Canada Dividend Investor: GMP - <span class="din">GMP Capital Inc. Reports Second Quarter 2012 Results</span> (CAD 0.05)

Company: Gmp Capital Inc.
Stock Name: GMP
Amount: CAD 0.05
Announcement Date: 03/08/2012
Record Date: 06/09/2012

Dividend Detail:

For further information about GMP Capital Inc., our results for second
quarter 2012 and the meaning of certain references, this quarterly
earnings release should be read in conjunction with our Second Quarter
2012 Financial Statements and Management's Discussion and Analysis for
the three and six months ended June 30, 2012, which can be accessed on
our website at gmpcapital.com and on SEDAR at sedar.com. Unless otherwise indicated, all amounts are expressed in Canadian
dollars and have been taken from our Second Quarter 2012 Financial
Statements prepared in accordance with International Financial
Reporting Standards ("IFRS").

TORONTO, Aug. 3, 2012 /CNW/ - GMP Capital Inc. ("GMP") (TSX: GMP) today reported revenue of $62.7 million in second quarter
2012, representing a 7% decrease compared with the same period a year
ago. GMP recorded a net loss of $0.4 million and a net loss
attributable to common shareholders of $4.1 million ($0.06 net loss per
basic share) in second quarter 2012 compared with net income of $5.1
million and net income attributable to common shareholders of $2.7
million ($0.04 per basic share) in second quarter 2011.�� This quarter's
results continued to be affected by the adverse market conditions.

"The fragility of the capital markets environment has been exacerbated
by ongoing European sovereign debt concerns and an anaemic global
economic outlook.�� The resulting negative market sentiment has led to a
significant retrenchment of risk among investors contributing to a
sharp contraction in capital markets activity," said Harris Fricker,
Chief Executive Officer, GMP.�� "Not surprisingly, the pace of client
trading and equity underwriting activity has slowed considerably with
the severity of this downturn.�� Despite the unfavourable market
conditions, we are pleased with the performance of our M&A franchise,
which delivered solid results this quarter, and our new high yield
business which continued to gain momentum as we married our
traditionally strong origination ability with a first-rate distribution
network via GMP Securities, LLC."��

FINANCIAL HIGHLIGHTS

Second Quarter 2012 versus Second Quarter 2011

Net loss of $0.4 million compared with net income of $5.1 million

Net loss attributable to common shareholders of $4.1 million compared
with net income attributable to common shareholders of $2.7 million

Net loss per basic share of $0.06 compared with earnings per basic share
of $0.04

Annualized return on common shareholders' equity ("ROE")¹ was negative 6.8% compared with positive 3.7%

Excluding the share-based compensation expense (the "Retention Shares")
recorded in second quarter 2012 in connection with the common shares
issued to certain key employees of GMP Securities, LLC ("GMP USA"),
adjusted net income¹ was $0.6 million, adjusted net loss per basic share¹ was $0.05 and adjusted annualized ROE¹ was negative 5.2%

First Half 2012 versus First Half 2011

Net loss of $0.2 million compared with net income of $31.3 million

Net loss attributable to common shareholders of $6.4 million compared
with net income attributable to common shareholders of $25.1 million

Net loss per basic share of $0.10 compared with earnings per basic share
of $0.37

Annualized ROE¹ was negative 5.2% compared with positive 16.6%

Excluding the expense related to the Retention Shares recorded in first
half 2012, adjusted net income¹ was $1.8 million, adjusted net loss per basic share¹ was $0.07 and adjusted annualized ROE¹ was negative 3.6%

Excluding costs recorded in connection with the redemption of our long
term debt in first half 2011, adjusted net income¹ was $35.2 million, adjusted net income per basic share¹ was $0.42 and adjusted annualized ROE¹ was 19.0%

Commenting further, Mr. Fricker said, "In light of the prolonged
downturn in the capital markets and uncertainty as to timing of
sustained global economic recovery, we remain focused on preserving our
considerable capital strength, closely monitoring and managing risk and
limiting costs.�� Despite market conditions, we continue to invest in
our franchise and we believe we have the people, platform and product
capabilities that will allow us to excel in normalized markets."

SECOND QUARTER 2012 BUSINESS HIGHLIGHTS

CAPITAL MARKETS

Revenue of $56.4 million, a decrease of 7% compared with second quarter
2011 primarily due to lower commission revenue reflecting lower client
trading volumes and lower equity underwriting activity, particularly in
the Canadian resource sectors.�� Partly offsetting these decreases was a
year-over-year increase in advisory revenue and improved debt
underwriting results as we continue to grow our fixed income franchise.

Expenses of $53.4 million, an increase of 10% compared with second
quarter 2011 primarily reflecting the incremental costs associated with
GMP USA acquired in third quarter 2011 and our Australian operations
which were launched in second quarter 2011.

Income before income taxes of $3.1 million in second quarter 2012
compared with $12.1 million in second quarter 2011.

GMP Securities L.P. ("GMP Securities") Highlights:

ranked eighth in the dollar value of common equity underwriting
transactions completed in Canada for which we were lead or co-lead;²

ranked sixth in equity block trading volumes on the Toronto Stock
Exchange and TSX Venture Exchange, achieving a 5.0% market share;³

participated in 47 underwriting transactions completed in Canada helping
raise approximately $3.7 billion on behalf of clients, leading or
co-leading 10 of these transactions with an aggregate dollar value of
$1.1 billion;⁴ and

advised on seven M&A transactions announced in Canada valued at US$1.8
billion⁵.

WEALTH MANAGEMENT

The Wealth Management segment is comprised of GMP's non-controlling
ownership interest in Richardson GMP Limited ("Richardson GMP").��
Wealth Management reported a loss before income taxes of $0.7 million
in second quarter 2012 compared with income before income taxes of $0.5
million in second quarter 2011.�� Wealth Management's second quarter
2012 results reflect lower operating performance by Richardson GMP
primarily due to lower client trading volumes as a result of the
continued challenging market environment.��

Richardson GMP Highlights (100% basis):

assets under administration¹ of $13.7 billion; and

111 investment advisory teams strategically located in offices across
Canada.

ALTERNATIVE INVESTMENTS

Revenue of $2.0 million, a decrease of 28% compared with second quarter
2011 due primarily to the deconsolidation of EdgeStone Capital
Partners, L.P. from GMP's financial results in fourth quarter 2011;

loss before income taxes of $1.2 million compared with a loss before
income taxes of $1.1 million in second quarter 2011;

GMP Investment Management L.P. ended the quarter with assets under
management¹ of $578 million; and

generated a return of 12.0% in first half 2012 for the Canadian ABCP
Fund L.P., net of management fees and other expenses.

DIVIDENDS

On August 2, 2012, GMP's board of directors declared a quarterly cash
dividend of $0.05 per common share and a quarterly cash dividend of
$0.3438 per Cumulative 5-Year Rate Reset Preferred Share, Series B,
each payable on September 30, 2012⁶, to the respective shareholders of record at the close of business on
September 10, 2012.

____________________________________

¹ Considered to be a non-GAAP financial measure. This measure does not
have any standardized meaning prescribed by generally accepted
accounting principles ("GAAP") under IFRS and is therefore unlikely to
be comparable to similar measures presented by other issuers.�� This
data should be read in conjunction with the "Non-GAAP Measures" section
at the end of this press release and the "Presentation of Financial
Information and Non-GAAP Measures" section in the second quarter 2012
Management's Discussion and Analysis.

² Source: FPinfomart as at July 9, 2012.

³ Source: CanadaEquity.com as at July 9, 2012.

⁴ Source: GMP Capital Inc. internal reports as at July 9, 2012.

⁵ Source: Mergermarket as at July 9, 2012.

⁶ In the event that the payment date is not a business day, such dividend
shall be paid on the next succeeding day that is a business day.

CONFERENCE CALL

GMP executives will host a conference call and live audio webcast today
at 10:00 a.m. (ET) to discuss GMP's second quarter 2012 results.��
Interested parties are invited to access the conference call by dialing
416-644-3415 or 1-877-974-0445 (toll free) or via live audio webcast at
http://www.gmpcapital.com/investor.�� A recording of the conference call will be available until Friday,
August 10, 2012, by dialing 416-640-1917 or 1-877-289-8525 (toll free)
and entering access code 4546890#. The webcast will be archived at http://www.gmpcapital.com/investor.

NON-GAAP MEASURES

Consistent with GMP's management framework, management uses certain
measures to assess GMP's financial performance, which are not GAAP
measures under IFRS. These measures do not have any standardized
meaning prescribed by GAAP and are therefore unlikely to be comparable
to similar measures presented by other issuers. Non-GAAP measures
should not be considered as alternatives to net income or comparable
metrics determined in accordance with IFRS as indicators of GMP's
performance, liquidity, cash flows and profitability.�� For further
information refer to the "Presentation of Financial Information and
Non-GAAP Measures" section in the second quarter 2012 Management's
Discussion and Analysis.

The following table provides a reconciliation of GMP's reported results
to its adjusted measures:

($000s, except as otherwise noted)

��

Three months ended

June 30, 2012

��

Six months ended

June 30, 2012

��

Six months ended

June 30, 2011

��

Reported Results

��

(Loss) income before income taxes

��

(809)

��

(942)

��

42,415

Income tax (benefit) expense

��

(433)

��

(777)

��

11,092

Net (loss) income

��

(376)

��

(165)

��

31,323

Net (loss) income attributable to common shareholders

��

(4,087)

��

(6,375)

��

25,120

��

Reported Measures ��

��

Net (loss) income per common share ��

��

Basic

��

($0.06)

��

($0.10)

��

$0.37

��

Diluted ¹

��

($0.06)

��

($0.10)

��

$0.33

Average common equity

��

240,248

��

243,787

��

302,311

Return on common equity ²

��

(6.8%)

��

(5.2%)

��

16.6%

��

Pre-tax Impact of Adjusting Items

��

Corporate Segment

��

Charges to Interest expense - Redemption of senior unsecured notes ³

��

��

��

��

��

5,466

Capital Markets Segment

��

Charges to Employee compensation and benefits - Deferred share-based
awards ⁴

��

1,758

��

3,502

��

��

Impact of adjusting items on income before income taxes

��

1,758

��

3,502

��

5,466

��

After-Tax Impact of Adjusting Items ��

��

Redemption costs associated with senior unsecured notes

��

��

��

��

��

3,908

��

Cost of deferred share-based awards

��

981

��

1,956

��

��

Impact of adjusting items on:

��

Net income

��

981

��

1,956

��

3,908

��

Net income attributable to common shareholders

��

981

��

1,956

��

3,908

��

Net income per common share:

��

Basic

��

0.01

��

0.03

��

0.06

��

Diluted

��

0.01

��

0.03

��

0.05

��

Adjusted Results ⁵

��

Income before income taxes

��

949

��

2,560

��

47,881

Income tax expense

��

344

��

769

��

12,650

Net income

��

605

��

1,791

��

35,231

Net (loss) income attributable to common shareholders

��

(3,106)

��

(4,419)

��

29,028

��

Adjusted Measures ⁵

��

Net (loss) income per common share

��

Basic

��

(0.05)

��

(0.07)

��

0.42

��

Diluted ��

��

(0.05)

��

(0.07)

��

0.38

Average common equity

��

240,738

��

244,764

��

305,242

Return on common equity

��

(5.2%)

��

(3.6%)

��

19.0%

��

In the case of a net loss, the effect of common share options and
warrants potentially exercisable and the impact of shares pledged on
share purchase loans and other common shares subject to vesting
conditions under stock-based compensation programs on diluted net loss
per common share will be anti-dilutive; therefore, basic and diluted
net loss per common share will be the same.

��

Considered to be a non-GAAP financial measure.�� Return on common equity
does not have any standardized meaning prescribed by GAAP under IFRS
and is therefore unlikely to be comparable to similar measures
presented by other issuers.�� This data should be read in conjunction
with the "Presentation of Financial Information and Non-GAAP Measures"
section in the Second Quarter 2012 Management's Discussion and
Analysis.

��

Represents the impact of the one-time redemption costs (the "Redemption
Costs") recorded in connection with the redemption of all of the
outstanding senior unsecured notes issued by Griffiths McBurney L.P.,
an indirect, wholly-owned subsidiary of GMP.

��

⁴

��

Represents the share-based compensation expense recorded in connection
with the common shares issued to certain key employees of GMP USA in
connection with our acquisition of GMP USA in third quarter 2011.

��

⁵

��

Adjusted results and measures are considered to be non-GAAP financial
measures.�� These measures do not have any standardized meaning
prescribed by GAAP under IFRS and are therefore unlikely to be
comparable to similar measures presented by other issuers.�� The table
above outlines such measures with their closest GAAP counterparts.
Management believes that presenting certain results and measures on an
adjusted basis which excludes the impacts of specified items may be
more reflective of ongoing operating results and provides readers with
an enhanced understanding of how management views GMP's core
performance. Management assesses performance on both a reported and an
adjusted basis and considers both bases to be useful in assessing
underlying, ongoing business performance. Presenting results on both
bases also permits readers to assess the impact of the specified items
on the results for the periods presented.

��

FORWARD-LOOKING INFORMATION

This press release contains "forward-looking information" as defined
under applicable Canadian securities laws.�� This information includes,
but is not limited to, statements concerning our 2012 objectives, our
strategies to achieve those objectives, as well as statements made with
respect to management's beliefs, plans, estimates, projections and
intentions, and similar statements concerning anticipated future
events, results, circumstances, performance or expectations that are
not historical facts. Forward-looking information generally can be
identified by the use of forward-looking terminology such as "outlook",
"objective", "may", "will", "expect", "intend", "estimate",
"anticipate", "believe", "should", "plans" or "continue", or similar
expressions suggesting future outcomes or events. Such forward-looking
information reflects management's current beliefs and is based on
information currently available to management.

Forward-looking information is not a guarantee of future performance and
is subject to numerous risks and uncertainties, including those
described in this press release. GMP's primary business activities are
both competitive and subject to various risks. These risks include
market, credit, liquidity, operational and legal and regulatory risks
and other risk factors including, without limitation, variations in the
market value of securities, the volatility and liquidity of equity and
fixed income trading markets, the volume of new financings and mergers
and acquisitions ("M&A"), dependence on key personnel and
sustainability of fees. Other factors, such as general economic
conditions, including interest rate and exchange rate fluctuations, may
also have an effect on GMP's results of operations. Many of these risks
and uncertainties can affect GMP's actual results and could cause its
actual results to differ materially from those expressed or implied in
any forward-looking information disclosed by management or on its
behalf.�� For a description of additional risks that could cause our
actual results to materially differ from our current expectations, see
the "Risk Management" section in the Second Quarter 2012 MD&A and "Risk
Factors" in GMP's annual information form dated March 13, 2012. These
risks and uncertainties are not the only ones facing GMP, together with
its consolidated operations controlled by it (the "GMP Group").��
Additional risks and uncertainties not currently known to us or that
that we currently consider immaterial, may also impair the operations
of the GMP Group. Material assumptions or factors underlying the
forward-looking information contained in this press release are set out
in the "Business Environment and Market Outlook" section of the Second
Quarter 2012 MD&A and include, without limitation: further escalation
of the sovereign debt crisis in Europe, slowing growth in emerging
markets, the increasing debt burden in the U.S., and the ongoing
fragile prospects for global economic recovery. Although
forward-looking information contained in this press release is based
upon what management believes are reasonable assumptions, there can be
no assurance that actual results will be consistent with this
forward-looking information. Certain statements included in this press
release may be considered a "financial outlook" for purposes of
applicable Canadian securities laws, and as such the financial outlook
may not be appropriate for purposes other than this press release. The
forward-looking information contained in this press release is made as
of the date of this press release, and should not be relied upon as
representing GMP's views as of any date subsequent to the date of this
press release. Except as required by applicable law, management and the
Board of Directors undertake no obligation to publicly update or revise
any forward-looking information, whether as a result of new
information, future events or otherwise.

ABOUT GMP CAPITAL INC.

GMP Capital Inc. ("GMP") is a leading independent diversified financial
services firm headquartered in Toronto, Canada, providing a wide range
of financial products and services to a client base that includes
corporate clients, institutional investors and high-net-worth
individuals in three integrated reporting segments. The Capital Markets
segment provides investment banking, including advisory and
underwriting services, institutional sales and trading and research
through offices located in Toronto, Montreal, Calgary, New York, Miami,
Dallas, London, Perth and Sydney.�� The Capital Markets segment conducts
its business through the following operating entities: GMP Securities
L.P., GMP Securities, LLC, Griffiths McBurney Corp., GMP Securities
Europe LLP and GMP Securities Australia Pty Limited. Wealth Management
consists of GMP's non-controlling ownership interest in Richardson GMP
Limited, a full-service independent firm focused on providing exclusive
and comprehensive wealth management and investment services delivered
by an experienced team of investment professionals. The Alternative
Investments segment consists of the investment management and
alternative investment products provided by GMP Investment Management
L.P. GMP is listed on the Toronto Stock Exchange under the symbol
"GMP". For further information, please visit our corporate website at gmpcapital.com.

SOURCE: GMP Capital Inc.

For further information:

GMP Capital Inc.
Rocco Colella, Director, Investor Relations
145 King Street West, Suite 300, Toronto, Ontario M5H 1J8
Tel: (416) 941-0894; Fax: (416) 943-6175
rcolella@gmpcapital.com or��investorrelations@gmpcapital.com

Canada Dividend Investor

Friday, August 3, 2012

GMP - <span class="din">GMP Capital Inc. Reports Second Quarter 2012 Results</span> (CAD 0.05)

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