CI Financial Reports Financial Results for the Second Quarter of 2023
Second quarter net income was $51.0 million compared to $30.0 million in the first quarter of 2023.
CI Financial Corp. (“CI”) (TSX: CIX) today released financial results for the quarter ended June 30, 2023.
“The second quarter was marked by several significant accomplishments across our business lines,” said Kurt MacAlpine, CI Chief Executive Officer.
“Our U.S. wealth management segment reported exceptional results, with year-over-year adjusted EBITDA1 growth of 42% for the first half of the year. Organic growth continued to be strong, with robust net flows. These results reflect the outstanding quality of the business and the progress we have made in integrating our acquired firms and leveraging our size and scale to enhance our capabilities and services.
“We continue to build on that success, acquiring three RIA firms in the past three months, adding approximately $14.2 billion in assets,” Mr. MacAlpine said. “Earlier this month, we rebranded CI Private Wealth as Corient, giving us a unified brand that better reflects our integrated, national platform and our unique vision for growth.
“The U.S. investment and the sale of our minority stake in Congress Wealth Management delivered a total of $1.5 billion in cash to CI. We repaid $1 billion in debt in the quarter, meeting our goal of materially deleveraging the company, and returned another $229 million to shareholders by buying back 17 million shares, at an average cost per share of $13.51.
“Our Canadian wealth management business reached a milestone in July with the successful conversion of Aligned Capital client assets to the CI Investment Services’ custody platform,” Mr. MacAlpine said. “This accomplishment, the culmination of 18 months of work, boosted CI Investment Services’ custody assets to $25 billion and represents an important step in the development of an industry-leading, integrated Canadian wealth management platform. Additionally, our Canadian advisory businesses continue to attract strong flows, a testament to the expertise and value provided by our advisor teams.”
In the Asset Management segment, CI’s Canadian retail business had slightly positive net sales in the second quarter, representing the fourth consecutive quarter of net sales and a contrast to net redemptions of $4.7 billion for the overall Canadian industry, as reported by the Investment Funds Institute of Canada. For the first half of the year, Canadian retail had net sales of $0.8 billion, while the Asset Management segment had net sales of $0.3 million.
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Operating and financial data highlights |
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[millions of dollars, except share amounts] |
As of and for the quarters ended |
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|
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
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Total AUM and Client Assets: |
|
|
|
|
|
||||
|
Asset Management AUM2 |
122,377 |
121,987 |
117,753 |
114,196 |
116,065 |
||||
|
Canada Wealth Management assets |
82,566 |
81,592 |
77,421 |
73,976 |
74,128 |
||||
|
U.S. Wealth Management assets3 |
193,980 |
187,481 |
180,579 |
149,841 |
143,520 |
||||
|
Total assets |
398,923 |
391,060 |
375,753 |
338,014 |
333,712 |
||||
|
|
|
|
|
|
|
||||
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Asset Management Net Inflows: |
|
|
|
|
|
||||
|
Retail |
7 |
841 |
1,621 |
640 |
(381) |
||||
|
Institutional |
(14) |
(177) |
(195) |
(21) |
(3,203) |
||||
|
Australia |
55 |
(81) |
12 |
(377) |
(122) |
||||
|
Closed Business |
(174) |
(195) |
(169) |
(129) |
(160) |
||||
|
Total Asset Management Segment |
(126) |
388 |
1,269 |
113 |
(3,866) |
||||
|
U.S. Asset Management4 |
(266) |
(67) |
595 |
(38) |
(195) |
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|
|
|
|
|
|
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IFRS Results |
|
|
|
|
|
||||
|
Net income attributable to shareholders |
51.0 |
30.0 |
(9.5) |
14.9 |
156.2 |
||||
|
Diluted earnings per share |
0.28 |
0.16 |
(0.05) |
0.08 |
0.81 |
||||
|
Pretax income |
112.5 |
54.8 |
33.6 |
37.8 |
219.0 |
||||
|
Pretax margin |
14.5% |
8.6 % |
5.4 % |
7.4 % |
38.6 % |
||||
|
Operating cash flow before the change in operating |
126.9 |
145.6 |
150.9 |
64.8 |
141.2 |
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assets and liabilities |
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|
|
|
|
|
|
||||
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Adjusted Results |
|
|
|
|
|
||||
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Adjusted net income |
136.0 |
136.8 |
135.9 |
135.9 |
149.1 |
||||
|
Adjusted diluted earnings per share |
0.76 |
0.74 |
0.74 |
0.73 |
0.78 |
||||
|
Adjusted EBITDA |
272.3 |
268.6 |
257.7 |
250.9 |
260.5 |
||||
|
Adjusted EBITDA margin |
40.6 % |
42.0 % |
42.1 % |
42.7 % |
43.5 % |
||||
|
Adjusted EBITDA attributable to shareholders |
245.3 |
250.1 |
242.7 |
237.5 |
251.0 |
||||
|
Free cash flow |
143.3 |
155.1 |
157.9 |
151.5 |
176.4 |
||||
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|
|
|
|
|
|
||||
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Average shares outstanding |
179,640,506 |
184,517,832 |
183,666,579 |
185,601,752 |
191,151,896 |
||||
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Ending shares outstanding |
167,640,863 |
184,517,832 |
184,517,832 |
183,526,499 |
189,037,762 |
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|
|
|
|
|
|
||||
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Total debt |
3,132 |
4,190 |
4,216 |
3,949 |
3,688 |
||||
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Net debt |
2,887 |
4,052 |
4,059 |
3,730 |
3,538 |
||||
|
Net debt to adjusted EBITDA |
2.9 |
4.0 |
4.2 |
4.0 |
3.5 |
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| 1. Free cash flow, net debt, adjusted net income, adjusted earnings per share, adjusted EBITDA, adjusted net revenues and adjusted expenses are not standardized earnings measures prescribed by IFRS. For further information, see “Non-IFRS Measures” note below. | |||||||||
|
2. Includes assets managed by CI and held by clients of advisors with Assante, CIPC, Aligned Capital of $32.8 billion, $33.0 billion, $31.9 billion, $30.4 billion, $30.8 billion as at June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022, and June 30, 2022, respectively. |
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| 3. Quarter-end USD/CAD exchange rates of 1.3248, 1.3515, 1.3540, 1.3813, 1.2872 for Q2-23, Q1-23, Q4-22, Q3-22, and Q2-22, respectively. | |||||||||
| 4. Includes 100% of inflows from CI’s minority investments in Columbia Pacific Advisors, OCM Capital Partners, The Cabana Group, and GLASfunds Holdings. | |||||||||
Financial highlights
Second quarter net income was $51.0 million compared to $30.0 million in the first quarter of 2023. Excluding non-operating items, adjusted net income1 was $136.0 million in the second quarter, little changed from the first quarter.
Second quarter total net revenues increased 21.7% to $776.1 million in the quarter from $637.8 million in the first quarter of 2023. Excluding non-operating items, adjusted total net revenues1 grew 2.3% to $654.8 million, driven by growth in the U.S. Wealth Management segment due to acquisitions during the quarter, as well as from the Canadian Wealth Management segment due to higher average assets. Asset Management segment revenues were essentially unchanged as higher average AUM was offset by fee rate decline due to asset mix shift.
First quarter total expenses increased 13.8% to $663.6 million in the quarter from $583.0 million in the first quarter of 2023. Excluding non-operating items, adjusted total expenses1 were up 1.9% to $439.9 million, reflecting higher SG&A due to U.S. segment acquisitions during the quarter as well as higher stock-based compensation.
Capital allocation
In the second quarter of 2023, CI repurchased 17.0 million shares at a cost of $228.8 million, for an average cost of $13.51 per share, and paid $32.9 million in dividends at a rate of $0.18 per share.
CI completed tender offers for three series of debentures, repurchasing $234,775,000 of its outstanding 3.215% Debentures due 2024, $370,762,000 of its outstanding 3.759% Debentures due 2025 and $97,531,000 of its outstanding 3.904% Debentures due 2027. CI also completely paid down its credit facility.
Dividend increase
The Board of Directors declared a $0.02 increase to its quarterly dividend to $0.20 per share, payable on January 15, 2024 to shareholders of record on December 29, 2023.
Second quarter business highlights
- CI completed the sale of a 20% minority investment in its U.S. wealth management business to a diversified group of leading institutional investors, including a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), Bain Capital, Flexpoint Ford, Ares Management funds, the State of Wisconsin, and others for proceeds of approximately $1.34 billion (US$1.0 billion).
- CI completed the acquisitions of two U.S. registered investment advisor (“RIA”) firms with combined assets of approximately $11.9 billion. The firms were Avalon Advisors, LLC of Houston, and La Ferla Group, LLC, which is based in Garden City, New York, and has offices in Bethesda, Maryland, and Macon, Georgia.
- CI sold its minority stake in Boston-based Congress Wealth Management, LLC (“Congress”) to Audax Private Equity. CI first invested in Congress in the third quarter of 2020.
- CI’s U.S. subsidiary, now known as Corient, launched a South Dakota trust company, allowing it to offer a variety of corporate trustee services to clients across the country.
- CI Global Asset Management enhanced its product lineup with the launch of the CI Asset Allocation ETFs, a suite of six low-cost all-in-one portfolio solutions. The ETFs leverage CI GAM’s professional management and deep expertise in asset allocation to provide portfolios meeting a range of investor profiles. CI GAM also continued to expand its alternatives offerings with the introduction of mutual fund series for CI Auspice Broad Commodity Fund, a liquid alternative fund previously available only as an ETF.
Following quarter-end:
- CI Private Wealth (U.S.) rebranded as Corient, which represents “client oriented” and expresses its commitment to helping clients achieve their financial goals. The new brand better reflects Corient’s capabilities as national integrated wealth management firm and clarifies for clients that they benefit from the expertise of the firm’s entire network. Corient now serves as the brand for all of the company’s offices, as it has discontinued co-branding with its legacy firm names. Corient is the trade name for Corient Private Wealth LLC.
- CI acquired Intercontinental Wealth Advisors, LLC, in July 2023. The firm, with approximately $2.3 billion in client assets, is based in San Antonio, Texas and has an office in Ft. Lauderdale, Florida. The firm provides comprehensive wealth management services to high-net-worth and ultra-high-net-worth clients and has developed expertise in serving those with international financial interests.
- CI reached an agreement to acquire Coriel Capital Inc. (“Coriel”), a Montreal-based wealth management firm serving ultra-high-net-worth Canadians. The firm, founded and led by women, operates as a “Chief Investment Officer” for wealthy families, and manages approximately $1.3 billion in client assets.
- The assets held by clients of Aligned Capital Partners were converted to the CI Investment Services (“CIIS”) custody and clearing platform. As a result, CIIS now administers over $25 billion in client assets.
- CI GAM implemented a series of changes to simplify and strengthen the competitiveness of its lineup of money market funds, including launching two money market ETFs.
Analysts’ conference call
CI will hold a conference call with analysts today at 9:00 a.m. EDT, led by Chief Executive Officer Kurt MacAlpine and Chief Financial Officer Amit Muni. A live webcast of the call and slide presentation can be accessed here, or through the Investor Relations section of CI’s website.
Alternatively, investors may listen to the discussion through the following numbers (access code: 861639):
- Canada toll-free: 1-833-950-0062
- United States toll-free: 1-833-470-1428
- All other locations: 1-929-526-1599.
A recording of the webcast will be archived on CI’s Investor Relations site.
About CI Financial
CI Financial Corp. is a diversified global asset and wealth management company operating primarily in Canada, the United States and Australia. Founded in 1965, CI has developed world-class portfolio management talent, extensive capabilities in all aspects of wealth planning, and a comprehensive product suite.
CI operates in three segments:
- Asset Management, which includes CI Global Asset Management, which operates in Canada, and GSFM Pty Ltd., which operates in Australia.
- 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 Corient Private Wealth, an integrated wealth management firm providing comprehensive solutions to ultra-high-net-worth and high-net-worth clients across the United States.
CI is headquartered in Toronto and listed on the Toronto Stock Exchange (TSX: CIX). To learn more, visit CI’s website or LinkedIn page.
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 CI Financial Corp. (“CI”) and its products and services, including its business operations, strategy and financial performance and condition. Forward-looking statements are typically identified by words such as “believe”, “expect”, “foresee”, “forecast”, “anticipate”, “intend”, “estimate”, “goal”, “plan” and “project” and similar references to future periods, or conditional verbs such as “will”, “may”, “should”, “could” or “would”. These statements are not historical facts but instead represent management beliefs regarding future events, many of which by their nature are inherently uncertain and beyond management’s control. Although management believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements involve risks and uncertainties. The material factors and assumptions applied in reaching the conclusions contained in the forward-looking statements include that the acquisition of Coriel will be completed and that asset levels will remain stable. The foregoing list is not exhaustive and the reader is cautioned to consider these and other factors carefully and not to place undue reliance on forward-looking statements. Other than as specifically required by applicable law, CI undertakes no obligation to update or alter any forward-looking statement after the date on which it is made, whether to reflect new information, future events or otherwise.
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 June 30 |
2023 |
2022 |
|
|
[in thousands of Canadian dollars, except per share amounts] |
$ |
$ |
|
|
REVENUE |
|
|
|
|
Canada asset management fees |
375,835 |
404,279 |
|
|
Trailer fees and deferred sales commissions |
(114,874) |
(123,952) |
|
|
Net asset management fees |
260,961 |
280,327 |
|
|
Canada wealth management fees |
144,092 |
130,103 |
|
|
U.S. wealth management fees |
216,759 |
168,949 |
|
|
Other revenues |
31,326 |
21,210 |
|
|
Foreign exchange gains (losses) |
36,462 |
(32,864) |
|
|
Other gains (losses) |
86,483 |
(1,069) |
|
|
Total net revenues |
776,083 |
566,656 |
|
|
|
|
|
|
|
EXPENSES |
|
|
|
|
Selling, general and administrative |
345,904 |
238,039 |
|
|
Advisor and dealer fees |
108,175 |
99,711 |
|
|
Interest and lease finance |
46,137 |
36,235 |
|
|
Amortization and depreciation |
13,330 |
11,909 |
|
|
Amortization of intangible assets from acquisitions |
33,077 |
27,436 |
|
|
Transaction, integration, restructuring and legal |
55,783 |
4,587 |
|
|
Change in fair value of contingent consideration |
15,249 |
(74,977) |
|
|
Change in fair value of preferred equity |
35,000 |
— |
|
|
Other |
10,949 |
4,712 |
|
|
Total expenses |
663,604 |
347,652 |
|
|
Income before income taxes |
112,479 |
219,004 |
|
|
|
|
|
|
|
Provision for (recovery of) income taxes |
|
|
|
|
Current |
65,149 |
46,835 |
|
|
Deferred |
(4,048) |
13,901 |
|
|
|
61,101 |
60,736 |
|
|
Net income for the period |
51,378 |
158,268 |
|
|
Net income attributable to non-controlling interests |
425 |
2,057 |
|
|
Net income attributable to shareholders |
50,953 |
156,211 |
|
|
Basic earnings per share attributable to shareholders |
$0.28 |
$0.82 |
|
|
Diluted earnings per share attributable to shareholders |
$0.28 |
$0.81 |
|
|
|
|
|
|
|
Other comprehensive income (loss), net of tax |
|
|
|
|
Exchange differences on translation of foreign operations |
(23,530) |
17,662 |
|
|
Total other comprehensive income (loss), net of tax |
(23,530) |
17,662 |
|
|
Comprehensive income for the period |
27,848 |
175,930 |
|
|
Comprehensive income attributable to non-controlling interests |
58 |
2,996 |
|
|
Comprehensive income attributable to shareholders |
27,790 |
172,934 |
|
CONSOLIDATED BALANCE SHEET |
As at |
As at |
|
|
|
June 30, 2023 |
December 31, 2022 |
|
|
[in thousands of Canadian dollars] |
$ |
$ |
|
|
ASSETS |
|
|
|
|
Current |
|
|
|
|
Cash and cash equivalents |
240,496 |
153,620 |
|
|
Client and trust funds on deposit |
1,067,714 |
1,306,595 |
|
|
Investments |
37,701 |
40,448 |
|
|
Accounts receivable and prepaid expenses |
359,795 |
298,778 |
|
|
Income taxes receivable |
18,536 |
33,989 |
|
|
Total current assets |
1,724,242 |
1,833,430 |
|
|
Capital assets, net |
64,802 |
55,587 |
|
|
Right-of-use assets |
132,643 |
139,422 |
|
|
Intangibles |
7,454,253 |
7,227,700 |
|
|
Deferred income taxes |
70,382 |
54,415 |
|
|
Other assets |
309,840 |
397,804 |
|
|
Total assets |
9,756,162 |
9,708,358 |
|
|
LIABILITIES AND EQUITY |
|
|
|
|
Current |
|
|
|
|
Accounts payable and accrued liabilities |
330,027 |
293,246 |
|
|
Current portion of provisions and other financial liabilities |
633,208 |
502,746 |
|
|
Dividends payable |
60,351 |
66,426 |
|
|
Client and trust funds payable |
1,073,918 |
1,312,640 |
|
|
Income taxes payable |
16,064 |
3,044 |
|
|
CIPW unit liabilities |
940,948 |
765,959 |
|
|
Preferred equity |
1,359,750 |
— |
|
|
Current portion of long-term debt |
— |
320,000 |
|
|
Current portion of lease liabilities |
22,627 |
23,994 |
|
|
Total current liabilities |
4,436,893 |
3,288,055 |
|
|
Long-term debt |
3,131,528 |
3,896,214 |
|
|
Provisions and other financial liabilities |
161,572 |
270,567 |
|
|
Deferred income taxes |
481,669 |
480,500 |
|
|
Lease liabilities |
149,482 |
149,360 |
|
|
Total liabilities |
8,361,144 |
8,084,696 |
|
|
Equity |
|
|
|
|
Share capital |
1,551,851 |
1,706,880 |
|
|
Contributed surplus |
37,203 |
30,239 |
|
|
Deficit |
(213,059) |
(160,572) |
|
|
Accumulated other comprehensive income |
7,226 |
33,224 |
|
|
Total equity attributable to the shareholders of the Company |
1,383,221 |
1,609,771 |
|
|
Non-controlling interests |
11,797 |
13,891 |
|
|
Total equity |
1,395,018 |
1,623,662 |
|
|
Total liabilities and equity |
9,756,162 |
9,708,358 |
|
CONSOLIDATED STATEMENT OF CASH FLOWS |
|||
|
For the three-month period ended June 30 |
|||
|
|
2023 |
2022 |
|
|
[in thousands of Canadian dollars] |
$ |
$ |
|
|
OPERATING ACTIVITIES (*) |
|
|
|
|
Net income for the period |
51,378 |
158,268 |
|
|
Add (deduct) items not involving cash |
|
|
|
|
Other gains (losses) |
(86,483) |
1,069 |
|
|
Change in fair value of contingent consideration |
15,249 |
(74,977) |
|
|
Change in fair value of preferred equity |
35,000 |
— |
|
|
Contingent consideration recorded as compensation |
812 |
670 |
|
|
Amortization of loan guarantees |
(1,762) |
— |
|
|
Recognition of non-cash vesting of CIPW unit liabilities |
63,096 |
(3,420) |
|
|
Equity-based compensation |
6,889 |
6,325 |
|
|
Equity accounted income |
(996) |
— |
|
|
Amortization of equity accounted investments |
1,404 |
— |
|
|
Amortization and depreciation |
13,330 |
11,909 |
|
|
Amortization of intangible assets from acquisitions |
33,077 |
27,436 |
|
|
Deferred income taxes |
(4,048) |
13,901 |
|
|
Cash provided by operating activities before net change in operating assets and liabilities |
126,946 |
141,181 |
|
|
Net change in operating assets and liabilities |
14,979 |
22,929 |
|
|
Cash provided by operating activities |
141,925 |
164,110 |
|
INVESTING ACTIVITIES |
|
|
|
|
Cash paid to settle acquisition liabilities |
(170,508) |
(38,626) |
|
|
Acquisitions, net of cash acquired |
(41,557) |
(155,828) |
|
|
Proceeds on sale of equity-accounted investment |
130,458 |
— |
|
|
Purchase of investments |
(172) |
(78) |
|
|
Proceeds on sale of investments |
22 |
71 |
|
|
Additions to capital assets |
(6,910) |
(5,553) |
|
|
Decrease (increase) in other assets |
(14,870) |
13,287 |
|
|
Additions to intangibles |
(4,533) |
(2,713) |
|
|
Cash used in investing activities |
(108,070) |
(189,440) |
|
|
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
Repayment of long-term debt |
(298,000) |
— |
|
|
Issuance of long-term debt |
— |
85,000 |
|
|
Repurchase of long-term debt |
(694,671) |
— |
|
|
Repurchase of share capital |
(228,774) |
(59,248) |
|
|
Payment of lease liabilities |
(6,352) |
(5,110) |
|
|
Issuance of CIPW unit liabilities, net of redemptions |
(18,187) |
— |
|
|
Net distributions to non-controlling interest |
(1,750) |
(1,348) |
|
|
Dividends paid to shareholders |
(32,895) |
(34,748) |
|
|
Issuance of preferred equity |
1,350,300 |
— |
|
|
Cash provided by (used in) financing activities |
69,671 |
(15,454) |
|
|
Net increase (decrease) in cash and cash equivalents during the period |
103,526 |
(40,784) |
|
|
Cash and cash equivalents, beginning of period |
136,970 |
186,051 |
|
|
Cash and cash equivalents, end of period |
240,496 |
145,267 |
|
|
SUPPLEMENTAL CASH FLOW INFORMATION |
|
|
|
|
(*) Included in operating activities are the following: |
|
|
|
|
Interest paid |
73,899 |
55,574 |
|
|
Income taxes paid |
33,909 |
54,951 |
|
ASSETS UNDER MANAGEMENT AND NET FLOWS |
|||||||||
|
[billions of dollars] |
Quarters ended |
||||||||
|
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
|||||
|
Beginning AUM |
122.0 |
117.8 |
114.2 |
116.1 |
136.3 |
||||
|
Gross inflows |
6.1 |
6.9 |
7.3 |
4.9 |
4.8 |
||||
|
Gross outflows |
(6.2) |
(6.5) |
(6.0) |
(4.8) |
(8.7) |
||||
|
Net inflows/(outflows) |
(0.1) |
0.4 |
1.3 |
0.1 |
(3.9) |
||||
|
Acquisitions |
— |
— |
— |
— |
— |
||||
|
Market move and FX |
0.5 |
3.8 |
2.3 |
(2.0) |
(16.3) |
||||
|
Ending AUM |
122.4 |
122.0 |
117.8 |
114.2 |
116.1 |
||||
|
Proprietary AUM |
32.8 |
33.0 |
31.9 |
30.4 |
30.8 |
||||
|
Non-proprietary AUM |
89.6 |
89.0 |
85.9 |
83.7 |
85.2 |
||||
|
Average assets under management |
122.1 |
121.9 |
117.7 |
119.1 |
125.4 |
||||
|
Annualized organic growth |
(0.4) % |
1.3 % |
4.4 % |
0.4 % |
(11.4) % |
||||
|
|
|
|
|
|
|
||||
|
Gross management fee/average AUM |
1.25 % |
1.27 % |
1.29 % |
1.30 % |
1.31 % |
||||
|
Net management fee/average AUM |
0.85 % |
0.86 % |
0.87 % |
0.88 % |
0.89 % |
||||
|
|
|
|
|
|
|
||||
|
Net Inflows/(Outflows) |
|
|
|
|
|
||||
|
Retail |
— |
0.8 |
1.6 |
0.6 |
(0.4) |
||||
|
Institutional |
— |
(0.2) |
(0.2) |
— |
(3.2) |
||||
|
Closed business |
(0.2) |
(0.2) |
(0.2) |
(0.1) |
(0.2) |
||||
|
Total Canada net inflows/(outflows) |
(0.2) |
0.5 |
1.3 |
0.5 |
(3.7) |
||||
|
Australia |
0.1 |
(0.1) |
— |
(0.4) |
(0.1) |
||||
|
Total net inflows/(outflows) |
(0.1) |
0.4 |
1.3 |
0.1 |
(3.9) |
||||
|
RETAIL (ex Closed Business) |
||||||||||
|
[billions of dollars] |
Quarters ended |
|||||||||
|
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
||||||
|
Beginning AUM |
101.2 |
97.1 |
94.0 |
95.1 |
108.4 |
|||||
|
Net Flows |
0.0 |
0.8 |
1.6 |
0.6 |
(0.4) |
|||||
|
Market Move / FX |
0.5 |
3.3 |
1.5 |
(1.7) |
(12.9) |
|||||
|
Acquisitions |
___ |
___ |
___ |
___ |
___ |
|||||
|
Ending AUM |
101.7 |
101.2 |
97.1 |
94.0 |
95.1 |
|||||
|
Average AUM |
101.3 |
100.9 |
97.0 |
97.9 |
101.4 |
|||||
|
INSTITUTIONAL |
||||||||||
|
[billions of dollars] |
Quarters ended |
|||||||||
|
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
||||||
|
Beginning AUM |
8.5 |
8.3 |
8.3 |
8.4 |
12.7 |
|||||
|
Net Flows |
(0.0) |
(0.2) |
(0.2) |
0.0 |
(3.2) |
|||||
|
Market Move / FX |
0.0 |
0.4 |
0.2 |
(0.1) |
(1.1) |
|||||
|
Acquisitions |
___ |
___ |
___ |
___ |
___ |
|||||
|
Ending AUM |
8.5 |
8.5 |
8.3 |
8.3 |
8.4 |
|||||
|
Average AUM |
8.5 |
8.5 |
8.4 |
8.6 |
10.2 |
|||||
|
AUSTRALIA |
||||||||||
|
[billions of dollars] |
Quarters ended |
|||||||||
|
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
||||||
|
Beginning AUM |
4.9 |
5.0 |
4.7 |
5.1 |
6.6 |
|||||
|
Net Flows |
0.1 |
(0.1) |
0.0 |
(0.4) |
(0.1) |
|||||
|
Market Move / FX |
0.0 |
0.0 |
0.3 |
0.0 |
(1.4) |
|||||
|
Acquisitions |
___ |
___ |
___ |
___ |
___ |
|||||
|
Ending AUM |
5.0 |
4.9 |
5.0 |
4.7 |
5.1 |
|||||
|
Average AUM |
5.0 |
5.0 |
4.8 |
4.9 |
5.8 |
|||||
|
CLOSED BUSINESS |
||||||||||
|
[billions of dollars] |
Quarters ended |
|||||||||
|
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
||||||
|
Beginning AUM |
7.4 |
7.3 |
7.3 |
7.5 |
8.6 |
|||||
|
Net Flows |
(0.2) |
(0.2) |
(0.2) |
(0.1) |
(0.2) |
|||||
|
Market Move / FX |
0.0 |
0..3 |
0.2 |
(0.1) |
(0.9) |
|||||
|
Acquisitions |
___ |
___ |
___ |
___ |
___ |
|||||
|
Ending AUM |
7.2 |
7.4 |
7.3 |
7.3 |
7.5 |
|||||
|
Average AUM |
7.3 |
7.5 |
7.4 |
7.6 |
8.0 |
|||||
|
AUM BY ASSET CLASS |
||||||||||
|
[billions of dollars] |
Quarters ended |
|||||||||
|
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
||||||
|
Balanced |
49.8 |
50.8 |
50.3 |
49.8 |
50.9 |
|||||
|
Equity |
43.0 |
43.3 |
41.6 |
40.2 |
41.4 |
|||||
|
Fixed income |
11.1 |
11.3 |
11.0 |
11.2 |
11.7 |
|||||
|
Alternatives |
5.1 |
4.0 |
3.6 |
3.8 |
3.6 |
|||||
|
Cash/Other |
8.4 |
7.7 |
6.2 |
4.5 |
3.4 |
|||||
|
Total Canada asset management |
117.4 |
117.1 |
112.8 |
109.5 |
111.0 |
|||||
|
Australia |
5.0 |
4.9 |
5.0 |
4.7 |
5.1 |
|||||
|
Total asset management segment |
122.4 |
122.0 |
117.8 |
114.2 |
116.1 |
|||||
|
CANADA WEALTH MANAGEMENT CLIENT ASSETS |
||||||||||
|
[billions of dollars] |
Quarters ended |
|||||||||
|
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
||||||
|
Beginning client assets |
81.6 |
77.4 |
74.0 |
74.1 |
79.0 |
|||||
|
Acquisitions |
— |
— |
— |
— |
2.4 |
|||||
|
Net flows and market move |
1.0 |
4.2 |
3.4 |
(0.2) |
(7.2) |
|||||
|
Ending client assets |
82.6 |
81.6 |
77.4 |
74.0 |
74.1 |
|||||
|
Average client assets |
81.9 |
80.7 |
77.3 |
76.0 |
77.7 |
|||||
|
Wealth management fees/average client assets |
0.91 % |
0.93 % |
0.91 % |
0.90 % |
0.91 % |
|||||
|
U.S. WEALTH MANAGEMENT CLIENT ASSETS |
||||||||||
|
[billions of dollars] |
Quarters ended |
|||||||||
|
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
||||||
|
Beginning billable client assets |
179.9 |
174.3 |
144.9 |
138.8 |
141.2 |
|||||
|
Acquisitions/divestitures |
4.0 |
— |
24.9 |
— |
7.1 |
|||||
|
Net flows and market move |
1.1 |
5.6 |
4.4 |
6.2 |
(9.5) |
|||||
|
Ending billable client assets |
185.0 |
179.9 |
174.3 |
144.9 |
138.8 |
|||||
|
Non-billable client assets |
9.0 |
7.6 |
6.3 |
4.9 |
4.8 |
|||||
|
Total client assets |
194.0 |
187.5 |
180.6 |
149.8 |
143.5 |
|||||
|
Fees/beginning billable client assets |
0.48 % |
0.47 % |
0.52 % |
0.47 % |
0.48 % |
|||||
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 August 10, 2023 available on SEDAR at www.sedar.com or at www.cifinancial.com.
|
ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE |
||||||
|
[millions of dollars, except per share amounts] |
Quarters ended |
|||||
|
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2022 |
||||
|
Net Income |
51.4 |
30.2 |
158.3 |
|||
|
Amortization of intangible assets from acquisitions |
33.1 |
31.3 |
27.4 |
|||
|
Amortization of intangible assets for equity accounted investments |
1.4 |
2.1 |
— |
|||
|
Change in fair value of contingent consideration |
15.2 |
53.5 |
(75.0) |
|||
|
Change in fair value of preferred equity |
35.0 |
— |
— |
|||
|
Interest on redeemable shares issued in connection with acquisitions |
2.2 |
— |
— |
|||
|
Contingent consideration recorded as compensation |
0.8 |
1.7 |
0.7 |
|||
|
Non-controlling interest reclassification |
2.4 |
2.5 |
0.9 |
|||
|
CIPW adjustments |
79.6 |
43.1 |
3.1 |
|||
|
Severance |
1.4 |
5.5 |
— |
|||
|
Amortization of loan guarantees |
(1.8) |
(0.3) |
— |
|||
|
FX (gains)/losses |
(36.5) |
(1.8) |
32.9 |
|||
|
Transaction, integration, restructuring and legal |
55.8 |
14.2 |
4.6 |
|||
|
Other (gains)/losses |
(70.0) |
1.9 |
(1.2) |
|||
|
Gain on debt retirement |
(16.2) |
— |
— |
|||
|
Total adjustments |
102.5 |
153.7 |
(6.7) |
|||
|
Tax effect of adjustments |
6.3 |
(28.5) |
5.6 |
|||
|
Less: Non-controlling interest |
24.2 |
18.5 |
8.1 |
|||
|
Adjusted net income |
136.0 |
136.8 |
149.1 |
|||
|
Adjusted earnings per share |
0.76 |
0.74 |
0.78 |
|||
|
Adjusted diluted earnings per share |
0.76 |
0.74 |
0.78 |
|||
|
|
|
|
|
|||
|
Average diluted shares outstanding |
190.4 |
185.1 |
191.8 |
|||
|
Shares convertible into common in connection with an acquisition |
(10.8) |
— |
— |
|||
|
Adjusted average diluted shares outstanding |
179.6 |
185.1 |
191.8 |
|||
|
EBITDA, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN |
||||||
|
[millions of dollars, except per share amounts] |
Quarters ended |
|||||
|
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2022 |
||||
|
Pretax income |
112.5 |
54.8 |
219.0 |
|||
|
Amortization of intangible assets from acquisitions |
33.1 |
31.3 |
27.4 |
|||
|
Amortization of intangible assets for equity accounted investments |
1.4 |
2.1 |
— |
|||
|
Depreciation and other amortization |
13.3 |
12.9 |
11.9 |
|||
|
Interest and lease finance expense |
46.1 |
47.2 |
36.2 |
|||
|
EBITDA |
206.4 |
148.3 |
294.6 |
|||
|
Change in fair value of contingent consideration |
15.2 |
53.5 |
(75.0) |
|||
|
Change in fair value of preferred equity |
35.0 |
— |
— |
|||
|
Contingent consideration recorded as compensation |
0.8 |
1.7 |
0.7 |
|||
|
Non-controlling interest reclassification |
2.4 |
2.5 |
0.9 |
|||
|
CIPW adjustments |
79.6 |
43.1 |
3.1 |
|||
|
Severance |
1.4 |
5.5 |
— |
|||
|
Amortization of loan guarantees |
(1.8) |
(0.3) |
— |
|||
|
FX (gains)/losses |
(36.5) |
(1.8) |
32.9 |
|||
|
Transaction, integration, restructuring and legal |
55.8 |
14.2 |
4.6 |
|||
|
Other (gains)/losses |
(70.0) |
1.9 |
(1.2) |
|||
|
Gain on debt retirement |
(16.2) |
— |
— |
|||
|
Total adjustments |
65.9 |
120.3 |
(34.1) |
|||
|
Adjusted EBITDA |
272.3 |
268.6 |
260.5 |
|||
|
Less: Non-controlling interest |
27.0 |
18.5 |
9.5 |
|||
|
Adjusted EBITDA attributable to shareholders |
245.3 |
250.1 |
251.0 |
|||
|
|
|
|
|
|||
|
Reported net revenue |
776.1 |
637.8 |
566.7 |
|||
|
Less: FX gains/(losses) |
36.5 |
1.8 |
(32.9) |
|||
|
Less: Non-Operating Other gains/(losses) |
70.0 |
(1.9) |
1.2 |
|||
|
Less: Amortization of equity accounted investments |
(1.4) |
(2.1) |
— |
|||
|
Adjusted net revenue |
671.0 |
640.0 |
598.3 |
|||
|
Adjusted EBITDA margin |
40.6 % |
42.0 % |
43.5 % |
|||
|
FREE CASH FLOW |
||||||
|
[millions of dollars] |
Quarters ended |
|||||
|
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2022 |
||||
|
Cash provided by operating activities |
141.9 |
143.4 |
164.1 |
|||
|
Less: Net change in operating assets and liabilities |
15.0 |
(2.2) |
22.9 |
|||
|
Operating cash flow before the change in operating assets and liabilities |
126.9 |
145.6 |
141.2 |
|||
|
FX (gains)/losses |
(36.5) |
(1.8) |
32.9 |
|||
|
Transaction, integration, restructuring and legal |
55.8 |
14.2 |
4.6 |
|||
|
Total adjustments |
19.3 |
12.4 |
37.5 |
|||
|
Tax effect (recovery) of adjustments |
(1.5) |
(1.8) |
(5.7) |
|||
|
Less: Non-controlling interest |
1.4 |
1.1 |
(3.4) |
|||
|
Free cash flow |
143.3 |
155.1 |
176.4 |
|||
|
NET DEBT |
|
|
|
|
|
|||||
|
|
Quarters ended |
|||||||||
|
[millions of dollars] |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
|||||
|
Current portion of long-term debt |
— |
298.0 |
320.0 |
400.5 |
314.6 |
|||||
|
Long-term debt |
3,131.5 |
3,892.2 |
3,896.2 |
3,548.2 |
3,373.5 |
|||||
|
|
3,131.5 |
4,190.2 |
4,216.2 |
3,948.7 |
3,688.1 |
|||||
|
Less: |
|
|
|
|
|
|||||
|
Cash and short-term investments |
240.5 |
137.0 |
153.6 |
220.4 |
154.8 |
|||||
|
Marketable securities |
23.0 |
22.6 |
20.6 |
17.8 |
18.1 |
|||||
|
Add: |
|
|
|
|
|
|||||
|
Regulatory capital and non-controlling interests |
18.6 |
21.7 |
16.8 |
19.9 |
22.4 |
|||||
|
Net Debt |
2,886.6 |
4,052.2 |
4,058.8 |
3,730.3 |
3,537.5 |
|||||
|
|
|
|
|
|
|
|||||
|
Adjusted EBITDA |
245.3 |
250.1 |
242.7 |
237.5 |
251.0 |
|||||
|
Adjusted EBITDA, annualized |
983.8 |
1,014.2 |
962.8 |
942.1 |
1,006.9 |
|||||
|
Gross leverage (Gross debt/Annualized adjusted EBITDA) |
3.2 |
4.1 |
4.4 |
4.2 |
3.7 |
|||||
|
Net leverage (Net debt/Annualized adjusted EBITDA) |
2.9 |
4.0 |
4.2 |
4.0 |
3.5 |
|||||
|
SUMMARY OF QUARTERLY RESULTS |
||||||||||||||||||||||
|
[millions of dollars, except per share amounts] |
IFRS Results |
|
Adjusted Results |
|||||||||||||||||||
|
For the quarters ended |
|
For the quarters ended |
||||||||||||||||||||
|
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
|
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
||||||||||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Asset management fees |
375.8 |
377.7 |
378.2 |
386.7 |
404.3 |
|
375.8 |
377.7 |
378.2 |
386.7 |
404.3 |
|||||||||||
|
Trailer fees and deferred sales commissions |
(114.9) |
(115.9) |
(116.0) |
(119.2) |
(124.0) |
|
(114.9) |
(115.9) |
(116.0) |
(119.2) |
(124.0) |
|||||||||||
|
Net asset management fees |
261.0 |
261.8 |
262.2 |
267.5 |
280.3 |
|
261.0 |
261.8 |
262.2 |
267.5 |
280.3 |
|||||||||||
|
Canada wealth management fees |
144.1 |
141.5 |
133.1 |
129.2 |
130.1 |
|
144.1 |
141.5 |
133.1 |
129.2 |
130.1 |
|||||||||||
|
U.S. wealth management fees |
216.8 |
201.3 |
190.1 |
164.1 |
168.9 |
|
216.8 |
201.3 |
190.1 |
164.1 |
168.9 |
|||||||||||
|
Other revenues |
31.3 |
32.3 |
26.2 |
26.6 |
21.2 |
|
32.7 |
34.4 |
28.8 |
26.6 |
21.2 |
|||||||||||
|
FX gains/(losses) |
36.5 |
1.8 |
15.2 |
(73.9) |
(32.9) |
|
— |
— |
— |
— |
— |
|||||||||||
|
Other gains/(losses) |
86.5 |
(0.9) |
(6.5) |
0.1 |
(1.1) |
|
0.3 |
1.0 |
0.6 |
0.1 |
(2.3) |
|||||||||||
|
Total net revenues |
776.1 |
637.8 |
620.3 |
513.6 |
566.7 |
|
654.8 |
640.0 |
614.9 |
587.5 |
598.3 |
|||||||||||
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Selling, general & administrative |
345.9 |
304.6 |
277.2 |
245.6 |
238.0 |
|
265.9 |
254.6 |
248.0 |
230.3 |
234.2 |
|||||||||||
|
Advisor and dealer fees |
108.2 |
107.8 |
101.1 |
98.3 |
99.7 |
|
108.2 |
107.8 |
101.1 |
98.3 |
99.7 |
|||||||||||
|
Other |
10.9 |
11.5 |
9.2 |
17.1 |
4.7 |
|
8.5 |
9.0 |
8.1 |
8.1 |
3.8 |
|||||||||||
|
Interest and lease finance expense |
46.1 |
47.2 |
41.4 |
38.6 |
36.2 |
|
44.0 |
47.2 |
41.4 |
38.6 |
36.2 |
|||||||||||
|
Depreciation and other amortization |
13.3 |
12.9 |
13.1 |
13.0 |
11.9 |
|
13.3 |
12.9 |
13.1 |
13.0 |
11.9 |
|||||||||||
|
Amortization of intangible assets from acquisitions |
33.1 |
31.3 |
26.5 |
27.7 |
27.4 |
|
— |
— |
— |
— |
— |
|||||||||||
|
Transaction, integration, restructuring and legal |
55.8 |
14.2 |
41.3 |
13.1 |
4.6 |
|
— |
— |
— |
— |
— |
|||||||||||
|
Change in fair value of contingent consideration |
15.2 |
53.5 |
76.8 |
22.5 |
(75.0) |
|
— |
— |
— |
— |
— |
|||||||||||
|
Change in fair value of preferred equity |
35.0 |
— |
— |
— |
— |
|
— |
— |
— |
— |
— |
|||||||||||
|
Total expenses |
663.6 |
583.0 |
586.7 |
475.8 |
347.7 |
|
439.9 |
431.5 |
411.7 |
388.2 |
386.0 |
|||||||||||
|
Pretax income |
112.5 |
54.8 |
33.6 |
37.8 |
219.0 |
|
215.0 |
208.5 |
203.2 |
199.3 |
212.3 |
|||||||||||
|
Income tax expense |
61.1 |
24.6 |
41.9 |
23.5 |
60.7 |
|
54.8 |
53.2 |
51.8 |
51.3 |
55.1 |
|||||||||||
|
Net income |
51.4 |
30.2 |
(8.3) |
14.4 |
158.3 |
|
160.1 |
155.3 |
151.4 |
148.1 |
157.2 |
|||||||||||
|
Less: Non-controlling interest |
0.4 |
0.2 |
1.2 |
(0.5) |
2.1 |
|
24.2 |
18.5 |
15.5 |
12.1 |
8.1 |
|||||||||||
|
Net income attributable to shareholders |
51.0 |
30.0 |
(9.5) |
14.9 |
156.2 |
|
136.0 |
136.8 |
135.9 |
135.9 |
149.1 |
|||||||||||
|
Basic earnings per share |
0.28 |
0.16 |
(0.05) |
0.08 |
0.82 |
|
0.76 |
0.74 |
0.74 |
0.73 |
0.78 |
|||||||||||
|
Diluted earnings per share |
0.28 |
0.16 |
(0.05) |
0.08 |
0.81 |
|
0.76 |
0.74 |
0.74 |
0.73 |
0.78 |
|||||||||||
|
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 |
||||||||||||||||||||
|
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
|
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
||||||||||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Asset management fees |
380.2 |
382.0 |
382.3 |
390.9 |
408.9 |
|
380.2 |
382.0 |
382.3 |
390.9 |
408.9 |
|||||||||||
|
Trailer fees and deferred sales commissions |
(122.5) |
(123.4) |
(123.8) |
(126.8) |
(131.9) |
|
(122.5) |
(123.4) |
(123.8) |
(126.8) |
(131.9) |
|||||||||||
|
Net asset management fees |
257.8 |
258.6 |
258.5 |
264.1 |
277.0 |
|
257.8 |
258.6 |
258.5 |
264.1 |
277.0 |
|||||||||||
|
Other revenues |
5.1 |
4.0 |
3.6 |
6.6 |
5.6 |
|
5.1 |
4.0 |
3.6 |
6.6 |
5.6 |
|||||||||||
|
FX gains/(losses) |
37.5 |
2.0 |
15.5 |
(74.4) |
(32.8) |
|
— |
— |
— |
— |
— |
|||||||||||
|
Other gains/(losses) |
16.1 |
(0.9) |
(6.5) |
0.1 |
(1.1) |
|
0.3 |
1.0 |
0.6 |
0.1 |
(2.3) |
|||||||||||
|
Total net revenues |
316.5 |
263.6 |
271.2 |
196.4 |
248.7 |
|
263.1 |
263.5 |
262.8 |
270.7 |
280.2 |
|||||||||||
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Selling, general & administrative |
101.0 |
98.9 |
94.3 |
98.7 |
97.3 |
|
102.6 |
98.6 |
94.3 |
98.7 |
97.3 |
|||||||||||
|
Other |
— |
— |
— |
7.2 |
— |
|
— |
— |
— |
— |
— |
|||||||||||
|
Interest and lease finance expense |
(1.5) |
0.6 |
0.9 |
1.0 |
1.0 |
|
(1.5) |
0.6 |
0.9 |
1.0 |
1.0 |
|||||||||||
|
Depreciation and other amortization |
5.4 |
3.8 |
4.7 |
5.0 |
5.0 |
|
5.4 |
3.8 |
4.7 |
5.0 |
5.0 |
|||||||||||
|
Amortization of intangible assets from acquisitions |
0.6 |
0.6 |
0.6 |
0.6 |
0.6 |
|
— |
— |
— |
— |
— |
|||||||||||
|
Transaction, integration, restructuring and legal |
34.6 |
1.7 |
11.0 |
2.6 |
2.3 |
|
— |
— |
— |
— |
— |
|||||||||||
|
Change in fair value of contingent consideration |
0.7 |
(2.2) |
1.6 |
3.2 |
(3.9) |
|
— |
— |
— |
— |
— |
|||||||||||
|
Total expenses |
140.8 |
103.5 |
113.1 |
118.2 |
102.3 |
|
106.6 |
103.0 |
99.9 |
104.6 |
103.3 |
|||||||||||
|
Pretax income |
175.7 |
160.1 |
158.0 |
78.2 |
146.4 |
|
156.5 |
160.5 |
162.8 |
166.1 |
176.9 |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Non-IFRS adjustments |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Pretax income |
175.7 |
160.1 |
158.0 |
78.2 |
146.4 |
|
156.5 |
160.5 |
162.8 |
166.1 |
176.9 |
|||||||||||
|
Amortization of intangible assets from acquisitions |
0.6 |
0.6 |
0.6 |
0.6 |
0.6 |
|
— |
— |
— |
— |
— |
|||||||||||
|
Depreciation and other amortization |
5.4 |
3.8 |
4.7 |
5.0 |
5.0 |
|
5.4 |
3.8 |
4.7 |
5.0 |
5.0 |
|||||||||||
|
Interest and lease finance expense |
(1.5) |
0.6 |
0.9 |
1.0 |
1.0 |
|
(1.5) |
0.6 |
0.9 |
1.0 |
1.0 |
|||||||||||
|
EBITDA |
180.2 |
165.1 |
164.2 |
84.7 |
153.0 |
|
160.5 |
164.9 |
168.4 |
172.1 |
183.0 |
|||||||||||
|
Change in fair value of contingent consideration |
0.7 |
(2.2) |
1.6 |
3.2 |
(3.9) |
|
— |
— |
— |
— |
— |
|||||||||||
|
CIPW adjustments |
— |
— |
— |
— |
— |
|
— |
— |
— |
— |
— |
|||||||||||
|
FX (gains)/losses |
(37.5) |
(2.0) |
(15.5) |
74.4 |
32.8 |
|
— |
— |
— |
— |
— |
|||||||||||
|
Severance |
0.1 |
0.5 |
— |
— |
— |
|
— |
— |
— |
— |
— |
|||||||||||
|
Amortization of loan guarantees |
(1.8) |
(0.3) |
— |
— |
— |
|
— |
— |
— |
— |
— |
|||||||||||
|
Transaction, integration, restructuring and legal |
34.6 |
1.7 |
11.0 |
2.6 |
2.3 |
|
— |
— |
— |
— |
— |
|||||||||||
|
Other (gains)/losses |
0.3 |
1.9 |
7.1 |
— |
(1.2) |
|
— |
— |
— |
— |
— |
|||||||||||
|
Gain on debt retirement |
(16.2) |
— |
— |
— |
— |
|
— |
— |
— |
— |
— |
|||||||||||
|
Trading and bad debt |
— |
— |
— |
7.1 |
— |
|
— |
— |
— |
— |
— |
|||||||||||
|
Total adjustments |
(19.8) |
(0.2) |
4.2 |
87.3 |
30.0 |
|
— |
— |
— |
— |
— |
|||||||||||
|
Adjusted EBITDA |
160.5 |
164.9 |
168.4 |
172.1 |
183.0 |
|
160.5 |
164.9 |
168.4 |
172.1 |
183.0 |
|||||||||||
|
Less: Non-controlling interest |
0.2 |
0.2 |
0.1 |
0.1 |
0.3 |
|
0.2 |
0.2 |
0.1 |
0.1 |
0.3 |
|||||||||||
|
Adjusted EBITDA attributable to shareholders |
160.3 |
164.7 |
168.3 |
172.0 |
182.7 |
|
160.3 |
164.7 |
168.3 |
172.0 |
182.7 |
|||||||||||
|
RESULTS OF OPERATIONS - CANADA WEALTH MANAGEMENT SEGMENT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[millions of dollars, except per share amounts] |
IFRS Results |
|
Adjusted Results |
|
||||||||||||||||||||
|
For the quarters ended |
|
For the quarters ended |
|
|||||||||||||||||||||
|
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
|
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
|
|||||||||||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Canada wealth management fees |
186.8 |
184.3 |
176.8 |
171.7 |
175.6 |
|
186.8 |
184.3 |
176.8 |
171.7 |
175.6 |
|
||||||||||||
|
Other revenues |
30.5 |
31.8 |
29.1 |
25.5 |
21.3 |
|
30.6 |
31.8 |
29.2 |
25.5 |
21.3 |
|
||||||||||||
|
FX gains/(losses) |
(0.5) |
(0.2) |
(0.4) |
0.5 |
— |
|
— |
— |
— |
— |
— |
|
||||||||||||
|
Other gains/(losses) |
— |
— |
— |
— |
— |
|
— |
— |
— |
— |
— |
|
||||||||||||
|
Total net revenues |
216.8 |
215.9 |
205.5 |
197.7 |
196.9 |
|
217.4 |
216.2 |
206.0 |
197.2 |
196.9 |
|
||||||||||||
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Selling, general & administrative |
50.3 |
48.2 |
46.2 |
43.8 |
44.0 |
|
49.3 |
47.7 |
45.9 |
43.6 |
43.9 |
|
||||||||||||
|
Advisor and dealer fees |
142.5 |
141.7 |
136.2 |
132.4 |
135.9 |
|
142.5 |
141.7 |
136.2 |
132.4 |
135.9 |
|
||||||||||||
|
Other |
9.3 |
9.8 |
9.3 |
8.2 |
4.0 |
|
8.0 |
8.8 |
8.1 |
6.3 |
3.2 |
|
||||||||||||
|
Interest and lease finance expense |
— |
0.3 |
— |
— |
(0.1) |
|
— |
0.3 |
— |
— |
(0.1) |
|
||||||||||||
|
Depreciation and other amortization |
2.9 |
4.1 |
3.2 |
3.2 |
2.8 |
|
2.9 |
4.1 |
3.2 |
3.2 |
2.8 |
|
||||||||||||
|
Amortization of intangible assets from acquisitions |
2.2 |
2.1 |
2.1 |
2.1 |
2.1 |
|
— |
— |
— |
— |
— |
|
||||||||||||
|
Transaction, integration, restructuring and legal |
0.1 |
0.3 |
0.2 |
0.3 |
0.4 |
|
— |
— |
— |
— |
— |
|
||||||||||||
|
Change in fair value of contingent consideration |
1.0 |
5.3 |
1.9 |
(0.7) |
(0.6) |
|
— |
— |
— |
— |
— |
|
||||||||||||
|
Total expenses |
208.4 |
211.8 |
199.1 |
189.3 |
188.5 |
|
202.7 |
202.5 |
193.4 |
185.6 |
185.6 |
|
||||||||||||
|
Pretax income |
8.5 |
4.1 |
6.4 |
8.4 |
8.4 |
|
14.7 |
13.7 |
12.5 |
11.6 |
11.4 |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Non-IFRS adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Pretax income |
8.5 |
4.1 |
6.4 |
8.4 |
8.4 |
|
14.7 |
13.7 |
12.5 |
11.6 |
11.4 |
|
||||||||||||
|
Amortization of intangible assets from acquisitions |
2.2 |
2.1 |
2.1 |
2.1 |
2.1 |
|
— |
— |
— |
|
— |
|
||||||||||||
|
Amortization of intangible assets for equity accounted investments |
0.1 |
0.1 |
0.1 |
— |
— |
|
— |
— |
— |
— |
— |
|
||||||||||||
|
Depreciation and other amortization |
2.9 |
4.1 |
3.2 |
3.2 |
2.8 |
|
2.9 |
4.1 |
3.2 |
3.2 |
2.8 |
|
||||||||||||
|
Interest and lease finance expense |
— |
0.3 |
— |
— |
(0.1) |
|
— |
0.3 |
— |
— |
(0.1) |
|
||||||||||||
|
EBITDA |
13.6 |
10.7 |
11.8 |
13.7 |
13.1 |
|
17.6 |
18.0 |
15.8 |
14.9 |
14.0 |
|
||||||||||||
|
Change in fair value of contingent consideration |
1.0 |
5.3 |
1.9 |
(0.7) |
(0.6) |
|
— |
— |
— |
— |
— |
|
||||||||||||
|
Contingent consideration recorded as compensation |
0.2 |
0.2 |
0.2 |
0.1 |
0.1 |
|
— |
— |
— |
— |
— |
|
||||||||||||
|
CIPW adjustments (included in SG&A) |
0.2 |
0.2 |
0.1 |
0.1 |
0.1 |
|
— |
— |
— |
— |
— |
|
||||||||||||
|
FX (gains)/losses |
0.5 |
0.2 |
0.4 |
(0.5) |
— |
|
— |
— |
— |
— |
— |
|
||||||||||||
|
Severance |
0.7 |
0.1 |
— |
— |
— |
|
— |
— |
— |
— |
— |
|
||||||||||||
|
Transaction, integration, restructuring and legal |
0.2 |
0.3 |
0.2 |
0.3 |
0.4 |
|
— |
— |
— |
— |
— |
|
||||||||||||
|
Non-controlling interest reclassification (included in Other) |
1.3 |
1.1 |
1.2 |
1.0 |
0.9 |
|
— |
— |
— |
— |
— |
|
||||||||||||
|
Trading and bad debt |
— |
— |
— |
0.8 |
— |
|
— |
— |
— |
— |
— |
|
||||||||||||
|
Total adjustments |
4.0 |
7.3 |
4.0 |
1.2 |
0.8 |
|
— |
— |
— |
— |
— |
|
||||||||||||
|
Adjusted EBITDA |
17.6 |
18.0 |
15.8 |
14.9 |
14.0 |
|
17.6 |
18.0 |
15.8 |
14.9 |
14.0 |
|
||||||||||||
|
Less: Non-controlling interest |
1.4 |
1.9 |
1.3 |
1.2 |
1.0 |
|
1.4 |
1.9 |
1.3 |
1.2 |
1.0 |
|
||||||||||||
|
Adjusted EBITDA attributable to shareholders |
16.2 |
16.2 |
14.5 |
13.7 |
13.0 |
|
16.2 |
16.2 |
14.5 |
13.7 |
13.0 |
|
||||||||||||
|
RESULTS OF OPERATIONS - U.S. WEALTH MANAGEMENT SEGMENT |
||||||||||||||||||||||
|
[millions of dollars, except per share amounts] |
IFRS Results |
|
Adjusted Results |
|||||||||||||||||||
|
For the quarters ended |
|
For the quarters ended |
||||||||||||||||||||
|
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
|
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
||||||||||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
U.S. wealth management fees |
216.8 |
201.3 |
190.1 |
164.1 |
168.9 |
|
216.8 |
201.3 |
190.1 |
164.1 |
168.9 |
|||||||||||
|
Other revenues |
5.4 |
6.3 |
2.9 |
4.2 |
4.5 |
|
6.7 |
8.3 |
5.5 |
4.2 |
4.5 |
|||||||||||
|
FX gains/(losses) |
(0.6) |
— |
— |
— |
— |
|
— |
— |
— |
— |
— |
|||||||||||
|
Other gains/(losses) |
70.4 |
— |
— |
— |
— |
|
— |
— |
— |
— |
— |
|||||||||||
|
Total net revenues |
291.9 |
207.7 |
193.1 |
168.2 |
173.4 |
|
223.5 |
209.6 |
195.6 |
168.3 |
173.5 |
|||||||||||
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Selling, general & administrative |
209.5 |
173.0 |
151.1 |
117.7 |
112.8 |
|
128.8 |
123.8 |
122.2 |
102.6 |
109.2 |
|||||||||||
|
Other |
1.6 |
1.7 |
(0.1) |
1.8 |
0.7 |
|
0.5 |
0.2 |
(0.1) |
1.8 |
0.7 |
|||||||||||
|
Interest and lease finance expense |
3.2 |
0.8 |
0.8 |
0.7 |
0.6 |
|
3.2 |
0.8 |
0.8 |
0.7 |
0.6 |
|||||||||||
|
Depreciation and other amortization |
5.0 |
5.1 |
5.2 |
4.8 |
4.1 |
|
5.0 |
5.1 |
5.2 |
4.8 |
4.1 |
|||||||||||
|
Amortization of intangible assets from acquisitions |
30.3 |
28.6 |
23.8 |
25.0 |
24.7 |
|
— |
— |
— |
— |
— |
|||||||||||
|
Transaction, integration, restructuring and legal |
21.1 |
12.2 |
30.0 |
10.2 |
2.0 |
|
— |
— |
— |
— |
— |
|||||||||||
|
Change in fair value of contingent consideration |
13.5 |
50.4 |
73.3 |
20.0 |
(70.5) |
|
— |
— |
— |
— |
— |
|||||||||||
|
Change in fair value of preferred equity |
35.0 |
— |
— |
— |
— |
|
— |
— |
— |
— |
— |
|||||||||||
|
Total expenses |
319.3 |
271.7 |
284.2 |
180.1 |
74.4 |
|
137.6 |
129.9 |
128.1 |
109.8 |
114.6 |
|||||||||||
|
Pretax income |
(27.3) |
(64.0) |
(91.1) |
(11.9) |
99.0 |
|
85.9 |
79.7 |
67.4 |
58.4 |
58.9 |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Non-IFRS adjustments |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Pretax income |
(27.3) |
(64.0) |
(91.1) |
(11.9) |
99.0 |
|
85.9 |
79.7 |
67.4 |
58.4 |
58.9 |
|||||||||||
|
Amortization of intangible assets from acquisitions |
30.3 |
28.6 |
23.8 |
25.0 |
24.7 |
|
— |
— |
— |
|
|
|||||||||||
|
Amortization of intangible assets for equity accounted investments |
1.3 |
2.0 |
2.5 |
— |
— |
|
— |
— |
— |
— |
— |
|||||||||||
|
Depreciation and other amortization |
5.0 |
5.1 |
5.2 |
4.8 |
4.1 |
|
5.0 |
5.1 |
5.2 |
4.8 |
4.1 |
|||||||||||
|
Interest and lease finance expense |
3.2 |
0.8 |
0.8 |
0.7 |
0.6 |
|
3.2 |
0.8 |
0.8 |
0.7 |
0.6 |
|||||||||||
|
EBITDA |
12.5 |
(27.5) |
(58.8) |
18.6 |
128.4 |
|
94.2 |
85.6 |
73.5 |
63.9 |
63.5 |
|||||||||||
|
Change in fair value of contingent consideration |
13.5 |
50.4 |
73.3 |
20.0 |
(70.5) |
|
— |
— |
— |
— |
— |
|||||||||||
|
Change in fair value of preferred equity |
35.0 |
— |
— |
— |
— |
|
— |
— |
— |
— |
— |
|||||||||||
|
Contingent consideration recorded as compensation (included in SG&A) |
0.6 |
1.5 |
1.3 |
3.7 |
0.6 |
|
— |
— |
— |
— |
— |
|||||||||||
|
NCI reclassification (included in SG&A) |
1.2 |
1.4 |
— |
— |
— |
|
— |
— |
— |
— |
— |
|||||||||||
|
CIPW adjustments (included in SG&A) |
79.4 |
42.9 |
27.6 |
11.4 |
3.0 |
|
— |
— |
— |
— |
— |
|||||||||||
|
FX (gains)/losses |
0.6 |
— |
— |
— |
— |
|
— |
— |
— |
— |
— |
|||||||||||
|
Severance |
0.7 |
4.8 |
— |
— |
— |
|
— |
— |
— |
— |
— |
|||||||||||
|
Transaction, integration, restructuring and legal |
21.1 |
12.2 |
30.0 |
10.2 |
2.0 |
|
— |
— |
— |
— |
— |
|||||||||||
|
Other (gains)/losses |
(70.3) |
— |
— |
— |
— |
|
— |
— |
— |
— |
— |
|||||||||||
|
Total adjustments |
81.7 |
113.1 |
132.2 |
45.3 |
(64.9) |
|
— |
— |
— |
— |
— |
|||||||||||
|
Adjusted EBITDA |
94.2 |
85.6 |
73.5 |
63.9 |
63.5 |
|
94.2 |
85.6 |
73.5 |
63.9 |
63.5 |
|||||||||||
|
Less: Non-controlling interest |
25.4 |
16.5 |
13.6 |
12.1 |
8.2 |
|
25.4 |
16.5 |
13.6 |
12.1 |
8.2 |
|||||||||||
|
Adjusted EBITDA attributable to shareholders |
68.8 |
69.1 |
59.9 |
51.8 |
55.4 |
|
68.8 |
69.1 |
59.9 |
51.8 |
55.4 |
|||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20230810592619/en/