Canaccord Financial Inc: Half-yearly Report

Canaccord Financial Inc. reports second quarter fiscal 2013 results 
Generates net income of $5.9 million during the quarter, excluding significant
items(1) 
(All dollar amounts are stated in Canadian dollars unless otherwise indicated) 
TORONTO, Nov. 7, 2012 /CNW/ - In the second quarter of fiscal 2013, the quarter
ended September 30, 2012, Canaccord Financial Inc. (Canaccord, the Company,
TSX: CF, LSE: CF.) generated $186.6 million in revenue.  During the quarter,
the Company implemented several cost-reduction initiatives aimed at improving
the performance of certain business units.  Excluding restructuring and other
significant items(1) (a non-IFRS measure), the Company recorded net income of
$5.9 million, or $0.03 per diluted common share.  Including these expenses, the
Company recorded a net loss of $14.8 million, or $0.19 per common share. 
"We are pleased with the momentum we're building in the UK, the US and Asia,
where the impacts of our acquisition of Collins Stewart Hawkpoint are beginning
to demonstrate the power of our expanded platform," stated Paul Reynolds,
President and CEO of Canaccord Financial Inc.  "We're continuing with our
efforts to foster further cross-border collaboration across our platform to
ensure our clients and shareholders receive the full value of our global
offering."  
Mr. Reynolds continued: "Our fiscal second quarter was highlighted by key
leadership appointments and activities aimed at strengthening the performance
of certain divisions.  In particular, we expect these activities will allow our
wealth management businesses to operate more competitively within this dynamic
economic environment." 
Second quarter of fiscal 2013 vs. first quarter of fiscal 2013 
·         Revenue of $186.6 million, up 15% or $24.1 million from $162.5
million 
·         Excluding significant items, expenses of $179.7 million, down 1% 
from
$181.7 million(1) 
·         Expenses of $204.9 million, up 10% or $17.9 million from $187.0
million 
·         Excluding significant items, net income of $5.9 million compared to 
a
net loss of $16.3 million (1) 
·         Net loss of $14.8 million compared to a net loss of $20.6 million 
·         Excluding significant items, diluted earnings per common share (EPS)
of $0.03 compared to a loss per common share of $0.20 in the first quarter of
fiscal 2013(1) 
·         Loss per common share of $0.19 compared to a loss per common share 
of
$0.24 in the first quarter of fiscal 2013 
Second quarter of fiscal 2013 vs. second quarter of fiscal 2012 
·         Revenue of $186.6 million, up 56% or $67.1 million from $119.5
million 
·         Excluding significant items, expenses of $179.7 million, up 47% from
$122.5 million(1) 
·         Expenses of $204.9 million, up 62% or $78.5 million from $126.4
million 
·         Excluding significant items, net income of $5.9 million compared to 
a
net loss of $1.7 million (1) 
·         Net loss of $14.8 million compared to a net loss of $5.3 million 
·         Excluding significant items, diluted EPS of $0.03 compared to a loss
per common share of $0.05 (1) 
·         Loss per common share of $0.19 compared to a loss per common share 
of
$0.09 
First half of fiscal 2013 vs. first half of fiscal 2012
(Six months ended September 30, 2012 vs. six months ended September 30, 2011) 
·         Revenue of $349.1 million, up 25% or $69.8 million from $279.3
million 
·         Excluding significant items, expenses of $361.4 million, up 36% from
$265.6 million(1) 
·         Expenses of $392.0 million, up 45% or $121.6 million from $270.4
million 
·         Excluding significant items, net loss of $10.4 million compared to
net income of $12.5 million (1) 
·         Net loss of $35.5 million compared to net income of $7.9 million 
·         Excluding significant items, loss per common share of $0.17 compared
to diluted EPS of $0.13(1) 
·         Loss per common share of $0.43 compared to diluted EPS of $0.07 
Financial condition at end of second quarter 2013 vs. second quarter 2012 
·         Cash and cash equivalents balance of $575.4 million, down $115.7
million from $691.1 million 
·         Working capital of $386.0 million, down $115.4 million from $501.4
million 
·         Total shareholders' equity of $1.0 billion, up $170.3 million from
$863.5 million 
·         Book value per diluted common share for the period end was $7.61,
down 13% or $1.14 from $8.75(1) 
·         On November 7, 2012, the Board of Directors approved a quarterly
dividend of $0.05 per common share payable on December 10, 2012 with a record
date of November 30, 2012 
·         On November 7, 2012, the Board of Directors also approved a cash
dividend of $0.34375 per Series A Preferred Share payable on December 31, 2012
with a record date of December 14, 2012, and a cash dividend of $0.359375 per
Series C Preferred Share payable on December 31, 2012 to Series C Preferred
shareholders of record as at December 14, 2012 
SUMMARY OF OPERATIONS 
Corporate 
·         On July 12, 2012, Canaccord Financial Inc. held its 2012 Annual
General Meeting of shareholders, where all motions were duly passed 
·         On July 13, 2012, Canaccord Financial Inc. graduated its UK public
listing from AIM to the LSE main market 
·         On August 13, 2012, Canaccord Financial Inc. renewed its Normal
Course Issuer Bid (NCIB)/share buyback programme, which provides the Company
with the ability to purchase, at its discretion, up to 3,000,000 of its common
shares through the facilities of the TSX for cancellation 
·         On September 4, 2012, the Company announced that Alexis de Rosnay
joined the firm as CEO of Canaccord's UK and European operations 
·         On September 16, 2012, Canaccord appointed Peter O'Malley as CEO of
Canaccord Genuity Asia 
·         On September 24, 2012, the Company announced the expansion of its UK
wealth management business through the acquisition of Eden Financial Ltd.'s
wealth management business 
·         On September 24, 2012, Canaccord announced a new strategy to
streamline and refocus its Canadian wealth management operations in larger
Canadian centres 
Capital Markets 
·         Canaccord Genuity led or co-led 28 transactions globally, raising
total proceeds of $1.1 billion(2) during fiscal Q2/13 
·         Canaccord Genuity participated in 74transactions globally, raising
total proceeds of $7.2 billion(2)  during fiscal Q2/13 
·         During fiscal Q2/13, Canaccord Genuity led or co-led the following
transactions: 
·         £118.0 million for Eland Oil & Gas plc on AIM 
·         £100.0 million for Raglan Finance plc through a privately placed
wholesale bond issue 
·         £80.0 million for Intermediate Capital Group plc through a new 
retail
corporate bond issue 
·         US$75.0 million for Emerald Oil, Inc. on the NYSE 
·         £65.0 million for CLS Holdings plc through a new retail corporate
bond issue 
·         C$57.5 million for Pure Multi-Family REIT LP on the TSX Venture 
·         £38.4 million for Kenmare Resources plc on the LSE 
·         C$34.7 million for Pure Industrial Real Estate Trust on the TSX
Venture 
·         C$34.5 million for Sprott Power Corp. on the TSX 
·         C$34.5 million for Partners Real Estate Investment Trust on the TSX 
·         US$38.0 million for Anthera Pharmaceuticals, Inc. on the NASDAQ 
·         AUS$30.0 million for Neon Energy Limited on the ASX 
·         S$30.0 million for JB Foods Limited on the SGX 
·         £23.0 million placing for Monitise plc (private placement) 
·         US$20.1 million for Sunshine Heart, Inc. on the NASDAQ 
·         US$17.4 million for Solta Medical, Inc. on the NASDAQ 
·         In addition to the transactions above, Canaccord Genuity was lead
manager in the $850 million equity underwriting facility for Heritage Oil plc 
·         In Canada, Canaccord Genuity raised $147.0 million for provincial
bond issuances and $13.9 million for corporate bond issuances during fiscal Q2/
13 
·         Canaccord Genuity generated advisory revenues of $28.6 million 
during
fiscal Q2/13, an increase of 32% compared to the same quarter last year 
·         During fiscal Q2/13, Canaccord advised on the following M&A and
advisory transactions: 
·         Extorre Gold Mines Limited on its acquisition by Yamana Gold Inc. 
·         SkyPower Limited. on its sale of certain assets to Canadian Solar
Inc. 
·         Pamplona Capital Management LLP on the restructuring process of WEPA
SE 
·         Azulis Capital on the disposal of Cleor to 21 Centrale Partners 
·         Florac on its acquisition of a minority stake in TCR 
·         Irish Life Limited on its investment in GloHealth Financial Services
Ltd. 
·         Financial advisor to the shareholders of Windsor Limited on the
merger of Windsor with Hyperion Insurance Group 
·         Financial advisor to Xaap Finances on the disposal of TATEX to Fedex 
·         Financial advisor to Invista Real Estate Investment Management
Holdings plc on the £40 million recommended cash offer from Palmer Capital
Investors (India) Limited 
Canaccord Wealth Management (Global) 
·         Globally, Canaccord Wealth Management generated $57.6 million in
revenue 
·         Assets under administration in Canada, and assets under management 
in
the UK and Europe, and Australia, were $26.8 billion at the end of Q2/13(1) 
Canaccord Wealth Management (North America and Australia) 
·         Canaccord Wealth Management generated $37.0 million in revenue and,
after intersegment allocations, recorded a net loss of $20.5 million before
taxes in Q2/13.  Restructuring charges associated with the reduction of the
Canadian wealth management platform totalling $13.6 million were recorded in
the quarter.  Excluding these significant items, the division generated a net
loss of $6.9 million. 
·         Assets under administration in Canada were $13.3 billion as at
September 30, 2012, up 2% from $13.1 billion at the end of the previous quarter
and down 9% from $14.6 billion at the end of fiscal Q2/12(1) 
·         Assets under management in Australia were $354 million at the end of
fiscal Q2/13(1) 
·         Assets under management in Canada (discretionary) were $784 million
as at September 30, 2012, up 11% from $709 million at the end of the previous
quarter and up 37% from $574 million at the end of fiscal Q2/12(1) 
·         As at September 30, 2012, Canaccord Wealth Management had 242
Advisory Teams(3), a decrease of 29 Advisory Teams from September 30, 2011 and
a decrease of 37 from June 30, 2012 
·         During the second quarter of Canaccord's fiscal year, Canaccord
announced a reduction to its Canadian wealth management platform.  As of
September 30, 2012, 32 wealth management offices were operating in Canada.  16
of these locations have now closed or are scheduled to close: 
·         Four corporately owned branches:  Victoria, Abbotsford, White Rock,
and London (ON) 
·         12 locations operating on the Independent Wealth Management (IWM)
platform:  Barrie, Brampton, Campbell River, Cobourg, Nanaimo(4), one office in
Ottawa(4), one office in Prince George, Quebec City, Saskatoon, Summerland,
Thunder Bay and Vernon(4) 
Canaccord Wealth Management (UK and Europe) 
·         Collins Stewart Wealth Management generated $20.7 million in revenue
and, after intersegment allocations, recorded net income of $0.3 million before
taxes in Q2/13 
·         This division recognized $0.9 million of acquisition costs related 
to
the purchase of Eden Financial Ltd.'s wealth management business and $1.6
million of amortization of intangible assets acquired in connection with the
acquisition of CSHP.  Excluding these significant items, Collins Stewart Wealth
Management recorded net income after intersegment allocations and before income
taxes of $2.8 million in Q2/13 
·         Assets under management (discretionary and non-discretionary) were
$13.1 billion (£8.3 billion) 
Subsequent Events 
·         On October 1, 2012, Canaccord completed its acquisition of Eden
Financial's wealth management business 
·         On October 1, 2012, Canaccord appointed Philip Evershed as Global
Head of Investment Banking 
·         On October 25, 2012, Canaccord Genuity Inc. (Canaccord's US capital
markets division) held a charity trading day, where designated commissions from
equity, electronic, and agency options trades on that day were donated to
Youth, I.N.C. In total, Canaccord's US team generated approximately US$950,000
for at-risk children through the seventh annual Trading Day for Kids. 
·         On November 6, 2012, Canaccord appointed Steve Buell as Global Head
of Research 
·         On November 7, 2012, Canaccord welcomed Dipesh Shah as a director on
the board of Canaccord Financial Inc. 
Non-IFRS Measures 
The non-International Financial Reporting Standards (IFRS) measures presented
include assets under administration, assets under management, book value per
diluted common share and figures that exclude significant items. Significant
items include restructuring costs, amortization of intangible assets, and
acquisition-related expense items, which include costs recognized in relation
to both prospective and completed acquisitions. Management believes that these
non-IFRS measures will allow for a better evaluation of the operating
performance of Canaccord's business and facilitate meaningful comparison of
results in the current period to those in prior periods and future periods.
Figures that exclude significant items provide useful information by excluding
certain items that may not be indicative of Canaccord's core operating results.
A limitation of utilizing these figures that exclude significant items is that
the IFRS accounting effects of these items do in fact reflect the underlying
financial results of Canaccord's business; thus, these effects should not be
ignored in evaluating and analyzing Canaccord's financial results. Therefore,
management believes that Canaccord's IFRS measures of financial performance and
the respective non-IFRS measures should be considered together. 
Selected financial information excluding significant items 


                                                                               
                                                                               
                                           Quarter                      YTD-   
                                           -over-                       over-  
                       Three months ended  quarter Six months ended     YTD    
                       September 30        change  September 30         change 


                                                                           
(C$ thousands, except    2012      2011              2012       2011           
% amounts)                                                                      
                                                                           
Total revenue per IFRS $ 186,599 $ 119,500 56.1%   $ 349,148  $ 279,283 25.0%   
                                                                           
Total expenses per       204,910   126,396 62.1%     391,958    270,430 44.9%  
IFRS                                                                            
                                                                           
Significant items                                                              
recorded in Canaccord                                                          
Genuity                                                                         
                                                                           
  Restructuring costs    4,395     -       n.m.      4,395      -       n.m.    
                                                                           
  Acquisition-related    388       1,443   (73.1)%   388        1,443   (73.1)%
  costs                                                                         
                                                                           
  Amortization of        3,436     930     269.5%    7,809      1,860   n.m.   
  intangible assets                                                             
                                                                           
Significant items                                                              
recorded in Canaccord                                                          
Wealth Management                                                               
                                                                           
  Restructuring costs    13,567    -       n.m.      13,567     -       n.m.    
                                                                           
  Acquisition-related    900       -       n.m.      900        -       n.m.   
  costs                                                                         
                                                                           
  Amortization of        1,614     -       n.m.      2,612      -       n.m.   
  intangible assets                                                             
                                                                           
Significant items                                                              
recorded in Corporate                                                          
and Other                                                                       
                                                                           
  Restructuring costs    900       -       n.m.      900        -       n.m.    
                                                                           
  Acquisition-related    -         1,513   (100.0)   -          1,513   (100.0)
  costs                                    %                            %       
                                                                           
Total significant        25,200    3,886   n.m.      30,571     4,816   n.m.   
items                                                                           
                                                                           
Total expenses           179,710   122,510 46.7%     361,387    265,614 36.1%  
excluding significant                                                          
items                                                                           
                                                                           
Net income  (loss)     $ 6,889   $ (3,010) n.m.    $ (12,239) $ 13,669  (189.5)
before tax - adjusted                                                   %       
                                                                           
Income taxes             982       (1,345) (173.0)   (1,851)    1,209   (253.1)
(recovery) - adjusted                      %                            %       
                                                                           
Net income (loss) -      5,907   $ (1,665) n.m.      (10,388)   $12,460 (183.4)
adjusted                                                                %       
                                                                           
Earnings (loss) per    $ 0.03    $ (0.05)  (160.0) $ (0.17)   $ 0.14    (221.4)
common share - basic,                      %                            %      
adjusted                                                                        
                                                                           
Earnings (loss) per    $ 0.03    $ (0.05)  (160.0) $ (0.17)   $ 0.13    (230.8)
common share -                             %                            %      
diluted, adjusted                                                               
                                                                            
n.m.: not meaningful 
Fellow shareholders: 
Over the past three years, we have been focused on constructing a strong,
comprehensive platform to cater to the increasingly global needs and
perspectives of our corporate, institutional and wealth management clients. Our
fiscal second quarter saw us advance this strategy with the announcement of a
number of key leadership appointments that drew from our deep bench strength,
as well as from world-class expertise outside our firm.  In addition, we have
undertaken a number of cost containment initiatives that, while difficult,
should allow us to improve margins in a very challenging macro operating
environment. 
In September, we were very pleased to welcome Alexis de Rosnay as CEO of our UK
and European operations and Peter O'Malley as CEO of Canaccord Genuity Asia. 
These two well-regarded executives made the decision to join Canaccord as a
result of the momentum we're building in these geographies, and we expect they
will be able to draw on their considerable global expertise on behalf of our
clients. 
To lead the efforts in advancing the global integration of our capital markets
team, we recently appointed Phil Evershed as Global Head of Investment Banking,
and Steve Buell as Global Head of Research. Their priorities will be focused on
enhancing our cross-border collaboration and standardizing global best
practices to enhance the value of the services we provide our clients. 
The second quarter also saw Canaccord Wealth Management address the losses
related to a number of small, consistently unprofitable corporate and
independent branches in Canada. In conjunction with the decision to reduce our
branch complement, we also reduced our back-office salary costs in Canada by
approximately 20% through staffing reductions. We expect to continue to reduce
our fixed costs in Canada during the balance of this fiscal year as we seek to
better align our cost structure with our market opportunities. 
In total, there were $25.2 million of significant expense items5 that were not
attributable to normal operating activities during the quarter. We are taking
these charges now, so that our businesses are better positioned to generate
stronger future performance. 
Financial Performance 
During the second quarter of Canaccord's fiscal year, the Company generated
$186.6 million of revenue, an increase of 15% from the previous quarter and 56%
from the same quarter last year.  Much of this increase can be attributed to
the expanded Canaccord operating platform.  On an operating basis, excluding
significant expense items related to activities taken in the quarter, Canaccord
generated net income of $5.9 million, or $0.03 per diluted common share. 
Including all significant expense items, the Company recorded a net loss of
$14.8 million, or $0.19 per share. 
Our operating results showed significant improvement compared to last
quarter, as a result of both revenue growth and the ongoing expense reduction
initiatives we're undertaking.  Excluding incentive compensation, which is
directly correlated to revenue, operating expenses decreased this quarter on
average by 12%.  And we were able to achieve this while growing revenue by
nearly 15%, or $24 million, in that same time frame. 
Canaccord Genuity 
Canaccord Genuity, our global capital markets division, recorded $119.0 million
of revenue during the second quarter, an increase of 18% compared to the
previous quarter and 71% compared to the same period last year.  Our principal
trading and investment banking activities generated a marked improvement, due
largely to enhanced performance from our US and UK operations.  In fact, our US
and UK businesses are beginning to build the kind of momentum we expected from
our acquisition of Collins Stewart Hawkpoint plc.  
We're particularly pleased that all of our geographies made meaningful
contributions to our capital raising activities this quarter, with sizable
transactions led on the Canadian, UK, Singapore and Australian exchanges.
Globally, Canaccord Genuity's investment banking team led or co-led 28
financing transactions during the quarter, raising approximately $1.1 billion
for our clients.  Our M&A and advisory practice also had another solid
contribution, generating $28.6 million in revenue during the quarter, and
continues to have an exceptionally strong pipeline.  
Wealth Management 
Our Canadian wealth management business continued to be affected by slower
market activity during the quarter, generating $35.8 million in revenue with
expenses of $47.4 million including a one time only charge of $13.6 million
related to a restructuring of that business unit. This led to a net loss before
tax of $20.8 million.  To strengthen the performance of this business, we are
in the process of implementing a new strategy to streamline and refocus our
operations in larger Canadian centres.  On September 24, we announced the
closing of four corporate and 12 independent underperforming branches, located
mostly in smaller communities.  This strategy will allow us to invest further
in core branches that have a strong market presence and have demonstrated
consistently profitable operations.  By removing loss-generating locations from
our Canadian wealth management platform, we're confident that we can
meaningfully improve the performance of this business.  While market conditions
in Canada remain subdued, we expect this business will operate at or near a
break-even basis.  Given stronger market conditions, we believe this business
can generate meaningful returns to our shareholders.  Most importantly, we
expect that these activities will allow our wealth management businesses to
operate more competitively within this dynamic economic environment. 
In the UK and Europe, Collins Stewart Wealth Management continued to provide
consistent returns to our business, generating $20.7 million in revenue and,
excluding acquisition-related expenses, $2.8 million of net income before tax. 
Importantly, fee-based activities contributed 62% of revenue generated by this
business in fiscal Q2/13, and assets under management continued to grow to
$13.1 billion.  
During the second quarter we strengthened our UK wealth management division
through the addition of Eden Financial's wealth management business.  This
complementary acquisition, which closed just after our fiscal second quarter,
added an additional $1.3 billion to assets under management and grew our UK
client base.  Eden continues to provide clients with the same high quality,
tailored services as before, but under the Canaccord umbrella. 
Looking Ahead 
In the months ahead, we will continue to be focused on cross-border
collaboration, to ensure that our clients and shareholders receive the full
value of our global offering.  While we're already building momentum in many of
the markets we operate in, we're confident that we can find even more
opportunities for clients by further integrating our capital markets operations
around the world.  We also believe that Canaccord Wealth Management can be a
positive contributor to the firm's profitability and we expect to make further
investments in that business as its performance improves. We plan to continue
to actively recruit, launch new products and services, and build out our
digital strategy to better serve our existing clients and reduce our costs. 
In summary, we expect market conditions will continue to be subdued over the
near term but we're confident our company is better positioned now to perform
in this environment.  While macroeconomic factors will continue to play a
significant role in the operating environment for our industry, we are focused
on growth - for our firm and for our clients.  
Kind regards,
Paul D. Reynolds, President & CEO
Canaccord Financial Inc. 
ACCESS TO QUARTERLY RESULTS INFORMATION 
Interested investors, the media and others may review this quarterly earnings
release and supplementary financial information at http://
www.canaccordfinancial.com/EN/IR/Pages/default.aspx. 
CONFERENCE CALL AND WEBCAST PRESENTATION 
Interested parties are invited to listen to Canaccord's second quarter fiscal
2013 results conference call with analysts and institutional investors, via a
live webcast or a toll free number. The conference call is scheduled for
Wednesday, November 7, 2012, at 2:30 p.m. (Pacific Time), 5:30 p.m. (Eastern
Time), 10:30 p.m. (UK Time), and at 6:30 a.m. (China Standard Time), and 9:30
a.m. (Australia EDT Time) on Thursday, November 8, 2012. At that time, senior
executives will comment on the results for the second quarter of the fiscal
2013 year and respond to questions from analysts and institutional investors. 
The conference call may be accessed live and archived on a listen-only basis
via the Internet at: www.canaccordfinancial.com/EN/NewsEvents/Pages/Events.aspx 
Analysts and institutional investors can call in via telephone at: 
·         647-427-7450 (within Toronto) 
·         1-888-231-8191 (toll free North America) 
·         0-800-051-7107 (toll free from the UK) 
·         1-800-760-620 (toll free from Ireland) 
·         0-800-917-449 (toll free from France) 
·         0-800-183-0171 (toll free from Germany) 
·         10-800-714-1191 (toll free from Northern China) 
·         10-800-140-1195 (toll free from Southern China) 
·         1-800-287-011 (toll free from Australia) 
Please request to participate in Canaccord Financial's Q2/13 earnings call. 
A replay of the conference call can be accessed after 5:30 p.m. (Pacific Time),
8:30 p.m. (Eastern Time) Wednesday, November 7, 2012, and after 1:30 a.m. (UK
Time), 9:30 a.m. (China Standard Time) and 12:30 p.m. (Australia EDT Time) on
Thursday, November 8, 2012 until December 26,, 2012 at 416-849-0833 or
1-855-859-2056 by entering passcode 47119586 followed by the pound (#) sign. 
ABOUT CANACCORD FINANCIAL INC.: 
Through its principal subsidiaries, Canaccord Financial Inc. is a leading
independent, full-service financial services firm, with operations in two
principal segments of the securities industry: wealth management and global
capital markets.  Since its establishment in 1950, Canaccord has been driven by
an unwavering commitment to building lasting client relationships. We achieve
this by generating value for our individual, institutional and corporate
clients through comprehensive investment solutions, brokerage services and
investment banking services.  Canaccord has offices in 12 countries worldwide,
including Wealth Management offices located in Canada, Australia, the UK and
Europe.  Canaccord Genuity, the international capital markets division,
operates in Canada, the US, the UK, France, Germany, Ireland, Italy, China,
Hong Kong, Singapore, Australia and Barbados. 
Canaccord Financial Inc. is publicly traded under the symbol CF on the TSX and
the symbol CF. on the London Stock Exchange. Canaccord Series A Preferred
Shares are listed on the TSX under the symbol CF.PR.A. Canaccord Series C
Preferred Shares are listed on the TSX under the symbol CF.PR.C. 
None of the information on Canaccord's websites at www.canaccordfinancial.com, 
www.canaccordgenuity.com, and www.canaccord.com should be considered           
incorporated herein by reference.                                               
                                                                            
______________________________ 
1 See Non-IFRS measures.                                                        
                                                                           
2 Source: Transactions over $1.5 million.  Internally sourced information.      
                                                                           
3 Advisory Teams are normally comprised of one or more Investment Advisors     
  (IAs) and their assistants and associates, who together manage a shared set  
  of client accounts.  Advisory Teams that are led by, or only include, an IA  
  who has been licensed for less than three years are not included in          
  our Advisory Team count, as it typically takes a new IA approximately three  
  years to build an average-sized book of business.                             
                                                                           
4 These locations were closed prior to November 7, 2012.                        
                                                                           
5 Significant expense items include restructuring costs, amortization of       
  intangible assets, and acquisition-related expense items.                     
                                                                            
SOURCE: Canaccord Financial Inc. 
For further information: 
North American media:
Scott Davidson
Executive Vice President, Global Head of Corporate Development & Strategy
Phone: 416-869-3875
Email: scott.davidson@canaccord.com  
London media:
Bobby Morse or Ben Romney
Buchanan Communications (London)
Phone: +44 (0) 207 466 5000
Email: bobbym@buchanan.uk.com  
Investor relations inquiries:
Jamie Kokoska
Vice President, Investor Relations & Communications
Phone: 416-869-3891
Email: jamie.kokoska@canaccord.com  
Joint Broker:
Oliver Hearsey or James Kelly
RBC Europe Limited
Phone: +44 (0) 20 7653 4000
Email: oliver.hearsey@rbccm.com 
Joint Broker:
Erick Diaz
Keefe, Bruyette & Woods Limited
Phone: +44 (0) 207 663 3162
Email: ediaz@kbw.com 

END 
-0- Nov/08/2012 07:00 GMT
 
 
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