TORONTO--(BUSINESS WIRE)--CI Financial Corp. (“CI”) (TSX: CIX, NYSE: CIXX) today released financial results for the quarter ended June 30, 2022.
“These results validate our corporate strategy and capital allocation policies,” said Kurt MacAlpine, CI Chief Executive Officer. “Our expansion in wealth management in the United States and Canada has added stability and diversification to our business, with our U.S. operations making increasing contributions to revenues and earnings. Despite continued volatility in capital markets, we achieved year-over-year growth in overall EBITDA, earnings per share and free cash flow per share.1
“While the Canadian fund industry had total redemptions of $19 billion during the quarter, our flows in Canadian retail asset management were relatively stable, supported by improving overall investment performance and several successful product launches,” Mr. MacAlpine said.
“We continue to advance our U.S. wealth management strategy, both through acquisitions of selected, high-quality RIAs and through an array of initiatives to capture synergies, expand our services and support to clients, and foster organic growth. The success of these programs can be seen in the attractive, growing margins of our U.S. business.”
Operating and financial data highlights |
|||||
[millions of dollars, except share amounts] |
As of and for the quarters ended |
||||
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
|
Total AUM and Client Assets: |
|
|
|
|
|
Asset Management AUM |
116,065 |
136,271 |
144,247 |
139,380 |
138,187 |
Canada Wealth Management assets |
74,128 |
78,957 |
80,633 |
76,859 |
75,521 |
U.S. Wealth Management assets |
143,520 |
145,768 |
151,339 |
96,974 |
83,764 |
Total assets |
333,712 |
360,996 |
376,219 |
313,213 |
297,472 |
|
|
|
|
|
|
Asset Management Net Inflows: |
|
|
|
|
|
Retail |
(381) |
(861) |
142 |
684 |
530 |
Institutional |
(3,203) |
(264) |
(331) |
(126) |
(360) |
Australia |
(122) |
(305) |
82 |
159 |
(33) |
Closed Business |
(160) |
(203) |
(195) |
(146) |
(194) |
U.S. Asset Management |
(195) |
402 |
260 |
250 |
413 |
Total |
(4,060) |
(1,231) |
(42) |
821 |
356 |
|
|
|
|
|
|
IFRS Results |
|
|
|
|
|
Net income attributable to shareholders |
156.2 |
138.1 |
123.7 |
43.8 |
117.6 |
Diluted earnings per share |
0.81 |
0.70 |
0.62 |
0.22 |
0.57 |
Pretax income |
219.0 |
185.8 |
175.1 |
82.4 |
166.6 |
Pretax margin |
38.6 % |
29.3 % |
28.3 % |
15.9 % |
31.7 % |
Operating cash flow before the change in operating assets and liabilities |
141.2 |
207.7 |
179.2 |
135.2 |
158.1 |
|
|
|
|
|
|
Adjusted Results |
|
|
|
|
|
Adjusted net income |
149.1 |
166.8 |
171.0 |
159.2 |
153.0 |
Adjusted diluted earnings per share |
0.78 |
0.85 |
0.86 |
0.79 |
0.74 |
Adjusted EBITDA |
251.0 |
272.9 |
277.2 |
258.1 |
242.3 |
Adjusted EBITDA margin |
44.5 % |
46.5 % |
47.7 % |
47.0 % |
48.4 % |
Free cash flow |
176.4 |
201.6 |
187.1 |
180.9 |
164.1 |
|
|
|
|
|
|
Average shares outstanding |
191,151,896 |
196,111,771 |
196,816,227 |
199,321,002 |
203,039,536 |
Ending shares outstanding |
189,037,762 |
192,987,082 |
197,422,270 |
197,443,135 |
201,327,517 |
|
|
|
|
|
|
Total debt |
3,688 |
3,530 |
3,776 |
3,408 |
3,350 |
Net debt |
3,538 |
3,352 |
3,453 |
2,655 |
2,461 |
Net debt to adjusted EBITDA |
3.5 |
3.0 |
3.1 |
2.6 |
2.5 |
- Free cash flow, net debt, adjusted net income, adjusted earnings per share and adjusted EBITDA are not standardized earnings measures prescribed by IFRS. For further information, see “Non-IFRS Measures” note below.
Financial highlights
Net income grew to $156.2 million in the quarter from $138.1 million in the first quarter. Excluding non-operating items, adjusted net income declined to $149.1 million in the quarter from $166.8 million in the first quarter of 2022 as higher earnings in CI’s U.S. and Canadian wealth businesses were more than offset by lower earnings from the Asset Management segment due to the pressure on global financial assets.
Second quarter total net revenues declined 10.6% to $566.7 million in the quarter from $633.8 million in the first quarter of 2022. Excluding non-operating items, adjusted total net revenue fell 3.9% to $598.3 million, primarily driven by lower revenues from the Asset Management segment due to lower average AUM.
Second quarter total expenses declined 22.4% to $347.7 million in the quarter from $448.0 million in the first quarter of 2022. Excluding non-operating items, adjusted total expenses were essentially unchanged at $386.0 million, reflecting disciplined cost controls in a challenging operating environment, partially offset by the impact of acquisitions that closed during the quarter.
Capital allocation
In the second quarter of 2022, CI repurchased 4.1 million shares at a cost of $59.8 million, for an average cost of $14.67 per share, and paid $34.7 million in dividends at a rate of $0.18 per share.
The Board of Directors declared a quarterly dividend of $0.18 per share, payable on January 13, 2023 to shareholders of record on December 30, 2022. The annual dividend rate of $0.72 per share represented a yield of 4.9% on CI’s closing share price of $14.67 on August 10, 2022.
Second quarter business highlights
- CI announced its intention to sell up to 20% of its U.S. wealth management business via a U.S. initial public offering (“IPO”). CI stated that it intends to use the net proceeds from the IPO to pay down debt, and that a final decision on the IPO size, conditions and timing is pending and will be subject to market conditions.
- CI completed the acquisitions of two registered investment advisors (“RIAs”): Corient Capital Partners, LLC, of Newport Beach, California, which serves ultra-high-net-worth individuals and families across the United States, and Galapagos Partners, LP of Houston, a multi-family office serving wealthy families and individuals. Both transactions closed on April 29, 2022.
- CI Private Wealth US, LLC applied for a charter to establish and operate a South Dakota trust company, which, when granted, will allow CI’s wealth management business to offer administrative trust solutions.
- CI completed the acquisition of Toronto-based Northwood Family Office Ltd., giving CI a leading presence in the country’s multi-family office segment. The transaction was completed on April 1, 2022.
- In the latest initiatives to modernize CI’s asset management business, CI Global Asset Management (“CI GAM”) continued to enhance and broaden its product lineup. The firm introduced a private infrastructure investment solution managed by HarbourVest Partners, a global leader in private markets investing. CI GAM also launched CI Galaxy Blockchain ETF, CI Galaxy Metaverse ETF and CI Floating Rate Income Fund (ETF Series).
- Additionally, CI GAM claimed compliance with the Global Investment Performance Standards (“GIPS®”) from CFA Institute. The GIPS standards are universal and voluntary standards based on the fundamental principles of full disclosure and fair representation of investment performance.
- CI’s success in implementing innovative technologies and processes across its organization was recognized through a 2022 Digital Transformation Award (Large Private Sector category) from IT World Canada.
- CI joint venture Axia Real Assets launched a new U.S. real estate fund, the Axia U.S. Grocery Net Lease Fund II LP, through a private placement. The investment vehicle will be used to acquire a portfolio of dominant net lease grocery real estate assets across the U.S.
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: 884850):
- Canada toll-free: 1-833-950-0062
- United States toll-free: 1-844-200-6205
- United States (New York local): 1-646-904-5544
- All other locations: 1-929-526-1599.
A recording of the webcast will be archived on CI’s Investor Relations site.
About CI Financial
CI Financial Corp. is an integrated global wealth and asset management company. CI’s primary asset management businesses are CI Global Asset Management (CI Investments Inc.) and GSFM Pty Ltd., and it operates in Canadian wealth management through CI Assante Wealth Management (Assante Wealth Management (Canada) Ltd.), CI Private Counsel LP, Aligned Capital Partners Inc., Northwood Family Office Ltd., CI Direct Investing (WealthBar Financial Services Inc.), and CI Investment Services Inc.
CI’s U.S. wealth management businesses consist of Barrett Asset Management, LLC, Balasa Dinverno Foltz LLC, Bowling Portfolio Management LLC, Brightworth, LLC, BRR OpCo, LLC (Budros, Ruhlin & Roe), The Cabana Group, LLC, Corient Capital Partners, LLC, CPWM, LLC (Columbia Pacific Wealth Management), Columbia Pacific Advisors, LLC, Congress Wealth Management LLC, Dowling & Yahnke, LLC, Doyle Wealth Management, LLC, Galapagos Partners, LP, GLASfunds, LLC, Gofen & Glossberg, LLC, Matrix Capital Advisors, LLC, McCutchen Group LLC, OCM Capital Partners, LLC, Portola Partners Group LLC, Radnor Financial Advisors, LLC, RegentAtlantic Capital, LLC, The Roosevelt Investment Group, LLC, RGT Wealth Advisors, LLC, R.H. Bluestein & Co., Segall Bryant & Hamill, LLC, Stavis & Cohen Private Wealth, LLC, and Surevest LLC.
CI is listed on the Toronto Stock Exchange under CIX and on the New York Stock Exchange under CIXX. Further information is available at www.cifinancial.com.
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 and its intention to conduct an IPO of its US wealth management business. 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 these forward-looking statements include that CI will proceed with the IPO, that all outstanding acquisitions will be completed and their asset levels will remain stable, that the investment fund industry will remain stable and that interest rates will remain relatively stable. Factors that could cause actual results to differ materially from expectations include, among other things, general economic and market conditions, including interest and foreign exchange rates, global financial markets, the risk that the IPO may not occur in its expected timeframe or at all, changes in government regulations or in tax laws, industry competition, technological developments and other factors described or discussed in CI’s disclosure materials filed with applicable securities regulatory authorities from time to time. 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 |
|
|
|
2022 |
2021 |
[in thousands of Canadian dollars, except per share amounts] |
$ |
$ |
REVENUE |
|
|
Canada asset management fees |
404,279 |
441,139 |
Trailer fees and deferred sales commissions |
(123,952) |
(137,685) |
Net asset management fees |
280,327 |
303,454 |
Canada wealth management fees |
130,103 |
119,901 |
U.S. wealth management fees |
168,949 |
71,400 |
Other revenues |
21,210 |
17,982 |
Foreign exchange gains (losses) |
(32,864) |
8,174 |
Other gains (losses) |
(1,069) |
3,830 |
Total net revenues |
566,656 |
524,741 |
|
|
|
EXPENSES |
|
|
Selling, general and administrative |
239,521 |
173,936 |
Advisor and dealer fees |
99,711 |
93,412 |
Interest and lease finance |
36,235 |
24,249 |
Amortization and depreciation |
11,909 |
9,702 |
Amortization of intangible assets from acquisitions |
27,436 |
11,669 |
Transaction, integration, restructuring and legal settlements |
4,587 |
17,543 |
Change in fair value of contingent consideration |
(74,977) |
22,410 |
Other |
3,230 |
5,258 |
Total expenses |
347,652 |
358,179 |
Income before income taxes |
219,004 |
166,562 |
|
|
|
Provision for (recovery of) income taxes |
|
|
Current |
46,835 |
54,764 |
Deferred |
13,901 |
(6,614) |
|
60,736 |
48,150 |
Net income for the period |
158,268 |
118,412 |
Net income attributable to non-controlling interests |
2,057 |
792 |
Net income attributable to shareholders |
156,211 |
117,620 |
Basic earnings per share attributable to shareholders |
$0.82 |
$0.58 |
Diluted earnings per share attributable to shareholders |
$0.81 |
$0.57 |
|
|
|
Other comprehensive income (loss), net of tax |
|
|
Exchange differences on translation of foreign operations |
17,662 |
(10,475) |
Total other comprehensive income (loss), net of tax |
17,662 |
(10,475) |
Comprehensive income for the period |
175,930 |
107,937 |
Comprehensive income attributable to non-controlling interests |
2,996 |
792 |
Comprehensive income attributable to shareholders |
172,934 |
107,145 |
CONSOLIDATED BALANCE SHEET |
|
|
|
As at |
As at |
|
June 30, 2022 |
December 31, 2021 |
[in thousands of Canadian dollars] |
$ |
$ |
ASSETS |
|
|
Current |
|
|
Cash and cash equivalents |
154,844 |
230,779 |
Client and trust funds on deposit |
1,462,148 |
1,199,904 |
Investments |
37,981 |
131,772 |
Accounts receivable and prepaid expenses |
247,057 |
272,962 |
Income taxes receivable |
12,556 |
3,607 |
Total current assets |
1,914,586 |
1,839,024 |
Capital assets, net |
54,687 |
52,596 |
Right-of-use assets |
140,266 |
142,606 |
Intangibles |
6,471,980 |
6,185,237 |
Deferred income taxes |
45,887 |
56,901 |
Other assets |
439,440 |
383,187 |
Total assets |
9,066,846 |
8,659,551 |
LIABILITIES AND EQUITY |
|
|
Current |
|
|
Accounts payable and accrued liabilities |
283,796 |
369,081 |
Current portion of provisions and other financial liabilities |
321,062 |
572,432 |
Redeemable non-controlling interests |
598,130 |
— |
Dividends payable |
68,054 |
71,072 |
Client and trust funds payable |
1,467,614 |
1,202,079 |
Income taxes payable |
12,841 |
19,035 |
Current portion of long-term debt |
314,573 |
444,486 |
Current portion of lease liabilities |
20,390 |
20,216 |
Total current liabilities |
3,086,460 |
2,698,401 |
Long-term debt |
3,373,540 |
3,331,552 |
Provisions and other financial liabilities |
248,414 |
379,641 |
Deferred income taxes |
484,511 |
480,777 |
Lease liabilities |
150,921 |
153,540 |
Total liabilities |
7,343,846 |
7,043,911 |
Equity |
|
|
Share capital |
1,742,376 |
1,810,153 |
Contributed surplus |
35,374 |
28,368 |
Deficit |
(72,182) |
(226,715) |
Accumulated other comprehensive loss |
(12,629) |
(23,289) |
Total equity attributable to the shareholders of the Company |
1,692,939 |
1,588,517 |
Non-controlling interests |
30,061 |
27,123 |
Total equity |
1,723,000 |
1,615,640 |
Total liabilities and equity |
9,066,846 |
8,659,551 |
STATEMENT OF CASH FLOWS |
|
|
For the three-month period ended June 30 |
|
|
|
2022 |
2021 |
[in thousands of Canadian dollars] |
$ |
$ |
OPERATING ACTIVITIES (*) |
|
|
Net income for the period |
158,268 |
118,412 |
Add (deduct) items not involving cash |
|
|
Other (gains) losses |
1,069 |
(5,307) |
Change in fair value of contingent consideration |
(74,977) |
22,410 |
Contingent consideration recorded as compensation |
670 |
939 |
Recognition of vesting of redeemable non-controlling interests |
(3,420) |
— |
Equity-based compensation |
6,325 |
6,660 |
Amortization and depreciation |
39,345 |
21,371 |
Deferred income taxes |
13,901 |
(6,614) |
Loss on repurchases of long-term debt |
— |
212 |
Cash provided by operating activities before net change in operating assets and liabilities |
141,181 |
158,083 |
Net change in operating assets and liabilities |
22,929 |
(27,989) |
Cash provided by operating activities |
164,110 |
130,094 |
|
|
|
INVESTING ACTIVITIES |
|
|
Purchase of investments |
(78) |
(1,384) |
Proceeds on sale of investments |
71 |
6,194 |
Additions to capital assets |
(5,553) |
(1,255) |
Decrease (increase) in other assets |
13,287 |
(41,780) |
Additions to intangibles |
(2,713) |
(2,113) |
Cash paid to settle acquisition liabilities |
(38,626) |
(45,468) |
Acquisitions, net of cash acquired |
(155,828) |
(371,958) |
Cash used in investing activities |
(189,440) |
(457,764) |
|
|
|
FINANCING ACTIVITIES |
|
|
Repayment of long-term debt |
— |
(16,514) |
Issuance of long-term debt |
85,000 |
1,075,460 |
Repurchase of long-term debt |
— |
(4,779) |
Repurchase of share capital |
(59,248) |
(132,043) |
Payment of lease liabilities |
(5,110) |
(4,203) |
Issuance of redeemable non-controlling interest |
9,577 |
— |
Net distributions to non-controlling interest |
(1,348) |
(580) |
Dividends paid to shareholders |
(34,748) |
(36,728) |
Cash provided by (used in) financing activities |
(5,877) |
880,613 |
Net increase (decrease) in cash and cash equivalents during the period |
(31,207) |
552,943 |
Cash and cash equivalents, beginning of period |
186,051 |
248,394 |
Cash and cash equivalents, end of period |
154,844 |
801,337 |
(*) Included in operating activities are the following: |
|
|
Interest paid |
55,574 |
30,281 |
Income taxes paid |
54,951 |
46,401 |
ASSETS UNDER MANAGEMENT AND NET FLOWS |
|||||
[billions of dollars] |
Quarters ended |
||||
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
|
Beginning AUM |
136.3 |
144.2 |
139.4 |
138.2 |
132.6 |
Gross inflows |
4.8 |
4.9 |
5.2 |
5.1 |
6.1 |
Gross outflows |
8.7 |
6.6 |
5.5 |
4.5 |
6.1 |
Net inflows/(outflows) |
(3.9) |
(1.6) |
(0.3) |
0.6 |
(0.1) |
Acquisitions |
— |
— |
— |
— |
0.2 |
Market move and FX |
(16.3) |
(6.3) |
5.2 |
0.6 |
5.5 |
Ending AUM |
116.1 |
136.3 |
144.2 |
139.4 |
138.2 |
Proprietary AUM |
30.8 |
34.5 |
36.2 |
34.7 |
34.5 |
Non-proprietary AUM |
85.3 |
101.8 |
108.0 |
104.7 |
103.7 |
Average assets under management |
125.4 |
138.2 |
143.0 |
141.1 |
135.9 |
Annualized organic growth |
(11.4) % |
(4.6) % |
(0.9) % |
1.6 % |
(0.2) % |
|
|
|
|
|
|
Gross management fee/average AUM |
1.31 % |
1.30 % |
1.30 % |
1.31 % |
1.31 % |
Net management fee/average AUM |
0.89 % |
0.88 % |
0.88 % |
0.88 % |
0.88 % |
|
|
|
|
|
|
Net Inflows |
|
|
|
|
|
Retail |
(0.4) |
(0.9) |
0.1 |
0.7 |
0.5 |
Institutional |
(3.2) |
(0.3) |
(0.3) |
(0.1) |
(0.4) |
Closed business |
(0.2) |
(0.2) |
(0.2) |
(0.1) |
(0.2) |
Total Canada net inflows |
(3.7) |
(1.3) |
(0.4) |
0.4 |
— |
Australia |
(0.1) |
(0.3) |
0.1 |
0.2 |
— |
Total net inflows/(outflows) |
(3.9) |
(1.6) |
(0.3) |
0.6 |
(0.1) |
RETAIL (ex Closed Business) |
|||||
[billions of dollars] |
Quarters ended |
||||
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
|
Beginning AUM |
108.4 |
114.6 |
110.4 |
109.1 |
103.9 |
Net Flows |
(0.4) |
(0.9) |
0.1 |
0.7 |
0.5 |
Market Move / FX |
(12.9) |
(5.3) |
4.1 |
0.6 |
4.5 |
Acquisitions |
___ |
___ |
___ |
0.2 |
___ |
Ending AUM |
95.1 |
108.4 |
114.6 |
110.4 |
109.1 |
Average AUM |
101.4 |
109.6 |
113.8 |
111.8 |
106.8 |
INSTITUTIONAL |
|||||
[billions of dollars] |
Quarters ended |
||||
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
|
Beginning AUM |
12.7 |
13.3 |
13.0 |
13.0 |
12.7 |
Net Flows |
(3.2) |
(0.3) |
0.3 |
(0.1) |
(0.4) |
Market Move / FX |
(1.1) |
(0.3) |
0.6 |
0.1 |
0.7 |
Acquisitions |
___ |
___ |
___ |
___ |
___ |
Ending AUM |
8.4 |
12.7 |
13.3 |
13.0 |
13.0 |
Average AUM |
10.2 |
12.9 |
13.2 |
13.3 |
13.0 |
AUSTRALIA |
|||||
[billions of dollars] |
Quarters ended |
||||
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
|
Beginning AUM |
6.6 |
7.3 |
7.0 |
6.9 |
7.1 |
Net Flows |
(0.1) |
(0.3) |
0.1 |
0.1 |
(0.0) |
Market Move / FX |
(1.4) |
(0.4) |
0.2 |
0.0 |
(0.2) |
Acquisitions |
___ |
___ |
___ |
___ |
___ |
Ending AUM |
5.1 |
6.6 |
7.3 |
7.0 |
6.9 |
Average AUM |
5.8 |
7.0 |
7.1 |
7.0 |
7.1 |
CLOSED BUSINESS |
|||||
[billions of dollars] |
Quarters ended |
||||
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
|
Beginning AUM |
8.6 |
9.1 |
9.0 |
9.1 |
8.9 |
Net Flows |
(0.2) |
(0.2) |
(0.2) |
(0.2) |
(0.2) |
Market Move / FX |
(0.9) |
(0.3) |
0.3 |
(0.0) |
0.4 |
Acquisitions |
___ |
___ |
___ |
___ |
___ |
Ending AUM |
7.5 |
8.6 |
9.1 |
8.9 |
9.1 |
Average AUM |
8.0 |
8.7 |
9.0 |
9.0 |
9.0 |
AUM BY ASSET CLASS |
|||||
[billions of dollars] |
Quarters ended |
||||
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
|
Balanced |
50.9 |
59.4 |
62.1 |
60.3 |
60.3 |
Equity |
41.4 |
49.3 |
52.3 |
50.1 |
49.8 |
Fixed income |
11.7 |
13.1 |
14.2 |
14.1 |
13.9 |
Alternatives |
3.6 |
4.9 |
5.7 |
5.0 |
4.3 |
Cash/Other |
3.4 |
3.0 |
2.7 |
2.8 |
2.9 |
Total Canada asset management |
111.0 |
129.7 |
137.0 |
132.4 |
131.3 |
Australia |
5.1 |
6.6 |
7.3 |
7.0 |
6.9 |
Total asset management segment |
116.1 |
136.3 |
144.2 |
139.4 |
138.2 |
CANADA WEALTH MANAGEMENT CLIENT ASSETS |
|||||
[billions of dollars] |
Quarters ended |
||||
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
|
Beginning client assets |
79.0 |
80.6 |
76.9 |
75.5 |
71.1 |
Acquisitions |
2.4 |
— |
— |
— |
— |
Net flows and market move |
(7.2) |
(1.7) |
3.8 |
1.3 |
4.5 |
Ending client assets |
74.1 |
79.0 |
80.6 |
76.9 |
75.5 |
Average client assets |
77.7 |
79.0 |
78.9 |
77.0 |
73.1 |
Wealth management fees/average client assets |
0.91 % |
0.95 % |
0.93 % |
0.94 % |
0.91 % |
U.S. WEALTH MANAGEMENT CLIENT ASSETS |
|||||
[billions of dollars] |
Quarters ended |
||||
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
|
Beginning billable client assets |
141.2 |
146.4 |
96.1 |
82.9 |
30.7 |
Acquisitions |
7.1 |
1.1 |
49.3 |
10.1 |
49.5 |
Net flows and market move |
(9.5) |
(6.3) |
1.0 |
3.1 |
2.7 |
Ending billable client assets |
138.8 |
141.2 |
146.4 |
96.1 |
82.9 |
Unbillable client assets |
4.8 |
4.6 |
4.9 |
0.9 |
0.8 |
Total client assets |
143.5 |
145.8 |
151.3 |
97.0 |
83.8 |
Fees/beginning billable client assets1 |
0.48 % |
0.46 % |
0.50 % |
0.52 % |
0.71 % |
|
|
|
|||
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 11, 2022 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, 2022 |
Mar. 31, 2022 |
Jun. 30, 2021 |
|
Net Income |
158.3 |
137.5 |
118.4 |
Amortization of intangible assets from acquisitions |
27.4 |
24.1 |
12.0 |
Change in fair value of contingent consideration |
(75.0) |
3.1 |
22.4 |
Contingent consideration recorded as compensation |
0.7 |
18.2 |
0.9 |
Non-controlling interest reclassification |
0.9 |
0.9 |
— |
CIPW adjustments |
3.1 |
13.2 |
— |
FX (gains)/losses |
32.9 |
(11.5) |
(8.2) |
Transaction, integration, restructuring and legal |
4.6 |
3.8 |
17.5 |
Other (gains)/losses |
(1.2) |
— |
(1.4) |
Bond redemption costs |
— |
— |
0.2 |
Total adjustments1 |
(6.7) |
51.7 |
43.6 |
Tax effect of adjustments |
5.6 |
(11.5) |
(8.2) |
Less: Non-controlling interest |
8.1 |
10.9 |
0.8 |
Adjusted net income |
149.1 |
166.8 |
153.0 |
Adjusted earnings per share |
0.78 |
0.85 |
0.75 |
Adjusted diluted earnings per share |
0.78 |
0.85 |
0.74 |
|
EBITDA, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN |
|||
[millions of dollars, except per share amounts] |
Quarters ended |
||
Jun. 30, 2022 |
Mar. 31, 2022 |
Jun. 30, 2021 |
|
Pretax income |
219.0 |
185.8 |
166.6 |
Amortization of intangible assets from acquisitions |
27.4 |
24.1 |
12.1 |
Depreciation and other amortization |
11.9 |
11.4 |
9.7 |
Interest and lease finance expense |
36.2 |
35.9 |
24.2 |
EBITDA |
294.6 |
257.1 |
212.6 |
Change in fair value of contingent consideration |
(75.0) |
3.1 |
22.4 |
Contingent consideration recorded as compensation |
0.7 |
18.2 |
0.9 |
Non-controlling interest reclassification |
0.9 |
0.9 |
— |
CIPW adjustments |
3.1 |
13.2 |
— |
FX (gains)/losses |
32.9 |
(11.5) |
(8.2) |
Transaction, integration, restructuring and legal |
4.6 |
3.8 |
17.5 |
Other (gains)/losses |
(1.2) |
— |
(1.4) |
Bond redemption costs |
— |
— |
0.2 |
Total adjustments |
(34.1) |
27.7 |
31.6 |
Non-controlling interest |
9.5 |
11.9 |
1.9 |
Adjusted EBITDA |
251.0 |
272.9 |
242.3 |
|
|
|
|
Reported net revenue |
566.7 |
633.8 |
524.7 |
Less: FX gains/(losses) |
(32.9) |
11.5 |
8.2 |
Less: Non-Operating Other gains/(losses) |
1.2 |
— |
1.4 |
Less: NCI revenues |
34.8 |
35.5 |
15.0 |
Adjusted net revenue |
563.5 |
586.8 |
500.2 |
Adjusted EBITDA margin |
44.5 % |
46.5 % |
48.4 % |
FREE CASH FLOW |
|||
[millions of dollars] |
Quarters ended |
||
Jun. 30, 2022 |
Mar. 31, 2022 |
Jun. 30, 2021 |
|
Cash provided by operating activities |
164.1 |
154.8 |
130.1 |
Net change in operating assets and liabilities |
(22.9) |
52.9 |
28.1 |
Operating cash flow before the change in operating assets and liabilities |
141.2 |
207.7 |
158.1 |
FX (gains)/losses |
32.9 |
(11.5) |
(8.2) |
Transaction, integration, restructuring and legal |
4.6 |
3.8 |
17.5 |
Other (gains)/losses |
— |
— |
— |
Total adjustments |
37.5 |
(7.7) |
9.3 |
Tax effect (recovery) of adjustments |
(5.7) |
1.2 |
(1.4) |
Less: Non-controlling interest |
(3.4) |
(0.4) |
1.9 |
Free cash flow |
176.4 |
201.6 |
164.1 |
NET DEBT |
|
|
|
|
|
|
Quarters ended |
||||
[millions of dollars] |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Current portion of long-term debt |
314.6 |
225.3 |
444.5 |
74.2 |
— |
Long-term debt |
3,373.5 |
3,304.7 |
3,331.6 |
3,334.2 |
3,350.2 |
|
3,688.1 |
3,530.0 |
3,776.0 |
3,408.4 |
3,350.2 |
Less: |
|
|
|
|
|
Cash and short-term investments |
154.8 |
186.1 |
230.8 |
653.9 |
801.3 |
Marketable securities |
18.1 |
20.3 |
116.9 |
122.5 |
121.1 |
Add: |
|
|
|
|
|
Regulatory capital and non-controlling interests |
22.4 |
28.8 |
25.0 |
23.1 |
33.4 |
Net Debt |
3,537.5 |
3,352.4 |
3,453.4 |
2,655.1 |
2,461.2 |
|
|
|
|
|
|
Adjusted EBITDA |
251.0 |
272.9 |
277.2 |
258.1 |
242.3 |
Adjusted EBITDA, annualized |
1,006.9 |
1,106.6 |
1,099.8 |
1,024.1 |
971.9 |
Gross leverage (Gross debt/Annualized adjusted EBITDA) |
3.7 |
3.2 |
3.4 |
3.3 |
3.4 |
Net leverage (Net debt/Annualized adjusted EBITDA) |
3.5 |
3.0 |
3.1 |
2.6 |
2.5 |
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, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Asset management fees |
404.3 |
437.6 |
464.9 |
460.9 |
441.1 |
404.3 |
437.6 |
464.9 |
460.9 |
441.1 |
|
Trailer fees and deferred sales commissions |
(124.0) |
(135.3) |
(143.6) |
(143.4) |
(137.7) |
(124.0) |
(135.3) |
(143.6) |
(143.4) |
(137.7) |
|
Net asset management fees |
280.3 |
302.3 |
321.3 |
317.5 |
303.5 |
280.3 |
302.3 |
321.3 |
317.5 |
303.5 |
|
Canada wealth management fees |
130.1 |
138.2 |
134.9 |
132.5 |
119.9 |
130.1 |
138.2 |
134.9 |
132.5 |
119.9 |
|
U.S. wealth management fees |
168.9 |
164.5 |
120.9 |
108.1 |
71.4 |
168.9 |
164.5 |
120.9 |
108.1 |
71.4 |
|
Other revenues |
21.2 |
21.6 |
27.3 |
11.2 |
18.0 |
21.2 |
21.6 |
27.3 |
11.2 |
18.0 |
|
FX gains/(losses) |
(32.9) |
11.5 |
3.1 |
(50.3) |
8.2 |
— |
— |
— |
— |
— |
|
Other gains/(losses) |
(1.1) |
(4.4) |
11.9 |
(1.1) |
3.8 |
(2.3) |
(4.4) |
(4.9) |
(1.1) |
2.5 |
|
Total net revenues |
566.7 |
633.8 |
619.3 |
517.9 |
524.7 |
598.3 |
622.3 |
599.4 |
568.2 |
515.2 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Selling, general & administrative |
239.5 |
259.6 |
214.6 |
201.9 |
173.9 |
235.7 |
228.2 |
212.5 |
197.7 |
173.0 |
|
Advisor and dealer fees |
99.7 |
106.9 |
104.8 |
103.4 |
93.4 |
99.7 |
106.9 |
104.8 |
103.4 |
93.4 |
|
Other |
3.2 |
3.2 |
5.7 |
6.5 |
5.3 |
2.4 |
2.4 |
5.7 |
6.5 |
5.0 |
|
Interest and lease finance expense |
36.2 |
35.9 |
32.5 |
31.6 |
24.2 |
36.2 |
35.9 |
32.5 |
31.6 |
24.2 |
|
Depreciation and other amortization |
11.9 |
11.4 |
10.9 |
10.3 |
9.7 |
11.9 |
11.4 |
10.4 |
10.0 |
9.4 |
|
Amortization of intangible assets from acquisitions |
27.4 |
24.1 |
18.2 |
16.4 |
11.7 |
— |
— |
— |
— |
— |
|
Transaction, integration, restructuring and legal |
4.6 |
3.8 |
13.6 |
3.9 |
17.5 |
— |
— |
— |
— |
— |
|
Change in fair value of contingent consideration |
(75.0) |
3.1 |
43.9 |
61.4 |
22.4 |
— |
— |
— |
— |
— |
|
Total expenses |
347.7 |
448.0 |
444.2 |
435.5 |
358.2 |
386.0 |
384.8 |
365.9 |
349.2 |
305.1 |
|
Pretax income |
219.0 |
185.8 |
175.1 |
82.4 |
166.6 |
212.3 |
237.5 |
233.4 |
219.0 |
210.1 |
|
Income tax expense |
60.7 |
48.3 |
51.3 |
37.0 |
48.2 |
55.1 |
59.7 |
62.5 |
58.1 |
56.4 |
|
Net income |
158.3 |
137.5 |
123.7 |
45.4 |
118.4 |
157.2 |
177.8 |
171.0 |
160.9 |
153.7 |
|
Non-controlling interest |
2.1 |
(0.6) |
— |
1.6 |
0.8 |
8.1 |
10.9 |
— |
1.6 |
0.8 |
|
Net income attributable to shareholders |
156.2 |
138.1 |
123.7 |
43.8 |
117.6 |
149.1 |
166.8 |
171.0 |
159.2 |
153.0 |
|
Basic earnings per share |
0.82 |
0.70 |
0.63 |
0.22 |
0.58 |
0.78 |
0.85 |
0.87 |
0.80 |
0.75 |
|
Diluted earnings per share |
0.81 |
0.70 |
0.62 |
0.22 |
0.57 |
0.78 |
0.85 |
0.86 |
0.79 |
0.74 |
|
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, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
Asset management fees |
408.9 |
442.5 |
469.6 |
465.6 |
445.5 |
408.9 |
442.5 |
469.6 |
465.6 |
445.5 |
Trailer fees and deferred sales commissions |
(131.9) |
(143.9) |
(152.6) |
(152.4) |
(146.3) |
(131.9) |
(143.9) |
(152.6) |
(152.4) |
(146.3) |
Net asset management fees |
277.0 |
298.6 |
316.9 |
313.2 |
299.3 |
277.0 |
298.6 |
316.9 |
313.2 |
299.3 |
Other revenues |
5.6 |
10.2 |
19.9 |
3.2 |
12.2 |
5.6 |
10.2 |
19.9 |
3.2 |
12.2 |
FX gains/(losses) |
(32.8) |
11.4 |
(1.4) |
(19.0) |
1.2 |
— |
— |
— |
— |
— |
Other gains/(losses) |
(1.1) |
(4.4) |
12.0 |
(1.1) |
3.8 |
(2.3) |
(4.4) |
(4.8) |
(1.1) |
2.5 |
Total net revenues |
248.7 |
315.8 |
347.5 |
296.3 |
316.5 |
280.2 |
304.4 |
332.1 |
315.3 |
313.9 |
Expenses |
|
|
|
|
|
|
|
|
|
|
Selling, general & administrative |
97.3 |
96.8 |
108.7 |
109.6 |
104.9 |
97.3 |
96.8 |
108.7 |
109.6 |
104.9 |
Other |
— |
— |
(0.5) |
1.6 |
0.2 |
— |
— |
(0.5) |
1.6 |
0.2 |
Interest and lease finance expense |
1.0 |
1.0 |
0.5 |
0.5 |
0.6 |
1.0 |
1.0 |
0.5 |
0.5 |
0.6 |
Depreciation and other amortization |
5.0 |
5.0 |
5.4 |
5.5 |
5.5 |
5.0 |
5.0 |
5.4 |
5.5 |
5.5 |
Amortization of intangible assets from acquisitions |
0.6 |
0.6 |
0.6 |
0.6 |
0.6 |
— |
— |
— |
— |
— |
Transaction, integration, restructuring and legal |
2.3 |
(0.9) |
10.4 |
0.4 |
14.6 |
— |
— |
— |
— |
— |
Change in fair value of contingent consideration |
(3.9) |
4.0 |
14.2 |
1.9 |
10.0 |
— |
— |
— |
— |
— |
Total expenses |
102.3 |
106.5 |
139.3 |
120.2 |
136.4 |
103.3 |
102.8 |
114.1 |
117.2 |
111.1 |
Pretax income |
146.4 |
209.3 |
208.1 |
176.1 |
180.1 |
176.9 |
201.6 |
218.0 |
198.1 |
202.8 |
|
|
|
|
|
|
|
|
|
|
|
Non-IFRS adjustments |
|
|
|
|
|
|
|
|
|
|
Pretax income |
146.4 |
209.3 |
208.1 |
176.1 |
180.1 |
176.9 |
201.6 |
218.0 |
198.1 |
202.8 |
Amortization of intangible assets from acquisitions |
0.6 |
0.6 |
0.6 |
0.6 |
0.6 |
— |
— |
— |
— |
— |
Depreciation and other amortization |
5.0 |
5.0 |
5.4 |
5.5 |
5.5 |
5.0 |
5.0 |
5.4 |
5.5 |
5.5 |
Interest and lease finance expense |
1.0 |
1.0 |
0.5 |
0.5 |
0.6 |
1.0 |
1.0 |
0.5 |
0.5 |
0.6 |
EBITDA |
153.0 |
215.9 |
214.7 |
182.7 |
186.7 |
183.0 |
207.6 |
223.9 |
204.1 |
208.8 |
Contingent consideration recorded as compensation (included in SG&A) |
(3.9) |
4.0 |
14.2 |
1.9 |
10.0 |
— |
— |
— |
— |
— |
FX (gains)/losses |
32.8 |
(11.4) |
1.4 |
19.0 |
(1.2) |
— |
— |
— |
— |
— |
Transaction, integration, restructuring and legal |
2.3 |
(0.9) |
10.4 |
0.4 |
14.6 |
— |
— |
— |
— |
— |
Other (gains)/losses |
(1.2) |
— |
(16.8) |
— |
(1.4) |
— |
— |
— |
— |
— |
Total adjustments |
30.0 |
(8.3) |
9.2 |
21.4 |
22.1 |
— |
— |
— |
— |
— |
Less: Non-controlling interest |
0.3 |
0.4 |
0.1 |
0.5 |
0.2 |
0.3 |
0.4 |
0.1 |
0.5 |
0.2 |
Adjusted EBITDA |
182.7 |
207.2 |
223.8 |
203.6 |
208.6 |
182.7 |
207.2 |
223.8 |
203.6 |
208.6 |
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, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
Canada wealth management fees |
175.6 |
185.7 |
184.3 |
181.7 |
166.5 |
175.6 |
185.7 |
184.3 |
181.7 |
166.5 |
Other revenues |
21.3 |
17.1 |
16.0 |
14.8 |
13.9 |
21.3 |
17.1 |
16.0 |
14.8 |
13.9 |
FX gains/(losses) |
— |
0.1 |
0.8 |
0.7 |
0.7 |
— |
— |
— |
— |
— |
Other gains/(losses) |
— |
— |
(0.1) |
— |
— |
— |
— |
(0.1) |
— |
— |
Total net revenues |
196.9 |
202.9 |
201.1 |
197.2 |
181.1 |
196.9 |
202.8 |
200.3 |
196.5 |
180.4 |
Expenses |
|
|
|
|
|
|
|
|
|
|
Selling, general & administrative |
45.5 |
41.4 |
39.9 |
37.8 |
35.7 |
45.3 |
41.4 |
39.9 |
37.8 |
35.7 |
Advisor and dealer fees |
135.9 |
145.6 |
145.2 |
143.5 |
131.3 |
135.9 |
145.6 |
145.2 |
143.5 |
131.3 |
Other |
2.6 |
2.9 |
3.2 |
1.8 |
1.3 |
1.7 |
2.0 |
3.2 |
1.8 |
1.3 |
Interest and lease finance expense |
(0.1) |
0.2 |
0.2 |
0.2 |
0.1 |
(0.1) |
0.2 |
0.2 |
0.2 |
0.1 |
Depreciation and other amortization |
2.8 |
2.5 |
2.3 |
2.4 |
2.5 |
2.8 |
2.5 |
2.3 |
2.4 |
2.5 |
Amortization of intangible assets from acquisitions |
2.1 |
1.6 |
1.5 |
1.7 |
1.3 |
— |
— |
— |
— |
— |
Transaction, integration, restructuring and legal |
0.4 |
0.8 |
0.1 |
0.1 |
— |
— |
— |
— |
— |
— |
Change in fair value of contingent consideration |
(0.6) |
— |
— |
— |
— |
— |
— |
— |
— |
— |
Total expenses |
188.5 |
195.0 |
192.6 |
187.5 |
172.3 |
185.6 |
191.7 |
191.0 |
185.7 |
171.0 |
Pretax income |
8.4 |
7.9 |
8.5 |
9.7 |
8.8 |
11.4 |
11.1 |
9.3 |
10.8 |
9.5 |
|
|
|
|
|
|
|
|
|
|
|
Non-IFRS adjustments |
|
|
|
|
|
|
|
|
|
|
Pretax income |
8.4 |
7.9 |
8.5 |
9.7 |
8.8 |
11.4 |
11.1 |
9.3 |
10.8 |
9.5 |
Amortization of intangible assets from acquisitions |
2.1 |
1.6 |
1.6 |
1.8 |
1.4 |
— |
— |
0.1 |
0.1 |
0.1 |
Depreciation and other amortization |
2.8 |
2.5 |
2.3 |
2.4 |
2.5 |
2.8 |
2.5 |
2.3 |
2.4 |
2.5 |
Interest and lease finance expense |
(0.1) |
0.2 |
0.2 |
0.2 |
0.1 |
(0.1) |
0.2 |
0.2 |
0.2 |
0.1 |
EBITDA |
13.1 |
12.1 |
12.6 |
14.0 |
12.8 |
14.0 |
13.8 |
11.9 |
13.5 |
12.2 |
Change in fair value of contingent consideration |
(0.6) |
— |
— |
— |
— |
— |
— |
— |
— |
— |
Contingent consideration recorded as compensation |
0.1 |
— |
— |
— |
— |
— |
— |
— |
— |
— |
CIPW adjustments (included in SG&A) |
0.1 |
— |
— |
— |
— |
— |
— |
— |
— |
— |
FX (gains)/losses |
— |
(0.1) |
(0.8) |
(0.7) |
(0.7) |
— |
— |
— |
— |
— |
Transaction, integration, restructuring and legal |
0.4 |
0.8 |
0.1 |
0.1 |
— |
— |
— |
— |
— |
— |
NCI reclassification (included in Other) |
0.9 |
0.9 |
— |
— |
— |
— |
— |
— |
— |
— |
Total adjustments |
0.8 |
1.6 |
(0.7) |
(0.6) |
(0.6) |
— |
— |
— |
— |
— |
Less: Non-controlling interest |
1.0 |
0.9 |
(1.5) |
0.7 |
0.5 |
1.0 |
0.9 |
(1.5) |
0.7 |
0.5 |
Adjusted EBITDA |
13.0 |
12.9 |
13.5 |
12.8 |
11.6 |
13.0 |
12.9 |
13.5 |
12.8 |
11.6 |
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, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
U.S. wealth management fees |
168.9 |
164.5 |
120.9 |
108.1 |
71.4 |
168.9 |
164.5 |
120.9 |
108.1 |
71.4 |
Other revenues |
4.5 |
4.8 |
1.3 |
2.6 |
0.9 |
4.5 |
4.8 |
1.3 |
2.6 |
0.9 |
FX gains/(losses) |
— |
— |
3.7 |
(31.9) |
6.3 |
— |
— |
— |
— |
— |
Total net revenues |
173.4 |
169.2 |
125.9 |
78.8 |
78.6 |
173.5 |
169.2 |
122.2 |
110.7 |
72.3 |
Expenses |
|
|
|
|
|
|
|
|
|
|
Selling, general & administrative |
112.8 |
136.9 |
80.8 |
68.8 |
46.9 |
109.2 |
105.5 |
78.7 |
64.6 |
46.0 |
Other |
0.7 |
0.4 |
2.9 |
3.1 |
3.5 |
0.7 |
0.4 |
2.9 |
3.1 |
3.5 |
Interest and lease finance expense |
0.6 |
0.5 |
0.4 |
0.4 |
0.2 |
0.6 |
0.5 |
0.4 |
0.4 |
0.2 |
Depreciation and other amortization |
4.1 |
3.9 |
3.1 |
2.5 |
1.7 |
4.1 |
3.9 |
3.1 |
2.5 |
1.7 |
Amortization of intangible assets from acquisitions |
24.7 |
21.9 |
16.1 |
14.1 |
9.8 |
— |
— |
— |
— |
— |
Transaction, integration, restructuring and legal |
2.0 |
3.9 |
3.1 |
3.4 |
2.9 |
— |
— |
— |
— |
— |
Change in fair value of contingent consideration |
(70.5) |
(0.9) |
29.7 |
59.5 |
12.4 |
— |
— |
— |
— |
— |
Total expenses |
74.4 |
166.5 |
136.1 |
151.7 |
77.4 |
114.6 |
110.3 |
85.2 |
70.5 |
51.4 |
Pretax income |
99.0 |
2.7 |
(10.2) |
(72.9) |
1.2 |
58.9 |
59.0 |
37.0 |
40.2 |
20.9 |
|
|
|
|
|
|
|
|
|
|
|
Non-IFRS adjustments |
|
|
|
|
|
|
|
|
|
|
Pretax income |
99.0 |
2.7 |
(10.2) |
(72.9) |
1.2 |
58.9 |
59.0 |
37.0 |
40.2 |
20.9 |
Amortization of intangible assets from acquisitions |
24.7 |
21.9 |
16.5 |
14.4 |
10.1 |
— |
— |
0.5 |
0.3 |
0.3 |
Depreciation and other amortization |
4.1 |
3.9 |
3.1 |
2.5 |
1.7 |
4.1 |
3.9 |
3.1 |
2.5 |
1.7 |
Interest and lease finance expense |
0.6 |
0.5 |
0.4 |
0.4 |
0.2 |
0.6 |
0.5 |
0.4 |
0.4 |
0.2 |
EBITDA |
128.4 |
29.1 |
9.9 |
(55.6) |
13.2 |
63.5 |
63.4 |
41.0 |
43.4 |
23.1 |
Change in fair value of contingent consideration |
(70.5) |
(0.9) |
29.7 |
59.5 |
12.4 |
— |
— |
— |
— |
— |
Contingent consideration recorded as compensation (included in SG&A) |
0.6 |
18.2 |
2.1 |
4.2 |
0.9 |
— |
— |
— |
— |
— |
CIPW adjustments (included in SG&A) |
3.0 |
13.2 |
— |
— |
— |
— |
— |
— |
— |
— |
FX (gains)/losses |
— |
— |
(3.7) |
31.9 |
(6.3) |
— |
— |
— |
— |
— |
Transaction, integration, restructuring and legal |
2.0 |
3.9 |
3.1 |
3.4 |
2.9 |
— |
— |
— |
— |
— |
Total adjustments |
(64.9) |
34.3 |
31.1 |
99.0 |
9.9 |
— |
— |
— |
— |
— |
Less: Non-controlling interest |
8.2 |
10.9 |
1.0 |
1.7 |
1.0 |
8.2 |
10.9 |
1.0 |
1.7 |
1.0 |
Adjusted EBITDA |
55.4 |
52.5 |
40.0 |
41.7 |
22.1 |
55.4 |
52.5 |
40.0 |
41.7 |
22.1 |
