Canaccord Capital Inc. announced that revenue for the first quarter of fiscal 2007, ended June 30, was a first quarter record of $206.1 million, up $107.1 million, or 108.2%, from $99 million for the same period a year ago. Net income of $25.9 million was also a first quarter record, up $14.9 million, or 134.2%, from $11.1 million for the first quarter of fiscal 2006, and diluted earnings per share were a first quarter record of $0.54, up $0.30, or 125.0%, from $0.24 for the same period a year ago.

“Strong global markets for the first part of the quarter played a
significant role in our record first quarter results,” said Brad Kotush, executive vice president and chief financial officer. “We are proud of the hard work and client focus demonstrated by all of our partners”.

Highlights of the first quarter fiscal 2007 results compared to the first quarter fiscal 2006 results (three months ended June 30, 2005) include:

– Revenue of $206.1 million, up 108.2%, or $107.1 million, from $99 million;
– Expenses of $167.0 million, up 99.7%, or $83.4 million, from $83.6 million;
– Net income of $25.9 million, up 134.2%, or $14.9 million, from $11.1 million;
– Diluted earnings per share of $0.54, up 125.0%, or $0.30, from $0.24;
– Return on equity of 34.7%, up from 19.8%;
– Book value per common share at the period end increased to $6.51, up 32.6%, or $1.60, from $4.91;
– The board approved a common share dividend of $0.08 per share on Aug. 3 payable on Sept. 8 with a record date of Aug. 25;
– 47,827,350 total issued common shares outstanding on a diluted basis as of Aug. 3.

Canaccord’s Chairman and CEO Peter M. Brown also announced on Friday that the board has appointed Paul Reynolds as president and Mark Maybank as chief operating officer of Canaccord. In addition, Brown announced the resignation of Michael G. Greenwood as director and president and chief operating officer.

Paul Reynolds remains a director of CCI and global head of Canaccord Adams and, for regulatory purposes, president and chief operating officer of Canaccord Adams Ltd., CCI’s British operating subsidiary. Mark Maybank continues as deputy head of Canaccord Adams and global head of research and operations.

“I am confident in Paul’s and Mark’s abilities to take on the reigns of these key leadership roles, and to carry forward Canaccord’s entrepreneurial, consensus-driven culture,” said Peter Brown. “We are fortunate to have a deep, diverse, global pool of talent that has allowed us to develop the next generation of leadership internally and I look forward to working with Paul and Mark to continue our tradition of generating sustainable growth.”

To support the transition period, Michael Greenwood has entered into a 12-month consulting arrangement with Canaccord. Peter Brown stated, “Mike leaves a great many friends behind at Canaccord, and his strategic leadership and contribution to our growth over the last 14 years has been integral to our success. We wish him every success in the future.”