Conference Call With Analysts and Investors To Be Held at 1:00 P.M.
VANCOUVER, April 9 /CNW/ - Canaccord Capital Inc. (TSX & AIM: CCI) today
announces a one-time after-tax charge of approximately $39.6 million or
$0.82 per share, related to the Canaccord Relief Program for clients holding
third-party Asset Backed Commercial Paper (ABCP). This charge also includes a
provision for management restructuring and other costs.
"This is a significant charge to our earnings that reflects our
commitment to resolving a very difficult process in the best possible way for
our clients," said Paul Reynolds, President and Chief Executive Officer of
Canaccord Capital Inc. "We remain well capitalized and committed to our
clients, which we believe we've demonstrated throughout this process. With
these efforts behind us, we look forward to continuing to live up to our
values and grow our business as a leading global investment dealer."
In addition, effective immediately, Robert Larose has resigned from his
position as Executive VP, Head of Private Client Services for personal
reasons. Mr. Larose has agreed to continue with the firm for a transitional
period of at least 60 days to assist clients through the final stages of the
ABCP restructuring process. William Whalen, Executive VP, Head of the Fixed
Income group at Canaccord, has also announced his retirement from Canaccord.
Paul Reynolds, President and Chief Executive Officer of Canaccord Capital
Inc., will act as interim Head of Private Client Services and oversee the
process of recruiting permanent leadership for these important business
"I would like to thank Bob Larose and Bill Whalen for their years of
service," said Mr. Reynolds. "In particular, I want to acknowledge Bob's
leadership throughout this challenging period and express my respect for his
decision to step down. Over the past seven years, Bob and his team have grown
our Private Client Services group from $3 billion in assets under
administration to almost $15 billion and have been integral in establishing
Canaccord as the leading non-bank investment dealer in Canada."
The one-time charge is approximately $58.2 million pre tax, $39.6 million
after tax, or $0.82 per share. This charge will be taken against Canaccord's
fiscal fourth quarter 2008 earnings and consists of the following elements:
- Canaccord's Relief Program for client-held ABCP, at a total cost to
Canaccord of $54.2 million pre tax, $36.8 million after tax, or
$0.76 per share.
- There is also an allowance for restructuring and other items of
$4.0 million pre tax, $2.8 million after tax, or $0.06 per share.
"Canaccord is pleased to offer a solution that provides our clients with
par value on their ABCP investment," said Mark Maybank, Chief Operating
Officer of Canaccord Capital Inc. "After months of negotiation and evaluating
numerous bids from parties interested in purchasing the notes, our client
relief program and the related charges represent the best possible outcome in
this unprecedented disruption in the Canadian capital markets."
More information about the Canaccord Relief Program is available to
clients at www.canaccordrelief.com.
Canaccord will host a conference call today, April 9, 2008, at 10:00 a.m.
(Pacific time), 1:00 p.m. (Eastern time), and 6:00 pm (UK time) for analysts
and institutional investors. At that time, senior executives will comment on
this press release, and respond to questions from analysts and institutional
Media and other interested parties may access this conference call live
and archived on a listen-only basis via the Internet at
Analysts and institutional investors can call in via telephone at:
- 416-644-3420 (within Toronto)
- 1-800-595-8550 (toll free outside Toronto)
- 00-800-2288-3501 (toll free from the United Kingdom)
A replay of the conference call can be accessed after 12:00 p.m. (Pacific
Time), 3:00 p.m. (Eastern Time) and 8:00 p.m. (UK Time) on April 9, 2008,
until 8:59 p.m. (Pacific Time), 11:59 p.m. (Eastern Time) and 4:59 a.m. (UK
Time) on April 23, 2008, at 416-640-1917 or 1-877-289-8525 by entering
passcode 21268809 followed by the pound sign.
ABOUT CANACCORD CAPITAL INC.:
Through its principal subsidiaries, Canaccord Capital Inc. (TSX & AIM:
CCI) is a leading independent, full service investment dealer in Canada with
capital markets operations in the United Kingdom and the United States of
America. Canaccord is publicly traded on both the Toronto Stock Exchange and
AIM, a market operated by the London Stock Exchange. Canaccord has operations
in two of the principal segments of the securities industry: private client
services and capital markets. Together, these operations offer a wide range of
complementary investment products, brokerage services and investment banking
services to Canaccord's private, institutional and corporate clients.
Canaccord has approximately 1,676 employees worldwide in 30 offices, including
23 Private Client Services offices located across Canada. Canaccord Adams, the
international capital markets division, has operations in Toronto, London,
Boston, Vancouver, New York, Calgary, Montreal, San Francisco, Houston and
For further information:
For further information: North America Media: Scott Davidson, Managing
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email: email@example.com; For investor relations inquiries contact:
Katherine Young, Vice President, Investor Relations, Phone: (604) 643-7013,
email: firstname.lastname@example.org; London Media: Bobby Morse or Ben Willey,
Buchanan Communications (London), Phone: +44-0-207-466-5000, email:
email@example.com; Nominated Adviser and Broker: Mark Dickenson,
Landsbanki Securities (UK) Limited, Phone: +44 (0) 207 426 9586, email: