premiums on life insurance policies sold, as clients accelerated their decisions to buy policies before changes to income tax legislation came into effect in the new year. The sales in life insurance policies are expected to revert to more normal levels in early 2017. The growth in 2016 operating earnings was achieved while continuing to make strategic investments in the business. Included in 2016 operating earnings was $4.8-million in operating losses associated with developing less mature businesses to support the company's future growth, including the company's new initiative to expand marketing and distribution capabilities in the U.S. market. In 2015, these investments amounted to $3.5-million in operating losses.

Net earnings available to shareholders for the year were $69.5-million ($2.32 per share), a 58-per-cent growth compared with $44.1-million ($1.44 per share) for 2015. The increase in net earnings available to shareholders was due to the combination of growth in operating earnings and the significant increase in net gains in 2016, that included gains on the sale of just over $500,000 in Bank of Montreal shares.

EBITDA (net earnings before interest, income taxes, amortization, stock-based compensation, net gains or losses, and net gains or losses on securities held for sale, less amounts attributable to non-controlling interest) (1) for the year was $49.5-million, or $1.66 per share, compared with $47.8-million, or $1.56 per share for 2015. Adjusted cash flow from operations (1) for the year was $38.7-million, or $1.30 per share, compared with $38.3-million, or $1.25 per share for 2015. The increases in each of these measures reflect the growth in operating earnings for the year. These two non-international financial reporting standard measures used by the company are defined in its quarterly and annual management's discussion and analysis.

The company's shareholders' equity as at Dec. 31, 2016, was $580-million, or $19.62 per share, compared with $504-million, or $16.55 per share, at Dec. 31, 2015. The fair value of the company's holdings of securities as at Dec. 31, 2016, was $620-million, or $20.97 per share, compared with $540-million, or $17.72 per share, as at Dec. 31, 2015.

Guardian Capital Group is a diversified financial services company founded in 1962. Guardian provides institutional and high-net-worth investment management services to clients; financial services to international investors; and services to financial advisers in its national mutual fund dealer, securities dealer and insurance distribution network.

(1) The company's management uses EBITDA and adjusted cash flow from operations to evaluate and assess the performance of its business. These two measures do not have standardized meaning under international financial reporting standards and are therefore unlikely to be comparable with similar measures presented by other companies. However, management believes that most shareholders, creditors, other stakeholders and investment analysts prefer to include the use of these measures in analyzing the company's results. The company defines EBITDA as net earnings before interest, income taxes, amortization, stock-based compensation, net gains or losses, and net gains or losses on securities held for sale, less amounts attributable to non-controlling interest. The company defines adjusted cash flow from operations as net cash from operating activities, net of changes in non-cash working capital items and net of non-controlling interests. The most comparable IFRS measures are net earnings, which were $70,575 for the year ended Dec. 31, 2016 (2015: $44,977), and net cash from operating activities, which was $42,515 for the year ended Dec. 31, 2016 (2015: $33,777). More detailed descriptions of these two non-IFRS measures are provided in the company's annual management's discussions and analysis, including a reconciliation of these measures to their most comparable IFRS measures.