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GMP CAPITAL INC. REPORTS THIRD QUARTER RESULTS

^{Published on 2010-11-05 03:21:07 - Market Wire}
 

 - Revenue of $100.9 million compared with revenue of $71.5 million, an increase of 41% - Notable increase in investment banking revenue to $55.2 million, an increase of 92% - Net income of $22.4 million compared with net income of $8.4 million - Basic earnings per share of $0.32 compared with $0.12 - Annualized return on common equity ("Annualized ROE")(1) of 30.8% compared with 13.2% 

 - Revenue of $295.1 million compared with revenue of $239.7 million - Investment banking revenue of $178.8 million, an increase of 62% - Net loss of $17.5 million compared with net income of $23.6 million. Excluding impairment charges recorded in the first quarter of 2010 relating to the EdgeStone reporting unit, adjusted net income(1) was $58.5 million (adjusted earnings per share(1) of $0.83) and adjusted Annualized ROE(1) was 22.4%. Net income in first nine months 2009 included $7.7 million in income tax adjustments in connection with GMP's conversion to a corporation, which occurred in May 2009. 

 ------------------------------------------------------------------------- CAPITAL MARKETS ------------------------------------------------------------------------- - Revenue increased $39.7 million or 77% to $91.0 million in third quarter 2010 compared with third quarter 2009 - Investment banking revenue increased $26.5 million or 92% to $55.2 million in third quarter 2010 compared with third quarter 2009 consistent with improved activity in the Canadian mid-market during the period - Sales and trading commissions increased $1.9 million or 11% to $18.4 million in third quarter 2010 compared with third quarter 2009 benefitting from a 25% year-over-year increase in the number of shares traded by GMP Securities on behalf of its clients on the Toronto Stock Exchange and TSX Venture Exchange - Operating earnings increased $22.9 million or 169% to $36.5 million in third quarter 2010 compared with third quarter 2009 - GMP Securities ranked first among Canadian investment dealers, for the third consecutive quarter in 2010, in the dollar value of common equity underwriting transactions completed in Canada for which we were lead or co-lead(2) - GMP Securities participated in 34 underwriting transactions completed in Canada helping raise approximately $3.0 billion on behalf of clients, leading or co-leading 16 of these transactions(3) - GMP Securities ranked third in Canada for equity block trading volume on the Toronto Stock Exchange and TSX Venture Exchange, achieving an 8.8% market share(4) ------------------------------------------------------------------------- WEALTH MANAGEMENT ------------------------------------------------------------------------- - Wealth Management reported an operating loss of $0.3 million in third quarter 2010 compared with an operating loss of $1.1 million in third quarter 2009 - Richardson GMP's management believes that expenses associated with integration-related activities are now substantially complete - Richardson GMP remains focused on the acceleration of organic growth and the recruitment of additional experienced investment advisors - As at September 30, 2010, assets under administration(5) were $12.8 billion and Richardson GMP ended the quarter with 113 investment advisory teams ------------------------------------------------------------------------- ALTERNATIVE INVESTMENTS ------------------------------------------------------------------------- - Revenue decreased $4.3 million or 41% to $6.1 million in third quarter 2010 compared with third quarter 2009, largely due to lower investment management and fee income and lower unrealized gains recorded in principal activities in third quarter 2010 arising from GMP's investment in the GMP Diversified Alpha Domestic Fund - Operating earnings were $1.3 million for third quarter 2010 compared with $5.9 million in third quarter 2009 - The GMP Diversified Alpha Master Fund had an inception-to-date return of 19.1%, net of management fees and other expenses, for the period ended September 30, 2010, which compares favourably to the negative 7.4% return on the S&P/TSX Composite Index over the same period 

 (1) Represents a non-GAAP measure. This measure does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other issuers. This data should be read in conjunction with the "Presentation of Financial Information and Non-GAAP Measures" section in GMP's Management's Discussion and Analysis for the three and nine-months ended September 30, 2010. (2) Source: FPinfomart as at October 8, 2010. (3) Source: GMP Capital Inc. - internal reports. (4) Source: CanadaEquity.com as at October 8, 2010. (5) Represents a non-GAAP measure. This measure does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other issuers. This data should be read in conjunction with the "Presentation of Financial Information and Non-GAAP Measures" section in GMP's Management's Discussion and Analysis for the three and nine-months ended September 30, 2010