Canaccord Capital Inc. today reported sharply improved profit and revenue for the first quarter ended June 30.
Net income was a first quarter record of $11.1 million, up $2.7 million, or 32%, from the $8.4 million recorded in the same period a year ago.
Diluted earnings per share were 24¢, up 1¢ from the same period a year ago.
Revenue for the first quarter was a first quarter record of $99.0 million. That’s up $18.5 million, or 23%, compared to the same period a year ago.
“We continued to successfully execute on our long term growth strategy this quarter, demonstrating strategic focus and entrepreneurial spirit,” said Peter Brown, chairman and CEO.
Expenses were $83.6 million, up $15.5 million, or 23%, from $68.1 million.
Return on equity was 19.8%, up from a ROE of 19.3%.
Canaccord says the slower growth ROE is partially attributable to the issuance of $70 million in common shares resulting from the IPO on June 30, 2004.
During the quarter the company realized a one time pre-tax gain of $1.6 million from the disposal of an investment in the Montreal Exchange. This gain was equivalent to $1.3 million after tax and approximately $0.03 per diluted share.