CI Financial Reports Financial Results for the Third Quarter of 2022
CI Financial Corp. (TSX: CIX, NYSE: CIXX) reported mixed financial results for Q3 2022, with diluted EPS of $0.08 and adjusted EPS of $0.73. EBITDA was $117.1 million, while adjusted EBITDA reached $237.5 million. Total assets increased by 1.3% over Q2 to $338.0 billion. Net income fell sharply to $14.9 million from $156.2 million in Q2, attributed to lower revenues due to declining global financial asset values. Despite a 36.9% increase in total expenses, the firm successfully repurchased 5.6 million shares for $79.8 million and paid a quarterly dividend of $0.18.
- Adjusted EBITDA of $237.5 million reflects disciplined expense management.
- Acquisitions of two RIAs added $17.9 billion in assets and strengthened U.S. wealth management.
- Strong net sales of $0.6 billion in Canadian retail asset management, surpassing industry redemptions.
- Net income decreased significantly to $14.9 million from $156.2 million, indicating weakened performance.
- Total net revenues fell 9.4% to $513.6 million due to declining average AUM.
- Total expenses surged by 36.9% to $475.8 million, posing concerns for profitability.
-
Diluted EPS of
, adjusted EPS1 of$0.08 $0.73 -
EBITDA of
, adjusted EBITDA1 of$117.1 million $237.5 million -
Operating cash flow of
, free cash flow1 of$64.8 million $151.5 million -
Total assets of
, up$338.0 billion 1.3% over Q2 and up7.9% year-over-year -
Repurchased 5.6 million shares for
$79.8 million -
Paid quarterly dividend of
a share, totalling$0.18 $34.6 million -
Acquired two RIAs in October, adding
in assets and increasing$17.9 billion U.S. wealth management assets to approximately$167.8 billion
All financial amounts in Canadian dollars at
“CI continues to produce exceptional results in the face of difficult and turbulent market conditions,” said
“In asset management, CI’s Canadian retail businesses had net sales of
“This strength stems from the meaningful changes we have made to our asset management business, including transitioning from a legacy multi-boutique investment team model to a single, fully integrated modern asset management platform, significantly improving relative investment performance, building a more robust and diverse product lineup, and changing our approach to distribution and marketing.
“Our Canadian wealth management business continues to experience strong net flows, reflecting the quality of our advisory businesses and illustrating how investors seek out the most qualified and credible advisors during challenging market and economic environments,”
“The growth and development of CI Private Wealth US continues at a robust pace. We recently completed the acquisitions of two high-quality, established RIAs, adding a combined
“We continue to prepare for an IPO of the
CI also announced that it intends to delist its shares from the
Operating and financial data highlights
[millions of dollars, except share amounts] |
As of and for the quarters ended |
||||||||||||||
|
|
|
|
|
|||||||||||
Total AUM and Client Assets: |
|
|
|
|
|
||||||||||
Asset Management AUM |
114,196 |
|
116,065 |
|
136,271 |
|
144,247 |
|
139,380 |
|
|||||
Canada Wealth Management assets |
73,976 |
|
74,128 |
|
78,957 |
|
80,633 |
|
76,859 |
|
|||||
|
149,841 |
|
143,520 |
|
145,768 |
|
151,339 |
|
96,974 |
|
|||||
Total assets |
338,014 |
|
333,712 |
|
360,996 |
|
376,219 |
|
313,213 |
|
|||||
|
|
|
|
|
|
||||||||||
Asset Management Net Inflows: |
|
|
|
|
|
||||||||||
Retail |
640 |
|
(381 |
) |
(861 |
) |
142 |
|
684 |
|
|||||
Institutional |
(21 |
) |
(3,203 |
) |
(264 |
) |
(331 |
) |
(126 |
) |
|||||
|
(377 |
) |
(122 |
) |
(305 |
) |
82 |
|
159 |
|
|||||
Closed Business |
(129 |
) |
(160 |
) |
(203 |
) |
(195 |
) |
(146 |
) |
|||||
|
(38 |
) |
(195 |
) |
402 |
|
260 |
|
250 |
|
|||||
Total |
75 |
|
(4,060 |
) |
(1,231 |
) |
(42 |
) |
821 |
|
|||||
|
|
|
|
|
|
||||||||||
IFRS Results |
|
|
|
|
|
||||||||||
Net income attributable to shareholders |
14.9 |
|
156.2 |
|
138.1 |
|
123.7 |
|
43.8 |
|
|||||
Diluted earnings per share |
0.08 |
|
0.81 |
|
0.70 |
|
0.62 |
|
0.22 |
|
|||||
Pretax income |
37.8 |
|
219.0 |
|
185.8 |
|
175.1 |
|
82.4 |
|
|||||
Pretax margin |
7.4 |
% |
38.6 |
% |
29.3 |
% |
28.3 |
% |
15.9 |
% |
|||||
Operating cash flow before the change in operating
|
64.8 |
|
141.2 |
|
207.7 |
|
179.2 |
|
135.2 |
|
|||||
|
|
|
|
|
|
||||||||||
Adjusted Results |
|
|
|
|
|
||||||||||
Adjusted net income |
135.9 |
|
149.1 |
|
166.8 |
|
171.0 |
|
159.2 |
|
|||||
Adjusted diluted earnings per share |
0.73 |
|
0.78 |
|
0.85 |
|
0.86 |
|
0.79 |
|
|||||
Adjusted EBITDA |
237.5 |
|
251.0 |
|
272.9 |
|
277.2 |
|
258.1 |
|
|||||
Adjusted EBITDA margin |
43.0 |
% |
44.5 |
% |
46.5 |
% |
47.7 |
% |
47.0 |
% |
|||||
Free cash flow |
151.5 |
|
176.4 |
|
201.6 |
|
187.1 |
|
180.9 |
|
|||||
|
|
|
|
|
|
||||||||||
Average shares outstanding |
185,601,752 |
|
191,151,896 |
|
196,111,771 |
|
196,816,227 |
|
199,321,002 |
|
|||||
Ending shares outstanding |
183,526,499 |
|
189,037,762 |
|
192,987,082 |
|
197,422,270 |
|
197,443,135 |
|
|||||
|
|
|
|
|
|
||||||||||
Total debt |
3,949 |
|
3,688 |
|
3,530 |
|
3,776 |
|
3,408 |
|
|||||
Net debt |
3,730 |
|
3,538 |
|
3,352 |
|
3,453 |
|
2,655 |
|
|||||
Net debt to adjusted EBITDA |
4.0 |
|
3.5 |
|
3.0 |
|
3.1 |
|
2.6 |
|
- Free cash flow, net debt, adjusted net income, adjusted earnings per share and adjusted EBITDA are not standardized earnings measures prescribed by IFRS. For further information, see “Non-IFRS Measures” note below.
Financial highlights
Net income declined to
Third quarter total net revenues declined
Third quarter total expenses increased
Capital allocation
In the third quarter of 2022, CI repurchased 5.6 million shares at a cost of
The Board of Directors declared a quarterly dividend of
Third quarter business highlights
- CI entered into a long-term strategic partnership with CGI, one of the world’s largest business and IT consulting firms, under which CGI will transform CI’s Canadian investment fund transfer agency operations into an industry-leading platform with enhanced capabilities. Under the agreement, CGI has assumed responsibility for managing CI’s proprietary transfer agency platform and related technology, operations and client services functions. As part of the partnership, CGI retained members of CI’s IT, operations and client services groups, who continue to support CI’s business at CGI.
-
Reflecting CI’s strategic priority of modernizing its asset management business, CI Global Asset Management (“CI GAM”) continued its active pace of product innovation and development. CI GAM launched four new mandates during the third quarter focused on areas with high growth potential, including real assets, alternatives, and ESG. The new mandates were CI Auspice Broad Commodity ETF,
CI Alternative Multi-Strategy Fund ,CI Global Sustainable Infrastructure Fund andCI Global Green Bond Fund , with the latter two offered in both mutual fund and ETF series.
Following quarter-end:
-
CI completed the acquisitions of two registered investment advisor (“RIA”) firms in October, adding a combined total of approximately
in assets to CI Private Wealth US and increasing CI’s total$17.9 billion U.S. wealth management assets to approximately . They included:$167.8 billion -
The
Boston -based team and assets ofEaton Vance WaterOak Advisors (formerly Eaton Vance Investment Counsel). The team, which has been named CI Eaton Private Wealth, oversees in client assets, primarily focused on serving ultra-high-net-worth families in$13.2 billion New England with comprehensive wealth planning and investment management services. -
Inverness Counsel, LLC , aNew York City -based RIA managing and specializing in holistic financial and estate planning and investment advisory for a client base comprised of ultra-high-net-worth families. The firm has been rebranded CI Inverness Private Wealth.$4.8 billion
-
The
-
Leonard “Lennie” Gullan joined CI Private Wealth US as Executive Vice President and Chief Operating Officer, effective
October 1, 2022 . In this role,Mr. Gullan oversees theU.S. business’s daily operations, trading and technology, and leads the firm’s initiatives to integrate and transform operations, platforms and technologies across the CIPW businesses. He also assists in developing the firm’s strategic direction and identifying and evaluating acquisition opportunities.Mr. Gullan joins CIPW fromCitadel , where he was a Managing Director and held a variety of senior leadership positions, including COO ofGlobal Equities , and Chief Technology Officer and COO of Core Engineering. Most recently, he was responsible for leading Citadel’s strategic and transformational objectives. Prior toCitadel , he worked atMcKinsey & Company , where he consulted for asset and wealth managers on a variety of strategic and M&A related topics. He is a graduate of theUniversity of North Carolina at Chapel Hill and holds an MBA from theUniversity of Chicago Booth School of Business . -
Several CI financial advisors in
the United States andCanada were recognized in prestigious industry rankings:-
Seven CIPW US advisory teams were named to the Barron’s 2022 list of Top 100 RIA Firms. They included: CI BDF Private Wealth, CI Eaton Private Wealth,
Dowling & Yahnke Wealth Advisors , Gofen and Glossberg, RegentAtlantic,RGT Wealth Advisors , and CISegall Bryant & Hamill Private Wealth. In addition,Daniel Roe of Budros Ruhlin Roe was named to the Barron’s list of Top 100Independent Advisors . -
Three advisory teams were named to the 2022 Forbes/SHOOK list of Top RIAs: CI Barrett Private Wealth, CI BDF Private Wealth, and
RGT Wealth Advisors . -
Two advisors with CI Assante Wealth Management were named to the Globe and Mail’s list of Canada’s
Top Wealth Advisors for 2022, a ranking developed bySHOOK Research, LLC . The advisors arePeter Pomponio ofDorval, Quebec , andRob McClelland ofThornhill, Ontario .
-
Seven CIPW US advisory teams were named to the Barron’s 2022 list of Top 100 RIA Firms. They included: CI BDF Private Wealth, CI Eaton Private Wealth,
-
On
November 1, 2002 , CI GAM introduced two new global fixed-income mandates, providing Canadian investors with additional options for income and diversification:CI Global Investment Grade ETF and CI Global Bond Currency Neutral Fund , available in both mutual fund and ETF series.
Analysts’ conference call
CI will hold a conference call with analysts today at
Alternatively, investors may listen to the discussion through the following numbers (access code: 442598):
-
Canada toll-free: 1-833-950-0062 -
United States toll-free: 1-844-200-6205 -
United States (New York local): 1-646-904-5544 - All other locations: 1-929-526-1599.
A recording of the webcast will be archived on CI’s Investor Relations site.
About
CI operates in three segments:
-
Asset Management, which includes the operations of
CI Global Asset Management andAustralia -basedGSFM Pty Ltd. -
Canadian Wealth Management, which includes the operations of CI Assante Wealth Management,
Aligned Capital Partners , CI Private Wealth (Canada ), Northwood Family Office,CI Direct Investing and CI Investment Services . -
U.S. Wealth Management, which includes CI Private Wealth US, a national network of best-in-class wealth management teams.
CI is headquartered in
Barron’s publishes the Top RIA Firms and Top 100
The Forbes ranking of America’s Top RIA Firms, developed by
The Globe and Mail’s ranking of Canada’s
Commissions, trailing commissions, management fees and expenses all may be associated with an investment in mutual funds and exchange-traded funds (ETFs). Please read the prospectus before investing. Important information about mutual funds and ETFs is contained in their respective prospectus. Mutual funds and ETFs are not guaranteed; their values change frequently, and past performance may not be repeated. You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on recognized Canadian exchanges. If the units are purchased or sold on these Canadian exchanges, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them.
This press release contains forward-looking statements concerning anticipated future events, results, circumstances, performance or expectations with respect to
This communication is provided as a general source of information and should not be considered personal, legal, accounting, tax or investment advice, or construed as an endorsement or recommendation of any entity or security discussed. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies.
CI Global Asset Management is a registered business name of CI Investments Inc.
CONSOLIDATED STATEMENT OF INCOME |
||||||
For the three-month period ended |
||||||
|
|
2022 |
|
2021 |
||
[in thousands of Canadian dollars, except per share amounts] |
$ |
$ |
||||
REVENUE |
|
|
||||
|
|
386,734 |
|
|
460,928 |
|
Trailer fees and deferred sales commissions |
|
(119,229 |
) |
|
(143,401 |
) |
Net asset management fees |
|
267,505 |
|
|
317,527 |
|
|
|
129,189 |
|
|
132,467 |
|
|
|
164,071 |
|
|
108,100 |
|
Other revenues |
|
26,649 |
|
|
11,158 |
|
Foreign exchange (losses) |
|
(73,897 |
) |
|
(50,264 |
) |
Other gains (losses) |
|
102 |
|
|
(1,102 |
) |
Total net revenues |
|
513,619 |
|
|
517,886 |
|
|
|
|
||||
EXPENSES |
|
|
||||
Selling, general and administrative |
|
245,574 |
|
|
201,897 |
|
Advisor and dealer fees |
|
98,293 |
|
|
103,367 |
|
Interest and lease finance |
|
38,575 |
|
|
31,604 |
|
Amortization and depreciation |
|
12,975 |
|
|
10,341 |
|
Amortization of intangible assets from acquisitions |
|
27,725 |
|
|
16,420 |
|
Transaction, integration, restructuring and legal settlements |
|
13,089 |
|
|
3,937 |
|
Change in fair value of contingent consideration |
|
22,466 |
|
|
61,423 |
|
Other |
|
17,094 |
|
|
6,495 |
|
Total expenses |
|
475,791 |
|
|
435,484 |
|
Income before income taxes |
|
37,828 |
|
|
82,402 |
|
|
|
|
||||
Provision for (recovery of) income taxes |
|
|
||||
Current |
|
47,882 |
|
|
47,039 |
|
Deferred |
|
(24,413 |
) |
|
(10,072 |
) |
|
|
23,469 |
|
|
36,967 |
|
Net income (loss) for the period |
|
14,359 |
|
|
45,435 |
|
Net income (loss) attributable to non-controlling interests |
|
(523 |
) |
|
1,601 |
|
Net income (loss) attributable to shareholders |
|
14,882 |
|
|
43,834 |
|
Basic earnings per share attributable to shareholders |
$ |
0.08 |
|
$ |
0.22 |
|
Diluted earnings per share attributable to shareholders |
$ |
0.08 |
|
$ |
0.22 |
|
|
|
|
||||
Other comprehensive income, net of tax |
|
|
||||
Exchange differences on translation of foreign operations |
|
60,858 |
|
|
34,463 |
|
Total other comprehensive income, net of tax |
|
60,858 |
|
|
34,463 |
|
Comprehensive income for the period |
|
75,217 |
|
|
79,898 |
|
Comprehensive income attributable to non-controlling interests |
|
2,024 |
|
|
2,471 |
|
Comprehensive income attributable to shareholders |
|
73,193 |
|
|
77,427 |
|
CONSOLIDATED BALANCE SHEET |
|||||
|
As at |
As at |
|||
|
|
|
|||
[in thousands of Canadian dollars] |
$ |
$ |
|||
ASSETS |
|
|
|||
Current |
|
|
|||
Cash and cash equivalents |
220,438 |
|
230,779 |
|
|
Client and trust funds on deposit |
1,383,306 |
|
1,199,904 |
|
|
Investments |
37,590 |
|
131,772 |
|
|
Accounts receivable and prepaid expenses |
276,884 |
|
272,962 |
|
|
Income taxes receivable |
25,994 |
|
3,607 |
|
|
Total current assets |
1,944,212 |
|
1,839,024 |
|
|
Capital assets, net |
56,747 |
|
52,596 |
|
|
Right-of-use assets |
145,762 |
|
142,606 |
|
|
Intangibles |
6,653,020 |
|
6,185,237 |
|
|
Deferred income taxes |
67,713 |
|
56,901 |
|
|
Other assets |
415,913 |
|
383,187 |
|
|
Total assets |
9,283,367 |
|
8,659,551 |
|
|
LIABILITIES AND EQUITY |
|
|
|||
Current |
|
|
|||
Accounts payable and accrued liabilities |
316,157 |
|
369,081 |
|
|
Current portion of provisions and other financial liabilities |
384,389 |
|
572,432 |
|
|
Redeemable non-controlling interests |
640,816 |
|
— |
|
|
Dividends payable |
66,070 |
|
71,072 |
|
|
Client and trust funds payable |
1,390,562 |
|
1,202,079 |
|
|
Income taxes payable |
3,531 |
|
19,035 |
|
|
Current portion of long-term debt |
400,513 |
|
444,486 |
|
|
Current portion of lease liabilities |
21,929 |
|
20,216 |
|
|
Total current liabilities |
3,223,967 |
|
2,698,401 |
|
|
Long-term debt |
3,548,199 |
|
3,331,552 |
|
|
Provisions and other financial liabilities |
185,066 |
|
379,641 |
|
|
Deferred income taxes |
481,384 |
|
480,777 |
|
|
Lease liabilities |
155,770 |
|
153,540 |
|
|
Total liabilities |
7,594,386 |
|
7,043,911 |
|
|
Equity |
|
|
|||
Share capital |
1,692,395 |
|
1,810,153 |
|
|
Contributed surplus |
39,510 |
|
28,368 |
|
|
Deficit |
(118,247 |
) |
(226,715 |
) |
|
Accumulated other comprehensive income (loss) |
45,682 |
|
(23,289 |
) |
|
Total equity attributable to the shareholders of the Company |
1,659,340 |
|
1,588,517 |
|
|
Non-controlling interests |
29,641 |
|
27,123 |
|
|
Total equity |
1,688,981 |
|
1,615,640 |
|
|
Total liabilities and equity |
9,283,367 |
|
8,659,551 |
|
STATEMENT OF CASH FLOWS | ||||||
For the three-month period ended |
||||||
|
2022 |
|
2021 |
|
||
[in thousands of Canadian dollars] |
$ |
$ |
||||
OPERATING ACTIVITIES (*) |
|
|
||||
Net income for the period |
14,359 |
|
45,435 |
|
||
Add (deduct) items not involving cash |
|
|
||||
Other losses (gains) |
(102 |
) |
931 |
|
||
Change in fair value of contingent consideration |
22,466 |
|
61,423 |
|
||
Contingent consideration recorded as compensation 8 |
3,789 |
|
4,196 |
|
||
Recognition of vesting of redeemable non-controlling interests |
907 |
|
— |
|
||
Equity-based compensation |
7,142 |
|
6,484 |
|
||
Amortization and depreciation |
12,975 |
|
10,341 |
|
||
Amortization of intangible assets from acquisitions |
27,725 |
|
16,420 |
|
||
Deferred income taxes |
(24,413 |
) |
(10,072 |
) |
||
Cash provided by operating activities before net change in operating assets and liabilities |
64,848 |
|
135,158 |
|
||
Net change in operating assets and liabilities |
38,412 |
|
47,337 |
|
||
Cash provided by operating activities |
103,260 |
|
182,495 |
|
||
INVESTING ACTIVITIES |
|
|
||||
Purchase of investments |
(503 |
) |
(3,589 |
) |
||
Proceeds on sale of investments |
903 |
|
1,215 |
|
||
Additions to capital assets |
(4,061 |
) |
(1,123 |
) |
||
Decrease (increase) in other assets |
42,829 |
|
(2,402 |
) |
||
Additions to intangibles |
(2,449 |
) |
(3,888 |
) |
||
Cash paid to settle acquisition liabilities |
(27,063 |
) |
(43,628 |
) |
||
Acquisitions, net of cash acquired |
— |
|
(134,375 |
) |
||
Cash provided by (used in) investing activities |
9,656 |
|
(187,790 |
) |
||
FINANCING ACTIVITIES |
|
|
||||
Issuance of long-term debt |
75,000 |
|
— |
|
||
Repurchase of share capital |
(79,422 |
) |
(99,100 |
) |
||
Payment of lease liabilities |
(5,864 |
) |
(6,040 |
) |
||
Net distributions to non-controlling interest |
(2,444 |
) |
(745 |
) |
||
Dividends paid to shareholders |
(34,592 |
) |
(36,239 |
) |
||
Cash used in financing activities |
(47,322 |
) |
(142,124 |
) |
||
Net increase (decrease) in cash and cash equivalents during the period |
65,594 |
|
(147,419 |
) |
||
Cash and cash equivalents, beginning of period |
154,844 |
|
801,338 |
|
||
Cash and cash equivalents, end of period |
220,438 |
|
653,919 |
|
||
(*) Included in operating activities are the following: |
|
|
||||
Interest paid |
12,919 |
|
10,887 |
|
||
Income taxes paid |
70,687 |
|
39,215 |
|
ASSETS UNDER MANAGEMENT AND |
||||||||||||||
[billions of dollars] |
Quarters ended |
|||||||||||||
|
|
|
|
|
||||||||||
Beginning AUM |
116.1 |
|
136.3 |
|
144.2 |
|
139.4 |
|
138.2 |
|
||||
Gross inflows |
4.9 |
|
4.8 |
|
4.9 |
|
5.2 |
|
5.1 |
|
||||
Gross outflows |
(4.8 |
) |
(8.7 |
) |
(6.6 |
) |
(5.5 |
) |
(4.5 |
) |
||||
Net inflows/(outflows) |
0.1 |
|
(3.9 |
) |
(1.6 |
) |
(0.3 |
) |
0.6 |
|
||||
Acquisitions |
— |
|
— |
|
— |
|
— |
|
— |
|
||||
Market moves and FX |
(2.0 |
) |
(16.3 |
) |
(6.3 |
) |
5.2 |
|
0.6 |
|
||||
Ending AUM |
114.2 |
|
116.1 |
|
136.3 |
|
144.2 |
|
139.4 |
|
||||
Proprietary AUM |
30.4 |
|
30.8 |
|
34.5 |
|
36.2 |
|
34.7 |
|
||||
Non-proprietary AUM |
83.7 |
|
85.2 |
|
101.7 |
|
108.1 |
|
104.7 |
|
||||
Average assets under management |
119.1 |
|
125.4 |
|
138.2 |
|
143.0 |
|
141.1 |
|
||||
Annualized organic growth |
0.4 |
% |
(11.4 |
) % |
(4.6 |
) % |
(0.9 |
) % |
1.6 |
% |
||||
|
|
|
|
|
|
|||||||||
Gross management fee/average AUM |
1.30 |
% |
1.31 |
% |
1.30 |
% |
1.30 |
% |
1.31 |
% |
||||
Net management fee/average AUM |
0.88 |
% |
0.89 |
% |
0.88 |
% |
0.88 |
% |
0.88 |
% |
||||
|
|
|
|
|
|
|||||||||
Net Inflows |
|
|
|
|
|
|||||||||
Retail |
0.6 |
|
(0.4 |
) |
(0.9 |
) |
0.1 |
|
0.7 |
|
||||
Institutional |
— |
|
(3.2 |
) |
(0.3 |
) |
(0.3 |
) |
(0.1 |
) |
||||
Closed business |
(0.1 |
) |
(0.2 |
) |
(0.2 |
) |
(0.2 |
) |
(0.1 |
) |
||||
Total |
0.5 |
|
(3.7 |
) |
(1.3 |
) |
(0.4 |
) |
0.4 |
|
||||
|
(0.4 |
) |
(0.1 |
) |
(0.3 |
) |
0.1 |
|
0.2 |
|
||||
Total net inflows/(outflows) |
0.1 |
|
(3.9 |
) |
(1.6 |
) |
(0.3 |
) |
0.6 |
|
RETAIL (ex Closed Business) |
|||||||||||||
[billions of dollars] |
Quarters ended |
||||||||||||
|
|
|
|
|
|||||||||
Beginning AUM |
95.1 |
|
108.4 |
|
114.6 |
|
110.4 |
109.1 |
|||||
Net Flows |
0.6 |
|
(0.4 |
) |
(0.9 |
) |
0.1 |
0.7 |
|||||
Market Move / FX |
(1.7 |
) |
(12.9 |
) |
(5.3 |
) |
4.1 |
0.6 |
|||||
Acquisitions |
___ |
___ |
___ |
___ |
0.2 |
||||||||
Ending AUM |
94.0 |
|
95.1 |
|
108.4 |
|
114.6 |
110.4 |
|||||
Average AUM |
97.9 |
|
101.4 |
|
109.6 |
|
113.8 |
111.8 |
INSTITUTIONAL | ||||||||||||||
[billions of dollars] |
Quarters ended |
|||||||||||||
|
|
|
|
|
||||||||||
Beginning AUM |
8.4 |
|
12.7 |
|
13.3 |
|
13.0 |
13.0 |
|
|||||
Net Flows |
0.0 |
|
(3.2 |
) |
(0.3 |
) |
0.3 |
(0.1 |
) |
|||||
Market Move / FX |
(0.1 |
) |
(1.1 |
) |
(0.3 |
) |
0.6 |
0.1 |
|
|||||
Acquisitions |
___ |
___ |
___ |
___ |
___ |
|||||||||
Ending AUM |
8.3 |
|
8.4 |
|
12.7 |
|
13.3 |
13.0 |
|
|||||
Average AUM |
8.6 |
|
10.2 |
|
12.9 |
|
13.2 |
13.3 |
|
|
|||||||||||||
[billions of dollars] |
Quarters ended |
||||||||||||
|
|
|
|
|
|||||||||
Beginning AUM |
5.1 |
|
6.6 |
|
7.3 |
|
7.0 |
6.9 |
|||||
Net Flows |
(0.4 |
) |
(0.1 |
) |
(0.3 |
) |
0.1 |
0.1 |
|||||
Market Move / FX |
0.0 |
|
(1.4 |
) |
(0.4 |
) |
0.2 |
0.0 |
|||||
Acquisitions |
___ |
___ |
___ |
___ |
___ |
||||||||
Ending AUM |
4.7 |
|
5.1 |
|
6.6 |
|
7.3 |
7.0 |
|||||
Average AUM |
4.9 |
|
5.8 |
|
7.0 |
|
7.1 |
7.0 |
CLOSED BUSINESS |
|||||||||||||||
[billions of dollars] |
Quarters ended |
||||||||||||||
|
|
|
|
|
|||||||||||
Beginning AUM |
7.5 |
|
8.6 |
|
9.1 |
|
9.0 |
|
9.1 |
|
|||||
Net Flows |
(0.1 |
) |
(0.2 |
) |
(0.2 |
) |
(0.2 |
) |
(0.2 |
) |
|||||
Market Move / FX |
(0.1 |
) |
(0.9 |
) |
(0.3 |
) |
0.3 |
|
(0.0 |
) |
|||||
Acquisitions |
___ |
___ |
___ |
___ |
___ |
||||||||||
Ending AUM |
7.3 |
|
7.5 |
|
8.6 |
|
9.1 |
|
8.9 |
|
|||||
Average AUM |
7.6 |
|
8.0 |
|
8.7 |
|
9.0 |
|
9.0 |
|
AUM BY ASSET CLASS |
||||||||||
[billions of dollars] |
Quarters ended |
|||||||||
|
|
|
|
|
||||||
Balanced |
49.8 |
50.9 |
59.4 |
62.1 |
60.3 |
|||||
Equity |
40.2 |
41.4 |
49.3 |
52.3 |
50.1 |
|||||
Fixed income |
11.2 |
11.7 |
13.1 |
14.2 |
14.1 |
|||||
Alternatives |
3.8 |
3.6 |
4.9 |
5.7 |
5.0 |
|||||
Cash/Other |
4.5 |
3.4 |
3.0 |
2.7 |
2.8 |
|||||
Total |
109.5 |
111.0 |
129.7 |
137.0 |
132.4 |
|||||
|
4.7 |
5.1 |
6.6 |
7.3 |
7.0 |
|||||
Total asset management segment |
114.2 |
116.1 |
136.3 |
144.2 |
139.4 |
|
|||||||||||||||
[billions of dollars] |
Quarters ended |
||||||||||||||
|
|
|
|
|
|||||||||||
Beginning client assets |
74.1 |
|
79.0 |
|
80.6 |
|
76.9 |
|
75.5 |
|
|||||
Acquisitions |
— |
|
2.4 |
|
— |
|
— |
|
— |
|
|||||
Net flows and market move |
(0.2 |
) |
(7.2 |
) |
(1.7 |
) |
3.8 |
|
1.3 |
|
|||||
Ending client assets |
74.0 |
|
74.1 |
|
79.0 |
|
80.6 |
|
76.9 |
|
|||||
Average client assets |
76.0 |
|
77.7 |
|
79.0 |
|
78.9 |
|
77.0 |
|
|||||
Wealth management fees/average client assets |
0.90 |
% |
0.91 |
% |
0.95 |
% |
0.93 |
% |
0.94 |
% |
|
|||||||||||||||
[billions of dollars] |
Quarters ended |
||||||||||||||
|
|
|
|
|
|||||||||||
Beginning billable client assets |
138.8 |
|
141.2 |
|
146.4 |
|
96.1 |
|
82.9 |
|
|||||
Acquisitions |
— |
|
7.1 |
|
1.1 |
|
49.3 |
|
10.1 |
|
|||||
Net flows and market move |
6.2 |
|
(9.5 |
) |
(6.3 |
) |
1.0 |
|
3.1 |
|
|||||
Ending billable client assets |
144.9 |
|
138.8 |
|
141.2 |
|
146.4 |
|
96.1 |
|
|||||
Non-billable client assets |
4.9 |
|
4.8 |
|
4.6 |
|
4.9 |
|
0.9 |
|
|||||
Total client assets |
149.8 |
|
143.5 |
|
145.8 |
|
151.3 |
|
97.0 |
|
|||||
Fees/beginning billable client assets |
0.47 |
% |
0.48 |
% |
0.46 |
% |
0.50 |
% |
0.52 |
% |
NON-IFRS MEASURES
In an effort to provide additional information regarding our results as determined by IFRS, we also disclose certain non-IFRS information which we believe provides useful and meaningful information. Our management reviews these non-IFRS financial measurements when evaluating our financial performance and results of operations; therefore, we believe it is useful to provide information with respect to these non-IFRS measurements so as to share this perspective of management. Non-IFRS measurements do not have any standardized meaning, do not replace nor are superior to IFRS financial measurements and may not be comparable to similar measures presented by other companies. The non-IFRS financial measurements include:
- Adjusted net income and adjusted basic and diluted earnings per share
- Adjusted EBITDA and adjusted EBITDA margin
- Free cash flow
- Net debt.
These non-IFRS measurements exclude the following revenues and expenses which we believe allows investors a consistent way to analyze our financial performance, allows for better analysis of core operating income and business trends and permits comparisons of companies within the industry, normalizing for different financing methods and levels of taxation:
- gains or losses related to foreign currency fluctuations on our cash balances
-
costs related to our acquisitions including:
- amortization of intangible assets
- change in fair value of contingent consideration
- related advisory fees
- contingent consideration classified as compensation per IFRS
- restructuring charges including organizational expenses for the establishment of CIPW
- legal provisions for a class action related to market timing
- certain gains or losses in assets and investments
- costs related to issuing or retiring debt obligations
- expenses associated with CIPW redeemable units.
Further explanations of these Non-IFRS measures can be found in the “Non-IFRS Measures” section of Management’s Discussion and Analysis dated
ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE |
||||||
[millions of dollars, except per share amounts] |
Quarters ended |
|||||
|
|
|
||||
Net Income |
14.4 |
158.3 |
45.4 |
|||
Amortization of intangible assets from acquisitions |
27.7 |
27.4 |
16.8 |
|||
Change in fair value of contingent consideration |
22.5 |
(75.0) |
61.4 |
|||
Contingent consideration recorded as compensation |
3.8 |
0.7 |
4.2 |
|||
Non-controlling interest reclassification |
1.0 |
0.9 |
— |
|||
CIPW adjustments |
11.5 |
3.1 |
— |
|||
FX (gains)/losses |
73.9 |
32.9 |
50.3 |
|||
Transaction, integration, restructuring and legal |
13.1 |
4.6 |
3.9 |
|||
Other (gains)/losses |
— |
(1.2) |
— |
|||
Trading and bad debt |
8.0 |
— |
— |
|||
Total adjustments1 |
161.5 |
(6.7) |
136.6 |
|||
Tax effect of adjustments |
(27.8) |
5.6 |
(21.2) |
|||
Less: Non-controlling interest |
12.1 |
8.1 |
1.6 |
|||
Adjusted net income |
135.9 |
149.1 |
159.2 |
|||
Adjusted earnings per share |
0.73 |
0.78 |
0.80 |
|||
Adjusted diluted earnings per share |
0.73 |
0.78 |
0.79 |
1. Adjustment effects on income statement line items: bond redemption costs are included in other expense, CIPW adjustments and contingent consideration recorded as compensation are included in SG&A, amortization of intangible assets from acquisitions, change in fair value of contingent consideration, FX (gains)/losses, other (gains)/losses, and bond redemption costs are included in the line items of the same description.
EBITDA, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN |
|||||||||
[millions of dollars, except per share amounts] |
Quarters ended |
||||||||
|
|
|
|||||||
Pretax income |
37.8 |
|
219.0 |
|
82.4 |
|
|||
Amortization of intangible assets from acquisitions |
27.7 |
|
27.4 |
|
16.9 |
|
|||
Depreciation and other amortization |
13.0 |
|
11.9 |
|
10.3 |
|
|||
Interest and lease finance expense |
38.6 |
|
36.2 |
|
31.6 |
|
|||
EBITDA |
117.1 |
|
294.6 |
|
141.3 |
|
|||
Change in fair value of contingent consideration |
22.5 |
|
(75.0 |
) |
61.4 |
|
|||
Contingent consideration recorded as compensation |
3.8 |
|
0.7 |
|
4.2 |
|
|||
Non-controlling interest reclassification |
1.0 |
|
0.9 |
|
— |
|
|||
CIPW adjustments |
11.5 |
|
3.1 |
|
— |
|
|||
FX (gains)/losses |
73.9 |
|
32.9 |
|
50.3 |
|
|||
Transaction, integration, restructuring and legal |
13.1 |
|
4.6 |
|
3.9 |
|
|||
Other (gains)/losses |
— |
|
(1.2 |
) |
— |
|
|||
Trading and bad debt |
8.0 |
|
— |
|
— |
|
|||
Total adjustments |
133.8 |
|
(34.1 |
) |
119.8 |
|
|||
Non-controlling interest |
13.4 |
|
9.5 |
|
3.0 |
|
|||
Adjusted EBITDA |
237.5 |
|
251.0 |
|
258.1 |
|
|||
|
|
|
|
||||||
Reported net revenue |
513.6 |
|
566.7 |
|
517.9 |
|
|||
Less: FX gains/(losses) |
(73.9 |
) |
(32.9 |
) |
(50.3 |
) |
|||
Less: Non-Operating Other gains/(losses) |
— |
|
1.2 |
|
— |
|
|||
Less: NCI revenues |
35.1 |
|
34.8 |
|
19.4 |
|
|||
Adjusted net revenue |
552.4 |
|
563.5 |
|
548.7 |
|
|||
Adjusted EBITDA margin |
43.0 |
% |
44.5 |
% |
47.0 |
% |
FREE CASH FLOW |
|||||||||
[millions of dollars] |
Quarters ended |
||||||||
|
|
|
|||||||
Cash provided by operating activities |
103.3 |
|
164.1 |
|
182.5 |
|
|||
Net change in operating assets and liabilities |
38.4 |
|
22.9 |
|
47.3 |
|
|||
Operating cash flow before the change in operating assets and liabilities |
64.8 |
|
141.2 |
|
135.2 |
|
|||
FX (gains)/losses |
73.9 |
|
32.9 |
|
50.3 |
|
|||
Transaction, integration, restructuring and legal |
13.1 |
|
4.6 |
|
3.9 |
|
|||
Trading and bad debt |
8.0 |
|
— |
|
— |
|
|||
Total adjustments |
95.0 |
|
37.5 |
|
54.2 |
|
|||
Tax effect (recovery) of adjustments |
(14.1 |
) |
(5.7 |
) |
(5.9 |
) |
|||
Less: Non-controlling interest |
(5.8 |
) |
(3.4 |
) |
2.6 |
|
|||
Free cash flow |
151.5 |
|
176.4 |
|
180.9 |
|
NET DEBT |
|
|
|
|
|
|||||
|
Quarters ended |
|||||||||
[millions of dollars] |
|
|
|
|
|
|||||
Current portion of long-term debt |
400.5 |
314.6 |
225.3 |
444.5 |
74.2 |
|||||
Long-term debt |
3,548.2 |
3,373.5 |
3,304.7 |
3,331.6 |
3,334.2 |
|||||
|
3,948.7 |
3,688.1 |
3,530.0 |
3,776.0 |
3,408.4 |
|||||
Less: |
|
|
|
|
|
|||||
Cash and short-term investments |
220.4 |
154.8 |
186.1 |
230.8 |
653.9 |
|||||
Marketable securities |
17.8 |
18.1 |
20.3 |
116.9 |
122.5 |
|||||
Add: |
|
|
|
|
|
|||||
Regulatory capital and non-controlling interests |
19.9 |
22.4 |
28.8 |
25.0 |
23.1 |
|||||
Net Debt |
3,730.3 |
3,537.5 |
3,352.4 |
3,453.4 |
2,655.1 |
|||||
|
|
|
|
|
|
|||||
Adjusted EBITDA |
237.5 |
251.0 |
272.9 |
277.2 |
258.1 |
|||||
Adjusted EBITDA, annualized |
942.1 |
1,006.9 |
1,106.6 |
1,099.8 |
1,024.1 |
|||||
Gross leverage (Gross debt/Annualized adjusted EBITDA) |
4.2 |
3.7 |
3.2 |
3.4 |
3.3 |
|||||
Net leverage (Net debt/Annualized adjusted EBITDA) |
4.0 |
3.5 |
3.0 |
3.1 |
2.6 |
SUMMARY OF QUARTERLY RESULTS |
||||||||||||||||||||||||||||||||
[millions of dollars, except per share amounts] |
IFRS Results |
|
Adjusted Results |
|||||||||||||||||||||||||||||
For the quarters ended |
|
For the quarters ended |
||||||||||||||||||||||||||||||
Sep.
|
Jun.
|
Mar.
|
Dec.
|
Sep.
|
|
Sep.
|
Jun.
|
Mar.
|
Dec.
|
Sep.
|
||||||||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Asset management fees |
386.7 |
|
404.3 |
|
437.6 |
|
464.9 |
|
460.9 |
|
|
386.7 |
|
404.3 |
|
437.6 |
|
464.9 |
|
460.9 |
|
|||||||||||
Trailer fees and deferred sales commissions |
(119.2 |
) |
(124.0 |
) |
(135.3 |
) |
(143.6 |
) |
(143.4 |
) |
|
(119.2 |
) |
(124.0 |
) |
(135.3 |
) |
(143.6 |
) |
(143.4 |
) |
|||||||||||
Net asset management fees |
267.5 |
|
280.3 |
|
302.3 |
|
321.3 |
|
317.5 |
|
|
267.5 |
|
280.3 |
|
302.3 |
|
321.3 |
|
317.5 |
|
|||||||||||
|
129.2 |
|
130.1 |
|
138.2 |
|
134.9 |
|
132.5 |
|
|
129.2 |
|
130.1 |
|
138.2 |
|
134.9 |
|
132.5 |
|
|||||||||||
|
164.1 |
|
168.9 |
|
164.5 |
|
120.9 |
|
108.1 |
|
|
164.1 |
|
168.9 |
|
164.5 |
|
120.9 |
|
108.1 |
|
|||||||||||
Other revenues |
26.6 |
|
21.2 |
|
21.6 |
|
27.3 |
|
11.2 |
|
|
26.6 |
|
21.2 |
|
21.6 |
|
27.3 |
|
11.2 |
|
|||||||||||
FX gains/(losses) |
(73.9 |
) |
(32.9 |
) |
11.5 |
|
3.1 |
|
(50.3 |
) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||
Other gains/(losses) |
0.1 |
|
(1.1 |
) |
(4.4 |
) |
11.9 |
|
(1.1 |
) |
|
0.1 |
|
(2.3 |
) |
(4.4 |
) |
(4.9 |
) |
(1.1 |
) |
|||||||||||
Total net revenues |
513.6 |
|
566.7 |
|
633.8 |
|
619.3 |
|
517.9 |
|
|
587.5 |
|
598.3 |
|
622.3 |
|
599.4 |
|
568.2 |
|
|||||||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Selling, general & administrative |
245.6 |
|
238.0 |
|
259.3 |
|
214.6 |
|
201.9 |
|
|
230.3 |
|
234.2 |
|
227.9 |
|
212.5 |
|
197.7 |
|
|||||||||||
Advisor and dealer fees |
98.3 |
|
99.7 |
|
106.9 |
|
104.8 |
|
103.4 |
|
|
98.3 |
|
99.7 |
|
106.9 |
|
104.8 |
|
103.4 |
|
|||||||||||
Other |
17.1 |
|
4.7 |
|
3.6 |
|
5.7 |
|
6.5 |
|
|
8.1 |
|
3.8 |
|
2.7 |
|
5.7 |
|
6.5 |
|
|||||||||||
Interest and lease finance expense |
38.6 |
|
36.2 |
|
35.9 |
|
32.5 |
|
31.6 |
|
|
38.6 |
|
36.2 |
|
35.9 |
|
32.5 |
|
31.6 |
|
|||||||||||
Depreciation and other amortization |
13.0 |
|
11.9 |
|
11.4 |
|
10.9 |
|
10.3 |
|
|
13.0 |
|
11.9 |
|
11.4 |
|
10.4 |
|
10.0 |
|
|||||||||||
Amortization of intangible assets from acquisitions |
27.7 |
|
27.4 |
|
24.1 |
|
18.2 |
|
16.4 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||
Transaction, integration, restructuring and legal |
13.1 |
|
4.6 |
|
3.8 |
|
13.6 |
|
3.9 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||
Change in fair value of contingent consideration |
22.5 |
|
(75.0 |
) |
3.1 |
|
43.9 |
|
61.4 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||
Total expenses |
475.8 |
|
347.7 |
|
448.0 |
|
444.2 |
|
435.5 |
|
|
388.2 |
|
386.0 |
|
384.8 |
|
365.9 |
|
349.2 |
|
|||||||||||
Pretax income |
37.8 |
|
219.0 |
|
185.8 |
|
175.1 |
|
82.4 |
|
|
199.3 |
|
212.3 |
|
237.5 |
|
233.4 |
|
219.0 |
|
|||||||||||
Income tax expense |
23.5 |
|
60.7 |
|
48.3 |
|
51.3 |
|
37.0 |
|
|
51.3 |
|
55.1 |
|
59.7 |
|
62.5 |
|
58.1 |
|
|||||||||||
Net income |
14.4 |
|
158.3 |
|
137.5 |
|
123.7 |
|
45.4 |
|
|
148.1 |
|
157.2 |
|
177.8 |
|
171.0 |
|
160.9 |
|
|||||||||||
Non-controlling interest |
(0.5 |
) |
2.1 |
|
(0.6 |
) |
— |
|
1.6 |
|
|
12.1 |
|
8.1 |
|
10.9 |
|
— |
|
1.6 |
|
|||||||||||
Net income attributable to shareholders |
14.9 |
|
156.2 |
|
138.1 |
|
123.7 |
|
43.8 |
|
|
135.9 |
|
149.1 |
|
166.8 |
|
171.0 |
|
159.2 |
|
|||||||||||
Basic earnings per share |
0.08 |
|
0.82 |
|
0.70 |
|
0.63 |
|
0.22 |
|
|
0.73 |
|
0.78 |
|
0.85 |
|
0.87 |
|
0.80 |
|
|||||||||||
Diluted earnings per share |
0.08 |
|
0.81 |
|
0.70 |
|
0.62 |
|
0.22 |
|
|
0.73 |
|
0.78 |
|
0.85 |
|
0.86 |
|
0.79 |
|
RESULTS OF OPERATIONS - ASSET MANAGEMENT SEGMENT |
||||||||||||||||||||||||||||||||
[millions of dollars, except per share amounts] |
IFRS Results |
|
Adjusted Results |
|||||||||||||||||||||||||||||
For the quarters ended |
|
For the quarters ended |
||||||||||||||||||||||||||||||
Sep.
|
Jun.
|
Mar.
|
Dec.
|
Sep.
|
|
Sep.
|
Jun.
|
Mar.
|
Dec.
|
Sep.
|
||||||||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Asset management fees |
390.9 |
|
408.9 |
|
442.5 |
|
469.6 |
|
465.6 |
|
|
390.9 |
|
408.9 |
|
442.5 |
|
469.6 |
|
465.6 |
|
|||||||||||
Trailer fees and deferred sales commissions |
(126.8 |
) |
(131.9 |
) |
(143.9 |
) |
(152.6 |
) |
(152.4 |
) |
|
(126.8 |
) |
(131.9 |
) |
(143.9 |
) |
(152.6 |
) |
(152.4 |
) |
|||||||||||
Net asset management fees |
264.1 |
|
277.0 |
|
298.6 |
|
316.9 |
|
313.2 |
|
|
264.1 |
|
277.0 |
|
298.6 |
|
316.9 |
|
313.2 |
|
|||||||||||
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||
US wealth and asset management fees |
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||
Other revenues |
6.6 |
|
5.6 |
|
10.2 |
|
19.9 |
|
3.2 |
|
|
6.6 |
|
5.6 |
|
10.2 |
|
19.9 |
|
3.2 |
|
|||||||||||
FX gains/(losses) |
(74.4 |
) |
(32.8 |
) |
11.4 |
|
(1.4 |
) |
(19.0 |
) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||
Other gains/(losses) |
0.1 |
|
(1.1 |
) |
(4.4 |
) |
12.0 |
|
(1.1 |
) |
|
0.1 |
|
(2.3 |
) |
(4.4 |
) |
(4.8 |
) |
(1.1 |
) |
|||||||||||
Total net revenues |
196.4 |
|
248.7 |
|
315.8 |
|
347.5 |
|
296.3 |
|
|
270.7 |
|
280.2 |
|
304.4 |
|
332.1 |
|
315.3 |
|
|||||||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Selling, general & administrative |
98.7 |
|
97.3 |
|
96.8 |
|
108.7 |
|
109.6 |
|
|
98.7 |
|
97.3 |
|
96.8 |
|
108.7 |
|
109.6 |
|
|||||||||||
Advisor and dealer fees |
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||
Other |
7.2 |
|
— |
|
— |
|
(0.5 |
) |
1.6 |
|
|
— |
|
— |
|
— |
|
(0.5 |
) |
1.6 |
|
|||||||||||
Interest and lease finance expense |
1.0 |
|
1.0 |
|
1.0 |
|
0.5 |
|
0.5 |
|
|
1.0 |
|
1.0 |
|
1.0 |
|
0.5 |
|
0.5 |
|
|||||||||||
Depreciation and other amortization |
5.0 |
|
5.0 |
|
5.0 |
|
5.4 |
|
5.5 |
|
|
5.0 |
|
5.0 |
|
5.0 |
|
5.4 |
|
5.5 |
|
|||||||||||
Amortization of intangible assets from acquisitions |
0.6 |
|
0.6 |
|
0.6 |
|
0.6 |
|
0.6 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||
Transaction, integration, restructuring and legal |
2.6 |
|
2.3 |
|
(0.9 |
) |
10.4 |
|
0.4 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||
Change in fair value of contingent consideration |
3.2 |
|
(3.9 |
) |
4.0 |
|
14.2 |
|
1.9 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||
Total expenses |
118.2 |
|
102.3 |
|
106.5 |
|
139.3 |
|
120.2 |
|
|
104.6 |
|
103.3 |
|
102.8 |
|
114.1 |
|
117.2 |
|
|||||||||||
Pretax income |
78.2 |
|
146.4 |
|
209.3 |
|
208.1 |
|
176.1 |
|
|
166.1 |
|
176.9 |
|
201.6 |
|
218.0 |
|
198.1 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Non-IFRS adjustments |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Pretax income |
78.2 |
|
146.4 |
|
209.3 |
|
208.1 |
|
176.1 |
|
|
166.1 |
|
176.9 |
|
201.6 |
|
218.0 |
|
198.1 |
|
|||||||||||
Amortization of intangible assets from acquisitions |
0.6 |
|
0.6 |
|
0.6 |
|
0.6 |
|
0.6 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||
Depreciation and other amortization |
5.0 |
|
5.0 |
|
5.0 |
|
5.4 |
|
5.5 |
|
|
5.0 |
|
5.0 |
|
5.0 |
|
5.4 |
|
5.5 |
|
|||||||||||
Interest and lease finance expense |
1.0 |
|
1.0 |
|
1.0 |
|
0.5 |
|
0.5 |
|
|
1.0 |
|
1.0 |
|
1.0 |
|
0.5 |
|
0.5 |
|
|||||||||||
EBITDA |
84.7 |
|
153.0 |
|
215.9 |
|
214.7 |
|
182.7 |
|
|
172.1 |
|
183.0 |
|
207.6 |
|
223.9 |
|
204.1 |
|
|||||||||||
Change in fair value of contingent consideration |
3.2 |
|
(3.9 |
) |
4.0 |
|
14.2 |
|
1.9 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||
FX (gains)/losses |
74.4 |
|
32.8 |
|
(11.4 |
) |
1.4 |
|
19.0 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||
Transaction, integration, restructuring and legal |
2.6 |
|
2.3 |
|
(0.9 |
) |
10.4 |
|
0.4 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||
Other (gains)/losses |
— |
|
(1.2 |
) |
— |
|
(16.8 |
) |
— |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||
Total adjustments |
87.3 |
|
30.0 |
|
(8.3 |
) |
9.2 |
|
21.4 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||
Less: Non-controlling interest |
0.1 |
|
0.3 |
|
0.4 |
|
0.1 |
|
0.5 |
|
|
0.1 |
|
0.3 |
|
0.4 |
|
0.1 |
|
0.5 |
|
|||||||||||
Adjusted EBITDA |
172.0 |
|
182.7 |
|
207.2 |
|
223.8 |
|
203.6 |
|
|
172.0 |
|
182.7 |
|
207.2 |
|
223.8 |
|
203.6 |
|
RESULTS OF OPERATIONS - |
|||||||||||||||||||||||||||||
[millions of dollars, except per share amounts] |
IFRS Results |
|
Adjusted Results |
||||||||||||||||||||||||||
For the quarters ended |
|
For the quarters ended |
|||||||||||||||||||||||||||
Sep.
|
Jun.
|
Mar.
|
Dec.
|
Sep.
|
|
Sep.
|
Jun.
|
Mar.
|
Dec.
|
Sep.
|
|||||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
171.7 |
|
175.6 |
|
185.7 |
|
184.3 |
|
181.7 |
|
|
171.7 |
175.6 |
|
185.7 |
184.3 |
|
181.7 |
|||||||||||
Other revenues |
25.5 |
|
21.3 |
|
17.1 |
|
16.0 |
|
14.8 |
|
|
25.5 |
21.3 |
|
17.1 |
16.0 |
|
14.8 |
|||||||||||
FX gains/(losses) |
0.5 |
|
— |
|
0.1 |
|
0.8 |
|
0.7 |
|
|
— |
— |
|
— |
— |
|
— |
|||||||||||
Other gains/(losses) |
— |
|
— |
|
— |
|
(0.1 |
) |
— |
|
|
— |
— |
|
— |
(0.1 |
) |
— |
|||||||||||
Total net revenues |
197.7 |
|
196.9 |
|
202.9 |
|
201.1 |
|
197.2 |
|
|
197.2 |
196.9 |
|
202.8 |
200.3 |
|
196.5 |
|||||||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Selling, general & administrative |
43.8 |
|
44.0 |
|
41.1 |
|
39.9 |
|
37.8 |
|
|
43.6 |
43.9 |
|
41.1 |
39.9 |
|
37.8 |
|||||||||||
Advisor and dealer fees |
132.4 |
|
135.9 |
|
145.6 |
|
145.2 |
|
143.5 |
|
|
132.4 |
135.9 |
|
145.6 |
145.2 |
|
143.5 |
|||||||||||
Other |
8.2 |
|
4.0 |
|
3.2 |
|
3.2 |
|
1.8 |
|
|
6.3 |
3.2 |
|
2.4 |
3.2 |
|
1.8 |
|||||||||||
Interest and lease finance expense |
— |
|
(0.1 |
) |
0.2 |
|
0.2 |
|
0.2 |
|
|
— |
(0.1 |
) |
0.2 |
0.2 |
|
0.2 |
|||||||||||
Depreciation and other amortization |
3.2 |
|
2.8 |
|
2.5 |
|
2.3 |
|
2.4 |
|
|
3.2 |
2.8 |
|
2.5 |
2.3 |
|
2.4 |
|||||||||||
Amortization of intangible assets from acquisitions |
2.1 |
|
2.1 |
|
1.6 |
|
1.5 |
|
1.7 |
|
|
— |
— |
|
— |
— |
|
— |
|||||||||||
Transaction, integration, restructuring and legal |
0.3 |
|
0.4 |
|
0.8 |
|
0.1 |
|
0.1 |
|
|
— |
— |
|
— |
— |
|
— |
|||||||||||
Change in fair value of contingent consideration |
(0.7 |
) |
(0.6 |
) |
— |
|
— |
|
— |
|
|
— |
— |
|
— |
— |
|
— |
|||||||||||
Total expenses |
189.3 |
|
188.5 |
|
195.0 |
|
192.6 |
|
187.5 |
|
|
185.6 |
185.6 |
|
191.7 |
191.0 |
|
185.7 |
|||||||||||
Pretax income |
8.4 |
|
8.4 |
|
7.9 |
|
8.5 |
|
9.7 |
|
|
11.6 |
11.4 |
|
11.1 |
9.3 |
|
10.8 |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Non-IFRS adjustments |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Pretax income |
8.4 |
|
8.4 |
|
7.9 |
|
8.5 |
|
9.7 |
|
|
11.6 |
11.4 |
|
11.1 |
9.3 |
|
10.8 |
|||||||||||
Amortization of intangible assets from acquisitions |
2.1 |
|
2.1 |
|
1.6 |
|
1.6 |
|
1.8 |
|
|
— |
— |
|
— |
0.1 |
|
0.1 |
|||||||||||
Depreciation and other amortization |
3.2 |
|
2.8 |
|
2.5 |
|
2.3 |
|
2.4 |
|
|
3.2 |
2.8 |
|
2.5 |
2.3 |
|
2.4 |
|||||||||||
Interest and lease finance expense |
— |
|
(0.1 |
) |
0.2 |
|
0.2 |
|
0.2 |
|
|
— |
(0.1 |
) |
0.2 |
0.2 |
|
0.2 |
|||||||||||
EBITDA |
13.7 |
|
13.1 |
|
12.1 |
|
12.6 |
|
14.0 |
|
|
14.9 |
14.0 |
|
13.8 |
11.9 |
|
13.5 |
|||||||||||
Change in fair value of contingent consideration |
(0.7 |
) |
(0.6 |
) |
— |
|
— |
|
— |
|
|
— |
— |
|
— |
— |
|
— |
|||||||||||
Contingent consideration recorded as compensation
|
0.1 |
|
0.1 |
|
— |
|
— |
|
— |
|
|
— |
— |
|
— |
— |
|
— |
|||||||||||
CIPW adjustments (included in SG&A) |
0.1 |
|
0.1 |
|
— |
|
— |
|
— |
|
|
— |
— |
|
— |
— |
|
— |
|||||||||||
FX (gains)/losses |
(0.5 |
) |
— |
|
(0.1 |
) |
(0.8 |
) |
(0.7 |
) |
|
— |
— |
|
— |
— |
|
— |
|||||||||||
Transaction, integration, restructuring and legal |
0.3 |
|
0.4 |
|
0.8 |
|
0.1 |
|
0.1 |
|
|
— |
— |
|
— |
— |
|
— |
|||||||||||
NCI reclassification (included in Other) |
1.0 |
|
0.9 |
|
0.9 |
|
— |
|
— |
|
|
— |
— |
|
— |
— |
|
— |
|||||||||||
Total adjustments |
1.2 |
|
0.8 |
|
1.6 |
|
(0.7 |
) |
(0.6 |
) |
|
— |
— |
|
— |
— |
|
— |
|||||||||||
Less: Non-controlling interest |
1.2 |
|
1.0 |
|
0.9 |
|
(1.5 |
) |
0.7 |
|
|
1.2 |
1.0 |
|
0.9 |
(1.5 |
) |
0.7 |
|||||||||||
Adjusted EBITDA |
13.7 |
|
13.0 |
|
12.9 |
|
13.5 |
|
12.8 |
|
|
13.7 |
13.0 |
|
12.9 |
13.5 |
|
12.8 |
RESULTS OF OPERATIONS - |
|||||||||||||||||||||||||||
[millions of dollars, except per share amounts] |
IFRS Results |
|
Adjusted Results |
||||||||||||||||||||||||
For the quarters ended |
|
For the quarters ended |
|||||||||||||||||||||||||
Sep.
|
Jun.
|
Mar.
|
Dec.
|
Sep.
|
|
Sep.
|
|
Jun.
|
Mar.
|
|
Dec.
|
|
Sep.
|
||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
164.1 |
|
168.9 |
|
164.5 |
|
120.9 |
|
108.1 |
|
|
164.1 |
168.9 |
164.5 |
120.9 |
108.1 |
|||||||||||
Other revenues |
4.2 |
|
4.5 |
|
4.8 |
|
1.3 |
|
2.6 |
|
|
4.2 |
4.5 |
4.8 |
1.3 |
2.6 |
|||||||||||
FX gains/(losses) |
— |
|
— |
|
— |
|
3.7 |
|
(31.9 |
) |
|
— |
— |
— |
— |
— |
|||||||||||
Total net revenues |
168.2 |
|
173.4 |
|
169.2 |
|
125.9 |
|
78.8 |
|
|
168.3 |
173.5 |
169.2 |
122.2 |
110.7 |
|||||||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Selling, general & administrative |
117.7 |
|
112.8 |
|
136.9 |
|
80.8 |
|
68.8 |
|
|
102.6 |
109.2 |
105.5 |
78.7 |
64.6 |
|||||||||||
Other |
1.8 |
|
0.7 |
|
0.4 |
|
2.9 |
|
3.1 |
|
|
1.8 |
0.7 |
0.4 |
2.9 |
3.1 |
|||||||||||
Interest and lease finance expense |
0.7 |
|
0.6 |
|
0.5 |
|
0.4 |
|
0.4 |
|
|
0.7 |
0.6 |
0.5 |
0.4 |
0.4 |
|||||||||||
Depreciation and other amortization |
4.8 |
|
4.1 |
|
3.9 |
|
3.1 |
|
2.5 |
|
|
4.8 |
4.1 |
3.9 |
3.1 |
2.5 |
|||||||||||
Amortization of intangible assets from acquisitions |
25.0 |
|
24.7 |
|
21.9 |
|
16.1 |
|
14.1 |
|
|
— |
— |
— |
— |
— |
|||||||||||
Transaction, integration, restructuring and legal |
10.2 |
|
2.0 |
|
3.9 |
|
3.1 |
|
3.4 |
|
|
— |
— |
— |
— |
— |
|||||||||||
Change in fair value of contingent consideration |
20.0 |
|
(70.5 |
) |
(0.9 |
) |
29.7 |
|
59.5 |
|
|
— |
— |
— |
— |
— |
|||||||||||
Total expenses |
180.1 |
|
74.4 |
|
166.5 |
|
136.1 |
|
151.7 |
|
|
109.8 |
114.6 |
110.3 |
85.2 |
70.5 |
|||||||||||
Pretax income |
(11.9 |
) |
99.0 |
|
2.7 |
|
(10.2 |
) |
(72.9 |
) |
|
58.4 |
58.9 |
59.0 |
37.0 |
40.2 |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Non-IFRS adjustments |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Pretax income |
(11.9 |
) |
99.0 |
|
2.7 |
|
(10.2 |
) |
(72.9 |
) |
|
58.4 |
58.9 |
59.0 |
37.0 |
40.2 |
|||||||||||
Amortization of intangible assets from acquisitions |
25.0 |
|
24.7 |
|
21.9 |
|
16.5 |
|
14.4 |
|
|
— |
— |
— |
0.5 |
0.3 |
|||||||||||
Depreciation and other amortization |
4.8 |
|
4.1 |
|
3.9 |
|
3.1 |
|
2.5 |
|
|
4.8 |
4.1 |
3.9 |
3.1 |
2.5 |
|||||||||||
Interest and lease finance expense |
0.7 |
|
0.6 |
|
0.5 |
|
0.4 |
|
0.4 |
|
|
0.7 |
0.6 |
0.5 |
0.4 |
0.4 |
|||||||||||
EBITDA |
18.6 |
|
128.4 |
|
29.1 |
|
9.9 |
|
(55.6 |
) |
|
63.9 |
63.5 |
63.4 |
41.0 |
43.4 |
|||||||||||
Change in fair value of contingent consideration |
20.0 |
|
(70.5 |
) |
(0.9 |
) |
29.7 |
|
59.5 |
|
|
— |
— |
— |
— |
— |
|||||||||||
Contingent consideration recorded as compensation
|
3.7 |
|
0.6 |
|
18.2 |
|
2.1 |
|
4.2 |
|
|
— |
— |
— |
— |
— |
|||||||||||
CIPW adjustments (included in SG&A) |
11.4 |
|
3.0 |
|
13.2 |
|
— |
|
— |
|
|
— |
— |
— |
— |
— |
|||||||||||
FX (gains)/losses |
— |
|
— |
|
— |
|
(3.7 |
) |
31.9 |
|
|
— |
— |
— |
— |
— |
|||||||||||
Transaction, integration, restructuring and legal |
10.2 |
|
2.0 |
|
3.9 |
|
3.1 |
|
3.4 |
|
|
— |
— |
— |
— |
— |
|||||||||||
Total adjustments |
45.3 |
|
(64.9 |
) |
34.3 |
|
31.1 |
|
99.0 |
|
|
— |
— |
— |
— |
— |
|||||||||||
Less: Non-controlling interest |
12.1 |
|
8.2 |
|
10.9 |
|
1.0 |
|
1.7 |
|
|
12.1 |
8.2 |
10.9 |
1.0 |
1.7 |
|||||||||||
Adjusted EBITDA |
51.8 |
|
55.4 |
|
52.5 |
|
40.0 |
|
41.7 |
|
|
51.8 |
55.4 |
52.5 |
40.0 |
41.7 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20221110005506/en/
Investor Relations
Vice-President, Investor Relations & Strategy
416-681-8779
jweyeneth@ci.com
Media
Vice-President, Communications
416-681-3254
moxby@ci.com
Managing Partner, StreetCred
610-304-4570
jimmy@streetcredpr.com
ci@streetcredpr.com
Source:
FAQ
What were CI Financial's earnings for Q3 2022?
How did CI Financial perform in Q3 2022 compared to Q2?
What significant changes occurred in CI Financial's assets?
What was CI Financial's adjusted EBITDA for Q3 2022?