Mr. George Mavroudis reports

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

Guardian Capital Group Ltd. had $74.6-billion in total client assets as at June 30, 2022, which include assets under management (AUM) and assets under administration (AUA). This is a 9-per-cent decrease from $81.5-billion as at June 30, 2021, and a 15-per-cent decrease from $87.8-billion reported as at Dec. 31, 2021. The company is reporting AUM of $46.9-billion as at June 30, 2022, a 9-per-cent decrease from $51.6-billion as at June 30, 2021, and a 17-per-cent decrease from $56.3-billion as at Dec. 31, 2021. The decrease in AUM was driven largely by the negative global financial market performance and, to a lesser extent, net redemption of approximately $1.6-billion in institutional client assets in the current quarter. The company's AUA was $27.6-billion as at June 30, 2022, an 8-per-cent decrease from $29.9-billion as at June 30, 2021, and a 12-per-cent decrease from $31.5-billion as at Dec. 31, 2021.

The company is reporting operating earnings of $17.2-million for the quarter ended June 30, 2022, a decrease of 19 per cent or $4.0-million from the $21.2-million reported in the second quarter of 2021. The decrease in AUM and AUA since their peaks at the end of 2021 has negatively impacted the company's net revenue for the quarter. The expenses remained consistent over that same period, other than the one-time costs discussed herein, as the company continued to invest in the strategically important initiatives of building both the company's retail distribution capabilities and the recently launched Guardian Smart Infrastructure Management Inc., the company's private infrastructure business, while integrating and enhancing the company's other recently acquired businesses. These investments incurred a combined operating loss of $2.8-million in the current quarter, $500,000 higher than in the second quarter of 2021. In addition, $1.2-million in other one-time costs, including approximately $700,000 in restructuring costs associated with the company's decision to no longer pursue the buildout of the company's emerging markets debt investment team, were incurred in the current quarter.

Net revenue for the current quarter grew to $74.1-million, 6 per cent or $4.1-million higher than the $70.0-million reported in the same quarter in the prior year. The increase is due to average AUM and AUA for the current period being higher than in the comparative period. The large redemptions referred to herein occurred in the latter part of the current quarter. As a result, the full quarter's impact of the loss of those assets are not reflected in the current quarter's net revenue.

Expenses in the current quarter were $57.0-million, an $8.2-million increase from $48.8-million in the same quarter in the prior year. The higher expenses reflect the continued strategic investments in future growth sources, as well as the non-recurring costs mentioned herein.

Net losses in the current quarter were $90.1-million, compared with net gains of $56.5-million in the same quarter in the prior year. The largest portion of the net losses in the current quarter was attributable to the declines in fair values of the company's securities holdings resulting from the negative performance in the global financial markets to which those securities are exposed.

The company's net loss attributable to shareholders in the current quarter was $69.7-million, compared with net earnings attributable to shareholders of $65.1-million in the same quarter in 2021. The significant net losses associated with the company's securities holdings, as described herein, compared with the large net gains in the prior year, had the most significant impact on the change in net (loss) earnings attributable to shareholders.

EBITDA (earnings before interest, taxes, depreciation and amortization) attributable to shareholders for the current quarter was $23.0-million, compared with $24.7-million in the same period in the prior year. Adjusted cash flow from operations attributable to shareholders for the current quarter was $16.2-million, compared with $19.2-million in the same quarter in the prior year.

The company's shareholders' equity as at June 30, 2022, was $743-million, or $28.74 per share, compared with $839-million, or $31.53 per share, as at Dec. 31, 2021, and $780-million, or $29.09 per share, as at June 30, 2021. During the current quarter, the company returned to shareholders $6.3-million in dividends and $17.9-million in share buybacks. The fair value of the company's securities as at June 30, 2022, was $651-million, or $25.17 per share, compared with $752-million, or $28.27 per share, as at Dec. 31, 2021, and $698-million, or $26.03 per share, as at June 30, 2021.

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

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

About Guardian Capital Group Ltd.

Guardian Capital is a diversified, global financial services company operating in two main business segments: investment management and wealth management. Guardian provides extensive investment management solutions to institutional and private wealth clients through its subsidiaries, while offering comprehensive wealth management services to financial advisers in its national mutual fund dealer, securities dealer and insurance distribution network. 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.

We seek Safe Harbor.