GMP Capital Trust reports record 2007 results; Fourth quarter earnings per unit of $0.38



    TORONTO, Feb. 28 /CNW/ - GMP Capital Trust (the "Fund") today reported
record revenue of $473.9 million in fiscal 2007, representing a year-over-year
increase of 32.6%. Net income was $146.1 million, an increase of 21.8% from
fiscal 2006, while the Fund generated a return on unitholders' equity ("ROE")
of 48.9% for the year. Distributable cash was $171.7 million ($2.73 per basic
unit) in fiscal 2007, up from $131.5 million ($2.20 per basic unit) in fiscal
2006.
    Fourth quarter 2007 revenue was $101.5 million, representing a 2.1%
decline from the same period a year ago. Net income was $23.8 million
($0.38 per basic unit), down $6.7 million from fourth quarter 2006, generating
an annualized ROE of 31.1% in fourth quarter 2007. Distributable cash was
$29.3 million ($0.46 per basic unit) in fourth quarter 2007 compared with
$36.0 million in the same period last year.
    "Business activity in the fourth quarter reflected the conservative
stance adopted by investors generally in the face of an uncertain economic
outlook which resulted in highly volatile market conditions. I am impressed
with our performance this quarter, given the market environment. Through the
dedication and commitment of our people and the opportunities that our clients
have made available to us, we delivered solid financial results in these
turbulent markets," said Kevin Sullivan, Chief Executive Officer.

    
    Fiscal 2007 versus Fiscal 2006

    -   Record revenue of $473.9 million, up 32.6%
    -   Record net income of $146.1 million, up 21.8%
    -   Earnings per basic unit of $2.32, up 15.4%
    -   ROE of 48.9% compared with 52.3%
    -   Distributable cash of $171.7 million ($2.73 per basic unit), up 30.6%
        from $131.5 million ($2.20 per basic unit)
    -   Payout ratio of 80.3%, down from 88.4%

    Fourth Quarter 2007 versus Fourth Quarter 2006

    -   Revenue of $101.5 million, down 2.1%
    -   Net income of $23.8 million, down 22.2%
    -   Earnings per basic unit of $0.38 per basic unit, down 22.4%
    -   Annualized ROE of 31.1% compared with 44.6%
    -   Distributable cash of $29.3 million ($0.46 per basic unit) compared
        with $36.0 million ($0.58 per basic unit)

    Distribution to Unitholders

    -   Paid a special cash distribution of $0.65 per unit to unitholders of
        record on December 31, 2007
    -   Increased monthly distributions to $0.14 per unit starting with the
        November 2007 distribution, up from $0.125 per unit
    

    For further information about GMP Capital Trust, our results for fiscal
    2007 and the meaning of certain references, this press release should be
    read in conjunction with our 2007 Annual Audited Consolidated Financial
    Statements and the Fund's Management's Discussion and Analysis for the
    year ended December 31, 2007, which can be accessed on our website at
    gmpcapitaltrust.com and on SEDAR at sedar.com.

    Commenting further on fiscal 2007 results, Mr. Sullivan said, "This past
year, we made several enhancements to our capabilities to provide a more
diversified service and product offering to our clients. I am pleased with the
progress we have made in all of our business segments, including the expansion
of our European capabilities through GMP Europe and the development of
innovative investment products for institutional clients and high net worth
individuals with the establishment of GMP Investment Management and GMP
Insurance. Over the past several months, we have built our GMP Europe and GMP
Investment Management platforms, establishing the infrastructure, obtaining
the necessary regulatory approvals and establishing the client relationships
necessary to operate and grow these businesses. Our vision of building an
organization one relationship at a time, our continued execution of our growth
strategies and the development of additional investment products positions us
very well to serve our clients and unitholders in this challenging business
environment. Despite the challenges posed by continued market volatility, we
will continue to strategically invest in our businesses for the long term and
remain committed to our clients and our role in contributing to their
success."

    
    Fiscal 2007 Business Highlights of the Fund Group

    Capital Markets

    -   For the third consecutive year, ranked number one in Canada for block
        trading volumes on the Toronto Stock Exchange, achieving a
        12.4% market share

    -   Led or co-led 61 common equity underwritings completed in Canada that
        raised approximately $3.5 billion

    -   Acted as financial advisor on approximately US$9.4 billion of
        M&A transactions announced in Canada

    -   Continued to expand our European capabilities through GMP Europe,
        which achieved revenue of $14.1 million in fiscal 2007

    -   Obtained Financial Services Authority regulatory approvals for
        GMP Europe as a "Limited Activity Firm" on February 1, 2008 and
        opened a new office in London, England to more effectively serve our
        European clients

    -   Acquired the remaining 49.9% ownership interest of our representative
        office in Geneva, Switzerland in August 2007, creating the
        opportunity to provide a more integrated service offering to our
        European clients

    Wealth Management

    -   Hired eight new investment advisory teams, reaching a total of
        35 advisory teams

    -   Increased GMP Private Client assets under administration ("AUA") to
        $4.4 billion, up $1.1 billion from a year ago, with approximately
        $1.0 billion invested in investment management fee-based programs

    -   Launched GMP Insurance, providing clients access to a broad range of
        insurance solutions

    -   Achieved net income of $1.0 million in 2007 and declared its first
        cash distribution to holders of Class A and Class B partner units of
        GMP Private Client as at December 31, 2007

    Alternative Investments

    -   Equity Fund III invested $145.3 million during the year in three
        diverse and attractive investment opportunities

    -   Received Ontario Securities Commission approval for GMP Investment
        Management as an Investment Counsel and Portfolio Manager in
        December 2007
    

    -------------------------------------------------------------------------
    FINANCIAL PERFORMANCE

    FISCAL 2007 VERSUS FISCAL 2006
    -------------------------------------------------------------------------

    Record revenue of $473.9 million was achieved in fiscal 2007, an increase
of $116.6 million (or 32.6%) compared with fiscal 2006. This increase reflects
solid contributions from all of our businesses, notwithstanding the
challenging market conditions that prevailed during the latter part of 2007.
Capital Markets revenue reached a record $399.5 million in fiscal 2007, an
increase of $82.4 million compared with last year largely driven by record
results in sales and trading and investment banking revenue, and the inclusion
of gains from the sale of our shares of Montreal Exchange Inc. Wealth
Management continued to experience strong revenue growth reporting revenue of
$53.3 million, representing an increase of $21.8 million (or 69.5%).
Alternative Investments reported revenue of $24.7 million in fiscal 2007
compared with $12.6 million last year due primarily to the inclusion of
EdgeStone's results for six months in the comparable period, since its
acquisition in July 2006.
    Expenses were $308.5 million in fiscal 2007, representing an increase of
$82.3 million (or 36.4%) compared with fiscal 2006. This increase reflects
higher employee compensation and benefits expenses of $52.9 million, largely
due to higher variable compensation of $38.5 million. Higher non-compensation
related costs of $29.4 million also contributed to the increase. Increased
levels of business activity in Capital Markets and increased spending in
support of growth in Wealth Management were primary contributors to the
increase. Costs associated with GMP Europe operations, which commenced in
January 2007 and the inclusion of EdgeStone's results for six months in the
comparable period also contributed to the increase in compensation and
non-compensation related costs.
    Net income was $146.1 million ($2.32 per basic unit) in fiscal 2007,
representing a 21.8% increase over last year. ROE was 48.9% in fiscal 2007
compared with 52.3% in fiscal 2006. Distributable cash was $171.7 million
($2.73 per basic unit) in fiscal 2007, an increase from $131.5 million
($2.20 per basic unit) in fiscal 2006.

    -------------------------------------------------------------------------
    FOURTH QUARTER 2007 VERSUS FOURTH QUARTER 2006
    -------------------------------------------------------------------------

    Fourth quarter 2007 revenue was $101.5 million, representing a decrease
of 2.1% from the same period a year ago. Despite significant equity market
volatility in fourth quarter 2007, revenue generation was fairly strong.
Capital Markets reported declines in investment banking revenue and in its
principal activities compared with record advisory revenue achieved in the
comparable period in 2006, which were partly offset by higher commission and
interest revenue. Wealth Management reported continued revenue growth while
revenue in Alternative Investments was unchanged from the same period last
year.
    Expenses increased $5.7 million (or 8.3%) in fourth quarter 2007, largely
driven by increased non-compensation related expenses which were $4.7 million
higher than fourth quarter 2006. Non-compensation related expenses increased
largely due to higher charitable donations, increased transaction-related
expenses in Capital Markets and Wealth Management and higher interest expenses
associated with higher client-related cash balances in Wealth Management. The
increase in expenses also reflects the incremental costs associated with the
commencement of operations of GMP Europe in January 2007.
    Net income in fourth quarter 2007 was $23.8 million (or $0.38 per basic
unit) compared with net income of $30.6 million (or $0.49 per basic unit) in
the same period last year. Annualized ROE was 31.1% compared with 44.6% in
fourth quarter 2006. Distributable cash was $29.3 million ($0.46 per basic
unit) in fourth quarter 2007 compared with $36.0 million ($0.58 per basic
unit) in fourth quarter 2006.

    -------------------------------------------------------------------------
    BUSINESS SEGMENT FINANCIAL PERFORMANCE - FOURTH QUARTER 2007 VERSUS
    FOURTH QUARTER 2006

    CAPITAL MARKETS
    -------------------------------------------------------------------------

    Fourth quarter 2007 revenue was $81.3 million, representing a decrease of
$5.9 million (or 6.8%) largely reflecting lower advisory revenue compared with
record advisory revenue achieved in fourth quarter 2006. The decline in
advisory revenue was partially offset by higher equity underwriting and sales
and trading commission revenue.
    Advisory revenue of $11.4 million for fourth quarter 2007 was
$13.5 million lower than the same period last year. Equity underwriting
revenue of $38.2 million was $8.0 million higher than fourth quarter 2006 due
to higher activity in the mining, technology and industrials sectors as we led
or co-led an increased number of transactions in these sectors. GMP Securities
led or co-led 18 common equity transactions in fourth quarter 2007, up 20.0%
from fourth quarter 2006 and ranked first among Canadian investment dealers in
the dollar value of common equity issuance during fourth quarter 2007(1). GMP
Securities acted as financial advisor on four M&A transactions with an
aggregate total value of $788.8 million, down from $1,814.3 million in fourth
quarter 2006, which included a large transaction valued at US$1.5 billion in
our industrials and special situations sector(2).
    Sales and trading commissions increased $1.7 million (or 6.9%) to
$26.4 million in fourth quarter 2007 compared with the same period last year,
largely reflecting continued global demand for Canadian resource-based
equities and a 13.2% increase in trading volumes on the TSX in fourth quarter
2007. Facilitation losses, as a percentage of gross commission revenue, were
24.1% in fourth quarter 2007, up 11.1% from the same period in 2006. The
higher rate of facilitation losses were primarily attributable to volatile
markets and difficult liquidity conditions experienced in the Canadian equity
markets during fourth quarter 2007. GMP Securities ranked number one in equity
block trading volumes on the TSX in fourth quarter 2007 with a market share of
12.3%, up from 11.1% a year ago(3).
    Revenue from principal activities decreased $3.2 million to $0.1 million
largely due to prior year gains recorded on broker warrants and other
securities acquired incidental to our core business activity.
    Employee compensation and benefits expenses for fourth quarter 2007
decreased $1.2 million largely due to lower variable compensation commensurate
with decreased business performance. These decreases were partly offset by
increased fixed salaries and benefits expenses, which included $0.9 million in
restructuring costs. Variable incentive-based compensation as a percentage of
revenue remained virtually unchanged at 38.9% in fourth quarter 2007 compared
with 39.8% in fourth quarter 2006.
    Non-compensation expenses increased $3.8 million primarily due to higher
transaction-related expenses arising from increased trade volumes, the
inclusion of $1.0 million in incremental costs associated with GMP Europe
operations and increased charitable donations, which were $0.8 million higher
than fourth quarter 2006.
    For fourth quarter 2007, Capital Markets recorded income before income
taxes and non-controlling interest of $30.9 million, down $8.5 million from a
year ago.

    -------------------------------------------------------------------------
    WEALTH MANAGEMENT
    -------------------------------------------------------------------------

    Fourth quarter revenue of $14.9 million represented an increase of
$3.9 million (or 35.8%) compared with fourth quarter 2006, reflecting
continued growth in commission and fee-based revenue. The business continues
to benefit from the successful execution of its growth strategy and the
growing contribution from its existing investment advisory teams. Despite
challenges in the financial markets during fourth quarter 2007, the growth in
client accounts remained strong. As at December 31, 2007, managed assets were
$1.0 billion. GMP Private Client now manages $4.4 billion in AUA, an increase
of $1.1 billion (or 34.8%) from a year ago. During the quarter, nearly
$200 million in new client assets were added.
    Three new advisory teams were added during fourth quarter 2007, bringing
the total number of advisory teams in the Wealth Management segment to 35 as
at December 31, 2007, an increase of eight advisory teams from a year ago. The
recruiting pipeline remains strong and we expect the momentum to continue into
2008, as we leverage the strength of a solid and growing presence in existing
markets in Toronto, Montreal, Calgary and Vancouver to establish branches in
new locations. During fourth quarter 2007, GMP Private Client implemented
several new technological tools to improve the investment advisor's ability to
provide an enhanced client experience.
    Expenses of $14.7 million increased $4.4 million (or 42.2%) compared with
fourth quarter 2006. Employee compensation and benefits expenses increased
$2.5 million from the comparable period in 2006 largely reflecting higher
variable compensation commensurate with business performance and an increased
number of investment advisory teams compared with the same period a year ago.
Variable compensation, excluding management and staff bonuses, as a percentage
of commission and fee-based revenues was 51.5% in fourth quarter 2007 compared
with 50.7% a year ago. The increased fixed salaries and benefits expense
reflects additional administrative staff in support of the increased number of
investment advisors. Non-compensation related expenses increased $1.9 million
compared with a year ago due to higher transactional related charges arising
from increased levels of business activity, incremental operating costs in
connection with the establishment of the Montreal office and increased branch
infrastructure costs.
    Wealth Management reported income before income taxes and non-controlling
interest of $0.2 million for fourth quarter 2007 compared with $0.6 million in
fourth quarter 2006. In fourth quarter 2007, GMP Private Client declared its
first cash distribution of $0.0054 per unit to holders of Class A and Class B
limited partner units of GMP Private Client of record as at December 31, 2007.
The cash distribution is expected to be paid in early 2008 and represents
excess distributable cash generated by GMP Private Client in fiscal 2007.

    -------------------------------------------------------------------------
    ALTERNATIVE INVESTMENTS
    -------------------------------------------------------------------------

    Following the establishment of GMP Investment Management in December
2007, we revised our segmentation by adding an Alternative Investments
business segment. In 2007, this segment included the operating business of
EdgeStone and in 2008 will also include GMP Investment Management. GMP
Investment Management will provide investment management services through an
alternative investment products offering primarily through private funds.
GMP Investment Management plans to launch its first fund, GMP Diversified
Alpha Fund, in early 2008.
    Alternative Investments reported revenue of $6.3 million in fourth
quarter 2007 comprised primarily of fee-based revenue earned by EdgeStone
through its management of the EdgeStone Funds.
    Expenses for fourth quarter 2007 were $4.3 million, representing an
increase of 5.6% compared with fourth quarter 2006. Non-compensation expenses
decreased moderately in fourth quarter 2007 compared with fourth quarter 2006
while employee compensation and benefits were 15.8% higher largely due to
increased variable compensation.
    Alternative Investments reported income before income taxes and
non-controlling interest of $1.9 million compared with $2.2 million in fourth
quarter 2006.

    -------------------------------------------------------------------------
    DISTRIBUTABLE CASH AND DISTRIBUTIONS
    -------------------------------------------------------------------------

    Excluding the $0.65 per unit special cash distribution paid on
January 18, 2008 to unitholders of record as at December 31, 2007, the Fund's
payout ratio was 87.7% in fourth quarter 2007. The $0.65 per unit special cash
distribution represented excess distributable cash arising from the Fund's
financial performance for fiscal 2007. Cash available for distribution in
fourth quarter 2007 was $29.3 million, a decrease of $6.7 million from fourth
quarter 2006, primarily due to a decline in earnings in Capital Markets in
fourth quarter 2007 compared with the same period a year ago. Commencing with
the distribution paid to unitholders on December 20, 2007, the Fund increased
its monthly distribution to $0.14 per unit from $0.125 per unit.
    For further discussion on the Fund's distributable cash and distributions
please see the discussion under "Distributable Cash and Distributions" in the
Fund's 2007 Annual MD&A and "Risk Factors - Risks Related to the Fund Units -
Cash Distributions" in the Fund's Annual Information Form dated February 27,
2008.

    -------------------------------
    (1) Source: FPinfomart as at February 1, 2008. Data is ranked by value of
    completed transactions and is presented on a "Full Credit to Book" basis
    whereby the entire transaction value is allocated to the bookrunner. For
    these purposes, "equity" includes the following: private placements with
    a $1.5 million minimum; special warrants, irrespective of whether the
    issuer has received the total proceeds; common shares and units;
    convertible debt; and exercise of over-allotment option of original
    transaction launched during the period reported on. For these purposes,
    "equity" excludes the following: preferred shares, preferred hybrids,
    income trusts, rights offerings, and other derivatives.
    (2) Source: Bloomberg as at February 6, 2008. Data contains announced
    transactions based in Canada in the specified period; includes target or
    seller and acquirer.
    (3) Source: CanadaEuity.com as at February 1, 2008.

    -------------------------------------------------------------------------
    GMP CAPITAL TRUST - UNAUDITED SEGMENT FINANCIAL RESULTS
    -------------------------------------------------------------------------

    For further details relating to segmented information see Note 25 to the
2007 Annual Financial Statements.

    
    -------------------------------------------------------------------------
    CAPITAL MARKETS
    -------------------------------------------------------------------------
                                                         Fourth       Fourth
                                                        Quarter      Quarter
                                                           2007         2006
    -------------------------------------------------------------------------
    ($000, except otherwise noted)
    -------------------------------------------------------------------------
    Revenue                                              81,325       87,257
    -------------------------------------------------------------------------
      Investment banking                                 49,638       55,205
    -------------------------------------------------------------------------
      Commission income                                  26,442       24,739
    -------------------------------------------------------------------------
      Principal activities                                  (51)       3,376
    -------------------------------------------------------------------------
      Interest income                                     4,192        3,106
    -------------------------------------------------------------------------
      Other income                                        1,104          831
    -------------------------------------------------------------------------
    Expenses                                             50,384       47,787
    -------------------------------------------------------------------------
      Employee compensation and benefits                 39,492       40,661
    -------------------------------------------------------------------------
      Selling, general and administrative                 9,363        6,112
    -------------------------------------------------------------------------
      Interest                                            1,065          596
    -------------------------------------------------------------------------
      Amortization                                          464          418
    -------------------------------------------------------------------------
    Income before income taxes and non-controlling
     interest                                            30,941       39,470
    -------------------------------------------------------------------------
    Number of employees (No.)                               259          228
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    WEALTH MANAGEMENT
    -------------------------------------------------------------------------
                                                         Fourth       Fourth
                                                        Quarter      Quarter
                                                           2007         2006
    -------------------------------------------------------------------------
    ($000, except otherwise noted)
    -------------------------------------------------------------------------
    Revenue                                              14,886       10,961
    -------------------------------------------------------------------------
      Commission income                                   7,464        5,739
    -------------------------------------------------------------------------
      Investment management and fee income                4,046        2,944
    -------------------------------------------------------------------------
      Interest income                                     3,213        2,166
    -------------------------------------------------------------------------
      Other income                                          163          112
    -------------------------------------------------------------------------
    Expenses                                             14,702       10,336
    -------------------------------------------------------------------------
      Employee compensation and benefits                  8,650        6,232
    -------------------------------------------------------------------------
      Selling, general and administrative                 3,280        2,171
    -------------------------------------------------------------------------
      Interest                                            2,231        1,452
    -------------------------------------------------------------------------
      Amortization                                          541          481
    -------------------------------------------------------------------------
    Income/(loss) before income taxes and
     non-controlling interest                               184          625
    -------------------------------------------------------------------------
    Number of employees (No.)                               123           91
    -------------------------------------------------------------------------
    Number of investment advisors (No.)                      50           38
    -------------------------------------------------------------------------
    Number of advisory teams (No.)                           35           27
    -------------------------------------------------------------------------
    Assets under administration ($millions)               4,393        3,258
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    ALTERNATIVE INVESTMENTS
    -------------------------------------------------------------------------
                                                         Fourth       Fourth
                                                        Quarter      Quarter
                                                           2007         2006
    -------------------------------------------------------------------------
    ($000, except otherwise noted)
    -------------------------------------------------------------------------
    Revenue                                               6,254        6,268
    -------------------------------------------------------------------------
      Investment management and fee income                5,844        6,108
    -------------------------------------------------------------------------
      Interest income                                       107           49
    -------------------------------------------------------------------------
      Other income                                          303          111
    -------------------------------------------------------------------------
    Expenses                                              4,308        4,081
    -------------------------------------------------------------------------
      Employee compensation and benefits                  2,975        2,569
    -------------------------------------------------------------------------
      Selling, general and administrative                 1,224        1,417
    -------------------------------------------------------------------------
      Interest                                               50            6
    -------------------------------------------------------------------------
      Amortization                                           59           88
    -------------------------------------------------------------------------
    Income before income taxes and non-controlling
     interest                                             1,946        2,188
    -------------------------------------------------------------------------
    Number of employees (No.)                                38           34
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    CORPORATE
    -------------------------------------------------------------------------
                          Inter-segment    Enterprise-wide   Total Corporate
                         Fourth   Fourth   Fourth   Fourth   Fourth   Fourth
                        Quarter  Quarter  Quarter  Quarter  Quarter  Quarter
                           2007     2006     2007     2006     2007     2006
                       ------------------------------------------------------
    ($000)
    -------------------------------------------------------------------------
    Revenue                (997)    (934)       8       45     (989)    (889)
    -------------------------------------------------------------------------
    Expenses               (997)    (934)   6,181    7,608    5,184    6,674
    -------------------------------------------------------------------------
      Employee
       compensation
       and benefits           -        -    1,460    2,089    1,460    2,089
    -------------------------------------------------------------------------
      Selling, general
       and administrative  (997)    (388)     567    1,249     (431)     861
    -------------------------------------------------------------------------
      Interest                -     (546)     883      741      883      195
    -------------------------------------------------------------------------
      Amortization            -        -    3,271    3,529    3,271    3,529
    -------------------------------------------------------------------------
    Loss before income
     taxes and
     non-controlling
     interest                 -        -   (6,173)  (7,563)  (6,173)  (7,563)
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    GMP CAPITAL TRUST - DISTRIBUTABLE CASH AND DISTRIBUTIONS
    -------------------------------------------------------------------------
                                                         Fourth       Fourth
                                                        Quarter      Quarter
                                                           2007         2006
    -------------------------------------------------------------------------
    ($000,000 of units, except per unit amounts
     and %)
    -------------------------------------------------------------------------
    Cash provided by operating activities               169,870       64,380
    -------------------------------------------------------------------------
    Add/(Deduct):
    -------------------------------------------------------------------------
    Net change in non-cash operating items(a)          (138,371)     (26,207)
    -------------------------------------------------------------------------
    Maintenance capital expenditures(b)                    (731)        (586)
    -------------------------------------------------------------------------
    Non-controlling interest                               (426)         (50)
    -------------------------------------------------------------------------
    Earnings of corporate subsidiaries not available
     for distribution(c)                                   (470)        (371)
    -------------------------------------------------------------------------
    Future income taxes(d)                                 (613)      (1,201)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Distributable cash(e)                                29,259       35,965
    -------------------------------------------------------------------------
    Weighted-average number of units - basic             63,321       62,126
    -------------------------------------------------------------------------
    Weighted-average number of units - diluted           64,353       63,632
    -------------------------------------------------------------------------
    Distributable cash per basic unit(e,f)                $0.46        $0.58
    -------------------------------------------------------------------------
    Distributable cash per diluted unit(e,f)              $0.45        $0.57
    -------------------------------------------------------------------------
    Cash distributions declared(g)                       67,244       54,627
    -------------------------------------------------------------------------
    Cash distributions declared  per basic unit          $1.055       $0.875
    -------------------------------------------------------------------------
    Payout ratio(e,h)                                    229.8%       151.9%
    -------------------------------------------------------------------------

    (a) Represents the change in non-cash operating items recorded on the
        Fund's unaudited interim consolidated statement of cash flows.
    (b) Maintenance capital expenditures are determined based on the capital
        requirements necessary to sustain current levels of economic
        activity. For further discussion, see "Distributable Cash and
        Distributions - Maintenance Capital Expenditures" in the 2007 Annual
        MD&A.
    (c) The net income of the Fund's corporate subsidiaries is not included
        in the determination of distributable cash.
    (d) Future income taxes represent a non-cash item. Management excludes
        these amounts in the determination of distributable cash in
        accordance with the limited partnership agreement of each Operating
        Partnership which states that all income tax obligations should be
        deducted in arriving at distributable cash.
    (e) Distributable cash, distributable cash per basic unit, distributable
        cash per diluted unit and payout ratio are not recognized measures
        under GAAP and do not have any standardized meanings prescribed by
        GAAP. Therefore, these measures may not be comparable to similar
        measures presented by other issuers. See "Presentation of Financial
        Information and Non-GAAP Measures" in the 2007 Annual MD&A.
    (f) Distributable cash per basic unit and distributable cash per diluted
        unit are determined by dividing distributable cash by the
        weighted-average number of basic and diluted units, respectively,
        outstanding for the applicable period, on a basis consistent with the
        determination of net income per unit.
    (g) Fourth quarter 2007 includes a special cash distribution of
        $41.6 million paid to unitholders of record on December 31, 2007, and
        fourth quarter 2006 includes a special cash distribution of
        $31.3 million paid to unitholders of record on December 29, 2006.
    (h) The payout ratio is determined by dividing aggregate cash
        distributions declared by distributable cash.


    GMP Capital Trust

                    UNAUDITED CONSOLIDATED BALANCE SHEET

    As at December 31,
                                                           2007         2006
    ($000)                                                    $            $
    ------------------------------------------------------------  -----------

    ASSETS
    Current
    Cash and cash equivalents                           256,658      139,691
    Securities
      Trading                                           141,262       80,106
      Available-for-sale                                  4,214            -
      Investment                                              -          897
    Receivable from
      Clients                                           377,437      415,233
      Brokers                                            80,613      153,940
    Other assets                                         68,849       62,166
    ------------------------------------------------------------  -----------
    Total current assets                                929,033      852,033
    ------------------------------------------------------------  -----------
    Deferred costs                                        4,330        8,279
    Capital assets                                       16,928       15,775
    Employee loans receivable                            21,898       16,854
    Future income taxes                                       -        1,302
    Goodwill and other intangible assets                127,110      139,234
    ------------------------------------------------------------  -----------
    Total assets                                      1,099,299    1,033,477
    ------------------------------------------------------------  -----------
    ------------------------------------------------------------  -----------

    LIABILITIES AND UNITHOLDERS' EQUITY
    Current
    Short-term borrowing                                 25,000            -
    Obligations related to securities sold short         12,316       36,102
    Payable to
      Clients                                           407,523      470,272
      Brokers                                            27,837       15,103
      Issuers                                            57,439       63,006
    Accounts payable and accrued liabilities             60,173       50,413
    Distributions payable                                50,551       39,161
    Other liabilities                                   102,690       28,543
    ------------------------------------------------------------  -----------
    Total current liabilities                           743,529      702,600
    ------------------------------------------------------------  -----------
    ------------------------------------------------------------  -----------
    Long-term debt                                       60,000       60,000
    Future income taxes                                   2,160            -
    Agency fee obligation                                 1,502        3,319
    ------------------------------------------------------------  -----------
    Total liabilities                                   807,191      765,919
    ------------------------------------------------------------  -----------
    Non-controlling interest                              2,599        1,738
    ------------------------------------------------------------  -----------
    Unitholders' equity                                 289,509      265,820
    ------------------------------------------------------------  -----------
    Total liabilities and unitholders' equity         1,099,299    1,033,477
    ------------------------------------------------------------  -----------
    ------------------------------------------------------------  -----------



    GMP Capital Trust

                 UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

                                    Quarter    Quarter       Year       Year
                                      ended      ended      ended      ended
                                   December   December   December   December
                                   31, 2007   31, 2006   31, 2007   31, 2006
    ($000, except per unit amounts)
    -------------------------------------------------------------------------

    REVENUE
    Investment banking               49,638     55,205    226,811    197,364
    Commissions                      33,906     30,478    161,091    116,483
    Investment management and fee
     income                           9,891      9,052     38,094     19,390
    Principal activities                (51)     3,376     22,637      4,930
    Interest and dividends            7,514      4,775     25,580     18,095
    Other                               578        711       (311)     1,050
    -------------------------------------------------------------------------
                                    101,476    103,597    473,902    357,312
    -------------------------------------------------------------------------

    EXPENSES
    Employee compensation and
     benefits                        52,577     51,551    226,580    173,714
    Selling, general and
     administrative                  13,437     10,562     50,643     36,532
    Interest                          4,228      2,249     14,176      6,825
    Amortization                      4,336      4,516     17,076      9,092
    -------------------------------------------------------------------------
                                     74,578     68,878    308,475    226,163
    -------------------------------------------------------------------------
    Income before the undernoted     26,898     34,719    165,427    131,149
    Non-controlling interest            426         50      1,936         47
    -------------------------------------------------------------------------
    Income before income taxes       26,472     34,669    163,491    131,102
    -------------------------------------------------------------------------
    Income taxes
      Current                         1,941      2,907     13,429     10,310
      Future                            715      1,201      3,923        828
    -------------------------------------------------------------------------
                                      2,656      4,108     17,352     11,138
    -------------------------------------------------------------------------
    Net income                       23,816     30,561    146,139    119,964
    -------------------------------------------------------------------------

    Net income per unit
    Basic                             $0.38      $0.49      $2.32      $2.01
    Diluted                           $0.37      $0.48      $2.28      $1.94
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    GMP Capital Trust

                      UNAUDITED CONSOLIDATED STATEMENTS
                           OF COMPREHENSIVE INCOME

                                                  Quarter ended   Year ended
                                                       December     December
                                                       31, 2007     31, 2007
    ($000)
    -------------------------------------------------------------------------

    Net income                                           23,816      146,139
    Other comprehensive income, net of taxes:
      Net unrealized losses on translation of
       foreign operations                                  (283)        (915)
    -------------------------------------------------------------------------
    Other comprehensive loss                               (283)        (915)
    -------------------------------------------------------------------------
    Total comprehensive income                           23,533      145,224
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    GMP Capital Trust

     UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN UNITHOLDERS' EQUITY

                                                           Exchan-    Exchan-
                                                           geable     geable
                                       Fund       Fund        L.P.       L.P.
                                      units      units      units      units
     (000)                              No.          $        No.          $
    ----------------------------------------  ---------  ---------  ---------
    Balance, December 31, 2005       37,317     71,268     20,012     35,368
    Foreign currency translation of
     self-sustaining operations           -          -          -          -
    Issued under unit option plans    1,309     12,386          -          -
    Issued as purchase
     consideration in business
    acquisition, net of issue costs       -          -      4,019     71,193
    Exchange of Exchangeable
     L.P. units into Fund units       1,791      3,165     (1,791)    (3,165)
    Fund unit-based
     compensation expense                 -          -          -          -
    Cash distributions declared
     - Fund units                         -          -          -          -
    Cash distributions declared
     - Exchangeable L.P.units             -          -          -          -
    Net income                            -          -          -          -
    ----------------------------------------  ---------  ---------  ---------
    Balance, December 31, 2006       40,417     86,819     22,240    103,396
    Foreign currency translation
     of self-sustaining operations        -          -          -          -
    Issued under unit option plans    1,332     14,580          -          -
    Exchange of Exchangeable
     L.P. units into Fund units       3,520      6,221     (3,520)    (6,221)
    Fund unit-based
     compensation expense                 -          -          -          -
    Cash distributions declared
     - Fund units                         -          -          -          -
    Cash distributions declared
     - Exchangeable L.P.units             -          -          -          -
    Net income                            -          -          -          -
    ----------------------------------------  ---------  ---------  ---------
    Balance, December 31, 2007       45,269    107,620     18,720     97,175
    ----------------------------------------  ---------  ---------  ---------
    ----------------------------------------  ---------  ---------  ---------


                                           Accumulated                 Total
                                                 other                unith-
                                Contributed     income   Retained    olders'
                                    surplus      (loss)  earnings     equity
     (000)                                $          $          $          $
    ----------------------------------------  ---------  ---------  ---------
    Balance, December 31, 2005        1,668          -     69,210    177,514
    Foreign currency translation of
     self-sustaining operations           -         11          -         11
    Issued under unit option plans   (2,576)         -          -      9,810
    Issued as purchase
     consideration in business
    acquisition, net of issue costs       -          -          -     71,193
    Exchange of Exchangeable
     L.P. units into Fund units           -          -          -          -
    Fund unit-based
     compensation expense             3,557          -          -      3,557
    Cash distributions declared
     - Fund units                         -          -    (73,966)   (73,966)
    Cash distributions declared
     - Exchangeable L.P.units             -          -    (42,263)   (42,263)
    Net income                            -          -    119,964    119,964
    ----------------------------------------  ---------  ---------  ---------
    Balance, December 31, 2006        2,649         11     72,945    265,820
    Foreign currency translation
     of self-sustaining operations        -       (915)         -       (915)
    Issued under unit option plans   (2,992)         -          -     11,588
    Exchange of Exchangeable
     L.P. units into Fund units           -          -          -          -
    Fund unit-based
     compensation expense             4,769          -          -      4,769
    Cash distributions declared
     - Fund units                         -          -    (93,999)   (93,999)
    Cash distributions declared
     - Exchangeable L.P.units             -          -    (43,893)   (43,893)
    Net income                            -          -    146,139    146,139
    ----------------------------------------  ---------  ---------  ---------
    Balance, December 31, 2007        4,426       (904)    81,192    289,509
    ----------------------------------------  ---------  ---------  ---------
    ----------------------------------------  ---------  ---------  ---------



    GMP Capital Trust

               UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                    Quarter    Quarter       Year       Year
                                      ended      ended      ended      ended
                                   December   December   December   December
                                   31, 2007   31, 2006   31, 2007   31, 2006
    ($000, except per unit amounts)
    -------------------------------------------------------------------------

    OPERATING ACTIVITIES
    Net income                       23,816     30,561    146,139    119,964
    Add (deduct) items not
     involving cash
      Amortization                    4,336      4,516     17,076      9,092
      Amortization of agency fees
       and private placement costs      360        524      1,718        932
      Amortization of
       lease inducement                 (79)       (92)      (297)       (92)
      Future income taxes               715      1,201      3,923        828
      Fund unit-based
       compensation expense           1,182        955      4,769      3,557
      Transition assistance and
       other loan amortization          742        458      2,880      1,258
      Non-controlling interest          426         50      1,936         47
    -------------------------------------------------------------------------
                                     31,498     38,173    178,144    135,586
    Net change in non-cash
     operating items                138,372     26,207     34,986     39,631
    -------------------------------------------------------------------------
    Cash provided by operations     169,870     64,380    213,130    175,217
    -------------------------------------------------------------------------

    FINANCING ACTIVITIES
    Proceeds from issuance
     of long-term debt                    -     60,000          -     60,000
    Proceeds from (repayment of)
     Short-term borrowing            25,000    (20,000)    25,000          -
    Issuance of Fund units            9,029      6,030     11,588      9,810
    Repayment of short-term
     borrowing                            -          -          -        (54)
    Cash distributions paid
     on Fund units                  (16,955)   (14,603)   (83,498)   (52,597)
    Cash distributions paid on
     Exchangeable L.P. units         (7,604)    (8,594)   (43,004)   (30,447)
    Increase (decrease) in
     non-controlling interest             1      1,519     (1,075)     1,493
    -------------------------------------------------------------------------
    Cash provided by (used in)
     financing activities             9,471     24,352    (90,989)   (11,795)
    -------------------------------------------------------------------------

    INVESTING ACTIVITIES
    Investment in subsidiary              -          -     (1,096)         -
    Business acquisition                  -        (78)         -    (66,883)
    Purchase of capital assets         (603)    (3,078)    (3,886)   (13,667)
    Pre-operating expenditures         (107)      (920)      (192)      (920)
    -------------------------------------------------------------------------
    Cash used in investing activities  (710)    (4,076)    (5,174)   (81,470)
    -------------------------------------------------------------------------

    Net increase in cash
     and cash equivalents           178,631     84,656    116,967     81,952
    Cash and cash equivalents,
     beginning of period             78,027     55,035    139,691     57,739
    -------------------------------------------------------------------------
    Cash and cash equivalents,
     end of period                  256,658    139,691    256,658    139,691
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Supplemental cash
     flow information
    Interest paid                     5,090      1,842     13,493      6,238
    Income taxes paid                   973      4,729      8,723     25,857
    -------------------------------------------------------------------------
    

    CONFERENCE CALL

    Management will host a conference call and live audio webcast today at
11:00 a.m. (ET) to discuss the Fund's fourth quarter and fiscal year ended
December 31, 2007. The call may be accessed by dialing 416-644-3415 or 
1-800-733-7571. The webcast will be accessible at gmpcapitaltrust.com and will
be archived on the site. A replay of the conference call will be available
from Thursday, February 28, 2008, at 1:00 p.m. (ET) to Thursday, March 6, 2008
at 11:59 p.m. (ET). The dial-in number for the replay is 416-640-1917 or 
1-877-289-8525; access code 21258288 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. will seek
to generate long-term risk-adjusted investment returns through the execution
of selected investment strategies. GMP Investment Management L.P.'s offerings
will be 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. The Fund's website is located at gmpcapitaltrust.com. The Fund has
offices in Toronto, Calgary, Montreal, Vancouver, Geneva, Switzerland 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 the Fund's
regulatory filings, which are available on the Fund's website at
gmpcapitaltrust.com and on SEDAR at sedar.com. The Fund's primary business
activities, by their nature, are both competitive and subject to various
risks. These risks include market, credit, liquidity, operational and
regulatory risks and other risk factors including, without limitation,
variations in the 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 also may have an impact on the Fund's
results of operations. Many of these risks and uncertainties can affect our
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 the Fund's 2007 Annual MD&A and "Risk Factors" in the
Fund's Annual Information Form dated February 27, 2008. Material factors or
assumptions applied in drawing a conclusion or making an estimate set out in
any forward-looking information include: continued tightened liquidity
conditions; a continued slowdown in the United States' economy leading to a
decreased demand for Canadian exports to the United States; a strong Canadian
dollar relative to the American dollar; and stabilized oil prices. For other
factors or assumptions applied see the "Business Environment and Market
Outlook - Market Outlook" section in the Fund's 2007 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.
Except as required by applicable law, management and the Board of Trustees of
the Fund undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future
events or otherwise.

    Non-GAAP Measures

    Certain financial terms included in this press release (e.g.,
"distributable cash", "payout ratio" and "ROE") are not recognized measures
under Canadian generally accepted accounting principles (GAAP) and do not have
any standardized meanings prescribed by GAAP. Therefore, readers are cautioned
that these measures may not be comparable to similar measures presented by
other issuers. For a more comprehensive discussion on the Fund's use of
non-GAAP measures, please see the "Presentation of Financial Information and
Non-GAAP Measures" section of the Fund's 2007 Annual MD&A, which is available
on the Fund's website at gmpcapitaltrust.com and on SEDAR at sedar.com.





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 or
investorrelations@gmpcapitaltrust.com


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