Mr. George Mavroudis reports

GUARDIAN CAPITAL GROUP LIMITED (TSX: GCG; GCG.A) ANNOUNCES 2023 THIRD QUARTER OPERATING RESULTS

Guardian Capital Group Ltd. has released its financial results for the third quarter of 2023.

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

The Company is reporting total clients assets of $56.2 billion as at September 30, 2023, which include assets under management and assets under advisement. This is a 5% increase from $53.3 billion as at December 31, 2022, and a 9% increase from $51.6 billion reported as at September 30, 2022.

The Operating earnings were $18.5 million for the quarter ended September 30, 2023, a 77% increase from $10.4 million in the same quarter in the prior year. The increase in Operating earnings includes over $8.4 million in interest income earned largely on the proceeds of disposition of the Worldsource Business. EBITDA(1) was $24.6 million for the current quarter, compared to $15.6 million in the same quarter in the prior year.

As a reminder to the readers, with the Company's decision to sell the Worldsource Businesses, a financial measure Net earnings from discontinued operations was introduced in the fourth quarter of 2022. All revenues and expenses associated with those businesses were netted into this one line. The Net earnings from the remaining businesses is presented as Net earnings from continuing operations. As a result, the comparative periods have been restated to reflect this presentation format.

Net revenue for the current quarter was $62.6 million, a 29% increase from $48.4 million in the same quarter in the prior year. Increase was driven by the higher interest income earned, as stated above, along with an increase in net management and advisory fee revenue, consistent with the rise in total client assets, including a full quarter's net revenue contribution from Rae & Lipskie in the current quarter compared to only one month's revenue in the comparative period. Operating expenses were 16% higher in the current quarter at $44.1 million, compared to $38.0 million in the same period in the prior year. The increases were largely the result of the full quarter's inclusion of expenses associated with Rae & Lipskie, increased interest expense due to rise in interest rates, increased strategic investments into our additional anticipated growth sources for the future, including increased technology expenditures to support these businesses, and the effects of bearing certain costs which were recovered from Worldsource in prior periods.

Net losses in the current quarter were $17.4 million, compared to Net losses of $21.1 million in the same quarter in the prior year, which largely reflect the changes in fair values of the Company's Securities portfolio, consistent with performance of the global financial markets.

Net loss attributable to shareholders was $2.5 million in the current quarter, compared to $7.6 million in the comparative period.

Adjusted cash flow from operations(1) for the current quarter was $21.6 million, compared to $17.0 million in the comparative period. During the current quarter, the Company returned to shareholders $8.5 million in dividends and $8.3 million in share buybacks.

The Company's Shareholders' equity as at September 30, 2023 was $1,201 million, or $47.54 per share(1), compared to $768 million, or $29.43 per share(1) as at December 31, 2022.

The Board of Directors is pleased to have declared a quarterly eligible dividend of $0.34 per share, payable on January 18, 2024, to shareholders of record on January 11, 2024.

Guardian Capital Group Limited (Guardian) is a global investment management company servicing institutional, retail and private clients through its subsidiaries. It also manages a proprietary portfolio of securities. Founded in 1962, Guardian's reputation for steady growth, long-term relationships and its core values of trustworthiness, integrity and stability have been key to its success over six decades. Its Common and Class A shares are listed on the Toronto Stock Exchange as GCG and GCG.A, respectively.

(1) Non IFRS Measures

We seek Safe Harbor.