GMP Capital Inc. reports first quarter 2014 results


    --  On an adjusted basis(1), net income of $5.4 million and diluted
        EPS of $0.07( )compared with net income of $1.1 million and
        diluted EPS of nil in the same period last year
    For further information about
     GMP Capital Inc., our results
     for first quarter 2014 and
     the meaning of certain
     references, this earnings
     release should be read in
     conjunction with our
     unaudited interim condensed
     consolidated financial
     statements as at and for the
     three months ended March 31,
     2014 (First Quarter 2014
     Financial Statements), and
     our management's discussion
     and analysis for the three
     months ended March 31, 2014
     (First Quarter 2014 MD&A),
     which can be accessed on our
     website at gmpcapital.com and
     on SEDAR at sedar.com. Unless
     otherwise indicated, all
     dollar amounts are expressed
     in Canadian dollars and have
     been taken from our First
     Quarter 2014 Financial
     Statements prepared in
     accordance with International
     Financial Reporting Standards
     (IFRS).

TORONTO, May 1, 2014  /CNW/ - GMP Capital Inc. (GMP) (TSX: GMP) today reported 
revenue of $63.9 million in first quarter 2014, up 31% compared with the same 
period a year ago.  GMP recorded net income of $2.7 million and diluted 
earnings per share (EPS) of $0.03 in first quarter 2014 compared with a net 
loss of $0.4 million and a diluted loss per share of $0.02 in first quarter 
2013. On an adjusted basis(1), net income was $5.4 million and diluted EPS was 
$0.07( )in first quarter 2014 compared with net income of $1.1 million and 
diluted EPS of nil in the same period last year.

"We are encouraged by this quarter's financial performance and pleased with 
operational developments.  Leading the way was higher investment banking 
revenue and improved trading activity in both Canada and the United States.  
Our businesses generated a 31% increase in revenues, our expansion into the 
U.S. energy sector is on track and our partners at Richardson GMP are already 
demonstrating the financial performance potential from increased scale," said 
Harris Fricker, Chief Executive Officer, GMP.

FINANCIAL HIGHLIGHTS

First Quarter 2014 versus First Quarter 2013
    --  Revenue of $63.9 million compared with $48.8 million
    --  Net income of $2.7 million compared with a net loss of $0.4
        million
    --  On an adjusted basis(1), GMP recorded net income of $5.4
        million and net income attributable to common shareholders of
        $4.9 million compared with net income of $1.1 million and net
        income attributable to common shareholders of $0.1 million
    --  Diluted EPS of $0.03 compared with a diluted loss per share of
        $0.02
    --  On an adjusted basis(1), diluted EPS was $0.07 compared with
        nil
    --  Return on common equity (ROE)(1) was 3.2% compared with
        negative 2.3%
    --  Adjusted ROE(1 )was 7.1% compared with 0.1%

Commenting further, Mr. Fricker said, "While we are optimistic that the growth 
momentum in the industry sectors we serve will be a catalyst for rising 
investor confidence and business activity, we remain cognizant of the risks 
and challenges still facing our industry."
       1. Considered to be a non-
     GAAP financial measure.
     This measure does not have
     any standardized meaning
     prescribed by generally
     accepted accounting
     principles (GAAP) under
     IFRS and is therefore
     unlikely to be comparable
     to similar measures
     presented by other
     issuers.  This data should
     be read in conjunction
     with the "Non-GAAP
     Measures" section at the
     end of this press release,
     which sets out the
     composition of the
     measures for the periods
     presented, and the
     "Presentation of Financial
     Information and Non-GAAP
     Measures" section in the
     First Quarter 2014 MD&A.

FIRST QUARTER 2014 BUSINESS SEGMENT HIGHLIGHTS

Capital Markets
    --  Revenue of $59.4 million - an increase of 41% compared with
        first quarter 2013 largely due to higher investment banking
        revenue and higher returns from principal transactions.
    --  Investment banking revenue of $29.6 million increased 36%
        compared with first quarter 2013 largely due to a 72% increase
        in equity underwriting revenue on the strength of robust
        activity in the Mining, Technology and Healthcare and Oil and
        Gas sectors. This increase was partly offset by decreased debt
        underwriting and advisory revenue.
    --  Principal transactions generated a net gain of $11.6 million in
        first quarter 2014 compared with a net gain of $4.6 million in
        first quarter 2013. This increase reflects improved returns on
        principal inventories, lower losses on client facilitation
        trading and an increase in client-related fixed income activity
        mainly in our U.S. operations, which generated net gains of
        $11.9 million in first quarter 2014 compared with net gains of
        $10.3 million in first quarter 2013.
    --  Commission revenue of $15.0 million in first quarter 2014
        increased 11% compared with first quarter 2013 which is
        consistent with higher industry-wide trading activity. This
        represents the strongest quarterly result since the fourth
        quarter of 2012.

Expenses of $51.4 million - an increase of 22% compared with first quarter 
2013 primarily reflecting a 40% increase in variable compensation, which was 
in-line with increased revenues.   Selling, general and administrative 
expenses increased $1.6 million or 15% compared with first quarter 2013 
largely due to higher transactional costs in support of the increased level of 
business activity this quarter.  First quarter 2013 expenses included $1.4 
million in pre-tax restructuring charges (2014 nil).

On an adjusted basis(1), income before income taxes was $8.4 million in first 
quarter 2014 compared with income before income taxes of $2.2 million in first 
quarter 2013.

GMP Securities L.P. highlights:
    --  Ranked first in Canada among independent dealers for the dollar
        value of M&A transactions announced during first quarter 2014.
        (Source: Mergermarket)
    --  Participated in 76 underwriting transactions completed in
        Canada during first quarter 2014, valued at $5.6 billion, of
        which we led or co-led 17 of these transactions valued at $0.8
        billion. (Source: Company reports)

Wealth Management
    --  The Wealth Management segment consists of GMP's non-controlling
        ownership interest in Richardson GMP Limited (Richardson GMP)
        and the financial results of GMP's asset management business,
        CQI Capital Management L.P. (CQI).
    --  Wealth Management reported a loss before income taxes of $1.6
        million in first quarter 2014 compared with income before
        income taxes of $1.5 million in first quarter 2013. The
        decrease primarily reflects our share of Richardson GMP's net
        loss attributable to common shareholders in first quarter 2014,
        which was adversely impacted by transaction costs recorded by
        Richardson GMP in connection with its acquisition of Macquarie
        Private Wealth Inc. (MPW Canada). GMP's proportionate share of
        these costs was $2.5 million in first quarter 2014.
    --  Lower investment management and fee income reflects a decrease
        in assets under management (AUM) at CQI following the sale of
        the majority of the advisory contracts relating to CQI's AUM to
        Fiera Capital Corporation during the second quarter of 2013
        (AUM sale transaction).
    --  Other income in first quarter 2013 included $1.4 million
        recognized by GMP on its preferred share investment in
        Richardson GMP following dividend declarations by Richardson
        GMP.

Expenses of $0.6 million - a decrease of 79% compared with first quarter 2013 
largely due to  reduced employee compensation and benefits as well as lower 
trailer fees at CQI subsequent the AUM sale transaction.

Richardson GMP highlights:

The following information sets forth an overview of the consolidated financial 
results of Richardson GMP for the periods indicated, on a 100% basis; noting, 
however, that GMP owns a 31.9% non-controlling interest of Richardson GMP as 
at March 31, 2014.
       --  Revenue of $79.5 million - an increase of 106% compared with
        first quarter 2013 primarily due to higher investment
        management and fee income commensurate with increased average
        assets under administration (AUA)(1).( )( )
    --  Adjusted EBITDA(1,2) of $13.3 million in first quarter 2014,
        nearly triple the $4.5 million recorded in first quarter 2013.
    --  AUA of $27.7 billion at March 31, 2014, up $12.5 billion or 83%
        from first quarter 2013.
    --  209 investment advisory teams at March 31, 2014, up from 115
        teams at the end of March 31, 2013.
    2. Considered to be a non-
     GAAP financial measure.
     This measure does not have
     any standardized meaning
     prescribed by generally
     accepted accounting
     principles (GAAP) under
     IFRS and is therefore
     unlikely to be comparable
     to similar measures
     presented by other issuers.
      This data should be read
      in conjunction with the
     "Supplemental Information"
     section at the end of this
     press release and in the
     First Quarter 2014 MD&A.

DIVIDENDS

On April 30, 2014, the board of directors of GMP (Board of Directors) declared 
a quarterly cash dividend of $0.05 per common share, and a quarterly cash 
dividend of $0.3438 per Cumulative 5-Year Rate Reset Preferred Share, Series 
B, each payable on June 30, 2014, to the respective shareholders of record on 
June 10, 2014.

NORMAL COURSE ISSUER BID RENEWAL

On April 30, 2014, the Board of Directors approved the renewal of GMP's normal 
course issuer bid, which has been accepted by the TSX (2014 NCIB).  The 2014 
NCIB program commences on April 30, 2014 and will terminate on April 29, 2015, 
or until such earlier date on which purchases under the 2014 NCIB have been 
completed. Under the 2014 NCIB program, GMP is authorized to purchase for 
cancellation up to 5,495,970 of its common shares, representing 10% of the 
public float as of April 25, 2014, by way of normal course purchases effected 
by GMP Securities L.P. through the facilities of the TSX and any other 
protected marketplace or alternative trading system in Canada.  As of April 
25, 2014, GMP had 74,231,281 common shares outstanding.

Purchases will be made by GMP in accordance with the requirements of the TSX 
and the price which GMP will pay for any such common shares will be the market 
price of any such common shares at the time of acquisition, or such other 
price as may be permitted by the TSX.  For purposes of the TSX rules, a 
maximum of 16,749 common shares may be purchased by GMP on any one day under 
the bid, except where purchases are made in accordance with the "block 
purchase exception" of the TSX rules. The daily repurchase limit represents 
25% of the average daily trading volume of 66,996 common shares of GMP for the 
six-month period ended March 31, 2014, excluding purchases made under the 
previously approved NCIB program during that period.

Under its previously approved NCIB program that expired on March 21, 2014, GMP 
purchased for cancellation 688,700 of its common shares at an average weighted 
purchase cost per share of $6.3131.  GMP has renewed the 2014 NCIB program 
because it believes that from time to time the market price of its common 
shares may be attractive and that at such times the purchase of common shares 
would be in the best interest of GMP and an appropriate use of corporate funds 
in light of potential benefits to shareholders.
    CONFERENCE CALL

A conference call and live audio webcast to discuss GMP's first quarter 2014 
results will be held this morning at 9:00 a.m. (EST). GMP executives will host 
the call followed by a question-and-answer session for analysts and 
institutional investors.  Interested parties are invited to access the 
quarterly conference call on a listen-only basis by dialing 416-644-3414 or 
1-800-814-4859 (toll free) or via live audio webcast at 
http://www.gmpcapital.com/investor. A recording of the conference call will be 
available until Thursday, May 8, 2014, by dialing 416-640-1917 or 
1-877-289-8525 (toll free) and entering access code 4675084#. The webcast will 
be archived at http://www.gmpcapital.com/investor.
    NON-GAAP MEASURES

Consistent with GMP's management framework, management uses certain measures 
to assess GMP's financial performance, which are not generally accepted 
accounting principle (GAAP) measures under IFRS. These measures do not have 
any standardized meaning prescribed by GAAP and are therefore unlikely to be 
comparable to similar measures presented by other issuers. Non-GAAP measures 
should not be considered as alternatives to net income or comparable metrics 
determined in accordance with IFRS as indicators of GMP's performance, 
liquidity, cash flows and profitability. For further information, refer to  
the "Presentation of Financial Information and Non-GAAP Measures" section in 
the First Quarter 2014 MD&A.

The table below provides a reconciliation of GMP's reported results to its 
adjusted measures:
       ($000, except as otherwise    Three
     noted)                       months
                                  ended
                                  March 31
    --------------------------    --------
                                  2014      2013
                                            ----
    Reported Results
    Income (loss) before income
     taxes                       4,961      (343)
    Income tax expense           2,234        79
    ------------------           -----       ---
    Net income (loss)            2,727      (422)
    Net income (loss)
     attributable to common
     shareholders                2,173    (1,476)
    Reported Measures
    Net income (loss) per
     common share (dollars):
    Basic                         0.03     (0.02)
    Diluted (1)                   0.03     (0.02)
    ROE (2)                        3.2%    (2.3)%
    ------                         ---     -----
    Pre-Tax Impact of
     Adjusting Items
    Share of associate's MPW
     Canada transaction costs    2,469         -
    Retention shares               451       998
    Restructuring costs              -     1,376
    Impact of adjusting items
     on income (loss) before
     income taxes                2,920     2,374
    -------------------------    -----     -----
    After-Tax Impact of
     Adjusting Items
    Share of associate's MPW
     Canada transaction costs    2,469         -
    Retention shares               252       558
    Restructuring costs              -       995
    Impact of adjusting items
     on net income (loss)        2,721     1,553
    Adjusted Results (2)
    Income before income taxes   7,881     2,031
    Net income                   5,448     1,131
    Net income attributable to
     common shareholders         4,894        77
    Adjusted Measures (2)
    Net income per common share
     (dollars):
    Basic                         0.07         -
    Diluted (1)                   0.07         -
    ROE                            7.1%      0.1%
    ---                            ---       ---
    1.     In the case of a net
     loss, the effect of Common
     Share options and warrants
     on diluted net loss per
     common share will be anti-
     dilutive; therefore, basic
     and diluted net loss per
     common share will be the
     same.
    2.     Return on common
     equity, adjusted results
     and adjusted measures are
     considered to be non-GAAP
     financial measures. These
     measures do not have any
     standardized meaning
     prescribed by GAAP under
     IFRS and are therefore
     unlikely to be comparable
     to similar measures
     presented by other
     issuers. The table above
     outlines our adjusted
     results and adjusted
     measures with their
     closest GAAP counterparts.

SUPPLEMENTAL INFORMATION

The following supplemental information reflects how management of Richardson 
GMP assesses the financial performance of Richardson GMP.

Supplemental Financial Information - Richardson GMP

Richardson GMP's management assesses performance on both a reported and an 
adjusted basis and considers both bases to be useful in assessing underlying, 
ongoing business performance. Presenting results on both bases also permits 
readers to assess the impact of specified items on financial results. 
Richardson GMP's management use certain measures to assess the financial 
performance of Richardson GMP that are not GAAP measures under IFRS. Adjusted 
EBITDA does not have any standardized meaning prescribed by GAAP and is 
therefore unlikely to be comparable to similar measures presented by other 
issuers. This Non-GAAP measure should not be considered as an alternative to 
net income or comparable metrics determined in accordance with IFRS as 
indicators of Richardson GMP's performance, liquidity, cash flows and 
profitability.  Richardson GMP's management believes adjusting results by 
excluding the impact of the specified items is more reflective of ongoing 
financial performance and cash generating capabilities and provides readers 
with an enhanced understanding of how management views Richardson GMP's core 
performance.  For further information, refer to the "Supplemental Information" 
section in the First Quarter 2014 MD&A.

The following table sets forth an overview of the consolidated financial 
results of Richardson GMP for the periods indicated, on a 100% basis; noting, 
however, that GMP owns a 31.9% non-controlling interest of Richardson GMP as 
at March 31, 2014.
    ($000, except as otherwise
     noted)                      Three months                %
                                  ended March
                                    31                    increase/
                                                        (decrease)
    ---                                                 ----------
                           2014      2013
                           ----      ----
    Revenue                        79,545      38,524            106
    Expenses                       82,138      36,580            125
    Employee compensation and
     benefits                      54,392      25,117            117
    Non-compensation expenses      27,746      11,463            142
    Net (loss) income -
     reported                      (2,593)      1,944        n.m.
    Pre-tax impact of
     adjusting items
    Interest                        1,740         397            338
    Depreciation and
     amortization                   1,348         839             61
    Transition assistance loan
     amortization                   3,506       1,123            212
    EBITDA                          4,001       4,303             (7)
    MPW Canada transaction
     costs                          7,740             -              n.m.
    Share-based compensation        1,544         204            657
    ------------------------        -----         ---            ---
    Adjusted EBITDA(1)             13,285       4,507            195
    Number of advisory teams          209         115             82
    AUA at period-end ($
     millions)(1)                  27,693      15,147             83
    --------------------           ------      ------            ---

n.m. = not meaningful


FORWARD-LOOKING INFORMATION  This press release contains "forward-looking 
information" as defined under applicable Canadian securities laws.   This 
information includes, but is not limited to, statements concerning our 2014 
objectives, our strategies to achieve those objectives, as well as statements 
made with respect to management's beliefs, plans, estimates, projections and 
intentions, and similar statements concerning anticipated future events, 
results, circumstances, performance or expectations that are not historical 
facts. Forward-looking information generally can be identified by the use of 
forward-looking terminology such as "outlook", "objective", "may", "will", 
"expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or 
"continue", or similar expressions suggesting future outcomes or events. Such 
forward-looking information reflects management's current beliefs and is based 
on information currently available to management. 
Forward-looking information is not a guarantee of future performance and is 
subject to numerous risks and uncertainties, including those described in this 
press release. GMP's primary business activities are both competitive and 
subject to various risks. These risks include market, credit, liquidity, 
operational and legal and regulatory risks and other risk factors including, 
without limitation: variation in the market value of securities, volatility 
and liquidity of equity and fixed income trading markets, volume of new 
financings and mergers and acquisitions (M&A), dependence on key personnel and 
sustainability of fees. Other factors, such as general economic conditions, 
including interest rate and exchange rate fluctuations, may also have an 
effect on GMP's results of operations. Many of these risks and uncertainties 
can affect GMP's actual results and could cause its actual results to differ 
materially from those expressed or implied in any forward-looking information 
disclosed by management or on its behalf.  For a description of additional 
risks that could cause our actual results to materially differ from our 
current expectations, see "Risk Management" in the First Quarter 2014 MD&A and 
"Risk Factors" in GMP's annual information form. These risks and uncertainties 
are not the only ones facing GMP together with its consolidated operations 
controlled by it and its predecessors (GMP Group).  Additional risks and 
uncertainties not currently known to us or that we currently consider 
immaterial may also impair the operations of the GMP Group.  Material 
assumptions or factors underlying the forward-looking information contained in 
this press release are set out in the "Business Environment and Market 
Outlook" section of the First Quarter 2014 MD&A and include, without 
limitation:Canadian economic conditions continuing to trend positively, 
accommodative monetary policy, gradual strengthening of economic fundamentals 
and emerging geo-political headwinds.  Although forward-looking information 
contained in this press release is based upon what management believes are 
reasonable assumptions, there can be no assurance that actual results will be 
consistent with this forward-looking information. Certain statements included 
in this press release may be considered a "financial outlook" for purposes of 
applicable Canadian securities laws, and as such the financial outlook may not 
be appropriate for purposes other than this press release. The forward-looking 
information contained in this press release is made as of the date of this 
press release, and should not be relied upon as representing GMP's views as of 
any date subsequent to the date of this press release. Except as required by 
applicable law, management and GMP's Board of Directors undertake no 
obligation to publicly update or revise any forward-looking information, 
whether as a result of new information, future events or otherwise. 
ABOUT GMP CAPITAL INC. GMP is a leading independent diversified financial 
services firm headquartered in Toronto, Canada, providing a wide range of 
financial products and services to a global client base that includes 
corporate clients, institutional investors and high-net-worth individuals in 
two integrated reporting segments. The Capital Markets segment provides 
investment banking, including advisory and underwriting services, 
institutional sales and trading and research through offices located in 
Toronto, Montreal, Calgary, New York, Houston, Connecticut, Miami, Dallas, 
London, Perth and Sydney.  The Capital Markets segment conducts its business 
through the following operating entities: GMP Securities L.P., GMP Securities, 
LLC, Griffiths McBurney Corp., GMP Securities Europe LLP and GMP Securities 
Australia Pty Limited. Wealth Management consists of GMP's non-controlling 
ownership interest in Richardson GMP Limited and the investment management and 
alternative investment products provided by CQI Capital Management L.P.  
Richardson GMP Limited is a full-service independent firm focused on providing 
exclusive and comprehensive wealth management and investment services 
delivered by an experienced team of investment professionals. GMP is listed on 
the Toronto Stock Exchange under the symbol "GMP". For further information, 
please visit our corporate website at gmpcapital.com.
 

SOURCE  GMP Capital Inc. 
GMP Capital Inc., Rocco Colella, Director, Investor Relations, 145 King Street 
West, Suite 300, Toronto, Ontario M5H 1J8, Tel: (416) 941-0894, Fax: (416) 
943-6175, rcolella@gmpcapital.com or investorrelations@gmpcapital.com 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/May2014/01/c2916.html 
CO: GMP Capital Inc.
ST: Ontario
NI: FIN ERN CONF  
-0- May/01/2014 10:00 GMT
 
 
Press spacebar to pause and continue. Press esc to stop.