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Canaccord Financial Q3 profit plunges to $2.5M as revenue drops 42% to $147.8M
TORONTO - Canaccord Financial Inc. (TSX:CF) has reported a big drop in third quarter-quarter earnings Wednesday as revenue plunged by almost $107 million or 42 per cent amid global economic uncertainty.
The full-services financial firm said net income in the three months ended Dec. 31 was $2.5 million or a penny per share, compared with net income of $43 million in the same prior-year period.
Revenue slipped $106.9 million or 42 per cent to $147.8 million from $254.8 million in the same fiscal 2011 quarter.
Canaccord said restructuring and acquisition-related expense items totalling $10.7 million, or $8.1 million after tax, were incurred during the quarter.
That included $6.3 million of restructuring costs, $2.7 million related to the proposed acquisition of Collins Stewart Hawkpoint plc and $1.7 million of amortization of intangible assets.
"The strategic investments we undertook to expand our global capabilities and enhance Canaccord's long term-performance highlighted our fiscal third quarter," said president and CEO said Paul Reynolds, referring to the planned acquisition of CSH and the closing of Canaccord's 50 per cent interest in BGF Equities.
"Combined, these growth initiatives will add important scale to our U.K. and U.S. businesses, establish key operations in Singapore, Hong Kong, Australia and Europe, and provide a strong, high-margin U.K. wealth management business to our global platform."
Canaccord has 53 offices worldwide, including 37 wealth management offices located across Canada. Canaccord Genuity, the international capital markets division, operates in Canada, the U.S., the U.K., China, Hong Kong, Australia and Barbados.
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