- 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
- 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.
- 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.
- 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.
- 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.
- 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.
- 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
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231109308156/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
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