GMP Capital Trust today released its financial results for the three and 12-month periods ended Dec. 31, 2006. Revenue reached a quarterly record of $103.6 million in the fourth quarter of 2006 and $357.3 million for the fiscal year 2006, representing a year-over-year increase of 40% over fiscal year 2005.
Net income for the fourth quarter and the year was $30.6 million and $120 million, respectively, and GMP generated an annualized return on unitholders’ equity of 44.6% and 52.3% for the quarter and the year, respectively.
GMP said earnings reflect the strong results generated across all business segments.
Revenue for the fourth quarter was $103.6 million for the compared with revenue of $53.2 million in the two-month period ended Dec. 31, 2005.
Pre-tax income was $34.7 million compared with pre-tax income of $19.3 million in the fourth quarter 2005.
GMP Private Client achieved profitability in the fourth quarter 2006 with pre-tax income of $0.6 million.
Net income for the quarter was $30.6 million, or 49¢ per basic unit, compared with pro forma net income of $17.3 million, pro forma earnings of 30¢ per basic unit, in the fourth quarter 2005
“We achieved excellent results across all our business segments in 2006, as a result of our focused strategy, the abilities of our people and our unparalleled execution capabilities in the Canadian mid-market,” said Kevin Sullivan, CEO. “2006 was a year of many new initiatives and outstanding progress for all of our business segments. We made our entry into the private equity business with the establishment of our Private Capital Management segment following our acquisition of EdgeStone Capital Partners. Our Capital Markets segment established operations in the United Kingdom, and we further solidified our reputation as an investment banking firm of choice by our target clients as evidenced by our role in several high-profile deals. We also saw significant developments in our Wealth Management segment with the addition of several investment advisory teams, an appreciable increase in our assets under administration and reaching profitability in our fourth quarter. These achievements are tangible proof of the strength of human capital at GMP Capital Trust and of our commitment to providing superior performance for our clients and unitholders.”