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CI Financial Reports Financial Results for the First Quarter of 2024

  • Diluted EPS of ($1.00), adjusted diluted EPS1 of $0.86, matching a record high
  • EBITDA of ($20.7) million, adjusted EBITDA attributable to shareholders1 of $246.1 million
  • EBITDA per share of ($0.13) and record adjusted EBITDA attributable to shareholders1 per share of $1.64
  • Operating cash flow of $119.7 million, free cash flow1 of $156.2 million
  • Operating cash flow per share of $0.57, free cash flow per share of $1.01
  • Record total assets of $474.2 billion, up $74.5 billion or 18.6% year over year
  • Paid $31.2 million in dividends at $0.20 per share
  • Repurchased 4.9 million shares under $85-million substantial issuer bid completed in April

All financial amounts in Canadian dollars as at March 31, 2024, unless stated otherwise.

CI Financial Corp. (“CI”) (TSX: CIX) today released financial results for the quarter ended March 31, 2024.

“CI’s first quarter was marked by robust growth, with total assets reaching a new high of $474.2 billion, a gain of $29.4 billion for the period,” said Kurt MacAlpine, CI Chief Executive Officer. “Adjusted earnings per share1 of $0.86 was up 6.2% from the previous quarter and up 16.2% from the year-ago quarter. Meanwhile, adjusted net revenues rose 4.8% and adjusted EBITDA increased 4.0% over the previous quarter.

"Corient continues to perform well, with our U.S. wealth management segment reporting a gain in adjusted EBITDA for the quarter of 7.9%. This reflects the quality of Corient and its distinct value proposition, along with steps we have taken to integrate the business and expand our offerings to clients.

“We remain committed to returning capital to shareholders through share buybacks and in early April we repurchased 4.9 million shares for $85 million through a substantial issuer bid,” Mr. MacAlpine said. “This follows an earlier successful issuer bid in December, under which we bought back more than 6.5 million shares.”

Operating and financial data highlights

[millions of dollars, except share amounts]

As of and for the quarters ended

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Jun. 30, 2023

Mar. 31, 2023

Total AUM and Client Assets:

 

 

 

 

 

Asset Management AUM (2)

130,132

 

125,004

 

119,040

 

122,377

 

121,987

 

Canada Wealth Management assets

93,726

 

87,991

 

81,503

 

82,566

 

81,592

 

Canada custody (3)

28,011

 

25,567

 

23,421

 

9,149

 

8,600

 

U.S. Wealth Management assets (4)

222,347

 

206,282

 

197,016

 

193,980

 

187,481

 

Total assets

474,216

 

444,844

 

420,980

 

408,072

 

399,659

 

 

 

 

 

 

 

Asset Management Net Inflows:

 

 

 

 

 

Retail

(1,320

)

(397

)

(110

)

7

 

841

 

Institutional

4

 

 

(79

)

(14

)

(177

)

Australia

(92

)

230

 

(105

)

55

 

(81

)

Closed Business

(212

)

(200

)

(155

)

(174

)

(195

)

Total Asset Management Segment

(1,620

)

(367

)

(449

)

(126

)

388

 

U.S. Asset Management (5)

78

 

(67

)

(16

)

(266

)

(67

)

 

 

 

 

 

 

IFRS Results

 

 

 

 

 

Net income attributable to shareholders

(154.4

)

(63.5

)

(12.4

)

51.0

 

30.0

 

Diluted earnings per share

(1.00

)

(0.40

)

(0.08

)

0.28

 

0.16

 

Pretax income

(122.6

)

(38.2

)

20.6

 

112.5

 

54.8

 

Pretax margin

(19.0

)%

(5.3

)%

3.3

%

14.5

%

8.6

%

Operating cash flow before the change in operating assets and liabilities

88.3

 

185.3

 

104.7

 

126.9

 

145.6

 

 

 

 

 

 

 

Adjusted Results

 

 

 

 

 

Adjusted net income

132.8

 

128.2

 

132.8

 

136.0

 

136.8

 

Adjusted diluted earnings per share

0.86

 

0.81

 

0.81

 

0.76

 

0.74

 

Adjusted EBITDA

289.5

 

278.3

 

276.6

 

272.3

 

268.6

 

Adjusted EBITDA margin

41.4

%

41.7

%

41.3

%

40.6

%

42.0

%

Adjusted EBITDA attributable to shareholders

246.1

 

238.7

 

237.8

 

245.3

 

250.1

 

Free cash flow

156.2

 

170.9

 

179.4

 

143.3

 

155.1

 

 

 

 

 

 

 

Average shares outstanding

153,821,117

 

158,125,830

 

161,549,038

 

178,883,346

 

184,517,832

 

Adjusted average diluted shares outstanding

155,018,911

 

158,885,217

 

163,619,462

 

179,640,506

 

185,136,641

 

Ending shares outstanding

153,821,117

 

153,821,117

 

158,867,975

 

167,640,863

 

184,517,832

 

 

 

 

 

 

 

Total debt

3,608

 

3,507

 

3,289

 

3,132

 

4,190

 

Net debt

3,480

 

3,365

 

3,113

 

2,887

 

4,052

 

Net debt to adjusted EBITDA

3.5

 

3.5

 

3.3

 

2.9

 

4.0

 

  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 $34.4 billion, $33.2 billion, $31.8 billion, $32.8 billion, and $33.0 billion of assets managed by CI and held by clients of advisors with CI Assante Wealth Management, CI Private Counsel (CIPC) and Aligned Capital Partners as at March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023, and March 31, 2023, respectively.
  3. Includes $24.5 billion, $21.5 billion, $19.7 billion, $5.4 billion, and $5.0 billion of assets advised by CI and held by clients of advisors with Assante, CIPC, CI Direct Investing and Aligned Capital as at March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023, and March 31, 2023, respectively. Prior to July 2023, custody assets were historically not included as part of reported assets for Canada wealth management or consolidated total assets.
  4. Month-end USD/CAD exchange rates of 1.3546, 1.3250, 1.3582, 1.3248, and 1.3515 for March 2024, December 2023, September 2023, June 2023, and March 2023, respectively.
  5. Includes 100% of flows from CI’s minority investments in Columbia Pacific Advisors, OCM Capital Partners, The Cabana Group and GLASfunds Holdings.

Financial highlights

First quarter net loss attributable to shareholders was $154.4 million compared to a net loss of $63.5 million in the fourth quarter of 2023. Excluding non-operating items, adjusted net income attributable to shareholders1 was $132.8 million in the first quarter, up 3.6% from the previous quarter.

First quarter total net revenues were $645.7 million, down 9.8% from $715.6 million in the fourth quarter of 2023. Excluding non-operating items, adjusted total net revenues1 were $698.6 million, up 4.8% from $666.7 million due to higher revenues from all three segments.

First quarter total expenses increased 1.9% to $768.3 million from $753.7 million in the fourth quarter of 2023. Excluding non-operating items, adjusted total expenses1 were $470.3 million, up 4.8% from $448.7 million in the previous quarter as a result of seasonally higher payroll taxes, interest expense, and higher advisor and dealer fees due to higher Canada Wealth Management revenues.

Dividends and share repurchases

CI paid $31.2 million in dividends at a rate of $0.20 per share. The annual dividend rate of $0.80 per share represented a yield of 4.8% on CI’s closing share price of $16.75 on May 9, 2024. As announced yesterday, the Board of Directors of CI declared a quarterly dividend of $0.20 per share, payable on October 15, 2024 to shareholders of record as of September 30, 2024.

In February 2024, CI commenced a substantial issuer bid, which expired on April 2, 2024. Under the offer, CI purchased for cancellation 4,857,142 common shares at a purchase price of $17.50 per share, for an aggregate price of $85 million.

First quarter business highlights

  • CI Global Asset Management (“CI GAM”) was the recipient of an industry-leading 35 FundGrade A+® Awards for 2023. These awards are presented annually by Fundata Canada Inc. to acknowledge Canadian investment funds that have demonstrated consistent, outstanding risk-adjusted performance.
  • As part of CI’s strategic priority to modernize asset management, CI GAM was active in enhancing its product lineup. New products included: two ETFs providing targeted exposure to U.S. momentum and value stocks; mutual fund versions of its popular CI WisdomTree Quality, Dividend Growth ETFs; and a commodity-focused liquid alternative fund. CI GAM also reduced the minimum initial investment on the CI Private Pools to $5,000 from $25,000, providing expanded access to these popular solutions.

Following quarter-end:

  • CI executed amendments to the trust indentures governing its 3.759% Debentures due 2025 and 3.904% Debentures due 2027 following approvals from debenture holders at meetings held April 4, 2024. The amendments remove the covenants preventing any subsidiary of CI from creating, assuming, or otherwise directly incurring certain indebtedness.
  • CI GAM launched CI Global Artificial Intelligence ETF (TSX: CIAI) to offer investors exposure to investment opportunities created by AI technologies. CI GAM also completed the mergers of 13 mutual funds and six ETFs into other funds, simplifying and streamlining the firm’s product lineup.
  • Northwood Family Office was named the winner of the 2024 Family Wealth Report Award for Best Multi-Family Office in North America (up to and including US$2.5 billion AUM/AUA).

Analysts’ conference call

CI will hold a conference call with analysts today at 9:00 a.m. EDT, led by Mr. 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: 155730):

  • 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, which operates in Australia.
  • Canadian Wealth Management, which includes the operations of CI Assante Wealth Management, Aligned Capital Partners, CI Private Wealth, Northwood Family Office, Coriel Capital, 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.

FundGrade A+® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+® calculation is supplemental to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The top 10% of funds earn an A Grade; the next 20% of funds earn a B Grade; the next 40% of funds earn a C Grade; the next 20% of funds receive a D Grade; and the lowest 10% of funds receive an E Grade. To be eligible, a fund must have received a FundGrade rating every month in the previous year. The FundGrade A+® uses a GPA-style calculation, where each monthly FundGrade from “A” to “E” receives a score from 4 to 0, respectively. A fund’s average score for the year determines its GPA. Any fund with a GPA of 3.5 or greater is awarded a FundGrade A+® Award. For more information, see www.FundGradeAwards.com. Although Fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Fundata.

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 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 March 31

2024

2023

[in thousands of Canadian dollars, except per share amounts]

$

$

REVENUE

 

 

Canada asset management fees

371,630

 

377,665

 

Trailer fees and deferred sales commissions

(113,610

)

(115,896

)

Net asset management fees

258,020

 

261,769

 

Canada wealth management fees

159,687

 

141,533

 

U.S. wealth management fees

242,083

 

201,337

 

Other revenues

35,432

 

32,320

 

Foreign exchange losses

(54,586

)

1,754

 

Other gains (losses)

5,047

 

(889

)

Total net revenues

645,683

 

637,824

 

 

 

 

EXPENSES

 

 

Selling, general and administrative

431,998

 

304,598

 

Advisor and dealer fees

120,793

 

107,822

 

Interest and lease finance

48,286

 

47,179

 

Amortization and depreciation

17,233

 

12,897

 

Amortization of intangible assets from acquisitions

35,012

 

31,345

 

Transaction, integration, restructuring and legal

23,432

 

14,175

 

Change in fair value of contingent consideration

32,132

 

53,506

 

Change in fair value of Preferred Share Liability

52,286

 

 

Other

7,120

 

11,507

 

Total expenses

768,292

 

583,029

 

Income before income taxes

(122,609

)

54,795

 

 

 

 

Provision for (recovery of) income taxes

 

 

Current

37,411

 

39,069

 

Deferred

(5,481

)

(14,427

)

 

31,930

 

24,642

 

Net income (loss) for the period

(154,539

)

30,153

 

Net income (loss) attributable to non-controlling interests

(103

)

185

 

Net income (loss) attributable to shareholders

(154,436

)

29,968

 

Basic earnings per share attributable to shareholders

-$1.00

$0.16

 

Diluted earnings per share attributable to shareholders

-$1.00

$0.16

 

 

 

 

Other comprehensive income (loss), net of tax

 

 

Exchange differences on translation of foreign operations

31,428

 

(2,868

)

Total other comprehensive income, net of tax

31,428

 

(2,868

)

Comprehensive income (loss) for the period

(123,111

)

27,285

 

Comprehensive income (loss) attributable to non-controlling interests

324

 

153

 

Comprehensive income (loss) attributable to shareholders

(123,435

)

27,132

 

 

 

As at

As at

CONSOLIDATED BALANCE SHEET

March 31, 2024

December 31, 2023

[in thousands of Canadian dollars]

$

$

ASSETS

 

 

Current

 

 

Cash and cash equivalents

126,149

 

137,029

 

Client and trust funds on deposit

1,140,862

 

1,073,378

 

Investments

41,732

 

42,781

 

Accounts receivable and prepaid expenses

428,885

 

388,029

 

Assets held for sale

 

326

 

Income taxes receivable

33,957

 

33,911

 

Total current assets

1,771,585

 

1,675,454

 

Capital assets, net

113,430

 

85,077

 

Right-of-use assets

243,254

 

229,763

 

Intangibles and goodwill

7,624,900

 

7,575,958

 

Deferred income taxes

83,907

 

78,642

 

Other assets

383,634

 

336,709

 

Total assets

10,220,710

 

9,981,603

 

LIABILITIES AND EQUITY

 

 

Current

 

 

Accounts payable and accrued liabilities

370,260

 

378,374

 

Current portion of provisions and other financial liabilities

446,940

 

444,200

 

Dividends payable

61,528

 

61,528

 

Client and trust funds payable

1,140,009

 

1,068,809

 

Income taxes payable

15,893

 

15,252

 

Redeemable unit liabilities

1,205,521

 

1,089,996

 

Preferred Share Liability

1,566,686

 

1,481,419

 

Current portion of long-term debt

482,356

 

437,255

 

Current portion of lease liabilities

29,682

 

17,575

 

Total current liabilities

5,318,875

 

4,994,408

 

Long-term debt

3,125,235

 

3,070,149

 

Provisions and other financial liabilities

85,202

 

96,952

 

Other long-term payable

21,082

 

15,853

 

Deferred income taxes

478,363

 

479,150

 

Lease liabilities

303,967

 

285,053

 

Total liabilities

9,332,724

 

8,941,565

 

Equity

 

 

Share capital

1,436,686

 

1,436,686

 

Contributed surplus

37,940

 

34,828

 

Deficit

(640,233

)

(454,435

)

Accumulated other comprehensive income

41,684

 

10,683

 

Total equity attributable to the shareholders of the Company

876,077

 

1,027,762

 

Non-controlling interests

11,909

 

12,276

 

Total equity

887,986

 

1,040,038

 

Total liabilities and equity

10,220,710

 

9,981,603

 

 

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

 

 

For the three-month period ended March 31

2024

2023

[in thousands of Canadian dollars]

$

$

OPERATING ACTIVITIES (*)

 

 

Net income for the period

(154,539

)

30,153

 

Add (deduct) items not involving cash

 

 

Other (gains) losses

(5,047

)

889

 

Change in fair value of contingent consideration

32,132

 

53,506

 

Change in fair value of Preferred Share Liability

52,286

 

 

Contingent and deferred consideration recorded as compensation

763

 

1,703

 

Amortization of loan guarantees

(574

)

(255

)

Recognition of non-cash vesting of redeemable unit liabilities

109,860

 

28,968

 

Equity-based compensation

5,072

 

3,554

 

Equity accounted income

188

 

(4,786

)

Amortization of equity accounted investments

1,410

 

2,056

 

Amortization and depreciation

17,233

 

12,897

 

Amortization of intangible assets from acquisitions

35,012

 

31,345

 

Deferred income taxes

(5,481

)

(14,427

)

Cash provided by operating activities before net change in operating assets and liabilities

88,315

 

145,603

 

Net change in operating assets and liabilities

31,393

 

(2,214

)

Cash provided by operating activities

119,708

 

143,389

 

 

 

 

INVESTING ACTIVITIES

 

 

Cash paid to settle acquisition liabilities

(51,195

)

(74,976

)

Acquisitions, net of cash acquired

(691

)

(7,108

)

Purchase of investments

(630

)

(642

)

Proceeds on sale of investments

2,711

 

4

 

Additions to capital assets

(31,926

)

(9,121

)

Decrease in other assets

(39,364

)

(3,211

)

Additions to intangibles

(711

)

(3,104

)

Cash used in investing activities

(121,806

)

(98,158

)

 

 

 

FINANCING ACTIVITIES

 

 

Repayment of long-term debt

(375,000

)

(320,000

)

Issuance of long-term debt

420,000

 

298,000

 

Transaction costs - repurchase of share capital

(115

)

 

Payment of lease liabilities

(3,349

)

(6,350

)

Dividends paid to shareholders

(19,071

)

523

 

Net distributions to non-controlling interest

 

(523

)

Dividends paid to shareholders

(31,248

)

(33,531

)

Cash used in financing activities

(8,783

)

(61,881

)

Net decrease in cash and cash equivalents during the period

(10,881

)

(16,650

)

Cash and cash equivalents, beginning of period

137,030

 

153,619

 

Cash and cash equivalents, end of period

126,149

 

136,969

 

SUPPLEMENTAL CASH FLOW INFORMATION

 

 

(*) Included in operating activities are the following:

 

 

Interest paid

17,151

 

20,285

 

Income taxes paid

36,378

 

40,126

 

 

ASSETS UNDER MANAGEMENT AND NET FLOWS

Quarters ended

[billions of dollars]

 

Mar. 31, 2024

 

Dec. 31, 2023

 

Sep. 30, 2023

 

Jun. 30, 2023

 

Mar. 31, 2023

Beginning AUM

125.0

 

119.0

 

122.4

 

122.0

 

117.8

 

Gross inflows

6.7

 

7.3

 

5.7

 

6.1

 

6.9

 

Gross outflows

(8.3

)

(7.7

)

(6.2

)

(6.2

)

(6.5

)

Net inflows/(outflows)

(1.6

)

(0.4

)

(0.4

)

(0.1

)

0.4

 

Acquisitions

 

 

 

 

 

Market move and FX

6.7

 

6.3

 

(2.9

)

0.5

 

3.8

 

Ending AUM

130.1

 

125.0

 

119.0

 

122.4

 

122.0

 

Proprietary AUM

34.4

 

33.2

 

31.8

 

32.8

 

33.0

 

Non-proprietary AUM

95.7

 

91.8

 

87.2

 

89.6

 

89.0

 

Average assets under management

126.8

 

121.1

 

122.1

 

122.1

 

121.9

 

Annualized organic growth

(5.2

)%

(1.2

)%

(1.5

)%

(0.4

)%

1.3

%

 

 

 

 

 

 

 

 

 

 

 

Gross management fee/average AUM

1.19

%

1.20

%

1.24

%

1.25

%

1.27

%

Net management fee/average AUM

0.81

%

0.81

%

0.84

%

0.85

%

0.86

%

 

 

 

 

 

 

 

 

 

 

 

Net Inflows/(Outflows)

 

 

 

 

 

 

 

 

 

 

Retail

(1.3

)

(0.4

)

(0.1

)

 

0.8

 

Institutional

 

 

(0.1

)

 

(0.2

)

Closed business

(0.2

)

(0.2

)

(0.2

)

(0.2

)

(0.2

)

Total Canada net inflows/(outflows)

(1.5

)

(0.6

)

(0.3

)

(0.2

)

0.5

 

Australia

(0.1

)

0.2

 

(0.1

)

0.1

 

(0.1

)

Total net inflows/(outflows)

(1.6

)

(0.4

)

(0.4

)

(0.1

)

0.4

 

 

Retail

[billions of dollars]

Quarters ended

 

Mar. 31, 2024

 

Dec. 31, 2023

 

Sep. 30, 2023

 

Jun. 30. 2023

 

Mar. 31, 2023

Beginning AUM

103.7

 

99.1

101.7

101.2

97.1

Net Flows

(1.3

)

-0.4

-0.1

0.0

0.8

Market Move / FX

12.7

 

5.0

-2.5

0.5

3.3

Acquisitions

 

Ending AUM

115.1

 

103.7

99.1

101.7

101.2

Average AUM

105.3

 

100.7

101.5

101.3

100.9

 

Institutional

[billions of dollars]

Quarters ended

 

Mar. 31, 2024

 

Dec. 31, 2023

 

Sep. 30, 2023

 

Jun. 30. 2023

 

Mar. 31, 2023

Beginning AUM

8.8

8.3

8.5

 

8.5

8.3

 

Net Flows

0.0

0.0

(0.1

)

0.0

(0.2

)

Market Move / FX

0.3

0.5

(0.1

)

0.0

0.4

 

Acquisitions

 

 

Ending AUM

9.1

8.8

8.3

 

8.5

8.5

 

Average AUM

8.9

8.5

8.5

 

8.5

8.5

 

 

AUSTRALIA

[billions of dollars]

Quarters ended

 

Mar. 31, 2024

 

Dec. 31, 2023

 

Sep. 30, 2023

 

Jun. 30. 2023

 

Mar. 31, 2023

Beginning AUM

5.4

 

4.8

5.0

 

4.9

5.0

 

Net Flows

(0.1

)

0.2

(0.1

)

0.1

(0.1

)

Market Move / FX

0.4

 

0.4

(0.1

)

0.0

0.0

 

Acquisitions

 

 

 

Ending AUM

5.7

 

5.4

4.8

 

5.0

4.9

 

Average AUM

5.4

 

5.0

4.9

 

5.0

5.0

 

 

CLOSED BUSINESS

[billions of dollars]

Quarters ended

 

Mar. 31, 2024

 

Dec. 31, 2023

 

Sep. 30, 2023

 

Jun. 30. 2023

 

Mar. 31, 2023

Beginning AUM

7.1

 

6.9

 

7.2

 

7.4

 

7.3

 

Net Flows

(0.2

)

(0.2

)

(0.2

)

(0.2

)

(0.2

)

Market Move / FX

(6.6

)

0.4

 

(0.1

)

 

0.3

 

Acquisitions

 

 

 

 

 

Ending AUM

0.3

 

7.1

 

6.9

 

7.2

 

7.4

 

Average AUM

7.2

 

7.0

 

7.2

 

7.3

 

7.5

 

 

AUM BY ASSET CLASS

[billions of dollars]

Quarters ended

 

Mar. 31, 2024

 

Dec. 31, 2023

 

Sep. 30, 2023

 

Jun. 30, 2023

 

Mar. 31, 2023

Balanced

52.5

51.4

47.7

49.8

50.8

Equity

42.7

40.1

41.1

43.0

43.3

Fixed income

11.7

11.6

10.5

11.1

11.3

Alternatives

7.7

6.4

5.5

5.1

4.0

Cash/Other

9.8

10.2

9.5

8.4

7.7

Total Canada asset management

124.5

119.6

114.3

117.4

117.1

Australia

5.7

5.4

4.8

5.0

4.9

Total asset management segment

130.1

125.0

119.0

122.4

122.0

 

CANADA WEALTH MANAGEMENT CLIENT ASSETS

[billions of dollars]

Quarters ended

 

Mar. 31, 2024

 

Dec. 31, 2023

 

Sep. 30, 2023

 

Jun. 30, 2023

 

Mar. 31, 2023

Beginning client assets

88.0

 

81.5

 

82.6

 

81.6

 

77.4

 

Acquisitions

 

1.3

 

 

 

 

Net flows and market move

5.7

 

5.2

 

(1.1

)

1.0

 

4.2

 

Ending client assets

93.7

 

88.0

 

81.5

 

82.6

 

81.6

 

Average client assets

90.9

 

83.8

 

83.2

 

81.9

 

80.7

 

Wealth management fees/average client assets

0.89

%

0.91

%

0.90

%

0.91

%

0.93

%

 

 

 

 

 

 

Canada custody

28.0

 

25.6

 

23.4

 

9.1

 

8.6

 

Proprietary custody

24.5

 

21.5

 

19.7

 

5.4

 

5.0

 

Non-proprietary custody

3.5

 

4.1

 

3.8

 

3.7

 

3.6

 

 

U.S. WEALTH MANAGEMENT CLIENT ASSETS

[billions of dollars]

Quarters ended

 

Mar. 31, 2024

 

Dec. 31, 2023

 

Sep. 30, 2023

 

Jun. 30, 2023

 

Mar. 31, 2023

Beginning billable client assets

196.8

 

188.2

 

185.0

 

179.9

 

174.3

 

Acquisitions/divestitures

 

2.2

 

2.1

 

4.0

 

 

Net flows and market move

15.5

 

6.4

 

1.1

 

1.1

 

5.6

 

Ending billable client assets

212.4

 

196.8

 

188.2

 

185.0

 

179.9

 

Non-billable client assets

10.0

 

9.4

 

8.8

 

9.0

 

7.6

 

Total client assets

222.3

 

206.3

 

197.0

 

194.0

 

187.5

 

Fees/beginning billable client assets

0.49

%

0.48

%

0.49

%

0.48

%

0.47

%

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 and consideration for strategic recruitment classified as compensation per IFRS
  • restructuring charges including organizational expenses for the establishment of Corient and 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 Corient and 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 May 10, 2024 available on SEDAR at www.sedar.com or at www.cifinancial.com.

ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE

(unaudited except for Dec. 31, 2023 amounts)

[millions of dollars, except per share amounts]

Quarters ended

 

Mar. 31, 2024

 

Dec. 31, 2023

 

Mar. 31, 2023

Net Income

(154.5

)

(63.2

)

30.2

 

Amortization of intangible assets from acquisitions

35.0

 

36.1

 

31.3

 

Amortization of intangible assets for equity accounted investments

1.4

 

1.4

 

2.1

 

Change in fair value of contingent consideration

32.1

 

26.8

 

53.5

 

Change in fair value of preferred equity

52.3

 

100.5

 

 

Interest expense on redeemable shares issued in connection with acquisitions

1.5

 

0.9

 

 

Contingent consideration recorded as compensation

13.8

 

2.0

 

1.7

 

Non-controlling interest reclassification

1.0

 

(1.4

)

2.5

 

Accounting for Corient and CIPW Canada redeemable units

126.7

 

93.8

 

43.1

 

Severance

9.8

 

9.1

 

5.5

 

Amortization of loan guarantees

(0.6

)

(1.3

)

(0.3

)

FX (gains)/losses

54.6

 

(52.2

)

(1.8

)

Transaction, integration, restructuring and legal

26.4

 

43.5

 

14.2

 

Pass through carried interest revenue

 

4.8

 

 

Pass through carried interest expense

 

(4.8

)

 

Other (gains)/losses

(3.1

)

(2.9

)

1.9

 

Total adjustments

350.9

 

256.2

 

153.7

 

Tax effect of adjustments

(26.3

)

(30.5

)

(28.5

)

Less: Non-controlling interest

37.4

 

34.2

 

18.5

 

Adjusted net income

132.8

 

128.2

 

136.8

 

Adjusted earnings per share

0.86

 

0.81

 

0.74

 

Adjusted diluted earnings per share

0.86

 

0.81

 

0.74

 

 

 

 

 

Average diluted shares outstanding under IFRS

153.8

 

168.3

 

185.1

 

Weighted average impact of RSU awards

1.2

 

 

 

Shares convertible into common in connection with an acquisition

 

(9.4

)

 

Adjusted average diluted shares outstanding

155.0

 

158.9

 

185.1

 

 

 

 

 

EBITDA, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN

(unaudited except for Dec. 31, 2023 amounts)

[millions of dollars, except per share amounts]

Quarters ended

 

Mar. 31, 2024

 

Dec. 31, 2023

 

Mar. 31, 2023

Pretax income

(122.6

)

(38.2

)

54.8

 

Amortization of intangible assets from acquisitions

35.0

 

36.1

 

31.3

 

Amortization of intangible assets for equity accounted investments

1.4

 

1.4

 

2.1

 

Depreciation and other amortization

17.2

 

17.3

 

12.9

 

Interest and lease finance expense

48.3

 

43.9

 

47.2

 

EBITDA

(20.7

)

60.5

 

148.3

 

Change in fair value of contingent consideration

32.1

 

26.8

 

53.5

 

Change in fair value of preferred equity

52.3

 

100.5

 

 

Contingent consideration recorded as compensation

13.8

 

2.0

 

1.7

 

Non-controlling interest reclassification

1.0

 

(1.4

)

2.5

 

Accounting for Corient and CIPW Canada redeemable units

126.7

 

93.8

 

43.1

 

Severance

9.8

 

9.1

 

5.5

 

Amortization of loan guarantees

(0.6

)

(1.3

)

(0.3

)

FX (gains)/losses

54.6

 

(52.2

)

(1.8

)

Transaction, integration, restructuring and legal

23.4

 

43.5

 

14.2

 

Pass through carried interest revenue

 

4.8

 

 

Pass through carried interest expense

 

(4.8

)

 

Other (gains)/losses

(3.1

)

(2.9

)

1.9

 

Total adjustments

310.0

 

217.8

 

120.3

 

Adjusted EBITDA

289.3

 

278.3

 

268.6

 

Less: Non-controlling interest

43.4

 

39.6

 

18.5

 

Adjusted EBITDA attributable to shareholders

246.1

 

238.7

 

250.1

 

 

 

 

 

Reported net revenue

645.7

 

715.6

 

637.8

 

Less: FX gains/(losses)

(54.6

)

52.2

 

1.8

 

Less: Pass through carried interest revenue

 

(4.8

)

 

Less: Non-Operating Other gains/(losses)

3.1

 

2.9

 

(1.9

)

Less: Amortization of equity accounted investments

(1.4

)

(1.4

)

(2.1

)

Adjusted net revenue

698.6

 

666.7

 

640.0

 

Adjusted EBITDA margin

41.4

%

41.7

%

42.0

%

 

FREE CASH FLOW (unaudited except for Dec. 31, 2023 amounts)

[millions of dollars]

Quarters ended

 

Mar. 31, 2024

 

Dec. 31, 2023

 

Mar. 31, 2023

Cash provided by operating activities

119.7

 

69.5

 

143.4

 

Less: Net change in operating assets and liabilities

31.4

 

(115.8

)

(2.2

)

Operating cash flow before the change in operating assets and liabilities

88.3

 

185.3

 

145.6

 

FX (gains)/losses

54.6

 

(52.2

)

(1.8

)

Transaction, integration, restructuring and legal

26.4

 

43.5

 

14.2

 

Total adjustments

80.9

 

(8.7

)

12.4

 

Tax effect (recovery) of adjustments

(12.8

)

(4.9

)

(1.8

)

Less: Non-controlling interest

0.3

 

0.8

 

1.1

 

Free cash flow

156.2

 

170.9

 

155.1

 

 

NET DEBT (unaudited except for Dec. 31, 2023 amounts)

 

Quarters ended

[millions of dollars]

 

Mar. 31, 2024

 

Dec. 31, 2023

 

Sep. 30, 2023

 

Jun. 30, 2023

 

Mar. 31, 2023

Current portion of long-term debt

482.4

437.3

157.2

298.0

Long-term debt

3,125.2

3,070.1

3,131.9

3,131.5

3,892.2

 

3,607.6

3,507.4

3,289.1

3,131.5

4,190.2

Less:

 

 

 

 

 

Cash and short-term investments

126.1

137.0

175.7

240.5

137.0

Marketable securities

27.0

28.2

22.4

23.0

22.6

Add:

 

 

 

 

 

Regulatory capital and non-controlling interests

25.4

22.4

22.3

18.6

21.7

Net Debt

3,479.9

3,364.6

3,113.3

2,886.6

4,052.2

 

 

 

 

 

 

Adjusted EBITDA

246.1

238.7

237.8

245.3

250.1

Adjusted EBITDA, annualized

984.4

954.9

943.3

983.8

1,014.2

Gross leverage (Gross debt/Annualized adjusted EBITDA)

3.7

3.7

3.5

3.2

4.1

Net leverage (Net debt/Annualized adjusted EBITDA)

3.5

3.5

3.3

2.9

4.0

 

SUMMARY OF QUARTERLY RESULTS

(unaudited except for Dec. 31, 2023 amounts)

 

 

 

[millions of dollars, except per share amounts]

IFRS Results

 

Adjusted Results

For the quarters ended

 

For the quarters ended

 

Mar. 31, 2024

 

Dec. 31, 2023

 

Sep. 30, 2023

 

Jun. 30, 2023

 

Mar. 31, 2023

 

Mar. 31, 2024

 

Dec. 31, 2023

 

Sep. 30, 2023

 

Jun. 30, 2023

 

Mar. 31, 2023

Revenues

 

 

 

 

 

 

 

 

 

 

 

Asset management fees

371.6

 

361.9

 

375.6

 

375.8

 

377.7

 

 

371.6

 

361.9

 

375.6

 

375.8

 

377.7

 

Trailer fees and deferred sales commissions

(113.6

)

(111.3

)

(114.7

)

(114.9

)

(115.9

)

 

(113.6

)

(111.3

)

(114.7

)

(114.9

)

(115.9

)

Net asset management fees

258.0

 

250.6

 

260.8

 

261.0

 

261.8

 

 

258.0

 

250.6

 

260.8

 

261.0

 

261.8

 

Canada wealth management fees

159.7

 

150.5

 

146.7

 

144.1

 

141.5

 

 

159.7

 

150.5

 

146.7

 

144.1

 

141.5

 

U.S. wealth management fees

242.1

 

226.8

 

229.0

 

216.8

 

201.3

 

 

242.1

 

226.8

 

229.0

 

216.8

 

201.3

 

Other revenues

35.4

 

31.6

 

40.9

 

31.3

 

32.3

 

 

36.8

 

37.8

 

33.6

 

32.7

 

34.4

 

FX gains/(losses)

(54.6

)

52.2

 

(60.4

)

36.5

 

1.8

 

 

 

 

 

 

 

Other gains/(losses)

5.0

 

3.8

 

(0.4

)

86.5

 

(0.9

)

 

2.0

 

0.9

 

(0.5

)

0.3

 

1.0

 

Total net revenues

645.7

 

715.6

 

616.5

 

776.1

 

637.8

 

 

698.6

 

666.7

 

669.6

 

654.8

 

640.0

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

432.0

 

375.9

 

343.5

 

345.9

 

304.6

 

 

282.3

 

272.4

 

275.8

 

265.9

 

254.6

 

Advisor and dealer fees

120.8

 

113.8

 

110.3

 

108.2

 

107.8

 

 

120.8

 

113.8

 

110.3

 

108.2

 

107.8

 

Other

7.1

 

(0.4

)

16.7

 

10.9

 

11.5

 

 

6.1

 

5.8

 

6.9

 

8.5

 

9.0

 

Interest and lease finance expense

48.3

 

43.9

 

39.8

 

46.1

 

47.2

 

 

45.1

 

41.2

 

39.9

 

44.0

 

47.2

 

Depreciation and other amortization

17.2

 

17.3

 

12.9

 

13.3

 

12.9

 

 

16.0

 

15.5

 

12.9

 

13.3

 

12.9

 

Amortization of intangible assets from acquisitions

35.0

 

36.1

 

34.8

 

33.1

 

31.3

 

 

 

 

 

 

 

Transaction, integration, restructuring and legal

23.4

 

39.9

 

23.7

 

55.8

 

14.2

 

 

 

 

 

 

 

Change in fair value of contingent consideration

32.1

 

26.8

 

(7.2

)

15.2

 

53.5

 

 

 

 

 

 

 

Change in fair value of Preferred Share Liability

52.3

 

100.5

 

21.4

 

35.0

 

 

 

 

 

 

 

 

Total expenses

768.3

 

753.7

 

595.9

 

663.6

 

583.0

 

 

470.3

 

448.7

 

445.8

 

439.9

 

431.5

 

Pretax income

(122.6

)

(38.2

)

20.6

 

112.5

 

54.8

 

 

228.4

 

218.0

 

223.9

 

215.0

 

208.5

 

Income tax expense

31.9

 

25.1

 

32.8

 

61.1

 

24.6

 

 

58.2

 

55.6

 

57.1

 

54.8

 

53.2

 

Net income

(154.5

)

(63.2

)

(12.2

)

51.4

 

30.2

 

 

170.1

 

162.4

 

166.8

 

160.1

 

155.3

 

Less: Non-controlling interest

(0.1

)

0.3

 

0.2

 

0.4

 

0.2

 

 

37.4

 

34.2

 

34.0

 

24.2

 

18.5

 

Net income attributable to shareholders

(154.4

)

(63.5

)

(12.4

)

51.0

 

30.0

 

 

132.8

 

128.2

 

132.8

 

136.0

 

136.8

 

Basic earnings per share

(1.00

)

(0.40

)

(0.08

)

0.28

 

0.16

 

 

0.86

 

0.81

 

0.82

 

0.76

 

0.74

 

Diluted earnings per share

(1.00

)

(0.40

)

(0.08

)

0.28

 

0.16

 

 

0.86

 

0.81

 

0.81

 

0.76

 

0.74

 

 

RESULTS OF OPERATIONS - ASSET MANAGEMENT SEGMENT

(unaudited except for Dec. 31, 2023 amounts)

 

 

 

 

 

 

 

 

 

 

 

[millions of dollars, except per share amounts]

IFRS Results

 

Adjusted Results

For the quarters ended

 

For the quarters ended

 

Mar. 31, 2024

 

Dec. 31, 2023

 

Sep. 30, 2023

 

Jun. 30, 2023

 

Mar. 31, 2023

 

Mar. 31, 2024

 

Dec. 31, 2023

 

Sep. 30, 2023

 

Jun. 30, 2023

 

Mar. 31, 2023

Revenues

 

 

 

 

 

 

 

 

 

 

 

Asset management fees

376.3

 

366.4

 

380.1

 

380.2

 

382.0

 

 

376.3

 

366.4

 

380.1

 

380.2

 

382.0

 

Trailer fees and deferred sales commissions

(121.0

)

(118.7

)

(122.2

)

(122.5

)

(123.4

)

 

(121.0

)

(118.7

)

(122.2

)

(122.5

)

(123.4

)

Net asset management fees

255.4

 

247.7

 

257.9

 

257.8

 

258.6

 

 

255.4

 

247.7

 

257.9

 

257.8

 

258.6

 

Other revenues

4.4

 

4.7

 

4.8

 

5.1

 

4.0

 

 

4.4

 

4.7

 

4.8

 

5.1

 

4.0

 

FX gains/(losses)

(58.7

)

56.1

 

(61.9

)

37.5

 

2.0

 

 

 

 

 

 

 

Other gains/(losses)

4.4

 

1.9

 

(0.4

)

16.1

 

(0.9

)

 

1.7

 

1.9

 

(0.5

)

0.3

 

1.0

 

Total net revenues

205.5

 

310.4

 

200.3

 

316.5

 

263.6

 

 

261.5

 

254.3

 

262.2

 

263.1

 

263.5

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

108.0

 

108.7

 

110.9

 

101.0

 

98.9

 

 

101.2

 

97.4

 

105.2

 

102.6

 

98.6

 

Other

0.1

 

0.3

 

0.7

 

 

 

 

0.1

 

0.3

 

0.7

 

 

 

Interest and lease finance expense

0.5

 

0.5

 

2.5

 

(1.5

)

0.6

 

 

0.5

 

0.5

 

2.5

 

(1.5

)

0.6

 

Depreciation and other amortization

4.0

 

3.9

 

2.5

 

5.4

 

3.8

 

 

4.0

 

3.9

 

2.5

 

5.4

 

3.8

 

Amortization of intangible assets from acquisitions

0.6

 

0.6

 

0.6

 

0.6

 

0.6

 

 

 

 

 

 

 

Transaction, integration, restructuring and legal

1.3

 

2.0

 

0.6

 

34.6

 

1.7

 

 

 

 

 

 

 

Change in fair value of contingent consideration

3.5

 

8.8

 

(0.6

)

0.7

 

(2.2

)

 

 

 

 

 

 

Total expenses

118.0

 

124.7

 

117.2

 

140.8

 

103.5

 

 

105.7

 

102.0

 

111.0

 

106.6

 

103.0

 

Pretax income

87.5

 

185.7

 

83.1

 

175.7

 

160.1

 

 

155.7

 

152.3

 

151.2

 

156.5

 

160.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-IFRS adjustments

 

 

 

 

 

 

 

 

 

 

 

Pretax income

87.5

 

185.7

 

83.1

 

175.7

 

160.1

 

 

155.7

 

152.3

 

151.2

 

156.5

 

160.5

 

Amortization of intangible assets from acquisitions

0.6

 

0.6

 

0.6

 

0.6

 

0.6

 

 

 

 

 

 

 

Depreciation and other amortization

4.0

 

3.9

 

2.5

 

5.4

 

3.8

 

 

4.0

 

3.9

 

2.5

 

5.4

 

3.8

 

Interest and lease finance expense

0.5

 

0.5

 

2.5

 

(1.5

)

0.6

 

 

0.5

 

0.5

 

2.5

 

(1.5

)

0.6

 

EBITDA

92.6

 

190.7

 

88.7

 

180.2

 

165.1

 

 

160.2

 

156.6

 

156.2

 

160.5

 

164.9

 

Change in fair value of contingent consideration

3.5

 

8.8

 

(0.6

)

0.7

 

(2.2

)

 

 

 

 

 

 

FX (gains)/losses

58.7

 

(56.1

)

61.9

 

(37.5

)

(2.0

)

 

 

 

 

 

 

Severance

6.9

 

8.8

 

6.1

 

0.1

 

0.5

 

 

 

 

 

 

 

Amortization of loan guarantees

 

2.5

 

(0.5

)

(1.8

)

(0.3

)

 

 

 

 

 

 

Transaction, integration, restructuring and legal

1.3

 

2.0

 

0.6

 

34.6

 

1.7

 

 

 

 

 

 

 

Other (gains)/losses

(2.7

)

 

 

0.3

 

1.9

 

 

 

 

 

 

 

Gain on debt retirement

 

 

 

(16.2

)

 

 

 

 

 

 

 

Total adjustments

67.7

 

(34.0

)

67.5

 

(19.8

)

(0.2

)

 

 

 

 

 

 

Adjusted EBITDA

160.2

 

156.6

 

156.2

 

160.5

 

164.9

 

 

160.2

 

156.6

 

156.2

 

160.5

 

164.9

 

Less: Non-controlling interest

(0.4

)

0.1

 

0.2

 

0.2

 

0.2

 

 

(0.4

)

0.1

 

0.2

 

0.2

 

0.2

 

Adjusted EBITDA attributable to shareholders

160.6

 

156.5

 

156.0

 

160.3

 

164.7

 

 

160.6

 

156.5

 

156.0

 

160.3

 

164.7

 

 

RESULTS OF OPERATIONS - CANADA WEALTH MANAGEMENT SEGMENT

(unaudited except for Dec. 31, 2023 amounts)

 

 

 

[millions of dollars, except per share amounts]

IFRS Results

 

Adjusted Results

For the quarters ended

 

For the quarters ended

 

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Jun. 30, 2023

Mar. 31, 2023

 

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Jun. 30, 2023

Mar. 31, 2023

Revenues

 

 

 

 

 

 

 

 

 

 

 

Canada wealth management fees

201.0

 

192.8

 

189.1

 

186.8

 

184.3

 

 

201.0

192.8

189.1

186.8

184.3

Other revenues

33.4

 

31.7

 

30.7

 

30.5

 

31.8

 

 

33.4

31.7

30.7

30.6

31.8

FX gains/(losses)

1.0

 

(1.8

)

1.4

 

(0.5

)

(0.2

)

 

Other gains/(losses)

 

 

 

 

 

 

Total net revenues

235.4

 

222.7

 

221.1

 

216.8

 

215.9

 

 

234.4

224.6

219.8

217.4

216.2

Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

55.4

 

50.6

 

52.2

 

50.3

 

48.2

 

 

53.9

49.8

49.2

49.3

47.7

Advisor and dealer fees

153.9

 

147.9

 

144.4

 

142.5

 

141.7

 

 

153.9

147.9

144.4

142.5

141.7

Other

6.3

 

6.2

 

5.9

 

9.3

 

9.8

 

 

5.3

5.1

4.8

8.0

8.8

Interest and lease finance expense

0.4

 

0.3

 

0.6

 

 

0.3

 

 

0.4

0.3

0.6

0.3

Depreciation and other amortization

4.9

 

5.1

 

5.2

 

2.9

 

4.1

 

 

4.9

5.1

5.2

2.9

4.1

Amortization of intangible assets from acquisitions

2.3

 

2.3

 

2.2

 

2.2

 

2.1

 

 

Transaction, integration, restructuring and legal

 

5.4

 

0.4

 

0.1

 

0.3

 

 

Change in fair value of contingent consideration

1.6

 

3.5

 

(0.4

)

1.0

 

5.3

 

 

Total expenses

224.8

 

221.3

 

210.5

 

208.4

 

211.8

 

 

218.4

208.3

204.2

202.7

202.5

Pretax income

10.6

 

1.4

 

10.7

 

8.5

 

4.1

 

 

16.0

16.3

15.6

14.7

13.7

 

 

 

 

 

 

 

 

 

 

 

 

Non-IFRS adjustments

 

 

 

 

 

 

 

 

 

 

 

Pretax income

10.6

 

1.4

 

10.7

 

8.5

 

4.1

 

 

16.0

16.3

15.6

14.7

13.7

Amortization of intangible assets from acquisitions

2.3

 

2.3

 

2.2

 

2.2

 

2.1

 

 

Amortization of intangible assets for equity accounted investments

0.1

 

0.1

 

0.1

 

0.1

 

0.1

 

 

Depreciation and other amortization

4.9

 

5.1

 

5.2

 

2.9

 

4.1

 

 

4.9

5.1

5.2

2.9

4.1

Interest and lease finance expense

0.4

 

0.3

 

0.6

 

 

0.3

 

 

0.4

0.3

0.6

0.3

EBITDA

18.3

 

9.1

 

18.7

 

13.6

 

10.7

 

 

21.3

21.7

21.4

17.6

18.0

Change in fair value of contingent consideration

1.6

 

3.5

 

(0.4

)

1.0

 

5.3

 

 

Contingent consideration recorded as compensation (included in SG&A)

0.1

 

0.1

 

0.1

 

0.2

 

0.2

 

 

Accounting for CIPW Canada redeemable units (included in SG&A)

0.7

 

0.7

 

2.0

 

0.2

 

0.2

 

 

FX (gains)/losses

(1.0

)

1.8

 

(1.4

)

0.5

 

0.2

 

 

Severance

0.7

 

 

0.9

 

0.7

 

0.1

 

 

Transaction, integration, restructuring and legal

 

5.4

 

0.4

 

0.1

 

0.3

 

 

Non-controlling interest reclassification (included in Other)

1.0

 

1.1

 

1.1

 

1.3

 

1.1

 

 

Total adjustments

3.1

 

12.6

 

2.7

 

4.0

 

7.3

 

 

Adjusted EBITDA

21.3

 

21.7

 

21.4

 

17.6

 

18.0

 

 

21.3

21.7

21.4

17.6

18.0

Less: Non-controlling interest

1.8

 

2.0

 

1.2

 

1.4

 

1.9

 

 

1.8

2.0

1.2

1.4

1.9

Adjusted EBITDA attributable to shareholders

19.5

 

19.7

 

20.1

 

16.2

 

16.2

 

 

19.5

19.7

20.1

16.2

16.2

 

 

 

 

 

 

 

 

 

 

 

 

RESULTS OF OPERATIONS - U.S. WEALTH MANAGEMENT SEGMENT

(unaudited except for Dec. 31, 2023 amounts)

 

 

 

[millions of dollars, except per share amounts]

IFRS Results

 

Adjusted Results

For the quarters ended

 

For the quarters ended

 

Mar. 31, 2024

 

Dec. 31, 2023

 

Sep. 30, 2023

 

Jun. 30, 2023

 

Mar. 31, 2023

 

Mar. 31, 2024

 

Dec. 31, 2023

 

Sep. 30, 2023

 

Jun. 30, 2023

 

Mar. 31, 2023

Revenues

 

 

 

 

 

 

 

 

 

 

 

U.S. wealth management fees

242.1

 

226.8

 

229.0

 

216.8

 

201.3

 

 

242.1

226.8

 

229.0

216.8

201.3

Other revenues

7.4

 

4.5

 

14.9

 

5.4

 

6.3

 

 

8.8

10.6

 

7.6

6.7

8.3

FX gains/(losses)

3.1

 

(2.1

)

0.1

 

(0.6

)

 

 

 

Other gains/(losses)

0.6

 

1.9

 

 

70.4

 

 

 

0.3

(1.0

)

Total net revenues

253.2

 

231.1

 

244.0

 

291.9

 

207.7

 

 

251.1

236.4

 

236.6

223.5

209.6

Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

283.7

 

231.1

 

195.2

 

209.5

 

173.0

 

 

142.4

139.7

 

136.0

128.8

123.8

Other

0.8

 

(6.9

)

10.1

 

1.6

 

1.7

 

 

0.8

0.4

 

1.4

0.5

0.2

Interest and lease finance expense

5.2

 

4.0

 

0.8

 

3.2

 

0.8

 

 

3.5

2.1

 

0.8

3.2

0.8

Depreciation and other amortization

8.3

 

8.3

 

5.2

 

5.0

 

5.1

 

 

7.0

6.5

 

5.2

5.0

5.1

Amortization of intangible assets from acquisitions

32.1

 

33.2

 

32.0

 

30.3

 

28.6

 

 

 

Transaction, integration, restructuring and legal

22.1

 

32.5

 

22.7

 

21.1

 

12.2

 

 

 

Change in fair value of contingent consideration

27.1

 

14.5

 

(6.1

)

13.5

 

50.4

 

 

 

Change in fair value of preferred equity

52.3

 

100.5

 

21.4

 

35.0

 

 

 

 

Total expenses

431.7

 

417.2

 

281.3

 

319.3

 

271.7

 

 

153.8

148.8

 

143.4

137.6

129.9

Pretax income

(178.4

)

(186.1

)

(37.3

)

(27.3

)

(64.0

)

 

97.4

87.7

 

93.2

85.9

79.7

 

 

 

 

 

 

 

 

 

 

 

 

Non-IFRS adjustments

 

 

 

 

 

 

 

 

 

 

 

Pretax income

(178.4

)

(186.1

)

(37.3

)

(27.3

)

(64.0

)

 

97.4

87.7

 

93.2

85.9

79.7

Amortization of intangible assets from acquisitions

32.1

 

33.2

 

32.0

 

30.3

 

28.6

 

 

 

 

 

Amortization of intangible assets for equity accounted investments

1.3

 

1.3

 

1.3

 

1.3

 

2.0

 

 

 

Depreciation and other amortization

8.3

 

8.3

 

5.2

 

5.0

 

5.1

 

 

7.0

8.3

 

5.2

5.0

5.1

Interest and lease finance expense

5.2

 

4.0

 

0.8

 

3.2

 

0.8

 

 

3.5

4.0

 

0.8

3.2

0.8

EBITDA

(131.5

)

(139.3

)

2.1

 

12.5

 

(27.5

)

 

107.9

100.0

 

99.3

94.2

85.6

Change in fair value of contingent consideration

27.1

 

14.5

 

(6.1

)

13.5

 

50.4

 

 

 

Change in fair value of Preferred Share Liability

52.3

 

100.5

 

21.4

 

35.0

 

 

 

 

Contingent and strategic recruitment consideration recorded as compensation (included in SG&A)

13.7

 

1.9

 

4.3

 

0.6

 

1.5

 

 

 

Non-controlling interest reclassification (included in Other)

 

(2.5

)

 

1.2

 

1.4

 

 

 

Accounting for redeemable units (included in SG&A)

126.0

 

93.2

 

54.7

 

79.4

 

42.9

 

 

 

FX (gains)/losses

(3.1

)

2.1

 

(0.1

)

0.6

 

 

 

 

Severance

2.2

 

0.2

 

0.2

 

0.7

 

4.8

 

 

 

Amortization of loan guarantees

(0.6

)

(3.8

)

 

 

 

 

 

Transaction, integration, restructuring and legal

22.1

 

36.1

 

22.7

 

21.1

 

12.2

 

 

 

Pass through carried interest revenue (included in Other revenues)

 

4.8

 

(8.7

)

 

 

 

 

Pass through carried interest expense (included in Other)

 

(4.8

)

8.7

 

 

 

 

 

Other (gains)/losses

(0.4

)

(2.9

)

 

(70.3

)

 

 

 

Total adjustments

239.4

 

239.3

 

97.2

 

81.7

 

113.1

 

 

 

Adjusted EBITDA

107.9

 

100.0

 

99.3

 

94.2

 

85.6

 

 

107.9

100.0

 

99.3

94.2

85.6

Less: Non-controlling interest

41.9

 

37.4

 

37.6

 

25.4

 

16.5

 

 

41.9

37.4

 

37.6

25.4

16.5

Adjusted EBITDA attributable to shareholders

66.0

 

62.5

 

61.6

 

68.8

 

69.1

 

 

66.0

62.5

 

61.6

68.8

69.1

 

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