(November 17 – 16:30 ET) – Guardian Capital has released its earnings report for the third quarter. Net earnings were $1,136,000, or $0.06 per share fully diluted, in the third quarter of 2000. This represented an increase of $210,000, or 22.7%, from net earnings in the third quarter of 1999.

Cash flow from operations this quarter was $2,986,000, substantially the same as for the same quarter in 1999.

Client assets under management amounted to $10.5 billion as at September 30, 2000, which was 7% higher than the $9.8 billion as at September 30, 1999. Gross revenue increased by $574,000, or 4.1%, for the quarter compared with the same period in 1999. The increase in gross revenue was due mainly to higher sales commission revenue and investment income, says Guardian.

Operating expenses for the quarter were $9,353,000, compared to $8,998,000 in the third quarter of 1999, an increase of $355,000 primarily as a result of investment in the expansion of the mutual fund and high net worth activities.

Financing costs decreased by $214,000 to $1,411,000 and amortization of deferred sales commissions increased by $221,000 to $1,352,000 in this quarter, compared to the same period in the previous year.

The value of corporate cash and securities at September 30, 2000 was $77.8 million, or $4.10 per share, fully diluted, compared with $71.2 million, or $3.73 per share, at September 30, 1999.
-IE Staff