Reports Record Annual Revenue for 2014

Canaccord Genuity Group Inc. reports record annual revenue for 2014 Excluding significant items, fourth quarter diluted earnings per share of $0.25(1) driven by performance of US and UK operations (All dollar amounts are stated in Canadian dollars unless otherwise indicated) TORONTO, June 3, 2014 /CNW/ - During the quarter ended March 31, 2014,Canaccord Genuity Group Inc. ('the Company' or 'Canaccord', TSX: CF, LSE: CF.)generated $253.7 million in revenue. Excluding significant items(1) (a non-IFRSmeasure), the Company recorded net income of $29.1 million or net income of$25.7 million attributable to common shareholders(2) ($0.25 per diluted commonshare). Including all expense items, on an IFRS basis, the Company recorded netincome of $25.9 million or net income attributable to common shareholders (2)of $22.8 million ( $0.22 per diluted common share). During the fiscal year ended March 31, 2014, Canaccord generated a record$855.2 million of revenue and, excluding significant items(1), recorded netincome of $68.8 million or net income attributable to common shareholders(2) of$55.4 million ($0.54 per diluted common share). Including all expense items, onan IFRS basis, the Company recorded net income of $52.1 million or net incomeof $39.7 million attributable to common shareholders(2) ($0.39 per dilutedcommon share). "Our strong results during fiscal 2014 were driven by exceptional performancefrom our US and UK operations, with significant and growing contributions fromthe Asia-Pacific region," said Paul Reynolds, President and CEO of CanaccordGenuity Group Inc. "In addition, we are seeing a welcome pickup in volumes andtransaction activity in the Canadian market." Mr. Reynolds added: "In fiscal 2015 we will look to grow our global businessand continue to deliver enhanced and consistent client experiences in all ourgeographies." FISCAL 2014 VS. FISCAL 201312 months ended March 31, 2014 vs. 12 months ended March 31, 2013 · Revenue of $855.2 million, an increase of 7% or $58.1 million from$797.1 million · Excluding significant items, expenses of $770.6 million, an increaseof 1% or $3.7 million from $766.9 million(1) · Expenses of $790.7 million, down 4% or $30.2 million from $820.8million · Excluding significant items, net income of $68.8 million compared tonet income of $25.6 million(1) · Net income of $52.1 million, compared to a net loss of $18.8 million · Excluding significant items, diluted earnings per common share (EPS)of $0.54 compared to diluted EPS of $0.14 in fiscal 2013(1) · Diluted EPS of $0.39 compared to a diluted loss per common share of$0.31 in the prior year FOURTH QUARTER FISCAL 2014 VS. FOURTH QUARTER FISCAL 20133 months ended March 31, 2014 vs. 3 months ended March 31, 2013 · Revenue of $253.7 million, an increase of 16% or $35.8 million from$218.0 million · Excluding significant items, expenses of $217.8 million, an increaseof 9% or $17.3 million from $200.5 million(1) · Expenses of $221.7 million, an increase of 5% or $9.8 million from$212.0 million · Excluding significant items, net income of $29.1 million compared tonet income of $15.6 million(1) · Net income of $25.9 million compared to a net income of $6.4 million · Excluding significant items, diluted EPS of $0.25 compared to $0.12in the fourth quarter of 2013(1) · Diluted EPS of $0.22 compared to a diluted EPS of $0.04 FOURTH QUARTER OF FISCAL 2014 VS. THIRD QUARTER OF FISCAL 20143 months ended March 31, 2014 vs. 3 months ended December 31, 2013 · Revenue of $253.7 million, an increase of 10% or $22.7 million from$231.0 million · Excluding significant items, expenses of $217.8 million, an increaseof 7% or $14.9 million from $202.9 million(1) · Expenses of $221.7 million, an increase of 7% or $15.2 million from$206.5 million · Excluding significant items, net income of $29.1 million compared tonet income of $21.2 million(1) · Net income of $25.9 million compared to net income of $18.3 million · Excluding significant items, diluted EPS of $0.25 compared to $0.17in the third quarter of 2014(1) · Diluted EPS of $0.22 compared to diluted EPS of $0.14 in the thirdquarter of 2014 Financial condition at end of fourth quarter 2014 vs. fourth quarter 2013 · Cash and cash equivalents balance of $364.3 million, down $126.7million from $491.0 million · Working capital of $469.4 million, an increase of $75.7 million from$393.7 million · Total shareholders' equity of $1,168.7 million, an increase of $119.5million from $1,049.2 million · Book value per diluted common share for the period end was $9.05, anincrease of 18% or $1.37 from $7.68(3) · On June 3, 2014, the Board of Directors approved a quarterly dividendof $0.05 per common share payable on July 2, 2014 with a record date of June20, 2014 · On June 3, 2014, the Board of Directors also approved a cash dividendof $0.34375 per Series A Preferred Share payable on June 30, 2014 with a recorddate of June 13, 2014, and approved a cash dividend of $0.359375 per Series CPreferred Share payable on June 30, 2014 and with a record date of June 13,2014 SUMMARY OF OPERATIONS FOR THE QUARTER Corporate · On January 15, 2014, Canaccord Genuity appointed Stuart Raftus asPresident of Canaccord Genuity Wealth Management in Canada · On March 26, 2014, Canaccord Genuity appointed David Esfandi as ChiefExecutive of Canaccord Genuity Wealth Management in the UK · On March 26, 2014, Canaccord Genuity announced that Stephen Masseyassumed the position of Chairman of Canaccord Genuity Wealth Management in theUK · During the fourth fiscal quarter, the Company purchased 675,856 ofits common shares under the terms of its normal course issuer bid (NCIB) tobring the total purchases for the current fiscal year to 3,294,144 commonshares as of March 31, 2014 · 3,248,544 common shares purchased under the NCIB up to the end offiscal 2014 were cancelled on or before March 31, 2014 and the remaining 45,600common shares purchased during fiscal 2014 were held in treasury untilsubsequently cancelled on April 30, 2014 Capital Markets · During fiscal Q4/14 Canaccord Genuity led or co-led 33 transactionsglobally, raising total proceeds of C$3.0 billion(4) · Canaccord Genuity participated in 106 transactions globally, raisingtotal proceeds of C$13.6 billion(4) during fiscal Q4/14 · During fiscal Q4/14, Canaccord Genuity led or co-led the followingtransactions: · £431.0 million for Poundland Group PLC on the LSE · £326.3 million for Playtech PLC on the LSE · £240.0 million for Brit Insurance PLC on the LSE · C$224.3 million for Goldcorp Inc. in a secondary offering of PrimeroMining Corp. shares on the TSX · £211.0 million for Circassia Pharmaceuticals PLC on the LSE · £169.0 million for Optimal Payments PLC on AIM · C$133.3 million for DHX Media Limited on the TSX · £109.2 million for Monitise PLC on AIM · AUD$100.0 million for G8 Education Limited on the ASX · US$86.3 million for Derma Sciences, Inc. on the NASDAQ · C$75.0 million for Redknee Solutions Inc. on the TSX · AUD$75 million for Donaco International Limited on the ASX · C$74.8 million for Pure Industrial Real Estate Trust on the TSX · Two transactions totalling US$69.8 million for Rubicon Technology,Inc. on the NASDAQ · C$67.6 million for Concordia Healthcare Corporation on the TSX · £66.2 million for The Renewables Infrastructure Group Limited on theLSE · US$57.5 million for Datawatch Corporation on the NASDAQ · US$50.0 million for President Energy PLC on AIM · S$43.5 million for Kim Heng Offshore & Marine Holdings Limited on theSGX-Catalist · C$33.0 million for Sandvine Corporation on the TSX · C$30.0 million for Cardiome Pharma Corp. on the TSX · C$27.6 million for Enterprise Group Inc. on the TSX · C$23.0 million for Merus Labs International Inc. on the TSX · C$20.0 million for Luna Gold Corp. on the TSX · £11.4 million for Goals Soccer Centres PLC on AIM · Canaccord Genuity generated advisory revenues of $33.6 million duringfiscal Q4/14 and $138.9 million during fiscal 2014 · During fiscal Q4/14, Canaccord Genuity advised on the following M&Aand advisory transactions: · Xsens Technologies on its sale to Fairchild Semiconductor · Marlin Financial Group Limited on its disposal to Cabot CreditManagement Limited · Oaktree Capital Management on its co-investment in the new chemicalfleet with Navig8 · Caffè Nero on the refinancing of its debt facilities · Camac Energy Inc. on the acquisition of an interest in the OML 120/121 block offshore Nigeria · Investcorp on the disposal of TDX Group to Equifax Inc. · DOCUgroup on the refinancing of its debt facilities · Asanko Gold Inc. on its acquisition of PMI Gold Corp. · Chequers Capital on its acquisition of ISS Espaces verts · Spire Topco Hotels Limited on the disposal of Four Pillars HotelGroup to Starwood Capital · Petainer on the refinancing of its debt facilities · Succession Holdings Limited on a majority investment by InflexionPartners · Enterprise Group Inc. on its acquisition of Hart Oilfield RentalsLimited. · Parature on its sale to Microsoft Corporation Canaccord Genuity Wealth Management (Global) · On a global basis, Canaccord Genuity Wealth Management generatedrevenue of $66.9 million in Q4/14 · Total assets under administration(3) in Canada, and assets undermanagement(3) in the UK, Europe and Australia, were $30.9 billion at the end offiscal Q4/14 Canaccord Genuity Wealth Management (North America) · Canaccord Genuity Wealth Management generated $32.0 million inrevenue and recorded a net loss before taxes of $3.2 million in Q4/14 · Assets under administration(3) in Canada were $10.2 billion, anincrease of 7% from $9.5 billion at the end of Q3/14 and down 3% from $10.4billion at the end of Q4/13 · Assets under management (3) in Canada (discretionary) were $1.2billion, an increase of 13% from $1.1 billion at the end of Q3/14 and anincrease of 44% from $835 million at the end of Q4/13 · As at March 31, 2014, Canaccord Genuity Wealth Management had 160Advisory Teams(5), a decrease of 18 Advisory Teams(5) from March 31, 2013 and adecrease of 3 from December 31, 2013 · Canaccord Genuity Wealth Management has 16 offices across Canada,including eight operating on the Independent Wealth Management (IWM) platform Canaccord Genuity Wealth Management (UK and Europe) · Wealth management operations in the UK and Europe generated $33.2million in revenue and, excluding significant items, recorded net income of$6.4 million before taxes(1) · Assets under management (discretionary and non-discretionary)(3) were$20.2 billion (£10.9 billion), an increase of 6% from $19.0 billion (£10.8billion) at the end of Q3/14 and an increase of 27% from $15.9 billion (£10.2billion) at the end of Q4/13 Non-IFRS MeasuresThe non-International Financial Reporting Standards (IFRS) measures presentedinclude assets under administration, assets under management, book value perdiluted common share and figures that exclude significant items. Significantitems include restructuring costs, amortization of intangible assets, andacquisition-related expense items, which include costs recognized in relationto both prospective and completed acquisitions. Book value per diluted commonshare is calculated as total common shareholders' equity divided by the numberof diluted common shares outstanding and, commencing in Q1/14, adjusted forshares purchased under the NCIB and not yet cancelled, and estimatedforfeitures in respect of unvested share awards under share-based paymentplans. Management believes that these non-IFRS measures will allow for a betterevaluation of the operating performance of Canaccord's business and facilitatemeaningful comparison of results in the current period to those in priorperiods and future periods. Figures that exclude significant items provideuseful information by excluding certain items that may not be indicative ofCanaccord's core operating results. A limitation of utilizing these figuresthat exclude significant items is that the IFRS accounting effects of theseitems do in fact reflect the underlying financial results of Canaccord'sbusiness; thus, these effects should not be ignored in evaluating and analyzingCanaccord's financial results. Therefore, management believes that Canaccord'sIFRS measures of financial performance and the respective non-IFRS measuresshould be considered together. Selected financial information excluding significant items Three months ended March 31 For the years Quarter- ended March 31 over- YTD - over quarter - YTD(C$ thousands, except per share and % amounts) 2014 2013 change 2014 2013 change Total revenue per IFRS $253,748 $217,971 16.4% $855,244 $797,122 7.3% Total expenses per IFRS 221,737 211,984 4.6% 790,656 820,824 (3.7)% Significant items recorded in Canaccord Genuity Restructuring costs - 5,561 (100.0)% 5,486 15,232 (64.0)% Amortization of intangible assets 1,702 3,458 (50.8)% 6,742 14,740 (54.3)% Acquisition-related costs - - - - 388 (100.0)% Significant items recorded in Canaccord Genuity Wealth Management Amortization of intangible assets 2,256 1,600 41.0% 7,841 5,855 33.9% Restructuring costs - 884 (100.0)% - 15,485 (100.0)% Acquisition-related costs - - - - 1,331 (100.0)% Significant items recorded in Corporate and Other Restructuring costs - - - - 900 (100.0)% Acquisition-related costs - - - - - - Total significant items 3,958 11,503 (65.6)% 20,069 53,931 (62.8)% Total expenses excluding significant items 217,779 200,481 8.6% 770,587 $766,893 0.5% Net income before tax - adjusted 35,969 17,490 105.7% 84,657 30,229 180.1% Income taxes - adjusted 6,894 1,911 260.8% 15,811 4,585 244.8% Net income- adjusted $29,075 $15,579 86.6% $68,846 $25,644 168.5% EPS - basic, adjusted $0.28 $0.14 100.0% $0.59 $0.16 268.8% EPS - diluted, adjusted $0.25 $0.12 108.3% $0.54 $0.14 285.7% ACCESS TO QUARTERLY RESULTS INFORMATIONInvestors, the media and others may review this quarterly earnings release andsupplementary financial information at http://www.canaccordgenuitygroup.com/EN/IR/Pages/default.aspx . CONFERENCE CALL AND WEBCAST PRESENTATIONInterested parties are invited to listen to Canaccord's fourth quarter andfiscal 2014 results conference call via a live webcast or a toll free number.The conference call is scheduled for Wednesday, June 4, at 5:00 a.m. (PacificTime), 8:00 a.m. (Eastern Time), 1:00 p.m. (UK Time), 8:00 p.m. (China StandardTime), and 10:00 p.m. (Australia EST Time). At that time, senior executiveswill comment on the results for the fourth quarter and fiscal 2014 year andrespond to questions from analysts and institutional investors. The conference call may be accessed live and archived on a listen-only basisvia the Internet at: http://www.canaccordgenuitygroup.com/EN/NewsEvents/Pages/Events.aspx Analysts and institutional investors can access the call in via telephone at: · 647-427-7450 (within Toronto) · 1-888-231-8191 (toll free in North America) · 0-800-051-7107 (toll free from the UK) · 1-800-760-620 (toll free from Ireland) · 0-800-917-449 (toll free from France) · 0-800-183-0171 (toll free from Germany) · 10-800-714-1191 (toll free from Northern China) · 10-800-140-1195 (toll free from Southern China) · 1-800-287-011 (toll free from Australia) Please request to participate in Canaccord Genuity Group Inc's Q4/14 earningscall. A replay of the conference call will be available on June 4, 2014, after 8:00a.m. (Pacific Time), 11:00 a.m. (Eastern Time) 4:00 p.m. (UK Time), 11:00 p.m.(China Standard Time) and 1:00 a.m. (Australia EST Time) on June 5, 2014 untilJuly 23, 2014 at 416-849-0833 or 1-855-859-2056 by entering passcode 48723041followed by the pound (#) sign. ABOUT CANACCORD GENUITY GROUP INC. Through its principal subsidiaries, Canaccord Genuity Group Inc. (the"Company") is a leading independent, full-service financial services firm, withoperations in two principal segments of the securities industry: wealthmanagement and capital markets. Since its establishment in 1950, the Companyhas been driven by an unwavering commitment to building lasting clientrelationships. We achieve this by generating value for our individual,institutional and corporate clients through comprehensive investment solutions,brokerage services and investment banking services. The Company has offices in11 countries worldwide, including wealth management offices located in Canada,Australia, the UK and Europe. Canaccord Genuity, the international capitalmarkets division, operates in Canada, the US, the UK, France, Germany, Ireland,Hong Kong, mainland China, Singapore, Australia and Barbados. To us there areno foreign markets.TM Canaccord Genuity Group Inc. is publicly traded under the symbol CF on the TSXand the symbol CF. on the London Stock Exchange. Canaccord Series A PreferredShares are listed on the TSX under the symbol CF.PR.A. Canaccord Series CPreferred Shares are listed on the TSX under the symbol CF.PR.C. ___________________________ 1 Significant items include restructuring costs, amortization of intangibleassets and acquisition-related costs. See Non-IFRS Measures on page 5.2 Net income attributable to common shareholders is calculated as net incomeadjusted for non-controlling interests and preferred share dividends3 See Non-IFRS measures on page 5.4 Source: FP Infomart and Company Information. Transactions over C$1.5 million.5 Advisory Teams are normally comprised of one or more Investment Advisors(IAs) and their assistants and associates, who together manage a shared set ofclient accounts. Advisory Teams that are led by, or only include, an IA who hasbeen licensed for less than three years are not included in our Advisory Teamcount, as it typically takes a new IA approximately three years to build anaverage-sized book of business. SOURCE: Canaccord Genuity Group Inc. For further information: North American media:Scott DavidsonExecutive Vice President, Global Head of Corporate Development & StrategyPhone: 416-869-3875Email: [email protected] London media:Robert Morgan or Nicola RatchfordStockwellPhone: +44 (0) 20 7240 2486Email: [email protected] ;[email protected] Investor relations inquiries:Christina MarinoffVice President, Investor Relations and CommunicationsPhone: 416-687-5507Email: [email protected] Broker:Oliver HearseyRBC Europe LimitedPhone: +44 (0) 20 7653 4000Email: [email protected]

(CF.)