GMP Capital Trust reports first quarter 2009 results



    
    -  First quarter revenue up 99% compared with fourth quarter 2008;
       down 28% compared with same period in 2008
    -  Net income of $7.1 million with basic earnings per unit of $0.12
    -  Benefitting from decisive actions taken in 2008
    

    TORONTO, May 8 /CNW/ - GMP Capital Trust ("GMP") (TSX: GMP.UN) today
reported revenue of $67.4 million in first quarter 2009, a decrease of 28%
compared with first quarter 2008. However, this reflects an increase of 99%
compared with fourth quarter 2008. GMP generated net income of $7.1 million in
first quarter 2009, a decrease of 66% compared with first quarter 2008, with
an annualized return on unitholders' equity ("ROE") of 13.4% for the quarter.
Distributable cash was $12.9 million ($0.21 per basic unit) in first quarter
2009, down from $26.2 million ($0.41 per basic unit) in the same period last
year.
    "We saw improved performance across most of our businesses this quarter
compared with the immediately preceding quarter and are pleased with our first
quarter 2009 results given the ongoing continued challenging market
conditions," said Kevin Sullivan, CEO, GMP Capital Trust. "Our results
demonstrate that we have begun to realize the benefits from the decisive
actions undertaken in 2008 and, we believe, we remain ideally situated in the
independent broker space in a strong competitive position to create value for
our unitholders". Commenting further, Mr. Sullivan said, "Although we remain
far from clear as to the extent and timing of a full recovery in the financial
markets, this quarter's results, coupled with a powerful market rally since
early March, are encouraging signs for the remainder of 2009."

    
    FINANCIAL HIGHLIGHTS

    First Quarter 2009 versus Fourth Quarter 2008

    -  Revenue of $67.4 million, up 99%

    -  Net income of $7.1 million compared with a net loss of $17.5 million

    -  Earnings per basic unit of $0.12 compared with a loss per basic unit
       of $0.29

    -  Annualized ROE of 13.4% compared with a negative ROE of 29.6%

    -  Distributable cash of $12.9 million ($0.21 per basic unit) compared
       with negative distributable cash of $5.4 million ($0.09 per basic
       unit)

    FINANCIAL HIGHLIGHTS

    First Quarter 2009 versus First Quarter 2008

    -  Revenue of $67.4 million, down 28%

    -  Net income of $7.1 million, down 66%

    -  Earnings per basic unit of $0.12 compared with earnings per basic unit
       of $0.33

    -  Annualized ROE of 13.4% compared with 29.2%

    -  Distributable cash of $12.9 million ($0.21 per basic unit) compared
       with $26.2 million ($0.41 per basic unit)

    FIRST QUARTER 2009 BUSINESS SEGMENT HIGHLIGHTS

    Capital Markets

    -  Revenue of $51.0 million, down 33% compared with first quarter 2008,
       primarily due to lower investment banking and lower sales and trading
       commission revenue

    -  Expenses of $36.8 million, down 26% compared with first quarter 2008,
       largely due to lower variable compensation commensurate with decreased
       business activity

    -  Operating earnings of $14.2 million, down 47% compared with first
       quarter 2008, largely due to lower revenue generation

    -  Investment banking revenue of $28.2 million, down 46% compared with
       first quarter 2008, reflective of the ongoing difficult market
       conditions

    -  Non-resource sectors generated 39% of total investment banking revenue
       in the period

    -  Sales and trading commission income of $17.1 million, down 29%
       compared with first quarter 2008, primarily due to lower trading
       volumes executed on behalf of our clients

    -  Gains of $0.3 million in client facilitation trading compared with
       facilitation losses equal to 31% of gross commissions in first quarter
       2008 and 56% in fourth quarter 2008

    -  Gains of $2.4 million recorded in principal activities compared with a
       loss of $5.2 million in the same period in 2008

    -  Ranked No. 2 in block trading volume on the Toronto Stock Exchange
       with a 8.9% market share(1)

    -  Led or co-led 13 deals raising in aggregate $900 million

    Wealth Management

    -  Revenue of $9.7 million, down 28% compared with first quarter 2008,
       reflecting lower interest income on tightening spreads and reduced
       client activity in light of ongoing uncertain markets

    -  Expenses of $11.5 million, down 17% compared with first quarter 2008
       largely due to lower employee compensation and benefits expenses and
       lower interest expense recorded on client balances due to the lower
       interest rate environment

    -  Operating deficit of $1.8 million in first quarter 2009 compared with
       a $0.4 million operating deficit in the same period a year ago largely
       due to lower revenue generation

    -  AUA decreased by $1.2 billion compared with first quarter 2008; ending
       the quarter at $3.4 billion primarily due to a decline in the market
       value of client securities under administration as a consequence of
       declining equity prices

    Alternative Investments

    -  Revenue of $8.2 million, up 47% million compared with first quarter
       2008, largely reflecting unrealized gains in principal activities, fee
       revenue earned by GMP Investment Management, for which no comparable
       period exists in 2008, and higher management fee income earned by
       EdgeStone

    -  Expenses of $4.6 million, up 6% compared with first quarter 2008,
       largely due to incremental operating expenses associated with GMP
       Investment Management

    -  Operating earnings of $3.6 million, up 190% compared with first
       quarter 2008, primarily reflecting higher results from principal
       activities

    -  EdgeStone earned management fee income and received general partner
       distributions based on total capital of $1.1 billion as at March 31,
       2009

    -  The GMP Diversified Alpha Fund (Class F) generated a return for the
       three months ended March 31, 2009, of 8.10%, net of management fees
       and other expenses. The GMP Diversified Alpha Master Fund, Ltd.,
       manages approximately $170.1 million in assets as at March 31, 2009

    -  EdgeStone received a $20.0 million commitment in Venture Fund III from
       the Ontario Venture Capital Fund, a joint venture between the
       Government of Ontario and leading institutional investors to invest
       primarily in Ontario-based venture capital and growth equity funds
       that support innovative, high growth companies
    

    OTHER

    For further information about GMP, our results for first quarter 2009 and
the meaning of certain references, this press release should be read in
conjunction with the unaudited interim consolidated financial statements for
first quarter 2009 and GMP's Management's Discussion and Analysis for first
quarter 2009, which can be accessed on GMP's website at gmpcapitaltrust.com
and on SEDAR at sedar.com.

    CONFERENCE CALL

    Management will host a conference call and live audio webcast today at
10:00 a.m. (ET) to discuss GMP's first quarter ended March 31, 2009. The call
may be accessed by dialing 416-644-3416 or 1-800-733-7560. The link to the
live audio webcast will be accessible at gmpcapitaltrust.com. A replay of the
conference call can be accessed by telephone until Friday, May 15, 2009, by
calling 416-640-1917 or 1-877-289-8525 (toll free) and entering access code
21302015 followed by the number sign.

    ABOUT GMP CAPITAL TRUST

    GMP Capital Trust carries on business through the following principal
entities: GMP Securities L.P., Griffiths McBurney Corp., GMP Securities Europe
LLP, GMP Private Client L.P., EdgeStone Capital Partners, L.P. and GMP
Investment Management L.P. GMP Securities L.P. is a leading independent
Canadian investment dealer focused on investment banking and institutional
equities for corporate clients and institutional investors. GMP Securities
L.P. can be found on the web at gmpsecurities.com. Griffiths McBurney Corp.
services institutional clients in the United States while GMP Securities
Europe LLP provides investment banking and institutional equity services to
clients located in Europe. GMP Private Client L.P. is a full-service
investment firm focused on high-net-worth private investors that provides
wealth preservation, income and growth strategies delivered by seasoned
investment advisors. GMP Private Client L.P. can be found on the web at
gmpprivateclient.com.

    EdgeStone Capital Partners, L.P. is one of Canada's leading private
equity firms, providing capital, strategic direction and business and
financial advice to help promising mid-market and early stage companies
achieve their full potential. EdgeStone Capital Partners, L.P. can be found on
the web at edgestone.com. GMP Investment Management L.P., through its private
funds, seeks to generate superior risk-adjusted investment returns over the
long term by executing selected investment strategies. GMP Investment
Management L.P.'s offerings are aimed at both high-net-worth individuals and
institutional investors. GMP Capital Trust is listed on the Toronto Stock
Exchange under the symbol GMP.UN and can be found on the web at
gmpcapitaltrust.com. GMP Capital Trust has offices in Toronto, Calgary,
Montreal, Vancouver and London, England.

    FORWARD-LOOKING STATEMENTS

    This press release may contain "forward-looking statements" (as defined
under applicable securities laws) concerning anticipated future events,
results, circumstances, performance or expectations that are not historical
facts but instead represent our beliefs, expectations, estimates and
projections regarding future events, many of which, by their nature, are
inherently uncertain and beyond our control. These statements include, but are
not limited to, statements made with respect to management's beliefs, plans,
estimates, and intentions, and similar statements concerning anticipated
future events, results, circumstances, performance or expectations that are
not historical facts. Forward-looking statements 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 statements reflect management's
current beliefs and are based on information currently available to
management.
    These statements are not guarantees of future performance and are 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, variations in the market value of securities, the volatility and
liquidity of equity trading markets, the volume of new financings and mergers
and acquisitions, competition in the marketplace for suitable investments,
sustainability of fees, nature and type of portfolio company investments,
ability to realize carried interest entitlements and dependence on key
personnel. Other factors, such as general economic conditions, including
exchange rate fluctuations, may also have an effect on GMP's results of
operations. Many of these risks and uncertainties can affect our actual
results and could cause our actual results to differ materially from those
expressed or implied in any forward-looking statement made by us or on our
behalf. For a description of risks that could cause our actual results to
materially differ from our current expectations, please see the "Risk
Management" section in GMP's 2008 Annual MD&A and "Risk Factors" in GMP's
annual information form dated February 26, 2009. Material factors or
assumptions that were applied to drawing a conclusion or making an estimate
set out in the forward-looking information include: the impact of persistent
concerns over the stability of the global financial system, fragile investor
confidence, continued difficult liquidity conditions and high but falling
equity market volatility on the level of public offerings, merger and
acquisition activity and securities trading; weaker general economic activity
in Canada; a change in the market value of securities and certain commodity
prices; a continued slowdown in the United States' economy leading to a
decreased demand for Canadian exports to the United States; and a weak
Canadian dollar relative to the United States dollar. For other factors or
assumptions applied see the "Business Environment and Market Outlook - Market
Outlook" section included in GMP's 2008 Annual MD&A. 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 these forward-looking statements. Certain
statements included in this press release may be considered "financial
outlook" for purposes of applicable securities laws, and as such the financial
outlook may not be appropriate for purposes other than this press release.

    
    -------------------------------------------------------
    (1) Source: CanadaEquity.com as at April 8, 2009.
    





For further information:

For further information: GMP Capital Trust, Rocco Colella, Director,
Investor Relations, 145 King Street West, Suite 300, Toronto, Ontario, M5H
1J8, Tel: (416) 941-0894, Fax: (416) 943-6175, rcolella@gmpsecurities.com;
alternatively: investorrelations@gmpsecurities.com


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