Mr. Donald Yi reports

GUARDIAN CAPITAL GROUP LIMITED (TSX: GCG; GCG.A) ANNOUNCES 2022 FIRST QUARTER OPERATING RESULTS

Guardian Capital Group Ltd. has released its 2022 first quarter operating results.

All per-share figures disclosed in this news release are stated on a diluted basis.

The company is reporting $83.6-billion in total client assets as at March 31, 2022, including assets under management (AUM) and assets under administration (AUA). This is a 5-per-cent decrease from $87.8-billion reported as at Dec. 31, 2021, and a 10-per-cent increase from $76.3-billion as at March 31, 2021.

AUM was $53.1-billion as at March 31, 2022, a 6-per-cent decrease from $56.3-billion as at Dec. 31, 2021, and a 12-per-cent increase from $47.6-billion as at March 31, 2021. The decrease in the AUM during the current quarter was driven largely by the negative global financial market performance, partially offset by net inflow of new assets, while the increase since March 31, 2021, was due to a combination of the net inflow of assets throughout 2021 and the net positive performance in the global equities market. The company's AUA was $30.5-billion as at March 31, 2022, a 3-per-cent decrease from $31.5-billion as at Dec. 31, 2021, and a 6-per-cent increase from $28.7-billion as at March 31, 2021.

The company is reporting operating earnings of $19.4-million for the quarter ended March 31, 2022, an increase of 11 per cent or $1.9-million higher than the $17.5-million reported in the first quarter of 2021. This growth was achieved while continuing to make investments into the strategically important initiatives to the buildout of the company's retail distribution capabilities, to integrate and enhance the recently acquired businesses, and to build out the recently launched Guardian Smart Infrastructure Management Inc., the private infrastructure business. These initiatives incurred a combined operating loss of $2.3-million in the current quarter, $1.1-million higher than in the first quarter of 2021.

Net revenue for the current quarter grew to $75.1-million 16 per cent or $10.4-million higher than the $64.7-million reported in the same quarter in the prior year. The increase is in line with the company's growth in total client assets and reflects its successful organic growth throughout 2021 and the benefit of net positive performances in the global financial markets since the first quarter of 2021.

Expenses in the current quarter were $55.7-million, an $8.5-million increase from $47.2-million in the same quarter in the prior year. The higher expenses reflect the growth in the company's businesses and the strategic investments made into the initiatives described above.

Net losses in the current quarter were $8.0-million, compared with net gains of $42.0-million in the same quarter in the prior year. The largest portion of the net losses in the current quarter were due to the declines in fair values of a portion of the company's securityholdings exposed to non-Canadian equity markets. These losses were partially offset by the increase in the fair value of the Bank of Montreal shares.

The company's net earnings attributable to shareholders in the current quarter were $4.3-million, compared with $49.6-million in the same quarter in 2021. The net losses, as described above, compared with the large net gains in the prior year, had the most significant impact on the change in net earnings attributable to shareholders. This was partially offset by the growth in operating earnings over the same period.

EBITDA (earnings before interest, taxes, depreciation and amortization) attributable to shareholders for the current quarter was $23.8-million, compared with $21.2-million in the same period in the prior year. Adjusted cash flow from operations attributable to shareholders for the current quarter was $17.8-million, compared with $18.5-million in the same quarter in the prior year.

The company's shareholders' equity as at March 31, 2022, was $828-million or $31.27 per share, compared with $839-million or $31.53 per share as at Dec. 31, 2021, and $737-million or $27.14 per share as at March 31, 2021. Since Dec. 31, 2021, the company returned to shareholders $4.7-million in dividends and $2.3-million in share buybacks. The fair value of the company's securities as at March 31, 2022, was $741-million or $27.97 per share, compared with $752-million or $28.27 per share as at Dec. 31, 2021, and $654-million or $24.05 per share as at March 31, 2021.

The board of directors has declared a quarterly eligible dividend of 24 cents per share, payable on July 18, 2022, to shareholders of record on July 11, 2022.

The company's financial results for the past eight quarters are summarized in the attached table.

Guardian Capital is a diversified financial services company founded in 1962. The company is headquartered in Canada and also has offices in the United Kingdom, the United States and the Caribbean. It provides investment and wealth management services to clients and services to financial advisers in its national mutual fund dealer, securities dealer and life insurance managing general agency. Its common and Class A shares are listed on the Toronto Stock Exchange.

We seek Safe Harbor.