CIX CompX International Inc

• Diluted EPS of ($0.05), adjusted EPS1 of $0.74
• EBITDA of $117.2 million, adjusted EBITDA1 of $242.7 million
• Operating cash flow of $150.9 million, free cash flow1 of $157.9 million
• Total assets of $375.8 billion, up 11.2% over Q3
• Paid quarterly dividend of $32.5 million or $0.18 a share
• Acquired three RIAs in Q4, increasing U.S. wealth management assets to $181 billion

All financial amounts in Canadian dollars at December 31, 2022, unless stated otherwise. Financial amounts for the quarters and year ended 2022 are unaudited.

CI Financial Corp. (“CI”) (TSX: CIX) today released financial results for the quarter ended December 31, 2022.

“CI’s strong performance during an extended period of financial market volatility reflects the continued successful execution of the three pillars of our corporate strategy,” said Kurt MacAlpine, CI Chief Executive Officer.

“In the fourth quarter, robust net flows in our Canadian and U.S. businesses, along with the acquisition of three best-in-class U.S. registered investment advisor firms, drove double-digit asset growth.

“In Canadian asset management, we continue to see the benefits of the transformation of our investment management function from a group of independent boutiques into an integrated, global platform,” Mr. MacAlpine said. “In the fourth quarter, our Canadian retail business delivered $1.6 billion in positive net flows, versus net redemptions of more than $10 billion for the Canadian industry overall. Our relative investment results continue to be strong and our investment professionals received extensive industry recognition for their performance, winning 14 Refinitiv Lipper Fund Awards and 39 FundGrade A+ Awards for 2022.

“Our wealth management businesses had total net flows in 2022 of $6.6 billion in the U.S. and $3.8 billion in Canada, a testament to the excellence of our advisor teams and our differentiated approach to wealth management – which offers exceptional value to clients, especially during these uncertain times,” Mr. MacAlpine said. “We continue to make significant investments into advancing the technology, support and services of our Canadian wealth platform.

“Meanwhile, our U.S. wealth management business has tremendous momentum going into 2023, having added three high-quality RIAs in the fourth quarter and reaching $181 billion in assets [at December 31, 2022]. We started the process for the IPO of that business with the submission of the Form S-1 with the Securities and Exchange Commission in December. We’ve also assembled an accomplished leadership team at our U.S. headquarters to foster the continued integration of the business and the growth and development of our advisor teams across the country.”

Operating and financial data highlights

[millions of dollars, except share amounts]

As of and for the quarters ended

Dec. 31, 2022

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Total AUM and Client Assets:

 

 

 

 

 

Asset Management AUM

117,753

114,196

116,065

136,271

144,247

Canada Wealth Management assets

77,421

73,976

74,128

78,957

80,633

U.S. Wealth Management assets

180,579

149,841

143,520

145,768

151,339

Total assets

375,753

338,014

333,712

360,996

376,219

 

 

 

 

 

 

Asset Management Net Inflows:

 

 

 

 

 

Retail

1,621

640

(381)

(861)

142

Institutional

(195)

(21)

(3,203)

(264)

(331)

Australia

12

(377)

(122)

(305)

82

Closed Business

(169)

(129)

(160)

(203)

(195)

U.S. Asset Management

595

(38)

(195)

402

260

Total

1,864

75

(4,060)

(1,231)

(42)

 

 

 

 

 

 

IFRS Results (unaudited)

 

 

 

 

 

Net income attributable to shareholders

(9.5)

14.9

156.2

138.1

123.7

Diluted earnings per share

(0.05)

0.08

0.81

0.70

0.62

Pretax income

33.6

37.8

219.0

185.8

175.1

Pretax margin

5.4%

7.4%

38.6%

29.3%

28.3%

Operating cash flow before the change in operating assets and liabilities

150.9

64.8

141.2

207.7

179.2

 

 

 

 

 

 

Adjusted Results (unaudited)

 

 

 

 

 

Adjusted net income

135.9

135.9

149.1

166.8

171.0

Adjusted diluted earnings per share

0.74

0.73

0.78

0.85

0.86

Adjusted EBITDA

242.7

237.5

251.0

272.9

277.2

Adjusted EBITDA margin

42.4%

43.0%

44.5%

46.5%

47.7%

Free cash flow

157.9

151.5

176.4

201.6

187.1

 

 

 

 

 

 

Average shares outstanding

183,666,579

185,601,752

191,151,896

196,111,771

196,816,227

Ending shares outstanding

184,517,832

183,526,499

189,037,762

192,987,082

197,422,270

 

 

 

 

 

 

Total debt

4,216

3,949

3,688

3,530

3,776

Net debt

4,059

3,730

3,538

3,352

3,453

Net debt to adjusted EBITDA

4.2

4.0

3.5

3.0

3.1

1. 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

The fourth quarter net loss of ($9.5) million in the quarter compared to a net income of $14.9 million in the third quarter. The fourth quarter net loss resulted from a combination of a non-cash charge due to the change in estimated contingent consideration and cumulative purchase price allocation adjustments as well as a higher tax rate in the quarter due to a valuation allowance for certain deferred tax assets and non-deductible transaction related expenses. Excluding non-operating items, adjusted net income of $135.9 million in the quarter was unchanged from the third quarter of 2022.

Fourth quarter total net revenues increased 20.8% to $620.3 million in the quarter from $513.6 million in the third quarter of 2022. Excluding non-operating items, adjusted total net revenue grew 4.7% to $614.9 million, as lower revenues from the Asset Management segment due to lower average AUM were more than offset by the impact of acquisitions in the U.S. Wealth Management segment.

Fourth quarter total expenses increased 23.3% to $586.7 million in the quarter from $475.8 million in the second quarter of 2022. Excluding non-operating items, adjusted total expenses were up 6.1% to $411.7 million, reflecting the impact of acquisitions that closed during the fourth quarter.

Capital allocation

The Board of Directors declared a quarterly dividend of $0.18 per share, payable on July 14, 2023 to shareholders of record on June 30, 2023. The annual dividend rate of $0.72 per share represented a yield of 4.7% on CI’s closing share price of $15.30 on February 23, 2023.

Fourth quarter business highlights

• CI completed the acquisitions of three U.S. registered investment advisor (“RIA”) firms, adding a combined total of approximately US$18.4 billion in assets to CI Private Wealth US. The firms, which focus on meeting the complex needs of ultra-high-net-worth individuals and families through comprehensive wealth management services, are:
  • The Boston-based team and assets of Eaton Vance WaterOak Advisors (formerly Eaton Vance Investment Counsel), which now operates as CI Eaton Private Wealth.
  • Inverness Counsel, LLC, a New York City-based RIA that has been rebranded CI Inverness Private Wealth.
  • Kore Private Wealth, LLC, of New York City which now operates as CI Kore Private Wealth.
• As announced in December, CI US Holdings Inc. (“CI US”) confidentially submitted a draft registration statement on Form S-1 with the Securities and Exchange Commission (the “SEC”), relating to a proposed initial public offering of common stock of CI US. The number of shares to be offered and the price range for the proposed offering have not yet been determined. The IPO is expected to take place after the SEC completes its review process, subject to market and other conditions.
• Leonard “Lennie” Gullan joined CI Private Wealth US as Executive Vice President and Chief Operating Officer, effective October 1, 2022. In this role, Mr. Gullan oversees the U.S. business’s daily operations, trading and technology, and leads the firm’s initiatives to integrate and transform operations, platforms and technologies across the CIPW businesses. He also assists in developing the firm’s strategic direction and identifying and evaluating acquisition opportunities. Prior to CIPW, Mr. Gullan was a Managing Director at Citadel, where he held a variety of senior leadership positions.
• CI was named one of Greater Toronto’s Top Employers for 2023 in recognition of its exceptional human resources practices and programs. In particular, the awards program noted CI’s increased support for employees in response to the pandemic and its commitment to employee career development.
• CI Global Asset Management (“CI GAM”) was recognized with 14 Refinitiv Canada Lipper Fund Awards for 2022. The awards recognize mutual funds and exchange-traded funds that have provided consistently strong risk-adjusted performance, relative to peers.
• CI GAM continued to enhance its product lineup with the introduction of three global fixed-income solutions: CI Global Investment Grade ETF, CI Global Investment Grade Fund and CI Global Bond Currency Neutral Fund.

Following quarter-end:

• CI’s common shares ceased trading on the New York Stock Exchange as of January 19, 2023, following CI’s decision to voluntarily delist its shares from the exchange, which was first announced in November 2022.
• CI GAM started the year with a strong pace of product development, launching three ETFs and five other funds:
  • A private markets fund-of-funds solution providing diversified exposure to a variety of asset classes and best-in-class alternative asset managers, through a simple one-ticket solution. This solution builds on CI GAM’s leadership in alternative investments in the Canadian market.
  • Two ETFs that seek to manage downside volatility for equity investors – CI Global Minimum Downside Volatility Index ETF and CI U.S. Minimum Downside Volatility Index ETF.
  • A suite of covered call funds that include a new ETF – CI Utilities Giants Covered Call ETF – and four mutual funds based on CI GAM’s existing lineup of covered call ETFs.
• CI GAM was the recipient of 39 FundGrade A+® Awards for 2022, more than any other fund company. The winning CI GAM funds include 16 mutual funds and exchange-traded funds and 23 segregated funds managed by CI GAM. The awards are presented annually by Fundata Canada Inc. to acknowledge Canadian investment funds that have demonstrated consistent, outstanding risk-adjusted performance.

Analysts’ conference call

CI will hold a conference call with analysts today at 10:00 a.m. EST, 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: 442598):

• Canada toll-free: 1-833-950-0062
• United States toll-free: 1-844-200-6205
• United States (New York local): 1-646-904-5544
• All other locations: 1-929-526-1599.

A recording of the webcast will be archived on CI’s Investor Relations site.

About CI 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 the operations of CI Global Asset Management and Australia-based GSFM Pty Ltd.
• Canadian Wealth Management, which includes the operations of CI Assante Wealth Management, Aligned Capital Partners, CI Private Wealth (Canada), Northwood Family Office, CI Direct Investing and CI Investment Services.
• U.S. Wealth Management, which includes CI Private Wealth US, a national network of best-in-class wealth management teams.

CI is headquartered in 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.

The Refinitiv Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The Refinitiv Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the Refinitiv Lipper Fund Award. For more information, see lipperfundawards.com. Although Refinitiv Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Refinitiv Lipper.

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 Quarter Ended Year Ended Quarters Ended 31-Dec-22 30-Sep-22 30-Jun-22 31-Mar-22 31-Dec-21 31-Dec-22 31-Dec-21 Revenues Asset management fees

378.2

 

386.7

 

404.3

 

437.6

 

464.9

 

1,606.8

 

1,792.1

 

Trailer fees and deferred sales commissions

(116.0

)

(119.2

)

(124.0

)

(135.3

)

(143.6

)

(494.5

)

(557.4

)

Net asset management fees

262.2

 

267.5

 

280.3

 

302.3

 

321.3

 

1,112.3

 

1,234.7

 

Canada wealth management fees

133.1

 

129.2

 

130.1

 

138.2

 

134.9

 

530.7

 

506.8

 

U.S. wealth management fees

190.1

 

164.1

 

168.9

 

164.5

 

120.9

 

687.6

 

345.0

 

Other revenues

26.2

 

26.6

 

21.2

 

21.6

 

27.3

 

95.7

 

83.1

 

FX (gains)/losses

15.2

 

(73.9

)

(32.9

)

11.5

 

3.1

 

(80.1

)

(18.8

)

Other gains/(losses)

(6.5

)

0.1

 

(1.1

)

(4.4

)

11.9

 

(11.9

)

18.7

 

Total net revenues

620.3

 

513.6

 

566.7

 

633.8

 

619.3

 

2,334.3

 

2,169.6

 

Expenses Selling, general & administrative

277.2

 

245.6

 

238.0

 

259.3

 

214.6

 

1,020.0

 

742.3

 

Advisor and dealer fees

101.1

 

98.3

 

99.7

 

106.9

 

104.8

 

406.0

 

396.7

 

Other

9.2

 

17.1

 

4.7

 

3.6

 

5.7

 

34.6

 

52.0

 

Interest and lease finance expense

41.4

 

38.6

 

36.2

 

35.9

 

32.5

 

152.1

 

109.7

 

Depreciation and other amortization

13.1

 

13.0

 

11.9

 

11.4

 

10.9

 

49.4

 

41.0

 

Amortization of intangible assets from acquisitions

26.5

 

27.7

 

27.4

 

24.1

 

18.2

 

105.7

 

55.8

 

Transaction, integration, restructuring and legal

41.3

 

13.1

 

4.6

 

3.8

 

13.6

 

62.7

 

35.9

 

Change in fair value of contingent consideration

76.8

 

22.5

 

(75.0

)

3.1

 

43.9

 

27.4

 

149.9

 

Total expenses

586.7

 

475.8

 

347.7

 

448.0

 

444.2

 

1858.1

 

1583.4

 

Pretax income

33.6

 

37.8

 

219.0

 

185.8

 

175.1

 

476.2

 

586.2

 

Income tax expense

41.9

 

23.5

 

60.7

 

48.3

 

51.3

 

174.4

 

173.8

 

Net income

(8.3

)

14.4

 

158.3

 

137.5

 

123.7

 

301.8

 

412.4

 

Non-controlling interest

1.2

 

(0.5

)

2.1

 

(0.6

)

0.0

 

2.1

 

3.0

 

Net income attributable to shareholders

(9.5

)

14.9

 

156.2

 

138.1

 

123.7

 

299.8

 

409.3

 

Basic earnings per share

(0.05

)

0.08

 

0.82

 

0.70

 

0.63

 

1.59

 

2.03

 

Diluted earnings per share

(0.05

)

0.08

 

0.81

 

0.70

 

0.62

 

1.58

 

2.02

 

  Non-IFRS adjustments Net income

(8.3

)

14.4

 

158.3

 

137.5

 

123.7

 

301.8

 

412.4

 

Amortization of intangible assets from acquisitions

26.5

 

27.7

 

27.4

 

24.1

 

18.7

 

105.7

 

57.4

 

Amortization of equity accounted Investments

2.6

 

-

 

-

 

-

 

-

 

2.6

 

-

 

Change in fair value of contingent consideration

76.8

 

22.5

 

(75.0

)

3.1

 

43.9

 

27.4

 

149.9

 

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

1.5

 

3.8

 

0.7

 

18.2

 

2.1

 

24.2

 

7.2

 

NCI Reclassification (included in Other)

1.2

 

1.0

 

0.9

 

0.9

 

-

 

4.0

 

-

 

CIPW adjustments (included in SG&A)

27.7

 

11.5

 

3.1

 

13.2

 

-

 

55.5

 

-

 

FX (gains)/losses

(15.2

)

73.9

 

32.9

 

(11.5

)

(3.1

)

80.1

 

18.8

 

Transaction, integration, restructuring and legal

41.3

 

13.1

 

4.6

 

3.8

 

13.6

 

62.7

 

35.9

 

Other gains/(losses)

7.1

 

-

 

(1.2

)

-

 

(16.8

)

5.9

 

(11.1

)

Bad Debt and trading (included in Other)

-

 

8.0

 

-

 

-

 

-

 

8.0

 

24.9

 

Total adjustments

169.6

 

161.5

 

(6.7

)

51.7

 

58.4

 

376.1

 

283.1

 

Tax effect of adjustments

(9.9

)

(27.8

)

5.6

 

(11.5

)

(11.1

)

(43.6

)

(57.5

)

Non-controlling interest

15.5

 

12.1

 

8.1

 

10.9

 

(0.0

)

46.7

 

3.1

 

Adjusted net income

135.9

 

135.9

 

149.1

 

166.8

 

171.0

 

587.7

 

634.8

 

Adjusted earnings per share

0.74

 

0.73

 

0.78

 

0.85

 

0.87

 

3.11

 

3.15

 

Adjusted diluted earnings per share

0.74

 

0.73

 

0.78

 

0.85

 

0.86

 

3.10

 

3.14

 

Average shares outstanding

183.7

 

185.6

 

191.2

 

196.1

 

196.8

 

189.1

 

201.6

 

Average diluted shares outstanding

184.6

 

186.4

 

191.8

 

197.0

 

198.4

 

189.8

 

202.5

 

 

CONSOLIDATED BALANCE SHEET

As at December 31, 2022

As at December 31, 2021

[in thousands of Canadian dollars]

$

$

 

(unaudited)

 

ASSETS

 

 

Current

 

 

Cash and cash equivalents

153,620

 

230,779

 

Client and trust funds on deposit

1,306,595

 

1,199,904

 

Investments

40,448

 

131,772

 

Accounts receivable and prepaid expenses

286,298

 

272,962

 

Income taxes receivable

33,989

 

3,607

 

Total current assets

1,820,950

 

1,839,024

 

Capital assets, net

55,587

 

52,596

 

Right-of-use assets

139,422

 

142,606

 

Intangibles

7,227,700

 

6,185,237

 

Deferred income taxes

54,415

 

56,901

 

Other assets

397,804

 

383,187

 

Total assets

9,695,878

 

8,659,551

 

LIABILITIES AND EQUITY

 

 

Current

 

 

Accounts payable and accrued liabilities

293,246

 

369,081

 

Current portion of provisions and other financial liabilities

502,746

 

197,994

 

CIPW unit liabilities

765,959

 

374,438

 

Dividends payable

66,426

 

71,072

 

Client and trust funds payable

1,312,640

 

1,202,079

 

Income taxes payable

3,044

 

19,035

 

Current portion of long-term debt

320,000

 

444,486

 

Current portion of lease liabilities

23,994

 

20,216

 

Total current liabilities

3,288,055

 

2,698,401

 

Long-term debt

3,896,214

 

3,331,552

 

Provisions and other financial liabilities

270,567

 

379,641

 

Deferred income taxes

480,500

 

480,777

 

Lease liabilities

149,360

 

153,540

 

Total liabilities

8,084,696

 

7,043,911

 

Equity

 

 

Share capital

1,706,880

 

1,810,153

 

Contributed surplus

30,239

 

28,368

 

Deficit

(173,052

)

(226,715

)

Accumulated other comprehensive income (loss)

33,224

 

(23,289

)

Total equity attributable to the shareholders of the Company

1,597,291

 

1,588,517

 

Non-controlling interests

13,891

 

27,123

 

Total equity

1,611,182

 

1,615,640

 

Total liabilities and equity

9,695,878

 

8,659,551

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

 

[in thousands of Canadian dollars]

2022 $

2021 $

 

(unaudited)

 

OPERATING ACTIVITIES (*)

 

 

Net income for the period

301,829

 

412,374

 

Add (deduct) items not involving cash

 

 

Other losses (gains)

11,904

 

(20,584

)

Change in fair value of contingent consideration

27,427

 

149,904

 

Contingent consideration recorded as compensation

24,156

 

7,198

 

Change in fair value of loan guarantees

10,819

 

—

 

Recognition of vesting of CIPW unit liabilities

13,499

 

—

 

Equity-based compensation

24,577

 

22,005

 

Amortization and depreciation

49,368

 

40,973

 

Amortization of intangible assets from acquisitions

105,744

 

55,848

 

Deferred income taxes

(4,777

)

(42,419

)

Loss on repurchases of long-term debt

—

 

24,920

 

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

564,546

 

650,219

 

Net change in operating assets and liabilities

(85,630

)

15,741

 

Cash provided by operating activities

478,916

 

665,960

 

INVESTING ACTIVITIES

 

 

Purchase of investments

(3,283

)

(5,101

)

Proceeds on sale of investments

96,508

 

15,412

 

Additions to capital assets

(17,480

)

(7,798

)

Decrease (increase) in other assets

97,751

 

(167,378

)

Additions to intangibles

(11,361

)

(12,420

)

Cash paid to settle acquisition liabilities

(198,207

)

(290,002

)

Acquisitions, net of cash acquired

(472,461

)

(934,589

)

Cash used in investing activities

(508,533

)

(1,401,876

)

FINANCING ACTIVITIES

 

 

Repayment of long-term debt

(455,509

)

(640,419

)

Issuance of long-term debt

718,000

 

1,704,795

 

Repurchase of long-term debt

—

 

(50,732

)

Repurchase of share capital

(229,708

)

(364,319

)

Payment of lease liabilities

(22,965

)

(16,667

)

Issuance of CIPW unit liabilities

85,679

 

—

 

Net distributions to non-controlling interest

(5,664

)

(3,114

)

Dividends paid to shareholders

(137,375

)

(146,447

)

Cash provided by (used in) financing activities

(47,542

)

483,097

 

Net decrease in cash and cash equivalents during the year

(77,159

)

(252,819

)

Cash and cash equivalents, beginning of year

230,779

 

483,598

 

Cash and cash equivalents, end of year

153,620

 

230,779

 

(*) Included in operating activities are the following:

 

 

Interest paid

139,384

 

115,563

 

Income taxes paid

224,369

 

193,900

 

 

ASSETS UNDER MANAGEMENT AND NET FLOWS

[billions of dollars]

Quarters ended

Dec. 31, 2022

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Beginning AUM

114.2

 

116.1

 

136.3

 

144.2

 

139.4

 

Gross inflows

7.3

 

4.9

 

4.8

 

4.9

 

5.2

 

Gross outflows

(6.0

)

(4.8

)

(8.7

)

(6.6

)

(5.5

)

Net inflows/(outflows)

1.3

 

0.1

 

(3.9

)

(1.6

)

(0.3

)

Acquisitions

—

 

—

 

—

 

—

 

—

 

Market move and FX

2.3

 

(2.0

)

(16.3

)

(6.3

)

5.2

 

Ending AUM

117.8

 

114.2

 

116.1

 

136.3

 

144.2

 

Proprietary AUM

31.9

 

30.4

 

30.8

 

34.5

 

36.2

 

Non-proprietary AUM

85.9

 

83.7

 

85.2

 

101.7

 

108.1

 

Average assets under management

117.7

 

119.1

 

125.4

 

138.2

 

143.0

 

Annualized organic growth

4.4

%

0.4

%

(11.4

)%

(4.6

)%

(0.9

)%

 

 

 

 

 

 

Gross management fee/average AUM

1.29

%

1.30

%

1.31

%

1.30

%

1.30

%

Net management fee/average AUM

0.87

%

0.88

%

0.89

%

0.88

%

0.88

%

 

 

 

 

 

 

Net Inflows

 

 

 

 

 

Retail

1.6

 

0.6

 

(0.4

)

(0.9

)

0.1

 

Institutional

(0.2

)

—

 

(3.2

)

(0.3

)

(0.3

)

Closed business

(0.2

)

(0.1

)

(0.2

)

(0.2

)

(0.2

)

Total Canada net inflows

1.3

 

0.5

 

(3.7

)

(1.3

)

(0.4

)

Australia

—

 

(0.4

)

(0.1

)

(0.3

)

0.1

 

Total net inflows/(outflows)

1.3

 

0.1

 

(3.9

)

(1.6

)

(0.3

)

 

RETAIL (ex Closed Business)

[billions of dollars]

Quarters ended

Dec. 31, 2022

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Beginning AUM

94.0

95.1

108.4

114.6

110.4

Net Flows

1.6

0.6

(0.4)

(0.9)

0.1

Market Move / FX

1.5

(1.7)

(12.9)

(5.3)

4.1

Acquisitions

___

___

___

___

___

Ending AUM

97.1

94.0

95.1

108.4

114.6

Average AUM

97.0

97.9

101.4

109.6

113.8

 

INSTITUTIONAL

[billions of dollars]

Quarters ended

Dec. 31, 2022

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Beginning AUM

8.3

8.4

12.7

13.3

13.0

Net Flows

(0.2)

0.0

(3.2)

(0.3)

0.3

Market Move / FX

0.2

(0.1)

(1.1)

(0.3)

0.6

Acquisitions

___

___

___

___

___

Ending AUM

8.3

8.3

8.4

12.7

13.3

Average AUM

8.4

8.6

10.2

12.9

13.2

 

AUSTRALIA

[billions of dollars]

Quarters ended

Dec. 31, 2022

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Beginning AUM

4.7

5.1

6.6

7.3

7.0

Net Flows

0.0

(0.4)

(0.1)

(0.3)

0.1

Market Move / FX

0.3

0.0

(1.4)

(0.4)

0.2

Acquisitions

___

___

___

___

___

Ending AUM

5.0

4.7

5.1

6.6

7.3

Average AUM

4.8

4.9

5.8

7.0

7.1

 

CLOSED BUSINESS

[billions of dollars]

Quarters ended

Dec. 31, 2022

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Beginning AUM

7.3

7.5

8.6

9.1

9.0

Net Flows

(0.2)

(0.1)

(0.2)

(0.2)

(0.2)

Market Move / FX

0.2

(0.1)

(0.9)

(0.3)

0.3

Acquisitions

___

___

___

___

___

Ending AUM

7.3

7.3

7.5

8.6

9.1

Average AUM

7.4

7.6

8.0

8.7

9.0

 

AUM BY ASSET CLASS

[billions of dollars]

Quarters ended

Dec. 31, 2022

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Balanced

50.3

49.8

50.9

59.4

62.1

Equity

41.6

40.2

41.4

49.3

52.3

Fixed income

11.0

11.2

11.7

13.1

14.2

Alternatives

3.6

3.8

3.6

4.9

5.7

Cash/Other

6.2

4.5

3.4

3

2.7

Total Canada asset management

112.8

109.5

111

129.7

137

Australia

5.0

4.7

5.1

6.6

7.3

Total asset management segment

117.8

114.2

116.1

136.3

144.2

 

CANADA WEALTH MANAGEMENT CLIENT ASSETS

[billions of dollars]

Quarters ended

Dec. 31, 2022

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Beginning client assets

74.0

74.1

79.0

80.6

76.9

Acquisitions

—

—

2.4

—

—

Net flows and market move

3.4

(0.2)

(7.2)

(1.7)

3.8

Ending client assets

77.4

74.0

74.1

79.0

80.6

Average client assets

77.3

76.0

77.7

79.0

78.9

Wealth management fees/average client assets

0.91%

0.90%

0.91%

0.95%

0.93%

 

U.S. WEALTH MANAGEMENT CLIENT ASSETS

[billions of dollars]

Quarters ended

Dec. 31, 2022

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Beginning billable client assets

144.9

138.8

141.2

146.4

96.1

Acquisitions

24.9

—

7.1

1.1

49.3

Net flows and market move

4.4

6.2

(9.5)

(6.3)

1.0

Ending billable client assets

174.3

144.9

138.8

141.2

146.4

Non-billable client assets

6.3

4.9

4.8

4.6

4.9

Total client assets

180.6

149.8

143.5

145.8

151.3

Fees/beginning billable client assets

0.52%

0.47%

0.48%

0.46%

0.50%

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 November 10, 2022 available on SEDAR at www.sedar.com or at www.cifinancial.com.

EBITDA, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN (unaudited)   Quarters ended 31-Dec-22 30-Sep-22 30-Jun-22 31-Mar-22 31-Dec-21 Pretax income

33.6

37.8

219.0

185.8

175.1

Amortization of intangible assets from acquisitions

26.5

27.7

27.4

24.1

18.9

Depreciation and other amortization

13.1

13.0

11.9

11.4

10.9

Interest and lease finance expense

41.4

38.6

36.2

35.9

32.5

EBITDA

117.2

117.1

294.6

257.1

237.3

Change in fair value of contingent consideration

76.8

22.5

(75.0)

3.1

43.9

Contingent consideration recorded as compensation

1.5

3.8

0.7

18.2

2.1

Non-controlling interest reclassification

1.2

1.0

0.9

0.9

0.0

CIPW adjustments

27.7

11.5

3.1

13.2

0.0

FX (gains)/losses

(15.2)

73.9

32.9

(11.5)

(3.1)

Transaction, integration, restructuring and legal

41.3

13.1

4.6

3.8

13.6

Other(gains)/losses

7.1

-

(1.2)

-

(16.8)

Bond redemption costs

0.0

8.0

-

-

-

Total adjustments

140.5

133.8

(34.1)

27.7

39.6

Non-controlling interest

15.0

13.4

9.5

11.9

(0.2)

Adjusted EBITDA

242.7

237.5

251.0

272.9

277.2

  Reported net revenue

620.3

513.6

566.7

633.8

619.3

Less: FX gains/(losses)

15.2

(73.9)

(32.9)

11.5

3.1

Less: Non-operating Other gains/(losses)

(7.1)

-

1.2

-

16.8

Less: NCI revenues

40.6

35.1

34.8

35.5

17.9

Adjusted net revenue

571.7

552.4

563.5

586.8

581.5

Adjusted EBITDA margin

42.4%

43.0%

44.5%

46.5%

47.7%

  FREE CASH FLOW (unaudited)   Quarters ended 31-Dec-22 30-Sep-22 30-Jun-22 31-Mar-22 31-Dec-21 Cash provided by operating activities

56.7

103.3

164.1

154.8

163.7

Net change in operating assets and liabilities

94.1

(38.4)

(22.9)

52.9

15.5

Operating cash flow before the change in operating assets and liabilities

150.9

64.8

141.2

207.7

179.2

FX (gains)/losses

-15.2

73.9

32.9

(11.5)

(3.1)

Transaction, integration, restructuring and legal

41.3

13.1

4.6

3.8

13.6

Other(gains)/losses

0.0

0.0

0.0

0.0

0.0

Total adjustments

26.1

95.0

37.5

-7.7

10.5

Tax effect (recovery) of adjustments

(18.8)

(14.1)

(5.7)

1.2

(2.6)

Less: Non-controlling interest

0.3

(5.8)

(3.4)

(0.4)

(0.0)

Free cash flow

157.9

151.5

176.4

201.6

187.1

 

NET DEBT

 

Quarters ended

[millions of dollars]

Dec. 31, 2022

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

 

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Current portion of long-term debt

320.0

400.5

314.6

225.3

444.5

Long-term debt

3,896.2

3,548.2

3,373.5

3,304.7

3,331.6

 

4,216.2

3,948.7

3,688.1

3,530.0

3,776.0

Less:

 

 

 

 

 

Cash and short-term investments

153.6

220.4

154.8

186.1

230.8

Marketable securities

20.6

17.8

18.1

20.3

116.9

Add:

 

 

 

 

 

Regulatory capital and non-controlling interests

16.8

19.9

22.4

28.8

25.0

Net Debt

4,058.8

3,730.3

3,537.5

3,352.4

3,453.4

 

 

 

 

 

 

Adjusted EBITDA

242.7

237.5

251.0

272.9

277.2

Adjusted EBITDA, annualized

962.8

942.1

1,006.9

1,106.6

1,099.8

Gross leverage (Gross debt/Annualized adjusted EBITDA)

4.4

4.2

3.7

3.2

3.4

Net leverage (Net debt/Annualized adjusted EBITDA)

4.2

4.0

3.5

3.0

3.1

 

SUMMARY OF QUARTERLY RESULTS

[millions of dollars, except per share amounts]

IFRS Results (unaudited)

 

Adjusted Results (unaudited)

For the quarters ended

 

For the quarters ended

Dec. 31, 2022

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

 

Dec. 31, 2022

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Revenues

 

 

 

 

 

 

 

 

 

 

 

Asset management fees

378.2

 

386.7

 

404.3

 

437.6

 

464.9

 

 

378.2

 

386.7

 

404.3

 

437.6

 

464.9

 

Trailer fees and deferred sales commissions

(116.0

)

(119.2

)

(124.0

)

(135.3

)

(143.6

)

 

(116.0

)

(119.2

)

(124.0

)

(135.3

)

(143.6

)

Net asset management fees

262.2

 

267.5

 

280.3

 

302.3

 

321.3

 

 

262.2

 

267.5

 

280.3

 

302.3

 

321.3

 

Canada wealth management fees

133.1

 

129.2

 

130.1

 

138.2

 

134.9

 

 

133.1

 

129.2

 

130.1

 

138.2

 

134.9

 

U.S. wealth management fees

190.1

 

164.1

 

168.9

 

164.5

 

120.9

 

 

190.1

 

164.1

 

168.9

 

164.5

 

120.9

 

Other revenues

26.2

 

26.6

 

21.2

 

21.6

 

27.3

 

 

28.8

 

26.6

 

21.2

 

21.6

 

27.3

 

FX gains/(losses)

15.2

 

(73.9

)

(32.9

)

11.5

 

3.1

 

 

—

 

—

 

—

 

—

 

—

 

Other gains/(losses)

(6.5

)

0.1

 

(1.1

)

(4.4

)

11.9

 

 

0.6

 

0.1

 

(2.3

)

(4.4

)

(4.9

)

Total net revenues

620.3

 

513.6

 

566.7

 

633.8

 

619.3

 

 

614.9

 

587.5

 

598.3

 

622.3

 

599.4

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

272.7

 

245.6

 

238.0

 

259.3

 

214.6

 

 

248.0

 

230.3

 

234.2

 

227.9

 

212.5

 

Advisor and dealer fees

101.1

 

98.3

 

99.7

 

106.9

 

104.8

 

 

101.1

 

98.3

 

99.7

 

106.9

 

104.8

 

Other

9.2

 

17.1

 

4.7

 

3.6

 

5.7

 

 

8.1

 

8.1

 

3.8

 

2.7

 

5.7

 

Interest and lease finance expense

41.4

 

38.6

 

36.2

 

35.9

 

32.5

 

 

41.4

 

38.6

 

36.2

 

35.9

 

32.5

 

Depreciation and other amortization

13.1

 

13.0

 

11.9

 

11.4

 

10.9

 

 

13.1

 

13.0

 

11.9

 

11.4

 

10.4

 

Amortization of intangible assets from acquisitions

26.5

 

27.7

 

27.4

 

24.1

 

18.2

 

 

—

 

—

 

—

 

—

 

—

 

Transaction, integration, restructuring and legal

41.3

 

13.1

 

4.6

 

3.8

 

13.6

 

 

—

 

—

 

—

 

—

 

—

 

Change in fair value of contingent consideration

76.8

 

22.5

 

(75.0

)

3.1

 

43.9

 

 

—

 

—

 

—

 

—

 

—

 

Total expenses

586.7

 

475.8

 

347.7

 

448.0

 

444.2

 

 

411.7

 

388.2

 

386.0

 

384.8

 

365.9

 

Pretax income

33.6

 

37.8

 

219.0

 

185.8

 

175.1

 

 

203.2

 

199.3

 

212.3

 

237.5

 

233.4

 

Income tax expense

41.9

 

23.5

 

60.7

 

48.3

 

51.3

 

 

51.8

 

51.3

 

55.1

 

59.7

 

62.5

 

Net income

(8.3

)

14.4

 

158.3

 

137.5

 

123.7

 

 

151.4

 

148.1

 

157.2

 

177.8

 

171.0

 

Less: Non-controlling interest

1.2

 

(0.5

)

2.1

 

(0.6

)

—

 

 

15.5

 

12.1

 

8.1

 

10.9

 

—

 

Net income attributable to shareholders

(9.5

)

14.9

 

156.2

 

138.1

 

123.7

 

 

135.9

 

135.9

 

149.1

 

166.8

 

171.0

 

Basic earnings per share

(0.05

)

0.08

 

0.82

 

0.70

 

0.63

 

 

0.74

 

0.73

 

0.78

 

0.85

 

0.87

 

Diluted earnings per share

(0.05

)

0.08

 

0.81

 

0.70

 

0.62

 

 

0.74

 

0.73

 

0.78

 

0.85

 

0.86

 

 

RESULTS OF OPERATIONS - ASSET MANAGEMENT SEGMENT

[millions of dollars, except per share amounts]

IFRS Results (unaudited)

 

Adjusted Results (unaudited)

For the quarters ended

 

For the quarters ended

Dec. 31, 2022

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

 

Dec. 31, 2022

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Revenues

 

 

 

 

 

 

 

 

 

 

 

Asset management fees

382.3

 

390.9

 

408.9

 

442.5

 

469.6

 

 

382.3

 

390.9

 

408.9

 

442.5

 

469.6

 

Trailer fees and deferred sales commissions

(123.8

)

(126.8

)

(131.9

)

(143.9

)

(152.6

)

 

(123.8

)

(126.8

)

(131.9

)

(143.9

)

(152.6

)

Net asset management fees

258.5

 

264.1

 

277.0

 

298.6

 

316.9

 

 

258.5

 

264.1

 

277.0

 

298.6

 

316.9

 

Other revenues

3.6

 

6.6

 

5.6

 

10.2

 

19.9

 

 

3.6

 

6.6

 

5.6

 

10.2

 

19.9

 

FX gains/(losses)

15.5

 

(74.4

)

(32.8

)

11.4

 

(1.4

)

 

—

 

—

 

—

 

—

 

—

 

Other gains/(losses)

(6.5

)

0.1

 

(1.1

)

(4.4

)

12.0

 

 

0.6

 

0.1

 

(2.3

)

(4.4

)

(4.8

)

Total net revenues

271.2

 

196.4

 

248.7

 

315.8

 

347.5

 

 

262.8

 

270.7

 

280.2

 

304.4

 

332.1

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

94.3

 

98.7

 

97.3

 

96.8

 

108.7

 

 

94.3

 

98.7

 

97.3

 

96.8

 

108.7

 

Other

—

 

7.2

 

—

 

—

 

(0.5

)

 

—

 

—

 

—

 

—

 

(0.5

)

Interest and lease finance expense

0.9

 

1.0

 

1.0

 

1.0

 

0.5

 

 

0.9

 

1.0

 

1.0

 

1.0

 

0.5

 

Depreciation and other amortization

4.7

 

5.0

 

5.0

 

5.0

 

5.4

 

 

4.7

 

5.0

 

5.0

 

5.0

 

5.4

 

Amortization of intangible assets from acquisitions

0.6

 

0.6

 

0.6

 

0.6

 

0.6

 

 

—

 

—

 

—

 

—

 

—

 

Transaction, integration, restructuring and legal

11.0

 

2.6

 

2.3

 

(0.9

)

10.4

 

 

—

 

—

 

—

 

—

 

—

 

Change in fair value of contingent consideration

1.6

 

3.2

 

(3.9

)

4.0

 

14.2

 

 

—

 

—

 

—

 

—

 

—

 

Total expenses

113.2

 

118.2

 

102.3

 

106.5

 

139.3

 

 

99.9

 

104.6

 

103.3

 

102.8

 

114.1

 

Pretax income

158.0

 

78.2

 

146.4

 

209.3

 

208.1

 

 

162.8

 

166.1

 

176.9

 

201.6

 

218.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-IFRS adjustments

 

 

 

 

 

 

 

 

 

 

 

Pretax income

158.0

 

78.2

 

146.4

 

209.3

 

208.1

 

 

162.8

 

166.1

 

176.9

 

201.6

 

218.0

 

Amortization of intangible assets from acquisitions

0.6

 

0.6

 

0.6

 

0.6

 

0.6

 

 

—

 

—

 

—

 

—

 

—

 

Depreciation and other amortization

4.7

 

5.0

 

5.0

 

5.0

 

5.4

 

 

4.7

 

5.0

 

5.0

 

5.0

 

5.4

 

Interest and lease finance expense

0.9

 

1.0

 

1.0

 

1.0

 

0.5

 

 

0.9

 

1.0

 

1.0

 

1.0

 

0.5

 

EBITDA

164.2

 

84.7

 

153.0

 

215.9

 

214.7

 

 

168.4

 

172.1

 

183.0

 

207.6

 

223.9

 

Change in fair value of contingent consideration

1.6

 

3.2

 

(3.9

)

4.0

 

14.2

 

 

—

 

—

 

—

 

—

 

—

 

FX (gains)/losses

(15.5

)

74.4

 

32.8

 

(11.4

)

1.4

 

 

—

 

—

 

—

 

—

 

—

 

Transaction, integration, restructuring and legal

11.0

 

2.6

 

2.3

 

(0.9

)

10.4

 

 

—

 

—

 

—

 

—

 

—

 

Other (gains)/losses

7.1

 

—

 

(1.2

)

—

 

(16.8

)

 

—

 

—

 

—

 

—

 

—

 

Trading and bad debt

—

 

7.1

 

—

 

—

 

—

 

 

—

 

—

 

—

 

—

 

—

 

Total adjustments

4.2

 

87.3

 

30.0

 

(8.3

)

9.2

 

 

—

 

—

 

—

 

—

 

—

 

Less: Non-controlling interest

0.1

 

0.1

 

0.3

 

0.4

 

0.1

 

 

0.1

 

0.1

 

0.3

 

0.4

 

0.1

 

Adjusted EBITDA

168.3

 

172.0

 

182.7

 

207.2

 

223.8

 

 

168.3

 

172.0

 

182.7

 

207.2

 

223.8

 

RESULTS OF OPERATIONS - CANADA WEALTH MANAGEMENT SEGMENT

[millions of dollars, except per share amounts]

IFRS Results (unaudited)

 

Adjusted Results (unaudited)

For the quarters ended

 

For the quarters ended

Dec. 31, 2022

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

 

Dec. 31, 2022

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Revenues

 

 

 

 

 

 

 

 

 

 

 

Canada wealth management fees

176.8

 

171.7

 

175.6

 

185.7

 

184.3

 

 

176.8

 

171.7

175.6

 

185.7

184.3

 

Other revenues

29.1

 

25.5

 

21.3

 

17.1

 

16.0

 

 

29.2

 

25.5

21.3

 

17.1

16.0

 

FX gains/(losses)

(0.4

)

0.5

 

—

 

0.1

 

0.8

 

 

—

 

—

—

 

—

—

 

Other gains/(losses)

—

 

—

 

—

 

—

 

(0.1

)

 

—

 

—

—

 

—

(0.1

)

Total net revenues

205.5

 

197.7

 

196.9

 

202.9

 

201.1

 

 

206.0

 

197.2

196.9

 

202.8

200.3

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

46.2

 

43.8

 

44.0

 

41.1

 

39.9

 

 

45.9

 

43.6

43.9

 

41.1

39.9

 

Advisor and dealer fees

136.2

 

132.4

 

135.9

 

145.6

 

145.2

 

 

136.2

 

132.4

135.9

 

145.6

145.2

 

Other

9.3

 

8.2

 

4.0

 

3.2

 

3.2

 

 

8.1

 

6.3

3.2

 

2.4

3.2

 

Interest and lease finance expense

—

 

—

 

(0.1

)

0.2

 

0.2

 

 

—

 

—

(0.1

)

0.2

0.2

 

Depreciation and other amortization

3.2

 

3.2

 

2.8

 

2.5

 

2.3

 

 

3.2

 

3.2

2.8

 

2.5

2.3

 

Amortization of intangible assets from acquisitions

2.1

 

2.1

 

2.1

 

1.6

 

1.5

 

 

—

 

—

—

 

—

—

 

Transaction, integration, restructuring and legal

0.2

 

0.3

 

0.4

 

0.8

 

0.1

 

 

—

 

—

—

 

—

—

 

Change in fair value of contingent consideration

1.9

 

(0.7

)

(0.6

)

—

 

—

 

 

—

 

—

—

 

—

—

 

Total expenses

199.1

 

189.3

 

188.5

 

195.0

 

192.6

 

 

193.4

 

185.6

185.6

 

191.7

191.0

 

Pretax income

6.4

 

8.4

 

8.4

 

7.9

 

8.5

 

 

12.6

 

11.6

11.4

 

11.1

9.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-IFRS adjustments

 

 

 

 

 

 

 

 

 

 

 

Pretax income

6.4

 

8.4

 

8.4

 

7.9

 

8.5

 

 

12.6

 

11.6

11.4

 

11.1

9.3

 

Amortization of intangible assets from acquisitions

2.1

 

2.1

 

2.1

 

1.6

 

1.6

 

 

—

 

—

—

 

 

0.1

 

Amortization of equity accounted investments

0.1

 

—

 

—

 

—

 

—

 

 

—

 

—

—

 

—

—

 

Depreciation and other amortization

3.2

 

3.2

 

2.8

 

2.5

 

2.3

 

 

3.2

 

3.2

2.8

 

2.5

2.3

 

Interest and lease finance expense

—

 

—

 

(0.1

)

0.2

 

0.2

 

 

—

 

—

(0.1

)

0.2

0.2

 

EBITDA

11.8

 

13.7

 

13.1

 

12.1

 

12.6

 

 

15.8

 

14.9

14.0

 

13.8

11.9

 

Change in fair value of contingent consideration

1.9

 

(0.7

)

(0.6

)

—

 

—

 

 

—

 

—

—

 

—

—

 

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

0.2

 

0.1

 

0.1

 

—

 

—

 

 

—

 

—

—

 

—

—

 

CIPW adjustments (included in SG&A)

0.1

 

0.1

 

0.1

 

—

 

—

 

 

—

 

—

—

 

—

—

 

FX (gains)/losses

0.4

 

(0.5

)

—

 

(0.1

)

(0.8

)

 

—

 

—

—

 

—

—

 

Transaction, integration, restructuring and legal

0.2

 

0.3

 

0.4

 

0.8

 

0.1

 

 

—

 

—

—

 

—

—

 

Non-controlling interest reclassification (included in Other)

1.2

 

1.0

 

0.9

 

0.9

 

—

 

 

—

 

—

—

 

—

—

 

Trading and bad debt

—

 

0.8

 

—

 

—

 

—

 

 

—

 

—

—

 

—

—

 

Total adjustments

4.0

 

1.2

 

0.8

 

1.6

 

(0.7

)

 

—

 

—

—

 

—

—

 

Less: Non-controlling interest

1.3

 

1.2

 

1.0

 

0.9

 

(1.5

)

 

1.3

 

1.2

1.0

 

0.9

(1.5

)

Adjusted EBITDA

14.5

 

13.7

 

13.0

 

12.9

 

13.5

 

 

14.5

 

13.7

13.0

 

12.9

13.5

 

   

RESULTS OF OPERATIONS - U.S. WEALTH MANAGEMENT SEGMENT

[millions of dollars, except per share amounts]

IFRS Results (unaudited)

 

Adjusted Results (unaudited)

For the quarters ended

 

For the quarters ended

Dec. 31, 2022

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

 

Dec. 31, 2022

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Revenues

 

 

 

 

 

 

 

 

 

 

 

U.S. wealth management fees

190.1

 

164.1

 

168.9

 

164.5

 

120.9

 

 

190.1

 

164.1

168.9

 

164.5

120.9

 

Other revenues

2.9

 

4.2

 

4.5

 

4.8

 

1.3

 

 

5.5

 

4.2

4.5

 

4.8

1.3

 

FX gains/(losses)

—

 

—

 

—

 

—

 

3.7

 

 

—

 

—

—

 

—

—

 

Total net revenues

193.1

 

168.2

 

173.4

 

169.2

 

125.9

 

 

195.6

 

168.3

173.5

 

169.2

122.2

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

151.1

 

117.7

 

112.8

 

136.9

 

80.8

 

 

122.2

 

102.6

109.2

 

105.5

78.7

 

Other

(0.1

)

1.8

 

0.7

 

0.4

 

2.9

 

 

(0.1

)

1.8

0.7

 

0.4

2.9

 

Interest and lease finance expense

0.8

 

0.7

 

0.6

 

0.5

 

0.4

 

 

0.8

 

0.7

0.6

 

0.5

0.4

 

Depreciation and other amortization

5.2

 

4.8

 

4.1

 

3.9

 

3.1

 

 

5.2

 

4.8

4.1

 

3.9

3.1

 

Amortization of intangible assets from acquisitions

23.8

 

25.0

 

24.7

 

21.9

 

16.1

 

 

—

 

—

—

 

—

—

 

Transaction, integration, restructuring and legal

30.0

 

10.2

 

2.0

 

3.9

 

3.1

 

 

—

 

—

—

 

—

—

 

Change in fair value of contingent consideration

73.3

 

20.0

 

(70.5

)

(0.9

)

29.7

 

 

—

 

—

—

 

—

—

 

Total expenses

284.2

 

180.1

 

74.4

 

166.5

 

136.1

 

 

128.1

 

109.8

114.6

 

110.3

85.2

 

Pretax income

(91.1

)

(11.9

)

99.0

 

2.7

 

(10.2

)

 

67.5

 

58.4

58.9

 

59.0

37.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-IFRS adjustments

 

 

 

 

 

 

 

 

 

 

 

Pretax income

(91.1

)

(11.9

)

99.0

 

2.7

 

(10.2

)

 

67.5

 

58.4

58.9

 

59.0

37.0

 

Amortization of intangible assets from acquisitions

23.8

 

25.0

 

24.7

 

21.9

 

16.5

 

 

—

 

—

—

 

 

0.5

 

Amortization of equity accounted investments

2.5

 

—

 

—

 

—

 

—

 

 

—

 

—

—

 

—

—

 

Depreciation and other amortization

5.2

 

4.8

 

4.1

 

3.9

 

3.1

 

 

5.2

 

4.8

4.1

 

3.9

3.1

 

Interest and lease finance expense

0.8

 

0.7

 

0.6

 

0.5

 

0.4

 

 

0.8

 

0.7

0.6

 

0.5

0.4

 

EBITDA

(58.8

)

18.6

 

128.4

 

29.1

 

9.9

 

 

73.5

 

63.9

63.5

 

63.4

41.0

 

Change in fair value of contingent consideration

73.3

 

20.0

 

(70.5

)

(0.9

)

29.7

 

 

—

 

—

—

 

—

—

 

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

1.3

 

3.7

 

0.6

 

18.2

 

2.1

 

 

—

 

—

—

 

—

—

 

CIPW adjustments (included in SG&A)

27.6

 

11.4

 

3.0

 

13.2

 

—

 

 

—

 

—

—

 

—

—

 

FX (gains)/losses

—

 

—

 

—

 

—

 

(3.7

)

 

—

 

—

—

 

—

—

 

Transaction, integration, restructuring and legal

30.0

 

10.2

 

2.0

 

3.9

 

3.1

 

 

—

 

—

—

 

—

—

 

Total adjustments

132.2

 

45.3

 

(64.9

)

34.3

 

31.1

 

 

—

 

—

—

 

—

—

 

Less: Non-controlling interest

13.6

 

12.1

 

8.2

 

10.9

 

1.0

 

 

13.6

 

12.1

8.2

 

10.9

1.0

 

Adjusted EBITDA

59.9

51.8

 

55.4

 

52.5

 

40.0

 

 

59.9

 

51.8

55.4

 

52.5

40.0

 

Asset Management Adjusted EBITDA (unaudited) 31-Dec-22 30-Sep-22 30-Jun-22 31-Mar-22 31-Dec-21 Adjusted EBITDA

168.3

 

172.0

 

182.7

 

207.2

 

223.8

 

  Reported net revenue

271.2

 

196.4

 

248.7

 

315.8

 

347.5

 

Less: FX gains/(losses)

15.5

 

(74.4

)

(32.8

)

11.4

 

(1.4

)

Less: Non-Operating Other gains/(losses)

(7.1

)

-

 

1.2

 

-

 

16.8

 

Less: Non-controlling interest revenues

0.2

 

0.1

 

0.2

 

0.2

 

0.3

 

Adjusted net revenue

262.6

 

270.6

 

280.0

 

304.1

 

331.8

 

Adjusted EBITDA margin

64.1

%

63.5

%

65.2

%

68.1

%

67.4

%

    Canada Wealth Management Adjusted EBITDA (unaudited) 31-Dec-22 30-Sep-22 30-Jun-22 31-Mar-22 31-Dec-21 Adjusted EBITDA

14.5

 

13.7

 

13.0

 

12.9

 

13.5

 

  Reported net revenue

205.5

 

197.7

 

196.9

 

202.9

 

201.1

 

Less: FX gains/(losses)

(0.4

)

0.5

 

(0.0

)

0.1

 

0.8

 

Less: Non-Operating Other gains/(losses)

-

 

-

 

-

 

-

 

-

 

Less: Non-controlling interest revenues

14.4

 

13.9

 

13.3

 

13.1

 

11.9

 

Adjusted Revenue

191.5

 

183.4

 

183.6

 

189.7

 

188.4

 

Adjusted EBITDA margin

7.6

%

7.5

%

7.1

%

6.8

%

7.1

%

    US Wealth Management Adjusted EBITDA (unaudited) 31-Dec-22 30-Sep-22 30-Jun-22 31-Mar-22 31-Dec-21 Adjusted EBITDA

59.9

 

51.8

 

55.4

 

52.5

 

40.0

 

  Reported net revenue

193.1

 

168.2

 

173.4

 

169.2

 

125.9

 

Less: FX gains/(losses)

0.0

 

(0.0

)

(0.0

)

0.0

 

3.7

 

Amortization of equity method investments

(2.5

)

-

 

-

 

-

 

-

 

Less: NCI revenues

26.0

 

21.1

 

21.3

 

22.2

 

5.8

 

Adjusted Revenue

169.6

 

147.2

 

152.2

 

147.0

 

116.5

 

Adjusted EBITDA margin

35.3

%

35.2

%

36.4

%

35.7

%

34.3

%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230224005170/en/

Investor Relations Jason Weyeneth, CFA Vice-President, Investor Relations & Strategy 416-681-8779 jweyeneth@ci.com

Media Canada Murray Oxby Vice-President, Communications 416-681-3254 moxby@ci.com

United States Jimmy Moock Managing Partner, StreetCred 610-304-4570 jimmy@streetcredpr.com ci@streetcredpr.com