- Q4 diluted EPS of ($0.40), adjusted EPS1 of $0.81
- 2023 diluted EPS of $0.03, adjusted EPS1 of $3.11, up $0.01
from 2022
- Q4 EBITDA of $60.5 million, adjusted EBITDA attributable to
shareholders1 of $238.7 million
- Q4 EBITDA per share of $0.38 and record adjusted EBITDA
attributable to shareholders1 per share of $1.51
- Q4 operating cash flow of $68.6 million, free cash flow1 of
$170.9 million
- 2023 operating cash flow per share of $2.61 and record free
cash flow1 per share of $3.78
- Record total assets of $444.8 billion, up $61.2 billion or
16.0% from a year earlier
- Repurchased over 6.5 million shares under $100-million
substantial issuer bid
- Announcing new substantial issuer bid to repurchase up to
$85 million in shares
- Announcing Corient received a bond rating of A- (Stable)
from KBRA (Kroll)
- Paid $28.6 million in dividends at $0.18 per share in Q4;
rate increased to $0.20 per share in January
- Completed acquisitions of Coriel Capital of Montreal and
Windsor Wealth Management of Indianapolis in Q4
All financial amounts in Canadian dollars as at December 31,
2023, unless stated otherwise. Financial amounts for the quarters
and year ended 2023 are unaudited.
CI Financial Corp. (“CI”) (TSX: CIX) today released financial
results for the quarter and year ended December 31, 2023.
“Strong fourth quarter results capped a successful year for CI,
with year-over-year gains in adjusted earnings per share, free cash
flow1 and total assets,” said Kurt MacAlpine, CI Chief Executive
Officer. “There were numerous achievements across our business
segments, demonstrating continued progress in executing on CI’s
strategic priorities.
“In asset management, we had $340 million in Canadian retail net
sales for 2023, a notable accomplishment when the Canadian fund
industry had its worst year on record for mutual fund net
redemptions. We were the most awarded investment manager in Canada
by both Lipper and FundGrade, reflecting the strength of our
investment performance and the integrated global investment
platform we have built. CI continued to be active in product
development, enhancing its existing lineup as well as launching
innovative new solutions. These included two best-in-class private
markets solutions that bring the world’s leading alternatives
mangers to Canadian retail investors.
“A key initiative in Canadian wealth management during the year
was the rapid scaling of our custody business with the conversion
of Aligned Capital assets to the CI Investment Services platform,”
Mr. MacAlpine said. “Through a combination of external and internal
growth, our custody business has increased to $26 billion in assets
from just over $1 billion in 2018. This has helped to transform the
economics of the Canadian wealth management segment, which
generated $72.2 million in adjusted EBITDA1 for 2023, a 33%
increase over 2022 and up from effectively zero in 2019. We also
continued to build on CI Private Wealth’s position as a leading
destination for ultra-high-net-worth Canadians with the acquisition
of Coriel Capital of Montreal.
“In U.S. wealth management, we continue to integrate the
business and realize synergies while greatly expanding the services
available to clients. Though the most visible accomplishment was
the adoption a new unified brand in Corient, there were many
important developments behind the scenes in 2023, including the
adoption of a centralized reporting structure and a common
technology platform. New services during the year included an
alternative investments offering, the launch of Corient Trust
company, a wealth transfer practice, and a personal CFO service
providing bill payment, accounting and related services. Our
integration initiatives allowed us to increase the adjusted EBITDA1
margin by 440 basis points in 2023.
“We also achieved the full separation of the U.S. business from
our Canadian operations, supported by the sale of a minority stake
to leading institutional investors and now with the establishment
of an independent credit rating for Corient,” Mr. MacAlpine said.
“The Kroll debt rating of A- (Stable) reflects the strong cash flow
profile and robust EBITDA1 growth of the Corient business.
“We continue to use our cash flow to repurchase shares due to
the disconnect between our share price and the underlying value of
the company. Last year, we substantially completed our annual
normal course issuer bid and a $100-million substantial issuer bid,
and today we are announcing a new substantial issuer bid, under
which we will repurchase up to $85 million in shares.
“Over the past four years, CI has transitioned from a highly
concentrated business, where most of our assets and virtually all
our earnings came from Canadian Asset Management, to a much more
diversified business,” Mr. MacAlpine said. “Today, the majority of
our assets are in wealth management, our business is well balanced
between Canada and the U.S., and wealth management is a very large
and rapidly growing contributor to our earnings.
“Given the strategic progress across our business lines and the
strength of our capital position, CI is incredibly well positioned
for another successful year in 2024.”
Operating and financial data
highlights
[millions of dollars, except share
amounts]
As of and for the quarters
ended
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Total AUM and Client Assets:
Asset Management AUM (2)
125,004
119,040
122,377
121,987
117,753
Canada Wealth Management assets
87,991
81,503
82,566
81,592
77,421
Canada custody (3)
25,567
23,421
9,149
8,600
7,922
U.S. Wealth Management assets (4)
206,282
197,016
193,980
187,481
180,579
Total assets
444,844
420,981
408,072
399,659
383,675
Asset Management Net Inflows:
Retail
(397
)
(110
)
7
841
1,621
Institutional
—
(79
)
(14
)
(177
)
(195
)
Australia
230
(105
)
55
(81
)
12
Closed Business
(200
)
(155
)
(174
)
(195
)
(169
)
Total Asset Management Segment
(367
)
(449
)
(126
)
388
1,269
U.S. Asset Management (5)
(67
)
(16
)
(266
)
(67
)
595
IFRS Results
Net income attributable to
shareholders
(63.5
)
(12.4
)
51.0
30.0
(9.5
)
Diluted earnings per share
(0.40
)
(0.08
)
0.28
0.16
(0.05
)
Pretax income
(38.2
)
20.6
112.5
54.8
33.6
Pretax margin
(5.3
) %
3.3
%
14.5
%
8.6
%
5.4
%
Operating cash flow before the change in
operating assets and liabilities
185.3
104.7
126.9
145.6
150.9
Adjusted Results
Adjusted net income
128.2
132.8
136.0
136.8
135.9
Adjusted diluted earnings per share
0.81
0.81
0.76
0.74
0.74
Adjusted EBITDA
278.3
276.6
272.3
268.6
257.7
Adjusted EBITDA margin
41.7
%
41.3
%
40.6
%
42.0
%
42.1
%
Adjusted EBITDA attributable to
shareholders
238.7
237.8
245.3
250.1
242.7
Free cash flow
170.9
179.4
143.3
155.1
157.9
Average shares outstanding
158,125,830
161,549,038
178,883,346
184,517,832
183,666,579
Adjusted average diluted shares
outstanding
158,885,217
163,619,462
179,640,506
185,136,641
184,631,756
Ending shares outstanding
153,821,117
158,867,975
167,640,863
184,517,832
184,517,832
Total debt
3,507
3,289
3,132
4,190
4,216
Net debt
3,365
3,113
2,887
4,052
4,059
Net debt to adjusted EBITDA
3.5
3.3
2.9
4.0
4.2
- 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.
- Includes $33.2 billion, $31.8 billion, $32.8 billion, $33.0
billion, and $31.9 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 December 31,
2023, September 30, 2023, June 30, 2023, March 31, 2023, and
December 31, 2022, respectively.
- Includes $21.5 billion, $19.7 billion, $5.4 billion, $5.0
billion, and $4.6 billion of assets advised by CI and held by
clients of advisors with Assante, CIPC, CI Direct Investing and
Aligned Capital as at December 31, 2023, September 30, 2023, June
30, 2023, March 31, 2023, and December 31, 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 1.3250, 1.3582, 1.3248,
1.3515, and 1.3540 for December 2023, September 2023, June 2023,
March 2023, and December 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
Fourth quarter net loss attributable to shareholders was $63.5
million compared to a net loss of $12.4 million in the third
quarter of 2023. Excluding non-operating items, adjusted net income
attributable to shareholders1 was $128.2 million in the fourth
quarter, down 3.5% from the third quarter.
Fourth quarter total net revenues increased 16.1% to $715.6
million in the quarter from $616.5 million in the third quarter of
2023. Excluding non-operating items, adjusted total net revenues1
declined slightly to $666.7 million from $669.6 million as higher
revenues from the Canada Wealth Management segment were offset by
lower Asset Management segment revenues.
Fourth quarter total expenses increased 26.5% to $753.7 million
in the quarter from $595.9 million in the third quarter of 2023.
Excluding non-operating items, adjusted total expenses1 were up
slightly to $448.7 million from $445.8 million as a result of
higher costs related to new leased office space, interest expense,
and higher advisor and dealer fees due to higher Canada Wealth
Management revenues.
Capital allocation
In December 2023, CI completed its substantial issuer bid under
which it purchased for cancellation 6,544,502 common shares at a
purchase price of $15.28 per share, for an aggregate price of
approximately $100 million.
CI paid $28.6 million in dividends at a rate of $0.18 per share.
The annual dividend rate of $0.72 per share represented a yield of
4.5% on CI’s closing share price of $15.83 on February 22, 2024.
The Board of Directors of CI (the “Board”) declared a quarterly
dividend of $0.20 per share, payable on July 15, 2024 to
shareholders of record as of June 28, 2024. As announced in August
2023, the Board declared a $0.02 increase to the quarterly dividend
to $0.20 per share, which was paid 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 4,857,142 of its outstanding common shares from holders for
cash, at a purchase price of $17.50 per share.
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 February 26, 2024.
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. 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. 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.
Fourth quarter business highlights
- CI completed the acquisitions of Coriel Capital Inc., a
Montreal-based wealth management firm serving ultra-high-net-worth
Canadians, and Windsor Wealth Management Inc., a registered
investment advisor based in Indianapolis.
- CI announced that Marc-André Lewis, Chief Investment Officer of
CI Global Asset Management (“CI GAM”), will assume the position of
co-head of CI GAM in addition to his responsibilities as CIO,
effective January 1, 2024. The appointment follows the decision by
Darie Urbanky, CI President and Chief Operating Officer and Head of
CI GAM, to retire on or before December 31, 2024.
- CI GAM investment funds received 19 LSEG Lipper Fund Awards for
Canada for 2023, more than any other fund company. The awards
recognize mutual funds and ETFs that have provided consistently
strong risk-adjusted performance, relative to peers.
- As part of CI’s strategic priority of modernizing asset
management, CI GAM undertook a series of initiatives to streamline
and enhance its product lineup, including improvements to selected
funds and a proposal to merge 19 mutual funds and ETFs into other
mandates. New products launched by CI GAM during the quarter
included the First Home Savings Account.
Following quarter-end:
- CI GAM led the industry in receiving 35 FundGrade A+® Awards
for 2023. These awards are presented annually by Fundata Canada
Inc. to acknowledge Canadian investment funds that have
demonstrated consistent, outstanding risk-adjusted
performance.
- CI GAM continued to be active in product development, launching
products that included mutual fund versions of its popular CI
WisdomTree Quality, Dividend Growth ETFs and two ETFs providing
targeted exposure to U.S. momentum and value stocks. CI GAM also
introduced a commodity-focused alternative fund designed to provide
returns that are uncorrelated to traditional asset classes,
extending the firm’s broad selection of alternative investment
funds.
Analysts’ conference call
CI will hold a conference call with analysts today at 10:00 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: 019307):
- 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 Funds Management, 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, Coriel Capital, CI Direct
Investing and CI Investment Services.
- U.S. Wealth Management, which includes Corient Private Wealth,
an integrated wealth management firm providing comprehensive
solutions to ultra-high-net-worth and high-net-worth clients across
the United States.
CI is headquartered in Toronto and listed on the Toronto Stock
Exchange (TSX: CIX). To learn more, visit CI’s website or LinkedIn
page.
Commissions, trailing commissions, management fees and expenses
all may be associated with an investment in mutual funds and
exchange-traded funds (ETFs). Please read the prospectus before
investing. Important information about mutual funds and ETFs is
contained in their respective prospectus. Mutual funds and ETFs are
not guaranteed; their values change frequently, and past
performance may not be repeated. You will usually pay brokerage
fees to your dealer if you purchase or sell units of an ETF on
recognized Canadian exchanges. If the units are purchased or sold
on these Canadian exchanges, investors may pay more than the
current net asset value when buying units of the ETF and may
receive less than the current net asset value when selling
them.
The LSEG Lipper Fund Awards, granted annually, highlight funds
and fund companies that have excelled in delivering consistently
strong risk-adjusted performance relative to their peers. The LSEG
Lipper Fund Awards are based on the Lipper Leader for Consistent
Return rating, which is a risk-adjusted performance measure
calculated over 36, 60 and 120 months. The fund with the highest
Lipper Leader for Consistent Return (Effective Return) value in
each eligible classification wins the LSEG Lipper Fund Award. For
more information, see lipperfundawards.com. Although LSEG makes
reasonable efforts to ensure the accuracy and reliability of the
data contained herein, the accuracy is not guaranteed by LSEG
Lipper.
FundGrade A+® is used with permission from Fundata Canada Inc.,
all rights reserved. The annual FundGrade A+® Awards are presented
by Fundata Canada Inc. to recognize the “best of the best” among
Canadian investment funds. The FundGrade A+® calculation is
supplemental to the monthly FundGrade ratings and is calculated at
the end of each calendar year. The FundGrade rating system
evaluates funds based on their risk-adjusted performance, measured
by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score
for each ratio is calculated individually, covering all time
periods from 2 to 10 years. The scores are then weighted equally in
calculating a monthly FundGrade. The top 10% of funds earn an A
Grade; the next 20% of funds earn a B Grade; the next 40% of funds
earn a C Grade; the next 20% of funds receive a D Grade; and the
lowest 10% of funds receive an E Grade. To be eligible, a fund must
have received a FundGrade rating every month in the previous year.
The FundGrade A+® uses a GPA-style calculation, where each monthly
FundGrade from “A” to “E” receives a score from 4 to 0,
respectively. A fund’s average score for the year determines its
GPA. Any fund with a GPA of 3.5 or greater is awarded a FundGrade
A+® Award. For more information, see www.FundGradeAwards.com.
Although Fundata makes every effort to ensure the accuracy and
reliability of the data contained herein, the accuracy is not
guaranteed by Fundata.
This press release contains “forward-looking 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
[in thousands of Canadian dollars, except
per
share amounts]
For the quarters ended
For the years ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
(unaudited)
(unaudited)
REVENUES
Asset management fees
361,881
378,163
1,490,938
1,606,800
Trailer fees and deferred sales
commissions
(111,250
)
(116,009
)
(456,740
)
(494,480
)
Net asset management fees
250,631
262,154
1,034,198
1,112,320
Canada wealth management fees
150,510
133,144
582,797
530,682
U.S. wealth management fees
226,809
190,109
873,931
687,607
Other revenues
31,609
26,229
136,124
95,733
Foreign exchange gains/(losses)
52,173
15,161
29,950
(80,132
)
Other gains/(losses)
3,840
(6,513
)
89,004
(11,904
)
Total net revenues
715,573
620,283
2,746,004
2,334,307
EXPENSES
Selling, general & administrative
375,938
277,177
1,369,909
1,020,049
Advisor and dealer fees
113,805
101,126
440,090
406,038
Other
(385
)
9,243
38,770
34,647
Interest and lease finance expense
43,892
41,401
176,998
152,087
Depreciation and other amortization
17,259
13,108
56,388
49,368
Amortization of intangible assets from
acquisitions
36,068
26,499
135,285
105,744
Transaction, integration, restructuring
and legal
39,851
41,267
133,547
62,743
Change in fair value of contingent
consideration
26,832
76,849
88,430
27,427
Change in fair value of Preferred Share
Liability
100,465
0
156,885
0
Total expenses
753,725
586,670
2,596,302
1,858,103
Pretax income
(38,152
)
33,613
149,702
476,204
Income tax expense
25,064
41,918
143,613
174,375
Net income
(63,216
)
(8,305
)
6,089
301,829
Less: Non-controlling interest
272
1,177
1,071
2,073
Net income attributable to
shareholders
(63,489
)
(9,482
)
5,018
299,757
Basic earnings per share
(0.40
)
(0.05
)
0.03
1.59
Diluted earnings per share
(0.40
)
(0.05
)
0.03
1.58
Other comprehensive income (loss), net
of tax
Exchange differences on translation of
foreign operations
(32,076
)
(12,580
)
(22,954
)
59,219
Total other comprehensive income (loss),
net of tax
(32,076
)
(12,580
)
(22,954
)
59,219
Comprehensive income (loss) for the
year
(95,293
)
(20,885
)
(16,865
)
361,048
Comprehensive income attributable to
non-controlling interests
(221
)
886
658
4,854
Comprehensive income (loss)
attributable to shareholders
(95,072
)
(21,771
)
(17,523
)
356,194
CONSOLIDATED BALANCE SHEET
December 31, 2023
December 31, 2022
[in thousands of Canadian dollars]
$
$
(unaudited)
ASSETS
Current
Cash and cash equivalents
137,029
153,620
Client and trust funds on deposit
1,073,378
1,306,595
Investments
42,781
40,448
Accounts receivable and prepaid
expenses
388,029
298,778
Assets held for sale
326
—
Income taxes receivable
33,911
33,989
Total current assets
1,675,454
1,833,430
Capital assets, net
85,077
55,587
Right-of-use assets
229,763
139,422
Intangibles and goodwill
7,575,958
7,227,700
Deferred income taxes
78,642
54,415
Other assets
336,709
397,804
Total assets
9,981,603
9,708,358
LIABILITIES AND EQUITY
Current
Accounts payable and accrued
liabilities
394,227
293,246
Current portion of provisions and other
financial liabilities
444,200
502,746
Dividends payable
61,528
66,426
Client and trust funds payable
1,068,809
1,312,640
Income taxes payable
15,252
3,044
Redeemable unit liabilities
1,089,996
765,959
Preferred Share Liability
1,481,419
—
Current portion of long-term debt
437,255
320,000
Current portion of lease liabilities
17,575
23,994
Total current liabilities
5,010,261
3,288,055
Long-term debt
3,070,149
3,896,214
Provisions and other financial
liabilities
96,952
270,567
Deferred income taxes
479,150
480,500
Lease liabilities
285,053
149,360
Total liabilities
8,941,565
8,084,696
Equity
Share capital
1,436,686
1,706,880
Contributed surplus
34,828
30,239
Deficit
(454,435)
(160,572)
Accumulated other comprehensive income
10,683
33,224
Total equity attributable to the
shareholders of the Company
1,027,762
1,609,771
Non-controlling interests
12,276
13,891
Total equity
1,040,038
1,623,662
Total liabilities and equity
9,981,603
9,708,358
CONSOLIDATED STATEMENT OF CASH FLOWS
For the years ended December 31
2023
2022
[in thousands of Canadian dollars]
$
$
(unaudited)
OPERATING ACTIVITIES (*)
Net income for the year
6,089
301,829
Add (deduct) items not involving cash
Other (gains) losses
(89,004)
11,904
Change in fair value of contingent
consideration
88,430
27,427
Change in fair value of Preferred Share
Liability
156,885
—
Contingent and deferred consideration
recorded as compensation
6,137
24,156
Amortization of loan guarantees
(3,816)
10,819
Recognition of non-cash vesting of
redeemable unit liabilities
209,380
13,499
Equity-based compensation
25,780
24,577
Equity accounted income
(8,904)
—
Amortization of equity accounted
investments
6,275
—
Amortization and depreciation
56,388
49,368
Amortization of intangible assets from
acquisitions
135,285
105,744
Deferred income taxes
(30,130)
(4,777)
Impairment loss on intangibles
3,745
—
Cash provided by operating activities
before net change in operating assets and liabilities
562,540
564,546
Net change in operating assets and
liabilities
(114,029)
(85,630)
Cash provided by operating
activities
448,511
478,916
INVESTING ACTIVITIES
Cash paid to settle acquisition
liabilities
(430,367)
(198,207)
Acquisitions, net of cash acquired
(155,140)
(472,461)
Proceeds on sale of equity-accounted
investment
130,458
—
Purchase of investments
(4,822)
(3,283)
Proceeds on sale of investments
208
96,508
Additions to capital assets
(39,125)
(17,480)
Decrease (increase) in other assets
(13,471)
97,751
Additions to intangibles
(12,041)
(11,361)
Cash used in investing
activities
(524,300)
(508,533)
FINANCING ACTIVITIES
Repayment of long-term debt
(713,000)
(455,509)
Issuance of long-term debt
768,000
718,000
Repurchase of long-term debt
(694,671)
—
Repurchase of share capital
(474,911)
(229,708)
Payment of lease liabilities
(24,686)
(22,965)
Issuance of redeemable unit liabilities,
net of redemptions
(24,021)
85,679
Net distributions to non-controlling
interest
(2,273)
(5,664)
Dividends paid to shareholders
(125,540)
(137,375)
Issuance of Preferred Share Liability
1,350,300
—
Cash provided by (used in) financing
activities
59,198
(47,542)
Net decrease in cash and cash
equivalents during the year
(16,591)
(77,159)
Cash and cash equivalents, beginning of
year
153,620
230,779
Cash and cash equivalents, end of
year
137,029
153,620
SUPPLEMENTAL CASH FLOW
INFORMATION
(*) Included in operating activities are
the following:
Interest paid
166,873
139,384
Income taxes paid
156,794
224,369
ASSETS UNDER MANAGEMENT AND NET
FLOWS
[billions of dollars]
Quarters ended
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Beginning AUM
119.0
122.4
122.0
117.8
114.2
Gross inflows
7.3
5.7
6.1
6.9
7.3
Gross outflows
(7.7
)
(6.2
)
(6.2
)
(6.5
)
(6.0
)
Net inflows/(outflows)
(0.4
)
(0.4
)
(0.1
)
0.4
1.3
Acquisitions
—
—
—
—
—
Market move and FX
6.3
(2.9
)
0.5
3.8
2.3
Ending AUM
125.0
119.0
122.4
122.0
117.8
Proprietary AUM
33.2
31.8
32.8
33.0
31.9
Non-proprietary AUM
91.8
87.2
89.6
89.0
85.9
Average assets under management
121.1
122.1
122.1
121.9
117.7
Annualized organic growth
(1.2
)%
(1.5
)%
(0.4
)%
1.3
%
4.4
%
Gross management fee/average AUM
1.20
%
1.24
%
1.25
%
1.27
%
1.29
%
Net management fee/average AUM
0.81
%
0.84
%
0.85
%
0.86
%
0.87
%
Net Inflows/(Outflows)
Retail
(0.4
)
(0.1
)
—
0.8
1.6
Institutional
—
(0.1
)
—
(0.2
)
(0.2
)
Closed business
(0.2
)
(0.2
)
(0.2
)
(0.2
)
(0.2
)
Total Canada net inflows/(outflows)
(0.6
)
(0.3
)
(0.2
)
0.5
1.3
Australia
0.2
(0.1
)
0.1
(0.1
)
—
Total net inflows/(outflows)
(0.4
)
(0.4
)
(0.1
)
0.4
1.3
RETAIL (ex Closed Business)
[billions of dollars]
Quarters ended
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Beginning AUM
99.1
101.7
101.2
97.1
94.0
Net Flows
(0.4)
(0.1)
0.0
0.8
1.6
Market Move / FX
5.1
(2.5)
0.5
3.3
1.5
Acquisitions
___
___
___
___
___
Ending AUM
103.7
99.1
101.7
101.2
97.1
Average AUM
100.7
101.5
101.3
100.9
97.0
INSTITUTIONAL
[billions of dollars]
Quarters ended
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Beginning AUM
8.3
8.5
8.5
8.3
8.3
Net Flows
(0.0
)
(0.1
)
(0.0
)
(0.2
)
(0.2
)
Market Move / FX
0.5
(0.1
)
0.0
0.4
0.2
Acquisitions
___
___
___
___
___
Ending AUM
8.8
8.3
8.5
8.5
8.3
Average AUM
8.5
8.5
8.5
8.5
8.4
AUSTRALIA
[billions of dollars]
Quarters ended
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Beginning AUM
4.8
5.0
4.9
5.0
4.7
Net Flows
0.2
(0.1
)
0.1
(0.1
)
0.0
Market Move / FX
0.4
(0.1
)
0.0
0.0
0.3
Acquisitions
___
___
___
___
___
Ending AUM
5.4
4.8
5.0
4.9
5.0
Average AUM
5.0
4.9
5.0
5.0
4.8
CLOSED BUSINESS
[billions of dollars]
Quarters ended
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Beginning AUM
6.9
7.2
7.4
7.3
7.3
Net Flows
(0.2
)
(0.2
)
(0.2
)
(0.2
)
(0.2
)
Market Move / FX
0.4
(0.1
)
0.0
0..3
0.2
Acquisitions
___
___
___
___
___
Ending AUM
7.1
6.9
7.2
7.4
7.3
Average AUM
7.0
7.2
7.3
7.5
7.4
AUM BY ASSET CLASS
[billions of dollars]
Quarters ended
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Balanced
51.4
47.7
49.8
50.8
50.3
Equity
40.1
41.1
43.0
43.3
41.6
Fixed income
11.6
10.5
11.1
11.3
11.0
Alternatives
6.4
5.5
5.1
4.0
3.6
Cash/Other
10.2
9.5
8.4
7.7
6.2
Total Canada asset management
119.6
114.3
117.4
117.1
112.8
Australia
5.4
4.8
5.0
4.9
5.0
Total asset management segment
125.0
119.0
122.4
122.0
117.8
CANADA WEALTH MANAGEMENT CLIENT
ASSETS
[billions of dollars]
Quarters ended
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Beginning client assets
81.5
82.6
81.6
77.4
74.0
Acquisitions
1.3
—
—
—
—
Net flows and market move
5.2
(1.1
)
1.0
4.2
3.4
Ending client assets
88.0
81.5
82.6
81.6
77.4
Average client assets
83.8
83.2
81.9
80.7
77.3
Wealth management fees/average client
assets
0.91
%
0.90
%
0.91
%
0.93
%
0.91
%
Canada custody
25.6
23.4
9.1
8.6
7.9
Proprietary custody
21.5
19.7
5.4
5.0
4.6
Non-proprietary custody
4.1
3.8
3.7
3.6
3.4
U.S. WEALTH MANAGEMENT CLIENT
ASSETS
[billions of dollars]
Quarters ended
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Beginning billable client assets
188.2
185.0
179.9
174.3
144.9
Acquisitions/divestitures
2.2
2.1
4.0
—
24.9
Net flows and market move
6.4
1.1
1.1
5.6
4.4
Ending billable client assets
196.8
188.2
185.0
179.9
174.3
Non-billable client assets
9.4
8.8
9.0
7.6
6.3
Total client assets
206.3
197.0
194.0
187.5
180.6
Fees/beginning billable client assets
0.48
%
0.49
%
0.48
%
0.47
%
0.52
%
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
(unaudited except for Dec. 31, 2022
amounts)
[millions of dollars, except per share
amounts]
Quarters ended
Years ended
Dec. 31, 2023
Sep. 30, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Net Income
(63.2
)
(12.2
)
(8.3
)
6.1
301.8
Amortization of intangible assets from
acquisitions
36.1
34.8
26.5
135.3
105.7
Amortization of intangible assets for
equity accounted investments
1.4
1.4
2.6
6.3
2.6
Change in fair value of contingent
consideration
26.8
(7.2
)
76.8
88.4
27.4
Change in fair value of Preferred Share
Liability
100.5
21.4
—
156.9
—
Interest expense on redeemable shares
issued in connection with acquisitions
0.9
(0.1
)
—
2.9
—
Contingent consideration recorded as
compensation
2.0
4.4
1.5
8.9
24.2
Non-controlling interest
reclassification
(1.4
)
1.1
1.2
4.6
4.0
Accounting for Corient and CIPW Canada
redeemable units
93.8
56.5
27.7
273.0
55.5
Severance
9.1
7.2
—
23.2
—
Amortization of loan guarantees
(1.3
)
(0.5
)
—
(3.8
)
—
FX (gains)/losses
(52.2
)
60.4
(15.2
)
(29.9
)
80.1
Transaction, integration, restructuring
and legal
43.5
23.7
41.3
137.2
62.7
Pass through carried interest revenue
4.8
(8.7
)
—
(3.9
)
—
Pass through carried interest expense
(4.8
)
8.7
—
3.9
—
Other (gains)/losses
(2.9
)
—
7.1
(71.1
)
5.9
Gain on debt retirement
—
—
—
(16.2
)
—
Trading and bad debt
—
—
—
—
8.0
Total adjustments
256.2
203.3
169.6
715.7
376.1
Tax effect of adjustments
(30.5
)
(24.3
)
(9.9
)
(77.1
)
(43.6
)
Less: Non-controlling interest
34.2
34.0
15.5
110.8
46.7
Adjusted net income
128.2
132.8
135.9
533.8
587.7
Adjusted earnings per share
0.81
0.82
0.74
3.13
3.11
Adjusted diluted earnings per
share
0.81
0.81
0.74
3.11
3.10
Average diluted shares
outstanding
168.3
177.9
184.6
182.6
189.8
Shares convertible into common in
connection with an acquisition
(9.4
)
(14.3
)
—
(11.1
)
—
Adjusted average diluted shares
outstanding
158.9
163.6
184.6
171.5
189.8
EBITDA, ADJUSTED EBITDA AND ADJUSTED
EBITDA MARGIN
(unaudited except for Dec. 31, 2022
amounts)
[millions of dollars, except per share
amounts]
Quarters ended
Years ended
Dec. 31, 2023
Sep. 30, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Pretax income
(38.2
)
20.6
33.6
149.7
476.2
Amortization of intangible assets from
acquisitions
36.1
34.8
26.5
135.3
105.7
Amortization of intangible assets for
equity accounted investments
1.4
1.4
2.6
6.3
2.6
Depreciation and other amortization
17.3
12.9
13.1
56.4
49.4
Interest and lease finance expense
43.9
39.8
41.4
177.0
152.1
EBITDA
60.5
109.5
117.2
524.6
786.0
Change in fair value of contingent
consideration
26.8
(7.2
)
76.8
88.4
27.4
Change in fair value of Preferred Share
Liability
100.5
21.4
—
156.9
—
Contingent consideration recorded as
compensation
2.0
4.4
1.5
8.9
24.2
Non-controlling interest
reclassification
(1.4
)
1.1
1.2
4.6
4.0
Accounting for Corient and CIPW Canada
redeemable units
93.8
56.5
27.7
273.0
55.5
Severance
9.1
7.2
—
23.2
—
Amortization of loan guarantees
(1.3
)
(0.5
)
—
(3.8
)
—
FX (gains)/losses
(52.2
)
60.4
(15.2
)
(29.9
)
80.1
Transaction, integration, restructuring
and legal
43.5
23.7
41.3
137.2
62.7
Pass through carried interest revenue
4.8
(8.7
)
—
(3.9
)
—
Pass through carried interest expense
(4.8
)
8.7
—
3.9
—
Other (gains)/losses
(2.9
)
—
7.1
(71.1
)
5.9
Gain on debt retirement
—
—
—
(16.2
)
—
Trading and bad debt
—
—
—
—
8.0
Total adjustments
217.8
167.2
140.5
571.1
267.8
Adjusted EBITDA
278.3
276.6
257.7
1,095.8
1,053.8
Less: Non-controlling interest
39.6
38.9
15.0
124.0
49.8
Adjusted EBITDA attributable to
shareholders
238.7
237.8
242.7
971.8
1,004.0
Reported net revenue
715.6
616.5
620.3
2,746.0
2,334.3
Less: FX gains/(losses)
52.2
(60.4
)
15.2
29.9
(80.1
)
Less: Pass through carried interest
revenue
(4.8
)
8.7
—
3.9
—
Less: Non-Operating Other
gains/(losses)
2.9
0.1
(7.1
)
71.1
(5.9
)
Less: Amortization of equity accounted
investments
(1.4
)
(1.4
)
—
(6.3
)
—
Adjusted net revenue
666.7
669.6
612.3
2,647.3
2,420.3
Adjusted EBITDA margin
41.7
%
41.3
%
42.1
%
41.4
%
43.5
%
FREE CASH FLOW (unaudited except for
Dec. 31, 2022 amounts)
[millions of dollars]
Quarters ended
Years ended
Dec. 31, 2023
Sep. 30, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Cash provided by operating activities
68.6
94.6
56.7
448.5
478.9
Less: Net change in operating assets and
liabilities
(116.7)
(10.1)
(94.1)
(114.0)
(85.6)
Operating cash flow before the change
in operating assets and liabilities
185.3
104.7
150.9
562.5
564.5
FX (gains)/losses
(52.2)
60.4
(15.2)
(29.9)
80.1
Transaction, integration, restructuring
and legal
43.5
23.7
41.3
137.2
62.7
Trading and bad debt
—
—
—
—
8.0
Other (gains)/losses
—
(3.8)
—
(3.8)
—
Total adjustments
(8.7)
80.3
26.1
103.4
150.8
Tax effect (recovery) of adjustments
(4.9)
(4.8)
(18.8)
(13.0)
(37.4)
Less: Non-controlling interest
0.8
0.9
0.3
4.2
(9.4)
Free cash flow
170.9
179.4
157.9
648.7
687.4
NET DEBT (unaudited except for Dec. 31,
2022 amounts)
Quarters ended
[millions of dollars]
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Current portion of long-term debt
437.3
157.2
—
298.0
320.0
Long-term debt
3,070.1
3,131.9
3,131.5
3,892.2
3,896.2
3,507.4
3,289.1
3,131.5
4,190.2
4,216.2
Less:
Cash and short-term investments
137.0
175.7
240.5
137.0
153.6
Marketable securities
28.2
22.4
23.0
22.6
20.6
Add:
Regulatory capital and non-controlling
interests
22.4
22.3
18.6
21.7
16.8
Net Debt
3,364.6
3,113.3
2,886.6
4,052.2
4,058.8
Adjusted EBITDA
238.7
237.8
245.3
250.1
242.7
Adjusted EBITDA, annualized
954.9
943.3
983.8
1,014.2
962.8
Gross leverage (Gross debt/Annualized
adjusted EBITDA)
3.7
3.5
3.2
4.1
4.4
Net leverage (Net debt/Annualized adjusted
EBITDA)
3.5
3.3
2.9
4.0
4.2
SUMMARY OF QUARTERLY RESULTS
(unaudited except for Dec. 31, 2022
amounts)
[millions of dollars, except per share
amounts]
IFRS Results
Adjusted Results
For the quarters ended
For the quarters ended
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Revenues
Asset management fees
361.9
375.6
375.8
377.7
378.2
361.9
375.6
375.8
377.7
378.2
Trailer fees and deferred sales
commissions
(111.3
)
(114.7
)
(114.9
)
(115.9
)
(116.0
)
(111.3
)
(114.7
)
(114.9
)
(115.9
)
(116.0
)
Net asset management fees
250.6
260.8
261.0
261.8
262.2
250.6
260.8
261.0
261.8
262.2
Canada wealth management fees
150.5
146.7
144.1
141.5
133.1
150.5
146.7
144.1
141.5
133.1
U.S. wealth management fees
226.8
229.0
216.8
201.3
190.1
226.8
229.0
216.8
201.3
190.1
Other revenues
31.6
40.9
31.3
32.3
26.2
37.8
33.6
32.7
34.4
28.8
FX gains/(losses)
52.2
(60.4
)
36.5
1.8
15.2
—
—
—
—
—
Other gains/(losses)
3.8
(0.4
)
86.5
(0.9
)
(6.5
)
0.9
(0.5
)
0.3
1.0
0.6
Total net revenues
715.6
616.5
776.1
637.8
620.3
666.7
669.6
654.8
640.0
614.9
Expenses
Selling, general & administrative
375.9
343.5
345.9
304.6
277.2
272.4
275.8
265.9
254.6
248.0
Advisor and dealer fees
113.8
110.3
108.2
107.8
101.1
113.8
110.3
108.2
107.8
101.1
Other
(0.4
)
16.7
10.9
11.5
9.2
5.8
6.9
8.5
9.0
8.1
Interest and lease finance expense
43.9
39.8
46.1
47.2
41.4
41.2
39.9
44.0
47.2
41.4
Depreciation and other amortization
17.3
12.9
13.3
12.9
13.1
15.5
12.9
13.3
12.9
13.1
Amortization of intangible assets from
acquisitions
36.1
34.8
33.1
31.3
26.5
—
—
—
—
—
Transaction, integration, restructuring
and legal
39.9
23.7
55.8
14.2
41.3
—
—
—
—
—
Change in fair value of contingent
consideration
26.8
(7.2
)
15.2
53.5
76.8
—
—
—
—
—
Change in fair value of Preferred Share
Liability
100.5
21.4
35.0
—
—
—
—
—
—
—
Total expenses
753.7
595.9
663.6
583.0
586.7
448.7
445.8
439.9
431.5
411.7
Pretax income
(38.2
)
20.6
112.5
54.8
33.6
218.0
223.9
215.0
208.5
203.2
Income tax expense
25.1
32.8
61.1
24.6
41.9
55.6
57.1
54.8
53.2
51.8
Net income
(63.2
)
(12.2
)
51.4
30.2
(8.3
)
162.4
166.8
160.1
155.3
151.4
Less: Non-controlling interest
0.3
0.2
0.4
0.2
1.2
34.2
34.0
24.2
18.5
15.5
Net income attributable to
shareholders
(63.5
)
(12.4
)
51.0
30.0
(9.5
)
128.2
132.8
136.0
136.8
135.9
Basic earnings per share
(0.40
)
(0.08
)
0.28
0.16
(0.05
)
0.81
0.82
0.76
0.74
0.74
Diluted earnings per share
(0.40
)
(0.08
)
0.28
0.16
(0.05
)
0.81
0.81
0.76
0.74
0.74
RESULTS OF OPERATIONS - ASSET
MANAGEMENT SEGMENT
(unaudited except for Dec. 31, 2022
amounts)
[millions of dollars, except per share
amounts]
IFRS Results
Adjusted Results
For the quarters ended
For the quarters ended
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Revenues
Asset management fees
366.4
380.1
380.2
382.0
382.3
366.4
380.1
380.2
382.0
382.3
Trailer fees and deferred sales
commissions
(118.7
)
(122.2
)
(122.5
)
(123.4
)
(123.8
)
(118.7
)
(122.2
)
(122.5
)
(123.4
)
(123.8
)
Net asset management fees
247.7
257.9
257.8
258.6
258.5
247.7
257.9
257.8
258.6
258.5
Other revenues
4.7
4.8
5.1
4.0
3.6
4.7
4.8
5.1
4.0
3.6
FX gains/(losses)
56.1
(61.9
)
37.5
2.0
15.5
—
—
—
—
—
Other gains/(losses)
1.9
(0.4
)
16.1
(0.9
)
(6.5
)
1.9
(0.5
)
0.3
1.0
0.6
Total net revenues
310.4
200.3
316.5
263.6
271.2
254.3
262.2
263.1
263.5
262.8
Expenses
Selling, general & administrative
108.7
110.9
101.0
98.9
94.3
97.4
105.2
102.6
98.6
94.3
Other
0.3
0.7
—
—
—
0.3
0.7
—
—
—
Interest and lease finance expense
0.5
2.5
(1.5
)
0.6
0.9
0.5
2.5
(1.5
)
0.6
0.9
Depreciation and other amortization
3.9
2.5
5.4
3.8
4.7
3.9
2.5
5.4
3.8
4.7
Amortization of intangible assets from
acquisitions
0.6
0.6
0.6
0.6
0.6
—
—
—
—
—
Transaction, integration, restructuring
and legal
2.0
0.6
34.6
1.7
11.0
—
—
—
—
—
Change in fair value of contingent
consideration
8.8
(0.6
)
0.7
(2.2
)
1.6
—
—
—
—
—
Total expenses
124.7
117.2
140.8
103.5
113.1
102.0
111.0
106.6
103.0
99.9
Pretax income
185.7
83.1
175.7
160.1
158.0
152.3
151.2
156.5
160.5
162.8
Non-IFRS adjustments
Pretax income
185.7
83.1
175.7
160.1
158.0
152.3
151.2
156.5
160.5
162.8
Amortization of intangible assets from
acquisitions
0.6
0.6
0.6
0.6
0.6
—
—
—
—
—
Depreciation and other amortization
3.9
2.5
5.4
3.8
4.7
3.9
2.5
5.4
3.8
4.7
Interest and lease finance expense
0.5
2.5
(1.5
)
0.6
0.9
0.5
2.5
(1.5
)
0.6
0.9
EBITDA
190.7
88.7
180.2
165.1
164.2
156.6
156.2
160.5
164.9
168.4
Change in fair value of contingent
consideration
8.8
(0.6
)
0.7
(2.2
)
1.6
—
—
—
—
—
FX (gains)/losses
(56.1
)
61.9
(37.5
)
(2.0
)
(15.5
)
—
—
—
—
—
Severance
8.8
6.1
0.1
0.5
—
—
—
—
—
—
Amortization of loan guarantees
2.5
(0.5
)
(1.8
)
(0.3
)
—
—
—
—
—
—
Transaction, integration, restructuring
and legal
2.0
0.6
34.6
1.7
11.0
—
—
—
—
—
Other (gains)/losses
—
—
0.3
1.9
7.1
—
—
—
—
—
Gain on debt retirement
—
—
(16.2
)
—
—
—
—
—
—
—
Trading and bad debt
—
—
—
—
—
—
—
—
—
—
Total adjustments
(34.0
)
67.5
(19.8
)
(0.2
)
4.2
—
—
—
—
—
Adjusted EBITDA
156.6
156.2
160.5
164.9
168.4
156.6
156.2
160.5
164.9
168.4
Less: Non-controlling interest
0.1
0.2
0.2
0.2
0.1
0.1
0.2
0.2
0.2
0.1
Adjusted EBITDA attributable to
shareholders
156.5
156.0
160.3
164.7
168.3
156.5
156.0
160.3
164.7
168.3
RESULTS OF OPERATIONS - CANADA WEALTH
MANAGEMENT SEGMENT
(unaudited except for Dec. 31, 2022
amounts)
[millions of dollars, except per share
amounts]
IFRS Results
Adjusted Results
For the quarters ended
For the quarters ended
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Revenues
Canada wealth management fees
192.8
189.1
186.8
184.3
176.8
192.8
189.1
186.8
184.3
176.8
Other revenues
31.7
30.7
30.5
31.8
29.1
31.7
30.7
30.6
31.8
29.2
FX gains/(losses)
(1.8
)
1.4
(0.5
)
(0.2
)
(0.4
)
—
—
—
—
—
Other gains/(losses)
—
—
—
—
—
—
—
—
—
—
Total net revenues
222.7
221.1
216.8
215.9
205.5
224.6
219.8
217.4
216.2
206.0
Expenses
Selling, general & administrative
50.6
52.2
50.3
48.2
46.2
49.8
49.2
49.3
47.7
45.9
Advisor and dealer fees
147.9
144.4
142.5
141.7
136.2
147.9
144.4
142.5
141.7
136.2
Other
6.2
5.9
9.3
9.8
9.3
5.1
4.8
8.0
8.8
8.1
Interest and lease finance expense
0.3
0.6
—
0.3
—
0.3
0.6
—
0.3
—
Depreciation and other amortization
5.1
5.2
2.9
4.1
3.2
5.1
5.2
2.9
4.1
3.2
Amortization of intangible assets from
acquisitions
2.3
2.2
2.2
2.1
2.1
—
—
—
—
—
Transaction, integration, restructuring
and legal
5.4
0.4
0.1
0.3
0.2
—
—
—
—
—
Change in fair value of contingent
consideration
3.5
(0.4
)
1.0
5.3
1.9
—
—
—
—
—
Total expenses
221.3
210.5
208.4
211.8
199.1
208.3
204.2
202.7
202.5
193.4
Pretax income
1.4
10.7
8.5
4.1
6.4
16.3
15.6
14.7
13.7
12.5
Non-IFRS adjustments
Pretax income
1.4
10.7
8.5
4.1
6.4
16.3
15.6
14.7
13.7
12.5
Amortization of intangible assets from
acquisitions
2.3
2.2
2.2
2.1
2.1
—
—
—
—
—
Amortization of intangible assets for
equity accounted investments
0.1
0.1
0.1
0.1
0.1
—
—
—
—
—
Depreciation and other amortization
5.1
5.2
2.9
4.1
3.2
5.1
5.2
2.9
4.1
3.2
Interest and lease finance expense
0.3
0.6
—
0.3
—
0.3
0.6
—
0.3
—
EBITDA
9.1
18.7
13.6
10.7
11.8
21.7
21.4
17.6
18.0
15.8
Change in fair value of contingent
consideration
3.5
(0.4
)
1.0
5.3
1.9
—
—
—
—
—
Contingent consideration recorded as
compensation (included in SG&A)
0.1
0.1
0.2
0.2
0.2
—
—
—
—
—
Accounting for CIPW Canada redeemable
units (included in SG&A)
0.7
2.0
0.2
0.2
0.1
—
—
—
—
—
FX (gains)/losses
1.8
(1.4
)
0.5
0.2
0.4
—
—
—
—
—
Severance
—
0.9
0.7
0.1
—
—
—
—
—
—
Transaction, integration, restructuring
and legal
5.4
0.4
0.2
0.3
0.2
—
—
—
—
—
Non-controlling interest reclassification
(included in Other)
1.1
1.1
1.3
1.1
1.2
—
—
—
—
—
Trading and bad debt
—
—
—
—
—
—
—
—
—
—
Total adjustments
12.6
2.7
4.0
7.3
4.0
—
—
—
—
—
Adjusted EBITDA
21.7
21.4
17.6
18.0
15.8
21.7
21.4
17.6
18.0
15.8
Less: Non-controlling interest
2.0
1.2
1.4
1.9
1.3
2.0
1.2
1.4
1.9
1.3
Adjusted EBITDA attributable to
shareholders
19.7
20.1
16.2
16.2
14.5
19.7
20.1
16.2
16.2
14.5
RESULTS OF OPERATIONS - U.S. WEALTH
MANAGEMENT SEGMENT
(unaudited except for Dec. 31, 2022
amounts)
[millions of dollars, except per share
amounts]
IFRS Results
Adjusted Results
For the quarters ended
For the quarters ended
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Revenues
U.S. wealth management fees
226.8
229.0
216.8
201.3
190.1
226.8
229.0
216.8
201.3
190.1
Other revenues
4.5
14.9
5.4
6.3
2.9
10.6
7.6
6.7
8.3
5.5
FX gains/(losses)
(2.1
)
0.1
(0.6
)
—
—
—
—
—
—
—
Other gains/(losses)
1.9
—
70.4
—
—
(1.0
)
—
—
—
—
Total net revenues
231.1
244.0
291.9
207.7
193.1
236.4
236.6
223.5
209.6
195.6
Expenses
Selling, general & administrative
231.1
195.2
209.5
173.0
151.1
139.7
136.0
128.8
123.8
122.2
Other
(6.9
)
10.1
1.6
1.7
(0.1
)
0.4
1.4
0.5
0.2
(0.1
)
Interest and lease finance expense
4.0
0.8
3.2
0.8
0.8
2.1
0.8
3.2
0.8
0.8
Depreciation and other amortization
8.3
5.2
5.0
5.1
5.2
6.5
5.2
5.0
5.1
5.2
Amortization of intangible assets from
acquisitions
33.2
32.0
30.3
28.6
23.8
—
—
—
—
—
Transaction, integration, restructuring
and legal
32.5
22.7
21.1
12.2
30.0
— —
—
—
—
—
Change in fair value of contingent
consideration
14.5
(6.1
)
13.5
50.4
73.3
—
—
—
—
—
Change in fair value of Preferred Share
Liability
100.5
21.4
35.0
—
—
—
—
—
—
—
Total expenses
417.2
281.3
319.3
271.7
284.2
148.8
143.4
137.6
129.9
128.1
Pretax income
(186.1
)
(37.3
)
(27.3
)
(64.0
)
(91.1
)
87.7
93.2
85.9
79.7
67.4
Non-IFRS adjustments
Pretax income
(186.1
)
(37.3
)
(27.3
)
(64.0
)
(91.1
)
87.7
93.2
85.9
79.7
67.4
Amortization of intangible assets from
acquisitions
33.2
32.0
30.3
28.6
23.8
—
—
—
Amortization of intangible assets for
equity accounted investments
1.3
1.3
1.3
2.0
2.5
—
—
—
—
—
Depreciation and other amortization
8.3
5.2
5.0
5.1
5.2
8.3
5.2
5.0
5.1
5.2
Interest and lease finance expense
4.0
0.8
3.2
0.8
0.8
4.0
0.8
3.2
0.8
0.8
EBITDA
(139.3
)
2.1
12.5
(27.5
)
(58.8
)
100.0
99.3
94.2
85.6
73.5
Change in fair value of contingent
consideration
14.5
(6.1
)
13.5
50.4
73.3
—
—
—
—
—
Change in fair value of Preferred Share
Liability
100.5
21.4
35.0
—
—
—
—
—
—
—
Contingent consideration recorded as
compensation (included in SG&A)
1.9
4.3
0.6
1.5
1.3
—
—
—
—
—
Non-controlling interest reclassification
(included in Other)
(2.5
)
—
1.2
1.4
—
—
—
—
—
—
Corient adjustments (included in
SG&A)
93.2
54.7
79.4
42.9
27.6
—
—
—
—
—
FX (gains)/losses
2.1
(0.1
)
0.6
—
—
—
—
—
—
—
Severance
0.2
0.2
0.7
4.8
—
—
—
—
—
—
Transaction, integration, restructuring
and legal
36.1
22.7
21.1
12.2
30.0
—
—
—
—
—
Pass through carried interest revenue
(included in Other revenues)
4.8
(8.7
)
—
—
—
—
—
—
—
—
Pass through carried interest expense
(included in Other)
(4.8
)
8.7
—
—
—
—
—
—
—
—
Other (gains)/losses
(2.9
)
—
(70.3
)
—
—
—
—
—
—
—
Total adjustments
239.3
97.2
81.7
113.1
132.2
—
—
—
—
—
Adjusted EBITDA
100.0
99.3
94.2
85.6
73.5
100.0
99.3
94.2
85.6
73.5
Less: Non-controlling interest
37.4
37.6
25.4
16.5
13.6
37.4
37.6
25.4
16.5
13.6
Adjusted EBITDA attributable to
shareholders
62.5
61.6
68.8
69.1
59.9
62.5
61.6
68.8
69.1
59.9
ASSET MANAGEMENT ADJUSTED
EBITDA
(unaudited except for Dec. 31, 2022
amounts)
[millions of dollars]
Quarters ended
Years ended
Dec. 31, 2023
Sep. 30, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Pretax income
185.7
83.1
158.0
604.6
591.8
Amortization of intangible assets from
acquisitions
0.6
0.6
0.6
2.4
2.4
Depreciation and other amortization
3.9
2.5
4.7
15.5
19.6
Interest and lease finance expense
0.5
2.5
0.9
2.2
4.0
EBITDA
190.7
88.7
164.2
624.7
617.8
Change in fair value of contingent
consideration
8.8
(0.6
)
1.6
6.8
4.9
FX (gains)/losses
(56.1
)
61.9
(15.5
)
(33.7
)
80.2
Severance
8.8
6.1
—
15.6
—
Amortization of loan guarantees
2.5
(0.5
)
—
—
—
Transaction, integration, restructuring
and legal
2.0
0.6
11.0
38.9
15.0
Other (gains)/losses
—
—
7.1
2.2
5.9
Gain on debt retirement
—
—
—
(16.2
)
—
Trading and bad debt
—
—
—
—
7.1
Total adjustments
(34.0
)
67.5
4.2
13.5
113.2
Adjusted EBITDA
156.6
156.2
168.4
638.2
731.1
Less: Non-controlling interest
0.1
0.2
0.1
0.8
1.0
Adjusted EBITDA attributable to
shareholders
156.5
156.0
168.3
637.5
730.1
Reported net revenue
310.4
200.3
271.2
1,090.8
1,032.0
Less: FX gains/(losses)
56.1
(61.9
)
15.5
33.7
(80.2
)
Less: Non-Operating Other
gains/(losses)
—
0.1
(7.1
)
(2.2
)
(5.9
)
Adjusted net revenue
254.3
262.1
262.8
1,059.3
1,118.1
Adjusted EBITDA margin
61.6
%
59.6
%
64.1
%
60.3
%
65.4
%
CANADA WEALTH MANAGEMENT ADJUSTED
EBITDA
(unaudited except for Dec. 31, 2022
amounts)
[millions of dollars]
Quarters ended
Years ended
Dec. 31, 2023
Sep. 30, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Pretax income
1.4
10.7
6.4
24.6
31.1
Amortization of intangible assets from
acquisitions
2.3
2.2
2.1
8.8
7.8
Amortization of intangible assets for
equity accounted investments
0.1
0.1
0.1
0.3
0.1
Depreciation and other amortization
5.1
5.2
3.2
17.2
11.7
Interest and lease finance expense
0.3
0.6
—
1.3
0.1
EBITDA
9.1
18.7
11.8
52.1
50.8
Change in fair value of contingent
consideration
3.5
(0.4
)
1.9
9.4
0.7
Contingent consideration recorded as
compensation
0.1
0.1
0.2
0.6
0.3
Accounting for CIPW Canada redeemable
units
0.7
2.0
0.1
3.0
0.4
FX (gains)/losses
1.8
(1.4
)
0.4
1.1
(0.1
)
Severance
—
0.9
—
1.8
—
Transaction, integration, restructuring
and legal
5.4
0.4
0.2
6.2
1.7
Non-controlling interest
reclassification
1.1
1.1
1.2
4.6
4.0
Trading and bad debt
—
—
—
—
0.8
Total adjustments
12.6
2.7
4.0
26.6
7.6
Adjusted EBITDA
21.7
21.4
15.8
78.8
58.4
Less: Non-controlling interest
2.0
1.2
1.3
6.6
4.3
Adjusted EBITDA attributable to
shareholders
19.7
20.1
14.5
72.2
54.1
Reported net revenue
222.7
221.1
205.5
876.5
803.0
Less: FX gains/(losses)
(1.8
)
1.4
(0.4
)
(1.1
)
0.1
Less: Amortization of equity accounted
investments
(0.1
)
(0.1
)
—
(0.3
)
—
Adjusted net revenue
224.6
219.8
205.9
877.9
802.9
Adjusted EBITDA margin
9.7
%
9.7
%
7.7
%
9.0
%
7.3
%
U.S. WEALTH MANAGEMENT ADJUSTED
EBITDA
(unaudited except for Dec. 31, 2022
amounts)
[millions of dollars]
Quarters ended
Years ended
Dec. 31, 2023
Sep. 30, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Pretax income
(186.1
)
(37.3
)
(91.1
)
(314.8
)
(1.3
)
Amortization of intangible assets from
acquisitions
33.2
32.0
23.8
124.1
95.5
Amortization of intangible assets for
equity accounted investments
1.3
1.3
2.5
6.0
2.5
Depreciation and other amortization
8.3
5.2
5.2
23.7
18.1
Interest and lease finance expense
4.0
0.8
0.8
8.8
2.5
EBITDA
(139.3
)
2.1
(58.8
)
(152.2
)
117.4
Change in fair value of contingent
consideration
14.5
(6.1
)
73.3
72.3
21.9
Change in fair value of Preferred Share
Liability
100.5
21.4
—
156.9
—
Contingent consideration recorded as
compensation
1.9
4.3
1.3
8.3
23.9
NCI reclassification
(2.5
)
—
—
—
—
Corient adjustments
93.2
54.7
27.6
270.3
55.1
FX (gains)/losses
2.1
(0.1
)
—
2.7
—
Severance
0.2
0.2
—
5.9
—
Amortization of loan guarantees
(3.8
)
—
—
(3.8
)
—
Transaction, integration, restructuring
and legal
36.1
22.7
30.0
92.1
46.1
Pass through carried interest revenue
4.8
(8.7
)
—
(3.9
)
—
Pass through carried interest expense
(4.8
)
8.7
—
3.9
—
Other (gains)/losses
(2.9
)
—
—
(73.3
)
—
Total adjustments
239.3
97.2
132.2
531.2
147.0
Adjusted EBITDA
100.0
99.3
73.5
379.0
264.3
Less: Non-controlling interest
37.4
37.6
13.6
116.9
44.8
Adjusted EBITDA attributable to
shareholders
62.5
61.6
59.9
262.1
219.6
Reported net revenue
231.1
244.0
193.1
974.7
704.0
Less: FX gains/(losses)
(2.1
)
0.1
—
(2.7
)
—
Less: Pass through carried interest
revenue
(4.8
)
8.7
—
3.9
—
Less: Non-Operating Other
gains/(losses)
2.9
—
—
73.3
—
Less: Amortization of equity accounted
investments
(1.3
)
(1.3
)
—
(6.0
)
—
Adjusted net revenue
236.4
236.6
193.1
906.2
704.0
Adjusted EBITDA margin
42.3
%
42.0
%
38.0
%
41.8
%
37.5
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240223554510/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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