Mr. George Mavroudis reports

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

Guardian Capital Group Ltd. has released its third quarter results for 2022.

The company is reporting $74.6-billion in total client assets as at Sept. 30, 2022, which include assets under management (AUM) and assets under administration (AUA). This is a 10-per-cent decrease from $83.1-billion as at Sept. 30, 2021, and a 15-per-cent decrease from $87.8-billion reported as at Dec. 31, 2021. The company is reporting AUM of $47.8-billion as at Sept. 30, 2022, a 10-per-cent decrease from $53.1-billion as at Sept. 30, 2021, and a 15-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 redemptions reported in earlier quarters this year, partially offset by the acquisition completed in the current quarter. The company's AUA was $26.8-billion as at Sept. 30, 2022, an 11-per-cent decrease from $30.0-billion as at Sept. 30, 2021, and a 15-per-cent decrease from $31.5-billion as at Dec. 31, 2021.

The company is reporting operating earnings of $16.0-million for the quarter ended Sept. 30, 2022, a decrease of 23 per cent or $4.8-million from the $20.8-million reported in the third quarter of 2021. The decrease in AUM from its peak at the end of 2021 has continued to negatively impact the company's net revenue, but this has been partially offset by revenues which are not as sensitive to levels of AUM. Expenses increased over the same period by 9 per cent or $4.6-million, as detailed herein.

Net revenue for the current quarter declined slightly to $72.2-million from $72.4-million reported in the same quarter in the prior year. Revenues sensitive to the level of average AUM, such as net management fees, decreased in the current period, but this decrease was largely offset by higher dividends earned on the company's securities portfolio and interest earned on cash balances.

Expenses in the current quarter were $56.2-million, a $4.6-million increase from $51.6-million in the same quarter in the prior year. The higher expenses reflect the company continuing to invest in the strategically important initiatives of building both the company's retail distribution capabilities and private infrastructure business, Guardian Smart Infrastructure Management Inc. The company has also experienced increased expenses related to integrating recently acquired businesses, and higher borrowing costs due to the recent increases in interest rates.

Net losses in the current quarter were $19.8-million, compared with net losses of $8.1-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 $7.6-million, compared with net earnings attributable to shareholders of $7.1-million in the same quarter in 2021. The significant net losses associated with the company's securities holdings, as described herein, compared with the smaller net losses in the prior year, and the decline in operating earnings, largely accounted for the reduction in net (loss) earnings attributable to shareholders.

EBITDA (earnings before interest, taxes, depreciation and amortization) attributable to shareholders for the current quarter was $22.4-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 $15.9-million, compared with $20.8-million in the same quarter in the prior year.

The company's shareholders' equity as at Sept. 30, 2022 was $743-million, or $28.88 per share, compared with $839-million, or $31.53 per share, as at Dec. 31, 2021, and $781-million, or $29.40 per share, as at Sept. 30, 2021. During the current quarter, the company returned to shareholders $6.2-million in dividends and $2.9-million in share buybacks. The fair value of the company's securities as at Sept. 30, 2022, was $648-million, or $25.16 per share, compared with $752-million, or $28.27 per share, as at Dec. 31, 2021, and $689-million, or $25.91 per share, as at Sept. 30, 2021.

The board of directors has declared a quarterly eligible dividend of 24 cents per share, payable on Jan. 18, 2023, to shareholders of record on Jan. 11, 2023.

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

About Guardian Capital Group Ltd.

Guardian Capital Group 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.

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