• Diluted EPS of ($0.08), adjusted EPS1 of $0.81
  • EBITDA of $109.5 million, adjusted EBITDA attributable to shareholders1 of $237.8 million
  • Operating cash flow of $99.9 million, free cash flow1 of $179.4 million
  • Total assets of $421.0 billion, up 22.2% from a year ago
  • Repurchased 8.8 million shares, effectively completing normal course issuer bid
  • Announcing substantial issuer bid to repurchase up to $100 million in shares
  • Rebranded U.S. wealth management business to Corient, giving it a unified identity
  • Acquired Intercontinental Wealth Advisors of San Antonio, Texas, adding $2.3 billion in assets
  • Paid $30.5 million in dividends at $0.18 per share; to increase to $0.20 a share in January
  • Subsequent to quarter-end, completed acquisitions of Coriel Capital of Montreal and Windsor Wealth Management of Indianapolis

 All financial amounts in Canadian dollars as at September 30, 2023, unless stated otherwise.

CI Financial Corp. (“CI”) (TSX: CIX) today released financial results for the quarter ended September 30, 2023.

“The benefits of CI’s ongoing strategic transformation are demonstrated in our results and in the successful execution of important initiatives across our business lines,” said Kurt MacAlpine, CI Chief Executive Officer.

“The Canadian wealth management business is making increasingly meaningful contributions to our earnings. The conversion of the Aligned Capital assets to the CI Investment Services custody platform in late July has had an immediate impact, with this segment’s adjusted EBITDA1 attributable to shareholders increasing 24% from the previous quarter.

“Also this month, we completed the acquisition of Coriel Capital of Montreal,” Mr. MacAlpine said. “Coriel complements our Northwood Family Office and CI Private Wealth businesses, giving us an even stronger presence in the Canadian ultra-high-net-worth wealth management sector.

“Our U.S. wealth management segment continues to show steady growth in revenues and earnings, reflecting the strength of that business. We continue to make selected acquisitions, adding high-quality businesses while expanding our geographic reach.

“The rebranding of CI Private Wealth U.S. to Corient this summer was very well received and was an important step in integrating those operations and positioning Corient for continued growth as one of the largest private wealth firms in the U.S.,” Mr. MacAlpine said.

“Our Canadian asset management business is achieving exceptional investment performance. For the three and five-years ending September 30, 2023, 75% and 80% of assets under management, respectively, delivered above-average results.2 This is the best relative performance over these key time periods in the last several years and is a convincing validation of the changes we have made to transform our investment management function into a single, integrated, globally focused team.

“We repurchased 8.8 million shares in the third quarter, with the result that we have repurchased virtually all of the shares allowed under our normal course issuer bid, which expires in June 2024,” Mr. MacAlpine said. “Therefore, today we are announcing a substantial issuer bid, under which CI will offer to purchase up to $100 million of its outstanding common shares. We are taking this step because we believe that CI shares remain drastically undervalued.”

Operating and financial data highlights

[millions of dollars, except share amounts]

As of and for the quarters ended

Sep. 30, 2023

Jun. 30, 2023

Mar. 31, 2023

Dec. 31, 2022

Sep. 30, 2022

Total AUM and Client Assets:

 

 

 

 

 

Asset Management AUM(3)

119,040

122,377

121,987

117,753

114,196

Canada Wealth Management assets

81,503

82,566

81,592

77,421

73,976

Canada custody(4)

23,421

9,149

8,600

7,922

6,559

U.S. Wealth Management assets(5)

197,016

193,980

187,481

180,579

149,841

Total assets

420,981

408,072

399,659

383,675

344,573

 

 

 

 

 

 

Asset Management Net Inflows:

 

 

 

 

 

Retail

(110)

7

841

1,621

640

Institutional

(79)

(14)

(177)

(195)

(21)

Australia

(105)

55

(81)

12

(377)

Closed Business

(155)

(174)

(195)

(169)

(129)

Total Asset Management Segment

(449)

(126)

388

1,269

112

U.S. Asset Management(6)

(16)

(266)

(67)

595

(38)

 

 

 

 

 

 

IFRS Results

 

 

 

 

 

Net income attributable to shareholders

(12.4)

51.0

30.0

(9.5)

14.9

Diluted earnings per share

(0.08)

0.28

0.16

(0.05)

0.08

Pretax income

20.6

112.5

54.8

33.6

37.8

Pretax margin

3.3 %

14.5 %

8.6 %

5.4 %

7.4 %

Operating cash flow before the change in operating assets and liabilities

104.7

126.9

145.6

150.9

64.8

 

 

 

 

 

 

Adjusted Results

 

 

 

 

 

Adjusted net income

132.8

136.0

136.8

135.9

135.9

Adjusted diluted earnings per share

0.81

0.76

0.74

0.74

0.73

Adjusted EBITDA

276.6

272.3

268.6

257.7

250.9

Adjusted EBITDA margin

41.3 %

40.6 %

42.0 %

42.1 %

42.7 %

Adjusted EBITDA attributable to shareholders

237.8

245.3

250.1

242.7

237.5

Free cash flow

179.4

143.3

155.1

157.9

151.5

 

 

 

 

 

 

Average shares outstanding

161,549,038

178,883,346

184,517,832

183,666,579

185,601,752

Adjusted average diluted shares outstanding

163,619,462

179,640,506

185,136,641

184,631,756

186,354,465

Ending shares outstanding

158,867,975

167,640,863

184,517,832

184,517,832

183,526,499

 

 

 

 

 

 

Total debt

3,289

3,132

4,190

4,216

3,949

Net debt

3,113

2,887

4,052

4,059

3,730

Net debt to adjusted EBITDA

3.3

2.9

4.0

4.2

4.0

  1. Free cash flow, net debt, adjusted net income, adjusted earnings per share, adjusted EBITDA, adjusted net revenues and adjusted expenses are not standardized earnings measures prescribed by IFRS. For further information, see “Non-IFRS Measures” note below.
  2. Reflects percentage of CI Global Asset Management assets under management that are ranked first or second quartile over the three and five-year periods ending September 30, 2023. The ranking includes Series F mutual funds only. The Morningstar Absolute Quartile Rankings are compiled by sorting the funds by returns relative to the mutual funds within the same peer group and range from 1 to 4 for all time periods covered and can change monthly. The top-performing 25% of funds in each fund category are assigned a ranking of 1, the next 25% a 2, etc.
  3. Includes $31.8 billion, $32.8 billion, $33.0 billion, $31.9 billion and $33.0 billion of assets managed by CI and held by clients of advisors with CI Assante Wealth Management, CI Private Counsel (CIPC) and Aligned Capital Partners as at September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022 and September 30, 2022, respectively.
  4. Includes $19.7 billion, $5.4 billion, $5.0 billion, $4.6 billion and $4.2 billion of assets advised by CI and held by clients of advisors with Assante, CIPC, CI Direct Investing and Aligned Capital as at September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022 and September 30, 2022, respectively. Prior to July 2023, custody assets were historically not included as part of reported assets for Canada wealth management or consolidated total assets.
  5. Month-end USD/CAD exchange rates of 1.3582, 1.3248, 1.3515, 1.3540 and 1.3813 for September 2023, June 2023, March 2023, December 2022 and September 2022, respectively.
  6. Includes 100% of flows from CI’s minority investments in Columbia Pacific Advisors, OCM Capital Partners, The Cabana Group and GLASfunds Holdings.

Financial highlights

Third quarter net loss attributable to shareholders was $12.4 million compared to net income attributable to shareholders of $51.0 million in the second quarter of 2023. Excluding non-operating items, adjusted net income attributable to shareholders1 was $132.8 million in the third quarter, down 2.4% from the second quarter.

Third quarter total net revenues decreased 20.6% to $616.5 million in the quarter from $776.1 million in the second quarter of 2023. Excluding non-operating items, adjusted total net revenues1 grew 2.3% to $669.6 million, driven by growth in the U.S. Wealth Management segment due to acquisitions during the quarter, as well as by the Canadian Wealth Management segment due to higher average assets. Asset Management segment revenues declined driven by lower interest income and other gains/(losses).

Third quarter total expenses decreased 10.2% to $595.9 million in the quarter from $663.6 million in the second quarter of 2023. Excluding non-operating items, adjusted total expenses1 were up 1.3% to $445.8 million, reflecting higher SG&A due to U.S. segment acquisitions during the quarter as well as higher stock-based compensation.

Capital allocation

In the third quarter of 2023, CI repurchased 8.8 million shares at a cost of $145.3 million, for an average cost of $16.52 per share, and paid $30.5 million in dividends at a rate of $0.18 per share. The annual dividend rate of $0.72 per share represented a yield of 5.3% on CI’s closing share price of $13.64 on November 8, 2023.

The Board of Directors of CI (the “Board”) declared a quarterly dividend of $0.20 per share, payable on April 15, 2024 to shareholders of record as of March 28, 2024. As announced in August 2023, the Board declared a $0.02 increase to the quarterly dividend to $0.20 per share, payable on January 15, 2024 to shareholders of record as of December 29, 2023.

Substantial issuer bid

The Board has approved the commencement of a substantial issuer bid (the “Offer”), pursuant to which CI will offer to purchase up to $100 million in value of its outstanding common shares from holders for cash, at a single price per share (not less than $13.64 per share and not more than $15.28 per share).

The Offer will proceed by way of a “modified Dutch auction”. Shareholders wishing to tender to the Offer will be entitled to do so pursuant to: (i) auction tenders in which they will specify the number of shares being tendered at a price of not less than $13.64 and not more than $15.28 per share in increments of $0.25 per share other than an increment from $13.64 to $13.78, or (ii) purchase price tenders in which they will not specify a price per share, but will rather agree to have a specified number of shares purchased at the single purchase price determined by the modified Dutch auction.

The Offer will not be conditional upon any minimum number of shares being tendered, but will be subject to other conditions and CI will reserve the right, subject to applicable laws, to withdraw or amend the Offer, if, at any time prior to the payment for deposited shares, certain events occur as will be described in the formal offer to purchase and issuer bid circular and other related documents (the “Offer Documents”) .

Details of the Offer, including instructions for tendering shares to the Offer and the factors considered by the Board in making its decision to approve the Offer, will be included in the Offer Documents. The Offer is expected to commence and the Offer Documents are expected to be mailed to shareholders and filed on SEDAR+ at www.sedarplus.com, on or about November 10, 2023. Shareholders should carefully read the Offer Documents prior to making a decision with respect to the Offer.

CI has engaged National Bank Financial Inc. (“NBF”) to act as dealer manager and financial advisor in connection with the Offer. CI has also engaged Computershare Investor Services Inc. to act as depositary for the Offer.

None of CI, its Board, NBF or the depositary makes any recommendation to any shareholder as to whether to deposit or refrain from depositing shares under the Offer, or in the case of auction tenders, at what price to deposit shares under the Offer. Shareholders are urged to evaluate carefully all information in the Offer, consult their own financial, legal, investment and tax advisors, and make their own decisions as to whether to deposit shares under the Offer, and, if so, how many shares to deposit and at what price(s). The disclosure in this press release regarding the Offer is for informational purposes only and does not constitute an offer to buy or the solicitation of an offer to sell shares. The solicitation and the offer to buy shares will only be made pursuant to the Offer Documents.

Third quarter business highlights

  • Effective August 1, 2023, CI rebranded CI Private Wealth (U.S.) as Corient, which is derived from “client oriented.” The Corient brand better reflects the firm’s extensive capabilities as a national integrated private wealth company and is being used by all company offices across the U.S. Corient is the trade name for Corient Private Wealth LLC.
  • CI acquired Intercontinental Wealth Advisors, LLC, a registered investment advisor (“RIA”) with offices in San Antonio, Texas and Ft. Lauderdale, Florida. The transaction, which closed in July 2023, added approximately $2.3 billion in assets to the Corient business.
  • In July 2023, CI converted client assets at Aligned Capital Partners to the CI Investment Services (“CIIS”) custody and clearing platform. The conversion increased custody assets at CIIS to $23.4 billion as at September 30, 2023 from $9.1 billion as at June 30, 2023.
  • CI Global Asset Management (“CI GAM”) introduced two private markets investment solutions, providing access to accredited investors to this important asset class through convenient one-ticket investments. The two mandates, a growth fund and an income fund, provide Canadian investors with access to global best-in-class alternative asset managers.
  • CI GAM’s other product enhancements during the quarter included a series of changes to simplify and strengthen the competitiveness of its lineup of money market funds, including launching two money market ETFs.

Following quarter-end:

  • CI acquired Coriel Capital Inc., a Montreal-based wealth management firm serving ultra-high-net-worth Canadians. The woman-led firm manages approximately $1.3 billion in client assets. The transaction was announced in August 2023 and closed on November 1, 2023.
  • In October 2023, CI acquired Windsor Wealth Management Inc., an Indianapolis-based RIA providing comprehensive financial planning and investment managements services to high-net-worth clients. It has approximately $1.9 billion in assets under management.
  • CI GAM introduced the First Home Savings Account, a registered plan that allows first-time homebuyers to save and invest, on a tax-free basis, for the down payment on a home, subject to certain limits.

Analysts’ conference call

CI will hold a conference call with analysts today at 9:00 a.m. EST, led by Mr. MacAlpine and Chief Financial Officer Amit Muni. A live webcast of the call and slide presentation can be accessed here, or through the Investor Relations section of CI’s website.

Alternatively, investors may listen to the discussion through the following numbers (access code: 331926):

  • Canada toll-free: 1-833-950-0062
  • United States toll-free: 1-833-470-1428
  • All other locations: 1-929-526-1599.

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

About CI Financial

CI Financial Corp. is a diversified global asset and wealth management company operating primarily in Canada, the United States and Australia. Founded in 1965, CI has developed world-class portfolio management talent, extensive capabilities in all aspects of wealth planning, and a comprehensive product suite.

CI operates in three segments:

  • Asset Management, which includes CI Global Asset Management, which operates in Canada, and GSFM Pty Ltd., which operates in Australia.
  • Canadian Wealth Management, which includes the operations of CI Assante Wealth Management, Aligned Capital Partners, CI Private Wealth (Canada), Northwood Family Office, CI Direct Investing and CI Investment Services.
  • U.S. Wealth Management, which includes Corient Private Wealth, an integrated wealth management firm providing comprehensive solutions to ultra-high-net-worth and high-net-worth clients across the United States.

CI is headquartered in Toronto and listed on the Toronto Stock Exchange (TSX: CIX). To learn more, visit CI’s website or LinkedIn page.

Commissions, trailing commissions, management fees and expenses all may be associated with an investment in mutual funds and exchange-traded funds (ETFs). Please read the prospectus before investing. Important information about mutual funds and ETFs is contained in their respective prospectus. Mutual funds and ETFs are not guaranteed; their values change frequently, and past performance may not be repeated. You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on recognized Canadian exchanges. If the units are purchased or sold on these Canadian exchanges, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them.

This press release contains “forward-looking information” within the meaning of applicable Canadian securities law. Forward looking information may relate to CI’s future outlook and anticipated future events, results, circumstances, performance or expectations and its products and services, including its business operations, strategy and financial performance and condition. Forward-looking statements are typically identified by words such as “believe”, “expect”, “foresee”, “forecast”, “anticipate”, “intend”, “estimate”, “goal”, “plan” and “project” and similar references to future periods, or conditional verbs such as “will”, “may”, “should”, “could” or “would”. These statements are not historical facts but instead represent management’s beliefs regarding future events, many of which are by their nature inherently uncertain and beyond management’s control. These statements include, without limitation, statements regarding CI’s intentions and expectations with respect to the Offer, the terms and conditions of the Offer, the number and aggregate dollar amount of Shares to be purchased for cancellation under the Offer, the expected Expiration Date of the Offer and purchases thereunder and the effects and benefits of purchases under the Offer. Although management believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements involve risks and uncertainties. The material factors and assumptions applied in reaching the conclusions contained in the forward-looking statements include beliefs that asset levels will remain stable, that the investment fund industry and wealth management industry will remain stable and that interest rates will remain relatively stable. In addition, 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, 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. Additional information about the risks and uncertainties of the CI’s business and material risk factors or assumptions on which information contained in forward‐looking statements is based is provided in the CI’s disclosure materials, including CI’s most recently filed annual information form and any subsequently filed interim management’s discussion and analysis, which are available under CI’s profile on SEDAR+ at www.sedarplus.com. 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.

Undue reliance should not be placed on forward-looking information. The forward-looking information in this press release is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Further, forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to, those described in this press release. The belief that the investment fund industry and wealth management industry will remain stable and that interest rates will remain relatively stable are material factors made in preparing the forward-looking information and management’s expectations contained in this press release and that may cause actual results to differ materially from the forward-looking information disclosed in this press release. In addition, 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 impact of the coronavirus pandemic, changes in government regulations or in tax laws, industry competition, technological developments and other factors described or discussed in CI Financial’s disclosure materials filed with applicable securities regulatory authorities from time to time. Additional information about the risks and uncertainties of CI’s business and material risk factors or assumptions on which information contained in forward‐looking information is based is provided in CI’s disclosure materials, including CI’s most recently filed annual information form and any subsequently filed interim management’s discussion and analysis, which are available under our profile on SEDAR+ at www.sedarplus.com.

There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents our expectations as of the date of this news release and is subject to change after such date. CI Financial disclaims any intention or obligation or undertaking to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.

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 September 30

2023

2022

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

$

$

REVENUE

 

 

Canada asset management fees

375,557

386,734

Trailer fees and deferred sales commissions

(114,720)

(119,229)

Net asset management fees

260,837

267,505

Canada wealth management fees

146,663

129,189

U.S. wealth management fees

229,025

164,071

Other revenues

40,870

26,649

Foreign exchange losses

(60,439)

(73,897)

Other gains (losses)

(430)

102

Total net revenues

616,526

513,619

 

 

 

EXPENSES

 

 

Selling, general and administrative

343,470

245,574

Advisor and dealer fees

110,288

98,293

Interest and lease finance

39,790

38,575

Amortization and depreciation

12,902

12,975

Amortization of intangible assets from acquisitions

34,795

27,725

Transaction, integration, restructuring and legal

23,739

13,089

Change in fair value of contingent consideration

(7,157)

22,466

Change in fair value of preferred equity

21,420

Other

16,699

17,094

Total expenses

595,946

475,791

Income before income taxes

20,580

37,828

 

 

 

Provision for (recovery of) income taxes

 

 

Current

36,219

47,882

Deferred

(3,414)

(24,413)

 

32,805

23,469

Net income (loss) for the period

(12,225)

14,359

Net income (loss) attributable to non-controlling interests

190

(523)

Net income (loss) attributable to shareholders

(12,415)

14,882

Basic earnings (loss) per share attributable to shareholders

($0.08)

$0.08

Diluted earnings (loss) per share attributable to shareholders

($0.08)

$0.08

 

 

 

Other comprehensive income, net of tax

 

 

Exchange differences on translation of foreign operations

35,519

60,858

Total other comprehensive income, net of tax

35,519

60,858

Comprehensive income for the period

23,294

75,217

Comprehensive income attributable to non-controlling interests

668

2,024

Comprehensive income attributable to shareholders

22,626

73,193

 

 

As at

As at

CONSOLIDATED BALANCE SHEET

September 30, 2023

December 31, 2022

[in thousands of Canadian dollars]

$

$

ASSETS

 

 

Current

 

 

Cash and cash equivalents

175,709

153,620

Client and trust funds on deposit

1,009,935

1,306,595

Investments

36,748

40,448

Accounts receivable and prepaid expenses

374,732

298,778

Income taxes receivable

23,916

33,989

Total current assets

1,621,040

1,833,430

Capital assets, net

68,020

55,587

Right-of-use assets

129,711

139,422

Intangibles

7,634,172

7,227,700

Deferred income taxes

76,458

54,415

Other assets

321,565

397,804

Total assets

9,850,966

9,708,358

LIABILITIES AND EQUITY

 

 

Current

 

 

Accounts payable and accrued liabilities

393,791

293,246

Current portion of provisions and other financial liabilities

559,454

502,746

Dividends payable

60,370

66,426

Client and trust funds payable

1,016,539

1,312,640

Income taxes payable

12,683

3,044

Redeemable unit liabilities

1,024,501

765,959

Preferred equity

1,415,555

Current portion of long-term debt

157,156

320,000

Current portion of lease liabilities

22,912

23,994

Total current liabilities

4,662,961

3,288,055

Long-term debt

3,131,913

3,896,214

Provisions and other financial liabilities

174,380

270,567

Deferred income taxes

480,145

480,500

Lease liabilities

146,320

149,360

Total liabilities

8,595,719

8,084,696

Equity

 

 

Share capital

1,476,490

1,706,880

Contributed surplus

44,214

30,239

Deficit

(320,220)

(160,572)

Accumulated other comprehensive income

42,266

33,224

Total equity attributable to the shareholders of the Company

1,242,750

1,609,771

Non-controlling interests

12,497

13,891

Total equity

1,255,247

1,623,662

Total liabilities and equity

9,850,966

9,708,358

   

CONSOLIDATED STATEMENT OF CASH FLOWS

 

 

For the three-month period ended June 30

2023

2022

[in thousands of Canadian dollars]

$

$

OPERATING ACTIVITIES (*)

 

 

Net income for the period

(12,225)

14,359

Add (deduct) items not involving cash

 

 

Other (gains) losses

430

(102)

Change in fair value of contingent consideration

(7,157)

22,466

Change in fair value of preferred equity

21,420

Contingent and deferred consideration recorded as compensation

4,393

3,789

Amortization of loan guarantees

(459)

Recognition of non-cash vesting of redeemable unit liabilities

40,596

907

Equity-based compensation

9,576

7,142

Equity accounted income

(1,387)

Amortization of equity accounted investments

1,401

Amortization and depreciation

12,902

12,975

Amortization of intangible assets from acquisitions

34,795

27,725

Deferred income taxes

(3,414)

(24,413)

Impairment loss on intangibles

3,839

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

104,710

64,848

Net change in operating assets and liabilities

(10,134)

38,412

Cash provided by operating activities

94,576

103,260

 

 

 

INVESTING ACTIVITIES

 

 

Cash paid to settle acquisition liabilities

(17,656)

(27,063)

Acquisitions, net of cash acquired

(53,288)

Purchase of investments

(15)

(503)

Proceeds on sale of investments

181

903

Additions to capital assets

(6,504)

(4,061)

Decrease in other assets

4,857

42,829

Additions to intangibles

(1,582)

(2,449)

Cash provided by (used in) investing activities

(74,007)

9,656

 

 

 

FINANCING ACTIVITIES

 

 

Issuance of long-term debt

95,000

75,000

Repurchase of share capital

(144,943)

(79,422)

Payment of lease liabilities

(4,719)

(5,864)

Issuance of redeemable units, net of redemptions

(176)

Net distributions to non-controlling interest

(2,444)

Dividends paid to shareholders

(30,517)

(34,592)

Cash used in financing activities

(85,355)

(47,322)

Net increase (decrease) in cash and cash equivalents during the period

(64,786)

65,594

Cash and cash equivalents, beginning of period

240,495

154,844

Cash and cash equivalents, end of period

175,709

220,438

SUPPLEMENTAL CASH FLOW INFORMATION

 

 

(*) Included in operating activities are the following:

 

 

Interest paid

6,823

12,919

Income taxes paid

42,493

70,687

 

ASSETS UNDER MANAGEMENT AND NET FLOWS

[billions of dollars]

Quarters ended

Sep. 30, 2023

Jun. 30, 2023

Mar. 31, 2023

Dec. 31, 2022

Sep. 30, 2022

Beginning AUM

122.4

 

122.0

 

117.8

 

114.2

 

116.1

 

Gross inflows

5.7

 

6.1

 

6.9

 

7.3

 

4.9

 

Gross outflows

(6.2

)

(6.2

)

(6.5

)

(6.0

)

(4.8

)

Net inflows/(outflows)

(0.4

)

(0.1

)

0.4

 

1.3

 

0.1

 

Acquisitions

 

 

 

 

 

Market move and FX

(2.9

)

0.5

 

3.8

 

2.3

 

(2.0

)

Ending AUM

119.0

 

122.4

 

122.0

 

117.8

 

114.2

 

Proprietary AUM

31.8

 

32.8

 

33.0

 

31.9

 

30.4

 

Non-proprietary AUM

87.2

 

89.6

 

89.0

 

85.9

 

83.7

 

Average assets under management

122.1

 

122.1

 

121.9

 

117.7

 

119.1

 

Annualized organic growth

(1.5

)%

(0.4

)%

1.3

%

4.4

%

0.4

%

 

 

 

 

 

 

Gross management fee/average AUM

1.24

%

1.25

%

1.27

%

1.29

%

1.30

%

Net management fee/average AUM

0.84

%

0.85

%

0.86

%

0.87

%

0.88

%

 

 

 

 

 

 

Net Inflows/(Outflows)

 

 

 

 

 

Retail

(0.1

)

 

0.8

 

1.6

 

0.6

 

Institutional

(0.1

)

 

(0.2

)

(0.2

)

 

Closed business

(0.2

)

(0.2

)

(0.2

)

(0.2

)

(0.1

)

Total Canada net inflows/(outflows)

(0.3

)

(0.2

)

0.5

 

1.3

 

0.5

 

Australia

(0.1

)

0.1

 

(0.1

)

 

(0.4

)

Total net inflows/(outflows)

(0.4

)

(0.1

)

0.4

 

1.3

 

0.1

 

 

RETAIL (ex Closed Business)

[billions of dollars]

Quarters ended

Sep. 30, 2023

Jun. 30, 2023

Mar. 31, 2023

Dec. 31, 2022

Sep. 30, 2022

Beginning AUM

101.7

101.2

97.1

94.0

95.1

Net Flows

(0.1)

0.0

0.8

1.6

0.6

Market Move / FX

(2.5)

0.5

3.3

1.5

(1.7)

Acquisitions

___

___

___

___

___

Ending AUM

99.1

101.7

101.2

97.1

94.0

Average AUM

101.5

101.3

100.9

97.0

97.9

INSTITUTIONAL

[billions of dollars]

Quarters ended

Sep. 30, 2023

Jun. 30, 2023

Mar. 31, 2023

Dec. 31, 2022

Sep. 30, 2022

Beginning AUM

8.5

8.5

8.3

8.3

8.4

Net Flows

(0.1)

(0.0)

(0.2)

(0.2)

0.0

Market Move / FX

(0.1)

0.0

0.4

0.2

(0.1)

Acquisitions

___

___

___

___

___

Ending AUM

8.3

8.5

8.5

8.3

8.3

Average AUM

8.5

8.5

8.5

8.4

8.6

 

AUSTRALIA

[billions of dollars]

Quarters ended

Sep. 30, 2023

Jun. 30, 2023

Mar. 31, 2023

Dec. 31, 2022

Sep. 30, 2022

Beginning AUM

5.0

4.9

5.0

4.7

5.1

Net Flows

(0.1)

0.1

(0.1)

0.0

(0.4)

Market Move / FX

(0.1)

0.0

0.0

0.3

0.0

Acquisitions

___

___

___

___

___

Ending AUM

4.8

5.0

4.9

5.0

4.7

Average AUM

4.9

5.0

5.0

4.8

4.9

 

CLOSED BUSINESS

[billions of dollars]

Quarters ended

Sep. 30, 2023

Jun. 30, 2023

Mar. 31, 2023

Dec. 31, 2022

Sep. 30, 2022

Beginning AUM

7.2

7.4

7.3

7.3

7.5

Net Flows

(0.2)

(0.2)

(0.2)

(0.2)

(0.1)

Market Move / FX

(0.1)

0.0

0..3

0.2

(0.1)

Acquisitions

___

___

___

___

___

Ending AUM

6.9

7.2

7.4

7.3

7.3

Average AUM

7.2

7.3

7.5

7.4

7.6

 

AUM BY ASSET CLASS

[billions of dollars]

Quarters ended

Sep. 30, 2023

Jun. 30, 2023

Mar. 31, 2023

Dec. 31, 2022

Sep. 30, 2022

Balanced

47.7

49.8

50.8

50.3

49.8

Equity

41.1

43.0

43.3

41.6

40.2

Fixed income

10.5

11.1

11.3

11.0

11.2

Alternatives

5.5

5.1

4.0

3.6

3.8

Cash/Other

9.5

8.4

7.7

6.2

4.5

Total Canada asset management

114.3

117.4

117.1

112.8

109.5

Australia

4.8

5.0

4.9

5.0

4.7

Total asset management segment

119.0

122.4

122.0

117.8

114.2

 

CANADA WEALTH MANAGEMENT CLIENT ASSETS

[billions of dollars]

Quarters ended

Sep. 30, 2023

Jun. 30, 2023

Mar. 31, 2023

Dec. 31, 2022

Sep. 30, 2022

Beginning client assets

82.6

81.6

77.4

74.0

74.1

Acquisitions

Net flows and market move

(1.1)

1.0

4.2

3.4

(0.2)

Ending client assets

81.5

82.6

81.6

77.4

74.0

Average client assets

83.2

81.9

80.7

77.3

76.0

Wealth management fees/average client assets

0.90%

0.91%

0.93%

0.91%

0.90%

 

 

 

 

 

 

Canada custody

23.4

9.1

8.6

7.9

6.6

Proprietary custody

19.7

5.4

5.0

4.6

4.2

Non-proprietary custody

3.8

3.7

3.6

3.4

2.3

 

U.S. WEALTH MANAGEMENT CLIENT ASSETS

[billions of dollars]

Quarters ended

Sep. 30, 2023

Jun. 30, 2023

Mar. 31, 2023

Dec. 31, 2022

Sep. 30, 2022

Beginning billable client assets

185.0

179.9

174.3

144.9

138.8

Acquisitions/divestitures

2.1

4.0

24.9

Net flows and market move

1.1

1.1

5.6

4.4

6.2

Ending billable client assets

188.2

185.0

179.9

174.3

144.9

Non-billable client assets

8.8

9.0

7.6

6.3

4.9

Total client assets

197.0

194.0

187.5

180.6

149.8

Fees/beginning billable client assets

0.49%

0.48%

0.47%

0.52%

0.47%

 

NON-IFRS MEASURES

In an effort to provide additional information regarding our results as determined by IFRS, we also disclose certain non-IFRS information which we believe provides useful and meaningful information. Our management reviews these non-IFRS financial measurements when evaluating our financial performance and results of operations; therefore, we believe it is useful to provide information with respect to these non-IFRS measurements so as to share this perspective of management. Non-IFRS measurements do not have any standardized meaning, do not replace nor are superior to IFRS financial measurements and may not be comparable to similar measures presented by other companies. The non-IFRS financial measurements include:

  • Adjusted net income and adjusted basic and diluted earnings per share
  • Adjusted EBITDA and adjusted EBITDA margin
  • Free cash flow
  • Net debt.

These non-IFRS measurements exclude the following revenues and expenses which we believe allows investors a consistent way to analyze our financial performance, allows for better analysis of core operating income and business trends and permits comparisons of companies within the industry, normalizing for different financing methods and levels of taxation:

  • gains or losses related to foreign currency fluctuations on our cash balances
  • costs related to our acquisitions including:
    • amortization of intangible assets
    • change in fair value of contingent consideration
    • related advisory fees
    • contingent consideration classified as compensation per IFRS
  • restructuring charges including organizational expenses for the establishment of Corient and CIPW
  • legal provisions for a class action related to market timing
  • certain gains or losses in assets and investments
  • costs related to issuing or retiring debt obligations
  • expenses associated with Corient and CIPW redeemable units.

Further explanations of these Non-IFRS measures can be found in the “Non-IFRS Measures” section of Management’s Discussion and Analysis dated November 9, 2023 available on SEDAR at www.sedar.com or at www.cifinancial.com.

 

ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE

[millions of dollars, except per share amounts]

Quarters ended

Sep. 30, 2023

Jun. 30, 2023

Sep. 30, 2022

Net Income

(12.2)

51.4

14.4

Amortization of intangible assets from acquisitions

34.8

33.1

27.7

Amortization of intangible assets for equity accounted investments

1.4

1.4

Change in fair value of contingent consideration

(7.2)

15.2

22.5

Change in fair value of preferred equity

21.4

35.0

Interest expense on redeemable shares issued in connection with acquisitions

(0.1)

2.2

Contingent consideration recorded as compensation

4.4

0.8

3.8

Non-controlling interest reclassification

1.1

2.4

1.0

Accounting for Corient and CIPW Canada redeemable units

56.5

79.6

11.5

Severance

7.2

1.4

Amortization of loan guarantees

(0.5)

(1.8)

FX (gains)/losses

60.4

(36.5)

73.9

Transaction, integration, restructuring and legal

23.7

55.8

13.1

Pass through carried interest revenue

(8.7)

Pass through carried interest expense

8.7

Other (gains)/losses

(70.0)

Gain on debt retirement

(16.2)

Trading and bad debt

8.0

Total adjustments

203.3

102.5

161.5

Tax effect of adjustments

(24.3)

6.3

(27.8)

Less: Non-controlling interest

34.0

24.2

12.1

Adjusted net income

132.8

136.0

135.9

Adjusted earnings per share

0.82

0.76

0.73

Adjusted diluted earnings per share

0.81

0.76

0.73

 

 

 

 

Average diluted shares outstanding

177.9

190.4

186.4

Shares convertible into common in connection with an acquisition

(14.3)

(10.8)

Adjusted average diluted shares outstanding

163.6

179.6

186.4

 

EBITDA, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN

[millions of dollars, except per share amounts]

Quarters ended

Sep. 30, 2023

Jun. 30, 2023

Sep. 30, 2022

Pretax income

20.6

112.5

37.8

Amortization of intangible assets from acquisitions

34.8

33.1

27.7

Amortization of intangible assets for equity accounted investments

1.4

1.4

Depreciation and other amortization

12.9

13.3

13.0

Interest and lease finance expense

39.8

46.1

38.6

EBITDA

109.5

206.4

117.1

Change in fair value of contingent consideration

(7.2)

15.2

22.5

Change in fair value of preferred equity

21.4

35.0

Contingent consideration recorded as compensation

4.4

0.8

3.8

Non-controlling interest reclassification

1.1

2.4

1.0

Accounting for Corient and CIPW Canada redeemable units

56.5

79.6

11.5

Severance

7.2

1.4

Amortization of loan guarantees

(0.5)

(1.8)

FX (gains)/losses

60.4

(36.5)

73.9

Transaction, integration, restructuring and legal

23.7

55.8

13.1

Pass through carried interest revenue

(8.7)

Pass through carried interest expense

8.7

Other (gains)/losses

(70.0)

Gain on debt retirement

(16.2)

Trading and bad debt

8.0

Total adjustments

167.2

65.9

133.8

Adjusted EBITDA

276.6

272.3

250.9

Less: Non-controlling interest

38.9

27.0

13.4

Adjusted EBITDA attributable to shareholders

237.8

245.3

237.5

 

 

 

 

Reported net revenue

616.5

776.1

513.6

Less: FX gains/(losses)

(60.4)

36.5

(73.9)

Less: Pass through carried interest revenue

8.7

Less: Non-Operating Other gains/(losses)

0.1

70.0

Less: Amortization of equity accounted investments

(1.4)

(1.4)

Adjusted net revenue

669.6

671.0

587.5

Adjusted EBITDA margin

41.3%

40.6%

42.7%

 

FREE CASH FLOW

[millions of dollars]

Quarters ended

Sep. 30, 2023

Jun. 30, 2023

Sep. 30, 2022

Cash provided by operating activities

94.6

141.9

103.3

Less: Net change in operating assets and liabilities

(10.1)

15.0

38.4

Operating cash flow before the change in operating assets and liabilities

104.7

126.9

64.8

FX (gains)/losses

60.4

(36.5)

73.9

Transaction, integration, restructuring and legal

23.7

55.8

13.1

Trading and bad debt

8.0

Other (gains)/losses

(3.8)

Total adjustments

80.3

19.3

95.0

Tax effect (recovery) of adjustments

(4.8)

(1.5)

(14.1)

Less: Non-controlling interest

0.9

1.4

(5.8)

Free cash flow

179.4

143.3

151.5

 

NET DEBT

 

 

 

 

 

 

Quarters ended

[millions of dollars]

Sep. 30, 2023

Jun. 30, 2023

Mar. 31, 2023

Dec. 31, 2022

Sep. 30, 2022

Current portion of long-term debt

157.2

298.0

320.0

400.5

Long-term debt

3,131.9

3,131.5

3,892.2

3,896.2

3,548.2

 

3,289.1

3,131.5

4,190.2

4,216.2

3,948.7

Less:

 

 

 

 

 

Cash and short-term investments

175.7

240.5

137.0

153.6

220.4

Marketable securities

22.4

23.0

22.6

20.6

17.8

Add:

 

 

 

 

 

Regulatory capital and non-controlling interests

22.3

18.6

21.7

16.8

19.9

Net Debt

3,113.3

2,886.6

4,052.2

4,058.8

3,730.3

 

 

 

 

 

 

Adjusted EBITDA

237.8

245.3

250.1

242.7

237.5

Adjusted EBITDA, annualized

943.3

983.8

1,014.2

962.8

942.1

Gross leverage (Gross debt/Annualized adjusted EBITDA)

3.5

3.2

4.1

4.4

4.2

Net leverage (Net debt/Annualized adjusted EBITDA)

3.3

2.9

4.0

4.2

4.0

 

SUMMARY OF QUARTERLY RESULTS

[millions of dollars, except per share amounts]

IFRS Results

 

Adjusted Results

For the quarters ended

 

For the quarters ended

Sep. 30, 2023

Jun. 30, 2023

Mar. 31, 2023

Dec. 31, 2022

Sep. 30, 022

 

Sep. 30, 2023

Jun. 30, 2023

Mar. 31, 2023

Dec. 31, 2022

Sep. 30, 2022

Revenues

 

 

 

 

 

 

 

 

 

 

 

Asset management fees

375.6

375.8

377.7

378.2

386.7

 

375.6

375.8

377.7

378.2

386.7

Trailer fees and deferred sales commissions

(114.7)

(114.9)

(115.9)

(116.0)

(119.2)

 

(114.7)

(114.9)

(115.9)

(116.0)

(119.2)

Net asset management fees

260.8

261.0

261.8

262.2

267.5

 

260.8

261.0

261.8

262.2

267.5

Canada wealth management fees

146.7

144.1

141.5

133.1

129.2

 

146.7

144.1

141.5

133.1

129.2

U.S. wealth management fees

229.0

216.8

201.3

190.1

164.1

 

229.0

216.8

201.3

190.1

164.1

Other revenues

40.9

31.3

32.3

26.2

26.6

 

33.6

32.7

34.4

28.8

26.6

FX gains/(losses)

(60.4)

36.5

1.8

15.2

(73.9)

 

Other gains/(losses)

(0.4)

86.5

(0.9)

(6.5)

0.1

 

(0.5)

0.3

1.0

0.6

0.1

Total net revenues

616.5

776.1

637.8

620.3

513.6

 

669.6

654.8

640.0

614.9

587.5

Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

343.5

345.9

304.6

277.2

245.6

 

275.8

265.9

254.6

248.0

230.3

Advisor and dealer fees

110.3

108.2

107.8

101.1

98.3

 

110.3

108.2

107.8

101.1

98.3

Other

16.7

10.9

11.5

9.2

17.1

 

6.9

8.5

9.0

8.1

8.1

Interest and lease finance expense

39.8

46.1

47.2

41.4

38.6

 

39.9

44.0

47.2

41.4

38.6

Depreciation and other amortization

12.9

13.3

12.9

13.1

13.0

 

12.9

13.3

12.9

13.1

13.0

Amortization of intangible assets from acquisitions

34.8

33.1

31.3

26.5

27.7

 

Transaction, integration, restructuring and legal

23.7

55.8

14.2

41.3

13.1

 

Change in fair value of contingent consideration

(7.2)

15.2

53.5

76.8

22.5

 

Change in fair value of preferred equity

21.4

35.0

 

Total expenses

595.9

663.6

583.0

586.7

475.8

 

445.8

439.9

431.5

411.7

388.2

Pretax income

20.6

112.5

54.8

33.6

37.8

 

223.9

215.0

208.5

203.2

199.3

Income tax expense

32.8

61.1

24.6

41.9

23.5

 

57.1

54.8

53.2

51.8

51.3

Net income

(12.2)

51.4

30.2

(8.3)

14.4

 

166.8

160.1

155.3

151.4

148.1

Less: Non-controlling interest

0.2

0.4

0.2

1.2

(0.5)

 

34.0

24.2

18.5

15.5

12.1

Net income attributable to shareholders

(12.4)

51.0

30.0

(9.5)

14.9

 

132.8

136.0

136.8

135.9

135.9

Basic earnings per share

(0.08)

0.28

0.16

(0.05)

0.08

 

0.82

0.76

0.74

0.74

0.73

Diluted earnings per share

(0.08)

0.28

0.16

(0.05)

0.08

 

0.81

0.76

0.74

0.74

0.73

 

RESULTS OF OPERATIONS - ASSET MANAGEMENT SEGMENT

[millions of dollars, except per share amounts]

IFRS Results

 

Adjusted Results

For the quarters ended

 

For the quarters ended

Sep. 30, 2023

Jun. 30, 2023

Mar. 31, 2023

Dec. 31, 2022

Sep. 30, 2022

 

Sep. 30, 2023

Jun. 30, 2023

Mar. 31, 2023

Dec. 31, 2022

Sep. 30, 2022

Revenues

 

 

 

 

 

 

 

 

 

 

 

Asset management fees

380.1

380.2

382.0

382.3

390.9

 

380.1

380.2

382.0

382.3

390.9

Trailer fees and deferred sales commissions

(122.2)

(122.5)

(123.4)

(123.8)

(126.8)

 

(122.2)

(122.5)

(123.4)

(123.8)

(126.8)

Net asset management fees

257.9

257.8

258.6

258.5

264.1

 

257.9

257.8

258.6

258.5

264.1

Other revenues

4.8

5.1

4.0

3.6

6.6

 

4.8

5.1

4.0

3.6

6.6

FX gains/(losses)

(61.9)

37.5

2.0

15.5

(74.4)

 

Other gains/(losses)

(0.4)

16.1

(0.9)

(6.5)

0.1

 

(0.5)

0.3

1.0

0.6

0.1

Total net revenues

200.3

316.5

263.6

271.2

196.4

 

262.2

263.1

263.5

262.8

270.7

Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

110.9

101.0

98.9

94.3

98.7

 

105.2

102.6

98.6

94.3

98.7

Other

0.7

7.2

 

0.7

Interest and lease finance expense

2.5

(1.5)

0.6

0.9

1.0

 

2.5

(1.5)

0.6

0.9

1.0

Depreciation and other amortization

2.5

5.4

3.8

4.7

5.0

 

2.5

5.4

3.8

4.7

5.0

Amortization of intangible assets from acquisitions

0.6

0.6

0.6

0.6

0.6

 

Transaction, integration, restructuring and legal

0.6

34.6

1.7

11.0

2.6

 

Change in fair value of contingent consideration

(0.6)

0.7

(2.2)

1.6

3.2

 

Total expenses

117.2

140.8

103.5

113.1

118.2

 

111.0

106.6

103.0

99.9

104.6

Pretax income

83.1

175.7

160.1

158.0

78.2

 

151.2

156.5

160.5

162.8

166.1

Non-IFRS adjustments

 

 

 

 

 

 

 

 

 

 

 

Pretax income

83.1

175.7

160.1

158.0

78.2

 

151.2

156.5

160.5

162.8

166.1

Amortization of intangible assets from acquisitions

0.6

0.6

0.6

0.6

0.6

 

Depreciation and other amortization

2.5

5.4

3.8

4.7

5.0

 

2.5

5.4

3.8

4.7

5.0

Interest and lease finance expense

2.5

(1.5)

0.6

0.9

1.0

 

2.5

(1.5)

0.6

0.9

1.0

EBITDA

88.7

180.2

165.1

164.2

84.7

 

156.2

160.5

164.9

168.4

172.1

Change in fair value of contingent consideration

(0.6)

0.7

(2.2)

1.6

3.2

 

FX (gains)/losses

61.9

(37.5)

(2.0)

(15.5)

74.4

 

Severance

6.1

0.1

0.5

 

Amortization of loan guarantees

(0.5)

(1.8)

(0.3)

 

Transaction, integration, restructuring and legal

0.6

34.6

1.7

11.0

2.6

 

Other (gains)/losses

0.3

1.9

7.1

 

Gain on debt retirement

(16.2)

 

Trading and bad debt

7.1

 

Total adjustments

67.5

(19.8)

(0.2)

4.2

87.3

 

Adjusted EBITDA

156.2

160.5

164.9

168.4

172.1

 

156.2

160.5

164.9

168.4

172.1

Less: Non-controlling interest

0.2

0.2

0.2

0.1

0.1

 

0.2

0.2

0.2

0.1

0.1

Adjusted EBITDA attributable to shareholders

156.0

160.3

164.7

168.3

172.0

 

156.0

160.3

164.7

168.3

172.0

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

Sep. 30, 2023

Jun. 30, 2023

Mar. 31, 2023

Dec. 31, 2022

Sep. 30, 2022

 

Sep. 30, 2023

Jun. 30, 2023

Mar. 31, 2023

Dec. 31, 2022

Sep. 30, 2022

Revenues

 

 

 

 

 

 

 

 

 

 

 

Canada wealth management fees

189.1

186.8

184.3

176.8

171.7

 

189.1

186.8

184.3

176.8

171.7

Other revenues

30.7

30.5

31.8

29.1

25.5

 

30.7

30.6

31.8

29.2

25.5

FX gains/(losses)

1.4

(0.5)

(0.2)

(0.4)

0.5

 

Other gains/(losses)

 

Total net revenues

221.1

216.8

215.9

205.5

197.7

 

219.8

217.4

216.2

206.0

197.2

Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

52.2

50.3

48.2

46.2

43.8

 

49.2

49.3

47.7

45.9

43.6

Advisor and dealer fees

144.4

142.5

141.7

136.2

132.4

 

144.4

142.5

141.7

136.2

132.4

Other

5.9

9.3

9.8

9.3

8.2

 

4.8

8.0

8.8

8.1

6.3

Interest and lease finance expense

0.6

0.3

 

0.6

0.3

Depreciation and other amortization

5.2

2.9

4.1

3.2

3.2

 

5.2

2.9

4.1

3.2

3.2

Amortization of intangible assets from acquisitions

2.2

2.2

2.1

2.1

2.1

 

Transaction, integration, restructuring and legal

0.4

0.1

0.3

0.2

0.3

 

Change in fair value of contingent consideration

(0.4)

1.0

5.3

1.9

(0.7)

 

Total expenses

210.5

208.4

211.8

199.1

189.3

 

204.2

202.7

202.5

193.4

185.6

Pretax income

10.7

8.5

4.1

6.4

8.4

 

15.6

14.7

13.7

12.5

11.6

 

 

 

 

 

 

 

 

 

 

 

 

Non-IFRS adjustments

 

 

 

 

 

 

 

 

 

 

 

Pretax income

10.7

8.5

4.1

6.4

8.4

 

15.6

14.7

13.7

12.5

11.6

Amortization of intangible assets from acquisitions

2.2

2.2

2.1

2.1

2.1

 

 

Amortization of intangible assets for equity accounted investments

0.1

0.1

0.1

0.1

 

Depreciation and other amortization

5.2

2.9

4.1

3.2

3.2

 

5.2

2.9

4.1

3.2

3.2

Interest and lease finance expense

0.6

0.3

 

0.6

0.3

EBITDA

18.7

13.6

10.7

11.8

13.7

 

21.4

17.6

18.0

15.8

14.9

Change in fair value of contingent consideration

(0.4)

1.0

5.3

1.9

(0.7)

 

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

0.1

0.2

0.2

0.2

0.1

 

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

2.0

0.2

0.2

0.1

0.1

 

FX (gains)/losses

(1.4)

0.5

0.2

0.4

(0.5)

 

Severance

0.9

0.7

0.1

 

Transaction, integration, restructuring and legal

0.4

0.2

0.3

0.2

0.3

 

Non-controlling interest reclassification (included in Other)

1.1

1.3

1.1

1.2

1.0

 

Trading and bad debt

0.8

 

Total adjustments

2.7

4.0

7.3

4.0

1.2

 

Adjusted EBITDA

21.4

17.6

18.0

15.8

14.9

 

21.4

17.6

18.0

15.8

14.9

Less: Non-controlling interest

1.2

1.4

1.9

1.3

1.2

 

1.2

1.4

1.9

1.3

1.2

Adjusted EBITDA attributable to shareholders

20.1

16.2

16.2

14.5

13.7

 

20.1

16.2

16.2

14.5

13.7

 

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

Sep. 30, 2023

Jun. 30, 2023

Mar. 31, 2023

Dec. 31, 2022

Sep. 30, 2022

 

Sep. 30, 2023

Jun. 30, 2023

Mar. 31, 2023

Dec. 31, 2022

Sep. 30, 2022

Revenues

 

 

 

 

 

 

 

 

 

 

 

U.S. wealth management fees

229.0

216.8

201.3

190.1

164.1

 

229.0

216.8

201.3

190.1

164.1

Other revenues

14.9

5.4

6.3

2.9

4.2

 

7.6

6.7

8.3

5.5

4.2

FX gains/(losses)

0.1

(0.6)

 

Other gains/(losses)

70.4

 

Total net revenues

244.0

291.9

207.7

193.1

168.2

 

236.6

223.5

209.6

195.6

168.3

Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

195.2

209.5

173.0

151.1

117.7

 

136.0

128.8

123.8

122.2

102.6

Other

10.1

1.6

1.7

(0.1)

1.8

 

1.4

0.5

0.2

(0.1)

1.8

Interest and lease finance expense

0.8

3.2

0.8

0.8

0.7

 

0.8

3.2

0.8

0.8

0.7

Depreciation and other amortization

5.2

5.0

5.1

5.2

4.8

 

5.2

5.0

5.1

5.2

4.8

Amortization of intangible assets from acquisitions

32.0

30.3

28.6

23.8

25.0

 

Transaction, integration, restructuring and legal

22.7

21.1

12.2

30.0

10.2

 

Change in fair value of contingent consideration

(6.1)

13.5

50.4

73.3

20.0

 

Change in fair value of preferred equity

21.4

35.0

 

Total expenses

281.3

319.3

271.7

284.2

180.1

 

143.4

137.6

129.9

128.1

109.8

Pretax income

(37.3)

(27.3)

(64.0)

(91.1)

(11.9)

 

93.2

85.9

79.7

67.4

58.4

 

 

 

 

 

 

 

 

 

 

 

 

Non-IFRS adjustments

 

 

 

 

 

 

 

 

 

 

 

Pretax income

(37.3)

(27.3)

(64.0)

(91.1)

(11.9)

 

93.2

85.9

79.7

67.4

58.4

Amortization of intangible assets from acquisitions

32.0

30.3

28.6

23.8

25.0

 

 

 

Amortization of intangible assets for equity accounted investments

1.3

1.3

2.0

2.5

 

Depreciation and other amortization

5.2

5.0

5.1

5.2

4.8

 

5.2

5.0

5.1

5.2

4.8

Interest and lease finance expense

0.8

3.2

0.8

0.8

0.7

 

0.8

3.2

0.8

0.8

0.7

EBITDA

2.1

12.5

(27.5)

(58.8)

18.6

 

99.3

94.2

85.6

73.5

63.9

Change in fair value of contingent consideration

(6.1)

13.5

50.4

73.3

20.0

 

Change in fair value of preferred equity

21.4

35.0

 

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

4.3

0.6

1.5

1.3

3.7

 

NCI reclassification (included in SG&A)

1.2

1.4

 

Corient adjustments (included in SG&A)

54.7

79.4

42.9

27.6

11.4

 

FX (gains)/losses

(0.1)

0.6

 

Severance

0.2

0.7

4.8

 

Transaction, integration, restructuring and legal

22.7

21.1

12.2

30.0

10.2

 

Pass through carried interest revenue (included in Other revenues)

(8.7)

 

Pass through carried interest expense (included in Other)

8.7

 

Other (gains)/losses

(70.3)

 

Total adjustments

97.2

81.7

113.1

132.2

45.3

 

Adjusted EBITDA

99.3

94.2

85.6

73.5

63.9

 

99.3

94.2

85.6

73.5

63.9

Less: Non-controlling interest

37.6

25.4

16.5

13.6

12.1

 

37.6

25.4

16.5

13.6

12.1

Adjusted EBITDA attributable to shareholders

61.6

68.8

69.1

59.9

51.8

 

61.6

68.8

69.1

59.9

51.8

 

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

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